PART 1. COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 9. PROPERTY TAX ADMINISTRATION
SUBCHAPTER O. TEXAS JOBS, ENERGY, TECHNOLOGY AND INNOVATION PROGRAM
The Comptroller of Public Accounts proposes amendments to §9.5004, concerning application process, and proposes new §9.5013, concerning hearings. This proposal implements aspects of the Texas Jobs, Energy, Technology and Innovation Act ("Act") set forth in Government Code, Subchapter T, Chapter 403, which was enacted by House Bill 5, 88th Legislature, 2023.
The proposed amendment to §9.5004 deletes subsection (e) to permit the information described by Government Code, §403.622(a) to be posted on the comptroller's website before a determination on administrative completeness. The subsequent paragraphs are relettered accordingly.
New §9.5013 outlines the applicable hearing procedures under the Act.
Brad Reynolds, Chief Revenue Estimator, has determined that during the first five years that the proposed new rule and amended rule are in effect, the rules: will not create or eliminate a government program; will not require the creation or elimination of employee positions; will not require an increase or decrease in future legislative appropriations to the agency; will not require an increase or decrease in fees paid to the agency; will not increase or decrease the number of individuals subject to the rules' applicability; and will not positively or adversely affect this state's economy.
Mr. Reynolds also has determined that the proposed new rule and amended rule would have no significant fiscal impact on the state government, units of local government, or individuals. The proposed new rule and amended rule would benefit the public by conforming the rule to current statute and improving the clarity and implementation of the section. There would be no significant anticipated economic cost to the public. The proposed new rule and amended rule would have no fiscal impact on small businesses or rural communities.
You may submit comments on the proposal to John Villarreal, Manager, Economic Development & Local Government at John.Villarreal@cpa.texas.gov or at P.O. Box 13528, Austin, Texas 78711-3528. The comptroller must receive your comments no later than 30 days from the date of publication of the proposal in the Texas Register.
The new section and amendments are proposed under Government Code, §403.623, which permits the comptroller to adopt rules regarding the Texas Jobs, Energy, Technology and Innovation Act as necessary to implement that chapter.
The new section and amendments implement Government Code, Chapter 403.
§9.5004.Application Process.
(a) An applicant must submit an application for a limitation on taxable value of eligible property in the form and manner prescribed by the comptroller. The comptroller may require applications to be submitted electronically.
(b) After the eligibility of the applicant is assessed in §9.5001 of this chapter, the comptroller shall review an application to determine if it is administratively complete. An application is considered administratively complete when it includes all the information requested by the comptroller.
(c) The comptroller shall provide notice of an administratively complete application to the applicant, the governor and the applicable school district. The comptroller may provide notice electronically.
(d) If an application is not administratively complete, the comptroller may require an applicant to submit the necessary information by a deadline.
[(e) The comptroller shall publish
on its website information from each application including maps, economic
benefit statement and any amendments within 10 business days of receiving
an administratively complete application.]
(e) [(f)] To assess whether a
project proposed in an application is an eligible project, the comptroller
must find that:
(1) an applicant satisfies the application requirements;
(2) the proposed project meets the definition of eligible project in §9.5000 of this title and Government Code, §403.602(8); and
(3) The applicant is willing to agree and accept the terms described in Government Code, §403.604, and the agreement terms.
(f) [(g)] To assess whether an
agreement is a compelling factor and whether the applicant would make
the proposed investment in the absence of the agreement under Government
Code, §403.609(b)(3), the comptroller may consider:
(1) any public documents and statements relating to the applicant, the proposed project or the proposed eligible property that is subject to the application;
(2) official statements by the applicant, government officials or industry officials concerning the proposed project;
(3) alternative sites and prospects explored including any specific incentive information;
(4) any information concerning the proposed project's impact on the Texas economy;
(5) previous applications for and subsequent granting of economic development incentives;
(6) documents pertaining to the proposed project's financials, real estate transactions, utilities, infrastructure, transportation, regulatory environment, permits, workforce, marketing, existing facilities, nature of market conditions, and raw materials that demonstrate whether the incentive is a compelling factor in a competitive site selection process to locate the proposed project in Texas; and
(7) any other information that may aid the comptroller in its determination.
(g) [(h)] Upon request, the comptroller
may require that an applicant provides additional documents to demonstrate
a compelling factor in a competitive site selection process to locate
the proposed project in Texas. Failure to provide these documents
may result in the comptroller being unable to make a recommendation
under Government Code, §403.609.
(h) [(i)] Within 60 days of an
application being deemed complete, the comptroller shall examine and
determine whether the application should be recommended or not recommended
for approval based on the criteria in Government Code, §403.609(b).
(i) [(j)] The comptroller shall
provide written notice of action under Government Code, §403.609(a),
to the applicant, the governor and the applicable school district.
(1) The notice shall indicate the comptroller's recommendation either for approval or non-approval of the application along with a copy of the application, and all documents or information relied upon to make the findings prescribed by Government Code, §403.609(b).
(2) A recommendation for approval shall specify a performance bond amount that is 10% of the estimated gross tax benefit to the applicant.
(j) [(k)] An applicant may submit an amended
or supplemental application to the comptroller at any time after the
submission of the original application. If an applicant modifies an
application recommended by the comptroller prior to the execution
of the agreement, the applicant must submit said modifications to
the comptroller to make a recommendation pursuant to Government Code,
§403.609, before the agreement can be executed.
§9.5013.Hearings.
The comptroller's rules of practice and procedure, set forth in Chapter 1, Subchapter A, Division 1 of this title, apply to contested case proceedings under Government Code, §403. 614(e).
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 May 17, 2024.
TRD-202402216
Don Neal
General Counsel, Operations and Support Legal Services
Comptroller of Public Accounts
Earliest possible date of adoption: June 30, 2024
For further information, please call: (512) 475-2220
CHAPTER 41. HEALTH CARE AND INSURANCE PROGRAMS
SUBCHAPTER A. RETIREE HEALTH CARE BENEFITS (TRS-CARE)
The Board of Trustees of the Teacher Retirement System of Texas (TRS) proposes new §41.17 (relating to Limited-time Enrollment Opportunity for Medicare-eligible Retirees) under Subchapter A (relating to Retiree Health Care Benefits (TRS-CARE)) of Chapter 41 in Part 3 of Title 34 of the Texas Administrative Code.
BACKGROUND AND PURPOSE
The trust fund of the Texas Public School Retired Employees Group Benefits Program ("TRS-Care"), administered under Chapter 1575 of the Insurance Code, has experienced growth in recent years stemming from federal changes to Medicare, TRS' improved contracts with Medicare Advantage and Part D drug benefits, and other factors.
TRS received correspondence from legislative leadership directing TRS to use the growth in the TRS-Care fund to reduce premiums and allow for a one-time enrollment opportunity for eligible TRS-Care Medicare Advantage participants. TRS will be evaluating how to use the fund balance to accomplish these goals while maintaining the fund's long-term stability.
TRS is proposing this new §41.17 to provide a limited-time enrollment opportunity for unenrolled retirees, dependents, surviving spouses, and surviving dependent children in anticipation of the upcoming TRS-Care open enrollment period (which begins on October 1, 2024) and the reduced premiums that would take effect on the next plan year, which begins January 1, 2025.
Proposed new §41.17 implements the details of this limited-time enrollment opportunity, specifying who is eligible, when eligible individuals may enroll, and when coverage will be effective. Eligible retirees, dependents, surviving spouses, and surviving dependent children will be eligible to enroll beginning October 1, 2024, through March 31, 2026.
FISCAL NOTE
Don Green, TRS Chief Financial Officer, has determined that for each year of the first five years the proposed new rule will be in effect, there will be no foreseeable fiscal implications for state or local governments as a result of administering the proposed new rule. While opening the enrollment for otherwise eligible retirees, dependents, surviving spouses, and surviving dependent children increases the risk to the TRS-Care trust fund, that risk increase is offset by the premiums that new and existing enrollees will be paying for their coverage and other sources of income of the trust fund. Because health benefit plans are inherently risk-based businesses, this limited-time enrollment opportunity does not pose a risk to the trust fund that is atypical for its nature.
PUBLIC COST/BENEFIT
For each year of the first five years the proposed new rule will be in effect, Mr. Green has also determined that the public benefit anticipated as a result of adopting the new rule will be to provide guidance with respect to how the limited-time enrollment opportunity will be implemented. Mr. Green has also determined that there is no economic cost to entities required to comply with the proposed new rule. Further, Mr. Green has determined participants will incur a cost through the payment of premiums only if they choose to take advantage of this opportunity and enroll.
ECONOMIC IMPACT STATEMENT AND REGULATORY FLEXIBILITY ANALYSIS
TRS has determined that there will be no adverse economic effect on small businesses, micro-businesses, or rural communities as a result of the proposed new rule. Therefore, neither an economic impact statement nor a regulatory flexibility analysis is required under Government Code §2006.002.
LOCAL EMPLOYMENT IMPACT STATEMENT
TRS has determined that there will be no effect on local employment because of the proposed new rule. Therefore, no local employment impact statement is required under Government Code §2001.022.
GOVERNMENT GROWTH IMPACT STATEMENT
TRS has determined that for the first five years the proposed new rule is in effect, the proposed new rule will not create or eliminate any TRS programs; will not require the creation or elimination of employee positions; will not require an increase or decrease in future legislative appropriations to TRS; will not eliminate any fees currently paid to TRS; will not expand, limit, or repeal an existing regulation; will not increase or decrease the number of individuals subject to the rule's applicability; and will not affect the state's economy.
This proposal creates a new regulation. Proposed §41.17 is a new rule through which TRS, as trustee of the Texas Public School Retired Employees Group Benefits Act created under Chapter 1575 of the Insurance Code, will provide a limited-time enrollment opportunity for eligible retirees, dependents, surviving spouses, and surviving dependent children that did not enroll when they had the opportunity to do so.
TAKINGS IMPACT ASSESSMENT
TRS has determined that there are no private real property interests affected by the proposed new rule; therefore, a takings impact assessment is not required under Government Code §2007.043.
COSTS TO REGULATED PERSONS
TRS has determined that Government Code §2001.0045 does not apply to the proposed new rule because it does not impose a cost on regulated persons.
COMMENTS
Comments may be submitted in writing to Brian Guthrie, TRS Executive Director, 1000 Red River Street, Austin, Texas 78701-2698. Written comments must be received by TRS no later than 30 days after publication of this notice in the Texas Register.
STATUTORY AUTHORITY
The new rule is being proposed under the authority of Chapter 1575, Insurance Code, which establishes the Texas Public School Retired Employees Group Benefits Act (TRS-Care), §1575.052, which allows the trustee to adopt rules, plans, procedures, and orders reasonably necessary to implement Chapter 1575, including periods of enrollment and selection of coverage and procedures for enrolling and exercising options under the group program; Chapter 825 of the Government Code, which governs the administration of TRS; and Government Code §825.102, which authorizes the Board of Trustees to adopt rules for the transaction of the business of the Board.
CROSS-REFERENCE TO STATUTE
The proposed new rule affects Chapter 1575, Insurance Code, which establishes the Texas Public School Retired Employees Group Benefits Program (TRS-Care), §1575.052, which allows the trustee to adopt rules, plans, procedures, and orders for periods of enrollment and selection of coverage and procedures for enrolling and exercising options under the group program.
§41.17.Limited-time Enrollment Opportunity for Medicare-eligible Retirees.
(a) Eligibility.
(1) Retiree. A retiree who is eligible to enroll in the Medicare Advantage plan offered under TRS-Care in accordance with Section 1575.1582(b), Insurance Code (hereinafter referred to as "MA plan") and who is not currently enrolled in the MA plan, may enroll in the MA plan if the retiree applies for enrollment during the limited-time enrollment period. For the purpose of this section, the limited-time enrollment period is the period that begins on October 1, 2024, and extends through March 31, 2026.
(2) Surviving spouses or surviving dependent children. If a retiree has passed away, the retiree's surviving spouse or the retiree's surviving dependent child may enroll under this section, as long as:
(A) The surviving spouse or surviving dependent child qualifies as such under Section 1575.003, Insurance Code, and
(B) The surviving spouse or surviving dependent child is eligible for Medicare and is eligible to enroll in the MA plan offered under TRS-Care in accordance with Section 1575.1582(b), Insurance Code.
(3) Dependents. If the retiree's or surviving spouse's application to enroll under this section is approved, the retiree or surviving spouse may also enroll any eligible dependents.
(4) Single enrollment opportunity. A retiree, surviving spouse, or surviving dependent child may only enroll one time during the limited-time enrollment period.
(b) Effective Date of Coverage.
(1) January 1, 2025. For those applications received and approved before January 1, 2025, coverage shall be effective on January 1, 2025.
(2) After January 1, 2025. For those applications received after January 1, 2025, the effective date of coverage shall be the first day of the month after TRS receives and approves the request to enroll.
(3) Range. In no event shall the effective date be prior to January 1, 2025, or after April 1, 2026.
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 May 17, 2024.
TRD-202402213
Don Green
Chief Financial Officer
Teacher Retirement System of Texas
Earliest possible date of adoption: June 30, 2024
For further information, please call: (512) 542-3528