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.