Section 52-10-05 - Plans for coverage of employees of political subdivisions1. Each political subdivision of the state is hereby authorized to submit for approval by the state agency a plan for extending the benefits of title II of the Social Security Act [ 42 U.S.C. 401 et seq.], in conformity with applicable provisions of such Act, to employees of such political subdivision. Each such plan and any amendment thereof must be approved by the state agency if it finds that such plan, or such plan as amended is in conformity with such requirements as are provided in regulations of the state agency, except that no such plan may be approved unless:a. It is in conformity with the requirements of the Social Security Act and with the agreement entered into under section 52-10-03;b. It provides that all services which constitute employment as defined in section 52-10-02 and are performed in the employ of the political subdivision by employees thereof, shall be covered by the plan;c. It specifies the source or sources from which the funds necessary to make the payments required by subdivision a of subsection 3 and by subsection 4 are expected to be derived and contains a reasonable assurance that such sources will be adequate for such purpose;d. It provides for such methods of administration of the plan by the political subdivision as are found by the state agency to be necessary for the proper and efficient administration of the plan;e. It provides that the political subdivision will make such reports, in such form and containing such information, as the state agency may from time to time require, and comply with such provisions as the state agency or the secretary of health and human services may from time to time find necessary to assure the correctness and verification of such reports; andf. It authorizes the state agency to terminate the plan in its entirety, in the discretion of the state agency, if it finds that there has been a failure to comply substantially with any provision contained in such plan, such termination to take effect at the expiration of such notice and on such conditions as may be provided by regulations of the state agency and may be consistent with the provisions of the Social Security Act.2. The state agency may not finally refuse to approve a plan submitted by a political subdivision under subsection 1, and may not terminate an approved plan, without reasonable notice 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 section shall pay into the social security contribution fund, with respect to wages, as defined in section 52-10-02, at such time or times as the state agency may by regulation prescribe, contributions in the amounts and at the rates specified in the applicable agreement entered into by the state agency under section 52-10-03.b. Each political subdivision required to make payments under subdivision a is authorized, in consideration of the employee's retention in, or entry upon, employment after enactment of this chapter, to impose upon each of its employees, as to services which are covered by an approved plan, a contribution with respect to the employee's wages, as defined in section 52-10-02, not exceeding the amount of employee tax which would be imposed by the Federal Insurance Contributions Act if such services constituted employment within the meaning of that Act, and to deduct the amount of such contribution from the employee's wages as and when paid. Contributions so collected must be paid into the social security contribution fund in partial discharge of the liability of such political subdivision or instrumentality under subdivision a. Failure to deduct such contribution does not relieve the employee or employer of liability therefor.4. Delinquent payments due under subdivision a of subsection 3 must bear interest at the rate specified in the Social Security Act at 42 U.S.C. 418 and may be recovered by action in a court of competent jurisdiction against the political subdivision liable therefor or may, at the request of the state agency, be deducted from any other moneys payable to such subdivision by any department or agency of the state. In no case may the interest imposed hereby be less than five dollars. In addition, a penalty may be assessed on delinquent reports if such penalty is provided for in the Social Security Act at 42 U.S.C. 418. Any such penalty must be under the terms, conditions, and in the amounts specified in the Social Security Act. In no case may any penalty imposed hereby be less than five dollars.5.a. When the state, or any political subdivision as defined in section 52-10-02, is liable for an amount due under an agreement pursuant to this chapter, the state, or such political subdivision shall remain so liable until the secretary of health and human services is satisfied that the amount due has been paid to the secretary of the treasury.b. Notwithstanding subdivision a, the state, or any political subdivision as defined in section 52-10-02, is not liable for an amount due under an agreement pursuant to this chapter, with respect to the wages paid to individuals, after the expiration of the latest of the following periods:(1) Three years, three months, and fifteen days after the year in which such wages were paid;(2) Three years after the date on which such amount became due; or(3) Three years, three months, and fifteen days after January 1, 1962, unless prior to the expiration of such period the secretary of health and human services makes an assessment of the amount due from the state, or any political subdivision.Amended by S.L. 2017, ch. 57 (HB 1043),§ 9, eff. 8/1/2017.