(1) As provided by 2-7-514 , MCA, local government entities required to submit an annual financial report to the department must pay to the department, at the time the report is submitted, a filing fee as prescribed by ARM 2.4.402.

(2) If the required filing fee is not submitted with the annual financial report, the department will notify the local government entity of the filing fee requirement and of the amount due to the department, and of the penalties for failure to pay the required fee.

(3) If the required filing fee is not submitted to the department within 60 days of receipt of the annual report, the department may add to the filing fee a late payment penalty equal to 10% of the required filing fee for each month or portion of a month that the filing fee is delinquent in excess of 60 days.

(4) In addition to imposing the late payment penalty established in (3), the department may issue an order to all state agencies requiring each agency to withhold payment of any state financial assistance to the local government entity pending receipt of the required filing fee plus the late payment penalty.

(5) Upon receipt of the required filing fee plus the late payment penalty, the department will notify each state agency that any financial assistance withheld pursuant to the department's order is to be released to the local government entity.