TITLE rule-review

Proposed Rule Review

State Securities Board

Title 7, Part 7

The State Securities Board (Agency), beginning March 2007, will review and consider for readoption, revision, or repeal Chapters 113, Registration of Securities; 114, Federal Covered Securities; 123, Administrative Guidelines for Registration of Open-End Investment Companies; 125, Minimum Disclosures in Church and Nonprofit Institution Bond Issues; 135, Industrial Development Corporations and Authorities; and 137, Administrative Guidelines for Regulation of Offers, in accordance with Texas Government Code, §2001.039. The rules to be reviewed are located in Title 7, Part 7, of the Texas Administrative Code.

The assessment made by the Agency at this time indicates that the reasons for readopting these chapters continue to exist.

The Agency's Board will consider, among other things, whether the reasons for adoption of these rules continue to exist and whether amendments are needed. Any changes to the rules proposed by the Agency's Board after reviewing the rules and considering the comments received in response to this notice will appear in the "Proposed Rules" section of the Texas Register and will be adopted in accordance with the requirements of the Administrative Procedure Act, Texas Government Code Annotated, Chapter 2001. The comment period will last for 30 days beginning with the publication of this notice of intention to review.

Comments or questions regarding this notice of intention to review may be submitted in writing, within 30 days following the publication of this notice in the Texas Register , to David Weaver, General Counsel, P.O. Box 13167, Austin, Texas 78711-3167, or sent by facsimile to Mr. Weaver at (512) 305-8310. Comments will be reviewed and discussed in a future Board meeting.

TRD-200700631

Denise Voigt Crawford

Securities Commissioner

State Securities Board

Filed: February 20, 2007


Adopted Rule Reviews

Credit Union Department

Title 7, Part 6

The Credit Union Commission has completed the review of Texas Administrative Code Title 7, §91.503 relating to a change in the credit union president, and §91.515 relating to financial reporting. Notice of the proposed review was published in the November 10, 2006, issue of the Texas Register (31 TexReg 9367).

The Commission received no comments with respect to these rules. The Department believes that the reasons for initially adopting these rules continue to exist. The Commission finds that the reasons for initially adopting §91.503 and §91.515 continue to exist and proposes to readopt these sections without changes pursuant to the requirements of Government Code, §2001.039.

The readoption is proposed as a result of the Department's general rule review.

The specific section affected by the proposed readopted rules is Texas Finance Code, §122.058.

TRD-200700506

Harold E. Feeney

Commissioner

Credit Union Department

Filed: February 15, 2007


The Credit Union Commission has completed the review of Texas Administrative Code Title 7, §91.601 relating to share and deposit accounts, §91.602 relating to the solicitation and acceptance of brokered deposits, and §91.608 relating to confidentiality of member records. Notice of the proposed review was published in the November 10, 2006, issue of the Texas Register (31 TexReg 9367).

The Commission received no comments with respect to these rules. The Department believes that the reasons for initially adopting these rules continue to exist. The Commission finds that the reasons for initially adopting §91.601, §91.602, and §91.608 continue to exist and proposes to readopt these sections without changes pursuant to the requirements of Government Code, §2001.039.

The readoption is proposed as a result of the Department's general rule review.

The specific sections affected by the proposed readopted rules are Texas Finance Code, §125.002 and §125.003.

§91.601. Share and Deposit Accounts.

§91.602. Solicitation and Acceptance of Brokered Deposits.

§91.608. Confidentiality of Member Records.

TRD-200700514

Harold E. Feeney

Commissioner

Credit Union Department

Filed: February 15, 2007


Teacher Retirement System of Texas

Title 34, Part 3

The Board of Trustees (Board) of the Teacher Retirement System of Texas (TRS or system) adopts the review of Chapter 21 (Purpose and Scope), in accordance with §2001.039 of the Texas Government Code and the related rules of the Secretary of State. The initial Notice of Intention to Review (Proposed Review of) Chapter 21 was published in the March 31, 2006, issue of the Texas Register (31 TexReg 2884) and an expanded notice of proposed review was published in the November 10, 2006, issue of the Texas Register (31 TexReg 9368). In addition, a Rule Review Plan for Chapter 21 was posted on the Secretary of State's Web site in October 2005.

TRS received no comments regarding the readoption of Chapter 21.

TRS has assessed whether the reasons for adopting or readopting the single rule contained in Chapter 21, §21.1 (Statement of Policy), continue to exist. TRS finds that §21.1 reflects current law, policy, and procedure and is needed, and the reasons for initially adopting Chapter 21 and §21.1 it continue to exist. TRS readopts §21.1 without amendment.

Statutory Authority: Chapter 21 is readopted under §825.102, Government Code, which authorizes the Board to adopt rules for the administration of the funds of the retirement system and for the transaction of the business of the Board.

Cross-reference to Statute: The readoption of Chapter 21 affects the following statutes in the Government Code - §2001.058, relating to a hearing conducted by the State Office of Administrative Hearings, and §825.115(b) relating to adoption of findings and conclusions by the TRS Board of Trustees.

This concludes the review of Chapter 21 (Purpose and Scope).

TRD-200700621

Ronnie G. Jung

Executive Director

Teacher Retirement System of Texas

Filed: February 20, 2007


The Board of Trustees (Board) of the Teacher Retirement System of Texas (TRS or system) adopts the review of Chapter 23 (Administrative Procedures) in accordance with §2001.039 of the Texas Government Code and the related rules of the Secretary of State. The initial Notice of Intention to Review (Proposed Review of) Chapter 23 was published in the March 31, 2006, issue of the Texas Register (31 TexReg 2884) and an Expanded Notice of Proposed Review was published in the November 10, 2006, issue of the Texas Register (31 TexReg 9368). In addition, a Rule Review Plan for Chapter 23 was posted on the Secretary of State's Web site in October 2005.

TRS received no comments regarding the readoption of Chapter 23.

TRS has assessed whether the reasons for adopting or readopting the rules in Chapter 23 continue to exist. In conjunction with the review of Chapter 23, TRS readopts §23.1 (Complaints) without amendments. As part of the rule review, TRS readopts the following sections with amendments, as published elsewhere in this issue of the Texas Register : §23.4 (Public Participation in Adoption of Rules), §23.5 (Nomination for Appointment to the Board of Trustees), §23.7 (Code of Ethics for Consultants, Agents, Financial Providers and Brokers), and §23.8 (Expenditure Reporting by Consultants, Agents, Financial Providers and Brokers). TRS finds that, with those changes, the rules in Chapter 23 reflect current law, policy, and procedure and are needed, and the reasons for initially adopting the rules continue to exist. TRS, therefore, readopts Chapter 23 and the rules contained in it, as described in this notice.

Statutory Authority: Chapter 23 is readopted under §825.102, Government Code, which authorizes the Board to adopt rules for the administration of the funds of the retirement system and for the transaction of the business of the Board.

Cross-reference to Statute: The readoption of Chapter 23 affects the following statutes in the Government Code - §825.002, which provides for the nomination of persons for appointment to the TRS board; §825.113, which relates to miscellaneous board duties, including relating to complaints and opportunity to appear before the board§825.115, which makes TRS subject to the administrative procedure law, Chapter 2001 of the Government Code; §825.212, which provides for the adoption and enforcement of an ethics policy for employees, consultants, and advisors of the retirement system and requires the filing of reports showing expenditures made on behalf of TRS trustees or employees; §825.511, which relates to complaint files; §2001.021, which provides for an interested person to petition TRS for the adoption of a rule; and §2001.029, which provides all interested persons a reasonable opportunity to comment on a proposed rule before TRS adopts it.

This concludes the review of Chapter 23 (Administrative Procedures).

TRD-200700599

Ronnie G. Jung

Executive Director

Teacher Retirement System of Texas

Filed: February 16, 2007


The Board of Trustees (Board) of the Teacher Retirement System of Texas (TRS or system) adopts the review of Chapter 25 (Membership Credit) in accordance with §2001.039 of the Texas Government Code and the related rules of the Secretary of State. The initial Notice of Intention to Review (Proposed Review of) Chapter 25 was published in the March 31, 2006, issue of the Texas Register (31 TexReg 2884) and an Expanded Notice of Proposed Review was published in the November 10, 2006, issue of the Texas Register (31 TexReg 9368). In addition, a Rule Review Plan for Chapter 25 was posted on the Secretary of State's Web site in October 2005.

TRS received no comments regarding the readoption of Chapter 25.

TRS has assessed whether the reasons for adopting or readopting the rules in Chapter 25 continue to exist. In conjunction with the review of Chapter 25, TRS readopts the following sections without amendments: In Subchapter A (Service Eligible for Membership) - §25.2 (Bus Drivers), §25.3 (Independent or Third-Party Contractors), §25.4 (Substitutes), §25.6 (Part-time or Temporary Employment), §25.10 (Student Employment); in Subchapter B (Compensation) - §25.22 (Contributions to Cafeteria Plans and Deferred Compensation), §25.24 (Performance Pay), §25.25 (Required Deposits), §25.26 (Annual Compensation Creditable for Benefit Calculation), §25.28 (Payroll Report Dates), §25.30 (Conversion of Noncreditable Compensation to Salary), §25.31 (Percentage Limits on Compensation Increases), §25.34 (Membership Waiting Period), §25.35 (Employer Payments for New Members); in Subchapter E (Military Service) - §25.61 (Service Credit for Eligible Military Duty), §25.64 (Crediting Fee), §25.66 (Application for Military Credit); in Subchapter F [Veteran's (USERRA) Service Credit] - §25.71 (Service Credit for Eligible Active Military Duty Under the Uniformed Services Employment and Re-Employment Rights Act), §25.72 (Limitations on Eligible Service), §25.73 (Ineligible Military Service), §25.74 (Cost), §25.76 (Eligibility of Retiree); in Subchapter G (Purchase of Credit for Out-of-State Service) - §25.81 (Out-of-State Service Eligible for Credit), §25.84 (Crediting Fees), §25.85 (Amount of Out-of-State Service Which Can Be Purchased), §25.86 (Computing Average Compensation), §25.87 (Effective Date of Out-of-State Service Credit and Time for Payment); in Subchapter I (Verification of Service) - §25.122 ( Affidavit); in Subchapter J (Creditable Time and School Year) - §25.132 (Paid Leave Time), §25.133 (School Year), §25.134 (Credit Limit); in Subchapter K (Developmental Leave) - §25.151 (Developmental Leave, Eligibility, Cost), §25.152 (Application and Payment for Developmental Leave Credit); in Subchapter L (Other Special Credit Service) - §25.162 (State Personal or Sick Leave Credit), §25.163 (Service Credit Purchase); in Subchapter M (Optional Retirement Program) - §25.171 (Election of ORP), §25.172 (ORP and TRS); and in Subchapter N (Installment Payments) - §25.181 (Minimum Monthly Payment), §25.182 (Yearly Increments of Credit), §25.183 (Nonpayment), §25.185 (Amounts Not Refundable), §25.186 (Automatic Bank Draft), §25.188 (Payment by Beneficiary), §25.189 (Fees Set at the Time of First Payment), §25.190 (Employer Pick-up of Installment Payments). TRS withdrew the proposed amendments to §25.31 (Percentage Limits on Compensation Increases) as published in the November 10, 2006, issue of the Texas Register .

Also as a result of the rule review of Chapter 25, TRS readopts the following sections with amendments, as published elsewhere in this issue of the Texas Register : In Subchapter A (Service Eligible for Membership) - §25.1 (Full-time Service); in Subchapter B (Compensation) - §25.21 (Compensation Subject to Deposit and Credit), §25.33 (Contribution Limitation Based on Compensation); in Subchapter C (Unreported Service or Compensation) - §25.41 (Required Deposits), §25.42 (Payment of Benefits Contingent on Deposits), §25.43 (Deposits for Unreported Service), §25.45 (Verification of Unreported Compensation), §25.46 (Determination of Compensation Subject to Deposit and Credit); in Subchapter F [Veteran's (USERRA) Service Credit] -§25.75 (Application for Eligible Active Military Duty Under the Uniformed Services Employment and Re-Employment Rights Act); in Subchapter G (Purchase of Credit for Out-of-State Service) - §25.82 (Cost); in Subchapter H (Joint Service with Employees Retirement System) - §25.113 (Transfer of Credit between TRS and ERS); in Subchapter I (Verification of Service) - §25.121 (Employer Verification), §25.123 (Certification); in Subchapter J (Creditable Time and School Year) - §25.131 (Required Service); in Subchapter L (Other Special Credit Service) - §25.161 (Work Experience Service Credit), §25.164 (Credit for Service During School Year With Membership Waiting Period); in Subchapter N (Installment Payments) - §25.184 (Refund for Nonpayment); in Subchapter O (Rollover Distributions and Transfers to TRS) - §25.201 (Acceptance of Rollovers and Transfers for Purchase of TRS Credit); and in Subchapter P (Calculation of Fees) - §25.301 (Calculation of Fees).

Further, as a result of the review of Chapter 25, TRS repeals §25.44 (Service Eligibility) in Subchapter C and adopts new §25.302 (Calculation of Actuarial Cost) in Subchapter P, as published elsewhere in this issue of the Texas Register .

TRS finds that, with the changes described above, the rules in Chapter 25 reflect current law, policy, and procedure and are needed, and the reasons for initially adopting the rules continue to exist. TRS, therefore, readopts Chapter 25 and the rules contained in it but for §25.44, as described in this notice.

Statutory Authority: Chapter 25 is readopted under the following statutes in the Government Code - §805.009, which authorizes the Board to adopt rules for the administration of Chapter 805; §823.002, which authorizes the Board to determine by rule the amount of service equivalent to a year of service credit; §823.005, which authorizes the Board to adopt rules for the acceptance of rollovers; §825.102, which authorizes the Board to adopt rules for the eligibility for membership, administration of the funds of the retirement system, and the transaction of the business of the Board; §825.110, which requires the board to adopt rules that include a percentage limit on increases in annual compensation; §825.410, which authorizes the Board to adopt rules to implement the statutory provisions on installment payments; and §825.506, which authorizes the Board to adopt rules that modify the plan to the extent necessary for the retirement system to be a qualified plan.

Cross-reference to Statute: The readoption of Chapter 25 affects the following laws - Chapter 805, Government Code, which authorizes transfer of service credit between TRS and ERS; §821.001, Government Code, which defines "employee" and "annual compensation"; §822.001, Government Code, which states the membership requirement and provides for member compensation subject to reporting and contributions; §822.201, Government Code, which describes compensation subject to report and deduction for member contributions and to credit in benefit computations; §823.002, Government Code, which addresses service creditable in a year; §823.005, Government Code, authorizing TRS to accept rollovers and transfers of funds; §823.006, Government Code, providing for limits on contributions; §823.302, Government Code, providing for the payment of fees in connection with the purchase of military service credit; §823.304, Government Code, which authorizes the purchase of USERRA service credit; §823.401, providing for the payment of fees in connection with the purchase of out-of-state service credit and requiring the payment of actuarial cost for the establishment of out-of-state service credit; §823.404, requiring the payment of actuarial cost for the establishment of service credit for work experience by career or technology teacher; §823.406, requiring the payment of actuarial cost for the purchase of membership waiting period service credit; §823.501, providing for fees for the reinstatement of credit canceled by membership termination; §824.203, which provides for the calculation of a standard service retirement annuity using a five year salary average; §825.105, authorizing the Board to adopt actuarial tables; §825.403, Government Code, which provides for collection of member contributions and for fees on deposits required but not made, including audit of records used to document deductions required but not paid; §825.410, Government Code, providing for installment payments; §825.505, Government Code, which authorizes TRS to audit employer records; §825.506, providing for the administration of the retirement plan as a qualified plan under federal tax law; and Acts 2005, 79th Leg. Ch. 1312 (HB 3169), §§2, 3, & 4 and Acts 2005, 79th Leg., ch. 1359 (SB 1691), §55 and §63, which repeal the credit purchase option effective January 1, 2006 but provide that the repeal does not apply if an installment agreement existed immediately before January 1, 2006; Acts 2005, 79th Leg., ch. 1359 (Senate Bill 1691), §58, which provides for a three year salary average for grandfathered members; and 26 United States Code §401(a) providing for the qualification of retirement plans under the federal tax code and §415(c) providing for limitations on annual contributions to qualified plans.

This concludes the review of Chapter 25 (Membership Credit).

TRD-200700600

Ronnie G. Jung

Executive Director

Teacher Retirement System of Texas

Filed: February 16, 2007


The Board of Trustees (Board) of the Teacher Retirement System of Texas (TRS or system) adopts the review of Chapter 27 (Termination of Membership and Refunds) in accordance with §2001.039 of the Texas Government Code and the related rules of the Secretary of State. The initial Notice of Intention to Review (Proposed Review of) Chapter 27 was published in the March 31, 2006, issue of the Texas Register (31 TexReg 2884) and an Expanded Notice of Proposed Review was published in the November 10, 2006, issue of the Texas Register (31 TexReg 9368). In addition, a Rule Review Plan for Chapter 27 was posted on the Secretary of State's Web site in October 2005.

TRS received no comments regarding the readoption of Chapter 27.

TRS has assessed whether the reasons for adopting or readopting the rules in Chapter 27 continue to exist. In conjunction with the review of Chapter 27, TRS readopts the following sections without amendments: §27.4 (Refunds), §27.5 (Termination of Right to Benefits), and §27.10 (Forfeitures May Not Increase Benefits). As part of the rule review, TRS readopts the following sections with amendments, as published elsewhere in this issue of the Texas Register : §27.2 (Withdrawal by a Person in a Position Not Eligible for TRS Membership), §27.3 (False Affidavit and Ineligible Refunds), §27.6 (Reinstatement of an Account), and §27.8 (Reinstatement of Membership and Service Credit by ORP Participants). TRS finds that, with those changes, the rules in Chapter 27 reflect current law, policy, and procedure and are needed, and the reasons for initially adopting the rules continue to exist. TRS, therefore, readopts Chapter 27 and the rules contained in it, as described in this notice.

Statutory Authority: Chapter 27 is readopted under §825.102, Government Code, which authorizes the Board to adopt rules for eligibility for membership, the administration of the funds of the retirement system, and for the transaction of the business of the Board and under §825.506, which authorizes the board to adopt rules that modify the plan to the extent necessary for the retirement system to be a qualified plan.

Cross-reference to Statute: The readoption of Chapter 27 affects the following statutes in the Government Code - Subchapter A of Chapter 822, which provides for required and optional TRS membership, exceptions to required membership, termination of membership and its effect, withdrawal of contributions, and resumption of terminated membership; Chapter 830, which establishes the Optional Retirement Program (ORP) as an alternative to participation in TRS for eligible employees; and 26 United States Code §401(a) providing for the qualification of retirement plans under the federal tax code.

This concludes the review of Chapter 27 (Termination of Membership and Refunds).

TRD-200700601

Ronnie G. Jung

Executive Director

Teacher Retirement System of Texas

Filed: February 16, 2007


The Board of Trustees (Board) of the Teacher Retirement System of Texas (TRS or system) adopts the review of Chapter 29 (Benefits) in accordance with §2001.039 of the Texas Government Code and the related rules of the Secretary of State. The initial Notice of Intention to Review (Proposed Review of) Chapter 29 was published in the March 31, 2006, issue of the Texas Register (31 TexReg 2884) and an Expanded Notice of Proposed Review was published in the November 10, 2006, issue of the Texas Register (31 TexReg 9368). In addition, a Rule Review Plan for Chapter 29 was posted on the Secretary of State's Web site in October 2005.

TRS received no comments regarding the readoption of Chapter 29.

TRS has assessed whether the reasons for adopting or readopting the rules in Chapter 29 continue to exist. In conjunction with the review of Chapter 29, TRS readopts the following sections without amendments: In Subchapter A (Retirement) - §29.4 (Actual Compensation), §29.5 (Computation of Retirement Benefits), §29.8 (Retirement Payment Plans), §29.9 (Survivor Benefits), §29.10 (Retirement Under Options 3 and 4), §29.11 (Actuarial Tables), §29.12 (Early Age Retirement Benefit Calculated on Law in Effect Before September 1, 2005), §29.13 (Changing Beneficiary for Survivor Benefits), §29.14 (Eligibility for Retirement at the End of May), §29.16 (Unpaid Benefits), §29.17 (Latest Date for Commencement of Benefits), §29.21 (Beneficiary Tables), §29.22 (Approval of Disability Retirements), §29.23 (Disability Retirement with Less Than 10 Years of Creditable Service), §29.24 (Purchase of Credit); in Subchapter B (Death Before Retirement) - §29.33 (Absence from Service), §29.34 (Limitations); in Subchapter C (Postretirement Increases) - §29.40 (Election of Recalculation of Benefit); in Subchapter E (Deferred Retirement Option Plan) - §29.62 (Unemployment During Deferred Retirement Option Plan), §29.63 (Deadline for Purchase of Special Service Credit); in Subchapter F (Partial Lump-Sum Payment) - §29.71 (Tables), §29.72 (Eligibility to Select PLSO); and in Subchapter G (Proportionate Retirement) - §29.80 (Eligibility for Normal Age Retirement). TRS withdrew the proposed amendments to §29.34 (Limitations) as published in the November 10, 2006, issue of the Texas Register .

Also as a result of the rule review of Chapter 29, TRS readopts the following sections with amendments, as published elsewhere in this issue of the Texas Register : In Subchapter A (Retirement) - §29.15 (Termination of Employment), §29.26 (Discontinuance of Disability Benefits); in Subchapter D (Plan Limitations) - §29.50 (Definitions), §29.51 (Plan Limitations on Retirement Benefits), §29.52 (Adjustment to Annual Benefit Limit), §29.55 (Limitation on Contributions); in Subchapter E (Deferred Retirement Option Plan) - §29.61 (Distribution); and in Subchapter F (Partial Lump-Sum Payment) - §29.70 (Distribution).

Further, as a result of the review of Chapter 29, TRS repeals §29.53 (Limitation for Participant in Defined Contribution Plan) in Subchapter D, as published elsewhere in this issue of the Texas Register .

TRS finds that, with the changes described above, the rules in Chapter 29 reflect current law, policy, and procedure and are needed, and the reasons for initially adopting the rules continue to exist. TRS, therefore, readopts Chapter 29 and the rules contained in it but for §29.53, as described in this notice.

Statutory Authority: Chapter 29 is readopted under the following statutes - §825.102, Government Code, which authorizes the Board to adopt rules for eligibility of membership, the administration of the funds of the retirement system, and for the transaction of the business of the Board; and §825.506, Government Code, which authorizes the Board to adopt rules that modify the plan to the extent necessary for the retirement system to be a qualified plan and which require the board to adopt rules to ensure that benefits paid to a retiree, or to a beneficiary of a member or retiree, do not exceed the limits provided by §415 of the Internal Revenue Code of 1986 (26 U.S.C. §415). Chapter 29 is readopted with the repeal of §29.53 (Limitation for Participant in Defined Contribution Plan) under the following statute: §825.102, Government Code, which authorizes the Board to adopt rules for eligibility of membership, the administration of the funds of the retirement system, and for the transaction of the business of the Board.

Cross-reference to Statute: The readoption of Chapter 29 with unamended, amended, repealed, and new sections affects the following statutes in the Government Code - §821.001, providing a definition of "annual compensation"; §822.001, establishing the membership requirement and providing for member compensation subject to reporting and contributions; §822.201, providing for member compensation subject to reporting and contributions; Subchapter D (Establishment of Military Service) of Chapter 823, providing for the purchase of military service credit; Subchapter E (Establishment of Equivalent Membership Service) of Chapter 823, providing for the purchase of service credit for out-of-state service, developmental leave, unused state personal or sick leave, work experience by a career or technology teacher, and membership waiting period service; §823.006, providing for limits on contributions; §824.203, providing for the calculation of the standard service retirement annuity; §824.2045, providing for a partial lump sum option ("PLSO"); Subchapter D (Disability Retirement Benefits) of Chapter 824, providing for disability retirement benefits; Subchapter I (Deferred Retirement Option Plan) of Chapter 824, providing for participation in DROP; §825.403, providing for the collection of member contributions, including deductions previously required but not paid; §825.409, providing for employer pick-up of member contributions; §825.506, providing for the administration of the retirement plan as a qualified plan under federal tax law; §825.517, providing for an excess benefit arrangement; and 26 United States Code §401(a), providing for qualification of retirement plans under the federal tax code, §415, providing for limitations relating to qualified plans under the federal tax code, including limitations on benefits from a qualified plan, and §415(m), providing for a governmental excess benefit arrangement under the federal tax code. The readoption affects the following statutes in the Family Code - §9.302(e), relating to the pre-decree designation of an ex-spouse as beneficiary in retirement benefits of a public retirement system.

This concludes the review of Chapter 29 (Benefits).

TRD-200700602

Ronnie G. Jung

Executive Director

Teacher Retirement System of Texas

Filed: February 16, 2007


The Board of Trustees (Board) of the Teacher Retirement System of Texas (TRS or system) adopts the review of Chapter 31 (Employment After Retirement) in accordance with §2001.039 of the Texas Government Code and the related rules of the Secretary of State. The initial Notice of Intention to Review (Proposed Review of) Chapter 31 was published in the March 31, 2006, issue of the Texas Register (31 TexReg 2884) and an Expanded Notice of Proposed Review was published in the November 10, 2006, issue of the Texas Register (31 TexReg 9368). In addition, a Rule Review Plan for Chapter 31 was posted on the Secretary of State's Web site in October 2005.

TRS received no comments regarding the readoption of Chapter 31.

TRS has assessed whether the reasons for adopting or readopting the rules in Chapter 31 continue to exist. In conjunction with the review of Chapter 31, TRS readopts the following sections without amendments: In Subchapter A (General Provisions) - §31.1 (Definitions), §31.2 (Monthly Certified Statement), and §31.3 (Exceptions Apply Only to Effective Retirements); in Subchapter B (Employment After Service Retirement) - §31.11 (Employment Resulting in Forfeiture of Service Retirement Annuity) and §31.18 (Bus Driver Exception); and in Subchapter C (Employment After Disability Retirement) - §31.31 (Employment Resulting in Forfeiture of Disability Retirement Annuity), §31.32 (Half-Time Employment Up to 90 Days), and §31.33 (Substitute Service Up to 90 Days).

Also as a result of the rule review of Chapter 31, TRS readopts the following sections with amendments, as published elsewhere in this issue of the Texas Register : In Subchapter B (Employment After Service Retirement) - §31.12 (Exceptions to Forfeiture of Service Retirement Annuity), §31.13 (Substitute Service), §31.14 (One-Half Time Employment), §31.15 (Six-Month Exception), §31.16 (Acute Shortage Area Exception), §31.17 (Principal or Assistant Principal Exception), and §31.19 (Faculty Member of Professional Nursing Program); in Subchapter C (Employment After Disability Retirement) - §31.34 (Employment Up to Three Months on a One-Time Only Trial Basis); and in Subchapter D (Employer Pension Surcharge) - §31.41 (Return to Work Employer Pension Surcharge).

TRS finds that, with the changes described above, the rules in Chapter 31 reflect current law, policy, and procedure and are needed, and the reasons for initially adopting the rules continue to exist. TRS, therefore, readopts Chapter 31 and the rules contained in it as described in this notice.

Statutory Authority: Chapter 31 is readopted under the following statutes in the Government Code - §824.601, which authorizes the retirement system to adopt rules necessary for administering Subchapter G (relating to Loss of Benefits on Resumption of Service) of Chapter 824; §824.602, which requires the TRS Board of Trustees to adopt rules governing the employment of a substitute and defining "one-half time basis"; and §825.102, which authorizes the Board to adopt rules for eligibility for membership, the administration of the funds of the retirement system, and for the transaction of the business of the Board.

Cross-reference to Statute: The readoption of Chapter 31 affects the following statutes in the Government Code - §824.002, which provides for the effective date of retirement; §824.601, which provides for the loss of benefits on resumption of service; §824.602, which provides for exceptions to the general rule of forfeiture of retirement annuity for employment after retirement; and §825.4092, which provides for employer contributions (surcharges) for employed retirees.

This concludes the review of Chapter 31 (Employment After Retirement).

TRD-200700603

Ronnie G. Jung

Executive Director

Teacher Retirement System of Texas

Filed: February 16, 2007


The Board of Trustees (Board) of the Teacher Retirement System of Texas (TRS or system) adopts the review of Chapter 33 (Legal Capacity) in accordance with §2001.039 of the Texas Government Code and the related rules of the Secretary of State. The initial Notice of Intention to Review (Proposed Review of) Chapter 33 was published in the March 31, 2006, issue of the Texas Register (31 TexReg 2884) and an Expanded Notice of Proposed Review was published in the November 10, 2006, issue of the Texas Register (31 TexReg 9368). In addition, a Rule Review Plan for Chapter 33 was posted on the Secretary of State's Web site in October 2005.

TRS received no comments regarding the readoption of Chapter 33.

TRS has assessed whether the reasons for adopting or readopting the rules in Chapter 33 continue to exist. In conjunction with the review of Chapter 33, TRS readopts the following sections without amendments: §33.1 (Selection of Plan for Payment of Death Claim for a Minor Child), §33.3 (Selection of Plan for Payment of Death Claim for an Incapacitated Person), §33.4 (Selection of Retirement Plan for an Incapacitated Person), §33.6 (Power of Attorney), and §33.7 (Acceptable Signatures).

Also as a result of the rule review of Chapter 33, TRS readopts the following sections with amendments, as published elsewhere in this issue of the Texas Register : §33.2 (Payments for the Account of a Minor Child or Incapacitated Person) and §33.5 (Approval of Designated Beneficiary).

TRS finds that, with the changes described above, the rules in Chapter 33 reflect current law, policy, and procedure and are needed, and the reasons for initially adopting the rules continue to exist. TRS, therefore, readopts Chapter 33 and the rules contained in it as described in this notice.

Statutory Authority: Chapter 33 is readopted under the following statutes in the Government Code - §825.102, which authorizes the Board to adopt rules for the administration of the funds of the retirement system and for the transaction of the business of the Board.

Cross-reference to Statute: The readoption of Chapter 33 affects the following statutes in the Government Code - §824.404, which provides for survivor benefits and selection for plan of payment, including those made by a guardian on behalf of a minor child; and §825.508, which provides that persons entitled to an annuity payment or other benefits administered by TRS may designate an authorized representative by power of attorney.

This concludes the review of Chapter 33 (Legal Capacity).

TRD-200700604

Ronnie G. Jung

Executive Director

Teacher Retirement System of Texas

Filed: February 16, 2007


The Board of Trustees (Board) of the Teacher Retirement System of Texas (TRS or system) adopts the review of Chapter 35 (Payments by TRS) in accordance with §2001.039 of the Texas Government Code and the related rules of the Secretary of State. The initial Notice of Intention to Review (Proposed Review of) Chapter 35 was published in the March 31, 2006, issue of the Texas Register (31 TexReg 2884) and an Expanded Notice of Proposed Review was published in the November 10, 2006, issue of the Texas Register (31 TexReg 9368). In addition, a Rule Review Plan for Chapter 35 was posted on the Secretary of State's Web site in October 2005.

TRS received no comments regarding the readoption of Chapter 35.

TRS has assessed whether the reasons for adopting or readopting the rules in Chapter 35 continue to exist. In conjunction with the review of Chapter 35, TRS readopts §35.2 (Direct Rollovers from TRS) without amendments. Also as a result of the rule review of Chapter 35, TRS readopts §35.1 (Computation Error) with amendments, as published elsewhere in this issue of the Texas Register .

TRS finds that, with the changes described above, the rules in Chapter 35 reflect current law, policy, and procedure and are needed, and the reasons for initially adopting the rules continue to exist. TRS, therefore, readopts Chapter 35 and the rules contained in it as described in this notice.

Statutory Authority: Chapter 35 is readopted under the following statutes in the Government Code - §825.102, which authorizes the Board to adopt rules for the administration of the funds of the retirement system and for the transaction of the business of the Board, and §824.601(f), which authorizes the Board to adopt rules necessary for the administration of Government Code Chapter 804, Subchapter G, Loss of Benefits on Resumption of Service, relating to employment after retirement.

Cross-reference to Statute: The readoption of Chapter 35 affects the following statutes in the Government Code - §802.1024, which provides for the correction of errors in the payment of benefits by a retirement system; §825.109, which provides for the correction of errors by TRS so that future payments will be adjusted to reflect the actuarial equivalent of the benefits to which the person is entitled; §823.002, which establishes requirements for the correction of errors related to the determination of creditable service; §824.006, which provides that a monthly annuity is payable to a retiree or beneficiary through the month in which the person entitled to the annuity dies; §824.601, which provides that a retiree is not entitled to benefit payments for any month in which the retiree is employed in Texas public education, except as provided for by §824.602; §403.055, which prohibits payments to debtors or delinquents; and §403.0551, which provides for deductions for repayment of certain debts or tax delinquencies.

This concludes the review of Chapter 35 (Payments by TRS).

TRD-200700605

Ronnie G. Jung

Executive Director

Teacher Retirement System of Texas

Filed: February 16, 2007


The Board of Trustees (Board) of the Teacher Retirement System of Texas (TRS or system) adopts the review of Chapter 39 (Proof of Age), in accordance with §2001.039 of the Texas Government Code and the related rules of the Secretary of State. The initial Notice of Intention to Review (proposed review) Chapter 39 was published in the March 31, 2006, issue of the Texas Register (31 TexReg 2884) and an expanded notice of proposed review was published in the November 10, 2006, issue of the Texas Register (31 TexReg 9368). In addition, a Rule Review Plan for Chapter 39 was posted on the Secretary of State's Web site in October 2005.

TRS received no comments regarding the readoption of Chapter 39.

TRS has assessed whether the reasons for adopting or readopting the single rule contained in Chapter 39, §39.1 (Establishment of Date of Birth), continue to exist. TRS finds that §39.1 reflects current law, policy, and procedure and is needed, and the reasons for initially adopting Chapter 39 and §39.1 continue to exist. TRS readopts §39.1 without amendment.

Statutory Authority: Chapter 39 is readopted under §825.102, Government Code, which authorizes the Board to adopt rules for the administration of the funds of the retirement system and for the transaction of the business of the Board.

Cross-reference to Statute: The readoption of Chapter 39 affects the following statutes in the Government Code - Chapter 824, Benefits, which provides for eligibility for certain benefits based on age, reductions to benefits based on early age, and the adoption of actuarial tables, which relate to age of a member or beneficiary.

This concludes the review of Chapter 39 (Proof of Age).

TRD-200700606

Ronnie G. Jung

Executive Director

Teacher Retirement System of Texas

Filed: February 16, 2007


The Board of Trustees (Board) of the Teacher Retirement System of Texas (TRS or system) adopts the review of Chapter 41 (Health Care and Insurance Programs) in accordance with §2001.039 of the Texas Government Code and the related rules of the Secretary of State. The initial Notice of Intention to Review (Proposed Review of) Chapter 41 was published in the March 31, 2006, issue of the Texas Register (31 TexReg 2884) and an Expanded Notice of Proposed Review was published in the November 10, 2006, issue of the Texas Register (31 TexReg 9368). In addition, a Rule Review Plan for Chapter 41 was posted on the Secretary of State's Web site in October 2005.

TRS received no comments regarding the readoption of Chapter 41.

TRS has assessed whether the reasons for adopting or readopting the rules in Chapter 41 continue to exist. In conjunction with the review of Chapter 41, TRS readopts the following sections without amendments: In Subchapter A (Retiree Health Care Benefits (TRS-Care)) - §41.1 (Initial Enrollment Periods for the Health Benefits Program Under the Texas Public School Retired Employees Group Benefits Act (TRS-Care)), §41.2 (Additional Enrollment Opportunity), §41.3 (Retirees Advisory Committee), §41.4 (Employer Health Benefit Surcharge), §41.5 (Payment of Contributions), §41.6 (Required Contributions from Public Schools), §41.7 (Effective Date of Coverage), §41.8 (Eligible Bidders), §41.9 (Bid Procedure), §41.10 (Eligibility to Enroll in the Health Benefits Program Under the Texas Public School Retired Employees Group Benefits Act), §41.11 (Years of Service Credit Used to Determine Premiums), §41.14 (Expulsion from TRS-Care for Fraud); in Subchapter B (Long-Term Care, Disability, and Life Insurance) - §41.20 (Effective Date of Coverage Under the Texas Public School Employees and Retirees Group Long-Term Care Insurance Program); and in Subchapter C (Texas School Employees Group Health (TRS-ActiveCare)) - §41.45 (Required Information from School Districts with More than 1,000 Employees).

Also as a result of the rule review of Chapter 41, TRS readopts the following sections with amendments, as published elsewhere in this issue of the Texas Register : In Subchapter B (Long-Term Care, Disability, and Life Insurance) - §41.15 (Requirements to Bid on Insurance For School District Employees and Retirees Under Chapters 1576 and 1577 of the Insurance Code), §41.16 (Coverage Offered Under the Texas Public School Employees and Retirees Group Long-Term Care Insurance Program), §41.17 (Definitions), §41.18 (Eligibility for Texas Public School Employees and Retirees Group Long-Term Care Insurance Program), §41.19 (Initial Enrollment Periods for Texas Public School Employees and Retirees Group Long-Term Care Insurance Program); in Subchapter C (Texas School Employees Group Health (TRS-ActiveCare)) - §41.30 (Participation in the Texas School Employees Uniform Group Health Coverage Act (TRS-ActiveCare) by School Districts, Other Educational Districts, Charter Schools, and Regional Education Service Centers), §41.31 (Eligible Bidders), §41.32 (Bid Procedure), §41.33 (Definitions Applicable to the Texas School Employees Uniform Group Health Coverage Program), §41.34 (Eligibility for Coverage under the Texas School Employees Uniform Group Health Coverage Program), §41.35 (Coverage Plans), §41.36 (Enrollment Periods for the TRS-ActiveCare Program), §41.37 (Effective Date of Coverage), §41.38 (Termination Date of Coverage), §41.39 (Coverage for Individuals Changing Employers), §41.40 (Coverage Continuation While on Leave Without Pay), §41.41(Premium Payment), §41.50 (Adjudication of Claims), §41.51 (Appeals Relating to Eligibility), and §41.52 (Expulsion from TRS-ActiveCare Program); and in Subchapter D (Comparability of Group Health Coverages) - §41.91 (Certification of Insurance Coverage).

TRS finds that, with the changes described above, the rules in Chapter 41 reflect current law, policy, and procedure and are needed, and the reasons for initially adopting the rules continue to exist. TRS, therefore, readopts Chapter 41 and the rules contained in it, as described in this notice.

Statutory Authority: Chapter 41 is readopted under the following statutes - §1575.052, Insurance Code, which authorizes TRS to adopt rules necessary to implement and administer the Texas Public School Employees Group Insurance Program (TRS-Care program); §1575.205, Insurance Code, which requires TRS to adopt rules for the collection of additional contributions from participants to cover the costs of an optional plan elected under the TRS-Care program; §1575.212, Insurance Code, which requires TRS to adopt rules establishing ranges for payments by retirees under the TRS-Care program; §1575.407, Insurance Code, which requires TRS to adopt procedural rules for the Retirees Advisory Committee to follow; §1576.006, Insurance Code, which authorizes TRS to adopt rules relating to the group long-term care insurance program as TRS considers necessary; §1579.052, Insurance Code, which authorizes TRS to adopt rules relating to the health benefits program established under the Texas School Employees Uniform Group Health Coverage Act (Chapter 1579, Insurance Code) (the TRS-ActiveCare program) as TRS considers necessary, including rules relating to the adjudication of claims and expelling participants from the program for cause; §1579.101, Insurance Code, which requires TRS to establish by rule plans for group coverages under the TRS-ActiveCare program and to define by rule the requirements of each coverage plan and tier of coverage; §1579.102, Insurance Code, which requires TRS to prescribe by rule the coverage provided under the TRS-ActiveCare catastrophic coverage plan; and §22.004, Education Code, which requires TRS to adopt rules to determine whether a school district's group health coverage is comparable to the basic health coverage offered under the Texas Employees Group Benefits Act.

Cross-reference to Statute: The readoption of Chapter 41 affects the following laws - §1575.107, Insurance Code, relating to TRS rules on competitive bidding requirements under the TRS-Care program; §1575.052, Insurance Code, relating to TRS rules on open enrollment periods under the TRS-Care program; §1575.255, Insurance Code, relating to TRS rules on federal or private source contributions to an active employee's salary; §1576.001, Insurance Code, which contains various definitions; §1576.008, Insurance Code, which addresses competitive bidding requirements under the group long-term insurance program; §1579.002, Insurance Code, which contains general definitions; §1579.003, Insurance Code, which contains the definition of an "employee"; §1579.004, Insurance Code, which contains the definition of a "dependent"; §1579.055, Insurance Code, which provides that the trustee is not required to select the lowest bid and may also consider any relevant criteria; §1579.101, Insurance Code, which authorizes plans of group coverages; §1579.104, Insurance Code, which addresses optional coverages that can be offered under TRS-ActiveCare; §1579.151, Insurance Code, relating to rules describing elections available to school districts with 500 or fewer employees and elections available to various other entities eligible to participate in TRS-ActiveCare; §1579.152, Insurance Code, which addresses participation in TRS-ActiveCare by school districts with more than 500 employees; §1579.1525, Insurance Code, which addresses participation in TRS-ActiveCare before September 1, 2005, by school districts with more than 500 employees; §1579.153, Insurance Code, which addresses participation in TRS-ActiveCare by certain risk pools; §1579.154, Insurance Code, which addresses participation in TRS-ActiveCare by eligible charter schools; §1579.201, Insurance Code, which provides that the terms "full-time employee" and "part-time employee" shall have the meanings assigned by rules adopted by the trustee; §1579.202, Insurance Code, which describes "eligible employees" for TRS-ActiveCare; §1579.203, Insurance Code, which addresses the ability of an eligible employee to select different coverage plans; and §1579.255, Insurance Code, which addresses payments to TRS-ActiveCare by participating entities.

This concludes the review of Chapter 41 (Health Care and Insurance Programs).

TRD-200700607

Ronnie G. Jung

Executive Director

Teacher Retirement System of Texas

Filed: February 16, 2007


The Board of Trustees (Board) of the Teacher Retirement System of Texas (TRS or system) adopts the review of Chapter 43 (Contested Cases) in accordance with §2001.039 of the Texas Government Code and the related rules of the Secretary of State. The initial Notice of Intention to Review (Proposed Review of) Chapter 43 was published in the March 31, 2006, issue of the Texas Register (31 TexReg 2884) and an Expanded Notice of Proposed Review was published in the November 10, 2006, issue of the Texas Register (31 TexReg 9368). In addition, a Rule Review Plan for Chapter 43 was posted on the Secretary of State's Web site in October 2005.

TRS received no comments regarding the readoption of Chapter 43.

TRS has assessed whether the reasons for adopting or readopting the rules in Chapter 43 continue to exist. In conjunction with the review of Chapter 43, TRS readopts the following rules without amendments: §43.2 (Effect of Invalidity of Rule), §43.4 (Decisions Subject to Review by an Adjudicative Hearing), §43.5 (Request for Adjudicative Hearing), §43.7 (Computation of Time), §43.11 (Classification of Pleadings), §43.13 (Filing of Pleadings and Amendments), §43.14 (Briefs), §43.17 (Agreements To Be in Writing), §43.19 (Additional Parties), §43.21 (Lead Counsel), §43.24 (Prehearing Conference and Orders), §43.25 (Conduct of Hearing), §43.26 (General Admissibility), §43.27 (Exhibits), §43.29 (Limit on Number of Witnesses), §43.33 (Failure to Appear), §43.35 (Official Notice), §43.36 (Ex Parte Consultations), §43.40 (The Record), §43.41 (Findings of Fact), §43.43 (Subpoenas and Commissions), §43.46 (Rehearings), and §43.47 (Procedures Not Otherwise Provided).

Also as part of the rule review of Chapter 43, TRS readopts the following sections with amendments, as published elsewhere in this issue of the Texas Register : §43.1 (Administrative Review of Individual Requests), §43.3 (Definitions), §43.6 (Filing of Documents), §43.8 (Extensions), §43.9 (Docketing of Adjudicative Hearing, Dismissal, and SOAH Authority), §43.10 (Authority to Grant Relief), §43.12 (Form of Petitions and Other Pleadings), §43.15 (Motions), §43.16 (Notice of Hearing and Other Action), §43.18 (Motion for Consolidation), §43.20 (Appearance and Representation), §43.23 (Powers of the Administrative Law Judge), §43.28 (Pre-filed Direct Testimony in Disability Appeal Proceedings), §43.34 (Conduct and Decorum at Hearing), §43.37 (Recording of the Hearing; Certified Language Interpreter), §43.38 (Dismissal without Hearing), §43.39 (Summary Disposition), §43.42 (Reopening of Hearing), §43.44 (Discovery), and §43.45 (Proposals for Decision, Exceptions, and Appeals to the Board of Trustees).

TRS finds that, with those changes, the rules in Chapter 43 reflect current law, policy, and procedure and are needed, and the reasons for initially adopting the rules continue to exist. TRS, therefore, readopts Chapter 43 and the rules contained in it, as described in this notice.

Further, as a result of the review of Chapter 43, TRS adopts new §43.48 (Cost of Preparing Administrative Record), as published elsewhere in this issue of the Texas Register . TRS notes that the section title of new §43.48, "Cost of Preparing Administrative Record," was correctly stated in the proposed rule preamble published in the November 10, 2006, issue of the Texas Register (31 TexReg 9263) and was incorrectly stated in the expanded notice of proposed review published in that same issue (31 TexReg 9372).

Statutory Authority: Chapter 43 is readopted under the following statutes - §825.102, Government Code, which authorizes the Board to adopt rules for the administration of the funds of the retirement system and for the transaction of the business of the Board; §825.115, Government Code, which authorizes the Board to adopt rules for the implementation of §825.115(b), Government Code, relating to a final decision in a contested case; and §2001.177, Government Code, which authorizes a state agency by rule to require an appealing party to pay the cost of preparation of the record of the agency proceeding that is required to be sent to the reviewing court.

Cross-reference to Statute: The readoption of Chapter 43 affects the following statutes - §825.115, Government Code, which addresses the applicability of Chapter 2001, Government Code, including the making of final decision in a proceeding considered to be a contested case under Chapter 2001; Chapter 551, Government Code, regarding open meetings; and Chapter 2003, Government Code, regarding the State Office of Administrative Hearings.

This concludes the review of Chapter 43 (Contested Cases).

TRD-200700608

Ronnie G. Jung

Executive Director

Teacher Retirement System of Texas

Filed: February 16, 2007


The Board of Trustees (Board) of the Teacher Retirement System of Texas (TRS or system) adopts the review of Chapter 47 (Qualified Domestic Relations Orders) (QDROs) in accordance with §2001.039 of the Texas Government Code and the related rules of the Secretary of State. The initial Notice of Intention to Review (Proposed Review of) Chapter 47 was published in the March 31, 2006, issue of the Texas Register (31 TexReg 2884) and an Expanded Notice of Proposed Review was published in the November 10, 2006, issue of the Texas Register (31 TexReg 9368). In addition, a Rule Review Plan for Chapter 47 was posted on the Secretary of State's Web site in October 2005.

TRS received no comments regarding the readoption of Chapter 47.

TRS has assessed whether the reasons for adopting or readopting the rules in Chapter 47 continue to exist. In conjunction with the review of Chapter 47, TRS readopts the following rules without amendments: §47.1 (Payments by TRS), §47.2 (Submission of Orders), §47.3 (Review of Orders), §47.4 (Payment Pursuant to Qualified Orders), §47.5 (Orders Not Qualified), §47.6 (Determination That An Order Is Not Qualified Is Final), §47.7 (Submission of Amended Order), §47.8 (Orders Affecting Optional Retirement Program), §47.9 (Orders Affecting Benefits from More Than One Public Retirement System), §47.13 (Benefits Resulting from Resumption of Membership and Reinstatement of Service Credit), §47.14 (Reinstatement of Service Credit), §47.15 (Death of an Alternate Payee), and §47.16 (Effective Date of TRS Review of Orders).

Also as part of the rule review of Chapter 47, TRS readopts the following sections with amendments, as published elsewhere in this issue of the Texas Register : §47.10 (Determination of Whether an Order Is a Qualified Domestic Relations Order) and §47.17 (Calculation for Alternate Payee Benefits Before a Member's Benefit Begins).

TRS finds that, with those changes, the rules in Chapter 47 reflect current law, policy, and procedure and are needed, and the reasons for initially adopting the rules continue to exist. TRS, therefore, readopts Chapter 47 and the rules contained in it, as described in this notice.

Statutory Authority: Chapter 47 is readopted under the following statutes - §804.003, Government Code, which authorizes TRS to adopt rules relating to QDROs; §804.005(g), Government Code, which authorizes TRS to adopt rules for the administration of §804.005; §824.1012(c), Government Code, which authorizes TRS to establish by rule procedures and documentation necessary for the administration of the section, relating to revocation of beneficiary designation for certain retirement benefit options; and §825.102, Government Code, which authorizes the Board to adopt rules for the administration of the funds of the retirement system and for the transaction of the business of the Board. The chapter is also readopted in conjunction with 26 United States Code §414(p) relating to QDROs and qualified plans.

Cross-reference to Statute: The readoption of Chapter 47 affects the following statutes - Chapter 804, Government Code, which relates to domestic relations orders and spousal consent; §821.005, Government Code, which relates to exemption from execution; §824.1012, Government Code, which, in connection with a divorce proceeding, provides for a court-approved revocation of beneficiary designation for certain retirement benefit options; §824.1013, Government Code, which provides for the court-ordered change of beneficiary after retirement; §824.402, Government Code, which relates to the payment of benefits on the death of an active member; §824.404, Government Code, which relates to the election of payment type for survivor benefits; §824.803, Government Code, which addresses the computation of a participant's service and annuity under the deferred retirement option plan (DROP); §824.804, Government Code, which relates to benefits under DROP; §7.003, Family Code, which addresses disposition of retirement and employment benefits and other plans; Chapter 9, Subchapter B, Family Code, which addresses a post-decree qualified domestic relations order; and §9.302(e), Family Code, which addresses a pre-decree designation of ex-spouse as beneficiary of retirement benefits of a public retirement system.

This concludes the review of Chapter 47 (Qualified Domestic Relations Orders).

TRD-200700609

Ronnie G. Jung

Executive Director

Teacher Retirement System of Texas

Filed: February 16, 2007


The Board of Trustees (Board) of the Teacher Retirement System of Texas (TRS or system) adopts the review of Chapter 49 (Collection of Delinquent Obligations) in accordance with §2001.039 of the Texas Government Code and the related rules of the Secretary of State. The initial Notice of Intention to Review (Proposed Review of) Chapter 49 was published in the March 31, 2006, issue of the Texas Register (31 TexReg 2884) and an Expanded Notice of Proposed Review was published in the November 10, 2006, issue of the Texas Register (31 TexReg 9368). In addition, a Rule Review Plan for Chapter 49 was posted on the Secretary of State's Web site in October 2005.

TRS received no comments regarding the readoption of Chapter 49.

TRS has assessed whether the reasons for adopting or readopting the rules in Chapter 49 continue to exist. In conjunction with the review of Chapter 49, TRS readopts the following rules without amendments: §49.1 (Collection Procedures), §49.2 (Demand Letters), §49.3 (Referrals of Delinquent Obligations to Attorney General for Collection), §49.4 (Extension of Deadlines), §49.5 (Records), §49.6 (Supplemental and Alternative Collection Procedures), and §49.7 (Exceptions).

TRS finds that the rules in Chapter 49 reflect current law, policy, and procedure and are needed, and the reasons for initially adopting the rules continue to exist. TRS, therefore, readopts Chapter 49 and the rules contained in it without amendments, as described in this notice.

Statutory Authority: Chapter 49 is readopted under the following statutes - §825.102, Government Code, which authorizes the Board to adopt rules for the administration of the funds of the retirement system and for the transaction of the business of the Board. In addition, §2107.002, Government Code, generally provides for the system to adopt rules for the collection of delinquent obligations.

Cross-reference to Statute: The readoption of Chapter 49 affects the following statutes in the Government Code - §403.055, which relates to payments to debtors or delinquents; §403.0551, which relates to deductions for repayment of certain debts or tax delinquencies; and §825.101, which provides that the board is responsible for general administration of the retirement system and has exclusive control over the assets of the system.

This concludes the review of Chapter 49 (Collection of Delinquent Obligations).

TRD-200700610

Ronnie G. Jung

Executive Director

Teacher Retirement System of Texas

Filed: February 16, 2007


The Board of Trustees (Board) of the Teacher Retirement System of Texas (TRS or system) adopts the review of Chapter 51 (General Administration) in accordance with §2001.039 of the Texas Government Code and the related rules of the Secretary of State. The initial Notice of Intention to Review (Proposed Review of) Chapter 51 was published in the March 31, 2006, issue of the Texas Register (31 TexReg 2884) and an Expanded Notice of Proposed Review was published in the November 10, 2006, issue of the Texas Register (31 TexReg 9368). In addition, a Rule Review Plan for Chapter 51 was posted on the Secretary of State's Web site in October 2005.

TRS received no comments regarding the readoption of Chapter 51.

TRS has assessed whether the reasons for adopting or readopting the rules in Chapter 51 continue to exist. In conjunction with the review of Chapter 51, TRS readopts the following rules without amendments: §51.2 (Vendor Protests, Dispute Resolution, and Hearing), §51.5 (Waiver of Deadline to Remit Deposits and Documentation), §51.7 (Assignment of TRS Vehicles), §51.11 (Historically Underutilized Businesses), and §51.12 (Applicability of Certain Laws in Effect Before September 1, 2005).

As part of the rule review, TRS readopts §51.1 (Advisory and Auxiliary Committees) with amendments, as published elsewhere in this issue of the Texas Register . TRS finds that, with those changes, the rules in Chapter 51 reflect current law, policy, and procedure and are needed, and the reasons for initially adopting the rules continue to exist. TRS, therefore, readopts Chapter 51 and the rules contained in it, as described in this notice.

Statutory Authority: Chapter 51 is readopted under the following statutes - §825.102, Government Code, which authorizes the Board to adopt rules for the administration of the funds of the retirement system and for the transaction of the business of the Board; and §825.114, Government Code, which requires TRS by rule to determine the amount and manner of any compensation or expense reimbursement to be paid members of an advisory committee performing service for the retirement system on an advisory committee.

Cross-reference to Statute: The readoption of Chapter 51 affects the following statutes - §824.202, Government Code, which provides for eligibility for service retirement; §824.203, Government Code, which provides for standard service retirement benefits; §824.2045, Government Code, which provides for the partial lump sum options; §825.103, Government Code, which provides for the administration of system assets and the system's exclusive authority over the purchase of goods and services using money other than money appropriated from the general revenue fund; §825.204, Government Code, which requires the TRS Board to appoint a medical board; §825.114, which authorizes the Board to establish advisory committees as it considers necessary; §825.514, Government Code, which relates to historically underutilized businesses; §2161.003, Government Code, which relates to the adoption of rules for the use historically underutilized businesses by a state agency; §2155.076, Government Code, which provides for the adoption by a state agency of rules relating to protest procedures for resolving vendor protests relating to purchasing issues; Chapter 1575, Subchapter H (§§1575.351 - 1575.363), Insurance Code, which addresses advisory committees and provides for the appointment of credentialing committees by TRS as trustee of the retirees health benefits program (TRS-Care) and as part of a coordinated care network, which TRS no longer administers; and Chapter 1575, Subchapter I (§§1575.401 - 1575.408), Insurance Code, which provides for the appointment and expense reimbursement of the Retirees Advisory Committee.

This concludes the review of Chapter 51 (General Administration).

TRD-200700611

Ronnie G. Jung

Executive Director

Teacher Retirement System of Texas

Filed: February 16, 2007