(a) All contributions due to the system by an employer under this part shall be paid by an electronic funds transfer method through an automated clearinghouse as prescribed by the board. This payment requirement is effective upon authorization by the board.

(b) For purposes of this section, “automated clearinghouse” means any federal reserve bank, or an organization established in agreement with the National Automated Clearing House 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.

Terms Used In California Education Code 23001.5

  • Electronic funds transfer: The transfer of money between accounts by consumer electronic systems-such as automated teller machines (ATMs) and electronic payment of bills-rather than by check or cash. (Wire transfers, checks, drafts, and paper instruments do not fall into this category.) Source: OCC

(c) An employer that is unable, for good cause, to comply with subdivision (a) may apply to the board for a waiver that allows the employer to pay in an alternate manner as prescribed by the board.

(Added by Stats. 2018, Ch. 125, Sec. 1. (AB 2052) Effective January 1, 2019.)

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