2 AAC 15.130. Electronic disbursements

(a) A state agency shall make a disbursement to a payee by electronic methods in accordance with AS 37.25.050 (a), unless the

(1) state agency has determined that another disbursement method is required or permissible under AS 37.25.050 (b)(1), (3), (5), or (6); or

(2) payee declines when offered the option of electronic disbursement methods authorized under AS 37.25.050 (b)(2), (4), or (5).

(b) A determination under (a)(1) of this section allowing a disbursement method to a payee other than electronic must be documented in writing by the state agency and retained in accordance with the state agency's retention schedules for financial documents.

(c) A state agency shall offer electronic disbursement methods to each of its payees unless the state agency has determined, in writing, that another disbursement method is required or permissible under AS 37.25.050 (b).

(d) A state agency shall send an offer of electronic disbursement methods at least once to the address on record for each payee of the state agency, and shall specify in that offer a date on or before which the payee may respond.

(e) The department will send an offer of electronic disbursement methods at least once to the address on record for each payee on the central vendor master file and to each state employee, and will specify in that offer a date on or before which the payee or employee may respond.

(f) A state agency is responsible for sending an offer of electronic disbursement methods to a payee who receives disbursements from the state agency and who is not on the central vendor master file, and shall specify in that offer a date on or before which the payee may respond.

(g) If a payee notifies the offering state agency that it rejects the offer of electronic disbursement methods, another method of payment must be used.

(h) If a payee is sent an offer of electronic disbursement methods, and the payee does not respond on or before the date specified for a response, the state agency shall, and the department will, consider the lack of response to be an election for another disbursement method.

(i) A payee may opt for electronic disbursement methods at any time for disbursements that state agencies make electronically, even after a rejection by the payee under (g) or (h) of this section of an offer of electronic disbursement methods.

(j) Documentation of offers of electronic disbursement methods and payee responses must be retained by the offering state agency and department in accordance with applicable retention schedules for financial documents.

(k) in this section,

(1) "central vendor master file" means the list of payees maintained within the statewide accounting system in the department;

(2) "department" means the Department of Administration;

(3) "payee" means an entity or individual receiving a disbursement from a state agency; "payee" includes vendors, employees, grantees, recipients, beneficiaries, and clients.

History: Eff. 2/15/2006, Register 177

Authority: As 37.05.020

AS 37.25.050

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