Proposed Rules Title 40

TITLE 40. SOCIAL SERVICES AND ASSISTANCE

The Texas Pension Review Board (Board) proposes a new rule in Texas Administrative Code, Title 40, Part 17, Chapter 601, §601.70, related to employee leave pools. The proposed new rule implements statutory requirements for state agencies to adopt rules relating to the operation of the state employee sick leave and family leave pools. The board identified the need for these rules as part of its recent quadrennial review of rules in accordance with Texas Government Code §2001.039.

BACKGROUND AND PURPOSE

Chapter 661, Texas Government Code creates two leave pools for state employees.

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.

SUMMARY

The proposed new rule specifies that the executive director or designee serves as the administrator of both leave pools and must establish operating procedures and forms for administration of the leave pools, which must be consistent with Chapter 661, Texas Government Code.

FISCAL NOTE

The Board's director of business operations, Westley Allen, has determined that for each year of the first five-year period the proposed new rule is in effect there will be no fiscal implications for state or local government.

ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS FOR SMALL BUSINESSES, MICROBUSINESSES, AND RURAL COMMUNITIES.

There will be no adverse effect on small businesses or rural communities, micro-businesses, or local or state employment. There will be no additional economic costs to persons required to comply with the new rule as proposed. An Economic Impact Statement and Regulatory Flexibility Analysis are not required because the proposed new rule will not have an adverse economic impact on small businesses, micro-businesses, or rural communities as defined in Texas Government Code §2006.001.

ECONOMIC COSTS TO PERSONS AND IMPACT ON LOCAL EMPLOYMENT.

There are no anticipated economic costs to persons who are required to comply with the new rule, as proposed. There is no effect on local economy for the first five years that the proposed new rule is in effect; therefore, no local employment impact statement is required under Government Code, §2001.022 and 2001.024(a)(6).

ENVIRONMENTAL IMPACT STATEMENT

The Board has determined that the proposed new rule does not require an environmental impact analysis because the rule is not a major environmental rule under Government Code, §2001.0225.

COSTS TO REGULATED PERSONS

The proposed new rule does not impose a cost on regulated persons, including another state agency, a special district, or a local government and, therefore, is not subject to Government Code, §2001.0045.

PUBLIC BENEFIT/COST NOTE

Mr. Allen has determined that for each year of the first five years the proposed new rule will be in effect the public benefit is consistency and clarity in the agency's sick leave pool and state employee family leave pool rules.

GOVERNMENT GROWTH IMPACT STATEMENT

The Board provides this Government Growth Impact Statement, pursuant to Texas Government Code §2001.0221, for the proposed new rule, 40 TAC §601.70. For each year of the first five years the proposed new rule is in effect, Mr. Allen has determined:

(1) The proposed rule does not create or eliminate a government program.

(2) Implementation of the proposed rule does not require the creation of new employee positions or the elimination of existing employee positions.

(3) Implementation of the proposed rule does not require an increase or decrease in future legislative appropriations to the Board.

(4) The proposed rule does not require a decrease or increase in fees paid to the Board.

(5) The proposed rule will create a new regulation, required by §§661.002(c) and 661.022(c), Texas Government Code.

(6) The proposed rule will not expand or repeal existing rules.

(7) The proposed rule does not decrease the number of individuals subject to the rule's applicability.

(8) The proposed rule does not positively or adversely affect the state economy.

TAKINGS IMPACT ASSESSMENT

This proposed rulemaking will not impact private real property as defined by Texas Government Code §2007.003, so a takings impact assessment under Government Code §2007.043 is not required.

REQUEST FOR PUBLIC COMMENT

Comments on the proposed new rule may be submitted to Tamara Aronstein, General Counsel, Texas Pension Review Board, P.O. Box 13498, Austin, Texas 78711-3498, or via email: rules@prb.texas.gov, no later than 30 days from the date that this proposed rule is published in the Texas Register. Please include the rule name and number in the subject line of any comments submitted by email.

STATUTORY AUTHORITY

The new rule is proposed 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.

CROSS REFERENCE TO STATUTE

Chapter 661, Texas Government Code.

§601.70.State Employee Sick and Family Leave Pools.

(a) A sick leave pool is established to help alleviate hardship caused to an employee and the employee's immediate family if a catastrophic injury or illness forces the employee to exhaust all eligible leave time earned by that employee and to lose compensation from the state.

(b) A family leave pool is established to help alleviate hardship caused 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.

(d) The executive director or designee will establish operating procedures and forms for the administration of this section for inclusion in the agency's personnel policies and procedures manual.

(e) Operation of both pools shall be consistent with Chapter 661, Texas Government Code.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 7, 2024.

TRD-202401033

Tamara Aronstein

General Counsel

State Pension Review Board

Earliest possible date of adoption: April 21, 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) proposes amendments to 40 TAC §605.1, Adoption of Standard Forms, and §605.3, Submission of Forms. This rulemaking action was identified as part of the agency's four-year review of rules pursuant to Texas Government Code §2001.039.

BACKGROUND AND PURPOSE

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 purpose of the proposed amendments is to make minor technical corrections to the agency's rules.

The Board's senior actuary, David Fee, has determined that for each year of the first five-year period the proposed amendment is in effect there will be no fiscal implications for state or local government.

There will be no adverse effect on small businesses or rural communities, micro-businesses, or local or state employment. There will be no additional economic costs to persons required to comply with the amendment as proposed. An Economic Impact Statement and Regulatory Flexibility Analysis are not required because the proposed amendment will not have an adverse economic impact on small businesses or rural communities as defined in Texas Government Code §2006.001(1-a) and (2).

Mr. Fee has determined that for each year of the first five years the proposed amendment will be in effect the public benefit is to clarify the provisions in the current rule for ease of reference and understanding by the public.

SUMMARY

The proposed amendments to 40 TAC §605.1 reference the section of state law that requires the PRB 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 PRB. The proposed amendments also update the PRB's website address.

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.

FISCAL NOTE

Mr. Fee has determined that for each year of the first five-year period the proposed amendments are in effect there will be no fiscal implications for state or local government.

ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS FOR SMALL BUSINESSES, MICROBUSINESSES, AND RURAL COMMUNITIES.

There will be no adverse effect on small businesses or rural communities, micro-businesses, or local or state employment. There will be no additional economic costs to persons required to comply with the amendments as proposed. An Economic Impact Statement and Regulatory Flexibility Analysis are not required because the proposed amendments will not have an adverse economic impact on small businesses, micro-businesses, or rural communities as defined in Texas Government Code §2006.001.

ECONOMIC COSTS TO PERSONS AND IMPACT ON LOCAL EMPLOYMENT.

There are no anticipated economic costs to persons who are required to comply with the amendments, as proposed. There is no effect on local economy for the first five years that the proposed amended rule is in effect; therefore, no local employment impact statement is required under Government Code, §2001.022 and 2001.024(a)(6).

ENVIRONMENTAL IMPACT STATEMENT

The board has determined that the proposed amendments do not require an environmental impact analysis because the rule is not a major environmental rule under Government Code, §2001.0225.

COSTS TO REGULATED PERSONS

The proposed amendments do not impose a cost on regulated persons, including another state agency, a special district, or a local government and, therefore, is not subject to Government Code, §2001.0045.

PUBLIC BENEFIT/COST NOTE

Mr. Fee has determined that for each year of the first five years the proposed amendments will be in effect the public benefit is clarity, efficiency, and effectiveness in certain reporting requirements for public retirement systems.

GOVERNMENT GROWTH IMPACT STATEMENT

The Board provides this Government Growth Impact Statement, pursuant to Texas Government Code §2001.0221, for the proposed amendments to 40 TAC §§605.1 and 605.3. For each year of the first five years the proposed amendment is in effect, Mr. Fee has determined:

(1) The proposed amendments do not create or eliminate a government program.

(2) Implementation of the proposed amendments do not require the creation of new employee positions or the elimination of existing employee positions.

(3) Implementation of the proposed amendments do not require an increase or decrease in future legislative appropriations to the Board.

(4) The proposed amendments do not require a decrease or increase in fees paid to the Board.

(5) The proposed amendments do not create a new regulation.

(6) The proposed amendments will not expand or repeal existing rules.

(7) The proposed amendments do not decrease the number of individuals subject to the rule's applicability.

(8) The proposed amendments do not positively or adversely affect the state economy.

TAKINGS IMPACT ASSESSMENT

This proposed rulemaking will not impact private real property as defined by Texas Government Code §2007.003, so a takings impact assessment under Government Code §2007.043 is not required.

REQUEST FOR PUBLIC COMMENT

Comments on the proposed amendment may be submitted to Tamara Aronstein, General Counsel, Texas Pension Review Board, P.O. Box 13498, Austin, Texas 78711-3498, or via email: rules@prb.texas.gov, no later than 30 days from the date that this proposed amendment is published in the Texas Register. Please include the rule name and number in the subject line of any comments submitted by email.

STATUTORY AUTHORITY

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

CROSS REFERENCE TO STATUTE

Section 801.201(c), Texas Government Code.

No other statutes or rules are affected by this proposed amendment.

§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) Benefits and 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) [~~(5)~~] 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 web site at http://www.prb.texas.gov [~~http://www.prb.state.tx.us~~].

§605.3.Submission of Forms.

(a) A public retirement system must complete and submit to the Board the standard forms identified as Form numbers PRB-100, PRB-200, PRB-300, PRB-400, PRB-500, and PRB-1000 in §605.1 of this chapter relating to Adoption of Standard Forms.

(b) A public retirement system must submit the forms with the information the system submits to the Board as a result of reviews and studies conducted by the Board regarding the actuarial soundness and current financial condition of the fund the system administers.

(c) Defined contribution plans as defined by Texas Government Code, §802.001(1-a) and retirement systems consisting exclusively of volunteers organized under the Texas Local Fire Fighters' Retirement Act as defined by Texas Government Code, §802.002(d), are not required to submit to the Board Form PRB-1000.