PART 1. COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 3. TAX ADMINISTRATION
SUBCHAPTER BB. BATTERY SALES FEE
The Comptroller of Public Accounts adopts amendments to §3.711, concerning battery sales fee collection and reporting requirements, without changes to the proposed text as published in the August 11, 2023, issue of the Texas Register (48 TexReg 4379). The rule will not be republished. The comptroller amends this section to implement Senate Bill 477, 87th Legislature, 2021, which requires marketplace providers to collect the applicable fees related to the sale of lead-acid batteries and to improve readability throughout the section.
The comptroller amends subsection (a) to add paragraphs (3), (4) and (5) to define the terms "marketplace," "marketplace provider," and "marketplace seller," respectively, as those terms are defined in Tax Code, §151.0242(a) but limits the terms to the sale of lead-acid batteries. The comptroller renumbers the subsequent paragraph.
The comptroller amends the title of subsection (b) to reflect that the subsection applies to the collection of the battery sales fee and not the remittance of the fee, which is addressed in subsection (e). The comptroller amends paragraph (1) by adding that, effective July 1, 2022, marketplace providers selling lead-acid batteries are required to collect the battery sales fee. The comptroller also amends paragraph (1) to require the collection of the battery sales fee only on the sale of batteries not for resale, as required under Health and Safety Code, §361.138. The comptroller reorganizes the fee information from paragraph (1) into subparagraphs (A), (B) and (C). The comptroller amends paragraph (2) to add marketplace provider to the provision that allows the comptroller to collect the fee directly from the purchaser in instances where a dealer fails to collect the fee. The comptroller amends paragraph (5) to prohibit a marketplace provider from advertising that a refund is available for any portion of the fee.
The comptroller adds the term marketplace provider to the provisions in subsection (c)(1) and (2), and in subsection (d) to require marketplace providers to follow the same reporting requirements that dealers must follow.
The comptroller amends subsection (e) regarding the remittance of the fee to remove the term "person" and instead use the term "dealer or marketplace provider" in paragraph (1) and to add the term "marketplace provider" in paragraph (2).
The comptroller amends subsection (f) to allow a "marketplace provider" who collects the battery sales fee to retain the applicable discount on each fee collected.
The comptroller amends subsection (g) to remove the term "person" and include the terms "dealer" and "marketplace provider" to allow the comptroller or an authorized representative to inspect the records or equipment of a dealer or marketplace provider.
The comptroller amends subsection (h)(7) to apply the battery sales fee exemptions to certain sales made by a marketplace provider.
The comptroller amends subsection (j) to remove the term "person" and instead use the terms "dealer" and "marketplace provider" to assess the applicable penalties to both for failure to file a battery sales fee report in a timely manner.
The comptroller did not receive any comments regarding adoption of the amendment.
The comptroller adopts the amendments under Tax Code, §111.002 (Comptroller's Rules; Compliance; Forfeiture) and §111.0022 (Application to Other Laws Administered by Comptroller), which provide the comptroller with authority to prescribe, adopt, and enforce rules relating to the administration and enforcement provisions of Tax Code, Title 2, and taxes, fees, or other charges which the comptroller administers under other law.
The amendments to this section implement Health & Safety Code, §361.138 (Fee on the sale of batteries).
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 September 15, 2023.
TRD-202303441
Jenny Burleson
Director, Tax Policy Division
Comptroller of Public Accounts
Effective date: October 5, 2023
Proposal publication date: August 11, 2023
For further information, please call: (512) 475-2220
CHAPTER 41. HEALTH CARE AND INSURANCE PROGRAMS
SUBCHAPTER B. LONG-TERM CARE, DISABILITY AND LIFE INSURANCE
The Board of Trustees of the Teacher Retirement System of Texas (TRS) adopts the repeal of rules §§41.15 - 41.20 under Subchapter B (relating to Long-Term Care, Disability, and Life Insurance) of Chapter 41 in Part 3 of Title 34 of the Texas Administrative Code. These repeals are adopted without changes to the proposed repeals as published in the July 14, 2023, issue of the Texas Register (48 TexReg 3895). The repeals will not be republished.
REASONED JUSTIFICATION
TRS adopts the repeal of Subchapter B of Chapter 41, which contains six existing rules, in order to streamline and clarify Chapter 41 of TRS rules (relating to Health Care and Insurance Programs) by eliminating obsolete administrative rules. Additionally, repealing the six rules under Subchapter B will allow TRS to use these rule numbers for future rulemaking relating to Subchapter A of Chapter 41 (relating to Retiree Health Care Benefits (TRS-Care)). The six existing rules that TRS proposes to repeal are not currently in use, and TRS recommended their repeal in its four-year rule review, which was adopted on August 12, 2022. Their repeal will have no effect on TRS health plans or its participants.
COMMENTS
No comments on the proposed repeals were received.
STATUTORY AUTHORITY
TRS adopts the repeal of these rules under the authority of Insurance Code §1576.006, which provides that board of trustees may adopt rules as necessary to administer Chapter 1576 of the Insurance Code; 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 repealed rules affect the following statutes: Insurance Code §1576.001 through Insurance Code §1576.013, which relates to TRS provided Group Long-Term Care Insurance for Public School Employees.
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 September 15, 2023.
TRD-202303454
Don Green
Chief Financial Officer
Teacher Retirement System of Texas
Effective date: October 5, 2023
Proposal publication date: July 14, 2023
For further information, please call: (512) 542-3528
The Teacher Retirement System of Texas (TRS) adopts new §41.53, relating to Special Transitional Plan, under Subchapter C (relating to Texas School Employees Group Health (TRS-ActiveCare)) under Chapter 41 in Part 3 of Title 34 of the Texas Administrative Code without changes to the proposed text as published in the August 11, 2023, issue of the Texas Register (48 TexReg 4381). The rule will not be republished.
REASONED JUSTIFICATION
TRS-ActiveCare's primary health plan operates on a plan year that begins on September 1 and ends on the following August 31. In order to elect to participate in that plan, a participating entity must provide notice by December 31 of the year immediately preceding the next September 1 as of which it intends to enter the plan. See Insurance Code §1579.155 and corresponding TRS Rule 41.30. This creates difficulties for eligible participating entities to transition into TRS-ActiveCare when those entities currently offer a health plan that operates on a plan year that is different. Such entities may find it difficult or too costly to terminate their own plans in the middle of their plan year to transition into TRS-ActiveCare.
New §41.53, relating to Special Transitional Plan, exercises the Board's authority to create new plans under TRS-ActiveCare by creating a "Special Transitional Plan" that will provide an option to facilitate these entities' transition into TRS-ActiveCare. It will also allow such participating entities to provide notice by December 31 to enter TRS-ActiveCare's traditional plan as of the following September 1. In the interim, the participating entity will participate in the Special Transitional Plan.
COMMENTS
No comments on the proposed new rule were received.
STATUTORY AUTHORITY
This new §41.53 is adopted under the authority of Chapter 1579, Insurance Code, which establishes the Texas School Employees Uniform Group Health Coverage (TRS-ActiveCare); Insurance Code §1579.052, which allows the trustee to adopt rules relating to, and to administer, TRS-ActiveCare as considered necessary by the trustee and to take the actions it considers necessary to devise, implement, and administer TRS-ActiveCare; Insurance Code §1579.101, which allows the trustee by rule to establish plans of group coverages for employees participating in TRS-ActiveCare and their dependents; Chapter 825, Texas 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 adopted rule affects Insurance Code §1579.155, concerning Program Participation: Election.
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 September 15, 2023.
TRD-202303452
Don Green
Chief Financial Officer
Teacher Retirement System of Texas
Effective date: October 5, 2023
Proposal publication date: August 11, 2023
For further information, please call: (512) 542-3528