PART 1. COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 1. CENTRAL ADMINISTRATION
SUBCHAPTER A. PRACTICE AND PROCEDURES
DIVISION 1. PRACTICE AND PROCEDURES
The Comptroller of Public Accounts adopts amendments to §1.18, concerning filing of documents, §1.22, concerning oral and written submission hearings, and §1.33, concerning discovery, without changes to the proposed text as published in the June 5, 2009, issue of the Texas Register (34 TexReg 3506). The amendments are to change references to the State Office of Administrative Hearings Rules of Procedure that were renumbered in amendments effective November 26, 2008. Additionally, §1.22 is being amended to allow for more efficient resolution when a taxpayer abandons their case.
We received comments from Ryan & Co. in reference to §1.22. Ryan requested that a new form be added to allow taxpayers to indicate in writing their choice between an oral and a written submission hearing. Ryan also suggested that we detail the procedures involved in the rule provision that a case "may be dismissed" if taxpayers fail to respond. The comptroller has determined that it is not necessary to require an additional form or to detail the procedures to be employed as §1.28 of this title (relating to Comptroller's Decision) already provides for dismissal based on want of prosecution.
The amendments are adopted under Tax Code, §111.002, which provides the comptroller with authority to prescribe, adopt, and enforce rules relating to the administration and enforcement provisions of Tax Code, Title 2.
The amendments implement Tax Code, §§111.001, 111.009, and 111.105, which provide for the collection of taxes and redetermination and refund hearings.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on August 12, 2009.
TRD-200903531
Ashley Harden
Chief Deputy General Counsel
Comptroller of Public Accounts
Effective date: September 1, 2009
Proposal publication date: June 5, 2009
For further information, please call: (512) 475-0387
SUBCHAPTER I. REFUNDS, TERMINATION
The Comptroller of Public Accounts adopts an amendment to §7.81, concerning refunds, without changes to the proposed text as published in the July 3, 2009, issue of the Texas Register (34 TexReg 4488). This section establishes the criteria that determine how refunds will be calculated when a contract of the Prepaid Higher Education Tuition Program (Program) is cancelled or terminated. This Program is also known as the Texas Tomorrow Fund I and the Texas Guaranteed Tuition Plan and was the Board's first prepaid tuition plan established in 1995. It is governed by the Texas Prepaid Higher Education Tuition Board (Board).
Texas Education Code, §54.632(c) gives the Board the authority to determine how refunds will be calculated when a Program contract is cancelled. The Board has determined that the fund will benefit from a change to the current refund policy as proposed in this amendment. The current refund policy is varied based upon the circumstances underlying a cancellation, i.e., the timing of the cancellation, whether it is voluntary, and the age of the beneficiary, and it allows refunds to include earnings based on the weighted average tuition and required fee rate paid to public or private universities or colleges in effect on the effective date of the refund. The adopted amendment will change the current rule to limit refunds to the amount of money paid for those hours under the contract, less fees, and less any funds paid under the contract. It will also exempt those contracts cancelled due to the death of the purchaser or beneficiary or the graduation of the beneficiary from an eligible educational institution from being assessed a cancellation fee.
The Board believes it is in the best interest of the fund to revise this refund policy in order to extend the financial resources of this Program while providing for a reasonable methodology for refunds. The Program is financially infeasible as actuarial projections reflect a deficiency in future assets needed to pay future liabilities. Because this Program is a guaranteed tuition plan, once these funds are exhausted, the state must compensate out of general revenue for any shortfall under the existing contracts. Through a more financially sound refund policy based on the Board's actuarial analysis, the adopted rule may prolong the inevitable draw on the state's general revenue. The adopted amendment will not affect the disbursement to the schools.
No comments were received regarding adoption of the amendment.
This rule amendment is adopted under Texas Education Code, §54.618(b)(2) which authorizes the Board to adopt rules to implement the Program.
The amendment implements Texas Education Code, §54.632.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on August 12, 2009.
TRD-200903541
Ashley Harden
Chief Deputy General Counsel
Comptroller of Public Accounts
Effective date: November 1, 2009
Proposal publication date: July 3, 2009
For further information, please call: (512) 475-0387
The Comptroller of Public Accounts adopts new Chapter 8, concerning Jobs and Education for Texans (JET) Grant Program, published in the July 3, 2009, issue of the Texas Register (34 TexReg 4489). Section 8.1 and §8.51 are adopted with changes. All other proposed sections are adopted without changes and will not be republished. New Chapter 8 is necessary to implement House Bill 3 and House Bill 1935, 81st Legislature, 2009, and to better define the role of the comptroller's office and the JET advisory board in implementing these requirements. The new rules will reside under Texas Administrative Code, Title 34, Part 1, Chapter 8, new Subchapter A, §8.1, concerning Definitions; Subchapter B, §§8.11 - 8.14, concerning Advisory Board Composition, Meeting Guidelines; Subchapter C, §§8.21 - 8.25, concerning Grant Programs; Subchapter D, §8.31, concerning Grants to Nonprofit Organizations for Innovative and Successful Programs; Subchapter E, §8.41, concerning Grants to Educational Institutions for Career and Technical Education Programs; and Subchapter F, §8.51, concerning Grants for Scholarships. The Texas State Comptroller's report "Texas Works: Training and Education for All Texans (2008)" states that Texas faces growing shortages of the skilled workers that help attract and retain business. According to the U.S. Department of Education, 90% of the fastest-growing jobs in the new information and service economy will require some postsecondary education.
These bills establish the JET grant program to counter the shortages by providing grants to public junior colleges, public technical institutes, and eligible nonprofits that foster work force development in emerging industries and high-demand occupations. In addition, the Comptroller of Public Accounts is authorized to award scholarships to public junior college or public technical institute students who demonstrate a financial need and are training for a high-demand occupation.
The comptroller received comments from the Texas Workforce Commission (TWC), the Network of Texas IAF Organizations (Texas IAF) which represents COPS/Metro Alliance, Valley Interfaith, EPISO and Border Interfaith in El Paso and Austin Interfaith and their job training programs, Project QUEST, VIDA, ARRIBA and Capital IDEA, and from a staff person. Following is a summary of the comments received and the responses.
Texas IAF and a staff person commented regarding the "certificate or degree completion" definition in §8.1(4). Texas IAF recommended that the definition be amended to "a degree, industry-recognized certificate or other state-recognized award that increases the earning power of the holder," because the concern is to elevate the instrument of completion to that which a public junior college, community college or public technical institute would recognize and award and recognize the benefit in increased earning capacity. A staff member recommended that the definition be changed to "a grouping of workforce or technical courses in sequential order that, when satisfactorily completed by a student, will entitle the student to a Texas Higher Education Coordinating Board approved certificate or associate degree from a public technical institute or public junior college" so that the definition complies with the requirements of the Texas Prepaid Higher Education Tuition Board. The comptroller believes that the purpose of both comments would be addressed by adopting the latter definition, so it will be incorporated into the rules.
Texas IAF commented regarding the definition of "developmental education" in §8.1(6). It recommends defining developmental education (remediation) to ensure that developmental education includes only formalized, proven "tutorials" or "other efforts." It suggests that the definition read: "Developmental education means courses, tutorials, laboratories or other formalized, proven instructional efforts that successfully prepare students for college level (and therefore work-ready) courses as measured by passing the state required college entrance exam (or meeting the Texas Success Initiative requirements)." The comptroller agrees with this comment and will edit the definition to require that the training of underprepared college students be structured and have a proven history of success.
A staff person commented that the "financial need" definition in §8.1(9) needs to clarify that just one of the methods of determining "financial need" is to be utilized. The comptroller agrees with this comment and will add clarifying language to the definition.
Texas IAF commented regarding the "financial need" definition in §8.1(9)(A) as follows: "Financial need has always been discussed as including those up to 200% of the federal poverty level. The section on "financial need" should be changed to "annual household adjusted income at or below 200% of the federal poverty income guidelines." The comptroller agrees with this comment and will incorporate the change.
Texas IAF commented that the definition in §8.1(9)(B) should read "eligibility for Temporary Assistance to Needy Families" (TANF) instead of "Aid to Families with Dependent Children," (AFDC) because TANF replaced AFDC several years ago with the Welfare Reform Act of 1996. The comptroller agrees with this comment and will incorporate the recommendation.
Texas IAF commented that the "high-demand occupation" definition in §8.1(10)(C)(iii) should include a letter from employers as another source of evidence "that a particular job, profession, skill, or trade will provide potential economic benefits to the state or a local or regional area within the state." Though the comptroller agrees that a letter from employers is an important source of evidence regarding what constitutes an economically beneficial occupation, the rule as it is written would permit the utilization of employers' letters as a source. The comptroller, however, will include "a letter from employers" as an example under the definition and as a consideration in the evaluation process.
Texas IAF further commented regarding §8.1(10)(C)(iii) that this provision allows another source for determining a "high-demand occupation" to be that "which provides evidence that a particular job, profession, skill, or trade will provide potential economic benefits to the state or a local or regional area within the state." It added that based on this provision as well as discussions and representations, language should be added to the rules that requires job training under the grants to be for high-wage jobs. Texas IAF further stated that "an intent and purpose of the grant fund is to increase economic return to the state. Training for higher wage, including living wage jobs, should be a priority for this fund; some reference to higher wage jobs should be placed in the rules. It is contradictory to the intent of the grant program to invest state funding in training people for occupations in which even the prevailing wage is too low to provide self sufficiency." The comptroller agrees that training for "higher-wage jobs" is an important factor and that this factor will be a consideration in granting JET funds and weighted in favor of entities whose job training is for higher wage jobs. The bills creating this program do require that the starting wage for these job training programs be "equal to or greater than the prevailing wage for the occupation entered." The comptroller believes that the rule as written addresses this requirement and does not warrant a change.
Texas IAF's final comment was that §8.31(b)(4) should read "provide dollar for dollar matching funds in accordance with this Act and this chapter," because requiring a dollar-for-dollar match will increase the return on economic investment to the state. The comptroller agrees that the statute requires matching funds and that the existence of matching funds is an important factor. The percentage of matching funds, therefore, will be a consideration in granting JET funds and weighted in favor of entities that have a greater percentage of matching funds. The comptroller, however, does not feel that it is necessary to insert a dollar-for-dollar match requirement in the rules.
TWC comments that the proposed rules state that the comptroller may consider TWC's list of high-demand occupations and its labor market projects. The rules also state that the comptroller may consider TWC research, projects, and workforce data. TWC suggests that the comptroller use TWC's research and data to ensure the continuation of the state's well-coordinated and integrated workforce system. The comptroller has utilized much of TWC's data and intends to continue utilizing all the information available from TWC and taking advantage of TWC's research and analysis of the state's workforce. The comptroller, however, believes the rules as written accomplish this purpose and allow flexibility to utilize other resources if needed.
A grammatical correction was made to §8.51(b) by changing the word "college" to "colleges."
SUBCHAPTER A. DEFINITIONS
The new subchapter is authorized under Education Code, §134.008 and Government Code, §403.358, which provides the comptroller the authority to adopt rules as necessary for the administration of the JET program.
The new subchapter implements Education Code, §134.002 and Government Code, §403.352, which requires the comptroller to establish and administer the Jobs and Education for Texans fund as a dedicated account in the general revenue fund.
§8.1.Definitions.
The following words and terms, when used in this chapter shall have the following meanings, unless the context clearly indicates otherwise.
(1) "Act" means Education Code, Chapter 134, as adopted by House Bill 3, 81st Legislature, 2009, and Government Code, Chapter 403, Subchapter O, as adopted by House Bill 1935, 81st Legislature, 2009.
(2) "Advisory board" means the advisory board of education and workforce stakeholders created pursuant to the Act.
(3) "Career and technical education" means organized educational activities that offer a sequence of courses that:
(A) provides individuals with coherent and rigorous content aligned with challenging academic standards and relevant technical knowledge and skills needed to prepare for further education and careers in high-demand occupations or emerging industries;
(B) includes competency-based applied learning that contributes to the academic knowledge, problem-solving skills, work attitudes, general employability skills, technical skills, and occupation-specific skills, and knowledge of all aspects of an industry, including entrepreneurship, of an individual; or
(C) provides a license, a certificate, or a postsecondary degree.
(4) "Certificate or degree completion" means any grouping of workforce or technical courses in sequential order that, when satisfactorily completed by a student, will entitle the student to a Texas Higher Education Coordinating Board (THECB) approved certificate or associate degree from a public technical institute or public junior college.
(5) "Comptroller" means the Comptroller of Public Accounts.
(6) "Developmental education" means structured courses, tutorials, laboratories, or other proven instructional efforts that successfully prepare students for college level (and therefore work-ready) courses as measured by passing the state-required college entrance exam (or meeting the Texas Success Initiative requirements).
(7) "Emerging industry" means a growing, evolving or developing industry based on new technological products or concepts.
(8) "Enrolled" means registered for or in the process of registering for a post-secondary education or training program.
(9) "Financial need" may be determined by proof of one or more of the following:
(A) annual household adjusted income at or below 200% of the federal poverty income guidelines;
(B) eligibility for Temporary Assistance to Needy Families (TANF) or other public assistance programs (includes Women, Infants, and Children (WIC) program participants);
(C) eligibility for a Pell Grant or comparable state program of need-based financial assistance;
(D) eligibility for benefits under the Food Stamp Act of 1977 or the Health and Human Services (HHS) Poverty Guidelines; or
(E) eligibility as determined by the Free Application for Federal Student Aid (FAFSA).
(10) "High-demand occupation" means a job, profession, skill, or trade for which employers within the State of Texas generally, or within particular regions or cities of the state, have or will have a substantial need. In determining whether there is or will be a substantial need for a particular job, profession, trade, or skill, the comptroller may consider:
(A) the Texas Workforce Commission's list of high-demand occupations and/or its labor market projections;
(B) whether the occupation has been targeted for Workforce Investment Act (WIA) training as a result of employer or community input; or
(C) research, projections, or workforce data that are compiled by the comptroller or derived from one of the following sources:
(i) the Texas Workforce Commission;
(ii) the United States Department of Labor; or
(iii) another source, such as a letter from employers, which provides evidence that a particular job, profession, skill, or trade will provide potential economic benefits to the state or a local or regional area within the state.
(11) "In-kind contribution" means a cash value placed on a non-monetary contribution or investment.
(12) "JET" means the Jobs and Education for Texans Grant Program.
(13) "Low income student" means a student who demonstrates financial need as determined under this section.
(14) "Nonprofit organization" means an organization that is exempt from federal income taxation under Internal Revenue Code of 1986, §501(a), and that is described by §501(c)(3) of that code.
(15) "Notice of Availability" or "NOA" means the notice of availability that is published by the comptroller pursuant to §8.22 of this title (relating to Notice of Grant Availability and Application).
(16) "Persistence rates" means the rate at which students persist in career and technology education courses, often measured by the percentage of students who continue to be enrolled from one year to the succeeding year.
(17) "Prevailing wage" means a wage determination as used by the Texas Workforce Commission for the Skills Development Fund or similar TWC programs or as determined by the comptroller using relevant federal, state and local labor wage data.
(18) "Public junior college" means any junior college certified by the Texas Higher Education Coordinating Board (THECB) in accordance with Education Code, §61.003.
(19) "Public technical institute" means the Lamar Institute of Technology or the Texas State Technical College System in accordance with Education Code, §61.003.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on August 12, 2009.
TRD-200903535
Ashley Harden
Chief Deputy General Counsel
Comptroller of Public Accounts
Effective date: September 1, 2009
Proposal publication date: July 3, 2009
For further information, please call: (512) 475-0387
The new subchapter is authorized under Education Code, §134.008 and Government Code, §403.358, which provides the comptroller the authority to adopt rules as necessary for the administration of the JET program.
The new subchapter implements Education Code, §134.002 and Government Code, §403.352, which requires the comptroller to establish and administer the Jobs and Education for Texans fund as a dedicated account in the general revenue fund.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on August 12, 2009.
TRD-200903536
Ashley Harden
Chief Deputy General Counsel
Comptroller of Public Accounts
Effective date: September 1, 2009
Proposal publication date: July 3, 2009
For further information, please call: (512) 475-0387
The new subchapter is authorized under Education Code, §134.008 and Government Code, §403.358, which provides the comptroller the authority to adopt rules as necessary for the administration of the JET program.
The new subchapter implements Education Code, §134.002 and Government Code, §403.352, which requires the comptroller to establish and administer the Jobs and Education for Texans fund as a dedicated account in the general revenue fund.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on August 12, 2009.
TRD-200903537
Ashley Harden
Chief Deputy General Counsel
Comptroller of Public Accounts
Effective date: September 1, 2009
Proposal publication date: July 3, 2009
For further information, please call: (512) 475-0387
The new subchapter is authorized under Education Code, §134.008 and Government Code, §403.358, which provides the comptroller the authority to adopt rules as necessary for the administration of the JET program.
The new subchapter implements Education Code, §134.002 and Government Code, §403.352, which requires the comptroller to establish and administer the Jobs and Education for Texans fund as a dedicated account in the general revenue fund.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on August 12, 2009.
TRD-200903538
Ashley Harden
Chief Deputy General Counsel
Comptroller of Public Accounts
Effective date: September 1, 2009
Proposal publication date: July 3, 2009
For further information, please call: (512) 475-0387
The new subchapter is authorized under Education Code, §134.008 and Government Code, §403.358, which provides the comptroller the authority to adopt rules as necessary for the administration of the JET program.
The new subchapter implements Education Code, §134.002 and Government Code, §403.352, which requires the comptroller to establish and administer the Jobs and Education for Texans fund as a dedicated account in the general revenue fund.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on August 12, 2009.
TRD-200903539
Ashley Harden
Chief Deputy General Counsel
Comptroller of Public Accounts
Effective date: September 1, 2009
Proposal publication date: July 3, 2009
For further information, please call: (512) 475-0387
The new subchapter is authorized under Education Code, §134.008 and Government Code, §403.358, which provides the comptroller the authority to adopt rules as necessary for the administration of the JET program.
The new subchapter implements Education Code, §134.002 and Government Code, §403.352, which requires the comptroller to establish and administer the Jobs and Education for Texans fund as a dedicated account in the general revenue fund.
§8.51.Scholarship Grants.
(a) This subchapter is applicable to the Jobs and Education for Texans (JET) Grant Program awards that provides scholarships for students in career and technical education programs who meet the requirements of Education Code, §134.007 and Government Code, §403.357.
(b) The comptroller may award grants to public junior colleges and public technical institutes that meet the eligibility criteria as published in a Notice of Availability (NOA). A public junior college or public technical institute that receives a grant under this subchapter shall award scholarships to students who:
(1) demonstrate financial need;
(2) are permanent legal residents of the United States; and
(3) are enrolled or enrolling in a public junior college's or public technical institute's training program for a high-demand occupation as determined by the comptroller.
(c) The comptroller may authorize an eligible public junior college or public technical institute to make the final selection of the scholarship recipient.
(d) Students receiving a scholarship under this subchapter may only use the scholarship funds to pay for tuition and fees, including lab fees and exam or certification fees, for qualifying training programs for high-demand occupations as determined by the comptroller.
(e) The comptroller will publish a list of approved training programs for high-demand occupations on an annual basis or more frequently if necessary.
(f) The comptroller shall not award a scholarship under this subchapter to an individual who also receives assistance from a nonprofit organization that receives a grant under this chapter. A recipient violating this requirement may be prohibited from reapplying for a scholarship under this chapter in subsequent years.
(g) If the public junior college or public technical institute attended by the scholarship recipient determines that the recipient is not complying with the scholarship conditions under this chapter or any subsequent agreements entered into with the recipient, then the recipient's scholarship shall terminate. The public junior college or public technical institute must either refund the amount of the scholarship received, prorated according to the fraction of the semester or academic year not completed, to the comptroller or ensure that the amount is made available to another eligible student who is selected to receive a JET scholarship.
(h) Each public junior college or public technical institute that receives scholarship funding under this chapter must ensure that the scholarship recipient consents to the release of personal and educational information to the comptroller to enable the comptroller to study and compile a report on the effectiveness of the JET program.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on August 12, 2009.
TRD-200903540
Ashley Harden
Chief Deputy General Counsel
Comptroller of Public Accounts
Effective date: September 1, 2009
Proposal publication date: July 3, 2009
For further information, please call: (512) 475-0387