Whenever a department, commission, board, council, agency, or public corporation incurs expenditures through contracts or agreements by which a nongovernmental person or entity agrees to provide services that are substantially similar to and in lieu of services heretofore provided, in whole or in part, by regular employees of the department, commission, board, council, agency, or public corporation covered by chapter 8 of title 36, those expenditures shall be subject to an assessment equal to five and one-half percent (5.5%) of the cost of the service. That assessment shall be paid to the retirement system on a quarterly basis in accordance with § 36-10-2(e).
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