Adopted Rules Title 40

TITLE 40. SOCIAL SERVICES AND ASSISTANCE

The Texas Pension Review Board (Board) adopts a new rule in Texas Administrative Code, Title 40, Part 17, Chapter 601, §601.70, related to employee leave pools. The new rule is adopted without changes to the proposed text published in the March 22, 2024, issue of the Texas Register (49 TexReg 1883). The rule will not be republished.

EXPLANATION OF AND JUSTIFICATION FOR THE RULES

The new rule implements the statutory requirements for state agencies to adopt rules for the operation of two employee leave pools.

The sick leave pool is intended to assist employees and their immediate families in dealing with catastrophic illnesses or injuries that force the employees to exhaust all of their available sick leave. Section 661.002(c), Texas Government Code requires state agencies to adopt rules for the operation of the sick leave pool.

The legislature passed H.B. 2063 in 2021, creating the family leave pool. The family leave pool is intended to provide eligible state employees more flexibility in bonding with and caring for children during a child's first year following birth, adoption, or foster placement and for caring for a seriously ill family member or the employee. Section 661.022(c), Texas Government Code requires the governing body of a state agency to adopt rules and prescribe procedures relating to the operation of the pool.

SECTION-BY-SECTION SUMMARY

The adopted rule adds §601.70, State Employee Sick and Family Leave Pools.

Subsection (a) specifies the purpose of the sick leave pool.

Subsection (b) specifies the purpose of the family leave pool.

Subsection (c) specifies that the executive director or designee administers both leave pools.

Subsection (d) specifies that the executive director or designee will establish operating procedures and forms for the administration of both leave pools.

Subsection (e) specifies that both pools must be operated consistently with Chapter 661, Texas Government Code, which includes the statutory requirements for the state employee leave pools.

PUBLIC COMMENTS

The agency did not receive any comments on the proposed rules during the public comment period.

BOARD ACTION

The Texas Pension Review Board (Board) met on March 6, 2024, to discuss the proposed rule. The Board recommended the proposed rule be published in the Texas Register. At its meeting on July 25, 2024, the Board adopted the proposed rule as published in the Texas Register.

STATUTORY AUTHORITY

The new rule is adopted under Government Code §661.022(c), which requires state agencies to adopt rules relating to the operation of the agency family leave pool, and Government Code, §661.002(c), which requires state agencies to adopt rules relating to the operation of the agency sick leave pool.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on July 26, 2024.

TRD-202403405

Tamara Aronstein

General Counsel

State Pension Review Board

Effective date: August 15, 2024

Proposal publication date: March 22, 2024

For further information, please call: (512) 463-1736

CHAPTER 605. STANDARDIZED FORM

40 TAC §605.1, §605.3

The Texas Pension Review Board (Board) adopts amendments to 40 TAC §605.1, Adoption of Standard Forms, and §605.3, Submission of Forms. The amendments to 40 TAC §605.1, Adoption of Standard Forms, are adopted with changes to the proposed text published in the March 22, 2024, issue of the Texas Register (49 TexReg 1885). This rule will be republished.

The Board adopts the amendments to §605.3, Submission of Forms, without changes to the proposed text published in the March 22, 2024, issue of the Texas Register (49 TexReg 1885), and this rule will not be republished.

EXPLANATION OF AND JUSTIFICATION FOR THE RULES

Section 801.201(c), Texas Government Code requires the Board to adopt a standard form to assist the Board in determining the actuarial soundness and financial condition of each public retirement system. The Board initially adopted the standard forms through rulemaking in 2003, with subsequent amendments.

The purpose of the amendments is to make minor technical corrections to the agency's rules, identified as part of the agency's four-year review of rules pursuant to Texas Government Code §2001.039.

The changes to the proposed amendments make technical edits for clarity and consistency.

SECTION-BY-SECTION SUMMARY

The amendments to 40 TAC §605.1 reference the section of state law that requires the Board to adopt these rules. The amendments also split one form currently required into two separate forms, creating an additional form for reporting benefit information. This change better reflects the way in which public retirement systems typically report information to the Board. The amendments also update the Board's website address and make a technical change to reflect the Board's style guidelines.

The proposed amendments to 40 TAC §605.3 reflect the change to create a new, separate form, the benefits report, and correct a typographical error.

PUBLIC COMMENTS

The agency did not receive any comments on the proposed amendments during the public comment period.

BOARD ACTION

The Board met on March 6, 2024, to discuss the proposed amendments. The Board recommended the proposed amendments be published in the Texas Register. At its meeting on July 25, 2024, the Board adopted the proposed amendments as published in the Texas Register.

STATUTORY AUTHORITY

The amendments are adopted under Government Code Section 801.201(c), which requires the Board to adopt by rule standard forms to assist the board in efficiently determining the actuarial soundness and current financial condition of public retirement systems.

§605.1.Adoption of Standard Forms.

(a) The Board hereby adopts by reference the standard forms identified under subsection (b) of this section to assist in efficiently determining the actuarial soundness and current financial condition of public retirement systems and to assist in the conduct of the Board's business, pursuant to Section 801.201(c), Texas Government Code.

(b) The standard forms hereby adopted by the Board are the following:

(1) Pension System Registration--Form Series PRB-100;

(2) Membership Report--Form Series PRB-200;

(3) Financial Statement Report--Form Series PRB-300;

(4) Actuarial Report--Form Series PRB-400;

(5) Benefits Report--Form Series PRB-500;

(6) Investment Returns and Assumptions Report--Form Series PRB-1000.

(c) A public retirement system can obtain the most current version of these forms from the offices of the State Pension Review Board and from its website at http://www.prb.texas.gov.