The Attorney General published an opinion on a question submitted by the Auditor of State with respect to IC 4-13-2-14.8 which requires a person who has a contract with the state or submits invoices to the state for payment to authorize the state to pay the contract or invoice through direct deposit to a financial institution. The statute provides for a waiver of the requirement for a person with no bank account and who can’t open one without being a charged a fee.
The AG responded to the Auditor’s questions by stating that the State is not responsible for interest or penalties if an invoice goes unpaid because the person failed to authorize direct deposit; a political subdivision is subject to the direct deposit provisions; and an employee requesting reimbursement for travel expenses is subject to the direct deposit provisions.
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