34 TAC §107.6
The Texas County and District Retirement System proposes
amended §107.6, concerning the penalty for late reporting of monthly
information and contributions required of subdivisions participating in the
system. Under the proposed rule, a due date for a monthly report that falls
on a Saturday, Sunday, or legal holiday is extended to the first day that
is not a Saturday, Sunday, or legal holiday, but the periods for mailing before
the due date by certified mail or approved private delivery services to qualify
for an exemption from the penalty if the report is late or undelivered are
unchanged. The proposed rule also provides approved same-day or overnight
delivery services, as required by §845.407, Government Code.
Ray Henry, Deputy Director of the Texas County and District Retirement
System, has determined that for the first five-year period the rule is in
effect there will be no fiscal implications for state government and the possibility
of minimal cost savings to local governments as a result of administering
the rule.
Mr. Henry has also determined that for each of the first five years the
rule is in effect the public benefit anticipated as a result of administering
the rule will be the mitigation of the reporting deadline to account for circumstances
beyond the control of the reporting subdivisions. There will be no costs to
small businesses. There are no anticipated economic costs to persons who are
required to comply with the rule as proposed.
Comments on the proposed amended rule may be submitted to Ray Henry, Deputy
Director, Texas County and District Retirement System, P.O. Box 2034, Austin,
Texas 78768-2034.
The rule is proposed under §845.102, Government Code, which
provides the board of trustees of the Texas County and District Retirement
System with the authority to adopt rules necessary or desirable for efficient
administration of the system.
Section 845.407, Government Code, is affected by this proposed rule.
§107.6.Penalty for Late Reporting.
(a)
In this section [
the term
] "report" means the
combination of all information and contributions required to be provided to
and deposited with the system for each month of participation, in accordance
with Subchapter E, Chapter 845, Government Code.
(b)
A
[
The
] due date of a monthly report
that
is
a Saturday, Sunday, or legal holiday is extended to the
first day that is not a Saturday, Sunday, or legal holiday, but the dates
provided by §845.507(c) for eligibility for an exemption from a penalty
assessment are not extended if they fall on a Saturday, Sunday, or legal holiday
[
the 15th day of the following month. A subdivision shall be assessed
a penalty for each monthly report that is not received by the retirement system
by the due date
]. The penalty for a past-due report consists of an administrative
fee
in the amount provided by §845.407(a), Government Code,
[
of $500
] plus interest on the past-due amounts for each day past
due computed at an annual rate
provided by that subsection
[
of 12%
].
(c)
If a report is past due, the system shall mail an advice
to the governing board and correspondent of the subdivision stating the due
date of the report, that the report was not received by the due date, that
unless the subdivision submits proof satisfactory to the system that the report
was sent in compliance with §845.407(c), Government Code,
the subdivision
is subject to
[
has incurred
] a penalty for late reporting
in accordance with
§845.407(a),
[
§845.407 of the
Texas
] Government Code, and that the amount of the penalty will be computed
and assessed on receipt of the report.
(d)
After the system receives the past-due report, a notice
shall be mailed to the governing board and correspondent of the subdivision
stating that a penalty has been assessed for late reporting in accordance
with §845.407,
Government Code,
and indicating the date the
report was received by the system, the number of days the report was past
due, the amount of contributions on which interest was charged, the accumulated
interest and the administrative fee. The notice shall inform the governing
board and correspondent that if the penalty is not paid within
the period
provided by §845.407(a), Government Code
[
three months from
the date of the notice
], the penalty shall be deducted from the subdivision's
account in the Subdivision Accumulation Fund and credited to other funds of
the system in accordance with
that subsection
[
§845.407
].
(e)
The amount of the penalty stated in the notice described
by subsection (d) of this section becomes fixed and final on the tenth business
day following the date of the notice and may not be modified thereafter for
any reason.
(f)
For purposes of §805.407, Government
Code, approved same-day or overnight delivery services are:
(1)
Airborne Express;
(2)
DHL Worldwide Express;
(3)
Emery Worldwide;
(4)
Federal Express;
(5)
Lone Star Overnight; and
(6)
United Parcel Service.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State, on July 16, 2001.
TRD-200104096
Ray Henry
Deputy Director
Texas County and District Retirement System
Proposed date of adoption: September 7, 2001
For further information, please call: (512) 328-8889