(a) If an employer applies for money provided by the United States, an agency of the United States, or a privately sponsored source, and if any of the money will pay part or all of an employee’s salary, the employer shall apply for any legally available money to pay state contributions required by § 825.404 or 830.201.
(b) When an employer receives money for state contributions from an application made in accordance with Subsection (a), the employer shall immediately send the money to the retirement system for deposit in the state contribution account.

Attorney's Note

Under the Texas Codes, punishments for crimes depend on the classification. In the case of this section:
ClassPrisonFine
Class C misdemeanorup to $500
For details, see

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Terms Used In Texas Government Code 825.406

  • Comptroller: means the state comptroller of public accounts. See Texas Government Code 312.011
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
  • United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005
  • Writ: A formal written command, issued from the court, requiring the performance of a specific act.

(c) Monthly, employers shall:
(1) report to the retirement system in a form prescribed by the system a certification of the total amount of salary paid from federal funds and private grants and the total amounts provided by the funds and grants for state contributions for the employees; and
(2) retain the following information:
(A) the name of each employee paid in whole or part from a grant;
(B) the source of the grant;
(C) the amount of the employee’s salary paid from the grant;
(D) the amount of the money provided by the grant for state contributions for the employee; and
(E) any other information the retirement system determines is necessary to enforce this section.
(d) The retirement system may:
(1) require from employers reports of applications for money;
(2) require evidence that the applications include requests for funds available to pay state contributions to the retirement system for employees paid from the grant; and
(3) examine the records of any employer to determine compliance with this section and rules promulgated under it.
(e) A person commits an offense if the person is an administrator of an employer and knowingly fails to comply with this section.
(f) An offense under Subsection (e) is a Class C misdemeanor.
(g) An employer who fails to comply with this section may not, after the failure, apply for or spend any money from a federal or private grant. The retirement system shall report alleged noncompliance to the attorney general, the Legislative Budget Board, the comptroller of public accounts, and the governor. The attorney general shall bring a writ of mandamus against the employer to compel compliance with this section.