Section 17309.5 Of Article 3. Director Of Child Support Services From California Family Law Code >> Division 17. >> Chapter 1. >> Article 3.
17309.5
. (a) An employer who is required to withhold and, by
electronic fund transfer, pay tax pursuant to Section 19011 of the
Revenue and Taxation Code or Section 13021 of the Unemployment
Insurance Code, shall make child support payments to the State
Disbursement Unit by electronic fund transfer. All child support
payments required to be made to the State Disbursement Unit shall be
remitted to the State Disbursement Unit by electronic fund transfer
pursuant to Division 11 (commencing with Section 11101) of the
Commercial Code.
(b) An employer not required to make payment to the State
Disbursement Unit pursuant to paragraph (a), may elect to make
payment by electronic fund transfer under the following conditions:
(1) The election shall be made in a form, and shall contain
information, as prescribed by the Director of the Department of Child
Support Services, and shall be subject to approval of the
department.
(2) The election may be terminated upon written request to the
Department of Child Support Services.
(c) For the purposes of this section:
(1) "Electronic fund transfer" means any transfer of funds, other
than a transaction originated by check, draft, or similar paper
instrument, that is initiated through an electronic terminal,
telephonic instrument, or computer or magnetic tape, so as to order,
instruct, or authorize a financial institution to debit or credit an
account. Electronic fund transfers shall be accomplished by an
automated clearinghouse debit, an automated clearinghouse credit, or
by Federal Reserve Wire Transfer (Fedwire).
(2) "Automated clearinghouse" means any federal reserve bank, or
an organization established in agreement with the National Automated
Clearinghouse Association, that operates as a clearinghouse for
transmitting or receiving entries between banks or bank accounts and
which authorizes an electronic transfer of funds between these banks
or bank accounts.
(3) "Automated clearinghouse debit" means a transaction in which
the state, through its designated depository bank, originates an
automated clearinghouse transaction debiting the person's bank
account and crediting the state's bank account for the amount of tax.
Banking costs incurred for the automated clearinghouse debit
transaction shall be paid by the state.
(4) "Automated clearinghouse credit" means an automated
clearinghouse transaction in which the person through his or her own
bank, originates an entry crediting the state's bank account and
debiting his or her own bank account. Banking costs incurred for the
automated clearinghouse credit transaction charged to the state shall
be paid by the person originating the credit.
(5) "Fedwire transfer" means any transaction originated by a
person and utilizing the national electronic payment system to
transfer funds through the federal reserve banks, when that person
debits his or her own bank account and credits the state's bank
account. Electronic fund transfers pursuant to this section may be
made by Fedwire only if payment cannot, for good cause, be made
according to subdivision (a), and the use of Fedwire is preapproved
by the department. Banking costs incurred for the Fedwire transaction
charged to the person and to the state shall be paid by the person
originating the transaction.