67-11-5 - Political subdivisions of state -- Planned participation.
67-11-5. Political subdivisions of state -- Planned participation.
(1) Each political subdivision of the state is hereby authorized to submit for approval bythe state agency a plan for extending the benefits of Title II of the Social Security Act, inconformity with applicable provisions of such act, to employees of such political subdivision. Each such plan and any amendment thereof shall be approved by the state agency if it finds thatsuch plan, or such plan as amended, is in conformity with such requirements as are provided inrules of the state agency, except that no such plan shall be approved unless:
(a) it is in conformity with the requirements of the Social Security Act and with theagreement entered into under Section 67-11-3;
(b) it provides that all services which constitute employment as defined in Section67-11-2 and are performed in the employ of the political subdivision by employees thereof, shallbe covered by the plan;
(c) it specifies the source or sources from which the funds necessary to make thepayments required by Subsections (3) and (4) are expected to be derived and contains reasonableassurance that such sources will be adequate for such purpose;
(d) it provides for such methods of administration of the plan by the political subdivisionas are found by the state agency to be necessary for the proper and efficient administration of theplan;
(e) it provides that the political subdivision will make such reports, in such form andcontaining such information, as the state agency may from time to time require, and comply withsuch provisions as the state agency or the federal security administrator may from time to timefind necessary to assure the correctness and verification of such reports; and
(f) it authorizes the state agency to terminate the plan in its entirety, in the discretion ofthe state agency, if it finds that there has been a failure to comply substantially with any provisioncontained in such plan, such termination to take effect at the expiration of such notice and onsuch conditions as may be provided by rules of the state agency and may be consistent with theprovisions of the Social Security Act.
(2) The state agency shall not finally refuse to approve a plan submitted by a politicalsubdivision under Subsection (1), and shall not terminate an approved plan, without reasonablenotice and opportunity for hearing to the political subdivision affected thereby.
(3) (a) Each political subdivision as to which a plan has been approved under this sectionshall pay into the Contribution Fund, with respect to wages, as defined in Section 67-11-2, atsuch time or times as the state agency may by rule prescribe, contributions in the amounts and atthe rates specified in the applicable agreement entered into by the state agency under Section67-11-3.
(b) Each political subdivision required to make payment under Subsection (3)(a) shall, inconsideration of the employees retention in, or entry upon, employment after enactment of thischapter, impose upon each of its employees, as to services which are covered by an approvedplan, a contribution with respect to his wages, as defined in Section 67-11-2, not exceeding theamount of tax which would be imposed by Section 1400 of the Federal Insurance ContributionsAct if such services constituted employment within the meaning of that act, and to deduct theamount of such contribution from his wages as and when paid. Contributions so collected shallbe paid into the Contribution Fund in partial discharge of the liability of such politicalsubdivision or instrumentality under this Subsection (3). Failure to deduct such contributionshall not relieve the employee or employer of liability therefor.
(4) Delinquent payments due under Subsection (3) may, with interest at the rate of 4%per annum, be recovered by action in a court of competent jurisdiction against the politicalsubdivision liable therefor or may, at the request of the state agency, be deducted from any othermoney payable to such subdivision by any department, agency, or fund of the state.
Amended by Chapter 306, 2007 General Session