Print Friendly

HOUSE BILL NO. 23

View Daily Data Tracking History

View Bill Text

View Statement of Purpose / Fiscal Impact

---

Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Daily Data Tracking History

---

H0023........................................................by MR. SPEAKER
              Requested by Public Employees Retirement System
PUBLIC EMPLOYEE RETIREMENT SYSTEM - Amends existing law relating to the
Public Employee Retirement System to require employer contributions each
pay period; and to revise and clarify the interest charges on delinquent
employer contributions and the process for collection of delinquent
employer contributions through the state controller.

01/11    House intro - 1st rdg - to printing
01/11    Rpt prt - to Comm/HuRes
02/04    Rpt out - rec d/p - to 2nd rdg
02/05    2nd rdg - to 3rd rdg
02/09    3rd rdg - PASSED - 61-4-5
      AYES -- Alltus, Barraclough, Bieter, Black, Boe, Bruneel, Callister,
      Campbell, Chase, Clark, Crow, Cuddy, Denney, Ellsworth, Field(13),
      Field(20), Gagner, Geddes, Gould, Hadley, Hammond, Hansen(23),
      Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Judd, Kellogg, Kempton,
      Kendell, Kjellander, Kunz, Lake, Limbaugh, Linford, Loertscher,
      Mader, Marley, McKague, Meyer, Montgomery, Mortensen, Moyle,
      Pischner, Pomeroy, Ridinger, Ringo, Robison, Sali, Sellman, Smith,
      Stevenson, Stoicheff, Stone, Tippets, Trail, Watson, Wheeler,
      Zimmermann, Mr Speaker
      NAYS -- Barrett, Deal, Schaefer, Wood
      Absent and excused -- Bell, Reynolds, Taylor, Tilman, Williams
    Floor Sponsor - Lake
    Title apvd - to Senate
02/10    Senate intro - 1st rdg - to Com/HuRes
03/10    Rpt out - rec d/p - to 2nd rdg
03/11    2nd rdg - to 3rd rdg
03/15    3rd rdg - PASSED - 28-2-5
      AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Crow,
      Danielson, Darrington, Davis, Dunklin, Geddes, Ingram, Ipsen, Keough,
      King, Lee, McLaughlin, Noh, Richardson, Riggs, Risch, Sandy,
      Schroeder, Sorensen, Stegner, Thorne, Wheeler, Whitworth
      NAYS--Cameron, Hawkins
      Absent and excused--Deide, Frasure, Parry, Stennett, Twiggs
    Floor Sponsor - McLaughlin
    Title apvd - to House
03/16    To enrol
03/17    Rpt enrol - Sp signed - Pres signed
03/18    To Governor
03/23    Governor signed
         Session Law Chapter 195
         Effective: 07/01/99

Bill Text

H0023

                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                             IN THE HOUSE OF REPRESENTATIVES

                                    HOUSE BILL NO. 23

                                      BY MR. SPEAKER
                     Requested by: Public Employees Retirement System

 1                                        AN ACT
 2    RELATING TO THE PUBLIC EMPLOYEE RETIREMENT SYSTEM; AMENDING  SECTION  59-1325,
 3        IDAHO  CODE,  TO REQUIRE EMPLOYER CONTRIBUTIONS EACH PAY PERIOD, TO REVISE
 4        AND CLARIFY THE INTEREST CHARGES ON DELINQUENT EMPLOYER CONTRIBUTIONS  AND
 5        THE  PROCESS  FOR  COLLECTION OF DELINQUENT EMPLOYER CONTRIBUTIONS THROUGH
 6        THE STATE CONTROLLER.

 7    Be It Enacted by the Legislature of the State of Idaho:

 8        SECTION 1.  That Section 59-1325, Idaho Code, be, and the same  is  hereby
 9    amended to read as follows:

10        59-1325.  EMPLOYER REMITTANCE TO BOARD -- COLLECTION OF DELINQUENCIES. (1)
11      So  as  to be received not later than the twentieth day of each month e
12     E ach employer, or, where the  employer's  payroll  is  paid
13    separately by departments, each department of the employer, shall remit to the
14    retirement  board  all  contributions  required of it and its employees on the
15    basis of salaries paid by it during  the previous month   each
16    pay period together  with whatever contributions or contribution credits
17    may be required to correct previous errors  or  omissions.  These  remittances
18    shall be accompanied by such reports as are required by the board to determine
19    contributions  required and member benefit entitlements established under this
20    chapter . The board may charge regular interest for remittances  received
21    after  the  twentieth of the month at the   and, unless extended in
22    writing by the executive director, shall be remitted no later than twenty (20)
23    days after each pay date. Thereafter, unpaid contributions shall be considered
24    delinquent and interest will begin accruing at the greater of the   rate
25    of  interest  provided  in  section 28-22-104(1), Idaho Code , or regular
26    interest. The executive director may, in his discretion, waive these  interest
27    charges in extraordinary circumstances .
28        (2)  If  any employer shall fail or refuse to remit any such contributions
29    within thirty (30) days after the date due, the board may certify to the state
30    controller the fact of such failure or refusal and the amount  of  the  delin-
31    quent contribution or contributions, together with  its request that such
32    amount  be set over from funds of the delinquent employer to the credit of the
33    retirement fund   interest . A copy of such certification and
34    request shall be furnished the delinquent employer.
35        (3)    Within  ten  (10)  days  after  receipt  of  such  request,  t
36     T he state controller shall  draw his warrant for  pay-
37    ment  of  such amount out of moneys in the state treasury allocated to the use
38    of such employer during the current  fiscal  year      deduct  said
39    amount  as  an  offset, together with interest charges, from any funds payable
40    then or in the future to the delinquent employer and shall pay such amounts to
41    the retirement fund .

Statement of Purpose / Fiscal Impact

                      STATEMENT  OF  PURPOSE
                             RS08369
     
This bill relates to the timing of contribution payments under the
PERSI plan, interest charges on delinquent employer contributions,
and the collection of delinquent contributions through the state
controller.
     Historically, employers have remitted contributions to PERSI
on a monthly basis to accommodate antiquated payroll systems.  New
system changes within PERSI, as well as technological advances in
employer payroll systems, will facilitate remittance of
contributions each pay period rather than monthly.  This bill ties
remittances to pay periods while at the same time permitting the
executive director to grant exemptions to handle special employer
circumstances.
     The bill also resolves an inconsistency in the statute that
referred to statutory interest as "regular interest."  This
inconsistency is resolved by providing that interest accrues at the
greater of statutory interest or regular interest.
     Finally, the bill also clarifies the process by which
delinquent contributions and interest may be collected through the
state controller.  
                                
                                
                         FISCAL  IMPACT
None.
CONTACT   
Name:     Alan Winkle
Agency:   Public Employee Retirement System of Idaho (PERSI)
Phone:    334-2455

Statement of Purpose/Fiscal Impact                            H 23