28 Tex. Admin. Code § 13.522 - Delegation of Functions to a Contracting Regulated Entity
(a) Delegation to regulated entity. An
approved PEO or the plan trustees may delegate to a contracting regulated
entity the responsibility to perform any requirement of this subchapter that
the contracting regulated entity is authorized by law to perform.
(b) Joint and several liability. If an
approved PEO or the plan trustees delegate responsibility to perform any
requirement of this subchapter, TDI in its sole discretion may hold the PEO,
the plan trustees, and the contracting regulated entity jointly or severally
liable for noncompliance with respect to the responsibilities
delegated.
(c) Notice of contract
with regulated entities. An approved PEO or the plan trustees must give the
commissioner a written notice of intent to enter into a contract with a
regulated entity at least 30 days before the effective date of that contract. A
notice of intent must include the information about the contracting regulated
entity required by §
13.532(b)(6) of
this title (relating to Application Requirements).
(d) Notice of termination of contract with
regulated entity. Except as provided in subsection (g) of this section, an
approved PEO or the plan trustees must give the commissioner a written notice
of intent to terminate a contract with a regulated entity at least 30 days
before the effective date of that termination.
(e) Third party administrator. An approved
PEO or the plan trustees may not terminate under any circumstances a contract
with the plan's third party administrator unless they have contracted with a
replacement third party administrator to perform the day-to-day operations of
the plan with no lapse in administrative services to the plan.
(f) Notice of replacement contracting
regulated entity. Except as provided in subsection (h) of this section, if an
approved PEO or the plan trustees intend to enter into a contract with a
regulated entity to perform the functions for which a terminating contracting
regulated entity was responsible, the approved PEO or the plan trustees must
provide the commissioner notice that complies with subsection (c) of this
section.
(g) Notice of contract
termination for cause. If an approved PEO or the plan trustees terminate a
contract with a regulated entity for cause as permitted by the terms of that
contract, the approved PEO or the plan trustees must give the commissioner
written notice of the contract's termination not later than five days after the
effective date of that termination, including a statement explaining whether
the functions for which the terminating contracting regulated entity is
responsible will be performed by the approved PEO or by another contracting
regulated entity.
(h) Notice of
intent to contract with replacement regulated entity. After a termination under
subsection (g) of this section, if the plan and trust functions will be
performed by another contracting regulated entity, the approved PEO or the plan
trustees must give the commissioner written notice of intent to enter into a
contract with that new regulated entity as soon as is practicable, but not
later than 10 days after the effective date of that contract. The notice of
intent must include the information about the contracting regulated entity
required by §
13.532(b)(6) of
this title.
Notes
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