34 TAC §23.7, §23.8
The Teacher Retirement System of Texas (TRS) proposes amendments
to §23.7, relating to the Code of Ethics for Consultants and Agents,
and to §23.8, relating to Expenditure Reporting by Consultants, Advisors,
and Brokers. The proposed amendments have been adopted on an emergency basis
and are published in this issue of the
Texas Register
.
The amendments are being proposed in order to comply with Senate Bill 1059,
78th Legislature (2003), Regular Session, and are largely technical in nature
to make sure the rules conform to the revised Code of Ethics and related reporting
requirements and forms. The proposed amendments to §23.7 incorporate
by reference the revised Code of Ethics TRS adopted on December 19, 2003 and
to be effective January 1, 2004. In so doing, the amendments add brokers and
financial providers to the list of persons subject to the provisions of the
revised Code of Ethics. The proposed amendments to §23.8 incorporate
by reference the related expenditure reporting memorandum and form for consultants,
agents, financial providers, and brokers, both of which TRS also adopted on
December 19, 2003, with effective dates of January 1, 2004.
Tony C. Galaviz, Chief Financial Officer, has determined that for each
year of the first five-year period the proposed amendments are in effect,
there will be no fiscal implications to state or local governments as a result
of enforcing or administering the sections as amended. There is no foreseeable
effect on local employment or local economies as a result of the proposed
amendments.
Mr. Galaviz has also determined that for each year of the first five years
the proposed amendments are in effect the public benefit anticipated as a
result of implementing the rules will be to ensure that contractors doing
or approved to do business with TRS follow appropriate standards of conduct
and provide acceptable services in the best interests of TRS and its participants,
untainted by favoritism or conflict of interest. There is no anticipated adverse
economic effect on small businesses or micro-businesses as a result of compliance
with the proposed amendments. Mr. Galaviz has determined that there are no
anticipated economic costs to persons required to comply with the proposed
amendments for each year of the first five years that the amendments will
be in effect.
Written comments on the proposal may be submitted to Ronnie Jung, Interim
Executive Director, TRS, 1000 Red River, Austin, Texas 78701.
The amendments are proposed 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 proposed under Government Code, §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. In addition, the amendments are
proposed 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. Section 4 of
Senate Bill 1059, 78th Legislature (2003), Regular Session, requires TRS to
adopt initial rules complying with the act in time for the rules to take effect
not later than January 1, 2004.
Government Code, Chapters 552 and 2263; and §825.212 are affected
by the proposal.
§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 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 22, 2003.
TRD-200308872
Ronnie Jung
Interim Executive Director
Teacher Retirement System of Texas
Proposed date of adoption: March 25, 2004
For further information, please call: (512) 542-6115