(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.
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