38-703. Plans for coverage of employees of eligible political subdivisions; payroll audits

A. Each eligible political subdivision of this state may submit for approval by the state agency a plan for extending the benefits of title II of the social security act, in conformity with applicable provisions of the social security act, to employees of the eligible political subdivisions. The state agency shall approve each plan and any amendment of the plan if it finds that the plan or amendment of the plan is in conformity with requirements of the state agency, except that a plan shall not be approved unless:

1. It is in conformity with the requirements of the social security act and with the agreement entered into under section 38-702.

2. It provides that all services that constitute employment and that are performed in the employ of the eligible political subdivision by employees of the political subdivision are covered by the plan.

3. It provides for such methods of administration of the plan by the eligible political subdivisions that the state agency finds to be necessary for the proper and efficient administration of the plan.

4. It provides that the eligible political subdivision make reports, in the form and containing the information, the state agency from time to time requires, and comply with provisions the state agency or the commissioner of social security from time to time finds necessary to assure the correctness and verification of the reports.

B. The state agency shall not finally refuse to approve a plan submitted by an eligible political subdivision under subsection A of this section without reasonable notice and the opportunity for a hearing to the political subdivision affected by the refusal.