TITLE public-finance

Part I. Comptroller of Public Accounts

Chapter 3. Tax Administration

Subchapter L. Motor Fuel Tax

34 TAC §3.201

The Comptroller of Public Accounts proposes new §3.201, concerning the motor fuel testing fee. As requested by the Commissioner of Agriculture and authorized by Texas Civil Statutes, Article 8614, the Comptroller of Public Accounts proposes a fee to be collected on a periodic basis from each distributor and supplier who deals in motor fuel. The purpose of the fee is to provide funds for the Texas Department of Agriculture to administer and enforce a program to test motor fuel for octane rating and alcohol content.

James LeBas, chief revenue estimator, has determined that for the first five-year period the rule will be in effect, the fiscal implications will be as follows:

Figure: 34 TAC §3.201 - Preamble

Mr. LeBas also has determined that for each year of the first five years the rule is in effect the public benefit anticipated as a result of enforcing the rule will be in providing funds for operating the motor fuel testing program. This rule is adopted under the Tax Code, Title 2, and does not require a statement of fiscal implications for small businesses. There is no significant anticipated economic cost other than the payment of the required fee for individuals who are required to comply with the proposed rule.

Comments on the proposal may be submitted to Bryant K. Lomax, Manager, Tax Policy Division, P.O. Box 13528, Austin, Texas 78711.

This new section is proposed under the Tax Code, §111.002, which provides the comptroller with the authority to prescribe, adopt, and enforce rules relating to the administration and enforcement of the provisions of the Tax Code, Title 2.

The new section implements Texas Civil Statutes, Article 8614, §9.

§3.201.Motor Fuel Testing Fee.

(a)

Motor fuel testing fee. An annual fee, as determined under subsection (b) of this section, is imposed on every person holding or required to hold a motor fuel distributor or supplier permit under the Tax Code, Chapter 153, as of January 1 of each year.

(b)

Annual fee amount. The fee is based on the total amount of net taxable gallons of gasoline and/or diesel fuel sold and reported to the comptroller on the permit holder's Texas Fuels Tax Report for the previous calendar year. The fee amount due is based on the following schedule.

Figure: 34 TAC §3.201(b)

(c)

Due date of the fee. The motor fuel testing fee shall be due on March 1 of each year, except that the fee for the year 1999 will be due July 1, 1999.

(d)

Report forms. Each holder of a motor fuels distributor or supplier permit must remit the fee on a form prescribed by the comptroller. The fact that a permit holder does not receive the form or does not receive the correct form from the comptroller does not relieve the permit holder of the responsibility of paying the required fee.

(e)

Payment of the fee. On or before the due date of each year, every person who held or was required to hold a motor fuels distributor or supplier permit on January 1 of that year shall remit to the comptroller the total fee amount due.

(f)

Penalty. Penalties due on delinquent fees and reports shall be imposed as provided by the Tax Code, §111.061.

(g)

Interest. Interest due on delinquent fees shall be imposed as provided by the Tax Code, §111.060.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 8, 1999.

TRD-9901431

Martin Cherry

Special Counsel

Comptroller of Public Accounts

Earliest possible date of adoption: April 18, 1999

For further information, please call: (512) 463-4062


Part III. Teacher Retirement System of Texas

Chapter 25. Membership Credit

Subchapter A. Service Eligible for Membership

34 TAC §§25.1, 25.2, 25.10

The Teacher Retirement System of Texas (TRS) proposes amendments to §25.1 concerning Full-Time Service, §25.2 concerning Bus Drivers Service Eligible for Membership and §25.10 concerning Student Employment.

These proposals are a part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rule continues to exist. These sections and others have been previously reviewed in an open meeting by the TRS Policy Committee. These sections and others are being posted for comments regarding whether the reasons for adopting the rules continue to exist.

The proposed amendment to §25.1 clarifies that full-time service is 20 or more hours per week and 4 and 1/2 months of service per school year. The proposed amendment to §25.2 clarifies credit for driving a school bus and amendments to §25.10 clarifies the language concerning student employment and membership in the system.

Ronnie Jung, Chief Financial Officer, has determined that for first five year period the sections as amended will be in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the sections as proposed.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the amendments are in effect the public benefit will be clarification and a more accurate reflection of current law. There will be no affect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the sections as proposed for each year of the first five years the proposals will be in effect.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas 78701, (512) 397-6400.

The amendments are proposed under the Government Code, Chapter 825, §825.102, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system.

Government Code, Chapter 822, Subchapter A is affected by these proposed amendments.

§25.1. Full-Time Service.

Employment by public, state-supported educational institutions in Texas for one-half or more of the standard work load at a rate comparable to the rate of compensation for other persons employed in similar positions is defined as regular, full-time service eligible for membership. Any employee of a public state-supported educational institution in Texas shall be considered to meet the requirements of the preceding sentence if his or her customary employment is for [ more than ] 20 hours or more for each [ one ] week and for four and one-half [ more than five ] months or more in one school year.

§25.2. Bus Drivers.

Persons regularly employed as bus drivers for routes approved by the Transportation Department of the Texas Education Agency are eligible for membership. A person will be considered regularly employed as a bus driver if his or her customary employment requires driving at least one such route per day.

§25.10. Student Employment.

(a)

A person employed in a Texas public college or university is not eligible for membership if that employment is conditioned upon enrollment as a student and the person has no other eligible employment during the same payroll period. No person may establish or reinstate credit for previously reported student employment.

(b)

A person who accepts employment conditioned upon enrollment as a student does not lose any rights from service established as a member when student enrollment was or is not an issue.

[A person employed in a Texas public college or university is not eligible for membership based upon that employment, will not have deductions made from compensation for that employment, and will not receive credit for that employment if both the following conditions apply:]

[ (1)

The employment is conditional upon the employee's being enrolled as a student at the same institution;]

[ (2)

The employee has no other employment during the same payroll period which is eligible for membership in TRS.]

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 5, 1999.

TRD-9901385

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


34 TAC §25.7, §25.8

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Teacher Retirement System of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Teacher Retirement System of Texas (TRS) proposes the repeal of §25.7 concerning Employees of Eleemosynary Institutions and §25.8 concerning the Scope of Membership.

This proposal is part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rule continues to exist. These sections and others have been previously reviewed in an open meeting by the TRS Policy Committee. These sections and others are being posted for comments regarding whether the reason for adopting the rules continue to exist.

The proposed repeal of §25. 7 and §25.8 is necessary as the rules have become obsolete as the law allowing TRS to cover such employees was repealed.

Ronnie Jung, Chief Financial Officer, has determined that for the first five-year period the repeals are in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the repeals.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the repeals are in effect the public benefit will be the deletion of outdated language from the rules. There will be no effect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the repeals as proposed.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas 78701, (512) 397-6400.

The repeals are proposed under §825.102 of the Government Code, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system.

No other laws are affected by the proposed repeals.

§25.7. Employees of State Eleemosynary Institutions.

§25.8. Scope of Membership.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 5, 1999.

TRD-9901378

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


Subchapter C. Unreported Service

34 TAC §25.46

The Teacher Retirement System of Texas (TRS) proposes an amendment to §25.46 concerning the Determination of Compensation Subject to Deposit and Credit.

This proposal is part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rule continues to exist. This section has been previously reviewed in an open meeting by the TRS Policy Committee. This section is being posted for comments regarding whether the reasons for adopting the rule continue to exist.

The proposed amendment to §25.46 deletes some outdated language concerning maintenance which is no longer considered for creditable service.

Ronnie Jung, Chief Financial Officer, has determined that for first five year period the section as amended will be in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the section as proposed.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the amendment is in effect the public benefit will be clarification and a more accurate reflection of current law. There will be no affect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the section as proposed for each year of the first five years the proposal will be in effect.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas 78701, (512) 397-6400.

The amendment is proposed under the Government Code, Chapter 825, §825.102, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system.

Government Code, Chapter 822, Subchapter B is affected by the proposed amendment.

§25.46. Determination of Compensation Subject to Deposit and Credit.

[ (a) ]

The amount of deposits due for unreported service will be calculated at the member contribution rate in effect for the year in which the service was rendered but for which no deposits or insufficient deposits were made. Contributions will be based on creditable compensation as determined under the law applicable at the time of the service.

[ (b)

Deposits for unreported service and credit for maintenance for school years in which maintenance is eligible for credit will be based on a valuation made by the executive secretary or a designee. The valuation may not exceed $400 per month. Maintenance consists of housing furnished the member in lieu of salary as a part of an employment contract between the public school and the member.]

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 5, 1999.

TRD-9901386

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


Subchapter D. Waiver

34 TAC §§25.51-25.55

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Teacher Retirement System of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Teacher Retirement System of Texas (TRS) proposes the repeal of §25.51 concerning Revocation of a Waiver, §25.52 concerning Effect of Waiver and Revocation, §25.53 concerning Absence for Five Consecutive Years, §25.54 concerning Years of Service Required and §25.55 concerning Deposit After Revocation.

This proposal is part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rule continues to exist. These sections and others have been previously reviewed in an open meeting by the TRS Policy Committee. These sections and others are being posted for comments regarding whether the reason for adopting the rules continue to exist.

The proposed repeals of §§25.51-25.55 are necessary because the rules are not needed as the topics concerning waivers are covered in the law at Government Code, Chapter 823, Subchapter C.

Ronnie Jung, Chief Financial Officer, has determined that for the first five-year period the repeals are in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the repeals.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the repeals are in effect the public benefit will be the deletion of outdated language from the rules. There will be no effect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the repeals as proposed.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas 78701, (512) 397-6400.

The repeals are proposed under §825.102 of the Government Code, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system.

Government Code, Chapter 823, Subchapter C is affected by this proposal.

§25.51. Revocation of Waiver.

§25.52. Effect of Waiver and Revocation.

§25.53. Absence of Five Consecutive Years.

§25.54. Years of Service Required.

§25.55. Deposit after Retirement.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 5, 1999.

TRD-9901379

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


Subchapter E. Military Service

34 TAC §§25.61, 25.64, 25.66

The Teacher Retirement System of Texas (TRS) proposes amendments to §25.61 concerning Service Credit for Eligible Military Duty, §25.64 concerning Crediting Fees, and §25.66 concerning Application for Military Credit.

These proposals are a part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rule continues to exist. These sections and others have been previously reviewed in an open meeting by the TRS Policy Committee. These sections and others are being posted for comments regarding whether the reasons for adopting the rules continue to exist.

The proposed amendment to §25.61 deletes some time periods which no longer have meaning for military duty eligible for service credit. The proposed amendment to §25.64 recognizes the change in law from ten to five years of TRS credit in order to purchase military service. The proposed amendments to §25.66 clarify the procedures in the application and payment for military credit.

Ronnie Jung, Chief Financial Officer, has determined that for first five year period the sections as amended will be in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the sections as proposed.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the amendments are in effect the public benefit will be clarification and a more accurate reflection of current law. There will be no affect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the sections as proposed for each year of the first five years the proposals will be in effect.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas 78701, (512) 397-6400.

The amendments are proposed under the Government Code, Chapter 825, §825.102, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system.

Government Code, Chapter 823, Subchapter D is affected by these proposed amendments.

§25.61. Service Credit for Eligible Military Duty.

(a)

A member with five years of credit for service in the public schools of Texas may receive additional retirement credit for active military duty . [ in any of the following periods: ]

[ (1)

school years during which the military draft was in effect (1940-41 through 1972-1973;]

[ (2)

a period of service directly resulting from the member's being called to active duty as a reservist, National Guard member, or draftee pursuant to federal law;]

[ (3)

a member's initial term of volunteer service under an enlistment which occurred while the military draft was in effect (before September 16, 1940, but not later than January 27, 1973);]

[ (4)

a member's term of volunteer military service on active duty.]

(b)-(c)

(No change.)

§25.64. Crediting Fee.

A crediting fee of 8.0% compounded annually shall be charged for the purchase of credit from the end of the year in which the member was first eligible to purchase the credit until payment for the credit is received. The date of first eligibility to purchase credit shall be the latest of the following:

(1)

the date the member obtains 5 [ 10 ] years' credit for service in the public schools of Texas;

(2)-(3)

(No change.)

§25.66. Application for Military Credit.

Members desiring to make deposits for military credit should request in writing to be billed for the cost of the credit. Requests should be addressed to Teacher Retirement System of Texas, 1000 Red River Street, Austin, Texas 78701-2698. Included with the request should be a certified or legible unaltered copy or copies of the member's service record showing the dates and nature of the member's active duty. The system may require the member to make available to it such other evidence as may be required to establish the member's eligibility for retirement credit and the amount of deposits due. When the system determines the duty eligible for credit, it shall bill members for the total amounts of deposits and fees due for the credit at the last address of the member of which the system has record. The member must [ sign the statements contained on the bill certifying the accuracy of the information provided on the bill and ] return the bill to the system with the total amount due for the military duty credit or with an installment payment agreement and all subsequent installment payments due . [ A member who requests a bill and submits all necessary evidence for crediting his or her military duty before the end of a school year shall have 30 days from the date the bill is transmitted by the system in which to submit the amount due or to return the installment payment agreement without owing any additional fees otherwise becoming due because of the intervening termination of the school year. ] Deposits for military duty credit will not be accepted after date of death, except to the extent permitted under the laws and rules governing installment payments, or date of service retirement of a member.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 5, 1999.

TRD-9901387

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


34 TAC §§25.62, 25.63, 25.65

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Teacher Retirement System of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Teacher Retirement System of Texas (TRS) proposes the repeal of §25.62 concerning Service During World War I, §25.63 concerning Required Service in Public Schools, and §25.65. concerning Effective Dates of Laws Extending Military Duty Credit.

This proposal is part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rule continues to exist. These sections and others have been previously reviewed in an open meeting by the TRS Policy Committee. These sections and others are being posted for comments regarding whether the reason for adopting the rules continue to exist.

The proposed repeal of §25.62 and §25.65 is necessary as the rules are obsolete because the law now allows all active duty military service without regard to specific dates. The repeal of §25.63 is proposed as the rule is not needed as the required service in public schools is covered in the law at Chapter 823, Subchapter D of the Government Code.

Ronnie Jung, Chief Financial Officer, has determined that for the first five-year period the repeals are in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the repeals.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the repeals are in effect the public benefit will be the deletion of outdated language from the rules. There will be no effect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the repeals as proposed.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas 78701, (512) 397-6400.

The repeals are proposed under §825.102 of the Government Code, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system.

Government Code, Chapter 823, Subchapter D is affected by this proposal.

§25.62. Service during World War I.

§25.63. Required Service in Public Schools.

§25.65. Effective Dates of Laws Extending Military Duty Credit.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 5, 1999.

TRD-9901380

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


Subchapter F. Veteran's Service Credit

34 TAC §25.75

The Teacher Retirement System of Texas (TRS) proposes an amendment to §25.75 concerning the Application of Eligible Active Military Duty under the Veteran's Reemployment Rights Act.

This proposal is a part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rule continues to exist. This section has been previously reviewed in an open meeting by the TRS Policy Committee. This section is being posted for comments regarding whether the reasons for adopting the rule continues to exist.

The proposed amendment to §25.75 clarifies the procedure for payment for eligible military service under the Veteran's Reemployment Rights Act and eliminates some unnecessary language from the rule.

Ronnie Jung, Chief Financial Officer, has determined that for first five year period the section as amended will be in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the section as proposed.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the amendment is in effect the public benefit will be clarification and a more accurate reflection of current law. There will be no affect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the section as proposed for each year of the first five years the proposal will be in effect.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas 78701, (512) 397-6400.

The amendment is proposed under the Government Code, Chapter 825, §825.102, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system.

Government Code, Chapter 823, Subchapter D, §823.304 is affected by the proposed amendment.

§25.75. Application for Eligible Active Military Duty under the Veteran's Reemployment Rights Act.

Members desiring to make deposits for service credit for eligible military duty under the Veteran's Reemployment Rights Act (VRRA) should request in writing to be billed for the cost of the credit. Requests should be addressed to Teacher Retirement System of Texas, 1000 Red River Street, Austin, Texas 78701-2698. Included with the request should be a certified or legible unaltered copy or copies of the member's service record showing the dates and nature of the member's military duty. Also included with the request should be a certification of the date of the member's application for reemployment with a Teacher Retirement System of Texas (TRS) covered employer or other proof of the date of employment with a TRS covered employer. The system may also require the member to make available to it such other evidence as may be required to establish the member's eligibility under the VRRA and §25.71 of this title (relating to Service Credit for Eligible Active Duty under the Veteran's Reemployment Rights Act) for retirement credit and the amount of the deposits due. When the system determines the duty is eligible for credit, it shall bill the member for the total amounts of deposits and feeds due for the credit at the last address of the member of which the system has record. The member must [ sign the statements contained in the bill and ] return the bill to the system with the total amount due for the eligible credit or with an installment payment agreement and all subsequent installment payments due . [ A member who requests a bill and submits all necessary evidence for crediting his military duty eligible under the VRRA and §25.71 of this title before the end of a school year shall have 30 days from the date the bill is transmitted by the system in which to submit the amount due or to return the installment payment agreement without owing any additional fees otherwise becoming due because of intervening termination of the school year. ] Deposits for military duty eligible for credit under the VRRA and §25.71 of this title will not be accepted after the date of death of a member, except to the extent permitted under the laws and rules governing installment payments.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 5, 1999.

TRD-9901388

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


Subchapter G. Purchase of Credit for Out-of-State Service

34 TAC §§25.82, 25.84, 25.85, 25.87

The Teacher Retirement System of Texas (TRS) proposes amendments to §25.82 concerning the Cost to Purchase Credit for Out of State Service, §25.84 concerning Reinstatement Fees, §25.85 concerning the Amount of Out of State Service Which Can Be Purchased and §25.87 concerning the Effective Date of Credit and Time for Payment.

This proposal is a part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rule continues to exist. These sections have been previously reviewed in an open meeting by the TRS Policy Committee. These sections are being posted for comments regarding whether the reasons for adopting the rules continues to exist.

The proposed amendment to §25.82 makes it clear that substitute service may not be used as a basis for out-of-state costs and amends the numbers of years of service credit required to be eligible to purchase out-of-state credit.

The proposed amendment to §25.84 corrects a reference to crediting for out-of-state service.

The proposed amendment to §25.85 changes the number of years from ten to five of service credit before out of state may be used to compute a benefit and the proposed amendment to §25.87 eliminates some dates that no longer have meaning under current law.

Ronnie Jung, Chief Financial Officer, has determined that for first five year period the sections as amended will be in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the sections as proposed.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the amendments are in effect the public benefit will be clarification and a more accurate reflection of current law. There will be no affect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the sections as proposed for each year of the first five years the proposals will be in effect.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas 78701, (512) 397-6400.

The amendments are proposed under the Government Code, Chapter 825, §825.102, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system.

Government Code, Chapter 823, Subchapter E, §823.401 is affected by the proposed amendments.

§25.82. Cost.

(a)

The cost of establishing out-of-state service is 12% per year of the full annual salary rate for the first year of service in Texas which is both after the out-of-state service and after September 1, 1956. Annual salary is limited to $8,400 for years prior to September 1, 1969, and $25,000 for years after September 1969 but before September 1, 1979. No limit exists for years after September 1, 1979. Cost will not be based on years granted for substitute service. In addition a crediting fee of 8.0% compounded annually of the amount of deposits due and paid shall be charged from the end of the school year in which the member was first eligible to purchase credit for such service until payment for the credit is received. The date of first eligibility to purchase credit for any year of out-of-state service shall be the latest of the following dates:

(1)

the date the member received 5 [ 10 ] years' credit for service in the public schools of Texas;

(2)-(4)

(No change.)

(b)

No deposits for out-of-state service credit may be made before the member accumulates 5 [ 10 ] years of credit for service in the public schools of Texas.

§25.84. Crediting [ Reinstatement ] Fees.

The crediting [ reinstatement ] fees for out-of-state service will be credited to the state contribution account.

§25.85. Amount of Out-of-State Service Which Can be Purchased.

(a)

(No change.)

(b)

No out-of-state service can be used to compute any benefit for any person with less than 5 [ 10 ] years service in Texas.

(c)

(No change.)

§25.87. Effective Date of Credit and Time for Payment.

(a)-(b)

(No change.)

[ (c)

Payment for at least one year or an installment payment agreement must accompany the application to purchase out-of-state service.]

[ (d)

Payment for out-of-state service shall be made before retirement.]

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 5, 1999.

TRD-9901389

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


34 TAC §25.83

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Teacher Retirement System of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Teacher Retirement System of Texas (TRS) proposes the repeal of §25.83 concerning Important Dates Relative to Out of State Service Eligible for Credit.

This proposal is part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rule continues to exist. This section and others has been previously reviewed in an open meeting by the TRS Policy Committee. This section and others are being posted for comments regarding whether the reason for adopting the rules continue to exist.

The repeal of §25.83 is proposed as the rule is no longer needed since the underlying laws have been repealed.

Ronnie Jung, Chief Financial Officer, has determined that for the first five-year period the repeal is in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the repeal.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the repeal is in effect the public benefit will be the deletion of outdated language from the rules. There will be no effect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the repeal as proposed.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas 78701, (512) 397-6400.

The repeal is proposed under §825.102 of the Government Code, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system.

No laws are affected by the proposed repeal.

§25.83. Out-of-State Service Eligible for Credit: Important Dates.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 5, 1999.

TRD-9901381

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


Subchapter H. Joint Service with Employees Retirement System

343 TAC §§25.103-25.105, 25.109-25.112

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Teacher Retirement System of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Teacher Retirement System of Texas (TRS) proposes the repeal of §25.103 concerning State Employee Service, §25.104 concerning Teacher and/or Auxiliary Employee Service, §25.105 concerning Reinstatements or Waivers, §25.109 concerning Auxiliary Employees, §25.110 concerning Required Members, §25.111 concerning Salaries, and §25.112 concerning Texas Research Institute of Mental Sciences Employees.

The proposed repeals are a part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rule continues to exist. These sections and others have been previously reviewed in an open meeting by the TRS Policy Committee. These sections and others are being posted for comments regarding whether the reason for adopting the rules continue to exist.

Sections 25.103-25.105, 25.109-25.111, are no longer needed as the joint service law with the Employees Retirement System was repealed and later replaced by a transfer law found in Government Code, Chapter 805. §25.112 is obsolete as the law regarding the transfer of service for the Texas Research Institute of Mental Sciences Employees was repealed.

Ronnie Jung, Chief Financial Officer, has determined that for the first five-year period the repeals are in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the repeals.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the repeals are in effect the public benefit will be the deletion of outdated language from the rules. There will be no effect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the repeals as proposed.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas 78701, (512) 397-6400.

The repeals are proposed under §825.102 of the Government Code, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system.

Government Code, Chapter 805 is affected by the proposed repeals.

§25.103. State Employee Service.

§25.104. Teacher and/or Auxiliary Employee Service.

§25.105. Reinstatements or Waivers.

§25.109. Auxiliary Employees.

§25.110. Required Members.

§25.111. Salaries.

§25.112. Texas Research Institute of Mental Sciences (TRIMS) Employees.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 5, 1999.

TRD-9901382

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


Subchapter H. Transfer of Credit Between TRS and ERS

34 TAC §25.113

The Teacher Retirement System of Texas (TRS) proposes an amendment to §25.113 and to the title of Subchapter H concerning the transfer of credit between TRS and the Employees Retirement System (ERS).

This proposal is a part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rule continues to exist. This section has been previously reviewed in an open meeting by the TRS Policy Committee. This section is being posted for comments regarding whether the reasons for adopting the rule continues to exist.

The proposed amendment to §25.113 adds some additional agencies to the transfer of certain state employees to ERS membership as a result of legislation and adds language to more accurately reflect current law. The proposed amendment to the title of the subchapter also more accurately reflects current law.

Ronnie Jung, Chief Financial Officer, has determined that for first five year period the section as amended will be in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the section as proposed.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the amendment is in effect the public benefit will be clarification and a more accurate reflection of current law. There will be no affect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the section as proposed for each year of the first five years the proposal will be in effect.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas 78701, (512) 397-6400.

The amendment is proposed under the Government Code, Chapter 825, §825.102, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system.

Government Code, Chapter 805 is affected by the proposed amendment.

§25.113. Transfer of Credit Between TRS and ERS.

(a)-(j)

(No change.)

(k)

Transfer of Certain State Employees to ERS.

(1)

Certain state employees have been [ are being ] transferred to ERS membership as a result of legislation enacted by the 73rd Texas Legislature , Regular Session . Among these are employees of the Texas Education Agency, employees of the Texas Surplus Property Agency transferred to the General Services Commission, [ and ] some employees of the Texas Rehabilitation Commission , the Texas School for the Deaf, the Texas School for the Blind, the Higher Education Coordinating Board, and the Texas Youth Commission . Such employees are eligible to transfer TRS credit to ERS for benefit purposes under the Government code, Chapter 805 subject to the modifications contained in this section.

(2)

Employees whose agencies have been transferred to ERS coverage, including the Texas Education Agency, [ and ] the Texas Rehabilitation Commission, the Texas School for the Deaf, the Texas School for the Blind, The Higher Education Coordinating Board, and the Texas Youth Commission, may not retire under TRS after the effective date of the transfer, unless they again become TRS members based on other employment and subsequently obtain TRS service credit qualifying them for TRS retirement , except as provided for in Government Code, §805.002(a) .

(3)-(4)

(No change.)

(l)

Death benefits. Service credit of a person may not be transferred between systems if:

(1)

(No change.)

(2)

The beneficiaries for death benefits in each system are not identical. Except, when only reinstated service is being transferred and no beneficiary designation was made at or after the time of reinstatement, a transfer will be allowed.

(m)-(n)

(No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 5, 1999.

TRD-9901390

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


Subchapter I. Verification of Service

34 TAC §§25.121-25.123

The Teacher Retirement System of Texas (TRS) proposes amendments to §25.121 concerning responsibility in the verification of service, §25.122 concerning the affidavit related to the verification of service and §25.123 concerning certification of the affidavit related to the verification of service.

This proposal is a part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rules continues to exist. These sections have been previously reviewed in an open meeting by the TRS Policy Committee. These sections are being posted for comments regarding whether the reasons for adopting the rule continues to exist.

The proposed amendment to §25.131 clarifies that verification of service must be done on TRS forms and the proposed amendment to §25.122 requires that an affidavit for unreported service must be signed by an employer. The proposed amendment to §25.123 adds the certified reporting official to the list of people who may certify service.

Ronnie Jung, Chief Financial Officer, has determined that for first five year period the sections as amended will be in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the sections as proposed.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the amendments are in effect the public benefit will be clarification and a more accurate reflection of current law. There will be no affect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the sections as proposed for each year of the first five years the proposals will be in effect.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas, 78701, (512) 397-6400.

The amendments are proposed under the Government Code, Chapter 825, §825.102, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system.

Government Code, Chapter 823 is affected by the proposed amendment.

§25.121.Responsibility.

Verification of prior service is the responsibility of the member. Verification of unreported service must be done by the employer on a form prescribed by TRS.

§25.122.Affidavit.

Each member with prior service must make affidavit of the correctness of the record of that service. For unreported service the employer must certify the service and compensation paid and the member must sign the affidavit to show the service was rendered.

§25.123.Certification.

The correctness of this affidavit must be certified by an official of the school where the service was rendered. This can be done by the superintendent, business manager, certified reporting official, secretary of the school board, or treasurer of the school board at the time the certification is made. The certification must be based upon the existing records maintained by the school and must be notarized.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 5, 1999.

TRD-9901391

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


34 TAC §25.125

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Teacher Retirement System of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Teacher Retirement System of Texas (TRS) proposes the repeal of §25.125 concerning corroborating evidence in the verification of service.

This proposal is part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rule continues to exist. This section has been previously reviewed in an open meeting by the TRS Policy Committee. This section is being posted for comments regarding whether the reason for adopting the rule continue to exist.

Section 25.125 is no longer needed as the rule is now in the law at §825.403(j) of the Government Code.

Ronnie Jung, Chief Financial Officer, has determined that for the first five-year period the repeal is in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the repeals.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the repeal is in effect the public benefit will be the deletion of outdated language from the rules. There will be no effect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the repeals as proposed.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas, 78701, (512) 397-6400.

The repeal is proposed under §825.102 of the Government Code, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system.

Government Code, Chapter 825, §825.403(j) is affected by this proposal.

§25.125.Corroborating Evidence.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 5, 1999.

TRD-9901383

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


Subchapter J. Creditable Time and School Year

34 TAC §§25.131-25.133

The Teacher Retirement System of Texas (TRS) proposes amendments to §25.131 concerning required service, §25.132 concerning vacation time, and §25.133 concerning the school year.

This proposal is a part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rules continues to exist. These sections have been previously reviewed in an open meeting by the TRS Policy Committee. These sections are being posted for comments regarding whether the reasons for adopting the rule continues to exist.

The proposed amendment to §25.131 adds language to allow oral or written contracts per current law and clarifies that credit for substitute service must be rendered and paid before credit is obtained. The proposed amendment to §25.132 corrects the title of the section to more accurately reflect that paid leave, not just vacation time is creditable and additional language explains what kind of paid leave is allowed. The proposed amendment to §25.133 allows oral or written contracts and clarifies the reference to the years that the use of such oral or written agreements is optional and the years it is mandatory.

Ronnie Jung, Chief Financial Officer, has determined that for first five year period the sections as amended will be in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the sections as proposed.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the amendments are in effect the public benefit will be clarification and a more accurate reflection of current law. There will be no affect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the sections as proposed for each year of the first five years the proposals will be in effect.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas, 78701, (512) 397-6400.

The amendments are proposed under the Government Code, Chapter 825, §825.102, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system. In addition, Government Code, Chapter 823, §823.002 authorizes the Board of Trustees of the Teacher Retirement System to determine by rule how much service in any year is equivalent to one year of service credit.

The Government Code, Chapter 823 is affected by these proposed amendments

§25.131.Required Service.

A member must serve at least 4 1/2 months in an eligible position during the school year to receive credit for a year of service. Exceptions to this requirement are the following:

(1)-(2)

(No change.)

(3)

A full year of service credit will be granted either to a substitute who qualifies for membership by virtue of rendering and paying for 90 or more days as a substitute per §25.4 of this title (relating to Employee Substitutes) [ the amount of service specified under §25.4 of this title (relating to Employee Substitutes)] ] or to an employee who enters into an employment contract or oral or written work agreement for a period which would qualify the employee for a year of service credit under the other provisions of this section but who actually renders only the amount of service specified in §25.4 of this title[ , provided that the early termination of service is the result of a justifiable absence as defined in the Teacher Retirement Law ].

Paid Leave [ Vacation ] Time.

Paid leave [ Vacation ] time , including vacation, sick, and administrative leave, used during the normal course of business and for which a member is paid shall be considered as service in determining a creditable year. This ruling does not include summer months between school terms when no service is rendered even though the member may be paid in 12 monthly payments. Certification of payment and copies of the employer's policy must be provided to TRS on request.

§25.133.School Year.

For the purpose of granting creditable time toward retirement a "school year" shall be one of the following:

(1)-(2)

(No change.)

(3)

a period not to include more than 12 months, extending from the beginning date of a "qualified contract" or an oral or written work agreement year through August 31 of the following calendar year or to the beginning date of a subsequent qualified contract or oral or written work agreement year, whichever is earlier. Use of this "qualified contract year" is optional for school years 1970-1971 through 1974-1975 but shall be mandatory for all persons under a qualified contract after the 1974-1975 school year. Use of written or oral work agreement which is not a qualified contract is optional for school years 1970-1971 through 1994-1995, but shall be mandatory for all persons employed under a written or oral work agreement after the 1994-1995 school year. A "qualified contract" or "work agreement" is any employment agreement in which service each year under the agreement is to begin on or after July 1 and is to extend past August 31 of the same calendar year . A "qualified contract" further [ and which ] imposes upon the employing school district a legal obligation to employ and compensate the employee for the entire duration of the agreed employment period.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 5, 1999.

TRD-9901392

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


Subchapter K. Developmental Leave

34 TAC §25.151

The Teacher Retirement System of Texas (TRS) proposes an amendment to §25.151 concerning developmental leave, eligibility, and cost.

This proposal is a part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rule continues to exist. This section has been previously reviewed in an open meeting by the TRS Policy Committee. This section is being posted for comments regarding whether the reasons for adopting the rule continues to exist.

The proposed amendment to §25.151 updates a reference to the law.

Ronnie Jung, Chief Financial Officer, has determined that for first five year period the section as amended will be in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the section as proposed.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the amendments are in effect the public benefit will be clarification and a more accurate reflection of current law. There will be no affect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the section as proposed for each year of the first five years the proposals will be in effect.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas, 78701, (512) 397-6400.

The amendment is proposed under the Government Code, Chapter 825, §825.102, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system.

Government Code, Chapter 823, §823.402 is affected by the proposed amendment.

§25.151.Developmental Leave, Eligibility, Cost.

(a)

(No change.)

(b)

The member's employer is responsible for determining whether a member's leave meets the definition of "developmental leave" in Texas Government Code, §823.402(b) [ Civil Statutes, Title 110B, §33.402(b) ].

(c)-(d)

(No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 5, 1999.

TRD-9901393

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


Subchapter L. Other Special Service Credit

34 TAC §25.161

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Retirement System of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Teacher Retirement System of Texas (TRS) proposes the repeal of §25.161 concerning employment for institutions subsequently becoming state educational institutions.

This proposal is part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rule continues to exist. This section has been previously reviewed in an open meeting by the TRS Policy Committee. This section is being posted for comments regarding whether the reason for adopting the rule continue to exist.

Section 25.161 is no longer needed as the rule is now in the law underlying this rule was repealed.

Ronnie Jung, Chief Financial Officer, has determined that for the first five-year period the repeal is in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the repeal.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the repeal is in effect the public benefit will be the deletion of outdated language from the rules. There will be no effect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the repeal as proposed.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas, 78701, (512) 397-6400.

The repeal is proposed under §825.102 of the Government Code, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system.

No statutes are affected by this proposed repeal.

§25.161.Employment for Institutions Subsequently Becoming State Educational Institutions.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 5, 1999.

TRD-9901384

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


Subchapter N. Installment Payments

34 TAC §25.183, §25.185

The Teacher Retirement System of Texas (TRS) proposes amendments to §25.183 concerning nonpayment of installment payments and §25.185 concerning amounts not refundable with respect to installment payments.

This proposal is a part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rules continues to exist. These sections have been previously reviewed in an open meeting by the TRS Policy Committee. These sections are being posted for comments regarding whether the reasons for adopting the rule continues to exist.

The proposed amendment to §25.183 adds language to clarify what constitutes nonpayment and the proposed amendment to §25.185 deletes language regarding membership fees as the law was repealed.

Ronnie Jung, Chief Financial Officer, has determined that for each year of the first five years the sections as amended will be in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the section.

Ronnie Jung, Chief Financial Officer, has determined that the public benefit will be a more accurate reflection of current law and elimination of some unnecessary language. He has also determined that there will be no anticipated economic cost to the public, small businesses, or to the persons who are required to comply with the sections as proposed for each year of the first five years the proposals will be in effect.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas, 78701, (512) 397-6400.

The amendments are proposed under the Government Code, Chapter 825, §825.102, which authorizes the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system.

No other laws are affected by these proposed changes.

§25.183.Nonpayment.

The following occurrences shall be treated as nonpayment of installment payments that are due:

(1)

a check returned for any reason; [ a check returned for insufficient funds or for a closed account; ]

(2)

any bank draft which is not honored; [ insufficient funds in an account to pay an automatic bank draft previously authorized by the member; or ]

(3)

payroll deductions not received by the retirement system; or

(4)

a payment made by payroll deduction for which a district making the deduction subsequently takes credit.

§25.185.Amounts Not Refundable.

(a)-(c)

(No change.)

[(d)

Inactive membership fees paid as part of installment payments to establish service credit are not refundable after the installment payments have established at least one year of service credit.]

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 5, 1999.

TRD-9901394

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


Chapter 27. Termination of Membership and Refunds

34 TAC §§27.1, 27.7, 27.9

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Teacher Retirement System of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Teacher Retirement System of Texas (TRS) is proposes the repeal of §27.1 concerning termination of membership because of absence, §27.7 concerning termination of membership and retired members, and §27.9 concerning reinstatement of transferred ERS covered service.

This proposal is part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rule continues to exist. These sections and others have been previously reviewed in an open meeting by the TRS Policy Committee. These sections are being posted for comments regarding whether the reason for adopting the rules continue to exist.

These proposed repeals eliminate sections of the rules that are obsolete. The repeal of §27.1 deletes language that is included in the TRS law at §822.003 of the Government Code. The repeal of §27.7 is proposed as it is a duplication of language included in 34 TAC, Part III, Chapter 31, §31.11 of the TRS rules. Section 27.9 is no longer needed as the transfer law to which it refers was repealed. A new law found in Chapter 805 of the Government Code allows a transfer of credit at retirement and rules covering those situations are found in 34 TAC, Part III, Chapter 25, Subchapter H.

Ronnie Jung, Chief Financial Officer, has determined that for the first five-year period the repeals are in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the repeals.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the repeals are in effect the public benefit will be the deletion of outdated language from the rules. There will be no effect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the repeals as proposed.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas, 78701, (512) 397-6400.

The repeals are proposed under §825.102 of the Government Code, which authorizes the Board of Trustees Teacher Retirement System to adopt rules for the administration of the retirement program.

Section 27.1, §27.7--Government Code, Chapter 822, Subchapter A, §822.003, §27.9--Government Code, and Chapter 805 are affected by these proposals

§27.1.Termination Because of Absence.

§27.7.Retired Members.

§27.9.Reinstatement of Transferred ERS Covered Service.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 5, 1999.

TRD-9901395

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


34 TAC §27.3, §27.6

The Teacher Retirement System of Texas (TRS) proposes amendments to §27.3 concerning a false affidavit for a refund and §27.6 concerning the reinstatement of a withdrawn account.

These proposals are a part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rule continues to exist. These sections have been previously reviewed in an open meeting by the TRS Policy Committee. These sections are being posted for comments regarding whether the reason for adopting the rules continue to exist.

The proposed amendment to §27.3 changes the date for making an affidavit from the date that the person receives the refund to the date a refund is mailed due to changes is the law. The proposed amendment to §27.6 eliminates membership fees from the amounts required to reinstate a withdrawn account as the requirement was deleted from the law.

Ronnie Jung, Chief Financial Officer, has determined that for first five year period the sections as amended will be in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the section as proposed.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the amendments are in effect the public benefit will be clarification and a more accurate reflection of current law. There will be no affect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the sections as proposed for each year of the first five years the proposals will be in effect.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas, 78701, (512) 397-6400.

The amendments are proposed under the Government Code, Chapter 825, §825.102, which authorizes the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system.

Government Code, Chapter 822, Subchapter A and Government Code, Chapter 823, Subchapter F are affected by these proposals.

§27.3.False Affidavit.

A member who makes affidavit that he has permanently terminated his employment in state-supported public education in Texas but who is so employed or who contracts for such employment before TRS mails the refund [ he receives the refund of his account ] shall not be entitled to the refund. If the refund is made [ by error or ] because the retirement system is not aware of the continued employment, necessary steps will be taken to secure the redeposit of the withdrawn account. No benefits will be paid until this withdrawn account is returned to the retirement system.

§27.6.Reinstatement of an Account.

Any member who has withdrawn an account resulting in the cancellation of service credit may reinstate this account and receive credit for the canceled service by meeting the following requirements:

(1)

(No change.)

(2)

Redeposit the amount withdrawn [ plus membership fees ] for the years during which the membership was terminated;

(3)-(4)

(No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 5, 1999.

TRD-9901396

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


Chapter 29. Benefits

Subchapter A. Retirement

34 TAC §§29.8, 29.9, 29.22

The Teacher Retirement System of Texas (TRS) proposes amendments to §29.8 concerning retirement payment plans, §29.9 concerning survivor benefits, and §29.22 concerning approval of disability retirements.

These proposals are a part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rule continues to exist. These sections and others have been previously reviewed in an open meeting by the TRS Policy Committee. These sections are being posted for comments regarding whether the reason for adopting the rules continue to exist.

The proposed amendment to §29.8 changes the date that benefit payments to the member cease in the event of the death of the retired member and adds language addressing an additional retirement option, Option 5 which was added by law in 1995. In addition, language restricting those eligible to elect the pop-up option has been deleted in accordance with the changes in the law. The proposed amendment to §29.9 reflects increases in the survivor benefits paid and outlined in recent law. The proposed amendment to §29.22 changes the title of "executive secretary" to "executive director" which was changed in the law.

Ronnie Jung, Chief Financial Officer, has determined that for first five year period the sections as amended will be in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the sections as proposed.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the amendments are in effect the public benefit will be clarification and a more accurate reflection of current law. There will be no affect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the sections as proposed for each year of the first five years the proposals will be in effect.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas, 78701, (512) 397-6400.

The amendments are proposed under the Government Code, Chapter 825, §825.102, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system.

Section 29.8--Government Code, Chapter 824, Subchapters A, B, and C, §29.9--Government Code, Chapter 824, Subchapters E and F, and §29.22--Government Code, Chapter 824, Subchapter D are affected by these proposals.

§29.8.Retirement Payment Plans.

(a)

The standard annuity benefit is payable throughout life for service retirees or for the duration of the disability for disability retirees with at least 10 years of service, with payments ceasing the month following [ at ] the death of the retired member. If the retired member did not receive annuity payments equal to his accumulated contributions there shall be paid to his beneficiary an amount equal to the retired member's accumulated contributions less the total amount of retirement benefits paid to the retired member.

(b)

An option which permits the retiree to reduce his own annuity with monthly benefits continuing to a beneficiary after his death may be selected in lieu of the standard annuity. The options are:

(1)-(4)

(No change.)

(5)

a reduced allowance payable throughout life with the provision that upon the death of the retired member, three-fourths of the reduced allowance shall be continued throughout the life of, and paid to, the person named before retirement. Upon the death of the retired member's beneficiary who was receiving an Option 5 annuity, if the total payment of benefits to the retired member and his beneficiary under this option was less than the accumulated contributions of the retired member, then the estate or heirs of the beneficiary shall be refunded an amount equal to the retired member's accumulated contributions less the total amount of Option 5 benefits which had been paid to both annuitants.

(c)

For Option 1 [ and for ] , Option 2, and Option 5 , if the beneficiary predeceases the retiree, the retiree's annuity will be increased (pop-up) to the standard service annuity that the retiree would otherwise be entitled to receive if the retiree had not selected Option 1 or 2 or 5 but had selected the standard annuity. The standard annuity shall be adjusted by the early age reduction factor in effect at the time of retirement if the member retired under the early age service retirement provisions. The standard annuity shall also be adjusted for any post retirement increases in retirement benefits authorized by law for the standard annuity after the date of retirement.

(1)-(2)

(No change.)

[(d)

Subsection (c) of this section applies:

[(1)

to members who retired on service retirement after August 31, 1989, or disability retirement after August 31, 1992; and

[(2)

to members who retired on service retirement under Option 1 or 2 after April 30, 1989, and who elect in writing no later than September 30, 1989, to receive an annuity reduced as necessary to implement the pop-up feature in accordance with actuarial tables effective September 1, 1989. ]

§29.9.Survivor Benefits.

In addition to any of these retirement annuity payments, the designated beneficiary of any retired member is eligible to receive survivor benefits of one of the following:

(1)

(No change.)

(2)

a lump sum payment of $2,500 and one of the following:

(A)

to the widow, widower, or dependent parent, $200 [ $100 ] per month from age 65:

(B)

to the widow or widower with children under the age of 18, $300 [ $200 ] per month until the youngest child reaches the age of 18; benefits cease until age 65 and then resume at $200 [ $100 ] per month;

(C)

to the guardian of dependent children under the age of 18, $300 [ $200 ] per month for two or more children and $200 [ $100 ] per month when there is only one;

(D)-(F)

(No change.)

§29.22.Approval of Disability Retirements.

The executive director [ secretary ] is authorized to approve disability retirements after they have been approved by a majority of the medical board.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 5, 1999.

TRD-9901397

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


Subchapter B. Death Before Retirement

34 TAC §29.33, §29.34

The Teacher Retirement System of Texas (TRS) proposes amendments to §29.33 concerning absence from service and §29.34 concerning limitations with respect to death before retirement.

These proposals are a part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rule continues to exist. These sections have been previously reviewed in an open meeting by the TRS Policy Committee. These sections are being posted for comments regarding whether the reason for adopting the rules continue to exist.

The proposed amendment to §29.33 substitutes a reference to a rule that was repealed with a reference to the current law and clarifies the date when absence from service begins. The proposed amendment to §29.34 changes the title of the "executive secretary" to "executive director" as this has been changed in the law.

Ronnie Jung, Chief Financial Officer, has determined that for first five year period the sections as amended will be in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the sections as proposed.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the amendments are in effect the public benefit will be clarification and a more accurate reflection of current law. There will be no affect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the sections as proposed for each year of the first five years the proposals will be in effect.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas, 78701, (512) 397-6400.

The amendments are proposed under the Government Code, Chapter 825, §825.102, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system.

Section 29.33--Government Code, Chapter 824, Subchapter E, §824.403, §29.34--Government Code, and Chapter 824, Subchapter A, §824.006 are affected by these proposals.

§29.33.Absence from Service.

If a [ the ] member is absent from service at the time of death and the absence does not meet the description in §824.403 of the Government Code [ §29.31 of this title (relating to Entitlement) ], the beneficiary is eligible to receive only the accumulated deposits of the member. For this purpose, absence from service begins September 1 following the last eligible reported membership service for which the member received credit for a year of service.

§29.34.Limitations.

(a)

(No change.)

(b)

Final payment of any annuity will be made at the end of the month [ preceding the month ] in which there occurs the event which terminates the annuity.

(c)-(d)

(No change.)

(e)

An adult beneficiary or guardian of a minor beneficiary is required to make a selection of payment within 60 days after the death of a member. In circumstances of unusual hardship, the executive director [ secretary ] may extend this period for a reasonable time. A beneficiary may change his selection of payment only during the period allocated for making the original selection and before the issuance of any warrant to him in full or partial payment of death or survivor benefits pursuant to his selection.

(f)

(No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 5, 1999.

TRD-9901398

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


Chapter 31. Employment After Retirement

34 TAC §§31.3, 31.7, 31.8, 31.10, 31.11, 31.13

The Teacher Retirement System of Texas (TRS) proposes amendments to §31.3 concerning permissible substitute employment after retirement, §31.7 concerning regular employment having no effect on annuity, §31.8 concerning employment on one-half time basis, §31.10 concerning monthly certified statements, §31.11 concerning requirements to become an active member after retirement, and §31.13 concerning employment up to three months on a one-time only trial basis for disability retirees.

This proposal is part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rule continues to exist. These sections have been previously reviewed in an open meeting by the TRS Policy Committee. These sections are being posted for comments regarding whether the reason for adopting the rules continue to exist.

The proposed amendment to §31.3 removes language limiting substitute service to 120 days for service retirees as the law was changed in 1995 to remove the limit. In addition, a proposed amendment to the rule reflects new law allowing a disability retiree to work 90 days as a substitute or one-half time. The proposed amendment to §31.7 adds language to reflect the limitation in the law on disability retirees for 90 days as a substitute or one-half time. The proposed amendment to §31.8 makes it clear that the employment after retirement laws apply to public schools, not just high schools. It also clarifies that the reference to 12 days with respect to one-half time employment for bus drivers is determined on a monthly basis. The proposed amendment to §31.10 changes the title of "executive secretary" to "executive director" as the title was changed by law in 1993. The proposed amendment to §31.11 eliminates the language requiring payment of membership fees for each year of service when becoming an active member after retirement. Additional language proposed in §31.13 clarifies that references to §31.7 and §31.12 deal with service retirees only. The language requiring an advance designation with respect to work that occurred in three consecutive months of a school year as that requirement was deleted from the law. Finally, language is added to make clear that the law permits a three month exception with respect to employment for disability retirees in addition to the 90 days of work per school year provided in Title 34, TAC, §31.3.

Ronnie Jung, Chief Financial Officer, has determined that for each year of the first five period the sections as amended will be in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the sections as proposed.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the amendments are in effect the public benefit will be clarification and an accurate reflection of current law. There will be no affect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the sections as proposed.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas, 78701, (512) 397-6400.

The amendments are proposed under the Government Code, Chapter 825, §825.102, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system.

Government Code, Chapter 824, Subchapter G is affected by these proposals.

§31.3.Permissible Substitute Employment.

Any person receiving a service retirement annuity may be employed in a month as a substitute in a public educational institution without affecting the annuity payment for that month, provided [ that the person's total substitute employment in Texas public education in the school year has not exceeded 120 days, that the person does not have other employment in Texas public education during the month, and that ] the pay for work as a substitute does not exceed the daily rate of substitute pay established by the employer. A person receiving a disability retirement annuity may be employed as a substitute in a month without affecting the annuity for that month subject to the same conditions as apply to service retirees except that the total substitute employment and one-half time employment in the school year may not exceed 90 days. The exception described in this section is not available to persons who have elected the exception described in §31.12 of this title (relating to Employment up to Six Months on as Much as Full Time). The exception described in this section does not apply for the first month after the person's effective date of retirement (or the first two months if the person's retirement date has been set on May 31 under §29.14 of this title (relating to Eligibility for Retirement at the End of May) or under §29.21 of this title (relating to Effective Date for Disability Retirement).

§31.7.Regular Employment Having No Effect on Annuity.

Any person receiving a service retirement annuity may, without affecting payment of the annuity, be employed during any month in Texas public education on as much as one-half the full-time load for the particular position according to the personnel policies of the employer, provided the person is not also employed as a substitute in that month. The exception described in this section is not available to persons who have elected the exception described in §31.12 of this title (relating to Employment up to Six Months on as Much as Full Time). The exception described in this section does not apply for the first month after the person's effective date of retirement (or the first two months if the person's retirement date has been set on May 31 under §29.14 of this title (relating to Eligibility for Retirement at the End of May)). Any person receiving a disability retirement annuity, may without affecting payment of the annuity, be employed for a period not to exceed 90 days during any school year in Texas public education on as much as one-half the full-time load or as a substitute for the particular position according to the personnel policies of the employer.

§31.8.One-Half Time.

"One-half time" employment shall in no case exceed 92 clock hours in any calendar month. Determination of half-time will be made on a monthly basis using calendar months. Actual course instruction in state-supported colleges (including junior colleges), universities, and public [ high ] schools shall not exceed during any month one-half the normal load for full-time employment at the same teaching level. (This would usually limit employment in instruction in colleges and universities to no more than two three-semester hour courses during any one semester of the long term, two two-semester hour courses during a nine-week term, or one three-semester hour course during a six-week term. Employment in instruction in public [ high ] schools would usually be limited to no more than two courses during any one semester of the long term.) "One-half time" employment for bus drivers shall in no case exceed 12 days in any calendar month . Work by a bus driver for any part of a day shall count as a full day for purposes of this section.

§31.10.Monthly Certified Statement.

The employer will furnish the retirement system a monthly certified statement of all employment after retirement containing information necessary for the executive director [ secretary ] to classify employment as "substitute," "not more than one-half time," or "regular employment exceeding one-half time" within the provisions of this section.

§31.11.Requirements To Become an Active Member after Retirement.

(a)

A person retired under a service retirement annuity may again become an active member, receive additional membership service credit, and re-retire under provisions of the retirement formula then in effect provided the retiree meets the following requirements:

(1)-(3)

(No change.)

[(4)

pays membership fees for each year of service after his return to employment.]

(b)

(No change.)

§31.13.Employment up to Three Months on a One-Time Only Trial Basis for Disability Retirees.

(a)

A person receiving a disability retirement annuity may not exercise the exceptions dealing with service retirees described in §31.7 of this title (relating to Regular Employment Having No Effect on Annuity) and in §31.12 of this title (relating to Employment up to Six Months on as Much as Full Time).

(b)

(No change.)

(c)

The work must occur:

(1)

in a period, designated by the employee [ in advance ], of three consecutive months of a school year; and

(2)

(No change.)

(d)-(e)

(No change.)

(f)

The three month exception outlined in this rule is in addition to the 90 days of work allowed in §31.3 of this title (relating to Permissible Substitute Employment) for disability retirees.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 5, 1999.

TRD-9901399

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


Chapter 33. Legal Competence

34 TAC §33.1, §33.2

The Teacher Retirement System of Texas (TRS) proposes amendments to §33.1 concerning legal competence in the approval of an optional settlement related to a minor and §33.2 concerning legal competence and the payments for the account of a minor child.

This proposal is part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rule continues to exist. These sections and others have been previously reviewed in an open meeting by the TRS Policy Committee. These sections are being posted for comments regarding whether the reason for adopting the rules continue to exist.

The proposed amendments to §33.1 and §33.2 remove a specific reference to the Probate Code and insert a reference to "law". The broader wording allows reference to all Texas laws dealing with minors, rather than only those found in the Probate Code.

Ronnie Jung, Chief Financial Officer, has determined that for first five year period the sections as amended will be in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the sections as proposed.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the amendments are in effect the public benefit will be clarification and a more accurate reflection of current law. There will be no affect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the sections as proposed for each year of the first five years the proposal will be in effect.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas, 78701, (512) 397-6400.

The amendments are proposed under the Government Code, Chapter 825, §825.102, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system.

No other laws are affected by these proposed changes.

§33.1.Approval of Optional Settlement; Minor.

Any selection of an optional settlement of a death claim in favor of a minor child who has not had the disabilities of minority removed cannot be accepted by the Teacher Retirement System of Texas unless it has been approved by the guardian of the estate of the child or as otherwise provided by the law [ Probate Code ].

§33.2.Payments for the Account of a Minor Child.

Payments for the account of a minor child who has not had the disabilities of minority removed cannot be made except to the guardian of the estate of the child or as otherwise provided by the law [ Probate Code ].

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 5, 1999.

TRD-9901400

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


Chapter 41. Health Care Benefits [ Insurance ]

34 TAC §41.1, §41.3

The Teacher Retirement System of Texas (TRS) proposes amendments to §41.1 concerning the enrollment periods for the Texas Public School Retired Employees Group Insurance Program and §41.3 concerning the group insurance advisory committee. In addition, TRS proposes to amend the title of the Chapter from Insurance to Health Care Benefits.

This proposal is part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rule continues to exist. These sections have been previously reviewed in an open meeting by the TRS Policy Committee. These sections are being posted for comments regarding whether the reason for adopting the rules continue to exist.

The proposed amendment to the Title of Chapter 41 changes the title of the section to be more inclusive as the current law indicates. The proposed amendment to §41.1 amends the title of the section to reflect changes in the name of the insurance program to conform with the title in the law. In addition, proposed amendments change the deadline for the initial enrollment period for eligible Teacher Retirement System retirees and adds an enrollment period deadline for eligible disability retirees. The proposed amendment to the title of §41.3 changes the name of the committee reference to conform with the advisory committee included in the law. In addition, new language outlines the duties and reporting mechanism of the retirees advisory committee. Finally, the title of the executive director is changed from the former reference of executive secretary.

Ronnie Jung, Chief Financial Officer, has determined that for first five year period the sections as amended will be in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the sections as proposed.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the amendments are in effect the public benefit will be clarification and a more accurate reflection of current law. There will be no affect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the sections as proposed for each year of the first five years the proposals will be in effect.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas 78701, (512) 397-6400.

The amendments are proposed under the Government Code, Chapter 825, §825.102, which authorizes the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system. In addition, Insurance Code, Article 3.50-4, §5 authorizes the Board of Trustees of the Teacher Retirement System to pass rules relating to the insurance program considered necessary by the trustees.

Insurance Code, Article 3.50-4 is affected these proposed amendments. Chapter 41.

§41.1.Enrollment Periods for the Texas Public School [ Retired ] Employees Group Insurance Program.

(a)

[ The initial enrollment period for eligible Teacher Retirement System retirees of their surviving spouses to elect coverage for themselves or their dependents under the Texas Public School Retired Employees Group Insurance Program (TRS-Care), including any increased level of coverage, shall end on January 31, 1987, if the retiree's effective date of retirement or date of death occurred before January 1, 1987. ]

[ (b) ]

The initial [ such ] enrollment period for eligible Teacher Retirement System Retirees [ who retire after December 31, 1986 ], or surviving spouses of eligible retirees [ who die after December 31, 1986 ], will end:

(1)

for eligible service retirees at the later of :

(A)

31 days after their effective retirement date; or [ and ]

(B)

the 31st day following the last day of the month in which their election to retire is received by TRS.

(2)

for surviving spouses, 31 days after the end of the month in which the eligible retiree died or 31 days following the date of notice of eligibility sent by the Texas Public School [ Retired ] Employees Group Insurance Program to the survivor, whichever is later.

(3)

for eligible disability retirees, 31 days after the date that the disability retirement is approved by the TRS Medical Board.

(b)

[ (c) ] The enrollment period for a surviving spouse of a deceased active member, as defined by the Insurance Code, Article 3.50-4, §2, Subdivision 11, and for a surviving dependent child, as defined by The Insurance Code, Article 3.50-4, §2, Subdivision 13, will end 31 days after the end of the month in which the eligible member or retiree died or 31 days following the date of notice of eligibility sent by the Texas Public School [ Retired ] Employees Group Insurance Program to the survivor, whichever is later.

(c)

[ (d) ] Notwithstanding the provisions of subsections (a) and (b)[ , and (c) ] of this section:

(1)

a participant in TRS-Care 1 will have coverage increased to TRS-Care 2 upon becoming eligible for Medicare;

(2)

A retiree may elect coverage for a spouse within 31 days of the date on which the retiree is married;

(3)

A retiree or surviving spouse may add coverage for children within 31 days after the date on which the retiree or surviving spouse first acquires a child eligible for coverage under TRS-Care;

(4)

a participant shall be entitled to all applicable rights under the Federal Public Health Service Act (COBRA), Title XXII.

(d)

[ (e) ] A participant's dependent coverage, if elected, will continue until the end of the month of the participant's death.

Retirees Advisory Committee [ Group Insurance Advisory Committee ].

(a)

The task and purpose of the Retirees Advisory Committee is to:

(1)

hold public hearings on group insurance benefits;

(2)

recommend to the board minimum standards and features of the plan or plans that it considers appropriate; and

(3)

recommend to the board desirable changes in rules and legislation affecting the program.

(b)

[ (a) ] The [ State ] Board of Trustees of the Teacher Retirement System of Texas will designate the chairman [ and vice chairman ] of the Retirees Advisory Committee [ Group Insurance Advisory Committee ].

(c)

[ (b) ] A majority of the committee will constitute a quorum.

(d)

[ (c) ] The executive director [ secretary ] of the retirement system will provide a secretary to the committee to prepare minutes of the committee's meetings. The executive director [ secretary ] shall be custodian of the records of the committee.

(e)

[ (d) ] The executive director [ secretary ] may designate the time, dates, and place of the meetings of the committee. The committee shall meet at least twice per year, and at the call of the board.

(f)

[ (e) ] In the event of an emergency, a majority of the committee's members may call a meeting by notifying the executive director in writing at least 10 days before the meeting. [ A majority of the committee may call an emergency meeting by notifying the executive secretary in writing of their action. ]

(g)

[ (f) ] The executive director [ secretary ] shall file all meeting notices for the committees as required by the Texas Open Meetings law.

(h)

The committee will report to the Benefits Committee of the Board or directly to the Board as appropriate.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 8, 1999.

TRD-9901416

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


§41.3.34 TAC §41.11

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Teacher Retirement System of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Teacher Retirement System of Texas (TRS) is proposes the repeal of §41.11 concerning active member insurance contingency reserve fee.

This proposal is part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rule continues to exist. This section has been previously reviewed in an open meeting by the TRS Policy Committee. This section is being posted for comments regarding whether the reason for adopting the rule continues to exist.

The proposed repeal eliminates a section of the rules that is obsolete. The Legislature deleted the contingency reserve fee from the law.

Ronnie Jung, Chief Financial Officer, has determined that for the first five-year period the repeal is in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the repeal.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the repeal are in effect the public benefit will be the deletion of outdated language from the rules. There will be no effect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the repeal as proposed.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas 78701, (512) 397-6400.

The repeal is proposed under §825.102 of the Government Code, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system and under the Insurance Code, Article 3.50-4, §5 , which authorizes the Teacher Retirement System to adopt rules for the administration of the TRS insurance program. In addition, §7A(g) of Article 3.50-4 provides that the fee in question expires after the 1996-97 school year.

Insurance Code, Article 3.50-4, §7A(g) is affected by this proposed repeal.

§41.11.Active Member Insurance Contingency Reserve Fee.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 8, 1999.

TRD-9901417

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


Chapter 43.
Adjudicative Hearings

34 TAC §§43.1, 43.3-43.6, 43.8-43.13, 43.16, 43.25, 43.36-43.39, 43.43, 43.45-43.47

The Teacher Retirement System of Texas (TRS) proposes amendments to §43.1 concerning administrative review of individual complaints, §43.3 concerning definitions related to adjudicative hearings, §43.4 concerning decisions subject to review by an adjudicative hearing, §43.5 concerning a request for adjudicative hearing, §43.6 concerning filing of documents, §43.8 concerning extensions, §43.9 concerning docketing of adjudicative hearing, §43.10 concerning the authority of executive secretary to grant relief, §43.11 concerning classification of pleadings, §43.12 concerning form of petitions and other pleadings, §43.13 concerning filing of pleadings and amendments, §43.16 concerning notice of hearing, §43.25 concerning conduct of hearing, §43.36 concerning ex parte consultations, §43.37 concerning reporters and transcripts, §43.38 concerning dismissal without hearing, §43.39 concerning summary judgment, §43.43 concerning subpoenas, §43.45 concerning final decisions and appeals to the Board of Trustees, §43.46 concerning rehearing and §43.47 concerning procedures not otherwise provided

This proposal is part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rule continues to exist. These sections have been previously reviewed in an open meeting by the TRS Policy Committee. These sections are being posted for comments regarding whether the reason for adopting the rules continue to exist.

These specific proposals recognize an administrative reorganization where the chief officer rather than a division head makes the decision that may be appealed within the agency; changes the title of executive secretary to executive director as the law was changed; adds the duties set in law for the State Office of Administrative Hearings (SOAH); deletes some unneeded language; adds a section on dismissal and SOAH authority; allows service by electronic means; updates a statutory reference; allows hearing in Austin, but not necessarily at the retirement building; clarifies ex parte consultations in accordance with the law; clarifies the final decision area and the rehearing area by changing some of the deadlines in compliance with the law and for consistency.

Ronnie Jung, Chief Financial Officer, has determined that for first five year period the sections as amended will be in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the sections as proposed.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the amendments are in effect the public benefit will be clarification and a more accurate reflection of current law. There will be no affect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the sections as proposed for each year of the first five years the proposals will be in effect.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas 78701, (512) 397-6400.

The amendments are proposed under the Government Code, Chapter 825, §825.102, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system.

No other laws are affected by these proposed amendments.

§43.1.Administrative Review of Individual Complaints.

The Teacher Retirement System of Texas (TRS) is divided into administrative divisions which are further divided into departments for the efficient implementation of its duties. Any person who desires any action from TRS must consult with the proper department within TRS and comply with all proper requirements for completing forms and providing information to that department. In the event that a person is not satisfied with the determination, decision, or action of department personnel, the person may complain to the appropriate supervisors within the department and division. If not satisfied after consulting with the proper supervisory personnel, the person may appeal the decision to the administrative head of the appropriate division within the time period established by the supervisory personnel. The chief officer or equivalent person of the appropriate division [ division head ] shall mail a written final administrative decision.

§43.3.Definitions.

The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise:

(1)

Board - The Board of Trustees of the Teacher Retirement System of Texas

(2)

Contested Case - A proceeding in which the legal rights, duties, or privileges of a party are to be determined by the Teacher Retirement System [ board ] after an opportunity for adjudicative hearing.

(3)

Executive Director [ Secretary ] - The executive director [ secretary ] of the Teacher Retirement System of Texas. When the executive director determines that a need exists, the executive director at his or her discretion may appoint a person to accomplish the duties assigned in this chapter to the executive director.

(4)

Hearing Officer - Any person appointed by the executive director, or by the State Office of Administrative Hearings (SOAH), [ secretary ] to conduct a contested case hearing.

(5)

Member - A person who is a member, retiree, or beneficiary of the Teacher Retirement System.

(6)

Order - The whole or a part of the final disposition, whether affirmative, negative, injunctive, or declaratory in form, of a hearing officer, the executive director, or the board in a contested case [ matter other than rulemaking ].

(7)

Party - Each person named or admitted in a contested case.

(8)

Person - Any natural person.

(9)

Pleading - A written allegation by the parties or the Teacher Retirement System of Texas of their or its respective claims. Pleadings may take the form of applications, petitions, appeal letters, complaints, briefs, exceptions, replies, motions, notices, or answers.

(10)

TRS - The Teacher Retirement System of Texas.

(11)

Trustee - One of the elected or appointed members of the decision making body defined as the board.

(12)

With prejudice - Final and binding.

[ Presiding hearing officer

- The hearing officer appointed to hear the present case may also be referred to as the hearing officer.]

[ Proceeding

- Any hearing, investigation, inquiry, or other fact-finding or decision-making procedure, including the denial of relief or the dismissal of an appeal if the matter is a contested case.]

§43.4.Decisions Subject to Review by an Adjudicative Hearing.

Any interested person shall be entitled to appeal the decision of a chief officer or designee [ division head ] with regard to the following:

(1)-(8)

(No change.)

§43.5.Request for Adjudicative Hearing.

On a matter over which TRS has jurisdiction and authority to grant relief, a [ A ] party may appeal the final decision of a chief officer or designee [ division head ] by filing a petition for adjudicative hearing with the executive director [ secretary ] within 45 days from the date the chief officer's or designee's [ division head's ] final administrative decision is mailed. The petition should conform to the requirements of §43.12 of this title (relating to Form of Petitions and Other Pleadings.)

§43.6.Filing of Documents.

All documents relating to any proceeding pending or to be instituted before the board shall be filed with the executive director [ secretary ] or hearing officer at 1000 Red River Street, Austin, Texas 78701-2698.

§43.8.Extensions.

Unless otherwise provided by statute, the time for filing any of the documents mentioned in this section may be extended, upon the filing of a motion, prior to the expiration of the applicable period of time, showing that there is good cause for such extension of time and that the need for the extension is not caused by the neglect, indifference, or lack of diligence of the party making the motion. A copy of any such motion shall be served upon all other parties of record to the proceeding contemporaneously with its filing. In the case of filings which initiate a proceeding or which are made before a hearing officer has been assigned the matter, the executive director [ secretary ] will determine whether good cause exists and whether an extension should be granted. In the case of filings made in a proceeding after a SOAH hearing officer has been assigned the matter. [ the hearing officer will determine whether good cause exists and whether an extension should be granted. ]

§43.9.Docketing of Adjudicative Hearing , Dismissal, and SOAH Authority .

(a)

On a matter over which TRS has jurisdiction and authority to grant relief, the [ The ] executive director [ secretary ] shall assign the petition a docket number , provide all parties notice of the docket number, and appoint a hearing officer or refer the matter to the State Office of Administrative Hearings which shall assign an administrative law judge for a hearing in accordance with the law and SOAH rules. [ and shall schedule the case for hearing on a date at least 10 days after the issuance of notice of the hearing date to all parties. The executive secretary, the board of trustees, or the presiding hearing officer may reschedule the hearing in the interests of justice or administrative necessity or for good cause. ]

(b)

The executive director may dismiss matters over which TRS has no jurisdiction or no authority to grant relief. [ The initial notice shall be given not less than 10 days prior to hearing by the hearing officer. ]

(c)

Prior to docketing an appeal, the executive director or a designee may review the pleadings filed with TRS to determine the sufficiency. If the pleadings do not materially comply with these rules, the executive director shall return the pleadings to the person filing them, along with reasons for the return. The person shall be given a reasonable time (not to exceed 90 days) to file corrected pleadings. If the pleadings are not corrected to substantially comply with the rules, the executive director may dismiss the complaint with prejudice.

(d)

When a contested case is referred to SOAH and during the period of time the case is before SOAH, the rules for SOAH shall be in force and will be followed should there be any conflict between those rules and these.

(e)

The executive director may dismiss a petition that is not timely filed in accordance with these rules.

§43.10.Authority [ of Executive Secretary ] to Grant Relief.

At any time after the petition is filed and before the hearing is conducted, the executive director [ secretary ] may grant the relief sought by the petitioner and seek dismissal of the case [ dismiss the petition ], provided that the interest of other individual parties are not adversely affected. The SOAH hearing officer may dismiss the case in accordance with SOAH rules.

§43.11.Classification of Pleadings.

Pleadings filed with the executive director [ secretary ] shall be appeal letters, notices, applications, appeals, claims, answers, exceptions, replies, motions, or briefs. Regardless of any error in the designation of a pleading, it shall be accorded its true status in the proceeding in which it is filed.

§43.12.Form of Petitions and Other Pleadings.

(a)-(c)

(No change.)

(d)

The original petition for an adjudicative hearing should also include the name, address, telephone number of appellant, the name, and, if known, the tax number of any member whose interest or whose beneficiary's interest may be involved in the case. The petition should further identify all persons who may have a material interest in the outcome of the case, the basis for that interest, and such person's last known address. If such information is not provided on the original petition, the executive director [ secretary ], board of trustees, or presiding hearing officer may require submission of such information before proceeding with the hearing.

(e)-(g)

(No change.)

[ (h)

The executive secretary or hearing officer may review pleadings filed with TRS to determine their sufficiency under these sections. If the pleadings do not materially comply with these sections, the executive secretary shall return the pleadings to the person filing them, along with reasons for the return. The person shall be given a reasonable time (not to exceed 90 days) to file corrected pleadings. If the pleadings are not corrected to substantially comply with this section, the executive secretary may dismiss the complaint with prejudice.]

§43.13.Filing of Pleadings and Amendments.

(a)

(No change.)

(b)

The filing of motions, answers, amended pleadings, and corrected pleadings shall not be permitted to delay any hearing unless the executive director [ secretary ], board of trustees, or presiding hearing officer determines that such delay is necessary in order to prevent injustice or to protect the public interest and welfare.

(c)

When a hearing is before a SOAH hearing officer, the rules for SOAH dealing with this subject shall be in force and will be followed should there be any conflict between those rules and these.

§43.16.Notice of Hearing and Other Action.

(a)

Notices of hearing, proposals for decision, and all other rulings, orders, and actions by TRS shall be served upon all parties or their attorneys of record in person or at their last known address by mail. Service by mail is complete upon deposit in the mail, properly addressed, with postage prepaid. Service may also be accomplished by electronic mail if all parties agree. In that case, the sender shall also file the original of the document with the hearing officer and the sender has the burden of proving the date and time of receipt of the document. Electronic mail may not be used with documents produced pursuant to a discovery request. On motion by any party or on its own motion, TRS may serve notice of a hearing on any person whose interest in the subject matter will be directly affected by the final decision in the case.

(b)-(d)

(No change.)

§43.25.Conduct of Hearing.

(a)

(No change.)

(b)

All hearings will be held in Austin, Texas unless all parties agree to another site. [ in the offices of the Teacher Retirement System of Texas in Austin, unless for good cause the hearing officer shall designate another place of hearing. ]

(c)-(d)

(No change.)

(e)

Where the proceeding is initiated at the executive director's [ secretary's ] or the board's own call, or where several proceedings are heard on a consolidated record, the officer [ examiner ] shall designate who shall open and close and at what stage intervenors shall be permitted to offer evidence.

(f)-(i)

(No change.)

§43.36.Ex Parte Consultations.

Unless required for the disposition of ex parte matters authorized by law, the executive director, any hearing officer, and any member of the Board of Trustees who may [ the hearing officer or employees of TRS assigned to ] render a decision that may become final under this Chapter or [ to ] make findings of fact and conclusions of law in a contested case may not communicate, directly or indirectly, in connection with any issue of fact or law with any agency, person, party, or their representatives, except on notice and opportunity for all parties to participate. [ A TRS employee may communicate ex parte with other employees of TRS pursuant to the authority provided in, the Administrative Procedure and Texas Register Act, Section 14(q), employees of TRS assigned to ] To the extent permitted by law, the executive director, any hearing officer, and any member of the Board of Trustees who may render a decision that may become final under this Chapter or [ to ] make findings of fact and conclusions of law in a contested case, may communicate ex parte with employees of TRS who have not participated in any hearing in the case for the purpose of utilizing the special skills or knowledge of the agency and its staff in evaluating the evidence.

§43.37.Reporters and Transcript.

(a)-(b)

(No change.)

(c)

The executive director [ secretary ] may exclude any stenographic reporter for late delivery or poor quality of work in previous hearing.

(d)

(No change.)

§43.38.Dismissal Without Hearing.

(a)

(No change.)

(b)

The hearing officer [ examiner ]shall dismiss the appeal of any person who has filed written notice of the appeal but who has defaulted by:

(1)-(3)

(No change.)

(c)

For good cause, the executive director [ secretary ] may permit reinstatement of a dismissed appeal.

§43.39.Summary Judgment.

(a)

(No change.)

(b)

A party adversely affected by a summary judgment decision may appeal the decision to the board of trustees provided written notice of appeal is filed with the executive director [ secretary ] within 10 days after the decision is issued. If no such notice of appeal is timely filed, the decision rendered in the summary judgement proceeding shall be the final decision of TRS.

§43.43.Subpoenas.

(a)

The issuance of subpoenas in any proceeding shall be governed by the Administrative Procedure and Texas Register Act (Texas Government Code, Section 2001.089 [ Civil Statutes, Article 6252-13a, Section 14) ]. Upon a written request by a party or upon the motion of the executive director [ secretary ], board of trustees, or presiding hearing officer, TRS may issue subpoenas addressed to the sheriff to require that attendance of witnesses and the production of books, records, papers, or other objects as may be necessary and proper for the purposes of a hearing.

(b)-(c)

(No change.)

§43.45.Final Decisions and Appeals to the Board of Trustees.

(a)

The hearing officer or administrative law judge shall issue proposed conclusions of law and findings of fact and/or a proposal for decision in accordance with Chapter 2001 of the Government Code. [ The final decision in a matter subject to an adjudicative hearing will be rendered within 120 days of the date the hearing is finally closed, unless the hearing officer or executive secretary states a shorter period at the time the hearing is closed or unless another decision date is required by law. ]

(b)

Exceptions to SOAH's proposed final decision shall be filed with the executive director within 15 days of the date the proposed final decision was issued. Replies to any exception shall be filed within 15 days of the date the exception is filed. Exceptions shall state with specificity any error of fact or law alleged to have been made by the hearing officer and references shall be given to exhibits or testimony where supporting evidence is found. [ Within 75 days of the completion of the hearing, the hearing officer shall forward his proposal for decision and the record to the executive secretary . The hearing officer shall also serve a copy of the proposal for decision on the parties. The parties shall have 15 days from the date the proposal was served to file exceptions to or present briefs on the proposal and 25 days from the date the proposal was served to file replies, unless the executive secretary modifies the filing deadlines. ]

(c)

The executive director [ secretary ]shall then render a decision in each case [ or shall submit the case to the board of trustees for consideration with a proposal for decision. ] The executive director may accept or modify the conclusions of law, findings of fact, and/or proposal for decision under the circumstances set out in Section 2001.058 of the Government Code or a fiduciary responsibility as a trustee of the TRS Trust established in the Texas Constitution. If changes are made, the executive director shall state in writing the specific reason and legal basis for each change. A copy of the decision [ or the proposal for decision ] shall be served on the parties by the executive director [ secretary ].

(d)

[ (c) ] Any party adversely affected by a decision of the executive director [ secretary ], other than the Teacher Retirement System of Texas (TRS), may appeal the decision to the board of trustees, provided that a written notice of appeal is filed with the executive director [ secretary ] within 20 [ 10 ] days after the decision of the executive director [ secretary ] is served [ issued ]. If no such notice of appeal is timely filed, [ or if the next regularly scheduled meeting of the board of trustees will occur after the deadline for a final decision established under this section, and the parties, other than TRS, are unwilling to waive the deadline for a final decision until that meeting, ] the decision of the executive director [ secretary ] shall be the [ final ] decision of TRS. If notice of appeal is timely filed, the decision of the executive director [ secretary ] shall serve as a proposal for decision for a hearing before the board.

(e)

[ (d) ] If a decision of the executive director [ secretary ] is appealed, the parties may file additional exceptions or briefs and replies if the executive director [ secretary rejected the hearing officer's proposed decision or ] modified the hearing officer's proposal [ statement of reasons for the proposed decision ] or the proposed findings of fact or conclusions of law. Additional exceptions or briefs must be filed and served at the same time as the notice of appeal. [ Replies, if any, must be filed no later than 20 days after the decision of the executive secretary is issued. ] The executive director [ secretary ] may modify the filing deadlines.

(f)

[ (e) ] The final decision by the board of trustees in an appeal [ or in a case originally set before the board of trustees ] shall be based upon the existing record in the case[ , unless the board of trustees orders the hearing to be reopened ]. The board of trustees may change a finding of fact or conclusion of law made by the administrative law judge, or may vacate or modify the proposal for decision, only, if the board determines:

(1)

that the administrative law judge did not properly apply or interpret applicable law, agency rules, written policies provided to the judge, or prior administrative decisions;

(2)

that a prior administrative decision on which the administrative law judge relied is incorrect or should be changed; or

(3)

that a technical error in a finding of fact should be changed; or

(4)

that the change is needed based on a fiduciary responsibility as a trustee of the TRS Trust established in the Texas Constitution.

§43.46.Rehearings.

(a)

A party adversely affected by a final decision in a case must file a motion for rehearing not later than the 20th day after the date on which the party or party's attorney or record is notified of the decision or order by the executive director or the decision or order of the board of trustees when an appeal to the board is made. [ within 20 days after the date the party or his attorney of record is notified of the final decision. If substantially new or amended evidence is presented in the motion which, in the judgment of the executive secretary , may cause the board of trustees to reverse the previous decision, the motion shall be granted. A grant or denial of the motion shall be issued within 45 days after the date the final decision is rendered. If action by the board or trustees is not taken within 45-day period and the period for taking action has not been extended by the board, the motion for rehearing is overruled by operation of law 45 days after the date the party or his attorney of record is notified of the final decision. ]

(b)

A reply to the motion for rehearing must be filed with TRS not later than the 30th day after the date on which the party or the party's attorney of record is notified as required by Chapter 2001of the Government Code concerning the decision or order that may become final.

(c)

The executive director shall act on a motion for rehearing not later than the 45th day after the date on which the party or party's attorney of record is notified as required by Chapter 2001 of the Government Code concerning the decision or order that may become final or the motion is overruled by operation of law.

(d)

A party or attorney of record notified by mail is presumed to have been notified on the date on which the notice is mailed.

§43.47.Procedures Not Otherwise Provided.

If, in connection with any hearing, the executive director [ secretary ] and the hearing officer determine that there are no statutes or other applicable rules resolving particular procedural questions then before the agency, the executive director [ secretary ] will direct the parties to follow procedures consistent with the purpose of these sections.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 8, 1999.

TRD-9901419

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


34 TAC §43.22

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Teacher Retirement System of Texas or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Teacher Retirement System of Texas (TRS) proposes the repeal of §43.22, relating to the appointment of a hearing office for an adjudicative hearing.

This proposal is part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rule continues to exist. This section has been previously reviewed in an open meeting by the TRS Policy Committee. This section is being posted for comments regarding whether the reason for adopting the rules continue to exist.

The proposed repeal of §43.22 will eliminate language regarding the appointment of hearing officers. A separate submission includes proposed amendments to §43.9 concerning docketing of an adjudicative hearing that will address the appointment of hearing officers.

Ronnie Jung, Chief Financial Officer, has determined that for each year of the first five years the repeal will be in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the repeal.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the repeal is in effect the public benefit will be the deletion of outdated language from the rules resulting in a clearer explanation of the appeals process. There will be no affect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the proposed repeal for each year of the first five years the repeal will be in effect.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas 78701, (512) 397-6400.

The repeal is proposed under § 825.102 of the Government Code, which authorizes the Board of Trustees of Teacher Retirement System to adopt rules for the administration of the retirement fund.

No other laws are affected by the proposed repeal.

§43.22.Hearing Officer.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 8, 1999.

TRD-9901418

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


Chapter 47. Qualified Domestic Relations Orders

34 TAC §§47.3, 47.5, 47.6

The Teacher Retirement System of Texas (TRS) proposes amendments to §47.3 concerning review of qualified domestic relations orders, §47.5 concerning orders not qualified and §47.6 the appeal of notice that order is not

This proposal is part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rule continues to exist. These sections have been previously reviewed in an open meeting by the TRS Policy Committee. These sections and others are being posted for comments regarding whether the reason for adopting the rules continue to exist.

The proposed amendments to each of these sections changes the title of head of the agency from "executive secretary" to "executive director". The title was changed by law in 1993.

Ronnie Jung, Chief Financial Officer, has determined that for each year of the first five years the section as amended will be in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the section.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the amendments are in effect the public benefit will be the deletion of outdated language and the use of the legally correct title within the rules. There will be no affect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the sections as proposed for each year of the first five years the proposals will be in effect.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas 78701, (512) 397-6400.

The amendments are proposed under the Government Code, Chapter 825, §825.102, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system. In addition, the Acts of the 73rd Legislature, 1993, Chapter 812, §16 authorized the title changes.

No other laws are affected by these proposed changes.

§47.3.Review of Orders.

The executive director [ secretary ] of TRS or the executive director's [ secretary's ] designee shall review the order for compliance with requirements imposed by statute or rule. Upon completion of the review, the executive director [ secretary ] or the designee shall notify the member or retiree and each alternate payee in writing of the determination.

§47.5.Orders Not Qualified.

The executive director [ secretary ] or the executive director's [ secretary's ] designee shall provide a written notice of any determination that an order is not a qualified domestic relations order. The notice shall identify the provisions of the order that do not meet the requirements of applicable statutes or rules and shall explain how the provisions do not meet applicable requirements.

§47.6.Appeal of Notice That Order is Not Qualified.

A determination by the executive director [ secretary ] or the executive director's [ secretary's ] designee that an order is not a qualified domestic relations order may be appealed directly to a district court of Travis County. No appeal to the board of trustees of the Teacher Retirement System of Texas is required prior to the appeal to a district court. However, a party adversely affected by a determination of the executive director [ secretary ] or the designee must file a motion for reconsideration with the executive director [ secretary ] no later than 20 days after the date such determination is rendered as a prerequisite to an appeal to a district court.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 8, 1999.

TRD-9901420

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115


Chapter 49. Collection of Debts

34 TAC §§49.1, 49.3, 49.5, 49.7

The Teacher Retirement System of Texas (TRS) is proposes amendments to §49.1 concerning administrative procedures for the collection of debts, §49.3 concerning referrals of matters to attorney general for collection, §49.5 concerning records pertaining to persons or entities liable for delinquent obligations, and §49.7 concerning certain obligations excepted from the procedures in the rule

This proposal is part of the review process by TRS of all the Rules in compliance with the Appropriations Act of 1997, House Bill 1, Article IX, §167. The review process will include, as a minimum, an assessment by TRS as to whether the reason for adopting or readopting the rule continues to exist. These sections have been previously reviewed in an open meeting by the TRS Policy Committee. These sections are being posted for comments regarding whether the reason for adopting the rules continue to exist.

The proposed amendments to §49.1, §49.3, §49.5, and §49.7 change the title of head of the agency from executive secretary to executive director. The Legislature in 1993 changed the title of "executive secretary" to "executive director". These amendments clean up the language of the rules.

Ronnie Jung, Chief Financial Officer, has determined that for each year of the first five years the section as amended will be in effect, there will be no fiscal implications to state or local governments as a result of enforcing or administering the section.

Ronnie Jung, Chief Financial Officer, has also determined that for each year of the first five years the amendments are in effect the public benefit will be the deletion of outdated language and the use of the legally correct title within the rules. There will be no affect on small businesses. There are no anticipated economic costs to the persons who are required to comply with the sections as proposed for each year of the first five years the proposals will be in effect.

Comments may be submitted to Charles L. Dunlap, Executive Director, 1000 Red River, Austin, Texas 78701, (512) 397-6400.

The amendments are proposed under the Government Code, Chapter 825, §825.102, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for the administration of the funds of the retirement system. In addition, 1993, 73rd Legislature, Chapter 812, §16 authorized the title change.

No other laws are affected by these proposed changes.

§49.1.Administrative Procedures.

The executive director [ secretary ] or his designee shall develop and maintain procedures for determining whether a delinquent obligation is owed to TRS or whether a liability should be established by legal or other appropriate procedures.

§49.3.Referrals of Matters to Attorney General for Collection.

(a)

The executive director [ secretary ] or his designee shall decide whether to refer a matter to the attorney general for collection. This decision should generally be made and any referral made no later than 60 days after the second demand letter is sent.

(b)

Generally TRS will not refer for collection matters in which the amount to be recovered would be less than the total sum of expense to the agency and the attorney general for travel, employee time, court costs, and other relevant expenses. The executive director [ secretary ] or his designee may from time to time establish a minimum dollar amount for claims to be referred for collection.

(c)

The executive director [ secretary ] or his designee may for policy reasons, actuarial reasons, or other good cause determine that a matter should be referred to the attorney general even if the amount to be recovered does not exceed the minimum established pursuant to this rule.

(d)

In making a determination of whether to refer a matter to the attorney general the executive director [ secretary ] or his designee shall consider:

(1)-(5)

(No change.)

(6)

any other relevant factors established by the executive director [ secretary ] in his procedures.

(e)

Before referring a matter to the attorney general the executive director [ secretary ] or his designee shall:

(1)-(3)

(No change.)

§49.5.Records.

The executive director [ secretary ] shall cause records to be kept identifying all persons or entities liable for delinquent obligations and the correct physical address of the debtor's business and/or residence, if available. Such records should also contain collection histories on each debtor showing, where applicable, attempted contacts with the debtor; efforts to locate the debtor; efforts to locate the assets of the debtor and the results of such efforts; state warrants that may be issued to the debtor; security interests that TRS has against any assets of the debtor; and any other information considered by TRS to be relevant.

§49.7.Exceptions.

(a)

Certain obligations to TRS shall be exempt form the procedures provided in this rule except as provided by the executive director [ secretary ]. These obligations are:

(1)-(4)

(No change.)

(b)

For good cause the executive director [ secretary ] may make exceptions to the procedures in this chapter.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 8, 1999.

TRD-9901421

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: April 23, 1999

For further information, please call: (512) 391-2115