HBA-MPM C.S.H.B. 921 77(R) BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 921 By: Zbranek Pensions & Investments 4/16/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE The 76th Legislature modified law regarding the Texas County and District Retirement System (TCDRS) by creating a penalty charged to participating subdivisions that fail to provide information or pay certain contributions and submit certain reports in a timely manner. A subdivision may be charged a penalty even though the requisite documents were mailed in a timely manner if TCDRS does not show that the documents have been received. C.S.H.B. 921 provides that a late penalty will not be assessed for a late payment or report made in a document sent to TCDRS in a specified manner. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS C.S.H.B. 921 amends the Government Code to provide that a penalty will not be assessed for a late payment or report made to the Texas County and District Retirement System (TCDRS) in a document sent to the correct address by certified mail, return receipt requested no later than the 10th day of the month in which the payment or report is due or using a same-day or overnight delivery method approved by the board of trustees of TCDRS no later than the 14th day of the month in which the payment or report is due. If TCDRS does not receive a payment or report, a penalty will not be assessed if the participating subdivision provides satisfactory proof to TCDRS that the document containing the payment or report was sent in accordance with these provisions. The bill requires TCDRS to refund a penalty assessed against a subdivision, less any administrative costs, during the 2000 calendar year if the subdivision filed with TCDRS not later than December 31, 2000 a sworn affidavit stating that the document was mailed in a timely manner and the United States Postal Service did not return the document to the subdivision. EFFECTIVE DATE September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 921 differs from the original by setting forth conditions under which a penalty will not be assessed for a late payment or report made to the Texas County and District Retirement System (TCDRS) by a participating subdivision, whereas the original required the board of trustees of TCDRS to waive a penalty imposed on a participating subdivision for late contributions or failure to provide information if the subdivision submits evidence showing that a diligent attempt to submit information and pay employee contributions was made and provides the information or pays the contribution no later than 21 days after the subdivision knew of the failure to provide the information or contribution in a timely manner. The substitute also requires TCDRS to refund to a participating subdivision a penalty assessed in calendar year 2000 less administrative costs if the subdivision proves that the document containing the payment or report was made on time and the United States Postal Service did not return the document. The substitute establishes an effective date of September 1, 2001 whereas the original established that the bill is effective on passage if the requisite vote was received.