TITLE public-finance

Part I. Comptroller of Public Accounts

Chapter 9. Property Tax Administration

Subchapter A. Practice and Procedure

34 TAC §9.105

The Comptroller of Public Accounts proposes an amendment to §9.105, concerning tax refunds for economic development. This section is being amended to add new definitions in subsection (a); to add the base comparison year and base comparison year's appraised value to the statement from the chief appraiser in subsection (b)(4)(A)(iv); to clarify that the entity the abatement agreement is to be filed with is the state in subsection (b)(4)(A)(v); to add copies of the Texas Workforce Commission returns for the year the agreement is entered into in subsection (b)(4)(A)(vi); and to make the necessary changes to the application as a result of these amendments.

Mike Reissig, chief revenue estimator, has determined that for the first five-year period the amendment will be in effect, there will be no significant fiscal impact on the state or units of local government.

Mr. Reissig also has determined that for each year of the first five years the amended rule is in effect, the public benefit anticipated as a result of adopting the amendment will be in providing additional definitions and new information regarding tax responsibilities. The proposed amendment will have no significant fiscal impact on small businesses.

Comments on the proposal may be submitted to Buddy Breivogel, Manager, Property Tax Division, P.O. Box 13528, Austin, Texas 78711-3528.

This amendment is proposed under the Tax Code, §111.303, which requires the comptroller to adopt forms and rules for the administration of the provisions of the Tax Code, §111.301 and §111.302.

The amendment implements the Tax Code, §§111.301-111.304.

§9.105.Tax Refund for Economic Development.

(a)

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

(1)-(4)

(No change.)

(5)

Entered into - same as executed. An agreement is entered into when it has been approved by the appropriate governing body and signed and dated by all parties.

(6)

Initial base comparison year - the calendar year in which the tax abatement is entered into or executed.

(b)

Tax refund for economic development.

(1)-(2)

(No change.)

(3)

Eligibility for the refund.

(A)-(B)

(No change.)

(C)

The following is an example of how the refund available under this subsection will be administered.

Figure: 34 TAC 9.105(b)(3)(C)

(4)

Application for refund.

(A)

An application for the refund must:

(i)-(iii)

(No change.)

(iv)

include an attached signed statement from the county appraisal district's chief appraiser verifying that an exemption from property tax was granted and showing the current appraised value , the initial base comparison year and the beginning or initial base comparison year's appraised value of the property subject to the abatement agreement;

(v)

include an attached statement from each applicable city or county official verifying that the abatement agreement has been filed with the state entity responsible for maintaining a registry of tax abatements;

(vi)

include attached copies of Texas Workforce Commission returns for the calendar year the agreement was entered into and the calendar year subject to the claim, showing an increase in payroll since entering the abatement agreement, if the person is applying for the refund based on an increase in payroll; and

(vii)

(No change.)

(B)-(I)

(No change.)

(J)

Application for refund. An application for refund must be substantially in the form of an Application for Refund of State Taxes Paid by Person Owning Certain Abated Property (Form AP-186). The comptroller adopts this amended form by reference. Copies of the form are available for inspection at the office of the Texas Register or may be obtained from the Comptroller of Public Accounts, P.O. Box 13528, Austin, Texas 78711. Copies may also be requested by calling our toll-free number, 1-800-252-9121. In Austin, call (512) 365-9999. From a Telecommunications Device for the Deaf (TDD), call 1-800-248-4099, toll free. In Austin, the local TDD number is (512) 463-4621.

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 December 11, 1998.

TRD-9818273

Martin Cherry

Chief, General Law

Comptroller of Public Accounts

Earliest possible date of adoption: January 24, 1999

For further information, please call: (512) 463-3699


Part III. Teacher Retirement System of Texas

Chapter 41. Insurance

34 TAC §41.13

The Teacher Retirement System of Texas (TRS) proposes an amendment to §41.13 concerning participation in the Texas Public School Employees Group Insurance Program by public school districts.

The proposed amendment would allow school districts to exclude employees with coverage under a spouse's plan from a 75% participation requirement in the current rule. The TRS actuary recommends that we allow schools this latitude.

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 impact to TRS and there will be no fiscal implications to other 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 the possibility of greater participation by local school districts in the active insurance plan as a result of the less strict criteria and 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 amendment is proposed under the Government Code, Chapter 825, §825.102, which authorizes the Board of Trustees of Teacher Retirement System to adopt rules for the administration of the funds of the retirement system. In addition, §5 of Article 3.50-4 of the Insurance Code allows the Board to adopt rules necessary to administer and implement the laws regarding the group insurance program.

The Insurance Code, Article 3.50-4 is affected by this proposed amendment.

§41.13.Participation in the Texas Public School Employees Group Insurance Program by Public School Districts

(a)

(No change.)

(b)

Eligibility requirements. In order to be eligible to participate in the program a school district must meet the following requirements.

(1)

Enrollment rate requirements. A participating school district must initially enroll and thereafter maintain at least a 75% employee enrollment rate in the program. For purposes of this rule, an employee covered under a spouse's health care coverage may be excluded from the employee pool if the employee presents written evidence of such coverage to the employer. If a school district employee rate drops below 75% that school district may not remain in the program beyond the current plan year. The trustee may waive this requirement in instances where it determines that there will be no significant adverse financial impact on the program.

(2)-(4)

(No change.)

(c)

(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 December 14, 1998.

TRD-9818327

Charles Dunlap

Executive Director

Teacher Retirement System of Texas

Proposed date of adoption: January 29, 1999

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


Part IV. Employees Retirement System of Texas

Chapter 73. Benefits

34 TAC §73.35

(Editor's note: The Employees Retirement System of Texas proposes for permanent adoption the amended section it adopts on an emergency basis in this issue. The text of the amended section is in the Emergency Rules section of this issue.)

The Employees Retirement System of Texas proposes an amendment to §73.35, concerning supplemental payment. The amendment is being proposed in order to allow a supplemental one-time payment in the fiscal year ending August 31, 1999.

William S. Nail, Deputy Executive Director and General Counsel has determined that for the first five-year period the rule is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the rule.

Mr. Nail 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 that retirees will receive a supplemental one-time payment in the fiscal year ending August 31, 1999. There will be no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the rule as proposed.

Comments on the proposed rule amendment may be submitted to William S. Nail, Deputy Executive Director and General Counsel, Employees Retirement System of Texas, P. O. Box 13207, Austin, Texas 78711-3207, or e-mail Mr. Nail at wnail@ers.state.tx.us.

The amendment is proposed under Tex. Gov't Code §814.603(d), which provides authorization for the board to authorize a supplemental one-time payment during any fiscal year, if the payments are in compliance with Tex. Gov't Code §811.006.

No other statutes are affected by this amendment.

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 December 14, 1998.

TRD-9818325

Sheila W. Beckett

Executive Director

Employees Retirement System of Texas

Earliest possible date of adoption: January 24, 1999

For further information, please call: (512) 867-7125