77R11399 SMJ-D                           
         By Zbranek                                             H.B. No. 921
         Substitute the following for H.B. No. 921:
         By Woolley                                         C.S.H.B. No. 921
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain late penalties imposed on subdivisions that
 1-3     participate in the Texas County and District Retirement System.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 845.407, Government Code, is amended to
 1-6     read as follows:
 1-7           Sec. 845.407.  PENALTY FOR LATE CONTRIBUTIONS. (a)  Except as
 1-8     provided by Subsections (c) and (d), a [A] participating
 1-9     subdivision that fails to provide the information required by
1-10     Section 845.403 or to pay all contributions required by this
1-11     subchapter to be made and remitted to the retirement system not
1-12     later than the 15th [before the 16th] day of the month in which
1-13     they become [are] due shall pay a penalty under this section.  The
1-14     penalty for a past-due monthly remission is equal to interest on
1-15     the past-due amounts for each day past due at a nominal interest
1-16     rate of 12 percent, plus a $500 administrative fee.  If the penalty
1-17     is not paid within three months after the date notice of the
1-18     penalty has been sent to the subdivision, the retirement system
1-19     shall deduct the penalty from the subdivision's account in the
1-20     subdivision accumulation fund.  The interest portion of the penalty
1-21     shall be deposited by the retirement system in the distributable
1-22     income account of the interest fund.  The administrative fee
1-23     portion of the penalty shall be deposited by the retirement system
1-24     in the expense fund.
 2-1           (b)  Payments [Payment] and required reports are considered
 2-2     to be made when received by the retirement system.
 2-3           (c)  A penalty will not be assessed under this section for a
 2-4     late payment or report made in a document sent to the correct
 2-5     address:
 2-6                 (1)  by certified mail, return receipt requested, not
 2-7     later than the 10th day of the month in which the payment or report
 2-8     becomes due; or
 2-9                 (2)  using a same-day or overnight delivery method,
2-10     approved by the board of trustees, not later than the 14th day of
2-11     the month in which the payment or report becomes due.
2-12           (d)  If the retirement system does not receive a payment or
2-13     report, a penalty will not be assessed under this section if the
2-14     subdivision provides proof satisfactory to the system that the
2-15     document containing the payment or report was sent in accordance
2-16     with Subsection (c).
2-17           SECTION 2. Notwithstanding Section 845.407, Government Code,
2-18     the Texas County and District Retirement System shall refund a
2-19     penalty assessed under that section, less any administrative costs
2-20     associated with the assessment, against a subdivision during the
2-21     2000 calendar year if the subdivision filed with the retirement
2-22     system not later than December 31, 2000, a sworn affidavit stating
2-23     that:
2-24                 (1)  the report and contributions required under
2-25     Section 845.407, Government Code, were mailed at least 10 days
2-26     before the date the report and contributions were due; and
2-27                 (2)  the United States Postal Service did not return
 3-1     the report and contributions to the subdivision.
 3-2           SECTION 3.  Section 845.407, Government Code, as amended by
 3-3     this Act, applies to a payment required under Subchapter E, Chapter
 3-4     845, Government Code, or information required under Section
 3-5     845.403, Government Code, that is due on or after the effective
 3-6     date of this Act.
 3-7           SECTION 4.  This Act takes effect September 1, 2001.