TITLE 34.PUBLIC FINANCE

Part 3. TEACHER RETIREMENT SYSTEM OF TEXAS

Chapter 23. ADMINISTRATIVE PROCEDURES

34 TAC §23.7, §23.8

The Teacher Retirement System of Texas (TRS) adopts on an emergency basis amendments to §23.7 concerning the Code of Ethics for Consultants and Agents ("Code of Ethics") and to §23.8 concerning the expenditure reporting by consultants, advisors and brokers doing or approved to do business with TRS. The amendments are being adopted to comply with Senate Bill 1059, 78th Legislature (2003), Regular Session, which requires TRS to establish effective January 1, 2004 standards of conduct applicable to financial advisors and service providers, as defined therein, and brokers. TRS has revised the Code of Ethics and the Expenditure Reporting Memorandum and Form adopted by reference in these two sections to include provisions applicable to the conduct of brokers and financial providers. TRS is also proposing these amendments for public comment in this issue of the Texas Register .

The amendments to §23.7 reflect the amended title and new effective date of the revised Code of Ethics being adopted by reference. The amendments to §23.8 change the date on which the expenditure reporting forms must be filed from January 31st to April 15th each year and in addition, reflect the new effective date of the Expenditure Reporting Form and Expenditure Reporting Memorandum being adopted by reference. The amendments are adopted on an emergency basis pursuant to §2001.034 of the Government Code, which allows a state agency to adopt an emergency rule if a requirement of state or federal law requires adoption of the rule on less than 30 days notice.

Section 4 of Senate Bill 1059 requires TRS to establish standards of conduct for financial advisors and service providers and brokers effective January 1, 2004. TRS finds that this requirement of state law requires the adoption of the amended rules on fewer than 30 days notice.

The amended sections are also adopted on an emergency basis under Government Code, §2263.004, which requires the Board of Trustees of the Teacher Retirement System to adopt by rule standards of conduct and disclosure requirements for outside financial advisors and service providers, including consultants, agents, financial providers, and brokers who do or are approved to do business with TRS. The amendments are also adopted under Government Code, Chapter 825, §825.102, which authorizes the Board of Trustees of the Teacher Retirement System to adopt rules for, among other things, the transaction of business of the board, and under Government Code, Chapter 825, §825.212, which requires TRS by rule to adopt standards of conduct applicable to TRS consultants and advisors and to require TRS consultants, advisors, and brokers to report certain expenditures made on behalf of a TRS trustee or employee. As previously stated, the amended rules are also adopted under Government Code §2001.034.

Government Code, Chapters 552 and 2263; and §825.212 are affected by the adoption.

§23.7.Code of Ethics for Consultants , [ and ] Agents , Financial Providers and Brokers .

Any Consultant, Agent, or Financial Provider doing business with [ consultant or agent for ] the Teacher Retirement System of Texas (TRS) , or Broker approved to do business with TRS, must comply with TRS's [ its ] Code of Ethics for Consultants , [ and ] Agents , Financial Providers and Brokers (the "Code of Ethics") as amended from time to time. TRS adopts by reference the Code of Ethics [ for Consultants and Agents ] most recently amended to be effective January 1, 2004 [ on September 27, 2002 ]. Capitalized words appearing in this section have the same meaning assigned to them in the Code of Ethics. Copies of the Code of Ethics are available from TRS at 1000 Red River Street, Austin, Texas 78701-2698, (512) 542-6400.

§23.8.Expenditure Reporting by Consultants, Agents, Financial Providers [ Advisors, ] and Brokers.

Consultants, Agents, and Financial Providers doing business with [ advisors and brokers used by ] the Teacher Retirement System of Texas (TRS) , and Brokers approved to do business with TRS, must report expenditures made on behalf of any one trustee or employee of TRS. The reports must be filed no later than April 15 [ on January 31 ] of each year with the Executive Director and must comply with the Expenditure Reporting Memorandum as amended from time to time. TRS adopts by reference the Expenditure Reporting Memorandum and the Expenditure Reporting Form for Contractors as most recently amended to be effective January 1, 2004 [ on September 27, 2002 ]. Capitalized words appearing in this section have the same meaning assigned to them in the Code of Ethics for Consultants, Agents, Financial Providers and Brokers, as amended from time to time. Copies of the memorandum and the form are available from TRS at 1000 Red River Street, Austin, Texas 78701-2698, (512) 542-6400.

This agency hereby certifies that the emergency adoption 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 22, 2003.

TRD-200308871

Ronnie Jung

Interim Executive Director

Teacher Retirement System of Texas

Effective Date: January 1, 2004

Expiration Date: April 29, 2004

For further information, please call: (512) 542-6115


Chapter 41. HEALTH CARE AND INSURANCE PROGRAMS

Subchapter A. RETIREE HEALTH CARE BENEFITS (TRS-CARE)

34 TAC §41.6

The Teacher Retirement System of Texas is renewing the effectiveness of the emergency adoption of new §41.6 for a 60-day period. The text of new §41.6 was originally published in the August 29, 2003, issue of the Texas Register (28 TexReg 7043).

Filed with the Office of the Secretary of State on December 23, 2003.

TRD-200308880

Ronnie Jung

Interim Executive Director

Teacher Retirement System of Texas

Effective date: December 31, 2003

Expiration date: February 28, 2004

For further information, please call: (512) 542-6115


Subchapter C. TEXAS SCHOOL EMPLOYEES GROUP HEALTH (TRS-ACTIVECARE)

34 TAC §41.37

The Teacher Retirement System of Texas is renewing the effectiveness of the emergency adoption of amended §41.37 for a 60-day period. The text of amended §41.37 was originally published in the September 5, 2003, issue of the Texas Register (28 TexReg 7516).

Filed with the Office of the Secretary of State on December 23, 2003.

TRD-200308881

Ronnie Jung

Interim Executive Director

Teacher Retirement System of Texas

Effective date: December 31, 2003

Expiration date: February 28, 2004

For further information, please call: (512) 542-6115


34 TAC §41.53

The Teacher Retirement System of Texas is renewing the effectiveness of the emergency adoption of new §41.53 for a 60-day period. The text of new §41.53 was originally published in the August 29, 2003, issue of the Texas Register (28 TexReg 7044).

Filed with the Office of the Secretary of State on December 23, 2003.

TRD-200308882

Ronnie Jung

Interim Executive Director

Teacher Retirement System of Texas

Effective date: December 31, 2003

Expiration date: February 28, 2004

For further information, please call: (512) 542-6115