Part 1. COMPTROLLER OF PUBLIC ACCOUNTS
Subchapter GG. INSURANCE TAX
The Comptroller of Public Accounts proposes an amendment to §3.834, concerning volunteer fire department assistance fund assessment pursuant to the Insurance Code, Chapter 2007. Subsection (a) is being amended to clarify the calculation of the assessment, clarify the final assessment date, and delete the definition of assessment date. Subsection (b) now sets out the formula for the calculation of the assessment. Subsection (e) is amended to stipulate that insurers may recoup the assessment from policy holders. Subsections (d), (f), and (g) are amended to correct statue citations due to the recodification of the Insurance Code. The remaining subsections are being relettered accordingly.
John Heleman, Chief Revenue Estimator, has determined that for the first five-year period the rule will be in effect, there will be no significant revenue impact on the state or units of local government.
Mr. Heleman also has determined that for each year of the first five years the rule is in effect, the proposed amendment would benefit the public by implementing and clarifying current practice and existing law into these rules. This rule is proposed under 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 rule.
Comments on the proposal may be submitted to Bryant Lomax, Manager, Tax Policy Division, P.O. Box 13528, Austin, Texas 78711.
The amendment is proposed under Tax Code, §111.002 and §111.0022, which provide 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, and taxes, fees, or other charges which the comptroller administers under other law.
The amendment implements Texas Insurance Code, Chapter 2007.
§3.834.Volunteer Fire Department Assistance Fund Assessment.
(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.
[
(1)
Assessment date--The
date on which the Texas Department of Insurance (TDI) provides the
comptroller with the database of authorized insurers.]
(1)
[
(2)
] Insurer--An insurance
entity that is authorized to engage in business in this state, including
a stock company, mutual, farm mutual, county mutual, Lloyd's plan,
or reciprocal or interinsurance exchange, as of the assessment date.
(2)
[
(3)
] Net direct premium--The
gross direct premium written by an insurer, as reported to TDI on
the insurer's Annual Statement State Page for:
(A) policies of:
(i) homeowner's insurance;
(ii) fire insurance;
(iii) farm and ranch owner's insurance;
(iv) private passenger automobile physical damage insurance; and
(v) commercial automobile physical damage insurance; and
(B) the nonliability portion of a commercial multiple peril policy.
(3)
[
(4)
] Twelve-month period--The
time period from January 1 through December 31, which is the same
as the tax year and annual statement period.
(b) Calculation of the assessment. The comptroller will use the following formula , based on premium data provided by the Texas Department of Insurance compiled from the NAIC Annual Statements filed by insurers, to calculate the amount of each insurer's assessment:
(c) Billing date and due date.
(1) The comptroller will bill the assessment on or before May 31.
(2) Payment of the assessment is due by August 1.
(d) Enforcement provisions. Tax Code, Title 2, Subtitles
A and B, apply to the comptroller's administration, collection, and
enforcement of the assessment under Insurance Code,
Chapter 2007
[
Article 5.102
].
[
(e)
Disallowance of assessment
as a credit. Insurance Code, Article 5.102, does not provide for use
of the assessment as a credit against premium or maintenance tax.]
(e)
[
(f)
]
Retaliatory taxes
[
Disallowance of assessment for retaliatory purposes
]. The assessment may not be included on the retaliatory tax worksheet
since insurers may recoup the assessment from policy holders
.
(f)
[
(g)
] Recoupment of assessment.
An insurer may recover an assessment under this section as provided
under [
the
] Insurance Code,
Chapter 2007
[
Chapter
5, Article 5.102
].
(g)
[
(h)
] Assessment
final
[
Final
]. The amount that is assessed an insurer under Insurance Code,
Chapter 2007
[
Article 5.102
], is final as of the [
assessment
] date
the billings are generated by the comptroller
. The comptroller will not recalculate the
amount due under this section to reflect any changes in an insurer's
Texas net direct premium. The assessment under Insurance Code,
Chapter 2007
[
Article 5.102
], is not a deficiency determination under Tax Code, §111.008.
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 January 8, 2008.
TRD-200800093
Martin Cherry
General Counsel
Comptroller of Public Accounts
Earliest possible date of adoption: February 24, 2008
For further information, please call: (512) 475-0387
Chapter 329. ELIGIBILITY CRITERIA FOR STATEWIDE FEDERATIONS/FUNDS AND AFFILIATED ORGANIZATIONS
The State Policy Committee (SPC) of the Texas State Employee Charitable Campaign (SECC) proposes amendments to §329.1, concerning audit and review requirements and §329.5, concerning re-certification requirements.
The proposed amendment to §329.1(b) provides that, if a reconciliation letter is submitted with the application for participation in the campaign, it shall be signed by the certified public accountant who completed the audit or accountant's review that is also submitted with the application. This provision is added to ensure that the reconciliation of discrepancies between the audit or accountant's review and the Form 990 be performed and presented by an independent reviewer, by the reviewer familiar with the audit or review, and in accordance with appropriate accounting standards.
The proposed amendment to §329.5 more accurately specifies the information from the Form 990 that must be submitted when an organization is applying to participate using the re-certification procedure, wherein less material is generally required than that which is required when an organization first applies to participate. Because the first part of the Form 990, which ends with the signature page, may be more than six pages long, the language is being changed to clarify that the SPC requires organizations to submit all pages of the Form 990 that precede and include the signature page.
Kevin Van Oort, Certifying Officer for the SPC, has determined that, for the first five-year period the proposed amendments are in effect, there are no foreseeable fiscal implications for state or local governments as a result of enforcing or administering the amended sections.
Mr. Van Oort also has determined that, for each year of the first five years the proposed amendments are in effect, the public benefit anticipated as a result of enforcing the amended sections will be increased reliability on materials SPC receives, clarification of existing rule, and codification of current practice. There will be no effect on small or micro businesses. There are no anticipated economic costs to persons who are required to comply with the amended sections as proposed.
Comments on the proposal may be submitted to Kevin Van Oort, c/o SECC State Campaign Manager, United Way of Texas, 1122 Colorado, Suite 101, Austin, Texas 78701.
The amendments are proposed under the authority of Texas Government Code, §659.139, which provides that the state employee charitable campaign must be managed fairly and equitably in accordance with the SECC law and the policies and procedures established by the state policy committee. The SPC interprets this statute to authorize the adoption of rules to the extent that the policies and procedures adopted are of general applicability and affect the rights of third parties, namely charitable organizations, local campaign managers, local employee committees, the state advisory committee, the state campaign manager, and state employees.
The proposed amendments also implement Government Code, §659.140(e)(3), wherein the SPC is directed to determine the eligibility of a federation or fund and its affiliated agencies to participate in the SECC. Basic eligibility requirements are addressed by statute in §659.146, concerning eligibility of charitable organizations in general and eligibility of federations and funds for statewide participation. These amendments incorporate those basic requirements and provide a process to facilitate review of an organization based on those provisions.
§329.1.Audit and Review Requirements.
(a) To be eligible to participate in the state employee charitable campaign, if the charitable organization's budget:
(1) is not more than $100,000, the organization shall provide a completed Internal Revenue Service (IRS) Form 990 and an accountant's review that offers full and open disclosure of the organization's internal operations; or
(2) is greater than $100,000, the organization shall be audited annually in accordance with generally accepted auditing standards of the American Institute of Certified Public Accountants. A copy of the report of such audit shall be provided with the application along with a completed Internal Revenue Service (IRS) Form 990.
(b) When a charitable organization submits an audit or accountant's review, a copy of the organization's most recent annual audit or accountant's review must be included with the application. The audit or accountant's review must cover the fiscal year ending not more than 18 months prior to the January of the campaign year in which the organization is applying for participation. The IRS Form 990 and audit or accountant's review must cover the same fiscal period. If the revenue and expenses on these two documents differ, the reconciliation must be included in the IRS Form 990 itself or be included in a letter of reconciliation signed and submitted by the certified public accountant who completed the audit or accountant's review.
§329.5.Re-certification Requirements.
(a) To be eligible to participate in the State Employee Charitable Campaign and apply via the re-certification process:
(1) the statewide federation/fund and affiliates must have not spent more than 25% of their annual revenue for administrative and fund raising expenses in the prior year's campaign; and
(2) statewide federation/fund and affiliates must have participated in the prior year's State Employee Charitable Campaign.
(b) To participate in the State Employee Charitable Campaign via the re-certification process the statewide federation/fund must submit the following:
(1) letter from the State Policy Committee stating eligibility to apply to the State Employee Charitable Campaign via the re-certification process;
(2) organization information page including 3-year history of administrative expense percentages;
(3) all documentation in compliance with §329.1 of this title (relating to Audit and Review Requirements); and
(4) current operating budget.
(c) To participate in the State Employee Charitable Campaign via the re-certification process , the affiliate charitable organization must submit the following:
(1) letter from the State Policy Committee stating eligibility to apply to the State Employee Charitable Campaign via the re-certification process;
(2) affiliate information page including 3-year history of administrative expense percentages; and
(3) Internal Revenue Service (IRS) Form 990, specifically,
all pages
[
the first six pages
] of the Form 990
preceding
[
, up to
] and including the signature page, which
shall contain the signature and attestation of the individual preparing
the form. The form must be less than 18 months old.
(d) To participate in the State Employee Charitable Campaign via the re-certification process the affiliate charitable organization must submit a complete application to the statewide federation/fund.
(e) A complete application with all documentation shall be maintained by the statewide federation/fund for 3 years from the date of application. The SPC may conduct a random audit of any and all documentation prior to approval of the federation/fund or affiliate for any year's State Employee Charitable campaign.
(f) Every third year, the statewide federation/fund must submit a complete application for the federation/fund and affiliates.
(g) Each re-certification application is subject to review by the current State Policy Committee, is subject to the current rules, and can be denied for any of the reasons that a full application can be denied.
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 January 10, 2008.
TRD-200800121
Kevin Van Oort
Certifying Officer, State Policy Committee
State Employee Charitable Campaign
Earliest possible date of adoption: February 24, 2008
For further information, please call: (512) 475-0387
The State Policy Committee (SPC) of the Texas State Employee Charitable Campaign (SECC) proposes amendments to §330.1, concerning audit and review requirements and §330.7, concerning re-certification requirements.
The proposed amendment to §330.1(b) provides that, if a reconciliation letter is submitted with the application for participation in the campaign, it shall be signed by the certified public accountant who completed the audit or accountant's review that is also submitted with the application. This provision is added to ensure that the reconciliation of discrepancies between the audit or accountant's review and the Form 990 be performed and presented by an independent reviewer and in accordance with appropriate accounting standards.
The proposed amendment to §330.7 more accurately specifies the information from the Form 990 that must be submitted when an organization is applying to participate using the re-certification procedure, wherein less material is generally required than that which is required when an organization first applies to participate. Because the first part of the Form 990, which ends with the signature page, may be more than six pages long, the language is being changed to clarify that the SPC requires organizations to submit all pages of the Form 990 that precede and include the signature page.
Kevin Van Oort, Certifying Officer for the SPC, has determined that, for the first five-year period the proposed amendments are in effect, there are no foreseeable fiscal implications for state or local governments as a result of enforcing or administering the amended sections.
Mr. Van Oort also has determined that, for each year of the first five years the proposed amendments are in effect, the public benefit anticipated as a result of enforcing the amended sections will be increased reliability on materials SPC receives, clarification of existing rule, and codification of current practice. There will be no effect on small or micro businesses. There are no anticipated economic costs to persons who are required to comply with the amended sections as proposed.
Comments on the proposal may be submitted to Kevin Van Oort, c/o SECC State Campaign Manager, United Way of Texas, 1122 Colorado, Suite 101, Austin, Texas 78701.
The amendments are proposed under the authority of Texas Government Code, §659.139, which provides that the state employee charitable campaign must be managed fairly and equitably in accordance with the SECC law and the policies and procedures established by the SPC. The SPC interprets this statute to authorize the adoption of rules to the extent that the policies and procedures adopted are of general applicability and affect the rights of third parties, namely charitable organizations, local campaign managers, local employee committees, the state advisory committee, the state campaign manager, and state employees.
The proposed amendments also implement Government Code, §659.143(e)(2), wherein the Local Employee Committee is directed to determine the eligibility of local charitable organizations to participate in the SECC. Basic eligibility requirements are addressed by statute in §659.146, concerning eligibility of charitable organizations in general. These amendments incorporate those basic requirements and provide a process to facilitate review of an organization based on those provisions.
§330.1.Audit and Review Requirements.
(a) To be eligible to participate in the state employee charitable campaign, if the charitable organization's budget:
(1) is not more than $100,000, the organization shall provide a completed Internal Revenue Service (IRS) Form 990 and an accountant's review that offers full and open disclosure of the organization's internal operations; or
(2) is greater than $100,000, the organization shall be audited annually in accordance with generally accepted auditing standards of the American Institute of Certified Public Accountants. A copy of the report of such audit shall be provided with the application along with a completed Internal Revenue Service (IRS) Form 990.
(b) When a charitable organization submits an audit or accountant's review, a copy of the organization's most recent annual audit or accountant's review must be included with the application. The audit or accountant's review must cover the fiscal year ending not more than 18 months prior to the January of the campaign year in which the organization is applying for participation. The IRS Form 990 and audit or accountant's review must cover the same fiscal period. If the revenue and expenses on these two documents differ, the reconciliation must be included in the IRS Form 990 itself or be included in a letter of reconciliation signed and submitted by the certified public accountant who completed the audit or accountant's review.
§330.7.Re-certification Requirements.
(a) To be eligible to participate in the State Employee Charitable Campaign and apply via the recertification process:
(1) the local federation/fund and affiliates must have participated in the previous year's campaign; and
(2) the local federation/fund and affiliates must have not spent more than 25% of its annual revenue for administrative and fund raising expenses in the prior year's campaign;
(b) To participate in the State Employee Charitable Campaign via the re-certification process the local federation/fund must submit the following:
(1) letter from the State Policy Committee stating eligibility to apply to the state employee charitable campaign via the re-certification process;
(2) organization information page including 3-year history of administrative expense percentages;
(3) all documentation in compliance with §330.1 of this title (relating to Audit and Review Requirements); and
(4) current operating budget.
(c) To participate in the State Employee Charitable Campaign via the re-certification process, the affiliate charitable organization must submit the following:
(1) letter from the State Policy Committee stating eligibility to apply to the state employee charitable campaign via the re-certification process;
(2) affiliate information page including 3-year history of administrative expense percentages; and
(3) Internal Revenue Service (IRS) Form 990, specifically,
all
[
the first six
] pages of the Form 990
preceding
[
, up to
] and including the signature pages, which
shall contain the signature and attestation of the individual preparing
the form. The form must be less than 18 months old.
(d) To participate in the State Employee Charitable Campaign via the re-certification process the affiliate charitable organization must submit a full application to the local federation/fund.
(e) A complete application with all documentation shall be maintained by the local federation/fund for 3 years after the date of application. The LEC or the SPC may conduct a random audit of any and all documentation prior to approval of the federation/fund or affiliate for any year's state employee charitable campaign.
(f) Every third-year, the local federation/fund will be required to submit a complete application for the federation/fund and affiliates.
(g) A local unaffiliated charitable organization is not eligible to apply to the State Employee Charitable Campaign via the re-certification process at any time. A full application with all required documentation must be submitted each year.
(h) Each re-certification application is subject to review by the current State Policy Committee or Local Employee Committee, is subject to the current rules, and can be denied for any of the reasons that a full application can be denied.
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 January 10, 2008.
TRD-200800122
Kevin Van Oort
Certifying Officer, State Policy Committee
State Employee Charitable Campaign
Earliest possible date of adoption: February 24, 2008
For further information, please call: (512) 475-0387
The State Policy Committee (SPC) of the Texas State Employee Charitable Campaign (SECC) proposes amendments to §331.5, concerning appeal process.
The amendment to §331.5 changes the deadline for organizations to submit appeals to the SPC from a date tied to the date of a future SPC meeting to a date specific to be determined by the State Campaign Manager (SCM) on an annual basis. The change allows for organizations to more easily determine the specific date for submitting appeals without having to first determine the date of the next scheduled SPC meeting, and it helps ensure that the SCM will not create a deadline that inadvertently conflicts with the rule. Historically, the SCM has informed applicants of the date by which appeals are due in the letter notifying of the rejection of the application. This has afforded applicants the greatest and most accurate notice concerning the date that appeals are due. This rule would not change that historical and current practice but is instead predicated on that practice, namely, that the SCM will notify the applicants of the date by which appeals must be submitted.
Kevin Van Oort, Certifying Officer for the SPC, has determined that for the first five-year period the sections are in effect there are not foreseeable fiscal implications for state or local governments as a result of enforcing or administering the sections.
Mr. Van Oort also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the sections will be codification of current practice, minimization of the possibility of confusion regarding the applicable due dates, and greater assurance that SCM practices do not inadvertently conflict with the rules of the SPC. There will be no effect on small or micro businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.
Comments on the proposal may be submitted to Kevin Van Oort, c/o SECC State Campaign Manager, United Way of Texas, 1122 Colorado, Suite 101, Austin, Texas 78701.
The amendments are proposed under the authority of Texas Government Code, §659.139, which provides that the state employee charitable campaign must be managed fairly and equitably in accordance with the SECC law and the policies and procedures established by the state policy committee. The SPC interprets this statute to authorize the adoption of rules to the extent that the policies and procedures adopted are of general applicability and affect the rights of third parties, namely charitable organizations, local campaign managers, local employee committees, the state advisory committee, the state campaign manager, and state employees.
The amendment also implements Government Code, §659.146(e), which authorizes the SPC to prescribe the manner by which appeals from SPC decisions on statewide applications shall be conducted.
§331.5.Appeal Process.
No statewide federation or affiliate whose application was
not complete will be considered for appeal by the State Employee Charitable
Campaign Policy Committee (SPC). All appeals must be in writing and
must be received in the state campaign manager's office
prior to the deadline set by the SCM
[
at least 10 business days
prior to the SPC meeting scheduled to consider appeals
]. Appeals shall include the complete application originally submitted to the
SPC and the letter of denial from the SPC. Faxed appeals will not
be accepted.
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 January 10, 2008.
TRD-200800123
Kevin Van Oort
Certifying Officer, State Policy Committee
State Employee Charitable Campaign
Earliest possible date of adoption: February 24, 2008
For further information, please call: (512) 475-0387
The State Policy Committee (SPC) of the Texas State Employee Charitable Campaign (SECC) proposes amendments to §332.1, concerning administrative review and §332.5, concerning appeal process.
The amendment to §332.1 instructs the LCM on the handling of applications that are not eligible for LEC review as a result of the application being incomplete or missing required documentation. Under the amended rule, the LCM would be required to submit a report to the LEC of the applications that will not be submitted for LEC review for the reasons stated above. This step is added so that the LEC is aware of applications that are being received by the SECC but that are not being reviewed. In the event an LEC member were to be contacted regarding one of these applications, the LEC member would have the benefit of first having been made aware of the situation by the LCM report.
The amendment to §332.5 changes the deadline for organizations to submit appeals to the SPC from a date tied to the date of a future SPC meeting to a date specific to be determined by the State Campaign Manager (SCM). The change allows for organizations to determine the specific date for submitting appeals more easily without having to first determine the date of the next scheduled SPC meeting, and it helps ensure that the SCM will not create a deadline that inadvertently conflicts with the rule. Historically, the LCM has informed applicants of the date by which appeals are due to the SPC in the letter rejecting the application. This has afforded applicants the greatest and most accurate notice concerning the date that appeals are due. This rule would not change that historical and current practice but is instead predicated on that practice, namely, that the SCM will notify the LCM and that the LCM will notify the applicants of the date by which appeals must be submitted.
Kevin Van Oort, Certifying Officer for the SPC, has determined that for the first five-year period the sections are in effect there are not foreseeable fiscal implications for state or local governments as a result of enforcing or administering the sections.
Mr. Van Oort also has determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of enforcing the sections will be codification of current practice, minimization of the possibility of confusion regarding the applicable due dates, and greater assurance that LCM and SCM practices do not inadvertently conflict with the rules of the SPC. There will be no effect on small or micro businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.
Comments on the proposal may be submitted to Kevin Van Oort, c/o SECC State Campaign Manager, United Way of Texas, 1122 Colorado, Suite 101, Austin, Texas 78701.
The amendments are proposed under the authority of Texas Government Code, §659.139, which provides that the state employee charitable campaign must be managed fairly and equitably in accordance with the SECC law and the policies and procedures established by the state policy committee. The SPC interprets this statute to authorize the adoption of rules to the extent that the policies and procedures adopted are of general applicability and affect the rights of third parties, namely charitable organizations, local campaign managers, local employee committees, the state advisory committee, the state campaign manager, and state employees.
The amendment to §332.1 implements Government Code, §659.144(c)(2), which directs the LCM to manage the local state employee charitable campaign in the campaign area.
The amendment to §332.5 implements Government Code, §659.147(d) which authorizes the SPC to prescribe the manner by which appeals from LEC decisions on local applications shall be conducted.
§332.1.Administrative Review.
The Local Employee Committee shall perform an administrative review of local applications and give local federations and organizations time to provide missing documentation prior to the Local Employee Committee eligibility review process. This is an administrative review only to determine the submission of all documentation. This review will make no determinations regarding eligibility. Local federations and organizations with missing documentation will be allowed time to provide needed documents. Only complete applications with all required documentation will be submitted to the Local Employee Committee for eligibility approval. Deadlines will be enforced. The LCM shall prepare a report of all applications that were not submitted to the LEC for approval because of incomplete application or missing documentation. The report shall be provided to the LEC prior to the meeting during which other applications will be considered for approval.
§332.5.Appeal Process.
All appeals from a Local Employee Committee regarding eligibility
shall be made to the State Employee Charitable Campaign Policy Committee
(SPC). No local federation, affiliate or local organization whose
application
[
applications
] was denied by the Local Employee
Committee for incomplete documentation will be considered for appeal
by the SPC. All appeals must be in writing and must be received in
the state campaign manager's office
prior to the deadline set by the SCM
[
at least 10 business days prior to the SPC
meeting scheduled to consider appeals
]. Appeals shall include
the complete application originally submitted to the Local Employee
Committee and the letter of denial from the Local Employee Committee.
Faxed appeals will not be accepted.
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 January 10, 2008.
TRD-200800124
Kevin Van Oort
Certifying Officer, State Policy Committee
State Employee Charitable Campaign
Earliest possible date of adoption: February 24, 2008
For further information, please call: (512) 475-0387