Part 1.
COMPTROLLER OF PUBLIC ACCOUNTS
Chapter 3.
TAX ADMINISTRATION
Subchapter L. MOTOR FUEL TAX
34 TAC §3.185
The Comptroller of Public Accounts proposes an amendment
to §3.185, concerning diesel tax prepaid user permit. The 77th Legislature,
2001, in House Bill 1241, amended Tax Code, Chapter 153 to provide a definition
of an agriculture purpose of motor fuel.
Subsection (c) is amended to further clarify that an agricultural purpose
does not include processing, packing, or marketing of agricultural products
by someone other than the original producer. The amendment adds timber operations
to the list of examples of farms, and it includes wildlife management as an
agricultural non highway purpose.
James LeBas, Chief Revenue Estimator, has determined that for the first
five-year period the amendment will be in effect there will be no significant
revenue impact on the state or local government.
Mr. LeBas also has determined that for each year of the first five years
the amendment is in effect the public benefit anticipated as a result of adopting
the amendment will be in providing new information regarding tax responsibilities.
This amendment 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 to individuals who are required to comply with the
proposed amendment.
Comments on the proposal may be submitted to Bryant K. Lomax, Manager,
Tax Policy Division, P.O. Box 13528, Austin, Texas 78711-3528.
This amendment is proposed 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, 153.209, and 153.210.
§3.185.Diesel Tax Prepaid User Permit.
(a)
Those who qualify for an agricultural bonded user permit
may obtain a diesel tax prepaid user permit instead, if they satisfy the requirements
for a diesel tax prepaid user permit.
(b)
To qualify for a diesel tax prepaid user permit, an applicant
must:
(1)
use at least 51% of all the diesel fuel purchased by the
applicant for agricultural nonhighway purposes;
(2)
not own or operate diesel-powered passenger cars or light
trucks that are not within the weight classes listed in subsection (e) of
this section; and
(3)
have bulk diesel storage tank(s) used only by the applicant.
(c)
Use for an
[
(d)
An application for a diesel tax prepaid user permit must
be made to the comptroller for each vehicle. Permits must be renewed every
12 months.
(e)
The cost of the permit shall be determined according to
the following schedule:
Figure: 34 TAC §3.185(e)(No Change)
(f)
Following are the requirements for a nonrefundable credit.
(1)
If the cost of the annual permit is greater than the amount
of tax due on the diesel fuel actually consumed during the permit year, a
nonrefundable credit equal to the difference may be claimed, provided the
required renewal date of the permit is October 1, 1995, or later.
(2)
The credit may only be applied against the cost of renewal
or purchase of a new diesel tax prepaid user permit for the following year,
and the credit is valid for one year beginning with the required renewal date
of the permit.
(3)
The odometer of the vehicle for which a diesel tax prepaid
user permit is held must be maintained in working order. If not, a credit
claim cannot be approved.
(g)
A claim for a nonrefundable credit must be filed on a form
that the comptroller furnishes.
(1)
A distribution log must be submitted with an application
for renewal of a diesel tax prepaid user permit. The distribution log must
reflect the following information:
(A)
the date of each delivery of diesel fuel into the fuel
supply tank of the motor vehicle for which the permit is held;
(B)
the number of gallons delivered;
(C)
the odometer reading of the motor vehicle at the time of
delivery; and
(D)
the state license plate number or vehicle identification
number of the motor vehicle.
(2)
Purchase invoices for diesel fuel delivered into the fuel
supply tank of a motor vehicle for which a diesel tax prepaid user permit
is held from other than one's own storage, must contain:
(A)
the name of the seller;
(B)
the name of the purchaser;
(C)
the date of delivery;
(D)
the number of gallons delivered;
(E)
the odometer reading of the motor vehicle at the time of
delivery;
(F)
the state license plate number or vehicle identification
number of the motor vehicle; and
(G)
the signature of the recipient.
(3)
Records pertaining to odometer repair or replacement.
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 August 7, 2001.
TRD-200104510
Martin Cherry
Deputy General Counsel for Tax Policy and Agency Affairs
Comptroller of Public Accounts
Earliest possible date of adoption: September 23, 2001
For further information, please call: (512) 463-4062
Chapter 25.
MEMBERSHIP CREDIT
Subchapter B. COMPENSATION
34 TAC §§25.30 - 25.32
(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 §§25.30-25.32 concerning percentage limits on compensation
increases, conversion of noncreditable compensation to salary and conversion
of certain career ladder payments. The repeals are proposed because TRS has
determined that the sections are no longer needed and repeal will reduce paperwork
for school districts and for TRS.
Ronnie Jung, Deputy Director, has determined that for the first five-year
period the repeal is in effect, there will be no fiscal implications for state
or local government except for a possible minimal cost to TRS as a result
of enforcing or administering the repeal.
Mr. Jung has also determined that for each year of the first five years
the repeal is in effect the anticipated public benefit will be the elimination
of an unnecessary rule. 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 on the proposal may be submitted to Charles L. Dunlap, Executive
Director, 1000 Red River, Austin, Texas 78701. Comments must be received no
later than 30 days from the date the proposal is published in the
Texas Register.
The repeal is proposed under Government Code, Chapter 825, §825.102,
which authorizes the Board of Trustees of the Teacher Retirement System to
adopt rules for the transaction of business of the Board. The repeal also
affects Government Code §822.201, which provided the basis for the sections
to be repealed.
No other codes are affected by the proposed repeal.
§25.30.Conversion of Noncreditable Compensation to Salary
§25.31.Percentage Limits on Compensation Increases
§25.32.Conversion of Certain Career Ladder 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 August 10, 2001.
TRD-200104648
Charles Dunlap
Executive Director
Teacher Retirement System of Texas
Proposed date of adoption: September 27, 2001
For further information, please call: (512) 391-2115
34 TAC §25.161, §25.163
The Teacher Retirement System of Texas (TRS) proposes amendments
to §25.161 concerning purchase of work experience service credit under
Government Code §823.404 and a new rule §25.163 concerning permissive
service credit purchase under Section 6 of Senate Bill 273, which adds Government
Code §823.405 and was passed by the 77th Texas Legislature, 2001. The
primary purpose of the proposed amendment to §25.161 is to update the
actuarial tables needed to calculate the cost of purchasing work experience
service credit to conform to benefit modifications in Senate Bill 273 passed
by the 77th Texas Legislature, 2001 (the "Act"). An amended graphic is being
submitted that reflects the new tables containing the amended factors used
to calculate the costs. In accordance with the Act, the proposed new section §25.163
permits eligible TRS members to purchase one to three years of service credit
provided the member has at least seven years of actual membership service
in TRS and pays TRS the actuarial equivalent of the benefit to be received.
The proposed new section also incorporates the actuarial tables that TRS will
use to compute the actuarial cost to purchase the service credit. These new
tables are being submitted as a new graphic. The proposed amendments and the
proposed new section are simultaneously being adopted on an emergency basis.
Ronnie Jung, Deputy Director, has determined that for each year of the
first five-year period the proposed amendments and the new section are in
effect there will be no fiscal implications to state or local governments
as a result of enforcing or administering the rule.
Mr. Jung has also determined that for each year of the first five years
the rules are in effect the public benefit anticipated will be that the process
for administering the new law will be in place for TRS members. Specifically,
TRS staff will have clarification on how to calculate the cost of purchasing
the career or technology work experience credit and the cost of purchasing
up to three years of permissive service credit as well as administering the
purchase of this type of service. There will be no effect on small businesses.
There are no anticipated economic costs to the public or to the persons who
are required to comply with the section as proposed.
Comments on the proposal may be submitted to Charles L. Dunlap, Executive
Director, 1000 Red River, Austin, Texas 78701.
The amendments and the new section are proposed under the Government
Code, Chapter 825, §825.102, which authorizes the Board of Trustees of
the Teacher Retirement System ("Board") to adopt rules for the administration
of the funds of the retirement system and for the transaction of business
of the board. The amendments are also proposed under Government Code §823.404.
Both the amendments and the new section are in accordance with the Act, which
permits the Board to adopt rules to administer the new law.
Other laws affected by the proposed amendments to §25.161 are Education
Code §21.403(b) and Government Code §823.006.
Other laws affected by the proposed new §25.163 are Government Code §823.405
and Government Code §823.006.
§25.161.Work Experience Service Credit.
(a)
An eligible member may purchase one or two years of equivalent
membership service credit
in the Teacher Retirement System of Texas ("TRS")
for eligible work experience in accordance with Government Code
,
§823.404 and subject to
the approval of TRS and to
any plan qualification requirements, including permissive service credit purchase
restrictions
under Government Code, §823.006 and/or the Internal
Revenue Code of 1986, as amended from time to time.
Permissive service
credit purchase restrictions may limit the purchase of non-qualified service
[
(b)
Equivalent membership service credit for eligible work
experience may be established by depositing with TRS the amounts described
in subsection (c) of this section and by submitting certification
,
in the form and manner prescribed by TRS
,
that the member is entitled
to salary step credit under [
(c)
For each year of equivalent membership service credit described
in this section
and approved by TRS
, the eligible member must deposit
the actuarial present value, at the time of deposit, of the additional standard
retirement annuity benefits that would be attributable to the conversion of
the work experience into service credit
to be purchased under this section.
Upon receipt by TRS of the required amount, the member will be credited
with the additional year(s) of service credit
purchased
up to the
maximum years of permissive service credit allowed
under Government Code, §§823.404
or 823.006, as applicable.
(d)
To calculate these amounts, TRS will use the cost factors
obtained from the
two
Service Purchase Tables furnished by the
TRS actuary of record.
Each of the
[
(1)
For the upper region of each table (where
the factors appear above the line in italics), salary is the greater of current
annual salary or the average of the member's highest three years of compensation;
and
(2)
For the lower region of each table (where
the factors appear below the line in bold), salary is the average of the member's
highest three years of compensation. A member's highest three years of compensation
shall be calculated as if the member were retiring at the time the service
credit is purchased.
The
lower region
[
Figure 1: 34 TAC 25.161(d)(2)
Figure 2: 34 TAC 25.161(d)(2)
Figure 3: 34 TAC 25.161(d)(2)
Figure 4: 34 TAC 25.161(d)(2)
[
[
(e)
The purchase cost described in subsection (d) of this
section assumes a lump-sum deposit will be made. If deposits are made over
a period of time as allowed by TRS, the purchase cost will be adjusted to
reflect the actuarial present value of the benefits attributable to the purchased
service credit.
[
(f)
Service credit purchased under this section may not
be used to determine eligibility for the Texas Public School Retired Employees
Group Insurance Program per Insurance Code, Article 3.50-4, §2(10)(A).
[
§25.163.Service Credit Purchase.
(a)
Effective September 1, 2001, an eligible member may purchase
one, two or three years of equivalent membership service credit in the Teacher
Retirement System of Texas ("TRS") in accordance with Government Code, §823.405
and subject to the approval of TRS and to any plan qualification requirements,
including permissive service credit purchase restrictions under Government
Code, §823.006 and/or the Internal Revenue Code of 1986, as amended from
time to time. Permissive service credit purchase restrictions may limit the
purchase of non-qualified service to a total of five years, and the service
credit authorized under Government Code, §823.405 is non-qualified permissive
service credit as defined in Government Code, §823.006. Therefore, previous
purchases of non-qualified permissive service credit may count toward this
total and, if so, will limit or negate an eligible member's ability to purchase
service credit under Government Code, §823.405. A member is eligible
to establish up to three years of equivalent membership service credit if,
at the time of the purchase, the member is employed by a TRS-covered employer
and has at least seven years of actual membership service in TRS.
(b)
"Actual membership service" has the meaning given to "membership
service" in Government Code, §821.001(11), and means service during a
time that a person is both an employee, as defined in Government Code, §821.001(6),
and a member of the retirement system.
(c)
Equivalent membership service credit under Government Code, §823.405
may be established by depositing with TRS the amounts described in this subsection.
For each year of equivalent membership service credit described in this section
and approved by TRS, the eligible member must deposit the actuarial present
value, at the time of deposit, of the additional standard retirement annuity
benefits that would be attributable to the service credit to be purchased
under this section. Upon receipt by TRS of the required amount, the member
will be credited with the additional year(s) of service credit purchased up
to the maximum years of permissive service credit allowed under Government
Code, §§823.405 or 823.006, as applicable.
(d)
To calculate these amounts, TRS will use the cost factors
obtained from the three Service Purchase Tables furnished by the TRS actuary
of record. Each of the tables cross-reference the member's age in rows with
years of credited service (before purchase) in columns. The intersection of
the participant's age and service is the cost per $1,000 of salary. The cost
factor remains constant after 30 years of service. Therefore, when an eligible
member's service exceeds 30 years, the applicable cost factor is found at
the intersection of the member's age and 30 years of service. TRS will calculate
the cost to purchase service under this section by dividing the salary by
1000 and multiplying the resulting quotient by the appropriate cost factor
obtained from the tables. Table 1 sets forth the cost, per $1,000 of salary,
to purchase one year of service. Table 2 sets forth the cost, per $1,000 of
salary, to purchase two years of service. Table 3 sets forth the cost, per
$1,000 of salary, to purchase three years of service. For purposes of this
calculation, the term "salary" is defined as follows:
(1)
For the upper region of each table (where the factors appear
above the line in italics), salary is the greater of current annual salary
or the average of the member's highest three years of compensation; and
(2)
For the lower region of each table (where the factors appear
below the line in bold), salary is the average of the member's highest three
years of compensation. A member's highest three years of compensation shall
be calculated as if the member were retiring at the time the service credit
is purchased. The lower region of each table (where factors appear below the
line in bold) reflects those age and service combinations where the purchase
of service credit results in the immediate eligibility of the member for unreduced
retirement benefits.
Figure 1: 34 TAC 25.163 (d)(2)
Figure 2: 34 TAC 25.163 (d)(2)
Figure 3: 34 TAC 25.163 (d)(2)
Figure 4: 34 TAC 25.163 (d)(2)
Figure 5: 34 TAC 25.163 (d)(2)
Figure 6: 34 TAC 25.163 (d)(2)
(e)
The purchase cost described in subsection (d) of this section
assumes a lump-sum deposit will be made. If deposits are made over a period
of time as allowed by TRS, the purchase cost will be adjusted to reflect the
actuarial present value of the benefits attributable to the purchased service
credit.
(f)
Service credit purchased under this section may not be
used to determine eligibility for the Texas Public School Retired Employees
Group Insurance Program per Insurance Code, Article 3.50-4, §2(10)(A).
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 August 10, 2001.
TRD-200104651
Charles Dunlap
Executive Director
Teacher Retirement System of Texas
Proposed date of adoption: September 27, 2001
For further information, please call: (512) 391-2115
Subchapter A. RETIREMENT
34 TAC §29.25
(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 §29.25 concerning reduction of disability benefits for
excess earnings. The repeal is proposed because the law that authorizes the
section (Government Code §824.306) was repealed by section 29 of Senate
Bill 273, 77th Texas Legislature, 2001. The repeal of Government Code §824.306
becomes effective September 1, 2001.
Government Code §824.306 generally required certain disability retirees
to file annual earnings reports with TRS and permitted TRS to adopt rules
establishing limits on the annual earnings of disability retirees. The repeal
of Government Code §824.306 renders §29.25 unnecessary.
Ronnie Jung, Deputy Director, has determined that for the first five-year
period the repeal is in effect, there will be no fiscal implications for state
or local government except for a possible minimal cost to TRS as a result
of enforcing or administering the repeal.
Mr. Jung has also determined that for each year of the first five years
the repeal is in effect the anticipated public benefit will be the elimination
of an unnecessary rule. 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 on the proposal may be submitted to Charles L. Dunlap, Executive
Director, 1000 Red River, Austin, Texas 78701. Comments must be received no
later than 30 days from the date the proposal is published in the
Texas Register.
The repeal is proposed under §29 of Senate Bill 273, 77th
Texas Legislature, 2001, which repeals the law that provided the basis of
the section (Government Code §824.306), and under Government Code, Chapter
825, §825.102, which authorizes the Board of Trustees of the Teacher
Retirement System to adopt rules for the transaction of business of the Board.
No other codes are affected by the proposed repeal.
§29.25.Reduction of Disability Benefits for Excess Earnings.
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 August 10, 2001.
TRD-200104649
Charles Dunlap
Executive Director
Teacher Retirement System of Texas
Proposed date of adoption: September 27, 2001
For further information, please call: (512) 391-2115
Subchapter B. LONG-TERM CARE, DISABILITY AND LIFE INSURANCE
An
] agricultural nonhighway
purpose means [
for the purpose of
] use in nonhighway
agricultural
equipment, such as a tractor or combine, on a farm or ranch.
Use for an agricultural nonhighway purpose does not include use in processing,
packaging, or marketing of agricultural products by entities other than the
original producer of the agricultural products.
A farm or ranch is one
or more tracts of land used, either in whole or in part, in the production
of crops, livestock, and/or other agricultural products held for sale in the
regular course of business. A feed lot, dairy farm, poultry farm, commercial
orchard, commercial nursery,
timber operation
or similar commercial
agricultural operation is a farm or ranch.
Timber operations include
the production of timber, land preparation, planting, maintenance, and gathering
of trees that are commonly grown for commercial timber. An agricultural use
includes wildlife management as defined by the Tax Code, §23.51(7).
A home garden [
or timber operation
] is not a farm or ranch.
Part 3.
TEACHER RETIREMENT SYSTEM OF TEXAS
Subchapter L. OTHER SPECIAL SERVICE CREDIT
as defined in Texas Government Code §823.006
] to
a total
of
five years
, and the service credit authorized under Government
Code, §823.404 is non-qualified permissive service credit as defined
in Government Code, §823.006. Therefore, previous purchases of non-qualified
permissive service credit may count toward this total and, if so, will limit
or negate an eligible member's ability to purchase service credit under Government
Code, §823.404.
A member is eligible to establish
up to two
years of
equivalent membership service credit for eligible work experience
if
, at the time of the purchase,
the member is employed by a TRS-covered
employer and has at least five years of [
TRS
] membership service
credit
in TRS.
§21.403(b) of the
] Education
Code
, §21.403(b)
and is eligible to purchase the service credit.
The
] tables
cross-reference
[
cross reference
] the member's age
in rows
with years of credited service (before purchase)
in columns.
The intersection of the participant's age and service is the cost per $1,000
of salary. The cost factor remains constant after 30 years of service. Therefore,
when an eligible member's service exceeds 30 years, the applicable cost factor
is found at the intersection of the member's age and 30 years of service.
TRS will calculate the cost to purchase service under this section by dividing
the salary by 1000 and multiplying the resulting quotient by the appropriate
cost factor obtained from the tables. The tables have been revised effective
September 1, 2001. As revised,
Table 1 sets forth the cost, per $1,000
of [
annual
] salary, to purchase one year of service.
As revised,
Table 2
sets forth
[
shows
] the cost, per $1,000
of [
annual
] salary, to purchase two years of service.
For
purposes of this calculation, the term "salary" is defined effective September
1, 2001 as follows:
shaded regions
] of
each table (where factors appear below the line in bold) reflects
those
[
the tables reflect
] age and service combinations where
the purchase of service
credit
results in the immediate eligibility
of the member
for unreduced retirement benefits.
Figure 1: 34 TAC 25.161(d)
]
Figure 2: 34 TAC 25.161(d)
]
The cost factor reflected at the intersection of
the eligible member's age and service in the non-shaded areas reflects the
cost per $1000 of current annual salary to purchase one year of service (Table
1) or two years of service (Table 2). The cost factor reflected at the intersection
of the eligible member's age and service in the shaded areas is the cost per
$1,000 of final average compensation. The final average compensation will
be used in calculating the cost where the purchase of the service results
in immediate eligibility for unreduced retirement benefits and will be calculated
as if the member were retiring at the time the service credit is purchased.
The cost factor remains constant after 30 years of service. Therefore, when
an eligible member's service exceeds 30 years, the applicable cost factor
is found at the intersection of the member's age and 30 years of service.
TRS will calculate the cost to purchase service under this section by dividing
either the current annual salary or the final average compensation (as applicable)
by 1000 and multiplying the resulting quotient by the appropriate cost factor
obtained from the tables.
]
The purchase cost described in subsection (e) of this section
assumes a lump-sum deposit will be made. If deposits are made over a period
of time as allowed by TRS, the purchase cost will be adjusted to reflect the
actuarial present value of the benefits attributable to the purchased service.
]
Chapter 29.
BENEFITS
Chapter 41.
INSURANCE PROGRAMS