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HOUSE BILL NO. 642
INTRODUCED BY J. HAMILTON, Z. BROWN, W. SALES, T. WOODS
A BILL FOR AN ACT ENTITLED: "AN ACT REVISING THE INTEREST PENALTY IMPOSED ON PARTICIPATING PUBLIC EMPLOYERS FOR DELINQUENT CONTRIBUTIONS TO THE PUBLIC EMPLOYEES', SHERIFFS', MUNICIPAL POLICE OFFICERS', GAME WARDENS' AND PEACE OFFICERS', FIREFIGHTERS' UNIFIED, HIGHWAY PATROL OFFICERS', AND JUDGES' RETIREMENT SYSTEMS; AMENDING SECTION 19-2-506, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND AN APPLICABILITY DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 19-2-506, MCA, is amended to read:
"19-2-506. Payment of contributions by employers -- accompanying reports -- penalty -- liability. (1) The board shall prescribe by rule the procedure for payment of retirement contributions for the retirement systems administered by the board. Each employer shall pick up the employee contributions and remit the employer and employee contributions required by the member's retirement system. Payments must be considered delinquent until both the required contributions and the valid payroll report are received by the board.
(2) (a) The board may collect payments delinquent under subsection (1) with an interest penalty at the prime rate of 9% a year or $10 a day, whichever is greater plus 10%.
(b) For the purposes of this section, "prime rate" means the prime rate as published by the federal reserve system in its statistical release H.15 Selected Interest Rates for bank prime loans. For contributions owed on July 1 through December 31, the prime rate charged must be the rate in effect on the preceding June 1. For contributions owed on January 1 through June 30, the prime rate charged must be the rate in effect on the preceding December 1.
(c) The interest penalty must be charged on all amounts owed and continue to accrue until all amounts owed have been paid.
(d) The board may, in its discretion, waive the penalty. The collection may be made by either:
(a)(i) an action in a court of competent jurisdiction against the employer; or
(b)(ii) deductions, at the request of the board, from any other money payable to the employer by any agency or fund of the state.
(3) (a) The board shall prescribe by rule the procedure for submitting employer reports. The reports must include data about member and nonmember employees who work for the employer.
(b) The rules must specify the employee categories to be reported, the data required, the method of reporting, the reporting period, and the frequency of reports needed to meet the demands of the relevant retirement system or plan.
(c) The board may establish by rule the penalty fees for noncompliance in reporting any of the required information and the procedure for collection of the fees.
(4) Each employer shall furnish additional information concerning members that the board may request in connection with claims by members for benefits or service under a retirement system.
(5) The board is not responsible or liable for any incorrect reporting or erroneous payment of contributions by an employer.
(6) The board, from time to time, may send materials to an employer for redistribution to employees. To facilitate distribution, each employer shall provide the board with a point of contact responsible for distributing the materials."
NEW SECTION. Section 2. Effective date. [This act] is effective on passage and approval.
NEW SECTION. Section 3. Applicability. [This act] applies to contributions that become delinquent on or after July 1, 2019.
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Latest Version of HB 642
(HB0642.02)
Processed for the Web on March 22, 2019 (2:48pm)
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