Part 1. COMPTROLLER OF PUBLIC ACCOUNTS

Chapter 3. TAX ADMINISTRATION

Subchapter L. MOTOR FUEL TAX

34 TAC §3.180

The Comptroller of Public Accounts adopts an amendment to §3.180, concerning signed statements for purchasing diesel fuel tax free, without changes to the proposed text as published in the February 22, 2002, issue of the Texas Register (27 TexReg 1283).

This amendment incorporates legislative changes in House Bill 1241, 77th Legislature, 2001, which amended Tax Code, Chapter 153 to increase the total amount of tax-free diesel fuel that can be purchased using a signed statement in a single delivery and the total amount of tax-free diesel fuel that can be purchased using a signed statement in a calendar month. End users, with a letter of exception issued by this office, may purchase dyed diesel fuel for exclusive use in oil and gas production.

The 77th Legislature, 2001, in Senate Bill 1125, amended the Tax Code, Chapter 153, to change the name of the signed statement Agricultural User Exemption Number to the Agricultural Exemption Number.

No comments were received regarding adoption of the amendment.

This amendment is adopted under 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 Tax Code, Title 2.

The amendment implements Tax Code, §153.205

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 5, 2002.

TRD-200202145

Martin Cherry

Deputy General Counsel for Taxation

Comptroller of Public Accounts

Effective date: April 25, 2002

Proposal publication date: February 22, 2002

For further information, please call: (512) 475-0387

34 TAC §3.203

The Comptroller of Public Accounts adopts a new §3.203, concerning diesel fuel tax exemption for water, fuel ethanol, and biodiesel mixtures, without changes to the proposed text as published in the February 22, 2002, issue of the Texas Register (27 TexReg 1284).

The new rule incorporates legislative changes from the 77th Legislature, 2001, that amend Tax Code, Chapter 153. Senate Bill 5 amended the Tax Code to provide an exception from the motor fuels tax on the volume of water, fuel ethanol, or biodiesel blended with taxable diesel fuel. Senate Bill 1125 amended the Tax Code to provide an exemption from motor fuels tax on the volume of water that is blended together with taxable diesel fuel. The new rule provides definitions, invoice documentation requirements, storage tank and retail pump labeling requirements, refund procedures, and reporting requirements for interstate commercial carriers licensed under the International Fuel Tax Agreement.

No comments were received regarding adoption of the new rule.

This new section is adopted 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 rule implements Tax Code, §§153.203, 153.222, 153.017.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 5, 2002.

TRD-200202147

Martin Cherry

Deputy General Counsel for Taxation

Comptroller of Public Accounts

Effective date: April 25, 2002

Proposal publication date: February 22, 2002

For further information, please call: (512) 475-0387

Chapter 121. PRACTICE AND PROCEDURE REGARDING CLAIMS

34 TAC §121.6

The Texas Municipal Retirement System adopts amendments to §121.6, concerning the time for filing of retirement applications. The amendments are adopted without changes to the proposed text published in the January 11, 2002, issue of the Texas Register (27 TexReg 361), and therefore the text will not be republished.

The amendments are being adopted to allow applicants for service or disability retirements to waive the requirement of filing their application at least 30 days before the effective date of their retirement.

No comments were received regarding adoption of these amendments.

The amendments to §121.6 are adopted pursuant to Texas Government Code, Chapter 855, §855.102, which provides the Board of Trustees of the Texas Municipal Retirement System with the authority to adopt rules necessary or desirable for the efficient administration of the system.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 2, 2002.

TRD-200202078

Gary Anderson

Executive Director

Texas Municipal Retirement System

Effective date: April 22, 2002

Proposal publication date: January 11, 2002

For further information, please call: (512) 476-7577

34 TAC §123.5

The Texas Municipal Retirement System adopts amendments to §123.5, concerning the requirement of spousal consent. The amendments are adopted without changes to the proposed text in the January 11, 2002, issue of the Texas Register (27 TexReg 361), and therefore the text will not be republished.

Section 804.051 of the Texas Government Code authorizes the Texas Municipal Retirement System to adopt rules requiring spousal consent in connection with the selection of a retirement annuity or death benefit plan by a member that does not pay benefits to the member's spouse in the form of an annuity. The Texas Municipal Retirement System has previously adopted a rule that requires spousal consent in connection with the election by the member of a retirement annuity. The amendments to this rule will require spousal consent in connection with the designation by the member of a beneficiary of the vested death benefit authorized by §16 of Senate Bill 522, 77th Legislative Session. The rule change will maintain consistency with respect to the application of the spousal consent rule.

No comments were received regarding adoption of these amendments.

The amendments to §123.5 are adopted pursuant to Texas Government Code, Chapter 804, §804.051 which gives the Board of Trustees of the Texas Municipal Retirement System the authority to adopt rules to require spousal consent. In addition the amendments to §123.5 are adopted pursuant to Texas Government Code, Chapter 855, §855.102, which provides the Board of Trustees of the Texas Municipal Retirement System with the authority to adopt rules necessary or desirable for the efficient administration of the system.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 2, 2002.

TRD-200202079

Gary Anderson

Executive Director

Texas Municipal Retirement System

Effective date: April 22, 2002

Proposal publication date: January 11, 2002

For further information, please call: (512) 476-7577

34 TAC §127.6

The Texas Municipal Retirement System adopts §127.6 regarding acceptance of eligible rollover distributions or trustee-to-trustee transfers from other retirement plans as payment for system service credit. The amendment is adopted without changes to the proposed text as published in the February 8, 2002, issue of the Texas Register (27 TexReg 871), and therefore will not be republished.

Section 127.6 specifies the types of plans from which the Texas Municipal Retirement System may accept funds as payment when a member is otherwise eligible to establish service credit in the Texas Municipal Retirement System. The purpose of the new section is to enable the Texas Municipal Retirement System to accept a rollover or transfer of funds from any type of plan permitted under federal tax law as payment for system service credit a member is otherwise eligible to establish. The Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA"), Public Law 107-16 (June 7, 2001), expanded the ability to rollover or transfer funds from one type of retirement plan to another, effective January 1, 2002.

No comments were received regarding adoption of this new section.

This section is proposed under Government Code, Chapter 855, §855.102, which provides the Board of Trustees of the Texas Municipal Retirement System with the authority to adopt rules necessary or desirable for the efficient administration of the system. The new section is also adopted pursuant to Government Code, Chapter 855, §855.607 which authorizes the Board of Trustees of the Texas Municipal Retirement System to adopt rules necessary for the plan to be a qualified plan.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 2, 2002.

TRD-200202080

Gary Anderson

Executive Director

Texas Municipal Retirement System

Effective date: April 22, 2002

Proposal publication date: February 8, 2002

For further information, please call: (512) 476-7577

34 TAC §129.12

The Texas Municipal Retirement System adopts amendments to §129.12, concerning payments to alternate payees. The amendments are adopted with one non-substantive change due to a grammatical error, to the proposed text published in the January 11, 2002, issue of the Texas Register (27 TexReg 362).

This rule is being amended to increase the cash out provision for alternate payees from $5,000 to $10,000 to conform to changes made by §9 of Senate Bill 522, 77th Legislative Session. The rule is adopted with one non-substantive change to the proposed text. Specifically, the word "accumulate" in §129.12(a) is changed to "accumulated".

No comments were received regarding adoption of these amendments.

The amendments to §129.12 are adopted pursuant to Texas Government Code, Chapter 804, §804.004, which provides the Board of Trustees of the Texas Municipal Retirement System with the authority to adopt rules for the payment of lump sum benefits to alternate payees. In addition the amendments to §129.12 are adopted pursuant to Texas Government Code, §855.102, which provides the Board of Trustees of the Texas Municipal Retirement System with the authority to adopt rules necessary or desirable for the efficient administration of the system.

§129.12.Payments to Alternate Payees.

(a) In the event that the participant terminates membership in the system and applies for a refund of the participant's accumulated deposits and interest, the system will make a lump-sum payment to the alternate payee if the domestic relations order so provides and the order has been determined to be a qualified domestic relations order.

(b) In the event that the participant (or the participant's designated beneficiary or estate) begins receiving an annuity after the date that a qualified domestic relations order is received by the system, and the order provides for a division of the annuity in that event, the payment to the alternate payee will be a monthly allowance payable during the lifetime of the alternate payee, which payment is the actuarial equivalent of the portion of the participant's benefit that was awarded to the alternate payee under the domestic relations order. The mortality assumption for alternate payees for determining the payment to the alternate payee shall be the same as the mortality assumption for the beneficiaries as set forth in §123.1(a) of this title (relating to Actuarial Tables) with regard to service retirements and as set forth in §123.1(b) of this title with regard to disability retirements.

(c) Subsection (b) of this section will apply to all domestic relations orders approved in accordance with this chapter after September 9, 1989, and to such domestic relations orders approved prior to that date as are construed to provide for such an annuity.

(d) In the event that the total reserves upon which an annuity (otherwise payable to an alternate payee under a qualified domestic relations order) would be calculated are $10,000 or less, then the system is authorized to make a single lump-sum payment to the alternate payee in the amount of those reserves instead of paying an annuity to the alternate payee. No such payment shall be made by the system until such point in time as the system begins paying an annuity to the participant or the participant's designated beneficiary, surviving spouse, or estate.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 2, 2002.

TRD-200202099

Gary Anderson

Executive Director

Texas Municipal Retirement System

Effective date: April 22, 2002

Proposal publication date: January 11, 2002

For further information, please call: (512) 476-7577