Collection of Delinquent Payments From Local Governmental Units

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  1. In the event any political subdivision or other body qualifying as a political subdivision electing to cover its employees under chapter 35, part 2 of this title fails to remit in a timely manner funds determined by the actuary and/or board of trustees to be necessary to provide employer contributions or any delinquent fees, as provided in this chapter and chapter 35, part 2 of this title, then, and in that event, at the direction of the board of trustees, the commissioner of finance and administration is hereby authorized to withhold such sum or part of such sum from any state-shared taxes which are otherwise apportioned to the political subdivision.
  2. The deduction, where authorized, shall be made as a first charge against any moneys payable to an employer regardless of the source of such payment, and also regardless of purpose or contemplated use of such funds.
  3. In lieu of or in addition to the foregoing deductions, the board of trustees may proceed to recover the delinquent payments in a court of competent jurisdiction against the employer.


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