{
    "title": {
        "number": "34",
        "label": "PUBLIC FINANCE"
    },
    "ruleCount": 1614,
    "rules": [
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209178&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "209178",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.1",
                "label": "Scope and Construction of Rules"
            },
            "nextRule": {
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            "ruleBody": "(a) Matters subject to these rules. These rules apply to all phases of contested case proceedings that may be referred to the jurisdiction of SOAH as provided by Tax Code, §111.00455 and Government Code, §2003.101. Contested cases under those sections relate to the collection, receipt, administration, and enforcement of a tax imposed under Tax Code, Title 2 and any other tax, fee, or other amount that the comptroller is required to collect, receive, administer, or enforce under a law not included under Tax Code, Title 2. Contested cases within the scope of these rules include disputed deficiency determinations, disputed jeopardy determinations, and disputed denials of refund claims. Pursuant to Tax Code, §111.1042(b), an informal review of a claim for refund is not a contested case.(1) Deficiency determinations. Tax Code, §111.008 provides that if the comptroller is not satisfied with a tax report or the amount of the tax required to be paid to the state, the comptroller may compute and determine the amount of tax to be paid from information contained in the report or from any other information available to the comptroller. Tax Code, §111.009 provides that a person having a direct interest in a deficiency may petition the comptroller for a redetermination.(2) Jeopardy determinations. Tax Code, §111.022 provides that if the comptroller believes that the collection of a tax required to be paid to the state or the amount due for a tax period is jeopardized by delay, the comptroller shall issue a determination stating the amount and that the tax collection is in jeopardy. The amount is due and payable immediately unless the taxpayer timely files a request for redetermination.(3) Denial of refund claims. Tax Code, §111.105 provides that if the comptroller denies a refund claim filed pursuant to Tax Code, §111.104, the person claiming a refund may request a refund hearing.(b) Matters not subject to these rules. These rules do not apply to hearings on the following matters that are not conducted by SOAH pursuant to Tax Code, §111.00455(b) and Government Code, §2003.101:(1) a show cause hearing or any hearing not related to the collection, receipt, administration, or enforcement of the amount of tax or fee imposed, or the penalty or interest associated with that amount, except for a hearing under Tax Code, §§151.157(f), 151.1575(c), or 151.712(g), or Health and Safety Code, §161.0901;(2) a property value study hearing under Government Code, Chapter 403, Subchapter M, which is conducted pursuant to Chapter 9, Subchapter A of this title (relating to Practice and Procedure);(3) a hearing in which the issue relates to:(A) Property Code, Chapters 72-75;(B) forfeiture of a right to do business;(C) a certificate of authority;(D) articles of incorporation;(E) a penalty imposed under Tax Code, §151.703(d);(F) the refusal or failure to settle under Tax Code, §111.101; or(G) a request for or revocation of an exemption from taxation; and(4) any other hearing not related to the collection, receipt, administration, or enforcement of the amount of a tax or fee imposed, or the penalty or interest associated with that amount.(c) Application of SOAH Rules of Procedure. The SOAH Rules of Procedure, 1 TAC Chapter 155, govern contested cases while SOAH has jurisdiction. SOAH has jurisdiction of a contested case from the time the case is docketed at SOAH until the case is returned to the agency following the issuance of a proposal for decision or remanded to the agency for any reason.(d) Construction. The principles of statutory construction and of Code Construction Act, Government Code, Chapter 311, apply to these rules.",
            "sourceNote": "Source Note: The provisions of this §1.1 adopted to be effective January 1, 2019, 43 TexReg 8126; amended to be effective June 8, 2022, 47 TexReg 3268."
        },
        {
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            "currentRecordId": "193468",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.2",
                "label": "Definitions"
            },
            "nextRule": {
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            "ruleBody": "The following words and terms, when used in these rules, shall have the following meanings, unless the context clearly indicates otherwise.(1) Agency--The Comptroller of Public Accounts.(2) AHS--The Administrative Hearings Section of the Hearings and Tax Litigation Division of the comptroller, which represents the agency in contested cases under these rules.(3) ALJ--Administrative law judge, who is the presiding officer at a SOAH contested case hearing.(4) APA--The Administrative Procedure Act (Government Code, Chapter 2001).(5) Authorized representative--A person designated to represent the taxpayer, who may be an attorney licensed to practice law in this state, a certified public accountant, or any other person designated by the taxpayer who is not otherwise prohibited from appearing in the hearing.(6) Claimant--A person claiming a refund.(7) Comptroller--The Comptroller of Public Accounts.(8) Contested case--A proceeding in which the legal rights, duties, or privileges of a party are to be determined by the agency after an opportunity for an adjudicative hearing.(9) Determination--A written notice from the agency that a person is required to pay to the State of Texas a tax, fee, penalty, or interest.(10) Office of Special Counsel for Tax Hearings--Agency staff who assist the comptroller in rendering contested case orders and decisions.(11) Party--Any person who has requested a redetermination hearing or a refund hearing; agency staff, acting through the AHS; and any other person admitted as a party under §1.24 of this title (relating to Interested Parties).(12) Person--Any individual, partnership, corporation, association, governmental subdivision, or public or private organization of any character. It may also include an estate, trust, receiver, assignee for benefit of creditors, trustee, trustee in bankruptcy, assignee, or any other group or combination acting as a unit.(13) Petition--A written request for official action by the agency regarding the rights, duties, or privileges accorded to the person making the request under a statute administered or enforced by the agency.(14) Petitioner--A person petitioning for a redetermination.(15) Pleading--Any document filed by a party concerning the position or assertions in a contested case.(16) Rules--The comptroller's rules of practice & procedure, set forth in Chapter 1, Subchapter A, Division 1 of this title.(17) SOAH--The State Office of Administrative Hearings, which is the state agency that has jurisdiction to preside over hearings on the contested cases subject to these rules.(18) Tax Hearings Attorney--An attorney from the AHS assigned to represent agency staff in a contested case under these rules.",
            "sourceNote": "Source Note: The provisions of this §1.2 adopted to be effective January 1, 2019, 43 TexReg 8126."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193469&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "193469",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.3",
                "label": "Representation and Participation"
            },
            "nextRule": {
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            "ruleBody": "(a) Authorized representatives.(1) A taxpayer who is an individual may represent himself or herself at any stage of a contested case. A taxpayer who is an individual may have one or more authorized representative.(2) A taxpayer that is an entity must have at least one authorized representative.(3) To represent a taxpayer, a representative must have on file with the comptroller a written authorization. The authorization may be satisfied by submitting the comptroller's Limited Power of Attorney form (Form 01-137), or by authorization on a document that complies with the requirements of Tax Code, §111.023.(4) An authorized representative may be an attorney, an accountant, or any other person of a taxpayer's choice.(b) Designated representative for notice.(1) Although a taxpayer may have more than one authorized representative, the taxpayer shall designate a single representative for notice of contested case documents. The designated representative for notice is responsible for the receipt of contested case documents, such as for the purpose of §1.6 of this title (relating to Service of Documents on Parties), §1.34 of this title (relating to Comptroller's Decisions and Orders), and §1.35 of this title (relating to Motion for Rehearing).(2) A taxpayer's designated representative for notice shall be the individual signing the original Statement of Grounds, until changed in accordance with this subsection. A taxpayer may continue to use the same representative for matters before a contested case begins by authorizing the same representative to sign the Statement of Grounds.(3) The designation must include a single person's name and a single mail address. The designation may include a single email address for the purpose of §1.6 of this title.(4) A taxpayer may change its designated representative for notice by submitting the information required in this subsection to Audit Processing by email to: audit.processing@cpa.texas.gov, or by contacting the assigned Tax Hearings Attorney. The effective date will be the date of receipt of the notice.(5) When an attorney licensed to practice law in Texas files a motion for rehearing in accordance with §1.5 of this title (relating to Filing Documents with SOAH or the Office of Special Counsel for Tax Hearings), the motion is considered to be a taxpayer's express written authorization to change its designated representative for notice to the filing attorney. When more than one attorney appears in a motion for rehearing, the attorney whose signature first appears on the motion shall be the designated representative for notice unless the motion designates another attorney.(c) Hearings at SOAH on contested cases are not open to the public. Any person desiring to observe or participate at any stage of a contested case who is not a party, not employed by a party, or not called as a witness, must obtain the agreement of all parties.",
            "sourceNote": "Source Note: The provisions of this §1.3 adopted to be effective January 1, 2019, 43 TexReg 8126."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193470&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "193470",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.4",
                "label": "Computation of Time"
            },
            "nextRule": {
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                "recordId": "209179",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Computing time periods.(1) When computing periods of time prescribed or allowed in this subchapter:(A) the day of the act, event, or default from which the designated time period begins to run is not counted; and(B) the last day of the time period is counted, unless it is a day on which the agency's offices are closed, in which case the time period will end on the next day the agency's offices are open.(2) Example. If a comptroller's decision is signed on December 1, December 1 is the day of the act, event, or default. December 1 is not considered the first day of the motion for rehearing period. The period to file a motion for rehearing begins to run on the next calendar day, December 2. Thus, if a comptroller's decision is signed on December 1, then the 25-day period to file a motion for rehearing begins to run on December 2, and the deadline to file a motion for rehearing is December 26. If the agency is closed on December 26, the deadline to file becomes the next calendar day that the agency is open after December 26.(b) Calendar days. Time limits shall be computed using calendar days rather than business days.",
            "sourceNote": "Source Note: The provisions of this §1.4 adopted to be effective January 1, 2019, 43 TexReg 8126."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209179&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "209179",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.5",
                "label": "Filing Documents with SOAH or the Office of Special Counsel for Tax Hearings"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=221346&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "221346",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Filing requirement with SOAH. A party shall file documents that are required to be filed with SOAH in accordance with SOAH Rules of Procedure. The date of filing is determined by SOAH Rules of Procedure. The parties should refer to SOAH Rules of Procedure, 1 TAC §§155.51 (Jurisdiction); 155.53 (Request to Docket Case); and 155.101 (Filing Documents).(b) Filing requirement with the Office of Special Counsel for Tax Hearings. Contested case documents required to be filed with the Office of Special Counsel for Tax Hearings are:(1) a motion to dismiss under Government Code, §2001.056 (Informal Disposition of Contested Case);(2) a motion for rehearing and related motions under Government Code, §§2001.141 - 2001.147 (Contested Cases: Final Decisions and Orders; Motions for Rehearing);(3) a reply to a motion filed with the Office of Special Counsel for Tax Hearings; and(4) a brief or reply brief under §1.34 of this title (relating to Comptroller's Decisions and Orders).(c) Contact information for the Office of Special Counsel for Tax Hearings. Contested case documents required to be filed with the Office of Special Counsel for Tax Hearings may be filed by email to specialcounsel.filings@cpa.texas.gov; by fax to (512) 936-6190; by mail addressed to Office of Special Counsel for Tax Hearings, P.O. Box 13528, Austin, Texas 78711-3528; or by hand-delivery addressed to Office of Special Counsel for Tax Hearings, 111 E. 17th Street, Austin, Texas 78774.(d) Date of filing with the Office of Special Counsel for Tax Hearings.(1) The filing date of a document filed by mail is determined by the date-stamp affixed by the comptroller's mail room.(2) The filing date of a document filed by hand-delivery is determined by the date recorded by staff at the comptroller's security desk at 111 E. 17th Street, Austin, Texas 78774.(3) The filing date of a document filed electronically is determined by the date stamp recorded on the electronic transmission received by the comptroller. The date will be based on the 24-hour period from 12:00 a.m. (midnight) through 11:59 p.m. The filing date of an electronic document received on a date that the comptroller's office is closed will be the next date that the comptroller's office is open.(4) Non-conforming documents. The Office of Special Counsel for Tax Hearings may notify a filing party about a filing error when a filed document fails to conform to this title. To preserve the filing date when a filed document fails to include a certificate of service required by §1.6 of this title (relating to Service of Documents on Parties), the Office of Special Counsel for Tax Hearings may identify the error and request the filing party to resubmit the document in a conforming format by a deadline.(e) Upon a taxpayer's request, the Office of Special Counsel for Tax Hearings will provide documentation demonstrating the actual date a document is filed with the Office of Special Counsel for Tax Hearings.(f) If the Office of Special Counsel for Tax Hearings provides no document to demonstrate the actual date of receipt of a document properly filed in accordance with this section, then other relevant and reliable documents are acceptable proof of date of receipt. A certificate of service under §1.6 of this title is not acceptable proof that a document was filed or the date it was received in accordance with this section.(g) Settlement documents. The parties should refer to §1.31 of this title (relating to Resolution Agreements) and §1.32 of this title (relating to Dismissal of Case), for guidance regarding the process for resolving a contested case by agreement and, if applicable, guidance on when to file a motion to dismiss after a resolution agreement.(h) Service required. On the same date that a document is filed, it must also be served as described in §1.6 of this title.",
            "sourceNote": "Source Note: The provisions of this §1.5 adopted to be effective January 1, 2019, 43 TexReg 8126; amended to be effective June 8, 2022, 47 TexReg 3268."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=221346&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "221346",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.6",
                "label": "Service of Documents on Parties"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193473&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
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            "ruleBody": "(a) Service required. A party filing a contested case document shall also serve a copy on each party in accordance with §1.3 of this title (relating to Representation and Participation). When SOAH has jurisdiction, a party shall follow the SOAH Rules of Procedure. A party filing a document that is required to be served must include a certificate of service as described in this section. The sender has the burden of proving the date and time of service of a document.(b) Methods of service. Service generally means sending or delivering a contested case document in order to charge a party with receipt of it and subject a party to its legal effect. Service may be made by the following methods:(1) hand-delivery;(2) regular (United States Postal Service or private mail service), certified, or registered mail;(3) email, upon agreement of the parties; or(4) if sent by a taxpayer or representative, fax.(c) Service on interested parties. Interested parties admitted to a contested case pursuant to §1.24 of this title (relating to Interested Parties) shall also be served.(d) Service on the AHS. Service on the AHS must be through the assigned Tax Hearings Attorney in the AHS. Service may be made as provided in paragraphs (1) and (2) of this subsection.(1) Hand-delivery. The file stamp affixed by the AHS will be the date of service for hand-delivered documents. Hand-delivered documents must be addressed to Texas Comptroller of Public Accounts, Administrative Hearings Section, 1800 Congress Avenue, Suite 14.301, Austin, Texas 78701-1320.(2) Delivery by methods other than hand-delivery. The service date of a document filed by mail is determined by the date-stamp affixed by the comptroller's mail room. Documents served by fax or email are considered served on a date when they are received at any time during the 24-hour period from 12:00 a.m. (midnight) through 11:59 p.m. on that date, and documents received on a day on which the agency is closed are considered filed on the next calendar day on which the agency is open.(e) Certificate of service. A party filing a document that must be served shall include a signed certificate of service with the filed document that certifies compliance with this section. A form for a certificate of service shall be sufficient if it substantially complies with the following example: \"Certificate of Service: I certify that on (date), a true and correct copy of this (name of document) has been sent to (name of taxpayer's designated representative for notice or assigned Tax Hearings Attorney) by (specify method of delivery and delivery address). (Signature).\"(f) Service of notice of hearing. Unless otherwise required by law, service of notice of hearing shall be made in the manner required by Government Code, Chapter 2001.",
            "sourceNote": "Source Note: The provisions of this §1.6 adopted to be effective January 1, 2019, 43 TexReg 8126; amended to be effective October 31, 2024, 49 TexReg 8589."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193473&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "193473",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.7",
                "label": "Ex Parte Communications"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193474&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
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            "ruleBody": "(a) Prohibited ex parte communications.(1) Government Code, §2001.061(a) states, \"Unless required for the disposition of an ex parte matter authorized by law, a member or employee of a state agency assigned to render a decision or to make findings of fact and conclusions of law in a contested case may not directly or indirectly communicate in connection with an issue of fact or law with a state agency, person, party, or a representative of those entities, except on notice and opportunity for each party to participate.\"(2) The prohibition on ex parte communications includes oral and written communications.(3) The prohibition on ex parte communications applies for the duration of a contested case. A contested case generally begins with a request for redetermination of a deficiency or jeopardy determination, or a request for hearing following denial of a request for refund. A contested case generally ends when a decision is final.(4) The prohibition on ex parte communications includes communications with the following persons who participate in rendering decisions:(A) the comptroller of public accounts;(B) the deputy comptroller;(C) staff of the Office of Special Counsel for Tax Hearings; and(D) any ALJ assigned to the contested case.(b) Permitted ex parte communications. Government Code, §2001.061(c) allows a decision-maker to communicate ex parte with an agency employee who has not participated in a hearing in the case for the purpose of using the special skills or knowledge of the agency and its staff in evaluating evidence. For example, the deputy comptroller may communicate with an employee of the Tax Policy Division who has not participated in the hearing.(c) The recipient of a prohibited ex parte communication may notify the other parties of the content of the communication and provide an opportunity for the other parties to respond. For purposes of this subsection, a \"recipient\" is one or more of the individuals identified in subsection (a)(4) of this section.",
            "sourceNote": "Source Note: The provisions of this §1.7 adopted to be effective January 1, 2019, 43 TexReg 8126."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193474&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "193474",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.8",
                "label": "Deadline Extensions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=221347&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
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            "ruleBody": "(a) Before SOAH acquires jurisdiction over a contested case (see 1 TAC §155.51), taxpayers' requests to extend any deadlines imposed by this subchapter must be submitted to the Tax Hearings Attorney assigned to the case. A request will be granted if it shows good cause and the need is not caused by neglect, indifference, or lack of diligence. Requests must be served upon other parties of record.(b) After SOAH acquires jurisdiction over a contested case (see 1 TAC §155.51), motions to extend filing deadlines and motions for continuance must be filed with SOAH pursuant to 1 TAC §155.307 and any applicable orders of the ALJ assigned to the case. If the agency increases the amount of tax deficiency at or before the time of hearing, the taxpayer is entitled to a 30-day continuance of the hearing to obtain and present evidence applicable to the items on which the additional claim is based.(c) For extensions of the deadline to file a motion for rehearing of a decision or order, or a reply to a motion for rehearing, refer to §1.35(d) of this title (concerning Motion for Rehearing).",
            "sourceNote": "Source Note: The provisions of this §1.8 adopted to be effective January 1, 2019, 43 TexReg 8126."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=221347&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "221347",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.10",
                "label": "Requesting a Hearing"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209180&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "209180",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Requesting a redetermination hearing.(1) If a taxpayer disagrees with a deficiency or jeopardy determination, the taxpayer may request a redetermination hearing by timely submitting a written request for redetermination. This written request must include a Statement of Grounds that complies with the requirements set forth by §1.11 of this title (relating to Statement of Grounds; Preliminary Conference).(2) The request for a redetermination hearing must be submitted before the expiration of 60 days after the date the notice of determination is issued, or before the expiration of 20 days after the statement date on the notification of a jeopardy determination. A request for a redetermination hearing that is not timely submitted will not be granted. An extension of time for initiating a redetermination hearing may be requested subject to the requirements of subsection (c) of this section. A taxpayer who cannot obtain a redetermination hearing may pay the determination and request a refund in order to raise any objection to the determination.(3) The request for redetermination and Statement of Grounds must be timely submitted to the agency's Audit Processing Section by one of the following methods:(A) by regular (United States Postal Service or private mail service), certified, or registered mail, or by hand-delivery, to the following address: Texas Comptroller of Public Accounts, Audit Processing Section, 1801 Congress Avenue, Suite 14.300, Austin, Texas 78701-1320;(B) by email to audit.processing@cpa.texas.gov; or(C) by fax to (512) 463-2274.(4) Required documentary evidence following request for redetermination hearing. After a taxpayer timely requests a redetermination hearing, the agency may request in writing that the taxpayer produce documentary evidence for inspection that would support the taxpayer's Statement of Grounds. The written request may specify that resale or exemption certificates to support tax-free sales must be submitted within 90 days from the date of the request, or by the date agreed to by the comptroller and the seller. Pursuant to Tax Code, §151.054 and §151.104, resale or exemption certificates that are not submitted within the time limit will not be accepted as evidence to support a claim of tax-free sales by the ALJ in SOAH proceedings.(b) Requesting a refund hearing.(1) If a taxpayer disagrees with the agency's denial of a refund claim, the taxpayer may request a refund hearing by timely submitting to the agency a written request for a refund hearing. This written request must include a Statement of Grounds that complies with the requirements set forth by §1.11 of this title and Tax Code, §111.104 and §111.105.(2) The request for a refund hearing must be filed on or before the 60th day after the date the comptroller issues a letter denying the claim for refund. A request for a refund hearing that is not timely submitted will not be granted. An extension of time for initiating a refund hearing may be requested subject to the requirements of subsection (c) of this section.(3) The request for a refund hearing and Statement of Grounds must be timely submitted to the agency's Audit Processing Section by one of the following methods:(A) by regular (United States Postal Service or private mail service), certified, or registered mail, or by hand-delivery, to the following address: Texas Comptroller of Public Accounts, Audit Processing Section, 1801 Congress Avenue, Suite 14.300, Austin, Texas 78701-1320;(B) by email to audit.processing@cpa.texas.gov; or(C) by fax to (512) 463-2274.(4) A refund hearing will not be granted if neither the original request for a refund, nor the Statement of Grounds accompanying a request for a refund hearing, state grounds on which a refund may be granted.(5) A taxpayer may not subsequently maintain a suit for refund if a refund claim is denied and the taxpayer does not timely request a hearing. See Tax Code, §111.104 and §112.151.(c) Timely submission of the hearing request.(1) A hearing request submitted by mail is considered submitted by the date-stamp affixed by the agency mail room.(2) A hearing request submitted by hand-delivery is considered submitted on the date received by agency staff.(3) A hearing request that is submitted electronically is considered submitted on a date when it is received at any time during the 24-hour period from 12:00 a.m. (midnight) through 11:59 p.m. on that date, and a hearing request received on a day the agency is closed is considered filed on the next calendar day on which the agency is open. The date of receipt shall be determined by the time and date stamp recorded on the electronic transmission by the agency's system.(d) Extensions of time for initiating hearing process. Requests to extend the due date for requesting a hearing under this section may be granted in case of emergency or extraordinary circumstances. Requests for extension will not be routinely granted. Requests received after the expiration of the original due date will not be considered. Requests will be granted or denied by the General Counsel of the Hearings and Tax Litigation Division of the agency, and must be submitted by one of the following methods:(1) by regular (United States Postal Service or private mail service), certified, or registered mail, or by hand-delivery, to the following address: Texas Comptroller of Public Accounts, Administrative Hearings Section, 1801 Congress Avenue, Suite 14.301, Austin, Texas 78701-1320;(2) by email to ahs.service@cpa.texas.gov; or(3) by fax to (512) 463-4617.",
            "sourceNote": "Source Note: The provisions of this §1.10 adopted to be effective January 1, 2019, 43 TexReg 8126; amended to be effective June 8, 2022, 47 TexReg 3269; amended to be effective October 31, 2024, 49 TexReg 8589."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209180&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "209180",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.11",
                "label": "Statement of Grounds; Preliminary Conference"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193477&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "193477",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Content of Statement of Grounds. The Statement of Grounds must contain the reasons the taxpayer disagrees, in whole or in part, with the agency's determination, refund denial, or other action. The taxpayer must list and number the contested items or transactions, individually, or state one or more general contentions that identify a category or categories of contested items or transactions. For each contested item, transaction, or general contention, the taxpayer must also state the factual basis and the legal grounds that the tax should not be assessed or the tax should be refunded. If the taxpayer disagrees with the agency's interpretation of the law, specific legal authority must be cited in support of the taxpayer's arguments.(b) Signature requirement.(1) The Statement of Grounds must be signed by the taxpayer or by the authorized representative of the taxpayer. The individual signing the Statement of Grounds will be the taxpayer's designated representative for notice pursuant to §1.3 of this title (relating to Representation and Participation).(2) A Statement of Grounds that is filed by e-mail or other electronic means complies with the signature requirement under paragraph (1) of this subsection if the Statement of Grounds identifies the individual who is the taxpayer's designated representative for notice pursuant to §1.3 of this title.(c) Defective Statement of Grounds. If the Statement of Grounds or the power of attorney authorizing an individual to sign the Statement of Grounds is defective, the agency will notify the taxpayer of the actions required to correct the defect. Defects in the Statement of Grounds include, but are not limited to, a failure to state any contested items or contentions under subsection (a) of this section, or a failure to include a signature as required by subsection (b) of this section. If the taxpayer does not correct the defect by the deadline specified by the agency, the hearing request may not be granted.(d) Contested items or contentions not included in Statement of Grounds. If an item, transaction, or contention is not listed in the Statement of Grounds or otherwise provided consistent with this subchapter, it may be excluded from the Notice of Hearing.(e) Motion to dismiss for failure to state a contested case issue in the Statement of Grounds. If the taxpayer's Statement of Grounds fails to list and number items or transactions, individually or by category, or fails to state the factual basis and legal grounds upon which relief is sought, the contested case may be dismissed for failure to state a contested case issue for which relief can be granted. For the procedures by which the AHS may move for dismissal based on a Statement of Ground's failure to state a contested case issue for which relief may be granted, see §1.32 of this title (relating to Dismissal of Case).(f) Preliminary conference and request to provide additional information. If a taxpayer's Statement of Grounds raises issues that cannot be resolved from the material contained in the audit or Statement of Grounds, the agency may ask the taxpayer to participate in a preliminary conference or to provide additional evidence. The preliminary conference or request for additional information is intended to encourage an early resolution of the contested case before it is assigned to a Tax Hearings Attorney. A request for additional information may include a written request that resale or exemption certificates to support tax-free sales must be submitted within 90 days from the date of the request, or by the date agreed to by the comptroller and the seller. Pursuant to Tax Code, §151.054 and §151.104, resale or exemption certificates that are not submitted within the time limit will not be accepted as evidence to support a claim of tax-free sales by the ALJ in SOAH proceedings.(g) The Statement of Grounds may be amended up to the time that a Reply to the Position Letter is due, subject to any applicable limitations periods. The Statement of Grounds does not toll the limitations period for any additional contested items, transactions, or general contentions related to refund claims. See §1.13 of this title (relating to Taxpayer's Acceptance or Rejection of Position Letter, and Reply to Position Letter) for more information about the Reply to the Position Letter.",
            "sourceNote": "Source Note: The provisions of this §1.11 adopted to be effective January 1, 2019, 43 TexReg 8126; amended to be effective June 8, 2022, 47 TexReg 3269."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193477&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "193477",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.12",
                "label": "Position Letter"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209182&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "209182",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Contents of Position Letter. The Tax Hearings Attorney will review the Statement of Grounds, documentary evidence, and any additional evidence received from the taxpayer and issue a Position Letter to the taxpayer. The Position Letter will accept or reject, in whole or in part, each contention of the taxpayer, and state the AHS's position on all disputed issues raised by the taxpayer, such as taxability, penalty and interest waiver, and whether the taxpayer is an individual or entity liable for the assessment of tax at issue.(b) Selection form. The Position Letter will include a selection form for the taxpayer to accept or reject the Position Letter. See §1.13 of this title (relating to Taxpayer's Acceptance or Rejection of Position Letter, and Reply to Position Letter).(c) Notice of demand. Pursuant to Tax Code, §111.105(e), the Tax Hearings Attorney may issue with the Position Letter a written notice of demand that all documentary evidence to support facts or contentions related to a taxpayer's claim for refund be produced before the expiration of a specified date in the notice. The specified date may not be less than 180 days from the date of the original refund claim, and not less than 60 days from the date of the notice. The deadline to respond to the notice of demand may be extended by the Tax Hearings Attorney. A taxpayer who fails to produce the requested documents by the specified date may not introduce in evidence any of the documents that were not timely produced. The assigned ALJ cannot consider in SOAH proceedings documents that were not timely produced. This section is only applicable to the administrative hearing and has no effect on a judicial proceeding pending under Tax Code, Chapter 112. See Tax Code, §111.105(e). The agency may also issue a notice of demand pursuant to Tax Code, §111.105(e) at other stages of the contested case process before or after the issuance of a Position Letter.(d) Taxpayer's option to set a Position Letter deadline. After a contested case is assigned, the Tax Hearings Attorney will issue an introductory letter providing contact information and other information concerning the hearings process. If the Tax Hearings Attorney does not issue the Position Letter within 60 days after the date of the introductory letter, the taxpayer may submit a written request to the Tax Hearings Attorney to issue a Position Letter within 45 days of the receipt of the request. The Tax Hearings Attorney will issue a Position Letter within the 45-day deadline, obtain an agreed extension of the deadline to issue the Position Letter, or confer with the taxpayer concerning the docketing of the case at SOAH consistent with §1.20 of this title (relating to Docketing Oral and Written Submission Hearings).(e) Modification or amendment of the Position Letter. If the Position Letter is modified or amended, the taxpayer must accept or reject the modified or amended Position Letter, in whole or in part, within 45 days after the day the modified or amended Position Letter is dated, unless an extension is granted. If the Position Letter includes a Notice of Demand consistent with subsection (c) of this section, the date to respond to the Notice of Demand will correspond to the date, including any extension thereof, by which the taxpayer must accept or reject the modified or amended Position Letter.",
            "sourceNote": "Source Note: The provisions of this §1.12 adopted to be effective January 1, 2019, 43 TexReg 8126."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209182&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "209182",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.13",
                "label": "Taxpayer's Acceptance or Rejection of Position Letter, and Reply to Position Letter"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193479&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "193479",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Due date to accept or reject the Position Letter; extensions. The taxpayer must accept or reject the Position Letter, in whole or in part, within 45 days after the day the Position Letter is dated. The taxpayer may request an extension of this deadline from the assigned Tax Hearings Attorney. The first request to extend the deadline up to an additional 45 days will be granted by the assigned Tax Hearings Attorney. Additional extensions of the deadline to accept or reject the Position Letter will not be granted unless the taxpayer demonstrates there is good cause for the extension and that the need is not caused by neglect, indifference, or lack of diligence.(b) Selection form. The taxpayer must sign and return to the assigned Tax Hearings Attorney the selection form provided as an attachment to the Position Letter. The taxpayer must select one of the following options.(1) Option One: Agree with the Position Letter. If the taxpayer selects this option, the General Counsel of the Hearings and Tax Litigation Section will also sign the form, which will then be considered a resolution agreement under §1.31 of this title (relating to Resolution Agreements). The tax liability or refund will be calculated consistent with the Position Letter, including any applicable penalty or interest, and a final billing will be sent to the taxpayer. The taxpayer will not be required to respond to the amended determination and final billing, other than by payment, unless the taxpayer disagrees with the amount of the amended determination or final billing.(2) Option Two: Disagree with the Position Letter. The taxpayer may reject some or all of the conclusions of the Position Letter by selecting this option and may include a Reply to the Position Letter as provided in subsection (c) of this section.(c) Reply to the Position Letter. At the time the taxpayer submits the selection form described in subsection (b)(2) of this section, the taxpayer may also submit a Reply to the Position Letter. The Reply to the Position Letter should address all unresolved contentions and provide legal and factual support for the taxpayer's position. If the Position Letter does not address specific contentions or contested items that the taxpayer believes should be included as part of the contested case, the Reply to the Position Letter should state those contentions or contested items so that they may be included in the Notice of Hearing for consideration by the ALJ. If the taxpayer has previously provided the facts, legal arguments, information, and documents it intends to submit for consideration at the time the Reply to the Position Letter is due, the taxpayer may return the selection form indicating disagreement with the Position Letter without a Reply to the Position Letter.(d) If the taxpayer fails to timely respond to the Position Letter, the comptroller may dismiss the contested case. See §1.32 of this title (relating to Dismissal of Case). In such case, an amended final determination or final billing in accordance with the positions set forth in the Position Letter will be sent to the taxpayer. The contested case will be concluded unless the taxpayer files a motion for rehearing following the procedures stated in §1.35 of this title (relating to Motion for Rehearing).",
            "sourceNote": "Source Note: The provisions of this §1.13 adopted to be effective January 1, 2019, 43 TexReg 8126; amended to be effective June 8, 2022, 47 TexReg 3270."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193479&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "193479",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.14",
                "label": "The Administrative Hearings Section's Response to the Reply to the Position Letter"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193480&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "193480",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If the taxpayer presents additional facts, information, documents, or legal arguments in a Reply to the Position Letter, the Tax Hearings Attorney may issue, within 90 days after receipt of the Reply, a Response stating the legal position of the AHS, and any factual disagreement, on each additional issue or argument raised by the taxpayer. The Tax Hearings Attorney may request an extension of the 90-day deadline. If the taxpayer does not agree to extend the 90-day deadline, the Tax Hearings Attorney will prepare a Notice of Hearing and docket the contested case at SOAH pursuant to §1.20 of this title (relating to Docketing Oral and Written Submission Hearings).(b) If the taxpayer fails to submit a Reply to the Position Letter, or if the Reply to the Position Letter does not contain any additional facts or legal arguments warranting a written response, the assigned Tax Hearings Attorney is not required to issue a Response. In such cases, the Tax Hearings Attorney may prepare a Notice of Hearing and docket the contested case at SOAH pursuant to §1.20 of this title.",
            "sourceNote": "Source Note: The provisions of this §1.14 adopted to be effective January 1, 2019, 43 TexReg 8126."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193480&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "193480",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.20",
                "label": "Docketing Oral and Written Submission Hearings"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209183&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "209183",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Selecting oral or written submission hearings. A hearing at SOAH may be conducted orally or by written submission. Before docketing the case at SOAH, the Tax Hearings Attorney assigned to the case will request that each party select either an oral hearing or a written submission hearing. If any party selects an oral hearing, the parties must agree to at least three potential oral hearing dates before the case is docketed at SOAH. If no party selects an oral hearing, the hearing will be by written submission.(b) Docketing. After the type of hearing has been determined pursuant to subsection (a) of this section, the AHS will file a Request to Docket Case form with SOAH that conforms to the SOAH Rules of Procedure (see 1 TAC §155.53). The form shall state whether the hearing is to be conducted orally or by written submission. If the hearing is to be conducted orally, the AHS will provide the agreed potential oral hearing dates with the Request to Docket Case form.(c) SOAH jurisdiction. SOAH acquires jurisdiction after the Request to Docket Case form has been filed (see 1 TAC §155.51).(d) Notice of hearing. After SOAH has docketed a case, the AHS will prepare a Notice of Hearing to all parties in accordance with Government Code, §2001.051 and §2001.052, and 1 TAC §155.401. The Notice of Hearing will incorporate the SOAH hearing number and, if the hearing is to be conducted orally, the date and time of the oral hearing. The AHS will file with SOAH and serve on all parties the Notice of Hearing and copies of all pleadings served on the agency by the taxpayer and on the taxpayer by the agency, including, but not limited to, the Statement of Grounds, Position Letter, Reply, any Response, and any exhibits or attachments to those pleadings. The AHS may also file and serve with the Notice of Hearing any additional exhibits that it intends to offer at the hearing.(e) Additional filings. Additional pleadings, exhibits, and other documents offered by any party must be filed and served in accordance with the SOAH Rules of Procedure and any orders issued by the ALJ.(f) Motions to convert. After SOAH acquires jurisdiction, any party may file a motion to convert an oral hearing to a written submission hearing, or convert a written submission hearing to an oral hearing, according to the SOAH Rules of Procedure.",
            "sourceNote": "Source Note: The provisions of this §1.20 adopted to be effective January 1, 2019, 43 TexReg 8126."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209183&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "209183",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.21",
                "label": "Cigarette, E-cigarette, Cigar, and Tobacco Tax Hearings"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193482&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "193482",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Initiating a hearing. A permit holder that receives a written notice of a violation of Health and Safety Code, §161.0901, as provided in §3.1204 of this title (relating to Administrative Remedies for Violations of Health and Safety Code, Chapter 161, Subchapter H or K), may file a written request for a hearing on or before the 20th day after the date on the written notice of violation. A hearing request must be sent by mail to the address shown on the notice of violation. A hearing request is considered submitted by the date-stamp affixed by the agency mail room.(b) A hearing pursuant to Health and Safety Code, §161.0901 shall be conducted in accordance with the relevant portions of §§1.1 - 1.35 of this title (relating to Rules of Practice and Procedure), except that §§1.10 - 1.14 of this title (relating to Requesting a Hearing; Statement of Grounds; Preliminary Conference; Position Letter; Taxpayer's Acceptance or Rejection of Position Letter, and Reply to Position Letter; and The Administrative Hearings Section's Response to the Reply to the Position Letter) shall not apply. After a hearing is requested, AHS will file a Request to Docket Case form with SOAH, as provided in §1.20 of this title (relating to Docketing Oral and Written Submission Hearings). Unless otherwise required by law, service of the Notice of Hearing shall be made in the manner required by Government Code, Chapter 2001.",
            "sourceNote": "Source Note: The provisions of this §1.21 adopted to be effective January 1, 2019, 43 TexReg 8126; amended to be effective June 8, 2022, 47 TexReg 3270."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193482&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "193482",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.22",
                "label": "Discovery"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193483&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "193483",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Discovery conducted during a contested case does not modify Tax Code recordkeeping or disclosure requirements. The Tax Code requires a taxpayer to maintain and produce contemporaneous records and supporting documents appropriate to the tax or fee for which the taxpayer is responsible. A taxpayer is required to produce documents and information concerning the transactions in question to substantiate and enable verification of the taxpayer's contentions concerning the amount of tax, penalty, or interest to be assessed, collected, or refunded in a contested case. Nothing in this section modifies any statute or any section of this title requiring a taxpayer to keep records and documentation, or to provide information to the comptroller. General Tax Code sections governing a taxpayer's obligations to maintain or produce records and documents include, but are not limited to, Tax Code, §111.0041 (\"Records; Burden to Produce and Substantiate Claims\") and Tax Code, §111.105 (\"Tax Refund; Hearing\"). The Tax Code may also impose a duty to keep records or provide information specific to a certain tax or fee; see, for example, Tax Code, §171.205 (\"Additional Information Required by Comptroller,\" relating to franchise tax) and Tax Code, §151.025 (\"Records Required to Be Kept,\" relating to sales tax).(b) Informal exchange of information encouraged. Before SOAH acquires jurisdiction over a contested case (see 1 TAC §155.51), the parties are encouraged to informally request and exchange documents and other information to narrow and define the disputed issues and reach an agreed resolution of the contested case before the case is docketed at SOAH. See §1.31 of this title (relating to Resolution Agreements).(c) Formal discovery. Discovery in a contested case may begin when SOAH acquires jurisdiction. See 1 TAC §155.251(a) and §1.20 of this title (relating to Docketing Oral and Written Submission Hearings). Discovery shall be conducted under the SOAH Rules of Procedure governing discovery. See 1 TAC §§155.251, 155.253, 155.255, 155.257, and 155.259.",
            "sourceNote": "Source Note: The provisions of this §1.22 adopted to be effective January 1, 2019, 43 TexReg 8126."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193483&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "193483",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.23",
                "label": "Consolidated and Joint Hearings; Severance"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193484&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "193484",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A party may request that the ALJ consolidate or join two or more cases docketed at SOAH. See §1.20 of this title (relating to Docketing Oral and Written Submission Hearings). Hearings may be consolidated or joined if they involve the same taxpayer, or if they involve more than one taxpayer with common issues of law or fact, when a consolidated or joint hearing will promote the fair and efficient handling of the matters. See 1 TAC §155.155(c). The ALJ may issue an order consolidating or joining the cases absent a request by a party and without prior notice to the parties. Consolidation or joinder may not be ordered where the result would be the release of confidential taxpayer information to another taxpayer who is not otherwise entitled to the information in violation of Government Code, §2003.104 (Confidentiality of Tax Hearing Information), Tax Code, §111.006 (Confidentiality of Information), or any other statutory provision protecting confidential taxpayer information.(b) Where two or more cases have been consolidated or joined for purposes of hearing, a party may request that the ALJ sever the cases. The ALJ may issue an order severing the cases if separate hearings will promote the fair and efficient handling of the matters.",
            "sourceNote": "Source Note: The provisions of this §1.23 adopted to be effective January 1, 2019, 43 TexReg 8126."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193484&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "193484",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.24",
                "label": "Interested Parties"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193485&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "193485",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Any person who has a direct pecuniary interest in the resolution of a contested case may request to be admitted as an interested party with the agreement of all parties. Such persons must submit the request to the Tax Hearings Attorney assigned to the case. The Tax Hearings Attorney will transmit the request to the parties of record, and if the case is docketed at SOAH, to the assigned ALJ. If admitted, the interested party's participation will be limited to the extent of the party's interest.",
            "sourceNote": "Source Note: The provisions of this §1.24 adopted to be effective January 1, 2019, 43 TexReg 8126."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193485&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "193485",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.25",
                "label": "Nonbinding Nature of Agreed Facts"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193486&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "193486",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "By the use of the Position Letter and the Reply to it, or by means of agreed facts or stipulated facts, the parties are encouraged to narrow their disagreements prior to hearing. Stipulated facts are for purposes of resolution of the contested case before the agency only, and no party is bound by them thereafter.",
            "sourceNote": "Source Note: The provisions of this §1.25 adopted to be effective January 1, 2019, 43 TexReg 8126."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193486&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "193486",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.26",
                "label": "Burden and Standard of Proof in Contested Cases"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193487&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "193487",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) General rule. Pursuant to Tax Code, §111.0041, the taxpayer must produce contemporaneous records and supporting documentation appropriate to the tax or fee for the transactions in question to substantiate and enable verification of the taxpayer's claim related to the amount of tax, penalty, or interest to be assessed, collected, or refunded.(b) The AHS has the burden to prove by clear and convincing evidence:(1) liability for the additional penalty under Tax Code, §111.061(b); and(2) personal liability for fraudulent tax evasion under Tax Code, §111.0611.(c) The taxpayer has the burden to prove by clear and convincing evidence that the taxpayer or a transaction qualifies for an exemption or a deduction tantamount to an exemption.(d) The AHS has the burden to prove by a preponderance of the evidence that an exclusion from an exemption applies.(e) In all other cases, the taxpayer has the burden of proof by a preponderance of the evidence.",
            "sourceNote": "Source Note: The provisions of this §1.26 adopted to be effective January 1, 2019, 43 TexReg 8126."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193487&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "193487",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.30",
                "label": "Settlement in a Contested Case Based on Insolvency"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193488&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "193488",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Insolvent--The taxpayer's liabilities exceed the taxpayer's assets or the taxpayer is unable to pay the taxpayer's debts as they become due.(2) Insolvency settlement--Settlement based on Tax Code, §111.102 made in the contested case process.(b) Eligibility for insolvency settlement. The comptroller may settle a claim for a tax, penalty, or interest imposed by Tax Code, Title 2, State Taxation, only if the taxpayer proved by a preponderance of evidence that:(1) collection of the total amount due would make the taxpayer insolvent and the taxpayer has submitted all financial records including income tax reports and an inventory of all property owned, wherever located; or(2) the taxpayer has no property that may be seized by the courts of this or another state or the value of the taxpayer's property is less than the total amount due and the amount of debts against the property; and the taxpayer:(A) is insolvent;(B) is in liquidation; or(C) has ceased to do business.(c) An insolvency settlement proposal must be submitted in a redetermination proceeding after a hearing number has been assigned and before a notice of hearing has been issued.(d) The insolvency settlement proposal must specify the basis of eligibility for an insolvency settlement and propose specific settlement terms, including the total amount to be paid and the terms of any payment plan.(e) The insolvency settlement proposal must include copies of the following documents, which will be treated as confidential taxpayer information pursuant to Tax Code, §111.006:(1) all federal income tax returns from the year immediately prior to the date of assessment to the most recent federal income tax return;(2) financial statements from the year immediately prior to the date of assessment to the year of the most recent federal income tax return, and year-to-date financial statements for the period following the taxpayer's most recent federal income tax return;(3) bank statements for the six months immediately prior to the date of the insolvency settlement request; and(4) documentation of assets (including inventory of all property owned, wherever located), liabilities, ongoing financial obligations, and proof of any claimed insolvency, liquidation, or business cessation.(f) If the comptroller does not accept a taxpayer's insolvency settlement proposal, the taxpayer may request that the comptroller refer the matter to SOAH. The comptroller will refer to SOAH only factual disputes regarding whether the taxpayer met the insolvency requirements stated in subsection (b) of this section, whether the settlement request met the specificity of offer requirements of subsection (d) of this section, and whether the settlement request met the documentation requirements of subsection (e) of this section. The comptroller will not include the amount, payment schedule, or other terms of a proposed settlement agreement in a Notice of Hearing. The parties retain discretion to reach agreement on the specific terms of a proposed settlement agreement, and discretion to decline to enter into a proposed settlement agreement, notwithstanding any recommendations on settlement contained in a proposal for decision.(g) The comptroller may consider all relevant factors in determining whether to enter into an insolvency settlement agreement, including but not limited to:(1) whether an additional penalty has been assessed under Tax Code, §111.061(b);(2) whether the taxpayer is liable for outstanding amounts in other periods or in other taxes;(3) whether the taxpayer has complied with the terms of previous resolution agreements;(4) whether the assessment includes tax collected but not remitted;(5) whether the settlement may hinder collection of the amounts owed from other parties who may also be liable for the amounts owed pursuant to Tax Code, §§111.016, 111.0611, 111.020, 111.024, and 171.255, or other law;(6) whether the taxpayer is out of business;(7) whether the taxpayer has started a new business; and(8) whether the taxpayer has previously entered into an insolvency settlement.",
            "sourceNote": "Source Note: The provisions of this §1.30 adopted to be effective January 1, 2019, 43 TexReg 8126."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193488&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "193488",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.31",
                "label": "Resolution Agreements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193489&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "193489",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If the parties agree on a resolution of all contentions, the agency may agree to sign a resolution agreement.(b) A resolution agreement is an agreement between all parties to adjust, or compromise and settle, a taxpayer's tax, credit, refund, penalties, interest, or any other issue in a contested case. The resolution agreement:(1) must be in writing and signed by all parties;(2) must either specify any agreed tax adjustments, if specific adjustments are agreed, or state the amount of tax due or the amount of refund due as a result of the agreement;(3) must either specify any waivers of applicable penalty or interest, if specific adjustments are agreed, or state the amount of penalty or interest due as a result of the agreement; and(4) must include the taxpayer's withdrawal of hearing request, an acknowledgment that the contested case is resolved, and a statement that no comptroller's decision will issue.(c) The following procedures will be used to document the resolution agreement and end the contested case.(1) Based on standard resolution agreement forms approved by the agency, agency staff will draft the resolution agreements to include all agreed terms and provide a copy to all parties for signature.(2) The resolution agreement may refer to and incorporate one or more exhibits showing the specific adjustments to be made to the taxpayer's account.(3) The resolution agreement will be effective and binding on the parties on the date it has been signed by all parties, subject to any amendments pursuant to paragraph (7) of this subsection. The comptroller may delegate signature authority to appropriate agency staff for the purpose of signing resolution agreements.(4) After the resolution agreement is signed by all parties, agency staff will adjust the liability, credit, or refund as required by the resolution agreement.(5) After adjustments required by the resolution agreement are made, agency staff will provide to all parties a copy of the signed agreement and a statement of account reflecting the adjustments made.(6) The resolution agreement will either provide a specific due date to remit any amounts due from the taxpayer, as required by the agreement, or provide that the remittal due date is no later than 30 days after the date of the statement of account.(7) If, after the resolution agreement is signed by all parties, the parties determine and agree that the adjusted tax, credit, refund, penalties, or interest as stated in the resolution agreement was calculated in error or contrary to the parties' intent, the parties may sign an amendment to the resolution agreement. The Tax Hearings Attorney assigned to the case will prepare an amendment that correctly effectuates the parties' intent and will provide it to the taxpayer for approval and signature.(d) After a contested case has been assigned a hearing number, a taxpayer may request the assigned Tax Hearings Attorney refer the contested case to appropriate comptroller personnel for potential resolution. The agency retains sole discretion to grant or refuse the request. While a case is under consideration for potential resolution, all deadlines under the comptroller's rules of practice and procedure may be suspended.",
            "sourceNote": "Source Note: The provisions of this §1.31 adopted to be effective January 1, 2019, 43 TexReg 8126."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193489&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "193489",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.32",
                "label": "Dismissal of Case"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193490&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "193490",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Grounds. The grounds for a motion to dismiss include, but are not limited to:(1) a resolution agreement under §1.31 of this title (relating to Resolution Agreements);(2) a taxpayer's failure to respond to the Position Letter;(3) a taxpayer's want of prosecution;(4) a taxpayer's failure to state a contested case issue for which relief can be granted;(5) a taxpayer's claims are moot because the comptroller has granted the relief requested;(6) a taxpayer's claims are moot because a bankruptcy court has issued a judgment or order disposing of the claims; and(7) a taxpayer's claims for the same tax and the same period are pending in a court.(b) Procedure for filing a motion to dismiss.(1) A motion to dismiss must be filed with the Office of Special Counsel for Tax Hearings, in accordance with §1.5 of this title (relating to Filing Documents with SOAH or the Office of Special Counsel for Tax Hearings), if:(A) the comptroller has not docketed the case with SOAH; or(B) the ALJ has issued a proposal for decision and the exceptions period has ended.(2) A motion to dismiss must be filed with SOAH, in accordance with SOAH Rules of Procedure, if SOAH has docketed the case and the case is under the jurisdiction of SOAH. Refer to SOAH Rules of Procedure, 1 TAC §155.51 (Jurisdiction) for additional guidance.(3) The comptroller will act on a motion to dismiss filed under paragraph (1) of this subsection by issuing a decision or order. Refer to §1.34 of this title (relating to Comptroller's Decisions and Orders) for additional guidance.(c) Reply to a motion to dismiss.(1) A reply, if any, to a motion to dismiss filed under subsection (b)(1) of this section must be filed with the Office of Special Counsel for Tax Hearings no later than 14 days after the date the motion is served on the taxpayer.(2) A reply, if any, to a motion to dismiss filed under subsection (b)(2) of this section must be filed with SOAH in accordance with SOAH Rules of Procedure.",
            "sourceNote": "Source Note: The provisions of this §1.32 adopted to be effective January 1, 2019, 43 TexReg 8126."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193490&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "193490",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.33",
                "label": "Proposal for Decision and Exceptions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193491&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "193491",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "After the ALJ closes the record, the ALJ will issue a proposal for decision. Any party may file exceptions to the proposal for decision within 15 days after the date the proposal for decision is issued. A reply to the exceptions may be filed no later than 15 days after the filing of the exceptions. The ALJ will review exceptions and replies and notify the comptroller and parties whether any changes to the proposal for decision are recommended. For additional information concerning the proposal for decision and exceptions, see 1 TAC §155.507 (relating to Proposals for Decision; Exceptions and Replies).",
            "sourceNote": "Source Note: The provisions of this §1.33 adopted to be effective January 1, 2019, 43 TexReg 8126."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193491&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "193491",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.34",
                "label": "Comptroller's Decisions and Orders"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=221348&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "221348",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) After SOAH returns jurisdiction of a contested case to the agency, the comptroller will review the record, the proposal for decision, and any exceptions and replies, and will issue a decision on the proposal for decision, unless the case is dismissed under §1.32 of this title (relating to Dismissal of Case).(b) If the comptroller determines that additional argument from the parties will be helpful before making a final decision in a contested case, the comptroller will issue an order requesting that the parties submit written briefs on specified contested case issues. Briefs will be limited to the issues identified in the order and arguments addressing any issues not identified in the order will not be considered.(c) The Office of Special Counsel for Tax Hearings will send decisions and orders to the taxpayer's designated representative for notice and the Tax Hearings Attorney assigned to the hearing. Refer to §1.3 of this title (relating to Representation and Participation) for additional guidance.(d) A decision or order is final:(1) if a motion for rehearing is not filed on time, on the expiration of the period for filing a motion for rehearing;(2) if a motion for rehearing is filed on time, on the date:(A) the order overruling the motion for rehearing is signed;(B) the motion is overruled by operation of law; or(3) on the date specified in the decision or order if all parties have agreed in writing or on the record. The agreed date may not be before the date the decision or order is signed.(e) A party may file a statement that it waives its right to file a motion for rehearing. Refer to §1.5 of this title (relating to Filing Documents with SOAH or the Office of Special Counsel for Tax Hearings).(f) If the comptroller grants a motion for rehearing, the decision or order is vacated and the comptroller will issue a new decision or order on rehearing.",
            "sourceNote": "Source Note: The provisions of this §1.34 adopted to be effective January 1, 2019, 43 TexReg 8126."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=221348&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "221348",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
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            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.35",
                "label": "Motion for Rehearing"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137005&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137005",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definition. A motion for rehearing is a request to the comptroller from a party in a contested case to reconsider part or all of a decision or order. The motion may or may not result in an additional hearing.(b) Contents of a motion for rehearing.(1) Government Code, §2001.146(g) provides that a motion for rehearing must identify with particularity findings of fact or conclusions of law that are the subject of the complaint and any evidentiary or legal ruling claimed to be erroneous.(2) Government Code, §2001.146(g) further provides that a motion for rehearing must also state the legal and factual basis for the claimed error.(3) Tax Code, §112.201(a) requires a motion for rehearing of a redetermination to identify the disputed amounts associated with the grounds of error raised.(4) Tax Code, §111.105(d) requires a motion for rehearing on a tax refund claim to assert each specific ground of error and state the amount of the refund sought.(c) Deadline to file a motion for rehearing. A motion for rehearing must be filed no later than 25 days after the comptroller's decision is signed. The comptroller will state the 25-day deadline to file a motion for rehearing on the first page of the comptroller's decision. For contested case purposes, the comptroller will consider a motion for rehearing timely if it is filed by the motion for rehearing deadline stated on the comptroller's decision.(d) Additional time to file a motion for rehearing.(1) Motion for extension of time. A motion to extend the time to file a motion for rehearing or reply must be filed with the Office of Special Counsel for Tax Hearings in accordance with §1.5 of this title (relating to Filing Documents with SOAH or the Office of Special Counsel for Tax Hearings) no later than five days after the deadline to file the motion or reply. Government Code, §2001.146(e) gives the comptroller the authority to act on the motion not later than the 10th day after the original deadline. If a motion is timely and properly filed, the comptroller shall issue an order granting or denying the motion. If the comptroller has not timely acted on the motion, the motion is considered overruled.(2) Failure to receive notice. Government Code, §2001.142 establishes a procedure to revise the motion for rehearing period if a party did not receive notice or acquire actual knowledge of a signed decision before the 15th day after the date the decision is signed. A party may file a sworn motion to revise the period for filing a motion for rehearing. The motion must be filed with the Office of Special Counsel for Tax Hearings in accordance with §1.5 of this title. If the comptroller does not issue an order granting or denying the motion by the 10th day after the motion is received, the motion is considered granted by operation of law.(e) Calculation of due dates. Refer to §1.4 of this title (relating to Computation of Time) for guidance related to the calculation of due dates.(f) Determining the date that a document is filed. Refer to §1.5 of this title for guidance related to determining the date a document is filed.(g) Filing information for the Office of Special Counsel for Tax Hearings. The motions and replies described in this section must be filed with the Office of Special Counsel for Tax Hearings, in accordance with the requirements set out in §1.5 of this title.(h) Requirement to serve other parties. A copy of the motion or reply must be sent to other parties on the same date the motion or reply is filed with the Office of Special Counsel for Tax Hearings. Refer to §1.6 of this title (relating to Service of Documents on Parties) for additional guidance.(i) Reply to a motion for rehearing. A party may file a reply to a motion for rehearing, but a reply is not required. The reply must be filed no later than the 40th day after the date the decision is signed.(j) Action on a motion for rehearing.(1) The comptroller is not required to act on a motion for rehearing. If the comptroller does not timely act to grant the motion for rehearing, the motion for rehearing is overruled by operation of law the 55th day after the decision was signed. If the comptroller grants an extension to file a motion for rehearing and does not timely act to grant the motion for rehearing, the motion for rehearing is overruled by operation of law the 100th day after the decision was signed.(2) If the comptroller acts on a motion for rehearing, the comptroller will send a written order granting or denying a rehearing to each party's designated representative for notice. An order granting a motion for rehearing may or may not include the comptroller's decision upon rehearing.(k) Finality. If a motion for rehearing is overruled, whether by order or operation of law, the comptroller's decision is final on the date the motion is overruled.",
            "sourceNote": "Source Note: The provisions of this §1.35 adopted to be effective January 1, 2019, 43 TexReg 8126; amended to be effective October 31, 2024, 49 TexReg 8589."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137005&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137005",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.72",
                "label": "Protests of Agency Purchases"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=181517&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "181517",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The following words and terms, when used in this subchapter, shall have the following meaning unless the context clearly indicates otherwise.(1) Agency--The Office of the Comptroller of Public Accounts.(2) Comptroller--Comptroller of Public Accounts.(3) Deputy Comptroller--Deputy Comptroller of Public Accounts.(4) Director of Agency Administration--Director of Agency Administration Division of the Comptroller of Public Accounts.(5) General Counsel--General Counsel of the Comptroller of Public Accounts.(6) Interested parties--All vendors who have submitted bids or proposals for the provision of goods or services pursuant to a contract with the Comptroller of Public Accounts.(b) Any actual or prospective bidder, offeror, or contractor who considers himself to have been aggrieved in connection with the agency's solicitation, evaluation, or award of a contract may formally protest to the Director of Agency Administration. Such protests must be made in writing and received in the office of the Director of Agency Administration within 10 working days after the protesting party knows, or should have known, of the occurrence of the action that is protested. Formal protests must conform to the requirements of this subsection and subsection (d) of this section, and will be resolved through use of the procedures that are described in subsections (e) through (i) of this section. The protesting party must mail or deliver copies of the protest to the agency and other interested parties.(c) In the event of a timely protest under this section, the agency will not proceed further with the solicitation or award of the contract unless the Deputy Comptroller, after consultation with the using division and the Director of Agency Administration, makes a written determination that the contract must be awarded without delay, to protect the best interests of the agency.(d) A formal protest must be sworn and contain:(1) a specific identification of the statutory or regulatory provision that the protesting party alleges has been violated;(2) a specific description of each action by the agency that the protesting party alleges to be a violation of the statutory or regulatory provision that the protesting party has identified pursuant to paragraph (1) of this subsection;(3) a precise statement of the relevant facts;(4) a statement of any issues of law or fact that the protesting party contends must be resolved;(5) a statement of the argument and authorities that the protesting party offers in support of the protest; and(6) a statement that copies of the protest have been mailed or delivered to the agency and all other identifiable interested parties.(e) The Director of Agency Administration may settle and resolve the dispute over the solicitation or award of a contract at any time before the matter is submitted on appeal to the General Counsel of the agency. The Director of Agency Administration may solicit written responses to the protest from other interested parties.(f) If the protest is not resolved by mutual agreement, the Director of Agency Administration will issue a written determination that resolves the protest.(1) If the Director of Agency Administration determines that no violation of statutory or regulatory provisions has occurred, then the director shall inform the protesting party, the agency, and other interested parties by letter that sets forth the reasons for the determination.(2) If the Director of Agency Administration determines that a violation of any statutory or regulatory provisions has occurred in a situation in which a contract has not been awarded, then the director shall inform the protesting party, the agency, and other interested parties of that determination by letter that details the reasons for the determination and the appropriate remedy.(3) If the Director of Agency Administration determines that a violation of any statutory or regulatory provisions has occurred in a situation in which a contract has been awarded, then the director shall inform the protesting party, the agency, and other interested parties of that determination by letter that details the reasons for the determination. This letter may include an order that declares the contract void.(g) The protesting party may appeal a determination of a protest by the Director of Agency Administration to the General Counsel of the agency. An appeal of the director's determination must be in writing and received in the office of the agency's General Counsel by not later than 10 working days after the date on which the director has sent written notice of his determination. The scope of the appeal will be limited to review of the director's determination. The protesting party must mail or deliver to the agency and all other interested parties a copy of the appeal, which must contain a certified statement that such copies have been provided.(h) The General Counsel may refer the matter to the Deputy Comptroller for consideration or may issue a written decision that resolves the protest.(i) The following requirements shall apply to a protest that the General Counsel refers to the Deputy Comptroller.(1) The General Counsel will deliver copies of the appeal and any responses by interested parties to the Deputy Comptroller.(2) The Deputy Comptroller may consider any documents that agency staff or interested parties have submitted.(3) The Deputy Comptroller will issue a written letter of determination of the appeal, to the parties which shall be final.(A) A protest or appeal that is not filed timely will not be considered unless good cause for delay is shown or the Deputy Comptroller determines that an appeal raises issues that are significant to agency procurement practices or procedures in general.(B) A written decision that either the Deputy Comptroller or the General Counsel has issued shall be the final administrative action of the agency.(j) The agency will maintain all documentation on the purchasing process that is the subject of a protest or appeal in accordance with the agency's retention schedule.",
            "sourceNote": "Source Note: The provisions of this §1.72 adopted to be effective November 29, 2001, 26 TexReg 9630; amended to be effective June 30, 2008, 33 TexReg 5024."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=181517&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "181517",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§1.73",
                "label": "Exemption From Vehicle Inscription Requirement"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=194111&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "194111",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) State-owned motor vehicles under the control and custody of the comptroller shall be exempt from the inscription requirement in Transportation Code, §721.002 if used primarily for:(1) civil or criminal investigations or enforcement; or(2) transportation of the comptroller or deputy comptroller.(b) The purposes of this new section are to provide secure transportation necessary for statewide oversight, management and supervision of the comptroller's office, and to increase the effectiveness of civil and criminal investigations and enforcement by enabling investigators and enforcement personnel to accomplish their tasks undetected.",
            "sourceNote": "Source Note: The provisions of this §1.73 adopted to be effective December 11, 2016, 41 TexReg 9741."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=194111&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "194111",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "B",
                "label": "MISCELLANEOUS NON-TAX REPORTING AND REMITTANCE REQUIREMENTS"
            },
            "rule": {
                "number": "§1.100",
                "label": "Fines Retained by Municipalities and Counties for Certain Enforcement Expenses"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=194112&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "194112",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "In each fiscal year, a municipality or county that engages in enforcement under Transportation Code, Chapter 644 (Commercial Motor Vehicle Safety Standards) may retain fines collected from such enforcement in an amount not to exceed 110% of the municipality or county's actual expenses for enforcement of that chapter in the preceding fiscal year, as determined by the comptroller after reviewing the most recent municipal audit conducted under Local Government Code, §103.001 (Annual Audit; Financial Statement) or the most recent county audit conducted under Local Government Code, Chapter 115 (Audit of County Finances). If the most recent audit does not reflect actual expenses incurred by the municipality or county for the enforcement of Chapter 644, the municipality or county may retain fines in an amount not to exceed 110% of the amount the comptroller estimates would be the municipality or county's actual enforcement expenses during the year.",
            "sourceNote": "Source Note: The provisions of this §1.100 adopted to be effective February 18, 2019, 44 TexReg 709."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=194112&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "194112",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "B",
                "label": "MISCELLANEOUS NON-TAX REPORTING AND REMITTANCE REQUIREMENTS"
            },
            "rule": {
                "number": "§1.101",
                "label": "Reporting Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=194113&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "194113",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A municipality or county that retains a fine in accordance with §1.100 of this title (relating to Fines Retained by Municipalities and Counties for Certain Enforcement Expenses) shall, on an annual basis and no later than 60 days following the end of the most recently completed fiscal year, submit to the comptroller via mail or upload to the comptroller's Internet website a report that details the amount of fines retained, the actual expenses claimed by the municipality or county in connection with the enforcement of Transportation Code, Chapter 644 (Commercial Motor Vehicle Safety Standards) during the previous fiscal year (or estimated expenses anticipated, if applicable), and any other information determined by the comptroller to be necessary for implementation and enforcement of this section. The municipality or county must submit the report in the manner and format prescribed by this section.(b) The comptroller shall provide the form of report to be submitted by a municipality or county under this section, which may include a supplemental worksheet itemizing estimated or actual costs attributable to enforcement activities conducted under Transportation Code, Chapter 644. Copies of the form may be obtained from the Comptroller of Public Accounts, P.O. Box 13528, Austin, Texas 78711-3528, or downloaded from the comptroller's website at COMPTROLLER.TEXAS.GOV. Copies may also be requested by calling the comptroller's toll-free number, 1-800-531-5441, extension 34276. The comptroller may update the form as needed.(c) The report to be submitted by a municipality or county under this section must include the following information for the fiscal year covered by the report:(1) the total amount of actual expenses incurred (or estimated expenses anticipated, if applicable) by the municipality or county for the enforcement of Transportation Code, Chapter 644;(2) the total amount of fines collected by the municipality or county from the enforcement of Transportation Code, Chapter 644;(3) the amount of fines retained by the municipality or county in accordance with §1.100 of this title;(4) the amount of proceeds of all fines exceeding the limit imposed under §1.100 of this title, to be delivered to the comptroller for deposit to the credit of the Texas Department of Transportation in accordance with Transportation Code, §644.102(f) (Municipal and County Enforcement Requirements);(5) a copy of the municipal audit conducted under Local Government Code, §103.001 (Annual Audit; Financial Statement), or county audit conducted under Local Government Code, Chapter 115 (Audit of County Finances), as applicable; and(6) any other information deemed necessary by the comptroller for the efficient administration of this section.",
            "sourceNote": "Source Note: The provisions of this §1.101 adopted to be effective February 18, 2019, 44 TexReg 709."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=194113&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "194113",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "B",
                "label": "MISCELLANEOUS NON-TAX REPORTING AND REMITTANCE REQUIREMENTS"
            },
            "rule": {
                "number": "§1.102",
                "label": "Failure to Submit Report"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=194114&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "194114",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A municipality or county that fails to file a report required under this section within 30 days of the filing deadline shall send to the comptroller for deposit to the credit of the Texas Department of Transportation payment in an amount equal to the amount of fines retained by the municipality or county in the fiscal year the report would cover. Amounts owing and unpaid under this subsection shall constitute indebtedness to the state as set forth in Government Code, §403.055 (Payments to Debtors or Delinquents Prohibited), et seq., and the comptroller may take any action authorized by law to recover the debt, which may include referring the matter to the Office of the Attorney General for collection or deducting the amount of indebtedness or delinquency from amounts owed by the state to the municipality or county, as applicable.(b) The comptroller may report any violation or suspected violation of any rule set forth in Division 1, Fines Retained by Municipalities and Counties for Certain Enforcement Expenses, of this subchapter, that the comptroller is authorized to adopt pursuant to Transportation Code, §644.102 (Municipal and County Enforcement Requirements) to the Department of Public Safety.",
            "sourceNote": "Source Note: The provisions of this §1.102 adopted to be effective February 18, 2019, 44 TexReg 709."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=194114&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "194114",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "B",
                "label": "MISCELLANEOUS NON-TAX REPORTING AND REMITTANCE REQUIREMENTS"
            },
            "rule": {
                "number": "§1.103",
                "label": "Requirement to Maintain Records"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210935&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "210935",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A municipality or county required to submit a report under this section shall retain the following records and information for a minimum of four years following the fiscal year covered by the report (regardless of whether such report was filed timely, late, or not at all) and, upon request by the comptroller, shall provide the records and information for the purpose of verifying the entity's compliance with this section:(1) audited financial statements for the four most recent audited accounting years of the municipality or county;(2) regarding revenue: A summary report by fiscal year with a grand total of all fine revenue (both assessed and collected) with a detailed listing of each citation including, but not limited to the following:(A) citation number;(B) receipt number;(C) assessment amount of fine;(D) payment amount of fine;(E) offense date;(F) payment receipt date;(G) defendant/violator name;(H) offense description;(I) offense code;(J) statute reference of offense; and(K) docket number;(3) regarding expenses: A summary report by fiscal year with a grand total of all expenses/costs related to enforcement activities conducted under Transportation Code, Chapter 644 (Commercial Motor Vehicle Safety Standards) and containing a detailed listing including, but not limited to the following:(A) vendor name;(B) invoice number;(C) accounting date;(D) invoice date;(E) personnel costs including wages, salaries, and benefits;(F) account number;(G) account description; and(H) amount of expense.",
            "sourceNote": "Source Note: The provisions of this §1.103 adopted to be effective February 18, 2019, 44 TexReg 709."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210935&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "210935",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "C",
                "label": "ADMINISTRATION"
            },
            "rule": {
                "number": "§1.200",
                "label": "State Employee Family Leave Pool"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226851&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "226851",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Establishment and Purpose. In accordance with Government Code, Chapter 661, Subchapter A-1 (State Employee Family Leave Pool), the comptroller establishes the Employee Family Leave Pool program to provide eligible employees more flexibility in bonding with and caring for children during a child's first year following birth, adoption, or foster placement, and caring for a seriously ill family member or the employee, including pandemic-related illnesses or complications caused by a pandemic.(b) Guidelines.(1) Under the Employee Family Leave Pool, an agency employee may voluntarily transfer sick leave or vacation leave earned by the employee to the family leave pool, and employees may apply for leave time under the family leave pool.(2) The comptroller or deputy comptroller shall designate a pool administrator.(3) The pool administrator will develop procedures and forms as necessary for the administration of the family leave pool.(4) Operation of the family leave pool shall be consistent with Government Code, Chapter 661, Subchapter A-1.",
            "sourceNote": "Source Note: The provisions of this §1.200 adopted to be effective November 21, 2022, 47 TexReg 7745."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226851&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "226851",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "C",
                "label": "ADMINISTRATION"
            },
            "rule": {
                "number": "§1.201",
                "label": "Tuition Reimbursement Program"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90688&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90688",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Establishment and Purpose. The comptroller finds that programs for the training and education of administrators and employees, including tuition reimbursement, materially aid effective state administration, and public money spent on those programs serves an important public purpose. Comptroller designated funds may be used to reimburse employees for job-related training and education expenses, and the comptroller may award time off for job-related training and education. Such expenditures or privileges are at the discretion of the comptroller and should only be made to address current or anticipated needs of the comptroller.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Training--Instruction, or other education received by a comptroller employee that is not normally received by other comptroller employees, and that is designed to enhance the ability of the employee to perform their job. Training includes a course of study at an institution of higher education or a private or independent institution of higher education and may also include nontraditional training, such as online courses or courses not credited towards a degree. (2) Tuition Reimbursement--The reimbursement of a monetary amount preapproved by the comptroller, to a current comptroller employee, after the employee has paid for and successfully completed comptroller preapproved coursework and/or training that addresses current or anticipated needs of the comptroller.(c) Employee Eligibility. To be eligible for tuition reimbursement and/or approved time off during regular work hours, the following requirements must be met:(1) employee must be employed on a full-time basis;(2) employee must have been employed with the comptroller for at least six months; (3) employee must have continued employment for the duration of the course;(4) participation by the employee must be approved by their supervisor and the employee's supervisor must verify that the employee's participation will not disrupt the operations of the agency;(5) the supervisor must verify that the comptroller has sufficient funds to cover the expected costs to be reimbursed and that the training is aligned with the comptroller's needs;(6) the employee should complete any necessary agreements for tuition assistance and any forms for requesting training, and receive approval from agency management prior to the employee beginning the course work;(7) the employee must agree to remain in the employment of the comptroller for a period as further specified by comptroller policy;(8) the employee must agree to repay the comptroller for all expenses for which the employee was reimbursed, if the employee terminates employment before the end of the period specified by comptroller policy; and(9) the employee must complete the course work for which tuition reimbursement is requested and achieve satisfactory performance in the course work as further specified in comptroller policy. Requirements to establish satisfactory completion of course work will be specified in the comptroller tuition reimbursement policy or procedures developed by the agency.(d) Employee Ineligibility. An employee is not eligible for consideration if any of the following applies:(1) the employee is on probation; (2) the employee is the subject of a Human Resources investigation; (3) the employee has received agency discipline within the last 12 months; or(4) the employee's job performance has been rated unsatisfactory in any of the Core Competency categories of the latest employee performance evaluation.(5) Notwithstanding employee discipline or performance status, the comptroller may grant an exception and allow an employee to apply for tuition reimbursement when the employee is requested by the agency to take course work, or the agency has determined that the disciplinary, investigatory, or performance-related issues have been addressed to the satisfaction of the agency. The employee must maintain satisfactory performance through the duration of the course or training program.(e) Course Work During Established Work Hours. The comptroller may establish limits on the amount of time allowed for qualified employees to participate in actual coursework or classes during the employee's normal work hours.(f) Reimbursement; Denial of Request.(1) Tuition reimbursement is always subject to funding availability.(2) The comptroller may establish policies and procedures for requesting reimbursement. At any time, the comptroller may set a cap on the amount of tuition reimbursement. Any cap amounts will be specified in the comptroller tuition reimbursement policy or procedures developed by the agency. (3) Before an employee of the agency may be reimbursed for tuition expenditures, the deputy comptroller must approve the tuition reimbursement payment.(4) Allowable expenses for the training of employees include tuition and educational fees specified in policy or procedures established by the comptroller. The comptroller may specify expenses that are not reimbursable, including without limitation, late fees, installment fees, supplies, travel or commuting expenses, and expenses for classes or courses taken prior to employment with the comptroller's office. (5) The tuition reimbursement program does not include training required either by state or federal law or that is determined necessary by the comptroller and offered to all employees of the comptroller performing similar jobs.(6) An employee does not have a right to reimbursement and/or approved time off for course work, even if the employee meets the qualifications of the tuition reimbursement program. (7) Any decision of the agency to deny a request to attend training or reimburse tuition is final and cannot be appealed.",
            "sourceNote": "Source Note: The provisions of this §1.201 adopted\r\nto be effective November 24, 2025, 50 TexReg 7577."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90688&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90688",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.360",
                "label": "Purpose"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90689&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90689",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "This subchapter governs the negotiation and mediation of certain breach of contract claims asserted by contractors against the agency under Government Code, Chapter 2260.",
            "sourceNote": "Source Note: The provisions of this §1.360 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90689&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90689",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.361",
                "label": "Applicability"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90690&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90690",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) This subchapter does not apply to an action of the agency for which a contractor is entitled to a specific remedy pursuant to state or federal constitution or statute.(b) This subchapter does not apply to a contract action proposed or taken by the agency for which a contractor receiving Medicaid funds under that contract is entitled by state statute or rule to a hearing conducted in accordance with the Government Code, Chapter 2001.(c) This subchapter does not apply to contracts:(1) between the agency and the federal government or its agencies, another state or another nation;(2) between the agency and one or more agencies of state government;(3) between the agency and a local governmental body, or a political subdivision of another state;(4) between a subcontractor and a contractor;(5) that are subject to Transportation Code, §201.112;(6) that are within the exclusive jurisdiction of state or local regulatory bodies;(7) that are within the exclusive jurisdiction of federal courts or regulatory bodies; or(8) that are solely and entirely funded by federal grant monies, other than contracts for a project that is defined in §1.362(10) of this title (relating to Definitions).",
            "sourceNote": "Source Note: The provisions of this §1.361 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90690&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90690",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.362",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90702&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90702",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this subchapter, shall have the following meaning, unless the context clearly indicates otherwise:(1) Agency--The Office of the Comptroller of Public Accounts.(2) Claim--A written demand for damages by the contractor that is based upon the agency's alleged breach of the contract.(3) Comptroller--Comptroller of Public Accounts, the elected official.(4) Contract--A written contract between the agency and a contractor, under the terms of which the contractor agrees to either:(A) provide goods or services, by sale or lease, to or for the agency; or(B) perform a project as defined by Government Code, §2166.001.(5) Contractor--Independent contractor who has entered into a contract directly with the agency. The term does not include:(A) the contractor's subcontractor, officer, employee, agent, or other person who furnishes goods or services to the contractor;(B) an employee of the agency; or(C) a student at an institution of higher education.(6) Counterclaim--A demand by the agency that is based upon the contractor's claim.(7) Day--A calendar day. If an act is required to occur on a Saturday, Sunday, or holiday, then the next working day that is not one of these days is counted as the required day for the purpose of this act.(8) Event--An act or omission, or a series of acts or omissions, that gives rise to a claim. The following list contains illustrative examples of events, subject to the specific terms of the contract:(A) Examples of events in the context of a contract for goods or services:(i) the failure of the agency to timely pay for the goods or services;(ii) the failure of the agency to pay the balance due and owing on the contract price, including amounts that arose from orders for additional work, after deduction of any amount that is owed to the agency for work that has not been performed under the contract or in substantial compliance with the contract terms;(iii) the suspension, cancellation, or termination of the contract;(iv) final rejection wholly or partly of the goods or services that the contractor has tendered;(v) repudiation of the entire contract prior to or at the outset of performance by the contractor;(vi) withholding liquidated damages from final payment to the contractor.(B) Examples of events in the context of a project:(i) the failure of the agency to timely pay the unpaid balance of the contract price following final acceptance of the project;(ii) the failure of the agency to make timely progress payments as required under the contract;(iii) the failure of the agency to pay the balance that is due and owing on the contract price, including amounts that arose from orders for additional work, after deduction of any amount that is owed the agency for work that has not been performed under the contract or in substantial compliance with the contract terms;(iv) the failure to grant time extensions to which the contractor is entitled under the terms of the contract;(v) the failure to compensate the contractor for occurrences for which the contract provides a remedy;(vi) suspension, cancellation or termination of the contract;(vii) rejection by the agency, wholly or partly, of the \"work,\" as defined under the contract, that the contractor has tendered;(viii) repudiation of the entire contract prior to or at the outset of performance by the contractor;(ix) withholding liquidated damages from final payment to the contractor;(x) refusal, in whole or in part, of a written request that the contractor has made in compliance with the contract to adjust the contract price, the contract time, or the scope of work.(C) The lists in subparagraphs (A) and (B) of this paragraph should not be considered exhaustive, but are merely illustrative in nature.(9) Goods--Supplies, materials or equipment.(10) Parties--The contractor that has entered into a contract with the agency, in connection with which a claim of breach of contract has been filed under this subchapter.(11) Project--A building construction project as defined under Government Code, §2166.001, that is financed, wholly or partly, by a specific appropriation, bond issue, or federal money, including the construction of:(A) a building, structure, or appurtenant facility or utility, including the acquisition and installation of original equipment and original furnishing; and(B) an addition to, or alteration, modification, rehabilitation, or repair of, an existing building, structure, or appurtenant facility or utility.(12) Services--The furnishing of skilled or unskilled labor, or of consulting or professional work, or a combination thereof, excluding the labor of an employee of the agency.",
            "sourceNote": "Source Note: The provisions of this §1.362 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90702&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90702",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.363",
                "label": "Prerequisites to Suit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90703&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90703",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The procedures that are contained in this subchapter are exclusive and required prerequisites to suit under Civil Practice & Remedies Code, Chapter 107, and Government Code, Chapter 2260.",
            "sourceNote": "Source Note: The provisions of this §1.363 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90703&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90703",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.364",
                "label": "Sovereign Immunity"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90704&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90704",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "This subchapter does not waive the agency's sovereign immunity to suit or liability.",
            "sourceNote": "Source Note: The provisions of this §1.364 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90704&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90704",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.365",
                "label": "Notice of Claim of Breach of Contract"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90705&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90705",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A contractor who asserts a claim of breach of contract under Government Code, Chapter 2260, must file a notice of the claim as provided under this section.(b) The notice of claim shall:(1) be written and signed by the contractor or the contractor's authorized representative;(2) be delivered by hand, certified mail return receipt requested, or other verifiable delivery service, to the agency officer who is designated in the contract to receive a notice of claim of breach of contract under Government Code, Chapter 2260; if no person is designated in the contract, then the notice shall be delivered to the comptroller; and(3) state in detail:(A) the nature of the alleged breach of contract, including the date of the event that the contractor cites as the basis of the claim and each contractual provision that the contractor alleges has been breached;(B) a description of damages that resulted from the alleged breach, including the amount and method that the contractor has used to calculate those damages; and(C) the legal theory for recovery, including the causal relationship between the alleged breach and the damages that the contractor claims.(c) In addition to the mandatory contents of the notice of claim that are required under subsection (b) of this section, the contractor may submit supporting documentation or other tangible evidence to facilitate the agency's evaluation of the contractor's claim.(d) The notice of claim shall be delivered not later than 180 days after the date of the event that the contractor cites as the basis of the claim.",
            "sourceNote": "Source Note: The provisions of this §1.365 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90705&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90705",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.366",
                "label": "Agency Counterclaim"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90711&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90711",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) To assert a counterclaim under Government Code, Chapter 2260, the agency shall file a notice of the counterclaim as provided under this section.(b) The notice of counterclaim shall:(1) be written;(2) be delivered by hand, certified mail return receipt requested, or other verifiable delivery service to the contractor or representative of the contractor who signed the notice of claim of breach of contract; and(3) state in detail:(A) the nature of the counterclaim; and(B) a description of the damages or offsets that the agency seeks, including the amount and method that the agency has used to calculate those damages or offsets; and(C) the legal theory for recovery under the counterclaim.(c) In addition to the mandatory contents of the notice of counterclaim that are required under subsection (b) of this section, the agency may submit documentation or other tangible evidence to aid the contractor's evaluation of the agency's counterclaim.(d) The notice of counterclaim shall be delivered to the contractor not later than 90 days after the agency's receipt of the contractor's notice of claim.(e) Nothing herein precludes the agency from initiation of a lawsuit for damages against the contractor.",
            "sourceNote": "Source Note: The provisions of this §1.366 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90711&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90711",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.367",
                "label": "Request for Voluntary Disclosure of Additional Information"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90712&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90712",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A party who files a claim or counterclaim may request the other party for an opportunity to review and copy information that is in the possession or custody or subject to the control of the other party and that pertains to the contract that is the subject of the claim or counterclaim including, without limitation, the following types of information:(1) accounting records;(2) correspondence, including, without limitation, correspondence between the agency and outside consultants who assisted in the preparation of the bid solicitation or any part thereof, or in the administration of the contract, and correspondence between the contractor and its subcontractors, material men, and vendors;(3) schedules;(4) the parties' internal memoranda;(5) documents that the contractor created in preparation of the contractor's offer to the agency, and documents that the agency created in analysis of the offers that the agency received in response to the solicitation.(b) Subsection (a) of this section applies to all information that a party possesses, regardless of the manner in which the information is recorded, including, without limitation, paper and electronic media.(c) The contractor and the agency may seek additional information directly from third parties, including, without limitation, the agency's third-party consultants and the contractor's subcontractors.(d) Nothing in this section requires any party to disclose the requested information or any matter that is privileged under Texas law.(e) Material that is submitted pursuant to this subsection and that the contractor claims is confidential shall be handled pursuant to the requirements of Chapter 552, Government Code.",
            "sourceNote": "Source Note: The provisions of this §1.367 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90712&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90712",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.368",
                "label": "Duty to Negotiate"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90713&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90713",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The parties shall negotiate in accordance with the timetable that is described in §1.369 of this title (relating to Timetable) in attempt to resolve all claims and counterclaims.(b) No party is obligated to settle with the other party as a result of the negotiation.",
            "sourceNote": "Source Note: The provisions of this §1.368 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90713&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90713",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.369",
                "label": "Timetable"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90706&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90706",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Following the agency's receipt of a contractor's notice of claim, the comptroller or a designated representative shall review the contractor's claim and the agency's counterclaim, if any, and begin negotiations with the contractor in attempt to resolve the claim and any counterclaim.(b) Except as subsection (c) of this section provides, the parties shall begin negotiations within a reasonable period of time, not later than 60 days following the later of:(1) the date of termination of the contract;(2) the completion date, or substantial completion date in the case of construction projects, in the original contract; or(3) the date on which the agency receives the contractor's notice of claim.(c) The agency may delay negotiations until after the 180th day following the date of the event that gives rise to the contractor's claim, by delivery of written notice to the contractor that states that the commencement of negotiations will be delayed and when the agency will be ready to begin negotiations.(d) The parties may conduct negotiations according to an agreed schedule, as long as they begin negotiations no later than the deadlines that are described in subsections (b) or (c) of this section, whichever applies.(e) Subject to subsection (f) of this section, the parties shall complete the negotiations that are described in this subchapter as a prerequisite to a contractor's request for a contested case hearing and no later than 270 days after the agency receives the contractor's notice of claim.(f) On or before the 270th day after the agency receives the contractor's notice of claim, the parties may agree in writing to extend the time for negotiations. The agreement shall be signed by representatives of the parties who have authority to bind each respective party, and shall provide for the extension of the statutory negotiation period until a date certain. The parties may enter into a series of written extension agreements that comply with the requirements of this section.(g) After the 270th day following the agency's receipt of the contractor's notice of claim or upon the expiration of any extension to which the parties agree under subsection (f) of this section, the contractor may request a contested case hearing before the State Office of Administrative Hearings (SOAH) pursuant to §1.374 of this title (relating to Request for Contested Case Hearing).(h) The parties may agree to mediate the dispute at any time before the 270th day following the agency's receipt of the contractor's notice of claim or before the expiration of any extension to which the parties agree pursuant to subsection (f) of this section. The mediation shall be governed by §§1.375-1.384 of this title (relating to Negotiation and Mediation of Contract Disputes).(i) Nothing in this section is intended to prevent the parties from their agreement to commence negotiations earlier than the deadlines that are described in subsections (b) and (c) of this section, or from their continuation or resumption of negotiations after the contractor requests a contested case hearing before SOAH.",
            "sourceNote": "Source Note: The provisions of this §1.369 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90706&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90706",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.370",
                "label": "Conduct of Negotiation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90707&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90707",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Negotiation is a consensual bargaining process in which the parties attempt to resolve a claim and counterclaim. A negotiation under this subchapter may be conducted by any method, technique, or procedure that is authorized under the contract or upon which the parties agree, including, without limitation, negotiation in person, by telephone, by correspondence, by video conference, or by any other method that permits the parties to identify their respective positions, discuss their respective differences, confer with their respective advisers, exchange offers of settlement, and settle.(b) The parties may conduct negotiations with the assistance of one or more neutral third parties. If the parties choose to mediate their dispute, the mediation shall be conducted in accordance with §§1.375-1.384 of this title (relating to Negotiation and Mediation of Contract Disputes). Parties may choose an assisted negotiation process other than mediation, including, without limitation, processes such as those that are described in §§1.385-1.387 of this title (relating to Negotiation and Mediation of Contract Disputes).(c) To facilitate the meaningful evaluation and negotiation of the claim and any counterclaim, the parties may exchange relevant documents that support their respective claims, defenses, counterclaims, or positions.(d) Material that is submitted pursuant to this section that the contractor claims is confidential shall be handled pursuant to the requirements of Chapter 552, Government Code.",
            "sourceNote": "Source Note: The provisions of this §1.370 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90707&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90707",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.371",
                "label": "Settlement Approval Procedures for Negotiation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90708&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90708",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The parties' settlement approval procedures shall be disclosed prior to, or at the beginning of, negotiations.(b) To the extent possible, the parties shall select negotiators who are knowledgeable about the subject matter of the dispute, are in a position to reach agreement, and can credibly recommend approval of an agreement.",
            "sourceNote": "Source Note: The provisions of this §1.371 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90708&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90708",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.372",
                "label": "Settlement Agreement"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90709&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90709",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A settlement agreement may resolve an entire claim or any designated and severable portion of a claim.(b) A settlement agreement must be in writing and signed by representatives of the contractor and the agency who have authority to bind each respective party.(c) A partial settlement does not waive either party's rights under Government Code, Chapter 2260, with respect to the parts of the claim or any counterclaim that are not resolved.",
            "sourceNote": "Source Note: The provisions of this §1.372 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90709&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90709",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.373",
                "label": "Cost of Negotiation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90710&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90710",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Unless the parties agree otherwise, each party shall be responsible for its own costs that are incurred in connection with a negotiation, including, without limitation, the costs of attorney's fees, consultant's fees, alternative dispute resolution fees, and expert's fees.",
            "sourceNote": "Source Note: The provisions of this §1.373 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90710&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90710",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.374",
                "label": "Request for Contested Case Hearing"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90697&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90697",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If a contractor's claim and any counterclaim are not resolved in their entirety through negotiation, mediation, or other assisted negotiation process in accordance with this subchapter on or before the 270th day after the agency receives the contractor's notice of claim, or after the expiration of any extension to which the parties agree pursuant to §1.369 of this title (relating to Timetable), then the contractor may file a request with the agency for a contested case hearing before the State Office of Administrative Hearings (SOAH).(b) A request for a contested case hearing shall state the legal and factual basis for the claim and be delivered to the comptroller or agency officer who is designated in the contract to receive notice within a reasonable time after the 270th day or the expiration of any extension to which the parties have agreed pursuant to §1.369 of this title.(c) The agency shall forward the contractor's request for contested case hearing to SOAH within a reasonable period of time, not to exceed 30 days, after receipt of the request.(d) The parties may agree to submit the case to SOAH before the 270th day after the agency receives the contractor's notice of claim if the parties have achieved a partial resolution of the claim and any counterclaim, or if an impasse has occurred in the negotiations, and proceeding to a contested case hearing would serve the interests of justice.",
            "sourceNote": "Source Note: The provisions of this §1.374 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90697&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90697",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.375",
                "label": "Mediation Timetable"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90698&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90698",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The contractor and the agency may agree to mediate the dispute at any time before the 270th day after the agency receives the contractor's notice of claim, or before the expiration of any extension to which the parties have agreed pursuant to §1.369 of this title (relating to Timetable).(b) A contractor and the agency may mediate the dispute even after the case has been referred to the State Office of Administrative Hearings (SOAH) for a contested case. SOAH may also refer a contested case for mediation pursuant to its own rules and guidelines, irrespective of whether the parties have previously attempted mediation.",
            "sourceNote": "Source Note: The provisions of this §1.375 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90698&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90698",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.376",
                "label": "Conduct of Mediation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90699&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90699",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Mediation is a consensual process in which an impartial third party, the mediator, facilitates communication among the parties to promote reconciliation, settlement, or mutual understanding. A mediator may not impose his own judgment on the issues, for that of the parties. Both parties must agree to the selection of the particular mediator who is to administer the process.(b) The mediation is subject to the provisions of the Governmental Dispute Resolution Act, Government Code, Chapter 2009. For purposes of this subchapter, \"mediation\" is assigned the meaning that is described in Civil Practice and Remedies Code, §154.023.(c) To facilitate a meaningful opportunity for settlement, the parties shall, to the extent possible, select representatives who are knowledgeable about the dispute, are in a position to reach agreement, and can credibly recommend approval of an agreement.",
            "sourceNote": "Source Note: The provisions of this §1.376 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90699&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90699",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.377",
                "label": "Agreement to Mediate"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90693&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90693",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The parties may agree to use mediation as an option to resolve a contractor's claim and any counterclaim at the time they enter into the contract, and may include a provision in the contract to do so. The parties may mediate a contractor's claim and any counterclaim even without a provision in the contract to do so, if both parties agree.(b) Any agreement to mediate should include consideration of the following factors:(1) the source of the mediator. Potential sources of mediators include governmental officers or employees who are qualified as mediators under Civil Practice and Remedies Code, §154.052; private mediators; the State Office of Administrative Hearings (SOAH); the Center for Public Policy Dispute Resolution at The University of Texas School of Law; an alternative dispute resolution system that is created under Civil Practice and Remedies Code, Chapter 152, by another state or federal agency, or through a pooling agreement with several state agencies. Before naming a mediator source in a contract, the parties should contact the mediator source to ensure that the source is willing to serve in that capacity. In selecting a mediator, the parties should use the qualifications that are described in §1.378 of this title (relating to Qualifications and Immunity of the Mediator);(2) the time period for the mediation. The parties should allow enough time in which to make arrangements with the mediator and attending parties to schedule the mediation, to attend and participate in the mediation, and to complete any settlement approval procedures that are necessary to achieve final settlement. While this time frame can vary according to the needs and schedules of the mediator and the parties, the parties should allow adequate time for completion of the process;(3) the location of the mediation;(4) allocation of costs of the mediator;(5) the identification of representatives who will attend the mediation on behalf of the parties, if possible, by name or position; and(6) the settlement approval process, in the event that the parties reach agreement at the mediation.",
            "sourceNote": "Source Note: The provisions of this §1.377 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90693&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90693",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.378",
                "label": "Qualifications and Immunity of the Mediator"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90694&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90694",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The mediator shall possess the qualifications that are required under Civil Practice and Remedies Code, §154.052; be subject to the standards and duties that are prescribed by Civil Practice and Remedies Code, §154.053; and have the qualified immunity that is stated in Civil Practice and Remedies Code, §154.055, if applicable.(b) The parties should decide whether, and to what extent, knowledge of the subject matter and experience in mediation should be considered as preferred qualities of the mediator.(c) The parties should obtain from the prospective mediator the ethical standards that will govern the mediation.",
            "sourceNote": "Source Note: The provisions of this §1.378 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90694&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90694",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.379",
                "label": "Confidentiality of Mediation and Final Settlement Agreement"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90692&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90692",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A mediation conducted that is under this section is confidential in accordance with Government Code, §2009.054.(b) The confidentiality of a final settlement agreement to which the agency is a signatory and that is reached as a result of the mediation is governed by Government Code, Chapter 552.",
            "sourceNote": "Source Note: The provisions of this §1.379 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90692&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90692",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.380",
                "label": "Costs of Mediation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90685&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90685",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Unless the contractor and the agency agree otherwise, each party shall be responsible for that party's own costs that are incurred in connection with the mediation, including the cost of document reproduction for documents that the party has requested, attorney's fees, and consultant or expert fees.(b) The costs of the mediation process itself shall be divided equally between the parties, unless the parties agree otherwise.",
            "sourceNote": "Source Note: The provisions of this §1.380 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90685&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90685",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.381",
                "label": "Settlement Approval Procedures for Mediation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90686&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90686",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The parties' settlement approval procedures shall be disclosed to all other parties prior to the mediation.(b) To the extent possible, the parties shall select representatives who are knowledgeable about the subject matter of the dispute, are in a position to reach agreement, and can credibly recommend approval of an agreement.",
            "sourceNote": "Source Note: The provisions of this §1.381 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90686&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90686",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.382",
                "label": "Initial Settlement Agreement"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90695&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90695",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Any settlement agreement that is reached during the mediation shall be signed by the authorized representatives of the contractor and the agency, and describe any procedures that the parties are required to follow in connection with final approval of the agreement.",
            "sourceNote": "Source Note: The provisions of this §1.382 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90695&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90695",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.383",
                "label": "Final Settlement Agreement"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90696&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90696",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A final settlement agreement that is reached during, or as a result of, mediation, and which resolves an entire claim and any counterclaim or any designated and severable portion of a claim and any counterclaim, shall be in writing and signed by representatives of the contractor and the agency who have authority to bind each respective party.(b) If the settlement agreement does not resolve all issues that the claim and any counterclaim raise, then the agreement shall identify the issues that remain unresolved.(c) A partial settlement does not waive a contractor's rights under Government Code, Chapter 2260, with respect to the parts of the claim that remain unresolved.",
            "sourceNote": "Source Note: The provisions of this §1.383 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90696&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90696",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.384",
                "label": "Referral to the State Office of Administrative Hearing (SOAH)"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90691&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90691",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If mediation does not resolve all issues that the claim and any counterclaim raise, then the contractor may request that the agency refer those issues to SOAH for resolution.(b) Nothing in these rules prohibits the contractor and the agency from mediating their dispute after the case has been referred for contested case hearing, subject to the rules of SOAH.",
            "sourceNote": "Source Note: The provisions of this §1.384 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90691&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90691",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.385",
                "label": "Assisted Negotiation Processes"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90700&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90700",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Parties to a contract dispute under Government Code, Chapter 2260 may agree, either contractually or when a dispute arises, to use assisted negotiation (alternative dispute resolution) processes, in addition to direct negotiation, to resolve their dispute.",
            "sourceNote": "Source Note: The provisions of this §1.385 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90700&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90700",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.386",
                "label": "Factors that Support the Use of Assisted Negotiation Processes"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90701&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "90701",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following factors may help the parties decide whether one or more assisted negotiation processes could help resolve their dispute:(1) the parties recognize the benefits of an agreed resolution of the dispute;(2) the expense of proceeding to a contested case hearing at the State Office of Administrative Hearing (SOAH) is substantial and might outweigh any potential recovery;(3) the parties want an expedited resolution;(4) the ultimate outcome is uncertain;(5) expertise of a third party for technical assistance or fact-finding would benefit the parties by clarifying factual or technical complexity or uncertainty that the dispute presents;(6) the parties are having substantial difficulty communicating with each other effectively;(7) a mediator could facilitate the parties' realistic evaluation of their respective cases;(8) an on-going relationship exists among the parties;(9) the parties want to retain control over the outcome;(10) the parties need to develop creative alternatives to resolve the dispute;(11) the parties need flexibility in shaping relief;(12) at least one party appears to have an unrealistic view of the merits of the party's case; and(13) the parties need to hear an evaluation of the case from someone other than their respective lawyers.",
            "sourceNote": "Source Note: The provisions of this §1.386 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=90701&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "90701",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "NEGOTIATION AND MEDIATION OF CONTRACT DISPUTES"
            },
            "rule": {
                "number": "§1.387",
                "label": "Use of Assisted Negotiation Processes"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227110&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227110",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Any of the following methods, or a combination of these methods, or any other form of assisted negotiation process to which the parties agree, may be used to seek a resolution of disputes or other controversy that arise under Government Code, Chapter 2260. If the parties agree to use an assisted negotiation procedure, they should agree in writing to a detailed description of the process, prior to engagement in the process.(1) Mediation. (See §§1.375-1.384 of this title (relating to Negotiation and Mediation of Contract Disputes).)(2) Early evaluation by a third-party neutral.(A) This is a confidential conference in which the parties and their counsel present the factual and legal bases of their respective claims and defenses, and receive a non-binding assessment by an experienced neutral with subject-matter expertise or with significant experience in the substantive area of law that governs the dispute.(B) After summary presentations, the third-party neutral identifies areas of agreement for possible stipulations, assesses the strengths and weaknesses of each party's position, and estimates, if possible, the likelihood of liability and the dollar range of damages that appear reasonable to the neutral.(C) This is a less complicated procedure than the mini-trial, which is described in paragraph (4) of this section. This procedure may be appropriate for only some issues in dispute, such as when clear-cut differences exist between the parties over the appropriate amount of damages. This process may be particularly helpful when:(i) the parties agree that the dispute can be settled;(ii) the dispute involves specific legal issues;(iii) the parties disagree on the amount of damages;(iv) at least one party appears to have an unrealistic view of the dispute; and(v) the neutral is a recognized expert in the subject area or area of law that governs the dispute.(3) Neutral fact-finding by an expert.(A) In this process, a neutral third-party expert studies a particular issue and reports findings on that issue. The process usually occurs after most discovery in the dispute has been completed and the significance of particular technical or scientific issues is apparent.(B) The parties may agree in writing that the fact-finding will be binding on them in later proceedings and, if appropriate, constitute a stipulation if the dispute proceeds to a contested case hearing, or that the fact-finding will be advisory in nature, to be used only in further settlement discussions among representatives of the parties. This process may be particularly helpful when:(i) factual issues that require expert testimony may be dispositive of liability or damage issues;(ii) the use of a neutral is cost effective;(iii) the neutral's findings could narrow factual issues for a contested case hearing.(4) Mini-trial.(A) A mini-trial is generally a summary proceeding before a representative of upper management from each party who has authority to settle, and a third-party neutral whom the parties select. A mini-trial is usually divided into three phases: a limited information exchange phase, the actual hearing, and post-hearing settlement discussions. No written or oral statement that is made during the course of the proceeding may be used as evidence or as an admission in any other proceeding.(B) The information exchange stage should be brief, but yet sufficient for each party to understand and appreciate the key issues that are involved in the case. At a minimum, the parties should exchange key exhibits, introductory statements, and a summary of each witness' testimony.(C) At the hearing, representatives of the parties present a summary of the anticipated evidence and any legal issues that must be decided before the case can be resolved. The third-party neutral presides over the presentation and may question witnesses and counsel, as well as comment on the arguments and evidence. Each party may agree to conduct abbreviated direct and cross-examination of witnesses. The hearing should generally take no longer than one or two days.(D) Settlement discussions that the third-party neutral facilitates, occur after the hearing. The parties may ask the neutral to formally evaluate the evidence and arguments and give an advisory opinion on the issues in the case. If the parties cannot reach an agreed resolution to the dispute, then any party may declare the mini-trial to be ended, and proceed to resolve the dispute by other means.(E) Mini-trials may be appropriate when:(i) the dispute is at a stage where substantial costs can be saved by a resolution that is based on limited information gathering;(ii) the matter justifies the senior executive time that is required to complete the process;(iii) the issues include highly technical and mixed questions of law and fact;(iv) the matter involves trade secrets or other confidential or proprietary information; or(v) the parties seek to narrow the large number of issues that are in dispute.",
            "sourceNote": "Source Note: The provisions of this §1.387 adopted to be effective November 29, 2001, 26 TexReg 9631."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227110&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227110",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "1",
                "label": "CENTRAL ADMINISTRATION"
            },
            "subchapter": {
                "number": "G",
                "label": "GIFT ACCEPTANCE"
            },
            "rule": {
                "number": "§1.400",
                "label": "Gift Acceptance Policy and Procedures"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=160460&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "160460",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms when used in this section shall have the following meanings, unless the context clearly indicates otherwise. (1) Agency--The Office of the Comptroller of Public Accounts.(2) Contested case--A proceeding in which the legal rights, duties, or privileges of a party are to be determined by the agency after an opportunity for an adjudicative hearing. For purposes of this section, the term does not include matters that are handled administratively without a hearing before the State Office of Administrative Hearings (SOAH). (3) Employee--A full-time or part-time employee of the agency. (4) Foreign adversary--A country or foreign non-government persons listed under 15 C.F.R. §791.4. (5) Foreign business entity--A partnership, limited partnership, corporation, association, joint venture, or other business organization organized under the laws of a foreign jurisdiction outside the United States.(6) Gift--A donation of money, property or services.(7) Inception of the case--The date an application, complaint, petition, statement of intent, request for agency action, ruling, relief, or other document requiring an adjudicative hearing is filed. (8) Indebted to the state--Owing a past due obligation of money or taxes to the State of Texas, as reported to the agency under Government Code, §403.055(f).(9) Money--Cash or negotiable instruments. (10) Party--A person by or against whom a contested case or lawsuit is brought and who is named on the record. For the purpose of this section, a party is the person named or admitted as a party to a contested case pending before the agency, or a person named or admitted as a party in litigation against the agency. (11) Person--An individual, partnership, limited partnership, joint venture, trust, cooperative, corporation, association, or any other legal entity, however organized.(12) Property--Real property or tangible or intangible personal property. (13) Services--Administrative, technical, consulting or any other services or performance of duties assigned in furtherance of volunteer public service related to the duties of the agency. (b) Authority to Accept Gifts. The agency may solicit and accept a gift on behalf of the state for any public purpose related to the duties of the agency. The agency may also solicit and accept donations of services on behalf of the state for any public purpose related to the duties of the agency.(c) Authority to Refuse Gifts. The agency may refuse a gift for any reason and at any time. To guide the acceptance of gifts on behalf of the state, the agency establishes the following rule. The agency will not accept a gift from:(1) a party in a contested case against the agency during the period from the inception of the contested case until the 30th day after the date of the final order in the contested case;(2) a party in litigation against the agency until the 30th day after the date of the final order in the litigation;(3) subject to subsection (i) of this section, a person who is indebted to the state or who owes delinquent taxes to the state, as reported to the agency under Government Code, §403.055(f); (4) a person who is under investigation by the agency's Criminal Investigation Division;(5) a person who is in default on a guaranteed student loan, as reflected in the records which are available to and utilized by the agency in the normal course of business;(6) a person who is indebted to the state for past due child support, as reflected in the records which are available to and utilized by the agency in the normal course of business;(7) a foreign business entity that is not licensed to do business in Texas; or(8) a foreign adversary or a person associated with a foreign adversary. (d) Notice of intent to make a gift. A person intending to make a gift to the agency is considered a prospective donor and shall provide to the agency upon request as much of the following information as is applicable: (1) the complete legal name, address, telephone number, and social security number (if applicable) of the prospective donor; (2) if the donor is a business organization, the prospective donor's company name, address, phone number and taxpayer identification number;(3) a description of the intended gift; (4) the estimated date on which the gift would be available;  (5) an estimate of the value of the gift as of the date of delivery; (6) a statement describing any proposed use of the gift; (7) a statement regarding the prospective donor's status with respect to each paragraph in subsection (c) of this section;  (8) a statement disclosing whether any agency employees serve as officers or directors of the prospective donor organization; and(9) the agency may request that the donor supply additional information regarding the donor, the intended gift, its estimated value, its usefulness to the agency, the donor's status with respect to the gift acceptance rule, or any other information that the agency deems relevant to the intended gift.(e) Review Procedures. The agency shall review the proposed gift as soon as practicable after receiving the intended gift or notice of an intended gift. The agency shall cross check the prospective donor information against the agency's records and other information it deems necessary to determine whether the proposed gift is consistent with applicable law, agency policies, and the agency's gift acceptance rule and whether the gift may be used for a public purpose related to the duties of the comptroller. (f) Gift Acceptance. The agency will notify the donor if acceptance of the gift is approved. If requested, the agency may provide a receipt to the donor. The receipt shall specify the name of the donor organization, the date received, the donor's name, the amount of money or description of property donated, and include a statement that the agency has not provided any goods or services in consideration for the gift. Gifts of money will be deposited in the treasury unless statute or the constitution requires deposit to another fund.(g) Gift Refusal. The agency may notify a prospective donor if the gift is refused. If the agency refuses a gift after receipt, the agency will return the gift subject to applicable law and subsection (i) of this section as soon as practicable. (h) Use of Suspense Account. The agency may deposit a gift of money into a suspense account pending completion of the review under subsection (e) of this section. If accepted, the gift will be transferred to the treasury unless statute requires deposit to another fund. If refused, the gift will be returned subject to subsection (g) of this section.(i) Use of Gift as Offset against Certain Indebtedness. Prior to the return of a gift rejected under subsection (g) of this section, the agency, to the greatest extent possible, will comply with the warrant hold and deduction procedures required by Government Code, §403.055 and §403.0551.(j) Records of Gifts. For gifts valued at $500 or more, the agency will record the name of the donor, a description of the gift, and the purpose of the gift.(k) Use of Gifts. The agency will ensure that all gifts to the agency are used for public purposes related to the duties of the agency. No gifts to the state shall be used for the monetary enrichment of any agency employee. Unless the agency agrees otherwise for a public purpose authorized by law, a donor may not direct the use or investment of the gift. (l) Gifts of Service.(1) The agency shall provide appropriate training as needed and advise on any applicable rules to persons who donate services.  (2) A person who donates services to the agency, subject to applicable law and agency policies, may use the agency's property during the periods of donated service to facilitate the provision of volunteer public service and further the public purposes of the agency. Agency employees may also work on agency projects with the donor during the periods of volunteer public service to further the agency's public purposes.(3) If an agency employee is also an officer, director or volunteer for the donor organization, the employee's service for the donor organization may be limited to service outside of the employee's state work hours. An agency employee who is also an officer, director or volunteer for an organization that was created by the agency for a limited public purpose related to the duties of the agency, may perform services for the organization during the employee's state work hours.(m) Rule Scope. This section does not apply to gifts to individual employees and does not apply to funds received under Government Code, §403.0121. Gift acceptance by individual employees and the restrictions on such acceptance, are governed by Government Code, Chapter 572 (Standards of Conduct); Penal Code, Chapter 36 (Prohibited Gifts); Penal Code, Chapter 39 (Misuse of State Resources); and the agency's ethics policies.",
            "sourceNote": "Source Note: The provisions of this §1.400 adopted to be\r\neffective December 30, 2025, 50 TexReg 8614."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=160460&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "160460",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL RULES"
            },
            "rule": {
                "number": "§3.1",
                "label": "Private Letter Rulings and General Information Letters"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=176571&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "176571",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) General information letter--Information provided by the comptroller in response to any written inquiry about the taxability of an item or transaction, including a request for a private letter ruling that does not comply with the requirements necessary to request a private letter ruling.(2) Private letter ruling--The comptroller's written determination on the application of relevant tax laws, rules, and policies to a specific set of facts submitted in a properly completed private letter ruling request.(3) Related person--A person, corporation, or other legal entity, including an entity that is treated as a pass-through or disregarded entity for purposes of federal taxation, in which one person, corporation, or entity, or set of related persons, corporations, or entities, directly or indirectly owns or controls a greater than 50% interest in another entity.(b) General information letters.(1) General information letters are advisory in nature and are not binding on the comptroller for purposes of detrimental reliance under §3.10 of this title (relating to Taxpayer Bill of Rights).(2) The comptroller will respond to a request for a general information letter by issuing a general information letter, by requesting additional information necessary to complete the general information letter, by directing the requestor to the relevant authorities such as agency rules, or by communicating that the comptroller declines to issue a response.(c) Private letter rulings.(1) A request for a private letter ruling must be in writing, must be clearly identified as such, and must contain:(A) identifying information for the person or entity to which the ruling request relates, to include the name, address, Texas taxpayer and federal employer identification numbers, and state of formation, as applicable. The reporting entity of a combined group may request a private letter ruling related to franchise tax reporting on behalf of a combined group by including identification information for each member of the combined group that seeks to rely on the ruling and including identifying information for each member of the combined group that is a party to any transactions described in the ruling request. The signature of the person making the request; the signature of an authorized representative of the person making the request; or the signature of any third party authorized to represent the person before the comptroller, accompanied by a power of attorney, must also be included. If a private letter ruling request does not contain the required identifying information, signature of the person making the request, signature of an authorized representative of the person making the request or a power of attorney if the request is submitted by a third party authorized to represent the taxpayer, the comptroller will still consider the request for a possible ruling; however, no detrimental reliance will be provided under §3.10 of this title unless the identity of the person or entity to which the ruling request relates is revealed. If the identity of the person or entity is revealed during the comptroller's review of the request, the comptroller may take any actions necessary to ensure that accurate taxability information is provided;(B) a detailed statement of all relevant facts relating to the request;(C) a true and correct copy of all relevant documents relating to the request. Relevant facts in documents should be detailed in the request and not merely incorporated by reference in the detailed statement;(D) a statement disclosing whether or not the issue is under consideration by the comptroller in connection with an audit examination of any type, a refund request, a voluntary disclosure agreement, an administrative hearing, or litigation for the person or entity to which the ruling request relates or for a related person;(E) a statement disclosing whether or not a request on the same or a similar issue has been or will be submitted to a taxing jurisdiction of another state;(F) a statement of the private letter ruling requested from the comptroller;(G) a statement of authorities supporting the requested ruling, an explanation of the grounds for the ruling and the relevant authorities to support the ruling; and(H) a statement of authorities contrary to the requested ruling. Each person is under an affirmative duty to identify any and all authorities contrary to the requested ruling. If the requestor determines that there are no contrary authorities, or is unable to locate such authority, the request must include a statement that the requestor has identified all relevant authorities to the best of the requestor's knowledge.(2) The comptroller may request any additional information needed to issue a private letter ruling, including required information that was not provided in the original request. The comptroller will not issue a private letter ruling if the requested information is not provided.(3) The comptroller will not issue a private letter ruling if the request relates to the same or similar issue that is before the comptroller in the following actions or proceedings for the same person or a related person and for the same or any prior tax period:(A) an audit examination of any type;(B) a refund request;(C) a voluntary disclosure agreement;(D) an administrative hearing; or(E) litigation.(4) The comptroller will promptly acknowledge receipt of all private letter rulings. Subject to paragraph (3) of this subsection, the comptroller will respond in writing to a request for a private letter ruling by issuing a private letter ruling, by issuing a request for additional information, by issuing a letter that declines the request for private letter ruling, or by issuing a general information letter. As part of the process of evaluating the ruling request and determining whether to issue a private letter ruling, the comptroller will consider the extent to which the ruling will promote voluntary compliance by the greatest number of taxpayers and provide information to other persons who have an interest in the subject matter.(d) Binding effect of private letter rulings.(1) A person who receives a private letter ruling may rely on it prospectively from the date that the private letter ruling is issued and with respect only to the particular issue and the person identified in the request for the private letter ruling, subject to the exception that, for purposes of the franchise tax, a member of a combined group may rely on a private letter ruling that is issued to the reporting entity of a combined group to the extent that the private letter ruling relates to that member. Detrimental reliance applies to private letter rulings as provided by §3.10 of this title and subsection (c)(1)(A) of this section.(2) Notwithstanding paragraph (1) of this subsection, a private letter ruling is not binding on the comptroller with respect to the person who requested the private letter ruling if:(A) there has been a misstatement or omission of material facts in the request; or(B) the facts subsequently developed are materially different from the facts on which the private letter ruling was based.(3) Notwithstanding paragraph (1) of this subsection, a private letter ruling is not binding on the comptroller on a prospective basis if:(A) there has been a change in the applicable laws, rules, or comptroller hearing decisions that the comptroller determines affects the validity of the ruling;(B) there has been a final, non-appealable decision issued in a contested case or by a Texas or federal court that the comptroller determines affects the validity of the ruling; or(C) the comptroller has modified or revoked the private letter ruling.(e) Modification or revocation of a private letter ruling.(1) The comptroller may modify or revoke a private letter ruling if the ruling is found to be in error or not in accordance with laws or current comptroller policy or guidelines. The revocation or modification of a private letter ruling shall not be applied retroactively to a person identified in subsection (d) of this section, concerning private letter rulings that are binding on the comptroller.(2) The comptroller will provide written notice by mail, and service by mail will be complete when the notice is deposited in a U.S. Post Office. The comptroller will address the notice to the taxpayer or other person at the taxpayer's address as it appears in the records of the comptroller. If there are no records of the comptroller for the person making the request or on whose behalf the request has been made, the comptroller will rely on the contact information provided in the private letter ruling request. The comptroller is under no duty to otherwise notify the requestor of the modification or revocation.(3) A ruling that is modified or revoked due to a change in federal or state law, a final decision of a court of law, or a change in agency rule is effective on the date of the event requiring the modification or revocation. If a ruling is modified or revoked due to a change in comptroller policy that is not reflected in an agency rule, the ruling is effective until the date of the written notice sent to the requestor or person for which the request was made.(f) Confidentiality. Information provided to the comptroller when requesting a general information letter or private letter ruling, and any general information letter or private letter ruling issued by the comptroller, remain confidential to the extent provided by the Public Information Act, Texas Government Code Ann., Chapter 552, and controlling interpretations as applied to the comptroller by the Attorney General's office and court decisions.",
            "sourceNote": "Source Note: The provisions of this §3.1 adopted to be effective January 28, 2013, 38 TexReg 384."
        },
        {
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            "currentRecordId": "176571",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL RULES"
            },
            "rule": {
                "number": "§3.2",
                "label": "Offsets and Application of Credits and Payments to Liabilities; Unjust Enrichment"
            },
            "nextRule": {
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Credit--An available balance for transfer or refund, including funds from another tax type.(2) Offset--A period-by-period reduction in amounts owed by a taxpayer.(3) Period--Filing period, such as month, quarter, or year.(b) Offsets and application of credits and payments to liabilities.(1) Requirements for offset requests.(A) A taxpayer must file a written request to offset a liability before the determination, order, or decision establishing the liability becomes final. A separate request must be made for each credit a taxpayer proposes to apply to a liability. If a request is made to offset multiple liabilities, each of the liabilities must be listed in the order in which the taxpayer wants the credits applied.(B) The written request for offset must include the following information for both the credits and liabilities:(i) taxpayer number;(ii) the audit or refund period, exam, or return period in which the credit and liability was created;(iii) tax type; and(iv) the tax amount.(2) Rules for when offsets are and are not allowed.(A) A credit that has already been refunded to the taxpayer or applied as a payment cannot be used to offset a liability.(B) Offsets will only be allowed for liabilities owed by the same legal entity to which the credit is due.(C) Any claim for refund filed on or after September 1, 2005 for a report period due on or after January 1, 2000 cannot be used to offset any liabilities due on a period-by-period basis and will be processed separately from any amounts found due in an audit. For more information about how to file a refund claim see §3.325 of this title (relating to Refunds and Payments Under Protest). This policy does not preclude auditors from making adjustments in the course of an audit that reflect overpayments of tax that have not already been separately identified in a refund claim such that any interest due from or owed to a taxpayer is computed on the final balance. The comptroller will apply the following policies to the following facts, but this does not control how the comptroller will handle other facts that may be presented.(i) Audit in progress; refund items found by or presented to auditor during the audit. If an audit entrance conference is after September 1, 2005 and the auditor finds credits in the normal course of the audit, or the taxpayer brings credit items to the auditor's attention and they are not perfected in a separate claim for refund, the auditor will include the credits in the audit unless the taxpayer specifically requests that they be processed separately. If the credit items are processed within the audit, any offsets between deficiencies and credits will occur before the calculation of penalty and interest due as a result of the audit.(ii) Audit completed; request for redetermination filed. If an audit is completed and a taxpayer timely files a request for redetermination that includes new refund items, or identifies refund items for additional consideration that were presented during the audit and not approved by the auditor, the refund items will be processed within the audit. Any offsets between deficiencies and credits will occur before the calculation of penalty and interest due as a result of the audit. If a taxpayer makes an additional claim for refund after the time in which a redetermination may be timely requested, those refund items will be treated as a separate, original claim for refund and they will not be processed as part of the request for redetermination.(iii) Audit completed; claim for refund filed after notification of audit becomes final. If a taxpayer does not request redetermination and files a claim for refund after the audit becomes final, the refund claim and any interest due will be processed separately from the audit. Refunds due the taxpayer may be applied as a payment to any outstanding liability based on the date those funds are available for payment to the taxpayer.(iv) Claim for refund filed; audit begins at a later date. If a taxpayer files a claim for refund after September 1, 2005 and an audit is started after the date the claim is filed, any refund amount granted will be processed separately from any amount found due based on the audit. Any refund due the taxpayer may be applied as a payment to any outstanding liability based on the date those funds are available for payment to the taxpayer, but the refund will not be processed as an offset.(D) Amounts paid to settle a disputed obligation, including but not limited to settlements relating to litigation, are not credits and cannot be used to offset a tax liability or any resulting interest or penalty amounts.(E) Amounts paid pursuant to a court judgment resulting from a claim for refund are not credits and cannot be used to offset a tax liability or any resulting interest or penalty amounts.(F) An offset may be recalculated and billed if the credit used for the offset is subsequently reduced or eliminated.(G) The comptroller will determine on a case-by-case basis whether an offset applies in any situation not specifically covered by this section, but will not approve an offset request for the following:(i) property tax;(ii) unclaimed property;(iii) inheritance tax;(iv) motor fuel tax refunds for fuel not used on Texas highways;(v) franchise tax refunds resulting from an audit or adjustment made by the Internal Revenue Service;(vi) enterprise zone projects;(vii) refunds due by the Texas Workforce Commission;(viii) bad debt credits; and(ix) amounts governed under the Texas Insurance Code.(3) Application of credits and payments.(A) When credits are established in a period, they will automatically be netted against liabilities in the same period. If there are no liabilities to net against the credits, or the credits are greater than the liabilities in the same period, the credits will first be applied as payments to liabilities in prior periods.(B) The application of credits will begin in the oldest liability period and apply within that period first to tax, next to penalty, and finally to interest. If credits remain, they will be applied to the next oldest period in the same manner, until all prior liabilities are paid or the credits are extinguished.(C) If a credit remains after all preceding liabilities have been satisfied, and the taxpayer is current in all tax filings, applicable credit interest will be calculated for periods due on or after January 1, 2000, and a refund will be issued for the credit amount and interest.(D) When a credit is applied to a tax liability in a prior period, the liability will continue to accrue interest under Tax Code, §111.060 through the due date of credit period. Unpaid tax balances after application of a credit will continue to accrue interest through the due date of the next applied credit or until midnight of the payment postmark date.(E) When a credit is applied to a later liability period, any unpaid balance will continue to accrue applicable interest through the date of the next applied credit. Interest is accrued in accordance with Tax Code, §111.060.(F) When a credit is applied to a later liability period, the credit will accrue applicable credit interest under Tax Code, §111.064 through the due date of the liability period in which the credit was applied. If there is a remaining credit balance, it will continue to accrue applicable credit interest until applied to another deficiency or refunded.(G) Under circumstances where multiple type tax liabilities exist, such as city and state sales tax, payments will be divided proportionately between the taxes so that each tax shall share the payment on the basis of the amount due each tax.(c) Unjust enrichment.(1) If amounts are collected as tax in transactions on which tax is not due, the comptroller will require, under the doctrine of unjust enrichment, that these amounts be remitted to the state or be refunded to the customers from whom they were collected.(2) In the case of refunded amounts, documentary evidence must be retained establishing the transaction, the amount collected, the party from whom collected, the amount refunded, and the party to whom refund is made.",
            "sourceNote": "Source Note: The provisions of this §3.2 adopted to be effective January 1, 1976; amended to be effective July 28, 2002, 27 TexReg 6537; amended to be effective December 4, 2003, 28 TexReg 10773; amended to be effective July 20, 2011, 36 TexReg 4568; amended to be effective February 21, 2016, 41 TexReg 1260."
        },
        {
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            "currentRecordId": "117230",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL RULES"
            },
            "rule": {
                "number": "§3.3",
                "label": "Contract Examination Program"
            },
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                "recordId": "213039",
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.  (1) Applicant--A person that submits a Statement of Qualifications in response to the comptroller's Request for Qualifications.  (2) Contract Examination Program--A program that the comptroller creates under Tax Code, §111.0045, in which the comptroller contracts with qualifying persons or accounting firms to perform tax examinations for the State of Texas.  (3) Contract examiner--A person who performs a tax compliance examination or special examination project under the Contract Examination Program.  (4) Orientation--Information provided by the comptroller to familiarize contract examiners with policies, procedural rules, recent developments in Texas tax laws, and other materials that may be pertinent to possible assignments.  (5) Project manager--An employee of the comptroller whom the manager of Audit Division appoints to oversee the Contract Examination Program.  (6) Request for Qualifications--An announcement that the comptroller issues, which states the availability of a contract under the Contract Examination Program and solicits submissions of written responses from qualifying applicants.  (7) Selection committee--A committee within the comptroller's office that will review Statements of Qualifications.  (8) Statement of Qualifications--A written statement that an applicant submits in response to a Request for Qualifications.  (b) Selection procedures for contract examiners.  (1) Contracts that are awarded under the Contract Examination Program are governed by procedures of Government Code, Chapter 2254, Subchapter A. The comptroller will use the selection process that is described in this section and that complies with Chapter 2254, Subchapter A, and other applicable law.  (2) The comptroller will publish from time to time in the Texas Register  and/or post on the Texas Marketplace a Request for Qualifications that announces that the comptroller seeks contract examiners to perform examinations in sales and use tax, motor vehicle sales tax, mixed beverage tax, fuels tax, or International Fuel Tax Agreement. The comptroller may expand the Contract Examination Program to other taxes that are not enumerated if the comptroller determines that doing so would be in the best interest of the state. Any such Request for Qualifications will be published for a period no less than 30 days or other applicable statutory period prior to the date for submission of responses and will solicit a Statement of Qualifications from applicants who are interested in contracting with the comptroller to perform examinations under the Contract Examination Program.  (3) The Request for Qualifications will require an applicant to submit a Statement of Qualifications that contains, at a minimum and without limitation, the following information:  (A) transmittal letter that describes specific experience and qualifications of both the firm and each individual in the conduct of state tax examinations;  (B) physical address of the firm's or individual's business offices and each local office and the primary contract person;  (C) educational background and tax experience of each individual who will perform examinations. Each individual who will perform examinations must have at least one year of experience in Texas tax examining, preparation, or other Texas tax services and must either have graduated from an accredited senior college or university with a minimum of 24 hours of accounting, including six hours of intermediate accounting and three hours of audit or be licensed as a certified public accountant by the Texas State Board of Public Accountancy;  (D) summary of work experience of each individual who will perform examinations, including identification of specific skills;  (E) states in which the individuals who will perform examinations are licensed and the license number in each state, if any;  (F) statement that the applicant understands and agrees with the proposed fee structure and with the proposed contract;  (G) proposed work plan (timeline, tasks and deliverables) including:  (i) methods for deployment of personnel and equipment to perform the examinations timely and otherwise in accordance with each contractual requirement;  (ii) methods for making personnel available for orientation and examination, if any;  (iii) methods for conducting checks regarding actual or potential conflict of interest, and notification to the comptroller of any conflicts prior to beginning an assignment; and  (iv) date of availability;  (H) disclosures of any partner, associate, employee, or individual practitioner who has been an employee of the comptroller within 12 months from the date of submission of the Statement of Qualifications;(I) information on efforts that the firm or individual has made to comply with the historically underutilized business requirements of the contract, by applicable law or rule including, without limitation, §1.345 of this title (relating to Historically Underutilized Businesses);  (J) confirmation of willingness to comply with the policies, directives, rules, procedures, and guidelines of the comptroller in connection with the conduct of the assigned examinations, and to adhere to the terms and conditions of the contract as posted on the Texas Marketplace;  (K) execution of Statement of Qualifications form; and  (L) any other documents that the comptroller determines are appropriate in response to the Request for Qualifications.  (4) Statements of Qualifications will be excluded on the following grounds:  (A) Statement of Qualifications was not properly and timely submitted. An original and 10 copies of each Statement of Qualifications must be hand delivered to and received in the General Counsel Division, Contracts Section, at the address specified in the Request for Qualifications, no later than the date and time specified in the Texas Register    in which the Request for Qualifications is published;  (B) Statement of Qualifications is incomplete. Although the comptroller may request clarification of submitted information, the applicant bears responsibility to submit correct and complete information. The comptroller reserves the right to consider applicants based strictly on the information that is originally submitted;  (C) Statement of Qualifications does not adequately establish that each individual who will work on examinations meets the requirements of paragraph (3)(C) of this subsection.  (5) The comptroller reserves the right to accept or reject any or all Statements of Qualifications that are submitted in response to a Request for Qualifications. The comptroller is not obligated to execute any contract or contracts as a result of issuing a Request for Qualifications. No minimum amount of examinations or compensation is guaranteed to any selected contract examiner. The comptroller further reserves the right to issue additional Requests for Qualifications or other solicitations at any time as the comptroller determines necessary to ensure an adequate number of examiners for any assigned examinations under the Contract Examination Program. The comptroller shall pay no costs or any other amounts that an applicant incurs in response to a Request for Qualifications.  (6) All qualifying Statements of Qualifications that are received timely will be evaluated based on qualifications, experience, work plan, and agreement to the approved contract and fees. The selection committee will perform the evaluation, and the comptroller has sole discretion to make the final selections in the best interest of the State of Texas. Disagreements with professional judgments exercised by the selection committee in evaluating any subjective criteria are not grounds for re-evaluation or appeal. Notice of contract awards will be posted on the Texas Marketplace after all contracts, if any, that result from the Statement of Qualifications are fully executed.  (c) Other prerequisites. To be considered for a contract, an applicant must meet, or agree to meet, the following terms:  (1) be willing to certify that during the 36-month period that immediately precedes the signing of a contract, neither the applicant nor the firm with which the applicant is associated has performed accounting, auditing, management consulting, or tax services for any taxpayer or person that is a subsidiary, parent, or other affiliate of the taxpayer on which the applicant or firm is requested to perform a tax compliance examination or special examination project pursuant to a contract with the comptroller;  (2) be willing to certify that the applicant and the firm with which the applicant is associated will not perform accounting, auditing, management consulting, or tax services for any taxpayer or person that is a subsidiary, parent, or other affiliate of the taxpayer on which the applicant or firm performed a tax compliance examination or special examination project, for a period of 36 consecutive calendar months following the date on which the comptroller's assessment of tax due becomes final, the date when a \"no change\" examination becomes final, the date when refund or denial of refund becomes final, or the date when the comptroller affirms in writing that the special examination project is complete, whichever date occurs later;  (3) be willing to sign a confidentiality contract with the comptroller by which the applicant acknowledges and accepts legal responsibility not to disclose tax information that is obtained pursuant to the contract;  (4) not have any unpaid Texas tax liability and be in compliance with Texas revenue laws. This provision applies to any business entity that the applicant owns or controls, or to which the applicant is related, including a parent, subsidiary, or other affiliated entity;  (5) comply with the orientation requirements established by the comptroller;  (6) comply with all other requirements that are stated in the contract; and  (7) not have been excluded from a contract award based on any of the following:  (A) knowingly and intentionally supplying false or misleading information in order to appear responsive to the Request for Qualifications;  (B) knowingly and intentionally conferring or offering to confer any gift, gratuity, favor, or advantage, present or future, upon any employee of a state agency who exercises any official responsibility for the contract;  (C) conviction of any felony charge of fraud, bribery, collusion, conspiracy, federal or state antitrust laws, or other criminal offense in connection with the award of or performance of any contract with any state agency;  (D) violation of state ethics laws;  (E) subject of a notice of suspension or debarment activities from other governmental entities; or  (F) any other cause indicating that the person or accounting firm is not a responsible party to contract with the State of Texas.  (d) Orientation.  (1) Before any contract examiner may work on contract examinations, the contract examiner must complete, at a minimum, all procedural orientation courses required by the comptroller.  (2) The comptroller may determine and specify other required orientation courses that contract examiners must attend to continue working on contract examinations.  (3) The selected contract examiner will bear all costs of orientation materials, registration fees, and associated travel expenses and per diem.  (e) Contract examiner authority.  (1) The contract examiner is authorized to review and examine the accounts, books, or records of any taxpayer whom the comptroller has designated and assigned to the contract examiner for examination under the Contract Examination Program, for the purpose of ascertaining the accuracy of tax obligation.   (2) The contract examiner may inspect such books and records as are necessary to ascertain the designated taxpayer's compliance with the revenue laws of this state. The comptroller will issue authorization in writing to the contract examiner, and this authority shall begin on the date on which the comptroller issues the authorization. The authorization shall cease to be effective on the date that the authority is rescinded in writing by the comptroller or the date that the subject contract expires, whichever is earlier.  (f) Performance of examination services. Except as otherwise provided in the contract, a contract examiner shall:  (1) conduct examinations of taxpayers whom the comptroller designates, in accordance with the procedures, terms, and circumstances stipulated in the contract;  (2) use a tax examination work plan that the contract examiner prepares and the comptroller approves for the conduct of assigned examinations. The contract examiner may make recommendations to the comptroller for amending the work plan;  (3) conduct an entrance conference and an exit conference;  (4) provide the comptroller with the original complete file of work papers that are developed during the tax examination. The examination must contain the revisions necessary to comply with the examination review notes that the comptroller's review staff has prepared;  (5) maintain all work papers, examination planning documents, files and other materials associated with the examination in a restricted area of the contract examiner's office. Access to all work papers, examination planning documents, files, and other materials shall be strictly limited to those employees whose duties and responsibilities require them to have access, and who have signed a confidentiality agreement. All documents that the contract examiner receives, maintains, compiles, generates or produces in any way in connection with an examination are documents of the comptroller.  (6) Nothing contained in this section authorizes the disclosure of any information that is prohibited by federal or state law from being disclosed.  (g) Compensation.  (1) Contract examiners shall be compensated based on a percentage of examinations that the comptroller has reviewed and accepted, as specified in the contract.  (2) Nothing in this section shall be construed to authorize any compensation of contract examiners that is contingent on the amount assessed, the liability revealed, or the refund denied.  (h) Confidentiality.  (1) Each contract that is negotiated will specifically obligate the selected contract examiner to comply with the applicable state statutes and comptroller rules on confidentiality requirements. Contract examiners will not be provided any tax information on any taxpayer until the examiner signs a contract with the comptroller.  (2) Contract examiners and their employees who have access to confidential information are bound by the confidentiality requirements and subject to the penalties for disclosure as provided in the Tax Code.   (3) Violations of the confidentiality provisions by contract examiners are punishable as provided by law.  (4) Contract examiners shall in no way use or benefit from information of any type that is obtained during the course of a tax examination.   (5) Contract examiners who, during the performance of examinations, discover tax information that may be of interest to other taxing jurisdictions shall report such tax information to the comptroller, but shall not report such information to the affected jurisdiction.  (i) Performance evaluation. The project manager or the project manager's designee(s) will complete a performance evaluation for each contract under the Contract Examination Program. The contract examiner will be evaluated in the manner specified in the contract.  (j) Scope of professional services rendered. Contract examiners' tax examination services will be strictly limited to revenue tax compliance examination functions or special examination projects that the comptroller has approved. Contract examiners will not perform an attestation function and will not render an opinion of any nature. (k) General administrative provisions. Requests for information regarding the comptroller's Contract Audit Program should be directed to Audit Division, Contract Examination Project Manager, P.O. Box 13528, Austin, Texas 78711-3528.",
            "sourceNote": "Source Note: The provisions of this §3.3 adopted to be effective February 28, 2002, 27 TexReg 1334; amended to be effective October 13, 2004, 29 TexReg 9550."
        },
        {
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            "currentRecordId": "213039",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL RULES"
            },
            "rule": {
                "number": "§3.4",
                "label": "Tax Refunds for Wages Paid to an Employee Receiving Financial Assistance"
            },
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                "recordId": "169555",
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            "ruleBody": "(a) Tax refund. A person who employs individuals who receive aid to families with dependent children, referred to as \"employer\" in this section, may apply for a refund of tax paid by the person to this state if the tax is administered by the comptroller and deposited to the credit of the general revenue fund without dedication, as described in Labor Code, §301.102(b).(b) Eligibility. To be eligible for this refund, an employer must file Texas Workforce Commission (TWC) Form 1098, or any successor form, with the TWC. The TWC will determine an employer's eligibility based on the requirements of Labor Code, Chapter 301, Subchapter H. For eligible employers, the TWC will certify the maximum allowable refund to the comptroller. After receipt of the certification, the comptroller will process the refund subject to the limitation in subsection (c) of this section.(c) Limitation. The refund an employer receives for a calendar year is limited to the lesser of the amount certified by the TWC or the amount of net tax paid to this state by the employer, after any other applicable tax credits, in that calendar year.(1) If the amount certified by the TWC is more than the tax paid by the employer to this state, the comptroller may contact the employer to obtain records regarding Texas tax paid by the employer on purchases during the calendar year at issue. If the employer can prove the payment of additional Texas tax during the calendar year, the comptroller may increase the refund amount.(2) If the amount certified by the TWC is still more than the tax paid by the employer to this state, the comptroller will only grant the refund up to the amount of tax paid to this state. This may result in the refund being granted in part and denied in part.",
            "sourceNote": "Source Note: The provisions of this §3.4 adopted to be effective March 20, 2023, 48 TeReg 1566."
        },
        {
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            "currentRecordId": "169555",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
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            "part": {
                "number": "1",
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            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL RULES"
            },
            "rule": {
                "number": "§3.5",
                "label": "Waiver of Penalty or Interest"
            },
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            "ruleBody": "(a) The comptroller has discretion to settle penalty or interest on a tax liability if the comptroller determines that the taxpayer exercised reasonable diligence to comply with the tax laws of this state. In determining whether a taxpayer has exercised reasonable diligence to comply with the tax laws of this state, the Audit Division and Revenue Accounting Division will consider the factors set out in subsections (b) and (c), respectively.(b) Procedure for requesting waiver, audits.(1) Penalty or interest on an audit liability may be waived if the taxpayer exercised reasonable diligence to comply with the tax laws of this state. A request to waive penalty or interest will be presumed in all cases governed by this subsection.(2) The comptroller has delegated to the Audit Division the initial authority to waive penalty or interest or both in appropriate cases. At the conclusion of an audit and during the exit conference, the taxpayer will be told whether any penalty or interest will be waived. At this conference the taxpayer may request that the Audit Division reconsider the decision on penalty or interest waiver.(3) When reviewing a request for penalty waiver, the Audit Division will consider the following factors:(A) the taxpayer's audit history, including, but not limited to, the errors identified in prior audits;(B) the tax issues involved;(C) whether a change in comptroller policy occurred during the audit period;(D) whether changes in the law took effect during the audit period;(E) the size and sophistication of the taxpayer;(F) whether tax was collected but not remitted;(G) whether returns were timely filed;(H) the completeness of the taxpayer's records;(I) the taxpayer's efforts to comply with the recordkeeping requirements of this state, such as maintaining an accrual system for taxable purchases;(J) delinquencies in other taxes;(K) reliance on advice provided by the comptroller's office pursuant to §3.10(c) of this title (relating to Taxpayer Bill of Rights); and(L) the error rate in the current audit.(4) When reviewing a request for interest waiver, the Audit Division will consider the factors enumerated in subsection (e) of this section.(5) The taxpayer will be advised of the acceptance or rejection of the request for waiver of penalty or interest in the audit cover letter sent with the copy of the audit schedules.(6) If a taxpayer's request for waiver is denied at the audit level, the taxpayer may raise the issue as a contested case matter during either a refund or redetermination hearing, or during an independent audit review conference under §3.10(e)(4) of this title.(c) Procedure for requesting waiver, non-audit.(1) The comptroller has delegated to the Revenue Accounting Division the initial authority to waive penalty or interest or both on return and report liabilities. Penalty or interest on a non-audit liability may be waived if the taxpayer exercised reasonable diligence to comply with the tax laws of this state.(2) A written request stating the reasons penalty or interest or both should be waived must be sent to the comptroller's Revenue Accounting Division accompanied by supporting documentation. A single waiver request may address the penalty or interest or both imposed on one annual return or report period, two quarterly returns or report periods, or six monthly returns or report periods. The comptroller may require the production of any additional documentation necessary to evaluate a request.(3) When reviewing a penalty waiver request under this subsection, the Revenue Accounting Division will consider the following factors regarding a taxpayer's account and will inform the taxpayer of the division's decision to accept or reject part or all of the penalty waiver request:(A) whether the taxpayer is current in the filing of all returns;(B) whether the taxpayer is current in the payment of all taxes and fees due the state;(C) whether penalty has been waived on other occasions for any tax type;(D) why any previous penalty waiver requests were granted or denied;(E) whether the taxpayer has a good record of timely filing and paying past returns;(F) the size and sophistication of the taxpayer;(G) whether advanced collection actions were initiated on the liability with respect to which the waiver is requested;(H) whether multiple liabilities are included in the waiver request; and(I) whether the taxpayer has taken the necessary steps to correct the problem for future filings.(4) When reviewing an interest waiver request under this subsection, the Revenue Accounting Division will consider the factors enumerated in subsection (e) of this section and will inform the taxpayer of the division's decision to accept or reject all or part of the interest waiver request.(5) A taxpayer may request an administrative appeal with the Revenue Accounting Division of a denial of all or part of a waiver request within ten calendar days from the date of written notification of the denial. Such a request for an administrative appeal must be in writing and must state the reasons the taxpayer disagrees with the denial of the waiver. New or additional documentation upon which the taxpayer relies for support should be submitted with the written request for an administrative appeal.(6) The taxpayer will be sent written notification from the Revenue Accounting Division of the disposition of the appeal within 30 days of either the comptroller's receipt of the request for an appeal or the comptroller's receipt of all additional information requested from the taxpayer in relation to the appeal.(7) If a taxpayer's request for waiver is denied by the Revenue Accounting Division, the taxpayer may raise the issue as a contested case matter during either a refund or redetermination hearing.(d) Review of penalty waiver. When reviewing the Audit Division's denial of a penalty waiver request during an independent audit review conference under §3.10(e)(4) of this title, the independent audit reviewer will consider the factors enumerated in subsection (b)(3) of this section. When reviewing the Audit Division's denial of a penalty waiver request in a contested case, the comptroller will consider the factors enumerated in subsection (b)(3) of this section. When reviewing the Revenue Accounting Division's denial of a penalty waiver request in a contested case, the comptroller will consider the factors enumerated in subsection (c)(3) of this section.(e) Interest. When reviewing an interest waiver request under subsection (b) or (c) of this section, in a contested case, or during an independent audit review conference under §3.10(e)(4) of this title, the following factors regarding a taxpayer's account will be considered:(1) undue delay caused by comptroller personnel;(2) reliance on advice provided by the comptroller's office pursuant to §3.10(c) of this title; and(3) natural disasters.",
            "sourceNote": "Source Note: The provisions of this §3.5 adopted to be effective March 10, 1992, 17 TexReg 1546; amended to be effective August 7, 1997, 22 TexReg 7059; amended to be effective May 12, 2004, 29 TexReg 4551; amended to be effective October 28, 2014, 39 TexReg 8406."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19714&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19714",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL RULES"
            },
            "rule": {
                "number": "§3.6",
                "label": "Subpoenas of Third-Party Record Keepers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3791&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "3791",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Authority. The Texas Tax Code, §111.0043, authorizes the comptroller to subpoena a taxpayer's records from any person in possession of them.(b) Payment.(1) Certain third-party record keepers are entitled to receive payment for certain costs directly incurred in complying with a comptroller's subpoena.(2) These costs must be reasonably necessary to locate, compile, reproduce, or transport the records requested.(3) Payment will be made at rates established in subsection (c) of this section. Costs in excess of these rates will not be reimbursed.(c) Rates of reimbursement.(1) Personnel time. A third-party record keeper will be reimbursed for time actually spent by its personnel in locating, retrieving, copying, and compiling records requested at the rate of $6.00 per hour. There is no allowance for managerial or legal work expended in determining whether or not to comply with a subpoena.(2) Reproduction of documents. The cost of copying documents will be reimbursed at the rate of $ .35 for the first page and $ .10 for each additional page. These rates apply whether the copies are made from the actual document or microfilm or microfiche copies. If the copies requested are required to be certified, the additional cost will be reimbursed on an hourly basis for the personnel time expended.(3) Transportation.(A) Packaging and mailing costs will be reimbursed at the actual rate paid.(B) If it is necessary to transport personnel in order to comply with a third-party record keeper subpoena, the cost of transportation will be reimbursed at the following rates:(i) mileage for automobile travel at $.23 per mile;(ii) the actual cost of public transportation used, not to exceed the next lowest available airline fare below first class.(d) Requesting payment.(1) Purchase voucher. A third-party record keeper who is the subject of a subpoena will be provided with a purchase voucher to complete and return to the comptroller. The voucher will be accompanied by instructions for its proper completion.(2) Documentation. The completed purchase voucher must be accompanied by an itemized list of the costs incurred and receipts for amounts paid to outside suppliers of goods or services. Costs unsupported by documentation will not be reimbursed.",
            "sourceNote": "Source Note: The provisions of this §3.6 adopted to be effective April 18, 1983, 8 TexReg 1072."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3791&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "3791",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL RULES"
            },
            "rule": {
                "number": "§3.7",
                "label": "Successor Liability: Liability Incurred by Purchase of a Business"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19718&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19718",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A purchaser of any business or stock of goods is liable for payment of any amount owed the state by the seller under the Tax Code, Title 2. The purchaser must, at the time of purchase, withhold a sufficient amount from the purchase price to pay any amounts due. The amount withheld must equal all tax, penalty, and interest or any other amounts assessed or to be assessed against the seller. The purchaser shall not be liable for an amount greater than the purchase price of the business or stock of goods.(b) A purchaser's duty to withhold the amount owed by the seller will continue until the seller presents to the purchaser a certificate from the comptroller stating that no tax is due. Failure of the purchaser to withhold and remit to the comptroller the required amount makes the purchaser liable for such amount to the extent of the purchase price.(c) The purchase price shall include, but not be limited to, monetary consideration, assumption of debt, transfer of property, forgiveness of debt, or issuance of debt instruments.(d) When determining if a \"business\" has been or will be sold, the comptroller will examine the transaction to determine what the parties to the transaction intended to buy and sell. The answer in each situation will depend on the type of business involved. A seller may have sold a \"business\" even when few assets were transferred. Depending on the type of business involved, a \"business\" may be sold if an owner sells:(1) a building, land, furniture, fixtures, inventory, and the right to use the seller's trade name; or(2) all the capital assets of a business; or(3) the name and goodwill of a business; or(4) all the inventory of a business; or(5) fixed assets and realty necessary to operate a similar business as the seller at the same location.(e) A certificate stating the amount due or that no tax is due may be obtained in the following manner. The seller, the seller's assignee, or purchaser must make a written request for the certificate before the sale of the business is completed. The comptroller must issue a certificate to the seller within 60 days after the records are made available by the seller for audit or within 60 days after receiving the written request for the certificate, whichever period expires later, but in any event not later than 90 days after receiving the written request. If any amount is found to be due, it must be paid before the certificate will be issued. Failure of the comptroller to timely issue the certificate to the seller will release the purchaser from any further obligation to withhold an amount from the purchase price. Effective January 1, 1992, the Government Code, §403.301, requires the comptroller to collect a fee for each certificate issued.(f) The seller must inform the comptroller in writing of the name and address of the purchaser and must file a final report immediately after the sale of the business.(g) The collection, refund, and penalty provisions of the Tax Code, Title 2, Subtitle B, apply to payments required under successor's liability. Failure of a purchaser to pay the assessment of successor's liability in a timely fashion or to request a hearing thereon will result in a penalty of 10% as provided by the Tax Code, Title 2, Subtitle B, in addition to any amounts of penalty previously assessed against the seller. Successors cannot challenge the validity of the underlying liability of the predecessor.(h) The sale of a business or stock of goods by a bankruptcy trustee or by the administrator, executor, or guardian in an estate or probate proceeding is not a sale by a vendor or former owner for purposes of this section and the purchaser will not incur liability hereunder.",
            "sourceNote": "Source Note: The provisions of this §3.7 adopted to be effective June 9, 1992, 17 TexReg 3842."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19718&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19718",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL RULES"
            },
            "rule": {
                "number": "§3.8",
                "label": "Informant's Recovery Payment Limitations"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209545&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "209545",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) No payment may be paid to an informant without the execution of a contract signed by both the informant and the comptroller. The contract must be executed in advance of any investigation or audit activity by the comptroller.(b) The comptroller may contract for the recovery of state money or property. If another state agency is responsible for the money or property on which the information is provided, the comptroller will not enter into a contract with the informant until a letter of authorization is furnished to the comptroller from the affected agency.(c) Payments may not be paid until and unless the recovery of the state funds on which the informant's payment is contingent are complete and uncontested. For the purposes of this statute and section, the term \"complete\" shall mean that moment in time when all reasonable efforts by the state to collect the money or property on which the information was provided have been exhausted.(d) The amount of the payment is limited to 5.0% of the revenue recovered and applies only to amounts which are due to the state at the date the contract is executed. This limitation applies to the payment to be paid from all claims and causes of action whatsoever as have arisen or may arise in connection with the information provided to the state by the informant.(e) Payments will not be made if the amount of the recovery is less than $2,000.(f) Payment will not be made to any informant before the expiration of six months after the recovery of state money or property is complete and uncontested.(g) The comptroller shall make the final determination as to the amount of state money or property received by the state and the amount of the payment due the informant in accordance with the informant contract. The informant has no authority to appeal the amount of the payment so determined by the comptroller. Should it later be determined that the money or property recovered by the state under a contract entered into under this section is not owed and must be refunded, the state shall have the right to recover from the informant any payments which were made to him erroneously.(h) The phrase \"state money or property\" as used in this section shall not include money or property owed to a local governmental entity or metropolitan transit authority. It shall include any statutory penalties or interest due on taxes owed to the state.",
            "sourceNote": "Source Note: The provisions of this §3.8 adopted to be effective January 4, 1989, 13 TexReg 6351; amended to be effective March 20, 1990, 15 TexReg 1239; amended to be effective February 5, 1992, 17 TexReg 473."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209545&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "209545",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL RULES"
            },
            "rule": {
                "number": "§3.9",
                "label": "Electronic Filing of Returns and Reports; Electronic Transfer of Certain Payments by Certain Taxpayers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=160461&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "160461",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Voluntary electronic filing of returns and reports. The comptroller may authorize a taxpayer to file any report or return required to be filed with the comptroller under Tax Code, Title 2 (State Taxation), by means of electronic transmission under the following circumstances:(1) the taxpayer or its authorized agent has registered with the comptroller to use an approved reporting method, such as WebFile, or the taxpayer is filing a return or report other than a return showing a tax liability; and(2) the method of electronic transmission of each return or report complies with any requirements established by the comptroller and is compatible with the comptroller's equipment and facilities.(b) Required electronic transfer of certain payments by certain taxpayers pursuant to Tax Code, §111.0625 (Electronic Transfer of Certain Payments).(1) This paragraph is effective with the state fiscal year beginning September 1, 2018, for payments due on or after January 1, 2019. This paragraph applies to a taxpayer who pays the comptroller a total of $500,000 or more in any single category of payments or taxes during the preceding state fiscal year, and whom the comptroller reasonably anticipates will pay at least that amount during the current state fiscal year. The comptroller shall notify the taxpayer of this electronic funds transfer requirement as provided in subsection (f) of this section. The taxpayer shall transfer all payments in any category of payments or taxes that totaled $500,000 or more to the comptroller using the State of Texas Financial Network (TexNet), pursuant to Chapter 15 of this title (relating to Electronic Transfer of Certain Payments to State Agencies). This requirement applies to payments due beginning January 1 of each state fiscal year in which a taxpayer is notified and continues for one calendar year. For example, a taxpayer remits $500,000 in any single category of taxes to the comptroller during the state fiscal year ending August 31, 2019. The comptroller reasonably anticipates that the taxpayer will pay at least $500,000 in the same category of payments or taxes for fiscal year ending August 31, 2020. The comptroller notifies the taxpayer of the electronic payment requirement by October 31, 2019. The taxpayer must begin transferring payments to the comptroller using TexNet beginning on January 1, 2020. The taxpayer's electronic payment requirement continues until December 31, 2020.(2) Taxpayers who paid the comptroller a total of $100,000 or more in any single category of payments or taxes and were notified by the comptroller of a TexNet payment requirement must continue to make those payments using TexNet for original or amended reports filed for the calendar year for which the taxpayer was notified.(3) Beginning January 1, 2019, taxpayers who paid $100,000 or more, but less than $500,000, in any single category of payments or taxes during the preceding state fiscal year, and whom the comptroller reasonably anticipates will pay at least that amount during the current state fiscal year, shall transfer all payments in that category of payments or taxes during the calendar year beginning January 1 of the current state fiscal year to the comptroller by means of electronic funds transfer as set out in paragraph (4)(C) of this subsection. The comptroller shall notify the taxpayer of this electronic funds transfer requirement as provided in subsection (f) of this section. This requirement applies to payments due beginning January 1 of each state fiscal year for which a taxpayer is notified and continues for one calendar year. For example, a taxpayer remits $100,000 in any single category of taxes to the comptroller during the state fiscal year ending August 31, 2019. The comptroller reasonably anticipates that the taxpayer will pay at least $100,000 in the same category of payments or taxes for fiscal year ending August 31, 2020. The comptroller notifies the taxpayer of the electronic payment requirement by October 31, 2019. The taxpayer must begin transferring payments to the comptroller using one of the methods described in paragraph (4)(C) of this subsection beginning on January 1, 2020. The taxpayer's electronic payment requirement continues until December 31, 2020.(4) Taxpayers who paid at least $10,000, but less than $100,000, in a single category of payments or taxes as listed in subparagraph (A) of this paragraph during the preceding state fiscal year, and whom the comptroller reasonably anticipates will pay at least that amount during the current state fiscal year, shall transfer all payments in that category of payments or taxes during the calendar year beginning January 1 of the current state fiscal year to the comptroller by means of electronic funds transfer as set out in subparagraph (C) of this paragraph.(A) This paragraph applies only to:(i) state and local sales and use taxes;(ii) direct payment sales tax;(iii) gas severance tax;(iv) oil severance tax;(v) franchise tax;(vi) gasoline tax;(vii) diesel fuel tax;(viii) hotel occupancy tax;(ix) insurance premium taxes;(x) mixed beverage gross receipts tax;(xi) mixed beverage sales tax; and(xii) motor vehicle rental tax.(B) The comptroller may add or remove a category of payments or taxes to or from this paragraph if the comptroller determines that such action is necessary to protect the interests of the state or of taxpayers.(C) Payments under this paragraph shall be made by those electronic funds transfer methods approved by the comptroller, which include, but are not limited to, TexNet, electronic check (WebEFT), and the electronic transmission of credit card information. The comptroller may require payments in specific categories to be made by specific methods of electronic funds transfer.(D) A taxpayer required under this paragraph to use electronic funds transfer who cannot comply due to hardship, impracticality, or other valid reason may submit a written request to the comptroller for a waiver of the requirement.(c) Payment date for electronic transfer of funds.(1) Pursuant to §15.33 of this title (relating to Determination of Settlement Date), a person who enters payment information into TexNet may choose either to accept the settlement date that TexNet offers or enter a settlement date up to 30 days from the business day after payment is submitted. TexNet will offer the business day following the day on which payment information is entered into TexNet, provided that the information is entered by 6:00 p.m. central time on any business day.(2) A taxpayer who files tax returns and makes payments through the electronic data interchange (EDI) system must submit the payment information to the comptroller by 2:30 p.m. central time.(3) A taxpayer who makes payment by an electronic funds transfer method approved by the comptroller other than TexNet or the EDI system must transmit payment information by 11:59 p.m. central time on the date payment is due.(d) The administrative rules found in Chapter 15 of this title on electronic funds transfer under Government Code, §404.095 (Electronic Transfer of Certain Payments) using TexNet apply to all such payments to the comptroller.(e) Required electronic filing of certain reports by certain taxpayers.(1) Reports required by Tax Code, §111.0626 (Electronic Filing of Certain Reports).(A) Pursuant to Tax Code, §111.0626(a)(1), taxpayers who are required to use electronic funds transfer for payments of certain taxes must also file report data electronically, including reports required by the International Fuel Tax Agreement. This requirement applies to:(i) state and local sales and use taxes;(ii) direct payment sales tax;(iii) gas severance tax;(iv) oil severance tax; and(v) motor fuel tax.(B) Pursuant to Tax Code, §111.0626(a)(2), taxpayers who owe no tax and are required to file an information report under Tax Code, §171.204 (Information Report) must file the information report electronically.(C) Pursuant to Tax Code, §111.0626(b-1), taxpayers who paid $50,000 or more during the preceding fiscal year must file report data electronically. A taxpayer filing a report electronically may use an application provided by the comptroller, software provided by the comptroller, or commercially available software that satisfies requirements prescribed by the comptroller. This subparagraph only applies after issuance to the taxpayer of the 60 days notice required by subsection (f) of this section.(2) Reports by brewers, manufacturers, brewpubs, wholesalers, and distributors of alcoholic beverages required by Tax Code, Chapter 151, Subchapter I-1 (Reports by Persons Involved in the Manufacture and Distribution of Alcoholic Beverages).(A) For purposes of this paragraph, a \"seller\" means a person who is a brewer with a brewer's self-distribution permit, manufacturer with a manufacturer's self-distribution license, brewpub, wholesaler, winery, distributor, or package store local distributor, as described in Tax Code, §§151.461(1) - (4) and (6) (Definitions), 151.465 (Applicability to Certain Brewers), and 151.466 (Applicability to Certain Manufacturers); and a \"retailer\" means a person who holds one or more of the permits listed in Tax Code, §151.461(5).(B) On or before the 25th day of each month, each seller holding a comptroller-issued tax identification number must file a report of alcoholic beverage sales to retailers in this state. The report must be filed by a means of electronic transmission approved by the comptroller. The report must contain the following information:(i) each Texas Alcoholic Beverage Commission (TABC) permit or license associated with the seller's comptroller-issued tax identification number;(ii) the TABC permit or license number for each seller location from which a sale was made to a retailer during the preceding calendar month;(iii) the TABC permit or license number, comptroller-issued tax identification number, and TABC trade name and physical address (street name and number, city, state, and zip code) of each retail location to which the seller sold alcoholic beverages during the preceding calendar month;(iv) the information required by Tax Code, §151.462(b) (Reports by Brewers, Manufacturers, Brewpubs, Wholesalers and Distributors) regarding the seller's monthly sales to each retailer holding a separate TABC permit or license, including:(I) the individual container size of each product, such as the individual bottle or can container size, sold to retailers;(II) the brand name of the alcoholic beverage sold;(III) the beverage class code for distilled spirits, wine, beer, or malt beverage;(IV) the Universal Product Code (UPC) of the alcoholic beverage sold;(V) the number of individual containers of alcoholic beverages sold for each brand, UPC, and container size. Multi-unit packages, such as cases, must be broken down into the number of individual bottles or cans;(VI) the total selling price of the containers sold; and(v) any other information deemed necessary by the comptroller for the efficient administration of this subsection.(C) A brewpub license holder not performing activities described under Alcoholic Beverage Code, §74.08 (Sales by Brewpub License Holders to Retailers) is not required to file the report described by subparagraph (B) of this paragraph.(D) If a person fails to file a report required by subparagraph (B) of this paragraph, or fails to file a complete report, the comptroller may:(i) suspend or cancel one or more permits issued to the person under Tax Code, §151.203 (Suspension and Revocation of Permit);(ii) impose a civil penalty under Tax Code, §151.703(d) (Failure to Report or Pay Tax);(iii) impose a criminal penalty under Tax Code, §151.709 (Failure to Furnish Report; Criminal Penalty); and/or(iv) notify the TABC of the failure and the TABC may take administrative action against the person for the failure under the Alcoholic Beverage Code.(E) In addition to the penalties imposed under subparagraph (C) of this paragraph, if a person violates Tax Code, Chapter 151, Subchapter I-1, or this paragraph, the comptroller shall collect from the seller an additional civil penalty of not less than $25 or more than $2,000 for each day the violation continues.(F) The requirements of this paragraph related to brewpubs apply to sales occurring on or after September 1, 2019. The requirements of this paragraph related to permittees other than brewpubs, apply to sales occurring on or after September 1, 2011.(3) Reports by wholesalers and distributors of cigarettes. Pursuant to Tax Code, §154.212 (Reports by Wholesalers and Distributors of Cigarettes), on or before the 25th day of each month each wholesaler or distributor of cigarettes shall file a report of sales to retailers in this state. The report must be filed by a means of electronic transmission approved by the comptroller and must contain the following information for the preceding calendar month's sales made to each retailer:(A) the name of the retailer and the address, including city and zip code, of the retailer's outlet location to which the wholesaler or distributor delivered cigarettes;(B) the comptroller-assigned taxpayer number of the retailer, if the wholesaler or distributor is in possession of the number;(C) the cigarette permit number of the outlet location to which the wholesaler or distributor delivered cigarettes;(D) the monthly net sales made to the retailer, including the quantity and units of cigarettes in stamped packages sold to the retailer and the price charged to the retailer; and(E) any other information deemed necessary by the comptroller for the efficient administration of this subsection.(4) Reports by wholesalers and distributors of cigars and tobacco products. Pursuant to Tax Code, §155.105 (Reports by Wholesalers and Distributors of Cigars and Tobacco Products), on or before the 25th day of each month each wholesaler or distributor of cigars or tobacco products shall file a report of sales to retailers in this state. The report must be filed by a means of electronic transmission approved by the comptroller and must contain the following information for the preceding calendar month's sales made to each retailer:(A) the name of the retailer and the address, including the city and zip code, of the retailer's outlet location to which the wholesaler or distributor delivered cigars or tobacco products;(B) the comptroller-assigned taxpayer number of the retailer, if the wholesaler or distributor is in possession of the number;(C) the tobacco permit number of the outlet location to which the wholesaler or distributor delivered cigars or tobacco products;(D) the monthly net sales made to the retailer, including the quantity and units of cigars and tobacco products sold to the retailer and the price charged to the retailer;(E) the net weight as listed by the manufacturer for each unit of tobacco products other than cigars; and(F) any other information deemed necessary by the comptroller for the efficient administration of this subsection.(5) Reports by manufacturers and distributors of certain off-highway vehicles purchased outside this state. Pursuant to Tax Code, Chapter 151, Subchapter I-2 (Reports by Manufacturers and Distributors of Certain Off-highway Vehicles Purchased Outside This State) manufacturers and distributors must file a report on or before March 1 of each year, listing each warranty issued by the manufacturer for each new off-highway vehicle that was, during the preceding calendar year, sold to a resident of this state by a retailer located outside this state. This paragraph is effective September 1, 2019 for manufacturers and September 1, 2021 for distributors.(A) For the purposes of this paragraph:(i) Manufacturer means a person that manufactures off-highway vehicles and is required to hold a manufacturer's license under Occupations Code, Chapter 2301.(ii) Distributor means a person that distributes off-highway vehicles and is required to hold a distributor's license under Occupations Code, Chapter 2301.(iii) New off-highway vehicle means an off-highway vehicle that has not been the subject of a retail sale.(iv) Off-highway vehicle includes:(I) All-terrain vehicle--A vehicle that is equipped with a seat or seats for the use of the rider and one or more passengers, designed to propel itself with three or more tires in contact with the ground, designed by the manufacturer for off-highway use, not designed by the manufacturer primarily for farming or lawn care, and not more than 50 inches in width;(II) Off-highway motorcycle--A vehicle, other than a tractor or moped, that is equipped with a rider's saddle, designed to propel itself with not more than three tires on the ground, and designed by the manufacturer for off-highway use only;(III) Recreational off-highway vehicle--A vehicle that is equipped with a seat or seats for the use of the rider and one or more passengers, designed to propel itself with four or more tires in contact with the ground, designed by the manufacturer for off-highway use, and not designed by the manufacturer primarily for farming or lawn care;(IV) Sand rail--A vehicle that is designed or built primarily for off-highway use in sandy terrains, including for use on sand dunes; has a tubular frame, an integrated roll cage, and an engine that is rear-mounted or placed midway between the front and rear axles of the vehicle; and has a gross vehicle weight of not less than 700 pounds and not more than 2,000 pounds; or(V) Utility vehicle--A vehicle that is equipped with side-by side seating for the use of the operator and one or more passengers, designed to propel itself with at least four tires in contact with the ground, designed by the manufacturer for off-highway use, and designed by the manufacturer primarily for utility work and not for recreational purposes.(B) The report must be filed by a means of electronic transmission approved by the comptroller and contain the following information for each new off-highway vehicle:(i) the vehicle identification number;(ii) the make, model, and model year of the vehicle;(iii) the total sales price, or, if the total sales price is not available, the manufacturer suggested retail price; and(iv) the name and address, including street name and number, city, and zip code, of the purchaser of the vehicle.(C) A manufacturer or distributor must file a report, even if they have no warranty information to report.(D) If a manufacturer or distributor fails to file a report or files an incomplete report, the comptroller:(i) may impose a civil penalty of $50 under Tax Code, §151.703(d) for each report not filed or for each incomplete report;(ii) shall impose a civil penalty of not less than $25 or more than $2,000 for each day the violation continues under Tax Code, §151.485 (Civil Penalty); and(iii) may notify the Texas Department of Motor Vehicles (TxDMV) of the failure. The TxDMV may take administrative action against the manufacturer or distributor for the failure under Occupations Code, Chapter 2301.(6) Except as provided by Tax Code, §111.006 (Confidentiality of Information), information contained in the reports required by paragraphs (2), (3), (4), and (5) of this subsection is confidential and not subject to disclosure under Government Code, Chapter 552 (Public Information).(7) The reports required by paragraphs (2), (3), (4), and (5) of this subsection are required in addition to any other reports required by the comptroller.(8) The reports required by paragraphs (2), (3), and (4) of this subsection must be filed each month even if no sales were made to retailers during the preceding month.(f) Notification of affected persons. The comptroller shall notify taxpayers who are affected by subsection (b) or (e)(1) of this section no less than 60 days before the first required electronic transmittal of report data or payment.(g) A taxpayer who is required to file report data electronically under subsection (e)(1) of this section may submit a written request to the comptroller for a waiver of the requirement. A taxpayer who is required to electronically file a report under subsection (e)(3) or (4) of this section may submit a written request to the comptroller for a waiver of the requirement and authorization of an alternative filing method.(h) Pursuant to Tax Code, §111.063 (Penalty for Failure to Use Electronic Transfers and Filings), the comptroller may impose separate penalties of 5.0% of the tax due for failure to pay the tax due by electronic funds transfer, as required by this section, or for failure to file a report electronically, as required by Tax Code, §111.0626.(i) Protest payments by electronic funds transfer. Protested tax payments made under Tax Code, §112.051 (Protest Payment Required), must be accompanied by a written statement that fully and in detail sets out each reason for recovery of the payment. Protested tax payments are not required to be submitted by electronic funds transfer.(1) A person who is otherwise required to pay taxes by means of electronic funds transfer may make protested payments by other means, including cash, check, or money order. A written statement of protest that fully and in detail sets out each reason for recovery of the payment must accompany the non-electronic payment.(2) A person may submit a protested tax payment by means of electronic funds transfer if the written statement is submitted in compliance with the requirements set out in subparagraph (A) of this paragraph.(A) A person may submit a protest payment by means of electronic funds transfer only if:(i) a written statement of protest is delivered by facsimile transmission or hand-delivery at one of the comptroller's offices in Austin, Texas;(ii) the written statement of protest is delivered to the comptroller within 24 hours before or after the electronic transfer of the payment;(iii) the written statement of protest identifies the date of electronic payment, the taxpayer number under which the electronic payment was or will be submitted, and the amount paid under protest; and(iv) the electronic payment is specifically identified as a protest payment by the method, if any (such as a special transaction code or accompanying electronic message), that the comptroller may designate as appropriate to the method by which the person transferred the funds electronically.(B) The failure of a taxpayer to submit a written statement in compliance with subparagraph (A) of this paragraph means the tax payment that the taxpayer made is not considered to be a protest tax payment as provided by Tax Code, §112.051.(C) If a person submits multiple written statements of protest that relate to the same electronic payment, then only the first statement that the comptroller actually receives is considered the written protest for purposes of Tax Code, §112.051.",
            "sourceNote": "Source Note: The provisions of this §3.9 adopted to be effective August 13, 1991, 16 TexReg 4173; amended to be effective January 24, 1995, 20 TexReg 151; amended to be effective February 19, 1997, 22 TexReg 1671; amended to be effective May 27, 2002, 27 TexReg 4585; amended to be effective December 2, 2007, 32 TexReg 8519; amended to be effective February 24, 2008, 33 TexReg 1600; amended to be effective November 8, 2009, 34 TexReg 7653; amended to be effective March 26, 2013, 38 TexReg 2019; amended to be effective April 15, 2015, 40 TexReg 2097; amended to be effective April 5, 2016, 41 TexReg 2493;amended to be effective November 19, 2019, 44 TexReg 7057; amended to be effective October 13, 2020, 45 TexReg 7268; amended to be effective July 19, 2022, 47 TexReg 4138."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=160461&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "160461",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL RULES"
            },
            "rule": {
                "number": "§3.10",
                "label": "Taxpayer Bill of Rights"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182754&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182754",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Purposes.(1) Various state and federal laws that govern the comptroller's and taxpayers' responsibilities concerning the collection and payment of taxes and fees are addressed in other sections of this title. The Taxpayer Bill of Rights seeks to strike a balance and find ways to protect taxpayers' rights without interfering with the comptroller's responsibility to collect taxes and assess the accuracy of returns.(2) The comptroller is legally required to establish a \"Compact with Texans,\" which provides taxpayers with information about how customer service will be performed and monitored. This section explains the comptroller's customer service responsibilities and commitments to ensure that taxpayers receive the treatment and service to which they are entitled.(b) Taxpayers are entitled to useful resources and prompt and accurate information that is provided in a professional manner.(1) The comptroller's website, Window on State Government, will contain information that is well-organized and useful to help taxpayers locate answers to their questions. Taxpayers can also elect to receive email updates relating to agency policies and practices through Window on State Government.(2) Comptroller staff will respond promptly to requests for information whether in person, by phone, or in writing.(3) The comptroller will seek feedback from taxpayers to ensure that they are receiving prompt and accurate responses to requests for information and that agency staff performs in a courteous and professional manner.(4) The comptroller will write rules, publications, forms, and information on the agency's website in plain English and will promptly update information to reflect changes in laws and agency policy. Upon request, the comptroller will make agency publications available in different formats to meet taxpayers' needs.(5) The comptroller will maintain the State Tax Automated Research (STAR) system on the comptroller's website to provide taxpayers with an additional source of information. All private letter rulings, including information about rulings that have been revoked or modified, issued in accordance with §3.1 of this title (relating to Private Letter Rulings and General Information Letters) will be maintained on STAR.(c) Detrimental reliance policy. The comptroller will give relief to a taxpayer who follows erroneous advice given to the taxpayer by an agency employee. The taxpayer, however, must have provided complete and accurate information to the agency employee. The comptroller will give relief only if that taxpayer, and not a third party, was harmed by following the erroneous advice. See also §3.1 of this title.(1) Unless otherwise provided by this section, a taxpayer must affirmatively prove and provide records as requested by the comptroller to show that it meets all four parts of the following test:(A) the substance of the information or advice and its direct communication to the taxpayer must be in writing in accordance with §3.1 of this title;(B) the taxpayer followed the information or advice;(C) the taxpayer gave sufficient information to have resulted in correct advice and did not misrepresent information or withhold or conceal information that would affect the advice; and(D) the taxpayer has suffered, or will suffer, harm based on the erroneous advice unless the comptroller provides relief to the taxpayer.(2) Sales and use taxes under Tax Code, Chapter 151. Both sellers and purchasers of taxable items can receive relief based on detrimental reliance. Sellers of taxable items may receive waivers of tax, penalty, and/or interest. The following additional guidelines will be used when a taxpayer has proven detrimental reliance related to the purchase of taxable items, provided the taxpayer meets the first three parts of the test stated in paragraph (1)(A) - (C) of this subsection and provided records as requested by the comptroller:(A) all penalties and interest will be waived;(B) tax will be waived on materials directly utilized and consumed in the performance of a service for, or sale of a product to, an unrelated third party;(C) tax can only be waived for indirect materials or services when the taxpayer can prove that these items were used in computing prices or bids;(D) tax on assets or tools directly used in the performance of services or sales may be partially exempted based upon their purchase dates and remaining life of the assets. This presumes that prices can be increased on future sales. A taxpayer with a long term contract or fixed bid can substantiate a larger waiver. For the purposes of computing the remaining life and value of an asset, the comptroller will use a 48 month useful life and straight line depreciation. The taxpayer cannot use other methods of valuation; and(E) special consideration for waiver will be made if a taxpayer can prove that the advice was used in a decision to locate facilities in Texas.(3) The following persons shall receive waivers of a tax, charge or fee that was not collected, plus penalty, and/or interest, if all elements of detrimental reliance are proven as indicated by paragraph (1) of this subsection and documents are made available to the comptroller to verify such a claim:(A) persons who must collect and remit the fee on the sale of batteries under Health and Safety Code,§361.138;(B) persons who must collect and remit the emergency service fee under Health and Safety Code, §771.071;(C) persons who must collect and remit the emergency service fee for wireless telecommunications under Health and Safety Code, §771.0711;(D) retail sellers of prepaid 9-1-1 emergency service fee under Health and Safety Code, §771.0712;(E) persons who must collect and remit the equalization surcharge under Health and Safety Code, §771.072;(F) surplus lines licensees who must collect premium taxes from policyholders to remit to the state under Insurance Code, Chapter 225;(G) persons who must collect and remit the Texas emissions reduction plan surcharge under Tax Code, §151.0515 or §152.0215;(H) persons who sell or rent motor vehicles and who must collect and remit taxes under Tax Code, Chapter 152;(I) persons who must collect and remit hotel occupancy taxes under Tax Code, Chapter 156;(J) persons who sell boats and boat motors who must collect and remit taxes under Tax Code, Chapter 160;(K) persons who must collect and remit the fireworks tax under Tax Code, Chapter 161; and(L) persons who must collect and remit the fee on delivery of certain petroleum products under Water Code, §26.3574.(4) Taxes, fees, and charges other than those identified in paragraphs (2) and (3) of this subsection. If a taxpayer proves detrimental reliance in relation to the taxes, fees, and charges administered by the comptroller other than those identified in paragraphs (2) and (3) of this subsection, the comptroller will only consider granting a waiver of penalty and/or interest for the period(s) covered by the report, audit, or assessment.(d) The customer service liaison.(1) The comptroller employs a customer service liaison to handle taxpayer complaints. The customer service liaison has the authority to determine if the complaint is valid and to work with staff to reach a resolution that is satisfactory to both the taxpayer and the agency. Certain matters are not within the authority of the customer service liaison to address, including disputes about the meaning of agency rules, disputes about taxability issues that are pending in the administrative hearings process or complaints about the law itself.(2) Contact information for the customer service liaison will be prominently displayed on comptroller materials, including on the agency's website and webpage devoted to the Compact with Texans, and in telephone directories statewide.(3) If taxpayers approach the Governor's Citizens Assistance Office with disagreements with or about employees, operations, or services at the comptroller's office, the customer service liaison will be notified and will take appropriate action.(4) The customer service liaison is required by law to submit a biennial report to the legislature to track systemic problems and identify areas that can be improved.(5) Complaints and concerns submitted to the customer service liaison will receive a response within 10 working days.(e) The comptroller helps taxpayers comply with the law and protect their rights.(1) Taxpayers who are not currently under audit or investigation and who come forward voluntarily to disclose their liability and pay taxes due may be eligible to have penalties and interest waived by entering into a Voluntary Disclosure Agreement. General information about these agreements is available on the comptroller's website.(2) Information provided by taxpayers will be kept confidential to the extent allowed by law.(3) Taxpayers may bring an attorney, accountant, or other representative to an audit conference and may also record the proceedings.(4) Taxpayers may request a review of audit results by an independent audit reviewer and proceedings related to the review may occur at locations in Texas close to a taxpayer's primary place of business.(5) Taxpayers have the right to request that staff from the Tax Policy Division be included in disputes and discussions about taxability issues when taxpayers are involved in an audit examination of any kind, or negotiating a voluntary disclosure agreement.(6) The comptroller will not audit a person based on information provided in a request for a private letter ruling or general information letter under §3.1 of this title. However, if a person is otherwise selected for audit, the comptroller may review any letter or ruling received by that person to ensure compliance. Also, issuance of a letter or ruling does not prohibit the comptroller from auditing a person.(f) The comptroller welcomes input from taxpayers and the business community in order to promote voluntary compliance.(1) The comptroller welcomes suggestions from taxpayers on ways to improve the information and customer service the agency provides. Such suggestions can be submitted to the customer service liaison. See subsection (d) of this section.(2) The comptroller will invite representatives and interested parties to participate in roundtable discussions on specific issues, or to learn about the needs and problems of a particular industry. The comptroller will review recommendations from these meetings internally, and will incorporate them into rules and procedures as appropriate. The comptroller will also consider comments and questions received from businesses, industry representatives, and others when developing rules and procedures. The comptroller circulates proposed amendments to existing rules and proposed new rules to a comptroller-appointed taxpayer advisory group to obtain their comments prior to filing with the Texas Register.",
            "sourceNote": "Source Note: The provisions of this §3.10 adopted to be effective September 5, 1999, 24 TexReg 6805; amended to be effective January 28, 2013, 38 TexReg 386."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182754&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182754",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL RULES"
            },
            "rule": {
                "number": "§3.11",
                "label": "Petition for Adoption of Rules"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=194425&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "194425",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Any interested person may petition the comptroller for the adoption, repeal, or amendment of a rule by filing a petition as provided in this section. The term \"interested person\" as used in this section means a resident of this state; a business entity located in this state; a governmental subdivision located in this state; or a public or private organization located in this state that is not a state agency.(b) A petition for the adoption, repeal, or amendment of a rule must be submitted in writing to: Tax Policy Division, P.O. Box 13528, Austin, Texas 78711-3528. A separate petition is required for each rule request. Each petition must include:(1) the name and address of the petitioner;(2) a brief explanation of the rule request;(3) the text of the rule prepared in a manner to indicate the words to be added or deleted from the text of the current rule, if any;(4) a statement of the statutory or other authority under which the rule is to be promulgated; and(5) the justification, reason, or public benefit anticipated as a result of adopting, repealing, or amending the rule.(c) A petition may be denied for failure to comply with the requirements of subsections (a) and (b) of this section.(d) Within 60 days after submission of a petition, the comptroller shall consider the petition and either deny the petition in writing, stating the reason for the denial, or initiate rulemaking proceedings in accordance with Government Code, Chapter 2001 (Administrative Procedure Act).",
            "sourceNote": "Source Note: The provisions of this §3.11 adopted to be effective February 12, 2017, 42 TexReg 479."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=194425&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "194425",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL RULES"
            },
            "rule": {
                "number": "§3.12",
                "label": "Hotel Projects, Project Financing Zones, and Qualified Hotel Projects"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=173030&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "173030",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Hotel Projects.(1) Definitions. The following words and terms, when used in this subsection, shall have the following meanings, unless the context clearly indicates otherwise.(A) Convention center entertainment-related facilities--Facilities owned by or located on land owned by the municipality or the nonprofit corporation acting on behalf of an eligible central municipality, and designed and primarily used for convention center events, activities, and performances. Examples of this term are a performance hall, permanent or temporary stage, amphitheater, and pavilion. The term does not include facilities designed for a specific use. Examples of facilities that do not meet this definition include an amusement park, fitness or sports center, museum, sports venue, waterpark, or zoo.(B) Convention center facilities--Facilities primarily used to host conventions and meetings. The term means civic centers, civic center buildings, auditoriums, exhibition halls, and coliseums that are owned by the municipality or other governmental entity or that are managed in whole or part by the municipality.(i) The term includes parking areas or facilities that are for the parking or storage of conveyances and that are located at or in the vicinity of other convention center facilities.(ii) The term also means:(I) a hotel owned by or located on land that is owned by an eligible central municipality or by a nonprofit corporation acting on behalf of an eligible central municipality and that is located within 1,000 feet of a convention center facility owned by the municipality; or(II) a hotel that is owned in part by an eligible central municipality described by subparagraph (C)(iv) of this paragraph and that is located within 1,000 feet of a convention center facility.(iii) For the purpose of this subparagraph, \"meetings\" means gatherings of people that enhance and promote tourism and the convention and hotel industry.(C) Eligible central municipality--(i) A municipality with a population of more than 140,000 but less than 1.5 million that is located in a county with a population of one million or more and that has adopted a capital improvement plan for the construction or expansion of a convention center facility;(ii) a municipality with a population of 250,000 or more that:(I) is located wholly or partly on a barrier island that borders the Gulf of Mexico;(II) is located in a county with a population of 300,000 or more; and(III) has adopted a capital improvement plan to expand an existing convention center facility;(iii) a municipality with a population of 116,000 or more that:(I) is located in two counties both of which have a population of 660,000 or more; and(II) has adopted a capital improvement plan for the construction or expansion of a convention center facility;(iv) a municipality with a population of less than 50,000 that contains a general academic teaching institution that is not a component institution of a university system, as those terms are defined by Education Code, §61.003 (Definitions); or(v) a municipality with a population of 640,000 or more that:(I) is located on an international border; and(II) has adopted a capital improvement plan for the construction or expansion of a convention center facility.(D) Eligible tax proceeds--Local ad valorem taxes, local sales and use taxes, local hotel occupancy taxes, local mixed beverage gross receipts taxes, and local mixed beverage sales taxes that are generated, paid, or collected by a qualified hotel project or facilities ancillary to the hotel, and that may be rebated, refunded, or paid to the owner of a qualified hotel project under an agreement with a municipality, county, or other governmental body.(E) Facility ancillary to the hotel--A facility owned by or located on land owned by a municipality or, for an eligible central municipality, a nonprofit corporation acting on its behalf that provides necessary support for the operation and function of the hotel, and that is:(i) located within 1,000 feet of a convention center facility owned by the municipality or hotel, as measured from the closest exterior wall of the ancillary facility in a single-tenant building or closest demising wall of the ancillary facility in a multi-tenant building to the closest exterior wall of the convention center facility or hotel; and(ii) located in a hotel project owned by or located on land owned by:(I) an eligible central municipality or a nonprofit organization acting on behalf of an eligible central municipality;(II) a municipality with a population of 173,000 or more that is located within two or more counties, including a hotel project not owned by or located on land owned by the municipality if the project is located on land that is owned by the federal government;(III) a municipality with a population of 96,000 or more that is located in a county that borders Lake Palestine;(IV) a municipality with a population of 96,000 or more that contains the headwaters of the San Gabriel River;(V) a municipality with a population of at least 99,900 but not more than 111,000 that is located in a county with a population of at least 135,000;(VI) a municipality with a population of at least 110,000 but not more than 135,000 at least part of which is located in a county with a population of not more than 135,000;(VII) a municipality with a population of at least 9,000 but not more than 10,000 that is located in two counties, each of which has a population of at least 662,000 and a southern border with a county with a population of 2.3 million or more;(VIII) a municipality with a population of at least 200,000 but not more than 300,000 that contains a component institution of the Texas Tech University System;(IX) a municipality with a population of at least 95,000 that borders Lake Lewisville;(X) a municipality that:(-a-) contains a portion of Cedar Hill State Park;(-b-) has a population of more than 45,000;(-c-) is located in two counties, one of which has a population of more than two million and one of which has a population of more than 149,000; and(-d-) has adopted a capital improvement plan for the construction or expansion of a convention center facility;(XI) a municipality with a population of less than 6,000 that:(-a-) is located in two counties each with a population of 600,000 or more that are both adjacent to a county with a population of two million or more;(-b-) has full-time police and fire departments; and(-c-) has adopted a capital improvement plan for the construction or expansion of a convention center facility;(XII) a municipality with a population of at least 56,000 that:(-a-) borders Lake Ray Hubbard; and(-b-) is located in two counties, one of which has a population of less than 80,000;(XIII) a municipality with a population of more than 83,000, that borders Clear Lake, and that is primarily located in a county with a population of less than 300,000;(XIV) a municipality with a population of less than 2,000 that:(-a-) is located adjacent to a bay connected to the Gulf of Mexico;(-b-) is located in a county with a population of 290,000 or more that is adjacent to a county with a population of four million or more; and(-c-) has a boardwalk on the bay;(XV) a municipality with a population of 75,000 or more that:(-a-) is located wholly in one county with a population of 575,000 or more that is adjacent to a county with a population of four million or more; and(-b-) has adopted a capital improvement plan for the construction or expansion of a convention center facility;(XVI) a municipality with a population of less than 75,000 that is located in three counties, at least one of which has a population of at least four million; or(XVII) a home-rule municipality that borders the Gulf of Mexico with a population of more than 3,000 but less than 5,000.(iii) The term includes convention center entertainment-related facilities, meeting spaces, restaurants, shops, street and water and sewer infrastructure necessary for the operation of the hotel or ancillary facilities, and parking facilities.(I) Surface parking lot facilities must be located within 1,000 feet of the convention center facility or hotel, as measured from the closest marked parking space of a surface parking lot facility to the closest exterior wall of the convention center facility or hotel. Surface parking lot facilities intersected by a public road or thoroughfare are considered separate parking facilities. Only a parking lot facility that contains a marked parking space within 1,000 feet of the convention center facility or hotel will be eligible for rebates.(II) The term includes facilities ancillary to a hotel that are part of the hotel project but that may be completed in different phases of the hotel project as evidenced by documentation listed in paragraph (2) of this subsection. The term does not include existing facilities located within 1,000 feet of the hotel or convention center facility that were not constructed, developed, or remodeled as part of the hotel project.(F) Governmental body--A local governmental body with the authority to impose taxes.(G) Hotel and Convention Center Project--A project that is an existing hotel owned by the municipality or another person and a convention center facility to be acquired, constructed, equipped, or leased, that will be located within 1,000 feet of the hotel, and that will be owned by or located on land owned by the municipality. This subparagraph applies only to a municipality that:(i) is the county seat of a county that:(I) borders the United Mexican States;(II) has a population of less than 300,000; and(III) contains one or more municipalities with a population of 200,000 or more; and(ii) holds an annual jalapeño festival.(H) Hotel Project--A hotel that is owned by or located on land owned by a municipality or, for an eligible central municipality, a nonprofit corporation acting on its behalf, and located within 1,000 feet of a convention center facility owned by the municipality, as measured by the closest exterior wall of the hotel and the closest exterior wall of the convention center facility. The parking lot is not part of a convention center facility for the purpose of measuring the 1,000-foot distance requirement. The term includes a facility ancillary to the hotel as defined in subparagraph (E) of this paragraph.(I) Open for initial occupancy--The earliest date on which a member of the public obtains sleeping accommodations for consideration and the convention center is operational, as supported by records of the hotel and convention center.(J) Shop--A retail store that exclusively sells tangible personal property.(K) Tangible personal property--Personal property that can be seen, weighed, measured, felt, or touched or that is perceptible to the senses in any other manner, and includes a computer program and a telephone prepaid calling card.(2) Requirements to initiate a request for rebate, refund, or payment of taxes for a hotel project.(A) A municipality identified in paragraph (1)(E)(ii) and (G) of this subsection seeking a refund from the comptroller of state sales and use taxes, state hotel occupancy taxes, and eligible tax proceeds must submit a written request to the comptroller's Audit Division along with the following information, as applicable:(i) a copy of the certificate of formation for the nonprofit corporation acting on behalf of an eligible central municipality;(ii) a copy of the municipality's capital improvement plan;(iii) a copy of the municipality's ordinance or resolution approving the rebate agreement between the municipality or nonprofit corporation acting on behalf of an eligible central municipality, and the hotel project;(iv) a copy of the architect's plan for the hotel project;(v) a map that shows the required distances between the hotel project, including facilities ancillary to the hotel, and the convention center facility;(vi) records from the hotel, convention center, and municipality, such as guest folios and press releases, which show the date when the project was open for initial occupancy;(vii) the name and address of the hotel and the comptroller-issued taxpayer identification and location numbers that the hotel is using, or will use, to report sales and use tax, hotel occupancy tax, mixed beverage gross receipts tax, and mixed beverage sales tax;(viii) the name and comptroller-issued taxpayer identification and location numbers of each facility ancillary to the hotel;(ix) waiver of confidentiality releases signed by the authorized officer or director of the hotel and each facility ancillary to the hotel allowing the comptroller to release the facility's sales and use tax and mixed beverage sales tax information to the municipality or the nonprofit corporation acting on behalf of an eligible central municipality. A waiver of confidentiality release must be renewed annually, unless it specifically states a longer period not to exceed three years;(x) the name and telephone numbers of the contact person for the municipality or the nonprofit corporation acting on behalf of an eligible central municipality; and(xi) a completed direct deposit authorization form from the municipality or the nonprofit corporation acting on behalf of an eligible central municipality.(B) The comptroller will give the requestor written notice of the results of the request for rebate, refund, or payment of taxes for a hotel project.(3) Tax rebates for hotel projects.(A) A municipality described in paragraph (1)(E)(ii) of this subsection is entitled to receive from a hotel project 100% of the state sales and use tax and state hotel occupancy tax paid or collected by the hotel project, and eligible tax proceeds, during the first 10 years after the hotel project is open for initial occupancy. The tax rebate period ends on the tenth anniversary of the date the hotel project opened for initial occupancy.(B) Pursuant to Government Code, §2303.5055 (Refund, Rebate, or Payment of Tax Proceeds to Qualified Hotel Project), the comptroller can only rebate eligible tax proceeds that a governmental body has agreed to rebate. The agreement must be in writing and specify that the comptroller rebate the eligible tax proceeds directly to the municipality.(C) A municipality described in paragraph (1)(E)(ii)(VI-XVII) of this subsection is not entitled to receive funds from a hotel project unless the municipality has pledged the revenue derived from the hotel occupancy paid or collected from the hotel project for the payment of bonds or other obligations issued or incurred for the hotel project.(D) A municipality may not receive or pledge revenue or funds for a hotel project or hotel and convention center project unless the municipality enters into an agreement with a person for the development of the hotel project before September 1, 2019.(E) A municipality described in paragraph (1)(G) of this subsection is entitled to receive from a hotel and convention center project 100% of the state sales and use tax and state hotel occupancy tax paid or collected by the hotel project, and eligible tax proceeds, during the first 10 years after the hotel project is open for initial occupancy. The tax rebate period ends on the tenth anniversary of the date the hotel project opened for initial occupancy.(4) Multiple hotel projects.(A) A municipality described in paragraph (1)(E)(ii) of this subsection may designate more than one hotel project.(B) After a facility ancillary to the hotel has entered into a tax rebate agreement with a hotel project, the facility cannot associate with another hotel project to extend the 10-year tax rebate period in paragraph (3)(A) of this subsection.(b) Project financing zones.(1) Definitions. The following words and terms, when used in this subsection, shall have the following meanings, unless the context clearly indicates otherwise.(A) Base year amount--The amount of hotel-associated revenue collected in a project financing zone during the calendar year that includes the zone's date of designation.(B) Commenced--The date a contract to acquire, lease, construct, improve, enlarge, or equip a qualified project is executed.(C) Convention center facilities--Facilities that are primarily used to host conventions and meetings. The term means civic centers, civic center buildings, auditoriums, exhibition halls, and coliseums that are owned by the municipality or other governmental entity or that are managed in whole or part by the municipality. The term includes:(i) parking areas or facilities that are for the parking or storage of conveyances and that are located at or in the vicinity of other convention center facilities; and(ii) a hotel owned by or located on land owned by an eligible central municipality or a nonprofit organization acting on behalf of an eligible central municipality and that is located within 1,000 feet of a convention center facility owned by the municipality.(D) Date of designation--The date a municipality by ordinance or agreement under Local Government Code, Chapter 380 (Miscellaneous Provisions Relating to Municipal Planning and Development) designates a project financing zone.(E) Hotel-associated revenue--The amount of tax revenue that is the sum of the following:(i) state sales and use taxes and state hotel occupancy taxes collected from all hotels located in a project financing zone, excluding the state tax revenue received from a qualified hotel project that exists on the zone's date of designation; and(ii) the mixed beverage gross receipts tax and mixed beverage sales tax revenue collected from all mixed beverage permittees at hotels located in the project financing zone, excluding the local mixed beverage taxes disbursed to the municipality under Tax Code, §183.051 (Mixed Beverage Tax Clearance Fund).(F) Incremental hotel-associated revenue--The amount of hotel-associated revenue received in any calendar year from hotels located within a project financing zone, including hotel-associated revenue from hotels built in the project financing zone after the year in which a municipality designates the zone, that exceeds the base year amount. After the hotel project's 10-year state tax rebate period expires, the hotel-associated revenue received from a hotel located in a hotel project that existed on the zone's date of designation is included in incremental hotel-associated revenue, but not included in the base year amount.(G) Project financing zone--An area within a municipality:(i) that the municipality by ordinance or by agreement under Local Government Code, Chapter 380, designates as a project financing zone;(ii) the boundaries of which are within a three-mile radius of the center of a qualified project;(iii) the designation of which specifies the longitude and latitude of the center of the qualified project; and(iv) the designation of which expires not later than the 30th anniversary of the date of designation.(H) Qualified project--(i) A convention center facility; or(ii) a multipurpose arena or venue that includes a livestock facility and is located within or adjacent to a recognized cultural district, and any related infrastructure, that is:(I) located on land owned by a municipality or by the owner of the venue;(II) partially financed by private contributions that equal not less than 40% of the project costs; and(III) related to the promotion of tourism and the convention and hotel industry.(I) Related infrastructure--The term includes any store, restaurant, on-site hotel, concession, automobile parking facility, area transportation facility, road, street, water or sewer facility, park, or other on-site or off-site improvement that relates to and enhances the use, value, or appeal of a venue, including areas adjacent to the venue, and any other expenditure reasonably necessary to construct, improve, renovate, or expand a venue, including an expenditure for environmental remediation.(J) Venue--(i) an arena, coliseum, stadium, or other type of area or facility:(I) that is used or is planned for use for one or more professional or amateur sports events, community events, or other sports events, including rodeos, livestock shows, agricultural expositions, promotional events, and other civic or charitable events; and(II) for which a fee for admission to the events is charged or is planned to be charged;(ii) a convention center, convention center facility, or related improvement, such as a civic center hotel, theater, opera house, music hall, rehearsal hall, park, zoological park, museum, aquarium, or plaza, located in the vicinity of a convention center or convention center facility owned by a municipality or a county;(iii) a tourist development area along an inland waterway;(iv) a municipal parks and recreation system, or improvements or additions to a parks and recreation system, or an area or facility that is part of a municipal parks and recreation system;(v) a project authorized by Section 4A or 4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes), as that Act existed on September 1, 1997; and(vi) a watershed protection and preservation project; a recharge, recharge area, or recharge feature protection project; a conservation easement; or an open-space preservation program intended to protect water.(2) Requirements to initiate a request for rebate, refund, or payment of taxes for a qualified project located in a project financing zone.(A) The municipality must submit a written request to the comptroller's Audit Division along with the following information, as applicable:(i) a copy of the approval from the municipality of the project financing zone's designation;(ii) documentation showing that the qualified project has commenced;(iii) a map that shows the boundaries of the project financing zone and identifies all active hotels located within those boundaries;(iv) the name and address of each hotel located within the project financing zone along with the comptroller-issued taxpayer identification and location numbers that each hotel is using to report sales and use tax, hotel occupancy tax, mixed beverage gross receipts tax, and mixed beverage sales tax;(v) the names and comptroller-issued taxpayer identification and location numbers for all shops, parking facilities, and other facilities that are located in hotels within a project financing zone;(vi) when there are fewer than four taxpayers with active sales and use tax permits or mixed beverage permits operating within a project financing zone, a waiver of confidentiality release signed by the authorized officer or director from each sales and use tax permittee and mixed beverage tax permittee located at a hotel in the project financing zone allowing the comptroller to release the sales and use tax and mixed beverage sales tax information to the municipality. A waiver of confidentiality release must be renewed annually, unless it specifically states a longer period not to exceed three years;(vii) the name and telephone numbers of the contact person with the municipality; and(viii) a completed direct deposit authorization form from the municipality.(B) If a municipality designates one project financing zone in which multiple qualified projects are located, the comptroller will consider the boundaries of the project-financing zone to be a distance of a three-mile radius from the center of each of the qualified projects.(i) The hotel-associated revenue collected from all hotels located in the project financing zone shall be included in the zone's incremental hotel-associated revenue.(ii) Payments to the municipality under clause (i) of this subparagraph will begin on the date the municipality notifies the comptroller in writing that the first qualified project has commenced.(C) The comptroller will give the requestor written notice of the results of the request to initiate rebate, refund, or payment of taxes for a qualified project in a project financing zone.(3) Tax rebates for qualified projects located in project financing zones.(A) A municipality with a population of at least 650,000 but less than 750,000, according to the most recent federal decennial census, or a municipality with a population of 1,180,000 or more that is located predominantly in a county that has a total area of less than 1,000 square miles and that has adopted a council-manager form of government, may pledge incremental hotel-associated revenue received from hotels located in a project financing zone for the payment of bonds and obligations issued to acquire, lease, construct, improve, enlarge, and equip a qualified project.(B) The municipality may designate a project financing zone. The municipality must notify the comptroller of the designation of the project financing zone not later than the 30 days after the date the municipality designates the project financing zone.(i) The boundaries of a project financing zone must be within a three-mile radius of the center of a qualified project and must be within the corporate limits of the municipality.(ii) The designation of the project financing zone must include the longitude and latitude of the center of the qualified project.(C) The municipality is entitled to receive the incremental hotel-associated revenue from hotels located in the project financing zone beginning the first day of the year after the year of the zone's date of designation.(i) Payments of the incremental hotel-associated revenue end on the last day of the month during which the designation of a project financing zone expires.(ii) The designation of a project financing zone expires not later than 30 years from the anniversary month in which the zone was designated.(D) Beginning the first day of the year after the year of the zone's date of designation, the comptroller shall deposit incremental hotel-associated revenue collected or received in a separate trust account.(i) Payments from the trust account to the municipality begin on the date a qualified project has commenced and the municipality has provided the comptroller with the documentation required under paragraph (2) of this subsection.(ii) If the qualified project has not commenced by the fifth anniversary of the first deposit to the account, the comptroller shall stop making deposits and transfer the money in the account to the general revenue fund.(iii) The comptroller may estimate the amount of incremental hotel-associated revenue that will be deposited for the calendar year and deposit that amount to the trust account. The calculation of the estimated incremental hotel-associated revenue is based on the base year amount, less the previous year revenue amount for year one revenue estimates. The next year's incremental difference is based on the revenue from the previous year and the base year. The municipality may request disbursements on a monthly basis based on the estimate. The comptroller must adjust deposits and disbursements to reflect the amount of revenue actually deposited at the end of each calendar year.(iv) A municipality must notify the comptroller if a qualified project is abandoned. The comptroller shall transfer to the general revenue fund the amount of money in the trust account that exceeds the amount needed for payment of bonds or other obligations issued or incurred under subparagraphs (A) and (C) of this paragraph.(c) Qualified hotel projects.(1) Definitions. The following words and terms, when used in this subsection, shall have the following meanings, unless the context clearly indicates otherwise.(A) Convention center facilities--Facilities that are primarily used to host conventions and meetings. The term means civic centers, civic center buildings, auditoriums, exhibition halls, and coliseums that are owned by the municipality or other governmental entity or that are managed in whole or part by the municipality. The term includes parking areas or facilities that are for the parking or storage of conveyances and that are located at or in the vicinity of other convention center facilities.(B) Eligible tax proceeds--Local ad valorem taxes, local sales and use taxes, local hotel occupancy taxes, local mixed beverage gross receipts taxes, and local mixed beverage sales taxes that are generated, paid, or collected by a qualified hotel project, or facilities ancillary to the hotel, and that may be rebated, refunded, or paid to the owner of a qualified hotel project under an agreement with a municipality, county, or other governmental entity.(C) Facility ancillary to the hotel--A facility located within 1,000 feet of a convention center facility owned by a municipality, as measured from the closest exterior wall of the ancillary facility in a single-tenant building or closest demising wall of the ancillary facility in a multi-tenant building to the closest exterior wall of the convention center facility, that is located in a qualified hotel project, and which provides necessary support for the operation and function of the hotel. Surface parking lot facilities must be located within 1,000 feet of the convention center facility, as measured from the closest marked parking space of a surface parking lot facility to the closest exterior wall of the convention center facility. Surface parking lot facilities intersected by a public road or thoroughfare are considered separate parking facilities. Only a parking lot facility that contains a marked parking space within 1,000 feet of the convention center facility will be eligible for rebates. The term includes facilities ancillary to a hotel that are part of the hotel project but that may be completed in different phases of the hotel project as evidenced by documentation listed in paragraph (2) of this subsection. The term does not include existing facilities located within 1,000 feet of the convention center facility that were not constructed, developed, or remodeled as part of the qualified hotel project.(D) Governmental body--A local governmental body with the authority to impose taxes.(E) Nonprofit municipally sponsored local government corporation--A corporation created under the Texas Transportation Corporation Act, Transportation Code, Chapter 431 (Texas Transportation Corporation Act). This definition also applies to the term \"municipally sponsored local government corporation.\"(F) Open for initial occupancy--The earliest date on which a member of the public obtains sleeping accommodations for consideration and the convention center is operational, as supported by records of the hotel and convention center.(G) Qualified hotel project--A hotel proposed to be constructed, or being constructed, by a municipality or nonprofit municipally sponsored local government corporation, including a privately owned or existing hotel selected by a municipality, that is located within 1,000 feet of a convention center owned by a municipality having a population of 1,500,000 or more, including shops, parking facilities, and any other facilities ancillary to the hotel. The parking lot is not part of a convention center facility for the purpose of measuring the 1,000-foot distance requirement.(2) Requirements to initiate a request for rebate, refund, or payment of taxes for a qualified hotel project.(A) The owner of a qualified hotel project seeking a refund from the comptroller of state sales and use taxes, state hotel occupancy taxes, and eligible tax proceeds must submit a written request to the comptroller's Audit Division along with the following information, as applicable:(i) a copy of the certificate of formation for the nonprofit municipally sponsored local government corporation;(ii) a copy of the municipality's ordinance approving the rebate agreement between the municipality or nonprofit municipally sponsored local government corporation and the qualified hotel project;(iii) a copy of the architect's plan for the qualified hotel project;(iv) a map that shows the required distances between the qualified hotel project, including facilities ancillary to the hotel, and the convention center facility;(v) records from the hotel, convention center, and municipality, such as guest folios and press releases, which show the date when the qualified hotel project was open for initial occupancy;(vi) the name and address of the hotel and the comptroller-issued taxpayer identification and location numbers that the hotel is using, or will use, to report sales and use tax, hotel occupancy tax, mixed beverage gross receipts tax, and mixed beverage sales tax;(vii) the name and comptroller-issued taxpayer identification and location numbers of each facility ancillary to the hotel;(viii) waiver of confidentiality releases signed by the authorized officer or director of the hotel and each facility ancillary to the hotel allowing the comptroller to release the facility's sales and use tax and mixed beverage sales tax information to the owner of the qualified hotel project, the municipality, or the nonprofit municipally sponsored local government corporation. A waiver of confidentiality release must be renewed annually, unless it specifically states a longer period not to exceed three years;(ix) the name and telephone numbers of the contact person for the qualified hotel project, the municipality, or the nonprofit municipally sponsored local government corporation; and(x) a completed direct deposit authorization form from the owner of the qualified hotel project, the municipality, or the nonprofit municipally sponsored local government corporation.(B) The comptroller will give the requestor written notice of the results of the request to initiate rebate, refund, or payment of taxes for a qualified hotel project.(3) Tax rebates for qualified hotel projects.(A) The owner of a qualified hotel project is entitled to receive 100% of the state sales and use tax and state hotel occupancy tax paid or collected by the qualified hotel project, and eligible tax proceeds, during the first 10 years after the qualified hotel project is open for initial occupancy. The tax rebate period ends on the tenth anniversary of the date the hotel project opened for initial occupancy. The comptroller does not have the authority to issue tax rebates until the project is open for initial occupancy.(B) Pursuant to Government Code, §2303.5055, the comptroller can only rebate eligible tax proceeds that a governmental body has agreed to rebate. The agreement must be in writing and specify that the comptroller rebate the eligible tax proceeds to the owner of the qualified hotel project.(C) Multiple qualified hotel projects.(i) A municipality described in paragraph (1)(G) of this subsection may designate more than one qualified hotel project.(ii) After a facility ancillary to the hotel has entered into a tax rebate agreement with a qualified hotel project, the ancillary facility cannot associate with another qualified hotel project to extend the 10-year tax rebate period in subparagraph (A) of this paragraph.",
            "sourceNote": "Source Note: The provisions of this §3.12 adopted to be effective March 12, 2019, 44 TexReg 1346."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=173030&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "173030",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL RULES"
            },
            "rule": {
                "number": "§3.13",
                "label": "Postmarks, Timely Filing of Reports, and Timely Payment of Taxes and Fees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=192087&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "192087",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Common carrier--A person who provides transportation of persons or property to members of the general public for compensation in the normal course of business.(2) Contract carrier--A person who provides to industrial customers, pursuant to the terms of a bilateral agreement, the transportation of persons or property for compensation in the normal course of business.(3) Receipt mark--An official mark printed by a common carrier or contract carrier recording the date and place of mailing.(4) United States Postal Service postmark--An official mark printed over a postage stamp by the United States Postal Service, canceling the stamp and recording the date and place of mailing. A postmark does not include dates recorded on postage purchased over the Internet, pre-metered stamps, or postage from postage meters unless an actual postmark is generated.(b) General provisions.(1) All reports required to be submitted to the comptroller shall be filed on or before the due date for filing the report.(2) All payments required to be remitted to the comptroller shall be paid on or before the due date for making such payments.(3) If a due date falls on a Saturday, Sunday, or legal holiday, the due date is the next business day.(4) If a report or payment is postmarked or receipt-marked on or before the applicable due date, it will be considered timely filed.(c) Timely filing or payment - postmark or receipt mark.(1) To determine whether a report has been timely filed or a payment timely made, the date of a United States Postal Service postmark or a receipt mark showing when a report or payment was delivered to a common carrier or contract carrier will be prima facie evidence of the date the filing or payment was made, so long as the envelope, or common carrier or contract carrier documentation, reflects a valid comptroller's address.(2) If a report or payment is received through the United States Postal Service and does not have a postmark, or is received through a common carrier or contract carrier and does not have a receipt mark, the date of the filing of the report or payment is presumed, in the absence of evidence supporting the assertion of a different filing date, to be:(A) if received through the United States Postal Service, three days prior to the date on which the report or payment is physically received by the comptroller, as evidenced by comptroller records; or(B) if received through a common carrier or contract carrier, one day prior to the date on which the report or payment is physically received by the comptroller, as evidenced by comptroller records.(3) If a taxpayer penalized for late filing or late payment can demonstrate that he or she exercised reasonable diligence to comply with the requirements of timely filing and timely paying but, through no fault of the taxpayer, the report or payment arrived after the due date, the report or payment will be considered timely.",
            "sourceNote": "Source Note: The provisions of this §3.13 adopted to be effective July 20, 2015, 40 TexReg 4703."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=192087&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "192087",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL RULES"
            },
            "rule": {
                "number": "§3.15",
                "label": "Penalty for Fraud, Intent to Evade Tax or the Alteration, Destruction, or Concealment of Records"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210016&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "210016",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In determining whether to impose the additional penalty under Tax Code, §111.061(b), the comptroller may impute to the taxpayer the acts or omissions of:(1) any officer, director, manager, or governing authority of the taxpayer; and(2) any agent or employee with the actual or apparent authority to prepare information for or submit information to the comptroller.(b) To avoid imputing the acts or omissions of a person to the taxpayer, the taxpayer may present evidence that the person was engaged in an independent course of conduct that did not further any purpose of the taxpayer.(c) The comptroller may impose the additional penalty on the taxpayer without regard to whether an officer, manager, director, partner, or other person is personally liable for fraudulent tax evasion under the Tax Code.",
            "sourceNote": "Source Note: The provisions of this §3.15 adopted to be effective September 4, 2018, 43 TexReg 5682."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210016&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "210016",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL RULES"
            },
            "rule": {
                "number": "§3.16",
                "label": "Delinquent Taxpayer Financial Records; Information Exchange"
            },
            "nextRule": {
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                "recordId": "3792",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this subsection, shall have the following meanings, unless the context clearly indicates otherwise.(1) Account--A demand deposit account, checking or negotiable order of withdrawal account, savings account, time deposit account, or money market mutual fund account.(2) Account owner record--A record a financial institution uses to report account owner information, including:(A) an account holder's name, social security number, or federal employer identification number; and(B) the account balance and account type.(3) Comptroller's agent--A third-party vendor with whom the comptroller contracts to facilitate the exchange of information with a financial institution.(4) Data match--The process by which the comptroller uses account holder information provided by a financial institution to secure payment of a delinquent taxpayer's tax debt. A data match begins when a delinquent taxpayer's case is created by the Enforcement Division, includes the levy of funds from a delinquent taxpayer's account, and ends 30 days after the delinquent taxpayer's case is closed by the Enforcement Division.(5) Delinquent taxpayer--A person who at the time of a data match request under subsection (b) of this section is delinquent in a tax or fee administered by the comptroller.(6) Financial institution--(A) A depository institution, as defined by Federal Deposit Insurance Act (12 U.SC. §1813(c)), Section 3(c);(B) a federal credit union or state credit union, as those terms are defined by Federal Credit Union Act (12 U.S.C. §1752), Section 101; or(C) the agent of an entity described by subparagraph (A) or (B) of this paragraph.(7) Inquiry file--An electronic file sent by the comptroller or the comptroller's agent to a financial institution that contains a record of delinquent taxpayers.(b) Exchange of information. Each calendar quarter, a financial institution doing business in this state shall exchange information with the comptroller or the comptroller's agent as provided in this subsection. The comptroller and the comptroller's agent may not ask a financial institution to exchange information more than once each calendar quarter.(1) Matched accounts method. No later than 45 days after the date the comptroller or the comptroller's agent provides the inquiry file to a financial institution, the financial institution must submit to the comptroller or the comptroller's agent an electronic file listing all of the account owner records of the accounts owned at the financial institution by each delinquent taxpayer identified in the inquiry file.(2) Optional method of reporting: all accounts method. In lieu of exchanging information using the matched accounts method, a financial institution may submit to the comptroller or the comptroller's agent an electronic file listing all of the financial institution's account owner records for all open accounts. The comptroller or the comptroller's agent will create an electronic file listing all account owner records for the accounts owned at the financial institution by delinquent taxpayers.(3) Compatibility. The exchange of information shall be performed in a manner that is compatible with the data processing system of the financial institution.(c) Notification of account holders. A financial institution may not notify an account holder that the financial institution has exchanged account holder information with the comptroller or the comptroller's agent as provided in subsection (b) of this section.(d) Confidentiality. Information provided by or to a financial institution, the comptroller, or the comptroller's agent for the purpose of performing a data match is confidential and may not be used for any purpose or disclosed to any person except as necessary to perform a data match. The financial institution, the comptroller, and the comptroller's agent shall return, destroy, or erase any information obtained after completion of the data match. Information collected from a financial institution pursuant to this section is available for the collection of delinquent taxes only and is not available for other debt collection activities undertaken by the state.(e) Liability of financial institutions for disclosure of information. A financial institution is not liable to any person for disclosing information to the comptroller under this section or for any other action that the financial institution takes in good faith to comply with this section.(f) Due process. A statutory levy executed during a data match is subject to the statutory procedures and due process protections of Tax Code, §111.021 (Notice to Holders of and Levy Upon Assets Belonging to Delinquent).(g) Suit to enforce exchange of information. A suit to enforce this section must be brought by the attorney general in the name of the state. Venue for the suit is in Travis County.",
            "sourceNote": "Source Note: The provisions of this §3.16 adopted to be effective Setember 7, 2022, 47 TexReg 5339."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193152&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "193152",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "AA",
                "label": "AUTOMOTIVE OIL SALES FEE"
            },
            "rule": {
                "number": "§3.701",
                "label": "Automotive Oil Sales Fee Reporting Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=215247&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "215247",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Automotive oil--Any lubricating oils that can be used in an internal combustion engine, crankcase, transmission, gear box, or differential for an automobile, bus, or truck.(A) Automotive oil includes natural or synthetic engine oil, transmission fluid, and gear oil of any type that can be used, according to the labeling, in the engine of an automobile, truck, or bus, and includes oil that is not labeled specifically for this use, but is suitable for this use according to generally accepted industry specifications.(B) Automotive oil does not include:(i) chain oil;(ii) turbine oil;(iii) waste oil;(iv) outboard motor oil;(v) refrigerant oil;(vi) cotton spray oil;(vii) form oil; and(viii) oil additives as they exist prior to blending.(2) Distributor--A person who maintains a distribution center or warehouse in this state and annually sells more than 25,000 gallons of automotive oil. A distributor must obtain a permit from the comptroller's office.(A) The distributor's permit is valid until the permit is surrendered by the holder or canceled by the comptroller.(B) Oil manufacturers that meet the distributor definition, and are currently liable for paying this fee to the comptroller, will not be required to obtain a distributor's permit.(3) Do-it-yourselfer used oil collection center--A site or facility registered with the TCEQ that accepts or aggregates and stores used oil collected only from household do-it-yourselfers.(4) First sale--The first actual sale of automotive oil delivered to a location in this state and sold to a purchaser who is not an automotive oil manufacturer or distributor. A first sale also includes the use or consumption of automotive oil in this state. First sale does not include the sale of automotive oil:(A) exported from this state to a location outside this state for the purpose of sale or use outside this state;(B) to the United States Government;(C) for resale to or use by vessels engaged exclusively in foreign or interstate commerce; or(D) to a subsequent purchaser who maintains a do-it-yourselfer used oil collection center or used oil collection center registered by the TCEQ.(5) Importer--Any person who imports, or causes to be imported, automotive oil into this state for sale, use, or consumption.(6) Oil manufacturer--Any person or entity that formulates automotive oil and packages, distributes, or sells that automotive oil. Oil manufacturer includes any person packaging or repackaging automotive oil.(7) Out-of-state seller--A person or entity engaged in business in this state as defined in §3.286 of this title (relating to Seller's and Purchaser's Responsibilities, including Nexus, Permits, Returns and Reporting Periods, and Collection and Exemption Rules).(8) TCEQ--Texas Commission on Environmental Quality.(9) Used oil collection center--A site or facility that is registered by the TCEQ to manage used oil collected from used oil generators or household do-it-yourselfers.(b) Exemptions.(1) Sales of automotive oil to an oil manufacturer or distributor are exempt from the automotive oil fee.(2) Sales of automotive oil to a subsequent purchaser who maintains a do-it-yourselfer used oil collection center or used oil collection center registered by the TCEQ are exempt from this fee. A copy of its current TCEQ registration must be provided by the purchaser as documentation for an exempt purchase.(3) Sales of automotive oil to be used by vessels engaged exclusively in foreign or interstate commerce are exempted from this fee.(4) Sales of automotive oil to the United States Government are exempt from this fee.(5) Sales of automotive oil delivered to a location in another state for the purpose of sale or use outside the State of Texas are exempt from this fee if shipment is made by means of:(A) the facilities of the seller;(B) delivery by the seller to a carrier for shipment to a consignee at a point outside this state;(C) delivery by the seller to a forwarding agent for shipment to a location in another state of the United States or its territories or possessions; or(D) the facilities of the purchaser if proof of delivery outside of Texas is provided.(6) Exports beyond the territorial limits of the United States are exempt from this fee if proof of export can be shown by:(A) a copy of the bill of lading issued by a licensed and certificated carrier showing the seller as consignor, the buyer or purchaser as consignee, and a delivery point outside the territorial limits of the United States;(B) documentation provided by a licensed United States custom broker certifying that delivery was made to a point outside the territorial limits of the United States;(C) formal entry documents from the country of destination showing that the automotive oil was imported into a country other than the United States. For the country of Mexico, the formal entry document would be the pedimento de importaciones document with a computerized number issued by Mexican customs officials;(D) a copy of the original airway, ocean, or railroad bill of lading issued by a licensed and certificated carrier which describes the items being exported and a copy of the freight forwarder's receipt if the freight forwarder takes possession of the property in Texas; or(E) a purchaser's blanket maquiladora exemption certificate and a copy of the purchaser's maquiladora export permit provided to the seller as required under §3.358 of this title (relating to Maquiladoras).(c) Credit or refund of fee paid. A purchaser of automotive oil who makes an exempt sale or use of the oil as provided in this section may obtain a refund or credit from the supplier for the automotive oil fee previously paid to the supplier. The purchaser requesting a refund or credit from its supplier must furnish documentation that verifies the exemption. An oil manufacturer, or distributor, or importer who makes an exempt sale or use of the oil as provided in this section may obtain a refund or credit from the comptroller for the automotive oil fee previously paid to the comptroller. The amount of refund that may be claimed may equal but not exceed the amount of the fee paid on the automotive oil. See Tax Code, §§111.104 (Refunds); 111.1042 (Tax Refund: Informal Review); 111.105 (Tax Refund: Hearing); 111.107 (When Refund or Credit is Permitted).(d) Report and payment required.(1) Each automotive oil manufacturer, importer, or distributor shall file a report with the comptroller stating the number of quarts of automotive oil sold, imported, used, or consumed in this state.(2) An automotive oil manufacturer or distributor who makes a first sale or use of automotive oil in Texas is liable for the fee.(3) An automotive oil importer who imports or causes to be imported automotive oil into Texas for sale, use, or consumption is liable for the fee at the time the oil is received by the importer.(e) Amount of fee. The rate of fee is $.01 per quart or $.04 per gallon of automotive oil.(f) Due date of report and payment.(1) The automotive oil fee report and payment are due no later than the 25th day of the month following the end of each calendar quarter in which the liability for the fee is incurred.(2) An automotive oil manufacturer, importer or distributor of automotive oil must file a quarterly report even if there is no fee to report.(g) Discount. A person required to pay the fee may retain 1.0% of the amount of the fees due from each quarterly payment as reimbursement for administrative costs.(h) Penalty. A person who does not file a report as provided by this section, or who possesses a fee collected or payable under this section and does not timely remit the fee to the comptroller, shall pay a penalty of 5.0% of the amount of the fee due and payable. If the person does not file the report or pay the fee before the 30th day after the day on which the fee or report is due, the person shall pay a penalty of an additional 5.0% of the amount of the fee due and payable.(i) Interest. Interest accrues on the unpaid fee due beginning 60 days after the due date and ends the day on which the fee is paid.",
            "sourceNote": "Source Note: The provisions of this §3.701 adopted to be effective June 17, 1992, 17 TexReg 4115; amended to be effective February 10, 1994, 19 TexReg 633; amended to be effective February 7, 1996, 21 TexReg 669; amended to be effective December 6, 1996, 21 TexReg 11517; amended to be effective April 13, 2005, 30 TexReg 2097; amended to be effective November 7, 2018, 43 TexReg 7361."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3792&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "3792",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "B",
                "label": "NATURAL GAS"
            },
            "rule": {
                "number": "§3.17",
                "label": "Producer Reporting Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=93492&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "93492",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Operator-The person responsible for the physical operation of the producing property.(2) Interest owner-Any person owning an interest in the production.(3) Taking in-kind-An election by a nonoperator to receive production in lieu of proceeds from the sale of production.(4) Seller's agent-Any person, other than the operator, negotiating the sale of gas for, or on behalf of, interest owners taking their gas in-kind and separately selling or disposing of such gas.(b) Persons required to file the producer's report and liability for the payment of the tax.(1) All operators must file the producer's report showing the entire volume of production sold or delivered in-kind during the reporting period.(2) The operator is primarily liable for the payment of the tax on production sold by the operator.(3) An interest owner taking in-kind is liable for the payment of the tax on the production taken in-kind, and must file the producer's tax report.(4) The operator must report and pay tax on the entire volume of production used by the operator for lease operations.(5) The taxable unit value of gas used by the operator is the taxable unit value of gas sold by the operator. If no gas is being sold, then the taxable unit value of gas used is the taxable unit value of other like gas sold by the operator in the same field. If no like gas is being sold by the operator in the same field, then the taxable unit value of gas used is the weighted average taxable unit value of all like gas sold in the county as compiled by the comptroller.(6) An interest owner is responsible for the payment of the tax on production taken in-kind and used by the interest owner.(7) The taxable unit value of gas taken in-kind and used by an interest owner is the taxable unit value of gas taken in-kind and sold by the interest owner.(c) For purposes of this section, interest owners ratifying the operator's contract are not considered to be taking in-kind.(d) Any person designated as seller's agent for a group of interest owners taking in-kind shall file the producer's report as nonoperator for the interest represented by the seller's agent.(e) Where delivery of gas is made to the first purchaser on the lease from which the gas was produced, the producer shall report the actual person purchasing the gas.(f) If the first purchaser does not take delivery of gas on the lease from which it was produced, the producer shall report according to the following:(1) for an off-lease delivery with title to the gas passing to the purchaser in Texas, purchaser taxpayer number 4-4444444-44-4;(2) for an off-lease delivery with title to the gas passing to the purchaser outside of Texas, purchaser taxpayer number 5-5555555-55-5; or(3) for an off-lease delivery with title to some of the gas passing to a purchaser in Texas and title to some of the gas passing to a purchaser outside of Texas, purchaser taxpayer number 6-6666666-66-6.(g) If a producer commingles gas from more than one lease and delivers it to a purchaser, either on or off the lease, then the entire delivery shall be deemed to be an off-lease delivery.(h) Condensate shall be reported by lease and the producer shall report the actual first purchaser of such condensate.(i) Operators shall keep accurate, detailed records reflecting the following:(1) the names and addresses of any interest owners taking production in-kind;(2) the names and addresses of all first purchasers purchasing from the operator;(3) the volume of production delivered in-kind each month to each interest owner;(4) the volume of production sold by the operator each month to each first purchaser;(5) the gross amount received under each sales contract between the operator and first purchaser; and(6) the entire volume of gas and condensate produced from each property during the month.(j) Interest owners who are nonoperators and are taking production in-kind shall keep accurate, detailed records of the following:(1) the volume of production taken in-kind each month;(2) the names and addresses of all first purchasers;(3) the volume of production sold to each first purchaser;(4) the gross amount received from each first purchaser; and(5) the volume of any production used by the interest owner.",
            "sourceNote": "Source Note: The provisions of this §3.17 adopted to be effective November 9, 1987, 12 TexReg 2847."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=93492&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "93492",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "B",
                "label": "NATURAL GAS"
            },
            "rule": {
                "number": "§3.18",
                "label": "Tax Reimbursement"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19724&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19724",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions.(1) Contract -- A signed written agreement between two parties for the sale and purchase of natural gas.(2) Tax Reimbursement -- A payment that a purchaser of gas makes to a producer for the purpose of reimbursing the producer for Texas severance taxes that are due under Tax Code, Chapter 201.(b) If gas is sold for cash only, then tax shall be computed on the producer's gross cash receipts. If a purchaser reimburses a producer for severance tax, then the reimbursement is not part of the producer's gross cash receipts and is not subject to severance tax.(c) Requirements to Establish Tax Reimbursement.(1) The amount of the tax reimbursement must be separately stated in the contract, check stub, and/or purchaser statement. For example, the contract might specifically state a price per MCF or MMBTU to be paid to the producer by the purchaser for the gas and state an additional amount to be paid per MCF or MMBTU for severance tax reimbursement; or(2) A written contract between the parties must contain an express statement that the payment that the purchaser made includes severance tax reimbursement to the producer for tax that is due on the gas. Contracts or other documents that merely state that \"all taxes\" are included are not specific enough to establish that the purchaser has made a severance tax reimbursement. The total amount that is shown on such documents will be presumed to be the producer's gross receipts without tax reimbursement. Either party may overcome the presumption by using the purchaser's records to show that severance tax reimbursement was included in the total payment that was made to the producer. When the total price that the purchaser paid to the producer includes severance tax reimbursement, the taxable value for that gas is computed by dividing the sum of one plus the tax rate into the sum of the total receipts minus marketing costs.",
            "sourceNote": "Source Note: The provisions of this §3.18 adopted to be effective January 1, 1976; amended to be effective February 21, 1978, 3 TexReg 476; amended to be effective May 2, 1979, 4 TexReg 1417; amended to be effective April 7, 2002, 27 TexReg 2534."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19724&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19724",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "B",
                "label": "NATURAL GAS"
            },
            "rule": {
                "number": "§3.19",
                "label": "Limitation for Collections for Refunds"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=28605&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "28605",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If in attempting to comply with the provisions of the Texas Tax Code, Chapter 201, any administrative proceeding is set before any local, state, or federal regulatory agency or judicial proceeding arising therefrom which affects the amount of tax liability imposed under Texas Taxation-General, the period of time prescribed for the assessment and collection of any deficiency or the refund or credit of any amount which arises from such affected tax liability, is suspended until a final determination is reached in the aforementioned proceedings. The suspension does not affect the statutorily required filing requirements, and the taxpayer must continue filing reports and remitting all tax due therein.(b) A final determination occurs when nothing remains in dispute; that is, when the amount of deficiency or refund has been agreed to by the parties and approved by the particular proceeding, or, in the absence of agreement, has been ordered by the proceeding.(c) A taxpayer has the burden of bringing about \"discovery' of any final determination of a proceeding affecting the tax liability so as to enable the comptroller to correctly compute the tax. The comptroller is authorized to issue rules and regulations on the meaning of \"discovery by the comptroller. '(d) In accordance with such authority, discovery by the comptroller will not be deemed to have occurred until the comptroller receives a complete detailed report upon which he may assess a deficiency or issue a credit or refund without further information. If the comptroller must audit or examine further information to determine the deficiency or the amount of the credit or refund, discovery by the comptroller of the final determination will not be deemed to have occurred until such information is ascertained by the comptroller. The comptroller must, within one year from making such discovery, assess a deficiency with penalty and interest or issue a credit or refund. The one-year period for the comptroller to take action commences from the date of earliest discovery as defined in this section.",
            "sourceNote": "Source Note: The provisions of this §3.19 adopted to be effective January 1, 1976."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=28605&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "28605",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "B",
                "label": "NATURAL GAS"
            },
            "rule": {
                "number": "§3.20",
                "label": "Producer's Gross Cash Receipts"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=143014&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "143014",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Arm's-length transaction--A transaction between parties free of fraud or intent to evade the tax under this section.(2) Non-recoupable payment--A payment made by a purchaser to a producer which is not refundable and will not be applied toward the purchase price of gas taken in the future.(3) Recoupable payment--A payment made by a purchaser to a producer and is to be applied toward the price of gas to be produced and delivered to the purchaser during future periods.(4) Related party--Any party with common ownership and exercising control over, or under the control of, the other party, or owned by another party which has common ownership and control over both contracting parties.(b) The producer's gross cash receipts subject to severance tax shall include:(1) payments made to the producer by the first purchaser of gas which relate to the price of gas produced and taken pursuant to the terms of a contract for the sale of gas, including a contract found not to be an arm's-length contract by subsection (c)(3) of this section; and(2) all monies that are received as compensation by the producer in connection with any judgment, compromise, or settlement agreement relating to the recovery of the contract price of gas produced, as provided by subsection (d) of this section.(c) The producer's gross cash receipts subject to severance tax shall not include:(1) payments made to the producer by a purchaser under a contract for the sale or purchase of gas to be produced, if the gas is never produced and delivered to the purchaser pursuant to that contract;(2) reimbursement for litigation-related expenses, such as documented attorney's fees or court costs; or reasonable interest agreed upon by the parties, or in the absence of an agreement between the parties an amount to be determined by or from the records of the producer; or court-ordered interest received by the producer in connection with any judgment, compromise, or settlement agreement arising out of a dispute involving a contract for the sale of gas;(3) a payment made to a producer by a gas purchaser to terminate a gas purchase contract. However, a replacement contract entered into within 90 days by the producer and same purchaser, or a party related to that purchaser, covering sales from the same leases or unit subject to the terminated contract may be examined to determine if the replacement contract is an arm's-length transaction between the parties. The burden in establishing that a replacement contract is not an arm's-length contract is on the comptroller. A below market price paid for the gas in a replacement contract will be evidence that the contract was not arm's length; and(4) a payment made to a producer by a gas purchaser to amend any provision in the gas purchase contract, except for a provision affecting the price to be paid by the purchaser.(d) This subsection is solely for the purpose of allocating a settlement among several claims.(1) Any judgment, compromise, or settlement amount received shall be prorated based upon the documented amounts due under the contract for each issue according to the records of the producer when the value received by a producer from a purchaser in settlement of a dispute concerning pricing and any other issue associated with the gas sales/purchase contract is less than the full amount sought by the producer. Any amount allocated as a payment defined in subsection (c)(1) of this section is not taxable. The value subject to tax is the product obtained by multiplying the settlement amount, minus litigation-related expenses and interest, by a fraction, the numerator of which is the documented value assigned to pricing and the denominator of which is the total documented amount sought by the producer. For example, a settlement of $110,000 (minus litigation-related expenses and interest of $10,000) for a pricing dispute of $25,000, and an amount of $225,000 for failure to pay for gas not taken, would result in a taxable settlement value of $10,000 (100,000 x 25,000/250,000).(2) Records of the producer shall include, but are not limited to:(A) the contracts and the settlement agreements;(B) accounting entries, including entries reflecting receivables and payables;(C) court pleadings; and(D) worksheets, including calculations reflecting settlement amounts.(3) Whenever it is necessary to determine taxable value under this subsection, the greatest weight shall be given to the records in the order that they are listed in paragraph (2) of this subsection.(e) When gas is sold for consideration other than cash or products extracted from the gas, the taxable value shall be determined as follows.(1) When gas is sold for cash and any consideration other than products or residue or both, the tax shall be computed on the producer's gross cash receipts for the gas sold and, with regard to the non-cash consideration, on the gross value of all items received.(2) When gas is sold for any consideration other than cash, products, or residue, or a combination thereof, the tax shall be computed on the gross value of all items received for the gas sold.(3) For purposes of this subsection, the reasonable market value shall be assigned to the non-cash consideration.(f) Tax is due according to the following.(1) Tax is due on payments, including recoupable payments as defined in this section and/or payments found not to be arm's-length buyouts under subsection (c)(3) of this section, made to the producer by the first purchaser of gas when the gas is produced and delivered to the purchaser.(2) If a producer receives a non-recoupable payment as consideration for amending any provision in the contract affecting the price of the gas, then the tax shall be due based upon the value the producer would have received under the pricing provisions of the contract before they were amended until:(A) the difference between the value the producer would have received before the contract price was amended and the value the producer received after the contract price was amended equals the non-recoupable payment; or(B) until production from the property ceases; or(C) until the properties are sold or until the contract is terminated in an arm's-length transaction.(3) This subsection is solely for the purpose of determining when tax is due.",
            "sourceNote": "Source Note: The provisions of this §3.20 adopted to be effective August 5, 1993, 18 TexReg 4879."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=143014&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "143014",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "B",
                "label": "NATURAL GAS"
            },
            "rule": {
                "number": "§3.21",
                "label": "Exemption or Tax Reduction for High-Cost Natural Gas"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19715&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19715",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Railroad Commission of Texas.(2) Recompletion--The performance of work within an existing wellbore for the purpose of drilling to a deeper producing formation or plugging back to a more shallow producing formation.(3) High-cost gas--(A) High-cost natural gas as described by Natural Gas Policy Act of 1978, §107, as that section exists on January 1, 1989, without regard to whether that section is in effect or whether a determination has been made that the gas is high-cost natural gas for purposes of that Act; or(B) All gas produced from oil wells or gas wells within a Commission approved co-production project.(4) Commission approved co-production project--A reservoir development project in which the Commission has recognized that water withdrawals from an oil or gas reservoir in excess of specified minimum volumes will result in recovery of additional oil and/or gas from the reservoir that would not be produced by conventional production methods and where operators of wells completed in the reservoir have begun to implement Commission requirements to withdraw such volumes of water and dispose of such water outside the subject reservoir. Reservoirs potentially eligible for this designation shall be limited to those reservoirs in which oil and/or gas has been bypassed by water encroachment caused by production from the reservoir and such bypassed oil and/or gas may be produced as a result of reservoir-wide high-volume water withdrawals of natural formation water.(5) Date of first production--For high-cost natural gas wells spudded or completed after August 31, 1996, the first day of the month of the deliverability test as reported on the appropriate Commission form, or the production month as indicated on the first production report filed with the Commission that shows a gas disposition code other than \"lease or field fuel use\" or \"vented or flared\", whichever month is earlier.(6) Consecutive months--Months in consecutive order, regardless of whether or not a well produces oil or gas during any or all such months.(7) Amount of tax reduction for a well--The product of the full tax rate times the ratio of drilling and completion costs for the well to twice the median drilling and completion costs for high-costs wells for which an application for the exemption or tax reduction was made during the previous state fiscal year. Drilling and completion costs for a recompletion shall only include current and contemporaneous costs associated with the recompletion.(8) Reduced tax rate--The tax rate obtained when the amount of tax reduction is subtracted from the full tax rate, except that the effective rate of the tax shall never be less than zero.(b) Producers. Producers producing gas or gas products extracted from the gas from a gas completion certified by the Commission as qualifying for the high-cost gas tax exemption or reduced tax rate or from an oil or gas well within a Commission approved co-production project may file with the comptroller an application for tax exemption or the reduced tax rate. Except as provided by subsection (k) of this section, tax must be paid on gas and gas products at the full rate until the date the comptroller approves the application.(c) Condensate. Condensate, as defined under Tax Code, §201.001(2), produced with the high-cost gas is not exempt from the tax.(d) Gas produced. Gas produced along with oil is not exempt from the tax unless the gas is from an oil well within a Commission approved co-production project.(e) Application form. The operator shall make application on forms prescribed by the comptroller for the exemption or tax reduction on gas produced and sold or used by the operator or by any other interest owner in the property. The operator shall provide a copy of the approved application to any interest owner taking gas in-kind. The operator shall also be responsible for advising the comptroller whenever the status of an exemption or tax reduction changes.(f) Application supporting documents. The application for exemption or reduced tax rate shall include:(1) a copy of the Commission High-cost Gas State Severance Tax Exemption Certificate Application;(2) a copy of the letter of tax exemption certificate issued by the Commission;(3) the date the Commission approves the exemption or reduced tax rate;(4) the date of first production;(5) a statement as to whether or not tax has been paid on the gas for periods after the effective date of the exemption, and the name of the party paying the tax; and(6) a report of drilling and completion costs incurred for each well on a form and in the detail as determined by the comptroller.(g) Application due date. The application for exemption or tax reduction must be filed with the comptroller on or before the later of the 180th day after the date of first production or the 45th day after the date of approval by the Commission, except when:(1) the application is received after August 31, 1995, and before September 1, 1997, for wells spudded or completed and producing prior to September 1, 1995, and qualifying for the exemption created by Tax Code, §201.057(b), where the application for the exemption must be made within 180 days of September 1, 1995, or(2) an application is filed for the exemption created by Tax Code, §201.057(a)(2)(B) and may not be filed before January 1, 1990, or after December 31, 1998.(h) Applications that miss the due date. Any application that is not filed by the application due date is subject to a 10% reduction of the tax exemption or tax reduction. The 10% reduction will begin on the first of the month after the 180th day after the date of first production and end on the first of the month prior to the received date by the comptroller of the tax exemption or tax reduction application. Applicants who were denied prior to September 1, 1997, for missing the application due date may reapply for the exemption after September 1, 1997, but will be subject to the 10% reduction of the tax exemption or tax reduction.(i) Time limitations for credit or refunds.(1) When an application for exemption or reduced tax rate has been approved by the comptroller, a producer or purchaser shall file amended reports to recover the tax paid by the producer or purchaser on the high-cost gas for periods after the date of first production and prior to the comptroller's approval of exemption. In order to obtain a credit or refund, as provided in Tax Code, §201.057(i), the amended reports must be filed by the first anniversary date after the date the comptroller approves the application for exemption or reduced tax rate. The filing of an amended return is the only acceptable method for requesting the credit or refund from the comptroller.(2) If the application for certification of a lease is submitted to the commission after January 1, 2004, the total allowable credit for taxes paid for reporting periods before the application is filed may not exceed the total tax paid on the gas that otherwise qualified for the exemption or tax reduction and that was produced during the 24 consecutive calendar months immediately preceding the month in which the application for certification under this section was filed with the commission.(j) Notification to non-producers. Producers obtaining an approval for exemption from the comptroller shall furnish to any first purchaser required to report a purchase of high-cost gas a copy of the comptroller's approval. Any first purchaser paying tax on high-cost gas for periods after the date of first production and prior to the comptroller's approval of exemption shall file amended reports to recover the tax paid. In order to obtain a credit or refund, as provided in Tax Code, §201.057(i), the amended reports must be filed by the first anniversary date after the date the comptroller approves the application for exemption or reduced tax rate. The filing of an amended return is the only acceptable method for requesting the credit or refund from the comptroller.(k) Reporting requirements. Producers and purchasers must use the following designations when reporting gas that qualifies for the temporary exemption or tax reduction.(1) Producers and purchasers reporting high-cost gas from a well spudded or completed before September 1, 1996, shall, after the comptroller approves the exemption, designate the gas as being exempt from tax by reporting lease type \"6,\" which shall mean \"Approved High-Cost Gas Well Gas--Temporary Exemption.\"(2) Producers and purchasers reporting high-cost gas from a well spudded or completed on or after September 1, 1996, shall, after the comptroller approves the reduced tax rate, designate the gas as being exempt from tax by reporting lease type \"5,\" which shall mean \"Approved High-Cost Gas Well Gas--Reduced Tax Rate.\"(3) Producers and purchasers reporting high-cost gas from an oil or gas well as defined by subsection (a)(3)(B) of this section shall, after the comptroller approves the exemption, designate the gas as being exempt from tax by reporting lease type \"8,\" which shall mean \"High-Cost Gas Exemption--Co-Production Project.\"(4) Gas qualifying for the temporary exemption, the reduced tax rate or the exemption for gas from a co-production project must be reported separately from any non-exempt production, if any, on the same lease.(5) Producers or purchasers reporting exempt gas and non-exempt gas through the use of a commingling permit issued by the Commission must allocate the gas production between exempt and non-exempt gas by use of a method approved by the comptroller.(6) Except as provided by paragraph (5) of this subsection, producers or purchasers reporting exempt gas or non-exempt gas must report the gas by using as a part of the comptroller's lease identification number the completion number assigned by the Commission.(l) Reduced tax rate. Tax must be paid at the full rate on all gas as defined in subsection (a)(2)(A) of this section for wells spudded or completed between September 1, 1996, and August 31, 1997. On or after September 1, 1997, the party paying the tax at the full rate may apply to the comptroller for a credit or refund of tax equal to the difference between the tax paid at the full rate and the tax that would be due if calculated at the reduced tax rate as defined in subsection (a)(7) of this section.(m) Limitation of tax reduction. Once the comptroller approves an application for the reduced tax rate, tax will be due at the reduced tax rate for the first 120 consecutive months beginning with the date of first production or until the cumulative value of the tax reduction equals 50% of the drilling and completion costs incurred for the well, whichever occurs first. The operator shall provide to any interest owner taking gas in-kind the amount of tax reduction calculated according to subsection (a)(7) of this section.",
            "sourceNote": "Source Note: The provisions of this §3.21 adopted to be effective November 23, 1990, 15 TexReg 6499; amended to be effective September 4, 1996, 21 TexReg 8181; amended to be effective August 4, 1998, 23 TexReg 7839; amended to be effective February 18, 2002, 27 TexReg 1177; amended to be effective October 12, 2004, 29 TexReg 9550; amended to be effective November 2, 2009, 34 TexReg 7653."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19715&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19715",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "B",
                "label": "NATURAL GAS"
            },
            "rule": {
                "number": "§3.22",
                "label": "Exemption for Hydrocarbons Produced from a Texas Experimental Research and Recovery Activity Well"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198315&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "198315",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Railroad Commission of Texas.(2) Hydrocarbons--Any oil, gas, condensate, and other liquid hydrocarbons produced from a well.(3) License holder--A person licensed by the commission to use a TERRA wellbore.(4) Operator--The person responsible under law or commission rules for the physical operation of a wellbore or lease.(5) TERRA--The Texas Experimental Research and Recovery Activity.(6) Wellbore--A hole in the ground drilled in connection with the exploration, development, or production of oil, gas, or geothermal resources and includes any tubular goods cemented in the wellbore.(b) For each well qualifying under this section, the commission will furnish to the comptroller a copy of a certificate of exemption identifying the well, and the operator of the well and stating the date on which the tax exemption takes effect, subject to the comptroller's approval of the exemption.(c) If the commission revokes a certificate for a tax exemption or a license issued under Natural Resources Code, Chapter 93, a tax exemption granted under this section is automatically revoked on the date the certificate or license is revoked, and hydrocarbons produced from the well after the date of revocation are subject to the natural gas production tax.(d) The person responsible for paying the tax must apply to the comptroller for the exemption and include with the application the certificate issued by the commission. A license holder or operator of a TERRA well must report to the comptroller the volume of any hydrocarbons produced from a TERRA well. If the hydrocarbons are sold, the value of the hydrocarbons and the name and taxpayer identification number of the purchaser must be included.(e) The following hydrocarbons are exempt from the taxes imposed by Tax Code, Chapter 201.(1) Hydrocarbons produced from a well subject to an agreement under Natural Resources Code, Chapter 93, and under a license issued under that chapter.(2) Hydrocarbons produced from a well formerly subject to an agreement under Natural Resources Code, Chapter 93, and a license issued under that chapter resuming production after participating in TERRA for two years.(f) If the tax is paid at the full rate provided by Tax Code, Chapter 201, on hydrocarbons produced on or after the effective date of the tax exemption but before the date the comptroller approves an application for the tax exemption, the operator is entitled to a credit on taxes due under Tax Code, Chapter 201, in an amount equal to the tax paid during that period. To receive a credit, the operator or the party remitting the tax must apply to the comptroller by filing amended reports not later than one year after the date the commission certifies the well for a tax exemption. If a party other than the operator has remitted the tax due under Tax Code, Chapter 201, the party remitting the tax must apply to the comptroller for the credit by filing amended reports. If a party other than the operator has remitted the tax, the operator must provide the party remitting the tax a copy of the commission's certification that the well qualifies for the tax exemption.",
            "sourceNote": "Source Note: The provisions of this §3.22 adopted to be effective February 29, 1996, 21 TexReg 1430."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198315&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "198315",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "B",
                "label": "NATURAL GAS"
            },
            "rule": {
                "number": "§3.23",
                "label": "Credits for Qualifying Low Producing Wells"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=152216&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "152216",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Railroad Commission of Texas.(2) Operator--The person responsible under law or commission rules for the physical operation of a wellbore or lease.(3) Average taxable price of gas--The previous three month average price of gas using a price index listed in Tax Code, §201.059(b). The average will be computed by taking the closing price of gas each market day and dividing it by the total market days in the three-month period. This average price will then be adjusted to 2005 dollars.(4) Qualifying low-producing well--A gas well that produces no more than 90 mcf of gas per day, excluding gas flared pursuant to the rules of the commission, during the three-month period prior to the beginning date of the exemption. For purposes of qualifying a well, the production per day is determined by computing the average daily production from the well using the greater of the monthly production from the well as reported in the monthly well production reports made to the commission and the monthly production from the well as reported in the producer's reports made to the comptroller under Tax Code, §201.203 (Producer's Report), including any amendments made to those reports.(b) For each well qualifying under this section, the comptroller will require the following information from the operator of the well.(1) Copies of the monthly production reports made to the commission for the lease for the three-month period.(2) If the lease is commingled, the operator must provide copies of the monthly production reports made to the commission for the commingled lease and a production allocation for each lease in the commingling permit with supporting documentation for the three-month period prior to the exemption beginning date. Supporting documentation can include, but is not limited to, the Texas Railroad Commission G-10 Gas Well Status Report for the leases, or an engineering study on the formations in the wellbore, or metering tests done on the leases.  (3) A completed comptroller exemption application for the well.(4) The date that the lease met the three-month production limitations that qualify the well as a low-producing well.(5) A statement as to whether tax has been paid on the gas for periods after the effective date of the exemption and the name of the party that paid the tax.(c) The monthly average taxable price of gas will be published in the Texas Register  the month following the actual production month. This publication will notify the taxpayer of the eligibility of the exemption in the month prior to the due date of the report. Tax Code, §201.059(c), (d), and (e) will be used to define the credit applicable for each reporting month.(1) If the monthly average taxable price of gas is more than $3.50 per mcf, there will be no exemption for that reporting month.(2) If the monthly average taxable price of gas is more than $3.00 per mcf, but not more than $3.50 per mcf, there will be a 25% credit for gas sold from a qualified well for that reporting month.(3) If the monthly average taxable price of gas is more than $2.50 per mcf, but not more than $3.00 per mcf, there will be a 50% credit for gas sold from a qualified well for that reporting month.(4) If the monthly average taxable price of gas is not more than $2.50 per mcf, there will be a 100% credit for gas sold from a qualified well for that reporting month.(d) If the tax is paid at the full rate provided by Tax Code, Chapter 201, on gas produced on or after the effective date of the tax exemption but before the date the comptroller approves an application for the tax exemption, the operator is entitled to a credit on taxes due under Tax Code, Chapter 201, in an amount equal to the credit approved for that period. To receive a credit, the operator or the party remitting the tax must apply to the comptroller by filing amended reports. If a party other than the operator has remitted the tax, the operator must provide the party that remitted the tax a copy of the approved comptroller application form that qualified the well for the tax exemption.",
            "sourceNote": "Source Note: The provisions of this §3.23 adopted to be effective December 27, 2006, 31 TexReg 10346; amended to be effective November 6, 2011, 36 TexReg 7345; amended to be effective February 11, 2020, 45 TexReg 917."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=152216&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "152216",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "B",
                "label": "NATURAL GAS"
            },
            "rule": {
                "number": "§3.24",
                "label": "Exemption of Gas Incidentally Produced in Association with the Production of Geothermal Energy"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=162098&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "162098",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Railroad Commission of Texas.(2) Operator--The person responsible under law or commission rules for the physical operation of a lease.(3) Geothermal energy--The energy extracted from heat stored in the earth.(4) Incidentally produced--The amount of gas produced is less than or equal to 60 mcf of gas per day per lease. The three-month period prior to the exemption beginning date will be used to determine the amount of production per day per lease.(b) For each lease qualifying under this section, the comptroller will require the following information from the operator of the lease.(1) A copy of the monthly production report made to the commission for the lease for the three-month period prior to the exemption beginning date.(2) A list of the producing wells on the lease and supporting documentation to show the number of days each well was producing during the three-month period, the API number for each well and the monthly production amounts per well.(3) A completed comptroller exemption application for the lease.(4) A statement as to the name and what type of geothermal energy project the gas is being incidentally produced with.(c) Producers and purchasers reporting a geothermal energy exemption shall designate the gas as being qualified geothermal energy exemption gas, according to instructions contained on the natural gas tax reports.(d) If the tax is paid at the full rate provided by Tax Code, Chapter 201, on gas produced on or after the effective date of the tax exemption but before the date the comptroller approves an application for the tax exemption, the operator is entitled to a credit on taxes due under Tax Code, Chapter 201, in an amount equal to the credit approved for that period. To receive a credit, the operator or the party remitting the tax must apply to the comptroller by filing amended reports. If a party other than the operator has remitted the tax, the operator must provide the party remitting the tax a copy of the comptroller's approval letter for the exemption identifying the lease that qualifies for the tax exemption.(e) If the amount of gas produced is greater than 60 mcf of gas per day of production per lease for a three-month period after the exemption beginning date, the exemption will be revoked.",
            "sourceNote": "Source Note: The provisions of this §3.24 adopted to be effective August 2, 2011, 36 TexReg 4805."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=162098&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "162098",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "B",
                "label": "NATURAL GAS"
            },
            "rule": {
                "number": "§3.25",
                "label": "Penalty and Interest"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=162099&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "162099",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Penalty and interest will not apply to additional value that results from retroactive price increases or retroactive adjustments to value, provided that the additional tax is remitted on or before the 20th day of the second month that follows the month in which such price or value was determined. The taxpayer must notify the comptroller of any tax that is not subject to penalty and interest.(b) The gas purchaser is responsible for any tax, penalty, and interest that accrues on gas that the purchaser takes whenever the proceeds are not disbursed to the interest owners, unless the producer is solely liable for the tax.",
            "sourceNote": "Source Note: The provisions of this §3.25 adopted to be effective June 2, 2013, 38 TexReg 3355."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=162099&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "162099",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "B",
                "label": "NATURAL GAS"
            },
            "rule": {
                "number": "§3.26",
                "label": "Purchaser and/or Processer Reporting Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201604&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201604",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) First purchaser--Any person purchasing gas and/or condensate from a producer.(2) Processor--Any person processing gas, under contract or other arrangement with a producer, for the purpose of extracting liquid hydrocarbons or other products from the gas.(b) Persons required to file the purchaser/processor report.(1) All first purchasers taking delivery of gas on the lease from which the gas was produced must file the purchaser/processor report. All first purchasers of condensate must file the purchaser/processor report.(2) All processors processing gas and taking delivery on the lease from which the gas was produced must file the purchaser/processor report.(c) Information required to be reported.(1) The first purchaser must report the following:(A) the name of the operator of the lease, unless the purchase is being made from an interest owner taking in-kind, in which case the name of the interest owner shall be reported;(B) the name of the lease;(C) the volume purchased;(D) the entire value paid to the producer excluding severance tax reimbursement; and(E) the value upon which the purchaser remits tax.(2) The processor must report the following:(A) the name of the operator of the lease, unless gas is being processed for an interest owner taking in-kind, in which case the name of the interest owner shall be reported;(B) the name of the lease;(C) the total volume processed;(D) the entire value, excluding severance tax reimbursement, paid to the producer by the processor for the gas stream processed;(E) the value upon which the processor remits tax; and(F) if products are being taken in-kind by the producer.",
            "sourceNote": "Source Note: The provisions of this §3.26 adopted to be effective June 2, 2013, 38 TexReg 3355."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201604&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201604",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "B",
                "label": "NATURAL GAS"
            },
            "rule": {
                "number": "§3.27",
                "label": "Exemptions of Governmental Entities and Two-Year Inactive Oil Wells"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=162101&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "162101",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Casinghead gas--Gas or vapor indigenous to an oil stratum and produced from the stratum with oil.(2) Commission--The Railroad Commission of Texas.(3) Condensate--Liquid hydrocarbon that is or can be recovered from gas by a separator but does not include liquid hydrocarbon recovered from gas by refrigeration or absorption and separated by a fractionating process.(4) Hydrocarbons--Any oil or gas produced from a well, including hydrocarbon production.(5) Two-year inactive well--A well that has not produced oil or gas in more than one month in the two years preceding the date of application for severance tax exemption. The term only includes a well certified by the commission on or after September 1, 2019, and does not include a well that is:(A) part of an enhanced oil recovery project, as defined by Natural Resources Code, §89.002 (Definitions); or(B) drilled but not completed and that does not have a record of hydrocarbon production reported to the commission.(b) Exemption of certain entities. The federal government and its subdivisions and the State of Texas and its subdivisions are not subject to the gas occupation tax.(1) Subdivisions of the federal government include, but are not limited to, the following:(A) the Federal Land Bank;(B) the Department of the Interior;(C) the Bureau of Land Management; and(D) the Army Corps of Engineers.(2) Subdivisions of the State of Texas include, but are not limited to, the following:(A) Texas cities, towns, and villages;(B) Texas counties;(C) Texas independent and common school districts; and(D) Texas public colleges and universities.(c) Tax borne ratably. The natural gas tax shall be borne ratably by all nonexempt interested parties in proportion to their interests.(d) Two-year inactive oil well.(1) To apply for the exemption for a two-year inactive oil well, taxpayers must submit to the comptroller a copy of the approved certification letter provided by the commission and a completed Texas Well Exemption Application (form AP-217), or any successor to that form promulgated by the comptroller.(2) Casinghead gas produced from a certified two-year inactive oil well is not subject to the natural gas tax. Since oil wells do not produce condensate, condensate does not qualify for the exemption for a two-year inactive oil well.(3) The exemption extends for five years beginning with the month following the date certified by the commission.(4) If the tax is paid at the full rate provided by Tax Code, §201.052(a) (Rate of Tax) before the comptroller approves an application for an exemption provided for in this subsection (d) of this section, the operator is entitled to a credit against taxes imposed by Tax Code, §201.052 in an amount equal to the tax paid. To receive a credit, the operator must apply to the comptroller for the credit before the expiration of the applicable period for filing a tax refund claim under Tax Code, §111.104 (Refunds).(e) Recompleted two-year inactive oil well. A two-year inactive oil well that is subsequently recompleted shall only receive the five-year exemption from the initial certification of the well. A taxpayer must file another Texas Well Exemption Application (form AP-217), or any successor to that form promulgated by the comptroller, for the recompleted oil well identifying the original commission lease number when that well meets the requirements:(1) the commission certifies the recompleted two-year inactive oil well;(2) the commission assigns a new lease number for the recompleted oil well; and(3) the American Petroleum Institute number for the well does not change.(f) Oil-Field cleanup regulatory fee. Gas exempt under subsection (d) of this section is not exempt from the oil-field cleanup regulatory fee, which is due on casinghead gas sold.(g) Penalty. On notice from the commission that the certification for a two-year inactive well has been revoked, the tax exemption shall not apply to oil or gas production sold after the date of notification. A person who claims the exemption is liable to the state for a civil penalty if the person applies or attempts to apply the tax exemption allowed by subsection (d) of this section after the certification for a two-year inactive well is revoked. The amount of the penalty may not exceed the sum of:(1) $10,000; or(2) the difference between the amount of taxes paid or attempted to be paid and the amount of taxes due.",
            "sourceNote": "Source Note: The provisions of this §3.27 adopted to be effective June 2, 2013, 38 TexReg 3355; amended to be effective November 3, 2020, 45 TexReg 7715."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=162101&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "162101",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "B",
                "label": "NATURAL GAS"
            },
            "rule": {
                "number": "§3.28",
                "label": "Reports, Payments, and Due Dates"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198504&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "198504",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Reports required.(1) All first purchasers and/or processors must file reports in accordance with §3.26 of this title (relating to Purchaser and/or Processor Reporting Requirements).(2) All producers as defined by Tax Code, §201.001(5) or §3.17 of this title (relating to Producer Reporting Requirements), having an average monthly tax liability of $200 or more must file the producer's monthly report required by Tax Code, §201.203.(3) All producers having an average monthly tax liability of less than $200 must file the producer's annual report.(b) Due dates.(1) Except as provided in paragraphs (2) and (3) of this subsection, the due date for all monthly reports and payments is the 20th day of the second month following the month of production.(2) The due date for the monthly reports and payments for the production month of June of each odd-numbered calendar year is the 15th day of August of that year.(3) An estimated payment of tax is required of all monthly filers on or before August 15 for the production month of July of each odd-numbered calendar year.(4) Except as provided in paragraphs (5) and (6) of this subsection, the gas producer's annual report and payment are due on or before February 20 of each year. The report is for taxable production during the preceding calendar year.(5) The gas producer's annual report and payment for producers going out of business during the year are due on or before the 20th day of the second month in which the producer ceases production. The report must reflect all taxable production thus far during the year.(6) If any producer, designated as an annual filer, has an accumulated tax liability of $2,400 or more the producer must file a report and remit the tax due on or before the 20th day of the second month following the month resulting in the $2,400 accumulated liability. The producer must file monthly thereafter. It is the responsibility of the taxpayer to contact the comptroller's office concerning the change in reporting status. Example: a producer begins business in April and estimates his monthly liability at only $150 per month. By October the actual liability is $2,500. A report covering April through October must be filed on or before December 20. All periods subsequent to October must then be reported on monthly reports.(c) Payment of estimated tax required.(1) An amount equal to a reasonable estimate of the tax due for production during July of each odd-numbered calendar year must be remitted to the comptroller on or before August 15 of that year.(2) A reasonable estimate of the tax due for July is equal to the tax due for June of the same year or the actual tax due for July, whichever is less.(3) Any additional tax due for July in excess of the reasonable estimate is due on or before September 20 of that year.(d) Penalties.(1) If the amount paid pursuant to subsection (c) of this section is less than the required amount, a penalty of 10% will accrue on the difference between the required amount and the amount actually remitted.(2) If an estimated payment is not timely or no estimated payment is made, a 10% penalty will accrue on the entire amount required to be paid by August 15.(3) A penalty of 5.0% will accrue on the additional tax due for the month of July or any other regular monthly report if it is not paid when the report is due. An additional 5.0% penalty will accrue 30 days after the due date of the report if the tax is still not paid.(e) Examples.Attached Graphic",
            "sourceNote": "Source Note: The provisions of this §3.28 adopted to be effective June 2, 2013, 38 TexReg 3355."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198504&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "198504",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "B",
                "label": "NATURAL GAS"
            },
            "rule": {
                "number": "§3.30",
                "label": "Natural Gas Tax Managed Audits and Determination of Overpaid Amounts"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3793&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "3793",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Managed audit--A review and analysis of invoices, checks, accounting records, or other documents or information conducted by a taxpayer to determine a taxpayer's liability for tax under Tax Code, Chapter 201 (Gas Production Tax).(2) Taxpayer--Any person required to file a report with the comptroller under Tax Code, §201.203 (Producer's Report) or §201.2035 (First Purchaser's Report).(b) Managed audits. The comptroller may authorize taxpayers that meet certain requirements to perform managed audits.(1) A taxpayer who wishes to participate in a managed audit must request authorization from the comptroller's office to conduct a managed audit under this section. Authorization will only be granted as part of a written agreement between the taxpayer and the comptroller's office. The agreement must:(A) be signed by an authorized representative of the comptroller and the taxpayer; and(B) specify the period to be audited and the procedure to be followed.(2) In determining whether to authorize a managed audit, the comptroller may consider:(A) the taxpayer's history of tax compliance, including:(i) timely filing of reports;(ii) timely payment of all taxes and fees due to the state;(iii) prior audit history;(iv) delinquency in other taxes;(v) correction of problems identified in prior audits; and(vi) whether a penalty waiver had been denied on prior occasions and the reason for denial;(B) whether the taxpayer has sufficient time and resources to conduct the audit;(C) the sufficiency and availability of the taxpayer's tax records;(D) the taxpayer's ability to pay any liability arising as a result of the audit; and(E) any other factor the comptroller determines is relevant.(3) The decision to authorize or not authorize a managed audit rests solely with the comptroller.(4) A managed audit may be limited to one or more factors affecting a taxpayer's liability for tax under this chapter, including:(A) gross value of gas produced;(B) exempt interest;(C) marketing costs of gas produced;(D) gas used to power operations at a well or lease; or(E) tax reimbursement paid by a purchaser to a producer.(5) Before the audit is finalized, the comptroller may examine records that the comptroller determines are necessary to verify the results.(6) Unless the audit or information reviewed by the comptroller under this subsection discloses fraud or willful evasion of the tax, the comptroller may not assess a penalty and may waive all or part of the interest that would otherwise accrue on any amount identified to be due in a managed audit. This does not apply to any amount collected by the taxpayer that was a tax or represented to be a tax but that was not remitted to this state.(7) Except as provided by Tax Code, §111.104(f) (Refunds), a taxpayer is entitled to a refund of any tax overpayment disclosed by a managed audit under this section.(8) This subsection applies to audits initiated on or after September 1, 2019.(c) Determination of overpaid amounts by sampling marketing cost transactions.(1) A taxpayer may sample marketing cost transactions provided that the sampling method is approved by the comptroller. The taxpayer must record the method and make available on request by the comptroller the records on which the computation is based.(2) A taxpayer may obtain a reimbursement of an overpayment identified by sampling under this subsection by amending all relevant reports and:(A) taking a credit on one or more reports filed under Tax Code, §201.203 or §201.2035; or(B) filing a claim for refund with the comptroller within the statute of limitations specified by Tax Code, §111.107 (When a Refund or Credit is Permitted) and Chapter 111, Subchapter D (Limitations).(3) This subsection applies to refund claims filed on or after September 1, 2019.",
            "sourceNote": "Source Note: The provisions of this §3.30 adopted to be effective March 2, 2020, 45 TexReg 1439."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=215247&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "215247",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "BB",
                "label": "BATTERY SALES FEE"
            },
            "rule": {
                "number": "§3.711",
                "label": "Battery Sales Fee Collection and Reporting Requirements"
            },
            "nextRule": {
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                "recordId": "225930",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Dealer--A wholesaler, retailer, or any other person who sells or offers to sell lead-acid batteries.(2) Lead-acid battery--Any battery, new or used, which contains lead and sulfuric acid, in liquid or gel form.(3) Marketplace--A physical or electronic medium through which persons other than the owner or operator of the medium make sales of lead-acid batteries. The term includes a store, Internet website, software application, or catalog.(4) Marketplace provider--A person who owns or operates a marketplace and directly or indirectly processes sales of or payments for lead-acid batteries for marketplace sellers.(5) Marketplace seller--A seller, other than the marketplace provider, who makes a sale of a lead-acid battery through a marketplace.(6) Sale for resale--A sale of a lead-acid battery to a purchaser for the purpose of reselling the battery in the normal course of business in the form or condition in which it is acquired (i.e., as a separate item). A sale of a battery that is attached to or becomes an integral part of a vehicle, boat, or other equipment that is being sold, rented, or leased is not a sale for resale. The battery sales fee is due on the sale prior to the battery becoming a part of this equipment.(b) Collection of the fee.(1) Except as provided in subsection (h) of this section, a dealer, and effective July 1, 2022, a marketplace provider, must collect the fee on each sale of a lead-acid battery that is not for resale.(A) For each lead-acid battery with a capacity of less than 12 volts, the fee is $2.00.(B) For each lead-acid battery with a capacity of 12 or more volts, the fee is $3.00.(C) A fee shall not be charged, collected, or allowed as an offset on a battery taken as a trade-in.(2) If a dealer or a marketplace provider fails to collect the fee required in paragraph (1) of this subsection, the comptroller may collect the fee from the purchaser.(3) The fee is not due on the sale of a vehicle, boat, or other equipment that has a battery as an integral part of it.(4) The amount of the fee due must be separately stated on the invoice, bill, or contract to the customer and shall be identified as the Texas battery sales fee.(5) A dealer or a marketplace provider may not advertise, make public, indicate, or imply that the dealer or marketplace provider will absorb, assume, or refund any portion of the fee.(c) Due date and reporting requirements.(1) Monthly filing. The battery sales fee is due and payable on or before the 20th day of the month following the end of each calendar month. Returns must be filed on a monthly basis unless a dealer or a marketplace provider qualifies as a quarterly filer under paragraph (2) of this subsection.(2) Quarterly filing. A dealer or a marketplace provider who owes an average, as computed for the year, of less than $50 for a calendar month or less than $150 for a calendar quarter is required to file a return and remit the collected fees on or before the 20th day of the month following the end of the calendar quarter. The comptroller will notify a dealer or marketplace provider when the report and payment may be submitted quarterly.(d) Report forms. The battery sales fee is to be reported on the Texas battery sales fee report form as prescribed by the comptroller. The fact that the dealer or a marketplace provider does not receive the form or does not receive the correct form from the comptroller for the filing of the return does not relieve the dealer or marketplace provider of the responsibility of filing a return and remitting the fee.(e) Remittance of the fee.(1) On or before the 20th day of the month following each reporting period, every dealer or marketplace provider required to collect the fee shall file a consolidated return for all businesses operating under the same taxpayer number and remit the total fee due.(2) The returns must be signed by the dealer or marketplace provider required to file the return or by the dealer's or marketplace provider's duly authorized agent.(f) Discount. A dealer or marketplace provider who is required to collect the battery sales fee may retain $.025 from each fee collected.(g) Records required.(1) Invoices or other records must be kept for at least four years after the date on which the invoices or records are prepared.(2) The comptroller or an authorized representative has the right to examine any records or equipment of any dealer or marketplace provider liable for the fee to verify the accuracy of any return made or to determine the fee liability in the event no return is filed.(h) Exemptions.(1) Sales for resale are not subject to the fee.(2) The sale of a battery that under the sales contract is shipped to a point outside Texas is not subject to the fee imposed by this section if the shipment is made by the seller by means of:(A) the facilities of the seller;(B) delivery by the seller to a carrier for shipment to a consignee at a point outside this state; or(C) delivery by the seller to a forwarding agent for shipment to a location in another state of the United States or its territories or possessions.(3) Exports beyond the territorial limits of the United States are not subject to the fee. Proof of export may be shown only by:(A) a copy of a bill of lading issued by a licensed and certificated carrier showing the seller as consignor, the buyer or purchaser as consignee, and a delivery point outside the territorial limits of the United States;(B) documentation provided by a licensed United States customs broker certifying that delivery was made to a point outside the territorial limits of the United States;(C) formal entry documents from the country of destination showing that the battery was imported into a country other than the United States. For the country of Mexico, the formal entry document is the pedimento de importaciones document with a computerized, certified number issued by Mexican customs officials;(D) a copy of the original airway, ocean, or railroad bill of lading issued by a licensed and certificated carrier which describes the items being exported and a copy of the freight forwarder's receipt if the freight forwarder takes possession of the property in Texas; or(E) a purchaser's blanket maquiladora exemption certificate and a copy of the purchaser's maquiladora export permit provided to the seller as required under §3.358 of this title (relating to Maquiladoras).(4) There is no exemption provided for any organization or governmental agency, except as provided in paragraph (5) of this subsection.(5) The United States, its instrumentalities, and agencies are exempted from the battery sales fee.(6) Sales for disposal or reclamation are not subject to the fee.(7) The battery sales fee does not apply to a sale of a battery made by a dealer or a marketplace provider when it meets all of the following criteria:(A) the ampere-hour rating of the battery is less than 10 ampere-hours;(B) the sum of the dimensions of the battery (height, width, and length) is less than 15 inches; and(C) the battery is sealed so that no access to the interior of the battery is possible without destroying the battery.(i) Replacements covered by a warranty or service contract.(1) The replacement of a battery under a manufacturer's warranty, without an additional charge to the purchaser, is not the sale of a battery to the purchaser. This replacement, therefore, is not subject to the fee. If there is a charge to the customer for the replacement (such as a pro rata warranty adjustment), then the customer must pay the battery sales fee.(2) The replacement of a battery under an extended warranty or a service contract, for which the customer pays an extra charge, depends on the terms of the contract.(A) If the replacement is free of charge to the customer, the dealer is responsible for paying the fee.(B) If there is a charge to the customer for the replacement, the customer must pay the fee.(j) Penalty. A dealer or marketplace provider who does not file a report as provided by this section, or who possesses a fee collected or payable under this section and does not timely remit the fee to the comptroller, shall pay a penalty of 5.0% of the amount of the fee due and payable. If the dealer or marketplace provider does not file the report or pay the fee before the 30th day after the date on which the fee or report is due, the dealer or marketplace provider shall pay a penalty of an additional 5.0% of the amount of the fee due and payable.(k) Interest. Interest accrues on the unpaid fee due beginning 60 days after the due date and ends the day on which the fee is paid.",
            "sourceNote": "Source Note: The provisions of this §3.711 adopted to be effective April 28, 1992, 17 TexReg 2779; amended to be effective October 14, 1993, 18 TexReg 6744; amended to be effective October 12, 2004, 29 TexReg 9555; amended to be effective February 18, 2007, 32 TexReg 537; amended to be effective May 4, 2020, 45 TexReg 2886; amended to be effective October 5, 2023, 48 TexReg 5739."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3793&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "3793",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "C",
                "label": "CRUDE OIL PRODUCTION TAX"
            },
            "rule": {
                "number": "§3.31",
                "label": "Occupation Tax on Oil Which Is Lost after Having Been Run to Lease Tank"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=152218&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "152218",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Occasionally the loss of oil is reported after it has been run to the lease tank. These losses may result from such things as fires caused by tanks being struck by lightning, tanks washed away by flood waters, leakage from tanks, and theft.(b) The tax levied by the Texas Tax Code, §202.002, is an occupation tax and is based upon the total barrels of oil produced or salvaged from the earth or waters of this state without any deductions. Thus the tax accrues on oil that may be lost, in any manner, after it has been run to the lease tank.",
            "sourceNote": "Source Note: The provisions of this §3.31 adopted to be effective January 1, 1976."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=152218&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "152218",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "C",
                "label": "CRUDE OIL PRODUCTION TAX"
            },
            "rule": {
                "number": "§3.32",
                "label": "Exemption of Oil Incidentally Produced in Association with the Production of Geothermal Energy"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3794&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "3794",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Railroad Commission of Texas.(2) Operator--The person responsible under law or commission rules for the physical operation of a lease.(3) Geothermal energy--The energy extracted from heat stored in the earth.(4) Incidentally Produced--The amount of oil produced is less than or equal to 10 barrels of oil per day of production per well. The three-month period prior to the exemption beginning date will be used to determine the average amount of production per day per well.(b) For each oil well qualifying under this section, the comptroller will require the following information from the operator of the well.(1) A copy of the monthly production report made to the commission for the lease for the three-month period prior to the exemption beginning date.(2) A list of the producing wells on the oil lease and supporting documentation to show the number of days each well was producing during the three-month period, the API number for each well and the monthly production amounts per well.(3) A completed comptroller exemption application for the well.(4) A statement as to the name and what type of geothermal energy project the oil is being incidentally produced with.(c) Producers and purchasers reporting a geothermal energy exemption shall designate the oil as being qualified geothermal energy exemption oil, according to instructions contained on the crude oil tax reports.(d) If the tax is paid at the full rate provided by Tax Code, Chapter 202, on oil produced on or after the effective date of the tax exemption but before the date the comptroller approves an application for the tax exemption, the operator is entitled to a credit on taxes due under Tax Code, Chapter 202, in an amount equal to the credit approved for that period. To receive a credit, the operator or the party remitting the tax must apply to the comptroller by filing amended reports for each well. If a party other than the operator has remitted the tax, the operator must provide the party remitting the tax a copy of the comptroller's approval letter for the exemption identifying the lease that qualifies for the tax exemption.(e) If the amount of oil produced is greater than 10 barrels of oil per day of production per well for a three-month period after the exemption beginning date, the exemption will be revoked.",
            "sourceNote": "Source Note: The provisions of this §3.32 adopted to be effective August 2, 2011, 36 TexReg 4805."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3794&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "3794",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "C",
                "label": "CRUDE OIL PRODUCTION TAX"
            },
            "rule": {
                "number": "§3.33",
                "label": "Tax Due on Crude Oil Recovered by Reclamation Plants and Other  Salvage Operations"
            },
            "nextRule": {
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                "recordId": "201110",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Oil--Crude oil or other oil taken from the earth or waters, regardless of the specific gravity of the oil.(2) Reclamation plant--A facility which processes tank bottoms or other material for the purpose of separating and recovering the crude oil, regardless of the process or processes employed.(3) Shake-out test--A test as defined and required by the Railroad Commission of Texas. In the absence of a requirement by the commission, the test shall be conducted in accordance with generally accepted industry practices. The purpose of the shake-out test is to accurately determine the content of oil and basic sediment and water (B.S.&W.) in a given sample.(4) Posting or posted price--A public offer to purchase crude oil, generally of a certain quality and in a specific geographic area or at a plant.(5) Tank bottoms--The contents of crude oil storage, measuring, or handling tanks which are below the pipeline connecting to the tanks.(6) Theoretical taxable volume--The volume of oil, determined by a shake-out test as defined in this section, contained in material on which no tax has been paid or withheld.(7) Total theoretical volume--The volume of oil, determined by a shake-out test as defined in this section, contained in all material processed through a reclamation plant during a month.(b) Tax due. The crude oil occupation tax imposed by the Texas Tax Code, §202.051, must be remitted on all oil salvaged or reclaimed in any manner unless the tax has previously been paid. The burden of proving the tax has been paid is on the person salvaging or reclaiming the oil.(1) Tax due on oil contained in tank bottoms or other material purchased from producers. Any person purchasing material from a producer which contains crude oil as evidenced by a shake-out test must withhold and remit the tax based upon the volume of oil indicated by the test. The taxable value is to be determined by postings for the type of material purchased, but may not be less than $1.00 per barrel of oil.(2) Tax due on oil salvaged from other sources. Any person salvaging and taking possession of oil from any source, other than by purchasing from producers, including removal from leases without compensation, is the producer of the oil salvaged and is liable for the tax, unless it has been previously paid. The taxable value of the oil salvaged is the value which is received by the person salvaging the oil. The volume of oil salvaged or reclaimed under this paragraph will be determined by application of the formula:Attached Graphic(c) Records required to be kept. All persons salvaging or reclaiming crude oil must maintain record for four years showing the following:(1) the volume of reclaimed or salvaged crude oil on hand at the beginning of each month;(2) the volume of untreated material on hand at the beginning of each month;(3) the volume and value paid for any material not purchased during each month;(4) the source of the material;(5) the volume and source of any other material not purchased during each month;(6) the volume of any additives and blending material used during each month;(7) the volume, value, and purchaser of any salvaged or reclaimed crude oil sold during each month; and(8) any other disposition of crude oil or untreated material during each month; and(9) whether tax has been paid on any crude oil purchased.",
            "sourceNote": "Source Note: The provisions of this §3.33 adopted to\r\nbe effective August 8, 1983, 8 TexReg 2761; amended to be effective\r\nJanuary 7, 1985, 9 TexReg 6435."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201110&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201110",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "C",
                "label": "CRUDE OIL PRODUCTION TAX"
            },
            "rule": {
                "number": "§3.34",
                "label": "Exemption of Governmental Entities and Two-Year Inactive Wells"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=65076&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "65076",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Casinghead gas--Gas or vapor indigenous to an oil stratum and produced from the stratum with oil.(2) Commission--The Railroad Commission of Texas.(3) Hydrocarbons--Any oil or gas produced from a well, including hydrocarbon production.(4) Two-year inactive well--A well that has not produced oil or gas in more than one month in the two years preceding the date of application for severance tax exemption under this section. The term only includes a well certified by the commission on or after September 1, 2019, and does not include a well that is:(A) part of an enhanced oil recovery project, as defined by Natural Resources Code, §89.002 (Definitions); or(B) drilled but not completed and that does not have a record of hydrocarbon production reported to the commission.(b) Exemption of certain entities. The federal government and its subdivisions and the State of Texas and its subdivisions are not subject to the oil production tax.(1) Subdivisions of the federal government include, but are not limited to, the following:(A) the Federal Land Bank;(B) the Department of the Interior;(C) the Bureau of Land Management; and(D) the Army Corps of Engineers.(2) Subdivisions of the State of Texas include, but are not limited to, the following:(A) Texas cities, towns, and villages;(B) Texas counties;(C) Texas independent and common school districts; and(D) Texas public colleges and universities.(c) Tax borne ratably. The tax shall be borne ratably by all nonexempt interested parties in proportion to their interests.(d) Two-year inactive wells.(1) To apply for the exemption for a two-year inactive well, taxpayers must submit to the comptroller a copy of the approved certification letter provided by the commission and a completed Texas Well Exemption Application (AP-217), or any successor to that form promulgated by the comptroller.(2) The exemption for the two-year inactive well extends for five years beginning with the month following the date certified by the commission.(3) If the tax is paid at the full rate provided by Tax Code, §202.052(a) (Rate of Tax) before the comptroller approves an application for an exemption provided for in this subsection (d) of this section, the operator is entitled to a credit against taxes imposed by Tax Code, §202.052 in an amount equal to the tax paid. To receive a credit, the operator must apply to the comptroller for the credit before the expiration of the applicable period for filing a tax refund claim under Tax Code, §111.104 (Refunds).(e) Recompleted two-year inactive well. A two-year inactive well that is recompleted shall only receive the five-year exemption from the initial certification of the well. A taxpayer must file another Texas Well Exemption Application (AP-217), or any successor to that form promulgated by the comptroller, for the recompleted well identifying the original commission lease number when that well meets the requirements:(1) the commission certifies the recompleted two-year inactive well;(2) the commission assigns a new lease number for the recompleted well; and(3) the American Petroleum Institute number for the well does not change.(f) Oil-Field cleanup regulatory fee. The exemption provided by subsection (d) of this section does not extend to the oil-field cleanup regulatory fee.(g) Penalty. On notice from the commission that the certification for a two-year inactive well has been revoked, the tax exemption shall not apply to oil or gas production sold after the date of notification. A person who claims the exemption is liable to the state for a civil penalty if the person applies or attempts to apply the tax exemption allowed by subsection (d) of this section after the certification for a two-year inactive well is revoked. The amount of the penalty may not exceed the sum of:(1) $10,000; or(2) the difference between the amount of taxes paid or attempted to be paid and the amount of taxes due.",
            "sourceNote": "Source Note: The provisions of this §3.34 adopted to be effective September 15, 2020, 45 TexReg 6377."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=65076&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "65076",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "C",
                "label": "CRUDE OIL PRODUCTION TAX"
            },
            "rule": {
                "number": "§3.35",
                "label": "Reporting Requirements for Producers and Purchasers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=150959&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "150959",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) First Purchaser--The first person purchasing crude oil directly from the operator or producer.(2) Operator--The person responsible for the actual physical operation of the producing property.(3) Producer--Any interest owner in the producing property, including a royalty interest owner.(b) The first purchaser must remit the tax due on all oil purchased from operators or producers when delivery is made on the lease, unless the comptroller has given another person written authorization to remit tax. The operator or producer must remit the tax on all  other oil removed from the lease. Upon written request of an agreement by the operator and all producers and purchasers involved, the comptroller may authorize a producer or a subsequent purchaser to report and remit the tax. The authorization will be for the purpose of reporting and remitting tax only, and failure of the authorized party to pay the tax will not relieve the producer, first purchaser, or any subsequent purchaser of liability for the tax.(c) Any oil used, lost, stolen, or otherwise unaccounted for after it has been produced and measured must be reported, and the tax must be paid by the operator on the Crude Oil Special Tax Report, unless the operator is required to file the Crude Oil Producer's Monthly Tax Report.(d) The operator is  responsible for reporting, or accounting for, all of the production from the property unless written exception is granted by the comptroller. Written exception will be granted whenever a producer has elected to take in-kind. The producer will then have the same reporting responsibilities as an operator for the production taken in-kind.(e) A first purchaser may not take delivery of crude oil from an operator or producer unless the operator or producer furnishes the purchaser with a taxpayer identification number assigned by the comptroller. A first purchaser failing to secure the producer's taxpayer number, either from the producer or the comptroller, will be liable for any tax, penalty, and interest due on the oil purchased from the producer or operator.(f) There are exempt from the taxes imposed by the Texas Limited Sales, Excise and Use Tax Act the receipts from the sale, use, or other consumption of oil when such oil is in the exact physical form as taxed under the Tax Code, Chapter 202, Title 2. Any change in the said physical form shall cancel the exemption provided therein and cause the sale, use, or other consumption to be taxable.(g) Due dates for returns are as specified in this subsection.(1) The Crude Oil Producer's Monthly Tax Report, the Crude Oil Purchaser's Monthly Tax Report, the Crude Oil Special Tax Report, and the tax payment are due on or before the 25th day of each month covering the previous month's transactions.(2) The Crude Oil Producer's Annual  Report due prior to December 31, 1993, is due. The Crude Oil Producer's Annual Report due after December 31, 1993, is not required. A producer who is not required to file a report after December 31, 1993, and who ceases to operate crude oil producing properties must notify the comptroller's office on or before the 25th day of the month following the month that the producer ceased doing business.(h) All first purchasers of crude oil must file the Crude Oil Purchaser's Monthly Tax Report.(i) All operators or producers authorized to remit and responsible for remitting tax, other than the operators authorized under subsection (c) of this section, must file the Crude Oil Producer's Monthly Tax Report.(j) All operators or producers must file the Texas Tax Questionnaire to obtain a taxpayer number.(k) Beginning with the January 1999 production period, crude oil production will be reported at the lease level on all crude oil reports. The following information must be reported on the crude oil reports:(1) the Crude Oil Purchaser's Monthly Tax Report:(A) the name and taxpayer number of each operator or producer from whom crude oil was purchased during the month; and(B) the volume and value of oil purchased from each operator or producer on each lease; except(C) oil produced and purchased by the same taxpayer must be reported only on the Crude Oil Producer's Monthly Tax Report.(2) the Crude Oil Producer's Monthly Tax Report:(A) the name and taxpayer number of the purchaser of oil being sold at the lease; and(B) the volume and value of oil used, lost, stolen, or removed from leases by the operator or producer on each lease; and(3) the Crude Oil Special Tax Report. The volume and value of all oil lost, used, stolen, or otherwise unaccounted for on each lease (to be used by producers who are not required to file reports under subsection (i) of this section).(l) Crude oil operators or producers who are not required to file reports under this section must keep the following records:(1) the name and taxpayer number of each purchaser taking delivery of oil at the lease from the operator or producer during the previous calendar year; and(2) the total volume and value of the oil delivered to each purchaser.",
            "sourceNote": "Source Note: The provisions of this §3.35 adopted to be effective March 19, 1984, 9 TexReg 1359; amended to be effective December 20, 1994, 19 TexReg 9628; amended to be effective December 16, 1996, 21 TexReg 11800; amended to be effective July 29, 1999, 24 TexReg 5757."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=150959&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "150959",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "C",
                "label": "CRUDE OIL PRODUCTION TAX"
            },
            "rule": {
                "number": "§3.37",
                "label": "Enhanced Oil Recovery Projects"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204951&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "204951",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Enhanced oil recovery projects.(1) Producers producing crude oil from an enhanced oil recovery project approved and certified by the Texas Railroad Commission may file with the comptroller an application for a reduced tax rate.(2) An application for taxation at the reduced tax rate must be filed.(A) The operator shall make application on forms prescribed by the comptroller for the reduced tax rate on qualified oil produced and sold by the operator. The operator shall be responsible for advising the comptroller whenever the status of the enhanced oil recovery project changes in a manner that would affect the imposition of the tax due on the oil produced from the project area.(B) A nonoperator taking production in-kind from a project area for which the operator has filed an application for tax relief shall also file an application for tax relief on forms prescribed by the comptroller for the qualified oil produced and sold by the nonoperator.(3) The application for tax relief filed by the operator shall include an approved copy of Texas Railroad Commission Form H-12, Enhanced Oil Recovery Project and Area Designation Approval Application, and a copy of the Certificate of Positive Production Response issued by the Texas Railroad Commission.(4) The application for tax relief filed by a nonoperator must contain the project name as designated by the operator, and the project number as designated by the Texas Railroad Commission. The application for tax relief filed by a nonoperator will not be granted until the operator has complied with paragraph (3) of this subsection.(5) When an application for tax relief has been approved by the comptroller, a producer may file amended reports to recover the additional tax paid by the producer on qualified oil for periods after the effective date of the reduced tax rate and prior to the actual date of approval. In order to obtain a refund, the amended reports must be filed within one year after the date the Texas Railroad Commission certifies that a positive production response has occurred.(6) Producers obtaining an approval for relief from the comptroller shall furnish to any first purchaser required to report a purchase of the enhanced recovery oil a copy of the comptroller's approval. Any first purchaser paying tax on qualified oil for periods after the effective date of the reduced rate and prior to the actual date of approval shall file amended reports to recover the additional tax paid. In order to obtain a refund, the amended reports must be filed within one year after the date the Texas Railroad Commission certifies that a positive production response has occurred.(7) Producers and purchasers reporting enhanced recovery oil shall designate the oil as being qualified secondary recovery oil, or oil recovered by any other approved enhanced recovery method, according to instructions contained on the crude oil tax reports.(8) The reduced tax rate does not apply until an amount of oil equal to the oil produced and stored on the lease prior to the effective date of the tax relief is removed from the lease.(9) Any crude oil produced and stored on the lease during a period in which the reduced tax rate applies, but removed from the lease after the reduced tax rate period has expired, qualifies for the reduced tax rate. The reduced tax rate will apply until the volume of oil removed equals the volume of qualified oil stored.(10) Producers delivering to a first purchaser oil which contains a volume of qualified secondary recovery oil, and/or a volume of qualified oil produced by any other approved recovery method, and a volume of oil not eligible for the reduced tax, or any combination of these, shall furnish to the first purchaser the volume information necessary to enable the purchaser to file proper reports.(b) Enhanced oil recovery projects using anthropogenic carbon dioxide.(1) Entitles producers producing crude oil from an approved enhanced oil recovery project to an additional 50% reduction in the crude oil tax rate stated in Tax Code, §202.052(b), if in the recovery of the oil the enhanced oil recovery project uses carbon dioxide that is captured from an anthropogenic source in this state; which would otherwise be released into the atmosphere as industrial emission; is measurable at the source of capture; and is sequestered in one or more geological formations in this state following the enhanced oil recovery process.(2) In the event that a portion of the carbon dioxide used in the enhanced oil recovery project is anthropogenic carbon dioxide that satisfies the criteria under paragraph (1) of this subsection and a portion of the carbon dioxide used in the project fails to satisfy the criteria of paragraph (1) of this subsection because it is not anthropogenic, the additional tax reduction provided by paragraph (1) of this subsection, is required to be reduced to reflect the proportion of the carbon dioxide used in the project that satisfies the criteria of paragraph (1) of this subsection.(3) An application for the additional tax reduction must be filed with the comptroller. The operator shall make application on forms prescribed by the comptroller for the additional tax reduction on qualified oil produced and sold by the operator.(4) The application for additional tax reduction filed by the operator shall include an approved certification from the agency identified under Tax Code, §202.0545(c)(2).(5) When an application for additional tax reduction has been approved by the comptroller, a producer must file amended reports to recover the additional tax reduction paid by the producer on qualified oil for periods after the effective date of the additional tax reduction and prior to the actual date of approval. To receive the additional credit, the amendments must be filed with the comptroller for the credit not later than the first anniversary of the date the oil is produced.(6) Producers obtaining an approval for additional tax reduction from the comptroller shall furnish to any first purchaser required to report a purchase of the enhanced recovery oil, a copy of the comptroller's approval. Any first purchaser paying tax on qualified oil for periods after the effective date of the additional tax reduction and prior to the actual date of approval must file amended reports to recover the additional tax paid. In order to receive the additional credit, the amendments must be filed with the comptroller for the credit not later than the first anniversary of the date the oil is produced.(7) Producers and purchasers reporting anthropogenic carbon dioxide enhanced recovery oil shall designate the oil as being qualified oil according to instructions contained on the crude oil tax reports.(8) Any crude oil produced and stored on the lease during a period in which the additional tax reduction applies, but removed from the lease after the additional tax reduction period has expired, qualifies for the additional tax reduction. The reduction in tax rate will apply until the volume of oil removed equals the volume of qualified oil stored.(9) Producers delivering to a first purchaser, oil which contains a volume of qualified oil, and a volume of oil not eligible for the additional tax reduction, or any combination of these, shall furnish to the first purchaser the volume information necessary to enable the purchaser to file proper reports.",
            "sourceNote": "Source Note: The provisions of this §3.37 adopted to be effective October 18, 1990, 15 TexReg 5853; amended to be effective March 9, 2011, 36 TexReg 1565."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204951&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "204951",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "C",
                "label": "CRUDE OIL PRODUCTION TAX"
            },
            "rule": {
                "number": "§3.39",
                "label": "Credits for Qualifying Low Producing Oil Leases"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=133324&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "133324",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Average taxable price of oil--The price of oil, certified by the comptroller, determined by adding the closing price of each market day adjusted to 2005 dollars during the previous three months and dividing the sum by the total market days in the three-month period. (2) Commission--The Railroad Commission of Texas.(3) Operator--The person responsible under law or commission rules for the physical operation of a lease.(4) Qualifying low-producing lease--An oil lease that produces less than 15 barrels of oil per day of production per well or produces less than 5.0% recoverable oil per barrel of produced water during the three-month period prior to the beginning date of the credit. For purposes of qualifying the lease, the production per day is determined by computing the average daily per well production from the lease using the greater of the monthly production from the lease as reported in the monthly lease production reports made to the commission and the monthly production from the lease as reported in the producer's reports made to the comptroller under Tax Code, §202.201 (Producer's Report), including any amendments to those reports, and dividing the sum of the production reported on the lease by the sum of the number of well days. The calculation will use the three-month period prior to the beginning date of the credit.(5) Well day--One well producing for one day. (b) To qualify a lease, the operator of the lease shall provide the following: (1) a copy of the monthly production report made to the commission for the lease for the three-month period prior to the beginning date of the credit; (2) a list of the producing wells on the lease and supporting documentation to show the number of days each well was producing during the three-month period; (3) a completed comptroller Texas Crude Oil Lease Tax Exemption Application (form AP-216) for the lease; (4) the starting date that the lease met the three-month production limitations qualifying the well as a low-producing well; (5) a statement as to whether tax has been paid on the crude oil for periods after the effective date of the credit and the name of the party paying the tax; and (6) when production during a three-month period is less than 5.0% recoverable oil per barrel of produced water, the operator may submit documentation that the well meets this requirement. An example of acceptable documentation is a production record showing the amount of water produced and the amount of oil produced for the three-month period. A taxpayer requesting approval under this paragraph shall also send the $100 filing fee with the application. (c) The monthly average taxable price of oil will be published in the Texas Register  the month following the actual production month. This publication will notify the taxpayer of the availability of the credit prior to the due date of the report. Credits are as follows: (1) if the monthly average taxable price of oil is more than $30 per barrel, there will be no credit for that reporting month; (2) if the monthly average taxable price of oil is more than $25 per barrel, but not more than $30 per barrel, there will be a 25% credit for oil sold from a qualified lease for that reporting month; (3) if the monthly average taxable price of oil is more than $22 per barrel, but not more than $25 per barrel, there will be a 50% credit for oil sold from a qualified lease for that reporting month; (4) if the monthly average taxable price of oil is $22 per barrel or less, there will be a 100% credit for oil sold from a qualified lease for that reporting month; and (5) when available, tax credits provided for qualifying leases under this subsection may be combined with Tax Code, §202.054 (Qualification of Oil From New or Expanded Enhanced Recovery Project for Special Tax Rate) or §202.0545 (Tax Exemption for Enhanced Recovery Projects Using Anthropogenic Carbon Dioxide).(d) If the tax is paid at the full rate provided by Tax Code, Chapter 202 (Oil Production Tax), on oil produced on or after the effective date of the tax credit but before the date the comptroller approves an application for the tax credit, the operator is entitled to a credit on taxes due under Tax Code, Chapters 202 or 201, in an amount equal to the credit approved for that period. To receive a credit, the operator or the party remitting the tax must apply to the comptroller by filing amended reports. If a party other than the operator has remitted the tax, the operator must provide the party remitting the tax a copy of the approved comptroller application form that provides that the lease qualifies for the tax credit.",
            "sourceNote": "Source Note: The provisions of this §3.39 adopted to be effective December 27, 2006, 31 TexReg 10346; amended to be effective April 27, 2021, 46 TexReg 2828."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=133324&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "133324",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "C",
                "label": "CRUDE OIL PRODUCTION TAX"
            },
            "rule": {
                "number": "§3.40",
                "label": "Tax Credit for Enhanced Efficiency Equipment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=32323&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "32323",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Railroad Commission of Texas.(2) Operator--The person responsible under law or commission rules for the physical operation of a lease.(3) Institute of Higher Education--A comptroller approved institution of higher education located in this state that has an accredited petroleum engineering program.(4) Marginal Well--A comptroller approved oil well that produces 10 barrels of crude oil or less per day during the month prior to installation of new efficiency equipment.(b) For each marginal well qualifying under this section, the comptroller will require the following information from the operator of the lease.(1) A copy of the monthly production report made to the commission for the lease for the qualifying month.(2) A copy of the evaluation from an institution of higher education certifying the name of the enhanced efficiency equipment and that the equipment produces the required energy reduction.(3) A list of the producing wells on the lease and supporting documentation to show the number of days each well was producing during the month prior to installation of the new efficiency equipment.(4) A completed comptroller exemption application for the marginal well.(5) A statement as to whether tax has been paid on the crude oil for periods after the effective date of the exemption, and the name of the party paying the tax.(6) A billing statement showing the cost of the equipment, the cost of installation and proof that the equipment was not purchased or installed earlier than September 1, 2005, or later than September 1, 2013.(c) The credit will be in effect until the accumulated credit equals 10% of the cost of the equipment or $1,000 per marginal well, whichever occurs first.(d) If the tax is paid at the full rate provided by Tax Code, Chapter 202, on hydrocarbons produced on or after the effective date of the tax exemption but before the date the comptroller approves an application for the tax exemption, the operator is entitled to a credit on taxes due under Tax Code, Chapter 202, in an amount equal to the tax paid during that period within the statute of limitations. To receive a credit, the operator or the party remitting the tax must apply to the comptroller by filing amended reports. If a party other than the operator has remitted the tax, the operator must provide the party remitting the tax a copy of the approved comptroller application form that qualifies the marginal well for the tax exemption.(e) The comptroller is limited to approving, each fiscal year, only the number of applications that will not exceed a number equal to one percent of the producing marginal wells in this state on September 1 of that state fiscal year.",
            "sourceNote": "Source Note: The provisions of this §3.40 adopted to be effective December 27, 2006, 31 TexReg 10347; amended to be effective November 27, 2007, 32 TexReg 8519."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=225930&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "225930",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "CC",
                "label": "SEXUALLY ORIENTED BUSINESS FEE"
            },
            "rule": {
                "number": "§3.722",
                "label": "Sexually Oriented Business Fee"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198967&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "198967",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Clothing--A garment used to cover the body, or a part of the body, typically consisting of cloth or a cloth-like material. (2) Customer--Any person on the premises of a sexually oriented business except:(A) an owner, operator, independent contractor of the business or an employee of that sexually oriented business; or(B) a person who is on the premises exclusively for repair or maintenance of the premises or for the delivery of goods to the premises.(3) Nude--To be entirely unclothed, or clothed in a manner that leaves uncovered or visible through less than fully opaque clothing any portion of the breasts below the top of the areola of the breasts, if the person is female, or any portion of the genitals or buttocks.(4) Sexually oriented business--A nightclub, bar, restaurant, or similar commercial enterprise that:(A) provides for an audience of two or more individuals live nude entertainment or live nude performances; and(B) authorizes on-premises consumption of alcoholic beverages, regardless of whether the consumption of alcoholic beverages is under a license or permit issued under the Alcoholic Beverage Code.(b) Clothing requirements. An entertainer or performer will be considered \"nude\" for purposes of this section unless the entertainer or performer wears fully opaque clothing that covers all portions of the genitals and buttocks, and if the entertainer or performer is a female, the entertainer or performer must also wear fully opaque clothing that covers the portions of the breasts below the top of the areola of the breasts.(c) Questionnaire. A sexually oriented business, as defined in this section, is required to complete and submit a Texas Sexually Oriented Business Fee Questionnaire, Form AP-225 or a subsequent form prescribed by the comptroller to file the report and remit the fee imposed under Business and Commerce Code, Chapter 102 (Sexually Oriented Businesses).(d) Imposition and Calculation of Fee.(1) Effective September 1, 2023, a $10.00 fee is imposed on a sexually oriented business for each entry by each customer admitted to the business. In determining the amount of fee due by a sexually oriented business for more than one entry by the same customer on the same business day at the same location, it shall be presumed to have been one entry by the customer and the fee amount due from the business for the entry is $10.00. A business day begins when the business opens and continues until the close of business. Prior to September 1, 2023, the fee is $5.00.(2) A sexually oriented business has the discretion to determine how it will derive the money to pay the fee. All door and cover charges, including reimbursement of the sexually oriented business fee from its customers, are subject to sales tax as provided by Tax Code, Chapter 151 (Limited Sales, Excise and Use Tax). A sexually oriented business that chooses to recover the fee from its customer by including a separately stated charge for the fee on the customer check or invoice must clearly identify the charge as a reimbursement. A charge not clearly identified as reimbursement of the fee is considered a tax collected from the customer and these amounts must be remitted to the comptroller in addition to the $10.00 fee.(3) The comptroller will presume that a business is a sexually oriented business if the business holds itself out as a sexually oriented business. Evidence that the comptroller may consider includes signage, advertising, social media, publication of images, inspections, investigations, and the reputation of the business. To rebut the presumption, a business may prove by a preponderance of the evidence the instances in which the business did not operate as a sexually oriented business.(e) Report forms. The sexually oriented business fee must be reported on a form as prescribed by the comptroller. The fact that the sexually oriented business does not receive the form or does not receive the correct form from the comptroller for the filing of the report does not relieve the business of the responsibility of filing a report and remitting the fee.(f) Due date of report and payment.(1) The sexually oriented business fee report and payment are due no later than the 20th day of the month following the calendar quarter month in which the liability for the fee is incurred.(2) A sexually oriented business must file a quarterly report even if there is no fee to report.(g) Penalty. Penalties due on delinquent fees and reports shall be imposed as provided by Tax Code, §111.061 (Penalty on Delinquent Tax or Tax Reports).(h) Interest. Interest due on delinquent fees shall be imposed as provided by Tax Code, §111.060 (Interest on Delinquent Tax).(i) Records required.(1) A sexually oriented business is required to maintain records, statements, books, or accounts necessary to determine the amount of fee for which the business is liable to pay.(2) A sexually oriented business shall record daily the number of customers admitted to the business. The manner in which a sexually oriented business maintains records of the number of customers admitted to the business may be written, stored on data processing equipment, or may be in any form that the comptroller may readily examine.(3) The comptroller or an authorized representative has the right to examine any records or equipment of any person liable for the fee in order to verify the accuracy of any report made or to determine the fee liability in the event no report is filed.(4) Records required by the comptroller must be kept for at least four years after the date on which the records are prepared, and throughout any period in which any tax, fee, penalty, or interest may be assessed, collected, or refunded by the comptroller or in which an administrative hearing or judicial proceedings is pending, unless the comptroller authorizes in writing a shorter retention period. A business must make records available for inspection and audit on request by the comptroller.(j) Failure to keep accurate records. If a sexually oriented business fails to keep accurate records of the number of customers admitted to the business, the comptroller may estimate the amount of fee liability based on any available information that includes, but is not limited to, any reports required to be filed per Tax Code, Chapter 151, Chapter 171 (Franchise Tax), or Chapter 183 (Mixed Beverage Taxes).",
            "sourceNote": "Source Note: The provisions of this §3.722 adopted to be\r\neffective June 24, 2008, 33 TexReg 4907; amended to be effective January\r\n29, 2017, 42 TexReg 219; amended to be effective August 28, 2025,\r\n50 TexReg 5471."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198967&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "198967",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "DD",
                "label": "OIL FIELD CLEANUP REGULATORY FEE"
            },
            "rule": {
                "number": "§3.731",
                "label": "Oil-Field Cleanup Regulatory Fee on Oil"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198968&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "198968",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Imposition. The oil-field cleanup regulatory fee on oil is imposed upon taxpayers who are liable for the oil production tax under Tax Code, §202.153 (First Purchaser to Pay Tax) or §202.154 (Producer to Pay Tax on Oil Not Sold).(b) Reports. The fee is reported and paid on the crude oil tax report forms in the same manner as the oil production tax imposed by Tax Code, Chapter 202 (Oil Production Tax).(c) Amount of fee.(1) The rate of the fee is five-eighths of $.01 ($.00625) per each standard 42-gallon barrel of crude oil produced.(2) Volume subject to the fee. The fee is due on all barrels of oil produced, except an interest owned by a governmental entity as defined in §3.34 of this title (relating to Exemption of Certain Royalty Interests from Oil Occupation Taxes and Regulation Pipeline Taxes).(d) Penalty and interest. Tax Code, Chapter 202 (Oil Production Tax) applies to the administration and collection of the fee, and the penalty and interest provisions of that chapter apply to any person who fails to pay or report the fee.(e) Exemptions and reductions. The exemptions and reductions set out in Tax Code, §§202.052 (Rate of Tax), 202.054 (Qualification of Oil from New or Expanded Enhanced Recovery Project for Special Tax Rate), 202.056 (Exemption for Oil and Gas from Wells Previously Inactive), 202.057 (Tax Credit for Incremental Production Techniques), 202.059 (Exemption for Hydrocarbons from Terra Wells), and 202.060 (Exemption for Oil and Gas from Reactivated Orphaned Wells), do not affect the fee imposed by this section.",
            "sourceNote": "Source Note: The provisions of this §3.731 adopted to be effective February 5, 1992, 17 TexReg 474; amended to be effective November 5, 2001, 26 TexReg 8850; amended to be effective October 12, 2004, 29 TexReg 9556; amended to be effective March 30, 2020, 45 Texreg 2205."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198968&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "198968",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "DD",
                "label": "OIL FIELD CLEANUP REGULATORY FEE"
            },
            "rule": {
                "number": "§3.732",
                "label": "Oil-Field Cleanup Regulatory Fee on Natural Gas"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214092&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214092",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Imposition. The oil-field cleanup regulatory fee on natural gas is imposed upon the first purchaser or producer of natural gas who is liable for the gas production tax under Tax Code, §201.204 (First Purchaser to Pay Tax) or §201.2041 (Producer to Pay Tax on Certain Gas).(b) Reports. The fee is reported and paid on the natural gas tax report forms in the same manner as the gas production tax is imposed by Tax Code, Chapter 201 (Gas Production Tax).(c) Amount of fee. The rate of the fee for gas produced and saved is one-fifteenth of $.01 ($.000667) per 1,000 cubic feet (MCF) of gas.(d) Volume subject to fee. The fee is due on all gas produced and saved, except an interest owned by a governmental entity as defined in §3.27 of this title (relating to Exemption of Certain Interest Owners from Gas Occupation Taxes).(e) Penalty and interest. Tax Code, Chapter 201 applies to the administration and collection of the fee, and penalty and interest provided by that chapter apply to any person who fails to pay or report the fee.(f) Exemptions and Reductions. The exemptions and reductions set out in Tax Code, §§201.053 (Gas Not Taxed), 201.057 (Temporary Exemption or Tax Reduction for Certain High-Cost Gas), 201.058 (Tax Exemptions), and 202.060 (Exemption for Oil and Gas from Reactivated Orphaned Wells), do not affect the fee imposed by this section.",
            "sourceNote": "Source Note: The provisions of this §3.732 adopted to be effective February 5, 1992, 17 TexReg 474; amended to be effective November 18, 2001, 26 TexReg 9158; amended to be effective October 12, 2004, 29 TexReg 9556; amended to be effective March 1, 2012, 37 TexReg 1362; amended to be effective March 6, 2014, 39 TexReg 1482; amended to be effective March 30, 2020, 45 TexReg 2206."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=32323&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "32323",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "E",
                "label": "MISCELLANEOUS TAXES BASED ON GROSS RECEIPTS"
            },
            "rule": {
                "number": "§3.52",
                "label": "Concerns Exempt from Tax--Gas, Electric Light, Power, or Water Works"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=142632&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "142632",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Concerns organized under the Electric Cooperative Corporation Act are not liable for the tax levied by the Texas Tax Code, §182.022.",
            "sourceNote": "Source Note: The provisions of this §3.52 adopted to be effective January 1, 1976."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214092&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214092",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "EE",
                "label": "BOAT AND BOAT MOTOR SALES AND USE TAX"
            },
            "rule": {
                "number": "§3.741",
                "label": "Imposition and Collection of Tax"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198981&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "198981",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Accessories--Nonessential tangible personal property attached to or sold with a vessel for the convenience or comfort of the operator or passengers. The term \"accessories\" includes, but is not limited to, radios, mirrors, transom-mounted ladders, electric trolling motors, water skis, tow ropes, and depth finders. The term does not include a boat trailer.(2) Agent of the Department--A dealer who is authorized by the Department under Parks and Wildlife Code, §31.006 (Appointment of Authorized Agent), to collect taxes and fees and issue certificates of number for taxable boats and outboard motors sold by that dealer in Texas.(3) Application for Certificate of Title and/or Registration--Form PWD 143 (boats) or PWD 144 (outboard motors), an electronic equivalent, or a successor form used to apply for a certificate of title and/or registration for a taxable boat or outboard motor and/or to pay any sales or use tax due on the sale or use of a taxable boat or outboard motor in Texas. The Applications for Certificate of Title and/or Registration are available at https://tpwd.texas.gov/fishboat/boat/forms/.(4) Dealer--A person who holds a license issued by the Department to engage in the business of buying, selling, selling on consignment, displaying for sale, or exchanging at least five taxable boats or outboard motors in Texas during a calendar year at an established or permanent place of business in Texas.(5) Department--The Texas Parks and Wildlife Department.(6) Distributor--A person who holds a license issued by the Department to engage in the business of selling, offering for sale, or processing for distribution new taxable boats or outboard motors to dealers in Texas.(7) Federally documented vessel--A vessel of five net tons or more, operated on United States navigable waters that has been issued a valid marine certificate of documentation on file with the United States Coast Guard National Vessel Documentation Center.(8) Manufacturer--A person who holds a license issued by the Department to engage in the business of manufacturing new and unused taxable boats and outboard motors for the purpose of sale or trade.(9) Participating county tax assessor-collector--A county tax assessor-collector in Texas that has an agreement with the Department to title and/or register taxable boats or outboard motors in Texas.(10) Registered repair facility--A person engaged in the business of repairing, remodeling, maintaining, or restoring taxable boats or outboard motors that holds a current Texas sales and use tax permit issued under Tax Code, Chapter 151 (Limited Sales, Excise, and Use Tax).(11) Retail sale--An installment or credit sale of a taxable boat or outboard motor, an exchange of a taxable boat or outboard motor for property or money, or an exchange in which a taxable boat or outboard motor is transferred but the seller retains title as security for payment of the purchase price. The term does not include a sale in which the dealer, distributor, or manufacturer acquires the taxable boat or outboard motor for the exclusive purpose of resale. Dealers, distributors, and manufacturers are the only persons who may acquire a taxable boat or outboard motor for resale.(12) Taxable boat--A vessel not more than 115 feet in length, measured from the tip of the bow in a straight line to the stern, other than a canoe, kayak, rowboat, raft, punt, or other watercraft designed to be propelled only by paddle, oar, or pole. The term includes federally documented vessels, sailboats, personal watercraft, and boats designed to accommodate an outboard motor. The term does not include seaplanes. Seaplanes, and canoes, kayaks, rowboats, rafts, punts, or other watercraft designed to be propelled only by paddle, oar, or pole, are not \"taxable boats\" under Tax Code, Chapter 160 (Taxes On Sales And Use Of Boats And Boat Motors), but are subject to tax under Tax Code, Chapter 151. (Limited Sales, Excise and Use Tax).(13) Outboard motor--Any self-contained internal combustion propulsion system of any horsepower, excluding fuel supply, used to propel a vessel that is detachable as a unit from the vessel. The term does not include electric boat motors.(14) Temporary use permit--A non-renewable, non-transferable permit issued by the Department, an agent of the Department, or a participating county tax assessor-collector authorizing the temporary tax-free use of a taxable boat or outboard motor within the territorial boundaries of Texas for not more than 90 consecutive days from the date of issue. Only two temporary use permits may be issued for the same taxable boat or outboard motor within a calendar year. The second temporary use permit cannot be issued until 30 days after the date the first permit expires. The nonrefundable fee for the permit is $150 per taxable boat or outboard motor.(15) Territorial boundaries of Texas--All territory within the exterior borders of Texas. The offshore border of Texas extends nine nautical miles from the coastline of Texas.(16) Total consideration--The amount paid or to be paid for a taxable boat or outboard motor, including all accessories attached thereto at the time of the sale. The amount includes payments by the purchaser for the costs of material, labor or service, interest paid, loss, or any other expense, transportation before the sale, any manufacturer's or importer's excise tax imposed by the United States government, and any dealer's vessel and outboard motor inventory property tax imposed on the dealer and passed through to the purchaser. The amount also includes anything of monetary value received by the seller, such as cash or the equivalent; a book entry reflecting cash received or paid; the forgiveness or assumption of debt; book entries reflecting accounts receivable or accounts payable for an item; the performance of a service; or real or tangible personal property. The amount does not include any separately stated discount, finance or interest charges, documentary charges, transportation charges after the sale, or the value of another taxable boat or outboard motor taken by the seller as all or part of the consideration for the sale of the taxable boat or outboard motor.(17) Use--Any storage or other exercise of rights of ownership in Texas by any person excluding:(A) the storage, display, or holding of a taxable boat or outboard motor exclusively for sale by a dealer, distributor, or manufacturer; or(B) troubleshooting or testing of a taxable boat or outboard motor being repaired, remodeled, maintained, or restored by a registered repair facility under subsection (g)(1) of this section.(18) Vessel--Any watercraft, other than a seaplane on water, used or capable of being used for transportation on water. The definition includes a ship, barge, taxable boat, yacht, or any watercraft designed to be propelled by paddle, oar or pole.(b) General principles of taxation.(1) The purchase of a taxable boat or outboard motor and all accessories attached thereto at the time of sale in Texas is subject to Tax Code, Chapter 160, including the purchase of a taxable boat or outboard motor for purposes of lease or rental.(2) The lease or rental of a taxable boat or outboard motor in Texas is subject to Tax Code, Chapter 151, and cannot be purchased tax-free for resale.(3) The purchase of accessories for a taxable boat or outboard motor attached after the time of sale of the taxable boat or outboard motor is subject to Tax Code, Chapter 151.(4) The purchase of tangible personal property that cannot be identified as a taxable boat or outboard motor at the time of sale is subject to Tax Code, Chapter 151, even if the combination of items of tangible personal property later becomes a taxable boat or outboard motor. If items of tangible personal property are combined to create a taxable boat or outboard motor, the initial titling or registration of the taxable boat or outboard motor in the name of the person who created the taxable boat or outboard motor is not subject to Tax Code, Chapter 160. If the taxable boat or outboard motor is titled or registered in any other person's name, the taxable boat or outboard motor is considered transferred to that person and is subject to Tax Code, Chapter 160.(5) The purchase of safety equipment required by Parks and Wildlife Code, §§31.064-31.071, including life preservers and fire extinguishers, purchased with a taxable boat or outboard motor are considered to be attached to the taxable boat or outboard motor at the time of sale and subject to Tax Code, Chapter 160.(6) A taxable boat or outboard motor and all accessories attached thereto purchased outside of Texas and brought into Texas for use in Texas is subject to use tax under Tax Code, §160.022 (Use Tax), or in lieu of the use tax, a new resident use tax is due under Tax Code, §160.023 (New Resident), if the taxable boat or outboard motor and all accessories attached thereto are brought into Texas by a new resident of Texas.(7) The purchase of a boat trailer is subject to motor vehicle sales and use tax under Tax Code, Chapter 152 (Taxes on Sale, Rental, and Use of Motor Vehicles). The total consideration paid or to be paid for a boat trailer must be separately stated from the total consideration paid or to be paid for a taxable boat and/or outboard motor at the time the boat trailer is registered in Texas. For more information on the taxation of boat trailers, see §3.74 of this title (relating to Seller Responsibility) and §3.72 of this title (relating to Trailers, Farm Machines, and Timber Machines).(c) Imposition of the tax.(1) A sales tax is imposed on each retail sale of a taxable boat or outboard motor transferred for consideration within the territorial boundaries of Texas.(A) The sales tax rate is 6.25% of the total consideration paid or to be paid for each taxable boat or outboard motor sold. The total consideration paid or to be paid for a taxable boat must be separately stated from the total consideration paid or to be paid for an outboard motor. The total amount of sales tax due may not exceed $18,750 for each taxable boat or outboard motor sold in Texas. The total amount of sales tax allowed applies separately to the taxable boat and outboard motor.(B) The sales tax is the obligation of and shall be paid by the purchaser of the taxable boat or outboard motor. A dealer who collects sales tax from the purchaser of a taxable boat or outboard motor and does not remit the sales tax collected to either the Department an agent of the Department, or a participating county tax assessor-collector is liable for the sales tax collected and any penalties that may apply.(2) Use tax is imposed on the use in Texas of each taxable boat or outboard motor purchased outside of Texas and brought into Texas for use in Texas.(A) The use tax rate is 6.25% of the total consideration paid or to be paid for the taxable boat or outboard motor, regardless of any use or depreciation of the taxable boat or outboard motor before the entry of the taxable boat or outboard motor into Texas. The total consideration paid or to be paid for a taxable boat must be separately stated from the total consideration paid or to be paid for each outboard motor.(B) The use tax is an obligation of, and shall be paid by, the person who brings the taxable boat or outboard motor into Texas. The person obligated to pay Texas use tax may claim a credit against the use tax due at the time the taxable boat or outboard motor is titled and/or registered in Texas only for legally imposed state and local sales or use tax paid on the purchase of the taxable boat or outboard motor to another state, Puerto Rico, or a possession or territory of the United States by the purchaser of the taxable boat or outboard motor before entry into Texas. Acceptable proof of tax paid includes an out-of-state tax receipt, a seller's bill of sale, sales invoice, or sales contract identifying the amount of sales or use tax paid to another state on the sale of the taxable boat or outboard motor.(C) A new resident use tax of $15 is due in lieu of the use tax for each taxable boat or outboard motor owned by a new resident in any other state or foreign country and brought into Texas by the new resident if the taxable boat or outboard motor is brought into Texas by the new resident within 45 working days after becoming a new resident. The tax is an obligation of, and shall be paid by, the new resident who brings the taxable boat or outboard motor into Texas. A new resident cannot claim a credit against the new resident use tax due at the time the taxable boat or outboard motor is titled and/or registered in Texas for any legally imposed state and local sales or use tax due and paid to another state on the purchase of the taxable boat or outboard motor.(D) The use tax is not due on the use of a taxable boat or outboard motor brought into Texas for use in Texas if the taxable boat or outboard motor:(i) is a federally documented vessel or has a current certificate of number or registration issued by a United States Coast Guard approved numbering system of another state;(ii) is issued a temporary use permit that must be present on board the boat at all times while the taxable boat or outboard motor is located within the territorial boundaries of Texas; and(iii) the boat or outboard motor is removed from the territorial boundaries of Texas on or before the expiration date of the temporary use permit.(E) Subparagraphs (A) and (B) of this paragraph apply to the use of a taxable boat or outboard motor brought into Texas that remains within the territorial boundaries of Texas after the expiration date of the temporary use permit. Credit is not allowed for the $150 temporary use permit fee against any Texas use tax that may be due.(d) Payment of the tax.(1) The seller and purchaser must complete an Application for Certificate of Title and/or Registration for each sale of a taxable boat or outboard motor in Texas, and:(A) if the seller collects the sales tax from the purchaser, the seller must remit the tax and the Application for Certificate of Title and/or Registration to either the Department, an agent of the Department, or a participating county tax assessor-collector within 45 working days from the date the taxable boat or outboard motor is delivered to the purchaser in Texas; or(B) if the seller gives the Application for Certificate of Title and/or Registration to the purchaser, the purchaser is then required to remit the sales tax and the Application for Certificate of Title and/or Registration to either the Department, an agent of the Department, or a participating county tax assessor-collector within 45 working days from the date the taxable boat or outboard motor is delivered to the purchaser in Texas.(2) Persons who owe use tax must complete an Application for Certificate of Title and/or Registration and remit the use tax and the Application for Certificate of Title and/or Registration to either the Department, an agent of the Department, or a participating county tax assessor-collector within 45 working days after the date the taxable boat or outboard motor is brought into Texas.(3) Persons transferring ownership of a taxable boat or outboard motor in Texas when no sales or use tax is due as a result of a tax exemption, even exchange, or gift of a taxable boat or outboard motor, must complete an Application for Certificate of Title and/or Registration indicating why no sales or use tax is due and file the Application for Certificate of Title and/or Registration with either the Department, an agent of the Department, or a participating county tax assessor-collector within 45 working days after the date the taxable boat or outboard motor is transferred in Texas.(e) Failure of tax remittance by the selling dealer.(1) If a purchaser paid sales tax imposed by Tax Code, §160.021 (Retail Sales Tax), to a selling dealer, and the dealer failed to remit the sales tax within 45 working days from the date of sale, the Department, agent of the Department, or participating county tax assessor-collector shall accept an application for Certificate of Title and/or Registration for a taxable boat or outboard motor from the purchaser without payment of additional sales tax by the purchaser. The purchaser must provide proof that the sales tax was paid to the dealer. Acceptable proof includes an invoice, bill of sale, or a receipt signed by the dealer or its representative showing that the sales tax was paid to the dealer.(2) The Department, agent of the Department, or participating county tax assessor-collector shall notify the comptroller in writing of the dealer's failure to remit the tax. The notice must:(A) be made before the 31st day after the date the application for Certificate of Title and/or Registration is accepted;(B) contain the name and address of the dealer; and(C) include copies of documentation provided by the purchaser showing sales tax was paid to the dealer.(f) Purchase of tangible personal property or accessories for resale.(1) A properly completed resale certificate as provided under Tax Code, Chapter 151, may be used to purchase tangible personal property tax-free to be combined into a taxable boat or outboard motor held for sale in the purchaser's regular course of business.(2) A properly completed resale certificate as provided under Tax Code, Chapter 151, may be used to purchase accessories tax-free that are included in a lump-sum price for the accessory and taxable boat or outboard motor. The lump-sum sales price is subject to the boat and boat motor sales and use tax.(3) Accessories purchased to be attached to a vessel not subject to Tax Code, Chapter 160 (vessels over 115 feet in length), are subject to Tax Code, Chapter 151. See also §3.285 of this title (relating to Resale Certificate; Sales for Resale), §3.294 of this title (relating to Rental and Lease of Tangible Personal Property), and §3.297 of this title (relating to Carriers, Commercial Vessels, Locomotives and Rolling Stock, and Motor Vehicles).(g) Exemptions and non-taxable transactions.(1) Sales tax is not due on the sale of a taxable boat or outboard motor to a purchaser in Texas for use in another state or nation before any use in Texas, if:(A) the purchaser gives the seller a written statement signed by the purchaser stating that the purchaser intends to remove the taxable boat or outboard motor from Texas to a designated state or nation, and either;(B) removes the taxable boat or outboard motor from the territorial boundaries of Texas within 10 days of the date of sale;(C) places the taxable boat or outboard motor in a registered repair facility for repair, remodeling, maintenance, or restoration within 10 days of the date of sale and then removes the taxable boat or outboard motor from the territorial boundaries of Texas within 20 days from the date the repair, remodeling, maintenance, or restoration is completed; or(D) obtains a temporary use permit within the time limits described in this paragraph. The permit must be present on board the boat at all times while the taxable boat or outboard motor is located within the territorial boundaries of Texas.(E) Noncompliance with the requirements in this paragraph will result in the loss of the exemption and sales tax is due on the sale of the taxable boat or outboard motor. Credit is not allowed for the $150 temporary use permit fee against any sales tax that may be due.(2) Sales or use tax is not due on the purchase or use of a taxable boat or outboard motor in Texas by:(A) the State of Texas; its unincorporated agencies and instrumentalities; any county, city, special district or other political subdivision of the State of Texas; and any college or university created or authorized by the State of Texas;(B) the United States; its unincorporated agencies and instrumentalities, including all independent boards, commissions, agencies, or instrumentalities chartered by the United States congress (e.g., the American Red Cross, Boy Scouts of America, Girl Scouts of America, etc.); and any incorporated agency or instrumentality of the United States wholly owned by the United States or by a corporation wholly owned by the United States; or(C) any volunteer fire department or other department, company, or association organized for the purpose of answering fire alarms, extinguishing fires, and providing emergency medical services by members who receive no compensation or only nominal compensation for their services rendered, if the volunteer fire department or other department, company, or association uses the taxable boat or outboard motor exclusively for exempt purposes.(3) Sales or use tax is not due on a taxable boat or outboard motor when:(A) an insurer takes title to the taxable boat or outboard motor as a result of a total loss settlement or adjustment of an insurance claim for a damaged or stolen taxable boat or outboard motor; or(B) a seller or lienholder takes possession of a taxable boat or outboard motor repossessed under a retail installment sales agreement, a chattel mortgage, or a security agreement.(h) Refunds.(1) Any person, or the person's attorney, assignee, or other successor may request from the comptroller a refund of any boat or boat motor sales and use tax paid in error.(2) The request for a refund must:(A) be in writing on Form 57-200, Texas Claim for Refund of Boat and Boat Motor Tax, available at comptroller.texas.gov, its electronic equivalent, or a successor form, promulgated by the comptroller;(B) state fully and in detail the specific grounds upon which the claim is founded; and(C) be filed within four years from the date on which the tax was due and payable and within the provisions of Tax Code, Chapter 111, Subchapter D (Limitations).(D) The comptroller will require a person to submit additional information to verify the refund claim, including a copy of the title and tax receipt issued by the Department, agent of the Department, or participating county tax assessor-collector.(3) The comptroller will notify the claimant if the comptroller determines that a refund claim cannot be granted in part or in full and will also notify the claimant which requirements were not met. The claimant may then request a refund hearing in accordance with Tax Code, §111.105 (Tax Refund: Hearing). A person may not refile a claim for the same transaction and for the same ground or reason as a refund claim previously denied by the comptroller.(4) A person who intends to file suit under Tax Code, Chapter 112, Subchapter B (Suit After Protest Payment), must submit to the Department, agent of the Department, or participating county tax assessor-collector a letter of protest with the payment of the tax. The letter of protest must state fully and in detail the reason that the person contends that the assessment is unlawful or unauthorized. Upon receipt of the protest letter, the Department, agent of the Department, or participating county tax assessor-collector must immediately send the comptroller a copy of the protest letter and a copy of the tax receipt showing tax paid to the comptroller.",
            "sourceNote": "Source Note: The provisions of this §3.741 adopted to be effective December 5, 1996, 21 TexReg 11518; amended to be effective August 4, 1998, 23 TexReg 7840; amended to be effective June 20, 2000, 25 TexReg 5916; amended to be effective July 4, 2023, 48 TexReg 3518."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=142632&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "142632",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.61",
                "label": "Credit for Motor Vehicle Sales or Use Tax Paid to Another State"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19728&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19728",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A credit is allowed to a person, firm, or corporation that, as a purchaser, has paid legally imposed sales or use tax to another state, including any political subdivision of that state, on a motor vehicle that later becomes subject to the Texas Motor Vehicle Use Tax. The credit allowed is the amount of the prior payment to the other state and any political subdivision of that state. If the purchaser is leasing a vehicle and paying the tax to another state along with the lease payments, credit can be allowed only for tax already remitted to the other state prior to operating the vehicle in Texas. Credit is not allowed for a foreign country's tax, custom or duty tax, or import tax. The purchaser can show a tax receipt, a seller's invoice, or contract verifying the amount of tax paid to another state and any political subdivision of that state. Credit is not allowed against the $90 new resident tax or the Texas Emissions Reduction Plan surcharge, set forth in Tax Code, §152.0215. If a motor vehicle purchased tax-free for use solely outside Texas is later used inside Texas, use tax is due on the purchase price; however, credit is allowed in the amount of a legally imposed sales or use tax paid to another state and any political subdivision of that state.",
            "sourceNote": "Source Note: The provisions of this §3.61 adopted to be effective January 1, 1976; amended to be effective December 20, 1978, 3 TexReg 4189; amended to be effective February 13, 1984, 9 TexReg 579; amended to be effective March 19, 2000, 25 TexReg 2154; amended to be effective October 13, 2009, 34 TexReg 7092."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19728&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19728",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.62",
                "label": "Insurance Settlements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=122722&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "122722",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The motor vehicle sales and use tax is not due where an insurance company takes title to a motor vehicle as a result of a total loss settlement or a stolen vehicle which was later recovered, because the transaction in which an insurance company obtains title to a motor vehicle in return for an insurance settlement is not considered a sale. The motor vehicle sales and use tax is due when the insurance company purchases a replacement motor vehicle for the insured on a total loss or stolen vehicle claim.",
            "sourceNote": "Source Note: The provisions of this §3.62 adopted to be effective January 1, 1976; amended to be effective September 29, 1978, 3 TexReg 3249."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=122722&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "122722",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.63",
                "label": "Foreign Diplomatic Officials"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19727&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19727",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All diplomatic missions and their members, including dependents, are required by federal law (22 U.S.C. Section 4303) to register all motor vehicles that they own or lease, with the United States Department of State, Office of Foreign Missions, Diplomatic Vehicle Office.(b) The vendor of a motor vehicle sold in Texas must contact the Office of Foreign Missions for a determination on the tax exempt status of a purchaser. A statement will be provided by the Office of Foreign Missions to the vendor indicating the tax exempt status of the purchaser for sales tax imposed on the transaction. A copy of the statement must be kept for four years from the date of purchase. If the exemption is denied, a selling dealer licensed under Transportation Code, Chapter 503, must collect and remit tax due (see §3.74, Seller Responsibility).",
            "sourceNote": "Source Note: The provisions of this §3.63 adopted to be effective January 9, 2006, 31 TexReg 164."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19727&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19727",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.64",
                "label": "Motor Vehicle Transferred on Incorporation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19732&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19732",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as provided in subsection (b) of this section, motor vehicle sales and use tax is due upon the transfer of title to a motor vehicle between corporations or between a corporation and an individual or a partnership. Taxable transfers include those between parent and subsidiary corporations, and the purchase by one corporation of the entire assets, including motor vehicles, of another corporation.(b) The following are exceptions to the principle stated in subsection (a) of this section.(1) Initial incorporation-change in form of doing business. Motor vehicle sales and use tax is not due if, in connection with the incorporation of a partnership or sole proprietorship, title to a motor vehicle is transferred from the partnership or proprietorship into the new corporation's name for no consideration other than stock in the new corporation.(2) Formation of a subsidiary corporation. Motor vehicle sales and use tax is not due if, in connection with the initial incorporation of a subsidiary, title to a motor vehicle is transferred from the parent corporation or another subsidiary corporation into the name of the new subsidiary for no consideration other than stock in the new corporation.(3) Dividend. Under present law, a corporation may declare a dividend in the form of cash or other property. Motor vehicle sales and use tax is not due on the transfer to a shareholder of title to a motor vehicle pursuant to a corporation's formal declaration of the motor vehicle as a dividend.(4) Dissolution. Motor vehicle sales and use tax is not due upon the transfer of title to a motor vehicle into a shareholder's name in connection with the distribution of assets upon formal dissolution of a corporation. However, for purposes of this rule, forfeiture of a corporate charter for nonpayment of franchise taxes does not constitute formal dissolution; therefore, all transfers of motor vehicles to shareholders upon forfeiture of the corporate charter will be subject to the motor vehicle sales and use tax.(5) Merger or consolidation. Motor vehicle sales and use tax is not due upon the transfer of title to a motor vehicle into the name of a surviving corporation when such transfer is made pursuant to a statutory merger or consolidation of two or more corporations.",
            "sourceNote": "Source Note: The provisions of this §3.64 adopted to be effective January 1, 1976; amended to be effective August 8, 1979, 4 TexReg 2592."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19732&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19732",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.65",
                "label": "Motor Vehicles Purchased Through Another Name"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=28608&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "28608",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If a vehicle is titled in the name of someone other than the buyer of the vehicle, the motor vehicle sales and use tax is due. If title to a motor vehicle that is titled in someone other than the buyer's name is subsequently transferred to the buyer, the following taxes apply.(1) If the vehicle is transferred to the buyer and no consideration is given by the buyer, the $10 gift tax is due on this motor vehicle transfer.(2) If the vehicle is transferred to the buyer and the buyer gives a consideration, the motor vehicle sales or use tax is due and shall be based on the consideration given.(b) The motor vehicle sales or use tax is due when a motor vehicle is titled in the name of the parent or guardian of the vehicle buyer who has not reached the age of 21. The subsequent transfer of the title to this vehicle to the buyer is not a taxable transaction.",
            "sourceNote": "Source Note: The provisions of this §3.65 adopted to be effective January 1, 1976; amended to be effective September 13, 1978, 3 TexReg 3027; amended to be effective March 21, 1978, 4 TexReg 725; amended to be effective October 30, 1984, 9 TexReg 5387; amended to be effective November 24, 1987, 12 TexReg 4196."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=28608&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "28608",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.66",
                "label": "Community Property"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3796&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "3796",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A transfer between husband and wife of title to a motor vehicle which is community property is not subject to the provisions of the Motor Vehicle Sales and Use Tax Act. Transfers between persons formerly married to each other are exempt from the provisions of the Motor Vehicle Sales and Use Tax Act only if the transfer is part of the property settlement or court-ordered division of community property in a divorce decree.",
            "sourceNote": "Source Note: The provisions of this §3.66 adopted to be effective January 1, 1976; amended to be effective July 5, 1978, 3 TexReg 2086."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3796&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "3796",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.67",
                "label": "Repossessions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175826&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175826",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The repossession of a motor vehicle by a seller or lienholder is not a retail sale subject to motor vehicle sales and use tax.",
            "sourceNote": "Source Note: The provisions of this §3.67 adopted to be effective January 1, 1976; amended to be effective March 7, 1979, 4 TexReg 552."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175826&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175826",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.68",
                "label": "United States and Foreign Military Personnel Stationed in Texas"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=32630&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "32630",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) North Atlantic Treaty Organization (NATO) foreign military personnel.(1) Foreign military personnel, their dependents, and military-employed foreign civilians, if attached to a member of NATO and stationed in Texas, are exempt from the motor vehicle sales or use tax on any motor vehicle purchased in Texas or brought into Texas while stationed in Texas.(2) Non-United States members of the North Atlantic Treaty Organization include: Belgium, Bulgaria, Canada, Czech Republic, Denmark, Estonia, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Lithuania, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Turkey, and The United Kingdom.(b) United States military personnel and foreign military personnel other than NATO personnel. A member of the United States military residing in Texas on military orders and foreign military personnel, their dependents, and military employed foreign civilians, other than NATO related personnel referred to in subsection (a) of this section, are:(1) subject to the motor vehicle sales tax on any motor vehicle purchased in Texas and not immediately removed from Texas for use exclusively outside of Texas pursuant to Tax Code, §152.092 and §3.90 of this title (relating to Motor Vehicles Purchased for Use Outside of Texas); and(2) subject to the motor vehicle use tax or the motor vehicle new resident use tax on any vehicle purchased outside of Texas and subsequently brought into Texas for use in Texas. The domicile and legal residence for United States military personnel is the person's \"home of record\" as designated in the person's military records.(c) Tax payment due dates.(1) Motor vehicle sales or use tax is due 30 calendar days from the date of Texas sale or first use in Texas, except as provided in paragraph (2) of this subsection. The tax must be paid when the purchaser files the appropriate documents with the county tax assessor-collector to transfer the title and register the vehicle, in accordance with Transportation Code, §501.145.(2) A member of the United States military, of a reserve unit of the United States military, of the Texas National Guard or of the National Guard of another state who is on active military duty under an order of the president of the United States must pay motor vehicle sales or use tax as the purchaser of a motor vehicle no later than 60 calendar days after the date of sale or first use in Texas.(d) Calculation of tax due. For information regarding the proper calculation of motor vehicle sales or use tax due on the transfer of a vehicle title, refer to §3.79 of this title (relating to Standard Presumptive Value).",
            "sourceNote": "Source Note: The provisions of this §3.68 adopted to be effective October 14, 1988, 13 TexReg 4855; amended to be effective September 5, 2006, 31 TexReg 7133; amended to be effective October 13, 2009, 34 TexReg 7093; amended to be effective September 2, 2014, 39 TexReg 6863; amended to be effective January 7, 2016, 41 TexReg 260."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=32630&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "32630",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.69",
                "label": "Motor Vehicle Use Tax; Interstate Commerce; Motor Carriers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=76207&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "76207",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The motor vehicle use tax is due upon every motor vehicle purchased at retail outside this state, and brought into Texas for use upon the public highways by any person, firm, or corporation that is doing business in this state. The tax shall be the obligation of and be paid by the operator of the motor vehicle.(b) For the purposes of this section and the Texas Tax Code, §152.022, an individual, firm, corporation, or other entity is doing business in the state if it engages or transacts some part of its ordinary business in the state. The activities of either the entity or the manner in which the motor vehicle is used in the state may result in liability for the motor vehicle use tax.(c) An entity which has sufficient contacts, or conducts sufficient activities in the state so that it is doing business, will be liable for the motor vehicle use tax on any of its motor vehicles which use the highways of Texas. If the entity does not conduct sufficient activities or have sufficient contacts with the state to be considered doing business, it will not be liable for the motor vehicle use tax on any of its vehicles which operate upon the highways of Texas.(d) The following is a nonexhaustive list of activities which constitute doing business in Texas and which would subject a person, firm, corporation, or other entity to liability for the motor vehicle use tax.(1) Except as provided in subsection (f) of this section, providing any service in Texas, whether or not the persons performing the service are residents of the state.(2) Assembling, erecting, processing, manufacturing, selling, or storing property located in Texas.(3) Transporting persons or property from one point in Texas to another point in Texas, even though the transporting vehicle's origination or ultimate destination may be outside Texas.(4) Owning, leasing or maintaining facilities, and/or maintaining employees in Texas:(A) for storage, delivery, or shipment of goods;(B) for servicing, maintenance, or repair of vehicles; or(C) for coordinating and directing the transportation of persons or property, which transportation is at least partially in Texas.(5) Having a representative, agent, salesman, canvasser or solicitor in the state under the authority of the entity for the purpose of selling or soliciting sales of goods or services.(6) Delivering one's own goods to locations in Texas with one's own vehicles or employees.(e) A domestic corporation or a foreign corporation which has a certificate of authority to transact business in Texas is considered to be doing business in Texas for the purposes of this section.(f) A person, firm, corporation, or other entity not otherwise doing business under this section will not be liable for motor vehicle use tax on vehicles it brings into Texas from outside the state solely to deliver and/or pick up persons or property as a third-party carrier when the persons or the property is being transported in interstate or foreign commerce.(g) The Motor Vehicle Sales and Use Tax imposed by the Texas Tax Code, Chapter 152, does not apply to motor vehicles, trailers, and semitrailers taxed under Chapter 157; and the taxes imposed by Chapter 157 do not apply to motor vehicles taxed under Chapter 152; provided that, if a motor vehicle, trailer, or semitrailer taxed under Chapter 157 ceases to be used as an interstate motor vehicle, trailer, or semitrailer within one year of either the date the vehicle was purchased in Texas or the date such vehicle was first brought into Texas, the taxes imposed by Chapter 152 will apply at that time.",
            "sourceNote": "Source Note: The provisions of this §3.69 adopted to be effective January 1, 1976; amended to be effective May 17, 1982, 7 TexReg 1695."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=76207&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "76207",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.70",
                "label": "Motor Vehicle Leases and Sales"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19735&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19735",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Except for purchases by franchised dealers described in this subsection, motor vehicles that are purchased by a lessor to be leased are subject to motor vehicle sales or use tax based upon the purchase price of the motor vehicle to the lessor. Such tax is due from the lessor at the time of purchase. Subsequent lease payments are not subject to the tax. The purchase of a new motor vehicle by a franchised dealer who removes the motor vehicle from inventory for the purpose of leasing the vehicle to another person, and who immediately after executing the lease contract transfers title of the vehicle and assigns the lease contract to a lessor, is not a retail purchase and is not subject to tax. If the title is not transferred and the lease assigned within seven calendar days, the dealer's purchase and use will be presumed to be a retail purchase and taxable. The presumption may be overcome by showing evidence of intent. The lessor to whom the dealer transfers title and assigns the lease contract is liable for motor vehicle sales and use tax.(b) If, at the termination of a lease, a motor vehicle is sold by the lessor to the lessee and the lease contained an \"option to purchase\" at less than fair market value or a \"must purchase\" clause or if the vehicle is sold to the lessee at less than fair market value, the amount subject to the motor vehicle sales and use tax will be the total consideration paid the lessor by the lessee under the agreement, since the agreement will be considered a sale rather than a lease agreement. \"Total consideration\" means the amount paid or to be paid for a motor vehicle and all accessories attached to it at the time of the sale; total consideration does not include separately stated finance charges, carrying charges, service charges, or interest.(c) If the transaction is considered to be a sale and not a lease, as described in subsection (b) of this section, no additional motor vehicle sales tax is due at the time the initial lessee/purchaser takes title to the vehicle, provided the correct amount of tax was previously paid on the total consideration. If the correct amount of tax was not paid on the total consideration, the lessee/purchaser must pay the difference when the vehicle is titled in his name.(d) If the motor vehicle is sold to a person not privy to the lease or if it is sold to the lessee at fair market value, the amount subject to the motor vehicle sales and use tax is the agreed-upon sales price. (See Attorney General Opinion WW-711 (1959).)(e) Motor vehicle use tax is due on a motor vehicle purchased outside of the State of Texas and leased and brought into the state for use upon the highway. The lessee of the motor vehicle is liable for such tax. If the lessee is a resident of this state or is domiciled or doing business in this state the tax is based upon the consideration paid outside the state by the purchaser of the motor vehicle, regardless of any use or depreciation of the vehicle subsequent to its purchase and prior to its use in this state. If the lessee is a new resident of this state as described in §3.71 of this title (relating to Definition of \"Resident\" and \"New Resident\"), the new resident may pay a new resident use tax of $90 imposed by Tax Code, §152.023, in lieu of the 6.25% use tax.(f) A lessee may take credit for legally imposed sales, use, or similar tax paid to another state by the lessee or the lessor on the leased motor vehicle before that vehicle becomes subject to the Texas motor vehicle use tax imposed by Tax Code, §152.022. If the lessee purchases the leased vehicle, credit will be allowed for Texas motor vehicle use tax imposed by Tax Code, §152.022, and paid by the lessee when the vehicle was brought into this state.(g) An owner of a motor vehicle that was purchased to be leased for interstate use, tax exempt under Tax Code, §152.089, is liable for motor vehicle sales/use tax if the motor vehicle is no longer held for interstate use or held exclusively for resale. The tax is imposed at a rate prescribed by Tax Code, §152.021(b), and based on the owner's book value at the time the vehicle was removed from interstate use.",
            "sourceNote": "Source Note: The provisions of this §3.70 adopted to be effective December 4, 1996, 21 TexReg 11622; amended to be effective December 9, 1998, 23 TexReg 12449; amended to be effective March 19, 2000, 25 TexReg 2154."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19735&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19735",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.71",
                "label": "Definition of \"Resident\" and \"New Resident\""
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=186802&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "186802",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A \"resident\" within the meaning of the Texas Tax Code, §152.022, shall mean any person who lives in the state, and any firm, corporation, or association which is physically located in the state. A person who is temporarily living in the state, and retains a permanent home in another state, is nevertheless a resident of Texas for purposes of the Texas Tax Code, §152.022. A person, firm, corporation, or association may be a resident of more than one state at a time.(b) Definition of new resident.(1) A \"new resident\" within the meaning of Texas Tax Code, §152.023, shall mean any person, firm, corporation, or association which moves into Texas with the intent to live or locate within the state. A natural person may demonstrate the necessary intent to live in Texas by establishing a fixed dwelling place in Texas, registering to vote in Texas, or demonstrating a legal or economic constraint to live in Texas. A business entity may demonstrate the necessary intent to locate in Texas by establishing a fixed place of business in Texas, advertising that it is located in Texas, or demonstrating a contractual obligation to locate in Texas.(2) A new resident may also be a resident of other states. However, once residence is established in Texas, a person, firm, corporation, or association may not subsequently become a new resident within the meaning of the Texas Tax Code, §152.023, without a showing that the residence formerly established in Texas was abandoned.",
            "sourceNote": "Source Note: The provisions of this §3.71 adopted to be effective January 1, 1976; amended to be effective May 27, 1980, 5 TexReg 1852."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=186802&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "186802",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.72",
                "label": "Trailers, Farm Machines, and Timber Machines"
            },
            "nextRule": {
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                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Bunkhouse--A house trailer designed to be used as sleeping accommodations for multiple persons, such as a work crew, but not as a single-family residence.(2) Farm or ranch--One or more tracts of land used, either wholly or in part, in the production of crops, livestock, and/or other agricultural products held for sale in the regular course of business. The term includes feed lots, dairy farms, poultry farms, commercial orchards, commercial nurseries, and similar commercial agricultural operations that are original producers of agricultural products. The term does not include, among other operations, home gardens, wildlife management, and timber operations.(3) Farm machine--A self-propelled motor vehicle specially adapted for, and whose primary use is in, the production of crops or rearing of livestock, including poultry or use in feedlots. The term includes a self-propelled motor vehicle specially adapted for distributing and applying plant-food materials, agricultural chemicals, or feed for livestock. The term does not include pickup trucks or any self-propelled motor vehicle specifically designed, or specially adapted, to transport property other than the property being applied or for the sole purpose of transporting or setting in place agricultural products, plant-food materials, agricultural chemicals, or feed for livestock. Examples of farm machines include, but are not limited to, a truck cab chassis with a tank and equipment designed to apply liquid fertilizer, a truck cab chassis with a hopper and auger designed to distribute feed in a feedlot, and a truck modified with a flat bed, feed distributor, and hay bale roll-out distribution device. A flat bed truck modified solely with a hay spear/spike, hay bale roll-out distribution device, or cube feeder of a size allowing the truck bed to be used for general purposes is an example of a vehicle that does not qualify as a farm machine.(4) Farm trailer--A trailer or semitrailer designed and whose primary use is as a farm or ranch vehicle. The term does not include a motor vehicle designed for human habitation, including, but not limited to, any vehicle designed for sleeping, dressing, lounging, restroom use, or meal preparation, even though the vehicle may also be used to transport livestock or agricultural products.(5) House trailer--This term has the meaning given in §3.481 of this title (relating to Imposition and Collection of Manufactured Housing Tax) referring to Subchapter T of this chapter (relating to Manufactured Housing Sales and Use Tax).(6) Installation or set-up--Activities associated with the sale of a trailer, as defined in this section, including, but not limited to, spotting the trailer; preparing the foundation; placing, leveling, blocking, and anchoring the trailer; connecting sewer, water, electricity, and other utilities; and installing under skirting, awnings, and steps.(7) Mobile office--This term has the meaning given in §3.306 of this title (relating to Sales of Mobile Offices, Oilfield Portable Units, Portable Buildings, Prefabricated Buildings, and Ready-Built Homes).(8) Oilfield portable unit--This term has the meaning given in §3.306 of this title.(9) Park model--This term has the meaning given in §3.481 of this title.(10) Primary use--Use of at least 80% of a motor vehicle's operating time.(11) Timber machine--A self-propelled motor vehicle specially adapted to perform a specialized function for use primarily in timber operations, such as land preparation, planting, maintenance, and harvesting of trees. The term does not include any self-propelled motor vehicle specifically designed or adapted for the primary use of transporting timber or timber products, including a self-propelled motor vehicle designed to transport cargo and adapted with a cargo-loading device. The term also does not include field service vehicles, such as those used to fuel or maintain other vehicles or crew vehicles.(12) Timber operations--The production of timber, meaning the activities to prepare the production site or to plant, cultivate, or harvest commercial timber that will be sold in the regular course of business.(13) Timber trailer--A trailer designed for and used primarily in a timber operation.(14) Trailer--A vehicle without automotive power that is designed for human habitation or for carrying property upon a permanent chassis with wheels, axles, and a towing device, and that is designed to be drawn by a self-propelled motor vehicle. The term includes, but is not limited to, semitrailers, vans, flatbeds, tanks, dumpsters, trailers sold unassembled in a kit, dollies, jeeps, stingers, auxiliary axles, converter gears, bunkhouses, travel trailers, park models, and house trailers. The term does not include a unit designed to be towed by a self-propelled vehicle that meets the definition of moveable specialized equipment in §3.88 of this title (relating to Moveable Specialized Equipment and Off-Road Vehicles); mobile offices, as defined in this section; manufactured homes, as defined by Tax Code, §158.002; oilfield portable units, as defined in this section; or portable buildings, prefabricated buildings, and ready-built homes, as defined in §3.306 of this title.(15) Travel trailer or recreational trailer--A trailer designed for human habitation as temporary living quarters in connection with recreational, camping, travel, or seasonal use that:(A) is not designed to be used as a permanent dwelling;(B) is less than eight feet six inches in width and 45 feet in length in the traveling mode and contains plumbing, heating, and electrical systems that may be operated without connection to outside utilities; and(C) is not a utility trailer, enclosed trailer, or other trailer that is not designed for human habitation as its primary function.(b) Loss of identity as a motor vehicle.(1) A trailer is presumed to be permanently affixed to realty, and therefore an improvement to real property that loses its identity as a motor vehicle, if:(A) it is attached so that it cannot be reasonably reconstructed and made operational for highway use; or(B) it is attached or installed in a manner that meets all governmental standards (if any) for the installation, including zoning regulations, building codes, federal regulations, and other requirements applicable to the land on which it is located; and it is either:(i) installed on land owned by the purchaser, if the purchaser intends to incorporate the trailer as a permanent fixture to the land; or(ii) installed on land leased to the purchaser, if the lease contract provides that improvements to the land become the property of the lessor.(2) A trailer is presumed to be temporarily affixed to the real property, and remains a motor vehicle, if:(A) the owner of the trailer only has permission to use the land but no contractual right to do so; or(B) the owner of the trailer has a contractual right to use the land and also has the right to remove the trailer at any time or upon the termination of the contract.(c) Application of motor vehicle sales and gross rental receipts tax.(1) A retail sale of a trailer is a taxable sale of a motor vehicle. Motor vehicle sales or use tax is due on the total sales price including charges for all accessories attached at the time of sale and for transportation prior to the sale. The rental of a trailer is also a taxable transaction. Gross rental receipts tax is due on the gross receipts charged on the rental of a motor vehicle, including a trailer. Charges for transportation after the sale (transportation from the place of sale to the delivery or set-up site) and charges for installation or set-up after the sale are not subject to tax.(2) A retail sale, use, or rental of a farm machine or a farm trailer is not subject to the motor vehicle sales and use tax or gross rental receipts tax if the primary use of the machine or trailer is for an exempt purpose. For the purposes of this subsection, use for an exempt purpose means use on a farm or ranch in the production of food for human consumption, grass, feed for any form of animal life or other livestock, or agricultural products to be sold in the regular course of business. The use of a farm machine or farm trailer to transport persons or property to or from competitions, shows, or rodeos, or for any other similar use, is not use for an exempt purpose.(3) Farm trailers are also exempt from motor vehicle sales and use tax and gross rental receipts tax if the primary use of the trailer is by the original producers in processing, packing, or marketing their own livestock or agricultural products. Use in processing, packing, or marketing agricultural products by an agricultural cooperative or gin is not exempt, unless the cooperative or gin can prove the cooperative or gin itself is the original producer of all agricultural products being processed, packed, or marketed, and that those functions are performed at a location operated by the cooperative or gin.(4) A retail sale, use, or rental of a timber machine or a timber trailer is not subject to motor vehicle sales and use tax or gross rental receipts tax if the primary use of the timber machine or timber trailer is in timber operations.(5) A retail sale, use, or rental of an oilfield portable unit, as defined in this section, is not subject to motor vehicle sales and use tax or gross rental receipts tax. An oilfield portable unit that would otherwise be subject to motor vehicle sales and use tax, such as a trailer, becomes a taxable motor vehicle any time the unit ceases to be used exclusively as an oilfield portable unit. The tax is the obligation of the owner of the oilfield portable unit based on the owner's current book value of the unit multiplied by the current tax rate cited in Tax Code, §152.021(b). The tax should be remitted directly to the comptroller using Form 14-112, Texas Motor Vehicle Sales/Use Tax Payment. Tax due on diverted units that are held for motor vehicle rental should be submitted on Form 14-117, Texas Motor Vehicle Rental Tax Return. For more information regarding the taxation of oilfield portable units, refer to §3.306 of this title.(d) Claiming exemption.(1) Farmers, ranchers, agricultural producers, and timber operators must register with the comptroller and obtain a Texas Agriculture and Timber Exemption Registration Number. This registration number must be stated on the exemption certificate described in this subsection and on the Application for Texas Certificate of Title/Tax Statement (Form 130-U) filed with the County Tax Assessor-Collector at the time of titling and/or registration. In addition, a person claiming the exemption for a farm or timber machine has the burden to show, at the time the vehicle is titled and/or registered, that the vehicle has been properly adapted or modified to qualify for the exemption.(2) All persons engaged in the business of selling or renting agricultural and timber items that are exempt from the motor vehicle sales and use tax or gross rental receipts tax as described in this section must obtain from all purchasers:(A) A completed Texas Motor Vehicle Tax Exemption Certificate for Agricultural/Timber (Form 14-319) or a completed Motor Vehicle Rental Exemption Certificate (Form 14-305 Back) for qualifying motor vehicle rentals;(B) a copy of the Ag/Timber Registration Number Confirmation letter issued by the comptroller (Form 01-926); or(C) a blanket exemption certificate or the Ag/Timber Registration Number Confirmation letter (Form 01-926) covering all motor vehicle purchases or rentals, provided that the motor vehicles being sold or rented are only of a type or quantity that would not generally be used except on a farm or ranch or in timber operations. When a person sells or rents both taxable motor vehicles and motor vehicles that may qualify for exemption under this section, the seller may either obtain an exemption certificate for each motor vehicle that qualifies for exemption or obtain a blanket certificate at the time the purchaser makes an initial exempt purchase or rental and keep that certificate on file. When subsequent exempt purchases or rentals are made, the invoice must be stamped with the words \"exempt agricultural purposes,\" and the purchaser must sign the invoice.(3) All persons engaged in the business of selling, renting, or leasing agricultural and timber items must retain a copy of the documents described in paragraph (2) of this subsection at their principal place of business for at least four years from the date of the transaction.",
            "sourceNote": "Source Note: The provisions of this §3.72 adopted to be effective December 6, 1996, 21 TexReg 11487; amended to be effective June 20, 2000, 25 TexReg 5913; amended to be effective November 14, 2013, 38 TexReg 7966; amended to be effective December 3, 2017, 42 TexReg 6630."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95281&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "95281",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.73",
                "label": "Qualifying for Fair Market Value Deduction and Determination of Fair Market Value for Replaced Vehicles"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199016&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "199016",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) A person is engaged in the business of selling, renting or leasing motor vehicles if the person regularly and actively sells motor vehicles as a primary function of his business and sells at least five different vehicles acquired for the exclusive purpose of resale and not for use within any given 12-month period, or regularly and actively rents or leases motor vehicles, as defined by the Tax Code, §152.001, as a primary function of his business, and rents or leases at least five different motor vehicles in any given 12-month period.(b) For purposes of computing motor vehicle sales tax, a person who is engaged in the business of selling, renting, or leasing motor vehicles may deduct the fair market value of a replaced motor vehicle that is titled in Texas from the total consideration that is paid for a replacement motor vehicle.(c) Determining the fair market value of a replaced motor vehicle.(1) If the replaced motor vehicle is sold before the purchase of a replacement motor vehicle, then the total consideration that is received from the sale of the replaced motor vehicle is the fair market value of the replaced motor vehicle.(2) If the replaced motor vehicle is not sold before the purchase of the replacement motor vehicle, then the fair market value of the replaced motor vehicle is the title owner's book value of that motor vehicle at the time the motor vehicle is retired from business or personal use, provided that the owner's book value is based on generally accepted accounting principles. If the comptroller determines that the title owner's book value is not based on generally accepted accounting principles, then the fair market value shall be the total purchase price of the vehicle, less depreciation, which is calculated by applying a 2.0% rate per month for the first 36 months following the date of purchase, and then a 1.0% rate per month for the remainder of the depreciable life of the vehicle.(d) Deducting the fair market value of a replaced motor vehicle that is titled to another person.(1) A lessor that is described in paragraph (2) of this subsection may deduct the fair market value of a replaced motor vehicle that has been leased for longer than 180 days and that is titled in Texas to another person, if the replaced motor vehicle is offered for sale and if either one of the following requirements is met:(A) the lessor that wants to claim the fair market value deduction holds at least 80% beneficial ownership interest in the titled owner of the replaced vehicle, or the titled owner of the replaced vehicle holds at least 80% beneficial ownership interest in the lessor; or(B) the lessor that wants to claim the fair market value deduction acquires all of its vehicles exclusively from franchised dealers whose franchisor shares common ownership with the titled owner of the replaced vehicle, or the titled owner of the replaced vehicle acquires all of its vehicles exclusively from franchised dealers whose franchisor shares common ownership with the lessor.(2) The following lessors may qualify for fair market value deduction under paragraph (1) of this subsection:(A) A lessor that holds a lessor license that the Motor Vehicle Board of the Texas Department of Transportation has issued under the Texas Motor Vehicle Commission Code, Article 4413(36);(B) A lessor that is a state or federally chartered financial institution or a regulated subsidiary of a state or federally chartered financial institution;(C) A lessor that holds a franchised dealer license that the Motor Vehicle Board of the Texas Department of Transportation has issued under the Texas Motor Vehicle Commission Code, Article 4413(36), and that is engaged in the business of leasing motor vehicles that the lessor is licensed to sell; or(D) Any other lessor that is specifically not required to obtain a lessor license under Texas Motor Vehicle Commission Code, Article 4413(36), §4.01(a).(3) A person who is in the business of renting motor vehicles for a period not to exceed 180 days under a single agreement and who holds a motor vehicle rental permit that is issued under Tax Code, §152.065, may deduct the fair market value of a replaced motor vehicle that is titled in Texas to another person if the replaced motor vehicle is offered for sale and if either one of the following requirements is met:(A) the renter that wants to claim the fair market value deduction holds at least 80% beneficial ownership interest in the titled owner of the replaced vehicle, or the titled owner of the replaced vehicle holds at least 80% beneficial ownership interest in the renter; or(B) the renter that wants to claim the fair market value deduction acquires all of its vehicles exclusively from franchised dealers whose franchisor shares common ownership with the titled owner of the replaced vehicle, or the titled owner of the replaced vehicle acquires all of its vehicles exclusively from franchised dealers whose franchisor shares common ownership with the renter.(4) A lessor or rental company may not use the fair market value of a replaced motor vehicle to reduce total consideration paid for a replacement motor vehicle if the fair market value of that vehicle has been previously used by either the lessor or rental company or other entity.",
            "sourceNote": "Source Note: The provisions of this §3.73 adopted to be effective December 6, 1996, 21 TexReg 11488; amended to be effective July 10, 2002, 27 TexReg 6040."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199016&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "199016",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.74",
                "label": "Seller Responsibility"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148397&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
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                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Application for Texas Title and/or Registration--Form 130-U, its electronic equivalent, or a successor form, promulgated jointly by the comptroller and the Texas Department of Motor Vehicles, used to apply for a motor vehicle title and registration and to pay any motor vehicle sales or use tax due. The Application for Texas Title and/or Registration is available at comptroller.texas.gov.(2) Cash discount--An actual reduction of the price required to be paid by the purchaser to the dealer. The term includes, but is not limited to, separately stated manufacturers' rebates, dealers' rebates, and cash rebates passed directly to the purchaser at the time of sale, and discounts allowed for payment within a specified time.(3) Date of sale--The day the purchaser takes possession of a motor vehicle unless otherwise specified by written agreement. (4) Dealer--A person who holds a general distinguishing number or operates under similar regulatory requirements of another state or jurisdiction. The term includes a franchised motor vehicle dealer, a nonfranchised motor vehicle dealer, an independent mobility motor vehicle dealer, and a wholesale motor vehicle dealer. The term does not include a salvage vehicle dealer licensed under Occupations Code, Chapter 2302 (Salvage Vehicle Dealers).(5) Distributor--A person, other than a manufacturer, who:(A) distributes or sells new motor vehicles to a franchised motor vehicle dealer; or(B) enters into franchise agreements with franchised motor vehicle dealers, on behalf of the manufacturer.(6) Extended warranty or service contract--A policy sold to the purchaser of a motor vehicle for an additional amount, the provisions of which become effective after the manufacturer's warranty expires.(7) Franchised motor vehicle dealer--A person who:(A) holds a franchised motor vehicle license issued under Occupations Code, Chapter 2301 (Sale or Lease of Motor Vehicles); and(B) is engaged in the business of buying, selling, or exchanging new motor vehicles at an established and permanent place of business under a franchise agreement with a manufacturer or distributor; or(C) is licensed under similar regulatory requirements of another state or jurisdiction.(8) General distinguishing number--A dealer license issued by the Texas Department of Motor Vehicles under Transportation Code, Chapter 503 (Dealer's and Manufacturer's Vehicle License Plates).(9) Independent mobility motor vehicle dealer--A dealer who is not a franchised motor vehicle dealer who: (A) holds a general distinguishing number issued by the Texas Department of Motor Vehicles; (B) holds a converter's license issued under Occupations Code, Chapter 2301; (C) is engaged in the business of buying, selling, or exchanging mobility motor vehicles defined by Occupations Code, §2301.002(20-a) (Definitions) and servicing or repairing the devices installed on mobility motor vehicles at an established and permanent place of business in Texas; and (D) is certified by the manufacturer of each mobility device that the dealer installs, if the manufacturer offers that certification. (10) Lease--An agreement other than a rental, by an owner of a motor vehicle to give for longer than 180 days exclusive use of a motor vehicle to another for consideration. For more information on motor vehicle leases, see §3.70 of this title (relating to Motor Vehicle Leases and Sales).(11) Manufacturer--A person who manufactures or assembles new motor vehicles and holds a manufacturer's license issued under Occupations Code, §2301.259 (Application for Manufacturer's License). The term does not include a person operating only as an ambulance manufacturer, chassis manufacturer, fire-fighting vehicle manufacturer, motor home manufacturer, or a converter as those terms are defined in Occupations Code, §2301.002 (Definitions).(12) Motor vehicle--A vehicle described by Tax Code, §152.001(3) (Definitions). In general, a motor vehicle includes a self-propelled vehicle designed to transport persons or property upon the public highway and a vehicle designed to be towed by a self-propelled vehicle while carrying property. The term includes, but is not limited to: automobiles; buses; vans; motor homes; motorcycles; trucks and truck tractors; truck cab and chassis; semitrailers; trailers and travel trailers, as defined by §3.72 of this title (relating to Trailers, Farm Machines, and Timber Machines); trailers sold unassembled in a kit; dollies; jeeps; stingers; auxiliary axles; converter gears; and park models, as defined by §3.481 of this title (relating to Imposition and Collection of Manufactured Housing Tax). The term does not include a vehicle to which the certificate of title has been surrendered in exchange for a salvage vehicle title or a nonrepairable vehicle title issued under Transportation Code, Chapter 501 (Certificate of Title Act).(13) New motor vehicle--A motor vehicle that, without regard to mileage, has not been the subject of a retail tax. (14) Nonfranchised dealer--A person who holds an independent motor vehicle dealer's general distinguishing number, an independent mobility motor vehicle dealer's general distinguishing number, or a wholesale motor vehicle dealer's general distinguishing number issued by the Texas Department of Motor Vehicles.(15) Related finance company--A person in which at least 80% of the ownership is identical to the ownership of a dealer, as defined by Transportation Code, §503.001 (Definitions).(16) Rental--An agreement:(A) by the owner of a motor vehicle to give exclusive use of that motor vehicle to another for consideration, for a period of time not to exceed 180 days under any one agreement;(B) by an original manufacturer of a motor vehicle to give exclusive use of the motor vehicle to another for consideration; or(C) by the owner of a motor vehicle to give exclusive use of the motor vehicle to another for re-rental purposes, regardless of the period of time covered by the agreement.(17) Retail sale--A sale of a motor vehicle other than: (A) a sale for resale; or (B) a sale for lease, meaning a sale to a franchised motor vehicle dealer of a new motor vehicle removed from the franchised motor vehicle dealer's inventory for the purpose of entering into a contract to lease the motor vehicle to another person if, within seven days of executing the lease contract, the franchised motor vehicle dealer transfers title of the motor vehicle and assigns the lease contract to the lessor of the motor vehicle. If the title is not transferred and the lease assigned within seven calendar days, the dealer's purchase and use will be presumed to be a retail purchase and taxable. The presumption may be overcome by showing evidence of intent.(18) Sale for resale--The sale of a motor vehicle to a purchaser who acquires the motor vehicle either for the exclusive purpose of sale in a manner provided by law, or for purposes allowed by the Texas Department of Motor Vehicles under Transportation Code, Chapter 503, when the purchaser is:(A) a distributor;(B) a manufacturer;(C) a franchised motor vehicle dealer who is authorized by law and by a franchise agreement to offer a motor vehicle for sale as a new motor vehicle; or(D) a nonfranchised motor vehicle dealer who is authorized by law to offer a motor vehicle for sale as a used motor vehicle.(E) The following are examples of uses allowed under Transportation Code, Chapter 503, that do not disqualify a purchase as a sale for resale:(i) when a dealer uses the motor vehicle on public highways with a metal dealer's plate issued under Transportation Code, §503.061 (Dealer's License Plates);(ii) when a manufacturer or distributor removes a motor vehicle from its inventory and tests the motor vehicle on public highways with a manufacturer's plate issued under Transportation Code, §503.064 (Manufacturer's License Plates); and(iii) when a manufacturer or distributor loans the motor vehicle to a consumer for a purpose described by Occupations Code, §2301.605 (Rebuttable Presumption--Reasonable Number of Attempts).(19) Seller-financed sale--A retail sale of a motor vehicle by a dealer in which the selling dealer collects all or part of the total consideration in periodic payments and retains a lien on the motor vehicle until all payments have been received. The term does not include a: (A) retail sale of a motor vehicle in which a person other than the seller provides the total consideration for the sale and retains a lien on the motor vehicle as collateral; (B) lease; or (C) rental. (20) Seller-financed sales tax report--The Texas Motor Vehicle Seller-Financed Sales Tax Report, Form 14-117, its electronic equivalent, or a successor form, promulgated by the comptroller. The seller-financed sales tax report is available at comptroller.texas.gov.(21) Texas Registration for Motor Vehicle Related Finance Company--Form AP-222, its electronic equivalent, or a successor form, promulgated by the comptroller, used to apply for a related finance company registration. Texas Registration for Motor Vehicle Related Finance Company is available at comptroller.texas.gov.(22) Total consideration--(A) The amount paid or to be paid for a motor vehicle and its accessories attached on or before the sale, without deducting:(i) the cost of the motor vehicle;(ii) the cost of material, labor or service, interest paid, loss, or any other expense;(iii) the cost of transportation of the motor vehicle before its sale; or(iv) the amount of manufacturers' or importers' excise tax imposed on the motor vehicle by the United States.(B) The amount paid or to be paid includes anything of monetary value, such as cash or the equivalent; a book entry reflecting cash received or paid; the forgiveness or assumption of debt; book entries reflecting accounts receivable or accounts payable for an item; the performance of a service; or real or tangible personal property.  (C) The term does not include: (i) separately stated cash discounts; (ii) a full cash or credit refund to a customer of the sales price of, meaning the amount paid for, a motor vehicle that the customer returns to the seller;(iii) the amount charged for labor or service rendered in installing, applying, remodeling, or repairing the motor vehicle sold;(iv) separately stated finance or interest charges on credit extended under a conditional sale or other deferred payment contract;(v) the value of a motor vehicle taken by a seller as all or a part of the consideration for sale of another motor vehicle;  (vi) the fair market value of a motor vehicle titled in Texas in the name of a dealer or a person who is in the business of renting or leasing motor vehicles, as provided by §3.73 of this title (relating to Qualifying for Fair Market Value Deduction and Determination of Fair Market Value for Replaced Vehicles);(vii) a charge for transportation of the motor vehicle after the sale of the motor vehicle;(viii) motor vehicle inventory tax, separately stated charges to prepare and process documents related to the transfer of a motor vehicle, fees to register and/or apply for a certificate of title, fees or charges prescribed by law in connection with the sale or inspection of the motor vehicle, and any additional fees charged by the deputy of a county tax assessor-collector; or(ix) separately stated charges for the sale of an extended warranty, maintenance agreement, service contract, insurance, automobile club membership, roadside assistance program, or a debt cancellation agreement.(23) Wholesale motor vehicle dealer--A dealer who sells motor vehicles only to persons who hold a dealer's general distinguishing number.(b) Motor vehicle seller-financed sales tax permit. Every dealer making seller-financed sales must apply to the comptroller and obtain a Motor Vehicle Seller-Financed Sales Tax Permit. (1) To obtain a permit, the dealer must complete a Texas Application for Motor Vehicle Seller-Financed Sales Tax Permit, Form AP-169, its electronic equivalent, or its successor, promulgated by the comptroller. The application is available at comptroller.texas.gov.  (2) A separate permit is not required for each location. The comptroller issues one Motor Vehicle Seller-Financed Sales Tax Permit to each dealer making seller-financed sales, regardless of the number of locations or dealerships the dealer operates.(3) Each dealer (corporation, partnership, sole proprietor, etc.) must apply for its own permit. The permit cannot be transferred from one dealer to another. (c) Collection and remittance of motor vehicle tax. (1) Seller-financed sales. (A) A dealer who makes a seller-financed sale must apply to the appropriate county tax assessor-collector to title and register the motor vehicle by filing an Application for Texas Title and/or Registration no later than the 45th day after the date the motor vehicle is delivered to the purchaser. (B) A dealer making a seller-financed sale must also:(i) collect and remit motor vehicle tax on the total consideration for the motor vehicle at the time the Application for Texas Title and/or Registration is presented to the county tax assessor-collector; or (ii) collect and remit the motor vehicle tax to the comptroller as the payments are received, as explained in subsection (d) of this section. A dealer making a seller-financed sale must include its 11-digit Seller-Financed Sales Tax Permit Number on the Application for Texas Title and/or Registration if the dealer intends to remit the motor vehicle tax on a report to the comptroller instead of remitting the motor vehicle tax at the time the Application for Texas Title and/or Registration is presented to the county tax assessor-collector. (2) Retail sales other than seller-financed sales. (A) A dealer must collect motor vehicle tax on each retail sale, unless an exemption applies. The tax is imposed on the total consideration for the motor vehicle. (B) The dealer must remit the motor vehicle tax due to the appropriate county tax assessor-collector at the time the dealer submits the Application for Texas Title and/or Registration. Motor vehicle tax is due within 30 calendar days after the date of the sale. (C) A dealer is not required to collect motor vehicle tax on the sale of a motor vehicle with a gross weight in excess of 11,000 pounds. If the dealer does not collect the motor vehicle tax, the dealer must provide the purchaser with an Application for Texas Title and/or Registration, signed by both the dealer and purchaser, and all other documents required by the Texas Department of Motor Vehicles to apply for title or register the motor vehicle. The purchaser must remit motor vehicle tax to the county tax assessor-collector within 30 calendar days after the date of sale.(D) If a dealer sells a commercial motor vehicle that is required to be equipped with a body or other necessary equipment before the motor vehicle can be registered under the Transportation Code, then the dealer must remit the motor vehicle tax within 30 calendar days after the date on which the motor vehicle becomes eligible for registration. (3) The dealer must retain copies of the documentation provided to the purchaser and all other records pertaining to the sale. The specific records each dealer is required to keep are listed in Tax Code, §152.063 (Records) and §152.0635 (Records of Certain Sellers). The dealer must keep the records for a minimum of four years from the date on which the record is made, and throughout any period in which any tax, penalty, or interest may be assessed, collected, or refunded by the comptroller or in which an administrative hearing or judicial proceeding is pending, unless the comptroller authorizes in writing a shorter retention period.(4) The motor vehicle tax due is 6.25% of the total consideration. Except as provided in paragraph (2)(C) of this subsection, the motor vehicle tax is a debt of the purchaser to the dealer until paid. Unpaid motor vehicle tax is recoverable by the dealer in the same manner as the total consideration for the motor vehicle, if unpaid, would be recoverable. The comptroller may proceed against either the dealer or purchaser, or both, until all applicable motor vehicle tax, penalty, and interest due has been paid.(d) Remittance of motor vehicle tax on seller-financed sales as payments are received. (1) Each dealer making seller-financed sales who collects motor vehicle tax as the payments are received from the purchaser must remit the motor vehicle tax collected to the comptroller on or before the 20th day of the month following each reporting period. The dealer must file a consolidated report with the comptroller, together with the motor vehicle tax collected for seller-financed sales made at all locations owned by the dealer. (2) The dealer must file a consolidated seller-financed sales tax report for seller-financed sales made at all locations owned by the dealer, together with the motor vehicle tax collected. The report must be signed by the dealer or the dealer's authorized agent. The fact that the dealer does not receive the form or does not receive the correct form from the comptroller for the filing of the report does not relieve the dealer of the responsibility of filing a report and remitting motor vehicle tax. The report is available at comptroller.texas.gov.  (3) A dealer making seller-financed sales may file reports and remit motor vehicle tax electronically, such as through Webfile at comptroller.texas.gov. Dealers who paid $100,000 or more in motor vehicle tax to the comptroller during the preceding fiscal year must remit motor vehicle tax electronically, as provided by Tax Code, §111.0625 (Electronic Transfer of Certain Payments). Dealers who paid $50,000 or more to the comptroller during the preceding fiscal year must file report data electronically, as provided by Tax Code, §111.0626 (Electronic Filing of Certain Reports). For more information on electronic filing and payments, see §3.9 of this title (relating to Electronic Filing of Returns and Reports; Electronic Transfer of Certain Payments by Certain Taxpayers).(4) A dealer completing a seller-financed sales tax report must allocate the motor vehicle tax paid on a motor vehicle to the county in which the dealer submitted the Application for Texas Title and/or Registration for the vehicle. (5) A dealer who remits less than $1,500 in motor vehicle tax per quarter may file reports quarterly. The quarterly reporting periods end on March 31st, June 30th, September 30th, and December 31st. (6) A dealer who remits $1,500 or more in motor vehicle tax per quarter must file monthly reports, except a dealer making seller-financed sales who chooses to prepay the motor vehicle tax, as provided in paragraph (7) of this subsection. (7) Discounts and prepayments of the motor vehicle tax. (A) Each dealer making seller-financed sales may claim a discount for timely filing a seller-financed sales tax report and remitting motor vehicle tax due as reimbursement for the expense of collecting and remitting the motor vehicle tax. The discount is equal to 0.5% of the amount of the motor vehicle tax due and may be claimed on the report for each reporting period. The discount is computed on the amount of motor vehicle tax timely reported and remitted for each reporting period.(B) A dealer making seller-financed sales who makes a timely prepayment of at least 90% of the total amount of motor vehicle tax currently due, or an amount equal to the actual motor vehicle tax liability due and paid for the same reporting period of the immediately preceding year, may retain an additional 1.25% of the amount of motor vehicle tax due. (i) The monthly prepayment must be made on or before the 15th day of the month for which the tax is due. (ii) The quarterly prepayment must be made on or before the 15th day of the second month of the quarter for which the tax is due. (iii) The dealer must file a seller-financed sales tax report showing the actual liability and remit any amount due in excess of the prepayment on or before the 20th day of the month following the quarter or month for which a prepayment was made. (iv) If there is an additional amount due when the seller-financed sales tax report is filed, the dealer may claim the 0.5% discount for timely filing, including on the additional amount of motor vehicle tax due, provided that both the seller-financed sales tax report and the additional amount of motor vehicle tax due are filed timely. If the prepayment exceeded the actual liability, the dealer will be mailed a notice of overpayment or a refund warrant. (v) A remittance that is less than 90% of the total amount of motor vehicle tax currently due, or less than the amount of actual motor vehicle tax due and paid for the same reporting period of the immediately preceding year, is not a valid prepayment and the 1.25% discount will not be allowed.(8) Penalties and interest.(A) If a dealer does not file a seller-financed sales tax report together with payment on or before the due date, the dealer forfeits all discounts and incurs a mandatory 5.0% penalty. After the first 30 days delinquency, an additional mandatory penalty of 5.0% is assessed against the dealer. After the first 60 days delinquency, interest begins to accrue at the prime rate, as published in the Wall Street Journal  on the first business day of each calendar year, plus 1.0%. (B) A dealer who fails to timely file a seller-financed sales tax report when due must pay an additional penalty of $50. The penalty is due regardless of whether motor vehicle taxes are due for the reporting period.(e) General principles of seller-financed sales. (1) The total downpayment is subject to motor vehicle tax unless the payment is itemized to indicate nontaxable charges.(2) If the finance agreement bears interest, it is presumed that interest accrues and is paid by the purchaser on a straight line basis.(3) A transaction is considered paid in full when the purchaser of a seller-financed motor vehicle trades-in that motor vehicle to the dealer as consideration for the purchase of another motor vehicle from the same dealer. The remainder of motor vehicle tax owed on the initial sale must be reported on the first seller-financed sales tax report due no later than the 20th day of the month following the end of the reporting period in which the trade-in occurred. (4) Motor vehicle tax remitted to the county tax assessor-collector at the time the Application for Texas Title and/or Registration is submitted is considered to satisfy the tax liability for that transaction and no refund is available if the purchaser fails to satisfy their total liability to the dealer making the seller-financed sale. (5) If a dealer making a seller-financed sale fails to submit the Application for Texas Title and/or Registration to apply for title and registration within 60 days from the date of sale, the dealer becomes liable for all unremitted motor vehicle tax based on the total consideration for the motor vehicle. The dealer must remit all unremitted motor vehicle tax on the first seller-financed sales tax report due no later than the 20th day of the month following the end of the reporting period in which the expiration of the 60 days occurred. (6) Unless excluded from acceleration of motor vehicle tax by paragraph (7) of this subsection, if the dealer sells, factors, assigns, or otherwise transfers the right to receive payments on a seller-financed sale, the dealer is liable for all unremitted motor vehicle tax due on the total consideration for the motor vehicle. The dealer must report and remit any motor vehicle tax due on the seller-financed sales tax report due no later than then 20th day of the month following the end of the reporting period in which the transfer of the right to receive payments occurred. The dealer may not take a deduction in the amount of motor vehicle tax due, even if the dealer sells the right to receive payments at a discount or grants the purchaser of the notes a right of recourse. (7) Motor vehicle tax remittance does not accelerate if a dealer sells, factors, assigns, or otherwise transfers the right to receive payments on a seller-financed sale to a person registered with the comptroller's office as a related finance company or when the dealer grants a security interest in a purchaser's account, but retains custody and control of the account and the right to receive payments in the absence of a default under the security agreement.(8) If the dealer remits the motor vehicle tax due in accordance with paragraph (6) of this subsection, and the motor vehicle purchaser fails to make payments to the dealer's transferee or assignee, then no bad debt deduction for any amount that the transferee or assignee determines to be uncollectible on the purchaser's account may be taken against any motor vehicle tax that the transferee or assignee may owe. (f) Registration of related finance companies.(1) To register with the comptroller's office as a related finance company, a person must complete a Texas Registration for Motor Vehicle Related Finance Company.(2) The registration remains in effect until canceled by the registration holder or the comptroller.(g) Resale certificates and exemption documentation. (1) A seller may accept a Texas Motor Vehicle Resale Certificate, Form 14-313, its electronic equivalent, or its successor, promulgated by the comptroller only from a dealer as defined in this section. A motor vehicle resale certificate for the sale of a new motor vehicle purchased for resale may only be accepted from a franchised motor vehicle dealer. To be valid, the motor vehicle resale certificate must show the dealer license issued under Transportation Code, Chapter 503. The resale certificate is available at comptroller.texas.gov. See §3.95 of this title (relating to Motor Vehicle Sales Tax Resale Certificate; Sales for Resale). (2) A seller may accept a properly completed Texas Motor Vehicle Sales Tax Exemption Certificate--For Vehicles Taken Out of State, Form 14-312, its electronic equivalent, or its successor, promulgated by the comptroller, in lieu of collecting tax on motor vehicles that will be removed from this state without being operated other than to remove the motor vehicle from this state. The exemption certificate is available at comptroller.texas.gov. See §3.90 of this title (relating to Motor Vehicles Purchased for Use Outside of Texas). (3) A purchaser claiming an exemption on the purchase of a motor vehicle that qualifies for an exemption under Tax Code, Chapter 152, Subchapter E, must indicate the exemption claimed on the Application for Texas Title and/or Registration at the time of purchase. The Application for Texas Title and/or Registration noting the exemption claimed is submitted to the county tax assessor-collector in lieu of tax. (h) Unremitted tax paid to seller, transfer of certificate of title. (1) A county tax assessor-collector may accept an Application for Texas Title and/or Registration without the payment of motor vehicle tax from a purchaser who paid the motor vehicle tax to a dealer who failed to remit the motor vehicle tax as described in subsection (c) of this section. (2) The purchaser must present acceptable evidence of motor vehicle tax payment at the time an Application for Texas Title and/or Registration is submitted to the county tax assessor-collector. Acceptable evidence includes, but is not limited to, a sales contract or bill of sale that identifies the dealer and the amount of motor vehicle tax paid. (3) The Application for Texas Title and/or Registration must contain the dealer's Motor Vehicle Seller-Financed Sales Tax Permit number (if applicable and available) and must indicate that motor vehicle tax has been paid to the dealer and no additional motor vehicle tax is due from the purchaser. (4) The county tax assessor-collector shall notify the comptroller of the dealer's failure to remit the motor vehicle tax through the automated Registration-Title System (RTS) and include the document indicating motor vehicle tax paid to the dealer in the title application material. (i) Prohibited advertising. A dealer may not directly or indirectly advertise, hold out or state to a customer or the public that he will assume, absorb or refund a part of the motor vehicle tax imposed on the sale of a motor vehicle, or will not add tax to the sales price.",
            "sourceNote": "Source Note: The provisions of this §3.74 adopted to be effective December 9, 1998, 23 TexReg 12449; amended to be effective April 17, 2000, 25 TexReg 3289; amended to be effective April 2, 2002, 27 TexReg 2535; amended to be effective May 1, 2005, 30 TexReg 2401; amended to be effective May 18, 2017, 42 TexReg 2564; amended to be effective April 19, 2020, 45 TexReg 2420."
        },
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            "currentRecordId": "148397",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.75",
                "label": "Refunds, Payments Under Protest, Payment Instruments and Dishonored Payments"
            },
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                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Dealer--A motor vehicle seller licensed by the Texas Department of Transportation in accordance with Occupations Code, Chapter 2301, or Transportation Code, Chapter 503, to sell motor vehicles.(2) Rental Company--A motor vehicle rental provider permitted under Tax Code, §152.065.(3) Seller-Financed Sales--A retail sale of a motor vehicle by a dealer in which the seller collects all or part of the total consideration in periodic payments and retains a lien on the motor vehicle until all payments have been received.(b) Refunds.(1) Tax paid to state. Any person, or the person's attorney, assignee, or other successor may request from the comptroller a refund of any tax that the person directly paid and remitted to the state but that was not due.(A) The refund request must be made within:(i) four years from the date on which the tax was due and payable; or(ii) six months after a determination for the periods for which the refund is claimed becomes final; or(iii) six months after any determination would have become final had payment not been made before the due date.(iv) a claim for refund of an amount paid pursuant to a deficiency determination is timely for all transactions included in the deficiency determination if made in accordance with clauses (ii) or (iii) of this subparagraph. A claim for refund for items not included in a deficiency determination must be made in accordance with clause (i) of this subparagraph.(B) Before the expiration of the statute of limitations, the comptroller and a taxpayer may agree in writing to an extension of the statute of limitations.(C) An extension applies only to the periods specifically mentioned in the agreement. Any assessment or refund request pertaining to periods for which limitations have been extended must be made prior to the expiration date of the agreement. Following expiration of the agreement, the statute of limitations applies to subsequent assessments and refund requests as if no extension had been authorized.(D) The request for a refund must be made in writing and must state fully and in detail the specific grounds upon which the claim is founded. The request must also indicate the period for which the claimed overpayment was made. The claim must be submitted within the applicable limitation period as provided in subparagraph (A) of this paragraph, and must include supporting documentation.(E) The comptroller may require a person to submit additional information to verify the refund claim. The person must show to the satisfaction of the comptroller that the refund is due and make available to the comptroller any documentation that the comptroller requires to process the refund.(F) In determining the statute of limitations for filing a refund claim, the time during which an administrative proceeding is pending before the comptroller for the same period is not counted. A taxpayer may not file a claim for the same transaction and for the same time period as a refund claim previously denied.(G) Failure to file a claim within the limitation prescribed by this section constitutes a waiver of any demand against the state on account of the overpayment.(2) Tax paid to county tax assessor-collector. Tax paid to the county tax assessor-collector should be recovered in the same manner as prescribed in paragraph (1) of this subsection. The county tax assessor-collector by having remitted tax collected and submitting record of each transaction to the comptroller, authorizes the comptroller to accept refund requests directly from the claimant, to determine the eligibility of the refund and to make eligible refunds. The written refund request should include a copy of the receipt issued by the county tax assessor-collector for payment of taxes and the taxpayer's social security number, federal employers identification number, or comptroller assigned tax permit number.(3) Tax paid to a dealer on sales other than seller-financed sales where the dealer is required to remit the tax to the county tax assessor-collector pursuant to Tax Code, §152.0411. Tax paid to dealer should be recovered in the same manner as prescribed in paragraph (1) of this subsection. The county tax assessor-collector by having accepted and remitted the tax collected, and submitting record of each transaction to the comptroller, authorizes the comptroller to accept refund requests directly from the claimant, to determine the eligibility of the refund and to make eligible refunds. The written refund request should include a copy of the receipt issued by the county tax assessor-collector for payment of taxes and the taxpayer's social security number, federal employers identification number, or comptroller assigned tax permit number.(4) Tax paid to a dealer on seller-finance sales. A person who remits tax to a dealer may not request from the comptroller a refund of any tax that the person has remitted to a seller but contends was not due. The tax must be recovered from the seller.(A) A written request for a refund must be directed to the dealer and must state the specific grounds upon which the claim is founded. The written request should be retained by the dealer to document the reason tax was refunded.(B) After the dealer has refunded or, with the purchaser's written consent, credited the tax to the account of the purchaser, the dealer may then seek reimbursement from the state in accordance with the procedures outlined in paragraph (1) of this subsection, or take a credit on the dealer's next return in the amount refunded or credited to the account of the purchaser.(5) Tax paid to a rental company. A person who remits tax to a rental company may not request from the comptroller a refund of any tax that the person has remitted to a rental company but contends was not due. The tax must be recovered from the rental company.(A) A written request for a refund must be directed to the rental company and must state the specific grounds upon which the claim is founded. The written request should be retained by the rental company to document the reason tax was refunded.(B) After the rental company has refunded or, with the purchaser's written consent, credited the tax to the account of the purchaser, the rental company may then seek reimbursement from the state in accordance with the procedures outlined in paragraph (1) of this subsection, or take a credit on the rental company's next return in the amount refunded or credited to the account of the purchaser.(6) Tax refund made pursuant to Occupations Code, Chapter 2301 (\"Lemon Law\"). A manufacturer or distributor who repurchased a vehicle under Occupations Code, Chapter 2301 or similar terms, and who refunded tax to the purchaser may request a refund in the same manner as prescribed in paragraph (1) of this subsection.(A) The refundable amount is limited to tax computed on the dollar amount refunded. A deduction will be made for any usage charges.(B) If the tax was initially reduced by a deduction allowed under Tax Code, §152.002(b), any refund will be made on a similar proportional basis.(C) The manufacturer or distributor must obtain an assignment from the purchaser.(c) Payments under protest.(1) Payment made to a county tax assessor-collector.(A) If, pursuant to the authority of Tax Code, §112.051, motor vehicle sales and use taxes are paid under protest to a county tax assessor-collector, the protest payment to the tax assessor-collector must be accompanied by a written letter of protest that sets out in detail each and every ground or reason why the taxpayer contends that the assessment is unlawful or unauthorized. Immediately upon receipt of the protest payment and written protest, a copy of the protest letter must be sent to the comptroller by the tax assessor-collector together with a copy of the tax receipt showing that tax was paid. If the taxpayer fails to submit to the county tax assessor-collector the letter of protest at the time of payment, the tax should be remitted normally by the tax assessor-collector.(B) The payment of taxes under protest to a county tax assessor-collector is limited to those taxes that the tax assessor-collector is authorized to receive.(C) It is the duty of the county tax assessor-collector to transmit the full amount of all motor vehicle sales and use taxes paid under protest to the comptroller. The tax assessor-collector shall transmit these protest payments to the comptroller daily and the tax assessor-collector must inform the comptroller in writing that such taxes were paid under protest.(2) Payment made to the comptroller. A written letter of protest that sets out fully and in detail each and every ground or reason why the taxpayer contends that the assessment is unlawful or unauthorized must accompany the payment. If the payment and letter of protest do not accompany one another, the payment will be deemed not to have been made under protest.(d) Payment Instruments.(1) The comptroller authorizes money orders, cash, cashier's checks, and certified checks as valid methods of payment of motor vehicle sales and use taxes to a county tax assessor-collector. If a county tax assessor-collector accepts personal checks as payment instruments, the county tax assessor-collector is relieved of liability only if the county tax assessor-collector requires at least the following identification:(A) personal data including name, home address, home telephone number, name and location of employer, and telephone number of employer;(B) driver's license number of the person signing the check; and(C) license plate number of motor vehicle(s) owned by person signing the check.(2) if a county tax assessor-collector accepts a personal check in payment of motor vehicle sales and use taxes, and the personal check is not honored, the county tax assessor-collector may request the assistance of the comptroller in collecting the monies due if, within the statute of limitations set forth in subsection (b)(1) of this section, the county tax assessor-collector certifies on a form promulgated by the comptroller:(A) the identification information required by this section;(B) two dates upon which the county tax assessor-collector sent the check to the appropriate bank;(C) the date upon which the sheriff attempted to seize the license plates if the fees for the plates were included in the check; and(D) the date(s) the county tax assessor-collector took other collection action, such as filing a complaint with the county attorney or hiring a collection agency.(e) Voided Receipt Because of Dishonored Payment. A county tax assessor-collector has no authority to void a motor vehicle sales tax receipt and not report the tax payment when the check given in payment of the tax is returned unpaid.",
            "sourceNote": "Source Note: The provisions of this §3.75 adopted to be effective December 6, 1996, 21 TexReg 11489; amended to be effective September 30, 2010, 35 TexReg 8762."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19729&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19729",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.76",
                "label": "Driver Education Cars"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3801&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "3801",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A motor vehicle dealer may take title in the dealership name to a motor vehicle tax-free if:(1) he loans the motor vehicle free of charge to a public school for use in an approved standard driver training course; and(2) the public school applies for exempt license plates at the time of registration.(b) This exemption is not applicable to a loan of a motor vehicle to a private or parochial school or a nonprofit organization.",
            "sourceNote": "Source Note: The provisions of this §3.76 adopted to be effective January 1, 1976; amended to be effective June 27, 1979, 4 TexReg 2141."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3801&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "3801",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.78",
                "label": "Motor Vehicle Rentals"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=145579&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "145579",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Gross rental receipts--Any amount of money or the value of property received by or due the owner of a motor vehicle as consideration for the rental of the vehicle to another including a reimbursement charge for property tax, title fee, and registration fee expenses. Gross rental receipts does not include and tax is not due on:(A) a separately stated fee or charge for insurance;(B) an assessment for damage to the vehicle which occurred during a rental agreement period;(C) separately stated receipts for motor fuel sold by the owner of the vehicle;(D) discounts; or(E) any amount of gross rental receipts tax collected by or due the owner of the vehicle.(2) Owner--The person named in the Texas certificate of title of a motor vehicle as the owner of the vehicle, or a person having exclusive use of a motor vehicle under a rental agreement and who holds the motor vehicle for re-rental.(3) Rental or renting--An agreement whereby:(A) the owner of a motor vehicle gives exclusive use of the vehicle to another for a consideration and for a period of time not to exceed 180 days under any one agreement;(B) an original manufacturer of motor vehicles gives exclusive use of a motor vehicle to another for a consideration; or(C) the owner of a motor vehicle gives exclusive use of the vehicle to another for re-rental purposes, regardless of the period of time covered by the agreement.(4) Rented in Texas--A motor vehicle is \"rented in Texas\" when the vehicle is delivered to the renter in Texas regardless of the location of the rental agency. A motor vehicle is not \"rented in Texas\" if the vehicle is delivered to the renter outside the State of Texas or to a common carrier for transportation to the renter outside of Texas.(5) Retailer--Any owner of a motor vehicle who is responsible for collecting and reporting motor vehicle gross rental receipts tax pursuant to the Tax Code, §152.045.(b) Application of tax.(1) When a motor vehicle is rented in Texas, all of the rental receipts are subject to the Texas motor vehicle gross rental receipts tax. If a person who rents a motor vehicle in Texas subsequently moves the vehicle to another state and pays a legitimately imposed rental receipts tax or sales and use tax, he may claim a credit in the amount of the tax paid to the other state against any Texas motor vehicle gross rental receipts tax due after payment of the tax to the other state.(2) If a motor vehicle is not rented in Texas, the gross rental receipts from the rental are not subject to the Texas motor vehicle gross rental receipts tax.(c) Bad debt.(1) Tax not due on bad debt.(A) A retailer may take a deduction for rental receipts that are determined to be uncollectible during the same report period in which the rental was made if:(i) the uncollectible amount of gross rental receipts is entered on the retailer's books as a bad debt; and(ii) the bad debt will be claimed as a deduction for federal income tax purposes.(B) A retailer who has previously paid motor vehicle gross rental receipts tax may take a deduction or seek a credit for the tax paid on the gross rental receipts that are determined uncollectible if the uncollectible amount is entered on the retailer's books as a bad debt and claimed as a deduction for federal income tax purposes. (i) The deduction must be taken or credit claimed for the period in which the amount was determined uncollectible.(ii) If the uncollectible amount includes taxable and nontaxable receipts as defined in subsection (a) of this section, a deduction or credit may be claimed for only the amount that represents taxable receipts.(iii) To determine the amount that represents taxable receipts, all payments and credits may be applied proportionally against the fees the customer agreed to pay.(C) If a retailer subsequently collects all or any part of a taxable amount previously determined uncollectible and charged off for income tax purposes as a bad debt, the taxable amount collected, as defined in subparagraph (B)(iii) of this paragraph, must be included in gross rental receipts on the return filed after such collection and the proper amount of tax must be remitted.(2) Records required. To support a claim for a bad debt deduction or credit, a retailer must maintain complete records which document:(A) the vehicle identification number, the year, and the model of the vehicle or vehicles involved;(B) the date of the rental for which a deduction or credit is claimed;(C) the name and address of the customer;(D) the amount the customer agreed to pay;(E) any amount on which the retailer has already paid tax;(F) any payment or other credit applied to the account; and(G) evidence that the amount determined to be uncollectible has been legally charged off as a bad debt for federal income tax purposes.(3) Credit. Credit does not qualify as a bad debt. When a retailer extends credit to a customer making a rental, the amount of credit so extended may not be labeled as a bad debt merely for the purpose of delaying the payment of tax.(d) Direct payment qualifications and procedures.(1) A holder of a motor vehicle rental tax direct payment permit may give an exemption certificate in lieu of paying the taxes for motor vehicles which are rented by the permit holder solely for its own use. A limited sales, excise, and use tax direct payment blanket exemption certificate may not be issued for the rental of motor vehicles. (2) An applicant for a motor vehicle rental tax direct payment permit must comply with the following:(A) The applicant must be a responsible person paying annually at least $800,000 in taxable motor vehicle rentals.(i) The $800,000 does not include any rentals paid by the applicant for vehicles that are to be re-rented.(ii) The $800,000 does not include any payments made on motor vehicle purchases or leases. An application for a permit must be accompanied by a statement that the applicant meets all the conditions of this section, along with sufficient records to support the statement.(B) The applicant must be able to establish to the satisfaction of the comptroller that its accounting methods clearly distinguish between rentals of motor vehicles and leases, rentals, and purchases of other tangible personal property taxed under the Sales Tax Act. A clear description of the applicant's accounting methods must accompany any application for a permit.(C) The applicant must agree to accrue and pay the motor vehicle rental tax on a separate return from the taxes imposed by the Sales Tax Act. The applicant must also agree to make the motor vehicle rental tax payments to the state on or before the 20th day of the month following each month in which the motor vehicles are rented. A written agreement to this effect will be furnished by the comptroller; it must be signed and returned along with any application for a motor vehicle rental direct payment permit.(3) Applicants for a motor vehicle rental direct payment permit should write and request an application from the Comptroller of Public Accounts, Austin, Texas 78774.(4) Any person whose motor vehicle rental direct payment permit is either voluntarily forfeited or cancelled by the comptroller's office must immediately notify all owners of the tax-exempt motor vehicles he rents, advising them that the exemption certificate issued to them is no longer valid.(5) The motor vehicle rental direct payment permit may be used only by the legal entity (including its branches and divisions) to which it is issued. A permit holder may not authorize any other person or firm, including related corporations, to rent a motor vehicle tax free by using its permit. Use by other persons or firms is grounds for revocation of the permit.(6) Under no circumstances may a permit holder give a motor vehicle rental tax direct payment exemption certificate to a contractor making an improvement to realty for the permit holder under either a separated or lump-sum contract. A contractor who does not personally hold a motor vehicle rental direct payment permit and who rents a motor vehicle for use in performing a contract must pay the motor vehicle rental tax to the owner of the rented motor vehicle.(7) The holder of a valid motor vehicle rental tax direct payment permit must accrue the motor vehicle rental tax on any motor vehicles rented in Texas and subsequently used out of state.(8) A motor vehicle direct payment permit holder must file a monthly return whether or not it has any motor vehicle rental tax to report. Failure to file returns timely will subject the holder to penalties and interest and revocation of the permit.(9) A motor vehicle rental tax direct payment exemption certificate must comply substantially with the following certificate description. Each exemption certificate must bear the motor vehicle rental direct payment permit number of the permit holder.Attached Graphic",
            "sourceNote": "Source Note: The provisions of this §3.78 adopted to\r\nbe effective December 5, 1996, 21 TexReg 11489."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=145579&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "145579",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.79",
                "label": "Standard Presumptive Value"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148584&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148584",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Appraised value--The taxable value of a used motor vehicle for the purpose of calculating motor vehicle sales tax due on the date of a certified appraisal.(2) County working day--A day in which a county tax office is open for business to the public.(3) Date of purchase--Same as date of sale; the day the motor vehicle is delivered to the purchaser unless otherwise specified by written agreement.(4) Dealer--A person who holds a license issued pursuant to Transportation Code, Chapter 503, Subchapter B, or under similar regulatory requirements of another state. The term includes:(A) a dealer who holds a franchised dealer's license issued under Occupation Code, Chapter 2301 authorized by law and by franchise agreement to offer for sale a new motor vehicle;(B) an independent dealer authorized by law to offer for sale a motor vehicle other than a new motor vehicle;(C) a wholesale motor vehicle dealer;(D) a wholesale auction dealer;(E) a motorcycle dealer;(F) a house trailer dealer;(G) a trailer or semitrailer dealer;(H) an independent mobility motor vehicle dealer; or(I) any other dealer as provided by Transportation Code, Chapter 503, Subchapter B, but not a drive-a-way operator or a salvage vehicle dealer as defined pursuant to Transportation Code, §501.091(17).(5) Insurance adjuster--A person licensed under Insurance Code, Chapter 4101, or licensed or operating under similar regulatory requirements of another state.(6) Motor vehicle--A self-propelled vehicle designed to transport persons or property upon the public highways and a vehicle designed to be towed by a self-propelled vehicle while carrying property. The term includes trucks, truck tractors, motor homes, automobiles, trailers, trailers sold unassembled in a kit, semitrailers, house trailers, travel trailers, dollies, jeeps, stingers, auxiliary axles, converter gears, truck cab/chassis, and motorcycles. A unit that meets the definition of a \"motor vehicle\" does not lose its identity as a motor vehicle if tangible personal property is added to the vehicle allowing the unit to perform a specialized function but prohibiting the vehicle from transporting separate property or persons other than the driver. An example of such a vehicle would be a truck cab/chassis upon which oil well servicing equipment is attached.(7) Private-party transaction--A retail sale of a motor vehicle in which no party is a dealer.(8) Retail sale--A sale of a motor vehicle other than:(A) a sale of a new motor vehicle in which the purchaser is a franchised dealer who is authorized by law and by franchise agreement to offer the vehicle for sale as a new motor vehicle and who acquires the vehicle to sell in a manner provided by law or for purposes allowed under Transportation Code, Chapter 503;(B) a sale of a vehicle other than a new motor vehicle in which the purchaser is a dealer who holds a dealer's license issued under Transportation Code, Chapter 503, and who acquires the vehicle either for the exclusive purpose of resale in the manner provided by law or for purposes allowed under Transportation Code, Chapter 503; or(C) a sale to a franchised dealer of a new motor vehicle removed from the franchised dealer's inventory for the purpose of entering into a contract to lease the vehicle to another person if, immediately after executing the lease contract, the franchised dealer transfers title of the vehicle and assigns the lease contract to the lessor of the vehicle.(9) Standard presumptive value--The private-party transaction value of a motor vehicle, as determined by the Texas Department of Motor Vehicles based on an appropriate regional guidebook of a nationally recognized motor vehicle value guide service, or based on another motor vehicle guide publication that the department determines is appropriate if a private-party transaction value for the motor vehicle is not available from a regional guidebook.(10) Used motor vehicle--A motor vehicle that previously has been the subject of a retail sale.(b) Calculating tax due on a used motor vehicle. Tax is due on the value of a used motor vehicle as defined in subsection (c) of this section, less any deductions as provided by Tax Code, §152.002(b).(c) Taxable value of a used motor vehicle.(1) Subject to the exceptions in subsections (c)(2), (c)(3), and (e) of this section, the taxable value of a used motor vehicle is the greater of:(A) the amount paid or to be paid for the motor vehicle, or(B) 80% of the motor vehicle's standard presumptive value.(2) If the amount paid or to be paid is less than 80% of the motor vehicle's standard presumptive value, the purchaser may establish the taxable value of the motor vehicle for the purpose of calculating motor vehicle sales tax due by substituting a certified appraisal, as provided for in subsection (d) of this section, provided the certified appraisal is not less than the amount paid or to be paid for the motor vehicle.(3) The taxable value of a used motor vehicle may be established by:(A) a properly completed Application for Texas Certificate of Title, Form 130-U, signed by both purchaser and seller when the seller is a Texas dealer; or(B) documentation, including a receipt or invoice, provided by the seller to the purchaser of the vehicle when the seller is a dealer licensed by or under similar regulatory requirements of another state.(d) Certified appraisal to establish the taxable value of a used motor vehicle.(1) Time limit. A purchaser must obtain and present to the county tax assessor-collector a certified appraisal within 20 county working days after the date of purchase or, if purchased out of state, within 20 county working days after bringing the motor vehicle into Texas.(2) Appraisal form. A certified appraisal must be on comptroller form 14-128, Texas Used Motor Vehicle Appraisal Form.(3) Appraisal standards. Upon request by a purchaser of a used motor vehicle, a dealer must provide a certified appraisal. However, a dealer may only provide appraisals for the categories of motor vehicles which the dealer is licensed to sell under Transportation Code, Chapter 503, Subchapter B. An insurance adjuster may appraise any type of used motor vehicle. The dealer or insurance adjuster must view the motor vehicle in person and provide all the information requested on appraisal form 14-128 for the appraisal to be valid, including the appraised value of the used motor vehicle.(4) Appraisal fee.(A) Except as provided by clause (i) and (ii) of this subparagraph, a dealer may charge no less than $100 and no more than $300 for a certified appraisal:(i) a licensed motorcycle dealer may charge no less than $40 and no more than $300 for a certified appraisal of a motorcycle; and(ii) a dealer may charge no less than $100 and no more than $500 for a certified appraisal of a house trailer, travel trailer, or motor home.(B) An insurance adjuster is not limited to the amount charged for a certified appraisal under this section.(C) The fee for a certified appraisal is not subject to limited sales and use tax under Tax Code, Chapter 151, and is not subject to motor vehicle sales and use tax under Tax Code, Chapter 152.(5) Retention of certified appraisals. A county tax assessor-collector shall retain a certified appraisal for four years from the end of the current fiscal year in which it is presented and accepted.(6) Questioning a certified appraisal. A county tax assessor-collector may question a certified appraisal in the manner as provided in Tax Code, §152.062(e).(e) Excluded vehicles. This section does not apply to:(1) vehicles involved in an even exchange or trade, as provided by Tax Code, §152.024;(2) vehicles received as a gift, as provided by Tax Code, §152.025 and §3.80 of this title (relating to Motor Vehicles Awarded as Prizes);(3) vehicles acquired through a mechanic's lien, as provided in Property Code, Chapter 70;(4) vehicles acquired through a storage lien, as provided by Occupations Code, Chapter 2303;(5) abandoned or abandoned nuisance vehicles acquired under Transportation Code, Chapter 683;(6) vehicles eligible for a specialty license plate as a classic motor vehicle, as provided in Transportation Code, §504.501; and(7) vehicles acquired from a governmental entity either directly or through public auction. A governmental entity includes but is not limited to the federal government or an agency, department, instrumentality or wholly owned corporation of the federal government; or a state, territory or possession of the United States or any agency, department, county, city, special district, or other political subdivision of a state, territory or possession of the United States.(f) Payments under protest and refunds.(1) Persons seeking the recovery of payments under protest and refunds relating to this section must follow the provisions set forth in §3.75 of this title (relating to Refunds, Payments Under Protest, Payment Instruments and Dishonored Payments).(2) If the purchaser of a used motor vehicle paid less than 80% of standard presumptive value and paid tax on a taxable value as determined by subsection (c)(1)(B) of this section, the purchaser may request a refund from the comptroller if the purchaser obtains a valid certified appraisal within 20 county working days of the motor vehicle's purchase or use in Texas, provided the value of the certified appraisal is not less than the amount paid or to be paid for the motor vehicle.",
            "sourceNote": "Source Note: The provisions of this §3.79 adopted to be effective October 1, 2006, 31 TexReg 8001; amended to be effective May 16, 2010, 35 TexReg 3649."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148584&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148584",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.80",
                "label": "Motor Vehicles Transferred as a Gift or for No Consideration"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197942&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197942",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Appraisal--A written statement independently and impartially prepared by a qualified appraiser employing generally accepted appraisal methods and techniques, in a narrative format or on a form chosen by the appraiser, setting forth an opinion as to the current fair market value of an adequately described motor vehicle and any accessories or equipment that may be affixed to the motor vehicle. The appraisal must be sufficiently descriptive to enable a third party to readily ascertain the estimated value of the vehicle and the rationale for that estimate.(2) Book value--The value, in dollars and cents, of a motor vehicle on the owner's books and records at the time the vehicle is transferred based on General Accepted Accounting Principles (GAAP).(3) Child--The biological son or daughter of a parent or parents; or the son or daughter of a parent or parents by virtue of legal adoption; or the son or daughter of a parent who, pursuant to Family Code, Chapter 160, is presumed to be a biological parent, has executed an acknowledgment of parenthood or has been adjudicated to be a biological parent by court decree. The term \"child\" includes a child in the care of a foster parent as that term is defined in this subsection and the spouse of a child as herein defined.(4) Community property--All property, both real and personal other than separate property, acquired by the husband or wife during marriage. All property acquired during a marriage by either spouse is presumed to be community property.(5) Common-law marriage--An informal marriage where a man and woman have agreed to be husband and wife, are presently living together in Texas as husband and wife, and who hold themselves out to the public in Texas as being husband and wife. Every marriage entered into in Texas is presumed to be valid unless expressly void by statute.(6) Consideration--The amount paid or to be paid for a motor vehicle, valued in money, as prescribed in Tax Code, §152.002, or anything of monetary value including but not limited to cash or the equivalent, a book entry reflecting cash received or paid, the forgiveness or assumption of debt, book entries reflecting accounts receivable or accounts payable for an item, or issuance of stock when stock ownership in the subsidiary is less than 100%. Consideration does not include any amount equal to less than 10% of a motor vehicles current appraised fair market value at the time of transfer.(7) Dealer--A person who holds a license to sell motor vehicles issued pursuant to Transportation Code, Chapter 503, Subchapter B, or under similar regulatory requirements of another state. The term \"dealer\" includes a dealer that holds a franchised dealer's license issued pursuant to Occupation Code, Chapter 2301, for a particular make of new motor vehicle, an independent dealer licensed to sell motor vehicles other than new motor vehicles, a wholesale motor vehicle dealer, an independent mobility motor vehicle dealer, a wholesale auction dealer, a motorcycle dealer, a trailer or semitrailer dealer, including house or travel trailers, an independent mobility dealer, or any other dealer as provided by Transportation Code, Chapter 503, Subchapter B. The term \"dealer\" does not include a drive away operator or a salvage vehicle dealer licensed pursuant to Occupation Code, Chapter 2302.(8) Decedent's estate--The real and personal property of a deceased person subject to distribution by will or the laws of descent and distribution. The term includes property held in joint tenancy or joint ownership with a right of survivorship.(9) Foster parent--A person who under the authority of a governmental agency, or a private adoption or foster care agency provides foster or substitute care as defined in Tax Code, §700.1301, for a child who is currently under the care of said foster parent in their home.(10) Grandchild--The child of one's son or daughter by birth or legal adoption. The term \"grandchild\" includes a step-grandchild and the spouse of a grandchild as herein defined.(11) Grandparent--The father or mother of a child's parent or parents either by birth or legal adoption. The term \"grandparent\" includes a step-grandparent and the spouse of a grandparent as herein defined.(12) Guardian--A person appointed by a court to have the legal authority over and care of the real and personal property or the person of a minor or a incapacitated person as evidenced by a certificate of guardianship or letters of guardianship. The term \"guardian\" includes a general, limited, temporary or successor guardian, a guardian of a local, county or regional guardianship program, or a certified public guardian or certified private professional guardian in the business of providing guardianship services. The term \"guardian\" does not include a guardian ad litem appointed to represent an incapacitated person in a guardianship proceeding.(13) Motor vehicle--A self-propelled vehicle designed to transport persons or property upon the public highways and a vehicle designed to be towed by a self-propelled vehicle while carrying property. The term \"motor vehicle\" includes, but is not limited to, automobiles, motor homes, motorcycles, trucks, truck tractors, trailers, semitrailers, house or travel trailers, trailers sold unassembled in a kit, dollies, jeeps, stingers, auxiliary axles, converter gears, and truck cab/chassis. A unit that meets the definition of a \"motor vehicle\" does not lose its identity as a motor vehicle if tangible personal property is added to the vehicle allowing the unit to perform a specialized function but prohibiting the vehicle from transporting separate property or persons other than the driver. An example of such a vehicle would be a truck cab/chassis upon which oil well servicing equipment is attached.(14) Parent--The biological mother or father of a child, or the mother or father of a child by virtue of legal adoption, or a person who, pursuant to Family Code, Chapter 160, is presumed to be a biological parent or has executed an acknowledgment of parenthood or has been adjudicated to be the biological parent by court decree. The term \"parent\" includes foster parent as that term is defined in this subsection and the spouse of a parent as herein defined.(15) Separate property--Any property, both real and personal, owned by a spouse before marriage, or acquired during the marriage by gift, devise, or descent.(16) Sibling--One of two or more individuals having one common parent by birth, legal adoption or marriage. The term includes brother, sister, half-brother, half-sister, step-brother or step-sister, brother in-law or sister in-law.(17) Spouse--A person to whom one is legally married as husband or wife either by formal ceremony or by common-law pursuant to Family Code, Title 1, Subtitle A, or a comparable law of another jurisdiction.(18) Standard presumptive value--The taxable value of a private-party transfer of ownership to a motor vehicle, as determined by §3.79 of this title (relating to Standard Presumptive Value).(19) Stepchild--The biological or adopted child of one's current spouse from a previous marriage whose parent-child relationship is through marriage only and not by birth or adoption.(20) Stepparent--The current spouse of a child's mother or father whose only relationship to the child is through marriage and not by birth or adoption.(b) Transfer of a motor vehicle as a gift. Effective September 1, 2009, a $10 gift tax is imposed on the recipient of a joint or undivided ownership interest in a motor vehicle for no consideration as follows:(1) The transfer of a motor vehicle to a recipient from a parent, step-parent, grandparent, step-grandparent, child, stepchild, grandchild, step-grandchild, foster parent, sibling, or guardian.(2) The transfer of a motor vehicle from a spouse when the vehicle is the separate property of the spouse, such as a motor vehicle owned by a spouse prior to marriage. A motor vehicle acquired by a spouse after marriage is presumed to be community property and not subject to either gift tax or motor vehicle sales and use tax when title is transferred between husband and wife.(3) The transfer of a motor vehicle from a decedent's estate to the lawful devisees or heirs by will or by the laws of descent and distribution, including a motor vehicle transferred to:(A) the surviving owner or owners of a motor vehicle owned jointly by two or more parties when there is a right of survivorship agreement signed by the joint owners on file with the Department of Motor Vehicles pursuant to Transportation Code, §501.031; or(B) the representative of the decedent by the trustee of a trust which terminates upon the decedent's death.(4) The transfer of a motor vehicle from or to a nonprofit organization that:(A) obtains a determination letter or a group exemption ruling letter from the Internal Revenue Service (IRS) that states that the organization qualifies for exemption from federal income tax under Title 26, Internal Revenue Code, §501(c)(3);(B) is organized and operated for:(i) religious, charitable, scientific, literary, or educational purposes;(ii) testing for public safety;(iii) prevention of cruelty to children or animals; or(iv) promotion of amateur sports competition; and(C) uses the motor vehicle exclusively for the purposes for which the organization was established.(5) To be a valid gift or transfer of title to community property between spouses, the principal parties to the transfer of a motor vehicle for no consideration must file, with the county tax assessor-collector, a properly completed Texas Affidavit of Motor Vehicle Gift Transfer, Form 14-317. A properly completed affidavit must conform to the requirements pursuant to subsection (f) of this section.(c) Transfer of a motor vehicle for no consideration, except for transfers involving a dealer. Effective September 1, 2009, the recipient of a joint or undivided ownership interest in a motor vehicle for no consideration that does not qualify as a gift pursuant to subsection (b) of this section or is not exempt from tax pursuant to Tax Code, Chapter 152, Subchapter E, is subject to sales and use tax. The amount on which the tax is computed is as follows:(1) the standard presumptive value of the vehicle; or(2) if there is no standard presumptive value for the vehicle, the recipient must provide a value for the vehicle to the tax assessor-collector by means of:(A) documentation listing a minimum suggested sales price based on the condition of the vehicle at the time of transfer as provided by a nationally recognized motor vehicle value guide service or motor vehicle value guide publication; or(B) an appraisal listing the fair market value of the vehicle at the time of transfer.(3) Transfers of motor vehicles for no consideration that do not qualify as a gift include but are not limited to:(A) A motor vehicle transferred between individuals, including, but not limited to aunts, uncles, nephews, nieces, cousins and unmarried couples.(B) A motor vehicle transferred to or from a nonprofit organization that:(i) is not exempt from federal income tax under 26 U.S.C., §501(c)(3);(ii) is not exempt from motor vehicle sales and use tax pursuant to Tax Code, §152.087, relating to volunteer fire departments and emergency medical service providers exempt under 26 U.S.C., §501(a); or(iii) is not exempt from sales and use tax pursuant to Tax Code, §152.088, relating to churches, and religious societies.(C) A motor vehicle transferred between corporations, limited liability companies, partnerships and trusts; or between an individual and a corporation, limited liability company, partnership or trust.(d) Transfer of a motor vehicle to or from a dealer.(1) The transfer of a joint or undivided ownership interest in a motor vehicle for no consideration from a dealer that is in business as a sole proprietor is subject to tax by the recipient of the vehicle based on the book value of the vehicle at the time of the transfer unless the transaction qualifies as a gift pursuant to subsection (b) of this section, or is exempt from tax pursuant to Tax Code, Chapter 152, Subchapter E.(2) The transfer of a joint or undivided ownership interest in a motor vehicle for no consideration to a dealer that is in business as a sole proprietor is subject to tax by the dealer on the value of the vehicle pursuant to subsection (c)(2) of this section, at the time of the transfer unless the transaction qualifies as a gift pursuant to subsection (b) of this section, or is exempt from tax pursuant to Tax Code, Chapter 152, Subchapter E.(3) The transfer of a joint or undivided ownership interest in a motor vehicle for no consideration from a dealer that is a corporation, limited liability company, partnership or trust is subject to tax by the recipient of the vehicle based on the dealer's book value of the vehicle at the time of the transfer, unless the transaction qualifies as a gift pursuant to subsection (b)(4) of this section, or is exempt from tax pursuant to Tax Code, Chapter 152, Subchapter E.(4) The transfer of a joint or undivided ownership interest in a motor vehicle for no consideration to a dealer that is a corporation, limited liability company, partnership or trust is subject to tax by the dealer on the value of the vehicle pursuant to subsection (c)(2) of this section, at the time of the transfer, unless the transaction qualifies as a gift pursuant to subsection (b)(4) of this section or is exempt from tax pursuant to Tax Code, Chapter 152, Subchapter E.(e) Transfer of a motor vehicle as a prize. A joint or undivided ownership interest in a motor vehicle that is transferred to the winner of a contest or drawing, regardless of how the contest or drawing is held, is subject to sales and use tax as follows:(1) A motor vehicle that is purchased by a contest sponsor and transferred directly from the seller of the vehicle to the contest winner is subject to tax based on the total consideration paid for the vehicle. The tax is the liability of the contest sponsor and is due and payable before the vehicle can be titled and/or registered.(2) A motor vehicle that is transferred directly from the seller of the vehicle to a contest sponsor for consideration and the sponsor subsequently transfers the vehicle to the contest winner is subject to tax as follows:(A) the sponsor owes tax on the total consideration paid for the vehicle to the seller; and(B) the winner owes sales and use tax based on the taxable value pursuant to subsection (c) of this section, unless the transfer from the sponsor to the winner qualified as a gift pursuant to subsection (b)(4) of this section.(3) The transfer of a motor vehicle directly from the owner of the vehicle to a contest sponsor for no consideration, and the subsequent transfer of the vehicle from the sponsor to the contest winner are both subject to tax pursuant to subsection (c) of this section unless:(A) the owner of the vehicle is a dealer, then the sponsor owes tax based on the dealer's book value of the vehicle at the time of the transfer and the winner owes tax pursuant to subsection (c) of this section; or(B) if the sponsor qualifies as a nonprofit organization pursuant to subsection (b)(4) of this section, then the $10 gift tax is due by both the sponsor and the winner.(4) The transfer of a motor vehicle directly to the winner of a contest or drawing from a manufacturer or dealer of motor vehicles that sponsored the contest or drawing is subject to tax by the winner based on the manufacturer's or dealer's book value of the vehicle at the time of transfer.(5) The transfer of a motor vehicle directly from a sponsor of a contest or drawing located outside of Texas to a winner who is a Texas resident or who is domiciled or doing business in Texas is subject to use tax by the winner pursuant to subsection (c) of this section if the vehicle is brought into Texas for use on the public highways of Texas unless:(A) the sponsor is a manufacturer or dealer, then the winner owes tax on the manufacturer's or dealer's book value of the vehicle at the time of transfer; or(B) the sponsor qualifies as a nonprofit organization pursuant to subsection (b)(4) of this section, then the $10 gift tax is due by the winner.(f) Documentation required for a gift of a motor vehicle. The principal parties to the transfer of a motor vehicle as the result of a gift or transfer of title to community property between spouses pursuant to subsection (b) of this section, must file comptroller's form 14-317, Texas Affidavit of Motor Vehicle Gift Transfer, with the tax assessor-collector of the county in which the Application for Texas Certificate of Title, form 130-U, is submitted.(1) To be valid, the affidavit must be properly completed and contain the signatures of all principal parties to the transaction sworn to and subscribed before either:(A) a notary public of Texas or the equivalent from some other state or jurisdiction; or(B) a county tax assessor-collector or an employee of the county tax assessor-collector pursuant to Government Code, §602.002.(2) the party or parties whose signature is being acknowledged must:(A) be present and sign the affidavit in front of the tax assessor-collector or an employee of the county tax assessor-collector; or(B) have a signed power of attorney from any absent party or the signature of the absent party must be formally certified pursuant to paragraph (1)(A) of this subsection.(3) Pursuant to Tax Code, §152.062, the tax assessor-collector may examine each Texas Affidavit of Motor Vehicle Gift Transfer or Application for Texas Certificate of Title for their truth and accuracy. If the tax assessor-collector has reason to question the validity of the information in an affidavit or application for title, or if any material fact fails to meet the guidelines required by the Comptroller, the tax assessor-collector may request that any party to the affidavit or application for title furnish further substantiation for the information contained in the affidavit or application for title, including but not limited to documentation used to arrive at a taxable value, or proof of marriage, certified copies of birth certificates, decrees of adoption, baptismal records, court orders establishing paternity or voluntary admissions of paternity.(4) Pursuant to Tax Code, §152.101, a person commits a felony of the third degree by signing an affidavit or application for title required by this section if he or she knows that it is false in any material fact.",
            "sourceNote": "Source Note: The provisions of this §3.80 adopted to be effective October 13, 2010, 35 TexReg 9104."
        },
        {
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            "currentRecordId": "197942",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.82",
                "label": "Exemption for Churches or Religious Societies"
            },
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            "ruleBody": "(a) Exemption from motor vehicle taxes. A motor vehicle that is used for religious purposes is exempt from motor vehicle taxes on the sale or use of or the receipts from the rental of the motor vehicle. The exemption includes:(1) the retail sales tax imposed on the retail sale of a motor vehicle sold in this state;(2) the use tax imposed on a motor vehicle purchased at retail outside this state and used on the public highways of this state;(3) the use tax imposed on a new resident of the state who brings into the state a motor vehicle that has been registered previously in the new resident's name in any other state or foreign country or that the person leased in another state or foreign country; and(4) the tax imposed on the gross rental receipts from the rental of a rented motor vehicle.(b) \"Motor vehicle used for religious purposes\" means a motor vehicle that is:(1) used primarily by a church or religious society; and(2) not used primarily for the personal or official needs or duties of a minister.(c) A \"church or religious society\" is a regularly organized group of people associating for the sole purpose of holding, conducting, and sponsoring, according to the rites of the sect, religious worship. An organization supporting and encouraging religion as an incidental purpose or an organization with the general purpose of furthering religious work or instilling its membership with a religious understanding is not sufficient to qualify such an entity as a church or religious society.(d) The \"primary use\" means a use of a motor vehicle for at least 80% of the motor vehicle's operating time.",
            "sourceNote": "Source Note: The provisions of this §3.82 adopted to be effective March 10, 1978, 3 TexReg 734; amended to be effective August 31, 1979, 4 TexReg 2927; amended to be effective January 7, 2020, 45 TexReg 381."
        },
        {
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            "currentRecordId": "187571",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.83",
                "label": "Sales and Use of Motor Vehicles Purchased or Leased by Public Agencies; and Sales and Use of Motor Vehicles Purchased by Commercial Transportation Companies"
            },
            "nextRule": {
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                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Application for Texas Title and/or Registration--Form 130-U, its electronic equivalent, or a successor form, promulgated jointly by the comptroller and the Texas Department of Motor Vehicles, which is used by a person to apply for a title and registration and to pay any motor vehicle sales or use tax due. The Application for Texas Title and/or Registration is available at comptroller.texas.gov.(2) Lease--An agreement, other than a rental, by an owner of a motor vehicle to give for longer than 180 days exclusive use of a motor vehicle to another for consideration. For more information on motor vehicle leases, see §3.70 of this title (relating to Motor Vehicle Leases and Sales).(3) Motor vehicle--A vehicle described by Tax Code, §152.001(3) (Definitions). In general, a motor vehicle includes a self-propelled vehicle designed to transport persons or property upon the public highway and a vehicle designed to be towed by a self-propelled vehicle while carrying property. The term includes, but is not limited to: automobiles; buses; vans; motor homes; motorcycles; trucks; truck tractors; truck cab/chassis; semitrailers; trailers and travel trailers, as defined by §3.72 of this title (relating to Trailers, Farm Machines, and Timber Machines). The term does not include a vehicle to which the certificate of title has been surrendered in exchange for a salvage vehicle title or a nonrepairable vehicle title issued pursuant to Transportation Code, Chapter 501 (Certificate of Title Act).(4) Open-enrollment charter school--A school that has been granted a charter under Education Code, Chapter 12, Subchapter D (Open-Enrollment Charter School).(5) Public agency--A department, commission, board, office, institution, or other agency of this state or of a county, city, town, school district, hospital district, water district, or other special district or authority or political subdivision created by or under the constitution or the statutes of this state, or an unincorporated agency or instrumentality of the United States. The term includes:(A) any college or university created or authorized by the Texas constitution or Texas statutes;(B) all independent boards, commissions, agencies, or corporations that are instrumentalities of the United States and are wholly owned by the United States or by another corporation wholly owned by the United States, including organizations specifically exempted as an instrumentality of the United States by federal statute, such as a federal credit union, federal reserve bank, or federal home loan bank; and(C) effective September 1, 2017, an open-enrollment charter school.(b) Motor vehicles purchased or leased by a public agency or an entity exempted by another statute.(1) The sale or use of a motor vehicle is exempt from the taxes imposed by Tax Code, Chapter 152 (Taxes on the Sale, Rental, and Use of Motor Vehicles), when the motor vehicle is:(A) purchased and used by a public agency and operated with an exempt license plate issued under Transportation Code, §502.451 (Exempt Vehicles);(B) purchased and used by a public agency and exempted from inscription requirements as provided by Transportation Code, §721.003 (Exemption from Inscription Requirement for Certain State-Owned Motor Vehicles) or §721.005 (Exemption from Inscription Requirement for Certain Municipal and County-Owned Motor Vehicles), regardless of whether the vehicle is operated with an exempt or regularly designed license plate;(C) purchased and used by a public agency and issued a regularly designed license plate, pursuant to Transportation Code, §502.451(f), because the motor vehicle is dedicated to law enforcement activities;(D) purchased by the federal government, its agencies, and its instrumentalities, regardless of whether the vehicle is operated with an exempt or regularly designed license plate; or(E) purchased and used by an entity who is exempted from the taxes imposed by Tax Code, Chapter 152 or by another Texas or federal statute, regardless of whether the vehicle is operated with an exempt or regularly designated license plate.(2) The sale or use of a motor vehicle is exempt from taxes imposed by Tax Code, Chapter 152, when the motor vehicle is purchased to be leased to a public agency, including the federal government, its agencies, and its instrumentalities; and operated with an exempt license plate issued under Transportation Code, §502.451.(3) To claim an exemption under this section, a Texas seller and purchaser must complete and sign an Application for Texas Title and/or Registration and any other documents required by the Texas Department of Motor Vehicles to apply for title or register the motor vehicle in Texas. The purchaser must indicate the reason an exemption is claimed on the Application for Texas Title and/or Registration at the time of purchase. For example, when a motor vehicle is purchased by public agency, the purchaser may write \"exempt as a public agency,\" or \"exempt as a public agency, as provided by §152.082 Sale of Motor Vehicle to or Use of Motor Vehicle by Public Agency.\" When a motor vehicle is purchased to be leased to a public agency, the purchaser may write, for example, \"leased to a public agency\" or \"exempt as a lease to a public agency, as provided by §152.083 Lease of Motor Vehicle to Public Agency.\" The Application for Texas Title and/or Registration is submitted to the county tax assessor-collector.(4) When a motor vehicle purchased tax-free and leased to a public agency ceases to be leased to a public agency, and is not held for sale, the owner must remit motor vehicle tax directly to the comptroller by completing Motor Vehicle Sales/Use Tax Payment, Form 14-112, its electronic equivalent, or a successor form, promulgated by the comptroller. The amount of motor vehicle tax due is based on the owner's book value of the motor vehicle at that time. For more information concerning lease vehicles, see §3.70 of this title (relating to Motor Vehicle Leases and Sales).(c) Sale, use, or lease of a motor vehicle by a commercial transportation company.(1) The sale or use of a motor vehicle is exempt from taxes imposed by Tax Code, Chapter 152 (Taxes on Sale, Rental, and Use of Motor Vehicles), when the motor vehicle is operated with an exempt license plate issued under Transportation Code, §502.451 and purchased by a commercial transportation company to provide transportation services under a contract with:(A) a board of county school trustees or school district board of trustees under Education Code, §34.008 (Contract with Transit Authority, Commercial Transportation Company, or Juvenile Board); or(B) the governing body of an open-enrollment charter school.(2) To claim an exemption under this section, a Texas seller and purchaser must complete and sign an Application for Texas Title and/or Registration and any other documents required by the Texas Department of Motor Vehicles to apply for title or register the motor vehicle in Texas. The purchaser must indicate the reason an exemption is claimed on the Application for Texas Title and/or Registration at the time of purchase. For example, a commercial transportation company agency may write \"exempt as a commercial transportation company, as provided by §152.082.\" The Application for Texas Title and/or Registration is submitted to the county tax assessor-collector.(3) This exemption under this section does not apply to a motor vehicle leased to a commercial transportation company, or a motor vehicle purchased by a third party to be leased to a commercial transportation company, even if the commercial transportation company uses the motor vehicle to provide transportation services under a contract with the board of county school trustees, the school district board of trustees, or the governing body of an open-enrollment charter school. For more information concerning lease vehicles, see §3.70 of this title.",
            "sourceNote": "Source Note: The provisions of this §3.83 adopted to be effective February 14, 2017, 42 TexReg 568; amended to be effective February 7, 2018, 43 TexReg 581."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=145578&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "145578",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.84",
                "label": "Exemption for Orthopedically Handicapped Person"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) A motor vehicle modified for operation by an orthopedically handicapped person is:(A) a vehicle that has been specially modified by altering such items as the conventional brake, acceleration system, or steering system to facilitate the operation of the vehicle by an orthopedically handicapped driver, including but not limited to, hand controls to operate the brake, clutch, or accelerator; relocating or altering the accelerator pedal; and relocating or extending the emergency brake; or(B) a vehicle that has been specially modified by installing such items as a wheelchair lift, hoist, raised roof, or attached ramp to allow an orthopedically handicapped driver to enter the vehicle.(2) A motor vehicle modified for transportation of an orthopedically handicapped person--A vehicle that has been specially modified by the installation of such items as a wheelchair lift, hoist, attached ramp, wheelchair hold-down clamps, raised roof, or special seat restraints other than conventional seat belts to allow for the transportation of an orthopedically handicapped person in a reasonable manner.(3) Licensed practitioner of the healing arts--A person licensed to practice the healing arts as set out in Occupations Code, §104.003(b), (c), (e) and (g). This includes a person who is licensed by the Texas Medical Board and holds a doctor of medicine degree, a person who is licensed by the Texas Medical Board and holds a doctor of osteopathy degree, a person who is licensed by the Texas Board of Chiropractic Examiners, or a person who is licensed by the Texas State Board of Podiatric Medical Examiners.(4) Orthopedically handicapped person--An individual who has limited movement of body extremities and/or loss of physical functions. The physical impairment must be such that the person is either unable to operate, or be transported in a reasonable manner in, a motor vehicle that has not been specially modified.(5) Primarily driven by, or primarily used for the transportation of, an orthopedically handicapped person--The motor vehicle must be driven by, or used for the transportation of, an orthopedically handicapped person at least 80% of the motor vehicle's operating time.(b) Vehicles eligible for exemption. A motor vehicle is exempt from sales and use tax if:(1) it has been or will be modified for operation by, or for the transportation of, a person who is orthopedically handicapped at the time of purchase; and(2) is primarily driven by, or primarily used for the transportation of, an orthopedically handicapped person.(c) Eligible purchasers. An individual, partnership, corporation, or association may purchase a vehicle under this exemption if the requirements of this section are satisfied.(d) Ineligible modifications. Modifications that do not qualify a motor vehicle for exemption under this section include, but are not limited to, the following:(1) installation of standard factory options, such as automatic transmission, power seats, power windows, or adjustable pedals;(2) installation of weight-bearing grab bars or handicap assist handles;(3) installation of running boards or steps;(4) installation of steering wheel spinner knobs;(5) installation of non-electrical carriers designed for bicycles or wheelchairs;(6) installation of standard trailer hitches; or(7) the addition of ramps, including bi-fold ramps, that are not permanently attached to the vehicle.(e) Documentation required to claim an exemption.(1) A person claiming the exemption must present the seller that is licensed as a motor vehicle dealer under Texas Transportation Code, Chapter 503 or Occupations Code, Chapter 2301, or the county tax assessor-collector:(A) a properly completed comptroller Form 14-318, Texas Motor Vehicle Orthopedically Handicapped Exemption Certificate; and(B) a restricted Texas driver's license, issued to the qualified orthopedically handicapped person, which requires a modification restriction on the vehicle and verifies that the orthopedically handicapped driver is so physically impaired as to be unable to operate a motor vehicle which has not been modified; or(C) a statement from a licensed practitioner of the healing arts that the qualified orthopedically handicapped person requires adaptive devices and/or modifications described in subsection (a) of this section that are necessary for the operation by, or the transport of, an orthopedically handicapped person. This requirement is satisfied by the practitioner's signature on the Texas Motor Vehicle Orthopedically Handicapped Exemption Certificate.(2) There is no provision in the motor vehicle sales and use tax act for an exemption number or a tax exempt number to be issued or used in connection with the exemption certificate.(3) The sale is exempt if the certificate identified in paragraph (1)(A) of this subsection, and the document identified in paragraph (1)(B) or (C) of this subsection is accepted in good faith by the seller from the purchaser at the time of sale, the certificate clearly indicates an eligible modification for the exemption, and the seller lacks actual knowledge that the claimed exemption is invalid. The seller must provide the exemption certificate and any related required documents to the county tax assessor-collector at the time of titling and registration and retain a copy of the exemption certificate and required documents for at least four years from the date of the sale of the motor vehicle.(f) Time period to complete eligible modifications. Modifications to an eligible motor vehicle must be:(1) needed at the time of purchase; and(2) completed within two years of the date of purchase of the motor vehicle.(g) Claiming a refund from the comptroller. Persons who paid sales tax to either a seller or to a county tax assessor-collector in error may request a refund of the tax directly from the comptroller. Persons applying for a refund must comply with the requirements of §3.75 of this title (relating to Refunds, Payments Under Protest, Payment Instruments and Dishonored Payments).",
            "sourceNote": "Source Note: The provisions of this §3.84 adopted to be effective April 25, 1978, 3 TexReg 1347; amended to be effective May 3, 1982, 7 TexReg 1570; amended to be effective September 18, 2006, 31 TexReg 8002; amended to be effective May 16, 2010, 35 TexReg 3650."
        },
        {
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            "currentRecordId": "19739",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.86",
                "label": "Destroyed and Repaired Motor Vehicles"
            },
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                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Motor vehicle:(1) includes a self-propelled unit designed to transport persons or property on a public highway and includes trailers, semitrailers, house trailers, and motorcycles;(2) does not include:(A) a device moved only by human power;(B) a device used exclusively on stationary rails or tracks;(C) a mobile office;(D) a unit that has been declared a total loss by an insurance company registered to transact business in this or another state;(E) a unit where the certificate of title has been or is being surrendered for:(i) a salvage certificate issued pursuant to the Certificate of Title Act, Texas Civil Statutes, Article 6687-1;(ii) a certificate of authority issued pursuant to the Litter Abatement Act, Texas Civil Statutes, Article 4477-9a;(iii) a nonrepairable motor vehicle certificate of title issued pursuant to the Certificate of Title Act, Texas Civil Statutes, Article 6687-1; or(iv) an ownership document issued by another state if the document is comparable to a document issued pursuant to clauses (i), (ii), or (iii) of this subparagraph; and(F) a road-building machine.(b) The sale or use of a motor vehicle described in subsection (a)(1) of this section is subject to the provisions of the Tax Code, Chapter 152, Taxes on Sale, Rental, and Use of Motor Vehicles.(c) The sale or use of a unit described in subsection (a)(2) of this section is subject to the provisions of the Tax Code, Chapter 151, Limited Sales, Excise and Use Tax. Sellers and purchasers should refer to §3.285 of this title (relating to Resale Certificate; Sales for Resale) and §3.286 of this title (relating to Seller's and Purchaser's Responsibilities).(d) The sale or use of a unit that had previously met the description in subsection (a)(2) of this section but that has been repaired and is now eligible to be issued a regular certificate of title pursuant to the Certificate of Title Act, Texas Civil Statutes, Article 6687-1, is subject to the provisions of the Tax Code, Chapter 152, Taxes on Sale, Rental, and Use of Motor Vehicles.",
            "sourceNote": "Source Note: The provisions of this §3.86 adopted to be effective June 26, 1997, 22 TexReg 5841."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19741&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19741",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.88",
                "label": "Moveable Specialized Equipment and Off-Road Vehicles"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=32324&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "32324",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Off-road vehicle--A self-propelled vehicle designed primarily for use off the public streets and highways. Specific examples of off-road vehicles are golf carts, fork lifts, go carts, race cars, and other types of vehicles, such as dirt bike motorcycles, that are not designed or intended by the manufacturer to meet registration and safety inspection requirements for motor vehicles.(2) Motor vehicle--A self-propelled vehicle designed to transport persons or property upon the public highways and a vehicle designed to be towed by a self-propelled vehicle while carrying property. The term includes trucks, automobiles, trailers, trailers sold unassembled in a kit, semitrailers, house trailers, dollies, jeeps, stingers, auxiliary axles, converter gears, truck cab/chassis, and motorcycles. A unit that meets the definition of a \"motor vehicle\" does not lose its identity as a motor vehicle if tangible personal property is added to the vehicle allowing the unit to perform a specialized function but prohibiting the vehicle from transporting separate property or persons other than the driver. An example of such a vehicle would be a flatbed truck upon which oil well servicing equipment is attached.(3) Moveable Specialized Equipment--A unit designed and built specifically to perform a specialized function that does not include transporting property separate from itself or persons other than the driver. Examples of moveable specialized equipment meeting these criteria are motorized cranes, motorized oil well servicing units, and mobile auto crushers.(b) Application of tax.(1) Off-road vehicles are subject to limited sales and use tax under the Tax Code, Chapter 151.(2) Moveable specialized equipment is subject to limited sales and use tax under the Tax Code, Chapter 151.(3) Motor vehicles are subject to motor vehicle sales and use tax under the Tax Code, Chapter 152, or interstate motor carrier sales and use tax under the Tax Code, Chapter 157.",
            "sourceNote": "Source Note: The provisions of this §3.88 adopted to be effective December 5, 1996, 21 TexReg 11492."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=32324&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "32324",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.90",
                "label": "Motor Vehicles Purchased for Use Outside of Texas"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19742&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19742",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Motor vehicle sales tax exemption.(1) A motor vehicle purchased in Texas intended for use exclusively outside of Texas is exempt from the motor vehicle sales tax.(2) A vehicle exempt under this section may not be operated within Texas for any purpose other than its being driven out of the state.(3) A purchaser claiming an exemption from motor vehicle sales tax because the vehicle is purchased for use exclusively outside of Texas must issue to the seller a Texas Motor Vehicle Sales Tax Exemption Certificate as described in subsection (e) of this section. The registration of a motor vehicle in Texas will create the presumption that the vehicle is for use within Texas.(b) Seller's responsibility.(1) The seller of a motor vehicle must keep complete records of every sale at retail and must provide the purchaser a motor vehicle tax statement and any other documents necessary to register the vehicle in Texas. The seller is not relieved of this responsibility even though the vehicle is not registered or titled in Texas.(2) The seller must also retain properly executed Texas Motor Vehicle Sales Tax Exemption Certificates. An exemption certificate must be obtained at the time the transaction occurs and retained for a period of four years from the date of the transaction. An exemption certificate will be valid if the seller received it in good faith from a purchaser and the certificate is properly completed.(c) Use tax.(1) Motor vehicle use tax is due on any motor vehicle that was purchased tax-free under the provisions of this section and is later used within the State of Texas.(2) Payment of the use tax is the obligation of the person operating the vehicle in this state.(3) The use tax rate is the rate in effect at the time the motor vehicle is brought back into the state and is imposed on the original purchase price, less credit for any legally imposed tax previously paid to another state by the purchaser or operator.(4) The tax is due within 20 working days after the date the vehicle is first returned to Texas.(5) The purchaser must retain records showing the total consideration originally paid for the vehicle and documenting the amount of any tax previously paid to another state.(d) Vehicles which never enter Texas.(1) The Texas motor vehicle sales tax will not be due if a motor vehicle is sold by a Texas seller but the vehicle is delivered from one out-of-state location directly to the purchaser at another out-of-state location.(2) The seller will be responsible for retaining sufficient records showing from and to where the vehicle was delivered.(e) Content of a Texas Motor Vehicle Sales Tax Exemption Certificate. The exemption certificate must show:(1) the name and address of the purchaser;(2) a description of the vehicle being purchased (including the vehicle identification number, make of vehicle, and year model);(3) the signature of the purchaser and the date;(4) the name and address of the seller;(5) the name of the state where the vehicle will be used and registered; and(6) that upon being signed by the purchaser, the comptroller is authorized to provide a copy of the certificate to the state of intended use and registration.(f) Form of a Texas Motor Vehicle Sales Tax Exemption Certificate. The comptroller adopts the certificate by reference. Copies are available for inspection at the office of the Texas Register or may be obtained from the Comptroller of Public Accounts, Tax Administration Division, 111 West Sixth Street, Austin, Texas 78701-2913. Copies may also be requested by calling our toll-free number 1-800-252-5555. In Austin, call (512) 463-4600. (From a Telecommunication Device for the Deaf (TDD) only, call 1-800-248-4099 toll free. In Austin, the local TDD number is (512) 463-4621.)",
            "sourceNote": "Source Note: The provisions of this §3.90 adopted to be effective February 13, 1984, 9 TexReg 580; amended to be effective December 19, 1984, 9 TexReg 614; amended to be effective November 24, 1987, 12 TexReg 4196; amended to be effective November 24, 1987, 12 TexReg 4196; amended to be effective May 25, 1995, 20 TexReg 3572."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19742&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19742",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.94",
                "label": "Filing Reports"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3802&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "3802",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definition of place of sale. Place of sale means the county in which the application for certificate of title is filed.(b) Monthly filing. The motor vehicle sales taxes on amounts received on seller-financed sales and rentals are due and payable on or before the 20th day of the month following the end of each calendar month. Returns must be filed on a monthly basis unless a taxpayer qualifies as a quarterly filer or prepays tax on a quarterly basis. See subsections (c) and (d)(3) of this section.(c) Quarterly filing. A taxpayer who owes less than $1,500 in tax for any calendar quarter is required to file a return and pay the tax on or before the 20th day of the month following the end of the calendar quarter.(d) Filing the return.(1) The return for each reporting period must reflect the total receipts and taxable receipts for each county in which sales occurred. The 0.5% discount for timely filing and payment may be claimed on the return for each reporting period and computed on the amount timely reported and paid with that return.(2) The comptroller will make forms available to all persons required to file returns. The failure of a taxpayer to obtain the forms will not relieve the taxpayer from the requirement to file and remit the tax timely.(3) Prepayments may be made by taxpayers who file monthly or quarterly returns. The amount of the prepayment must be a reasonable estimate of the state and local tax liability for the entire reporting period. \"Reasonable estimate\" means at least 90% of the total amount due or an amount equal to the actual net tax liability due and paid for the same reporting period of the immediately preceding year.(A) The monthly prepayment is due on or before the 15th day of the month for which the prepayment is made. Prepayments earn an additional 1.25% discount.(B) The quarterly prepayment is due on or before the 15th day of the second month of the quarter for which the tax is due. Prepayments earn an additional 1.25% discount each quarter.(4) A remittance that is less than a reasonable estimate as required by paragraph (3) of this subsection will not be regarded as a prepayment. The 1.25% discount will not be allowed. If the taxpayer owes more than $1,500 in a calendar quarter, the taxpayer will be regarded as a monthly filer. All monthly reports not filed because of the invalid prepayment will be subject to late filing penalty and interest.(5) Filing late payments or filing late returns will cause all discounts to be disallowed and penalties for late filing or payment will be imposed. Reports filed late will result in disallowance of the prepayment discount.",
            "sourceNote": "Source Note: The provisions of this §3.94 adopted to be effective May 3, 1994, 19 TexReg 2959."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3802&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "3802",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.95",
                "label": "Motor Vehicle Sales Tax Resale Certificate; Sales for Resale"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198252&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "198252",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Sale for resale. A sale for resale is not taxable. A sale for resale is a sale of a motor vehicle to a purchaser who is a dealer who holds a general distinguishing number issued under Article 6686, Revised Statutes, as amended, and the Transportation Code, Chapter 503; and(1) holds the motor vehicle exclusively for resale; or(2) operates the motor vehicle with metal dealer plates in accordance with Article 6686, Revised Statutes, as amended, and the Transportation Code, Chapter 503.(b) Acceptance of resale certificate.(1) A motor vehicle seller must document a sale for resale by obtaining from the purchaser a properly completed resale certificate. A properly completed resale certificate contains the information required by subsection (e) of this section.(2) The seller must retain properly executed Motor Vehicle Sales Tax Resale Certificates at the seller's principal office for at least four years from the date of sale.(c) Blanket resale certificate. A blanket Motor Vehicle Sales Tax Resale Certificate may be provided to a seller by a purchaser who purchases from that seller only motor vehicles for resale. The seller may rely on the blanket certificate until it is revoked in writing. The information required in subsection (e)(2) of this section is not required for a blanket resale certificate. However, vehicle identification information for vehicles sold under blanket certificates must be retained by the seller.(d) Use of a motor vehicle purchased for resale. A motor vehicle purchased for resale may be operated with metal dealer plates in accordance with Article 6686, Revised Statutes, as amended, and the Transportation Code, Chapter 503. Motor vehicle sales tax imposed in the Tax Code, §152.021, will be due on a motor vehicle purchase by a dealer who operates a motor vehicle with a metal dealer plate if the dealer does not hold a general distinguishing number of the category to sell that vehicle, or if the motor vehicle is operated with other registration. Motor vehicle dealers should be aware of the restrictions of their dealer's license issued by the Motor Vehicle Board of the Texas Department of Transportation. Only the holder of a valid franchised dealer's license for a particular make or makes, may operate that make new motor vehicle with a metal dealer's license plates.(e) Content of a Motor Vehicle Sales Tax Resale Certificate. Except as provided in subsection (c) of this section, the resale certificate must show:(1) the name and address of the purchaser;(2) a description of the vehicle being purchased (including the vehicle identification number, make of vehicle, and year model);(3) the signature of the purchaser and the date;(4) the name and address of the seller; and(5) the purchaser's general distinguishing number issued by the Texas Department of Transportation.(f) Form of a Motor Vehicle Sales Tax Resale Certificate. The resale certificate may be combined with related sale transaction documents that are provided to the seller. The comptroller adopts the certificate by reference. Copies are available for inspection at the office of the Texas Register or may be obtained from the Comptroller of Public Accounts, Tax Administration Division, 111 West 6th Street, Austin, Texas 78701-2913. Copies may also be requested by calling our toll-free number 1-800-252-5555. In Austin, call 463-4600. (From a Telecommunication Device for the Deaf (TDD) only, call 1-800-248-4099 toll free. In Austin, the local TDD number is 463-4621.)",
            "sourceNote": "Source Note: The provisions of this §3.95 adopted to be effective May 15, 1996, 21 TexReg 3945."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198252&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "198252",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "MOTOR VEHICLE SALES TAX"
            },
            "rule": {
                "number": "§3.96",
                "label": "Imposition and Collection of a Surcharge on Certain Diesel Powered Motor Vehicles"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210423&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "210423",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meaning, unless the context clearly indicates otherwise. (1) Motor vehicle subject to surcharge--An on-road motor vehicle that is diesel powered and registered with a gross vehicle weight in excess of 14,000 pounds; the surcharge does not apply to a recreational vehicle, as that term is defined by Transportation Code, §522.004(b), that is not held or used for the production of income. See §3.320 of this title (relating to Texas Emissions Reduction Plan Surcharge; Off-Road, Heavy-Duty Diesel Equipment) for information about the imposition of the surcharge to certain equipment. (2) Lease--An agreement, other than a rental, whereby an owner of a motor vehicle gives exclusive use of the vehicle to another for consideration for a period that is more than 180 days. (3) Rental--An agreement whereby: (A) the owner of a motor vehicle gives exclusive use of the vehicle to another for consideration for a period that is 180 days or less; (B) the original manufacturer of a motor vehicle gives exclusive use of the motor vehicle to another for consideration; or (C) the owner of a motor vehicle gives exclusive use of the vehicle to another for re-rental purposes. (4) Surcharge--A fee imposed on a retail sale or use in this state of a motor vehicle described in paragraph (1) of this subsection. The surcharge is imposed by Tax Code, §152.0215, for the benefit of the Texas Emission Reduction Plan Fund as provided in Health and Safety Code, §386.251. (b) Payment, calculation, collection and remittance. Except as provided in subsection (c) of this section, the surcharge is paid, calculated, collected, and remitted in the same manner as the tax imposed on a Texas sale as provided in Tax Code, Chapter 152, and §3.74 of this title (relating to Seller Responsibility). The fee is 1.0% of the total consideration paid for a motor vehicle subject to surcharge that is a model year 1997 or later, or 2.5% on a motor vehicle subject to surcharge that is a model year 1996 or earlier. (c) Motor vehicles purchased for rental or lease. (1) Rental. A person who purchases or brings into Texas a motor vehicle for rental must pay the surcharge at the time of registration and titling. Payment of the surcharge cannot be deferred even if the purchaser is allowed to defer the motor vehicle sales and use tax. The surcharge is not due on the rental receipts paid to the motor vehicle owner. (2) Lease. A person who purchases or brings into Texas a motor vehicle for lease must pay the surcharge based on the total consideration paid by the owner at the time of registration and titling. The surcharge is not due on the lease receipts paid to the motor vehicle owner. (d) A motor vehicle subject to surcharge that is brought into Texas for use by a new resident of this state is subject to the surcharge. (e) Exemptions. The exemptions provided in Tax Code, Subchapter E, Chapter 152, apply to the surcharge. (f) The surcharge may not be offset by sales or use tax paid to other states on the purchase of a motor vehicle subject to surcharge. (g) Expiration. The surcharge expires on the last day of the state fiscal biennium during which the Texas Commission on Environmental Quality publishes in the Texas Register  the notice required by Health and Safety Code, §382.037.",
            "sourceNote": "Source Note: The provisions of this §3.96 adopted to be effective January 3, 2002, 26 TexReg 11034; amended to be effective June 1, 2004, 29 TexReg 5410; amended to be effective January 26, 2009, 34 TexReg 432; amended to be effective August 10, 2015, 40 TexReg 5063; amended to be effective February 5, 2020, 45 TexReg 763."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198981&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "198981",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "FF",
                "label": "SPECIAL FEE ON CERTAIN CIGARETTES AND CIGARETTE TOBACCO PRODUCTS"
            },
            "rule": {
                "number": "§3.751",
                "label": "Special Fee on Certain Cigarettes and Cigarette Tobacco Products; Definitions, Imposition of Fee, and Reports"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=119769&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "119769",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Brand family--Each style of cigarettes or cigarette tobacco products sold under the same trademark. The term includes any style of cigarettes or cigarette tobacco products that have a brand name, trademark, logo, symbol, motto, selling message, recognizable pattern of colors, or other indication of product identification that is identical to, similar to, or identifiable with a previously known brand of cigarettes or cigarette tobacco products.(2) Cigarette--A roll for smoking that is made of tobacco or tobacco mixed with another ingredient, wrapped or covered  with a material other than tobacco, and is not a cigar.(3) Cigarette tobacco product--Roll-your-own (RYO) tobacco or tobacco that, because of the tobacco's appearance, type, packaging, or labeling, is suitable for use in making cigarettes and is likely to be offered to or purchased by a consumer for that purpose.(4) Credit amendment--An amendment to the master settlement agreement that offers a credit to subsequent participating manufacturers for fees paid under this section with respect to their products in a form agreed on by settling states, as defined in the master settlement agreement, with aggregate allocable shares, as defined in the master settlement agreement, equal to at least 99.937049%; by the original  participating manufacturers, as defined in the master settlement agreement; and by subsequent participating manufacturers whose aggregate market share, expressed as a percentage of the total number of individual cigarettes sold in the United States, the District of Columbia, and Puerto Rico during the calendar year at issue, as measured by excise taxes collected by the federal government, and in the case of cigarettes sold in Puerto Rico, by arbitrios de cigarillos collected by the Puerto Rico taxing authority, is greater than 2.5%. For purposes of the calculation of subsequent participating manufacturer market share under this subchapter, 0.09 ounces of roll-your-own tobacco constitutes one cigarette.(5) Distributor--A person who is authorized to purchase  cigarettes in unstamped packages or receives untaxed tobacco products for the purpose of making a first sale in this state from manufacturers; a person who is authorized to stamp cigarette packages; a person who ships, transports, or imports cigarettes or tobacco products into this state; a person who acquires, possesses, and makes a first sale of cigarettes or tobacco products in this state; or a person who manufactures or produces cigarettes or tobacco products.(6) Fee or monthly fee--The fee imposed under Health and Safety Code, §161.603 (Fee Imposed).(7) Manufacturer--A person who manufactures, fabricates, or assembles cigarettes or cigarette tobacco products, or causes or arranges for the manufacture, fabrication, or  assembly of cigarettes or cigarette tobacco products, for sale or distribution. The term also includes a person who is the first importer into the United States of cigarettes or cigarette tobacco products manufactured, fabricated, or assembled outside the United States.(8) Master settlement agreement--The settlement agreement entered into on November 23, 1998, by 46 states and leading United States tobacco manufacturers, as amended as of September 1, 2013. Texas is not a party to the master settlement agreement.(9) Non-settling manufacturer--A manufacturer of cigarettes or cigarette tobacco products that did not sign a Texas tobacco settlement agreement.(10) Non-settling manufacturer  cigarettes--Cigarettes manufactured, fabricated, assembled, or imported into the United States by a non-settling manufacturer.(11) Non-settling manufacturer cigarette tobacco products--Cigarette tobacco products manufactured, fabricated, assembled, or imported into the United States by a non-settling manufacturer.(12) Settling manufacturer--A manufacturer of cigarettes or cigarette tobacco products that signed a Texas tobacco settlement agreement.(13) Subsequent participating manufacturer--Tobacco manufacturers that signed on to the master settlement agreement on or after November 23, 1998, and that have not signed a Texas tobacco settlement agreement. For purposes of this section, a subsequent participating  manufacturer is also a non-settling manufacturer. A manufacturer may not be treated as a subsequent participating manufacturer for purposes of this section unless it has provided to the comptroller notice and proof, in the form and manner the comptroller may prescribe, that it is a subsequent participating manufacturer.(14) Texas tobacco settlement agreement--This term means either:(A) the Comprehensive Settlement Agreement and Release filed on January 16, 1998, in the United States District Court, Eastern District of Texas, in the case styled The State of Texas v. The American Tobacco Co., et al., No. 5-96CV-91, and all subsequent amendments; or(B) the settlement agreement entered into on March 20, 1997,  regarding the matter described in subparagraph (A) of this paragraph, but only as to companies that signed that agreement on that date.(b) Fee imposed. A fee is imposed on the sale, use, consumption, or distribution in this state of non-settling manufacturer cigarettes and non-settling manufacturer cigarette tobacco products. The fee is in addition to any other privilege, license, fee, or tax required or imposed by state law. The fee shall be collected only once on each cigarette or cigarette tobacco product on which it is due. Except as otherwise provided by this section, Tax Code, Chapter 154 (Cigarette Tax) or 155 (Cigars and Tobacco Products Tax) governs the imposition, collection, payment, administration, and enforcement of  the fee in the same manner as the taxes imposed by those chapters, as appropriate.(c) Fee exempt. The fee does not apply to cigarettes or cigarette tobacco products:(1) that a settling manufacturer claims as its own and that are included in computing payments to be made by that settling manufacturer under a Texas tobacco settlement agreement; or(2) that are sold into another state for resale to consumers outside of this state, provided that the sale is reported to the state into which the cigarettes are sold under 15 U.S.C. Section 376 (Reports to State Tobacco Tax Administrator).(d) Fee rate increases. Beginning in January 2014, and in January of each following year, the  comptroller shall compute the rate of the fee applicable during that calendar year by increasing the rate for the preceding calendar year by the greater of three percent or the actual total annual percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) for December, as published by the Bureau of Labor Statistics of the United States Department of Labor. The new computed rate will take effect February 1st of each year and be valid for 12 consecutive months.(e) Allowance of credit for fee. A distributor claiming, under Tax Code Chapters 154 and 155, an authorized cigarette or tobacco tax credit for products subject to the fee may take a fee credit in the same reporting period.(f) Distributor's report,  payment of monthly fee, and cigarette stamping allowance.(1) On or before the last day of each month on the comptroller's website, the comptroller shall publish and maintain a list of the names and brand families of settling manufacturers, non-settling manufacturers, subsequent participating manufacturers, and the effective date of any credit amendment, if any has been adopted.(2) A distributor filing a required report under Tax Code, §154.210 (Distributor's Report) or §155.111 (Distributor's Report), shall, in addition to the information required by those sections, include summary data in the required reports and remit the fee. Distributors shall electronically, in the prescribed comptroller format, provide the detailed  information required by Health and Safety Code, §161.605 (Distributor's Report and Payment of Monthly Fee). All cigarette and tobacco distributor reports and payments must be filed on or before the 25th day of each month following the month in which the transactions take place.(3) A distributor is entitled to an additional stamping allowance of 0.5% of the face value of all stamps purchased under Tax Code, §154.041 (Stamp Required), for providing the service of affixing stamps to cigarette packages; remitting the fee; and filing required reports. The maximum cigarette stamping allowance is 3.0% of the face value of all stamps purchased.(g) Report to attorney general. Non-settling manufacturers offering or  planning to offer cigarettes or cigarette tobacco products for sale or distribution in Texas must report, on form prescribed by the attorney general, to the attorney general. Reported information will be made available to the comptroller.(h) Penalties for noncompliance. Tax Code, Chapter 154 or 155, as appropriate, will be the basis for penalties in administering violations of Health and Safety Code, Chapter 161, Subchapter V (Fee on Cigarettes and Cigarette Tobacco Products Manufactured By Certain Companies).(i) Audit or inspection. The comptroller or attorney general is entitled to conduct reasonable periodic audits or inspections of the financial records of a non-settling manufacturer and its distributors to ensure  compliance.",
            "sourceNote": "Source Note: The provisions of this §3.751 adopted to be effective October 18, 2015, 40 TexReg 7097; amended to be effective February 11, 2020, 45 TexReg 918."
        },
        {
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            "currentRecordId": "210423",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "G",
                "label": "CIGARETTE TAX"
            },
            "rule": {
                "number": "§3.101",
                "label": "Cigarette Tax and Stamping Activities"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Bonded agent--A person in this state who is a third-party agent of a manufacturer outside this state and who receives cigarettes in interstate commerce and stores the cigarettes for distribution or delivery to distributors under orders from the manufacturer.(2) Cigar--A roll of fermented tobacco that is wrapped in tobacco and the main stream of smoke from which produces an alkaline reaction to litmus paper.(3) Cigarette--A roll for smoking:(A) that is made of tobacco or tobacco mixed with another ingredient and wrapped or covered with a material other than tobacco; and(B) that is not a cigar.(4) Distributor--A person who:(A) is authorized to purchase for the purpose of making a first sale in this state, cigarettes in unstamped packages from manufacturers who distribute cigarettes in this state and to stamp cigarette packages;(B) ships, transports, imports into this state, acquires, or possesses cigarettes and makes a first sale of the cigarettes in this state;(C) manufactures or produces cigarettes; or(D) is an importer.(5) Export warehouse--A person in this state who receives cigarettes in unstamped packages from manufacturers and stores the cigarettes for the purpose of making sales to authorized persons for resale, use, or consumption outside the United States.(6) First sale--Except as otherwise provided in this section;(A) the first transfer of possession in connection with a purchase, sale, or any exchange for value of cigarettes in or into this state, which:(i) includes the sale of cigarettes by:(I) a distributor in or outside this state to a distributor, wholesaler, or retailer in this state; and(II) a manufacturer in this state who transfers the cigarettes in this state; and(ii) does not include;(I) the sale of cigarettes by a manufacturer outside this state to a distributor in this state;(II) the transfer of cigarettes from a manufacturer outside this state to a bonded agent in this state;(III) the sale of cigarettes by a manufacturer, bonded agent, distributor, or importer to an interstate warehouse in this state; or(IV) the transfer of cigarettes by an interstate warehouse in an interstate warehouse transaction;(B) the first use or consumption of cigarettes in this state; or(C) the loss of cigarettes in this state whether through negligence, theft, or other unaccountable loss.(7) Individual package of cigarettes--A package that contains at least 20 cigarettes.(8) Interstate warehouse--A person in this state who receives unstamped cigarettes from a manufacturer, bonded agent, distributor, or importer and stores the cigarettes exclusively for an interstate warehouse transaction.(9) Interstate warehouse transaction--The sale or delivery of cigarettes from an interstate warehouse to a person located in another state who is licensed or permitted by the other state to affix that state's cigarette stamps or otherwise pay the state's excise tax on cigarettes as required.(10) Manufacturer--A person who manufactures, fabricates, or assembles cigarettes, or causes or arranges for the manufacture, fabrication, or assembly of cigarettes, for sale or distribution.(11) Retailer--A person who engages in the business of selling cigarettes to consumers and includes the owner of a cigarette vending machine.(12) Stamp--Includes only a stamp that:(A) is printed, manufactured, or made by authority of the comptroller;(B) shows payment of the tax imposed by this chapter;(C) is consecutively numbered and uniquely identifiable as a Texas tax stamp; and(D) is not damaged beyond recognition as a valid Texas tax stamp.(13) Wholesaler--A person, including a manufacturer's representative, who sells or distributes cigarettes in this state for resale but who is not a distributor or interstate warehouse.(b) Imposition of tax.(1) A tax is imposed on a person who uses or disposes of cigarettes in this state. The tax rate is $70.50 per thousand on cigarettes weighing three pounds or less per thousand plus $2.10 per thousand on cigarettes weighing more than three pounds per thousand. The tax becomes due and payable when a person receives cigarettes to make a first sale. A person who pays the tax shall securely affix a stamp to each individual package of cigarettes to show payment of the tax. The ultimate consumer or user of cigarettes in this state bears the impact of the tax; and, if another person pays the tax, the amount of the tax is added to the price to the ultimate consumer or user. Absence of a stamp on an individual package of cigarettes is notice that the tax has not been paid.(2) Cigarettes are exempt from the imposition of tax and the stamping requirements described in this section if the cigarettes are:(A) contained in a package labeled with \"Experimental Use Only,\" \"Reference Cigarettes,\" or other similar wording indicating that the manufacturer intends for the product to be used exclusively for experimental purposes in compliance with Experimental Purposes, 27 C.F.R. §40.232 (2002);(B) sold directly by a manufacturer to a research facility in this state, including:(i) a laboratory, hospital, medical center, college, or university; or(ii) a facility designated as a Tobacco Center of Regulatory Science by the National Institutes of Health;(C) used by the research facility exclusively for experimental purposes; and(D) not resold by the research facility.(c) Liability of a permitted distributor. A permitted distributor who makes a first sale to a permitted distributor in this state is liable for and shall pay the tax.(d) Cigarette tax stamp meters. Cigarette distributors cannot use stamp metering machines as evidence of payment of the cigarette tax.(e) Cigarette tax stamp credits.(1) Allowance of credit for cigarette tax stamps. The comptroller may authorize credit for:(A) stamps that are affixed to cigarette packages that have been damaged or are unfit for sale and have been returned to the manufacturer in accordance with Tax Code, §154.306 (Exchange of Stamps);(B) stamps that have been destroyed by vandalism, fire, flood, or other natural disasters. The distributor must present evidence that such stamps were purchased by the distributor and were subsequently destroyed by such natural disaster;(C) stamps that have been erroneously affixed to cigarette carton flaps rather than the cigarette packages. The distributor must submit the stamped carton flaps to the comptroller in order to obtain credit. The comptroller will issue an authorization for refund of the tax with disallowance of the stamping discount;(D) stamps used to restamp cigarette packages provided that the original tax stamps were of an illegible quality and the restamping is required by the comptroller's office. There is no stamping allowance for restamped cigarettes; or(E) stamps that have been torn or otherwise damaged by a stamping machine. The distributor must submit the damaged stamps to the comptroller in order to obtain credit. The comptroller will notify the distributor of the amount of stamp credit authorized.(2) Disallowance of credit for cigarette tax stamps. The comptroller will not authorize credit for stamps lost due to theft, negligence, or any unaccountable loss or for stamps that have been affixed two or more times to the same package of cigarettes resulting in double stamping.(f) Cigarette tax stamp payments. All persons who purchase cigarette tax stamps from the comptroller shall transfer payments by electronic funds transfer.(g) Evidence of return of cigarettes unfit for use. A distributor who requests replacement of cigarette tax stamps affixed to cigarettes that have been returned to the manufacturer must submit the following documentation to the comptroller:(1) a credit memorandum from the manufacturer to whom the cigarettes were returned, verifying the number of cigarettes returned for credit;(2) an affidavit from the manufacturer confirming that the tax stamps affixed to the cigarettes listed in the memorandum have been destroyed and listing the number, denomination, and the value of such stamps; and(3) an affidavit from the distributor stating that the distributor returned the number of cigarettes listed in the manufacturer's credit memorandum and that the number, denomination, and the value of state cigarette tax stamps shown in the manufacturer's affidavit were affixed to the cigarettes returned.(h) Delivery of unstamped cigarettes to instrumentalities of the United States government.(1) Distributors may use their own vehicles to deliver previously invoiced quantities of unstamped cigarettes to instrumentalities of the United States government. These tax-free cigarettes must be packaged in a manner that prevents the unstamped cigarettes from commingling with any other cigarettes in the distributor's vehicle.(2) Each sale of unstamped cigarettes by a distributor to an instrumentality of the United States government shall be supported by a separate sales invoice and a properly completed federal exemption certificate. Sales invoices must be numbered and dated and must show the name of the seller, name of the purchaser, and the destination.(i) Generation and affixing of cigarette tax stamps by the Texas Alcoholic Beverage Commission (TABC).(1) The comptroller, by interagency cooperation contract, may authorize the TABC to generate a cigarette tax stamp using the TABC's Port of Entry Tax Collection System and to affix the cigarette tax stamp to cigarette packages for the purpose of collecting the cigarette tax at ports of entry into the state.(2) The TABC imposes a rate of $1.50 per pack for a conventional package of 20 cigarettes.(3) Payment for the cigarette tax stamps sold will be made by that agency according to the terms and conditions stipulated in the interagency cooperation contract between the comptroller and the TABC.(j) Affixing of cigarette tax stamps by TABC agents. Cigarette tax stamps affixed by agents of the TABC must be affixed to the cellophane wrapper on the bottom of each individual package of cigarettes.(k) Disposition of cigarettes seized by TABC agents.(1) TABC agents shall seize all cigarettes for which the holder refuses to pay the tax imposed by Tax Code, §154.021 (Imposition and Rate of Tax).(2) Cigarettes seized shall be released to agents of the comptroller for ultimate disposition.(l) Importation of cigarettes for personal use.(1) Only a person 21 years of age or older, a person who is at least 18 and in the United States military or State military forces, or a person who was born on or before August 31, 2001, may import and personally transport cigarettes into this state.(2) A person who imports and personally transports 200 or fewer cigarettes into this state from another state or an Indian reservation under the jurisdiction of the U.S. government, for personal use and not for sale, is not required to pay the tax imposed by Tax Code, §154.021.(3) TABC employees shall collect the tax imposed by Tax Code, §154.021, at ports of entry from each person who imports and personally transports more than 200 cigarettes into this state from another country.(4) TABC employees shall seize at ports of entry all cigarettes in the possession of a person younger than 21 years of age, unless the person is at least 18 and in the United States military or State military forces, or was born on or before August 31, 2001.",
            "sourceNote": "Source Note: The provisions of this §3.101 adopted to be effective June 5, 2003, 28 TexReg 4308; amended to be effective February 18, 2007, 32 TexReg 536; amended to be effective August 25, 2009, 34 TexReg 5749; amended to be effective March 20, 2018, 43 TexReg 1639; amended to be effective April 20, 2020, 45 TexReg 2565; amended to be effective October 23, 2022, 47 TexReg 6887."
        },
        {
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            "currentRecordId": "225929",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "G",
                "label": "CIGARETTE TAX"
            },
            "rule": {
                "number": "§3.102",
                "label": "Applications, Definitions, Permits, and Reports"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Agency--The Comptroller of Public Accounts of the State of Texas or the comptroller's duly authorized agents and employees. (2) Bonded agent--A person in this state who is a third-party agent of a manufacturer outside this state and who receives cigarettes in interstate commerce and stores the cigarettes for distribution or delivery to distributors under orders from the manufacturer.(3) Cigar--A roll of fermented tobacco that is wrapped in tobacco and the main stream of smoke from which produces an alkaline reaction to litmus paper.(4) Cigarette--A roll for smoking:(A) that is made of tobacco or tobacco mixed with another ingredient and wrapped or covered with a material other than tobacco; and(B) that is not a cigar.(5) Commercial business location--The entire premises occupied by a permit applicant or a person required to hold a permit under Tax Code, Chapter 154 (Cigarette Tax). A commercial business location cannot include a residence or a unit in a public storage facility.(6) Consumer--A person who possesses cigarettes for personal consumption.(7) Distributor--A person who:(A) is authorized to purchase, for the purpose of making a first sale in this state, cigarettes in unstamped packages from manufacturers who distribute cigarettes in this state and to stamp cigarette packages;(B) ships, transports, imports into this state, acquires, or possesses cigarettes and makes a first sale of the cigarettes in this state;(C) manufactures or produces cigarettes; or(D) is an importer.(8) Engage in business--A person engaging either directly or through a representative, in any of the following activities:(A) selling cigarettes in or into this state;(B) using a warehouse or another location to store cigarettes; or(C) otherwise conducting through a physical presence cigarette-related business in this state.(9) Export warehouse--A person in this state who receives cigarettes in unstamped packages from manufacturers and stores the cigarettes for the purpose of making sales to authorized persons for resale, use, or consumption outside the United States.(10) First sale--Except as otherwise provided in this section; (A) the first transfer of possession in connection with a purchase, sale, or any exchange for value of cigarettes in or into this state, which includes:(i) the sale of cigarettes by: (ii) a distributor in or outside this state to a distributor, wholesaler, or retailer in this state; and (iii) a manufacturer in this state who transfers the tobacco products in this state; and (iv) does not include:(I) the sale of cigarettes by a manufacturer outside this state to a distributor in this state;(II) the transfer of cigarettes from a manufacturer outside this state to a bonded agent in this state;(III) the sale of cigarettes by a manufacturer, bonded agent, distributor, or importer to an interstate warehouse in this state; or(IV) the transfer of cigarettes by an interstate warehouse in an interstate warehouse transaction;(B) the first use or consumption of cigarettes in this state; or(C) the loss of cigarettes in this state whether through negligence, theft, or other unaccountable loss. First sale also includes giving away cigarettes as promotional items.(11) Importer--A person who ships, transports, or imports into this state cigarettes manufactured or produced outside the United States for the purpose of making a first sale in this state.(12) Interstate warehouse--A person in this state who receives unstamped cigarettes from a manufacturer, bonded agent, distributor, or importer and stores the cigarettes exclusively for an interstate warehouse transaction.(13) Interstate warehouse transaction--The sale or delivery of cigarettes from an interstate warehouse to a person located in another state who is licensed or permitted by the other state to affix that state's cigarette stamps or otherwise pay the state's excise tax on cigarettes as required.(14) Manufacturer--A person who manufactures, fabricates, or assembles cigarettes, or causes or arranges for the manufacture, fabrication, or assembly of cigarettes, for sale or distribution.(15) Manufacturer's representative--A person employed by a manufacturer to sell or distribute the manufacturer's stamped cigarette packages.(16) Permit--Any agency license, certificate, approval, registration, or similar form of permission required by law to buy, sell, stamp, store, transport, or distribute cigarettes. A permit includes a vending machine decal.(17) Permit holder--A person who has been issued a bonded agent, interstate warehouse, distributor, importer, export warehouse, manufacturer, wholesaler, or retailer permit under Tax Code, §154.101 (Permits).(18) Place of business--(A) a commercial business location where cigarettes are sold;(B) a commercial business location where cigarettes are kept for sale or consumption or otherwise stored;(C) a vehicle from which cigarettes are sold; or(D) a vending machine from which cigarettes are sold.(19) Retailer--A person who engages in the business of selling cigarettes to consumers. The owner of a cigarette vending machine is a retailer.(20) Stamp--Includes only a stamp that:(A) is printed, manufactured, or made by authority of the comptroller;(B) shows payment of the tax imposed by Tax Code, §154.021 (Imposition and Rate of Tax);(C) is consecutively numbered and uniquely identifiable as a Texas cigarette tax stamp; and(D) is not damaged beyond recognition as a valid Texas tax stamp.(21) Wholesaler--A person, including a manufacturer's representative, who sells or distributes cigarettes in this state for resale. A wholesaler is not a distributor.(b) Permits required.(1) To engage in business as a distributor, importer, manufacturer, export warehouse, wholesaler, bonded agent, interstate warehouse, or retailer, a person must apply for and receive the applicable permit from the comptroller. The permits are not transferable. A new application is required if a change in ownership occurs (sole ownership to partnership, sole ownership to corporation, partnership to limited liability company, etc.). Each legal entity must apply for its own permit(s). All permits issued to a legal entity will have the same taxpayer number. Tax Code, §154.501(a)(2) (Penalties), provides that a person who engages in the business of a bonded agent, interstate warehouse, distributor, importer, manufacturer, export warehouse, wholesaler, or retailer without a valid permit is subject to a penalty of not more than $2,000 for each violation. Tax Code, §154.501(c), provides that a separate offense is committed each day on which a violation occurs.(2) Each distributor, importer, manufacturer, export warehouse, wholesaler, bonded agent, interstate warehouse, or retailer shall obtain a permit for each place of business owned or operated by the distributor, importer, manufacturer, wholesaler, bonded agent, interstate warehouse, or retailer. A new permit shall be required for each physical change in the location of the place of business. Correction or change of street listing by a city, state, or U.S. Post Office shall not require a new permit so long as the physical location remains unchanged.(3) Permits are valid for one place of business at the location shown on the permit. If the location houses more than one place of business under common ownership, an additional permit is required for each separate place of business. For example, each retailer who operates a cigarette vending machine shall place a retailer's permit on the machine.(4) A vehicle from which cigarettes are sold is considered to be a place of business and requires a permit. A motor vehicle permit is issued to a distributor or wholesaler holding a current permit. Vehicle permits are issued bearing a specific motor vehicle identification number and are valid only when physically carried in the vehicle having the corresponding motor vehicle identification number. Vehicle permits may not be moved from one vehicle to another. No cigarette permit is required for a vehicle used only to deliver invoiced cigarettes.(5) The comptroller may issue a combination permit for cigarettes and tobacco products to a person who is a distributor, importer, manufacturer, wholesaler, bonded agent, interstate warehouse, or retailer as defined by Tax Code, Chapter 154 and Chapter 155 (Cigars and Tobacco Products Tax). A person who receives a combination permit pays only the higher of the two permit fees. (6) The comptroller will not issue a permit for a residence or a unit in a public storage facility because cigarettes may not be stored at such places.(7) A permit is not required for a research facility that possesses and only uses cigarettes for experimental purposes.(8) A person who engages in the business of selling cigarettes for commercial purposes who provides a roll-your-own machine that is available for use by consumers must obtain a manufacturer's, distributor's and a retailer's permit.(9) The comptroller may not issue a distributor's permit and an interstate warehouse permit to the same location. (10) A person who engages in the business of importing cigarettes from a foreign country into Texas is required to be permitted as a cigarette distributor. (c) Sales and purchase requirements for permit holders. Except for retail sales to consumers, cigarettes may only be sold or distributed by and between permit holders as provided by this section. A permit holder may engage in the following business activities:(1) A manufacturer outside this state who is not a permitted distributor may sell cigarettes only to a permitted distributor or interstate warehouse.(2) A permitted distributor may sell cigarettes only to a permitted distributor, wholesaler, or retailer. A permitted distributor who manufactures or produces cigarettes in this state may sell those cigarettes to a permitted interstate warehouse.(3) A permitted importer may sell cigarettes only to a permitted interstate warehouse, distributor, wholesaler, or retailer. (4) A permitted wholesaler may sell cigarettes only to a permitted distributor, wholesaler, or retailer.(5) A permitted retailer may sell cigarettes only to the consumer and may purchase cigarettes only from a permitted distributor or wholesaler.(6) A permitted export warehouse may sell cigarettes only to persons authorized to sell or consume unstamped cigarettes outside the United States.(7) A manufacturer's representative may sell cigarettes only to a permitted distributor, wholesaler, or retailer.(8) A permitted interstate warehouse may sell cigarettes only in an interstate warehouse transaction. An interstate warehouse may not make an intrastate sale of cigarettes without written authorization by the comptroller.(d) Permit period.(1) Bonded agent, interstate warehouse, distributor, importer, manufacturer, wholesaler, and motor vehicle permits expire on the last day of February of each year. (2) Retailer permits expire on the last day of May of each even-numbered year.(e) Permit fees. An application for a bonded agent, interstate warehouse, distributor, manufacturer, wholesaler, motor vehicle, or retailer permit must be accompanied by the appropriate fee. The permit fee payment must be made in cash, by money order, check, or credit card.(1) The permit fee for a bonded agent is $300.(2) The permit fee for an interstate warehouse is $300.(3) The permit fee for a distributor is $300.(4) The permit fee for a manufacturer with representation in Texas is $300.(5) The permit fee for a wholesaler is $200.(6) The permit fee for a motor vehicle is $15. (7) The permit fee for a retailer permit is $180.(8) No permit fee is required to obtain an importer or an export warehouse permit.(9) A $50 fee is assessed for failure to obtain a permit in a timely manner.(10) The comptroller prorates the permit fee for new permits according to the number of months remaining in the permit period. If a permit will expire within three months of the date of issuance, the comptroller may collect the prorated permit fee for the current permit period and the total permit fee for the next permit period.(11) A person issued a permit for a place of business that permanently closes before the permit expiration date is not entitled to a refund of the permit fee.(f) Permit issuance, denial, suspension, or revocation.(1) The comptroller shall issue a permit to a distributor, importer, manufacturer, export warehouse, wholesaler, bonded agent, interstate warehouse or retailer if the comptroller receives an application and any applicable fee, believes that the applicant has complied with Tax Code, §154.101, and determines that issuing the permit will not jeopardize the administration and enforcement of Tax Code, Chapter 154.(2) If the comptroller determines that an existing permit should be suspended or revoked or a permit should be denied because of the applicant's prior conviction of a crime and the relationship of the crime to the license, the comptroller will notify the applicant or permittee in writing by personal service or by mail of the reasons for the denial, suspension, revocation, or disqualification, the review procedure provided by Occupations Code, §53.052 (Judicial Review), and the earliest date that the permit holder or applicant may appeal the denial, suspension, revocation, or disqualification.(3) The comptroller will not issue a permit for an applicant who is under the age of 21.(g) Reports.(1) Manufacturer reports must be filed on or before the 25th day of each month for transactions that occurred during the preceding month.(2) All cigarette distributor and wholesaler reports and payments must be filed on or before the 25th day of each month for transactions that occurred during the preceding month.(3) All wholesaler and distributor reports of sales to retailers required by the comptroller under Tax Code, §154.212 (Reports by Wholesalers and Distributors of Cigarettes), shall be filed in accordance with §3.9 of this title (relating to Electronic Filing of Returns and Reports; Electronic Transfer of Certain Payments by Certain Taxpayers).",
            "sourceNote": "Source Note: The provisions of this §3.102 adopted\r\nto be effective June 3, 2003, 28 TexReg 4309; amended to be effective\r\nDecember 2, 2007, 32 TexReg 8520; amended to be effective May 21,\r\n2013, 38 TexReg 3055; amended to be effective September 19, 2018,\r\n43 TexReg 5985; amended to be effective March 16, 2020, 45 TexReg\r\n1858; amended to be effective March 1, 2023, 48 TexReg 1150; amended\r\nto be effective August 24, 2025, 50 TexReg 5471."
        },
        {
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            "title": {
                "number": "34",
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                "number": "1",
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            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "GG",
                "label": "INSURANCE TAX"
            },
            "rule": {
                "number": "§3.809",
                "label": "Due Dates, Penalty and Interest, and Overpayments"
            },
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                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Premium and Maintenance Tax Return due date. The premium tax and maintenance tax return for each taxable year that ends the preceding December 31st shall be filed and the total amount of tax due shall be paid on or before the 1st day of March of each year or if a company is required to file an annual statement after March 1, the premium tax and maintenance tax report is required to be filed at that time.  (b) Premium tax prepayments. All Texas licensed insurers with a net tax liability for the previous calendar year in excess of $1000 must prepay premium tax semiannually.  (1) A semiannual prepayment of premium tax must be made on March 1, or at the same time that the annual statement is required to be filed, and on August 1. Each prepayment shall equal the lesser of one-half of the net premium tax due for the previous calendar year, or one-half of the current year's net premium tax due. If no premium tax was due during the previous calendar year, the prepayment will be based on the net tax that would be owed on the aggregate of premiums for the two previous calendar quarters based on the minimum tax rate specified by law.  (2) The amount due is the lesser of the net premium tax due from the previous year, or the actual net premium tax due for the current year multiplied by 50%.  (3) Because examination expense credits, valuation fee credits, and guaranty association assessment credits have been factored into the net premium tax due line item on the annual tax report, the prepayment amount should not be adjusted to reflect these credits.  (c) Penalty and interest. Late payment or underpayment of any insurance tax, assessment, or fee will result in the application of penalty and interest.  (1) Late payment. Failure to file and pay taxes, assessments, and fees by the due date as provided under the Insurance Code will subject a taxpayer to penalty and interest under Tax Code, Title 2, Subtitles A and B.  (2) Underpayment. Failure to file and pay taxes, assessments, and fees, as provided under Insurance Code, Article 4.10, §6(b), Article 4.11, §13(a), and Article 9.59, §3(b), will subject a taxpayer to penalty and interest under Tax Code, Title 2, Subtitles A and B, on the difference between the amount of semiannual prepayment tax actually paid and the net premium tax due.  (3) Penalty. A 5.0% penalty is due on the amount of any insurance tax, assessment, or fee that is not paid when due. If any of the taxes, assessments, or fees are not paid within 30 days after the due date, an additional 5.0% penalty is imposed on the amount that remains unpaid. (4) Interest. Delinquent taxes accrue interest beginning 60 days after the due date. For example, if payment is made on the 61st day after the due date, one day's interest is due. For reports due on or after January 1, 2000, the annual rate of interest on delinquent taxes is the prime rate plus one percent, as published in the Wall Street Journal  on the first day of each calendar year that is not a Saturday, Sunday, or legal holiday.  (d) Overpayment of tax liability. Commencing with the tax return due on March 1, 1995, if the sum of the semiannual prepayments exceeds the net premium tax due as determined by the accurate and correct filing of the original or amended annual tax return, the overpayment will be automatically refunded or credited to the taxpayer unless the taxpayer notifies the comptroller in writing to apply the overpayment to another period or unless the taxpayer's account reflects an outstanding liability in any other tax collected by the comptroller. (e) Interest on refunds. Under Tax Code, Title 2, a refund granted for a report due on or after January 1, 2000, for an amount found to be erroneously paid, will include interest at the same variable interest rate charged on delinquent taxes. The applicable interest rate is 1.0% plus the prime rate as published in the Wall Street Journal    on the first business day of each year. Interest accrues beginning the later of 60 days after the date of payment or the due date of the tax report. A refund for a report due before January 1, 2000 does not accrue interest. Interest does not accrue on a credit taken on a taxpayer's report.",
            "sourceNote": "Source Note: The provisions of this §3.809 adopted to be effective December 6, 1996, 21 TexReg 11519; amended to be effective May 1, 2005, 30 TexReg 2401."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=162465&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "162465",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "GG",
                "label": "INSURANCE TAX"
            },
            "rule": {
                "number": "§3.811",
                "label": "Election by Reciprocal or Interinsurance Exchange Pursuant to Insurance Code, Chapter 224"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19813&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19813",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Reciprocal or interinsurance exchanges authorized under Insurance Code, Chapter 942, are subject to premium and maintenance taxes as are all other insurance carriers. A reciprocal or interinsurance exchange is subject to the tax imposed under Insurance Code, Chapter 224 unless it elects to be subject to the tax imposed under Insurance Code, Chapter 221.(1) To make the election, a reciprocal or interinsurance exchange must submit a statement in writing on a form prescribed by the comptroller making such an election. The comptroller has developed form 25-208 for this purpose. This form must be filed no later than the 31st day before the beginning of the tax year for which the election is to be effective. For example, to be taxed under Insurance Code, Chapter 221 for the 2012 tax year, the reciprocal or interinsurance exchange must have filed this form by December 1, 2011.(2) A reciprocal or interinsurance exchange that elects to be taxed under Insurance Code, Chapter 221, will continue to be taxed under that article for each tax year until written notice is given to the comptroller that the election is withdrawn. The comptroller has developed form 25-208 for this purpose. The notice of withdrawal must be filed with the comptroller not later than the 31st day before the beginning of the tax year for which the withdrawal is to be effective.(3) Form 25-208 is available on the comptroller's website at: http://www.window.state.tx.us/taxinfo/taxforms/25-forms.html.(b) If a reciprocal or interinsurance exchange does not file an election as provided by this section or has withdrawn the election, the reciprocal or interinsurance exchange is subject to tax using the rate imposed under Insurance Code, Chapter 224.(c) Insurance Code, Chapter 221, imposes an annual tax equal to 1.6% of the gross premium receipts of licensed insurance carriers and reciprocal or interinsurance exchanges that have filed an election to be taxed under this chapter.(d) Insurance Code, Chapter 224, imposes an annual tax equal to 1.7% of the gross premium receipts of each reciprocal or interinsurance exchange that has not filed an election or that has withdrawn a prior election to be taxed under Insurance Code, Chapter 221.(e) Except as provided by subsection (d) of this section, Insurance Code, Chapter 221 applies to the imposition, computation, and administration of the tax imposed by Insurance Code, Chapter 224 in the same manner that Insurance Code, Chapter 221 applies to the tax imposed by that Chapter.(f) Failure to file and pay taxes as provided under Insurance Code, Chapter 221 or Chapter 224 will subject the taxpayer to penalty and interest under Tax Code, Title 2, Subtitles A and B.",
            "sourceNote": "Source Note: The provisions of this §3.811 adopted to be effective June 6, 1990, 15 TexReg 2912; transferred effective September 1, 1993, as published in the Texas Register, October 19, 1993, 18 TexReg 7295; amended to be effective November 23, 1995, 20 TexReg 9446; amended to be effective June 26, 2000, 25 TexReg 6151; amended to be effective November 25, 2007, 32 TexReg 8318; amended to be effective July 1, 2013, 38 TexReg 4186."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19813&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19813",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "GG",
                "label": "INSURANCE TAX"
            },
            "rule": {
                "number": "§3.820",
                "label": "Premium Tax Paid by Certain Purchasing Groups"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190464&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "190464",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Purchasing groups must pay a 4.85% premium tax on all insurance procured from a company not licensed to do business in this state where all negotiation and procurement of the policy occurs outside of this state. The purchasing group must file a report and pay a premium tax on premiums paid by the purchasing group or a purchasing group member for coverage of all risks located in this state. The report, which must be filed on forms provided by the comptroller, and the taxes are due by March 1 of each year, based on insurance procured in the previous calendar year.(b) Taxes on insurance obtained through negotiation and procurement occurring in whole or in part within this state with an unlicensed company must be paid by the insurer. If the state is unable to collect the tax from the insurer, the purchasing group will be secondarily liable and must pay the tax.(c) To the extent that a purchasing group or its members pay premiums to a licensed company, registered risk retention group, or licensed surplus lines agent in this state, the purchasing group is not liable for the direct payment of tax on such premiums to the state.(d) Membership fees collected from purchasing group members and not paid to insurance companies or surplus lines agents are not subject to premium tax when coverage is obtained from a licensed company or surplus lines agent.(e) Membership fees collected from purchasing group members should not be included in the tax base when the purchasing group files and reports the premium tax as independently procured.",
            "sourceNote": "Source Note: The provisions of this §3.820 adopted to be effective March 8, 1991, 16 TexReg 1290; transferred effective September 1, 1993, as published in the Texas Register, October 19, 1993, 18 TexReg 7295; amended to be effective November 23, 1995, 20 TexReg 9446."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190464&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "190464",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "GG",
                "label": "INSURANCE TAX"
            },
            "rule": {
                "number": "§3.822",
                "label": "Basis and Reporting of Surplus Lines Premium Tax, the Allocation of Premium for Surplus Lines and Independently Procured Premium Tax, and Multiple Agent Transactions for Surplus Lines Insurance"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=171517&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "171517",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Exempt premiums--If a surplus lines policy covers risks or exposures that are properly allocated to federal waters, international waters, or risks or exposures that are under the jurisdiction of a foreign government, then the premiums on such policies or portions of such policies are not taxable in Texas.(2) Federal preemptions to state taxation for surplus lines insurance--Federal preemptions from state taxation exist for premiums on policies that are issued for the following entities:(A) The Federal Deposit Insurance Corporation  (FDIC), when it acts as the receiver of a failed financial institution that holds the property being insured;(B) The National Credit Union Administration; and(C) A federally chartered credit union.(3) Multiple agent transaction--A transaction in which two or more agents, each acting as a surplus lines agent of record, place portions of the total insurance coverage, under a cover note or under a subscription policy, for a single insured.(4) Premium received--The total gross amount of premium that is collected for the coverage that the contract or policy provides, which includes, but is not limited to, premiums, membership fees, assessments, dues, policy fees, or any  other consideration for insurance. This amount includes agent fees that are charged in addition to, or in lieu of, a commission. Premium received does not include any separately billed finance charge that is associated with the financing of the premium.(5) Premium written--The total gross amount of premium for the coverage that the insurance contract or policy provides, which includes, but is not limited to, premiums, membership fees, assessments, dues, policy fees, or any other consideration for insurance that is billed to the insured. This amount includes agent fees that are charged in addition to, or in lieu of, a commission. Premium written does not include any separately billed finance charge that is associated with the financing of the premium.(6) Properly allocated and apportioned--The division or distribution of premium among or between the various locations afforded coverage under the insurance contract. This distribution of premium must comply with the methods that this section describes.(7) Surplus lines agent or agency--An agent or agency that holds a surplus lines license that this state has issued pursuant to Insurance Code, Article 1.14-2.(8) Surplus lines agent of record--The Texas licensed surplus lines agent who places a policy with an eligible surplus lines insurer, or the Texas licensed surplus lines agent who transacts business directly with an out-of-state agent not licensed by Texas as a surplus lines agent to obtain  coverage with an eligible surplus lines insurer. The agent in these situations is the agent of record for such agent's portion of the premium for the policy placement.(9) Taxable surplus lines premium--For surplus lines taxation purposes, except for exempt or federally pre-empted premiums, surplus lines premium is taxable under Insurance Code, Article 1.14-2, §12(a).(10) Texas waters--Waters within 10.359 statute miles or nine nautical miles from the Texas coastline.(b) Determination of Texas premium and tax due. Unless otherwise properly allocated and reported pursuant to subsection (c) of this section, all premiums that are associated with a surplus lines policy are Texas premiums for  taxation and reporting purposes. Premiums on policies for risks in Texas waters are subject to Texas taxation. All surplus lines insurance premium taxes must be computed on the total gross premium written or premium received for the policy as of the date that coverage becomes effective, except as follows:(1) A policy that is issued for a term in excess of one year, with a fixed premium that is payable annually, shall be taxed on the first year's premium at the statutory rate as of the date that the policy is effective. The tax on premiums payable for subsequent years shall be computed and collected as of the date that such subsequent premiums become due and payable. For taxation purposes, that date is the policy anniversary date.(2) Premium deposits made on a policy that provides for retrospective premium adjustments are premiums for such policy as of the effective date of the policy, and are taxed accordingly.(3) Retrospective premium adjustments that are made under the terms of a surplus lines policy and that require the insured's payment of additional premiums are taxed at the rate originally charged. Retrospective premium adjustments that require the return of a portion of premium or premium deposit are effectuated by the surplus lines agents through a tax refund at the rate originally charged.(c) Allocation of premium. A surplus lines agent of record may allocate the premium by use of the method that most reasonably and equitably allocates  the premium that applies to Texas, other states, and nontaxable jurisdictions on those policies that cover multiple locations. The amount of premium on each policy must be allocated as Texas premium, other states premium, and exempt/preempted premium and must be reported to the Surplus Lines Stamping Office of Texas in a format that the Texas Department of Insurance and the Surplus Lines Stamping Office of Texas provide. Policies for risks that are 100 percent exempt, are preempted by federal statute and are on risks located entirely outside Texas, or risks that are allocated entirely to another state, are not required to be reported to the Surplus Lines Stamping Office of Texas. The premiums for these policies must be reported to the comptroller on a form prescribed for this  purpose. The premium allocated to other states must be reported in the aggregate for all other states, beginning with policies that are effective the month that follows adoption of this section. The allocation standard chosen must be maintained in the policy file at the office of the surplus lines agent of record, and must be available upon request for inspection for taxation and regulation purposes for a minimum of four years, beginning the day after the date on which the annual tax report is due.(1) Acceptable apportionment or premium allocation standards are as follows:(A) (PA)--percentage of physical assets in Texas;(B) (EP)--percentage of payroll that applies to employees who are located or conduct business  in Texas;(C) (S)--percentage of sales in Texas;(D) (TC)--percentage of taxable capital for franchise tax purposes in Texas;(E) (T)--percentage of time that an insured's conduct or property is exposed to coverage in Texas;(F) (X)--any other method of equitable apportionment that is adequately described.(2) Premiums that are properly allocated to any other state or states, and that are specifically exempt from taxation under the regulations of the other state or states, are not taxable in Texas.(3) The apportionment or allocation standards under subsection (c)(1) of this section also apply to independently  procured insurance premiums under Insurance Code, Title 2, §101.252.(d) Tax base election. Surplus lines agents may elect to report and pay the premium tax on a premium-written or premium-received basis. All premiums will be taxed on the same basis. Each surplus lines agent must file an election on forms that the comptroller prescribes, and must state the method of taxation that the agent has chosen. If an agent fails to file an election, the agent must report on a premium-written basis. The tax base election chosen must be identified on the first tax report filing made that follows adoption of this section. Subject to approval from the comptroller, agents are allowed to change their election every four years prospectively. After the expiration  of the initial four year election period, a change in the tax base election will be effective beginning the year received by the comptroller. An agent who changes from a premium-received to a premium-written basis will owe taxes on all outstanding receivables as of January 1 of the year of the change.(1) Agents who elect to pay premium taxes on a premium-written basis will owe tax on all premium written during the reporting period, regardless of whether the tax has been collected, unless the premium is properly allocated or apportioned and reported under subsection (c) of this section.(2) Agents who elect to pay premium taxes on a premium-received basis will owe tax on all premium received, regardless of whether the tax has been  collected during the reporting period, unless the premium is properly allocated or apportioned and reported under subsection (c) of this section.(3) Failure to bill and collect the tax at the time of delivery of the cover note, certificate of insurance, policy, or other initial confirmation of coverage is a violation of Insurance Code, Article 1.14-2, §12.(e) Prepayment of taxes. Beginning January 1, 2000, licensed surplus lines agents are required to remit tax prepayments.(1) A surplus lines agent must remit a premium tax prepayment by the 15th day of the month that follows any month in which accrued taxes equal or exceed $70,000, based on the tax base elected by the agent under subsection  (d) of this section. The prepayment amount must equal the accrued liability at the end of the month.(2) Failure to make the required prepayments will result in the application of penalty and interest.(f) Bad debts. Any portion of the policy premium that is not collectible is considered to be a bad debt.(1) An agent is not required to report tax on any amount that has been entered in the agent's books as a bad debt during the reporting period in which the contract was made, provided that the agent has deducted such amount on the agent's federal income tax return for that period.(2) An agent is entitled to a credit for tax reported and paid on an account that is later  determined to be a bad debt. The agent may take a deduction on the surplus lines tax report form, or obtain a refund from the comptroller, in the reporting period in which the agent's books reflect the bad debt. Deductions and refunds due to bad debts are limited to four years from the date on which the account is entered in the agent's books as a bad debt.(3) A deduction may only be claimed on that portion of the bad debt that represents the amount reported subject to tax. In determination of that amount, all payments and credits to the policy may be applied ratably against the various charges that comprise the bad debt, except as paragraph (4) of this subsection provides.(4) An agent may not deduct the expense of collection of  bad debt, or the amount that the agent pays to a third party or that the third party retains for the service of collection of bad debt, from the amount subject to tax.(5) To claim bad debt deductions, an agent's records must show:(A) the date of the original or renewal insurance policy;(B) the name and address of the insured;(C) the amount that the insured contracted to pay;(D) taxable and nontaxable charges;(E) the amount on which the agent paid tax;(F) all payments or other credits that are applied to the account of the insured; and(G) evidence that the  uncollected amount has been designated as a bad debt in the agent's books and records and was claimed as a bad debt deduction for income tax purposes.(6) If an agent later collects all or part of an account for which a bad debt deduction was claimed, the amount collected must be reported as taxable premium in the reporting period in which such collection was made and taxed at the rate originally assessed.(7) Installment policies may not be labeled as bad debts merely for the purpose of delay of payment of the premium tax.(g) Financed or periodic payment transactions. Financed or periodic payment transactions include all policies in which the terms of the contract provide for deferred  payments of the premium. These transactions include installment policies, conditional contracts, and premium-financed policies.(1) Tax is due on the premium, interest charges, finance charges, and all other service charges incurred as a part of the policy issuance, unless these charges are stated separately to the insured by such means as an invoice, billing, ticket, or contract.(2) An agent must report and pay tax on financed or periodic payment transactions based on one of the reporting methods that subsection (d) of this section describes.(A) If the agent has elected to pay tax based on a premium-written basis, the entire amount of tax is due on the premium for the policy period and must be reported during the  initial year in which the policy is effective.(B) If the agent has elected to pay tax on a premium-receipts basis, tax must be reported based on the actual premium collected during the reporting period, excluding separately stated finance charges.(h) Multiple agent transaction. Each agent of record in a multiple agent transaction is responsible for filing the policy that covers such agent's portion of the premium with the Surplus Lines Stamping Office of Texas, for filing an annual tax report with the comptroller on such business, and for payment of premium taxes on such premium or portion of such premium.(i) Absorption of tax. As stated in Insurance Code, Article 1.14-2, §12,  surplus lines agents are prohibited from absorption of the surplus lines premium tax. The assessment of tax due but not collected from insureds does not constitute absorption of taxes. Agents who are found to be absorbing tax through practices such as rebating or failing to bill for tax, or through violation of any subsection of this section, will be reported to the Texas Department of Insurance for regulatory action.",
            "sourceNote": "Source Note: The provisions of this §3.822 adopted to be effective March 20, 2001, 26 TexReg 2199."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=171517&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "171517",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "GG",
                "label": "INSURANCE TAX"
            },
            "rule": {
                "number": "§3.827",
                "label": "Captive Insurance Companies"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=163750&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "163750",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Affiliate--A subsidiary or holding company that, directly or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, a captive insurance company. The term includes a parent entity that controls a captive insurance company.(2) Captive insurance company--A company that holds a certificate of authority issued by the Texas Department of Insurance under Insurance Code, Chapter 964, and that insures only the operational risks of its affiliates or the risks of a controlled unaffiliated business.(3) Control--To direct, or cause the direction of, the management and policies of an entity, other than the power that results from an official position with, or corporate office held in, the entity. The power may be possessed directly or indirectly by any means, including through the ownership of voting securities or by contract, other than a commercial contract for goods or non-management services.(4) Controlled unaffiliated business--A person that:(A) is not an affiliate;(B) has an existing contractual relationship with an affiliate under which the affiliate bears operational risk; and(C) whose risk is managed by a captive insurance company under criteria established by the Commissioner of Insurance pursuant to Insurance Code, §964.066, relating to Standards for Risk Management of Controlled Unaffiliated Business.(5) Gross premiums--For purposes of the maintenance tax implemented by this section, this term has the meaning assigned by paragraph (9) of this subsection, defining the term taxable premium receipts.(6) Home office--The location from which the officers or directors of a business entity provide direction, control, and coordination, and where the executive officers hold meetings and make high-level decisions.(7) Operational risks--Any potential financial loss of an affiliate, except for a loss arising from an insurance policy issued by a captive or insurance affiliate.(8) Person--This term has the meaning assigned by Government Code, §311.005.(9) Taxable premium receipts--The total amount of gross premiums, membership fees, assessments, dues, revenues, and other considerations for insurance written by the captive insurance company in a calendar year, with no deduction for premiums paid for reinsurance to another authorized insurer. Taxable premium receipts do not include returned premiums, dividends paid to policyholders, or premiums excluded by another law of this state.(b) Taxes imposed on a captive insurance company.(1) Premium tax.(A) The premium tax rate is one-half of one percent.(B) Each year, the minimum aggregate amount of premium tax to be paid by a captive insurance company is $7,500, and the maximum aggregate amount of premium tax to be paid is $200,000.(C) The premium tax due is based on the correctly reported taxable premium receipts on any kind of insurance written by the captive on operational risks for an affiliate or risks for a controlled unaffiliated business, on each kind of property or risk, without regard to the location of the property or risk that is being insured.(D) For information about allowable premium tax credits, refer to subsection (c) of this section.(2) Maintenance tax. The maintenance tax due is based on the correctly reported gross premium from writing insurance on risks located in this state, as applicable to the individual lines of business written, on operational risks for an affiliate or a controlled unaffiliated business. The rates for each line of business are determined by the Texas Department of Insurance and may vary each year. In the case of an indemnity policy that reimburses the insured for losses paid, the location of the risk or exposure insured is the location of the insured's home office.(3) Other taxes. A captive insurance company's premium receipts subject to taxation under Insurance Code, Chapters 223A and 964 are not subject to any other taxes, surcharges, or other regulatory assessments or fees under the Insurance Code.(4) Postponement or waiver of taxes or fees. The Commissioner of Insurance may postpone or waive, in whole or in part, any fees or taxes under the Insurance Code for a period not to exceed two years for any foreign or alien captive insurance company that transfers its state of domicile to this state. The amount of any premium tax waiver is computed on the net premium tax due after application of any available premium tax credits for examination expenses. To claim such premium tax or maintenance tax postponement or waiver under this paragraph, the captive insurance company shall submit with its premium tax or maintenance tax report the written letter or other documentation received from the Commissioner of Insurance or an authorized representative of the Texas Department of Insurance granting such waiver or postponement for the applicable tax year.(c) Premium tax credit for examination expenses. A captive insurance company is entitled to a premium tax credit against the preliminary tax calculation in an amount equal to the allowable examination expenses paid to, and as determined by, the Texas Department of Insurance during the calendar year for which the tax is due. Credit is not allowed for fees paid to another state or paid in a different tax year. Any portion of the credit that exceeds the amount of taxes calculated for the year in which the examination expense is incurred may not be carried forward to a subsequent tax year.(d) Due date and prepayments of tax. Captive insurance companies are subject to the provisions of §3.809 of this title (relating to Due Dates, Penalty and Interest, and Overpayments). Section 3.809 of this title also addresses prepayments of premium tax.(e) Failure to pay taxes. A captive insurance company that fails to pay all taxes imposed under Insurance Code, Chapters 223A and 964 is subject to Insurance Code, §203.002(b) and Tax Code, Title 2, Subtitles A and B. The comptroller shall institute such collection actions against a delinquent captive insurance company as the comptroller considers appropriate.",
            "sourceNote": "Source Note: The provisions of this §3.827 adopted to be effective February 18, 2015, 40 TexReg 706."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=163750&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "163750",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "GG",
                "label": "INSURANCE TAX"
            },
            "rule": {
                "number": "§3.828",
                "label": "Workers' Compensation Insurance Gross Premiums for the Purpose of Maintenance Taxes"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19815&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19815",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. Terms not defined in this section shall have the meaning assigned to them in the Texas Basic Manual of Rules, Classifications and Experience Rating Plan for Workers' Compensation and Employers' Liability Insurance.(1) Deductible credit--The amount by which the Estimated Modified/Schedule Rating/Network Premium is reduced as a result of the policyholder's election of a deductible option.(2) Dividends paid to policyholders--The return of part of the premium paid for a policy issued on a participating basis.(3) Return premium--The portion of a premium that is returned to the insured as a result of cancellation, endorsement, rate adjustment, or a calculation that the total estimated policy cost was in excess of the actual premium.(4) Texas Basic Manual of Rules, Classifications and Experience Rating Plan for Workers' Compensation and Employers' Liability Insurance--A manual published by the Texas Department of Insurance. The manual provides insurers licensed in Texas to write workers' compensation insurance with the rules, classifications, endorsements, forms, and experience rating plan applicable to Texas workers' compensation policies.(b) Gross written premiums subject to maintenance tax. For new or renewal policies issued, and for additional written premium or return premium due to endorsement, cancellation, audit, or other adjustment, with an effective or adjustment date on or after September 1, 1993, gross written premiums subject to maintenance tax shall be computed according to the Texas Basic Manual of Rules, Classifications and Experience Rating Plan for Workers' Compensation and Employers' Liability Insurance, Rule III. For maintenance tax reporting purposes, the deductible credit, if any, must be added back to the total estimated policy cost to determine gross written premium.(c) For retrospectively rated policies, any adjustments made are treated as gross written premium subject to maintenance tax in the year of the adjustment for the purpose of computing gross workers' compensation premiums.(d) This section applies to licensed insurers only. The tax base for certified self-insurers is defined by Labor Code, §407.104.",
            "sourceNote": "Source Note: The provisions of this §3.828 adopted to be effective October 25, 1995, 20 TexReg 8454; amended to be effective September 4, 2013, 38 TexReg 5738."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19815&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19815",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "GG",
                "label": "INSURANCE TAX"
            },
            "rule": {
                "number": "§3.830",
                "label": "Premium Tax Credit for Examination Expenses and Valuation Fees"
            },
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                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Direct examination expenses--These expenses include travel (food, lodging, and transportation) and miscellaneous expenses incurred by Texas Department of Insurance (TDI) examiner(s) during the examination of an insurer.(2) Indirect examination expenses--These expenses include TDI examiner salaries, any costs paid directly by the insurance company under examination to third party examiners hired by the TDI to conduct the examination, the overhead assessment, and examination expenses paid to other State of Texas regulatory agencies.(3) Overhead assessment--The overhead assessment is billed by the TDI to cover the operating expenses of the examinations section. These expenses include, but are not limited to, support staff salaries, utilities, rent, office equipment, furniture and fixtures, supplies, and miscellaneous expenses.(4) Rehabilitation fees--These fees are assessed on companies that have undergone a successful rehabilitation by TDI to cover the costs of the rehabilitation.(5) Valuation fee--An annual fee which is assessed by the TDI on Texas domestic life insurance carriers. The fee is used to offset the cost of valuing life insurance policies issued by these carriers.  The fee is based on the amount of direct life insurance in force at the end of the calendar year and is reported on the Annual Maintenance, Assessment and Retaliatory Report (Form 25-102).(b) Examination expense credit.(1) Domestic insurers may elect to maintain all or a portion of their books and records outside of Texas under the Insurance Code, Article 1.28. Companies electing to maintain their books and records out of state are allowed to claim indirect examination expenses and the overhead assessment, as defined in subsection (a) of this section, paid during the tax year as a credit.(2) Domestic insurers who maintain all of their books and records in Texas and foreign insurers can claim direct examination expenses, indirect examination expenses, and the overhead assessment, as defined in subsection (a) of this section, paid during the tax year as a credit.(c) Valuation fee credit. This credit can be taken by any company that has paid the valuation fee during the tax year for which the premium tax is due.(d) Limitation of credit. The aggregate of the examination expense credit and the valuation fee credit is limited to the premium tax liability due prior to the application of any premium tax prepayments and/or guaranty association assessment credits available. Any credit which exceeds the premium tax liability for a given year is lost and cannot be carried forward to future year(s) nor carried back to previous year(s). Only examination expenses specifically enumerated in subsection (a) of this section are allowed to be used in the computation of the examination expense credit. Rehabilitation fees assessed by the TDI under the Insurance Code, Article 21.28, are not allowed as a credit.",
            "sourceNote": "Source Note: The provisions of this §3.830 adopted to be effective August 6, 1996, 21 TexReg 7045."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=86859&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "86859",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "GG",
                "label": "INSURANCE TAX"
            },
            "rule": {
                "number": "§3.831",
                "label": "Gross Premium Definitions for Property and Casualty; Life, Accident, and Health; Health Maintenance Organizations; and Title Insurance Companies; and Clarification of the Taxation on the Distribution of Title Premiums"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=133197&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "133197",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.    (1) Gross premium definition for property and casualty companies--  (A) Gross premiums are the total gross amount of premiums, membership fees, assessments, dues, and any other considerations for the taxable year on insurance written on each and every kind of property or risk located in the state, with no deduction for premiums paid for reinsurance, and excluding:  (i) return premiums (i.e., unearned premiums returned to policyholders);  (ii) dividends paid to policyholders;  (iii) premiums received from other licensed companies for reinsurance; and  (iv) premium finance charges clearly identified in a premium note or other evidence of premium payable that are separately stated to the policyholder (i.e., invoice, billing, contract).  (B) The following non-taxable premiums are deducted from gross premiums in order to calculate taxable premiums:  (i) crop insurance reinsured by the Federal Crop Insurance Corporation under Federal Crop Insurance Act  (7 U.S.C. §1508), §508;  (ii) premiums for the Property Protection Program for Underserved Areas under Insurance Code, Article 5.35-3.  (C) Gross premium defined in subparagraph (A) of this paragraph applies to every insurance carrier, including Lloyds, reciprocal exchanges, and any other organization or concern writing gross premiums from the business of fire, marine, inland marine, accident, credit, livestock, fidelity, guaranty, surety, casualty, employers' liability, or any other kind or character of insurance. However, the definition does not apply to:  (i) title insurance companies;  (ii) premium receipts from the business of life insurance, personal accident insurance, life and accident insurance, or health and accident insurance for profit, or health maintenance organization coverage;  (iii) fraternal benefit associations or societies in this state, non-profit group hospital service plans, stipulated premium companies, mutual assessment associations, companies or corporations regulated by the Insurance Code, Chapter 14, as amended; and  (iv) cooperative or mutual fire insurance companies administered by the members thereof solely for the protection of their own property and not for profit.  (2) Gross premium definition for life, health, and accident insurance companies and health maintenance organizations--  (A) Gross premiums are the total gross amount of all premiums, including membership fees, assessments, dues and any other consideration received during the taxable year, with no deduction for premiums paid for reinsurance, on each and every kind of life, accident, or health insurance policy or contract that covers persons who are located in the State of Texas, or the gross amount of revenues for the issuance of health maintenance organization certificates or contracts, and excludes:  (i) return premiums (i.e., unearned premiums returned to policyholders);  (ii) dividends applied to purchase paid-up additions to life insurance or to shorten the endowment or premium payment period for life insurance policies;  (iii) premiums that an insurance carriers receives from another insurance carrier for reinsurance (a stop-loss or excess-loss insurance policy issued to a health maintenance organization is considered reinsurance);   (iv) premium finance charges that are clearly identified in a premium note or other evidence of premium payable, and that are separately stated to the policyholder (i.e., invoice, billing, contract);  (v) premiums received from the State Comptroller or from the Treasury of the United States for accident and health insurance or health maintenance organization coverage for which the state or federal government contracts for the purpose of providing welfare benefits to designated welfare recipients, or for insurance for which the state or federal government contracts in accordance with, or in furtherance of the provisions of the Human Resource Code, Title 2, or the Federal Social Security Act; and  (vi) premiums paid on group health, accident, and life insurance policies or health maintenance organization coverage in which the group covered has established a single non-profit trust to provide coverage primarily for employees of:  (I) a municipality, county, or hospital district in this state; or  (II) a county or municipal hospital, without regard to whether the employees are employees of the county or municipality or another entity that operates the hospital on behalf of the county or municipality.  (B) The following non-taxable premiums are deducted from gross premiums in order to calculate taxable premiums:  (i) group benefits provided under Insurance Code, Articles 3.50-2, 3.50-3, and 3.50-4;  (ii) premiums for the Texas 65 Health Insurance Plan under Insurance Code, Article 3.71; and  (iii) premiums for the Federal Employees Health Benefit Program under United States Code, Title 5, §8909.  (C) The definition of gross premiums does not include annuities or annuity considerations. Therefore, annuities and annuity consideration are not subject to premium taxation under Article 4.11. However, annuities and annuity considerations are included for purposes of Article 4.17, Maintenance Tax on Gross Premiums, and are taxed accordingly. Maintenance taxes are assessed when annuities are purchased from insurance companies (at the time of annuitization), which is typically known as back-end  reporting.  (D) The gross premium definition in subparagraph (A) of this paragraph applies to every insurance carrier that receives premiums from the business of life insurance, accident insurance, health insurance, life and accident insurance, life and health insurance, health and accident insurance, or life, health and accident insurance, including variable life insurance, credit life insurance, and credit accident and health insurance for profit or otherwise or for mutual benefit or protection in the State of Texas, and to every health maintenance organization that receives revenues for the issuance of certificates or contracts in the State of Texas.  (3) Gross premium definition for title insurance companies--Gross premiums are the total gross amount of premiums, membership fees, dues, and any other considerations received by the title insurer or its agent for the taxable year on title insurance written on property located in this state with no deduction for premiums paid for reinsurance, and excludes:  (A) premiums received from other licensed title insurance companies for reinsurance; and  (B) return premiums paid to policyholders.  (4) Taxation on distribution of title insurance premiums--  (A) Premium and maintenance taxes are levied on all amounts defined to be title premiums whether paid to the title insurance company or retained by the title insurance agent.  (B) The collection of the title premium tax and maintenance fee remitted to the comptroller on the premium retained by the title agent is incorporated in the division of the premium between insurer and agent so that the insurer receives the premium tax and maintenance fee due on the agent's portion of the premium.  (C) Title insurers and title agents are both subject to the premium and maintenance tax on their proportional share of the premiums and are separately liable for the tax if the insurer fails to remit the tax due on the agent's portion.  (D) The insurer is required to remit to the comptroller the total title premium and maintenance taxes due.",
            "sourceNote": "Source Note: The provisions of this §3.831 adopted to be effective May 17, 1996, 21 TexReg 3948; amended to be effective May 23, 2001, 26 TexReg 3632."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=133197&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "133197",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "GG",
                "label": "INSURANCE TAX"
            },
            "rule": {
                "number": "§3.832",
                "label": "Assessment for the Office of Public Insurance Counsel (OPIC)"
            },
            "nextRule": {
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            "ruleBody": "(a) Property and casualty insurance. Each property and casualty insurer (including county mutual insurance companies) authorized to do business in this state must pay an annual assessment of $.057 on each property and casualty insurance policy or each certificate of insurance evidencing coverage under a group policy covering property and/or risks located in Texas that is in force on December 31.(b) Life, health and accident insurance. Each life; health; accident; life and accident; accident and health; or life, accident and health insurer; and each health maintenance organization authorized to do business in this state must pay an annual assessment of $.057 on each individual policy or each certificate of insurance evidencing coverage under a group policy placed in force in this state with an initial premium paid during the year. For the purpose of determining this assessment, a certificate of insurance includes subscriber certificates issued under a group policy. A subscriber certificate may be for an individual or the individual and his/her family. Individual policy renewals or certificate of insurance renewals are not to be included in calculating the assessment. A term life policy that is converted to a whole life or universal life policy will be considered a new policy for purposes of the assessment unless the term life policy specifically contains a conversion option.(c) Title insurance. Each title insurer authorized to do business in this state must pay an annual assessment of $.057 on each owner policy and each mortgage policy written during the year for property located in Texas for which the full premium is charged. In instances where two or more insurance companies co-insure a portion of the risk, each policy is subject to the assessment. For the purpose of determining this assessment, any policies on which the full basic premium is discounted or a credit is given will not be included.(d) Purchase of a block of business. In instances where a block of business is purchased by another company, the following will apply:(1) Property and casualty insurance policies--The acquiring company is responsible for the assessment on each of the policies in force on December 31.(2) Life, accident, and health insurance policies--The original insurer is responsible for the assessment on the new policies which were ceded.(3) Title insurance policies--The original insurer is responsible for the assessment on the policies written on which full premium is charged.(e) Due date of report and payment. The assessment must be reported and paid on or before March 1 following the end of the tax year for which the assessment is due.(f) Penalty and interest. Failure to file and pay the assessment as provided under Insurance Code, Chapter 501, will subject the taxpayer to penalty and interest under Tax Code, Title 2, Subtitles A and B.(g) Interest on refunds. Under Tax Code, Title 2, a refund granted for a report period due on or after January 1, 2000, for an amount found to be erroneously paid, will include interest at the same variable interest rate charged on delinquent taxes. Interest accrues beginning the later of 60 days after the date of payment or the due date of the tax report and ending on either the date of allowance of the credit on account or a date not more than 10 days before the date of the refund warrant. A refund for a report period due before January 1, 2000, does not accrue interest. Interest does not accrue on a credit taken on a taxpayer's return.",
            "sourceNote": "Source Note: The provisions of this §3.832 adopted to be effective February 14, 1996, 21 TexReg 887; amended to be effective March 5, 2001, 26 TexReg 1874; amended to be effective November 21, 2004, 29 TexReg 10581; amended to be effective November 25, 2007, 32 TexReg 8318."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=136928&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "136928",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "GG",
                "label": "INSURANCE TAX"
            },
            "rule": {
                "number": "§3.833",
                "label": "Certified Capital Companies and Certified Investor Premium Tax Credits"
            },
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                "recordId": "184882",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Administrator means the Comptroller of Public Accounts for the State of Texas.(2) Affiliate means:(A) a person who is an affiliate for purposes of Insurance Code, Article 823.003;(B) a person who directly or indirectly:(i) beneficially owns 10% or more of the outstanding voting securities or other voting or management interests of another person, whether through rights, options, convertible interests, or otherwise; or(ii) controls or holds power to vote 10% or more of the outstanding voting securities or other voting or management interests of the other person;(C) a person 10% or more of which the outstanding voting securities or other voting or management interests are directly or indirectly:(i) beneficially owned by the other person, whether through rights, options, convertible interests, or otherwise; or(ii) controlled or held with power to vote by the other person;(D) a partnership in which the other person is a general partner; or(E) an officer, director, employee, or agent of the other person, or an immediate family member of the officer, director, employee, or agent of the other person.(3) Allocation date means the date on which the comptroller allocates premium tax credits to certified investors of a CAPCO under this section, except that in the case of a pro rata reallocation pursuant to subsection (g)(7)(B)(ii) of this section, the allocation date shall be the date of the reallocation.(4) CAPCO means a certified capital company as defined herein.(5) Certified capital means an investment of cash by a certified investor in a CAPCO that fully funds the purchase price of an equity interest in the company or a qualified debt instrument issued by the CAPCO.(6) Certified capital company means a partnership, corporation, trust, or limited liability company, whether organized on a profit or not-for-profit basis, that is in good standing with the State of Texas, is headquartered in Texas and has as its primary business activity the investment of cash in qualified businesses and that is certified as meeting the criteria of this section.(7) Certified investor means an insurance company or health maintenance organization licensed by the Texas Department of Insurance or other person that has state premium tax liability under Insurance Code, Chapter 4, or a successor statute, that invests certified capital pursuant to an allocation of premium tax credits under this section.(8) Early stage business means a qualified business that satisfies at least one of the following criteria:(A) is involved, at the time of a CAPCO's first investment, in activities related to the development of initial product or service offerings, such as prototype development or establishment of initial production or service processes;(B) was initially organized less than two years before the date of the CAPCO's first investment; or(C) during the fiscal year immediately preceding the year of the CAPCO's first investment had, on a consolidated basis with its affiliates, gross revenues of not more than $2 million as determined in accordance with generally accepted accounting principles.(9) Headquartered in Texas means the following requirements, at a minimum, are met with respect to Texas CAPCOs:(A) the CAPCO has its principal office in Texas for operations covered under this section, in which the main investment and administrative functions of the CAPCO are conducted;(B) the original principal books and records of the CAPCO are maintained in the Texas principal office; and(C) a minimum of 80% of the CAPCO's expenses are spent in Texas including management fees, and administrative costs including but not limited to organizational fees, but for the purposes of this subparagraph, expenses do not include underwriting fees; closing costs (including rating agency fees, and other fees related to the closing of the CAPCO's funding); fees related to any insurance issued for a qualified debt instrument or associated premium tax credits; interest payments on indebtedness; and other expenses for services that the CAPCO demonstrates cannot be reasonably obtained in Texas.(10) Initially organized means the date that an entity's organizational documents were first accepted as filed by the appropriate official in the state of its incorporation or organization, as applicable, or, in the case of an entity that is not required to file its organizational documents with any state official, the date on which its members, partners, or owners, as applicable, originally executed the entity's organizational documents.(11) Low-income community has the meaning assigned by Internal Revenue Code of 1986, §45D(e).(12) Person means a natural person or entity, including a corporation, general or limited partnership, trust, or a limited liability company.(13) Premium tax credit allocation claim means a claim for allocation of Texas premium tax credits on a form provided by the comptroller.(14) Primary or primarily under this section means at least 80%.(15) Principal business operations means at least 80% of the business organization's employees reside in Texas or 80% of the business payroll is paid to individuals living in Texas.(16) Principal office means the location in Texas that is the primary place for investment functions of the CAPCO and the principal location for books and records of the CAPCO.(17) Program One means the program for allocation and investment of certified capital under this chapter before January 1, 2007.(18) Program Two means that program for allocation and investment of certified capital on or after January 1, 2007.(19) Qualified business means a business that, at the time of a CAPCO's first investment in the business:(A) is headquartered in Texas or relocates its headquarters and principal business operations to Texas within 90 days, and based on an affidavit by an officer or owner of the business, that it intends to remain in Texas after receipt of an investment by the CAPCO;(B) has its principal business operations in Texas or relocates its principal business operations to Texas within 90 days, and based on a copy of its business plan or other evidence of domicile, intends to maintain business operations in Texas after receipt of an investment by the CAPCO;(C) has agreed to use the qualified investment primarily:(i) to support its principal business operations in Texas, other than for advertising, promotion, and sales operations, which may be conducted outside of Texas; or(ii) in the case of a start-up company, to establish and support business operations in Texas as evidenced by an affidavit of an officer or owner of the business, other than for advertising, promotion, and sales operations, which may be conducted outside of Texas;(D) does not have more than 100 employees either full-time or part-time employees, as evidenced by official state or federal employment tax returns or an affidavit signed by an owner or director of the business and:(i) at least 80% of its employees reside in Texas; or(ii) pays 80% of its payroll to Texas residents;(E) is primarily engaged in:(i) manufacturing, processing, or assembling products;(ii) conducting research and development; or(iii) providing services;(F) does not incur more than 20% of its expenses and does not receive more than 20% of its income from:(i) retail sales;(ii) real estate development;(iii) insurance, banking, leasing or lending; or(iv) the provision of professional services provided by accountants, attorneys, or physicians;(G) is not or does not:(i) formed or organized, directly or indirectly, by a CAPCO or an affiliate of the CAPCO as evidenced by a capitalization table prior to the initial investment and a post transaction proforma capitalization table;(ii) a franchisee of a CAPCO; or(iii) an affiliate of the CAPCO; or(iv) have any financial relationship with a CAPCO before the date on which the CAPCO makes its first investment in such business.(20) Qualified debt instrument means a debt instrument issued by a CAPCO, at par value or a premium that:(A) has an original maturity date of at least five years after the date of issuance;(B) has a repayment schedule that is not faster than a level principal amortization over five years, including payments of cash and tax credits. A repayment schedule is not faster than a level principal amortization over five years if the repayment schedule for the debt instrument issued by the CAPCO has a scheduled outstanding principal balance greater than a hypothetical note with the same price and yield as the CAPCO's debt instrument that provides for principal to be amortized over equal, consecutive daily payments, where payments are first allocated to accrued interest and then to principal, however, a certified investor may receive payments at any time for future earned interest, provided the amount received does not exceed the present value of that future interest payment, discounted by a factor that is not less than the stated interest rate of the debt instrument.(C) Has no interest, distribution, or payment features that are related to the profitability of the CAPCO or the performance of the CAPCO's investment portfolio.(21) Qualified distribution means any distribution or payment from certified capital, the return of capital from qualified investments, or the profits earned thereon by a CAPCO in connection with:(A) the reasonable costs and expenses of forming, syndicating, managing, and operating the CAPCO, provided that the distribution or payment is not made directly or indirectly to a certified investor or an affiliate of a certified investor, including:(i) the reasonable costs and expenses of forming, syndicating, or organizing the CAPCO, so long as these costs;(I) shall be limited to the greater of;(-a-) $250,000; or(-b-) 5.0% of the amount of certified capital the CAPCO initially received as investment from its certified investors; or(-c-) $1,500,000; and(II) provided that at the time the CAPCO closes its investment from its certified investors and after deducting the aggregate of the costs of organizing, forming, syndicating, insuring and defeasing the obligations, the CAPCO must have available for qualified investments, cash and/or permissible investments in an amount equal to at least 50% of the amount of certified capital initially received from its certified investors.(ii) reasonable and necessary fees paid for professional services, including legal and accounting services, related to the operation of the company are limited to 1.0% in any calendar year of the amount of certified capital the CAPCO initially received as investment from its certified investors; and(iii) an annual management fee in an amount that does not exceed 2.5% of the certified capital of the company;(B) any projected increase in federal income or state taxes based on income or imputed income of the CAPCO, including penalties and interest related to those taxes, of the equity owners of the CAPCO resulting from the earnings or other tax liability of the CAPCO to the extent that the increase is related to the ownership, management, or operation of the CAPCO in Texas.(22) Qualified investment means the investment of cash by a CAPCO in a qualified business for the purchase of any debt, debt participation, equity, or hybrid security of any nature or description, including a debt instrument or security that has the characteristics of debt, but that provides for conversion into equity or equity participation instruments such as options or warrants; provided that the investment must not have a final stated maturity or be subject to mandatory redemption or repurchase prior to two years from the date of initial investment and, provided further, that not more than 50% is used to refinance existing non-CAPCO debt. Notwithstanding the foregoing, a qualified investment shall not include an investment that results, or could result, in a CAPCO owning 50% or more of the voting or non-voting stock of a qualified business as evidenced by a proforma capitalization table presented to the administrator, unless:(A) such ownership is the result of:(i) the CAPCO's exercise of its rights and remedies following a default in the obligations of the qualified business;(ii) the CAPCO's exercise of preemptive rights granted to it in connection with its initial investment in a qualified business, provided such rights are exercised in connection with an investment in such qualified business by a party other than the CAPCO or an affiliate of the CAPCO;(iii) the operation of any anti-dilution rights granted to a CAPCO in connection with its initial investment in a qualified business; or(B) such investment is approved by the comptroller prior to its being made.(23) State premium tax liability means:(A) any gross insurance premium tax or health maintenance organization gross receipts tax liability incurred by any person under Insurance Code, Chapter 4; or(B) if the gross premium tax liability imposed under Insurance Code, Chapter 4, on January 1, 2003, is eliminated or reduced, any substitute tax liability imposed on an insurance company or other person that had premium tax liability or health maintenance organization gross receipts tax liability under the Insurance Code on that date.(24) Strategic investment area means an area of Texas that qualifies at the time of investment as a strategic investment area under Tax Code, Chapter 171, Subchapter O, or after the expiration of that subchapter, an area that qualified as a strategic investment area under that subchapter immediately before its expiration.(25) Strategic investment business means a qualified business that has its principal business operations located in one or more strategic investment areas and that intends to maintain business operations in the strategic investment areas after receipt of an investment by the CAPCO as documented in the business plan or other business records that were generated at or before the time of the investment.(b) Application Process. Any entity that seeks to operate in Texas as a CAPCO under the provisions of the Insurance Code shall comply with the application procedures set forth in this section.(1) An applicant must file with the comptroller the following:(A) a completed Application for Certification on a form provided by the comptroller,(B) a nonrefundable application fee of $7,500;(C) an audited balance sheet with an unqualified opinion from an independent certified public accountant and any Statement of Auditing Standard No. 61 communications provided by the auditor, as of a date not more than 35 days before the date of application;(D) documentation that the prospective CAPCO is duly organized and qualified to do business in Texas;(E) evidence of an equity capitalization of at least $500,000 in the form of unencumbered cash or cash equivalents;(F) evidence that at least two principals or persons employed or engaged to manage the funds of the applicant have at least four years of experience in the venture capital industry;(G) a commitment that if certified, the CAPCO will establish in Texas its headquarters within 60 days of certification; and(H) biographical, personal, financial, investment, and historical data for each manager, principal, and the entity itself that provides the following, as applicable:(i) prior venture capital firms with which the manager or principal was employed that specifically includes details on:(I) the valuation of portfolio investments, including the manager or principal's ability to structure and execute timely and effective exits from portfolio investments;(II) historical investment performance of prior firms managed by the same managers or principals;(III) historical performance of the CAPCO and each of the managers or principals identified in subparagraph (F) of this paragraph, relating to investments in early stage businesses;(IV) the investment philosophy of the firm;(V) the history and strategy of the CAPCO and its managers or principals for obtaining investors and making investments, particularly in the targeted areas of early stage businesses and strategic investment businesses, low-income community businesses or comparable targeted early stage investments or investments in the underserved areas in Texas or other states;(VI) disclosure of any fines, penalties, or other sanctions or actions by any state, federal, or other regulatory entity, including the Securities and Exchange Commission against the CAPCO or its managers or principals, relating to violations of any type; and(VII) a five-year business plan, which shall include the applicant's investment strategy and investment criteria and which must comply with the requirements of subsection (a)(18) of this section with respect to qualified investments in qualified businesses. If the comptroller determines that an applicant's investment strategy or investment criteria would not effectively further economic development in Texas the applicant's certification may be denied.(ii) any other information that the comptroller may later request to determine the quality of the firm's management, reputation, code of ethics, investment strategy, and practices.(2) Any false, inaccurate, or misleading information provided in the application may be grounds for rejection of the application and denial of further consideration, as well as decertification, if the information, discovered at a subsequent date, would have resulted in the denial of the certification. The applicant shall also notify the comptroller as soon as possible or within 10 business days of the following:(A) when the applicant is unable to continue as a viable going concern; and(B) when the applicant is subject to litigation that may affect its viability as a going concern.(3) Management by certain entities prohibited. An insurance company, group of insurance companies, or other persons who may have state premium tax liability or the affiliates of the insurance companies or other persons may not, directly or indirectly:(A) manage a CAPCO;(B) beneficially own, whether through rights, options, convertible interest, or otherwise, more than 10% of the outstanding voting securities of a CAPCO; or(C) control the direction of investments for a CAPCO.(4) Paragraph (3) of this subsection applies without regard to whether the insurance company or other person or the affiliate of the insurance company or other person is licensed by or transacts business in Texas.(5) Paragraphs (3) and (4) of this subsection do not preclude a certified investor, insurance company, or any other party from exercising its legal rights and remedies, including interim management of a CAPCO, if authorized by law, with respect to a CAPCO that is in default of its statutory or contractual obligations to the certified investor, insurance company, or other party.(6) The date of receipt of an application is the postmark date or the date of the independent delivery. Incomplete applications shall be treated as not received. All submissions to the comptroller may be either by hand delivery or via overnight common carrier to the attention of CAPCO Administrator, Texas Treasury Safekeeping Trust Company, 208 E. 10th Street, Austin, Texas 78701.(7) The comptroller shall review the application and all required documents to ensure that the applicant satisfies the requirements for certification as a CAPCO. Within 30 days of the date of receipt of an application the comptroller shall:(A) issue the certification; or(B) refuse to issue the certification and provide to the applicant the grounds for the refusal, including suggestions for the removal of those grounds. The comptroller shall have 10 business days from the day that the additional information was submitted to approve or reject the application and certification request.(c) Offering material used by a CAPCO. Any offering material involving the sale of securities of a CAPCO must include the following statement: BY AUTHORIZING THE FORMATION OF A CERTIFIED CAPITAL COMPANY, THE STATE OF TEXAS DOES NOT ENDORSE THE QUALITY OF MANAGEMENT OR THE POTENTIAL FOR EARNINGS OF THE COMPANY AND IS NOT LIABLE FOR DAMAGES OR LOSSES TO A CERTIFIED INVESTOR IN THE COMPANY. USE OF THE WORD \"CERTIFIED\" IN AN OFFERING DOES NOT CONSTITUTE A RECOMMENDATION OR ENDORSEMENT OF THE INVESTMENT BY THE COMPTROLLER OF PUBLIC ACCOUNTS. IF APPLICABLE PROVISIONS OF LAW ARE VIOLATED, THE STATE OF TEXAS MAY REQUIRE FORFEITURE OF UNUSED PREMIUM TAX CREDITS AND REPAYMENTS OF USED PREMIUM TAX CREDITS.(d) Requirements for renewal and continuance of certification. A CAPCO must comply with the requirements for renewal and continuance of certification set forth in this subsection.(1) Each CAPCO shall pay a nonrefundable renewal fee of $5,000 to the comptroller not later than January 31 of each year, except that a renewal fee is not required within six months of the date on which the certification is issued.(2) If a CAPCO fails to pay its renewal fee on or before January 31 of each year, the company must pay, in addition to the renewal fee, a late fee of $5,000 to continue its certification.(3) If a CAPCO fails to pay the renewal fee and late fee as stated in paragraph (2) of this subsection within 60 days after January 31, the CAPCO shall be subject to decertification.(4) To continue to be certified, a CAPCO must make qualified investments of certified capital received from certified investors, with respect to Program One and Program Two, according to the following schedule:(A) before the third anniversary of its allocation date, a CAPCO must have made qualified investments in an amount cumulatively equal to at least 30% of the certified capital allocated on such date; and(B) before the fifth anniversary of its allocation date, a CAPCO must have made qualified investments in an amount cumulatively equal to at least 50% of the certified capital allocated on such date, subject to the following:(i) at least 50% of the dollar amount of qualified investments required in subparagraph (B) of this paragraph must be placed in early stage businesses; and(ii) at least 30% of the dollar amount of qualified investments required in subparagraphs (A) and (B) of this paragraph must be placed in strategic investment and/or low income community businesses.(5) The aggregate cumulative amount of all qualified investments made by the CAPCO after its allocation date shall be considered in the computation of the percentage requirements in paragraph (4) of this subsection, subsection (i) of this section, and any other applicable provisions in this section. Any investment returns or profits received by the CAPCO from a qualified investment may be invested in another qualified investment and counted towards any requirement in this section with respect to investments of certified capital.(6) Any amounts received by a certified capital company from a qualified business as commitment fees, closing fees, license fees, royalties or similar charges shall be considered as reductions in the CAPCO's qualified investments in the computation of the percentage requirements in paragraph (4) of this subsection, subsection (i) of this section, and any other applicable provisions in this section.(7) A business that is classified as a qualified business, early stage business, or strategic investment business or low-income community business at the time that the CAPCO first invests in the business remains classified as a qualified business, early stage business, or strategic investment business or low-income community business. The business may receive follow-on investments from any CAPCO, even though the qualified business may not meet the definition of a qualified business, early stage business, or strategic investment business, low income community business as applicable, at the time of the follow-on investment, unless the qualified business no longer has its principle business operations in Texas. Investment in the qualified business by another CAPCO retains the qualified business' original classification.(8) A CAPCO may not make a qualified investment the cost of which is greater than 15% of the total certified capital of the CAPCO at the time of investment.(9) A CAPCO shall invest any certified capital not invested in qualified investments only in the following, provided however, that any such investments are not assigned, pledged, restricted, or otherwise encumbered for the benefit of an affiliate of a CAPCO:(A) cash deposited with a federally insured financial institution located in Texas that is not affiliated with the CAPCO;(B) certificates of deposit in a federally insured financial institution located in Texas that is not affiliated with the CAPCO;(C) investment securities that are obligations of the United States or its agencies or instrumentalities or obligations that are guaranteed fully as to principal and interest by the United States;(D) debt instruments rated at least \"A\" or its equivalent at the time of purchase by a nationally recognized credit rating organization, or issued by, or guaranteed with respect to payment by an entity whose unsecured indebtedness is rated at least \"A\" or its equivalent by a nationally recognized credit rating organization and which indebtedness is not subordinated to other unsecured indebtedness of the issuer or the guarantor provided that the debt instruments are not procured through a financial institution affiliated with the CAPCO;(E) obligations of Texas or any municipality or political subdivision of Texas provided that the obligations are not procured through a financial institution affiliated with the CAPCO; and(F) any other investments approved in advance and in writing by the comptroller.(10) If a qualified business moves its principal business operations outside Texas before the 90th day after a CAPCO makes an investment in it, the investment is not considered a qualified investment for the purposes of the percentage requirements in paragraph (4) of this subsection, subsection (i) of this section, and any other applicable provisions in this section.(11) Any transfer, sale, acquisition, purchase, assignment, or merger of a CAPCO ownership interest should be pre-approved by the comptroller. In no event shall an owner or any affiliate, having an ownership interest of 10% or greater, of a CAPCO, acquire an ownership interest of 10% or greater in another CAPCO without the written approval of the comptroller. The comptroller may request any information deemed necessary to evaluate changes in CAPCO ownership.(e) Annual review. Each CAPCO is subject to review as specified in this section to determine compliance with rules and statutes.(1) The comptroller shall conduct an annual review of each CAPCO to:(A) ensure that the CAPCO continues to satisfy the requirements of this section and Insurance Code, Articles 4.51 - 4.73;(B) ensure that the CAPCO has not made any investment in violation of this section and Insurance Code, Articles 4.51 - 4.73; and(C) determine the eligibility status of its qualified investments.(2) Each CAPCO shall pay the reasonable cost for the annual review to be billed by the comptroller or, if the review is conducted by an independent examiner under the authority of the comptroller, the CAPCO shall reimburse the comptroller.(f) Decertification. A CAPCO may be decertified for violations of this section or the Insurance Code, and premium tax credits may be recaptured and forfeited to the extent expressly set forth in this section or in the Insurance Code.(1) A material violation of Insurance Code, Articles 4.56, 4.58, or 4.59 is grounds for decertification of a CAPCO. The comptroller shall notify the officers of the CAPCO in writing of the violations and that the company may be decertified after 120 days from the date on which the notice is mailed, unless the violations are corrected as determined by the comptroller.(A) Violations of Insurance Code, Articles 4.56(a), 4.56(b), 4.56(f) or 4.56(h) shall constitute a material violation of the statutes.(B) Two consecutive violations of the requirements of Insurance Code, Article 4.58 or 4.59 shall constitute a material violation of the statute.(C) Two or more consecutive instances of a CAPCO failing to pay fees or penalties on a timely basis, two or more consecutive omissions of required information, a misstatements of facts in applications or annual reports, shall constitute material violations of the statutes.(2) A hearing is available to a CAPCO that is subject to decertification as provided in Chapter 1, Subchapter A, Division 1, §§1.1 - 1.42 of this title (relating to Central Administration).(3) Decertification is effective on the date on which the company receives notice of decertification from the comptroller. Notices will be sent via certified mail or via an overnight common carrier delivery service, and become effective on receipt by the CAPCO.(4) In the event of decertification of a CAPCO, the comptroller shall notify any appropriate state agency of the decertification including, but not limited to the Secretary of State, the Office of Economic Development and Tourism, and the Office of the Insurance Commissioner.(5) Premium tax credits previously claimed shall be recaptured and future premium tax credits shall be forfeited following decertification of a CAPCO in accordance with the provisions of Insurance Code, Article 4.63.(6) When a CAPCO has invested an amount equal to 100% of its certified capital, with respect to Program One, in qualified investments, any premium tax credit claimed or to be claimed by a certified investor with respect to an investment in Program One is not subject to recapture or forfeiture. When a CAPCO has invested an amount equal to 100% of its certified capital with respect to Program Two in qualified investments, any premium tax credit claimed or to be claimed by a certified investor with respect to an investment in Program Two is not subject to recapture or forfeiture.(7) The comptroller will send a written notice to each certified investor whose premium tax credit is subject to recapture or forfeiture for failure of the CAPCO to maintain certification eligibility. Notification will be sent in accordance with paragraph (3) of this subsection.(8) The comptroller may impose an administrative penalty on any CAPCO that violates the provisions of this section. Each day a violation continues or occurs is a separate violation. The maximum penalty may not exceed $25,000 for each violation.(A) The penalty amounts are based on the following:(i) seriousness of the violations, including the nature, circumstances, extent, and gravity of the violation;(ii) economic harm caused by the violation;(iii) history of previous violations;(iv) amount necessary to deter a future violation;(v) efforts to correct the violation; and(vi) any other matter that justice may require.(B) Each of the following is a separate violation that is subject to a penalty of $5,000. Thereafter, an additional penalty of $5,000 will be imposed for each 30 day period the violation remains uncorrected:(i) failure to file annual reports by January 31;(ii) failure to maintain in the principal office in Texas all financial, administrative, management and investment records, including details of both qualified investments and unqualified investments;(iii) failure to report names and addresses of certified investors, including the date and amount of investments;(iv) failure to file an annual audited financial statement with an unqualified opinion and any Statement of Auditing Standard No. 61 communication by April 1; and(v) failure to provide detailed financial and investment information that supports each annual report.(C) Each of the following is a separate violation that is subject to a penalty of $10,000. Thereafter, an additional penalty of $10,000 will be imposed for each 30 day period the violation remains uncorrected:(i) failure to maintain the primary CAPCO office in Texas;(ii) investment in a business that is found to be unqualified, without first requesting from the comptroller an evaluation of the business as provided under subsection (g) of this section; and(iii) failure to provide information about the CAPCO's operation within 30 days after the comptroller requests the information.(D) If a CAPCO is assessed penalties, a re-determination hearing may be requested as provided in Tax Code, Chapter 111.(9) Indemnity Agreements and Insurance Authorization. A CAPCO may agree to indemnify or purchase insurance for the benefit of a certified investor for losses resulting from the recapture or forfeiture of premium tax credits under Insurance Code, Article 4.63. Any guaranty, indemnity, bond, insurance policy, or other payment undertaking made under this section may not be provided by more than one certified investor of the CAPCO or affiliate of the certified investor.(g) Premium Tax Credits. In the year a certified investor makes an investment of certified capital, the certified investor shall earn a vested premium tax credit that is equal to the amount of the investment, subject to the other provisions in this section. With respect to Program One, beginning with the tax report due March 2, 2009, for the 2008 tax year, a certified investor may take up to 25% of these tax credits each year until all credits have been used. The credit may not be applied to estimated payments due in 2008, but may be applied to estimated payments beginning with those made in 2009. With respect to Program Two, beginning with the tax report due March 1, 2013 for the 2012 tax year, a certified investor may take up to 25% of these credits each year until all credits have been used. The credit may not be applied to estimated payments due in 2012 but may be applied to estimated payments beginning with those made in 2013.(1) The credit to be applied against state premium tax liability in any one year may not exceed the state premium tax liability of the certified investor for the taxable year. Any unused credit against state premium tax liability may be carried forward indefinitely until the premium tax credits are used.(2) A certified investor claiming a credit against state premium tax liability earned through an investment in a Texas CAPCO is not required to pay any additional retaliatory tax levied under Insurance Code, Article 21.46, as a result of claiming that credit.(3) A premium tax credit allocation claim form for certified investors must be prepared and executed by each CAPCO receiving an investment commitment, on a form provided by the comptroller. A CAPCO and its affiliates may not file premium tax credit allocation claims in excess of the maximum amount of certified capital for which premium tax credits may be allowed. The form shall include an affidavit of the certified investor that legally binds the investor to make an investment of certified capital in an amount allocated by the comptroller. The forms with respect to Program One are due from each CAPCO not later than the 120th day after the date the CAPCO rule is adopted. The forms with respect to Program Two are due from each CAPCO not later than January 1 2008.(4) The comptroller shall notify each CAPCO of the amount of tax credits allocated to each certified investor not later than the 15th business day after the date on which the comptroller accepts premium tax credit allocation claims.(5) A certified investor's tax credits are limited to the amount of certified capital as allocated or as subsequently reallocated by the comptroller and funded by the certified investor. The maximum request for premium tax credits that any one individual certified investor, on an aggregate basis with its affiliates, may request in one or more premium tax allocation claim forms submitted pursuant to paragraph (1) of this subsection may not, with respect to Program One or Program Two as applicable, exceed the greater of:(A) $10 million; or(B) 15% of the maximum aggregate amount available under Insurance Code, Article 4.67(a).(6) The total amount of credits allowed is $200 million Program One and $200 million for Program Two. Total annual credits, with respect to each of Program One and Program Two, are limited to the lesser of $50 million per year, or 25% of the total amount of investment with respect to each of Program One and Program Two. A CAPCO, together with its affiliates, may not file premium tax credit allocation claims on behalf of its investors in excess of $200 million with respect to Program One or Program Two.(7) Pro rata allocation of credits.(A) The comptroller shall perform a pro rata allocation of the total amount of premium tax credits under this if:(i) the total amount of certified capital requested under paragraph (3) of this subsection exceeds the total limit on credits under paragraph (6) of this subsection; or(ii) if an allocation of credits under clause (i) of this subparagraph has occurred and a CAPCO notifies the comptroller either by hand delivery or overnight common carrier delivery service that it did not receive an investment of certified capital equal to the amount of the investment commitment from one or more investors, as provided on the premium tax credit allocation form that is filed under paragraph (3) of this subsection, before the end of the 10th business day after the date of receipt of the notice of allocation.(B) the pro rata allocation for each certified investor shall be computed as follows:(i) for an allocation under subparagraph (A)(i) of this paragraph, a fraction, the numerator of which is the value determined in paragraph (5) of this subsection for each certified investor and the denominator of which is the total amount of all premium tax credit allocation claims that are filed with respect to Program One or Program Two under paragraph (3) of this subsection, for all certified investors, multiplied by the total limit on credits for such program as provided by paragraph (6) of this subsection.(ii) for a reallocation under subparagraph (A)(ii) of this paragraph, the comptroller shall reallocate the forfeited premium tax credit allocation among the other certified investors in all CAPCOs that originally received an allocation, in an amount that will ensure a result after reallocation that is the same as if the original request for the forfeited allocation had not been included in the allocation process.(8) Premium tax credits allocated under this subsection may be transferred or assigned as provided in §3.830 of this title (relating to Premium Tax Credit for Examination Expenses, Evaluation Fees, Assessments, and Certified Capital Companies (CAPCOs); Limitations and Transfers). The transfer or assignment of a premium tax credit does not affect the schedule for taking premium tax credits under this section. The transfer, sale, or assignment of premium tax credits, are subject to the follow conditions:(A) Failure to comply with §3.830 of this title, could jeopardize the investor's ability to transfer premium tax credits.(B) Any liability with respect to premium tax credits transferred pursuant to Insurance Code, Article 4.71, that are recaptured pursuant to Insurance Code, Chapter 4, Subchapter B, shall be the responsibility of the taxpayer that actually claimed the credit.(9) If a CAPCO is decertified, the comptroller will adjust any tax report records that are impacted by the recapture or forfeiture of premium tax credits under Program One or Program Two and will enforce the collection of additional premium taxes as a result of the recapture or forfeiture. For purposes of this section in the recapture of tax credits taken, the provisions of Tax Code, §111.207, shall apply as if the limitation period had been tolled before the end of the limitation under Tax Code, §111.204. These provisions shall apply to all insurers and persons, including those who received a transfer or assignment of the credits to be adjusted or recaptured.(h) Evaluation of Proposed Qualified Business. Before a CAPCO makes an investment, it may request that the comptroller determine whether the business is a qualified business, an early stage business, or a strategic investment business or a low-income community business. The CAPCO shall provide all information it has gathered on the business including its plan of operation and plans for future expansion. The request may be denied if the comptroller determines that the proposed investment is not consistent with the CAPCO's investment strategy or investment criteria as approved by the comptroller at certification.(1) Not later than 15 business days following receipt of a request, the comptroller shall issue a determination of whether the business meets the definition of a qualified business, early stage business, or strategic investment business or low-income community business.(2) The comptroller may notify the CAPCO that an additional 15 business days will be needed to review and make the determination.(3) If the comptroller fails to notify the CAPCO as provided under either paragraph (1) or (2) of this subsection, the business is considered to be a qualified business, early stage business, or a strategic investment business or low-income community business, as appropriate.(i) Qualified distributions and repayment of debt. A CAPCO may make a qualified distribution at any time. A CAPCO may make a distribution or payment that is not a qualified distribution only if the CAPCO has made original qualified investments in an amount cumulatively equal to 100% of its certified capital.(1) A CAPCO may make repayments of principal and interest on its indebtedness without regard to this subsection, and without restriction, including repayments of indebtedness of the CAPCO on which certified investors earned premium tax credits. Repayments do not relieve the CAPCO of the requirements for renewal and continuance of certification under subsection (d) of this section.(2) If a business in which a qualified investment has been made relocates its principal business operations outside Texas during the term of the CAPCO's investment in the business, the cumulative amount of qualified investments made from Program One or Program Two, for purposes of satisfying the requirements of this subsection, is reduced by the amount of the CAPCO's qualified investments in this business. This provision shall not apply if the business demonstrates that it has returned its principal business operations to Texas not later than 90 days after the date of its relocation.(3) If a qualified business in which a qualified investment has been made is subsequently acquired by or merged into another entity, whether headquartered inside or outside of Texas during the term of the CAPCO investment in the business, it will remain a qualified investment and not be subject to paragraph (2) of this subsection, if after the acquisition or merger and for the duration of the CAPCO's investment in the business, the business continues to operate within the remaining provisions of this section for qualified business as stated in subsection (a)(15) of this section.(4) If, after a CAPCO initially invests in a qualified business, there is a subsequent follow on investment in that qualified business, the investment will be considered an additional qualified investment for purposes of satisfying the provision requiring investment milestones.(j) Required reports. Each CAPCO shall report to the comptroller:(1) as soon as practicable after receipt of certified capital, but not to exceed 45 days;(A) the certified investors name, address, and taxpayer identification number;(B) the date and amount of investment received by the CAPCO from each certified investor; and(C) the type and amount of security issued by the CAPCO to the certified investors in exchange for the investment resulting in premium tax credits, including the names of the companies that issued the security together with a copy of the security instrument.(2) An annual report due each January 31 that contains:(A) the amount of the CAPCO's certified capital, including details of all investments, at the end of the preceding calendar year, including but not limited to whether or not the company has invested more than 15% of its total certified capital in any one business for Program One or Program Two;(B) a detailed listing of investment violations under this section;(C) each qualified investment the CAPCO made during the preceding year and, with respect to each qualified investment, the number of retained jobs and the average wages paid per employee of the qualified business at the time the qualified investment was made with respect to Program One and Program Two;(D) the number of jobs created by the investment and the average wages paid for the jobs;(E) the classification of the qualified businesses according to the industrial sector and the size of the business;(F) a copy of the business plan or plan of operation for each of the qualified businesses in which the CAPCO invested in the preceding year; and(G) any other information the comptroller requires by notification or instructions to each CAPCO.(3) An annual audited financial statement for the prior calendar year ending December 31, by April 1, that includes the opinion of an independent certified public accountant. The auditor shall also address the methods of operation and conduct of the business of the company by performing certain agreed upon procedures to determine whether:(A) the company is complying with Insurance Code, Chapter 4, Subchapter B, with respect to the CAPCO requirements and the rules adopted in this section;(B) the funds received by the company have been invested as required within the time provided by Insurance Code, Article 4.56(a); and(C) the company has invested the funds in qualified businesses.(k) Report to the legislature. The comptroller shall prepare a biennial report to the legislature with respect to results of implementation of this section. This report shall be filed with the governor, the lieutenant governor, and the speaker of the house of representatives, not later than December 15 of each even-numbered year. The report shall include:(1) the names and number of CAPCOs holding certified capital;(2) the amount of certified capital invested in each CAPCO;(3) the amount of certified capital the CAPCO has invested in qualified business, including the names and locations of the businesses, as of January 1, 2006, and each subsequent year;(4) the amount of tax credits granted based on certified investments along with the tax credits taken by year;(5) the performance of each CAPCO with respect to renewal and reporting requirements;(6) information concerning qualified businesses in which CAPCOs have invested, and is to include:(A) the classification of the businesses, along with the industrial sector and size of each business;(B) the total number of jobs created by the investment and the average wages paid for the jobs; and(C) the total number of jobs retained as a result of the investment and the average wages paid for the jobs;(7) a list of the CAPCOs that have been decertified or that have failed to renew the certification and the reason for any decertification.(l) Confidentiality: any information containing confidential business or trade secrets shall be kept confidential only to the extent provided by the Texas Public Information Act, Texas Government Code, Chapter 552.",
            "sourceNote": "Source Note: The provisions of this §3.833 adopted to be effective January 23, 2005, 30 TexReg 81; amended to be effective June 17, 2008, 33 TexReg 4673."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=184882&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "184882",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "GG",
                "label": "INSURANCE TAX"
            },
            "rule": {
                "number": "§3.834",
                "label": "Volunteer Fire Department Assistance Fund Assessment"
            },
            "nextRule": {
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                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Annual statement--A comprehensive statement, in the format promulgated by the National Association of Insurance Commissioners (NAIC), of an insurer's financial condition, business operations, and activities, required to be filed with state insurance departments and the NAIC.(2) Insurer--An insurance entity that is authorized to engage in business in this state, including a stock company, mutual, farm mutual, county mutual, Lloyd's plan, or reciprocal or interinsurance exchange, as of the assessment date.(3) Net  direct premium--The total gross direct premium written by an insurer, as reported to the Texas Department of Insurance and reflected on the insurer's NAIC Annual Statement State Page Exhibit for:(A) policies of:(i) homeowner's insurance;(ii) fire insurance;(iii) farm and ranch owner's insurance;(iv) private passenger automobile physical damage insurance; and(v) commercial automobile physical damage insurance; and(B) the nonliability portion of a commercial multiple peril policy.(4) State fiscal year--The time period from September 1 through August 31.(5) Twelve-month period--The time period from January 1 through December 31, which is the same as the tax year and NAIC Annual Statement period.(b) Calculation of the assessment.(1) For state fiscal years beginning September 1, 2013, and September 1, 2014, the comptroller shall assess against all insurers to which this section applies amounts necessary for each state fiscal year, as determined by the Commissioner of Insurance, to collect a combined total equal to the lesser of:(A) $30 million; or(B) the total amount that the General Appropriations Act appropriates from the volunteer fire department assistance fund account in the general revenue fund for  that state fiscal year.(2) For state fiscal years beginning September 1, 2015, and September 1, 2016, the comptroller shall assess against all insurers to which this section applies amounts necessary for each state fiscal year, as determined by the Commissioner of Insurance, to collect a combined total equal to the lesser of:(A) $30 million; or(B) the total amount that the General Appropriations Act appropriates from the volunteer fire department assistance fund account in the general revenue fund for that state fiscal year other than:(i) appropriations for contributions to the Texas Emergency Services Retirement System made under Government Code, §614.104(d) (Fund); and(ii) appropriations to the Texas A&M Forest Service for grants to volunteer fire departments in a total amount not to exceed $11,500,000.(3) For state fiscal years beginning on or after September 1, 2017, the comptroller shall assess against all insurers to which this section applies amounts necessary for each state fiscal year, as determined by the Commissioner of Insurance, to collect a combined total equal to the lesser of:(A) $30 million; or(B) the total amount that the General Appropriations Act appropriates from the volunteer fire department assistance fund account in the general revenue fund for that state fiscal year other than appropriations for contributions  to the Texas Emergency Services Retirement System made under Government Code, §614.104(d).(4) Based on premium data provided by the Texas Department of Insurance compiled from the NAIC Annual Statements filed by insurers, the comptroller will calculate the amount of each insurer's assessment as follows:(A) Divide each insurer's Texas net direct premiums written for the twelve-month period by the total of all insurers' Texas net direct premiums written for the twelve-month period.(B) Multiply the ratios obtained in subparagraph (A) of this paragraph by the total assessment that the Commissioner of Insurance provides to the comptroller. The result is the assessment due from the insurer.(c) Billing date and due date. The comptroller will bill the assessment on or before May 31. Payment of the assessment is due by August 1.(d) Enforcement provisions. Tax Code, Title 2, Subtitles A (General Provisions) and B (Enforcement and Collection), apply to the comptroller's administration, collection, and enforcement of the assessment under Insurance Code, Chapter 2007 (Assessment for Rural Fire Protection).(e) Retaliatory taxes. The assessment may not be included on the retaliatory tax worksheet since insurers may recoup the assessment from policyholders.(f) Recoupment of assessment. An insurer may recover an assessment under this section as provided under Insurance  Code, §2007.005 (Recovery of Assessment). An insurer that recovers the assessment from its policyholders is required by Insurance Code, §2007.006 (Notice to Policyholders) to provide notice to each policyholder regarding the amount of the assessment being recovered on the declarations page, the renewal certificate, or a billing statement.(g) Assessment final date. The amount that is assessed an insurer under Insurance Code, Chapter 2007, is final as of the date the billings are generated by the comptroller. The comptroller will not recalculate the amount due under this section to reflect any amendments to an insurer's Annual Statement. The assessment under Insurance Code, Chapter 2007 is not a deficiency determination under Tax Code,  §111.008 (Deficiency Determination).",
            "sourceNote": "Source Note: The provisions of this §3.834 adopted to be effective September 25, 2002, 27 TexReg 8956; amended to be effective March 30, 2008, 33 TexReg 2552; amended to be effective July 1, 2013, 38 TexReg 4186; amended to be effective July 9, 2017, 42 TexReg 3407."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=164015&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "164015",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "GG",
                "label": "INSURANCE TAX"
            },
            "rule": {
                "number": "§3.835",
                "label": "Reporting of Unauthorized Insurance Premium Tax by Nonadmitted Captive Insurers"
            },
            "nextRule": {
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Captive insurer--An insurance company that is formed for the purpose of insuring the risks of entities that are related to it through common ownership. These may be referred to as single-parent, in-house, or pure captives.(2) Exempt premium--Premium that is not taxable in this state. Examples include premiums on risks or exposures that are properly allocated to federal waters or international waters; premiums on risks or exposures that are under the jurisdiction of a foreign government; and premiums that are specifically exempt from taxation under the regulations of another state.(3) Nonadmitted insurer--An insurer who does not hold a certificate of authority in this state.(4) Preempted premium--Federal preemptions from state taxation exist for premiums on policies that are issued to the following entities:(A) the Federal Deposit Insurance Corporation, when it is the receiver of a failed financial institution that holds the property being insured. The preemption applies to receiverships only, not to supervision or conservatorships;(B) federally chartered credit unions; and(C) the National Credit Union Administration, when acting as conservator or liquidating agent for federally chartered credit unions.(5) Taxable premium--The total gross amount of consideration paid for insurance coverage provided under the contract or policy, including, but not limited to, premiums, premium deposits, membership fees, assessments, dues, policy fees, or any other consideration for insurance that is required to be paid.(6) Texas waters--Waters within 10.359 statute miles or nine nautical miles from the Texas coastline.(b) Properly allocated and apportioned. Premium for a policy that covers risks in Texas and other states or jurisdictions is properly allocated and apportioned when it is divided or distributed to the various states or jurisdictions that are afforded coverage under the policy in accordance with the methods described in this section.(1) The taxpayer must allocate the premium using the allocation standard that most reasonably and equitably apportions the premium applicable to the risk in Texas, other states, and nontaxable jurisdictions based on the type of policy. For example, an allocation based on the percentage of sales in Texas in relation to sales in other states would be a reasonable allocation for a product liability policy, but an allocation based on the percentage of physical assets in Texas would not.(2) The allocation standard chosen must be maintained in the policy file at the office of the taxpayer and must be available for inspection upon request by the comptroller or the comptroller's authorized representative for a minimum of four years from the date the tax report is filed.(3) Acceptable apportionment or premium allocation standards include:(A) percentage of physical assets in Texas;(B) percentage of payroll applicable to employees located or conducting business in Texas;(C) percentage of sales in Texas;(D) percentage of time insured's conduct or property is exposed to coverage in Texas;(E) the total insured value of the property that is located in Texas; and(F) any other method of equitable apportionment that is adequately described by the taxpayer in its records.(c) Determination of premium tax due.(1) Nonadmitted captive insurers must report tax to the comptroller on all premium, excluding exempt premium, preempted premium, and premium that is properly allocated and reported as a taxable premium of another state, that:(A) covers risks or exposures located or resident in this state;(B) is written, procured, or received in this state;(C) is for a policy negotiated in this state; or(D) is written for an insured whose home office or state of domicile or residence is located in this state.(2) In the case of an indemnity policy that reimburses the insured for losses paid, the location of the risk or exposure insured is the location of the insured's home office.(3) No later than March 1 following the calendar year in which the insurance was effectuated, continued, or renewed, and unless otherwise properly allocated and reported, a nonadmitted captive insurer will pay to the comptroller a tax of 4.85% of the taxable premiums described in paragraph (1) of this subsection. The tax under this section, if not paid when due, is a liability of the insurer, the insurer agent, or the insured, and each party is jointly and severally liable for payment of the tax.(4) Insurance Code, §101.053(b)(6) exempts from regulation by the Department of Insurance an activity in this state by or on the sole behalf of a nonadmitted captive insurance company that insures solely:(A) directors' and officers' liability insurance for the directors and officers of the company's parent and affiliated companies;(B) the risks of the company's parent and affiliated companies; or(C) both the individuals and entities described by subparagraphs (A) and (B) of this paragraph.(5) The regulatory exemption under Insurance Code, §101.053(b)(6) does not exempt the insured or the insurer from payment of an applicable tax on premium.(6) Premiums on policies for risks in Texas waters are subject to Texas taxation.(7) All premium taxes are calculated on the total gross premium written for the policy as of the date that coverage becomes effective, except as follows:(A) A policy that is issued for a term in excess of one year with a fixed premium that is payable annually shall be taxed on the first year's premium at the statutory rate as of the date that the policy is effective. The tax on premiums payable for subsequent years shall be computed at the statutory rate as of the date that such subsequent premiums become due and payable. For taxation purposes, that date is the policy anniversary date.(B) Premium deposits made on a policy that provides for retrospective premium adjustments are premiums for such policy as of the effective date of the policy, and are taxed accordingly.(C) Retrospective premium adjustments made under the terms of a policy that require the insured's payment of additional premiums are taxed at the rate originally charged. Retrospective premium adjustments that require the return of a portion of premium or premium deposit are effectuated through a tax refund at the rate originally charged.(d) Business conducted through the mail or by email. Venue for an act performed by mail, facsimile, electronic mail, or other method is the place where the matter transmitted is delivered and takes effect.",
            "sourceNote": "Source Note: The provisions of this §3.835 adopted to be effective October 16, 2013, 38 TexReg 7120."
        },
        {
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            "currentRecordId": "198773",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "CIGAR AND TOBACCO TAX"
            },
            "rule": {
                "number": "§3.121",
                "label": "Definitions, Imposition of Tax, Permits, and Reports"
            },
            "nextRule": {
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Bonded agent--A person in Texas who is a third-party agent of a manufacturer located outside of Texas and who receives tobacco products in interstate commerce and stores the tobacco products for distribution or delivery to distributors under orders from the manufacturer.(2) Cigar--A roll of fermented tobacco that is wrapped in tobacco and that the main stream of smoke from which produces an alkaline reaction to litmus paper.(3) Commercial business location--The entire premises occupied by a permit applicant or a person required to hold a permit under Tax Code, Chapter 155 (Cigar and Tobacco Product Tax). A commercial business location does not include a residence or a unit in a public storage facility.(4) Common carrier--A motor carrier registered under Transportation Code, Chapter 643 (Motor Carrier Registration), or a motor carrier operating under a certificate issued by the Interstate Commerce Commission or its successor agency.(5) Distributor--A person who:(A) receives untaxed tobacco products from a manufacturer for the purpose of making a first sale in Texas;(B) brings or causes to be brought into Texas untaxed tobacco products for sale, use, or consumption;(C) manufacturers or produces tobacco products; or(D) is an importer.(6) Engage in business--A person engaging either directly or through a representative, in any of the following activities:(A) selling tobacco products in or into this state;(B) using a warehouse or another location to store tobacco products; or(C) otherwise conducting through a physical presence tobacco product-related business in this state.(7) Export warehouse--A person in this state who receives untaxed tobacco products from manufacturers and stores the tobacco products for the purpose of making sales to authorized persons for resale, use, or consumption outside the United States.(8) Factory list price--The published manufacturer gross cost to the distributor. The term is synonymous with manufacturer's list price.(9) First sale--Except as otherwise provided by this section, the term means the first transfer of possession in connection with a purchase, sale, or any exchange for value of tobacco products in or into this state, which includes:(A) the sale of tobacco products by a distributor in or outside this state to a distributor, wholesaler, or retailer in this state; and a manufacturer in this state who transfers the tobacco products in this state; and does not include:(i) the sale of tobacco products by a manufacturer outside this state to a distributor in this state; or(ii) the transfer of tobacco products from a manufacturer outside this state to a bonded agent in this state;(B) the first use or consumption of tobacco products in this state; or(C) the loss of tobacco products in this state whether through negligence, theft, or other loss.(10) Importer--A person who ships, transports, or imports into Texas tobacco products manufactured or produced outside the United States for the purpose of making a first sale in this state.(11) Manufacturer--A person who manufactures, fabricates, or assembles tobacco products, or causes or arranges for the manufacture, fabrication, or assembly of tobacco products, for sale or distribution.(12) Manufacturer's representative--A person who is employed by a manufacturer to sell or distribute the manufacturer's tobacco products.(13) Manufacturer's listed net weight--For the purposes of calculating and reporting the state excise tax due on tobacco products other than cigars, the taxable net weight for a tobacco product is the weight of the finished product as shown or listed by the product manufacturer on the product can, package, shipping container, or the report required by Tax Code, §155.103(b) (Manufacturer's Records and Reports).(14) Permit holder--A bonded agent, distributor, importer, export warehouse, manufacturer, wholesaler, or retailer who obtains a permit under Tax Code, §155.041 (Permits).(15) Place of business--(A) a commercial business location where tobacco products are sold;(B) a commercial business location where tobacco products are kept for sale or consumption or otherwise stored and may not be a residence or a unit in a public storage facility;(C) a vehicle from which tobacco products are sold; or(D) a vending machine from which tobacco products are sold.(16) Raw tobacco--Any part of the tobacco plant, including the tobacco leaf or stem, that is harvested from the ground and is not a tobacco product as the term is defined in this section.(17) Retailer--A person who engages in the business of selling tobacco products to consumers and includes the owner of a vending machine.(18) Tobacco product--A tobacco product is:(A) a cigar;(B) smoking tobacco, including granulated, plug-cut, crimp-cut, ready-rubbed, and any form of tobacco substitute for smoking in a pipe or as a cigarette;(C) chewing tobacco, including, Cavendish, Twist, plug, scrap, and any kind of tobacco suitable for chewing;(D) snuff or other preparations of pulverized tobacco; or(E) an article or product that is made of tobacco or a tobacco substitute and that is not a cigarette or an e-cigarette as defined by Health and Safety Code, §161.081 (Definitions).(19) Trade discount, special discount, or deals--Includes promotional incentive discounts, quantity purchase incentive discounts, and timely payment or prepayment discounts.(20) Weight of a cigar--The combined weight of tobacco and nontobacco ingredients that make up the total product in the form available for sale to the consumer, excluding any carton, box, label, or other packaging materials.(21) Wholesaler--A person, including a manufacturer's representative, who sells or distributes tobacco products in this state for resale but who is not a distributor.(b) Imposition of tax. A tax is imposed and becomes due and payable when a permit holder receives cigars or tobacco products for the purpose of making a first sale in this state.(1) Tax Rates.(A) the tax on cigars is calculated at:(i) $.01 per 10 or fraction of 10 on cigars that weigh three pounds or less per thousand;(ii) $7.50 per thousand on cigars that weigh more than three pounds per thousand and that are sold at factory list price, exclusive of any trade discount, special discount, or deal, for 3.3 cents or less each;(iii) $11 per thousand on cigars that weigh more than three pounds per thousand and that are sold at factory list price, exclusive of any trade discount, special discount, or deal, for more than 3.3 cents each, and that contain no substantial amount of nontobacco ingredients; and(iv) $15 per thousand on cigars that weigh more than three pounds per thousand and that are sold at factory list price, exclusive of any trade discount, special discount, or deal, for more than 3.3 cents each, and that contain a substantial amount of nontobacco ingredients.(B) The tax for tobacco products, other than cigars, is based on the manufacturer's listed net weight for an individual product's can or package and a rate for each ounce and proportionate rate on all fractional parts of an ounce of weight for that product. The tax imposed on a can or package of a tobacco product that weighs less than 1.2 ounces is equal to the amount of the tax imposed on a can or package that weighs 1.2 ounces. The rates imposed for state fiscal years 2010, 2011, 2012, 2013, 2014, and thereafter are set forth in this subparagraph. An expanded chart showing rates for cans or packages greater than 1.2 ounces is available at comptroller.texas.gov.(i) The rate for the state Fiscal Year 2010 (September 1, 2009 through August 31, 2010), is $1.10 per ounce plus the proportionate rate on all fractional parts of an ounce.(ii) The rate for the state Fiscal Year 2011 (September 1, 2010 through August 31, 2011), is $1.13 per ounce plus the proportionate rate on all fractional parts of an ounce.(iii) The rate for the state Fiscal Year 2012 (September 1, 2011 through August 31, 2012), is $1.16 per ounce plus the proportionate rate on all fractional parts of an ounce.(iv) The rate for the state Fiscal Year 2013 (September 1, 2012 through August 31, 2013), is $1.19 per ounce plus the proportionate rate on all fractional parts of an ounce.(v) The rate for state Fiscal Year 2014 (which begins September 1, 2013) and for each fiscal year thereafter, is $1.22 per ounce plus the proportionate rate on all fractional parts of an ounce.(C) The tax imposed on a unit that contains multiple individual cans or packages is the sum of the taxes imposed under paragraph (1)(B) of this subsection, on each individual can or package intended for sale or distribution at retail. For example, on November 1, 2009 (Fiscal Year 2010) a distributor receives from a manufacturer for the purpose of making a first sale in Texas a unit of snuff that consists of 10 individual cans. Each can weighs 1.3 ounces. The effective tax rate for each can is $1.43. The total tax due for the unit is calculated by multiplying the effective tax rate on each individual can ($1.43) by the total number of individual cans in the unit (10 cans), for a total tax due of $14.30.(2) Free goods shall be taxed at the prevailing factory list price, except that each tobacco product other than cigars shall be taxed according to the manufacturer's listed net weight for the product and the applicable fiscal year rate for each ounce and proportionate rate for all fractional parts of an ounce according to paragraph (1)(B) of this subsection.(3) A person who receives or possesses tobacco products on which a tax of more than $50 would be due is presumed to receive or possess the tobacco products for the purpose of making a first sale in this state. This presumption does not apply to common carriers or to manufacturers.(4) A tax is imposed on manufacturers, who manufacture tobacco products in this state, at the time the tobacco products are first transferred in connection with a purchase, sale, or any exchange for value in intrastate commerce.(5) The delivery of tobacco products by a principal to its bonded agent in this state is not a first sale.(6) If a manufacturer sells tobacco products to a purchaser in Texas and ships the products at the purchaser's request to a third party distributor in Texas, then the purchaser has received the tobacco products for first sale in Texas.(7) The person in possession of cigars or tobacco products has the burden to prove payment of the tax.(c) Sales and purchase requirements for permit holders. Except for retail sales to consumers, cigarettes may only be sold or distributed by and between permit holders as provided by this section. A permit holder may engage in the following business activities:(1) A manufacturer outside this state who is not a permitted distributor may sell tobacco products only to a permitted distributor.(2) A permitted distributor may sell tobacco products only to a permitted distributor, wholesaler, or retailer.(3) A permitted importer may sell tobacco products only to a permitted distributor, wholesaler, or retailer.(4) A permitted wholesaler may sell tobacco products only to a permitted distributor, wholesaler, or retailer.(5) A permitted retailer may sell tobacco products only to the consumer and may purchase tobacco products only from a permitted distributor or wholesaler.(6) A permitted export warehouse may sell tobacco products only to persons authorized to sell or consume untaxed tobacco products outside the United States.(7) A manufacturer's representative may sell tobacco products only to a permitted distributor, wholesaler, or retailer.(d) Liability of a permitted distributor. A permitted distributor who makes a first sale to a permitted distributor in this state is liable for and shall pay the tax.(e) Permits required. To engage in business as a distributor, importer, manufacturer, export warehouse, wholesaler, bonded agent, or retailer a person must apply for and receive the applicable permit from the comptroller. The permits are not transferable.(1) A person who engages in the business of a bonded agent, distributor, importer, manufacturer, export warehouse, wholesaler, or retailer without a valid permit is subject to a penalty of not more than $2,000 for each violation. Each day on which a violation occurs is a separate offense. A new application is required if a change in ownership occurs (sole ownership to partnership, sole ownership to corporation, partnership to limited liability company, etc.). Each legal entity must apply for its own permit(s). All permits issued to a legal entity will have the same taxpayer number.(2) Each distributor, importer, manufacturer, wholesaler, bonded agent, export warehouse, or retailer shall obtain a permit for each place of business owned or operated by the distributor, importer, manufacturer, wholesaler, bonded agent, or retailer. A new permit shall be required for each physical change in the location of the place of business. Correction or change of street listing by a city, state, or U.S. Post Office shall not require a new permit so long as the physical location remains unchanged.(3) Permits are valid for one place of business at the location shown on the permit. If the location houses more than one place of business under common ownership, an additional permit is required for each separate place of business. For example, a retailer must have a separate permit for each vending machine including several machines at one location.(4) A vehicle from which cigars and tobacco products are sold is a place of business and requires a permit. A motor vehicle permit is issued to a bonded agent, retailer, distributor, or wholesaler holding a current permit. Vehicle permits are issued bearing a specific motor vehicle identification number and are valid only when physically carried in the vehicle having the corresponding motor vehicle identification number. Vehicle permits may not be moved from one vehicle to another. Each cigar or tobacco product manufacturer's sales representative is required to purchase a wholesale dealer's permit for each manufacturer's vehicle operated. No cigar and tobacco product permit is required for a vehicle used only to deliver invoiced tobacco products.(5) The comptroller may issue a combination permit for cigarettes, tobacco products, or cigarettes and tobacco products to a person who is a distributor, importer, manufacturer, wholesaler, bonded agent, or retailer as defined by Tax Code, Chapter 154 (Cigarette Tax) and Chapter 155 (Cigars and Tobacco Products Tax). A person who receives a combination permit pays only the higher of the two permit fees.(6) The comptroller will not issue permits for a residence or a unit in a public storage facility because tobacco products cannot be stored at such places.(f) Permit Period.(1) Bonded agent, distributor, export warehouse, importer, manufacturer, wholesaler, and motor vehicle permits expire on the last day of February of each year.(2) Retailer permits expire on the last day of May of each even-numbered year.(g) Permit Fees. An application for a bonded agent, distributor, manufacturer, wholesaler, motor vehicle, or retailer permit must be accompanied by the required fee.(1) The permit fee for a bonded agent is $300.(2) The permit fee for a distributor is $300.(3) The permit fee for a manufacturer with representation in Texas is $300.(4) The permit fee for a wholesaler is $200.(5) The permit fee for a motor vehicle is $15.(6) The permit fee for a retailer permit issued or renewed is $180. Retailers who fail to obtain or renew a retailer permit in a timely manner are liable for the fee in effect for the applicable permit period, in addition to the fee described in paragraph (8) of this subsection.(7) No permit fee is required to obtain an importer permit, export warehouse, or to register a manufacturer when the manufacturer is located out of state with no representation in Texas.(8) A $50 fee is assessed for failure to obtain or renew a permit in a timely manner.(9) The comptroller prorates the permit fee for new permits according to the number of months remaining in the permit period. If a permit will expire within three months of the date of issuance, the comptroller may collect the prorated permit fee for the current permit period and the total permit fee for the next permit period.(10) A person issued a permit for a place of business that permanently closes before the permit expiration date is not entitled to a refund of the permit fee.(h) Permit issuance, denial, suspension, or revocation.(1) The comptroller shall issue a permit to a distributor, importer, manufacturer, export warehouse, wholesaler, bonded agent, or retailer if the comptroller has received an application and any applicable fee, the applicant has complied with Tax Code, §155.041, and the comptroller determines that the issuance of such permit will not jeopardize the administration and enforcement of Tax Code, Chapter 155.(2) If the comptroller determines that an existing permit should be suspended or revoked or a permit should be denied, after notice and opportunity for hearing, because the applicant has failed to disclose any information required by Tax Code, §155.041(d), (e), and (f), including the applicant's prior conviction of a crime and the relationship of the crime to the license, the comptroller will notify the applicant or permittee in writing by personal service or by mail of the reasons for the denial, suspension, revocation, or disqualification, the review procedure provided by Occupations Code, §53.052 (Judicial Review), and the earliest date that the permit holder or applicant may appeal the denial, suspension, revocation, or disqualification.(i) Sale and delivery of tax-free cigars and tobacco products to the United States government.(1) Distributors may use their own vehicles to deliver previously invoiced quantities of tax-free cigars and tobacco products to instrumentalities of the United States government. These tax-free products must be packaged in a manner in which they will not commingle with any other cigars or tobacco products.(2) Each sale of tax-free cigars and tobacco products by a distributor to an instrumentality of the United States government shall be supported by a separate sales invoice and a properly completed Texas Certificate of Tax Exempt Sale, Form 69-302. Sales invoices must be numbered and dated and must show the name of the seller, name of the purchaser, and the destination.(j) Reports.(1) Manufacturer reports must be filed on or before the 25th day of each month for transactions that occurred during the preceding month.(2) All tobacco distributor and wholesaler reports and payments must be filed on or before the 25th day of each month for transactions that occurred during the preceding month.(3) All wholesaler and distributor reports of sales to retailers required by the comptroller under Tax Code, §155.105 (Reports by Wholesalers and Distributors of Cigars and Tobacco Products), shall be filed in accordance with §3.9 of this title (relating to Electronic Filing of Returns and Reports; Electronic Transfer of Certain Payments by Certain Taxpayers).",
            "sourceNote": "Source Note: The provisions of this §3.121 adopted to be effective June 5, 2003, 28 TexReg 4309; amended to be effective February 18, 2007, 32 TexReg 537; amended to be effective December 2, 2007, 32 TexReg 8520; amended to be effective March 29, 2010, 35 TexReg 2605; amended to be effective September 19, 2018, 43 TexReg 5986; amended to be effective March 16, 2020, 45 TexReg 1859."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=221463&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "221463",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "HH",
                "label": "MIXED BEVERAGE TAXES"
            },
            "rule": {
                "number": "§3.1001",
                "label": "Mixed Beverage Gross Receipts Tax"
            },
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            },
            "ruleBody": "(a) Definitions. The following words and terms, when  used in this section, shall have the following meanings, unless the  context clearly indicates otherwise.(1) Alcoholic beverage--Alcohol, or any beverage containing  more than 0.5% of alcohol by volume, which is capable of use for beverage  purposes, either alone or diluted.(2) Bad debts--The unpaid portion of the gross receipts  on sales or services of mixed beverages that are uncollectible by  the permittee.(3) Cash or ticket bar--A bar at a special function  at which guests can purchase alcoholic beverages.(4) Complimentary alcoholic beverage--An alcoholic  beverage served without any consideration paid to the permittee.(5) Mandatory gratuity charge--Any amount required  by the permittee in excess of the charge for the sale of alcoholic  beverages.(6) Mixed beverage--A serving of a beverage composed  in whole or in part of an alcoholic beverage in a sealed or unsealed  container of any legal size for consumption on the premises where  served or sold by a permittee.(7) Open bar--A bar at a special function at which  alcoholic beverages have been paid for by the host or are prepaid  through an admission fee. This differs from the provision of complimentary  alcoholic beverages in that the alcoholic beverages are purchased  by the host or donated to the host for the purpose of being served  for free at the special function.(8) Permittee--A person who holds any of the following  permits issued by the Texas Alcoholic Beverage Commission: a mixed  beverage permit, private club registration permit, private club exemption  certificate permit, private club registration permit with a retailer  late hours certificate, nonprofit entity temporary event permit, private  club registration permit with a food and beverage certificate, mixed  beverage permit with a late hours certificate, mixed beverage permit  with a food and beverage certificate, or distiller's and rectifier's  permit. The term includes an agent, servant, or employee of that person.(9) Qualified employees--Employees who customarily  and regularly provide the service upon which a gratuity is based,  including, but not limited to, waiters, waitresses, busboys, service  bartenders, wine stewards, and maîtres d'hôtel.  The term does not include janitorial help, chefs, cashiers, or dishwashers. (10) Reasonable mandatory gratuity charge--A mandatory  gratuity charge that does not exceed 20%.(11) Source record--A dated customer service check  or ticket; a dated cash register receipt, if coded to reflect all  information required by subsection (k) of this section; or the equivalent  of a dated customer service check or a dated cash register receipt,  subject to approval by the comptroller.(12) Temporary membership card--A card printed and  sold to a private club by the Texas Alcoholic Beverage Commission  to be sold by the private club to an individual that entitles the  individual to all the privileges of membership in the private club  for a period not to exceed three days. The card also entitles the  holder to bring not more than three persons into the private club  as the holder's guests.(13) Voluntary gratuity--An amount added to the bill  by the purchaser or money given freely by the purchaser over and above  the price charged for the sale or service of alcoholic beverages.(14) Walked checks or tabs--An industry term that refers  to the instance of a customer that on a particular business day consumes  alcoholic beverages and leaves the permittee's premises without paying  or providing the appropriate consideration for the alcoholic beverages.  These differ from bad debts in that no agreement exists to extend  credit to the customer; and these differ from complimentary alcoholic  beverages in that the intent is to sell the alcoholic beverages and  not be given away as complimentary alcoholic beverages.(b) Mixed beverage gross receipts tax. Effective January  1, 2014, the rate of the tax is reduced from 14% to 6.7%. The tax  is imposed on the gross receipts of a permittee received from the  sale, preparation, or service of alcoholic beverages or from the sale,  preparation, or service of ice or nonalcoholic beverages that are  sold, prepared, or served for the purpose of being mixed with an alcoholic  beverage and consumed on the premises of the permittee. The mixed  beverage gross receipts tax is imposed in addition to the mixed beverage  sales tax imposed under Tax Code, Chapter 183, Subchapter B-1 (Mixed  Beverage Sales Tax).(1) Gross receipts tax imposed on permittee, not customer.  The mixed beverage gross receipts tax is a tax on gross receipts.  The tax may not be separately charged to or paid by the customer and  cannot be considered included in the gross receipts amount. A receipt,  bill, or other invoice for the sale or service of alcoholic beverages  may not include a charge labeled a \"Tax Reimbursement.\"(2) Monthly mixed beverage gross receipts tax reports.  Each permittee must file a monthly mixed beverage gross receipts tax  report on or before the 20th day of the following month even if no  sales or services of alcoholic beverages were made during the month.  The Texas Mixed Beverage Gross Receipts Tax report is due in addition  to the Texas Mixed Beverage Sales Tax report required to be filed  under Tax Code, Chapter 183, Subchapter B-1, and the Texas Sales and  Use Tax report required to be filed under Tax Code, Chapter 151 (Limited  Sales, Excise, and Use Tax).(3) Separate tax disclosure statement. For informational  purposes only, a permittee may add a separate statement on a customer's  invoice, bill, or other receipt that is not shown as part of the charges  to the customer and that clearly discloses:(A) the amount of mixed beverage gross receipts tax  to be paid by the permittee to the comptroller on that sale; or(B) the total amount of mixed beverage gross receipts  tax to be paid by the permittee to the comptroller combined with the  amount of mixed beverage sales tax collected by the permittee to be  remitted to the comptroller on that sale.(c) Taxable mixed beverage gross receipts.(1) The mixed beverage gross receipts tax base includes,  but is not limited to, receipts for the following items:(A) receipts from the sale or service of alcoholic  beverages;(B) receipts from the sale or service of nonalcoholic  beverages that are mixed and consumed with alcoholic beverages on  the permittee's premises;(C) receipts from cover charges, door charges, entry  fees, or admission fees when the Texas Alcoholic Beverage Commission  has determined that the collection of the cover charge, door charge,  entry fee, or admission fee is in violation of the Texas Alcoholic  Beverage Commission rules or regulations. In this instance the tax  base is the entire receipts from the cover charge, door charge, entry  fee, or admission fee plus the reduced sales or service prices received  for the alcoholic beverages;(D) the normal selling price of alcoholic beverages  served with meals with no separate charge. If the specific alcoholic  beverage is being sold or served at a reduced price at the same time  as the meal, the tax base for the alcoholic beverage is the reduced  price;(E) any portion of a reasonable mandatory gratuity  charge that is not disbursed to qualified employees;(F) the entire mandatory gratuity charge when in excess  of 20%, regardless of how the gratuity is disbursed;(G) miscellaneous charges in conjunction with the sale  or service of alcoholic beverages such as bar set-up fees, bartender  fees, corkage fees, maîtres d'hôtel charges, etc.;(H) all sales or services of alcoholic beverages by  caterers; and(I) all sales of coupons, tokens, tickets, etc., that  are redeemed or used in any manner to purchase or pay for the sale  or service of an alcoholic beverage.(2) Thefts of money or legal tender received from the  sale or service of alcoholic beverages are not deductible from the  mixed beverage gross receipts tax base.(d) Private clubs, special events, and functions. The  gross receipts from alcoholic beverages served at special events or  functions, such as golf or tennis tournaments at private clubs when  a lump-sum charge entitles the member or guest to various items such  as green fees, food, alcoholic beverages, golf cart rentals, etc.,  shall be computed by one of the following methods.(1) The club shall maintain documentation that shows  the normal cost to a member or guest for each of the items provided  for the lump-sum charge. The permittee may then compute the percentage  of the total of all the charges attributable to the sale or service  of the alcoholic beverages. This percentage is then applied to the  actual lump-sum amount paid by the member or guest to determine the  amount of gross receipts subject to the mixed beverage gross receipts  tax. For example, if the total of all the items would normally cost  $300 and the permittee estimates that the portion attributable to  the sale or service of alcoholic beverages is $30, then 10% of the  actual lump-sum amount would be reported as subject to the mixed beverage  gross receipts tax. If the lump-sum amount paid by the member or guest  is $200, then the mixed beverage gross receipts tax base would be  $20. The documentation used by the permittee is subject to review  by the comptroller's personnel and any amounts determined to be inaccurate  or unreasonable may be adjusted.(2) The permittee may choose to use the normal sales  or service prices of the alcoholic beverages as the tax base for the  mixed beverage gross receipts tax.(e) Nonprofit organizations holding fundraising and  other special events where 100% of the net profit of the event goes  to the nonprofit organization. Nonprofit organizations with an IRS  Section 501(c)(3), (4), (8), (10), or (19) status who are permittees,  are responsible for paying the mixed beverage gross receipts tax as  follows:(1) if tickets are sold to an event with an open bar,  the nonprofit organization owes mixed beverage gross receipts tax  on the cost to the organization of any alcoholic beverages purchased  for the event;(2) if tickets are sold to an event with an open bar  and the alcoholic beverages are donated to the nonprofit organization,  the nonprofit organization does not owe mixed beverage gross receipts  tax or use tax as provided by Tax Code, Chapter 151, on the donated  alcoholic beverages, but owes mixed beverage gross receipts tax on  the cost of any alcoholic beverages purchased for the event;(3) if an event is one with a cash or ticket bar (with  or without an entry fee), the nonprofit organization owes mixed beverage  gross receipts tax on the total receipts from the sale and service  of alcoholic beverages;(4) if an event is one with no entry fee and an open  bar, the nonprofit organization does not owe mixed beverage gross  receipts tax, but owes use tax as provided by Tax Code, Chapter 151,  on the cost of any alcoholic beverages purchased by the organization  for the event.(f) Items excluded from the mixed beverage gross receipts  tax base. The mixed beverage gross receipts tax does not apply to  receipts for the items described in this subsection.(1) Complimentary alcoholic beverages. Use tax as provided  by Tax Code, Chapter 151, is due on the taxable ingredients of the  complimentary alcoholic beverages. A serving of an alcoholic beverage  shall not be a complimentary alcoholic beverage if any consideration  is paid to the permittee, which may include, but is not limited to,  the following: the alcoholic beverage is served in connection with  food or any other thing sold to the recipient or an entertainment  or entry fee is charged that includes one or more drink coupons or  tickets. Any alcoholic beverage served under the identified or similar  conditions is subject to the gross receipts tax, computed on the basis  of the normal charge for the sale or service of such alcoholic beverage.(2) Complimentary alcoholic beverages served during  promotional periods such as happy hours at hotels or motels. If, however,  there is an increase in guest room rates attributable to the promotional  periods, the comptroller will have the option to tax either the increase  in the room rate under Tax Code, Chapter 156 (Hotel Occupancy Tax),  or assess use tax on the taxable ingredients of the complimentary  drinks. The comptroller will have the authority to use information  such as the room rates at comparable hotels and motels in the area  to determine if an increased rate is attributable to the promotional  period of alcoholic beverages.(3) Complimentary alcoholic beverages served to holders  of free drink cards or free drink tokens, for which no consideration  was paid to the permittee.(4) Voluntary gratuities.(5) Reasonable mandatory gratuity charges, subject  to the requirements of subsection (i)(1) of this section.(6) Walked checks or tabs.(7) Receipts from cover charges, door charges, entry  fees, or admission fees that are for entertainment, food specials,  and other purposes, and receipts from the sale of temporary membership  cards. Sales tax as provided by §3.298 of this title (relating  to Amusement Services) is due on these receipts.(8) Alcoholic beverages sold by a permittee for off-premises  consumption.(9) Bad debts. For more information on bad debt refunds  or credits, refer to subsection (n) of this section.(10) Mixed beverage sales taxes. Mixed beverage sales  taxes are not part of the mixed beverage gross receipts tax base.  A permittee who sells mixed drinks with mixed beverage sales tax included  in the sales price should deduct the mixed beverage sales tax before  calculating the mixed beverage gross receipts tax base.(g) Alcohol loss. No mixed beverage gross receipts  tax is due on alcoholic beverages destroyed due to spillage or breakage. (h) Inventory for cooking. No mixed beverage gross  receipts tax is due on alcoholic beverages used in cooking.(1) Purchases. Purchases of alcoholic beverages used  in cooking must be documented either:(A) by purchase invoices that have such beverages clearly  denoted by either the seller or purchaser; or(B) by separate purchase invoice.(2) Storage. Alcoholic beverages used in cooking may  be stored with regular bar stock or in a separate storage area.(3) Use. The withdrawal from inventory of alcoholic  beverages used in cooking must be recorded at the time of withdrawal  on a service check or other permanent source record. Use tax as provided  by Tax Code, Chapter 151, is not due on alcoholic beverages used in  cooking.(i) Mandatory gratuity charges.(1) Reasonable mandatory gratuity charges are excluded  from the mixed beverage gross receipts tax base if they are:(A) separated from the sales price of the alcoholic  beverage served;(B) identified as a tip or gratuity by any reasonable  means, including such terms as service fee or service charge; and(C) disbursed to qualified employees. Any portion of  a reasonable mandatory gratuity charge that is retained by the employer  is included in the mixed beverage gross receipts tax base.(2) Mandatory gratuity charges in excess of 20%. If  a mandatory gratuity charge exceeds 20% then the entire mandatory  gratuity charge is included in the mixed beverage gross receipts tax  base regardless of how the gratuity is disbursed.(j) Record requirement. Records required by the comptroller  for mixed beverage permittees must be kept for a minimum of four years  and throughout any period in which any tax, penalty, or interest may  be assessed, collected, or refunded by the comptroller, or in which  an administrative hearing or judicial proceeding is pending. Records  must be made available upon request within a reasonable time for examination  by the comptroller or authorized agents or employees. The records,  in general, must be contemporaneous and must reflect the total gross  receipts from the sale or service of alcoholic beverages and those  associated services that are subject to the gross receipts tax, as  provided by subsections (c), (d) and (e) of this section. Records  may be written documents or their electronic equivalents. Permittees  must contact the Texas Alcoholic Beverage Commission for information  concerning Texas Alcoholic Beverage Commission record keeping requirements.(k) Source records.(1) The information described in this subsection is  required to be printed on a source record in a manner that makes such  information clearly evident or by a system of symbols (codes) if such  symbols and their meaning are printed on the source record or maintained  on the licensed premises.(A) Each individual serving of an alcoholic beverage  and the price charged. When using service checks, it is permissible  to make one entry on a service check for more than one individual  serving if all of the servings are of the same type (e.g., 3 Scotch &  Water @ $2.00 = $6.00). If all of the servings are not of the same  type, a separate entry must be made on the service check for each  type of service (e.g., 3 Scotch & Water @ $2.00 = $6.00, 2 Rum &  Coke @ $2.00 = $4.00). When using a cash register only, regardless  of the type of service, each individual serving must be rung up separately.  When using a combination of service checks and a cash register, it  is not necessary to itemize each serving on the cash register tape  if all the required information is shown on the service check.(B) For an alcoholic beverage not served as an individual  separate serving, the unit of the serving used and the price charged.  When using service checks, units of servings that are more than an  individual separate serving shall be recorded as such (e.g., 2 pitchers  of a malt beverage @ $3.25 = $6.50, 1 pitcher of daiquiri @ $6.00  = $6.00). When using a cash register only, each unit of serving which  is more than an individual separate serving must be rung up separately,  with the price list identifying the unit of serving. When using a  combination of service checks and a cash register, it is not necessary  to itemize each serving on the cash register tape if all the required  information is shown on the service check.(C) Each separate serving or other unit shall be clearly  identified as to the kind of drink (e.g., daiquiri, tequila sunrise)  or class of beverage (e.g., malt beverage, wine, whiskey). If a cash  register does not have sufficient keys for the classification, the  price list used for identifying the units of servings must also identify  the kinds of servings.(D) The date of the transaction. For this purpose the  \"date\" begins as of 3:00 a.m. one day and continues until 3:00 a.m.  the next day.(E) Complimentary alcoholic beverages, which shall  be recorded on service checks only. A check must be prepared for each  individual or party served. The check should be prepared as if the  service of the complimentary alcoholic beverage was a normal sale  and then clearly marked as being complimentary. The service checks  should be grouped daily and filed with the daily summary showing the  information on the summary as required by subsection (l) of this section.(F) Mandatory gratuity charges that exceed 20% of the  charge for alcoholic beverages must be recorded and identifiable on  a source record. A reasonable mandatory gratuity charge must be recorded  and identifiable on the source record only if the gratuity is disbursed  to recipients other than qualified employees, including, for example,  owners, club managers with no direct involvement in the particular  event, janitorial help, chefs, cashiers, and dishwashers. Voluntary  gratuities are not to be recorded on a source record.(2) Source records shall be maintained in sequence  by date.(l) Daily Summaries. Each permittee must maintain a  daily summary that includes the following information:(1) all information required to be recorded on source  records;(2) complimentary alcoholic beverages dispensed, showing  the number of services, type of service, kind of drink, and normal  selling price;(3) alcoholic beverages that were lost through theft,  showing the number of containers lost by size, brand, and class. The  theft must be reported to the proper police department and must be  substantiated by the report of such police department;(4) alcoholic beverages that were lost through a disaster,  showing the number of containers lost by size, brand, and class. The  disaster must be reported to the comptroller;(5) alcoholic beverages that were lost through breakage  or spillage, showing the number of containers lost by size, brand,  and class or type of drink and size. A written report must be prepared  at the time of the loss;(6) alcoholic beverages that were lost through the  cleaning, servicing, or repair of dispensing equipment lines, showing  the amount lost by class or type of drink and supported by:(A) reports prepared by the permittee at the time of  the malfunction; or(B) repair/service invoices prepared by the repair/service  company;(7) alcoholic beverages taken from inventory for use  in cooking;(8) cover charges, door charges, entry fees, or admission  fees. Cover charges, door charges, entry fees, and admission fees  are subject to sales tax as provided by §3.298 of this title,  unless the Texas Alcoholic Beverage Commission determines that the  cover charges, door charges, entry fees, or admission fees collected  are in violation of the Texas Alcoholic Beverage Commission rules  or regulations; and(9) information pertaining to changes made during the  month concerning prices, glass sizes, bulk machine (e.g., margarita  machine) recipes, ounces per serving, parties, or promotions.(m) Purchase invoices.(1) A record of all alcohol and alcoholic beverages  purchased or received showing the date, the name and address of the  person from whom purchased or received, the location from where shipped,  the location received, the quantity and kind of beverage (brand and  class) received, and the total price paid for each brand and class  received.(2) Alcoholic beverages used in mixing drinks as the  secondary ingredient (e.g., vermouth, triple sec) must be supported  by purchase invoices which have such beverages clearly denoted by  the purchaser.(n) Bad debts refund or credit.(1) A permittee may take a credit against taxes to  be paid to the comptroller or claim a refund on taxes paid to the  comptroller for bad debt on sales if the permittee:(A) determines that the unpaid portion will be uncollectible; (B) enters the unpaid portion of the sales gross receipts  on their books as a bad debt; and(C) claims the bad debt as a deduction for federal  tax purposes during the same or subsequent reporting period.(2) To establish bad debt credit or refund, a permittee's  records must show:(A) date of sale or service;(B) name and address of purchaser;(C) source records of sale or service;(D) evidence that the gross receipts tax was paid to  the comptroller;(E) all payments or credits applied to the account  of the purchaser;(F) a designation that the account is a bad debt; and(G) evidence that the account has been or will be claimed  as a bad debt deduction for federal income tax purposes.(3) To determine the amount of bad debt allowance for  tax, all payments or credits in reduction of a customer's account  must be applied ratably between alcoholic beverages and other goods  sold to that customer.(4) If all or part of the amount claimed as a bad debt  is later collected, the amount collected must be reported as a taxable  receipt in the reporting period in which the collection was made.(5) Accounts may not be labeled as a bad debt for the  purpose of delaying the payment of the mixed beverage gross receipts  tax.(o) Audit and examination of tax account.(1) Determination of tax liability. In examining the  tax account of any permittee, the comptroller may compute and determine  the amount of gross receipts tax liability based on reports filed  with the comptroller, records or information obtained from the permittee,  records or information obtained from any seller who furnished alcoholic  beverages to the permittee, or such other information as may come  to the attention of the comptroller. The comptroller presumes that  the disposition of all alcoholic beverages purchased by the permittee  is taxable until established otherwise.(2) Access to all information. The comptroller may  examine all books, records, papers, documents, supplies, and equipment  of a permittee. Additional records that may be required to be presented  include, but are not limited to, the following:(A) all procedure and operation manuals;(B) all financial ledgers, journals, and registers;(C) all financial statements prepared internally or  by an outside bookkeeper, accountant, or certified public accountant;(D) all bank statements;(E) all federal income tax returns; and(F) all state and federal employment tax returns and  supporting documents.(3) Failure to maintain or make records available for  audit. In examining the tax account of each permittee, if the comptroller  finds that the permittee has failed to maintain or make available  the records required by any regulation of the comptroller, the comptroller  may compute and determine the amount of the gross receipts tax liability  from any available source or records, and estimates of the tax liability  may be made by use of any available records for any period for which  the permittee has failed to maintain records or file a report with  the comptroller. In the event records are not made available, the  comptroller will presume all alcohol purchased was sold. In the absence  of records or evidence to the contrary, the comptroller may use an  average pour size of 1.25 ounces for liquor; 16 ounces for a malt  beverage; and 6 ounces for wine.",
            "sourceNote": "Source Note: The provisions of this §3.1001 adopted\r\nto be effective April 3, 1996, 21 TexReg 2475; amended to be effective\r\nDecember 13, 1999, 24 TexReg 11122; amended to be effective October\r\n6, 2008, 33 TexReg 8398; amended to be effective April 28, 2015, 40\r\nTexReg 2276; amended to be effective October 30, 2024, 49 TexReg 8590."
        },
        {
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            "currentRecordId": "221350",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "HH",
                "label": "MIXED BEVERAGE TAXES"
            },
            "rule": {
                "number": "§3.1002",
                "label": "Mixed Beverage Sales Tax"
            },
            "nextRule": {
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                "recordId": "198185",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Alcoholic beverage--Alcohol, or any beverage containing more than 0.5% of alcohol by volume, which is capable of use for beverage purposes, either alone or diluted.(2) Complimentary alcoholic beverage--An alcoholic beverage served without any consideration paid to the permittee.(3) Governmental entity--The United States; an unincorporated instrumentality of the United States; a corporation that is an agency or instrumentality of the United States and is wholly owned by the United States or by another corporation wholly owned by the United States; the state of Texas; a county, city, special district, or other political subdivision of Texas; or other state or governmental unit boarding Texas but only to the extent those units exempt or do not impose tax on similar sales of items to Texas or a political subdivision of Texas.(4) Nonprofit organization--An organization that is exempted from the sales and use tax imposed under Tax Code, Chapter 151, by operation of Tax Code, §151.310(a) (Religious, Educational, and Public Service Organizations).(5) Permittee--A person who holds any of the following permits issued by the Texas Alcoholic Beverage Commission: a mixed beverage permit, private club registration permit, private club exemption certificate permit, private club registration permit with a retailer late hours certificate, nonprofit entity temporary event permit, private club registration permit with a food and beverage certificate, mixed beverage permit with a late hours certificate, mixed beverage permit with a food and beverage certificate, or distiller's and rectifier's permit. The term includes an agent, servant, or employee of that person.(b) Mixed beverage sales tax. A tax at a rate of 8.25% is imposed on each alcoholic beverage sold, prepared, or served by a permittee, and on ice and each nonalcoholic beverage sold, prepared, or served by a permittee to be mixed with alcohol and consumed on the permittee's premises. The sales price of each item on which mixed beverage sales tax is imposed includes, but is not limited to, those items identified in §3.1001(c) of this title. Those items identified in §3.1001(f)(1) - (8) of this title are excluded from the sales price of items on which mixed beverage sales tax is imposed. Mixed beverage sales tax is imposed in addition to the mixed beverage gross receipts tax imposed under Tax Code, Chapter 183, Subchapter B.(c) Administration, collection, and enforcement of mixed beverage sales tax.(1) Except as otherwise provided in this paragraph, mixed beverage sales tax is administered, collected, and enforced in the same manner as sales and use tax is administered, collected, and enforced in Tax Code, Chapter 151, except:(A) a permittee may not deduct or withhold any amount of taxes collected as reimbursement for the cost of collecting the tax, pursuant to Tax Code, §151.423 (Reimbursement to Taxpayer for Tax Collection);(B) a permittee may not receive a discount for prepaying the tax, pursuant to Tax Code, §151.424 (Discount for Prepayments); and(C) any record, report or other instrument required to be filed by a permittee is not confidential under Tax Code, §151.027(a) (Confidentiality of Tax Information).(2) Tax due is debt of the purchaser. Mixed beverage sales tax is a debt of the purchaser to the permittee until collected.(3) Tax-included sales price. The total amount shown on a customer's sales invoice, billing, service check, ticket, or other receipt for sales that are subject to mixed beverage sales tax is presumed to be the sales price, without tax included. Contracts, bills, invoices, or other receipts that merely state that \"all taxes\" are included are not sufficient to relieve either the customer or the permittee of their tax responsibilities on the transaction. The permittee may overcome the presumption by using the permittee's records to show that tax was included in the sales price.(4) Record-keeping requirements. Permittees are responsible for creating and maintaining records of purchases and sales as required by §3.1001(j) - (m) and (o) of this title.(5) Bad debts. Bad debt deductions from mixed beverage sales tax are treated in the same manner as bad debt deductions from sales tax. For more information on bad debt deductions from sales tax, refer to §3.302 of this title (relating to Accounting Methods, Credit Sales, Bad Debt Deductions, Repossession, Interest on Sales Tax, and Trade-Ins). The exclusion of bad debts from the mixed beverage gross receipts tax base, as established in §3.1001(n) of this title, does not apply to mixed beverage sales tax.(d) Separate tax disclosure statement.(1) A permittee may include on a customer's sales invoice, billing, service check, ticket, or other receipt that includes an item subject to mixed beverage sales tax:(A) a statement that mixed beverage sales tax is included in the sales price;(B) a separate statement of the amount of mixed beverage gross receipts tax to be paid by the permittee on that sale;(C) a separate statement of the amount of mixed beverage sales tax imposed on that item;(D) a statement of the combined amount of mixed beverage gross receipts tax and mixed beverage sales tax to be paid on that item; or(E) a statement of the combined amount of mixed beverage sales tax and sales and use tax imposed under Tax Code, Chapter 151, to be paid on all items listed on that sales invoice, billing, service check, ticket, or other receipt.(2) Mixed beverage gross receipts tax cannot be charged to or paid by the customer. A receipt with a statement of the combined amount of mixed beverage gross receipts tax and mixed beverage sales tax provided in paragraph (1)(D) of this subsection must clearly show that the customer is not being charged mixed beverage gross receipts tax.(3) For each receipt with a statement of the combined amount of mixed beverage sales tax and sales and use tax, as provided in paragraph (1)(E) of this subsection, the permittee's books and records must clearly show the amount of mixed beverage sales tax and sales and use tax on each sale of alcohol.(e) Complimentary beverages. A permittee owes sales and use tax, as imposed by Tax Code, Chapter 151, on the purchase of alcoholic beverages, ice, and nonalcoholic beverages that are ingredients of a complimentary alcoholic beverage or that are served or provided by the permittee, without any consideration from the customer, to be mixed with a complimentary alcoholic beverage and consumed on the permittee's premises. The permittee also owes sales and use tax on taxable items that are furnished with a complimentary alcoholic beverage, such as napkins and straws.(f) Exemptions; governmental entities; nonprofit organizations; university and student organizations; volunteer fire departments; temporary permit.(1) Governmental entity exempt on purchase of alcohol. A governmental entity can claim an exemption from mixed beverage sales tax on the purchase of alcohol in the same manner as a governmental entity can claim exemption from the payment of sales and use tax on the purchase of alcohol under Tax Code, §151.309.(2) Purchase of alcohol by nonprofit organization not exempt. A nonprofit organization cannot claim an exemption from the mixed beverage sales tax on the purchase of alcohol. In addition, except as provided in this subsection, a nonprofit organization is responsible for collecting mixed beverage sales tax on the sale, preparation, or service of alcoholic beverages to the same extent that the organization is responsible for paying mixed beverage gross receipts tax on such beverages. For more information, refer to §3.1001(e) of this title.(3) Nonprofit organizations; fundraising events.(A) The sale, preparation, or service of alcohol is exempt from mixed beverage sales tax when sold by a nonprofit organization that qualifies for exemption from sales and use tax under Tax Code, §151.310(a)(1) or (2) during a qualifying fundraising sale or auction authorized by Tax Code, §151.310(c).(B) Except as provided in subparagraph (A) of this paragraph, the sale, preparation, or service of alcohol by a nonprofit organization that qualifies for exemption from sales and use tax under Tax Code, §151.310(a)(1) or (2) is computed in the same manner as mixed beverage gross receipts tax is computed in §3.1001(e) of this title.(4) University and college student organizations. The sale, preparation, or service of alcohol is exempt from mixed beverage sales tax when sold by a university or college student organization that is certified as an affiliated organization by a university or college as defined in Education Code, §61.003 (Definitions) during a sale authorized by Tax Code, §151.321 (University and College Student Organizations).(5) Volunteer fire departments; fundraising events. The sale, preparation, or service of alcohol is exempt from mixed beverage sales tax when sold by a volunteer fire department that qualifies for exemption from sales and use tax under Tax Code, §151.310(a)(4) during a qualifying fundraising sale or auction authorized by Tax Code, §151.310(c-1). This exemption is effective May 28, 2015. A previous exemption from mixed beverage sales tax on the sale, preparation, or service of alcohol when sold by volunteer fire departments at fundraising events expired on September 1, 2014.(6) Temporary mixed beverage permit required. Nonprofit organizations, university or college student organizations, and volunteer fire departments must hold a permit, license or certificate, issued by the Texas Alcoholic Beverage Commission, in order to sell alcoholic beverages and claim an exemption from mixed beverage sales tax on those sales pursuant to paragraphs (3) - (5) of this subsection.(7) Governmental entities and nonprofit organizations owe mixed beverage gross receipts tax. A governmental entity or nonprofit organization is not exempt from the payment of mixed beverage gross receipts tax on receipts from the sale, service, or preparation of alcoholic beverages. This includes sales of alcohol during any fundraising sale or auction. For more information, refer to §3.1001(e) of this title.(g) Lump-sum charges that include alcoholic beverages and additional items together for a single price.(1) Permittees shall compute mixed beverage sales tax on alcoholic beverages that are served together with meals for a single charge in the same manner as mixed beverage gross receipts tax is computed in §3.1001(c)(1)(D) of this title.(2) Permittees shall compute mixed beverage sales tax on alcoholic beverages that are served at private clubs, special events, or functions in the same manner as mixed beverage gross receipts tax is computed in §3.1001(d) of this title.(h) Inventory used in cooking. Alcoholic beverages used in cooking are exempt from both mixed beverage sales tax under Tax Code, Chapter 183, and sales and use tax under Tax Code, Chapter 151, provided that the permittee follows the record-keeping requirements set out in §3.1001(h) and (l) of this title.(i) Monthly mixed beverage sales tax reports. Each permittee must file a monthly mixed beverage sales tax report on or before the 20th day of the following month even if no sales or services of alcoholic beverages were made during the month. Reports and payments due on a Saturday, Sunday, or legal holiday may be submitted on the next business day. The Texas Mixed Beverage Sales Tax report is due in addition to the Texas Mixed Beverage Gross Receipts Tax report to be filed under Tax Code, Chapter 183, Subchapter B, and the Texas Sales and Use Tax report required to be filed under Tax Code, Chapter 151.",
            "sourceNote": "Source Note: The provisions of this §3.1002 adopted to be effective April 27, 2015, 40 TexReg 2278; amended to be effective May 8, 2016, 41 TexReg 3146; amended to be effective March 16, 2020, 45 TexReg 1860; amended to be effective October 30, 2024, 49 TexReg 8591."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19756&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19756",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "I",
                "label": "MISCELLANEOUS OCCUPATION TAX"
            },
            "rule": {
                "number": "§3.143",
                "label": "Oil, Gas, and Related Well Service"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=158113&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "158113",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Incomplete service--A service precluded or terminated without the benefit contracted for being produced (whether or not equipment is connected to the well).(2) Primary taxable service--Includes:(A) cementing the casing seat of any oil or gas well;(B) shooting, fracturing, or acidizing the sands or other formations of the earth in any such well; and(C) surveying or testing such formations or the contents thereof, in any such well through the use of instruments or equipment at least a portion of which instruments or equipment is located within the well bore when the survey or test is made.(3) Waiting or standby time--That portion of the time billed at a reduced rate because the equipment for which such billing is made was not actually used in the performance of a taxable service during such period.(b) Tax receipts. The following receipts shall be considered as taxable.(1) Any tax imposed by the Texas Tax Code, §191.082, which is collected from the consumer by the person performing the taxable services shall be included in the taxpayer's gross receipts subject to the tax imposed by the Texas Tax Code, §191.082.(2) Any receipts for service performed in direct connection with the primary taxable service when performed simultaneously with such taxable service, such as:(A) services performed in direct connection with the addition of materials to enhance injection or recovery of fracturing fluids or formation dissolving acids; or(B) casing pumps or other equipment utilized to keep packers in place during fracturing and acidizing operations; and(3) any receipts for \"mixing, blending, proportioning,\" or other similar activity, whenever such activity is performed by means of equipment connected to the well either directly or indirectly.(c) Nontaxable receipts. The following receipts are not taxable provided they are invoiced separately or otherwise substantiated:(1) any receipts for equipment taken to the well location but not connected in any way to the well or other equipment;(2) receipts attributable to reasonable mileage charges for \"waiting\" or \"standby\" time, or incomplete service;(3) receipts associated with services performed in converting an oil or gas well into an injection well;(4) sales tax reimbursement;(5) any receipts for service performed before or after a taxable service has been commenced or completed, such as:(A) use of jet guns or other similar devices to perforate or to clean perforations preparatory to fracturing or acidizing; and(B) surveying preparatory to fracturing or acidizing when not for location or determination of a producing formation;(6) that portion of any receipts which represents the value at the well of any materials used, consumed, expended, or incorporated into the well; and(7) receipts for frac tank services.",
            "sourceNote": "Source Note: The provisions of this §3.143 adopted to be effective January 1, 1976; amended to be effective May 14, 1979, 4 TexReg 1301; amended to be effective June 27, 1979, 4 TexReg 2142; amended to be effective June 3, 1985, 10 TexReg 1583."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=158113&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "158113",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "J",
                "label": "PETROLEUM PRODUCTS DELIVERY FEE"
            },
            "rule": {
                "number": "§3.151",
                "label": "Imposition, Collection, and Bonds or Other Security of the Fee"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=143206&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "143206",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) The Texas Petroleum Products Delivery Fee is imposed, collected, and paid to the state by operators of bulk facilities. The fee is assessed when petroleum products are withdrawn from the bulk facility and delivered into a cargo tank or barge or imported into this state in a cargo tank or barge for delivery to another location for distribution or sale. The fee is not assessed when the fuel is destined for delivery to another bulk facility, an electrical generating plant, a common carrier railroad for its exclusive use, or is to be exported from the state prior to being placed into intermediate storage tanks.(b) For the purposes of this section, withdrawals from a bulk facility into a cargo tank or barge are not subject to the fee when the entire withdrawal is delivered into the fuel supply tanks of vessels or boats prior to being placed into intermediate storage tanks.(c) The fee is collected by the operator of a bulk facility from the person ordering the withdrawal. The fee is set by the Texas Commission on Environmental Quality subject to Water Code, §26.3574(b-1).(d) In determining the amount of fee due for motor gasoline, other alcohol blended fuels, and aviation gasoline, each net temperature corrected withdrawal of 7,000 gallons or more but less than 10,000 gallons shall be presumed to have been a delivery into a cargo tank having a capacity of 8,000 gallons or more but less than 10,000 gallons.(e) In determining the amount of fee due on all withdrawals not covered by subsection (d) of this section, it shall be presumed that the capacity of the cargo tank or barge is equal to the total net temperature corrected quantity of product withdrawn.(f) For the purposes of this section, a bulk facility is a refinery terminal or any other terminal or facility which receives petroleum products by pipeline, rail, or barge, and delivers the products into a cargo tank or barge.(g) For the purposes of this section, the operator of a bulk facility is the person who first invoices petroleum products withdrawn from the facility. An exchange statement is not considered an invoice.(h) For the purposes of this section, an electrical generating facility is a plant operated for the primary purpose of generating electricity for sale to consumers.(i) Persons exempt from the petroleum products delivery fee, including persons operating barges who make withdrawals from a permitted bulk facility for delivery into the fuel supply tanks of vessels or boats prior to intermediate storage, shall request in writing a letter of exemption from the comptroller. The letter of exemption issued by the comptroller, or a copy, must be furnished to the seller each time purchases exempt from the petroleum products delivery fee are made.(j) If the person making the sale to the exempt purchaser does not hold a petroleum products delivery fee permit, the purchaser must also furnish to the seller a statement listing the date of purchase, number of gallons purchased per delivery, and destination of the product. For the seller to receive credit for exempt sales, this documentation must be presented to the permitted bulk facility from which the product was purchased.(k) As an alternative to subsection (j) of this section, an exempt purchaser may elect to seek refund directly from the comptroller. When an exempt purchaser elects to use this option, the purchaser must use this option with the vendor for all petroleum products purchased during the refund claim period for which the fee has been paid. The exempt purchaser must furnish to the comptroller:(1) a letter declaring that the exempt purchaser did not provide the seller with a comptroller issued petroleum products delivery fee exemption letter and will not seek a refund from the seller or bulk facility from which the petroleum products were withdrawn;(2) a copy of the comptroller issued petroleum products delivery fee exemption letter;(3) documentation showing that the petroleum products delivery fee was paid; and(4) any other information the comptroller deems necessary to validate the refund.(l) The amount of the petroleum products delivery fee must be listed as a separate item on the invoice or cargo manifest issued by the person holding a permit to collect the fee upon the withdrawal of product from a bulk facility.(m) Only persons who hold a petroleum products delivery fee permit may charge and collect the fee on the basis of the bracket system established by the Texas Commission on Environmental Quality. No other persons selling fuel may list the fee as a separate item on invoices or manifest except:(1) when required to do so by another governmental agency; or(2) when an amount is clearly identified as reimbursement. An amount collected as reimbursement may not exceed the amount of fee actually paid by the person issuing the manifest or invoice.(n) The comptroller may require a bulk facility operator to post a bond or other security to protect the revenues of the state.(o) When determining the security required of a bulk facility operator, the comptroller will take into consideration the amount of fee that has or is expected to become due from the person, any past history of the person as a distributor or supplier of fuel, and the necessity to protect the state against the failure to pay the fee as it becomes due.(p) The comptroller may require a bond equal to two times the highest amount of fees that will accrue during a reporting period. The minimum bond is $30,000. The maximum bond is $600,000 unless the comptroller believes there is undue risk of loss of fee revenues, in which event he may require one or more bond or securities in a total amount exceeding $600,000.(q) If the comptroller determines that a bulk facility operator has for four consecutive years continuously complied with the conditions of the bond or other security on file, the operator is entitled on request to have the comptroller return, refund, or release the bond or security. However, if the comptroller determines that the revenues of the state would be jeopardized by the return, refund, or release of the bond or security, the comptroller may elect not to return, refund, or release the bond or security. The comptroller may reimpose a requirement of a bond or other security if necessary to protect the revenues of the state.(r) A bond must be a continuing instrument, must constitute a new and separate obligation in the penal sum named in the bond for each calendar year or portion of a year while the bond is in force, and must remain in effect until the surety on the bond is released and discharged.(s) In lieu of filing a surety bond, an applicant for a permit may substitute the following security:(1) cash in the form of United States currency in an amount equal to the required bond, to be deposited in the suspense account of the state treasury;(2) an assignment to the comptroller of a certificate of deposit in any bank or savings and loan association in Texas that is a member of the FDIC in an amount equal to the bond amount required; or(3) an irrevocable letter of credit to the comptroller from any bank or savings and loan association in Texas that is a member of the FDIC in an amount of credit at least equal to the bond amount required.(t) If the amount of an existing bond becomes insufficient or a security becomes unsatisfactory or unacceptable, the comptroller may require the filing of a new or of an additional bond or security.(u) No surety bond or other form of security may be released until it is determined by examination or audit that no fee, penalty, or interest liability exists. The cash or securities shall be released within 60 days after the comptroller determines that no liability exists.(v) The comptroller may use the cash or certificate of deposit security to satisfy a final determination of delinquent liability or a judgment secured in any action by this state to recover fees, cost, penalties, and interest found to be due this state by a person in whose behalf the cash or certificate security was deposited.(w) A surety on a bond furnished by a permittee shall be released and discharged from liability to the state accruing on the bond after the expiration of 30 days after the date on which the surety files with the comptroller a written request to be released and discharged. The request does not relieve, release, or discharge the surety from a liability already accrued, or that accrues before the expiration of the 30-day period. Promptly after receipt of the request, the comptroller shall notify the permittee who furnished the bond, and unless the permittee, before the expiration date of the existing security, files with the comptroller a satisfactory new bond or other security, the comptroller shall cancel the permit.(x) The comptroller shall notify immediately the issuer of a letter of credit of a final determination of the bulk facility operator's delinquent liability or a judgment secured in any action by this state to recover fees, cost, penalties, and interest found to be due this state by a bulk facility operator in whose behalf the letter of credit was issued. A letter of credit accepted as security shall contain a statement that the issuer agrees to respond to the comptroller's notice of liability with amounts sufficient to satisfy the comptroller's delinquency claim against the bulk facility operator.(y) An examination or audit may be requested to obtain release of the security when the permit holder relinquishes the permit or desires to substitute one form of security for an existing one.",
            "sourceNote": "Source Note: The provisions of this §3.151 adopted to be effective December 5, 1996, 21 TexReg 11493; amended to be effective September 22, 1999, 24 TexReg 7766; amended to be effective October 17, 2001, 26 TexReg 8191; amended to be effective June 3, 2004, 29 TexReg 5411; amended to be effective April 13, 2005, 30 TexReg 2078; amended to be effective January 29, 2006, 31 TexReg 404; amended to be effective November 27, 2007, 32 TexReg 8520; amended to be effective August 6, 2012, 37 TexReg 5815."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198185&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "198185",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "JJ",
                "label": "CIGARETTE, E-CIGARETTE, AND TOBACCO PRODUCTS  REGULATION"
            },
            "rule": {
                "number": "§3.1201",
                "label": "Fee for Outdoor Advertising of Cigarettes or Tobacco Products"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201111&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201111",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Cigarettes--A roll for smoking that is:(A) not a cigar; and(B) that is made of tobacco or tobacco mixed with another ingredient and wrapped or covered with a material other than tobacco.(2) Gross sales price--The sum of:(A) production costs, including the cost of layout, paper, materials, printing, distribution, and sign installation, but not the cost of design and artwork;(B) media costs, including the cost for leasing billboards, or any other outdoor space where a message or sign is displayed; and(C) cost of sales or commissions paid to an agency or broker.(3) Outdoor advertising--A medium, including a structure, display, light device, figure, painting, drawing, message, plaque, poster, sign, or billboard, that:(A) is used to advertise or to inform;(B) is visible from the main-traveled way of a street or highway; and(C) does not include:(i) a medium displayed inside a building, even if the medium is visible from outside the building; or(ii) a medium that displays the name of the business, unless that medium also contains a cigarette or tobacco product trademark, brand or trade name, or logo type.(4) Purchase--A transaction, including:(A) an installment and credit purchase;(B) an exchange of service for service or money;(C) a signed contract between a purchaser and a seller; and(D) any other transaction that is the functional equivalent of a purchase.(5) Tobacco product--(A) A cigar;(B) smoking tobacco, including granulated, plug-cut, crimp-cut, ready-rubbed, and any form of tobacco suitable for smoking in a pipe or as a cigarette;(C) chewing tobacco, including Cavendish, Twist, plug, scrap, and any kind of tobacco suitable for chewing;(D) snuff or other preparations of pulverized tobacco; or(E) an article or product that is made of tobacco or a tobacco substitute and that is not a cigarette or an e-cigarette as defined by Health and Safety Code, §161.081 (Definitions).(b) Fee imposed. A fee is imposed on each purchaser of outdoor advertising in an amount that is equal to 10% of the gross sales price of any outdoor advertising of cigarettes or tobacco products in this state.(c) Due date and reporting period. A purchaser of outdoor advertising for cigarettes or tobacco products shall file a report on or before the 20th day of the month following the end of the calendar quarter in which the advertising was purchased. The due dates and corresponding reporting periods are:(1) April 20 for the period covering January 1 through March 31;(2) July 20 for the period covering April 1 through June 30;(3) October 20 for the period covering July 1 through September 30; and(4) January 20 for the period covering the previous October 1 through December 31.(d) Report forms. Each purchaser must report the outdoor advertising fee on the Texas cigarettes or tobacco products outdoor advertising fee report as prescribed by the comptroller. The fact that a purchaser does not receive the form or does not receive the correct form from the comptroller for the filing of the report does not relieve the purchaser of the responsibility of filing a report and paying the required fee.(e) Payment of the fee. On or before the 20th day of the month following each reporting period, every purchaser shall remit the total fee amount due.(f) Records required.(1) Invoices, purchase contracts, installment or credit agreements, or any other records relating to the outdoor advertising purchase must be kept by the purchaser for at least four years after the date each report is filed with the comptroller.(2) Any records or equipment of any person liable for the fee must be made available to the comptroller or the comptroller's representative for examination to verify the accuracy of any report made or to determine the fee liability in the event no report is filed.(3) Each purchaser must maintain records showing:(A) the location at which outdoor advertising is displayed in this state;(B) the date on which the advertising was purchased;(C) the gross sales price paid for outdoor advertising displayed in this state; and(D) if outdoor advertising is purchased for display in more than one state, information to support an allocation to Texas of the appropriate portion of the total amount paid.(g) Penalty and interest.(1) Penalty. A purchaser who does not timely remit the fee due as provided by subsection (e) of this section, shall pay a penalty of 5.0% of the amount of the fee due and payable. If the purchaser does not pay the fee before the 30th day after the date on which the fee is due, the person shall pay a penalty of an additional 5.0% of the amount of the fee due and payable.(2) Interest. Interest accrues on the unpaid tax due beginning 60 days after the due date and ends the day on which the tax is paid.(h) Administrative remedies.(1) A purchaser of outdoor advertising who violates any part of Health and Safety Code, §161.123, or a rule adopted under that section, will be subject to an administrative penalty and will be notified by certified mail of the reasons for the penalty. The recourse for a purchaser who does not agree with the imposed administrative penalty will be governed by the provisions of Tax Code, Chapter 111, Government Code, Chapter 2001, and §§1.1-1.42 of this title (relating to Practice and Procedure).(2) The administrative penalty for a violation may be in an amount not to exceed $5,000. Each day a violation continues or occurs is a separate violation for the purpose of imposing a penalty.(3) The following factors shall be taken into consideration when an administrative penalty is imposed:(A) the amount of fees due and owing;(B) the attempted concealment of misconduct by the person who committed the violation;(C) premeditated misconduct by the person who committed the violation;(D) intentional misconduct by the person who committed the violation;(E) the motive of the person who committed the violation;(F) prior misconduct of a similar or related nature by the person who committed the violation;(G) prior written warnings from any government agency or official regarding statutes or regulations pertaining to the misconduct;(H) violation by the person who committed the violation of an order of the comptroller;(I) lack of rehabilitative potential or likelihood for future misconduct of a similar nature;(J) relevant circumstances increasing the seriousness of the misconduct; and(K) any other matter justice may require.(4) If the comptroller finds that a violation has occurred and imposes an administrative penalty, the comptroller shall give notice of the violation by certified mail to the permit holder within 15 days of the finding of a violation. The notice must include a statement of the rights of the permit holder to judicial review.(5) If the permit holder does not respond to the written notice of violation within 15 calendar days, an order finding that a violation has occurred may be entered and the maximum penalty may be imposed. If the permit holder requests an administrative hearing, a hearing will be set. The notice of the setting of the hearing shall be governed by §§1.1-1.42 of this title. The permit holder will have 15 days in which to respond to the setting of the hearing.(6) If the comptroller finds that a purchaser of outdoor advertising violates this section or Health and Safety Code, Subchapter K, §161.123, or a rule made pursuant to these sections, the comptroller may impose an administrative fine and/or suspend or revoke a permit pursuant to Tax Code, §154.1142.(7) An administrative hearing will be held at the office of the Comptroller of Public Accounts in Austin, Texas. The recourse for a permit holder who does not agree with the administrative decision will be governed by the provisions of Tax Code, Chapter 111; Government Code, Chapter 2001; and §§1.1-1.42 of this title.(8) The burden of proof in an administrative hearing pursuant to this rule is by a preponderance of the evidence unless otherwise provided by statute.(9) A penalty collected under this section shall be deposited in the general revenue fund.(i) If the purchaser of outdoor advertising does not pay the amount of the administrative penalty, the comptroller may refer the matter to the attorney general for collection of the amount of the penalty.",
            "sourceNote": "Source Note: The provisions of this §3.1201 adopted to be effective January 5, 1998, 22 TexReg 12786; amended to be effective March 14, 2000, 25 TexReg 2156; amended to be effective January 29, 2020, 45 TexReg 589."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201111&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201111",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "JJ",
                "label": "CIGARETTE, E-CIGARETTE, AND TOBACCO PRODUCTS  REGULATION"
            },
            "rule": {
                "number": "§3.1202",
                "label": "Warning Notice Signs"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216903&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "216903",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Warning notice signs. Each person who sells cigarettes, e-cigarettes, or tobacco products at retail or by vending machine must post a warning notice sign in a location that is conspicuous to all employees and customers and that is close to the cash register, check-out stand, or vending machine where cigarettes, e-cigarettes, or tobacco products may be purchased. The failure to display a sign as prescribed by this section is a Class C misdemeanor.(b) Sign distribution. Upon request, the comptroller will provide the warning notice signs without charge to any person who sells cigarettes, e-cigarettes, or tobacco products, including distributors or wholesale dealers of cigarettes, e-cigarettes, or tobacco products in this state for distribution to persons who sell cigarettes, e-cigarettes, or tobacco products. A distributor or wholesale dealer may not charge for distributing a sign under this subsection. Requests for the warning notice signs may be made by calling the Comptroller of Public Accounts toll free at 1-800-862-2260, or by writing to the attention of the Account Maintenance Division, Comptroller of Public Accounts, 111 East 17th Street, Austin, Texas 78774-0100. In Austin, call (512) 463-3731. A request must include the number of signs needed, and the person and address to whom the signs are to be mailed.(c) Alternate signs. Retailers, distributors, and wholesale dealers may develop their own warning notice signs provided the signs meet minimum size and design specifications, including wording and font size, described in subsection (d) of this section. A retailer, distributor, or wholesale dealer may submit a sample of its proposed sign for review to the address as noted in subsection (b) of this section.(d) Sign design and minimum size requirements. The design, minimum size, and placement location of each sign are as follows.(1) Design. Each sign must be designed according to the following:(A) it must contain the following statutory language: \"PURCHASING OR ATTEMPTING TO PURCHASE CIGARETTES, E-CIGARETTES, OR TOBACCO PRODUCTS BY A PERSON UNDER 21 YEARS OF AGE IS PROHIBITED BY LAW. SALE OR PROVISION OF CIGARETTES, E-CIGARETTES, OR TOBACCO PRODUCTS TO A PERSON UNDER 21 YEARS OF AGE IS PROHIBITED BY LAW. UPON CONVICTION, A CLASS C MISDEMEANOR, INCLUDING A FINE OF UP TO $500 MAY BE IMPOSED. VIOLATIONS MAY BE REPORTED TO THE TEXAS COMPTROLLER'S OFFICE BY CALLING 1-800-345-8647. PREGNANT WOMEN SHOULD NOT SMOKE. SMOKERS ARE MORE LIKELY TO HAVE BABIES WHO ARE BORN PREMATURE OR WITH LOW BIRTH WEIGHT. THE PROHIBITIONS ON THE PURCHASE OR ATTEMPT TO PURCHASE DESCRIBED ABOVE DO NOT APPLY TO A PERSON WHO IS IN THE UNITED STATES MILITARY FORCES OR STATE MILITARY FORCES.\";(B) it must contain the following statutory language until September 1, 2022: \"THE PROHIBITIONS ON THE PURCHASE OR ATTEMPT TO PURCHASE DESCRIBED ABOVE DO NOT APPLY TO A PERSON WHO WAS BORN ON OR BEFORE AUGUST 31, 2001.\"; and(C) retailers must display the English version. The comptroller will make a Spanish version available. Both the Spanish and English versions may be posted.(2) Size and placement. The sign is to be posted on or near:(A) a cash register or check-out stand and must be no less than 8-1/2 inches wide by 11 inches in length. The font size for the statutory language that must appear on the sign must be no less than 14-point type. The mandatory warning notice sign must be conspicuous from each cash register or check-out stand where cigarettes, e-cigarettes, or tobacco products may be purchased. If a retailer chooses, an additional warning notice sign, regardless of size, may be conspicuously placed on each cash register or check-out stand where cigarettes, e-cigarettes, or tobacco products may be purchased; and(B) a vending machine and must be no less than 3 inches wide by 7 inches in length. The font size for the statutory language that must appear on the sign must be no less than 10-point type.(e) Effective date. Sellers of cigarettes and tobacco products must display the warning notice signs in the appropriate locations beginning January 1, 1998. E-cigarette sellers must display the warning notice signs in the appropriate locations beginning October 1, 2015.",
            "sourceNote": "Source Note: The provisions of this §3.1202 adopted to be effective January 22, 1998, 23 TexReg 421; amended to be effective October 11, 2007, 32 TexReg 7082; amended to be effective February 6, 2012, 37 TexReg 500; amended to be effective October 24, 2016, 41 TexReg 8294; amended to be effective January 7, 2020, 45 TexReg 382; amended to be effective September 14, 2020, 45 TexReg 6378."
        },
        {
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            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "JJ",
                "label": "CIGARETTE, E-CIGARETTE, AND TOBACCO PRODUCTS  REGULATION"
            },
            "rule": {
                "number": "§3.1203",
                "label": "Approved Seller Training Programs"
            },
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            "ruleBody": "(a) Definitions. The following words and terms when used in this section have the following meanings, unless the context clearly indicates otherwise.(1) Cigar--A roll of fermented tobacco that is wrapped in tobacco and the main stream of smoke from which produces an alkaline reaction to litmus paper.(2) Cigarette--A roll for smoking:(A) that is made of tobacco or tobacco mixed with another ingredient and wrapped or covered with a material other than tobacco; and(B) that is not a cigar.(3) E-cigarette--An electronic cigarette or any other device that simulates smoking by using a mechanical heating element, battery, or electronic circuit to deliver nicotine or other substances to the individual inhaling from the device; or a consumable liquid solution or other material aerosolized or vaporized during the use of an electronic cigarette or other device described by this paragraph.(A) The term \"e-cigarette\" includes:(i) a device described by this paragraph regardless of whether the device is manufactured, distributed, or sold as an e-cigarette, e-cigar, or e-pipe or under another product name or description; and(ii) a component, part, or accessory for the device, regardless of whether the component, part, or accessory is sold separately from the device.(B) The term \"e-cigarette\" does not include a prescription medical device unrelated to the cessation of smoking.(4) Minor--A person under 21 years of age.(5) Second party sales--Sales that result in the provision of cigarettes, e-cigarettes, or tobacco products to a minor, even though the purchaser of those products is not necessarily a minor.(6) Seller--Any person who sells cigarettes, e-cigarettes, or tobacco products in Texas.(7) Tobacco product--A tobacco product is:(A) a cigar;(B) smoking tobacco, including granulated, plug-cut, crimp-cut, ready-rubbed, and any form of tobacco suitable for smoking in a pipe or as a cigarette;(C) chewing tobacco, including Cavendish, Twist, plug, scrap, and any kind of tobacco suitable for chewing;(D) snuff or other preparations of pulverized tobacco; or(E) an article or product that is made of tobacco or a tobacco substitute and that is not a cigarette or an e-cigarette.(b) Application process. In order for a vendor to be certified to provide employers and employees engaged in the retail sales of cigarettes, e-cigarettes, or tobacco products with training regarding provisions in Health and Safety Code, Chapter 161 and in Tax Code, Chapters 154 and 155, regarding regulation of sales, distribution, and use of tobacco products, the vendor's training program must meet the minimum curriculum requirements established by the comptroller and be certified by the comptroller. Vendors must make application to the comptroller's office on a prescribed application form. The comptroller's office will review qualified applications and certify vendors interested in providing a seller training program.(c) Curriculum information. Vendors interested in obtaining certification must apply in writing and provide a written description detailing curriculum information, including:(1) the presentation;(2) specific course objectives;(3) academic content;(4) learning activities;(5) audio-visual materials, if any;(6) written materials (including instructor manual and participant workbook); and(7) course evaluation or feedback forms.(d) Curriculum requirements. The curriculum of the training program presented should include, but is not limited to, the following components.(1) Component One--tobacco-related health hazards. Statistical information regarding tobacco-related health hazards as published by the U.S. Food and Drug Administration must be included in this component.(2) Component Two--federal and state laws. Discussion and comparison of the provisions of current federal law with the provisions of current state law pertaining to minors and cigarettes, e-cigarettes, and tobacco products must be included in this component. In particular, this component must include a review and explanation of all provisions relating to:(A) prohibiting the distribution of cigarettes, e-cigarettes, or tobacco products to minors;(B) prohibiting the purchase, possession, or consumption of cigarettes, e-cigarettes, or tobacco products by minors (citing examples of tobacco products included);(C) the warning notice signs for retail locations;(D) statistics on cigarette, e-cigarette, and tobacco usage by adults and minors; and(E) the placement of cigarettes, e-cigarettes, and tobacco products in retail locations.(3) Component Three--detection of minors. This component must identify and discuss:(A) observation techniques for determining when a customer is a minor;(B) common physical and behavioral signs of underage status; and(C) behaviors indicative of adolescence, including current clothing trends and fads, and physical appearance preferences, according to generally recognized experts in the field.(4) Component Four--personal identification. This component must:(A) identify, discuss, and provide actual samples of acceptable forms of identification, including, but not limited to:(i) a valid state driver's license issued by the Texas Department of Public Safety; and(ii) other state or U.S. government issued forms of identification (with photograph);(B) identify, discuss, and provide actual samples of unacceptable forms of identification including, but not limited to:(i) a temporary state driver's license;(ii) a birth certificate;(iii) a school or work ID;(iv) a social security card; and(v) a professionally printed identification card.(C) explain how to detect invalid identification documents used in attempts to establish proof of age and provide examples of the following:(i) unofficial documents that look similar to official documents;(ii) types of document counterfeiting and alteration; and(iii) warning signs of document counterfeiting and alterations.(5) Component Five--second party sales. This component must:(A) explain and define second party sales; and(B) provide examples of second party sales including, but not limited to, the following:(i) a minor loitering outside a store in the store parking lot;(ii) a minor loitering around a store, either inside or outside, after having been refused a cigarette, e-cigarette, or tobacco product purchase; and(iii) a minor randomly approaching an adult customer to solicit the adult customer to purchase cigarettes, e-cigarettes, or tobacco products and giving the adult customer money.(6) Component Six--refusing a sale. This component must:(A) identify and discuss techniques to prevent an illegal sale of cigarettes, e-cigarettes, or tobacco products to a minor or second party;(B) identify and discuss techniques to terminate an illegal sale of cigarettes, e-cigarettes, or tobacco products to a minor or second party; and(C) provide examples of words and actions that may be used by a seller to amicably avoid or terminate illegal attempts to purchase cigarettes, e-cigarettes, or tobacco products by a minor.(e) Class length. The time length of the seller training class should be a minimum of two actual clock hours, including class breaks.(f) Notice of certification or denial. The comptroller shall notify each applicant with a letter of certification or denial, including reasons for the denial, within 15 business days from the date the application is received by the comptroller. The certification or denial letter will be mailed to the address on the vendor's application.(g) Certification. A qualified vendor is certified to provide seller training until the certification expires under subsection (h) of this section or is revoked or suspended by the comptroller.(h) Recertification of curriculum.(1) Every two years, a previously certified vendor must submit a new application to ensure the vendor's course curriculum aligns with federal law, state law, and policy changes relating to cigarettes, e-cigarettes, and tobacco products.(2) The seller training certification is valid until the last day of each odd numbered year.(i) Denial. Applications for certification will be denied based on the following factors:(1) the curriculum information submitted does not meet the minimum requirements set out in subsection (d) of this section;(2) the application is incomplete; or(3) the applicant is currently delinquent in the payment of any tax or fee collected by the comptroller.(j) Administrative hearing. If the comptroller determines that an applicant is not eligible for certification, the applicant will be notified, in writing, that the application has been denied. The notice will state the reasons for the denial. The applicant may, within 15 days of the date of the notice of denial, make a written request for an oral hearing to contest the denial. If the applicant does not request a hearing within 15 days of the date of the notice of denial, the hearing is waived and the denial is final. The hearing will be governed by the provisions of §§1.1-1.42 of this title (relating to Practice and Procedure).(k) Certification revocation or suspension. The comptroller may, after notice and opportunity for a hearing, revoke or suspend a vendor's certification upon finding that the seller training classes provided by a vendor fail to comply with the comptroller's standards and requirements for seller training programs described in subsections (c), (d), and (e) of this section, or the vendor becomes delinquent in the payment of any tax or fee collected by the comptroller. If the comptroller determines that certification should be suspended or revoked, the comptroller will notify the vendor, in writing, that the certification will be suspended or revoked and will state the reasons for the action. The vendor may, within 15 days of the date of the notice of suspension or revocation, make a written request for an oral hearing to contest the action. If the vendor does not request a hearing within 15 days of the date of the notice of suspension or revocation, the hearing is waived and the suspension or revocation becomes effective.(l) Certification reinstatement. The comptroller may reinstate the vendor's certification after receiving proof that the vendor has satisfied all the comptroller's standards and requirements for seller training as provided under subsections (c), (d), and (e) of this section, and the vendor is current in the payment of any tax or fee obligation due the comptroller.(m) Notice of classes scheduled. Vendors must provide the comptroller's office written notification of the date, time, and location of scheduled training classes at least five business days prior to the date training classes will be conducted.(n) Vendor reporting requirements.(1) By the 15th day of the month, each certified vendor must report data for each training class completed during the previous month. The data must include:(A) a class roster with the name, driver's license number, and date of birth of each participant;(B) the total number of classes conducted for the month;(C) the total number of participants that attended each class; and(D) the total number of participants that successfully completed the class.(2) The reports must be mailed to the Texas Comptroller of Public Accounts, 111 East 17th Street, Austin, Texas 78774-0100.(o) Class cancellations. Vendors must notify the comptroller's office of any training class cancellations prior to the actual training session date.(p) Class monitoring. Training classes may be monitored unannounced by the comptroller or a comptroller's representative to evaluate the curriculum presentation and the classroom environment.",
            "sourceNote": "Source Note: The provisions of this §3.1203 adopted to be effective January 22, 1998, 23 TexReg 422; amended to be effective March 6, 2024, 49 TexReg 1281."
        },
        {
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            "currentRecordId": "216902",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "JJ",
                "label": "CIGARETTE, E-CIGARETTE, AND TOBACCO PRODUCTS  REGULATION"
            },
            "rule": {
                "number": "§3.1204",
                "label": "Administrative Remedies for Violations of Health and Safety Code, Chapter 161, Subchapter H"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section shall have the following meanings, unless the context clearly indicates otherwise.(1) Cigar--A roll of fermented tobacco that is wrapped in tobacco and the main stream of smoke from which produces an alkaline reaction to litmus paper.(2) Cigarette--A roll for smoking:(A) that is made of tobacco or tobacco mixed with another ingredient and wrapped or covered with a material other than tobacco; and(B) that is not a cigar.(3) E-cigarette--An electronic cigarette or any other device that simulates smoking by using a mechanical heating element, battery, or electronic circuit to deliver nicotine or other substances to the individual inhaling from the device; or a consumable liquid solution or other material aerosolized or vaporized during the use of an electronic cigarette or other device described by this paragraph.(A) The term \"e-cigarette\" includes:(i) a device described by this paragraph regardless of whether the device is manufactured, distributed, or sold as an e-cigarette, e-cigar, or e-pipe or under another product name or description; and(ii) a component, part, or accessory for the device, regardless of whether the component, part, or accessory is sold separately from the device.(B) The term \"e-cigarette\" does not include a prescription medical device unrelated to the cessation of smoking.(4) Interstate warehouse--A person in this state who receives untaxed cigarettes, e-cigarettes, tobacco products from a manufacturer, bonded agent, distributor, or importer and stores the tobacco products exclusively for an interstate warehouse transaction.(5) Interstate warehouse transaction--The sale or delivery of cigarettes, e-cigarettes and tobacco products from an interstate warehouse to a person located in another state who is licensed or permitted by the other state to pay the state's excise tax on tobacco products as required.(6) Permit holder--A bonded agent, interstate warehouse, distributor, wholesaler, manufacturer, importer, export warehouse, or retailer who obtains a permit under Health & Safety Code, Chapter 147, Subchapter B (Permits), or Tax Code, §154.101 (Permits) or §155.041 (Permits).(7) Place of business--(A) a commercial business location where cigarettes, e-cigarettes or tobacco products are sold;(B) a commercial business location where cigarettes, e-cigarettes or tobacco products are kept for sale or consumption or otherwise stored;(C) a vehicle from which cigarettes, e-cigarettes or tobacco products are sold; or(D) a vending machine from which cigarettes or tobacco products are sold.(8) Retailer--A person who engages in the practice of selling cigarettes, e-cigarettes, or tobacco products to consumers and includes a person who sells e-cigarettes through a marketplace and the owner of a cigarette or tobacco product vending machine.(9) Tobacco product--A tobacco product is:(A) a cigar;(B) smoking tobacco, including granulated, plug-cut, crimp-cut, ready-rubbed, and any form of tobacco substitute for smoking in a pipe or as a cigarette;(C) chewing tobacco, including Cavendish, Twist, plug, scrap, and any kind of tobacco suitable for chewing;(D) snuff or other preparations of pulverized tobacco; or(E) an article or product that is made of tobacco or a tobacco substitute and that is not a cigarette or an e-cigarette.(b) Violations. Violations of Health and Safety Code, Chapter 161, Subchapter H (Distribution of Cigarettes, E-Cigarettes, or Tobacco Products) include, but are not limited to:(1) the sale of cigarettes, e-cigarettes or tobacco products to persons younger than 21 years of age, as provided in Health and Safety Code, §161.082;(2) failure to display a warning sign as prescribed by Health and Safety Code, §161.084;(3) failure to notify employees of state law as required by Health and Safety Code §161.085;(4) offering cigarettes, e-cigarettes, or tobacco products for sale in a manner that permits a customer direct access to the cigarettes, e-cigarettes, or tobacco products in violation of Health and Safety Code, §161.086;(5) installing or maintaining a vending machine containing cigarettes, e-cigarettes, or tobacco products in violation of Health and Safety Code, §161.086;(6) distributing a free sample of a cigarette, e-cigarette, or tobacco product, or a coupon or other item that the recipient may use to receive a free cigarette, e-cigarette, or tobacco product, in violation of Health and Safety Code, §161.087;(7) distributing to a person younger than 21 years of age a coupon or other item that the recipient may use to receive a discounted cigarette, e-cigarette, or tobacco product in violation of Health and Safety Code, §161.087; and(8) markets, advertises, sells, or causes to be sold a prohibited e-cigarette product in violation of Health and Safety Code, §161.0876 and §3.1208 of this title (concerning Prohibited E-Cigarette Products).(c) Report of violation. The comptroller may receive a report of a violation of Health and Safety Code, Chapter 161, Subchapter H from any person, including:(1) the Enforcement or Criminal Investigations Divisions of the comptroller's office;(2) local law enforcement;(3) a municipal court or a justice of the peace court; or(4) a complaint reported by a caller on the tobacco hotline.(d) Disciplinary actions.(1) A retailer is subject to disciplinary action as provided by this section if an agent or employee of the retailer commits an offense under this subchapter.(2) The penalties for a violation of Health and Safety Code, Subchapter H are:(A) for the first violation at a place of business during the 24-month period preceding the violation, a fine in an amount not to exceed $1,000;(B) for the second violation at a place of business during the 24-month period preceding the most recent violation, a fine in an amount not to exceed $2,000;(C) for the third violation at a place of business during the 24-month period preceding the most recent violation:(i) a fine in an amount not to exceed $3,000; and(ii) suspension, for not more than five days, of the permit for that place of business issued under Health and Safety Code, Chapter 147, or Tax Code, Chapters 154 or 155, as applicable; and(D) except as provided by paragraph (4) of this subsection, for the fourth or subsequent violation at a place of business during the 24-month period preceding the most recent violation, revocation of the permit issued under Health and Safety Code, Chapter 147, or Tax Code, Chapters 154 or 155, as applicable. If the permit holder does not hold a permit for that place of business under Health and Safety Code, Chapter 147, or Tax Code, Chapters 154 or 155, the revocation of the sales and use tax permit issued under Tax Code §151.201 (Sales Tax Permits).(3) A permit holder whose permit has been revoked under paragraph (2)(D) of this subsection may not apply for a permit for the same place of business before the expiration of six months after the effective date of the revocation.(4) The comptroller may suspend a permit, but may not revoke the permit, under paragraph (2)(D) of this subsection if the comptroller finds:(A) the permit holder has not violated this subchapter more than seven times at the place of business for which the permit is issued in the 48-month period preceding the violation in question;(B) the permit holder requires its employees to attend a comptroller-approved seller training program;(C) the employees have actually attended a comptroller-approved seller training program; and(D) the permit holder has not directly or indirectly encouraged the employees to violate the law.(e) Written notice of violation. When the comptroller receives a report of a violation by a permit holder, the comptroller may send a written notice of violation to the permit holder informing the permit holder that a violation has been reported and that the comptroller proposes taking disciplinary action against the permit holder.(1) The written notice of violation will identify the disciplinary action that the comptroller proposes to take.(2) The written notice of violation will provide the permit holder an opportunity to request a hearing on or before the 20th day after the date on the written notice of violation and will inform the permit holder that failure to request a hearing on or before that date will result in the waiver of the right to a hearing and the imposition of the proposed penalty.(f) Administrative hearings. If the permit holder responds to the written notice of violation and requests a hearing on or before the 20th day after the date on the written notice of violation, the comptroller will grant an administrative hearing. A hearing request is considered submitted by the date-stamp affixed by the agency mail room. The hearing shall be governed by §1.21 of this title (relating to Cigarette, E-Cigarette, Cigar, and Tobacco Tax Hearings).(g) Waiver of hearing. If the permit holder does not respond to the written notice of violation on or before the 20th day after the date on the written notice of violation, the permit holder's right to an administrative hearing is waived. An untimely request for an administrative hearing will not be granted.",
            "sourceNote": "Source Note: The provisions of this §3.1204 adopted to be effective January 22, 1998, 23 TexReg 425; amended to be effective March 14, 2000, 25 TexReg 2156; amended to be effective September 6, 2006, 31 TexReg 7134; amended to be effective February 6, 2012, 37 TexReg 500; amended to be effective March 6, 2024, 49 TexReg 1282."
        },
        {
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            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
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            "subchapter": {
                "number": "JJ",
                "label": "CIGARETTE, E-CIGARETTE, AND TOBACCO PRODUCTS  REGULATION"
            },
            "rule": {
                "number": "§3.1205",
                "label": "Delivery Sales of Cigarettes (Health and Safety Code, Chapter 161, Subchapter R)"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section shall have the following meanings, unless the context clearly indicates otherwise.(1) Cigarette--A roll for smoking:(A) that is made of tobacco or tobacco mixed with another ingredient and wrapped or covered with a material other than tobacco; and(B) that is not a cigar.(2) Delivery sale--A sale of cigarettes to a consumer in Texas in which:(A) the purchaser submits the order for the sale:(i) by telephone or any other method of voice transmission;(ii) by mail or any other delivery service; or(iii) through the Internet or another on-line service; or(B) the cigarettes are delivered by mail or another delivery service.(C) A sale of cigarettes not for personal consumption to a person who is a wholesale dealer or a retail dealer is not a delivery sale.(D) A sale of cigarettes is a delivery sale regardless of whether the seller is located outside or within Texas.(3) Delivery service--A person, including the United States Postal Service, who is engaged in the commercial delivery of letters, packages, or other containers.(4) Minor--A person under 21 years of age. The term \"minor\" does not include a person who is at least 18 years of age and is in the United States military forces or the state military forces. The term \"minor\" does not include a person who was born on or before August 31, 2001.(5) Seller--A person, located outside or within Texas, who takes or accepts delivery sale orders from the public by telephone, mail, or on the Internet, or who mails or ships cigarettes in connection with a delivery sale.(b) Seller permits and registration.(1) Cigarette tax permits and sales and use tax permits.(A) Out-of-state sellers who intend to make delivery sales to Texas customers must apply for and obtain a cigarette retailer's permit and, unless purchasing Texas stamped cigarettes, a cigarette distributor's permit from the comptroller's office as described in §3.102 of this title (relating to Applications, Definitions, Permits, and Reports).(B) Sellers located in Texas who intend to make delivery sales to Texas customers must apply for and obtain a cigarette retailer's permit from the comptroller's office, as described in §3.102 of this title, and must obtain a Texas sales and use tax permit, as described in §3.286 of this title (relating to Seller's and Purchaser's Responsibilities).(2) Delivery sale registration. Before making a delivery sale in Texas, all sellers must register with the comptroller by filing a statement that includes:(A) the seller's name and trade name;(B) the address of the seller's principal place of business and any other place of business;(C) the seller's telephone number; and(D) the person's e-mail address.(c) Seller and purchaser responsibilities.(1) Collection and payment of taxes. The comptroller's office collects cigarette excise tax through the sale of cigarette tax stamps to permitted distributors. A seller located outside of Texas who has obtained a distributor permit is required to purchase and pay for tax stamps before the comptroller's office will ship the stamps to the seller. In addition, as provided in Tax Code, Chapter 151 (Limited Sales, Excise, and Use Tax), a seller engaged in business in Texas is required to collect and remit to the comptroller's office sales tax on all cigarette sales made in Texas.(2) Stamping requirements. A seller located outside of Texas must affix a Texas tax stamp to each package of cigarettes that is to be shipped or delivered to a purchaser in Texas before shipment. A Texas seller can purchase only stamped packages of cigarettes from distributors and wholesalers.(3) Age verification. A seller must confirm the age of the prospective purchaser placing an order for cigarettes to be delivered by the United States Postal Service or by a delivery service before the cigarettes can be mailed or delivered to a purchaser in Texas.(A) Purchaser verification. A seller is required to obtain from the prospective purchaser a written certification that includes a reliable confirmation that the prospective purchaser is not a minor and a statement signed by the prospective purchaser under penalty of law:(i) certifying the prospective purchaser's address and date of birth;(ii) confirming that the prospective purchaser understands that signing another person's name to the certification is illegal, that sales of cigarettes to, and the purchase of cigarettes by a minor are illegal under state law; and(iii) confirming that the prospective purchaser wants to receive mailings from a tobacco company.(B) Seller verification. A seller must make a good faith effort to verify the information contained in the certification required under subparagraph (A) of this paragraph. A seller may compare the information against a commercially available database or obtain a photocopy or other image of a government-issued identification bearing a photograph and date of birth of the prospective purchaser.(4) Disclosure requirements. A seller must send a prospective purchaser, by e-mail or other means, a notice that includes a prominent and clearly legible statement that:(A) cigarette sales to minors are illegal under state law;(B) sales of cigarettes are restricted to those individuals who provide verifiable proof of age in accordance with paragraph (3) of this subsection;(C) sales of cigarettes are taxable under Texas Tax Code, Chapter 154 (Cigarette Tax);(D) the excise tax due on the cigarettes has been paid by the purchase of a tax stamp for each cigarette package; and(E) that a tax stamp has been affixed to each cigarette package sold.(5) Purchaser age certification. A person placing an order for cigarettes to be mailed or delivered must first:(A) provide the seller with proof of age;(B) provide the seller with a signed written statement that confirms:(i) the purchaser's address and date of birth;(ii) the purchaser's permission for a tobacco company to send mailings to the purchaser;(iii) the purchaser's knowledge that signing another person's name to the written statement is illegal, and that state law prohibits the sales of cigarettes to, and the purchase of cigarettes by a minor; and(C) pay for the cigarettes ordered by mail or over the Internet by check or by a credit or debit card that has been issued in the purchaser's name.(d) Reporting requirements.(1) Each seller who has made a delivery sale, and each person who has delivered cigarettes in connection with a delivery sale, is required to file a delivery sales report with the comptroller's office.(A) For each delivery sale, a person must file a memorandum or a copy of an invoice that provides:(i) the name, address, telephone number, and e-mail address of the individual to whom the delivery sale was made;(ii) the brand or brands of the cigarettes that were sold; and(iii) the quantity of cigarettes that were sold.(B) A person may comply with the reporting requirement described in this paragraph by filing a Texas Cigarette/E-Cigarette Delivery Sales Report. The report is available on the comptroller's website.(C) This filing is due on or before the 10th day of each month based on delivery sales made in the previous month.(2) A seller who submits a monthly \"Jenkins Act\" report required by 15 U.S.C. Section 376, as amended, to the comptroller's office has complied with the monthly delivery sales reporting requirement and no further report is required.(3) A person is exempt from the filing requirement in this subsection, if in the preceding two years from the date the report is due, the person is not in violation of the requirements under Health and Safety Code, Chapter 161, Subchapter R (Delivery Sales of Cigarettes and E-Cigarettes) and has not been reported under Health & Safety Code, §161.090 (Reports of Violations) to the comptroller as having violated Subchapter H (Distribution of Cigarettes, E-Cigarettes, or Tobacco Products).(A) A person is exempt from the filing requirement in this subsection even if the person does not have a two-year report filing history, provided that the person has not committed a violation during the time the person has been making delivery sales.(B) If a person violates the requirements of Health and Safety Code, Chapter 161, Subchapter R, or is reported to the comptroller under §161.090 for violating Health and Safety Code, Chapter 161, Subchapter H, the person must comply with the monthly filing requirements described in this subsection.(i) A person who commits a violation, and who does not have two years of prior delivery sales, must file the required information from its first day of business.(ii) A seller who commits a violation is liable for reporting all delivery sales for all business locations of the seller.(e) Violations and Penalties.(1) A person commits an offense if the person violates a provision of Health and Safety Code, Chapter 161, Subchapter R for which a criminal penalty is not otherwise provided, or Tax Code, Chapter 154. For example, a seller who makes a delivery sale of cigarettes to a minor commits an offense. The person's first offense is a Class C misdemeanor. If it is shown on the trial of a person that the person has previously been convicted of an offense under Health and Safety Code, Chapter 161, Subchapter R, the offense is a Class B misdemeanor.(2) Knowing violations. A person who knowingly violates a provision of Health and Safety Code, Chapter 161, Subchapter R, or knowingly submits a certification described in subsection (c)(3)(A) of this section, in another person's name commits a felony of the third degree.(3) Non-payment of tax. A person who fails to pay the cigarette tax or remit the sales and use tax due in connection with a delivery sale must pay to the state a civil penalty in an amount equal to five times the amount of tax due. This penalty is in addition to penalties imposed under Tax Code, Chapter 154.(4) Forfeiture of cigarettes and property. Cigarettes sold, or cigarettes that a person attempted to sell in a delivery sale that does not comply with Health and Safety Code, Chapter 161, Subchapter R, are forfeited to the state and will be destroyed. A fixture, equipment, or other material or personal property on the premises of a person who, with the intent to defraud the state, fails to comply with the provisions of Health and Safety Code, Chapter 161, Subchapter R, is also forfeited to the state.(5) Tax code violations. If the comptroller finds that a person violates Tax Code, Chapter 154, or a rule made pursuant to Chapter 154, the comptroller may impose a penalty of not more than $2,000 for each violation per day and suspend or revoke the person's permit pursuant to Tax Code, §154.1141 (Summary Suspension of a Permit).",
            "sourceNote": "Source Note: The provisions of this §3.1205 adopted to be effective January 10, 2005, 30 TexReg 22; amended to be effective March 15, 2017, 42 TexReg 1135; amended to be effective January 7, 2020, 45 TexReg 383."
        },
        {
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            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "JJ",
                "label": "CIGARETTE, E-CIGARETTE, AND TOBACCO PRODUCTS  REGULATION"
            },
            "rule": {
                "number": "§3.1206",
                "label": "Delivery Sales of E-Cigarettes (Health and Safety Code, Chapter 161, Subchapter R)"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Delivery sale--A sale of e-cigarettes to a consumer in Texas regardless of whether the seller is located outside or within Texas:(A) in which the purchaser submits the order for the sale:(i) by telephone or any other method of voice transmission;(ii) by mail or any other delivery service; or(iii) through the Internet or other on-line service; or(B) in which the e-cigarettes are delivered by mail or other delivery service;(C) the term does not include a sale of e-cigarettes for resale to a person who is a wholesale dealer or a retail dealer.(2) Delivery service--A person, including the United States Postal Service, who is engaged in the commercial delivery of letters, packages, or other containers.(3) E-cigarette--An electronic cigarette or any other device that simulates smoking by using a mechanical heating element, battery, or electronic circuit to deliver nicotine or other substances to the individual inhaling from the device. The term includes a prescription medical device related to the cessation of smoking. The term also includes:(A) a device described in paragraph (3) regardless of whether the device is manufactured, distributed, or sold as an e-cigarette, e-cigar, or e-pipe or under another product name or description; and(B) a component, part, or accessory for the device, regardless of whether the component, part, or accessory is sold separately from the device.(4) Minor--A person under 21 years of age. The term \"minor\" does not include a person who is at least 18 years of age and is in the United States military forces or the state military forces. The term \"minor\" does not include a person who was born on or before August 31, 2001.(5) Seller--A person, located outside or within Texas, who takes or accepts delivery sale orders or who mails or ships e-cigarettes in connection with a delivery sale.(b) Seller responsibilities.(1) Sales and use tax permit. A seller who is engaged in business in Texas, or who intends to engage in business in Texas, must obtain a sales and use tax permit from the comptroller's office as described in §3.286 of this title (relating to Seller's and Purchaser's Responsibilities).(2) Delivery sale registration.(A) Before making a delivery sale of e-cigarettes in Texas, a seller must file a statement with the comptroller that includes:(i) seller's name and trade name;(ii) the address of the seller's principal place of business and any other place of business;(iii) the seller's telephone number; and(iv) the seller's e-mail address.(B) The registration requirement described in this paragraph applies to all sellers, whether they are within or outside of Texas and regardless of whether they are engaged in business in Texas.(3) Collection and payment of taxes. As provided in Tax Code, Chapter 151 (Limited Sales, Excise, and Use Tax), a seller engaged in business in Texas is required to collect and remit to the comptroller's office sales and use tax on all e-cigarette sales made in Texas. For more information on sales and use tax collection responsibilities, refer to §3.286 of this title.(c) Notice to purchasers. A delivery sale of an e-cigarette must include a prominent and clearly legible statement that:(1) Texas law prohibits e-cigarette sales to minors; and(2) sales of e-cigarettes are restricted to individuals who can provide verifiable proof of age.(d) Age verification. A seller taking a delivery sale order must verify that the purchaser is not a minor.(1) Unless the seller is eligible to use the age verification methods described in paragraph (2), each seller who makes a delivery sale must:(A) verify the age of the prospective purchaser through a commercially available database or an aggregate of databases that is regularly used for the purpose of age and identity verification before accepting a delivery sale order; and(B) use a method of mailing or shipping the e-cigarettes that requires an adult signature.(2) A seller located in Texas who primarily makes retail sales of e-cigarettes, and complies with applicable laws relating to such retail sales, may verify the age of a purchaser placing a delivery sale order by:(A) verifying the age of the prospective purchaser with a commercially available database or a photocopy or other image of a government-issued identification bearing a photograph of the prospective purchaser and stating the date of birth or age of the prospective purchaser;(B) obtaining a written statement signed by the prospective purchaser, under penalty of law, certifying the prospective purchaser's address and date of birth; and(C) receiving payment for the delivery sale from the prospective purchaser by a credit card or debit card that has been issued in the prospective purchaser's name or by a check that is associated with a bank account in the prospective purchaser's name.(e) Reporting requirements.(1) Except as provided by paragraph (2) of this subsection, each seller who has made a delivery sale, and each person who has delivered e-cigarettes in connection with a delivery sale, is required to file a delivery sales report with the comptroller's office.(A) For each delivery sale, a person must file a memorandum, or a copy of the invoice, that provides:(i) the name, address, telephone number, and e-mail address of the individual to whom the delivery sale was made;(ii) the brand or brands of the e-cigarettes that were sold; and(iii) the quantity of e-cigarettes that were sold.(B) A person may comply with the reporting requirement described in this paragraph by filing a Texas Cigarette/E-Cigarette Delivery Sales Report. The report is available on the comptroller's website.(C) This filing is due on or before the 10th day of each month based on delivery sales made in the previous month. The first report is due November 10, 2015.(2) A person is exempt from the filing requirements in this subsection, if in the preceding two years from the date the report is due, the person is not in violation of the requirements under Health and Safety Code, Chapter 161, Subchapter R (Delivery Sales of Cigarettes and E-Cigarettes), and has not been reported under §161.090 (Reports of Violations) to the comptroller for violating Health and Safety Code, Chapter 161, Subchapter H (Distribution of Cigarettes, E-Cigarettes, or Tobacco Products). A person may be exempt from the delivery sale filing requirements even if the person does not have a two-year history of delivery sales, provided that during the time the person has been in business, the person has not committed a violation and has not been reported to the comptroller under Health and Safety Code, §161.090.(3) If a person violates the requirements under Health and Safety Code Chapter 161, Subchapter R, or is reported to the comptroller under §161.090 for violating Health and Safety Code, Chapter 161, Subchapter H, the person must comply with the monthly filing requirements described in this subsection for the previous two years for each delivery sale in this state. A person who does not have two years of prior delivery sales will file the information from its first day of business, but no earlier than October 1, 2015, unless the report has already been filed.(f) Violations and Penalties.(1) Criminal Penalties.(A) Knowing violation. A person who knowingly violates the requirements for delivery sales of e-cigarettes in Health and Safety Code, Chapter 161, Subchapter R, commits a felony of the third degree.(B) Other violation. Any violation of the requirements for delivery sales of e-cigarettes in Health and Safety Code, Chapter 161, Subchapter R for which a criminal penalty is not otherwise provided is a Class C misdemeanor for a first offense and a Class B misdemeanor for subsequent offenses.(2) Civil penalty. In addition to any other penalty, a seller who fails to remit the sales and use tax due in connection with a delivery sale must pay to the state a civil penalty in an amount equal to five times the amount of tax due.(3) Forfeiture of e-cigarettes and property. E-cigarettes that a seller sold or attempted to sell in a delivery sale that does not comply with Health and Safety Code, Chapter 161, Subchapter R, are forfeited to the state and will be destroyed. Any equipment, material, or other personal property on the premises of a seller who, with the intent to defraud the state, fails to comply with the provisions of Health and Safety Code, Chapter 161, Subchapter R, is also forfeited to the state.",
            "sourceNote": "Source Note: The provisions of this §3.1206 adopted to be effective February 21, 2017, 42 TexReg 694; amended to be effective February 19, 2020, 45 TexReg 1039."
        },
        {
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            "currentRecordId": "225931",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "JJ",
                "label": "CIGARETTE, E-CIGARETTE, AND TOBACCO PRODUCTS  REGULATION"
            },
            "rule": {
                "number": "§3.1207",
                "label": "E-cigarette Retailer Permits"
            },
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                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, have the following meanings, unless the context clearly indicates otherwise.(1) Commercial business location--The entire premises occupied by a permit applicant or a person required to hold a permit under Health and Safety Code, §147.0051 (E-cigarette Retailer Permit Required). (2) E-cigarette--An electronic cigarette or any other device that simulates smoking by using a mechanical heating element, battery, or electronic circuit to deliver nicotine or other substances to the individual inhaling from the device; or a consumable liquid solution or other material aerosolized or vaporized during the use of an electronic cigarette or other device described by this paragraph.(A) The term \"e-cigarette\" includes:(i) a device described by this paragraph regardless of whether the device is manufactured, distributed, or sold as an e-cigarette, e-cigar, or e-pipe or under another product name or description; and(ii) a component, part, or accessory for the device, regardless of whether the component, part, or accessory is sold separately from the device.(B) The term \"e-cigarette\" does not include a prescription medical device unrelated to the cessation of smoking.(3) E-cigarette retailer--A person who engages in the business of selling e-cigarettes to consumers, including a person who sells e-cigarettes to consumers through a marketplace.(4) Marketplace--A physical or electronic medium through which persons other than the owner or operator of the medium make sales of taxable items. The term includes a store, Internet website, software application, or catalog.(5) Marketplace provider--A person who owns or operates a marketplace and directly or indirectly processes sales or payments for marketplace sellers.(6) Marketplace seller--A seller, other than the marketplace provider, who makes a sale of a taxable item through a marketplace.(7) Permit holder--A person who obtains a permit under Health and Safety Code, §147.0052 (Issuance of Permit).(8) Place of business--(A) a commercial business location where e-cigarettes are sold;(B) a commercial business location where e-cigarettes are kept for sale or consumption or otherwise stored; or(C) a vehicle from which e-cigarettes are sold.(b) Inapplicability. This section does not apply to a product that is:(1) approved by the United States Food and Drug Administration for use in the treatment of nicotine or smoking addiction; and(2) labeled with a \"Drug Facts\" panel in accordance with regulations of the United States Food and Drug Administration.(c) E-cigarette retailer permits.(1) Requirements.(A) Beginning January 1, 2022, a person may not engage in business as an e-cigarette retailer in Texas without a permit issued by the comptroller.(B) An e-cigarette retailer shall obtain a permit for each place of business owned or operated by the e-cigarette retailer.(C) The comptroller may not issue a permit for a place of business that is a residence or a unit in a public storage facility. (D) A marketplace seller shall obtain a permit for each marketplace where the seller makes sales of e-cigarettes. (E) A marketplace provider shall obtain a permit when selling e-cigarettes on behalf of marketplace sellers.(2) Application. (A) The applicant shall complete Form AP-242, Texas Application for E-Cigarette Retailer Permit, or any successor to that form promulgated by the comptroller. (B) The applicant shall accurately complete all information required by the application and provide the comptroller with any additional information the comptroller considers necessary.(C) Each applicant that applies for a permit to sell e-cigarettes from a vehicle shall provide the make, model, vehicle identification number, registration number, and any other information concerning the vehicle the comptroller requires.(D) All financial information provided under this section is confidential and not subject to Government Code, Chapter 552 (Public Information).(d) Permit period; fees. (1) An initial application and a renewal of an existing permit shall be accompanied by the permit fee.(A) A permit issued under this section expires on the last day of May of each even-numbered year.(B) The permit fee for the full two years is $180. A new applicant permit fee is prorated according to the number of months remaining during the period that the permit is to be in effect.(C) A person who holds an active cigarette or tobacco product permit under Tax Code, §§154.101 (Permits), 154.102 (Combination Permit) or 155.041 (Permits), for the same business location at the time of an application or renewal of an application, pays a reduced amount of one-half the retailer permit fee. (2) A person who does not renew an e-cigarette retailer permit by the expiration of a current permit shall pay a late fee of $50 in addition to the application fee for the permit.(3) If a permit expires within three months from the date of issuance, the comptroller may collect the prorated permit fee amount for the remaining months of the current period and, with the consent of the permit holder, may collect the permit fee amount for the next permit period and issue permits for both periods.(4) A person issued a permit for a place of business that permanently closes before the permit expiration date is not entitled to a refund of the permit fee.(e) Payment for e-cigarette retailer permit. (1) An applicant for a permit shall remit the required fee with the application.(2) The payment shall be made in cash or by money order, check, or credit card.(3) The comptroller may not issue a permit in exchange for a check until after the comptroller receives full payment on the check.(f) Issuance of an e-cigarette retailer permit. (1) The comptroller will issue a permit to an applicant if the comptroller:(A) has received an application and fee;(B) does not reject the application and deny the permit under subsection (h) of this section; and(C) determines that issuing the permit will not jeopardize the administration and enforcement of Health and Safety Code, Chapter 147 (E-cigarette Retailer Permits).(2) The permit will be issued for a designated place of business, except as provided by subsection (h) of this section.(3) Permits for engaging in business as an e-cigarette retailer are non-assignable.(4) The comptroller will not issue a permit for an applicant who is under the age of 21. (g) Display of an e-cigarette retailer permit. (1) A permit holder shall keep the permit on public display at the place of business for which the permit was issued.(2) A permit holder who has a permit assigned to a vehicle shall post the permit in a conspicuous place on the vehicle.(h) Denial of e-cigarette retailer permit. The comptroller may reject an application and deny a permit if the comptroller finds, after notice and opportunity for hearing:(1) the premises where business will be conducted are not adequate to protect the e-cigarettes; or(2) the applicant or managing employee, or if the applicant is a corporation, an officer, director, manager, or any stockholder who holds directly or through family or partner relationship 10% or more of the corporation's stock, or, if the applicant is a partnership, a partner or manager:(A) has failed to disclose any of the information required by subsection (c)(2) of this section; or(B) has previously violated provisions of Health and Safety Code, Chapter 147.(i) Summary suspension of permit. (1) The comptroller may suspend a permit holder's permit without notice or a hearing for the permit holder's failure to comply with this section if the permit holder's continued operation constitutes an immediate and substantial threat.(2) If the comptroller summarily suspends a permit holder's permit, proceedings for a preliminary hearing before the comptroller or the comptroller's representative must be initiated simultaneously with the summary suspension. The preliminary hearing shall be set for a date not later than the 10th day after the date of the summary suspension, unless the parties agree to a later date.(3) To initiate a proceeding to summarily suspend a permit holder's permit, the comptroller shall serve notice on the permit holder informing the permit holder of the right to a preliminary hearing before the comptroller or the comptroller's representative and of the time and place of the preliminary hearing. The notice must be personally served on the permit holder or an officer, employee, or agent of the permit holder or sent by certified or registered mail, return receipt requested, to the permit holder's mailing address as it appears in the comptroller's records. The notice must state the alleged violations that constitute the grounds for summary suspension. The suspension is effective at the time the notice is served. If notice is served in person, the permit holder shall immediately surrender the permit to the comptroller. If notice is served by mail, the permit holder shall immediately return the permit to the comptroller upon receipt of the notice.(4) At the preliminary hearing, the permit holder must show cause why the permit should not remain suspended pending a final hearing on suspension or revocation.(5) Government Code, Chapter 2001, (Administrative Procedure), does not apply to a summary suspension under this section.(6) Subsection (j) of this section governs the hearing for final suspension or revocation of a permit under this section.(j) Final suspension or revocation of permit.(1) The comptroller may revoke or suspend a permit holder's permit if the comptroller finds, after notice and the opportunity for a hearing, that the permit holder violated a provision of this section.(2) If the comptroller intends to suspend or revoke a permit, the comptroller shall provide the permit holder with written notice that includes a statement:(A) of the reason for the intended revocation or suspension; and(B) that the permit holder is entitled to a hearing by the comptroller on the proposed suspension or revocation.(3) The comptroller shall deliver the written notice by personal service or by mail to the permit holder's mailing address as it appears in the comptroller's records. Service by mail is complete when the notice is deposited with the United States Postal Service.(4) If the permit holder requests a hearing, the comptroller will set a hearing date. The hearing on the revocation or suspension of the permit holder's permit is treated in the same manner as a hearing on the imposition of an administrative penalty for a violation of Health and Safety Code, §161.0901 (Disciplinary Action Against Cigarette, E-Cigarette, and Tobacco Product Retailers) and is governed by §1.21 of this title (relating to Cigarette, E-cigarette, Cigar, and Tobacco Tax Hearings).(5) A permit holder may appeal the comptroller's decision to a district court in Travis County not later than the 30th day after the date the comptroller's decision becomes final.(6) A person whose permit is suspended or revoked may not sell, offer for sale, or distribute e-cigarettes from the place of business to which the permit applied until a new permit is granted or the suspension is removed.(k) Penalties. (1) A person violates the provisions in this section if the person:(A) engages in the business of an e-cigarette retailer without a permit; or(B) is a person who is subject to a provision of this section and who violates the provision.(2) A person who violates a provision of this section shall pay to the state a penalty set by the comptroller of not more than $2,000 for each violation.(3) Each day on which a violation occurs is a separate violation.(4) The attorney general shall bring suit to recover penalties under this subsection.(5) A suit under this subsection may be brought in Travis County or another county having jurisdiction.(l) Failure to have a permit; offense.(1) A person commits an offense if the person acts as an e-cigarette retailer; and:(A) receives or possesses e-cigarettes without having a permit;(B) receives or possesses e-cigarettes without having a permit posted where it can be easily seen by the public; or(C) sells e-cigarettes without a permit.(2) An offense under this subsection is a Class A misdemeanor.",
            "sourceNote": "Source Note: The provisions of this §3.1207 adopted\r\nto be effective April 22, 2024, 49 TexReg 2548; amended to be effective\r\nAugust 24, 2025, 50 TexReg 5472."
        },
        {
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            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "JJ",
                "label": "CIGARETTE, E-CIGARETTE, AND TOBACCO PRODUCTS  REGULATION"
            },
            "rule": {
                "number": "§3.1208",
                "label": "Prohibited E-Cigarette Products"
            },
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                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Definitions. The following words and terms when used in this section shall have the following meanings, unless the context clearly indicates otherwise.(1) Cartoon--Any drawing or other depiction of an object, person, animal, creature, or any similar caricature that satisfies any of the following criteria:(A) the use of comically exaggerated features;(B) the attribution of human characteristics to animals, plants, or other objects, or the similar use of anthropomorphic technique; or(C) the attribution of unnatural or extra-human abilities, such as imperviousness to pain or injury, X-ray vision, tunneling at very high speeds, or transformation.(2) Celebrity--An individual well-known to a significant section of the public.(3) Container--Any object used to hold an e-cigarette product, including, but not limited to, a pod, bottle, jar, box, wrapper, or other packaging.(4) E-cigarette--An electronic cigarette or any other device that simulates smoking by using a mechanical heating element, battery, or electronic circuit to deliver nicotine or other substances to the individual inhaling from the device; or a consumable liquid solution or other material aerosolized or vaporized during the use of an electronic cigarette or other device described by this subdivision. The term does not include a prescription medical device unrelated to the cessation of smoking. The term also includes:(A) a device described in paragraph (1) of this subsection regardless of whether the device is manufactured, distributed, or sold as an e-cigarette, e-cigar, or e-pipe or under another product name or description; and(B) a component, part, or accessory for the device, regardless of whether the component, part, or accessory is sold separately from the device.(5) E-cigarette product--Any substance containing nicotine from any source that is intended for use in an e-cigarette.(6) Food product--A product intended for human consumption that is consumed for taste, aroma, or nutritional value. The term includes, but is not limited to, fruit, juice, candy, cookies, cereal, coffee, ice cream, soft drinks, and mint and other herbs.(7) Minor--A person under 21 years of age.(8) Retailer--a person who engages in the practice of selling cigarettes, e-cigarettes, or tobacco products to consumers and includes the owner of a cigarette or tobacco product vending machine. The term includes a retailer as defined by Tax Code, §154.001 (Definitions) or §155.001 (Definitions), and an e-cigarette retailer as defined by Health and Safety Code, §147.0001 (Definitions).(b) Violations and Penalties.(1) A person commits an offense if the person markets, advertises, sells, or causes to be sold an e-cigarette product, if the product's container:(A) depicts a cartoon-like fictional character that mimics a character primarily aimed at entertaining minors, including a superhero, video game character, or character from an animated television show marketed to minors;(B) imitates or mimics trademarks or trade dress of products that are or have been primarily marketed to minors, including products that are candy, bubble gum, cookies, cereals, juice boxes, or soft drinks;(C) includes a symbol that is primarily used to market products to minors;(D) includes an image of a celebrity; or(E) includes an image that is or resembles a food product.(2) A retailer is subject to disciplinary action as provided by §3.1204 of this title (relating to Administrative Remedies for Violations of Health and Safety Code, Chapter 161, Subchapter H) if the comptroller finds, after notice and an opportunity for a hearing, that an agent or employee of the retailer marketed, advertised, sold, or caused to be sold an e-cigarette product in violation of this section.",
            "sourceNote": "Source Note: The provisions of this §3.1208 adopted to be effective January 31, 2024, 49 TexReg 420."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=143206&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "143206",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "HOTEL OCCUPANCY TAX"
            },
            "rule": {
                "number": "§3.161",
                "label": "Definitions, Exemptions, and Exemption Certificate"
            },
            "nextRule": {
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Charitable or eleemosynary organization--A nonprofit organization devoting all or substantially all of its activities to the alleviation of poverty, disease, pain, and suffering by providing food, clothing, medicine, medical treatment, shelter, or psychological counseling directly to indigent or similarly deserving members of society with its funds derived primarily from sources other than fees or charges for its services. If the organization engages in any substantial activity other than the activities described in this section, and those activities do not support or further the charitable purpose of that entity, it will not be considered as having been organized for purely public charity, and therefore, will not qualify for exemption under this provision. No part of the net earnings of the organization may inure to the benefit of any private party or individual other than as reasonable compensation for services rendered to the organization. Some examples of organizations that do not meet the definition of a charitable or eleemosynary organization are fraternal organizations, lodges, fraternities, sororities, service clubs, veterans groups, mutual benefit or social groups, professional groups, trade or business groups, trade associations, medical associations, chambers of commerce, and similar organizations. Even though not organized for profit and performing services that are often charitable in nature, these types of organizations do not meet the requirements for exemption under this provision.(2) Educational organization--A nonprofit organization or governmental entity whose activities are devoted solely to systematic instruction, particularly in the commonly accepted arts, sciences, and vocations, and has a regularly scheduled curriculum, using the commonly accepted methods of teaching, a faculty of qualified instructors, and an enrolled student body or students in attendance at a place where the educational activities are regularly conducted. An organization that has activities consisting solely of presenting discussion groups, forums, panels, lectures, or other similar programs, may qualify for exemption under this provision, if the presentations provide instruction in the commonly accepted arts, sciences, and vocations. The organization will not be considered for exemption under this provision if the systematic instruction or educational classes are incidental to some other facet of the organization's activities. No part of the net earnings of the organization may inure to the benefit of any private party or individual other than as reasonable compensation for services rendered to the organization. Some examples of organizations that do not meet the requirements for exemption under this definition are professional associations, business leagues, information resource groups, research organizations, support groups, home schools, and organizations that merely disseminate information by distributing printed publications. Entities that are defined in Education Code, §61.003, as Texas public or private \"institutions of higher education\" are recognized for exemption under this provision. Included in the definition of \"institutions of higher education\" is any public technical institute, public junior college, public senior college or university, medical or dental unit, public state college, or other agency of higher education as identified in Education Code, §61.003. A Texas private \"institution of higher education\" is a private or independent university or college that is organized under the Texas Non-Profit Corporation Act; exempt from taxation under Article VIII, §2, of the Texas Constitution and §501(c)(3) of the Internal Revenue Code of 1986 (26 U.S.C. §501); and accredited by the Southern Association of Colleges and Schools. Beginning October 1, 2003, public and private \"institutions of higher education\" from other states or countries do not meet the requirements for exemption under this provision.(3) Hotel--Any building or buildings in which members of the public obtain sleeping accommodations for a consideration. The term includes, in addition to the buildings listed in Tax Code, §156.001, manufactured homes, skid mounted bunk houses, residency inns, condominiums, cabins, and cottages.(4) Permanent Resident--A person who has the right to use or occupy a room or space in a hotel for at least 30 consecutive days without interruption. A person may be an individual, organization, or entity.(5) Private Club--An organization that provides members entertainment, recreation, sport, dining, social facilities, or other significant club amenities and assesses membership dues, initiation fees, and other charges, assessments, and fees for special privileges or status not available to the general public. The rental of a room is insignificant to the purpose or purposes of the organization and members pay the membership dues, initiation fees, and other charges, assessments, and fees not just for the right to rent a room but for other significant club amenities.(6) Religious organization--A nonprofit organization that is an organized group of people regularly meeting for the primary purpose of holding, conducting and sponsoring religious worship services, according to the rights of their sect. The organization must be able to provide evidence of an established congregation showing that there is an organized group of people regularly attending these services. An organization that supports and encourages religion as an incidental part of its overall purpose, or one whose general purpose is furthering religious work or instilling its membership with a religious understanding, will not qualify for exemption under this provision. No part of the net earnings of the organization may inure to the benefit of any private party or individual other than as reasonable compensation for services rendered to the organization. Some examples of organizations that do not meet the requirements for exemption under this definition are conventions or associations of churches, evangelistic associations, churches with membership consisting of family members only, missionary organizations and groups who meet for the purpose of holding prayer meetings, bible study or revivals.(b) Exemptions. This subsection deals with exemptions from the state hotel occupancy tax. For information on city and county hotel taxes, contact the affected city or county.(1) Religious, charitable, and educational organizations and their employees, including college and university personnel, traveling on official business of the organization are exempt from payment of hotel occupancy tax.(2) State officials, judicial officers, heads of state agencies, the Executive Director of the Legislative Council, the Secretary of the Senate, state legislators, legislative employees, members of state boards and commissions, and designated state employees of the State of Texas who present a Hotel Tax Exemption Photo Identification Card when traveling on official state business are exempt from the hotel occupancy tax. State agency, institution, board, or commission employees who have not been issued a Hotel Tax Exemption Photo Identification Card must pay the hotel occupancy tax. The hotel tax paid by the state or reimbursed to a state employee may be refunded as provided in §3.163 of this title (relating to Refund of Hotel Occupancy Tax). For the purpose of claiming an exemption, a Hotel Tax Exemption Photo Identification Card includes:(A) any photo identification card issued by a state agency that states \"EXEMPT FROM HOTEL OCCUPANCY TAX, under Tax Code, §156.103(d)\", or similar wording; or(B) a Hotel Tax Exemption Card that states \"when presented with a photo identification card issued by a Texas agency, the holder of this card is exempt from state, municipal, and county hotel occupancy tax, Tax Code, §156.103(d)\", or similar wording.(3) The United States government and its employees traveling on official business representing the United States government are exempt from the hotel occupancy tax.(4) Diplomatic personnel of a foreign government who present an appropriate Tax Exemption Card issued by the United States Department of State are exempt from the tax.(5) If an exemption applies, then the organization or individual claiming exemption must present an exemption certificate to the hotel.(6) Permanent residents are exempt from payment of hotel occupancy tax.(A) A permanent resident is exempt beginning on:(i) the first day for which the resident has entered into a written agreement with the hotel or has given a written notice to the hotel of the resident's intent to use or occupy a room or space in the hotel for the next 30 or more consecutive days and the resident actually stays for at least the next 30 consecutive days; or(ii) the first day after the 30th consecutive day of the stay, if the resident neither gave written notice of intent to stay, nor entered into any written agreement with the hotel. For example, if a person does not notify the hotel that he intends to stay for at least 30 days, but stays 35 days, then the person is exempt from hotel tax from the 31st day through the 35th day, but tax is due on the first 30 consecutive days of the occupancy.(B) The permanent resident exemption ends when an interruption in the right to use or occupy the room or space occurs.(C) Permanent residents are not required to physically occupy a room or space.(D) Permanent residents may have the right to use or occupy different rooms in the same hotel without loss of the permanent resident exemption.(E) The permanent resident exemption applies to the lowest number of rooms in a written notice, agreement, or contract for a range of rooms plus the number of rooms that qualify for the permanent resident exemption under subparagraph (A)(ii) of this paragraph. Attached Graphic(c) Exemption certificate.(1) Any organization or individual claiming exemption from the payment of hotel occupancy tax must furnish the hotel with a signed exemption certificate.(2) The rental of a room or space in a hotel is exempt from tax if the person required to collect the tax receives, in good faith from a guest, a properly completed exemption certificate stating that the guest qualifies for exemption under Tax Code, §156.102 or §156.103 or other law. The exemption certificate must be supported by the following documentation:(A) for persons traveling on official business of the federal government, a valid government identification card;(B) for state officials exempted by Tax Code, §156.103(d), a Hotel Tax Photo Identification Card, as described in subsection (b)(2)(A) or (B) of this section;(C) for diplomatic personnel of a foreign government, the appropriate Tax Exemption Card issued by the United States Department of State;(D) for persons traveling on official business of a charitable, educational, or religious organization, as defined in subsection (a)(1), (2) or (6) of this section:(i) a letter of hotel tax exemption issued by the Comptroller of Public Accounts; or(ii) verification that the organization is on the comptroller's list of entities that have been provided a letter of exemption; such as, a printed copy of the Comptroller of Public Accounts Internet Web site listing the organization as exempt for hotel tax.(E) For persons traveling on official business of an organization exempt by law other than Tax Code, Chapter 156:(i) a letter of hotel tax exemption issued by the Comptroller of Public Accounts; or(ii) verification that the organization is on the comptroller's list of entities that have been provided a letter of exemption.(F) The manner of payment by an employee of an exempt organization does not affect the exemption. To claim an exemption a nonemployee traveling on behalf of an exempt organization must pay the hotel directly with the organization's funds, by organization check, organization credit card, or direct billing to the organization by the hotel.(3) A hotel claiming exemption of its receipts from hotel occupancy tax must provide proof that the receipts were exempt, either through exemption certificates or other competent evidence.(4) Certain entities that are exempt from hotel tax may be issued identification numbers for administrative purpose only. The comptroller may issue a tax number to an entity that is not exempt from Hotel Tax, and a tax number does not guarantee that an organization is exempt from Hotel Tax. An organization is not required to provide an identification number on the Hotel Tax Exemption Certificate.(5) The exemption certificate must be substantially in the form provided by the Comptroller of Public Accounts and include:(A) name and address of the exempt organization;(B) qualification for exemption under Tax Code, §156.102 or §156.103 or other law; and(C) name and signature of the occupant or, when the exempt organization issues the certificate, the name and signature of an authorized representative.(6) Copies of the certificate may be obtained from the Comptroller of Public Accounts, P.O. Box 13528, Austin, Texas 78711-3528 or requested by calling 512-463-4600 or our toll-free number 1-800-252-1385. Taxpayers may download copies at www.window.state.tx.us.(d) Exclusions.(1) Dormitories and other housing facilities owned or leased and operated by institutions of higher education as defined in subsection (a)(2) of this section and used to provide sleeping accommodations for persons engaged in educational programs or activities at the institutions are excluded from the definition of a hotel in Tax Code, §156.001, and their rentals are not subject to tax. Hotels owned or leased and operated by institutions of higher education, however, are not excluded and their rentals are subject to tax.(2) Private clubs as defined in subsection (a)(5) of this section do not collect tax on rentals of rooms to members. Tax is due, however, on the rental of rooms to nonmembers. An organization is not a private club and must collect hotel occupancy tax on rentals of rooms to members and nonmembers if the organization:(A) does not provide members entertainment, recreation, sport, dining, social facilities, or other significant club amenity in addition to lodging;(B) does not assess membership dues, initiation fees and other charges, assessments, and fees for special privileges or status not available to the general public; and(C) the rental of a room is not insignificant to the purpose or purposes of the organization.",
            "sourceNote": "Source Note: The provisions of this §3.161 adopted to be effective December 6, 1996, 21 TexReg 11493; amended to be effective August 12, 1998, 23 TexReg 8182; amended to be effective March 16, 2000, 25 TexReg 2155; amended to be effective January 7, 2003, 28 TexReg 354; amended to be effective June 1, 2004, 29 TexReg 5413; amended to be effective November 23, 2009, 34 TexReg 8337."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=184193&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "184193",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "HOTEL OCCUPANCY TAX"
            },
            "rule": {
                "number": "§3.162",
                "label": "Hotel Occupancy Tax Base and Collection of the Tax"
            },
            "nextRule": {
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                "recordId": "144688",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Tax Base.(1) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (A) Charges for personal services--Charges which are unrelated to the cost of the actual occupancy of the room or rooms. Charges for personal services do not include charges which are related to the cleaning and readying of a room for occupancy.(B) Occupancy--The use or possession, or the right to the use or possession, of any room or rooms in a hotel for any purpose. (2) Charges subject to the tax. All charges for items or services, other than personal services or charges for the use of a telephone, which are furnished in  connection with the actual occupancy of the room are subject to the hotel occupancy tax. The taxable charges include charges for the use of a television and charges for the furnishing of additional beds or cots. These charges are includable within the tax base whether or not separately stated.Attached Graphic(3) Charges not subject to tax. Charges for personal services are not subject to the hotel occupancy tax if they are separately stated. This includes charges for room service, messenger service, and valet service. (4) Package deals. If a hotel includes meals, drinks, admission to tourist attractions, or any other unrelated benefit in the charge for lodging, hotel occupancy tax must be paid on the entire amount. Only if  these charges are separately stated on the bill to the customer may they be deducted from the amount subject to tax. (b) Collection of Tax.(1) A charitable, eleemosynary, educational, or religious organization as defined in §3.161 of this title (relating to Definitions, Exemptions, and Exemption Certificate) that operates a hotel is not exempt from the requirement to report and pay hotel occupancy tax. (2) The hotel occupancy tax must be collected for the rental of meeting and banquet rooms located in a building having sleeping accommodations. (3) A person required to file a hotel occupancy tax report may withhold 1.0% of the tax due as shown on the report as reimbursement for the cost of collecting the tax.  However, a person who fails to report the tax when due or fails to pay the tax within the required time may not claim the reimbursement.",
            "sourceNote": "Source Note: The provisions of this §3.162 adopted to be effective April 13, 1983, 8 TexReg 1028; amended to be effective December 5, 1996, 21 TexReg 11494."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=144688&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "144688",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
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            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
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            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "HOTEL OCCUPANCY TAX"
            },
            "rule": {
                "number": "§3.163",
                "label": "Refund of Hotel Occupancy Tax"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208461&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208461",
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            "ruleBody": "(a) State agency. A state agency is an agency, institution, board, or commission of the State of Texas other than an institution of higher education as defined in Education Code, §61.003.(b) Refunds. A state agency may request a refund for each fiscal year quarter for the state hotel tax paid directly to a hotel or the amount of state hotel tax for which the agency reimbursed a state employee on a state travel voucher. A state agency that uses the Uniform Statewide Accounting System (USAS) will receive its state hotel tax refund by way of USAS. A state agency must directly contact the applicable city or county to apply for a refund of municipal or county hotel tax for which the agency reimbursed a state employee.(c) Time limitation. A state agency may apply for a refund of state hotel tax no later than two years after the end of the fiscal year in which the travel occurred as provided by Government Code, Chapter 403, Subchapter E. A state agency may apply for a refund of municipal or county hotel occupancy tax for each calendar quarter according to the local city or county ordinance. In the absence of a local ordinance, the same time limitation that applies to the refund of state hotel tax will apply to municipal and county taxes.(d) Documentation required.(1) Documentation must be maintained to substantiate the claim, including a copy of the hotel folio, billing statement, invoice, or other document, that contains the following information:(A) name of the hotel;(B) location address of hotel;(C) name of city where hotel is located;(D) name of county where hotel is located;(E) date(s) of lodging;(F) amount of state, municipal, and county hotel tax paid separately stated;(G) method of payment (travel voucher reimbursement, state credit card, state purchase order, direct billing, other); and(H) name of employee, if tax reimbursed on travel voucher.(2) A municipality or county may, by local ordinance, require additional documentation or require documentation be submitted with a claim for refund of local tax.(e) Separate refund claim required. A separate refund claim form must be filed with each municipality or county.(f) Form. Each claim for refund for state hotel occupancy tax must be filed on a form furnished by the comptroller. The municipal and county hotel occupancy tax refund claim form, herein adopted by reference, must be substantially in the form set out as follows. Copies of the certificate are available for inspection at the office of the Texas Register or may be obtained from the Comptroller of Public Accounts, P.O. Box 13528, Austin, Texas 78711-3528. Copies may also be requested by calling 512-463-4600 or our toll-free number 1-800-252-1385.",
            "sourceNote": "Source Note: The provisions of this §3.163 adopted to be effective December 6, 1996, 21 TexReg 11494; amended to be effective October 17, 2001, 26 TexReg 8191; amended to be effective February 25, 2010, 35 TexReg 1467."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=164087&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "164087",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "KK",
                "label": "SCHOOL FUND BENEFIT FEE"
            },
            "rule": {
                "number": "§3.1251",
                "label": "School Fund Benefit Fee"
            },
            "nextRule": {
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commercial motor vehicle--A self-propelled vehicle used to transport passengers for compensation or hire between points in Texas on a fixed or scheduled route that:(A) has a gross weight, registered weight, or gross weight rating of more than 26,000 pounds; or(B) is designed to transport more than 15 passengers, including the driver.(2) Fixed or scheduled route--Published routes between fixed points in Texas that are open for travel by the general public with intended times of departure and arrival at a terminal or other specified location. Fixed or scheduled route travel includes the distance from the Texas border to the first arrival point, the distance from the first arrival point to the last departure point, and the distance from the last departure point to the Texas border.(3) Political subdivision--Any county, city, town, village, district, or other political subdivision of the state. For the purpose of this section, a political subdivision includes a person performing a contract to provide transportation services for any city, town, village, district, or other political subdivision of the state.(b) Collection of tax on sales of diesel fuel. Diesel fuel suppliers, permissive suppliers, distributors, and retail dealers must collect the tax imposed by Tax Code, Chapter 162, on sales of diesel fuel to any person qualifying for a tax refund under subsection (c) of this section.(c) Refund of tax paid on diesel fuel used on fixed or scheduled routes.(1) A person, other than a political subdivision, who owns, controls, operates, or manages a commercial motor vehicle and uses diesel-powered motor vehicles to transport passengers for compensation or hire between points in Texas on fixed or scheduled routes may file a claim for refund with the comptroller for state taxes paid on diesel fuel used exclusively in commercial motor vehicles while traveling fixed or scheduled routes.(2) The amount of fuel subject to state motor fuels tax refund shall be computed by dividing the total miles traveled on fixed or scheduled routes by the vehicles' average mile-per-gallon.(3) A claim for refund must be filed in the calendar month following the month in which the diesel fuel is used in a commercial motor vehicle.(4) A claim for refund of tax paid on diesel fuel consumed while traveling fixed or scheduled routes may not be paid unless the motor vehicle operator has filed the required school fund benefit fee report.(5) Tax paid on diesel fuel used to operate commercial motor vehicles on charter trips or other non-fixed or non-scheduled routes is not refundable, other than for refunds provided by §3.432 of this title (relating to Refunds on Gasoline and Diesel Fuel Tax).(d) School fund benefit fee due. A fee is imposed under Transportation Code, Chapter 20, §20.002, on diesel fuel exempted from the motor fuels tax under Tax Code, Chapter 162, at a rate of $0.04875 per gallon.(e) Due date of report and payment.(1) The school fund benefit fee report and payment are due not later than the last day of the month following the calendar month in which liability for the fee is incurred.(2) A commercial motor vehicle operator must file a monthly report even if there is no fee to report.(3) Penalties due on delinquent fees and reports shall be imposed as provided by Tax Code, §111.061.(4) Interest on delinquent fees shall be imposed as provided by Tax Code, §111.060.(f) Records required. A commercial motor vehicle operator shall keep records showing:(1) all fixed or scheduled routes;(2) the date and number of miles traveled on fixed or scheduled routes in Texas;(3) the date and number of miles traveled on charter trips and other non-fixed or non-scheduled routes in Texas;(4) the number of gallons of diesel fuel on hand on the first day of each month;(5) the number of gallons of diesel fuel purchased or received, showing the name of the seller and the date of each purchase;(6) the date and number of gallons of diesel fuel delivered into the fuel supply tanks of commercial motor vehicles; and(7) the date and number of gallons delivered into the fuel supply tanks of other diesel powered motor vehicles.",
            "sourceNote": "Source Note: The provisions of this §3.1251 adopted to be effective March 16, 2000, 25 TexReg 2157; amended to be effective April 13, 2005, 30 TexReg 2098; amended to be effective October 29, 2013, 38 TexReg 7465."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126272&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126272",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
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                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
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            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "LL",
                "label": "OYSTER SALES FEE"
            },
            "rule": {
                "number": "§3.1261",
                "label": "Reports, Payments, and Record Keeping Requirements"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section shall have the following meanings, unless the context clearly indicates otherwise.(1) Barrel--Three 100-pound containers of oysters.(2) Certificate (Shellfish Certificate of Compliance)--A numbered document that the Seafood and Aquatic Life Group of the Texas Department of State Health Services issues and that authorizes a dealer to process oysters for sale.(3) Certified location--A plant or place of business that the Seafood and Aquatic Life Group of the Texas Department of State Health Services has inspected and for which that department has issued a Shellfish Certificate of Compliance.(4) Certified shellfish dealer--A person to whom the Texas Department of State Health Services has issued a Certificate of Compliance that authorizes the activities of molluscan shell stock shipper, shucker-packer, repacker, or depuration processor.(5) Container--For the purposes of this section, any material holding oysters.(6) Harvest--The process of gathering or removing oysters from their growing areas.(7) Pack--All activities involved in placing oysters in containers.(8) Shell stock--Live oysters in the shell.(9) Shucked oysters--Oysters, whole or in part, from which one or both shells have been removed.(10) Take--To catch, hook, net, snare, trap, kill, or capture by any means, including the attempt to take, oysters from their growing areas.(b) Fee imposed. A fee of $1.00 for each barrel is imposed on the first certified shellfish dealer who harvests, purchases, handles, stores, packs, labels, unloads at dockside, or holds oysters taken from Texas waters.(c) Reporting period. A certified shellfish dealer must file a report with the comptroller on or before the 20th day of the month following the month in which the barrels of oysters were handled. The report must include the total number of barrels of oysters upon which the fee is imposed. A certified shellfish dealer must file a report, even if the dealer owes no fee for the report period.(d) Report forms. Each certified shellfish dealer must report the oyster sales fee on the forms prescribed by the comptroller. A certified shellfish dealer who does not receive the forms or does not receive the correct forms from the comptroller is not relieved of the responsibility of paying the required fee and any penalties and/or interest owed.(e) Reporting Waiver Request. Using a form prescribed by the comptroller, a certified shellfish dealer may request a waiver from the requirement to file the monthly reports when the dealer, at a specified location, is not the first certified shellfish dealer to harvest, purchase, handle, store, pack, label, unload at dockside, or hold oysters taken from Texas waters. If the certified shellfish dealer intends to change plant operations at a later date at the specified location in a manner that will require payment of the oyster sales fee, the dealer must inform the comptroller, in writing, prior to implementing the change.(f) Payment of the fee. Not later than the 20th day of each month, each certified shellfish dealer shall remit to the comptroller the total fee amount due.(g) Payment of penalties.(1) Overweight penalty. A certified shellfish dealer who purchases or packs oysters in containers that exceed 110 pounds in weight is liable for a penalty of $5.00 for each container purchased or packed that exceeds 110 pounds. Payment of an overweight penalty is due with the filing of the report for the month in which the overweight container was handled.(2) Late filing penalty. A certified shellfish dealer who does not file a monthly report required in subsection (c) of this section or pay the fee required in subsection (b) of this section or the overweight penalty required by paragraph (1) of this subsection in full, is liable for a late filing penalty of 10% of the sum of the fee amount due and the total overweight penalty amount due.(h) Enforcement provisions. Tax Code, Title 2, Subtitles A and B, apply to the comptroller's administration, collection, and enforcement of Health and Safety Code, §436.103.(1) Compliance inspections by the comptroller. The comptroller may conduct periodic inspections of plant operations to ensure compliance with the provisions of this section.(2) Weighing oyster containers. During compliance inspections, the comptroller may weigh all oyster containers in the certified shellfish dealer's possession or use a projection method to determine the number of overweight oyster containers. Containers that weigh more than 110 pounds are overweight and are subject to an overweight penalty. The projection method consists of weighing a portion of oyster containers in the certified shellfish dealer's storage facility or offloading facility. The penalty amount is calculated and assessed based on the percentage of total containers that are overweight. The percentage is determined by dividing the total number of containers that are overweight by the total number of containers weighed. For example, if 15 containers are weighed and five of the 15 are overweight, the comptroller will project that 33% of all oyster containers in the dealer's possession at the time of the inspection are overweight.(3) Past due fees and penalties. The comptroller may certify to the Texas Department of State Health Services that a fee, overweight penalty, or late filing penalty is past due. On certification from the comptroller, the Texas Department of State Health Services may suspend the shellfish certificate of the certified shellfish dealer until the fee, overweight penalty, or late filing penalty is paid in full.(4) Refusal to pay past due fees and penalties. The comptroller may certify to the Texas Department of State Health Services that a certified shellfish dealer refuses to pay a fee, overweight penalty, or late filing penalty after written demand by the comptroller. On certification from the comptroller, the Texas Department of State Health Services may revoke the shellfish certificate of a certified shellfish dealer who refuses to pay a fee, overweight penalty, or late filing penalty.(i) Interest. Interest due on delinquent fees or overweight penalties shall be imposed as provided by Tax Code, §111.060.(j) Records required.(1) A certified shellfish dealer must keep all invoices, purchase contracts, installment or credit agreements, and any other records relating to harvesting, purchasing, handling, storing, packing, labeling, unloading at dockside, or holding oysters taken from Texas waters for at least four years after the date each report is filed with the comptroller.(2) Any person liable for the oyster sales fee must make the person's records or equipment available to the comptroller or the comptroller's representative for examination to verify the accuracy of any report made or to determine the fee liability if no report is filed.",
            "sourceNote": "Source Note: The provisions of this §3.1261 adopted to be effective December 25, 2000, 25 TexReg 12811; amended to be effective September 5, 2006, 31 TexReg 7134."
        },
        {
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            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "MM",
                "label": "TEXAS PREPAID WIRELESS 9-1-1 EMERGENCY SERVICE FEE"
            },
            "rule": {
                "number": "§3.1271",
                "label": "Prepaid Wireless 9-1-1 Emergency Service Fee"
            },
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            "ruleBody": "(a) Application of Tax Code, Chapter 151. The statutory provisions, administrative rules, and agency policies applicable to Chapter 151 will apply as deemed necessary by the comptroller for administration of the fee to the extent not addressed expressly in this section.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) \"Consumer\" means a customer, person, purchaser or subscriber of a prepaid wireless telecommunication service or the user of a prepaid wireless telecommunication service.(2) \"Fee\" means the prepaid wireless 9-1-1 emergency service fee a seller collects from a consumer in the amount required under Health and Safety Code, §771.0712.(3) \"Mobile telecommunications service\" means the provision of a commercial mobile radio service, as defined in 47 C.F.R. 20.3 of the Federal Communications Commission's (FCC) regulations in effect on June 1, 1999 under the Mobile Telecommunications Sourcing Act (4 U.S.C. §§116-126). The term includes cellular telecommunications services personal communications services (PCS), specialized mobile radio services, wireless voice over Internet protocol services, and paging services. The term does not include telephone prepaid calling cards or air-ground radio telephone services as defined in 47 C.F.R. 22.99 of FCC regulations in effect on June 1, 1999.(4) \"Prepaid wireless telecommunication service\" means a mobile telecommunications service that allows a person to access 9-1-1 emergency communication services and is paid for entirely in advance.(5) \"Purchase price\" means the total amount paid for a prepaid wireless service, valued in money without a deduction for:(A) the cost of items sold, leased, or rented with the service;(B) the materials used, labor or service employed, interest, losses, or other expenses;(C) the transportation or delivery; or(D) other charges incident to the performance of a prepaid wireless service.(6) \"Retail transaction\" means an individual purchase of a prepaid wireless telecommunication service from a seller for any purpose other than a sale for resale.(7) \"Sale for resale\" means a sale of a prepaid wireless telecommunication service to a purchaser who acquires the service for the purpose of reselling it in the United States in the normal course of business either in the form or condition in which it is purchased or as an integral part of a taxable item as defined by Tax Code, Chapter 151.(8) \"Seller\" means a person who sells prepaid wireless telecommunication services to any consumer. The term includes \"seller\" and \"retailer\" as defined by Tax Code, §151.008.(9) \"Wireless service provider\" means a provider of commercial mobile service under the Federal Telecommunication Act of 1996, §332(d), (47 U.S.C. §151 et seq.), Federal Communications Commission rules, and the Omnibus Budget Reconciliation Act of 1993 (Pub. L. No. 103-66), and includes a provider of wireless two-way communication service, radio-telephone communications related to cellular telephone service, network radio access lines or the equivalent, and personal communication service. The term does not include a provider of:(A) a service whose users do not have access to 9-1-1 emergency services;(B) a communication channel used only for data transmission;(C) a wireless roaming service or other nonlocal radio access line service; or(D) a private telecommunications service.(c) Registration.(1) Every seller must register to collect and remit the fee by completing and submitting to the comptroller Form AP-201, Texas Application for Sales and Use Tax Permit. A seller's registration number for purposes of collecting the fee will be the same as the seller's sales and use tax permit number.(2) A bond or other security may be required at the comptroller's discretion. If a bond or security is required the provisions of Tax Code, §§151.251 - 151.260 will apply. A seller who registers for the prepaid wireless fee may be required to post a bond or security in an amount that is equal to four times the amount of the average monthly tax liability but the minimum amount may not be less than $500 and the maximum cannot exceed $100,000.(d) Imposition and collection of fee.(1) Effective June 1, 2010, the fee shall be collected by the seller from the consumer at the time of and with respect to each retail transaction of prepaid wireless telecommunication services in this state.(2) The fee is 2.0% of the purchase price of each prepaid wireless telecommunication service sold by way of retail transaction or used by a seller in this state.(3) The amount of the fee shall be separately stated on an invoice, receipt, electronic communication, or other similar document that is provided to the consumer by the seller and is not subject to any other tax or fee imposed by Tax Code, Title 2.(4) A seller or a wireless service provider is liable for the fee on:(A) the retail price; or(B) the value of a prepaid wireless telecommunication service not sold at retail but used by a seller or other person in Texas. Examples of prepaid wireless telecommunication service not sold at retail but used by a person in Texas include:(i) a seller of prepaid wireless telecommunication service provides free prepaid wireless service to its employees;(ii) a seller of prepaid wireless telecommunication service provides free of charge prepaid wireless service to participants at a local golf tournament in exchange for the tournament displaying a banner or sign with the retailer's logo or name; and(iii) a seller of prepaid wireless telecommunication service donates prepaid wireless calling cards to a local high school sports team booster club to be used in a silent action as part of a fund raiser.(5) If charges for items that are not subject to the fee are combined with and not separately stated from charges subject to the fee on the consumer's invoice, receipt, electronic communication, or similar document for prepaid wireless telecommunication services, the combined charge is subject to the fee unless the seller can identify the portion of the charges that are not subject to the fee through the seller's books and records kept in the regular course of business. If the charges that are not subject to the fee cannot reasonably be identified, all charges related to the sale are subject to the fee. The seller has the burden of proving what charges are not subject to the fee.(6) Exemptions. The fee imposed by this section may not be imposed on or collected from this state or the federal government. A person operating under a contract with the federal government is not exempt from the fee.(7) Sales for resale.(A) Every seller must collect the fee on services sold unless a valid and properly completed resale certificate is received from the purchaser. Evidence that a purchaser is properly registered with the comptroller for the collection of the fee is not sufficient to relieve the seller from the responsibility for collecting the fee without the issuance of a properly completed certificate. A properly completed resale certificate must show:(i) the name and address of the purchaser;(ii) the registration number held by the purchaser or a statement that an application for a registration is pending before the comptroller with the date the application for registration was made. If the application is pending, the resale certificate is valid for only 60 days, after which time the resale certificate must be renewed to show the permanent registration number. If the purchaser registered for the 911 prepaid wireless fee, the number must consist of 11 digits that begin with a 1, or 3. Federal employer's identification (FEI) numbers or social security numbers are not acceptable evidence of a purchase for resale;(iii) the signature of the purchaser or an electronic form of the purchaser's signature authorized by the comptroller and the date; and(iv) the name and address of the seller.(B) A seller may accept a resale certificate only from a purchaser who is in the business of reselling the prepaid wireless telecommunication services within the geographical limits of the United States of America, its territories, and possessions.(C) The seller must act in good faith when accepting the resale certificate. If a seller has actual knowledge that the exemption claimed is invalid, the seller must collect the fee.(D) A person who intentionally or knowingly makes, presents, uses, or alters a resale certificate for the purpose of evading the fee is guilty of a criminal offense. An offense is:(i) a Class C misdemeanor if the tax evaded by the invalid certificate is less than $20;(ii) a Class B misdemeanor if the tax evaded by the invalid certificate is $20 or more but less than $200;(iii) a Class A misdemeanor if the tax evaded by the invalid certificate is $200 or more but less than $750;(iv) a felony of the third degree if the tax evaded by the invalid certificate is $750 or more but less than $20,000; and(v) a felony of the second degree if the tax evaded by the invalid certificate is $20,000 or more.(e) Sourcing. A retail transaction is deemed to have occurred in this state when the transaction occurs at a business location in this state or when the consumer's primary business address or residential address is in Texas. Each seller must determine the consumer's address for each retail transaction made by telephone and over the Internet. The fee is due when the consumer's primary business address or residential address is in Texas.(f) Reports and due dates.(1) All sellers must report collections of the fee on comptroller form 54-104 (Texas Prepaid Wireless 9-1-1 Emergency Service Fee Report). The fact that a seller does not receive the form or does not receive the correct form from the comptroller does not relieve the seller of the responsibility of filing a report and remitting the fees collected.(2) Each report is due on or before the 30th day of the month following the end of each calendar quarter which is January 30, April 30, July 30, and October 30. The first report is due on or before July 30, 2010 and will cover the calendar month of June. Reports and payments due on Saturdays, Sundays, or legal holidays may be submitted on the next business day.(A) Reports submitted by mail must be postmarked on or before the due date to be considered timely.(B) Reports filed electronically must be completed and submitted by 11:59 p.m., central time, on the due date to be considered timely.(C) Electronic Funds Transfer (EFT) system payments. To be considered timely, a payment submitted through an EFT system must enter into the applicable EFT program by 6:00 p.m., central time, on any day on or before the due date other than a weekend or banking holiday.(D) A person who files tax reports and makes payments through the electronic data interchange (EDI) system must enter the payment information into the EDI system by 2:30 p.m., central time, to meet the 6:00 p.m. central time requirement that is noted in subparagraph (A) of this paragraph.(E) If the due date falls on a weekend or banking holiday, payment information must be submitted by the time parameters noted in subparagraphs (A) and (B) of this paragraph on the business date prior to the due date to be considered timely. For more information see §3.9 of this title (relating to Electronic Filing of Returns and Reports; Electronic Transfer of Certain Payments by Certain Taxpayers).(3) Extensions due to disasters. The comptroller may grant to a seller or other person whom the comptroller finds to be a victim of a disaster an extension of not more than 90 days to make or file a report or pay the fee. The person owing the fee may file a written request for an extension at any time before the expiration of 90 days after the original due date. If an extension is granted, interest on the unpaid fee does not begin to accrue until the day after the day on which the extension expires and penalties are assessed and determined as though the last day of the extension were the original due date.(g) Seller compensation. A seller may deduct and retain 2.0% of the fees it collects during each report period to offset its costs in collecting and remitting the fee.(h) Penalties.(1) A penalty of 5.0% of the fee due shall be imposed upon a seller who fails to timely remit the fee imposed or file a report required by this section.(2) If a seller fails to file the report or remit the fee within 30 days after the day on which the fee or report is due, an additional 5.0% penalty shall be imposed.(3) An additional penalty of 50% of the fee due shall be imposed if it is determined that:(A) the failure to remit the fee or file a report when due was a result of fraud or an intent to evade the fee; or(B) the seller alters, destroys, or conceals any record, document, or thing, or presents to the comptroller any altered or fraudulent record, document, or thing, or otherwise engages in fraudulent conduct, for the apparent purpose of affecting the course or outcome of an audit, investigation, redetermination, or other proceeding before the comptroller.(i) Interest. Interest due on unpaid, unremitted, or delinquent fees shall be imposed as provided by Tax Code, §111.060.(j) Records required.(1) All sellers or other persons subject to collecting and/or remitting the fee must keep adequate records in order to accurately determine the amount of fee due for a period of four years.(2) The comptroller has the right to examine, copy, and photograph any records or equipment of any seller or other person who is liable for collecting the fee in order to verify the accuracy or any report or to determine the fee liability in the event that no report is filed.(3) A seller or other person commits a criminal offense by intentionally or knowingly concealing, destroying, entering false information in, or failing to make an entry in, records that are required to be made or kept under this section.(k) Audits. Records of sellers or consumers may be audited by the comptroller or the comptroller's representative. The audit will be performed by examining any records, books, or other information which are maintained by the seller or consumer. If the records are inadequate or do not accurately reflect the fees due, the auditor will base the audit report on the best available information.(l) Statute of limitations for assessments.(1) Unless otherwise provided by this section, the comptroller has four years from the date the fee becomes due and payable in which to assess a liability for unpaid fees. Before the expiration of the statute of limitations, the comptroller and a seller or consumer may agree in writing to an extension. The agreement must comply with the provisions of Tax Code, §111.203. An extension applies only to the periods specifically mentioned in the agreement. Any assessment or refund request pertaining to periods for which limitations have been extended must be made prior to the expiration date of the agreement. Following expiration of the agreement, the statute of limitations applies to subsequent assessments and refund requests as if no extension had been authorized.(2) In cases of fraud, or if reports have not been filed, the statute of limitations does not apply and the comptroller may assess and collect fees, penalties, and interest at any time. The statute of limitations does not apply when information contained in the report of a seller contains a gross error and the amount of fee due and payable after correction of the error is 25% or more greater than the amount initially reported.(3) The statute of limitations does not apply to any period for which a seller has filed a timely claim for a refund. If, while investigating the merits of the refund claim, the comptroller determines that additional fee is due, an assessment may be made for that period until a final decision is made on the claim for refund.(4) A redetermination proceeding does not toll the statute of limitations, except for the issues contested.(m) Refund claims by registered sellers.(1) Fees, penalties, or interest will not be refunded by the comptroller to a registered seller who has collected the fee in error from a consumer until all such fees are first refunded or credited with the consumer's written consent. A registered seller is entitled to claim a credit or request a refund of fees equal to the amount of fees refunded to a consumer when the consumer receives a full or partial refund of the sales price of a returned item subject to the fee.(2) After the registered seller has refunded or credited the fee to the account of the consumer or when a seller has incorrectly reported the amount of the fee due on a report, the registered seller may then seek reimbursement from the comptroller in accordance with the procedures that are outlined in paragraph (4) of this subsection, or take a credit on a future report filed by the seller in the amount refunded or credited to the account of the consumer.(3) Reports and documentation. The registered seller must retain all documentation that is necessary to support the refund or credit claimed.(4) Requirements for refund claims filed with the comptroller.(A) A registered seller who requests a refund from the comptroller must submit a claim in writing that identifies the period during which the claimed overpayment was made and must state fully and in detail the specific grounds upon which the claim is based, including, at a minimum, each of the following about each transaction upon which a refund is requested:(i) consumer or seller's name, as appropriate;(ii) invoice, receipt, electronic communication or similar document, if applicable;(iii) date of retail transaction;(iv) description of the services purchased or sold;(v) specific reason for the refund, such as applicable statutory authority;(vi) purchase or sale amount subject to refund; and(vii) total amount of fee refund requested.(B) A registered seller must submit the claim within the applicable limitations period as provided by paragraph (7) of this subsection.(C) Supporting documentation required by the comptroller to verify any refund claimed or credit taken must be maintained and made available upon request.(5) Interest.(A) Except as provided by subparagraph (B) of this paragraph, in a comptroller's final decision on a claim for refund, interest accrues at the rate that is set in Tax Code, §111.064, on the amount that is found to be erroneously paid:(i) beginning on the later of 60 days after the date of payment or the due date of the fee report; and(ii) ending on, as determined by the comptroller, either:(I) the date of allowance of credit that results from a final decision that the comptroller has issued, or from an audit; or(II) a date that is not more than 10 days before the date of the refund warrant.(B) Credits taken by a fee payer on the fee payer's report do not accrue interest.(6) Denial of refund.(A) If the comptroller determines that the claim for refund cannot be granted either partially or fully, then the comptroller will notify the claimant of the denial. Claimant may request a refund hearing within 30 days of the denial.(B) A person may not re-file a refund claim for the same transaction or item, fee type, period, and ground or reason that was previously denied by the comptroller.(7) Statute of limitations for refund claims.(A) A claim for refund must be made within four years from the date on which the fee was due and payable.(B) A claim for refund for a fee paid pursuant to a jeopardy deficiency determination must be made by the later of:(i) four years from the date on which the fee was due and payable; or(ii) six months after the date on which the jeopardy deficiency determination for the periods becomes final, and is subject to the restriction imposed by subparagraph (C) of this paragraph.(C) A refund claim filed within six months after the date on which a jeopardy deficiency determination becomes final is within the limitations period for all items included in the jeopardy deficiency determination. A refund claim for all other items is subject to the limitations period in subparagraph (A) of this paragraph.(D) Extension of limitations period. Before the expiration of the statute of limitations, the comptroller and a fee-payer may agree in writing to extend the limitation period in accordance with Tax Code, §111.203. An extension applies only to the periods specifically mentioned in the agreement and no single extension agreement may be for a period that exceeds 24 months from the date of the expiration of the limitations period being extended. Any refund request pertaining to periods for which limitations have been extended must be made prior to the expiration date of the agreement. Following expiration of the agreement, the statute of limitations applies to subsequent refund requests as if no extension had been authorized.(E) A refund proceeding does not toll the statute of limitations, except for the issues contested.(F) Failure to file a claim within the limitations prescribed by this section constitutes a waiver of any demand against the state on account of the overpayment.(G) The informal review of a refund claim by the comptroller is not a hearing or contested case and does not toll the limitation period for any subsequent claim for refund on the same period and type of fee for which the claim was fully or partially denied.(n) Payments under protest. A person subject to collecting this fee may file suit under Tax Code, Chapter 112, Subchapter B. A person who intends to file a protest suit must submit to the comptroller a letter of protest with the payment of the fee that is the subject of the protest. See §3.9(e) of this title. The letter of protest must state fully and in detail every reason that the fee-payer contends that the assessment is unlawful or unauthorized and must accompany the payment. If the payment and letter of protest do not accompany one another, the payment will not be deemed to have been made under protest. For the fee-payer's convenience, the comptroller will advise the fee-payer of the amount of payment under protest that the comptroller has received and the date of the payment.",
            "sourceNote": "Source Note: The provisions of this §3.1271 adopted to be effective October 21, 2010, 35 TexReg 9334."
        },
        {
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            "currentRecordId": "208461",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.276",
                "label": "Surveying Services"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Confirm--To perform any act, at a location or remotely, to reestablish or verify boundaries of real property or the location of a real property improvement. The term includes reestablishing or verifying the location of a boundary used as a reference point to locate or measure to another point, such as the location of an improvement in relation to the boundaries of real property.(2) Contractor--A person who makes an improvement on real property and who, as a necessary or incidental part of the service, incorporates tangible personal property into the real property improved. For the purposes of this section, the term includes a builder, developer, speculative builder, or other person acting as a builder to improve residential real property.(3) Determine--To perform any act, at a location or remotely, to establish, mark, or set the boundaries of real property or the location of an improvement. The term includes ascertaining the location of a boundary used as a reference point to locate or to measure another point, such as the location of an improvement in relation to the boundaries of real property.(4) Landman--An individual who, in the course and scope of the individual's business:(A) acquires or manages petroleum or mineral interests; or(B) performs title or contract functions related to the exploration, exploitation, or disposition of petroleum or mineral interests.(5) Surveying service--An activity performed on land, from the air, under water or remotely that uses relevant elements of law, research, measurement, analysis, computation, mapping, and land description to determine or confirm the boundaries of real property or to determine or confirm the location of an improvement in relation to the boundaries of real property. Professional surveying subject to regulation under Occupations Code, Chapter 1071 (Land Surveyors), is presumed to be a surveying service.(b) Taxable surveying services. Except as provided in subsection (d) of this section, surveying activities described in subsection (a)(5) of this section that are performed for real property located in Texas are taxable as real property services, including the preparation of the following types of surveys:(1) As-built survey. A survey to depict the relationship of improvements to property boundary lines.(2) Boundary survey. A survey to determine or confirm a boundary line on real property, or to obtain data for constructing a map or description showing a boundary line.(3) Easement survey. A survey to determine or confirm by map or description, the boundaries of a tract of real property used in granting the right, privilege, or liberty given to a person or group to use land belonging to another for a specific and definite purpose. An easement survey may document existing easements or be used to establish a new easement.(4) Land title survey. A boundary survey to determine or confirm boundary locations for title transfer of real property.(5) Right-of-way survey. A survey to determine or confirm right-of way-lines, center lines, or reference lines, including surface, overhead and underground lines. Such surveys typically document the route of highways, railroads, pipelines, waterways or canals, and transmission lines for electrical or communication purposes.(6) Subdivision plat. A survey to divide a tract of real property into parcels or lots, and may include the location of items such as street rights-of-ways or easements. The survey is often performed to meet subdivision statutes or county and municipal regulations. This survey may also be referred to as a lot survey.(7) Title survey. A survey to investigate and evaluate factors affecting and influencing boundary locations, ownership lines, rights-of-way, and easements within or immediately surrounding a tract of real property. A title survey is commonly performed to locate, determine, or reestablish property boundaries for title insurance purposes.(8) Staking and placement services. A survey that establishes, remotely or on the ground, the location and position of various structures or construction projects in relation to the boundaries of the involved site. The survey is used for defining the positions of buildings, structures, wells, canals, fences, walls, and other physical facilities in relation to the boundaries or property lines of the site.(c) Nontaxable surveying services. Surveying activities not described in subsection (a)(5) of this section are not taxable as real property services. Examples of nontaxable surveying services include:(1) As-built verification survey. A survey after construction is completed to determine characteristics of an improvement other than its relationship to property boundary lines, such as principal horizontal and vertical control points, and the dimensions of the finished structures and/or infrastructures.(2) Construction survey. Activities prior to and during a construction project to measure aspects of an improvement other than its relationship to property boundary lines, such as activities to control elevation, horizontal location, dimensions, or configuration; to determine if the construction was adequately completed; and to obtain dimensions for calculating quantities used in construction.(3) Design survey. A survey to obtain information that is essential for planning an engineering project or development and estimating its cost.(4) Existing oil, gas, or oil and gas well ties survey. A survey to gather the locations of existing oil or gas wells in relation to the location of proposed wells.(5) Geodetic/Control survey. A survey to provide horizontal and/or vertical coordinates of fixed points on the surface of the earth to which supplementary surveys or mapping efforts are adjusted.(6) Hydrographic survey. A survey to determine the geometric and dynamic characteristics of bodies of water, including a record of a survey, of a given date, of a water covered region, with particular attention to the relief of the bottom and features under the surface.(7) Monitoring deformation survey. A survey to periodically measure the horizontal and vertical movement or warpage of the surface of the earth or a physical object or structure.(8) Oil or gas drilling unit, proration unit, and pooled unit plats. A drilling unit, proration unit, or pooled unit plat submitted to the Railroad Commission.(9) Seismic survey. A survey to determine the subterranean composition and structure in an area, generally by using a vibroseis or small explosives to measure vibrations.(10) Topographic survey. A survey to determine the configuration, relief, or elevations of a portion of the earth's surface, including the location of natural features.(11) Tree survey. A survey to locate and identify existing trees on real property. If services are performed to evaluate the health of a tree, to remove a tree, or to prune a tree, those services are taxable landscaping services. See §3.356 of this title (relating to Real Property Service).(12) Building elevation survey. A survey to certify building elevations that is issued for completion of the National Flood Insurance Program Elevation Certificate. If the survey or certificate issued is used to evaluate risks to property, is used to determine an individual's eligibility for insurance coverage, is used to determine the proper insurance premium rate, or for determining the payment of insurance policy benefits, the survey provided is taxable as an insurance service. See §3.355 of this title (relating to Insurance Services).(13) Archaeological or historic significance survey. A survey to identify items of archaeological or historic significance performed after boundary surveying has been completed.(14) Location services. Staking, painting, or otherwise marking the approximate future or existing surface positions of tangible personal property or improvements to realty when the service provider takes no actions listed in subsection (a)(5) of this section to determine or confirm the precise property or easement boundaries or the exact location of the item in relation to the boundaries. For example, marking the approximate location where a portable building is to be installed or staking or re-staking the approximate centerline of a pipeline is not taxable when the person marking the approximate location does not determine or confirm the location of the structures in relation to the boundaries of real property.(d) Excluded surveying services. A person performing a surveying service described in subsection (a)(5) of this section is not performing a taxable real property service if:(1) a contractor purchases the surveying service as part of the construction of a new improvement to residential real property or other improvement immediately adjacent to a new improvement to residential real property; or(2) a landman performs the surveying service and it is necessary to negotiate or secure land or mineral rights for acquisition or trade, including:(A) determining ownership;(B) negotiating a trade or agreement regarding land or mineral rights;(C) drafting and administering contractual agreements;(D) ensuring that all governmental regulations are complied with; and(E) any other action necessary to complete the transaction related to a service described by this subsection, other than an information service described by Tax Code, §151.0038 (Information Service).(e) Responsibilities of persons providing surveying services.(1) A person who performs a surveying service described in subsection (a)(5) of this section for consideration must obtain a sales and use tax permit and collect and remit sales or use taxes on all charges for taxable surveying services.(2) A person who performs a surveying service for a contractor who claims the service is excluded from tax as described in subsection (d)(1) of this section must obtain documentation from the contractor demonstrating the surveying service is being purchased as part of the construction of a new improvement to residential real property or other improvement immediately adjacent to a new improvement to residential real property. The contractor and the person who performs the surveying service must retain a copy of these records in accordance with §3.281 of this title (relating to Records Required; Information Required). If the comptroller later determines that the surveying service purchased by the contractor was taxable, the contractor will be liable for the tax due on the purchase including any related penalty and interest.(3) A landman who performs a surveying service defined in subsection (a)(5) of this section that is excluded from tax because it meets the requirements in subsection (d)(2) of this section must retain documentation demonstrating the surveying service provided was not taxable. The landman and purchaser must retain these records in accordance with §3.281 of this title.(4) If a purchaser or seller of a nontaxable surveying service described in subsection (d)(1) or (2) of this section does not maintain the documentation demonstrating that the service is nontaxable, the comptroller may proceed against either the seller or the purchaser, or both until the tax, penalty, and interest have been paid. See §3.282(m) of this title (relating to Auditing Taxpayer Records.)(f) Resale and exemption certificates. The sale of a surveying service described in subsection (a)(5) of this section is presumed taxable.(1) Resale certificates. A person who performs a taxable surveying service may issue a resale certificate to a supplier in lieu of paying tax on purchases of tangible personal property if care, custody, and control of the property transfers to the purchaser as part of the taxable surveying service. The care, custody, and control of tangible personal property is transferred to the purchaser of the service when the purchaser has primary possession of the tangible personal property. For example, a person who performs a taxable surveying service may issue a resale certificate to a supplier when purchasing metal pins or PK nails used to mark boundary lines. A person who performs a taxable surveying service may also issue a resale certificate in lieu of paying tax on purchases of taxable services the person intends to transfer to the purchaser as an integral part of the taxable surveying service. A person who performs taxable surveying services owes tax on tangible personal property, such as supplies, machinery and equipment, used or consumed in performing the service.(A) A person who performs a taxable surveying service may not accept a resale certificate in lieu of collecting tax on a taxable surveying service sold to a purchaser who acquires the service for the purpose of providing a nontaxable service. For example, a person performing taxable surveying services may not accept a resale certificate from a title company on taxable surveying services used in performing nontaxable real estate closing services, even if the title company transfers the survey to the real estate purchaser after the closing. Similarly, a person performing taxable surveying services may not accept a resale certificate from an engineering firm on taxable surveying services acquired for the purpose of providing nontaxable engineering services to either an exempt or non-exempt customer. The engineer owes tax on the purchase of the taxable surveying service used in the provision of the nontaxable engineering service. The engineering firm and the title company are the end-consumers of the taxable surveying services purchased to provide their respective nontaxable services.(B) A person who performs a nontaxable surveying service may not issue a resale certificate in lieu of paying tax on taxable items used or consumed in performing the nontaxable surveying service. A person who performs a nontaxable surveying service is the end-consumer of all taxable items purchased, leased, or rented to perform the nontaxable service. A person who performs a nontaxable surveying service owes tax on all taxable items purchased to perform the service, unless the items are otherwise exempt.(2) Exemption certificates. A person who performs a taxable surveying service may accept a properly completed exemption certificate in lieu of collecting tax if an exempt entity directly contracts for and purchases the surveying service. See §3.322 of this title (relating to Exempt Organizations), §3.287 of this title (relating to Exemption Certificates). See also §3.288 of this title (relating to Direct Payment Procedures and Qualifications) regarding purchasers who may issue a direct payment exemption certificate. Purchase vouchers that are issued by governmental entities exempted under Tax Code, §151.309, are acceptable documentation of exempt transactions. See §3.322(g)(3) of this title.(A) Except as provided by subparagraph (B) of this paragraph, a person who performs a taxable surveying service may not accept an exemption certificate from a person performing nontaxable services for an exempt entity described in Tax Code, §151.309 or §151.310. The person providing the nontaxable services is the end consumer and owes tax on the purchase of the taxable surveying service, even if the person providing the nontaxable services provides a copy of the survey to the exempt entity upon completion of its nontaxable services.(B) A person who performs a taxable surveying service may accept an exemption certificate from a contractor under Tax Code, §151.311, on a purchase of a taxable item for use under a contract to improve realty for an organization that is exempt under Tax Code, §151.309 or §151.310.(g) Unrelated services.(1) A service is an unrelated service if:(A) it is not a taxable surveying service nor a service or labor taxable under another provision of Tax Code, Chapter 151 (Limited Sales, Excise, and Use Tax);(B) it is not provided as a part of the taxable surveying service and is of a type that is commonly provided on a stand-alone basis; and(C) the performance of the unrelated service is distinct and identifiable. Examples of services that are distinct and identifiable from taxable surveying services include nontaxable surveying services, such as a topographical survey, engineering services and architectural or landscaping design services.(2) Unrelated nontaxable services and taxable surveying services sold or purchased for a single charge. When an unrelated nontaxable service and a taxable surveying service are sold together for a single charge, the total amount charged is presumed to be taxable. This presumption does not apply if the portion of the charge attributable to the taxable surveying service represents 5.0% or less of the total charge.(A) The person performing the taxable surveying service with an unrelated nontaxable service may overcome the presumption of taxability by separately stating a reasonable charge for the taxable surveying service to the purchaser at the time of the transaction. A purchaser may presume, in the context of this section, that the service provider's separately stated charge for a taxable surveying service is reasonable. If the charge attributable to the taxable surveying service is not separately stated at the time of the transaction, the service provider or the purchaser may later establish for the comptroller, through documentary evidence, the portion of the total charge that is attributable to an unrelated service.(B) The taxable surveying service provider's books must support the apportionment of the total charge between a taxable surveying service and an unrelated nontaxable service based on either the cost of providing the taxable surveying service or a comparison to the normal charge for each service if it had been performed on a stand-alone basis. If, after reviewing the transaction, the comptroller determines the charge for a taxable surveying service is unreasonable, considering the cost of providing the service or a comparable charge made in the industry for the service, the comptroller may adjust the charges and assess against the person performing the taxable surveying service any additional tax, penalty, and interest due on the taxable surveying service.(h) Local taxes. See §3.334 of this title (relating to Local Sales and Use Taxes) for additional guidance related to local sales and use tax responsibilities.",
            "sourceNote": "Source Note: The provisions of this §3.276 adopted to be effective April 11, 2022, 47 TexReg 1888."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197943&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197943",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.280",
                "label": "Aircraft"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=165144&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "165144",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Affiliate--A member of a group of entities in which a controlling interest is owned by a common owner or owners, either corporate or noncorporate, or by one or more of the member entities.(2) Agricultural aircraft operation--The operation of an aircraft licensed by the FAA under 14 Code of Federal Regulations, Part 137. Agricultural aircraft operations include crop dusting, pollination, and seeding.(3) Agricultural use--This term includes, but is not limited to, the following activities: cultivating the soil, producing crops for human food, animal feed, or planting seed or for the production of fibers; floriculture, viticulture, and horticulture; raising or keeping livestock; raising or keeping exotic animals for the production of human food or of fiber, leather, pelts, or other tangible products having a commercial value; planting cover crops or leaving land idle for the purpose of participating in a governmental program, provided the land is not used for residential purposes or a purpose inconsistent with agricultural use; and planting cover crops or leaving land idle in conjunction with normal crop or livestock rotation procedure. The term also includes the use of land to produce or harvest logs and posts for the use in constructing or repairing fences, pens, barns, or other agricultural improvements on adjacent qualified open-space land having the same owner and devoted to a different agricultural use. The term also includes the use of land for wildlife management. The term also includes the use of land to raise or keep bees for pollination or for the production of human food or other tangible products having a commercial value, provided that the land used is not less than 5 or more than 20 acres.(4) Aircraft--A fixed-wing, heavier-than-air craft that is operated by a pilot from within the craft, is driven by propeller or jet and is supported by the dynamic reaction of the air against its wings; a helicopter; or an airplane flight simulation training device approved by the FAA under Appendices A and B, 14 Code of Federal Regulations, Part 60. The term does not include balloons, gliders, rockets, missiles, or unmanned aerial vehicles.(5) Certificated or licensed carrier--A person authorized by the FAA to operate an aircraft to transport persons or property in compliance with the certification and operations specifications requirements of 14 Code of Federal Regulations, Part 121, 125, 133, or 135. Letters of authorization, certificates of inspection, and airworthiness certificates are not appropriate evidence of authority to operate as a certificated or licensed carrier.(6) Component part--Tangible personal property that is intended to be permanently affixed to, and become a part of, an aircraft; is necessary to the normal operations of the aircraft, or is required by FAA regulations; and is secured or attached to the aircraft. The term includes tangible personal property necessary to the normal operations of the aircraft that can be removed temporarily from the aircraft for servicing, such as engines, seats, radar equipment, and other electronic devices used for navigational or communications purposes, and air cargo containers, food carts, fire extinguishers, survival rafts, and emergency evacuation slides. Items such as pillows, blankets, trays, ice for drinks, kitchenware, and toilet articles are not component parts.(7) Consumable supplies--Tangible personal property that is used by a service provider to repair, remodel, maintain, or restore tangible personal property belonging to another; is not transferred into the care, custody, or control of the purchaser of the service; and, having been used once for its intended purpose, is completely used up or destroyed. Examples of consumable supplies include, but are not limited to, canned air used to remove dust from equipment and solvents used to clean equipment parts.(8) Exotic animals--Livestock and fowl that are not indigenous to Texas and are defined as exotic livestock or exotic fowl by Agriculture Code, §161.001(a) (Definitions). Examples include, but are not limited to, nilgai antelope, blackbuck antelope, axis deer, fallow deer, sika deer, aoudad, ostriches, and emus.(9) Extended warranty or service policy--A contract sold to the purchaser of tangible personal property for an amount in addition to the charge for the tangible personal property, or sold to an owner of tangible personal property, to extend the terms of the manufacture's written warranty or provide a warranty in addition to or in place of the manufacture's written warranty.(10) FAA--Federal Aviation Administration, an agency of the United States Department of Transportation.(11) Incorporated materials--Tangible personal property that is attached or affixed to, and becomes a part of, an aircraft, aircraft engine, or component part in such a manner that the property loses its distinct identity as separate tangible personal property.(12) Livestock--Horses, mules, donkeys, llamas, alpacas, and animal life of a kind that ordinarily constitutes food for human consumption. The term livestock does not include wildlife or pets.(13) Lump-sum contract--A written agreement in which the agreed price is one lump-sum amount and in which the charge for incorporated materials is not separated from the charge for skill and labor. Separated invoices or billings issued to the customer will not change a written lump-sum contract into a separated contract unless the terms of the contract require separated invoices or billings.(14) Maintain--To perform maintenance.(15) Maintenance--Work performed on operational and functioning tangible personal property that is necessary to sustain or support safe, efficient, and continuous operation of the tangible personal property, or is necessary to keep the tangible personal property in good working order by preventing decline, failure, lapse, or deterioration.(16) Manufacturer's written warranty--A manufacturer's guarantee made for no additional charge to the purchaser of an item of tangible personal property that the item is operable and will remain operable for a specified period of time.(17) Operational control--This term has the meaning assigned by FAA regulations and includes the exercise of authority over initiating, conducting, or terminating a flight.(18) Predator control--A form of wildlife and exotic animal management regulated by the Texas Department of Parks and Wildlife under Parks and Wildlife Code, Chapter 43, Subchapter G (Permits to Manage Wildlife and Exotic Animals from Aircraft) used to protect or aid in the administration or protection of land, water, wildlife, livestock, domesticated animals, human life, or crops. Feral hog eradication using an aircraft is one form of predator control.(19) Qualified flight instruction--Training recognized by the FAA that is designed to lead to a pilot certificate or rating issued by the FAA, or is otherwise required by rule or regulation of the FAA, and that is conducted under the direct or general supervision of a flight instructor certified by the FAA. Qualified flight instruction includes FAA-required check flights, maintenance flights, and test flights, but does not include demonstration flights for marketing purposes or training in aerobatic maneuvers.(20) Remodel--To modify or remake tangible personal property belonging to another in a similar but different manner, or to change the style, shape, or form of tangible personal property belonging to another, without causing a loss of its identity or without causing it to operate in a new or different manner. Remodeling does not include processing.(21) Repair--To mend or restore to working order or operating condition tangible personal property that was broken, damaged, worn, defective, or malfunctioning.(22) Restore--To return tangible personal property that is still operational and functional, but that has faded, declined, or deteriorated, to its former or original state.(23) Sale for resale--The sale, lease, or rental of an aircraft to a person who acquires the aircraft for the purpose of leasing, renting, or reselling the aircraft to another person, or for the purpose of transferring operational control of the aircraft to one or more persons pursuant to one or more written lease agreements, in exchange for a fixed, variable, or periodic consideration, whether or not the consideration is in the form of a cash payment, in the United States of America or a possession or territory of the United States of America or in the United Mexican States in the form or condition in which the aircraft is acquired.(24) Separated contract--A written agreement in which the agreed price is divided into a separately stated charge for incorporated materials and a separately stated charge for skill and labor. An agreement is a separated contract if the charge for incorporated materials and the charge for labor are separately stated on an invoice or billing that, according to the terms of the contract, is deemed to be a part of the contract. Adding the separated charge for incorporated materials and the separated charge for labor together to give a lump-sum total does not transform a separated contract into a lump-sum contract. An aircraft completion, repair, remodeling, maintenance, or restoration contract that separates the charge for incorporated materials from the charge for labor is a separated contract even if the charge for labor is zero.(25) Service provider--A person who repairs, remodels, maintains, or restores tangible personal property belonging to another.(26) Wildlife--Animals, other than insects, that normally live in a state of nature and are not ordinarily domesticated.(b) Sales tax.(1) The sale, lease, or rental of an aircraft, aircraft engine, or component part in Texas is the sale, lease, or rental of tangible personal property, and is subject to sales tax, unless otherwise exempt under Tax Code, Chapter 151 (Limited Sales, Excise, and Use Tax) or Chapter 163 (Sales and Use Taxation of Aircraft). The lease or rental of an aircraft complete with pilot or crew for a single charge is a nontaxable transportation service, rather than the lease or rental of an aircraft, even when the charges for the aircraft and the pilot or crew are separately stated. For more information about leases and rentals, refer to §3.294 of this title (relating to Rental and Lease of Tangible Personal Property).(2) Sales tax is due on the total sales, lease, or rental price of the aircraft, aircraft engine, or component part. The total sales, lease, or rental price includes separately stated charges for any service or expense connected with the sale, lease, or rental, including transportation or delivery charges. The total sales, lease, or rental price does not include separately stated cash discounts or the value of any tangible personal property taken as a trade-in by the seller in the regular course of business in lieu of all or part of the price of the aircraft. For more information on determining the taxable sales price of an item of tangible personal property, refer to Tax Code, §151.007 (\"Sales Price\" or \"Receipts\") and §3.294 of this title.(c) Use tax.(1) General rule. Use tax is due on the use, storage, or other consumption in this state of an aircraft purchased, leased, or rented outside of Texas and brought into Texas to be used in Texas. For more information about the application of the use tax to aircraft engines and component parts, refer to §3.346 of this title (relating to Use Tax).(2) Presumption of purchase for use in Texas. An aircraft purchased, leased, or rented outside of Texas and then brought into Texas by a purchaser is presumed to have been purchased from a seller for use in Texas and is subject to Texas use tax. An aircraft that is brought into Texas by a person who did not purchase the aircraft directly from a seller is not presumed to have been purchased for use in Texas.(3) Predominant use outside of Texas.(A) An aircraft purchased, leased, or rented outside of Texas and then brought into Texas is not subject to Texas use tax if the aircraft is predominantly used outside of Texas for a period of one year beginning on the later of:(i) the date the aircraft was acquired, by purchase, lease, rental, or otherwise, by the person bringing the aircraft into Texas; or(ii) the date the aircraft was substantially complete in the condition for its intended use and conducted its first flight for the carriage of persons or property.(B) For purposes of this subsection, an aircraft is predominantly used outside of this state if more than 50% of its total departures are from locations outside of Texas.(C) The owner or operator of the aircraft must maintain records sufficient to show each of the aircraft's departures. The comptroller may examine all records maintained on any aircraft brought into Texas, including logs, to determine the percentage of the aircraft's total departures that were made from locations in Texas.(4) Completing, repairing, remodeling, or restoring aircraft in Texas. An aircraft purchased, leased, or rented outside of Texas and then brought into Texas for the sole purpose of completing, repairing, remodeling, or restoring the aircraft is not subject to Texas use tax.(A) Completion, repair, remodeling, or restoration includes flights solely for troubleshooting, testing, or training, and flights between service locations under an FAA-issued ferry permit.(B) Any use of the aircraft for business or pleasure travel during the time that the aircraft is being completed, repaired, remodeled, or restored means the aircraft was not brought into Texas for the sole purpose of completion, repairs, remodeling, or restoration, and Texas use tax may be due on the aircraft.(C) The owner or operator of the aircraft must maintain records sufficient to show all uses of the aircraft within Texas. The comptroller may examine all records maintained on the aircraft, including logs, to determine the actual use of the aircraft in Texas.(5) Use tax credit. The purchaser or lessee of an aircraft is allowed to claim a credit against Texas use tax due on the use of the aircraft for any legally imposed sales or use tax due and paid on the sale or use of the item by the purchaser or lessee of the item to another state or any political subdivision of another state. For information on taking a credit for tax paid to another state, refer to §3.338 of this title (relating to Multistate Tax Credits and Allowance of Credit for Tax Paid to Suppliers).(d) Related parties.(1) The sale, lease, rental, or other transaction between a person and a member, owner, or affiliate of the person involving an aircraft that would not be subject to tax, or would qualify for an exemption from tax if the transaction were between unrelated persons remains not subject to tax or exempt from tax to the same extent as if the transaction were between unrelated persons.(2) Except as provided in paragraph (3) of this subsection, the use of an aircraft by an affiliate of the purchaser of the aircraft, or an owner or member of either the purchaser or its affiliate, is not subject to tax if the purchaser paid Texas sales or use tax on the purchase of the aircraft, or the purchase of the aircraft was exempt from Texas sales or use tax.(3) The exemption in paragraph (2) of this subsection does not apply if the purchase of the aircraft was exempt as:(A) a sale for resale; or(B) an occasional sale, unless the owner, member, affiliate, or the owner or member of the affiliate, who is leasing or renting the aircraft could have purchased the aircraft as an occasional sale. For information on the occasional sale exemption, see subsection (j) of this section.(e) Tax exemptions specific to aircraft. In addition to the other exemptions from tax provided under Tax Code, Chapter 151, the following tax exemptions apply specifically to the sale, lease, rental, and use in Texas of aircraft, aircraft engines, and component parts. A person selling, leasing, or renting an aircraft, aircraft engine, or component part may accept a properly completed exemption certificate from the purchaser in lieu of collecting Texas sales and use tax at the time of the transaction. A purchaser claiming a sales tax exemption under this subsection may provide the seller with a properly completed exemption certificate at the time of the transaction. A purchaser who does not claim the exemption at the time of the transaction may subsequently provide documentation to the comptroller to prove that the exemption applies, except as provided in paragraph (4) of this subsection. For more information, refer to §3.287 of this title (relating to Exemption Certificates).(1) Certificated or licensed carriers.(A) Sales and use tax is not due on the sale, lease, or rental of an aircraft to a certificated or licensed carrier.(B) Sales and use tax is not due on the sale, lease, or rental of component parts of an aircraft to a certificated or licensed carrier.(C) Sales and use tax is not due on the sale or use of tangible personal property that is necessary for the normal operations of, and is pumped, poured, or otherwise placed in, an aircraft owned or operated by a certificated or licensed carrier.(D) Sales and use tax is due on the sale, lease, or rental of machinery, tools, and equipment that support the overall operation of a certificated or licensed carrier, such as baggage loading or handling equipment, reservation or booking machinery and equipment, garbage and other waste disposal equipment, and office supplies and equipment, unless otherwise exempt under Tax Code, Chapter 151.(E) Sales tax is not due on the sale of tangible personal property transferred to a certificated or licensed carrier in Texas, if the carrier, using its own facilities, ships the items to a point outside of Texas under a bill of lading and the items are purchased for use by the carrier in the conduct of its business as a certificated or licensed carrier solely outside Texas.(2) Flight schools, instructors, and students.(A) Sales or use tax is not due on the sale, lease, or rental of an aircraft to a person who:(i) holds a current flight school or flight instructor certificate issued by the FAA;(ii) holds a current sales and use tax permit issued under Tax Code, Chapter 151; and(iii) uses the aircraft to provide qualified flight instruction.(B) Any use of the aircraft other than that described in this paragraph is subject to tax as a divergent use under subsection (f) of this section, unless otherwise exempt under Tax Code, Chapter 151.(C) Sales or use tax is not due on the sale or use of component parts of an aircraft owned or operated by a flight school or flight instructor to provide qualified flight instruction.(D) Sales or use tax is not due on the sale or use of tangible personal property that is necessary for the normal operations of, and is pumped, poured, or otherwise placed in, an aircraft owned or operated by a flight school or flight instructor to provide qualified flight instruction.(E) A student enrolled in a program providing qualified flight instruction may claim an exemption from sales tax on the short-term hourly rental of an aircraft for qualified flight instruction, including solo flights and other flights. When completing an exemption certificate claiming this sales tax exemption, the student must identify the flight school by name and address or, if the student is not enrolled in a flight school program, the student must identify the student's flight instructor and the instructor's address. The student must also retain copies of written tests and instructor's endorsements. Without evidence that the student is in pursuit of a FAA-certified pilot certificate or flight rating, aircraft rentals are subject to sales tax.(3) Foreign governments. Sales tax is not due on the sale, lease, or rental of an aircraft to a foreign government. Sales tax is due on the sale or lease of component parts or materials incorporated in Texas into an aircraft owned by a foreign government, unless otherwise exempt under Tax Code, Chapter 151. Refer to subsection (g) of this section for information concerning the repair, remodeling, maintenance, and restoration of aircraft, aircraft engines, and component parts.(4) Fly-away exemption.(A) Sales tax is not due on the sale or lease of an aircraft in Texas to a person for use and registration in another state or nation before any use in Texas other than:(i) completing, repairing, remodeling, maintaining, or restoring the aircraft in Texas, including necessary flights for troubleshooting, testing, or flights between service locations under an FAA-issued ferry permit; or(ii) flight training in the aircraft.(B) Any use of the aircraft in Texas other than that described in subparagraph (A) of this paragraph before the aircraft is flown out of this state for use and registration in another state or nation will result in the loss of the exemption.(C) The subsequent use of an aircraft in Texas after the aircraft has left Texas will not subject the aircraft to tax on the purchase price if the aircraft is predominantly used outside of Texas for a period of one year beginning on the later of:(i) the date the aircraft was purchased or leased by the person bringing the aircraft into Texas; or(ii) the date the aircraft was substantially complete in the condition for its intended use and conducted its first flight for the carriage of persons or property.(D) For purposes of this subsection, an aircraft is predominantly used outside of Texas if more than 50% of its total departures are from locations outside of Texas.(E) The owner or operator of the aircraft must maintain records sufficient to show each of the aircraft's departures. The comptroller may examine all records maintained on any aircraft brought into Texas, including logs, to determine the percentage of the aircraft's total departures that were made from locations in Texas.(F) The fly-away exemption does not apply to the short-term hourly rental of an aircraft in Texas, even if the person renting the aircraft intends to use the aircraft in another state.(G) Exemption certificate required.(i) A purchaser claiming the fly-away exemption under this paragraph must provide the seller with a properly completed Texas Aircraft Exemption Certificate Out-of-State Registration and Use, Form 01-907, its electronic equivalent, or any form promulgated by the comptroller that succeeds such form. The seller may only accept the certificate if the seller lacks actual knowledge that the claimed exemption is invalid. Within 30 days of the sale of the aircraft, a copy of the completed certificate signed by both the seller and the purchaser must be provided to the Comptroller of Public Accounts, Business Activity Research Team, P.O. Box 13003, Austin, Texas, 78711-3003.(ii) By signing the certificate, the purchaser authorizes the comptroller to provide a copy of the certificate to the state or nation in which the aircraft is intended to be used and registered.(iii) Issuing an invalid certificate is a misdemeanor punishable by a fine not to exceed $500 in addition to the assessment of tax and, when applicable, penalty and interest on the purchase price of the aircraft.(5) Agricultural use.(A) Sales or use tax is not due on the sale, lease, or rental of an aircraft for use exclusively in connection with an agricultural use, as defined in this section, when used for:(i) predator control;(ii) wildlife or livestock capture;(iii) wildlife or livestock surveys;(iv) census counts of wildlife or livestock;(v) animal or plant health inspection services; or(vi) agricultural aircraft operations, such as crop dusting, pollination, or seeding.(B) Component parts and necessary supplies for aircraft used exclusively in agricultural aircraft operations.(i) Sales or use tax is not due on the sale or use of component parts of an aircraft used exclusively in agricultural aircraft operations.(ii) Sales or use tax is not due on the sale or use of tangible personal property that is necessary for the normal operations of, and is pumped, poured, or otherwise placed in, an aircraft used exclusively in agricultural aircraft operations.(iii) Exemption certificate required. A person claiming the exemption under this subparagraph must have a valid Texas Agricultural and Timber Exemption Registration Number issued by the comptroller, and must issue a properly completed Texas Agricultural Sales and Use Tax Exemption Certification, Form 01-924, its electronic equivalent, or any form promulgated by the comptroller that succeeds such form.(iv) This exemption does not include the sale or use of firearms, ammunition, or other equipment or tangible personal property used to perform predator control, wildlife census counts, or any other activity not included in the definition of agricultural aircraft operation.(C) Use of an aircraft is considered to be \"for use exclusively in connection with an agricultural use\" if 95% of the use of the aircraft is for a purpose described by subparagraph (A) of this paragraph. Travel to a location to perform a service described by subparagraph (A) of this paragraph will not disqualify the sale, lease, or rental of an aircraft from the exemption, and will not be regarded as divergent use.(D) Selling the use of a gunner's seat on an aircraft that is exempt under this paragraph to a person participating in aerial wildlife management, as authorized by Parks and Wildlife Code, §43.1075 (Using Helicopters to Take Certain Animals), will not result in a loss of the exemption. The sale of the gunner seat is subject to sales tax as a taxable amusement service under Tax Code, §151.0028 (Amusement Services) and §3.298 of this title (relating to Amusement Services).(E) A person who claims an exemption under this paragraph must maintain and make available to the comptroller upon request flight records for all uses of the aircraft, as well as any other records requested by the comptroller, such as Aerial Wildlife Management Permits issued under Parks and Wildlife Code, Chapter 43, Subchapter G. Failure to maintain adequate records may result in loss of the exemption.(6) Fractional ownership operations. Sales and use tax is not due on the sale, lease, or rental of an aircraft operated as part of a fractional ownership program under 14 Code of Federal Regulations Part 91, Subpart K-Fractional Ownership Operations. Sales tax is due on the sale or lease of component parts or materials incorporated into an aircraft that is part of an aircraft fractional ownership operation, unless otherwise exempt under Tax Code, Chapter 151.(f) Divergent use.(1) Exempt aircraft, aircraft engines, and component parts. Sales and use tax is due when an aircraft, aircraft engine, or component part sold, leased, or rented tax-free under a properly completed exemption certificate is subsequently put to a taxable use other than the use allowed under the certificate. For more information, refer to §3.287 of this title.(2) Sales for resale. Sales and use tax is due when an aircraft engine or component part sold, leased, or rented tax-free under a properly completed resale certificate is subsequently put to a taxable use other than the use allowed under the certificate. For more information, refer to §3.285 of this title (relating to Resale Certificate; Sales for Resale). Sales and use tax is not due on the divergent use of an aircraft that is purchased for resale.(3) Agricultural use and agricultural aircraft operations. No divergent use may be made of an aircraft exempted under subsection (e)(5) of this section, relating to agricultural use, without a total loss of the exemption. Certain limited uses identified in subsection (e)(5)(C) of this section do not constitute divergent use of an agricultural aircraft. No divergent use of component parts or necessary tangible personal property exempted under subsection (e)(5)(B) of this section, relating to agricultural aircraft operations, can be made without a total loss of that exemption.(g) Repair, remodeling, maintenance, restoration, and completion.(1) Labor to complete, repair, remodel, maintain, or restore aircraft in Texas is not subject to sales tax. The sale or use of materials incorporated into an aircraft, aircraft engine, or component part being completed, repaired, remodeled, maintained, or restored in Texas is subject to sales and use tax as provided in paragraph (2) of this subsection, unless otherwise exempt.(2) Tax responsibilities of service providers.(A) Incorporated materials. Whether the service provider owes tax on the purchase of materials that will become incorporated materials as part of the completion, repair, remodeling, maintenance, or restoration of an aircraft, aircraft engine, or component part depends upon whether the service provider is operating under a lump-sum or separated contract.(i) Separated contracts. If the services are performed under a separated contract, the service provider is regarded as the seller of the incorporated materials. If the service provider has a sales and use tax permit, the service provider may issue a properly completed resale certificate to the supplier in lieu of paying sales tax on the purchase of the incorporated materials. The service provider must then collect sales tax from the customer on either the agreed contract price for the incorporated materials, or the amount the service provider paid for the incorporated materials, whichever amount is greater. The service provider may also use incorporated materials removed from an inventory of items upon which sales or use tax was paid at the time of purchase. In such a case, sales tax is to be collected from the customer on the agreed contract price of the incorporated materials as though the incorporated materials had been purchased tax-free with a resale certificate.(ii) Lump-sum contracts. If the services are performed under a lump-sum contract, the service provider is the ultimate consumer of all incorporated materials. The service provider may not collect sales tax from the customer. The service provider must pay sales or use tax to the suppliers of the incorporated materials at the time of purchase, unless the service provider works under both lump-sum and separated contracts and uses incorporated materials removed from a valid tax-free inventory that were originally purchased tax-free by use of a resale certificate. In such a case, the service provider incurs a tax liability based upon the purchase price of the incorporated materials and must report and remit the tax to the comptroller. The service provider owes sales or use tax on the purchase of incorporated materials even when the services are performed for a customer that is exempt from tax under Tax Code, Chapter 151.(B) Tools, equipment, and consumable supplies. Sales and use tax is due on the purchase, lease, or rental of tools, equipment, and consumable supplies used by the service provider but not incorporated into the aircraft, aircraft engine, or component part at the time of the service, regardless of the type of contract used to perform the service, and the service provider may not collect sales or use tax from the customer on any charges for such items.(3) Exemption for certificated or licensed carriers, flight schools or instructors, and persons operating aircraft for an agricultural use.(A) The total charge for services to complete, repair, remodel, maintain, or restore aircraft, aircraft engines, or component parts by or for a certificated or licensed carrier, a flight school or instructor providing qualified flight instruction, or a person operating aircraft for an agricultural use is exempt from sales and use tax, whether the charge is lump-sum or separately stated.(B) Sales and use tax is not due on the sale, lease, or rental of machinery, tools, supplies, and equipment used directly and exclusively in the repair, remodeling, maintenance, or restoration of aircraft, aircraft engines, or component parts by or for a certificated or licensed carrier, a flight school or a flight instructor providing qualified flight instruction, or person conducting an agricultural aircraft operation, provided the purchaser issues the seller a properly completed exemption certificate. This includes equipment, such as battery chargers and diagnostic equipment, used to sustain or support safe and continuous operations and to keep the aircraft in good working order by preventing its decline, failure, lapse, or deterioration.(4) Aircraft used outside Texas. The following guidelines apply to aircraft brought into Texas by out-of-state owners or operators for completion, repair, remodeling, or restoration.(A) Separated contracts. Sales or use tax is not due on the separately stated charge for labor to complete, repair, remodel, maintain, or restore an aircraft, aircraft engine, or component part performed under a separated contract. The cost of incorporated materials is:(i) subject to sales tax when the owner or operator takes delivery of the aircraft in Texas; or(ii) not subject to sales tax when the aircraft is delivered to an out-of-state location by the service provider.(B) Lump-sum contracts. Sales tax is not due by the owner or operator of an aircraft completed, repaired, remodeled, maintained, or restored under a lump-sum contract. The service provider owes sales or use tax on the incorporated materials, whether the service provider delivers the aircraft out of state or the owner or operator takes delivery of the aircraft in Texas.(5) The repair, remodeling, maintenance, or restoration of component parts removed from and returned to an aircraft pursuant to the repair, remodeling, maintenance, or restoration of that aircraft is to be treated in accordance with the provisions of this subsection. The repair, remodeling, maintenance, or restoration of a component part removed from an aircraft that is not returned to the aircraft is subject to the provisions of §3.292 of this title (relating to Repair, Remodeling, Maintenance, and Restoration of Tangible Personal Property).(h) Jet turbine aircraft engines.(1) Sales or use tax is not due on the sale, lease, or rental of the following items used in electrochemical plating or a similar process by persons overhauling, retrofitting, or repairing jet turbine aircraft engines and their component parts:(A) machinery, equipment, or replacement parts or accessories with a useful life in excess of six months; and(B) supplies, including aluminum oxide, nitric acid, and sodium cyanide.(2) A person claiming an exemption under paragraph (1) of this subsection must maintain documentation sufficient to show that no exclusion under Tax Code, §151.318 (Property Used in Manufacturing) applies. Also refer to §3.300 of this title (relating to Manufacturing; Custom Manufacturing; Fabricating; Processing).(3) Sales tax is not due on the sale of electricity or natural gas used in the off-wing processing, overhaul, or repair of a jet turbine engine or its parts for a certificated or licensed carrier. For more information, refer to §3.295 of this title (relating to Natural Gas and Electricity).(i) Warranties.(1) Manufacturer's written warranty or recall campaign.(A) Sales or use tax is not due on the use of incorporated materials or services furnished by the manufacturer to repair an aircraft, aircraft engine, or component part under a manufacturer's written warranty or recall campaign.(B) Records must be kept by a service provider showing that the incorporated materials or services were used in repairing an item under a manufacturer's written warranty or recall campaign.(C) A service provider purchasing incorporated materials used in a repair under a manufacturer's written warranty or recall campaign may issue a properly completed exemption certificate to the seller in lieu of paying tax on the purchase.(2) Extended warranties and service policies.(A) Sales tax is not due on the sale of an extended warranty or service policy that covers an aircraft, aircraft engine, or component part.(B) A service provider performing services under an extended warranty or service policy must collect sales or use tax on the sale or use of incorporated materials as required under subsection (g)(2)(A) of this section, unless the aircraft, aircraft engine, or component part is owned by a certificated or licensed carrier, a flight school or instructor providing qualified flight instruction, or an agricultural aircraft operation.(j) Occasional sales. The purchase of an aircraft, aircraft engine, or component part is exempt from sales and use tax if the purchase meets the definition of an occasional sale provided by §3.316 of this title (relating to Occasional Sales; Transfers Without Change in Ownership; Sales by Senior Citizens' Organizations; Sales by University and College Student Organizations; and Sales by Nonprofit Animal Shelters).(k) Sales for resale.(1) A person selling, leasing, or renting an aircraft, aircraft engine, or component part may accept a properly completed and signed resale certificate from the purchaser at the time of sale in lieu of collecting tax on the sale if the person does not know, and does not have reason to know, that the sale is not a sale for resale. For more information on the good faith acceptance of a resale certificate, refer to §3.285 of this title.(2) A person purchasing, leasing, or renting an aircraft in a transaction that meets the definition of a sale for resale may provide the seller or lessor with a properly completed resale certificate if the person:(A) holds a valid sales and use tax permit at the time of the transaction; and(B) does not intend to exclusively lease the aircraft together with a crew or pilot.(3) A person purchasing, leasing, or renting an aircraft in a transaction that meets the definition of a sale for resale who does not provide the seller or lessor with a properly completed resale certificate at the time of the transaction may subsequently provide documentation to the comptroller to prove that the resale exemption applies.(4) The purchase of an aircraft for lease or rental to another does not qualify as a sale for resale unless more than 50% of the aircraft's departures during the one year period beginning on the date of purchase are made under the operational control of a person other than the purchaser, pursuant to one or more written lease agreements, in exchange for consideration. For purposes of this subsection, consideration is not required to be in the form of a cash payment, and may be fixed, variable, or periodic.(l) Local tax. Local sales and use taxes, including taxes imposed by a city, county, transit authority, or special purpose district, apply to aircraft in the same manner as any other tangible personal property.(1) Sales consummated in Texas. Generally, local sales taxes are allocated to the local taxing jurisdictions in which the seller's place of business is located, and the seller must collect the local sales tax, without regard to whether the aircraft is actually delivered to, or intended for use in, a Texas location in a different local taxing jurisdiction. If the seller does not collect the applicable local tax, the purchaser must accrue and remit local tax to the comptroller.(2) Sales consummated outside of Texas. When an aircraft is purchased or leased outside of Texas and brought into Texas, local use tax is due based on the local taxing jurisdictions in which the aircraft is first stored or used. If the seller does not collect the applicable local tax, the purchaser must accrue and remit to the comptroller any local use tax due.(3) For more information regarding the local tax collection and reporting responsibilities of sellers and purchasers, refer to §3.334 of this title (relating to Local Sales and Use Tax).",
            "sourceNote": "Source Note: The provisions of this §3.280 adopted to be effective June 19, 2017, 42 TexReg 3148; amended to be effective January 7, 2020, 45 TexReg 382."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=165144&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "165144",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.281",
                "label": "Records Required; Information Required"
            },
            "nextRule": {
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                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Persons who must keep records.(1) Sellers of taxable items and purchasers who store, use, or consume taxable items in this state shall keep books, papers, and records in the form that the comptroller requires.(2) Examples of persons who are required to keep records include the following:(A) a person who sells, leases, or rents tangible personal property;(B) a person who performs taxable labor, such as fabricating, processing, and producing tangible personal property;(C) a person who performs taxable services that are listed in Tax Code, §151.0101; or(D) a person who purchases taxable items.(b) Records required.(1) Records must reflect the total gross receipts from all sales, rentals, leases, taxable services, and taxable labor. Examples include, but are not limited to, receipts, shipping manifests, invoices, and other pertinent papers from each rental, lease, taxable service, and each taxable labor transaction that occurs during each reporting period.(2) Records must reflect total purchases of taxable items. Examples include, but are not limited to, receipts, shipping manifests, invoices, and other pertinent papers of all purchases of taxable items from every source that are made during each reporting period.(3) Additional records must be kept to substantiate any claimed deductions or exclusions authorized by law. Examples include, but are not limited to, receipts, shipping manifests, invoices, exemption certificates, resale certificates, and other pertinent papers that substantiate each claimed deduction or exclusion.(4) Records must reflect all sales and use tax, and any money represented to be sales and use tax, received or collected on each sale, rental, lease, or service transaction. Examples include, but are not limited to, sales receipts, invoices, or other equivalent records, including electronically stored images of such documents, showing all sales and use tax received or collected during each reporting period.(5) Records may be written, kept on microfilm, stored on data processing equipment, or may be in any form that the comptroller may readily examine.(c) Failure to keep or to provide accurate records. If a person who is required to keep records under subsection (a) of this section fails to keep accurate contemporaneous records of gross receipts, gross purchases, deductions, exclusions, and taxes received or collected, or if a person fails to produce such records when requested by the comptroller during an audit or investigation, the comptroller may take actions that include, but are not limited to, the following:(1) estimate the person's tax liability based on any available information that includes, but is not limited to, records of suppliers;(2) use a sample and projection auditing method to calculate the person's tax liability. For further information, see §3.282 of this title (relating to Auditing Taxpayer Records);(3) suspend the person's permit;(4) file criminal charges as provided in §3.305 of this title (relating to Criminal Offenses and Penalties); and(5) take other action as authorized by law to enforce compliance with the Tax Code.(d) Information required.(1) The comptroller may require any person subject to the Limited Sales and Use Tax Act to furnish information necessary to:(A) identify any person applying for a permit or any person required to file a return;(B) determine the amount of bond required to commence or continue business;(C) determine possible successor liability; and(D) determine the amount of tax the person is required to remit.(2) The information required may include, but is not limited to, the following:(A) name of the actual owner of the business;(B) name of each partner in a partnership;(C) names of officers and directors of corporations and other organizations;(D) all trade names under which the owner operates;(E) mailing address and actual locations of all business outlets;(F) license numbers, title numbers, and other identification of business vehicles;(G) identification numbers assigned by other governmental agencies, including social security numbers, federal employers identification numbers, and drivers license numbers;(H) names of suppliers, banks, and other persons with whom the taxpayer transacts business;(I) names and last known addresses of former owners of the business.(e) Retention. A person who is required to keep records under subsection (a) of this section must keep those records for a minimum of four years from the date on which the record is made, and throughout any period in which any tax, penalty, or interest may be assessed, collected, or refunded by the comptroller or in which an administrative hearing or judicial proceeding is pending, unless the comptroller authorizes in writing a shorter retention period. A person must keep exemption and resale certificates for a minimum of four years following the completion of the last sale that is covered by the certificate.(f) The comptroller, the attorney general, or the authorized representative of either of them may examine, copy, and photograph any records of any person who is required to keep records under subsection (a) of this section, to verify the accuracy of any return or to determine any tax liability. However, during an audit, an auditor for the comptroller should obtain permission from a taxpayer to copy or photograph records that are proprietary in nature, unless the comptroller reasonably believes that the taxpayer may have committed fraud or taken action to evade taxes. If the taxpayer does not grant the auditor permission to copy or photograph records, and the comptroller believes that the records are necessary to determine the tax liability of the taxpayer, then the comptroller may obtain records through other means under authority granted by Tax Code, §111.0043.",
            "sourceNote": "Source Note: The provisions of this §3.281 adopted to be effective January 1, 1976; amended to be effective October 30, 1984, 9 TexReg 5387; amended to be effective June 6, 2002, 27 TexReg 4727; amended to be effective December 31, 2013, 38 TexReg 9601."
        },
        {
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            "currentRecordId": "208684",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.282",
                "label": "Auditing Taxpayer Records"
            },
            "nextRule": {
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                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Managed audit--A taxpayer self-review and analysis of invoices, checks, accounting records, or other documents or information to determine a taxpayer's liability for tax under Tax Code, Chapter 151, as allowed under a written agreement with the comptroller authorizing a managed audit as described in subsection (f) of this section.(2) Percentage-based reporting method--A method by which a direct payment permit holder may be authorized to categorize purchase transactions according to standards specified in a letter of authorization issued under the provisions set out in subsection (g) of this section, reviews an agreed-on sample of invoices in those categories to determine the percentage of taxable transactions, and uses that percentage to calculate the amount of tax to be reported.(b) The comptroller or an authorized representative of the comptroller may audit a taxpayer's accounts and records at any time during regular business hours at the discretion of the comptroller or the comptroller's authorized agent or representative.(c) The comptroller may use a detailed auditing procedure or a sample and projection auditing method to determine tax liability. Sampling procedure may include manual sampling techniques and computer-assisted audit techniques, whichever produce the most accurate results in the most efficient manner.(d) A sample and projection auditing method is appropriate if:(1) the taxpayer's records are so detailed, complex, or voluminous that an audit of all detailed records would be unreasonable or impractical;(2) the taxpayer's records are inadequate or insufficient, so that a competent audit for the period in question is not otherwise possible; or(3) the cost of an audit of all detailed records to the taxpayer or to the state will be unreasonable in relation to the benefits derived, and sampling procedures will produce a reasonable result.(e) Before using a sample technique to establish a tax liability, the comptroller must notify the taxpayer in writing of the sampling procedure to be used.(f) The comptroller may authorize taxpayers that meet certain requirements to perform managed audits.(1) A taxpayer who wishes to participate in a managed audit must request authorization from the comptroller's office to conduct a managed audit under this section. Authorization will only be granted as part of a written agreement between the taxpayer and the comptroller's office. The agreement must:(A) be signed by an authorized representative of the comptroller and the taxpayer; and(B) specify the period to be audited and the procedure to be followed.(2) In determining whether to authorize a managed audit, the comptroller may consider, in addition to other factors the comptroller considers relevant:(A) the taxpayer's history of tax compliance, including:(i) timely filing of all reports;(ii) timely payment of all taxes and fees due the state;(iii) prior audit history;(iv) delinquency in other taxes;(v) correction of problems identified;(vi) collection of tax that was not remitted; and(vii) whether a penalty waiver had been denied on prior occasions and the reason for denial;(B) the amount of time and resources the taxpayer has available to dedicate to the audit;(C) the extent, availability, and completeness of the taxpayer's records for the period to be covered by the managed audit;(D) the taxpayer's ability to pay any expected liability; and(E) the size and sophistication of the taxpayer.(3) The decision to authorize or not authorize a managed audit rests solely with the comptroller.(4) A managed audit may be limited to certain categories of liability under Tax Code, Chapter 151, including tax on:(A) sales of one or more types of taxable items;(B) purchases of assets;(C) purchases of expense items;(D) purchases under a direct payment permit; or(E) any other category specified in an agreement authorized by this section.(5) Before the audit is finalized, the comptroller may examine records that the comptroller determines are necessary to verify the results.(6) Unless the audit or information reviewed by the comptroller under this subsection discloses fraud or willful evasion of the tax, the comptroller may not assess a penalty and may waive all or part of the interest that would otherwise accrue on any amount identified to be due in a managed audit. This subsection does not apply to any amount collected by the taxpayer that was a tax or represented to be a tax but was not remitted to this state.(7) Except as provided by applicable law, the taxpayer is entitled to a refund of any tax overpayment disclosed by a managed audit. See §3.325 of this title (relating to Refunds and Payments Under Protest).(g) The comptroller may authorize direct payment permit holders that meet certain requirements to report tax on purchases using a percentage-based reporting method.(1) A holder of a direct payment permit may request authorization from the comptroller to use a percentage-based reporting method. The authorized percentage must be used for a three-year period specified by the comptroller, unless the authorization is revoked by the comptroller.(2) The authorization to report under this subsection may be revoked if the comptroller determines that the percentage being used is no longer representative because of a change in the taxpayer's business operations or in law, including a change in the interpretation of a law or rule. For example, two decisions from the Court of Appeals changed the list of items that may be purchased tax free by manufacturers. Subsequently the legislature passed two bills that significantly changed the tax responsibilities of manufacturers. Each of these changes affected a manufacturer's percentage used to report taxable purchases.(3) The decision of the comptroller to deny or revoke authorization under this section is not subject to appeal.(4) When authorizing reporting under this section, the comptroller may categorize transactions by dollar amount, by type of taxable item purchased, by the purpose for which the taxable item will be used, or by other standards appropriate to the taxpayer's operations.(h) A taxpayer who holds a permit issued under Tax Code, Chapter 151, who has paid Texas tax in error on purchases of taxable items, whether sales tax was remitted directly to this state or to a retailer holding a permit under Tax Code, Chapter 151, may compute the amount of overpayment by use of a projection based on a sampling of transactions.(1) The sampling method must be one that has been approved by the comptroller.(2) The taxpayer must record the method by which the projection and computation were performed and must make available, on request by the comptroller, information explaining the method employed and the records on which the projection and computation were based.(i) A taxpayer who holds a permit issued under Tax Code, Chapter 151, may obtain reimbursement for amounts determined to have been overpaid by taking a credit on one or more sales tax returns or by filing a claim for refund with the comptroller within the limitation period specified by Tax Code, Chapter 111. See §3.325 of this title. A taxpayer is required to keep contemporaneous records to substantiate and enable verification of the taxpayer's credit or refund claim for a minimum of four years from the date on which the record is made, and throughout any period in which any tax, penalty, or interest may be assessed, collected, or refunded by the comptroller, or in which an administrative hearing or judicial proceeding is pending, unless the comptroller authorizes in writing a shorter retention period.(1) A taxpayer may take a credit by amending the sales tax return for the period in which the tax was originally paid.(2) If a taxpayer chooses to take the credit by claiming a refund, the claim must identify the period in which the tax was originally paid.(3) A taxpayer who claims a credit or submits a refund request for local taxes must identify the period in which the local tax was paid and the local taxing jurisdiction to which the local tax was reported.(4) Interest will be paid on tax amounts found to be erroneously paid for reports due on or after January 1, 2000, whether claimed on a request for refund or claimed in an audit. See also §3.325 of this title and Tax Code, §111.064.(j) If records are inadequate to accurately reflect the business operations of the taxpayer, the auditor will determine the best information available and base the audit report on that information. See §3.281 of this title (relating to Records Required; Information Required) for information on proper records.(k) Resale and exemption certificates.(1) Resale and exemption certificates should be available at the time of the audit. All certificates obtained on or after the date the comptroller's auditor actually begins work on the audit at the seller's place of business or on the seller's records after the entrance conference are subject to verification. All incomplete certificates will be disallowed regardless of when they were obtained.(2) The seller has 90 days, or until a later date agreed to in writing by the comptroller and the seller, referred to in this section as \"the period,\" from the date written notice is received by the seller from the comptroller in which to deliver the certificates to the comptroller. Written notice shall be given by the comptroller no earlier than the filing of a petition for redetermination or claim for refund.(3) For the purposes of this section, written notice given by mail is presumed to have been received by the seller within three business days from the date of deposit in the custody of the United States Postal Service. The seller may overcome the presumption by submitting proof from the United States Postal Service or by other competent evidence showing a later delivery date.(4) If the seller is not in possession of the certificates by the end of the period, any deductions claimed which require resale or exemption certificates will be disallowed. Exemptions claimed by those certificates acquired during the period will be subject to independent verification by the comptroller before the deductions will be allowed.(5) Certificates delivered after the period will not be accepted. See §3.285 of this title (relating to Resale Certificate; Sales for Resale); §3.286 of this title (relating to Seller's and Purchaser's Responsibilities); §3.287 of this title (relating to Exemption Certificates); and §3.288 of this title (relating to Direct Payment Procedures and Qualifications).(6) When written notice has been received, a resale or exemption certificate is the only acceptable proof that a taxable item was purchased for resale or qualifies for exemption.(l) Both sellers and purchasers are subject to audit and assessment of tax on any transactions on which tax was due but has not been paid.(m) The comptroller may proceed against either the seller or purchaser, or against both, until the tax, penalty, and interest have been paid.",
            "sourceNote": "Source Note: The provisions of this §3.282 adopted to be effective January 1, 1976; amended to be effective December 21, 1983, 8 TexReg 5037; amended to be effective December 31, 1984, 9 TexReg 6333; amended to be effective August 5, 1985, 10 TexReg 2321; amended to be effective September 16, 1991, 16 TexReg 4844; amended to be effective September 19, 2000, 25 TexReg 9219; amended to be effective June 6, 2002, 27 TexReg 4727; amended to be effective August 15, 2013, 38 TexReg 5109; amended to be effective April 26, 2022, 47 TexReg 2292."
        },
        {
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            "currentRecordId": "19771",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.283",
                "label": "Bartering Clubs and Exchanges"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=117602&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "117602",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Barter--To exchange taxable items without using money.(2) Barter exchange--Any organization, association, or group of persons maintaining facilities for the purpose of bringing purchasers and sellers together for the purpose of bartering.(3) Trade units--The medium of exchange which is debited and credited to members' accounts when bartering.(b) The barter of a taxable item is the  sale of a taxable item even though trade units are accepted by the seller instead of money.(c) The seller must collect and remit sales tax on the sales price of a taxable item.(d) Barter exchanges which maintain show or sales rooms for the purpose of bartering taxable items are sellers. See §3.286 of this title (relating to Seller's Responsibilities).(e) Dues and service fees charged by the barter exchanges to members for becoming a member of the exchange and for maintaining records on barter transactions are not taxable.",
            "sourceNote": "Source Note: The provisions of this §3.283 adopted to be effective March 11, 1983, 8 TexReg 673."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=117602&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "117602",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.284",
                "label": "Drugs, Medicines, Medical Equipment, and Devices (Tax Code §151.313)"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208687&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208687",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Appliance or device--An instrument, apparatus, implement, machine, contrivance, implant, chemical, or other similar or related product that does not achieve its primary intended purposes through chemical action within or on the body, and that is not dependent upon being metabolized for the achievement of its primary intended purposes.(2) Brace--Any appliance or device that is used on or attached to the human body, and that gives rigidity or support for the purpose of correcting a physical ailment or defect.(3) Corrective lenses--Any appliance or device that is worn to correct or aid defective eyesight, such as eyeglasses, contact lenses, or other visual aids that an ophthalmologist or optometrist dispenses or prescribes.(4) Dental device--An artificial replacement of one or more teeth or a dental appliance worn on the teeth to correct irregularities of growth or position. For the purposes of this section, the term dental device does not include toothbrushes, toothpaste, dental floss, mouth mirrors, or other devices used to prevent cavities or plaque build-up or removal.(5) Dietary supplement--A product that:(A) contains one or more vitamins, minerals, herbs, amino acids, or substances to increase caloric intake;(B) is not represented as a food or the sole item of a meal or the diet; and(C) is labeled or is required to be labeled \"dietary supplement\" or \"supplement.\"(6) Drug or medicine--A product that:(A) is intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease, illness, injury, or pain;(B) is applied to the human body, or that humans ingest or inhale;(C) is not an appliance or device; and(D) is not food; or(E) is labeled with a drug facts panel in accordance with federal Food and Drug Administration regulations.(7) Food--Material, usually of plant or animal origin, that contains or consists of essential nutrients and is intended for human ingestion:(A) for taste or aroma; or(B) to satisfy the appetite, hunger, or thirst.(8) Hearing aid--Any appliance or device worn to correct or aid defective hearing. The term also includes an audio loop used by a person who is deaf.(9) Hypodermic needle--A hollow needle adapted for use with hypodermic syringes.(10) Hypodermic syringe--A small syringe with a hollow needle adapted for use in removing or injecting material beneath the skin.(11) Ileostomy, colostomy, and ileal bladder appliance--An appliance or device that is surgically implanted or formed to assist the human body in the elimination of natural waste.(12) Orthopedic appliance--Any appliance or device designed specifically for use in the correction or prevention of human deformities, defects, or chronic diseases of the skeleton, joints, or spine.(13) Prosthetic device--An item that is artificial and replaces a missing part of the body, performs the function of a vital organ or appendage of the human body, or is permanently implanted in the body. Examples of prosthetic devices are heart-lung pumps, nasal gastric and gastrointestinal devices, ureteral stents, urethral stents, and artificial kidney machines, and related components and supplies.(14) Therapeutic appliance or device--An appliance or device that is designed to alleviate pain or for use during the treatment or cure of human sickness, disease, suffering, or deformity.(15) Wound care dressing--An item that absorbs wound drainage, protects healing tissue, maintains a moist or dry wound environment (as appropriate), or prevents bacterial contamination.(b) Drugs and medicines.(1) Insulin that is sold with or without a prescription is exempt.(2) Sales or use tax is not due on the sale of drugs or medicines that are prescribed or dispensed for humans or animals on the oral or written prescription of licensed practitioners of the healing arts. Sales tax is due on the sale of all other nonprescription drugs and medicines, purchased for use in the treatment of animals, and the retailer must collect tax from the purchaser on such sales.(3) Sales or use tax is not due on the sale of non-prescription drugs or medicines. A product is presumed to be a drug or medicine for sales tax purposes if it is labeled or required to be labeled with a \"Drug Facts\" panel pursuant to the regulations of the federal Food and Drug Administration.(4) Sales or use tax is not due on the sale of wound care dressings.(c) Dietary supplements. Sales or use tax is not due on the sale of dietary supplements.(d) Medical equipment.(1) Sales or use tax is not due on the sale, lease, or rental of medical equipment meeting the definition of a brace, corrective lens, hearing aid, orthopedic appliance, prosthetic device, or dental device. Sales tax is not due on replacement parts designed specifically for such devices and appliances. With the exception of corrective lenses, a prescription is not required.(2) Sales or use tax is not due on the sale of ileostomy, colostomy, or ileal bladder appliances, related supplies or replacement parts that are designed specifically for such appliances.(3) Sales or use tax is not due on the sale of hypodermic syringes and hypodermic needles used for medical purposes.(4) Sales or use tax is not due on the sale of blood glucose monitoring strips.(5) Sales or use tax is not due on the sale, lease, or rental of hospital beds or their replacement parts. A hospital bed is the type of bed used in a hospital for rest, recuperation, and treatment. A hospital bed does not include an operating table, delivery table, examination table, stretcher, or gurney. A prescription is not required.(6) Sales or use tax is not due on the sale, lease, or rental of the following items when used by the deaf. An exemption certificate is not required for the purchase, rental, or lease of these items:(A) hearing aids;(B) specialized printing or signaling equipment that the deaf use for the purpose of enabling communication by ordinary telephone, including all materials, paper, and printing ribbons that are used in that equipment;(C) an appliance or device, such as a light signal, that is used to adapt items such as telecommunication devices for the deaf (TDD), telephones, doorbells, and smoke alarms; and(D) adaptive devices or adaptive software for computers that deaf persons use.(7) Sales or use tax is not due on the sale, lease, or rental of the following items when used by the legally blind. An exemption certificate is not required for the purchase, rental, or lease of these items:(A) a braille wristwatch, braillewriter, braille paper; and(B) braille electronic equipment that connects to computer equipment, along with the necessary adaptive devices and computer software.(8) Sales or use tax is not due on the sale, lease, or rental of the following items when used by the legally blind, if an exemption certificate is provided to the seller:(A) a slate and stylus;(B) print enlarger;(C) light probe;(D) magnifier;(E) white cane;(F) talking clock;(G) hardware and software that are necessary to adapt a computer for a legally blind person to use; and(H) harness for guide dog.(9) Sales or use tax is not due on the sale, lease, or rental of intravenous systems (IV systems) used in the treatment of humans. The exemption includes related supplies and replacement parts. Examples of IV system components and supplies include access ports, adapters, bags and bottles, cannulae, cassettes, catheters, clamps, connectors, drip chambers, extension sets, filters, in-line ports, luer locks, needles, poles, pumps and batteries, spikes, tubing, valves, and volumetric chambers. A purchaser must give an exemption certificate to the seller stating that the components and related supplies are for IV systems used in the treatment of humans.(10) Sales or use tax is not due on the sale of eating utensils, such as spoons, forks, or knives, that are designed to facilitate independent eating and purchased for use by an individual who cannot eat independently with conventional utensils because of injury, disease, physical or mental disability, or advanced age. A purchaser must give an exemption certificate to the seller to claim the exemption.(11) Sales or use tax is not due on the sale, lease, or rental of therapeutic appliances, devices, and related supplies specifically designed for those products when sold, leased, or rented to individuals under a prescription of a licensed practitioner of the healing arts.(A) An individual purchasing, leasing, or renting therapeutic appliances, devices, and related supplies under a prescription must either provide the seller a written prescription or allow the seller to receive the prescription directly from the licensed practitioner of the healing arts. The seller may exempt the sale, lease, or rental by keeping a copy of the individual's prescription in the seller's records. An exemption certificate from the purchaser is not required.(B) A hot tub, spa, or similar appliance qualifies as a therapeutic appliance when prescribed for the purchaser by a licensed practitioner of the healing arts. The patient must provide the seller of the hot tub, spa, or similar appliance with a prescription, an exemption certificate, and a signed statement on letterhead from the licensed practitioner. The signed statement should specify the medical requirements for the hot tub, spa, or similar appliance.(C) Health care providers, such as doctors, clinics, hospitals, nursing homes, or other institutions providing health care or medical services to individuals owe tax on therapeutic appliances, devices, and related supplies they use in providing nontaxable health care and medical services. Unless the health care provider qualifies as an exempt organization under Tax Code, §151.309 or §151.310, sales or use tax must be paid by the health care provider on the purchase, lease, or rental of all therapeutic appliances, devices, and related supplies.",
            "sourceNote": "Source Note: The provisions of this §3.284 adopted to be effective January 1, 1976; amended to be effective November 15, 1976, 1 TexReg 3099; amended to be effective July 5, 1978, 3 TexReg 2086; amended to be effective November 16, 1979, 4 TexReg 3985; amended to be effective November 18, 1981, 6 TexReg 4063; amended to be effective December 21, 1983, 8 TexReg 5038; amended to be effective December 6, 1991, 16 TexReg 6756; amended to be effective March 9, 1995, 20 TexReg 1337; amended to be effective March 12, 1996, 21 TexReg 1685; amended to be effective June 13, 2001, 26 TexReg 4213; amended to be effective November 21,2004, 29 TexReg 10581."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208687&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208687",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.285",
                "label": "Resale Certificate; Sales for Resale"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197579&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197579",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Equipment--Any apparatus, device, or simple machine used to perform a service.(2) Federal government--The government of the United States of America and its unincorporated agencies and instrumentalities, including all parts of the executive, legislative, and judicial branches and all independent boards, commissions, and agencies of the United States government unless otherwise designated in this section.(3) Integral part--An essential element without which the whole would not be complete. One taxable item is an integral part of a second item if the taxable item is necessary, as opposed to desirable, for the completion of the second item, and if the second item could not be provided as a whole without the taxable item.(4) Internet hosting service--The provision to an unrelated user of access over the Internet to computer services using property that is owned or leased and managed by the service provider and on which the unrelated user may store or process the user's own data or use software that is owned, licensed, or leased by the unrelated user or service provider. The term does not include telecommunications services as defined in §3.344 of this title (relating to Telecommunications Services).(5) Machinery--All power-operated machines.(6) Mexico--Within the geographical limits of the United Mexican States.(7) Purchaser--A person who is in the business of selling, leasing, or renting taxable items.(8) Seller--Every retailer, wholesaler, distributor, manufacturer, marketplace provider, or any other person who sells, leases, rents, or transfers ownership of tangible personal property or performs taxable services for consideration. Specific types of sellers, such as direct sales organizations, pawnbrokers, marketplace providers, and auctioneers, are further defined in §3.286 of this title (relating to Seller's and Purchaser's Responsibilities).(9) Taxable item--Tangible personal property and taxable services. Except as otherwise provided by Tax Code, Chapter 151, the sale or use of a taxable item in an electronic form instead of on physical media does not alter the item's tax status.(10) Tax-free inventory--A stock of tangible personal property purchased tax-free for resale, whether from out-of-state or by issuing a properly completed resale certificate, by a purchaser who, at the time of purchase:(A) holds a valid Texas sales and use tax permit;(B) makes sales of taxable items in the regular course of business; and(C) does not know whether the tangible personal property will be resold in the normal course of business or used in the performance of a service.(11) United States--Within the geographical limits of the United States of America or within the territories and possessions of the United States of America.(b) Sale for resale.(1) Except as provided in paragraphs (3) - (6) of this subsection, each of the following is a sale for resale:(A) the sale of a taxable item to a purchaser who acquires the taxable item for the purpose of reselling it as a taxable item in the United States or Mexico in the normal course of business:(i) in the form or condition in which it is acquired; or(ii) as an attachment to or as an integral part of another taxable item;(B) the sale of tangible personal property to a purchaser who acquires the property for the sole purpose of leasing or renting it in the United States or Mexico in the normal course of business to another person, but not if incidental to the leasing or renting of real estate, as described in §3.294(k) of this title (relating to Rental and Lease of Tangible Personal Property);(C) the sale of tangible personal property to a purchaser who acquires the property for the purpose of transferring the property to a customer in the United States or Mexico as an integral part of a taxable service;(D) the sale of a taxable service performed on tangible personal property that the purchaser of the service holds for sale, lease, or rental;(E) the sale of tangible personal property or a taxable service to a purchaser who acquires the tangible personal property or service for the purpose of transferring it as an integral part of performing a contract, or a subcontract of a contract, for the sale, other than the lease or rental, of tangible personal property with an entity or organization exempted from the taxes imposed by this chapter under Tax Code, §151.309 (Governmental Entities) or Tax Code, §151.310 (Religious, Educational, and Public Service Organizations) only if the purchaser:(i) allocates and bills to the contract the cost of the tangible personal property or service as a direct or indirect cost; and(ii) transfers title to the tangible personal property to the exempt entity or organization under the contract or subcontract and any applicable acquisition regulations;(F) the sale of a wireless voice communication device, such as a cellular telephone, to a purchaser who acquires the device for the purpose of transferring the device as an integral part of a taxable telecommunication service when the purchase of the service is a condition for receiving the device, regardless of whether there is a separate charge for the device or whether the purchaser is the provider of the taxable service. See §3.344 of this title for information about telecommunication services; and(G) the sale of a computer program to a provider of Internet hosting services who acquires the computer program from an unrelated vendor for the purpose of selling the right to use the computer program to an unrelated user of the provider's Internet hosting services in the normal course of business and in the form or condition in which the provider acquired the computer program, without regard to whether the provider transfers care, custody, and control of the computer program to the unrelated user. The performance by the provider of routine maintenance of the computer program that is recommended or required by the unrelated vendor of the computer program does not affect the application of this subsection. For purposes of this subsection, the purchase of the computer program by the provider qualifies as a sale for resale only if:(i) the provider offers the unrelated user a selection of computer programs that are available to the public for purchase directly from an unrelated vendor;(ii) the provider executes a written contract with the unrelated user that specifies the name of the computer program sold to the unrelated user and includes a charge to the unrelated user for computing hardware;(iii) the unrelated user purchases the right to use the computer program from the provider through the acquisition of a license; and(iv) the provider does not retain the right to use the computer program under that license.(2) To qualify as a sale for resale, the taxable item must be acquired for the purpose of selling, leasing, or renting it in the regular course of business or for the purpose of transferring it as an integral part of a taxable service performed in the regular course of business.(3) A sale for resale does not include the sale of internal or external wrapping, packing, or packaging supplies to a purchaser who acquires the supplies for use in wrapping, packing, or packaging tangible personal property, or in the performance of a service, for the purpose of furthering the sale of the tangible personal property or the service. See §3.314 of this title (relating to Wrapping, Packing, Packaging Supplies, Containers, Labels, Tags, Export Packers, and Stevedoring Materials and Supplies).(4) A sale for resale does not include the sale of tangible personal property or a taxable service to a purchaser who acquires the property or service for the purpose of performing a service not listed as a taxable service under Tax Code, §151.0101 (\"Taxable Services\"), regardless of whether title transfers to the service provider's customer, unless the tangible personal property or taxable service is purchased for the purpose of performing a contract, or a subcontract of a contract, for a service, including a taxable service under Tax Code, §151.0101, with any branch of the Department of Defense, Department of Homeland Security, Department of Energy, National Aeronautics and Space Administration, Central Intelligence Agency, National Security Agency, National Oceanic and Atmospheric Administration, or National Reconnaissance Office to the extent allocated and billed to the contract with the federal government.(5) A sale for resale does not include the sale of a taxable item to a purchaser who acquires the taxable item for the purpose of reselling or transferring the taxable item outside the territorial limits of the United States or Mexico. Refer to §3.323 of this title (relating to Imports and Exports).(6) Tangible personal property used to perform a taxable service is not considered resold unless the care, custody, and control of the tangible personal property is transferred to the purchaser of the service. The care, custody, and control of tangible personal property is transferred to the purchaser of the service when the purchaser has primary possession of the tangible personal property.(A) Except as provided in subparagraphs (B) and (C) of this paragraph, to have primary possession, the purchaser or the purchaser's designee must have:(i) physical possession of the tangible personal property off of the premises of the service provider;(ii) a contractual duty to care for the tangible personal property. At a minimum, the contract must prohibit the purchaser from damaging the tangible personal property or impose liability if the purchaser damages the tangible personal property; and(iii) a superior right to use the tangible personal property for a contractually specified period of time.(B) The purchaser may have primary possession of tangible personal property if the purchaser or the purchaser's designee has physical possession of the tangible personal property and directly consumes the tangible personal property during the provision of the taxable service. Property is considered consumed if it can no longer be used for its intended purpose in the normal course of business or is not retained or reusable by the service provider.(C) A purchaser may have primary possession of a computer program if the purchaser acquires a license to use the computer program from the service provider and the service provider does not retain the right to use the computer program under that license.(7) A person performing services taxable under Tax Code, Chapter 151 is the consumer of machinery and equipment used by the person in performing the services. A person performing a taxable service is not using the machinery or equipment in performing the service if the person has transferred primary possession, as that term is described in paragraph (6) of this subsection, of the machinery or equipment to the purchaser of the service.(8) Aircraft. See §3.280 of this title (relating to Aircraft) for the definition of \"sale for resale\" as it applies to aircraft.(9) A sale for resale does not include the sale of tangible personal property to a purchaser who acquires the property for the purpose of using, consuming, or expending it in, or incorporating it into, an oil or gas well in the performance of an oil well service taxable under Tax Code, Chapter 191 (Miscellaneous Occupation Taxes).(c) Issuance and acceptance of resale certificates.(1) A sale for resale as defined in subsection (b) of this section is not taxable.(2) Who may issue a resale certificate.(A) In general, a purchaser who holds a Texas sales and use tax permit may issue a resale certificate instead of paying tax at the time of purchase of a taxable item that the purchaser intends to resell, lease, rent, or transfer as an integral part of a taxable service in the normal course of business. A purchaser may also issue a resale certificate instead of paying tax at the time of purchase of a taxable item that the purchaser intends to maintain in a valid tax-free inventory, if the purchaser does not know at the time of purchase whether the item will be resold or used in the performance of a service. The purchaser must collect, report, and remit tax to the comptroller as required by §3.286 of this title when the purchaser sells, leases, or rents taxable items.(B) A purchaser may not issue a resale certificate in lieu of paying tax on the purchase of a taxable item, including tangible personal property to maintain in a valid tax-free inventory, that the purchaser knows, at the time of purchase, will be used or consumed by the purchaser.(3) Accepting a resale certificate.(A) All gross receipts of a seller are presumed subject to sales or use tax unless a properly completed resale or exemption certificate is accepted by the seller. A properly completed resale certificate contains the information required by subsection (g) of this section. See also §3.287 of this title (relating to Exemption Certificates).(B) A seller does not owe tax on a sale, lease, or rental of a taxable item if the seller accepts a properly completed resale certificate in good faith. A resale certificate is deemed to be accepted in good faith if:(i) the resale certificate is accepted at or before the time of the transaction;(ii) the resale certificate is properly completed, meaning that all of the information required by subsection (g) of this section is legible; and(iii) the seller does not know, and does not have reason to know, that the sale is not a sale for resale. It is the seller's responsibility to be familiar with Texas sales tax law as it applies to the seller's business and to take notice of the information provided by the purchaser on the resale certificate. For example, a jewelry seller should know that a resale certificate from a landscaping service is invalid because a landscaping service is not in the business of reselling jewelry.(C) The seller should obtain a properly executed resale certificate at the time the taxable transaction occurs. All certificates obtained on or after the date the comptroller's auditor actually begins work on the audit at the seller's place of business or on the seller's records after the entrance conference are subject to verification. All incomplete certificates will be disallowed regardless of when they were obtained.(i) The seller has 90 days, or until a later date agreed to in writing by the comptroller and the seller, referred to in this section as \"the period,\" from the date written notice is received by the seller from the comptroller in which to deliver the certificates to the comptroller. Written notice shall be given by the comptroller no earlier than the filing of a petition for redetermination or claim for refund.(ii) For the purposes of this section, written notice given by mail is presumed to have been received by the seller within three business days from the date of deposit in the custody of the United States Postal Service. The seller may overcome the presumption by submitting proof from the United States Postal Service or by other competent evidence showing a later delivery date.(iii) Any certificates delivered to the comptroller during the period will be subject to independent verification by the comptroller before any deductions will be allowed. Certificates delivered after the period will not be accepted and the deduction will not be granted. See §3.282 of this title (relating to Auditing Taxpayer Records) and §3.286 of this title.(D) Resale certificates are subject to the provisions of §3.281 of this title (relating to Records Required; Information Required). A seller is required to keep resale certificates for a minimum of four years from the date on which the sale is made and throughout any period in which any tax, penalty, or interest may be assessed, collected, or refunded by the comptroller or in which an administrative hearing or judicial proceeding is pending.(4) Blanket resale certificate. A purchaser may issue to a seller a blanket resale certificate describing the general nature of the taxable items purchased for resale. The seller may rely on the blanket certificate until it is revoked in writing.(5) Bulk commodities. A resale certificate is not required to be issued by a broker or dealer that buys and sells only raw commodities in bulk, such as natural gas, raw cotton bales, or raw aluminum, from producers or other commodity brokers or dealers solely for resale in the normal course of business. However, if requested by the seller, a properly completed resale certificate, absent a sales tax permit number, may be issued by the purchaser of such raw commodities even if the purchaser does not hold a sales and use tax permit.(6) Electricity sales and purchases by independent organization certified under Texas Utilities Code, §39.151. A resale certificate is not required to be issued by a person who purchases electricity solely for the purpose of resale from the independent organization certified under Texas Utilities Code, §39.151. The independent organization certified under Texas Utilities Code, §39.151 is not required to issue a resale certificate to a person from whom it purchases electricity solely for the purpose of resale.(d) Retailers outside Texas.(1) A seller in Texas may accept a resale certificate in lieu of tax from a retailer located outside Texas who purchases taxable items for resale in the United States or Mexico in a transaction that is a sale for resale, as defined in subsection (b) of this section.(2) The resale certificate must show the signature and address of the purchaser, the date of the sale, the state in which the purchaser intends to resell the item, the sales tax permit number or the registration number assigned to the purchaser by the state in which the purchaser is authorized to do business or a statement that the purchaser is not required to be permitted in the state in which the purchaser is authorized to do business. Mexican retailers who purchase taxable items for resale must show their Federal Taxpayers Registry (RFC) identification number for Mexico on the resale certificate and give a copy of their Mexican Registration Form to the Texas seller. An invoice describing the taxable item purchased and showing the exact street address or office address from which the taxable item will be resold must be attached to the resale certificate. The resale certificate must also state the type business engaged in by the purchaser and the type items sold in the regular course of business. A resale certificate may be accepted from the out-of-state retailer even if the Texas retailer ships or delivers the taxable item directly to a recipient located inside Texas.(3) The Texas retailer is not responsible for determining whether the out-of-state retailer is required to hold a Texas sales and use tax permit or to enter a Texas permit number on the resale certificate.(4) Foreign purchasers, other than purchasers from Mexico, who are not engaged in business in Texas and do not hold a Texas sales and use tax permit, may issue a properly completed resale certificate, as described in paragraph (2) of this subsection, in lieu of paying tax on the purchase of taxable items for sale in the normal course of business when the items are delivered or shipped to a location outside of Texas but within the United States or Mexico.(5) An out-of-state or foreign purchaser who acquires goods or services from a Texas seller for resale in Texas should refer to §3.286 of this title for information on their responsibilities.(6) A purchaser, whether from Texas, Mexico, or another foreign country, may not issue a resale certificate for taxable items purchased for resale outside the United States or Mexico. See subsection (b)(5) of this section. Purchasers who purchase taxable items in Texas for sale outside the United States or Mexico must comply with the requirements of §3.323 of this title to claim exemption from the Texas sales tax.(e) Taxable use of items purchased for resale; items removed from tax-free inventory.(1) Divergent use; paying tax on fair market rental value. When a taxable item is removed from a valid tax-free inventory for use in Texas, Texas sales tax is due. When a taxable item purchased under a resale certificate is used for any purpose other than retention, demonstration, or display while holding it for sale, lease, or rental, or for transfer as an integral part of a taxable service, the purchaser is liable for sales tax based on the value of the taxable item for the period of time used.(A) The value of tangible personal property is the fair market rental value of the tangible personal property. The fair market rental value is the amount that a purchaser would pay on the open market to rent or lease the tangible personal property for use. If tangible personal property has no fair market rental value, sales tax is due based upon the original purchase price.(B) The value of a taxable service is the fair market value of the taxable service. The fair market value is the amount that a purchaser would pay on the open market to obtain that taxable service. If a taxable service has no fair market value, sales tax is due based upon the original purchase price.(C) At any time the person using a taxable item may stop paying tax on the value of the taxable item and instead pay sales tax on the original purchase price. When the person elects to pay sales tax on the original purchase price, credit will not be allowed for taxes previously paid based on value.(2) Donation of taxable item. A purchaser who gives a valid resale certificate instead of paying tax on the purchase of a taxable item is not liable for sales tax on the taxable item when donated to an organization exempt under Tax Code, §151.309 (Governmental Entities), or §151.310(a)(1) and (2) (Religious, Educational, And Public Service Organizations), provided the purchaser did not make a taxable use of the donated taxable item prior to its donation.(3) Use of taxable item as a trade-in. A purchaser who gives a valid resale certificate instead of paying tax on the purchase of a taxable item is liable for sales tax if the purchaser uses the taxable item as a trade-in on the purchase of another taxable item. Tax must be paid on the original purchase price of the taxable item used as a trade-in.(4) Use of taxable item outside Texas. Texas sales or use tax is not due on a taxable item removed from a valid tax-free inventory for use by the purchaser outside the state.(5) Lost or destroyed inventory. Texas sales or use tax is not due on tangible personal property purchased under a valid resale certificate that is totally destroyed or permanently disposed of by the purchaser in a manner other than for use or sale in the normal course of business. For example, documented theft, casualty damage or loss, or disposal in a landfill. This does not apply to consumable items that are completely used up or destroyed by the purchaser in the course of performing a service in Texas.(f) Improper use of a resale certificate; criminal offenses.(1) A person may not issue a resale certificate at the time of purchase for a taxable item if the person knows the item is being purchased for a specific taxable use.(2) Any person who intentionally or knowingly makes, presents, uses, or alters a resale certificate for the purpose of evading Texas sales or use tax is guilty of a criminal offense. For more information, see §3.305 of this title (relating to Criminal Offenses and Penalties).(g) Content of a resale certificate. A resale certificate must show:(1) the name and address of the purchaser;(2) the number from the sales tax permit held by the purchaser or a statement that an application for a permit is pending before the comptroller with the date the application for a permit was made. If the application is pending, the resale certificate is valid for only 60 days, after which time the resale certificate must be renewed to show the permanent permit number. If the purchaser holds a Texas sales and use tax permit, the number must consist of 11 digits that begin with a 1 or 3. Federal employer's identification (FEI) numbers or social security numbers are not acceptable evidence of resale. See also subsection (d)(2) of this section regarding registration numbers for retailers outside Texas;(3) a description of the taxable items generally sold, leased, or rented by the purchaser in the regular course of business and a description of the taxable items to be purchased tax free by use of the certificate. The item to be purchased may be generally described on the certificate or itemized in an order or invoice attached to the certificate;(4) the signature of the purchaser or an electronic form of the purchaser's signature authorized by the comptroller and the date; and(5) the name and address of the seller.(h) Form of a resale certificate. A resale certificate must be substantially either in the form of a Texas Sales and Use Tax Resale Certificate or a Border States Uniform Sale for Resale Certificate. Copies of both certificates are available at comptroller.texas.gov or may be obtained by calling our toll-free number 1-800-252-5555. A seller may also accept as a resale certificate the Uniform Sales and Use Tax Certificate-Multijurisdiction promulgated by the Multistate Tax Commission and available online at http://www.mtc.gov. The Streamlined Sales and Use Tax Agreement Certificate of Exemption may not be accepted as a resale certificate.",
            "sourceNote": "Source Note: The provisions of this §3.285 adopted to be effective January 1, 1976; amended to be effective November 17, 1981, 6 TexReg 4064; amended to be effective November 19, 1984, 9 TexReg 5717; amended to be effective November 24, 1987, 12 TexReg 4196; amended to be effective September 18, 1991, 16 TexReg 4957; amended to be effective December 28, 1993, 18 TexReg 9311; amended to be effective March 12, 1996, 21 TexReg 1687; amended to be effective July 26, 1998, 23 TexReg 7381; amended to be effective October 12, 2004, 29 TexReg 9550; amended to be effective November 1, 2017, 42 TexReg 6024; amended to be effective October 13, 2020, 45 TexReg7269; amended to be effective April 26, 2022, 47 TexReg 2293."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197579&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197579",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.286",
                "label": "Seller's and Purchaser's Responsibilities"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208686&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208686",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Consignment sale--The sale, lease, or rental of tangible personal property by a seller who, under an agreement with another person, is entrusted with possession of tangible personal property with respect to which the other person has title or another ownership interest, and is authorized to sell, lease, or rent the tangible personal property without additional action by the person having title to or another ownership interest in the tangible personal property.(2) Direct sales organization--A person that typically sells taxable items directly to purchasers through independent salespersons and not in or through a place of business of the seller. The term \"independent salespersons\" includes, but is not limited to, distributors, representatives, and consultants. Items are typically sold person-to-person through in-home product demonstrations, parties, catalogs, and one-on-one selling. The term includes, but is not limited to, direct marketing and multilevel marketing organizations.(3) Disaster- or emergency-related work--Repairing, renovating, installing, building, rendering services, or performing other business activities relating to the repair or replacement of equipment and property, including buildings, offices, structures, lines, poles, and pipes, that:(A) is owned or used by or for:(i) a telecommunications provider or cable operator;(ii) communications networks;(iii) electric generation;(iv) electric transmissions and distribution systems;(v) natural gas and natural gas liquids gathering, processing, and storage, transmission and distribution systems; or(vi) water pipelines and related support facilities, equipment, and property that serve multiple persons; and(B) is damaged, impaired, or destroyed by a declared state disaster or emergency.(4) Engaged in business--Except as provided in subparagraphs (L) and (M) of this paragraph, a seller is engaged in business in this state if the seller:(A) maintains, occupies, or uses in this state, permanently or temporarily, directly or indirectly, or through an agent by whatever name called, a kiosk, office, distribution center, sales or sample room or place, warehouse or storage place, or any other physical location where business is conducted;(B) has any representative, agent, salesperson, canvasser, or solicitor who operates under the authority of the seller to conduct business in this state, including selling, delivering, or taking orders for taxable items;(C) promotes a flea market, arts and crafts show, trade day, festival, or other event in this state that involves sales of taxable items;(D) uses independent salespersons, who may include, but are not limited to, distributors, representatives, or consultants, in this state to make direct sales of taxable items;(E) derives receipts from the sale, lease, or rental of tangible personal property that is located in this state or owns or uses tangible personal property that is located in this state, including a computer server or software to solicit orders for taxable items, unless the seller uses the server or software as a purchaser of an Internet hosting service;(F) allows a franchisee or licensee to operate under its trade name in this state if the franchisee or licensee is required to collect sales or use tax in this state;(G) otherwise conducts business in this state;(H) is formed, organized, or incorporated under the laws of this state and the seller's internal affairs are governed by the laws of this state, notwithstanding the fact that the seller may not be otherwise engaged in business in this state pursuant to this section;(I) engages in regular or systematic solicitation of sales of taxable items in this state by the distribution of catalogs, periodicals, advertising flyers, or other advertising, by means of print, radio, or television media, or by mail, telegraphy, telephone, computer data base, cable, optic, microwave, or other communication system for the purpose of effecting sales of taxable items;(J) solicits orders for taxable items by mail or through other media including the Internet or other media that may be developed in the future; or(K) holds a substantial ownership interest in, or is owned in whole or substantial part by, another person who:(i) maintains a distribution center, warehouse, or similar location in this state and delivers property sold by the seller to purchasers in this state;(ii) maintains a location in this state from which business is conducted, sells the same or substantially similar lines of products as the seller, and sells such products under a business name that is the same or substantially similar to the business name of the seller; or(iii) maintains a location in this state from which business is conducted if the person with the location in this state uses its facilities or employees:(I) to advertise, promote, or facilitate sales by the seller to purchasers; or(II) to otherwise perform any activity on behalf of the seller that is intended to establish or maintain a marketplace for the seller in this state, including receiving or exchanging returned merchandise.(iv) For purposes of this subparagraph only, \"ownership\" includes direct ownership, common ownership, or indirect ownership through a parent entity, subsidiary, or affiliate, and \"substantial,\" with respect to ownership, constitutes an interest, whether direct or indirect, of at least 50% of:(I) the total combined voting power of all classes of stock of a corporation;(II) the beneficial ownership interest in the voting stock of the corporation;(III) the current beneficial interest in the corpus or income of a trust;(IV) the total membership interest of a limited liability company;(V) the beneficial ownership interest in the membership interest of a limited liability company; or(VI) the profits or capital interest of any other entity, including, but not limited to, a partnership, joint venture, or association.(L) Effective June 16, 2015, a seller is not engaged in business in this state if the seller is an out-of-state business entity whose physical presence in this state is solely from the entity's performance of disaster- or emergency-related work during a disaster response period. An out-of-state business entity that remains in this state after a disaster response period has ended is engaged in business in this state if the entity conducts any of the activities described in subparagraphs (A) - (K) of this paragraph.(i) For purposes of this subparagraph only, an \"affiliate\" is a member of a combined group as that term is described by Tax Code, §171.1014 (Combined Reporting; Affiliated Group Engaged in Unitary Business).(ii) For purposes of this subparagraph only, a \"disaster response period\" is:(I) the period that:(-a-) begins on the 10th day before the date of the earliest event establishing a declared state of disaster or emergency by the issuance of an executive order or proclamation by the governor or a declaration of the president of the United States; and(-b-) ends on the earlier of the 120th day after the start date or the 60th day after the ending date of the disaster or emergency period established by the executive order or proclamation or declaration, or on a later date as determined by an executive order or proclamation by the governor; or(II) the period that, with respect to an out-of-state business entity:(-a-) begins on the date that the out-of-state business entity enters this state in good faith under a mutual assistance agreement and in anticipation of a state of disaster or emergency, regardless of whether a state of disaster or emergency is actually declared; and(-b-) ends on the earlier of the date that the work is concluded or the seventh day after the out-of-state business entity enters this state.(iii) For purposes of this subparagraph only, a \"mutual assistance agreement\" is an agreement to which one or more business entities are parties and under which a public utility, municipally owned utility, or joint agency owning, operating, or owning and operating critical infrastructure used for electric generation, transmission, or distribution in this state may request that an out-of-state business entity perform work in this state in anticipation of a state of disaster or emergency.(iv) For purposes of this subparagraph only, an \"out-of-state business entity\" is a foreign entity that:(I) enters this state at the request of, or is an affiliate of, an in-state business entity and performs work in Texas under a mutual assistance agreement; or(II) enters this state at the request of an in-state business entity, under a mutual assistance agreement, or is an affiliate of an in-state business entity and enters this state at the request of an in-state business entity, the state of Texas, or a political subdivision of this state to perform disaster- or emergency-related work in this state during the disaster response period, and:(-a-) except with respect to the performance of disaster- or emergency-related work, has no physical presence in this state and is not authorized to transact business in this state immediately before a disaster response period; and(-b-) is not registered with the secretary of state to transact business in this state, does not file a tax report with this state, or a political subdivision of this state, and is not engaged in business with this state for the purpose of taxation during the tax year immediately preceding the disaster response period.(M) A broadcaster, printer, outdoor advertising firm, advertising distributor, or publisher that broadcasts, publishes, displays, or distributes paid commercial advertising in this state that is intended to be disseminated primarily to consumers located in this state and is only secondarily disseminated to bordering jurisdictions, including advertising appearing exclusively in a Texas edition or section of a national publication, is considered for purposes of this subsection to be the agent of the person placing the advertisement and is not considered to be engaged in business in this state as a result of those acts.(5) Internet hosting service--The provision to an unrelated user of access over the Internet to computer services using property that is owned or leased and managed by the service provider and on which the unrelated user may store or process the user's own data or use software that is owned, licensed, or leased by the unrelated user or service provider. The term does not include telecommunications services as defined in §3.344 of this title (relating to Telecommunications Services).(6) Itinerant vendor--A seller who does not operate a place of business in this state and who travels to various locations in this state to solicit sales.(7) Kiosk--A small, stand-alone area or structure that:(A) is used solely to display merchandise or to submit orders for taxable items from a data entry device, or both;(B) is located entirely within a location that is a place of business of another seller, such as a department store or shopping mall; and(C) at which taxable items are not available for immediate delivery to a purchaser.(8) Marketplace--A physical or electronic medium through which persons other than the owner or operator of the medium make sales of taxable items. The term includes a store, internet website, software application, or catalog.(9) Marketplace provider--A person who owns or operates a marketplace and directly or indirectly processes sales or payments for marketplace sellers.(10) Marketplace seller--A seller, other than the marketplace provider, who makes a sale of a taxable item through a marketplace.(11) Permit holder--A person to whom the comptroller has issued a sales and use tax permit. The term includes permitted sellers as well as permitted purchasers, but does not include a person who does not hold a Texas sales and use tax permit or whose sales and use tax permit is suspended, pursuant to subsection (l) of this section, or cancelled, pursuant to subsection (n) of this section, or a person who has not received a sales and use tax permit due to an unsigned or incomplete application.(12) Place of business of the seller--This term has the meaning given in §3.334 of this title (relating to Local Sales and Use Taxes).(13) Seller--Every retailer, wholesaler, distributor, manufacturer, marketplace provider, or any other person who sells, leases, rents, or transfers ownership of tangible personal property or performs taxable services for consideration. Seller is further defined as follows:(A) A promoter of a flea market, trade day, or other event that involves the sales of taxable items is a seller responsible for the collection and remittance of the sales tax that dealers, salespersons, or individuals collect at such events, unless those persons hold active sales and use tax permits that the comptroller has issued.(B) A direct sales organization that is engaged in business in this state is a seller responsible for the collection and remittance of the sales and use tax collected by the organization's independent salespersons.(C) Pawnbrokers, storage facility operators, mechanics, artisans, or others who sell property to enforce a lien are sellers responsible for the collection and remittance of sales and use tax on the sale of such tangible personal property.(D) A person engaged in business in this state who sells, leases, or rents tangible personal property owned by another person by means of a consignment sale is a seller responsible for the collection and remittance of the sales tax on the consignment sale.(E) An auctioneer who owns tangible personal property or to whom tangible personal property has been consigned is a seller responsible for the collection and remittance of the sales and use tax on tangible personal property sold at auction. For more information, auctioneers should refer to §3.311 of this title (relating to Auctioneers, Brokers, and Factors).(14) Taxable item--Tangible personal property and taxable services. Except as otherwise provided in Tax Code, Chapter 151, the sale or use of a taxable item in electronic form instead of on physical media does not alter the item's tax status.(A) Tangible personal property means property that can be seen, weighed, measured, felt, or touched or that is perceptible to the senses in any other manner, including a computer program as defined in §3.308 of this title (relating to Computers--Hardware, Computer Programs, Services, and Sales) and a telephone prepaid calling card, as defined in §3.344 of this title.(B) Taxable services are those identified in Tax Code, §151.0101 (Taxable Services).(b) Who must have a sales and use tax permit.(1) Sellers. Except as provided in paragraph (2) of this subsection, each seller who is engaged in business in this state, including itinerant vendors, persons who own or operate a kiosk, and sellers operating temporarily in this state, must apply to the comptroller and obtain a sales and use tax permit for each place of business of the seller operated in this state and a single permit for its out-of-state places of business.(2) Safe harbor for remote sellers.(A) Remote seller defined. For purposes of this paragraph, a remote seller is a seller engaged in business in this state whose only activity in the state is described in subsection (a)(4)(I) or (J) of this section.(B) Safe harbor.(i) Permitting and collection obligations. The comptroller will not enforce the permit requirement of this subsection or the collection obligation of subsection (d) of this section on a remote seller whose total Texas revenue in the preceding twelve calendar months is less than $500,000. If a remote seller's total Texas revenue exceeds that amount, the remote seller shall obtain a permit and begin collecting as provided in subparagraph (E) of this paragraph and shall continue to collect unless it terminates its collection obligation under subparagraph (F) of this paragraph.(ii) Temporary storage of inventory. A remote seller that is temporarily storing tangible personal property in Texas to be used for fulfillment at a facility of a marketplace provider that has certified that it will assume the rights and duties of a seller with respect to the tangible personal property, as provided for in this subsection, will not have to obtain a permit or have a collection obligation. This subsection is not applicable to those remote sellers who are above the safe harbor amount under clause (i) of this subparagraph.(C) Total Texas revenue defined for purposes of this paragraph.(i) Total Texas revenue means the gross revenue from the sale of tangible personal property and services for storage, use, or other consumption in this state recognized under the accounting method used by the seller, and includes separately stated handling, transportation, installation, and other similar fees collected by the seller in connection with the sale.(ii) A remote seller shall include in total Texas revenue, the aggregate sum of all sales made on all mediums, including all marketplaces and the remote seller's own website. This clause takes effect on April 1, 2020.(iii) Total Texas revenue includes taxable, nontaxable, and tax-exempt sales. A sale of an item for delivery in this state is presumed to be a sale for storage, use, or other consumption in this state. With respect to a service, \"use\" means the derivation in this state of direct or indirect benefit from the service.(D) Consolidation of total Texas revenue. The comptroller may consolidate the total Texas revenue of sellers engaged in conduct that circumvents the safe harbor amount in subparagraph (B) of this paragraph.(E) When to obtain a permit and begin collecting. No later than the first day of the fourth month after the month in which a remote seller exceeds the safe harbor amount in subparagraph (B) of this paragraph, the remote seller shall obtain a permit and begin collecting use tax. For example, if during the period of July 1, 2018, through June 30, 2019, a remote seller's total Texas revenue exceeds the safe harbor amount in subparagraph (B) of this paragraph, the remote seller shall obtain a permit by October 1, 2019, and begin collecting use tax no later than October 1, 2019.(F) Terminating collection obligation. A remote seller that is required to be permitted may terminate its collection obligation under this paragraph after twelve consecutive months in which the remote seller's total Texas revenue for the preceding twelve calendar months is below the safe harbor amount in subparagraph (B) of this paragraph. In order to terminate its collection obligation, a remote seller must submit a form prescribed by the comptroller. Thereafter, the remote seller shall resume collection on the first day of the second month following any twelve calendar months in which the remote seller's total Texas revenue exceeds the safe harbor amount in subparagraph (B) of this paragraph. For example, if the total Texas revenue of a remote seller that previously terminated its collection obligation exceeds the safe harbor amount in subparagraph (B) of this paragraph during the period of January 1, 2020, through December 31, 2020, the remote seller shall resume collection on February 1, 2021.(G) Records retention required. For purposes of this paragraph, a remote seller that terminates its collection obligation shall comply with the record retention requirement of §3.281 of this title (relating to Records Required; Information Required) and §3.282 of this title (relating to Auditing Taxpayer Records). The remote seller must maintain sufficient documentation to verify the date on which the remote seller terminated its collection obligation under subparagraph (F) of this paragraph or ceases to engage in business in this state.(H) Transition rule. Remote sellers will be subject to the permit requirement of this subsection and the collection obligation of subsection (d) of this section beginning on October 1, 2019. The initial twelve calendar months for determining a remote seller's total Texas revenue will be July 1, 2018, through June 30, 2019. If a remote seller's total Texas revenue during that period exceeds the safe harbor amount in subparagraph (B) of this paragraph, the seller shall obtain a permit by October 1, 2019, and begin collecting use tax no later than October 1, 2019.(3) Marketplace providers and marketplace sellers.(A) Duties of marketplace providers. A marketplace provider shall:(i) certify in writing to each marketplace seller that the marketplace provider assumes the rights and duties of a seller with respect to sales made by the marketplace seller through the marketplace (no specific language or format is required for the certification);(ii) collect sales and use tax on Texas sales of taxable items made through the marketplace;(iii) report and remit the sales and use taxes on all Texas sales made through a marketplace;(iv) provide to each marketplace seller records of the marketplace sales made on behalf of the marketplace seller; and(v) comply with the record retention requirement of §3.281 of this title and §3.282 of this title.(B) Duties of marketplace sellers. A marketplace seller shall:(i) retain records for all marketplace sales made on a marketplace as required in §3.281 of this title and §3.282 of this title;(ii) furnish to the marketplace provider information that is required to correctly collect and remit sales and use tax (the information may include a certification of taxability that an item being sold is a taxable item, is not a taxable item, or is exempt from taxation); and(iii) not be required to obtain a permit if only selling through a marketplace provider that has certified that it will assume the rights and duties of a seller, as provided in this subsection.(C) Good faith requirements for marketplace sellers and marketplace providers.(i) A marketplace seller who in good faith accepts a marketplace provider's certification under subparagraph (A)(i) of this paragraph shall exclude sales made through the marketplace from the marketplace seller's sales tax report if the marketplace seller is otherwise required to collect and remit tax.(ii) Except as provided by subparagraph (E) of this paragraph, a marketplace provider is not liable for failure to collect and remit the correct amount of sales and use taxes if the marketplace provider shows the failure resulted from the marketplace provider's good faith reliance on incorrect or insufficient information provided by the marketplace seller.(D) A marketplace seller is liable for any deficiency resulting from incorrect or incomplete information provided by the marketplace seller to the marketplace provider.(E) Joint and several liability. A marketplace provider and marketplace seller that are affiliates or associates, as defined by Business Organizations Code, §1.002, are jointly and severally liable for a deficiency resulting from a sale made by the marketplace seller through the marketplace.(F) Marketplace provider waiver requests. A marketplace provider may request a waiver of the requirements of subparagraph (A) of this paragraph by sending a written request to the Texas Comptroller of Public Accounts, Tax Policy Division that explains the basis for the waiver. The comptroller will review the waiver request and issue a letter granting, conditionally granting, or denying the waiver request. If the information below, or any additional information requested by the comptroller, is not provided, the comptroller will not issue a waiver. The requestor does not have the right to a hearing. The request for the waiver must include:(i) the name of the marketplace provider;(ii) an explanation of the marketplace provider's business model, including information on the services offered by the marketplace provider and the charges for those services;(iii) the basis for the waiver request;(iv) a statement providing whether the waiver is permanent or temporary; and(v) if temporary, the date the marketplace provider expects the waiver to expire.(G) Exceptions. The comptroller may except marketplace providers in certain industries from some or all of the statutory and regulatory requirements for marketplace providers based on the industries' business models and practices. The comptroller will provide written notification to the excepted marketplace providers.(4) A seller that no longer intends to engage in business and make sales of taxable items in the state shall submit a form prescribed by the comptroller to terminate its permit and must obtain a new permit before it commences sales of taxable items in the state thereafter. The seller must maintain sufficient documentation to verify the date on which the seller ceases to engage in business in this state.(5) Direct sales organizations. Independent salespersons of direct sales organizations are not required to hold sales and use tax permits to sell taxable items for direct sales organizations. Direct sales organizations engaged in business in this state are sellers responsible for holding sales and use tax permits and for the collection and remittance of sales and use tax on all sales of taxable items by their independent salespersons. See subsection (d)(3) of this section for more information about the collection and remittance of sales and use tax by direct sales organizations.(6) Non-permitted purchasers. Persons who are not required to have a sales and use tax permit or who do not have a direct payment permit are still responsible for paying to the comptroller sales or use tax due on purchases of taxable items from sellers who do not collect and remit tax. See subsection (g)(9) of this section for return and payment information and §3.346 of this title (relating to Use Tax).(7) Non-permitted sellers. Failure to obtain a sales and use tax permit does not relieve a seller required by this section or other applicable law to have a sales and use tax permit from the obligation to properly collect and remit sales and use taxes. Sellers whose sales and use tax permits are suspended, pursuant to subsection (l) of this section, or cancelled, pursuant to subsection (n) of this section, and sellers who have not received sales and use tax permits due to unsigned or incomplete applications, are still responsible for properly collecting and remitting sales and use taxes. See subsection (g) of this section for return and payment information.(c) Obtaining a sales and use tax permit.(1) A seller must complete an application that the comptroller furnishes and must return that application to the comptroller, together with bond or other security that may be required by §3.327 of this title (relating to Taxpayer's Bond or Other Security). A seller who files an electronic application furnished by the comptroller is deemed to have signed the application and is not required to print and mail a signed application to the comptroller. A separate sales and use tax permit under the same taxpayer account number is issued to the applicant for each place of business of the seller. Sales and use tax permits are issued without charge.(2) Each seller must apply for a sales and use tax permit. An individual or sole proprietor must be at least 18 years of age unless the comptroller allows an exception from the age requirement. The sales and use tax permit cannot be transferred from one seller to another. The sales and use tax permit is valid only for the seller to whom it was issued and for the transaction of business only at the address that is shown on the sales and use tax permit. If a seller operates two or more types of business at the same location, then only one sales and use tax permit is required.(3) The sales and use tax permit must be conspicuously displayed at the place of business of the seller for which it is issued. A permit holder that has traveling sales persons who operate from a central office needs only one sales and use tax permit, which must be displayed at that office.(4) All sales and use tax permits of the seller will have the same taxpayer account number; however, each place of business of the seller will have a different outlet number. The outlet numbers assigned may not necessarily correspond to the number of business locations operated by the seller.(d) Collecting sales and use tax due.(1) Bracket system.(A) Each seller must collect sales or use tax on each separate retail sale in accordance with the statutory bracket system in Tax Code, §151.053 (Sales Tax Brackets). The practice of rounding off the amount of sales or use tax that is due on the sale of a taxable item is prohibited. Copies of the bracket system should be displayed in each place of business of the seller so both the seller and the purchaser may easily use them.(B) The sales and use tax applies to each total sale, not to each item of each sale. For example, if two items are purchased at the same time and each item is sold for $.07, then the seller must collect the tax on the total sum of $.14. Sales and use tax must be reported and remitted to the comptroller as provided by Tax Code, §151.410 (Method of Reporting Sales Tax; General Rule). When sales and use tax is collected properly under the bracket system, the seller is not required to remit any amount that is collected in excess of the sales and use tax due. Conversely, when the sales and use tax collected under the bracket system is less than the sales and use tax due on the seller's total receipts, the seller is required to remit sales and use tax on the total receipts even though the seller did not collect sales and use tax from the purchasers.(2) Sales and use tax due is debt of the purchaser; document requirements.(A) The sales and use tax due is a debt of the purchaser to the seller until collected. Unpaid sales or use tax is recoverable by the seller in the same manner as the original sales price of the taxable item itself, if unpaid, would be recoverable. The comptroller may proceed against either the seller or purchaser, or against both, until all applicable tax, penalty, and interest due has been paid.(B) The amount of sales and use tax due must be separately stated on the bill, contract, or invoice to the purchaser or there must be a written statement to the purchaser that the stated price includes sales or use tax. Contracts, bills, or invoices that merely state that \"all taxes\" are included are not specific enough to relieve either party to the transaction of its sales and use tax responsibilities. The total amount that is shown on such documents is presumed to be the taxable item's sales price, without sales and use tax included. The seller or purchaser may overcome the presumption by using the seller's records to show that sales or use tax was included in the sales price. Sellers located outside of Texas must identify the tax as Texas sales or use tax on their bill, contract, or invoice to the purchaser. If the out-of-state seller does not identify the tax as Texas sales or use tax at the time of the transaction, the seller is presumed not to have collected Texas sales or use tax. Either the seller or the purchaser may overcome the presumption by submitting evidence that clearly demonstrates that the Texas sales or use tax was remitted to the comptroller.(3) Direct sales organizations. A direct sales organization is responsible for the collection and remittance of the sales and use tax on all sales of taxable items in this state by the independent salespersons who sell the organization's product or service as explained in this paragraph. See subsection (b)(4) of this section for information about sales and use tax permits required to be held by direct sales organizations.(A) If an independent salesperson purchases a taxable item from a direct sales organization after taking the purchaser's order, then the direct sales organization must collect from the independent salesperson, and remit to the comptroller, the sales and use tax on the actual sales price for which the independent salesperson sold the taxable item to the purchaser.(B) If an independent salesperson purchases a taxable item from a direct sales organization before the purchaser's order is taken, then the direct sales organization must collect from the independent salesperson, and remit to the comptroller, the sales and use tax based on the organization's suggested retail sales price of the taxable item.(C) Taxable items that are sold to an independent salesperson for the salesperson's use are taxed based on the actual sales price for which the item was sold to the salesperson at the tax rate in effect for the salesperson's location.(D) Incentives, including rewards, gifts, and prizes.(i) Direct sales organizations owe sales and use tax on the cost of all taxable items used as incentives that are transferred to a recipient in this state, including purchasers, independent salespersons, and persons who host a direct sales event.(ii) Direct sales organizations must collect sales or use tax on the total amount of consideration received in exchange for taxable items, including items purchased with hostess points or similar forms of compensation paid to a person for hosting a direct sales event and items that are earned by the host based on the volume of purchases. The redemption of reward points in exchange for taxable items is subject to sales tax under Tax Code, §151.005(2) (\"Sale\" or \"Purchase\"). See also §3.283 of this title (relating to Bartering Clubs and Exchanges).(4) Payment of certain sales and use taxes by a seller. A seller may directly or indirectly advertise, hold out, or state to a purchaser or to the public that the seller will pay the sales and use tax for the customer if:(A) the seller indicates in the advertisement, holding out, or statement that the seller is paying the tax for the purchaser;(B) the seller does not indicate or imply in the advertisement, holding out, or statement that the sale is exempt or excluded from taxation; and(C) any purchaser's receipt or other statement given to the purchaser identifying the sales price paid or to be paid by the purchaser separately states the amount of the tax and indicates that the tax will be paid by the seller.(5) Printers. A printer is a seller of printed materials and is required to collect sales and use tax on sales of those materials in this state. A printer who is engaged in business in this state, however, is not required to collect the sales and use tax if:(A) the printed materials are produced by a web offset or rotogravure printing process;(B) the printer delivers those materials to a fulfillment house or to the United States Postal Service for distribution to third parties who are located both inside and outside of this state; and(C) the purchaser issues a properly completed exemption certificate that contains the statement that the printed materials are for multistate use and the purchaser agrees to pay to this state all the sales and use taxes that are or may become due to the state on the taxable items that are purchased under the exemption certificate. See subsection (g)(4) of this section for additional reporting requirements.(6) Fundraisers by exempt entities. Regardless of the contractual terms between a for-profit entity and a non-profit exempt entity relating to the sale of taxable items, other than amusement services, as part of any fundraiser, the for-profit entity will be considered the seller of the items under Tax Code, §151.024 (Persons Who May be Regarded as Retailers), must be a permit holder, and is responsible for the proper collection and remittance of any sales or use tax due. The exempt entity and its representatives will be considered as representatives of the for-profit entity. The for-profit entity may advertise in a sales catalog or state on each invoice that sales and use tax is included, as provided under paragraph (2) of this subsection, or may require that the sales and use tax be calculated and collected by its representatives based on the sales price of each taxable item. Fundraisers conducted by exempt entities in this manner do not qualify as a tax-free sale day. For more information on exempt entities and tax-free sales days, see §3.322 of this title (relating to Exempt Organizations). For more information on amusement services, see §3.298 of this title (relating to Amusement Services).(7) Local sales and use tax. A seller who is required to be permitted in this state is required to properly collect and remit local sales and use tax even if no sales and use tax permit is required at the location where taxable items are sold. For more information on the proper collection of local taxes, see §3.334 of this title.(e) Sales and use tax returns and remitting tax due.(1) Forms prescribed by the comptroller. Sales and use tax returns must be filed on forms that the comptroller prescribes. The fact that a person does not receive or obtain the correct forms from the comptroller does not relieve a person of the responsibility to file a sales and use tax return and to remit the required sales and use tax.(2) Signatures. Sales and use tax returns must be signed by the person who is required to file the sales and use tax return or by the person's duly authorized agent, but need not be verified by oath.(3) Permit holders.(A) Each permit holder is required to file a sales and use tax return for each reporting period, even if the permit holder has no sales or use tax to report for the reporting period.(B) Each permit holder must remit sales and use tax on all receipts from sales or purchases of nonexempt taxable items, less any applicable discounts as provided by subsection (h) of this section.(C) Each permit holder shall file a single sales and use tax return together with the tax payment for all businesses that operate under the same taxpayer number. The sales and use tax return for each reporting period must reflect the total sales, taxable sales, and taxable purchases for each outlet.(D) Consolidated reporting by affiliated entities is not allowed. Each legal entity engaged in business in this state is responsible for filing a separate sales and use tax return.(4) Electronic returns and remittances. Certain persons must file returns and transfer payments electronically as provided by Tax Code, §111.0625 (Electronic Transfer of Certain Payments) and §111.0626 (Electronic Filing of Certain Reports). For more information, see §3.9 of this title (relating to Electronic Filing of Returns and Reports; Electronic Transfer of Certain Payments by Certain Taxpayers).(f) Due dates.(1) General rule. Sales and use tax returns and remittances are due no later than the 20th day of the month following each reporting period end date unless otherwise provided by this section. Sales and use tax returns and remittances that are due on Saturdays, Sundays, or legal holidays may be submitted on the next business day.(A) Sales and use tax returns submitted by mail must be postmarked on or before the due date to be considered timely.(B) Sales and use tax returns filed electronically must be completed and submitted by 11:59 p.m., central time, on the due date to be considered timely.(2) Due dates for payments made using an electronic funds transfer method approved by the comptroller are provided at §3.9(c) of this title.(3) Extensions for persons located in an area designated in a state of disaster or state of emergency declaration. The comptroller may grant an extension of not more than 90 days to make or file a sales and use tax return or pay sales and use tax that is due by a person located in an area designated in an executive order or proclamation issued by the governor declaring a state of disaster or state of emergency, or an area that the president of the United States declares a major disaster or emergency, if the comptroller finds the person to be a victim of the disaster or emergency. The person owing the sales and use tax may file a written request for an extension at any time before the expiration of 90 days after the original due date. If an extension is granted, interest on the unpaid tax does not begin to accrue until the day after the day on which the extension expires, and penalties are assessed and determined as though the last day of the extension were the original due date.(g) Reporting periods.(1) Quarterly filers. Permit holders who have less than $1,500 in state sales and use tax per quarter to report may file sales and use tax returns quarterly. The quarterly reporting periods end on March 31, June 30, September 30, and December 31.(2) Yearly filers. Permit holders who have less than $1,000 in state sales and use tax to report during a calendar year may file yearly sales and use tax returns upon authorization from the comptroller.(A) Authorization to file sales and use tax returns on a yearly basis is conditioned upon the correct and timely filing of prior returns.(B) Authorization to file sales and use tax returns on a yearly basis will be denied if a permit holder's liability exceeded $1,000 in the prior calendar year.(C) A permit holder who files on a yearly basis without authorization is liable for applicable penalty and interest on any previously unreported quarter.(D) Authority to file on a yearly basis is automatically revoked if a permit holder's state sales and use tax liability is greater than $1,000 during a calendar year. The permit holder must file a sales and use tax return for that month or quarter, depending on the amount, in which the sales and use tax payment or liability is greater than $1,000. On that return, the permit holder must report all sales and use taxes that are collected and all accrued liability for the year, and must file monthly or quarterly, as appropriate, thereafter for as long as the yearly sales and use tax liability is greater than $1,000.(E) Once each year, the comptroller reviews all accounts to confirm yearly filing status and to authorize permit holders who meet the filing requirements to file yearly sales and use tax returns.(F) Yearly filers must report on a calendar year basis. The sales and use tax return and payment are due on or before January 20 of the next calendar year.(3) Monthly filers. Permit holders who have $1,500 or more in state sales and use tax per quarter to report must file monthly sales and use tax returns except for permit holders who prepay the sales and use tax as provided in subsection (h) of this section.(4) Printers. A printer who is not required to collect sales and use tax on the sale of printed materials because the transaction meets the requirements of subsection (d)(4) of this section must file a quarterly special use tax report, Form 01-157, Texas Special Use Tax Report for Printers, its electronic equivalent, or any form promulgated by the comptroller that succeeds such form, with the comptroller on or before the last day of the month following the quarter. The report must contain the name and address of each purchaser with the sales price and date of each sale. The printer is still required to file sales and use tax returns to report and remit sales and use taxes that the printer collected from purchasers on transactions that do not meet the requirements of subsection (d)(4) of this section.(5) Local sales and use tax. Each permit holder who is required to collect, report, and remit a city, county, special purpose district, or metropolitan transit authority/city transit department sales and use tax must report the amount subject to local sales and use tax on the state sales and use tax return described in subsection (e) of this section.(6) State agencies. Sales and use taxes must be deposited with the comptroller within the time period specified by law for deposit of state funds. State agencies may file sales and use tax returns through electronic reporting methods provided by the comptroller, which allocates total sales and use tax deposits by state and local taxing authority. State agencies that deposit sales and use taxes according to Accounting Policy Statement Number 8 are not required to file a separate sales and use tax return, but must manually allocate total sales and use tax deposits by state and local taxing authority and deposit those amounts in accordance with the policy. Paragraphs (1) - (3) of this subsection do not apply to agencies following Accounting Policy Statement Number 8, as a fully completed deposit request voucher is deemed to be the sales and use tax return filed by these agencies.(7) Refunds on exports. Sellers who refund sales tax on exports based on customs broker certifications should refer to §3.360 of this title (relating to Customs Brokers).(8) Direct payment permit holders. Yearly and quarterly filing requirements, as discussed in this subsection, and prepayment discounts and discounts for timely filing, as discussed in subsection (h) of this section, do not apply to holders of direct payment permits. See §3.288 of this title (relating to Direct Payment Procedures and Qualifications).(9) Non-permitted purchasers. A person who does not hold a sales and use tax permit or a direct payment permit must pay sales or use tax that is due on purchases of taxable items when the sales or use tax is not collected by the seller. The sales or use tax is to be remitted on comptroller Form 01-156, Texas Use Tax Return, its electronic equivalent, or any form promulgated by the comptroller that succeeds such form.(A) A non-permitted purchaser who owes less than $1000 in sales and use tax on all purchases made during a calendar year on which sales and use tax was not collected by the seller must file the return on or before the 20th of January following the year in which the purchases were made.(B) A non-permitted purchaser who owes $1000 or more in sales and use tax on all purchases made during a calendar year on which sales and use tax was not collected by the seller must file a return and remit sales and use taxes due on or before the 20th of the month following the month when the $1000 threshold is reached and thereafter file monthly returns and make sales and use tax payments on all purchases on which sales and use tax is due.(h) Discounts; prepayments; penalties and interest relating to filing sales and use tax returns.(1) Discounts. Unless otherwise provided by this section, each permit holder may claim a discount for timely filing a sales and use tax return and paying the taxes due as reimbursement for the expense of collecting and remitting the sales and use tax. The discount is equal to 0.5% of the amount of sales and use tax due and may be claimed on the return for each reporting period and is computed on the amount timely reported and paid with that return.(2) Prepayments. Prepayments may be made by permit holders who file monthly or quarterly sales and use tax returns. The amount of the prepayment must be a reasonable estimate of the state and local sales and use tax liability for the entire reporting period. \"Reasonable estimate\" means at least 90% of the total amount due or an amount equal to the actual net tax liability due and paid for the same reporting period of the immediately preceding year.(A) A permit holder who makes a timely prepayment based upon a reasonable estimate of sales and use tax liability may retain an additional discount of 1.25% of the amount due.(B) The monthly prepayment is due on or before the 15th day of the month for which the prepayment is made.(C) The quarterly prepayment is due on or before the 15th day of the second month of the quarter for which the sales and use tax is due.(D) A permit holder who makes a timely prepayment must file a sales and use tax return showing the actual liability and remit any amount due in excess of the prepayment on or before the 20th day of the month that follows the quarter or month for which a prepayment was made. If there is an additional amount due, the permit holder may retain the 0.5% reimbursement on the additional amount due, provided that both the sales and use tax return and the additional amount due are timely filed. If the prepayment exceeded the actual liability, the permit holder will be mailed an overpayment notice or refund warrant.(E) Remittances that are less than a reasonable estimate, as described by this paragraph, are not regarded as prepayments and the 1.25% discount will not be allowed. If the permit holder owes more than $1,500 in a calendar quarter, the permit holder is regarded as a monthly filer. All monthly sales and use tax returns that are not filed because of the invalid prepayment are subject to late filing penalty and interest.(3) Penalties and interest.(A) If a person does not file a sales and use tax return together with payment on or before the due date, the person forfeits all discounts and incurs a mandatory 5.0% penalty. After the first 30 days delinquency, an additional mandatory penalty of 5.0% is assessed against the person, and after the first 60 days delinquency, interest begins to accrue at the prime rate, as published in the Wall Street Journal on the first business day of each calendar year, plus 1.0%. For taxes that are due on or before December 31, 1999, interest is assessed at the rate of 12% annually.(B) A person who fails to timely file a sales and use tax return when due shall pay an additional penalty of $50. The penalty is due regardless of whether the person subsequently files the sales and use tax return or whether no taxes are due for the reporting period.(C) A seller who advertises, holds out, or states that the seller will pay the sales and use tax as provided by subsection (d)(4) of this section and makes a sale of a taxable item:(i) is presumed to have received or collected the amount of the sales and use taxes on the sale or storage, use, or consumption in this state of the taxable item;(ii) must hold the amount described by clause (i) of this subparagraph in trust for the benefit of the state; and(iii) is liable to the state for the amount described by clause (i) of this subparagraph plus any accrued penalties and interest on the amount.(i) Reports of alcoholic beverage sales to retailers. Each brewer, manufacturer, wholesaler, winery, distributor, or package store local distributor shall electronically file a report of alcoholic beverage sales to retailers, as that term is defined in §3.9(e)(2) of this title, as provided in that section.(j) Records required for comptroller inspection. See §3.281 of this title and §3.282 of this title.(k) Resale and exemption certificates. See §3.285 of this title (relating to Resale Certificate; Sales for Resale) and §3.287 of this title (relating to Exemption Certificates).(l) Suspension of sales and use tax permit.(1) If a permit holder fails to comply with any provision of Tax Code, Title 2, or with the rules issued by the comptroller under those statutes, the comptroller may suspend the permit holder's sales and use tax permit or permits.(2) Before a permit holder's sales and use tax permit is suspended, the permit holder is entitled to a hearing before the comptroller to show cause why the permit should not be suspended. The comptroller shall give the permit holder at least 20 days notice. The notice will include a statement of the matters asserted and procedures to be followed. A show cause notice for suspension of a sales and use tax permit shall serve as notice that the comptroller may suspend any other sales and use tax permits held by the entity.(3) After a sales and use tax permit has been suspended, a new permit will not be issued to the same person until the person has posted sufficient security and satisfied the comptroller that the person will comply with both the provisions of the law and the comptroller's rules and regulations.(m) Refusal to issue sales and use tax permit. The comptroller is required by Tax Code, §111.0046 (Permit or License), to refuse to issue any sales and use tax permit to a person who:(1) is not permitted or licensed as required by law for a different tax or activity administered by the comptroller; or(2) is currently delinquent in the payment of any tax or fee collected by the comptroller.(n) Cancellation of sales and use tax permits with no reported business activity.(1) Permit cancellation due to abandonment. Any holder of a sales and use tax permit who reported no business activity in the previous calendar year is deemed to have abandoned the sales and use tax permit, and the comptroller may cancel the sales and use tax permit. \"No business activity\" means zero total sales, zero taxable sales, and zero taxable purchases.(2) Re-application. If a sales and use tax permit is cancelled, the person may reapply and obtain a new sales and use tax permit upon request, provided the issuance is not prohibited by subsection (m) of this section, or by Tax Code, §111.0046.(o) Liability related to acquisition of a business or assets of a business. Tax Code, §111.020 (Tax Collection on Termination of Business) and §111.024 (Liability in Fraudulent Transfers), provides that the comptroller may impose a tax liability on a person who acquires a business or the assets of a business. See §3.7 of this title (relating to Successor Liability: Liability Incurred by Purchase of a Business).(p) Criminal penalties. Tax Code, Chapter 151, imposes criminal penalties for certain prohibited activities or for failure to comply with certain provisions under the law. See §3.305 of this title (relating to Criminal Offenses and Penalties).",
            "sourceNote": "Source Note: The provisions of this §3.286 adopted to be effective December 12, 1996, 21 TexReg 11800; amended to be effective September 25, 2002, 27 TexReg 8952; amended to be effective April 13, 2005, 30 TexReg 2078; amended to be effective December 2, 2007, 32 TexReg 8521; amended to be effective July 11, 2010, 35 TexReg 6085; amended to be effective June 3, 2015, 40 TexReg 3183; amended to be effective August 14, 2016, 41 TexReg 5762; amended to be effective January 1, 2019, 43 TexReg 8133; amended to be effective January 1, 2020, 44 TexReg 8317."
        },
        {
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            "currentRecordId": "208686",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.287",
                "label": "Exemption Certificates"
            },
            "nextRule": {
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                "recordId": "184194",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definition. Exemption certificate--A document that, when properly executed, allows the tax-free purchase of an item that would otherwise be subject to tax. Except as otherwise stated, the exemption certificate described in this section refers to the Texas Sales and Use Tax Exemption Certification, Form 01-339 (Back) or a document substantially in the same format. There is no provision in Tax Code, Chapter 151 (Limited Sales, Excise, and Use Tax) for an exemption number or a tax exempt number to be issued or used in connection with the Texas Sales and Use Tax Exemption Certification, Form 01-339 (Back).(b) Who may issue an exemption certificate. An exemption certificate of the type described in this section may only be issued by one of the following:(1) an organization that has qualified for exemption under Tax Code, §151.309 (Governmental Entities) or §151.310 (Religious, Educational, and Public Service Organizations). See §3.322 of this title (relating to Exempt Organizations); or(2) a person purchasing an item that is exempt under Tax Code, Chapter 151, Subchapter H (Exemptions).(c) Exemptions addressed by other sections of this title: Direct payment permit holders, maquiladoras, agriculture, timber, qualifying data centers, qualified research, prior contracts and sales for resale.(1) Purchasers using direct pay permits should refer to §3.288 of this title (relating to Direct Payment Procedures and Qualifications).(2) Purchasers using maquiladora exemption permits should refer to §3.358 of this title (relating to Maquiladoras).(3) Purchasers claiming an agriculture exemption should refer to §3.296 of this title (relating to Agriculture, Animal Life, Feed, Seed, Plants, and Fertilizer).(4) Purchasers claiming a timber exemption should refer to §3.367 of this title (relating to Timber Items).(5) Purchasers claiming a qualifying data center exemption should refer to §3.335 of this title (relating to Property Used in a Qualifying Data Center or Qualifying Large Data Center Project; Temporary State Sales Tax Exemption).(6) Purchasers claiming a qualified research exemption should refer to §3.340 of this title (relating to Qualified Research).(7) Purchasers claiming a prior contract exemption should refer to §3.319 of this title (relating to Prior Contracts) and §3.334 of this title (relating to Local Sales and Use Taxes).(8) Purchasers claiming a sale for resale exemption should refer to §3.285 of this title (relating to Resale Certificate; Sales for Resale).(d) Accepting an exemption certificate.(1) All gross receipts of a seller are presumed subject to sales or use tax unless a valid and properly completed resale or exemption certificate is accepted by the seller. A properly completed exemption certificate contains the information required by subsection (f) of this section. Resale certificates are addressed in detail in §3.285 of this title.(2) A seller does not owe tax on a sale, lease, or rental of a taxable item if the seller accepts a properly completed exemption certificate in good faith. An exemption certificate is deemed to be accepted in good faith if:(A) the exemption certificate is accepted at or before the time of the transaction;(B) the exemption certificate is properly completed, meaning that all of the information required by subsection (f) of this section is legible; and(C) the seller does not know, and does not have reason to know, that the sale is not exempt. It is the seller's responsibility to be familiar with Texas sales tax law as it applies to the seller's business and to be familiar with the exemptions that are available for the items the seller sells.(3) A person commits an offense if the person: intentionally or knowingly makes a false entry in, or a fraudulent alteration of, an exemption certification; makes, presents, or uses an exemption certificate with knowledge that it is false and with the intent that it be accepted as a valid exemption certificate; or intentionally conceals, removes, or impairs the verity or legibility of an exemption certificate or unreasonably impedes the availability of an exemption certificate.(A) If the tax evaded by the invalid certificate is less than $20, the offense is a Class C misdemeanor.(B) If the tax evaded by the invalid certificate is $20 or more but less than $200, the offense is a Class B misdemeanor.(C) If the tax evaded by the invalid certificate is $200 or more but less than $750, the offense is a Class A misdemeanor.(D) If the tax evaded by the invalid certificate is $750 or more but less than $20,000, the offense is a felony of the third degree.(E) If the tax evaded by the invalid certificate is $20,000 or more, the offense is a felony of the second degree.(4) The seller should obtain the properly executed exemption certificate at the time the transaction occurs. All certificates obtained on or after the date the comptroller's auditor actually begins work on the audit at the seller's place of business or on the seller's records after the entrance conference are subject to verification. All incomplete certificates will be disallowed regardless of when they were obtained.(A) The seller has 90 days from the date written notice is received by the seller from the comptroller, or until a later date agreed to in writing by the comptroller and the seller, referred to in this section as \"the period,\" in which to deliver the certificates to the comptroller. Written notice shall be given by the comptroller no earlier than the filing of a petition for redetermination or claim for refund.(B) For the purposes of this section, written notice given by mail is presumed to have been received by the seller within three business days from the date of deposit in the custody of the United States Postal Service. The seller may overcome the presumption by submitting proof from the United States Postal Service or by other competent evidence showing a later delivery date.(C) Any certificates delivered to the comptroller during the period will be subject to independent verification by the comptroller before any exemptions will be allowed. Certificates delivered after the period will not be accepted and the exemption will not be granted. See §3.282 of this title (relating to Auditing Taxpayer Records) and §3.286 (relating to Seller's and Purchaser's Responsibilities) of this title.(5) A seller may accept a blanket exemption certificate given by a purchaser who purchases only items that are exempt. For information on blanket exemption certificates received for agricultural exemptions, see §3.296 of this title. For information on blanket exemption certificates received for timber items see §3.367 of this title.(6) An exemption certificate is not acceptable when an exemption is claimed because tangible personal property is exported outside the United States. For proper documentation required for proof of export, see §3.323 of this title (relating to Imports and Exports) and §3.360 of this title (relating to Customs Brokers).(7) Exemption certificates are subject to the provisions of §3.281 of this title (relating to Records Required; Information Required). A seller is required to keep exemption certificates for a minimum of four years from the date on which the sale is made and throughout any period in which any tax, penalty, or interest may be assessed, collected, or refunded by the comptroller or in which an administrative hearing or judicial proceeding is pending.(e) Taxable use of items purchased under an exemption certificate; improper use of an exemption certificate.(1) When an item purchased under a valid exemption certificate is used in a taxable manner, whether the use is in Texas or outside the state, the purchaser is liable for payment of sales tax based on the value of the tangible personal property or taxable service for the period of time used. If the exemption certificate was invalid at the time of its issuance, the purchaser owes tax on the original purchase price.(2) The value of tangible personal property is the fair market rental value of the tangible personal property. The fair market rental value is the amount that a purchaser would pay on the open market to rent or lease the tangible personal property for use. If tangible personal property has no fair market rental value, sales tax is due based upon the original purchase price.(3) The value of a taxable service is the fair market value of the taxable service. The fair market value is the amount that a purchaser would pay on the open market to obtain that taxable service. If a taxable service has no fair market value, sales tax is due based upon the original purchase price.(4) At any time, the person who purchased tangible personal property or a taxable service under a valid exemption certificate and is using the tangible personal property or taxable service in a divergent taxable manner may stop paying tax on the value of tangible personal property or taxable service and instead pay sales tax on the original purchase price. When the person elects to pay sales tax on the purchase price, credit will not be allowed for taxes previously paid based on value.(5) Sales tax is not due when a taxable item purchased under a valid exemption certificate is donated to an organization exempt from tax under Tax Code, §151.309 or §151.310(a)(1) or (2), provided the purchaser does not use the donated tangible personal property or the donated taxable service.(6) This subsection is not applicable when an item purchased under Tax Code, §151.318 (Property Used in Manufacturing) is used in a taxable manner. A purchaser who uses such items in a taxable manner is liable for sales or use tax and should refer to §3.300 of this title (relating to Manufacturing; Custom Manufacturing; Fabricating; Processing).(f) Content of an exemption certificate. An exemption certificate must show:(1) the name and address of the purchaser;(2) a description of the item to be purchased;(3) the reason the purchase is exempt from tax;(4) the signature of the purchaser and the date; and(5) the name and address of the seller.(g) Purchases of taxable items by agents of the Federal Deposit Insurance Corporation (FDIC). The FDIC may purchase items tax-free for use in operating a property or business to which it has title. An exemption certificate may be issued by the FDIC or by persons acting as agents for the FDIC when purchasing items that are incorporated into or used on the property or business being managed. The certificate must state that the purchases are being made by or for the FDIC. The FDIC or persons managing property or a business for the FDIC may issue an exemption certificate when:(1) the FDIC provides documentation to the person managing the property or business showing that title to the property or business being managed was transferred to the FDIC; and(2) the FDIC has entered into a written agreement with the person managing the property or business that designates that person as its agent and authorizes that person to make purchases on its behalf. The agreement must be in the person's files for review by the comptroller. It is not necessary to provide a copy of the agreement to suppliers.(h) Form of an exemption certificate. An exemption certificate must be in substantially the form of a Texas Sales and Use Tax Exemption Certification, Form 01-339 (Back). Copies of the form may be obtained from the Comptroller of Public Accounts, Tax Policy Division or by calling 1-800-252-5555. The form is also available online at https://comptroller.texas.gov/forms/01-339.pdf.",
            "sourceNote": "Source Note: The provisions of this §3.287 amended to be effective November 18, 1981, 6 TexReg 4064; amended to be effective November 19, 1984, 9 TexReg 5717; amended to be effective November 24, 1987, 12 TexReg 4198; amended to be effective February 19, 1990, 15 TexReg 657; amended to be effective September 10, 1991, 16 TexReg 4681; amended to be effective December 28, 1993, 18 TexReg 9312; amended to be effective February 7, 1996, 21 TexReg 599; amended to be effective May 14, 2018, 43 TexReg 3100; amended to be effective April 26, 2022, 47 TexReg 2293."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=184194&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "184194",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.288",
                "label": "Direct Payment Procedures and Qualifications"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=93338&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "93338",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Qualified consumers may give a direct payment blanket exemption certificate in lieu of the taxes imposed by the Tax Code, Chapter 151, for taxable items which they purchase for their own use and which items will not be resold in any manner.(b) All applicants for a direct payment permit must comply with the following conditions, prerequisites, and qualifications.(1) The applicant must be annually purchasing at least $800,000 worth of taxable items for the person's own use and not for resale. A statement to this effect must be submitted to the comptroller. Adequate records must be available to support this statement. The statement must accompany the application for a direct payment permit.(2) The applicant must  be able to  establish to the satisfaction of the comptroller that the applicant is a responsible person and that the applicant's accounting methods clearly distinguish between taxable and nontaxable purchases. A clear statement of the accounting method intended to be used must accompany the application for a direct payment permit.(3) The applicant must agree to accrue and pay all taxes imposed by the Tax Code, §151.101, on the direct payment return for items not specifically exempted and to make the payments to the state on or before the 20th day of the month following each monthly period in which the items become subject to the tax by reason of use or consumption in this state. A written agreement to this effect must be furnished to the comptroller, and it must be  signed and returned along with the application for a direct payment permit.(4) The applicant must agree to give a resale certificate (as opposed to a direct payment exemption certificate) for any taxable item that will be resold as provided by the Tax Code, §151.054 or §151.104.(c) Applicants for a direct payment permit should write to the Comptroller of Public Accounts of the State of Texas, Austin, Texas 78774, requesting that an application be forwarded to them.(d) Any consumer whose direct payment  permit is either voluntarily forfeited or canceled by action of the comptroller's office must immediately notify all vendors from whom purchases of taxable items are made advising them that the exemption certificate issued  to them pursuant to the direct payment permit is no longer valid. Failure to give notification is a violation of the Limited Sales, Excise, and Use Tax Act.(e) A direct payment permit is issued to a legal entity, including all branches and divisions purchasing taxable items. A direct payment exemption certificate issued to a supplier by one branch or division applies to purchases made by all branches or divisions from the same supplier. Direct payment permit holders may not authorize any other person or firm to purchase any taxable items under their permit. Use by other persons may result in revocation of the permit.(f) Direct payment exemption certificates may be issued to contractors performing separated contracts. The contractor, in this  instance, will purchase the taxable items for resale and accept the direct payment exemption certificate in lieu of charging tax. The contractor may not accept a direct payment exemption certificate in lieu of paying tax on consumables or equipment. In addition, under no circumstances should a direct payment exemption certificate be issued to a contractor performing a lump-sum contract. Direct payment permit holders persisting in this practice may have their permits revoked. For a discussion of lump-sum and separated contracts, see §3.291 of this title (relating to Contractors).(g) Direct payment permit holders may not issue direct payment exemption certificates to persons providing nontaxable services.(h) When a direct payment permit holder is doing  business with a person who may be selling taxable items as well as nontaxable services, the direct payment exemption certificate must indicate that it does not cover any nontaxable services that the servicer may provide.(i) If storage facilities contain taxable items purchased under a direct payment exemption certificate and at the time of storage it is not known whether the taxable items will be used in Texas, then the taxpayer may elect to report the use tax either when the taxable items are first stored in Texas or are first removed from inventory for use in Texas, as long as use tax is reported in a consistent manner.  Use tax is not applicable to purchases of taxable items that are to be transported outside Texas for use solely outside Texas or on purchases of  taxable items that are to be processed, fabricated, or manufactured into other property or attached or incorporated into other property and then transported outside Texas for use solely outside Texas. See §3.325 of this title (relating to Refunds and Payments under Protest) and §3.338 of this title (relating to Allowance of Credit for Tax Paid to Suppliers) for refund and credit provisions. See also §3.346 of this title (relating to Use Tax).(j) All direct payment permit holders must file direct payment returns, whether or not they have tax to report. If the permit holder has no city, MTA/CTD, or county tax to report, a zero return must be filed. A direct payment permit will be canceled when annual purchases are less than the amount required. See §3.377 of  this title (relating to Divergent Use of a Direct Payment, Resale, or Exemption Certificate) and §3.427 of this title (relating to Divergent Use of a Direct Payment, Resale, or Exemption Certificate).(k) A blanket exemption certificate described in this section may be given by qualified consumers in lieu of the tax upon purchases from their suppliers. Each exemption certificate must be accompanied by a direct payment permit number.Attached Graphic(l) The holder of a direct payment permit may not make an occasional sale of taxable items under the Tax Code, §151.304(b)(1). See §3.316 of this title (relating to Occasional Sales).",
            "sourceNote": "Source Note: The provisions of this §3.288 adopted to be effective January 1, 1976; amended to be effective May 25, 1979, 4 TexReg 1721; amended to be effective February 13, 1984, 9 TexReg 581; amended to be effective November 5, 1984, 9 TexReg 5929; amended to be effective August 25, 1988, 13 TexReg 3990; amended to be effective September 6, 1990, 15 TexReg 4902."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=93338&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "93338",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.289",
                "label": "Alcoholic Beverage Exemptions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=26767&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "26767",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Exemptions. (1) Sales or use tax is not due on charges for admission to night clubs, dance halls, discos, etc., when the charges are subject to the mixed beverage gross receipts tax under Tax Code, Chapter 183. If the state refunds the mixed beverage gross receipts tax that was previously paid on cover charges, then the cover charges that were not taxed under Tax Code, Chapter 183, are subject to sales tax as a fee for admission to an amusement service. For information on amusement services, see §3.298 of this title (relating to Amusement Services). (2) Sales or use tax is not due on the sale of mixed beverages, including ice or nonalcoholic beverages that are mixed with, or are intended to be mixed with, alcoholic beverages, and gratuities collected on those sales, if the receipts are taxable under Tax Code, Chapter 183. If the state refunds mixed beverage gross receipts tax that was previously paid on mixed beverages, ice, and nonalcoholic beverages, then sales tax is due on the original sales price that was not taxed under Tax Code, Chapter 183. (b) Issuance of exemption certificates. Persons who hold mixed beverage permits, late hour mixed beverage permits, or daily temporary mixed beverage permits issued by the Texas Alcoholic Beverage Commission are entitled to issue exemption certificates to their suppliers in lieu of paying sales tax on the purchase of alcoholic beverages, ice, mixes, and nonalcoholic beverages, if the receipts from the resale of these items are taxable under Tax Code, Chapter 183. (c) Resale. Sales of liquor, wine, beer, or malt liquor from a licensed manufacturer, wholesaler, or distributor to a retailer licensed under Tax Code, Chapter 183, are presumed to be for resale. No resale certificate is required. (d) Complimentary drinks. Any person who provides drinks to others without charge owes sales tax on the cost of the ingredients of the drinks. (e) Private club permittee. (1) Sales or use tax is not due on the sale of mixed beverages, and gratuities collected in connection therewith, if the beverages are served on the premises of the clubs to members or their guests and if the receipts are taxable under Tax Code, Chapter 183. (2) A private club is required to collect sales tax on the sales price of prepared foods, candy, meals, and other food products prepared, served, or sold for immediate consumption, whether or not sold in connection with the serving of alcoholic beverages. Charges for meals or other food products are subject to sales tax and must be separated from the charges for alcoholic beverages served to members and guests. For discussion of food and drinks sold for immediate consumption, see §3.293 of this title (relating to Food; Food Products; Meals; Food Service). (3) A private club must pay sales or use tax on all supply items, equipment, and replacement parts that the club uses or consumes in providing service, except for items that qualify for exemption as manufacturing items, as explained in §3.300 of this title (relating to Manufacturing; Custom Manufacturing; Fabricating; Processing). Also see §3.293 of this title (relating to Food; Food Products; Meals; Food Service). (4) A private club may issue a resale or exemption certificate in lieu of paying sales tax for the purchase of those items furnished to members and guests with beverages, food products, or meals served for immediate consumption. The items must be of a nonreusable nature or qualify for exemption as wrapping or packaging materials that are used to wrap or package processed food and beverages. See §3.293 of this title (relating to Food; Food Products; Meals; Food Service) and §3.314 (relating to Wrapping, Packing, Packaging Supplies, Containers, Labels, Tags, Export Packers, and Stevedoring Materials and Supplies). (f) Fraternal and veteran's organizations. (1) Fraternal and veteran's organizations that do not qualify for a private club exemption certificate may purchase beer, wine, or ale tax free from a distributor or other retailer only when the organization holds and maintains a valid retail dealer's on premise license, issued under Texas Alcoholic Beverage Code, §69.01, or a valid wine and beer retailer's permit, issued under Texas Alcoholic Beverage Code, §26.01. In addition to either of the above licenses, the organization must possess and publicly display a limited sales tax permit as a retailer. When an organization holds the required license and permit, it must collect sales tax on all taxable sales of beer, wine, or ale. (2) When a fraternal or veteran's organization that purchases or sells alcoholic beverages does not hold either of the retail licenses issued by the Texas Alcoholic Beverage Commission, it must pay sales tax on its purchases of alcoholic beverages. (g) Certificates required. A seller is required to collect sales tax on the sale of taxable items, unless the seller accepts, in good faith, an exemption or resale certificate from the purchaser, or the exception for resale in subsection (c) of this section applies, or the sale is exempt because it is subject to mixed beverage gross receipts tax under Tax Code, Chapter 183. See §3.285 of this title (relating to Resale Certificate; Sales for Resale) and §3.287 of this title (relating to Exemption Certificates).  Attached Graphic",
            "sourceNote": "Source Note: The provisions of this §3.289 adopted to be effective January 1, 1976; amended to be effective March 24, 1978, 3 TexReg 816; amended to be effective August 11, 1978, 3 TexReg 2562; amended to be effective October 19, 1984, 9 TexReg 5162; amended to be effective September 4, 1990, 15 TexReg 4834; amended to be effective March 27, 2002, 27 TexReg 2238."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=26767&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "26767",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.290",
                "label": "Motor Vehicle Repair and Maintenance; Accessories and Equipment Added to Motor Vehicles; Moveable Specialized Equipment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=136684&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "136684",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Accessories--Nonessential tangible personal property attached to a motor vehicle for the convenience or comfort of the operator or passengers, or to assist or aid in the transportation, loading, or unloading of tangible personal property. Examples include car radio, air conditioner, refrigerator on a meat van, or a concrete mixer.(2) Agreed contract price for materials--The price specified in the contract for the materials plus any additional charges directly attributable to the materials. For example, the cost of transportation of the materials, profit calculated as a percentage of the cost of materials, or markup or handling charges related directly to the materials charge, is included in the agreed contract price. A charge calculated as a percentage of the total contract cost will not be considered a part of the materials' selling price. The agreed contract price of the materials cannot be less than the price the repairman paid for materials.(3) Component--A part of a motor vehicle such as tires, batteries, shock absorbers, and mufflers or a motor vehicle system such as the suspension, electrical, or cooling systems necessary to the proper operation of a motor vehicle and including any part of the chassis or body.(4) Consumable supplies--Tangible personal property, except natural gas and electricity, used directly in a repair operation or in the repair area, which after used for its intended purpose, is completely used up, or which is not retained or reusable by the person providing the service. Consumable supplies do not include office supplies or other tangible personal property used in the general operation of the business.(5) Equipment attachment--A part attached to a motor vehicle which is neither a component, nor an accessory, but which may be cargo that the vehicle transports, such as a welder, crane, compressor, or other type equipment.(6) Extended warranty or service policy--This contract is sold to the buyer of the product for an additional amount. The provisions of the contract become effective after the manufacturer's warranty expires.(7) Install or installation--To set tangible personal property in place for use or service. Install or installation does not include:(A) the removal and/or replacement of a defective or broken part of a motor vehicle; or(B) the addition of tangible personal property causing a change in the motor vehicle that constitutes remodeling.(8) Lump-sum contract--A written agreement in which the agreed price for doing a job is one lump-sum amount and in which the charges for materials are not separate from the charges for skill and labor. Separated invoices issued to the customer will not change a written lump-sum contract into a separated contract unless the terms of the contract require separated invoices.(9) Maintenance--All work on operational and functioning motor vehicles necessary to sustain or support safe, efficient, continuous operations, or to keep in good working order by preventing the decline, failure, lapse, or deterioration of the motor vehicles.(10) Manufacturer's written warranty--A guarantee by the manufacturer that the product at the time of sale is operable and will remain operable for a specified period of time. The manufacturer's warranty is provided without additional cost to the buyer.(11) Motor vehicle--A self-propelled unit designed to transport property separate from itself or persons other than the driver upon the public highways. The term also includes trailers, semi-trailers, and house trailers. A unit which meets the definition of a \"motor vehicle\" does not lose its identity as a motor vehicle if tangible personal property is added to the vehicle allowing the unit to perform a specialized function but prohibits the vehicle from transporting separate property or persons other than the driver. An example of this would be a flatbed truck upon which oil well servicing equipment is attached. All motor vehicles are subject to the provisions of the Tax Code, Chapter 152.(12) Moveable specialized equipment--A unit designed and built specifically to perform a specialized function which does not include transporting property separate from itself or persons other than the driver is not a motor vehicle. Examples of moveable specialized equipment meeting these criteria are motorized cranes, motorized oil well servicing units, and mobile auto crushers. Moveable specialized equipment is subject to the provisions of the Tax Code, Chapter 151.(13) Remodel--To modify the style, shape, or form of motor vehicles belonging to another.(14) Repair--To mend or restore to working order or operating condition a motor vehicle that was broken, worn, damaged, defective, or malfunctioning.(15) Repairman--For the purposes of this section, any person who, operating under a lump-sum or separated contract, restores, repairs, or replaces an inoperable or malfunctioning component of a motor vehicle.(16) Separated contract--A written agreement which is divided into a separately stated price for materials and a separately stated price for skill and labor. If prices of materials and labor are separately stated, the fact that the charges are added together and a sum total given is irrelevant. When the contract itself does not contain specific amounts for materials and labor, but provides that all invoices will separate the charges for materials from the charges for skill and labor, the contract will be regarded as a separated contract.(b) Sale and installation. Except when replacing a defective or inoperative component or accessory, a person engaged in the sale and installation of motor vehicle component parts and accessories must collect sales tax on the price charged for the parts, accessories, and installation. The removal and replacement of defective, worn, or unsafe accessories or components is a repair and not a sale and installation.(1) Except when replacing a defective or inoperative component or accessory, the total charge for the sale and installation of an accessory or a component is subject to tax regardless of whether the charge is lump-sum or separated.(2) The replacement of a defective or inoperative component or accessory is a repair of a motor vehicle. The tax responsibility of the persons repairing motor vehicles is covered in subsections (g) and (h) of this section. The repair of a motor vehicle component or of an accessory is considered the repair of a motor vehicle.(3) The repair of equipment attachments is considered the repair of tangible personal property and is taxed according to §3.292 of this title (relating to Repair, Remodeling, Maintenance, and Restoration of Tangible Personal Property).(c) Manufacturing. The repair and rebuilding of motor vehicle component parts to be sold is manufacturing and the labor charged is subject to tax whether included in the selling price or stated separately.(d) Repair of motor vehicle components or accessories. A person may repair a motor vehicle component or accessory for the general repairman who is performing general repair work on a motor vehicle.(1) If the person repairing the component or accessory separates the price charged for parts from the repair labor, the general repairman may issue a resale certificate for the parts. The repair labor is not taxable.(2) If the person repairing the component or accessory charges one lump-sum amount for the repair of the component or accessory, the person is a lump-sum repairman under subsection (g) of this section.(e) Federal excise tax. The sales price upon which the tax is based must include any manufacturer's federal excise tax.(f) Fuels. Gasoline, LP gas, diesel, and kerosene are exempt from the sales tax.(g) Responsibilities of repairman of motor vehicles operating under lump-sum repair contracts.(1) Labor to repair motor vehicles is not taxable. A person repairing a motor vehicle for a lump-sum price is not a retailer of a taxable item and may not issue a resale certificate for parts or material used or consumed in such repair.(2) Under a lump-sum contract, the repairman is the ultimate consumer of consumable supplies, tools, equipment, and all materials incorporated into the motor vehicle being repaired. The lump- sum repairman must pay the tax to suppliers at the time of purchase. The repairman will not collect tax from customers on the lump-sum charge or any portion of the charge. Under this type of contract, the repairman will pay the tax on materials even when the property is repaired for an exempt customer.(3) A lump-sum repairman may use materials from inventory that were originally purchased tax free by use of a resale certificate. In those instances, the repairman incurs a tax liability based upon the purchase price of the materials and must report and remit the tax to the comptroller.(h) Responsibilities of repairman of motor vehicles operating under separated repair contracts.(1) Materials. Under a separated repair contract, the repairman of a motor vehicle is a retailer and may issue a resale certificate in lieu of tax to suppliers for materials that will be incorporated into the motor vehicle of the customer; the repairman must then collect tax from the customer on the agreed contract price of the materials, which must not be less than the amount the repairman paid to suppliers. The repairman must obtain a tax permit to be able to issue a resale certificate in lieu of tax when materials are purchased. The repairman may also use materials from inventory upon which tax was paid to the supplier at the time of purchase. In these instances, tax will be collected from the customer on the agreed contract price of the materials as if the materials had been purchased with a resale certificate; however, the repairman will remit tax to the comptroller only on the difference between the agreed contract price and the price paid to the supplier. See §3.338 of this title (relating to Multistate Tax Credits and Allowance of Credit for Tax Paid to Suppliers).(2) Labor. Labor to repair motor vehicles is not taxable.(3) Consumable supplies. A repairman of motor vehicles may issue a resale certificate in lieu of tax to suppliers for consumable supplies as well as materials incorporated into the motor vehicle. The repairman of a motor vehicle must then collect sales tax from customers on the charge for consumable supplies as well as the charge for materials.(4) Tools and equipment. A repairman of a motor vehicle is the ultimate consumer of tools and equipment used which are not incorporated into the motor vehicle being repaired. The repairman must pay tax to suppliers of these items at the time of purchase. The repairman may not collect tax from customers on any charges for these items.(5) Exempt customers. In repairing a motor vehicle belonging to an exempt customer under a separated contract, the repairman may accept an exemption certificate in lieu of collecting tax on materials incorporated into the motor vehicle.(i) Responsibilities of remodelers. Remodelers of motor vehicles are providing taxable services and should refer to §3.292 of this title (relating to Repair, Maintenance, and Restoration of Tangible Personal Property).(j) Manufacturer's warranties.(1) No tax is due on parts or labor furnished by the manufacturer to repair a motor vehicle under a manufacturer's warranty or recall campaign.(2) Records must be kept by the repairman that show that the service and parts were used in repairing an item under a manufacturer's warranty or recall.(3) The repairman may purchase parts to be used in repairs under a manufacturer's warranty or recall tax free by issuing an exemption certificate to the supplier.(k) Extended warranties and service contracts. A repairman performing services under an extended warranty covering a motor vehicle must collect tax on the parts as required under subsection (h) of this section.(l) Maintenance. Tax is not due on the labor to maintain motor vehicles. Refer to subsections (g) and (h) of this section for the repairman's responsibilities for tangible personal property used in maintenance.(m) Accessories and equipment added to motor vehicles.(1) The purchase of a motor vehicle and all accessories and equipment attached thereto at the time of sale is subject to the provisions of the Tax Code, Chapter 152 (motor vehicle sales and use tax).(2) The purchase of accessories and equipment for a motor vehicle attached after the time of sale of the motor vehicle is subject to the provisions of the Tax Code, Chapter 151 (limited sales, excise, and use tax).(3) The purchase of tangible personal property is subject to the provisions of the Tax Code, Chapter 151 (limited sales, excise, and use tax), if no item can be identified as a motor vehicle even if the combination of items of tangible personal property becomes a motor vehicle. If items of tangible personal property are combined to produce a motor vehicle, the initial titling of the motor vehicle in the name of the person who produced the motor vehicle is not subject to the provisions of the motor vehicle sales and use tax. If, however, the motor vehicle is titled in any other person's name, the transfer is subject to the provisions of the motor vehicle sales and use tax.(4) For this purpose, the terms \"accessories\" and \"equipment\" include, but are not limited to, bodies, cement mixers, refrigeration units, fertilizer spreaders, and oil well servicing equipment.(n) Use of resale certificate. For the purposes of this section, the words \"leased\" and \"rented\" are defined by the Tax Code, Chapter 152 (motor vehicle sales and use tax law).(1) Items combined into a motor vehicle. A limited sales tax resale certificate may be used in purchasing tangible personal property to be combined into a motor vehicle held for sale, lease, or rental in the purchaser's regular course of business.(2) Accessories and equipment attached to rental or lease motor vehicles. A limited sales tax resale certificate may be used in purchasing accessories and equipment that are attached to a motor vehicle held for sale, rental, or lease in the purchaser's regular course of business.",
            "sourceNote": "Source Note: The provisions of this §3.290 adopted to be effective December 6, 1996, 21 TexReg 11497."
        },
        {
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            "currentRecordId": "136684",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.291",
                "label": "Contractors"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Agreed contract price of materials incorporated into the realty--The price specified in the contract for the incorporated materials, i.e., tangible personal property that becomes a part of the real property, plus any additional charges directly attributable to the incorporated materials. For example, profit that is calculated as a percentage of the cost of materials, cost of transportation of the materials, and markup or handling charges that relate directly to the materials charge are included in the agreed contract price. A charge that is calculated as a percentage of the total contract cost is not considered a part of the agreed contract price of materials incorporated into realty. The agreed contract price of incorporated materials cannot be less than the price that the contractor paid for the materials.(2) Consumable item--Nondurable tangible personal property that is used to improve realty and, after being used once for its intended purpose, is completely used up or destroyed. Examples of consumable items are nonreusable concrete forms, nonreusable drop cloths, barricade tape, natural gas, and electricity. The term \"consumable item\" does not include machinery, equipment, accessories to machinery or equipment, repair or replacement parts for machinery or equipment, or any rented or leased item.(3) Contractor--Any person who builds new improvements to residential or nonresidential real property, completes any part of an uncompleted new structure that is an improvement to residential or nonresidential real property, makes improvements to real property as part of periodic and scheduled maintenance of nonresidential real property, or repairs, restores, maintains, or remodels residential real property, and who, in making the improvement, incorporates tangible personal property into the real property that is improved. The term includes subcontractors but does not include material men, suppliers, or persons who provide taxable real property services. Persons who provide real property services should refer to §3.356 of this title (relating to Real Property Service). Persons who repair, restore, or remodel nonresidential real property are providing taxable services and should refer to §3.357 of this title (relating to Nonresidential Real Property Repair, Remodeling, and Restoration; Real Property Maintenance). Persons who repair, restore, or remodel chemical plants or petrochemical refineries should refer to §3.362 of this title (relating to Labor Relating to Increasing Capacity in a Production Unit in a Petrochemical Refinery or Chemical Plant).(4) Equipment--Tangible personal property that a contractor uses that is not a consumable item or an incorporated material. Examples include tools, machinery, implements, and accessories and repair or replacement parts for the equipment.(5) Exempt contract--A contract for the improvement of real property with an entity that is exempted under Tax Code, §151.309 or §151.310. An example of an exempt contract is a contract with a nonexempt entity to improve real property for the primary use and benefit of an organization exempted under Tax Code, §151.309 or §151.310, provided that the improvements relate to the exempt purpose of an organization that is exempted under Tax Code, §151.310(a)(1) or (a)(2). Another example is a contract for development work covered under subsection (d) of this section. See §3.322 of this title (relating to Exempt Organizations).(6) Improvements to realty--See §3.347 of this title (relating to Improvements to Realty).(7) Incorporated materials--Tangible personal property that becomes a part of any building or other structure, project, development, or other permanent improvement on or to such real property including tangible personal property that, after installation, becomes real property by virtue of being embedded in or permanently affixed to the land or structure constituting realty and which property after installation is necessary to the intended usefulness of the building or other structure.(8) Lump-sum contract--A contract in which the agreed contract price is one lump-sum amount and in which the charges for incorporated materials are not separate from any charges for skill and labor, including fabrication, installation, and other labor that the contractor performs. For example, guaranteed-maximum contracts are considered lump-sum contracts when the charges for incorporated materials and the charges for skill and all labor are not separately stated. Contracts to improve realty that do not break out all charges for labor, including fabrication labor, are considered lump-sum contracts. For example, a contractor who fabricates and incorporates cabinets into realty under a contract that includes the fabrication labor in the agreed contract price of materials is a lump-sum contractor. Contracts to improve realty that have a zero charge for materials or for labor are considered lump-sum contracts. Separated invoices issued to the customer will not change a lump-sum contract into a separated contract unless the terms of the contract require separated invoices.(9) New construction--All new improvements to real property, including initial finish-out work to the interior or exterior of the improvement. An example is a multiple story building that has had only its first floor finished and occupied. The initial finish-out of each additional floor before initial occupancy or use is new construction. New construction also includes the addition of new usable square footage to an existing building. Examples include the addition of a new wing onto an existing building. Reallocation of existing square footage inside a building is remodeling and does not constitute the addition of new square footage. For example, the removal or relocation of interior walls to expand the size of a room or the finish out of an office space that was previously used for storage is remodeling. Raising the ceiling of a room or the roof of a building is not new construction if new usable square footage is not created.(10) Ready mix concrete contractor--A contractor who manufactures or produces concrete for construction purposes and incorporates the concrete into the property improved.(11) Sale and installation of tangible personal property--Includes a contract to furnish and install machinery, equipment, or other tangible property that is not essential to the building or structure, nor adapted or intended to become a part of the realty, but which incidentally may, on account of its nature, be temporarily attached to the realty without loss of its identity as a particular piece of machinery, equipment, or property and, if attached, is readily removable without substantial damage to the unit or realty or without destruction of the intended usefulness of the realty.(12) Residence or residential property--Property that is used as a family dwelling, a multifamily apartment or housing complex, nursing home, condominium, or retirement home. The term includes homeowners association-owned and apartment-owned swimming pools that are for the use of the homeowners or tenants, laundry rooms for tenants' use, and other common areas for tenants' use. The term does not include hotels or any other facilities that are subject to the hotel occupancy tax.(13) Separated contract--A contract in which the agreed contract price is divided into a separately stated agreed contract price for incorporated materials and a separately stated amount for all skill and labor that includes fabrication, installation, and other labor that is performed by the contractor. If prices of incorporated materials and labor are separately stated in any part of the contract or in a document that becomes part of the contract according to the terms of the contract, adding the charges together to give a sum total does not change the contract into a lump-sum contract. For example, a contract that requires separated invoices is a separated contract. Cost-plus contracts are considered separated contracts if the cost of labor is separately stated from the cost for incorporated materials.(b) Tax responsibilities of contractors who improve real property of nonexempt customers.(1) Equipment. A contractor must pay sales tax at the time of purchase, lease, or rental on the sales price of equipment used to perform a contract. A contractor must accrue and remit use tax on the sales price of equipment purchased, leased, or rented for use in Texas from an out-of-state seller unless the out-of-state seller collected Texas use tax. See §3.346 of this title (relating to Use Tax). Texas allows a credit against Texas use tax when the same property is subject to a legally imposed sales or use tax of another state. See §3.338 of this title (relating to Multistate Tax Credits and Allowance of Credit for Tax Paid to Suppliers).(2) Consumable item. Except as provided by subparagraph (B) of this paragraph, a contractor must pay tax at the time of purchase on consumable items that are not physically incorporated into the customer's property.(A) A contractor may not collect tax from the customer on a charge for consumable items except as provided by subparagraph (B) of this paragraph.(B) A contractor who has a separated contract may issue a properly completed resale certificate to a supplier in lieu of tax for consumable items if title to the consumable items transfers to the contractor's customer at or before the time that the contractor takes possession of the consumable items, and further if the consumable items are immediately marked, labeled, or otherwise physically identified as the customer's property, when practicable. The contractor must separately state the charge for these consumable items to the customer and must collect sales tax from the customer, unless the customer qualifies for exemption under Tax Code, §151.309 or §151.310, or under other provisions that grant the customer exemption from sales tax on its purchases. See §3.322 of this title (relating to Exempt Organizations).(3) Lump-sum contracts.(A) A contractor who performs lump-sum contracts owes tax on all materials, consumable items, equipment, taxable services, and other taxable items that are used by the contractor or incorporated into a customer's property. The contractor must pay tax to suppliers when the contractor purchases, leases, or rents the taxable items. The contractor must accrue and remit use tax on taxable items that are purchased, leased, or rented from an out-of-state seller unless the out-of-state seller collected and gave the contractor a receipt for Texas use tax. The contractor shall not collect from a customer any amount represented to be tax on a lump-sum charge or on any portion of the charge except as provided under subparagraph (E) of this paragraph. A lump-sum contractor must refund to the customer any tax that is collected in error or the contractor must remit the tax to the state. The contractor may not retain such tax.(B) A contractor who, in addition to performing lump-sum contracts, sells, leases, or rents taxable items at retail or performs separated contracts may maintain a tax-free inventory of items that are held for resale. A contractor who, in addition to performing lump-sum contracts, performs nonresidential real property repair, restoration, and remodeling services and resells taxable items as part of those taxable services may also maintain a tax-free inventory of items that are held for resale. See §3.357 of this title (relating to Nonresidential Real Property Repair, Remodeling, and Restoration; Real Property Maintenance). A contractor may issue a properly completed resale certificate instead of paying tax on items that are purchased for a tax-free inventory when the contractor does not know at the time of purchase whether the item will be resold or used in the performance of a lump-sum contract. A contractor must hold a sales tax permit to issue a resale certificate, and must collect, report, and remit tax to the comptroller as required by §3.286 of this title (relating to Seller's and Purchaser's Responsibilities) when the contractor sells, leases, or rents taxable items. A contractor who separately states a charge for equipment that the contractor uses is not renting that equipment to the customer.(C) A contractor who purchases taxable items under a valid resale certificate and uses the items in a taxable manner owes sales or use tax on the items. For example, a contractor who incorporates materials from a tax-free resale inventory into realty under a lump-sum contract must accrue and remit tax based on the purchase price of the materials. The contractor must remit the tax to the comptroller for the reporting period in which the materials were used. A contractor who purchases items that are specifically intended for use in a lump-sum contract may not issue resale certificates in lieu of tax for such items. See §3.285 of this title (relating to Resale Certificates; Sales for Resale).(D) A contractor may not accept a direct payment exemption certificate when the contractor performs a lump-sum contract for a person who holds a direct payment permit. The lump-sum contractor owes tax on all taxable items that are used on the job or that are incorporated into the direct payment permit holder's realty. A direct payment permit holder may not authorize a contractor or any other person to purchase tax free any taxable item through use of the direct payment permit holder's permit. See §3.288 of this title (relating to Direct Payment Procedures and Qualifications).(E) A ready mix concrete contractor must separate the charge for the concrete from other charges associated with the contract, and invoice the customer for each yard of concrete produced and consumed for the improvement of real property. The ready mix concrete contractor may issue a resale certificate in lieu of paying sales tax on taxable items (e.g., processed materials) incorporated into the concrete. The ready mix concrete contractor must collect and remit the tax due on the concrete produced and consumed. The tax rate in effect at the job site location is applied to the greater of the actual invoice price of the component materials or the fair market value of the concrete incorporated into the project. For the purposes of this subparagraph, fair market value is the amount that a purchaser would pay on the open market for concrete. The fair market value will be determined on a case by case basis, taking into consideration relevant factors such as cost of component materials, location of job site, volume, and prices charged by other concrete contractors in the area. Contracts entered into prior to September 1, 2007, are excluded from the requirements of this subparagraph provided the contract terms do not allow for the pass-through of taxes by the ready mix concrete contractor to the purchaser for the duration of the contract period. This subparagraph does not apply to ready mix concrete contractors providing concrete for a public works project.(4) Separated contracts.(A) Except as otherwise provided in this section, a contractor who performs a separated contract is a retailer of all materials that are physically incorporated into the realty that is being improved. As a retailer, the contractor must collect tax from the customer based upon the agreed contract price of the incorporated materials. The tax rate must be applied to the agreed contract price of materials, or to the price of the materials to the contractor, whichever is greater. A contractor who performs a separated contract is also a retailer of taxable services that are sold under the provisions of subparagraph (D) of this paragraph, and of consumable items that are sold under the provisions of paragraph (2)(B) of this subsection. The contractor may accept a properly completed resale or exemption certificate from a customer who claims an exemption.(B) A contractor who performs a separated contract must hold a sales tax permit and collect, report, and remit the tax as required by §3.286 of this title (relating to Seller's and Purchaser's Responsibilities). A contractor who purchases taxable items for resale as part of a separated contract may issue resale certificates to suppliers in lieu of tax. See §3.285 of this title (relating to Resale Certificate; Sales for Resale). A contractor may not issue a resale certificate and must pay tax on the purchase, rental, or lease of equipment that is intended for use in the performance of a contract.(C) A contractor may maintain a tax-paid inventory of materials. If the contractor incorporates tax-paid materials into realty under a separated contract or sells them at retail or transfers the materials to a customer as part of a taxable service, then the contractor must collect tax from the customer based upon the agreed contract price of the materials or upon the sales price of the taxable service. The contractor may claim a credit for tax paid on materials resold to customers. The contractor must remit tax to the comptroller on any difference that exists between the price that the customer paid and the price that the contractor paid.(D) A contractor who performs separated contracts may issue properly completed resale certificates in lieu of tax on taxable services that the contractor resells to its customers. Examples include landscaping, surveying, security services (alarm systems), that are incorporated into the customer's realty, and the final clean-up (janitorial services) of the construction site. The charges for taxable services that are resold to the customer must be separated from the charges for incorporated materials and other charges, and the contractor must collect tax from the customer on charges for the taxable services and incorporated materials. A contractor who performs a separated contract may not issue a resale certificate for a taxable service that the contractor uses or consumes, such as a security service to secure the job site, telecommunication service, and daily clean-up (janitorial service or garbage collection and removal) of the construction site. A contractor who performs residential new construction should refer to paragraph (7) of this subsection.(E) A contractor who improves realty for a direct payment permit holder may accept a properly completed direct payment exemption certificate in lieu of tax on all tangible personal property that is incorporated into the direct payment permit holder's realty. The contractor owes tax on equipment the contractor purchases, rents, or leases for use in the performance of the contract with a direct payment permit holder. See §3.288 of this title (relating to Direct Payment Procedures and Qualifications). A contractor who performs a separated contract may not accept a direct payment exemption certificate in lieu of tax on consumable items unless paragraph (2)(B) of this subsection applies. A contractor who performs a separated contract may accept a direct payment exemption certificate in lieu of tax on taxable services only under the circumstances set out in paragraph (4)(D) of this subsection.(5) Contracts versus bids and change orders. For tax purposes, the terms of a contract control over the terms of a bid. For example, if the bid is lump-sum but the written contract is separated, then the contract determines the tax responsibilities of the parties, and the customer is liable for tax on incorporated materials. The terms of a contract also control change orders. If the contract is lump-sum, then change orders will be treated as lump-sum even if the change orders show charges for incorporated materials separate from other charges. If the contract is separated and change orders are for lump-sum amounts, then the lump-sum amounts will be treated as charges for incorporated materials unless the contractor can reasonably demonstrate the portion attributable to labor.(6) Different types of contracts between contractors and subcontractors. For tax purposes, subcontractors are not required to use the same type of contract as the general contractor. For example, a general or prime contract may be lump-sum, while some or all subcontracts may be separated. Each subcontractor's individual contract governs the subcontractor's tax responsibilities. In the example given, the subcontractors with separated contracts must collect sales tax from the general contractor. The general contractor must not collect any tax from the general contractor's customer. When the general or prime contract separately states labor and incorporated materials but some of the subcontracts are lump-sum, the prime or general contractor should treat the lump-sum charges as part of its separately stated labor charge and should not collect tax from the prime contractor's customer on those charges from lump-sum subcontractors.(7) Real property services. A contractor is not required to pay tax on real property services that are purchased as part of the construction of a new residential structure or as part of an improvement that is located immediately adjacent to the new structure and that is used in the residential occupancy of the structure. The contractor must issue a properly completed exemption certificate or other acceptable documentation to the service provider. If the comptroller subsequently determines that the work is taxable, then the contractor will be liable for all taxes, penalties, and interest that accrue upon such purchases. For the purposes of this paragraph, \"contractor\" includes a builder, developer, speculative builder, or other person who acts as a builder to improve residential real property.(8) Materials that customers provide. A contract may specify that a customer will provide materials and that the person who performs improvements will provide the skill and labor that are necessary to incorporate the materials into realty. Under this type of contract, the person who provides the skill and labor will not incur tax liability on the materials. The customer is liable for the tax on the materials and must pay tax at the time of purchase of the materials.(9) Noninstalled items. A person who manufactures an item for sale but who is not responsible for the incorporation of the item into realty is a manufacturer who is subject to the provisions of §3.300 of this title (relating to Manufacturing; Custom Manufacturing; Fabricating; Processing). For example, cabinet makers who do not affix the cabinets to realty are manufacturers and not contractors.(10) Local tax. A contractor's responsibility for local sales and use taxes depends on the type of contract entered into with the customer.(A) A contractor who has entered into a separated contract with the customer must collect local taxes on the charge for materials based on the location of the job site.(B) A contractor who has entered into a lump-sum contract with the customer is the consumer of all materials used to perform a lump-sum contract.(i) The lump-sum contractor should pay tax to suppliers on all materials at the time of purchase, unless the contractor maintains a valid tax-free inventory or holds a direct pay permit.(ii) When the local sales taxes collected by the supplier are less than the 2.0% local tax cap, additional local use taxes are due based on the location where the goods are first stored or used. Local use tax is not due if the supplier collected a local sales tax for the same type of taxing jurisdiction.(iii) When a lump-sum contractor has items shipped to the jobsite from outside of Texas, the contractor is responsible for accruing local taxes based on the location of the jobsite.(iv) The lump-sum contractor must accrue local use tax based on the purchase price of the taxable item. The local use tax is due in the reporting period in which the item was first stored, used, or otherwise consumed in a local taxing entity.(11) Enterprise projects and defense readjustment projects. In order for an enterprise project or a defense readjustment project to avail itself of certain sales tax refunds, the project must enter into a separated contract, and the charges for items that qualify for enterprise project or defense readjustment project refunds must be separately stated. A contractor who performs a separated contract must collect sales tax from the project on the sales price of the incorporated materials. See §3.329 of this title (relating to Enterprise Projects, Enterprise Zones, and Defense Readjustment Zones).(12) Manufacturing facilities. For a manufacturer to qualify for sales tax exemptions on manufacturing equipment that is installed under a contract to improve real property, the manufacturer must enter into a separated contract. Additionally, the contract must separately state the charge for the qualifying manufacturing equipment. See §3.300 of this title (relating to Manufacturing; Custom Manufacturing; Fabricating; Processing).(c) Tax responsibilities of contractors who perform lump-sum and separated contracts for exempt organizations.(1) Exemption certificates and other required proof of exemption. A contractor must obtain properly completed exemption certificates to document exempt contracts. Written contracts or written purchase orders that are issued by governmental entities exempted under Tax Code, §151.309, are acceptable documentation of exempt contracts.(2) Contractor liability.(A) A contractor may claim an exemption under Tax Code, §151.311, on a purchase of a taxable item for use under a contract to improve realty for an organization that is exempt under Tax Code, §151.309 or §151.310. If the comptroller subsequently determines that the organization is not exempt, then the contractor is liable for all taxes, penalties, and interest that accrue upon such purchase. If the validity of a claimed exemption or the exempt status of the customer is unclear, then the contractor may not accept the exemption certificate in good faith and should request additional evidence of the exempt status of the contract. If the customer claims to be an exempt organization, then a letter of sales and use tax exemption from the comptroller that is addressed to the customer relieves the contractor from further inquiry regarding the exempt status of the customer. See §3.287 of this title (relating to Exemption Certificates).(B) A contract with a private party to improve real property owned by an exempt entity, other than a governmental entity described in Tax Code, §151.309, is not an exempt contract if the improvement to real property is for the primary use and benefit of the private party. However, a contractor in a non-exempt contract may purchase tax free tangible personal property that is used to improve real property owned by a governmental entity described in Tax Code, §151.309, if that tangible personal property is donated to the governmental entity and if the following conditions are satisfied:(i) the contract between the contractor and the private party is a separated contract. See subsection (b) of this section for a discussion of lump-sum and separated contracts;(ii) the contract provides that title to the materials used to perform the contract passes to the private party when the materials are delivered to the job site but before they are incorporated into the realty or used by either the contractor or the private party; and(iii) the contract provides that the private party intends to donate the materials to the governmental entity before the materials are incorporated into the realty or used by the contractor. The private party must provide the contractor with a letter of intent or other document from the governmental entity that states its intent to accept the property.(3) Materials that exempt customers provide. A contract may specify that the exempt customer will provide the materials and the contractor will provide the skill and labor that are necessary to perform the contract. Under this type of contract, the contractor will not incur tax liability on the materials. The exempt customer may issue exemption certificates to suppliers in lieu of tax when purchasing the materials. Materials that are incorporated into real property improvements that are not related to the exempt purpose of the customer exempt under Tax Code, §151.310(a)(1) or (2), are taxable. In this situation, the exempt customer must pay tax to suppliers when purchasing the materials. See also §3.322 of this title (relating to Exempt Organizations).(4) Exempt items. The following items are exempt from sales and use tax when purchased for use in the performance of an exempt contract:(A) tangible personal property that is incorporated into the realty;(B) consumable items that are necessary and essential to the contract and are completely consumed at the job site; and(C) taxable services that are performed at the job site and are:(i) expressly required by the exempt contract to be provided or purchased by the contractor; or(ii) integral to the performance of the exempt contract.(5) Contractor's exemption or resale certificate. A contractor who performs a lump-sum or separated contract may issue a properly completed exemption certificate to a supplier for the purchase of exempt items that are identified in paragraph (4) of this subsection. The certificate must be properly completed and identify the contractor as the purchaser, the exempt entity for whom the improvements are made, and the project for which the items are being purchased. See §3.287 of this title (relating to Exemption Certificates). A contractor may choose to issue a properly completed resale certificate when purchasing materials that will be incorporated into the customer's realty under a separated contract.(6) Equipment. All machinery and equipment, including repair and replacement parts and accessories, that a contractor uses to perform contracts for any exempt entity are taxable. A contractor who purchases, rents, or leases equipment for use on a contract to improve realty for an exempt entity must pay tax on that purchase, rental, or lease.(d) Development work. For the purposes of this subsection, development work means a contract with a private party to improve real property by building public infrastructure, such as roads or sewer lines, provided that the improvements are dedicated to and will be accepted by a governmental entity. To qualify as an exempt contract, the private party must dedicate the realty and the improvements to the governmental entity before the work begins, and the governmental entity must accept or conditionally accept the realty and the improvements.",
            "sourceNote": "Source Note: The provisions of this §3.291 adopted to be effective July 22, 2001, 26 TexReg 5434; amended to be effective May 27, 2008, 33 TexReg 4185."
        },
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            "currentRecordId": "201432",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.292",
                "label": "Repair, Remodeling, Maintenance, and Restoration of Tangible Personal Property"
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Chapter 160 boat--A vessel not more than 115 feet in length, measured from the tip of the bow in a straight line to the stern, that is not a canoe, kayak, rowboat, raft, punt, inflatable vessel, or other watercraft designed to be propelled by paddle, oar, or pole, and that is subject to tax under Tax Code, Chapter 160 (Taxes on Sales and Use of Boats and Boat Motors).(2) Commercial vessel--A vessel that displaces eight or more tons of fresh water before being loaded with fuel, supplies, or cargo, and that is:(A) used exclusively and directly in a commercial or business enterprise or activity, including, but not limited to, commercial fishing; or(B) used commercially for pleasure fishing by individuals who are paying passengers.(3) Consumable supplies--Tangible personal property that is used by a service provider to repair, remodel, maintain, or restore tangible personal property belonging to another; is not transferred into the care, custody, and control of the purchaser of the service; and, having been used once for its intended purpose, is completely used up or destroyed. Examples of consumable supplies include, but are not limited to, canned air used to remove dust from equipment and solvents used to clean equipment parts.(4) Extended warranty or service policy--A contract sold to the purchaser of tangible personal property for an amount in addition to the charge for the tangible personal property, or sold to an owner of tangible personal property, to extend the terms of the manufacturer's written warranty or provide a warranty in addition to or in place of the manufacturer's written warranty.(5) Fabricate--To make, build, create, produce, or assemble components of tangible personal property, or to make tangible personal property work in a new or different manner.(6) Maintain--To perform maintenance.(7) Maintenance--Work performed on operational and functioning tangible personal property that is necessary to sustain or support safe, efficient, continuous operation of the tangible personal property, or is necessary to keep the tangible personal property in good working order by preventing decline, failure, lapse, or deterioration.(8) Manufacturer's written warranty--A manufacturer's guarantee made for no additional charge to the purchaser of an item of tangible personal property that the item is operable and will remain operable for a specified period of time.(9) Processing--The physical application of the materials and labor necessary to modify or to change the characteristics of tangible personal property. The repair of tangible personal property, belonging to another, by restoring it to its original condition is not considered processing of the tangible personal property. The mere packing, unpacking, or shelving of tangible personal property to be sold is not considered to be processing of the tangible personal property. Processing does not include remodeling.(10) Remodel--To modify or remake tangible personal property belonging to another in a similar but different manner, or to change the style, shape, or form of tangible personal property belonging to another, without causing a loss of its identity or without causing it to operate in a new or different manner. Remodeling does not include processing.(11) Repair--To mend or restore to working order or operating condition tangible personal property that was broken, damaged, worn, defective, or malfunctioning.(12) Restore--To return tangible personal property that is still operational and functional, but that has faded, declined, or deteriorated, to its former or original state.(13) Service provider--A person who repairs, remodels, maintains, or restores tangible personal property belonging to another.(14) Vessel--A watercraft, other than a seaplane on water, used, or capable of being used, for navigation and transportation of persons or property on water. The term includes a ship, boat, watercraft designed to be propelled by paddle or oar, barge, and floating dry-dock.(15) Warrantor--A person who has a contractual obligation for a specified period of time to repair, remodel, maintain, or restore tangible personal property belonging to another.(b) Taxability of services to repair, remodel, maintain, or restore tangible personal property.(1) General rule. Except as otherwise provided in this section, service providers who repair, remodel, maintain, or restore tangible personal property belonging to another are providing taxable services. A service provider is a seller and must obtain a sales and use tax permit and collect and remit sales and use tax as provided in §3.286 of this title (relating to Seller's and Purchaser's Responsibilities). Sales or use tax is due from the purchaser on the entire charge for a service to repair, remodel, maintain, or restore tangible personal property, including any separately stated charge for materials, parts, labor, consumable supplies, or equipment. In addition, the purchaser owes sales or use tax on any charge connected to the taxable service, including separately stated charges for inspecting, monitoring, or testing.(A) Aircraft. Service providers who repair, remodel, maintain, or restore aircraft should refer to §3.280 of this title (relating to Aircraft).(B) Motor vehicles. Service providers who remodel motor vehicles are providing taxable services and are covered by this section. Service providers who repair, maintain, or restore motor vehicles should refer to §3.290 of this title (relating to Motor Vehicle Repair and Maintenance; Accessories and Equipment Added to Motor Vehicles; Moveable Specialized Equipment).(C) Vessels. Service providers who repair, remodel, maintain, or restore a vessel that is a Chapter 160 boat, sports fishing boat, or any other boat used for pleasure, and that is not a commercial vessel, are providing taxable services and are covered by this section. Service providers who repair, remodel, maintain, or restore commercial vessels should refer to §3.297 of this title (relating to Carriers, Commercial Vessels, Locomotives and Rolling Stock, and Motor Vehicles).(D) Locomotives and rolling stock. Service providers who repair, remodel, maintain, or restore locomotives or rolling stock should refer to §3.297 of this title.(E) Exempt equipment. A service to repair, remodel, maintain, or restore tangible personal property that, if sold, leased, or rented at the time the service is performed, would be exempt under Tax Code, Chapter 151 (Limited Sales, Excise, and Use Tax) due to its nature or its use is exempt from sales and use taxes. Tax is due on the sale of services to repair, remodel, maintain, or restore tangible personal property that was exempt at the time of purchase but would not be exempt at the time the service is performed. For example, services to repair, remodel, maintain, or restore the following tangible personal property will not qualify for exemption based solely on the fact that such tangible personal property was exempt at the time of its purchase:(i) tangible personal property purchased from an organization exempted from paying sales or use tax under Tax Code, §151.309 (Governmental Entities) or §151.310 (Religious, Educational, and Public Service Organizations);(ii) tangible personal property exempted from use tax because sales tax was paid on the purchase;(iii) tangible personal property acquired tax-free in a transaction qualifying as an occasional sale under Tax Code, §151.304 (Occasional Sales), or as a joint ownership transfer exempted under Tax Code, §151.306 (Transfers of Common Interests in Property). See §3.316 of this title (relating to Occasional Sales; Transfers Without Change in Ownership; Sales by Senior Citizens' Organizations; Sales by University and College Student Organizations; and Sales by Nonprofit Animal Shelters) and §3.331 of this title (relating to Transfers of Common Interests in Tangible Personal Property; Intercorporate Services); or(iv) tangible personal property purchased tax-free during a sales tax holiday as provided by §3.353 of this title (relating to Sales Tax Holiday--Certain Emergency Preparation Supplies), §3.365 of this title (relating to Sales Tax Holiday--Clothing, Shoes and School Supplies) or §3.369 of this title (relating to Sales Tax Holiday--Certain Energy Star Products, Certain Water-Conserving Products, and WaterSense Products).(2) Resale certificates.(A) A service provider may issue a properly completed resale certificate instead of paying sales or use tax on the purchase of tangible personal property that is integral to repairing, remodeling, maintaining, or restoring tangible personal property belonging to another and is transferred to the care, custody, and control of the purchaser of the taxable service. See §3.285 of this title (relating to Resale Certificate; Sales for Resale).(B) A person holding tangible personal property for sale, lease, or rental may issue a properly completed resale certificate in lieu of paying sales or use tax on the purchase of labor and tangible personal property used to repair, remodel, maintain, or restore that tangible personal property. Refer to §3.285 of this title and §3.294 of this title (relating to Rental and Lease of Tangible Personal Property).(3) A service provider working under an agreement that provides that the purchaser of the service will furnish the tangible personal property required for the service must collect sales or use tax on the charge for the service.(4) A service provider may accept a properly completed exemption certificate instead of collecting sales or use tax when performing a taxable service for a purchaser who is exempt from sales and use tax under Tax Code, Chapter 151, or when performing services on tangible personal property that is exempt from sales and use tax. Refer to §3.287 of this title (relating to Exemption Certificates).(c) Consumable supplies and equipment. Sales or use tax must be paid by the service provider on consumable supplies and equipment that are purchased for use in the performance of a service that are not transferred to the care, custody, and control of the customer.(d) Warranties. For information on warranties for the repair of motor vehicles, refer to §3.290 of this title. For information concerning warranties for the repair of aircraft, refer to §3.280 of this title.(1) Manufacturer's written warranty or recall campaign. No sales or use tax is due on tangible personal property or labor furnished by the manufacturer to repair tangible personal property under a manufacturer's written warranty or recall campaign.(A) Records must be kept by the service provider to document that the service and tangible personal property were used in repairing an item under a manufacturer's written warranty or recall campaign.(B) The service provider may purchase tangible personal property to be used in repairs under a manufacturer's written warranty or recall campaign tax-free by issuing an exemption certificate to the seller.(2) Extended warranty or service policy.(A) Sales or use tax is due on the sale of an extended warranty or service policy.(B) The warrantor may issue a resale certificate in lieu of paying sales or use tax on the purchase of taxable items used in performing the services covered by the contract as long as the taxable items are integral to performing the service and the taxable items are also transferred to the care, custody, and control of the purchaser. Refer to §3.285 of this title.(C) If the warrantor uses a third-party service provider to perform the service, the third-party service provider may accept a resale certificate from the warrantor in lieu of sales or use tax.(D) The warrantor must collect sales or use tax on any charge to the purchaser for labor or tangible personal property not covered by the extended warranty or service policy.(E) If the warrantor uses a third-party service provider to fulfill the warranty and the service provider charges the warrantor or the purchaser for tangible personal property or labor not covered under the warranty, the service provider must collect sales or use tax on such charges.(3) Replacements and reimbursements.(A) Trade-in. If the warrantor is a seller of tangible personal property, and if the terms of a manufacturer's or extended warranty agreement provide for either the replacement or the repair, remodeling, maintenance, or restoration of tangible personal property, then tangible personal property accepted by the warrantor under the terms of the warranty in exchange for, or towards the purchase of, tangible personal property of the type sold by the warrantor in the regular course of business will be considered a trade-in. The provisions of Tax Code, §151.007(c)(5) (\"Sales Price\" or \"Receipts\") apply to such a transaction and any amount or credit provided for the trade-in reduces the taxable amount of the sale of the replacement item.(B) The sale of a contract that provides that a warrantor will reimburse a purchaser for payments made to replace, repair, remodel, maintain, or restore faulty, damaged, lost, or stolen tangible personal property, including the amount of any sales and use tax, is not taxable. In addition, the amount reimbursed to the purchaser of the faulty, damaged, lost, or stolen tangible personal property by the warrantor under such a contract is not taxable.(e) Services performed on real property. Persons who build new improvements to real property, or repair, restore, or remodel residential real property belonging to others, should refer to §3.291 of this title (relating to Contractors). Persons who repair or remodel nonresidential real property belonging to others should refer to §3.357 of this title (relating to Nonresidential Real Property Repair, Remodeling, and Restoration; Real Property Maintenance).(f) Fabricating or processing tangible personal property. Persons who fabricate or process tangible personal property belonging to another should refer to §3.300 of this title (relating to Manufacturing; Custom Manufacturing; Fabricating; Processing).(g) Exemption for disaster areas.(1) Labor to repair, restore, remodel, or maintain tangible personal property is exempt if:(A) the amount of the charge for labor is separately stated from any charge for tangible personal property on the invoice, contract, or similar document provided by the service provider to the purchaser; and(B) the service is performed on tangible personal property that was damaged within a disaster area by the condition that caused the area to be declared a disaster area.(2) The exemption does not apply to tangible personal property transferred from the service provider to the purchaser as part of the repair.(3) In this subsection, \"disaster area\" means:(A) an area declared a disaster area by the Governor of Texas under Government Code, Chapter 418 (Emergency Management); or(B) an area declared a disaster area by the President of the United States under 42 United States Code, Chapter 68 (Disaster Relief).(h) Repair services required to protect the environment or conserve energy.(1) Labor to repair, remodel, maintain, or restore tangible personal property is exempt if:(A) the repair, remodeling, maintenance, or restoration is required by statute, ordinance, order, rule, or regulation of any commission, agency, court, or political, governmental, or quasi-governmental entity in order to protect the environment or to conserve energy; and(B) the charge for the labor is itemized separately from the charge for materials furnished.(2) The exemption in paragraph (1) of this subsection does not apply to a lump sum charge for labor and materials.(3) Sixty-five percent of a lump-sum charge for labor and materials for the repair, remodeling, maintenance, or restoration of tangible personal property is exempt if:(A) the repair, remodeling, maintenance, or restoration is required by statute, ordinance, order, rule, or regulation of any commission, agency, court, or political, governmental, or quasi-governmental entity in order to protect the environment or to conserve energy; and(B) the labor and materials are purchased for a health care facility (Health and Safety Code, §108.002) or oncology center.",
            "sourceNote": "Source Note: The provisions of this §3.292 adopted to be effective December 12, 1996, 21 TexReg 11805; amended to be effective December 25, 2000, 25 TexReg 12809; amended to be effective September 5, 2006, 31 TexReg 7133; amended to be effective June 19, 2017, 42 TexReg 3157; amended to be effective October 13, 2020, 45 TexReg 7270."
        },
        {
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            "currentRecordId": "193494",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.293",
                "label": "Food; Food Products; Meals; Food Service"
            },
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                "recordId": "28620",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Bakery--A retail location where more than 50% of sales made are sales of bakery items sold from a display case or counter and consumed off the premises. A retail location is a premise occupied temporarily or permanently by the seller where the seller holds or handles bakery items for retail sale. The term includes a table, booth, or other space rented or leased by a seller within a multi-seller marketplace.(2) Bakery items--Bread, rolls, buns, biscuits, bagels, croissants, pastries, doughnuts, Danish pastries, cakes, tortes, pies, tarts, muffins, bars, cookies, tortillas, and similar items. The term does not include candy, snack items, sandwiches, tacos, or pizzas.(3) Bulk vending machine--A device that contains unsorted items and randomly dispenses goods in approximately equal amounts without selection of a particular item or type of item by the customer.(4) Candy--A confection made with natural or artificial sweeteners. Examples include: candy bars; gum; drops; taffy; nuts, raisins, and fruits that have been candied, crystalized, glazed, or coated with chocolate, yogurt, or caramel; and nuts roasted with a sweetener. The term does not include products used exclusively for cooking, such as chocolate bits and cake sprinkles.(5) Combine--To join two or more food products into a single item.(6) Eating utensils--Tableware implements for cutting or eating food, or an object used as a container intended for drinking. Examples include trays, plates, knives, forks, spoons, glasses, cups, chop sticks, or straws.(7) Food and food ingredients--Substances, whether in liquid, concentrated, solid, frozen, dried, or dehydrated form, that are sold for ingestion or chewing by humans and are consumed for taste, aroma, or nutritional value.(A) Food and food ingredients include food products intended for human consumption, such as the following: cereal and cereal products; milk and milk products, butter, and yogurt; oleomargarine; meat and meat products; poultry and poultry products; fish and fish products; eggs and egg products; vegetables and vegetable products; fruit and fruit products; spices, condiments, and salt; sugar products; coffee and coffee substitutes; tea; juice (if more than 50% fruit or vegetable juice by volume); cocoa and cocoa products; canned foods; snack items; or any combination of these.(B) Food products do not include:(i) alcoholic beverages;(ii) cigarettes, tobacco, or tobacco products;(iii) candy;(iv) ice;(v) water; or(vi) drugs, medicines, tonics, vitamins, dietary supplements, and medicinal preparations in any form. For further information about drugs, medicines, and dietary supplements, see §3.284 of this title (relating to Drugs, Medicines, Medical Equipment and Devices).(8) Food ready for immediate consumption--Food, drinks, or meals prepared, served, or sold by restaurants, lunch counters, hotels, cafeterias, delis, mobile vendors, or other like places of business, that, when sold, require no further preparation by the purchaser prior to consumption; and food sold through vending machines. A grocery store or convenience store that contains a restaurant, lunch counter, deli, or other similar location is a like place of business selling food ready for immediate consumption, but only for items sold at that location.(9) Food sold through vending machines--Food dispensed from a machine or other mechanical device that accepts payment.(10) Mix--To blend two or more food items together into a single item that is more or less a uniform whole, but each ingredient may or may not retain its identity (e.g., potato salad, coleslaw or seafood salad).(11) Mobile vendor--A person who sells food from a motor vehicle, push cart, or any other form of vehicle.(12) Prepared food--Prepared food means:(A) food ready for immediate consumption;(B) food sold in a heated state or heated by the seller;(C) food sold with eating utensils provided by the seller; or(D) two or more food ingredients mixed or combined by the seller for sale as a single item, including items that are sold by weight or volume as a single item, but does not include food that is prepared at an off-site location, refrigerated food that is typically reheated prior to eating, or food that is only cut, repackaged, or pasteurized by the seller.(13) Retirement facility--A facility that provides permanent housing and residence to individuals, a majority of whom are 60 years of age or older.(14) Snack items--Snack items means:(A) breakfast bars, granola bars, nutrition bars, sports bars, protein bars, and yogurt bars, unless they are labeled and marketed as candy;(B) snack mix and trail mix;(C) nuts, but not including pine nuts or nuts that have been candied, crystalized, glazed, coated with chocolate, yogurt, or caramel, or roasted with a sweetener;(D) popcorn;(E) chips, crackers, hard pretzels, pork rinds, and corn nuts;(F) sunflower seeds and pumpkin seeds;(G) ice cream, sherbet, and frozen yogurt; and(H) ice pops, juice pops, sorbet, and other frozen fruit items containing not more than 50 percent fruit juice by volume.(15) Soft drinks--Packaged carbonated and non-carbonated non-alcoholic beverages that contain natural or artificial sweeteners.(A) The term includes mixes that when combined with water become soft drinks, and bottled and canned teas and coffees that contain natural or artificial sweeteners.(B) The term does not include beverages that contain milk or milk products, soy, rice, or similar milk substitutes, or juices that contain more than 50% vegetable or fruit juice by volume.(b) Sales of exempt food products or water.(1) Food and food ingredients are exempt from sales tax unless otherwise taxable under subsection (c) of this section.(2) Water is exempt as explained in §3.318 of this title (relating to Water-Related Exemptions).(c) Taxable sales. The following are subject to sales tax:(1) sales of soft drinks;(2) sales of candy;(3) sales of ice;(4) sales of beer, wine, and other alcoholic beverages unless subject to mixed beverage gross receipts tax and mixed beverage sales tax under Tax Code, Chapter 183 (Mixed Beverage Taxes), or prepared and served by a person holding an airline beverage permit, passenger train permit, or passenger bus permit issued by the Texas Alcoholic Beverage Commission;(5) sales of cigarettes and other tobacco products;(6) vending machine sales of food, soft drinks, and candy as explained in subsection (d) of this section;(7) sales of prepared food as defined in subsection (a)(12) of this section, other than bakery items which are addressed in paragraph (8) of this subsection, including:(A) all food ready for immediate consumption sold by caterers, mobile vendors, or restaurants, fast food outlets, lunch counters, cafeterias, delis, hotels, and other like places of businesses; and(B) all sandwiches ready for immediate consumption, including refrigerated triangle-type sandwiches such as ham, cheese, tuna, egg salad, or chicken salad, but not sales of sandwiches that are frozen or partially frozen and that require thawing or heating by the customer prior to consumption;(8) sales of bakery items at a place of business other than a bakery when sold:(A) in a heated state;(B) with plates or other eating utensils that the seller hands to the customer or the seller places on a tray or plate for the customer; or(C) in conjunction with a taxable meal for which plates or other eating utensils are provided, even if the seller makes a separate charge for the bakery item. For example, a roll served in a restaurant with a meal is taxable even if the roll is served in a napkin rather than directly on the plate; and(9) sales of snack items sold in individual-sized portions.(A) A snack item is sold in an individual sized-portion if the snack item:(i) is labeled as having not more than one serving; or(ii) contains less than 2.5 ounces.(B) Snack items do not include items sold in prepackaged units containing more than one package. For example, a box containing 6 prepacked, single-serving bags of nuts is not a snack item.(d) Vending machine sales. Except as provided in subsection (e) of this section, food, candy, and soft drinks sold through vending machines are taxable. The sales tax is determined as follows:(1) Soft drink and candy vending machine sales. The vending machine operator must remit sales tax on the total gross receipts from sales of soft drinks and candy without any deduction for spoilage, waste, or other losses.(2) Food product vending machine sales. The vending machine operator must remit sales tax on 50% of the total gross receipts from sales of food products without any deduction for spoilage, waste, or other losses. Examples of food products include snack items, milk, tea, coffee, and juice if more than 50% vegetable or fruit juice by volume.(3) Water, including bottled water, spring water, sparkling water, or mineral water, is exempt from sales tax. A vending machine operator is not required to remit sales tax on the receipts from sales of water. Flavored water (carbonated or non-carbonated) is a soft drink and a vending machine operator must remit tax on the total gross receipts for vending machines sales of flavored water.(4) A vending machine operator must place a sign on the vending machine stating that the vended price includes sales tax. If sales tax is included in the price of the taxable item, the vending machine operator may back out the amount of the tax before reporting the taxable sales on the sales tax return. See §3.328 of this title (relating to Optional Reporting Methods for Grocers and Other Vendors).(e) Exempt vending machine sales.(1) Bulk vending machine sales. Food, gum, candy, and toys sold for $0.50 or less from a bulk vending machine, as defined in subsection (a)(3) of this section, are exempt from sales tax. A bulk vending machine operator that has only exempt bulk vending machine sales may choose to obtain a sales tax permit and file sales tax returns so that the operator is able to purchase the gum, candy, or toys tax free for resale by giving the supplier a properly completed resale certificate. If a vending machine operator has both taxable vending machine receipts as explained in subsection (d) of this section, and exempt bulk vending machine sales as explained in this subsection, the operator must keep detailed records showing which items are dispensed from the bulk vending machines.(2) Sales through vending machines operated by certain non-profit organizations.(A) The sale of tangible personal property through a vending machine is exempt from the taxes imposed by this chapter if:(i) the sale is made by a nonprofit organization that is exempt from federal income taxation under Section 501(a), Internal Revenue Code of 1986, by being listed as an exempt organization in Section 501(c)(3) of that code;(ii) the machine is owned by the nonprofit organization; and(iii) the machine is stocked and maintained by individuals with special needs as part of an independent life skills and education program operated by the nonprofit organization.(B) A nonprofit organization that makes a sale exempt from taxation under this section must maintain records demonstrating that the sale is eligible for the exemption.(f) Supplemental Nutrition Assistance Program (SNAP). Food, candy, snack items, and soft drinks are exempt if purchased with SNAP benefits (including a Texas Lone Star debit card) under SNAP (7 U.S.C. Chapter 51) if the item can legally be purchased with SNAP benefits. A seller should apply the amount of SNAP benefits against the purchase of qualifying taxable items first so that the individual receives the best possible benefit from SNAP.(g) Food sale exemptions. Certain organizations may sell prepared food, candy, snack items, and soft drinks tax-free. These tax-free sales are not counted against the two one-day, tax-free sales allowed to certain exempt nonprofit organizations under §3.322 of this title (relating to Exempt Organizations). Tax is due on sales of alcoholic beverages by exempt nonprofit organizations.(1) Sales of food, prepared food, soft drinks, snack items, or candy by a church or at a function of the church are exempt.(2) Sales of food, prepared food, soft drinks, snack items, or candy sold or served by public or private elementary or secondary schools, school districts, bona fide student organizations, booster club or other school support organization, or parent-teacher organizations and associations are exempt if the items are sold or served during a regular school day pursuant to an agreement with the proper school authorities. This exemption includes food, soft drinks, snack items, and candy sold through vending machines.(3) Sales of food, prepared food, soft drinks, snack items, or candy by a parent-teacher organization or association during a fund-raising sale are exempt if the proceeds do not go to the benefit of an individual.(4) Sales of food, prepared food, soft drinks, snack items, or candy by a group associated with a private or public elementary or secondary school are exempt if the sale is part of a fund-raising drive sponsored by the organization for its exclusive use.(5) Sales of food, prepared food, soft drinks, snack items, or candy during an event sponsored or sanctioned by an elementary or secondary school or school district at a concession stand operated by a booster club or other school support organization formed to support the school or school district are exempt, but only if the proceeds from the sales benefit the school or school district.(6) Sales of food, prepared food, soft drinks, snack items, or candy by a member or volunteer for a nonprofit organization devoted to the exclusive purpose of education or religious or physical training of persons under 19 years of age are exempt if the sale is part of a fund-raising drive sponsored by the organization for its exclusive use.(7) Sales of food, prepared food, soft drinks, snack items, or candy served by hospitals, day care centers, summer camps, or other institutions licensed by the state for the care of humans are exempt if sold or served to the patients, children, students, or residents of the facility. Sales of prepared food, soft drinks, snack items sold in individual-sized portions, and candy to visitors or employees of the facility are taxable. Persons confined in correctional facilities operated under the authority, jurisdiction, or under a contract with the State of Texas or its political subdivisions are not exempt and must pay sales tax when they purchase taxable items such as prepared food, candy, snack items in individual-sized portions, soft drinks, and taxable items sold from vending machines. Meals and beverages served without charge to inmates confined in correctional facilities are not taxable.(8) Food, prepared food, soft drinks, snack items, or candy sold or served by a retirement facility to its permanent residents are exempt. Sales of taxable items to visitors or employees of the facility are taxable.(h) Responsibilities of sellers of taxable food and beverages.(1) A seller must collect sales tax on all taxable sales. The seller is required to obtain a sales tax permit, file sales tax returns and remit the tax to the comptroller. See §3.286 of this title (relating to Seller's and Purchaser's Responsibilities, including Nexus, Permits, Returns and Reporting Periods, and Collection and Exemption Rules).(2) A seller must collect sales tax on the total sales price of taxable items, including separately stated charges for preparing, serving, or delivering taxable items, charges for the room or facility in which the meals and beverages are served, and charges for the cost or expense of items such as reusable tables, chairs, tableware, and tablecloths used by the seller in providing the food service. Reusable items that are used by the food service provider (not rented to the customer) may not be purchased tax free for resale.(A) A cash discount (including a discount coupon) allowed by a seller reduces the sales price of a taxable item, and the seller should collect sales tax on the actual amount paid by the customer for the discounted meals or beverages. For example, a seller should charge sales tax on the price of the single meal when accepting a discount coupon that allows the customer to purchase two meals for the price of one.(B) Separately stated charges for mandatory tips or gratuities may be excluded from the sales price if the charges meet the criteria for exclusion as explained in §3.337 of this title (relating to Gratuities). Voluntary tips or gratuities left by customers for food service employees are not subject to sales tax.(3) A seller of taxable items must keep accurate records that clearly identify sales of exempt items and sales of taxable items. The records must separately state charges for the exempt items from the charges for taxable items. Examples of records include sales invoices, receipts, and cash register coding records. If a seller's records do not clearly identify exempt sales from taxable sales, all sales are presumed taxable.(4) A seller must pay sales or use tax on the purchase, lease, or rental of all taxable items unless otherwise exempt under the law. Examples of equipment and supply items taxable to a food service business include, but are not limited to, tables, chairs, reusable place mats, tablecloths, cloth napkins, silverware, dishes, dispensers such as salt and pepper shakers and glass creamers, garbage cans and garbage can liners, janitorial items such as mops and mop holders, grill bricks, aprons, menus and menu inserts, and hand tools such as cooking utensils, cutting knives, and lime squeezers.(5) A seller may give a resale certificate to a supplier for the tax-free purchase of items that are transferred to the customer with the food or beverages. Such items must not be reusable by the seller to qualify for the sale for resale exemption. See §3.285 of this title (relating to Resale Certificates; Sales for Resale). Persons who process food for sale qualify for an exemption on the wrapping and packaging used to package the food for sale and may give an exemption certificate to a supplier. See §3.314 of this title (relating to Wrapping, Packing, Packaging Supplies, Containers, Labels, Tags, Export Packers, and Stevedoring Materials and Supplies). Examples of items qualifying for exemption include disposable paper products, wooden, plastic, and aluminum products that are transferred to the customer. Other examples include cake boxes, lunch boxes, disposable cups, paper and plastic containers, bottle wraps, butter chip trays, disposable paper or plastic plates, plastic knives, forks, and spoons, paper napkins, soda straws, toothpicks, french fry boxes, stir sticks, ice cream sticks, disposable souffle cups, hot dog trays, and other types of disposable trays.(6) A person processing food for sale is a manufacturer and may claim a sales or use tax exemption on purchases of equipment and other taxable items that qualify for exemption under Tax Code, §151.318. For example, a restaurant may claim an exemption on the purchase of an oven or a mixer directly used in baking or mixing. See §3.300 of this title (relating to Manufacturing; Custom Manufacturing; Fabricating; Processing) for further information regarding these exemptions. The exemption in Tax Code, §151.317 for natural gas and electricity used in manufacturing is not applicable when the gas or electricity is used to prepare or store prepared food.(7) As a matter of convenience, a food service business, such as a restaurant selling prepared food, may sell prepared food tax free to a food service employee immediately before, during, or immediately after the employee's shift. This provision applies to employees involved in preparing or serving food at the food service location.(i) Universities, colleges, junior colleges, or other institutions of higher learning. Universities and colleges are required to collect sales tax on taxable sales as explained in subsection (c) of this section. If a charge for meals is not separately stated and is included in a lump-sum price to a student for room and board, sales tax is due on the portion of the lump-sum charge attributable to the taxable meals.(j) Hotels and other places that provide sleeping accommodations. Persons that provide sleeping accommodations to the public, including motels, tourist houses, lodging houses, inns, rooming houses, bed and breakfast places, must collect hotel occupancy tax under Tax Code, Chapter 156.(1) A hotel must collect tax on prepared food.(2) If the charges for prepared food are not separately stated and are billed with the lodging as a lump-sum price, then hotel occupancy tax, not sales tax, is due on the lump-sum charge. See §3.162 of this title (relating to Hotel Occupancy Tax Base and Collection of the Tax).(3) A hotel is not required to collect sales tax on a separately stated charge for use of a hotel meeting room if the charge is unrelated to the sale, provision, or service of prepared food or the sale of other taxable items such as an admission charge for a taxable amusement service. See §3.298 of this title (relating to Amusement Services). The charge for the meeting room is subject to hotel occupancy tax if the meeting room is located in the hotel building where sleeping accommodations are provided.(4) A hotel is required to pay sales tax on its purchase of taxable items (e.g., prepared food purchased from a caterer, soft drinks, candy, ice) provided to guests free of charge as complimentary items. However, a hotel is not required to accrue and pay sales tax on its purchase of exempt food products (loaves of bread, milk, cereal, fruit) even if provided to guests as free complimentary items.(k) Caterers.(1) Caterers are persons engaged in the business of preparing and serving meals, drinks, or other food products at locations designated by customers. A caterer is a seller of prepared food and beverages and must collect sales tax on all charges billed in connection with the sale of taxable meals.(2) A caterer owes tax on the purchase, lease, or rental of such items as tables, chairs, tablecloths, steam tables, and table decorations used in providing catered meals. A caterer may claim a resale exemption on the purchase of nonreusable items transferred to customers and a manufacturing exemption on qualifying equipment, such as mixers, used to prepare the food. See §3.300 of this title for information on qualifying equipment.(3) If a caterer uses a room or facility in a hotel that is subject to hotel occupancy tax, the caterer is required to pay the occupancy tax to the hotel. There is no resale exemption for hotel occupancy tax. In addition, a caterer must collect sales tax on a separately stated charge passed on to the customer for the cost or expense of the room (including the occupancy tax) when billed to a customer as part of the taxable sale of catered meals.(l) For information on the responsibilities of persons who sell and serve mixed alcoholic beverages, see §3.289 of this title (relating to Alcoholic Beverage Exemptions).(m) Grocery stores and convenience stores. Subject to the exemptions described in subsection (b) of this section, grocery stores and convenience stores should collect sales tax on the items listed in subsection (c) of this section. Taxable items include ice, candy, packaged soft drinks, and prepared food. Food and drinks sold in a heated state, fountain drinks, and food sold with eating utensils are considered to be prepared food ready for immediate consumption regardless of the location in the store from which the food is sold. Other food or drinks that can be immediately consumed and that are sold by a restaurant, lunch counter, deli, or other similar location within the store are also considered to be taxable prepared food. For example, a bottle of unsweetened iced tea sold at a grocery store deli is considered to be ready for immediate consumption and is taxable. However, a bottle of unsweetened iced tea sold at the checkout lane of a grocery store is not considered to be food ready for immediate consumption and is not taxable.",
            "sourceNote": "Source Note: The provisions of this §3.293 adopted to be effective September 18, 2006, 31 TexReg 8002; amended to be effective June 5, 2017, 42 TexReg 2938; amended to be effective December 18, 2018, 43 TexReg 8141."
        },
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            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.294",
                "label": "Rental and Lease of Tangible Personal Property"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Financing lease--(A) A written lease contract containing either of the following provisions or conditions at the inception of the contract:(i) title to the property must be transferred to the lessee at the end of the lease; or(ii) an option to purchase the property at a nominal price is available to the lessee at the end of the lease (a price is nominal which is, at the time the contract is executed, estimated to be less than 10% of the fair market value of the property at the time the option is to be exercised).(B) A written lease contract containing either of the following provisions or conditions at the inception of the contract will be presumed to be a financing lease:(i) the lease term is equal to 75% or more of the estimated economic life of the property and the contract makes no provisions for the return of the property to the lessor. For used property, this section does not apply if the beginning of the lease term falls within the last 25% of the total estimated economic life of the lease property; or(ii) the residual value of the leased property is less than 10% of the property's fair market value at the inception of the lease and the contract makes no provisions for the return of the property to the lessor.(C) The presumption outlined in subparagraph (B) of this paragraph that the contract is a financing lease may be rebutted by showing that the contract is not merely a security device, that the property will be usable for its intended purpose at the end of the lease term, and that the lessor in good faith intends to reclaim possession of the property at the end of the lease term or to sell the property at the fair market value or to lease it for its fair market rental value.(2) Lease or rental--A transaction, by whatever name called, in which possession but not title to tangible personal property is transferred for a consideration. In this section, the words lease and rental are used interchangeably.(3) Operator--A person who actively guides, drives, pilots, or steers tangible personal property. A person who provides maintenance, repair, or supervision only is not an operator for the purposes of this section.(4) Operating lease--A lease contract which gives the lessee use of the leased property for a certain period. For the purposes of the sales and use taxes, a written contract in the legal form of a lease will be treated as an operating lease unless it meets the definition of a financing lease. All oral leases will be treated as operating leases.(b) Leases. Tax must be collected from the lessee on all charges contained in the lease unless the charge is separately stated and is nontaxable as provided by this section. See subsection (f) of this section for imposition of tax and time for reporting.(c) Tangible personal property leased with and without an operator.(1) Receipts from the lease of tangible personal property without an operator are taxable.(2) The furnishing of tangible personal property with an operator for which a single charge is made to the customer shall be presumed to be the performance of a service and no tax may be charged to the customer, unless the service is taxable under other provisions of the Tax Code, Chapter 151. Sales or use taxes will be due on the original purchase price of the tangible personal property.(A) The presumption set forth in subsection (c)(2) of this section may not be rebutted solely by one party to the transaction. The presumption may be rebutted by the following criteria which establish a lease of tangible personal property:(i) the customer exercised direct control or supervision over the operator of the tangible personal property; and(ii) the intent of the agreement was to lease a piece of tangible personal property and separately furnish an operator.(B) If it is established that a lessor who made a single charge to customers did in fact make a lease of tangible personal property, the tax will be due on the fair market rental value of the tangible personal property. If this cannot be determined, the tax will be due on the total charge reduced by the charge attributable to the operator determined from lessor's records. If the charge for the operator cannot be determined from the lessor's records or if it seems unreasonable, the comptroller will make a determination of a reasonable operator charge.(3) A transaction in which tangible personal property is furnished with an operator, and the customer is charged separately for tangible personal property and operator, shall be presumed to be the lease of tangible personal property and the separate furnishing of an operator; the receipts from the separate charge for the tangible personal property are taxable. The separate charge for the operator will not be taxable unless a taxable service is being provided.(A) If a nontaxable service is being provided and it is established that the separate charge for the lease of tangible personal property is lower than the tangible personal property's fair market rental value, sales tax will be assessed on the fair market rental value unless the lessor presents convincing evidence to the comptroller as to why the rental charge should be lower than fair market rental value.(B) If it is established that a lessor who separated charges for tangible personal property and operator nevertheless used the tangible personal property to perform a service, sales tax will be assessed on the fair market rental value if the property was purchased under a valid resale certificate. See subsection (j) of this section.(d) Other charges related to lease agreements. Operating and financing lease agreements and related billings may contain a variety of charges in addition to the basic rental/lease charges, including charges that occur subsequent to the rental. All charges related to a lease agreement are taxable unless excluded from tax by this section. Some of these charges and their tax consequences are as follows.(1) Separately stated charges for labor or services rendered in installing, applying, remodeling, servicing, maintaining, or repairing the item being leased are subject to tax.(2) Damage waiver fees are subject to tax. A charge after the rental for repair to the damaged rental item is subject to tax as a taxable service. See §3.292 of this title (relating to Repair, Remodeling, Maintenance, and Restoration of Tangible Personal Property). Charges for items destroyed or lost by a lessee are not taxable. However, if a lessee is required to purchase an item damaged by the lessee, the charge for the damaged item is taxable.(3) All transportation charges billed by the lessor to the lessee related to the leased property are taxable. Charges for transportation billed directly to the lessee by third-party carriers are not taxable. See §3.303 of this title (relating to Transportation and Delivery Charges).(4) Charges in the lease agreement for labor, such as charges for supervision, set-up, hook-up, assembly or disassembly, erection, and dismantling, are included in the lease price and are taxable.(5) A charge imposed for the early termination of the lease is included in the lease price and is taxable.(6) Under an operating lease, any interest charges will be taxable whether or not separately stated unless the interest charge is clearly imposed for late payment or other defaults under the lease.(7) Under a financing lease, charges for interest by the lessor to the lessee will be taxable unless the rate of interest or the actual interest charged is separately stated in a contract, invoice, billing, sales slip, or ticket to the customer.(e) Tangible personal property rented for use on residential and nonresidential jobs.(1) Persons renting equipment for use in the performance of contracts to construct new nonresidential real property or to construct, repair, or remodel residential real property owe tax to the equipment rental company. Tax may not be collected from their customers on a separately stated charge for this reimbursable expense item even if the equipment charges to the customer are separately stated from operator charges. See §3.291 of this title (relating to Contractors).(2) Persons renting equipment for use in the performance of contracts to repair or remodel nonresidential real property owe tax to the equipment rental company. Tax must also be collected from their customers on the total charge for the job including the amount paid for the equipment rental.(3) When both remodeling and new construction are being performed under the same contract, the tax to be collected from customers on the rental charges should be determined as provided by §3.357(b)(7) of this title (relating to Labor Relating to Nonresidential Real Property Repair, Remodeling, Restoration, Maintenance, New Construction, and Residential Property).(f) Imposition of taxes; time for filing; credits.(1) Leases subject to sales tax.(A) An operating lease executed while the property is within the state is subject to sales tax. Tax will be due on the total lease amount for the entire term of the lease regardless of where the property is used if the lessee takes delivery in the state. Any renewal of the contract, extensions, or options exercised while the tangible personal property is outside the state will not be subject to Texas tax unless the property reenters the state.(B) A financing lease executed while the property is within the state is subject to sales tax if the lessee takes delivery in the state. Tax will be due on the total amount of the contract regardless of where the property received in Texas is used during the lease.(2) Leases subject to use tax. Property brought or shipped into the state for use under the terms of a financing lease or an operating lease will be presumed to be subject to use tax. See §3.346 of this title (relating to Use Tax). The use tax will be due on the lease price for the entire term of an operating lease regardless of where the initial contract was executed. Credit will be allowed against any sales or use tax legally imposed and paid to another state. See §3.338 of this title (relating to Multistate Tax Credits and Allowance of Credit for Tax Paid to Suppliers).(3) Method and time for filing reports.(A) Under an operating lease, a lessor must report the rental charges in the period in which they are considered income under the lessor's method of reporting. Under the accrual method of reporting, the rental charges are considered income when the lease amount becomes due under the rental agreement. If the lessor does not collect the tax, the lessee must report the tax in the period in which each lease amount becomes due under the rental agreement.(B) Under a financing lease, the lessor must collect all tax due under the lease at the time the lessee takes possession of the property or when first payment is due from the lessee, whichever is earlier. Tax must be reported on or before the 20th day of the month following the reporting period in which the tax is collected. If the lessor does not collect the tax, the lessee must report the tax due when the lessee takes possession of the property or when first payment is due, whichever is earlier.(C) An out-of-state lessor deriving rental receipts from tangible personal property located in Texas is engaged in business in Texas and is required to collect Texas use tax. Under an operating lease, the use tax must be reported by the lessee if the lessor fails to collect it. The tax must be reported by the lessee based upon the lessee's accounting method used for regular books and records. Under a financing lease, the use tax must be reported by the lessee when the lessee takes possession of the property or when the first payment is due, whichever is earlier.(g) Sales of leased property under operating leases; credit allowed.(1) When a lessee buys the property that the lessee was renting under the terms of an operating lease and the lessor allows credit against the sales price for all or part of the lease payments previously made by the lessee on the same property, tax is not due on the amount allowed as credit if the lessor has collected and remitted tax on the prior rental payments. The lessor must collect the tax on the balance of the sales price based on its method of accounting for sales and use tax purposes.(2) When the lessor sells property to a third party who was not the lessee of that property and allows the third party credit against the sales price for all or part of the lease payments previously made by the former lessee, tax may not be refunded on the amount allowed as credit. The lessor must also collect and report the tax on the sales price of the property to the third party based on its method of accounting for sales and use tax purposes.(h) Assignment of lease payments under operating leases. A lessor may factor or assign to a third party the lessor's right to receive all lease payments due under the agreement with the lessee. At the time the lease agreement is factored or assigned, tax is due on all lease amounts not yet reported. The lessor is responsible for reporting the tax to the comptroller's department in the report period the lease agreement is assigned or factored. No deduction in the amount of tax due and payable by the lessor is allowed if a transfer at a discount is made to a third party. No tax liability is incurred by the purchaser of the lease agreement. This section does not apply to the pledge of lease contracts by a lessor to a third party as loan collateral under the terms of a bona fide loan agreement.(i) Assignment of lease payments and property under operating leases. A lessor may assign to a third party the lessor's right to receive all lease payments due under an agreement with the lessee and, in the same transaction, transfer title to the property covered by the lease. At the time the operating lease contract is assigned and title to the property is transferred to the third party, the third party purchaser must begin collecting and remitting tax on the full amount of the taxable rental charges remaining in the lease. The third party purchaser may issue a resale certificate to the lessor as provided by subsection (j) of this section. Tax must be reported by the third party purchaser as provided by subsection (f)(3)(A) of this section.(j) Sales for resale; resale certificates.(1) The purchaser of property which is to be held for lease within the United States of America, its territories and possessions, or within the United Mexican States may issue a resale certificate in lieu of the sales or use tax at the time of purchase. Mexican retailers who purchase for resale must show their Federal Taxpayers Registry (RFC) identification number for Mexico on the resale certificate and give a copy of their Mexican Registration Form to the Texas seller. However, if the lessor subsequently uses the property in any manner other than the leasing of it, or display or demonstration of it, the lessor becomes liable at the time of the use for sales tax based on the fair market rental value for the period of time used. The fair market rental value is the amount that a lessee would pay on the open market to rent the item for use. If the fair market rental value of the property cannot be ascertained, tax is due on the original purchase price of the property.(2) At any time, the lessor using the property purchased under a resale certificate may stop paying tax on the fair market rental value and instead pay sales tax on the original purchase price. When the lessor elects to pay sales tax on the purchase price, credit will not be allowed for taxes previously paid on the fair market rental value. See §3.285 of this title (relating to Resale Certificate; Sales for Resale).(3) A resale certificate may be issued by a retailer for a repair or replacement part, accessory, or equipment that will be attached to a motor vehicle to be rented or leased under the provisions of the Tax Code, Chapter 152. In this paragraph, the terms \"rental\" and \"lease\" are defined by the Tax Code, Chapter 152, rather than by subsection (a)(2) of this section.(k) Lease of real property with tangible personal property.(1) If a contract for the lease or rental of real property includes the lease or rental of tangible personal property (such as furniture) as part of the agreement, no sales tax is due on the amount charged the tenant for the lease or rental of the tangible personal property. A resale certificate may not be issued and sales or use tax must be paid at the time the tangible personal property is purchased.(2) Sales or use tax is due on the separate lease or rental of tangible personal property by a person or entity not owning or managing the real property in which the tangible personal property is or will be situated. A resale certificate may be issued in lieu of paying the tax at the time of purchase of the tangible personal property for subsequent lease or rental.(l) Other taxes. For information pertaining to tax on motor vehicle rental receipts, refer to sections promulgated under the Motor Vehicle Sales and Use Tax Act.(m) Local tax. For proper collection and allocation of city and transit sales taxes, see §3.374 of this title (relating to Collection and Allocation of the City Sales Tax) and §3.424 of this title (relating to Collection and Allocation of Transit Sales Tax).",
            "sourceNote": "Source Note: The provisions of this §3.294 adopted to be effective January 1, 1976; amended to be effective September 2, 1976, 1 TexReg 2668; amended to be effective March 8, 1977, 2 TexReg 700; amended to be effective November 22, 1977, 2 TexReg 4311; amended to be effective November 14, 1980, 5 TexReg 4321; amended to be effective May 17, 1982, 7 TexReg 1696; amended to be effective December 5, 1984, 9 TexReg 6017; amended to be effective December 6, 1991, 16 TexReg 6756; amended to be effective August 21, 1997, 22 TexReg 7505."
        },
        {
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            "currentRecordId": "183131",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.295",
                "label": "Natural Gas and Electricity"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Crime control and prevention district--A district organized under Local Government Code, Chapter 363 (Crime Control and Prevention Districts), located within the boundaries of a municipality that imposes a sales and use tax on the residential use of natural gas and electricity.(2) Electric utility--Any entity owning or operating for compensation in this state equipment or facilities for producing, generating, transmitting, distributing, selling, or furnishing electricity whose rates for the sale of electric power are set by the Public Utilities Commission under the Public Utility Regulatory Act. The term does not include:(A) a qualifying small power producer or qualifying co-generator, as defined in the Federal Power Act, §3(17)(D) and §3(18)(C), as amended (16 United States Code §796(17)(D) and §796(18)(C)); or(B) any person not otherwise a public utility that owns or operates in this state equipment or facilities for producing, generating, transmitting, distributing, selling, or furnishing electric energy to an electric utility, if the equipment or facilities are used primarily for the production and generation of electric energy for the person's own consumption.(3) Fabrication--To make, build, create, produce, or assemble components of tangible personal property, or to make tangible personal property work in a new or different manner.(4) Fire control, prevention, and emergency services district--A district organized under Local Government Code, Chapter 344 (Fire Control, Prevention, and Emergency Medical Services Districts), located within the boundaries of a municipality that imposes a sales and use tax on the residential use of natural gas and electricity.(5) Manufacturing--Every operation commencing with the first stage of production of tangible personal property and ending with the completion of tangible personal property. The first production stage means the first act of production and it does not include acts in preparation for production. For example, a manufacturer gathering, arranging, or sorting raw material or inventory is preparing for production. When production is completed, maintaining the life of tangible personal property or preventing its deterioration is not a part of the manufacturing process. Tangible personal property is complete when it has the physical properties, including packaging, if any, that it has when transferred by the manufacturer to another. Also see §3.300 of this title (relating to Manufacturing; Custom Manufacturing; Fabricating; Processing).(6) Processing--The physical application of the materials and labor necessary to modify or to change the characteristics of tangible personal property. The property being processed may belong either to the processor or the customer, the only tests being whether the property is processed and whether it will ultimately be sold. Direct use of natural gas or electricity in processing will be referred to as exempt use. Processing does not include remodeling or any action taken to prolong the life of tangible personal property or to prevent a deterioration of the tangible personal property being held for sale. The repair of tangible personal property belonging to another by restoring it to its original condition is not considered processing of that property. The mere packing, unpacking, or shelving of a product to be sold will not be considered to be processing of that product.(7) Remodeling--To make tangible personal property belonging to another over again without causing a loss of its identity, or without causing the property to work in a new or different manner.(8) Residential use--Use of natural gas or electricity in a building or the portion of a building occupied as a residence and includes:(A) use by the owner of a home, apartment complex, housing complex, condominium, campground, recreational vehicle park, nursing home, or retirement home occupied by the owner as a residence;(B) use by a tenant in a home, apartment complex, housing complex, condominium, campground, recreational vehicle park, nursing home, or retirement home occupied by the tenant as a residence under a contract for an express initial term of more than 29 consecutive days. Absent a contract, only the period exceeding 29 consecutive days will be considered residential use, when supported by valid documentation (i.e., receipts, canceled checks, etc.); and(C) use for common areas of an apartment complex, housing complex, condominium, campground, recreational vehicle park, nursing home, retirement home, or homeowners' association, such as use for a recreation room, swimming pool, security gate, or for street lights and exterior lighting in a walkway or parking area.(D) Residential use does not include use in health care or detention facilities, including hospitals, rehabilitation centers, substance abuse treatment centers, psychiatric facilities, prisons, jails, or other detention centers, or use by the owner or operator of a health care or detention facility.(9) Tenant--A person who is authorized by a lease to occupy a dwelling to the exclusion of others and who is obligated under the lease to pay rent. The term does not include a patient or inmate of a health care or detention facility, including a hospital, rehabilitation center, substance abuse treatment center, psychiatric facility, prison, jail, or other detention center.(b) State and local sales and use taxes applicable. The furnishing of natural gas or electricity is a sale of tangible personal property and presumed to be taxable. All the provisions in Tax Code, Chapters 151 (Limited Sales, Excise and Use Tax), 321 (Municipal Sales and Use Tax Act), 322 (Sales and Use Taxes for Special Purpose Taxing Authorities), and 323 (County Sales and Use Tax Act) applying to the sale of tangible personal property, apply to the sale of natural gas or electricity.(c) Exempt uses of natural gas and electricity. Except as provided in subsection (d) of this section, an exemption for natural gas and electricity applies to state and local sales and use taxes imposed by Tax Code, Chapters 151, 321, 322, and 323. Natural gas and electricity are exempted from sales and use taxes when sold for:(1) residential use;(2) use in agriculture, including dairy or poultry operations and pumping for farm or ranch irrigation;(3) direct or indirect use or consumption, including electricity lost in the lines, by an electric utility engaged in the purchase of electricity for resale;(4) use in timber operations, including pumping for irrigation of timberland;(5) direct use in:(A) powering equipment that qualifies for exemption under Tax Code, §151.318 (Property Used in Manufacturing) or §151.3185 (Property Used in the Production of Motion Pictures or Video or Audio Recordings and Broadcasts), (including equipment that is permanently affixed to or incorporated into realty) to process tangible personal property for sale as tangible personal property, other than preparation of or the storage of prepared food, as defined in §3.293 of this title (relating to Food; Food Products; Meals; Food Service);(B) lighting, cooling, and heating in the manufacturing area during the actual manufacturing or processing of tangible personal property for sale as tangible personal property, other than preparation or storage of prepared food;(C) exploring for, producing, or transporting a material extracted from the earth;(D) electrical processes, such as electroplating, electrolysis, and cathodic protection;(E) the off-wing processing, overhaul, or repair of a jet turbine engine or its parts for a certificated or licensed carrier of persons or property;(F) providing, under contract with or on behalf of the United States government or foreign governments, defense or national security-related electronics, classified intelligence data processing and handling systems, or defense-related platform modifications or upgrades;(G) the repair, maintenance, or restoration of rolling stock;(H) a data center that is certified by the comptroller as a qualifying data center under Tax Code, §151.359 (Property Used in Certain Data Centers; Temporary Exemption) in the processing, storage, and distribution of data by a qualifying owner, qualifying operator, or qualifying occupant of the data center; or(I) a large data center project that is certified by the comptroller as a qualifying large data center under Tax Code, §151.3595 (Property Used in Certain Large Data Center Projects; Temporary Exemption) in the processing, storage, and distribution of data by a qualifying owner, qualifying operator, or qualifying occupant of the data center.(d) Local sales and use taxes on natural gas and electricity.(1) Residential use of natural gas and electricity is subject to local sales and use tax in the following local taxing jurisdictions:(A) a municipality which has elected to impose the municipal sales and use tax on the residential use of natural gas and electricity under Tax Code, §321.105 (Residential Use of Gas and Electricity);(B) a fire control, prevention, and emergency services district whose board of directors, by order or resolution, has imposed a sales and use tax on the residential use of electricity under Tax Code, §321.1055 (Imposition of Fire Control or Crime Control District Tax on the Residential Use of Gas and Electricity); or(C) a crime control and prevention district whose board of directors, by order or resolution, has imposed a tax on the residential use of electricity under Tax Code, §321.1055.(2) Natural gas and electricity used in a qualifying data center is subject to local sales and use taxes imposed under Tax Code, Chapters 321, 322, and 323.(e) Use of gas or electricity in an exempt manner by an independent contractor engaged by the purchaser of the gas or electricity to perform one or more of the activities described in subsection (c)(5) of this section is considered use by the purchaser of the gas or electricity.(f) Predominant use.(1) Natural gas or electricity used during a regular monthly billing period for both exempt and taxable purposes under a single meter is totally exempt or taxable based upon the predominant use of the natural gas or electricity measured by that meter. A person who performs a processing, manufacturing, or other exempt function must establish the predominant use of the natural gas or electricity based upon 12 consecutive months of use.(2) If, in the regular course of business, a person performs a processing, manufacturing, or other exempt function only part of the year and a nonprocessing, nonmanufacturing, or other taxable function for the remainder of the year, the predominant use may be established for that period of time the processing, manufacturing, or other exempt function occurs based on the predominant use during that period.(3) When determining the predominant use of natural gas or electricity, utilities used to operate machinery exempt under subsection (c)(5)(A) of this section and for lighting, cooling, and heating in the manufacturing area during actual manufacturing or processing of tangible personal property for sale, as set out in subsection (c)(5)(B) of this section, are exempt. Natural gas and electricity used to operate lighting, cooling, and heating in manufacturing support areas are taxable. Manufacturing support areas include, but are not limited to, storage, engineering, office, accounting, research and development, break, eating, and restroom areas. Natural gas and electricity used in an area open to the public for the purpose of marketing a product ready for sale are taxable. Utilities used to operate other nonproduction machinery or equipment are taxable.(g) Determining predominant use: utility studies.(1) A person claiming a sales tax exemption because the predominant use of natural gas or electricity purchased through a single meter is for processing, manufacturing, fabricating, or another nontaxable use must have a natural gas or electricity utility study performed to establish the predominant exempt use of the natural gas or electricity.(A) The study must list all uses of the utility, both exempt and taxable, the times of usage, the energy used, whether the use was taxable or exempt, and the percentage of exempt use of the natural gas or electricity as determined by the study.(B) Twelve consecutive months of utility usage must be a part of the study.(C) The kilowatt rating or BTU rating, duty factor, where needed for cycling equipment, and electrical or natural gas computations must be certified by a registered engineer or a person with an engineering degree from an accredited engineering college.(D) The owner of the business must certify that all items using natural gas or electricity (depending on which utility is covered by the study) are listed and that the hours of use for each item are correct. The certification of both the engineer and the owner must appear on the face of the study.(E) If a person appoints an agent to act on its behalf, the person must execute a power of attorney clearly stating the agent is attempting to qualify the principal for a sales tax exemption.(2) A person in business less than 12 consecutive months may still apply for a sales tax exemption if a registered engineer or a person with an engineering degree performs a natural gas or electric utility study based upon projected uses of the natural gas or electricity which shows the predominant use to be exempt. A person claiming an exemption based upon projected use must be able to support the claimed exemption with a study of actual use after 12 consecutive months of operation if requested by the comptroller.(3) A natural gas or electric utility study must be completed and on file at the location of the person claiming the exemption at the time an exemption certificate is submitted to the utility company. Without the study, the claim for exemption will be presumed to be invalid.(4) Persons obtaining a sales tax refund from a utility company without a valid study will be assessed tax, penalty, and interest by the comptroller on the full amount of the refund, if the exemption is not proved.(5) The comptroller may request a copy of a natural gas or electric utility study for review, either before or after the sales tax exemption is granted. Neither the comptroller's review of a study nor the utility company's acceptance of an exemption certificate confirms the study's accuracy. If the comptroller subsequently determines a study is incomplete or inaccurate, tax, penalty, and interest will be assessed against the person claiming the exemption to the extent that the predominant use of the natural gas or electricity is taxable.(6) If a person claims a sales tax refund, and the utility study establishing the predominant use of the natural gas or electricity was performed retrospectively, the study must take into account any changes in equipment or other items using utilities, any changes in business activities, and any changes in square footage being served by the meter that occurred during or after the sales or use tax refund period. The comptroller will not accept a predominant use study that cannot be independently verified, such as a predominant use study performed for a closed utility account.(7) This subsection does not apply to persons who use natural gas or electricity for processing, manufacturing, or another exempt function if an industry-wide study for that particular industry reflects that the natural gas or electricity used would always qualify as exempt use. The industry-wide study must be submitted to the comptroller's office for review and approval. A subsequent study may be required if factors relative to the original study change.(8) If a business claiming a sales tax exemption for natural gas or electricity purchases based on predominant use changes its natural gas or electric utility provider, but does not change its natural gas or electricity usage, it is not required to perform a new utility study. A copy of the study must be on file at the business location for which the study was performed, and a properly completed exemption certificate must be filed with the new utility provider before the exemption may be claimed.(h) Exemption certificates.(1) An exempt user may issue an exemption certificate to the utility company to claim a sales tax exemption on its purchase of natural gas or electricity, or request the utility company to refund sales tax paid to the utility company in error. Exempt users may also request a refund of sales and use taxes paid on purchases of natural gas and electricity from the comptroller as provided in §3.325 of this title (relating to Refunds and Payments Under Protest).(2) A natural gas or electricity utility company may only accept an exemption certificate in lieu of tax if the exemption certificate is specific as to the reason for the claimed exemption. For example, if a person is claiming that the predominant use of the utility is for processing, the reason for the exemption must state, \"A valid and complete study has been performed which shows that (insert the actual exempt percentage) of the natural gas or electricity is for processing tangible personal property for sale in the regular course of business.\" For more information regarding the exemption certificates, see §3.287 of this title (relating to Exemption Certificates).(3) If an exemption certificate is fully completed with all information required by this section and bears an original seal of a registered engineer or is attached to a signed statement with an original signature from the owner of the business and a person with an engineering degree from an accredited engineering college, as required by subsection (g) of this section, the utility company is not required to make any additional inquiry before honoring the exemption request.(4) The exemption is valid only as long as the person continues to use natural gas and electricity predominantly for exempt purposes. If the use of the natural gas or electricity changes so that the predominant use becomes taxable, it is the person's responsibility to notify the utility company in writing that the exemption is no longer valid.(5) A person who uses natural gas or electricity solely in a single-family residence is not required to furnish an exemption certificate.(6) A person whose use of natural gas and electricity is in multifamily apartment complexes, housing complexes, nursing homes, or other residential buildings may be required to issue an exemption certificate if one is necessary for the utility company to distinguish exempt residential use from taxable use.(7) A multifamily residential property may issue a blanket exemption certificate for vacant apartments that will be occupied as residences and billed under the property's corporate name or the name of the property owner, if at least one unit in the property is occupied for residential use.(8) A person who claims an exemption for natural gas or electricity used for agricultural or timber operations must provide an exemption certificate to its utility provider that contains the person's Texas Agriculture and Timber Registration Number issued by the comptroller and the expiration date.(9) A qualifying owner, qualifying operator, or qualifying occupant of a qualifying data center or a qualifying large data center project who claims an exemption for natural gas or electricity used for a qualifying data center or used for a qualifying large data center must provide an exemption certificate that contains the Qualifying Data Center or Qualifying Large Data Center Project Registration Number and the Qualifying Owner, Qualifying Operator, or Qualifying Occupant Registration Number issued by the comptroller to its utility provider.(i) Transportation of a material extracted from the earth.(1) Sales or use tax is not due on natural gas or electricity used to transport a material or its components extracted from the earth. Examples of materials or components extracted from the earth would be oil, natural gas, coal or coal slurry, crushed stone, sand and gravel, and water.(2) Sales or use tax is due on natural gas or electricity used to transport products that have been manufactured from a material extracted from the earth. Products which were manufactured from a material extracted from the earth include substances which do not exist in nature or are not components of crude oil, natural gas, coal, or other minerals extracted from the earth.(3) For purposes of this section, a material is not considered to be manufactured when an additive is combined with the material for ancillary reasons, for example, when odorant is added to natural gas.(j) Pipeline safety fees. Sales or use tax is not due on any surcharge for pipeline safety fees added to the existing rates of each investor-owned and municipally owned natural gas distribution company and each natural gas master meter operator pursuant to Texas Utilities Code, §121.211 (Pipeline Safety and Regulatory Fees).(k) Natural gas and electricity purchased by lessors of nonresidential real property.(1) A lessor of nonresidential real property that purchases natural gas or electricity directly from a utility provider is the consumer of the natural gas or electricity, and is making a taxable use of that natural gas or electricity, unless the lessor is otherwise exempt from sales and use tax. See §3.322 of this title (relating to Exempt Organizations). A utility provider may not make a tax-exempt sale for resale to the lessor of the nonresidential real property.(2) A lessor of nonresidential real property may not claim an exemption for the purchase of the natural gas or electricity based on a lessee's exempt status or a lessee's use of the natural gas or electricity.",
            "sourceNote": "Source Note: The provisions of this §3.295 adopted to be effective January 1, 1976; amended to be effective October 25, 1978, 3 TexReg 3571; amended to be effective November 26, 1984, 9 TexReg 5836; amended to be effective February 9, 1987, 12 TexReg 311; amended to be effective February 1, 1988, 13 TexReg 348; amended to be effective January 1, 1990, 14 TexReg 6675; amended to be effective June 25, 1991, 16 TexReg 3195; amended to be effective March 7, 1996, 21 TexReg 1583; amended to be effective September 20, 2000, 25 TexReg 9220; amended to be effective April 13, 2005, 30 TexReg 2082; amended to be effective March 7, 2017, 42 TexReg 1034."
        },
        {
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            "currentRecordId": "28621",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.296",
                "label": "Agriculture, Animal Life, Feed, Seed, Plants, and Fertilizer"
            },
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            "ruleBody": "(a) Sales tax is not due on the receipts from sales of, and the storage, use or consumption of, the following:(1) Horses, mules, work animals, and any form of animal life of a kind the products of which ordinarily constitute food for human consumption.(A) Sales tax is not due on the sale, lease, or rental of horses and mules except when sold, leased, or rented as a part of an amusement service.(B) The term \"work animals\" shall include any animal exclusively used in the following:(i) The production of food for human consumption or other agricultural products held for sale in the regular course of business. Examples: plow animals or sheep dogs.(ii) The aiding of handicapped individuals or the performance of protective services, providing that the animal has been professionally trained for that specific purpose.(C) \"Work animals\" shall not include animals raised, trained, or held as pets or for sport or show.(D) Exemption certificates are not required on sale of horses, mules, or any form of animal life of a kind, the products of which ordinarily constitute food for human consumption. Sales tax is due on the sale of all other animals unless the purchaser provides a valid and properly completed resale or exemption certificate.(2) Hay, corn, oats, and any other type of feed normally consumed by farm and ranch animals, animals that are held for sale in the regular course of business, and wildlife.(A) Included in this section is feed for animals covered by paragraph (1) of this subsection, feed for animals held for breeding purposes whose offspring are held for sale in the regular course of business, and wildlife. Examples of feed purchased for wildlife include deer corn and perishable bait used for commercial, sport and recreational fishing. Feed purchased for an animal that might normally be kept as a pet is taxable. Pets normally include, but are not limited to, dogs, cats, rabbits, hamsters, and tropical fish.(B) All persons selling the type of feed that is normally consumed by farm and ranch animals or wildlife may sell the feed tax free without an exemption certificate. Persons selling food for an animal that might normally be kept as a pet should collect sales tax or accept a valid and properly completed resale or exemption certificate from the purchaser.(3) Seeds and annual plants, the products of which ordinarily constitute food for human consumption, are used to produce feed for animals exempted by this section, or are to be sold in the regular course of business. An exemption certificate is not required when purchasing these items.(4) Fertilizers, fungicides, insecticides, herbicides, defoliants, and desiccants exclusively used or employed on farms or ranches in the production of food for human consumption, feed for any form of animal life, or other agricultural products to be sold in the regular course of business. However, when these particular items are used in commercial storage facilities or other storage facilities that are not operated exclusively by the owner or are not located on the farm or ranch, the exemption is lost and the tax must be remitted on the sales price of the items. Fertilizer is taxable if sold for use on lawns, home gardens, or for any uses other than those listed in this paragraph. See subsection (d) of this section regarding exemption certificates.(5) Machinery or equipment used or employed on farms or ranches exclusively in:(A) the production of food for human consumption, production of grass, production of feed for any form of animal life, or other agricultural products to be sold in the regular course of business; and(B) the building or maintaining of roads and water facilities.(6) Containers, bins, or cages used exclusively to transport:(A) fruit or vegetables from the field or place of harvest to a location where the items are processed, packaged, or marketed; or(B) poultry from a poultry farm to a location where the poultry is processed, packaged, or marketed.(b) Sales tax is not due on machinery and equipment exclusively used in, and pollution equipment required as a result of, the processing, packing, or marketing of agricultural products by an original producer at a location operated by the original producer exclusively for processing, packing, or marketing the original producer's own products.(1) \"Original producer\" means a person who:(A) brings an agricultural product into being and is the owner of the agricultural product from the time it is brought into being until it is processed, packed, or marketed; or(B) is the grower of an agricultural product, exercises predominant operational control over the raising of the agricultural product, and bears a risk of loss of investment in the agricultural product.(2) In order to qualify as an original producer:(A) 50% or more of the agricultural products processed, packed, or marketed at or from the location must be actually produced by the original producer and not purchased or acquired from others; and(B) agricultural products belonging to others, in an amount greater than 5.0% of the total agricultural products processed, packed, or marketed by the producer, may not be processed, packed, or marketed for consideration at or from the location.(3) If a person purchases agricultural products from a grower, processes those products, and subsequently sells the processed products back to the same grower for the purpose of circumventing paragraph (2)(B) of this subsection, the person will not qualify as an original producer.(4) For purposes of determining if 50% or more of the agricultural products were actually grown by the original producer, the period to be reviewed will be the most recently completed calendar year.(A) A producer will be liable for sales tax based on the fair market rental value of machinery and equipment purchased tax free if the producer grew less than 50% of the agricultural products it processed, packed, or marketed. The period of assessment shall be the entire one-year period following the calendar year in which the producer did not meet the 50% criteria, and the assessment will be on the fair market rental value of machinery and equipment used during the period of assessment. The fair market rental value is the amount that a purchaser would pay on the open market to rent the item for use. If the item has no fair market rental value, sales tax is due based upon the purchase price.(B) At any time the producer may stop paying tax on the fair market rental value of the machinery and equipment and instead pay sales tax on the original purchase price. When the person elects to pay sales tax on the original purchase price, credit will not be allowed for taxes previously paid on the fair market rental value.(5) Two or more corporations that operate agricultural activities on the same tract or adjacent tracts of land and that are entirely owned by an individual or a combination of the individual, the individual's spouse, and the individual's children may qualify as an original producer for the purposes of paragraph (1) of this subsection.(6) Machinery and equipment exclusively used in the processing, packing, or marketing of agricultural products by an agricultural cooperative organized under the Agriculture Code, Chapter 52, are not exempt unless the comptroller determines that:(A) the cooperative itself is the original producer of all the agricultural products being processed, packed, or marketed; and(B) the processing, packing, or marketing is being accomplished at a location operated by the cooperative.(c) Persons purchasing trees, shrubs, and ornamental plants for resale are presumed to be marketing these products rather than fostering their growth. The presumption may be overcome by showing that actions were taken that did more than maintain the products prior to sale. An example would be replanting a shrub in a bigger container to encourage growth. Machinery, equipment, and other tangible personal property purchased to maintain the plants prior to sale are taxable.(d) All persons engaged in the business of selling items that are exempt from the sales tax must obtain an exemption certificate from their customers as provided in the Tax Code, §151.155 and §3.287 of this title (relating to Exemption Certificates). The certificate may be a blanket certificate covering all purchases only when the items being sold are of a type or quantity that would not generally be used except on a farm or ranch. An example is farm machinery or fertilizer purchased in bulk. When a seller sells taxable items and items that may qualify for exemption under this section, the seller may either obtain an exemption certificate for each item that qualifies for exemption or obtain a certificate at the time the customer makes an exempt purchase initially and keep that certificate on file. When subsequent exempt purchases are made, the invoice must be stamped with the words, \"Exempt agricultural purposes\" and the customer must sign the invoice.(e) All medications, tonics, restoratives, or other therapeutic preparations for farm and ranch animals that are used exclusively on a farm or a ranch are exempt from sales and use tax. See subsection (d) of this section regarding exemption certificates.(f) A farm or ranch is defined as one or more tracts of land used, either wholly or in part, in the production of crops, livestock, and/or other agricultural products held for sale in the regular course of business. This includes feed lots, dairy farms, poultry farms, commercial orchards, commercial nurseries, and similar commercial agricultural operations. Farm or ranch does not include home gardens or timber operations.(g) The terms machinery or equipment include:(1) expendable supplies, such as hand tools, baling wire and binders twine;(2) lubricants for farm machinery and for motor vehicles not licensed for highway use;(3) nuts, bolts, washers, and other hardware. It also includes materials used on or in buildings, structures, or structural components that are classified as machinery or equipment;(4) repair or replacement parts used exclusively on farm or ranch machinery or equipment. This includes tractor tires, tires used on motor vehicles not licensed for highway use, and tires specifically designated by the manufacturer for farm use or off-highway use only;(5) machinery and equipment used exclusively to maintain equipment that qualifies for exemption under this section;(6) those items specifically designed to be assembled into a machine, such as parts of a pumping system or portable irrigation systems;(7) tangible personal property sold for use as a component of an underground irrigation system;(8) fenceposts, cattleguards, gates, and chutes. However, fenceposts, gates and cattleguards used to enclose private driveways, home lawns, gardens, pools, etc., do not qualify for exemption from tax. These items purchased by persons operating commercial nurseries and greenhouses and similar commercial operations for the purpose of preventing trespassing by the public do not qualify for exemption from tax; and(9) the following items and the materials used to build, construct, or fabricate these items (these items are classified as equipment and are therefore exempt), provided they meet the qualifications set out in this section and have not been previously excluded:(A) fences, pens, gates, cattleguards, and chutes used in connection with raising livestock or production of agricultural products;(B) storage facilities specifically designed for and that can be used only to store bulk fungible commodities regardless of whether the facilities are of a portable or fixed nature. Typical facilities on farms or ranches include petroleum products storage tanks, grain storage bins, refrigerated storage structures for unprocessed fruit, silos, and vehicle-mounted fertilizer spreaders or feed mills (not licensed for highway use). General purpose facilities that are used to store bulk fungible commodities, farm produce or equipment do not qualify for exemption from tax. Only those facilities that cannot be used for any purpose other than the storage of fungible goods qualify as farm equipment;(C) a building or structure that is essentially an item of equipment or machinery necessary for agricultural production if it is specifically designed for such use and cannot be economically used for any other purpose. For example, automated laying houses, farrowing houses, and commercial greenhouses.(h) Sales tax is due on the sale of computer hardware for use on farms and ranches unless specifically designed as a part of production equipment, such as a computer-operated feed mixing device. Computer software that is designed specifically to aid in the production, processing, packing, or marketing of agricultural products of the original producer qualifies for exemption. Computer software used for, but not limited to, household budgeting, payrolls, bookkeeping, educational, or recreational purposes is taxable.(i) Buildings and structural components and/or the materials used to build, construct, or fabricate the following facilities are not exempt from the limited sales and use tax.(1) Buildings include any structures or edifices enclosing a space within their walls, and usually covered by a roof, the purpose of which may be to provide storage, shelter, or housing, or to provide working, office, or sales space (for example, houses, offices, barns, storage facilities, warehouses, garages, and stores).(2) Structural components include those parts of a building or machinery in, on, or adjacent to a building, relating to the operation or maintenance of the building (for example, air conditioning or heating systems). However, if the sole justification for installation is to meet humidity or temperature requirements essential for the operation of other machinery or the processing of plants, animals, or foodstuffs, the structural component is exempt.(j) Ice used on agricultural products.(1) Sales or use tax is not due on ice used to remove field heat from agricultural products.(2) Sales or use tax is not due on bunker ice, top ice, or any ice placed on transportation facilities by growers. For example, ice used inside or outside crates of lettuce to cool the lettuce while being shipped is exempt.(3) Sales or use tax is due on the subsequent icing after the initial icing for the purpose of preservation prior to sale except by the original producer, as that term is defined in subsection (b)(1) of this section.(k) Sales or use tax is not due on ice exclusively used by commercial fishermen on commercial fishing boats in the storing of aquatic species, such as shrimp and other crustaceans, finfish, mollusks, and other similar creatures.",
            "sourceNote": "Source Note: The provisions of this §3.296 adopted to be effective January 1, 1976; amended to be effective May 17, 1978, 3 TexReg 1582; amended to be effective March 30, 1987, 12 TexReg 824; amended to be effective September 5, 1988, 13 TexReg 4134; amended to be effective December 28, 1993, 18 TexReg 9312; amended to be effective March 5, 1996, 21 TexReg 1584; amended to be effective December 6, 1996, 21 TexReg 11498."
        },
        {
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            "currentRecordId": "214091",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.297",
                "label": "Carriers, Commercial Vessels, Locomotives and Rolling Stock, and Motor Vehicles"
            },
            "nextRule": {
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Chapter 160 boat--A vessel not more than 115 feet in length, measured from the tip of the bow in a straight line to the stern, other than a canoe, kayak, rowboat, raft, punt, or other watercraft designed to be propelled only by paddle, oar, or pole. The term includes federally documented vessels, sailboats, personal watercraft, and boats designed to accommodate an outboard motor. The term does not include seaplanes. Seaplanes, and canoes, kayaks, rowboats, rafts, punts, or other watercraft designed to be propelled only by paddle, oar, or pole, are not \"taxable boats\" under Tax Code, Chapter 160 (Taxes On Sales And Use Of Boats And Boat Motors), but are subject to tax under Tax Code, Chapter 151 (Limited Sales, Excise, and Use Tax).(2) Commercial vessel--A vessel that displaces eight or more tons of fresh water before being loaded with fuel, supplies, or cargo, and that is:(A) used exclusively and directly in a commercial or business enterprise or activity, including, but not limited to, commercial fishing; or(B) used commercially for pleasure fishing by individuals who are paying passengers.(3) Common carrier--A person who holds out to the general public a willingness to provide transportation of persons or property from place to place for compensation in the normal course of business.(4) Licensed and certificated common carrier--A person authorized through issuance of a license or certificate by the appropriate United States agency or by the appropriate state agency within the United States to operate a vessel, train, motor vehicle, or pipeline as a common carrier. Certificates of inspection or safety do not authorize a person to operate as a licensed and certificated common carrier.(5) Locomotive--A self-propelled unit of railroad equipment consisting of one or more units powered by steam, electricity, diesel electric, or other fuel, designed solely to be operated on and supported by stationary steel rails or electromagnetic guideways and to move or draw one or more units of rolling stock owned or operated by a railroad. The term includes a yard locomotive operated to perform switching functions within a single railroad yard, but does not include self-propelled roadway maintenance equipment.(6) Marine cargo container--A container that is fully or partially enclosed; is intended for containing goods; is strong enough to be suitable for repeated use; and is specially designed to facilitate the carriage of goods by one or more modes of transportation without intermediate reloading. The term includes the accessories and equipment that are carried with the container. The term does not include trailer chassis, motor vehicles, accessories, or spare parts for motor vehicles.(7) Motor vehicle--A self-propelled vehicle designed to transport persons or property upon the public highway and a vehicle designed to be towed by a self-propelled vehicle while carrying property. The term includes, but is not limited to: automobiles; motor homes; motorcycles; trucks; truck tractors; trailers; semitrailers; house trailers or travel trailers, as defined by §3.72 of this title (relating to Trailers, Farm Machines, and Timber Machines); park models, as defined by §3.481 of this title (relating to Imposition and Collection of Manufactured Housing Tax); trailers sold unassembled in a kit; dollies; jeeps; stingers; auxiliary axles; converter gears; and truck cab/chassis. The term does not include a nonrepairable vehicle and a salvage vehicle, as defined by §3.86 of this title (relating to Destroyed and Repaired Motor Vehicles).(8) Operating exclusively in foreign or interstate coastal commerce--Transporting persons or property between a point in Texas and a point in another state or foreign country. A vessel that travels between a point in Texas and an offshore area or fishing area on the high seas, or between two points in Texas, is not operating exclusively in foreign or interstate coastal commerce.(9) Railroad--A form of non-highway ground transportation of persons or property in the normal course of business by means of trains solely operated on and supported by stationary steel rails or electromagnetic guideways, including, but not limited to:(A) high speed ground transportation systems that connect metropolitan areas;(B) commuter or other short-haul rail passenger service in a metropolitan or suburban area;(C) narrow gauge shortline railroads, including tourist, historical, or amusement park railroads; and(D) private industrial railroads operated on steel rails that connect directly to the national rail system of transportation, but not a private industrial railroad operated on steel rails totally inside an installation that is not connected directly to the national rail system of transportation.(10) Rolling stock--A unit of railroad equipment that is mounted on wheels and designed to be operated in combination with one or more locomotives upon stationary steel rails or electromagnetic guideways owned or operated by a railroad. Examples include, but are not limited to, passenger coaches, baggage and mail cars, box cars, tank cars, flat cars, and gondolas. Rolling stock also includes self-propelled trackmobile rail car movers and roadway maintenance equipment. Rolling stock does not include equipment used for intra-plant transportation or other nontraditional railroad activities and that is mounted on stationary steel rails or tracks but that are not part of, or connected to, a railroad. For example, cranes operated on steel rails or tracks and used to load or unload ships are not rolling stock.(11) Train--One or more locomotives coupled to one or more units of rolling stock that are designed to carry freight or passengers, are operated on steel rails or electromagnetic guideways, and are owned or operated by a railroad.(12) Vessel--A watercraft, other than a seaplane on water, used, or capable of being used, for navigation and transportation of persons or property on water. The term includes a ship, boat, watercraft designed to be propelled by paddle or oar, barge, and floating dry-dock.(b) Carriers generally.(1) Use tax is not due on the storage or use of repair or replacement parts acquired outside of Texas and actually affixed in Texas to a self-propelled vehicle that is used by a licensed and certificated common carrier. Trailers, barges, and semitrailers are not considered to be self-propelled vehicles.(2) Use tax is due on the storage or use of tangible personal property brought into Texas to be assembled into a vehicle used by a common carrier to transport persons or property from place to place, unless the tangible personal property is otherwise exempt from sales and use tax under this section.(3) Sales tax is not due on the sale of tangible personal property to a common carrier if the tangible personal property is shipped to a point outside of Texas using the purchasing carrier's facilities under a bill of lading, and if the tangible personal property is to be used by the purchasing carrier in the conduct of its business outside of Texas.(c) Vessels.(1) Chapter 160 boats. The sale or use in Texas of a Chapter 160 boat is subject to boat and boat motor sales or use tax under Tax Code, Chapter 160, even if the vessel meets the definition of a commercial vessel. The lease or rental of a Chapter 160 boat is subject to limited sales, excise, and use tax under Tax Code, Chapter 151. For information concerning the imposition of the boat and boat motor sales and use tax, see §3.741 of this title (relating to Imposition and Collection of Tax).(2) Commercial vessels. Sales or use tax is not due on the sale by the builder of a commercial vessel that is not a Chapter 160 boat.(3) Component parts. Sales and use tax is not due on the sale or use of materials, equipment, and machinery that become component parts of a commercial vessel, a marine cargo container, or a Chapter 160 boat that meets the definition of a commercial vessel. A component part is tangible personal property that is actually attached to and becomes a part of a commercial vessel, a marine cargo container, or a Chapter 160 boat that meets the definition of a commercial vessel. For example, items such as radios, radar equipment, navigation equipment, wenches, long-line fishing gear, and rigging equipment, that are attached to the vessel by means of bolts or brackets, or are otherwise attached to the vessel, including items required by federal or state law, are component parts. Permanent coatings such as paint and varnishes are also component parts. The term does not include furnishings of any kind that are not attached to the vessel, nor does it include consumable supplies. For example, it does not include bedding, linen, kitchenware, tables, chairs, ice for cooling, refrigerants for cooling systems, fuels, lubricants, first aid kits, tools, or polishes, waxes, glazes, or other similar temporary coatings.(4) Repair and maintenance. Sales and use tax is not due on the labor to repair, remodel, restore, renovate, convert, or maintain a commercial vessel or a Chapter 160 boat that meets the definition of a commercial vessel, or a component part of a commercial vessel or a Chapter 160 boat that meets the definition of a commercial vessel. Sales and use tax is due on the sale or use of machinery, equipment, tools, and other items used or consumed in performing the non-taxable service. For more information about the repair, remodeling, maintenance, and restoration of vessels that are not commercial vessels, see §3.292 of this title (relating to Repair, Remodeling, Maintenance, and Restoration of Tangible Personal Property).(5) Vessels operating exclusively in foreign or interstate coastal commerce.(A) Sales or use tax is not due on the sale of materials and consumable supplies, including items commonly known as ships' stores and sea stores, to the owner or operator of a vessel operating exclusively in foreign or interstate coastal commerce, if the materials and consumable supplies are for use and consumption in the operation and maintenance of the vessel, or if the materials and supplies enter into and become component parts of the vessel.(B) Operation of the vessel in a manner other than in foreign or interstate coastal commerce will result in a loss of the exemption for ships' stores and sea stores for the quarterly period in which the nonexempt operation occurs.(C) Any owner or operator of a vessel operating exclusively in foreign or interstate coastal commerce shall, when giving an exemption certificate, include on the certificate the title or position of the person issuing the certificate and the name of the vessel on which the items are to be loaded.(D) Sales tax is due on sales made to individual seamen operating these vessels.(6) Closely associated service companies provide servicing operations such as stevedoring, loading, and unloading vessels. Sales or use tax is not due on the sale or use of materials and supplies purchased by a person providing stevedoring services for a vessel operating exclusively in foreign or interstate coastal commerce if the materials and supplies are loaded aboard the vessel and are not removed before its departure. This includes, but is not limited to, such items as lumber, plywood, deck lathing, turnbuckles, and lashing shackles.(d) Taxable uses of tangible personal property purchased tax free. Sales and use tax is due when tangible personal property sold, leased, or rented tax-free under a properly completed resale or exemption certificate is subsequently put to a taxable use other than the use allowed under the certificate. For more information refer to §3.285 of this title (relating to Resale Certificate; Sales for Resale) and §3.287 of this title (relating to Exemption Certificates).(e) Rolling stock, locomotives, and trains.(1) Sales or use tax is not due on the sale or use of locomotives and rolling stock.(2) Sales or use tax is not due on the sale or use of fuel or supplies essential to the operation of locomotives and trains, including items required by federal or state regulation. Examples include, but are not limited to, telecommunication and signaling equipment, rails, ballast, cross ties, and roadbed moisture barriers. Items of tangible personal property used to construct, repair, remodel, or maintain improvements to real property such as depots, maintenance facilities, loading facilities, and storage facilities are not supplies essential to the operation of locomotives and trains.(3) Sales or use tax is not due on the amount charged for labor or incorporated materials used to repair, remodel, maintain, or restore locomotives and rolling stock. Sales or use tax is due on the sale or use of machinery, equipment, tools, and other items used or consumed in performing the non-taxable service.(4) Sales or use tax is not due on the sale or use of electricity, natural gas, and other fuels used or consumed predominately in the repair, maintenance, or restoration of rolling stock. For more information, see §3.295 of this title (relating to Natural Gas and Electricity).(5) Sales or use tax is not due on the amount charged for labor or incorporated materials, whether lump-sum or separately stated, used for the construction of new railroad tracks and roadbeds. For more information, see §3.291 of this title (relating to Contractors). Sales or use tax is not due on the separately stated sales price of incorporated materials used to repair, remodel, restore, or maintain existing railroad tracks and roadbeds. Sales and use tax is due on the sales price for labor to repair, remodel, restore, or maintain existing railroad tracks and roadbeds as nonresidential real property repair, remodeling, and restoration. For more information, see §3.357 of this title (relating to Nonresidential Real Property Repair, Remodeling, and Restoration; Real Property Maintenance).(f) Motor vehicles. The sale and use of motor vehicles are taxed under the Tax Code, Chapter 152 (Taxes on Sale, Rental, and Use of Motor Vehicles). For information on repairs to motor vehicles, see §3.290 of this title (relating to Motor Vehicle Repair and Maintenance; Accessories and Equipment Added to Motor Vehicles; Moveable Specialized Equipment).",
            "sourceNote": "Source Note: The provisions of this §3.297 adopted to be effective January 1, 1976; amended to be effective March 24, 1978, 3 TexReg 817; amended to be effective October 6, 1978, 3 TexReg 3353; amended to be effective March 31, 1982, 7 TexReg 1177; amended to be effective October 30, 1984, 9 TexReg 5387; amended to be effective November 6, 1985, 10 TexReg 4125; amended to be effective January 28, 1992, 17 TexReg 324; amended to be effective December 28, 1993, 18 TexReg 9312; amended to be effective August 12, 1998, 23 TexReg 8182; amended to be effective June 19, 2017, 42 TexReg 3159; amended to be effectiveJuly 4, 2023, 48 TexReg 3516."
        },
        {
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            "currentRecordId": "87192",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.298",
                "label": "Amusement Services"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Amusement services--Entertainment, recreation, sport, pastime, diversion, or enjoyment that is a pleasurable occupation of the senses. Amusement services and places that offer amusement services include, but are not limited to, the following:(A) live or recorded performances, whether by individual ticket or by season tickets:(i) ballet performances;(ii) circuses;(iii) ice skating shows;(iv) motion pictures;(v) musical concerts;(vi) opera performances;(vii) outdoor theatres; and(viii) theatres (movies and plays);(B) exhibitions or displays:(i) animal shows (contests, exhibitions);(ii) antique shows;(iii) aquatic shows;(iv) arts and crafts, and art shows (fairs);(v) auto shows;(vi) museums (that display art objects, wax figures, antique autos, etc.); and(vii) zoos;(C) spectator sports:(i) drag strip operation;(ii) horse shows (horse riding exhibitions);(iii) motorcycle races;(iv) automobile races (full size and miniature cars);(v) rodeo;(vi) sporting events such as football, baseball, basketball, hockey, and soccer games; and(vii) wrestling, boxing, or arm wrestling;(D) participatory sports or games:(i) athletic clubs;(ii) bowling games;(iii) court fees--tennis, racketball, handball, etc.;(iv) domino games (including by the hour);(v) go-cart raceways;(vi) golf courses;(vii) golf driving ranges;(viii) health clubs (spas), (admissions and memberships);(ix) miniature golf courses;(x) chartered boat or party boat excursions (see paragraph (2) of this subsection for excursions of more than one day duration, and for excursions on which fishing guide services are provided);(xi) pool (billiards) games (by the game or by the hour);(xii) skate board tracks;(xiii) skating rinks (roller skating and ice skating);(xiv) swimming pools;(xv) water slides; and(xvi) physical fitness centers;(E) fairs or carnivals:(i) amusement parks;(ii) carnivals;(iii) fairs;(iv) games of skill, at a circus, carnival, etc.;(v) shooting galleries (ranges); and(vi) side shows;(F) other:(i) except as provided by subsection (e)(4) of this section, cover charges (for admission to night clubs, dance halls, discos, etc., that provide dancing, music, or other entertainment);(ii) hot tub concessions;(iii) parties (New Year's Eve) that radio stations, hotels, etc., sponsor. Ticket price includes meal, set-ups, entertainment, party favors;(iv) rides for pleasure (in hot-air balloons, helicopters, trains, ships, boats, etc.);(v) tour trains and buses, whose primary purpose is to show tourist sights along a route, as opposed to regular transportation;(vi) tours of tourist attractions, including ships, buildings, monuments, and natural wonders such as caves and caverns; and(vii) palm reading, fortune telling, and astrological chart preparation;(G) country clubs and other private clubs and organizations that provide entertainment, recreation, sports, dining, or social facilities to members.(2) Nonamusement services--Activities that are primarily instructional in nature, or nontaxable personal services. Places, services, and clubs that the tax on amusement services does not cover include, but are not limited to:(A) hobby clubs (stamp collecting clubs, toastmaster clubs, camera clubs, amateur radio clubs);(B) instructions for any sport or musical discipline;(C) camps for children (day camps or boarding camps);(D) video cassette clubs;(E) political fundraisers;(F) campground admissions;(G) cruises that last longer than 24 hours and extend offshore beyond Texas territorial limits;(H) fishing and hunting leases and guide services; and(I) membership in sororities and fraternities.(3) Occasional sale--The sale of not more than 10 admissions for amusement services during a 12-month period by a person who does not hold himself out as engaging, or does not habitually engage, in the sale of amusement services.(4) Provider of an amusement service--The person who has legal rights of ownership over, or the legal right to provide, present, or offer, an amusement, entertainment, or recreation that is rendered on a regular basis at a fixed location, and for which admissions are sold, such as the owner of the wax figure display at a wax museum. The provider of an amusement service is also the person who has legal rights of ownership to an amusement, entertainment, or recreation that will not be rendered on a regular basis at a fixed location, and for which amusement service admissions will be sold, such as the provider of a singer's one-night live performance. A provider of an amusement service may be, but is not always, the owner of the facility (land and/or building) at which the amusement service is offered or performed. A provider of an amusement service may gain the right of providing an amusement service by virtue of a contract or agreement (lease, rental, concession right) with the performer(s) of the entertainment, or with a facility owner when the use of that facility constitutes the amusement service. Terms used within the amusements industry to refer to a provider include manager, promoter, concessionaire, tenant, or association (or club) president.(5) Sales price of an amusement service--The fee charged for admission to an amusement, including a convenience fee, handling charge, service charge, or other amount that is over and above the amount that would be charged for an amusement admission at the ticket counter of the facility at which the amusement service will be rendered. Sales price also includes dues, initiation fees, and other charges, assessments, and fees required for a special privilege, status, or membership classification in a private club or organization. Receipts subject to tax under the Texas Alcoholic Beverage Code, §202.02, are not included in the sales price of an amusement service.(6) Sales price of membership to country clubs, including clubs described by the Internal Revenue Code of 1986, §501(c)(7)--The sales price includes dues, initiation fees, and other charges, assessments, and fees required for a special privilege, status, or membership classification in a private club or organization. Whether the club has its own facilities is irrelevant to the determination of sales price. Receipts subject to tax under Texas Alcoholic Beverage Code, §202.02, are not included in the sales price of an amusement service.(7) Seller of admissions to amusement services--A person who sells more than 10 admissions to amusement services during a 12-month period, and includes those persons who hold themselves out as engaging, or who habitually engage, in the sale of admissions to amusement services.(8) Sale of an amusement service admission--The transfer of title to, or possession of, a ticket or other admission document for consideration, or the collection of an admission, membership, or enrollment fee, whether by individual performance, subscription series, or membership privilege, or through the use of a coin-operated or credit-card-operated machine. The consideration paid may secure the admission privilege for an individual or a group of individuals. The contract or agreement whereby the right is secured for a provider to offer an amusement, recreation, or entertainment as an amusement service is not the sale of an admission to an amusement service and is not subject to sales tax, such as the payment of a fee to a singer for a performance that the payer of the fee will provide as an amusement service through the sales of tickets.(b) Charges to private club members and guests. The membership dues, initiation fees, and other assessments and fees charged for a special privilege, status, or membership classification in a private club or organization, including organizations described by the Internal Revenue Code of 1986, §501(c)(7), if the organizations provide amusements, are taxable. Taxable fees for special privileges in the organization include, but are not limited to, liquor pool dues, boat slip rental fees, golf cart storage fees, locker rental fees, locker room use fees, and fees for access to the restaurant and bar. Separate charges for amusement services by persons who operate clubs or other facilities over and above amounts that are received for membership or initiation fees, such as green fees or fees for admissions to swimming pools, racketball courts, or tennis courts, are also taxable. Initiation fees that are refundable, as evidenced by a written agreement, are not taxable.(c) Entry fees. Entry fees will not be taxable as amusements if:(1) the fee substantially exceeds what would normally be paid for use of the facility, and a person is paying to compete in a contest, and part of the fee offsets the cost of conducting the contest and for prizes; or(2) an individual would not normally use the facility or pay a fee, except for the purpose of participation in a contest.(d) Travel agencies.(1) Tickets to amusements that travel agencies sell as part of a travel package are taxable only if:(A) the price of the ticket is separately stated from the price for the remainder of the package; or(B) though not separately stated, the surrounding additional costs are inconsequential.(2) If the travel agency is not required to collect sales tax, then sales tax must be paid at the time the travel agency purchases the tickets.(e) Imposition of tax.(1) Sales tax is due on the sale of an admission to an amusement service if the event or location of the service is within the State of Texas. Sales tax is also due on admissions to gambling ships that operate outside Texas waters, if the ships depart from and return to Texas ports. Sales tax is not due on the sale of an admission to an amusement service if the event or location of the service is outside Texas.(2) Use tax is due on an out-of-state sale of an admission to an amusement event that will take place in Texas.(3) When a sale of an amusement service occurs that does not involve the transfer of a ticket or other physical evidence of admission, possession of or title to the admission is regarded as occurring at the seller's place of business. An example is when admission is secured by a reservation that the seller makes for the purchaser.(4) Sales or use tax is not due on cover charges that are taxable under Alcoholic Beverage Code, 202.02.(f) Taxable item sold or transferred with amusement service.(1) Sellers of service may issue a resale certificate in lieu of tax to suppliers of tangible personal property only if care, custody, and control of the property is transferred to the client. For example, a taxpayer purchases padlocks to transfer to customers when lockers are rented. The padlock is transferred to customers, and the customers use the padlock when renting the locker. The taxpayer may purchase the padlock tax free by issuing a resale certificate. Tax is due on the total amount charged the customer, including amounts for the padlock and for the services.(2) A resale certificate may be issued for a service if the buyer intends to transfer the service as an integral part of taxable services. A service will be considered an integral part of a taxable service if the service purchased is essential to the performance of the taxable service, and without which the taxable service could not be rendered.(3) A resale certificate may be issued for a taxable service if the buyer intends to incorporate the service into tangible personal property that will be resold. If the entire service is not incorporated into the tangible personal property, the presumption is that the service is subject to tax, and the service will only be exempt to the extent that the buyer can establish the portion of the service that was actually incorporated into the tangible personal property. If the buyer does not intend to incorporate the entire service into the tangible personal property, no resale certificate may be issued, but credit may be claimed at the time of sale of the tangible personal property to the extent the service was actually incorporated into the tangible personal property.(4) Any item, such as machinery or equipment, purchased for use in the provision of an amusement service is not an item that is transferred with an amusement service, and is subject to sales tax.(5) A reseller of a ticket or admission document to an amusement service may deduct from \"taxable sales reported,\" the \"adjusted value\" of the ticket or admission document purchased for resale from a non-permitted purchaser of the ticket or admission document. The \"adjusted value\" is the face value of the ticket or admission document, less the included sales tax. A reseller is allowed the deduction from taxable sales when filing a sales tax report, if all of the following criteria are met:(A) the purchaser paid the sales tax, and the purchaser does not hold a Texas Sales and Use Tax Permit;(B) the language on the ticket or admission document purchased for resale states that all taxes have been included in the price of the ticket or admission document;(C) the ticket or admission document for which a deduction is claimed was not purchased tax-free by use of a resale or exemption certificate; and(D) the ticket or admission document is actually resold.(g) Exemptions.(1) Sales tax is not due on the sale of an amusement service if the service is provided exclusively:(A) by a nonprofit organization, corporation, or association, other than organizations described by the Internal Revenue Code of 1986, §501(c)(7), if the proceeds do not go to the benefit of an individual, except as a part of the services of a purely public charity. Initiation and membership fees and other assorted fees charged by such a nonprofit organization, corporation, or association are not taxable. Examples include organizations, corporations, or associations recognized as nonprofit organizations under the Internal Revenue Code, §501(c); Kiwanis clubs, labor unions, and ex-students organizations. Organizations described by the Internal Revenue Code of 1986, §501(c)(7), that provide amusements, do not qualify for this exemption, even though such groups are formed as nonprofit organizations;(B) by a nonprofit corporation organized under the laws of this state for the purpose of encouraging agriculture by the maintenance of public fairs and exhibitions;(C) by an educational (including institutions of higher education as defined under Education Code, §61.003(8)), religious, law enforcement, or charitable association or organization, as long as no part of the proceeds goes to the benefit of a private individual;(D) by the United States, the State of Texas, a municipality, county, school district, special district, or other political subdivision of the State of Texas, other than a public institution of higher education as defined under Education Code, §61.003(8). An amusement service is not \"exclusively provided\" by a governmental entity if the entity contracts with an entity that is not listed in the Tax Code, §151.3101(a)(1), for the provision of the amusement;(E) in a place that is included in the National Register of Historic Places; or(F) in a place that is designated as a Recorded Texas Historic Landmark by the Texas Historical Commission.(2) Sales tax is not due on the sale of an amusement service by a ticket service, ticket agent, ticket outlet, or any other seller of amusement services, when the provider of the amusement service is exempt as set forth in paragraph (1) of this subsection.(3) Except as provided by subsection (h) of this section, a nonprofit group may hire a for-profit organization to provide the expertise to produce an event without loss of the exemption provided by paragraph (1)(A) of this subsection. The nonprofit organization must hold itself out as the provider of the amusement, and may not be a joint venturer with the for-profit entity.(4) Amusement services provided through coin-operated machines that the consumer operates are exempt from sales tax. The coin used to operate the machine may be a token as well as a United States coin. Examples are coin-operated:(A) pinball machines;(B) video games and motion pictures;(C) pool tables;(D) televisions;(E) shuffleboard;(F) jukeboxes; and(G) batting cages.(5) Sales tax is not due on the occasional sale of an amusement service.(6) Sales tax is not due on the purchase of an amusement service by an exempt entity for its own amusement or for the amusement of its members. See §3.322 of this title (relating to Exempt Organizations). The seller must secure a valid exemption certificate. An amusement service is purchased for the amusement of its members irrespective of whether:(A) the organization pays the admission for the members;(B) the members reimburse the exempt organization; or(C) the members directly pay the service provider under an agreement by the provider to accept payments from individual members, the aggregate total of which equals the contractual obligation of the organization.(7) Sales tax is not due on the purchase of the admission to an activity that may be classified as an amusement, entertainment, or recreation, if purchased under a written prescription of a licensed practitioner of the healing arts for the primary purpose of health maintenance or improvement. The written prescription must specify the type of the treatment needed. If a membership privilege is purchased pursuant to a written prescription, a new prescription must be obtained each time the membership is renewed.(8) Except as provided under subsection (g)(1)(E) or (F) of this section, tax is due on an amusement service provided by an organization that is not exempted under subsection (g) or (h) of this section, when the facilities used to provide the amusement service are leased or rented from an organization that is exempted under subsection (g) or (h) of this section.(h) Governmental entities.(1) Entities recognized as governmental entities are subject to the provisions of this subsection even though the entities may also be classified under the Tax Code, §151.3101(a)(3), (4), or (5).(2) Unless an event is solely for educational purposes, an amusement service provided by this state, an institution that this state owns or operates, an agency of this state, a city, county, school district, special district, or other political subdivision of this state, or any agency of the United States, is taxable if the public entity contracts with a person, a for-profit organization, or any other organization that is not listed in Tax Code, §151.3101(a)(1), to provide the expertise to produce or provide a musical concert or other amusement event. These public entities must collect sales tax on admissions to amusement events that are provided by or in conjunction with a person, a for-profit organization, or other organization that is not listed in Tax Code, §151.3101(a)(1). This provision does not apply to a public institution of higher education as defined under Education Code, §61.003(8). Public institutions of higher education are included in the term \"educational organizations\" and are subject to the provisions of subsection (g)(1)(C) of this section.(3) An amusement is not solely for educational purposes unless either 100% of the proceeds from the admissions go to the educational organization, or students at the educational institution actually perform the amusement.(i) Collection of the tax.(1) Persons who sell admissions to an amusement service for resale may accept a resale certificate from the purchaser of the amusement in lieu of tax. The resale certificate will cover all convenience fees, handling charges, service charges, etc., that promoters, ticket services, and others add to the sales price of the admission.(2) Each seller of amusement services who sells to the final consumer must collect and remit the tax to the comptroller, based on the total receipts from all taxable sales. A seller is responsible for remitting the correct amount of tax based on the total sales price of admissions, including any charges that others have added.(3) The comptroller may regard any seller of an admission to an amusement service as the agent of the person from whom he obtains the tickets or other admission document, if the comptroller determines that the tax will be collected more efficiently. The seller of an admission to amusement service is regarded as the agent if:(A) the person who provides the tickets or other admission documents obtains written authorization from the comptroller to assume responsibility for the tax collection of the agent;(B) the person who provides the tickets includes in the sales price of the admission any convenience fee, handling charge, etc., that the agent has added to the price; and(C) the provider of the tickets gives to the seller/agent a written statement that the provider holds a tax permit issued by the comptroller and is assuming responsibility for tax collection and reporting for the agent.(j) Records. Every seller of admissions to amusement services is responsible for keeping accurate records of all sales and purchases. See §3.281 of this title (relating to Records Required; Information Required). Every seller of admissions to amusement services must hold a sales tax permit and must file reports as required by §3.286 of this title (relating to Seller's and Purchaser's Responsibilities). A reseller of a ticket or admission document to an amusement service who deducts the \"adjusted value\" of the ticket or admission document purchased for resale from a non-permitted purchaser, as provided in subsection (f)(5) of this section, must have records that verify the deduction, including:(1) the name and address of the non-permitted purchaser;(2) the face value of any ticket or admission document that a non-permitted purchaser has purchased;(3) proof (such as a copy of the ticket or admission document) showing that sales tax is included in the price of the ticket or admission document;(4) the sales of tickets or admission documents; and(5) the remaining inventory of unsold tickets or admission documents.(k) Local tax. City, county, transit authority, and special purpose district tax should be allocated to the city, county, transit authority, and/or special purpose district where the amusement event occurred.",
            "sourceNote": "Source Note: The provisions of this §3.298 adopted to be effective July 8, 1985, 10 TexReg 2074; amended to be effective May 5, 1986, 11 TexReg 1833; amended to be effective July 30, 1987, 12 TexReg 2339; amended to be effective May 26, 1988, 13 TexReg 2252; amended to be effective November 13, 1989, 14 TexReg 5735; amended to be effective September 29, 1992, 17 TexReg 6372; amended to be effective July 26, 1998, 23 TexReg 7381; amended to be effective June 13, 2001, 26 TexReg 4214."
        },
        {
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            "currentRecordId": "174053",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.299",
                "label": "Newspapers, Magazines, Publishers, Exempt Writings"
            },
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            "ruleBody": "(a) Newspapers.(1) Newspaper--A publication:(A) printed on newsprint;(B) whose average sales price per copy over a 30-day period does not exceed $3.00. The average sales price per copy shall be presumed to be the newspaper's masthead price unless the taxpayer provides contemporaneous documentary evidence satisfactory to the comptroller that adequately demonstrates the actual average sales price;(C) that is printed and distributed periodically at daily, weekly, or other short intervals of four weeks or less;(D) for the dissemination of news of a general character and of a general interest, including advertising.(2) Newspaper includes a publication containing articles and essays of general interest by various writers and advertisements that is produced for the operator of a licensed and certificated carrier of persons and distributed by the operator to its customers during their travel on the carrier.(3) Newspaper also includes publications for the dissemination of news of a general character and of a general interest that is printed on newsprint and distributed to the general public free of charge at daily, weekly, or other short intervals of four weeks or less.(4) The term newspaper does not include magazines, handbills, circulars, flyers, sales catalogs, or the like, unless these items are distributed as a part of a newspaper and the items, after being printed, are delivered by the printer to the person responsible for the distribution of the newspaper.(5) The sale of newspapers whether sold or distributed by individual copy or subscription is exempt.(b) Magazines.(1) Magazine--Those publications usually paper-backed and sometimes illustrated that appear at regular intervals and contain stories, articles, essays by various writers, and advertisements.(2) The sale of subscriptions to magazines entered as periodicals class (formerly called second class) mail and sold for a semiannual or longer period of time is exempt from the sales tax. Except as provided in subsection (d) of this section, other sales of magazines are taxable.(3) For the purposes of this section, controlled circulation magazines means magazines paid for by advertisers rather than by recipients of the magazines.(A) The publishers of controlled circulation magazines must collect sales tax from persons who advertise in their magazines based upon the sales price of the magazine. The sales price of the magazine must be separately stated from the charge for advertising and must be a reasonable amount for such publication. The sales price will be considered reasonable if the publication meets the requirement for periodicals class postal rates, as set forth in the postal regulations.(B) Controlled circulation magazines do not include those magazines provided to members of an organization as part of their membership if:(i) either a part of their membership dues are identified as the sales price of the magazine plus tax; or(ii) the membership dues do not identify the sales price of the magazine, but sales tax was paid by the organization on the cost of publication.(c) Publishers.(1) Newspaper publishers may claim a manufacturing exemption as set out in §3.300 of this title (relating to Manufacturing; Custom Manufacturing; Fabricating; Processing). Newspaper publishers may also claim the exemption for packaging supplies as set out in §3.314 of this title (relating to Wrapping, Packing, Packaging Supplies, Containers, Labels, Tags, Export Packers, and Stevedoring Materials and Supplies). Persons printing newspapers may accept an exemption certificate in lieu of the sales tax from the publisher.(2) Magazine and other publishers of tangible personal property for sale will be considered manufacturers under Tax Code, Chapter 151 and should see §3.300 of this title and §3.314 of this title concerning the status of their purchases.(3) Magazine publishers of tangible personal property distributed free of charge are not considered manufacturers under Tax Code, Chapter 151 or §3.300 of this title. These publishers must pay tax on their purchases of equipment and materials used to produce the free magazine.(d) Exempt writings.(1) Periodicals and writings are exempt from tax if published and distributed by a religious, philanthropic, charitable, historical, scientific, or other similar organization not operated for profit. Periodicals and writings published and distributed by an educational organization are subject to the tax.(2) Material provided in Braille and audio recordings of writings and periodicals recorded and distributed by a religious, philanthropic, charitable, historical, scientific, or other similar organization for use by the visually impaired are exempt from tax.(3) The phrase \"similar organization\" used in this section shall include, but not necessarily be limited to, organizations qualifying for exemption from federal income taxes under 26 United States Code §501(c)(3), with the exception of educational organizations. \"Similar organizations\" must be organized for a benevolent purpose and must not be operated for profit.(4) The term \"distributed\" used in this section shall mean the shipment, marketing, or sale of periodicals or writings.(5) The terms \"periodicals\" and \"writings\" used in this section shall mean printed reading materials including those presented on audio tape, videotape, and computer disk. Examples include books, Bibles, United Way newsletters, American Cancer Society magazines, brochures, newspapers, hymnals or sheet music, and similar items. Items that contain printed materials susceptible to being read, but that primarily serve other purposes or functions, are not exempt. Examples of such nonexempt items include bookmarks, clothing, posters, art work, photographs, novelties, and souvenirs.(6) The phrase \"educational organization\" used in this section shall mean all public and private schools, colleges and universities, and other similar institutions that are organized for the systematic dissemination of knowledge through a formal program of instruction.",
            "sourceNote": "Source Note: The provisions of this §3.299 adopted to be effective January 1, 1976; amended to be effective March 24, 1978, 3 TexReg 817; amended to be effective December 21, 1983, 8 TexReg 5038; amended to be effective April 3, 1985, 10 TexReg 939; amended to be effective December 19, 1984, 9 TexReg 6142; amended to be effective May 21, 1986, 11 TexReg 2103; amended to be effective November 5, 1986, 11 TexReg 4373; amended to be effective November 5, 1987, 12 TexReg 3924; amended to be effective October 5, 1990, 15 TexReg 5502; amended to be effective February 21, 1992, 17 TexReg 1127; amended to be effective April 18, 2000, 25 TexReg3289; amended to be effective October 12, 2004, 29 TexReg 9551; amended to be effective October 12, 2015, 40 TexReg 7096."
        },
        {
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            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
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            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
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            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.300",
                "label": "Manufacturing; Custom Manufacturing; Fabricating; Processing (Tax Code, §§151.005, 151.007, 151.318, and 151.3181)"
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Accessory--A machine fixture that causes the machinery to operate in a specialized way.(2) Custom manufacturing--Producing tangible personal property to the special order of the customer, e.g., tailor-made clothing, custom-made draperies or slip-covers, or furniture made-to-order. Custom manufacturers are manufacturers for the purpose of this section.(3) Display item--A manufactured item that is identical in size and function to other items held for sale which it represents and that is ultimately sold at retail. For example, manufacturer's apparel lines, furniture showroom pieces, light fixture displays.(4) Equipment--Any apparatus, work clothing, device, or simple machines used directly in production.(5) Fabrication--To make, build, create, produce, or assemble components of tangible personal property, or to make tangible personal property work in a new or different manner.(6) Hand tool--An instrument that is to be used, managed, and powered by the hand (e.g., paint brush, trowel, hammer, screwdriver, files). Equipment that is controlled or operated by the hand, but is moved or powered by electricity, gas, steam, or other fuel, is not a hand tool (e.g., electric drill, chain saw, jack hammer).(7) Machinery--All power-operated machines.(8) Manufacturer--A person who is engaged in manufacturing. The definition includes processors, fabricators, submanufacturers, and custom manufacturers.(9) Manufacturing--Each operation beginning with the first stage in the production of tangible personal property and ending with the completion of tangible personal property. The first production stage means the first act of production, and it shall not include those acts in preparation for production. For example, a lumber company that cuts trees or a manufacturer that gathers, arranges, or sorts raw materials or inventory is preparing for production. The first production stage for the manufacturing of software is the design and writing of the code or program, and manufacturing includes the testing or demonstration of the software. Manufacturing includes the repair or rebuilding of tangible personal property that the manufacturer owns for the purpose of being sold, but does not include the repair or rebuilding of property that belongs to another.(A) Completion of production means the tangible personal property has all the physical properties, including packaging, if any, that it has when transferred by the manufacturer to another. For example, a manufacturer of raw rubber has completed production when the raw rubber is ready to be transferred to a manufacturer of rubber goods.(B) Processing and fabrication are two activities that are performed during manufacturing. For example, the person who takes raw steel and makes pipe is engaged in fabrication. The workers who coat or thread the pipe are engaged in processing.(10) Processing--The physical application of the materials and labor necessary to modify or to change the characteristics of tangible personal property. The repair of tangible personal property, belonging to another, by restoring it to its original condition is not considered processing of that property. The mere packing, unpacking, or shelving of a product to be sold will not be considered to be processing of that property. Processing does not include remodeling.(11) Remodeling--To make tangible personal property belonging to another over again, in a similar but different way, or to change the style, shape, or form, without causing a loss of its identity, or without causing the property to work in a new or different manner.(12) Replacement part--Any repair part attached to the machinery, equipment, or accessory.(13) Sample--A scale model or representative piece of a manufactured product held for sale. For example, cloth swatches and wallpaper books.(14) Semiconductor fabrication and pharmaceutical biotechnology cleanrooms and equipment--All tangible personal property, without regard to whether the property is affixed to or incorporated into realty, that is used in connection with the manufacturing, processing, or fabrication in a cleanroom environment of a semiconductor product or a pharmaceutical biotechnology product, without regard to whether the property is actually contained in the cleanroom environment. The term includes integrated systems, fixtures, and piping; moveable cleanroom partitions and cleanroom lighting; all property necessary or adapted to reduce contamination or to control airflow, temperature, humidity, chemical purity, or other environmental conditions or manufacturing tolerances; production equipment and machinery; all tangible personal property that moves the product or other materials that are necessary and essential to the process, including piping that is used to move gas, liquids, deionized water, and hazardous waste material; silicon wafer moving, handling, and tracking systems; and electrical supply and control equipment, such as switches, wiring, and monitoring equipment that is incorporated into the realty. The term does not include the building or any permanent, nonremovable structural component part of the building, such as vibration-isolation platforms and vibration columns.(15) Submanufacturer--A person who performs one or more of the manufacturing operations described in paragraph (9) of this subsection upon a product, or upon an intermediate or preliminary product, for a manufacturer.(b) Manufacturer's responsibilities.(1) Collection of tax. Persons who are engaged in the business of fabricating, manufacturing, processing, or custom manufacturing must collect sales tax on the total sales price of the manufactured item or accept a resale or exemption certificate in lieu of the tax. The sales price includes the cost of materials, labor or service costs, and all expenses that are connected with production. Persons who fabricate, custom manufacture, or process tangible personal property that the customer furnishes, either directly or indirectly, must collect tax on such fabricating, custom manufacturing, or processing charge. Manufacturers shall pay or accrue sales or use tax on all items used in the manufacturing process that do not qualify for exemption from tax. A manufacturer who purchases tangible personal property tax free by means of an exemption certificate or resale certificate and subsequently uses the item for a nonexempt purpose is responsible for tax as provided in subsection (k) of this section.(2) Installed items. Generally, the charge for labor to install an item sold is taxable when the item sold is taxable. Persons who manufacture and install items that become improvements to residential realty or are incorporated into new real property structures are contractors and are subject to the provisions of §3.291 of this title (relating to Contractors). Example: cabinetmakers who also affix the cabinets as a part of a new-construction contract. Persons who manufacture and install items that become improvements to existing nonresidential realty are subject to the provisions of §3.357 of this title (relating to Nonresidential Real Property Repair, Remodeling, and Restoration; Real Property Maintenance). Persons who manufacture and install items as a part of a contract to repair tangible personal property are subject to the provisions of §3.292 of this title (relating to Repair, Remodeling, Maintenance, and Restoration of Tangible Personal Property). Example: fabricating a propeller shaft for a customer as a part of an outboard motor repair. Persons who manufacture and install items that do not become improvements to realty or that are not part of a repair must collect sales tax on the total charge. Example: a retailer who makes and installs draperies for a home owner.(3) Molds, dies, patterns. The manufacturer's purchase of molds, dies, patterns, jigs, tooling, photo engraving, and other manufacturing aids, and their raw materials or component parts, may qualify for exemption under subsection (d) of this section.(A) Written agreement - sale. A separate charge by the manufacturer for the aid will be considered a sale of the aid to the customer only if a written agreement exists between parties that clearly makes the customer the owner of the aid. As owner of the aid, the customer will owe tax on the amount that the manufacturer charged, unless the customer is also manufacturing a product for sale.(B) No written agreement - no sale. When no written agreement exists between the manufacturer and the customer, and the manufacturer separates the charge for the aid from the charge for the items produced by means of the aid, a sale will not be considered to have occurred. The combined charges constitute the sales price of the manufactured item. (Charge for aid plus charge for items produced equals sales price of items.) The total charge shall be taxable or nontaxable depending on the taxability of the items produced.(4) Samples. Since the sole use of such samples is to demonstrate not the sample but the other items that the sample represents, the purchase of the raw materials that are used to make the sample is subject to sales or use tax, regardless of the fact that the sample itself may be ultimately sold.(c) Nonexempt manufacturing items. Certain items are specifically subject to tax:(1) taxable items that are not otherwise exempted by this section;(2) machinery, equipment, replacement parts, and accessories that are rented or leased for a term of less than one year;(3) items that are merely useful or incidental to the operation, such as office machines, office supplies, transportation equipment, maintenance supplies, cleaning supplies, lubricants, and other items that are incidental to the manufacturing process and are not otherwise exempted by this section;(4) hand tools;(5) intraplant transportation equipment, unless exempted in subsections (d)(17) and (18) of this section, including equipment that is used to move a product or raw material in connection with the manufacturing process, and specifically including all piping, conveyor systems, and related pumps (unless otherwise exempted), meters, valves, or rollers. Intraplant transportation equipment is taxable even if manufacturing or processing activities (such as cooling, mixing, or pollution containment) occur during the transportation of product or component parts of the product;(6) machinery and equipment or supplies that are not otherwise exempted in this section, but that are used to maintain or store tangible personal property (for example, refrigeration equipment that a restaurant uses);(7) tangible personal property that is used in the transmission or distribution of electricity, including transformers, cable, switches, breakers, capacitor banks, regulators, relays, reclosers, fuses, interruptors, reactors, arrestors, resistors, insulators, instrument transformers, and telemetry units that are not otherwise exempted under this section, and lines, conduit, towers, and poles.(d) The following items are exempted from the taxes imposed by Tax Code, Chapter 151, if purchased, leased, or rented by a manufacturer for storage, use, or consumption:(1) tangible personal property that will become an ingredient or component part of tangible personal property that is manufactured, processed, or fabricated for ultimate sale;(2) tangible personal property that is directly used or consumed in or during the actual manufacturing, processing, or fabrication of tangible personal property for ultimate sale, if the use or consumption of the property is necessary or essential to the manufacturing, processing, or fabrication operation and directly makes or causes a chemical or physical change to:(A) the product that is being manufactured, processed, or fabricated for ultimate sale; or(B) any intermediate or preliminary product that will become an ingredient or component part of the product that is being manufactured, processed, or fabricated for ultimate sale.(3) services that are performed directly on the product that is being manufactured prior to the product's distribution for sale, and for the purpose of making the product more marketable;(4) actuators, steam production equipment (including water purification equipment such as demineralizers and reverse osmosis units) and its fuel, in-process flow through tanks, cooling towers, generators, heat exchangers, transformers and the switches, breakers, capacitor banks, regulators, relays, reclosers, fuses, interruptors, reactors, arrestors, resistors, insulators, instrument transformers, and telemetry units that are related to the transformers, electronic control room equipment, computerized control units, pumps, compressors, hydraulic units, boilers (including economizers, superheaters, waterwalls, hoppers, feedwater heaters, condensers, pumps, air preheaters, draft fans, pulverizors, primary crushers, secondary crushers, oil or gas burning equipment that is related to the boilers), and related accessories that are used to power, supply, support, or control equipment that qualifies for exemption under paragraph (2) or (6) of this subsection or to generate electricity, chilled water, or steam for ultimate sale;(5) transformers located at an electric generating facility that increase the voltage of electricity generated for ultimate sale, the electrical cable that carries the electricity from the electric generating equipment to the step-up transformers, and the switches, breakers, capacitor banks, regulators, relays, reclosers, fuses, interruptors, reactors, arrestors, resistors, insulators, instrument transformers, telemetry units, and related accessories that are associated with the step-up transformers; and transformers that decrease the voltage of electricity generated for ultimate sale and the switches, breakers, capacitor banks, regulators, relays, reclosers, fuses, interruptors, reactors, arrestors, resistors, insulators, instrument transformers, telemetry units, and related accessories that are associated with the step-down transformers;(6) tangible personal property that is used or consumed in the actual manufacturing, processing, or fabrication of tangible personal property for ultimate sale, if the use or consumption of the property is necessary and essential to a pollution control process;(7) lubricants, chemicals, chemical compounds, gases, or liquids that are used or consumed during the actual manufacturing, processing, or fabrication of tangible personal property for ultimate sale, if their use or consumption is necessary and essential to prevent the decline, failure, lapse, or deterioration of equipment that is exempted by this section;(8) gases that are used on the premises of a manufacturing plant to prevent contamination of raw material or product, or to prevent a fire, explosion, or other hazardous or environmentally damaging situation at any stage in the manufacturing process or in loading or storage of the product or raw material on premises;(9) tangible personal property that is used or consumed during the actual manufacturing, processing, or fabrication of tangible personal property for ultimate sale, if the use or consumption of the property is necessary and essential to a quality control process that tests tangible personal property that is being manufactured, processed, or fabricated for ultimate sale. For example, equipment that is used to test the product after the item is produced, but prior to wrapping and packaging. Equipment that is used to test raw materials prior to processing does not qualify for this exemption;(10) safety apparel or work clothing that is used during the actual manufacturing, processing, or fabrication of tangible personal property for ultimate sale, if the manufacturing process would not be possible without the use of the apparel or clothing and the apparel or clothing is not resold to the employee. Examples are specialized clothing, safety goggles, gloves, ear plugs, or hairnets that the law requires employees to wear during processing, or static wrist guards that manufacturing personnel wear in a manufacturing process that must be free of static electricity. A regulation that requires employees to wear clean clothing is not sufficient to qualify uniforms for exemption;(11) tangible personal property that is used or consumed in the actual manufacturing, processing, or fabrication of tangible personal property for ultimate sale, if the use or consumption of the property is necessary and essential to comply with federal, state, or local laws or rules that establish requirements for public health purposes. For example, disinfectants that are used in a meat packing operation to sanitize work areas are exempt. Tangible personal property that is required to be on site, but used only in emergency situations, is not considered consumed in the actual manufacturing process (for example, fire extinguishers, eye baths, and safety signs are not exempt under this provision);(12) tangible personal property that is specifically installed to:(A) reduce water use and wastewater flow volumes from the manufacturing, processing, fabrication, or repair operation;(B) reuse and recycle wastewater streams that are generated within the manufacturing, processing, fabrication, or repair operation; or(C) treat wastewater from another industrial or municipal source for the purpose of replacing existing freshwater sources in the manufacturing, processing, fabrication, or repair operation.(13) gas and electricity when used directly in manufacturing. See §3.295 of this title (relating to Natural Gas and Electricity).(14) labor charges for repair, maintenance, remodeling, or restoration services to pollution control equipment or machinery that a law or regulation requires, and other tangible personal property that is exempt under this section.(15) wrapping, packing, and packaging supplies that are used to further the sale of a product. See §3.314 of this title (relating to Wrapping, Packing, Packaging Supplies, Containers, Labels, Tags, Export Packers, and Stevedoring Materials and Supplies).(16) display items and the raw materials that are used to make display items, so long as the item is used only to demonstrate itself and the same or similar items prior to its sale to an ultimate consumer. The item may not be used for any purpose other than demonstration or display. Any other use by the manufacturer is taxable as a divergent use.(17) piping or conveyor systems that are a component part of a single item of manufacturing equipment or pollution control equipment that is eligible for the exemption. For example, a printing press contains rollers and pipes to transport or feed paper or ink during the manufacturing process. The purchase of the press would continue to qualify for exemption, and rollers, pipe, or other press repair parts would remain as qualifying accessories or repair parts, even when purchased separately. An integrated group of manufacturing and processing machines and ancillary equipment that operate together to create or produce the product, or an intermediate or preliminary product that will become an ingredient or component part of the product, is not a single item of manufacturing equipment.(18) piping through which the product, or an intermediate or preliminary product that will become an ingredient or component part of the product, is recycled or circulated in a loop between the single item of manufacturing equipment and the ancillary equipment that supports only that single item of manufacturing equipment, if the single item of manufacturing equipment and the ancillary equipment operate together to perform a specific step in the manufacturing process; and piping through which the product, or an intermediate or preliminary product that will become an ingredient or component part of the product, is recycled back to another single item of manufacturing equipment and its ancillary equipment in the same manufacturing process.(e) Rented or leased taxable items. The exemptions provided in this section do not apply to any taxable item rented or leased before October 1, 1995, under an operating lease to a person engaged in manufacturing. Taxable items used in a manner exempted under this section and leased on or after October 1, 1995, for a term of one year or more qualify for exemption.(f) Semiconductor fabrication and pharmaceutical biotechnology cleanrooms and equipment. Semiconductor fabrication and pharmaceutical biotechnology cleanrooms and equipment as defined in subsection (a)(14) of this section and associated materials and other items that are necessary and essential to maintain the cleanroom environment are exempt. Semiconductor fabrication and pharmaceutical biotechnology cleanrooms and equipment are not intraplant transportation equipment or used incidentally in a manufacturing process or fabrication operation as those terms are used in subsections (c)(3) and (c)(5) of this section. Regarding pharmaceutical biotechnology cleanrooms and equipment, the exemption applies only to pharmaceutical biotechnology cleanrooms and equipment that are installed as part of the construction of a new facility with a value of at least $150 million and on which construction began after July 1, 2003, and before August 31, 2004.(g) Overhaul, retrofit, or repair of jet turbine engines. A person who is engaged in the overhaul, retrofit, or repair of jet turbine aircraft engines and their component parts may claim an exemption from tax on the purchase of machinery, equipment, or replacement parts or accessories with a useful life in excess of six months, or supplies, including aluminum oxide, nitric acid, and sodium cyanide, used in electrochemical plating or a similar process, that are used or consumed in the overhauling, retrofitting, or repairing of jet turbine aircraft engines or their component parts.(h) Persons engaged in printing tangible personal property. A person who is engaged in printing or imprinting tangible personal property for sale or production of a publication for the dissemination of news of a general character and of a general interest that is printed on newsprint and distributed to the general public daily, weekly, or at some other short interval, free of charge, may purchase tax free, in addition to other items that are exempted under this section, the following items that are necessary and essential to and used in connection with the printing process: pre-press machinery, equipment, and supplies, including computers, cameras, film, film developing chemicals, veloxes, plate-making machinery, plate metal, litho negatives, color separation negatives, proofs of color negatives, production art work, and typesetting or composition proofs.(i) Separated and lump-sum contracts to improve realty. A contractor who incorporates into realty any equipment or materials that qualify for exemption under subsection (d) of this section may accept an exemption certificate in lieu of tax from the manufacturer for the separately stated exempt materials sold under a separated contract. Taxable materials, such as foundation materials and items that are noted under subsection (c) of this section must be separately stated from qualifying equipment, or a single charge for qualifying and nonqualifying materials will be presumed taxable. When nonresidential repair, remodeling, or restoration of realty is performed, qualifying equipment should be separately stated from both nonqualifying materials and taxable labor. A lump-sum charge to repair, remodel, or restore nonresidential realty is presumed taxable. The presumption may be overcome by the service provider at the time the transaction occurs by separately stating to the customer a reasonable charge for the taxable services. However, if the charge for the qualifying manufacturing equipment is not separately stated at the time of the transaction, the service provider or the purchaser may later establish for the comptroller, through documentary evidence, the percentage of the total charge that relates to exempt qualifying manufacturing equipment. Examples of acceptable documentation include purchase invoices, bid sheets, or schedules of values. See §3.357 of this title (relating to Nonresidential Real Property Repair, Remodeling, and Restoration; Real Property Maintenance). A lump-sum charge to perform new construction as covered in §3.291 of this title (relating to Contractors) is not taxable. The contractor is the consumer of all the goods that the contractor uses in the performance of a lump sum new construction contract, and neither the contractor nor the manufacturer may claim an exemption on otherwise qualifying manufacturing equipment.(j) A taxpayer who claims an exemption under this section must prove that the exemption applies and that no exclusion under subsection (c) of this section applies.(k) Divergent use.(1) A manufacturer who issues a resale certificate to purchase tangible personal property tax free and subsequently uses the item for a nonexempt purpose must remit the tax to the comptroller based on the purchase price of the item or the fair market rental value of the item. See §3.285 of this title (relating to Resale Certificate; Sales for Resale) and §3.346 of this title (relating to Use Tax).(2) A manufacturer who issues an exemption certificate to purchase tangible personal property tax free and subsequently uses the item for a nonexempt purpose is responsible for tax based on the divergent use. For divergent use that occurs prior to October 1, 2001, a manufacturer owes tax based on the purchase price or the fair market rental value of the equipment. See §3.287(e) of this title (relating to Exemption Certificates). For divergent use that occurs after September 30, 2001, a manufacturer owes tax based on the guidelines that are provided in paragraph (3) of this subsection.(3) A manufacturer must remit tax in the following manner on divergent use that occurs after September 30, 2001.(A) No tax is due if the divergent use occurs in any month after the fourth anniversary of the equipment purchase date. Equipment that is purchased before October 1, 1997, is not subject to tax on divergent use that occurs after October 1, 2001.(B) Except as provided by subparagraph (C) of this paragraph, a manufacturer owes tax on an item if the divergent use occurs in the month of, or during any month before, the fourth anniversary of the date of purchase. The amount of the tax that is due for the month in which the divergent use occurs is equal to 1/48 of the purchase price multiplied by the percentage of divergent use during that month multiplied by the applicable tax rate when the divergent use occurs.(i) The 48-month period that is used in calculating divergent use begins when the equipment is purchased.(ii) The amount of divergent use for a month can be measured either in hours or by applicable output as follows:(I) the divergent use percentage for a month is computed by taking the total divergent use hours of operation of the equipment in a month and dividing that amount by the total hours of operation of the equipment during the same month; or(II) the divergent use percentage for a month is computed by taking the total output of the equipment during the period of divergent use in a month and dividing that amount by the total output of that equipment during the same month.(C) A manufacturer who uses equipment in a divergent manner in the month of, or during any month before, the fourth anniversary of the date of purchase owes no tax on that use if the divergent use percentage in that month is 5.0% or less.(D) A manufacturer who purchases non-capitalized equipment repair parts or consumables for equipment that is routinely used in both exempt and nonexempt manners may elect to pay tax on the repair parts or consumables by applying the divergent use percentage of the equipment as provided by paragraph (2)(B) of this subsection for the month during which the manufacturer purchased the repair parts or consumable items.(E) A manufacturer who purchases repair labor for equipment may owe tax if the manufacturer uses the qualifying exempt equipment for both exempt and nonexempt purposes. If the manufacturer was using qualifying equipment in an exempt manner at the time when the repair was needed, then no tax is due on the repair. If the manufacturer was using the qualifying equipment in a nonexempt manner when the repair was needed, then tax is due on the purchase price of the repair. If a manufacturer cannot determine whether the equipment was being used in an exempt or nonexempt manner at the time of the repair, then the manufacturer may pay tax on the purchase price of the repair multiplied by the divergent use percentage as provided by paragraph (2)(B) of this subsection for the month in which the purchase of the repair service was made.(F) The use of \"pharmaceutical biotechnology cleanrooms and equipment,\" as those terms are used in subsection (a)(14) of this section, to manufacture, process, or fabricate a pharmaceutical biotechnology product that is not sold is not a divergent use if the use occurs during the certification process by the United States Food and Drug Administration.",
            "sourceNote": "Source Note: The provisions of this §3.300 adopted to be effective January 1, 1976; amended to be effective November 16, 1979, 4 TexReg 3985; amended to be effective December 3, 1984, 9 TexReg 5930; amended to be effective March 30, 1987, 12 TexReg 825; amended to be effective November 28, 1990, 15 TexReg 6600; amended to be effective February 5, 1992, 17 TexReg 473; amended to be effective April 3, 1996, 21 TexReg 2473; amended to be effective December 6, 1996, 21 TexReg 11501; amended to be effective July 10, 2001, 26 TexReg 5057; amended to be effective July 23, 2002, 27TexReg 6537; amended to be effective October 12, 2004, 29 TexReg 9551."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3817&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "3817",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.301",
                "label": "Promotional Plans, Coupons, Retailer Reimbursement"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207448&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
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            },
            "ruleBody": "(a) Trading stamps.(1) The sale of trading stamps to a retailer is a sale of intangible personal property and not taxable under the Limited Sales, Excise, and Use Tax Act. The sale to a retailer of catalogues, stamp books, advertising, or printed matter, or other tangible personal property used in connection with the conduct or promotion of his business is a sale of tangible personal property and subjects such retailer to liability for the sales or use tax, which tax must be collected and remitted in accordance with the terms of the Limited Sales, Excise, and Use Tax Act. When a retailer distributes trading stamps to customers along with the sale of merchandise, such stamps are considered to be given in addition to the merchandise, unless the terms of the sale reveal an intention that a part of the consideration is for the stamps.(2) The redemption of trading stamps by exchanging merchandise for them is a sale at retail of merchandise for a consideration. Trading stamp companies selling tangible personal property or redeeming trading stamps by exchanging merchandise for them or both are retailers. Trading stamp companies or other retailers so redeeming trading stamps must collect and remit to the state sales tax based on the redemptive value of the stamps surrendered or on the reasonable retail price of the taxable merchandise utilized in the transaction, whichever is the larger.(b) Games and concessions dispensing merchandise.(1) The operators of games, grab-bag concessions, or other operations similar in nature, in which each customer receives some merchandise or prize are regarded as retailers and must collect and remit to the State of Texas the sales tax;  sales to these operators are sales for resale. Tax on the sales of such merchandise or prizes is due on the gross receipts from such operations, and a reimbursement tax shall be collected from their customers. If an operator disposes of both taxable and nontaxable items, his tax to the State of Texas will be measured by the percentage of his taxable sales to his total sales, but not less than the reimbursement taxes collected from his customers. Such operators may give their suppliers resale certificates for taxable items purchased.(2) The operators of games, or other concessions, in which each participant does not receive some merchandise or prize, become the consumers of merchandise so used by them and are liable to the State of Texas for tax based on the sales price or use of the taxable items purchased for use by them. Retailers selling taxable tangible personal property to such operators or concessionaires shall collect and remit to the state the tax due on the sales to them. The Texas use tax is due on out-of-state purchases of taxable tangible personal property based on the purchase price of the merchandise.(c) Gifts, samples, prizes, premiums.(1) Sales of taxable tangible personal property to persons who make gifts of the property or use the property for samples or advertising purposes are taxable. For an explanation of the taxability of an item purchased for use as a prize when the winning of the prizes depends upon chance or skill, see §3.298(f) (1) of this title (relating to Amusement Services).(2) Sales of taxable items to persons who give the property as a premium with bona fide sales of other taxable items are not sales for resale where no additional charge is made for such premiums. However, when a taxable item is given as a premium with an additional charge being made therefor, the premium is purchased for resale and sales tax should be collected on such additional charge.  This does not apply to transactions in which trading stamps are used.(d) Cash discounts. The actual selling price of taxable tangible personal property is the measure of the tax due under the terms of the Limited Sales, Excise, and Use Tax Act. Bona fide cash discounts taken by the buyer at the time of the sale pose no problem, as they are never a part of the sales price and are never in the tax base. However, if cash discounts are taken after the amount of the sales have been used in the measure of the tax, such cash discounts may be deducted from the measure of tax liability for the reporting period in which such discounts are taken in which instance the retailer seeking an adjustment in his tax liability must show he has adjusted pro rata the reimbursement tax collected, if any, from his purchasers. Cash discounts so taken and becoming the basis of a tax adjustment between retailers, their purchasers, and/or the State of Texas, must be substantiated in the accounts, invoices, and records of such retailers to the satisfaction of the comptroller's office.(e) Coupons. When coupons or certificates are accepted by retailers as a part of the selling price of any taxable item, the value of the coupon or certificate is excludable from the tax as a cash discount, regardless of whether the retailer is reimbursed for the amount represented by the coupons or certificate.",
            "sourceNote": "Source Note: The provisions of this 3.301 adopted to be effective January 1, 1976; amended to be effective October 1, 1988, 13 TexReg 3991."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207448&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207448",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.302",
                "label": "Accounting Methods, Credit Sales, Bad Debt Deductions, Repossessions, Interest on Sales Tax, and Trade-Ins"
            },
            "nextRule": {
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                "recordId": "119693",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Affiliate--Any entity that would be classified as a member of an affiliated group under 26 U.S.C., §1504 (Definitions).(2) Assignee--A person to whom either a retailer who made the sale or a private label credit provider transfers the right to claim a credit or refund of Texas sales or use tax paid on a bad debt via a written assignment with specific language transferring the right to claim a credit or refund under this section.(3) Bad debt--Any portion of the sales price of a taxable item that a retailer or private label credit provider cannot collect, and that has been determined to be worthless and actually charged off for federal income tax purposes, provided that the bad debt amount for calculation of the refund or credit is limited to bad debts related to sales that were made by the retailer with whom the person that extended credit entered into the private label credit agreement.(4) Credit sale--Any sale in which the terms of the sale provide for deferred payment of the sales price. Credit sales include installment sales, sales under conditional sales contracts and revolving credit accounts, and sales for which another person extends credit to the purchaser under a private label credit agreement.(5) Private label credit agreement--An agreement by which a person agrees to extend credit to purchasers for credit sales with a retailer or the retailer's affiliates, or franchisees, often using a credit card or other instrument bearing the name or logo of the retailer or the retailer's affiliates or franchisees.(6) Private label credit provider--A person who extends credit to a purchaser under a private label credit agreement.(7) Trade-in--Tangible personal property taken by a seller as all or a part of the consideration for the sale of a taxable item when the property is of a type normally sold by the seller in the regular course of business, and the seller separately states the value of the property to the purchaser by means of an invoice, billing, sales slip, ticket, or contract.(b) Accounting methods.(1) Reporting sales and use tax. For sales and use tax purposes, retailers may use a cash basis, an accrual basis, or any generally recognized accounting basis that accurately reflects the operation of their business. A retailer who wants to use an accounting method to report tax that is not on a pure cash or accrual basis or that is not a generally recognized accounting method must obtain prior written approval from the comptroller.(2) Reporting sales and use tax on rentals and leases. Paragraph (1) of this subsection does not apply to the reporting of sales and use tax on rentals and leases of tangible personal property. See §3.294 of this title (relating to Rental and Lease of Tangible Personal Property) for the accounting of rentals and leases.(c) Credit sales.(1) Service charges. Sales and use tax is due on insurance, interest, finance and carrying charges, and all other service charges incurred as a part of a credit sale unless these charges are stated separately to the purchaser by such means as an invoice, billing, sales slip or ticket, or contract.(2) Accounting methods. Except as provided by paragraph (D), sales and use tax must be reported on a credit sale based upon the accounting method that the retailer uses for its regular books and records.(A) Accrual basis. If a retailer uses an accrual basis of accounting for sales and use tax purposes, the entire amount of sales and use tax is due and must be reported in the reporting period in which the sale occurs.(B) Cash basis. If a retailer uses a cash basis of accounting for sales and use tax purposes, the payment received from the purchaser includes a proportionate amount of sales and use tax, sales price, and may include finance charges. Sales and use tax is due and must be reported in the reporting period in which the payment is received based upon the cash collected, excluding separately stated insurance, interest, or finance and carrying charges.(C) Modified basis. If a retailer uses an accounting method that is not a pure cash or accrual basis, sales and use tax must be reported in a consistent manner that accurately reflects the realization of income from the credit sales on the retailer's books and records. The retailer must obtain prior written approval from the comptroller to use an accounting method that is not a generally recognized method.(D) Cash basis reporting option. A retailer who uses the accrual basis of accounting for its books and records may elect to use the cash basis of accounting for sales and use tax reporting purposes as long as the retailer reports the tax in a manner that accurately reflects the realization of income from cash and credit sales on the retailer's books and records. A change from the accrual basis to the cash basis for reporting sales and use tax is prospective only, and the retailer must establish a procedure to accurately account for sales and use tax received from purchasers during the transition period.(3) Transfer or sale of sales contracts and accounts receivable. At the time a retailer sells, factors, or assigns to a third party the retailer's right to receive all payments due under a credit sale, the unpaid sales and use tax on all remaining payments becomes due immediately. The retailer is responsible for reporting all remaining sales and use tax due on a credit sale to the comptroller in the reporting period in which the contract or receivable is sold, factored, or assigned. No reduction in the amount of sales and use tax to be reported and paid by the retailer is allowed if the transfer to the third party is for a discounted amount. This paragraph does not apply to a retailer's assignment or pledge of contracts or accounts receivable to a third party as loan collateral.(d) Bad debts and repossessions.(1) Bad debts during a reporting period. A retailer is not required to report sales and use tax on any amount that has been entered in the retailer's books as a bad debt during the same reporting period in which the sale occurred, and that will be taken as a deduction for federal income tax purposes on the retailer's federal income tax return during the same or subsequent reporting period.(2) Persons who may claim a credit or refund.(A) Only a retailer, private label credit provider, or assignee or affiliate of either may claim a credit or refund for sales and use tax paid on the bad debt or the unpaid portion of the sales price of a taxable item repossessed under a conditional sales contract.(B) Only one person is entitled to a credit or refund for sales and use tax paid to the comptroller on each bad debt or repossession.(3) Determining the amount of a bad debt or the unpaid portion of the sales price of a taxable item repossessed under a conditional sales contract.(A) The amount is the sales price of the taxable item less all payments and recoveries, including payments applied to interest, fees, and other expenses relating to the sales price of the taxable item under the credit agreement and the proceeds from the sale of an account to a third party.(B) The sales price does not include nontaxable separately stated charges such as finance, carrying, insurance or service charges; or interest from credit extended on sales of taxable items under a conditional sales contract or other contract providing for the deferred payment of the sales price.(C) For a worthless account that includes charges for taxable and nontaxable items, payments on the account are applied to the charges occurring first in time and prorated between taxable and nontaxable charges occurring at the same time.(D) Expenses to collect a bad debt or repossess an item. A person claiming a credit or refund under this subsection cannot add to the credit or refund amount:(i) the expense of collecting a bad debt;(ii) the expense of repossessing or selling a repossessed item; or(iii) the amount that a third party has retained or which has been paid to a third party for the service of collecting a bad debt or the service of repossessing or selling a repossessed item.(E) Any person claiming a bad debt refund or credit must also account for all recoveries on an account. If the retailer or private label credit provider claims a refund or credit that includes accounts sold to a third party, the retailer or private label credit provider must provide the detailed collection amounts for sold accounts. If the person claiming the refund or credit does not have the actual collection information, the comptroller will estimate the post-sale collections in calculating the amount eligible for a refund or credit. The comptroller will estimate the post-sale collections at a rate of 2.5 times the proceeds from the sale of the account.(4) Local sales and use tax. Only the retailer who made the sale, or an affiliate or assignee of the retailer, is entitled to a credit or refund for local sales and use tax paid on a bad debt or the unpaid portion of the sales price of a taxable item repossessed under a conditional sales contract. A person who is not the retailer who made the sale is entitled to a credit or refund under this subsection only for state sales and use tax imposed by Tax Code, §151.051 (Sales Tax Imposed), or §151.101 (Use Tax Imposed), unless the retailer who made the sale expressly assigned its rights to a credit or refund under this subsection.(5) Statute of limitations. A claim for a credit or a refund under this subsection must be submitted within four years from the date a bad debt is actually charged off for federal income tax purposes or the date the taxable item is repossessed, whichever is applicable.(6) Post refund collection on a bad debt or sale of a repossessed item. A person who later collects any payment on a bad debt or sells a repossessed item for which a credit or refund was claimed must report the total amount collected or received from the sale as a taxable sale in the reporting period in which the collection or sale occurs, except when the previous credit or refund amount was calculated by estimating post-sale collections for sold accounts in accordance with subsection (d)(3)(E) of this section.(7) Claiming a credit or refund.(A) Permitted persons. A person who holds, or held at the time of the sale, a valid Texas sales and use tax permit and who is otherwise entitled to claim a credit or refund authorized under this subsection may:(i) claim a credit on the person's sales and use tax report for tax paid on a bad debt only if the person files the tax report electronically and claims the credit in the reporting period in which the person's books reflect the bad debt or subsequent reporting periods; or(ii) request a refund in writing from the comptroller for sales and use tax paid on a bad debt.(B) Non-permitted persons. A person who does not hold a valid Texas sales and use tax permit but is otherwise entitled to a credit or refund under this subsection can only request a refund in writing from the comptroller for sales and use tax paid to the comptroller on the bad debt or the unpaid portion of the sales price of a taxable item repossessed.(C) Records required. A person claiming a credit or requesting a refund for sales and use taxes paid on a bad debt or the unpaid portion of the sales price of a taxable item repossessed must maintain and make available to the comptroller:(i) date of original credit sale and name and Texas sales and use tax permit number of the retailer who collected and remitted the sales and use tax to the comptroller;(ii) amount that the purchaser contracted to pay;(iii) taxable and nontaxable charges;(iv) all other payments or other credits applied to the account of the purchaser;(v) evidence that the uncollected amount has been designated as a bad debt in the books and records of the person who claims the bad debt deduction, and that the amount has been claimed as a bad debt deduction for federal income tax purposes;(vi) identification of each city, county, transit authority, or special purpose district to which local taxes were reported if the claimant is claiming a refund or credit of local taxes;(vii) the sales and use tax collected and remitted to the comptroller; and(viii) any additional records requested by the comptroller to verify a credit or refund claim.(D) Records required for bad debts acquired by assignment or purchase. In addition to the requirements in subparagraph (C) of this paragraph, an assignee claiming a credit or requesting a refund for sales and use tax paid on a bad debt must maintain and make available to the comptroller the following additional information:(i) amount of bad debt acquired;(ii) name and taxpayer number of the original retailer who collected and remitted the sales or use tax;(iii) name and taxpayer number of the person from whom the assignee acquired the bad debt; and(iv) a written assignment with specific language transferring the right to a credit or refund of Texas sales or use tax paid on a bad debt executed by the person from whom the assignee acquired the bad debt.(8) Alternative recordkeeping and tax calculation methods. A person who is otherwise qualified to claim a credit or request a refund under this subsection, and whose volume and character of uncollectible accounts warrants an alternative method of substantiating the refund or credit, may request approval from the comptroller to use an alternative method of maintaining records, or an alternative method of calculating a credit or refund, by submitting a written request to the Audit Division, P.O. Box 13528, Austin, Texas 78711-3528.(A) The comptroller may approve a request to maintain records other than the records specified in paragraph (7)(C) and (D) of this subsection if the records fairly and equitably apportion taxable and nontaxable elements of an uncollectible account or conditional sales contract, and substantiate the amount of Texas sales tax imposed and remitted to the comptroller with respect to the bad debt or unpaid sales price of a taxable item under a conditional sales contract.(B) The comptroller may approve a request to implement a system to report future sales and use tax responsibilities based on a historical percentage calculated from a sample of transactions if the system utilizes records provided by the person claiming the credit or refund and the person who reported and remitted such tax to the comptroller.(C) The comptroller may revoke the authorization to report under paragraph (8)(A) or (B) of this subsection if the comptroller determines that the percentage being used is not representative of the taxpayer's business operations or because of a change in law, including a change in the interpretation of an existing law or rule.(D) A person may submit a new request meeting the requirements of this paragraph after a revocation. The new request should use a method that differs from the alternative method that the comptroller revoked.(E) Approval of an alternative method is prospective only and may not be used to satisfy the requirements of paragraph (7)(C) and (D) of this subsection, concerning records required, for periods prior to the date specified in the written approval.(F) The approval of an alternative method applies to only the person who submitted the written request. The approval does not extend to any other person, regardless of whether the requesting person and the other person are affiliates or file a consolidated federal income tax return.(G) Approval of an alternative recordkeeping method does not apply to any other recordkeeping requirements for any other purpose.(e) Interest on sales and use tax.(1) Cash basis of accounting. Sellers who use a cash basis of accounting and who sell taxable items by means of a credit sale and charge interest on the amount of credit extended, including sales and use tax, are required to remit to the comptroller a portion of the interest that has been collected on the state and local sales and use taxes.(A) If the amount of interest charged on the sales and use tax is 18% or less, the seller must remit to the comptroller one-half of the interest charged on the sales and use tax.(B) If the amount of interest charged on the sales and use tax is greater than 18%, the seller must remit the amount of interest charged less 9.0%. For example, 21% charged less 9.0% deduction equals 12% interest remitted. A seller will not be allowed the 9.0% deduction if the interest rate charged on sales and use tax differs from the interest rate charged on the sales price of the taxable item.(2) Determining the amount of interest. In determining the amount of interest to be remitted to the comptroller, a seller does not need to calculate the interest on each individual account. A formula for the calculation may be used if the formula correctly reflects the amount of interest collected. The formula is subject to verification upon audit of the seller's records.(3) Penalty and interest. Except for the provisions of Tax Code, §151.423 (Reimbursement to Taxpayer for Tax Collections) and §151.424 (Discount for Prepayments), all reporting, collection, refund, and penalty provisions of Tax Code, Chapter 151, including assessment of penalty and interest, apply to interest due.(f) Trade-ins.(1) Acceptable trade-in. The sales price of a taxable item does not include the value of a trade-in that a seller takes as all or part of the consideration for a sale of a taxable item of the same type that is normally sold in the seller's regular course of business. For example, sales and use tax will be due only on the difference between the amount allowed on an old piano taken in trade and the sales price of a new piano.(2) Unacceptable trade-in. The sales price of a taxable item does include the value of a trade-in that a seller takes as all or part of the consideration for the sale of a taxable item, if the trade-in is a different type from the type normally sold by the seller in the regular course of business. For example, a seller who sells only pianos who takes a desk in trade as part of the sales price of a piano collects sales and use tax on the retail sales price of the piano without any deduction for the value of the desk. In this situation, the seller and buyer are considered to be bartering. However, if the seller of pianos is also a seller of desks, the value of the desk is allowed as a trade-in.(3) Tax free items traded-in. Sellers who remove items from a tax-free inventory for use as a trade-in owe sales and use tax on their purchase price of the items. If both parties to a transaction remove items from a tax-free inventory to trade for other items that each party will use, the transaction is regarded as bartering by both parties. Each party to the barter is required to collect sales and use tax on the retail sales price of the item being transferred. For example, a seller of drill pipe trades pipe to a seller of appliances in exchange for a refrigerator. Both sellers are trading the respective items for use, not resale. The pipe seller must collect sales tax on the retail sales price of the pipe. The appliance seller must collect sales tax on the retail sales price of the refrigerator. See §3.336 of this title (relating to Currency, Certain Coins, and Gold, Silver, and Platinum Bullion) for information on persons who barter for taxable items with gold, silver, diamonds, or precious metals.(g) Tax Code, §111.064, provides that interest will be paid on tax amounts found to be erroneously paid and claimed on a request for refund or in an audit. See also §3.325 of this title. Tax paid on an account that is later determined to be uncollectible and written off as a bad debt for federal tax purposes is not tax paid in error and does not accrue interest.",
            "sourceNote": "Source Note: The provisions of this §3.302 adopted to be effective January 1, 1976; amended to be effective November 14, 1984, 9 TexReg 5583; amended to be effective September 16, 1985, 10 TexReg 3323; amended to be effective December 4, 2000, 25 TexReg 11963; amended to be effective November 21, 2002, 27 TexReg 10744; amended to be effective January 6, 2022, 46 TexReg 9410."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=119693&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "119693",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.303",
                "label": "Transportation and Delivery Charges"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19773&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19773",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Transportation charges for taxable items. The sales tax applies to all transportation or delivery charges to a customer when a taxable item is sold, leased or rented on or after October 1, 1987, and delivery charges are billed by the seller or lessor to the purchaser or lessee. The charges for transportation or delivery, both before and after the sale, are taxable even if stated separately from the sales price of a taxable item. These charges are considered to be services or expenses connected to the sale.(b) Charges by third party carriers. A third party carrier (separate legal entity) will not be responsible for collecting or remitting tax as long as the third party carrier only provides transportation and does not sell the taxable item being delivered.(c) Common terminology. The term \"transportation and delivery charges' includes all other terms used by common or contract carries to describe transportation, such as freight, shipping, delivery, or postage.(d) Postage charges. Separately stated charges for postage are not taxable when billed by the seller to a client if the cost of the postage was incurred by the seller at the request of the client to distribute taxable items to third party recipients designated by the seller's client.",
            "sourceNote": "Source Note: The provisions of this §3.303 adopted to be effective December 31, 1987, 12 TexReg 4787; amended to be effective April 13, 2005, 30 TexReg 2083."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19773&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19773",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.304",
                "label": "Morticians and Monument Builders"
            },
            "nextRule": {
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                "recordId": "201433",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Morticians.(1) The mortician is the consumer of all tangible personal property used, consumed, or furnished to the customer in rendering funeral services, regardless of whether or not a separate charge is stated for any such item. As the consumer, the mortician is required to pay the appropriate amount of tax at the time of purchase of all such tangible personal property used, consumed, or furnished in the performance of services.(2) If a mortician sells caskets, boxes, vaults, or other individual items of tangible personal property separately from an agreement to render funeral services, the mortician becomes a retailer and is required to have a limited sales tax permit, and must collect and report the tax on the agreed price of all such tangible personal property sold. Resale certificates may be given in lieu of the tax at the time of purchase only on those individual items purchased for resale.(b) Monument builders.(1) Monument builders are contractors when they install memorials such as tombstones, vaults, and similar items. The provisions of §3.291 of this title (relating to Contractors) apply to their operations.(2) When a monument builder sells a product and no installation is provided, the total charge for the product is taxable. In this instance the monument builder is a manufacturer making a retail sale of the manufactured product.",
            "sourceNote": "Source Note: The provisions of this §3.304 adopted to be effective December 6, 1996, 21 TexReg 11501."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201433&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201433",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.305",
                "label": "Criminal Offenses and Penalties"
            },
            "nextRule": {
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                "recordId": "164254",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) General. Tax Code, Chapter 151, prohibits certain activities and provides criminal penalties for violations.(b) Criminal offenses provided in Tax Code, Chapter 151, include, but are not limited to, the following:(1) A seller commits an offense if the seller directly or indirectly advertises, holds out, or states to a customer or to the public that the tax is not part of the sales price payable by the customer. This offense is a misdemeanor punishable by a fine of not more than $500 for each occurrence.(2) It is not a criminal offense if:(A) a seller indicates in an advertisement, holding out, or statement that the seller is paying the tax due on the purchased item(s) for the customer;(B) the seller does not indicate or imply in the advertisement, holding out, or statement that the sale is exempt or excluded from taxation; and(C) any purchaser's receipt or other statement given to the customer lists the sales price paid or to be paid by the customer, separately states the amount of the tax due on the purchase price, and indicates that the tax will be paid and remitted by the seller.(3) A person commits an offense if the person intentionally or knowingly makes a false entry in, or a fraudulent alteration of, an exemption or resale certificate; makes, presents, or uses an exemption or resale certificate with knowledge that it is false and with intent that the certificate be accepted as valid; or intentionally conceals, removes, or impairs the verity or legibility of an exemption or resale certificate; or unreasonably impedes the availability of an exemption or resale certificate. An offense is:(A) a Class C misdemeanor if the tax avoided by the use of the exemption or resale certificate is less than $20;(B) a Class B misdemeanor if the tax avoided by the use of the exemption or resale certificate is $20 or more but less than $200;(C) a Class A misdemeanor if the tax avoided by the use of the exemption or resale certificate is $200 or more but less than $750;(D) a felony of the third degree if the tax avoided by the use of the exemption or resale certificate is $750 or more but less than $20,000; and(E) a felony of the second degree if the tax avoided by the use of the exemption or resale certificate is $20,000 or more.(4) A person or officer of a corporation commits an offense if the person or the corporation engages in business as a seller in this state without a permit or with a suspended permit. A separate offense is committed each day a person operates a business without a permit or with a suspended permit. An offense is:(A) a Class C misdemeanor for a first offense;(B) a Class B misdemeanor punishable by a fine not to exceed $2,000 for a second conviction;(C) a Class A misdemeanor punishable by a fine not to exceed $4,000 for a third conviction; and(D) a Class A misdemeanor punishable by a fine not to exceed $4,000, confinement in jail for a term not to exceed a year, or both the fine and confinement for a fourth or subsequent conviction.(5) A person commits an offense if the person intentionally or knowingly fails to pay to the comptroller the tax collected by that person. When tax is collected and not paid pursuant to one scheme or continuous course of conduct, all such conduct may be considered as one offense and the amounts of tax collected and not paid may be aggregated in determining the grade of the offense. An offense is:(A) a Class C misdemeanor if the amount of the tax collected and not paid is less than $50;(B) a Class B misdemeanor if the amount of the tax collected and not paid is $50 or more but less than $500;(C) a Class A misdemeanor if the amount of the tax collected and not paid is $500 or more but less than $1,500;(D) a state jail felony if the amount of the tax collected and not paid is $1,500 or more but less than $20,000;(E) a felony of the third degree if the amount of the tax collected and not paid is $20,000 or more but less than $100,000;(F) a felony of the second degree if the amount of the tax collected and not paid is $100,000 or more but less than $200,000; and(G) a felony of the first degree if the amount of the tax collected and not paid is $200,000 or more.(6) A person commits an offense if the person refuses to furnish a report as required by Tax Code, Chapter 151, or by the comptroller. An offense is:(A) a Class C misdemeanor for a first offense;(B) a Class B misdemeanor punishable by a fine not to exceed $2,000 for a second conviction; and(C) a Class A misdemeanor punishable by a fine not to exceed $4,000 for a third or subsequent conviction.(7) A person commits an offense if the person intentionally or knowingly conceals, destroys, makes a false entry in, or fails to make an entry in records that are required to be made or kept under Tax Code, Chapter 151. An offense is a felony of the third degree.(8) A person commits an offense if the person fails to produce or allow inspection of a record that is required to be kept under Tax Code, Chapter 151, within an allowed period of time after a person who is authorized by the comptroller requests the record. Except as provided in paragraph (9) of this subsection, an offense is a Class C misdemeanor. A separate offense is committed each day the person fails to allow inspection of records or fails to produce records after the allowed time period expired. See subsection (c) of this section for certain restrictions.(9) A person commits an offense if the person intentionally fails to produce to the comptroller records that document the taxpayer's taxable sale of items that the taxpayer obtained using a resale certificate. The records to which the offense applies are those required to be kept under Tax Code, §151.025 (Records Required to be Kept), which were requested by the comptroller under Tax Code, §151.023 (Investigations and Audits) and which are not produced in the period required by that section. The items to which the offense applies are items the sales of which are required to be reported to the comptroller under Tax Code, §§151.433 (Reports by Wholesalers and Distributors of Beer, Wine, and Malt Liquor), 154.212 (Reports by Wholesalers and Distributors of Cigarettes), or 155.105 (Reports by Wholesalers and Distributors of Cigars and Tobacco Products). It is an affirmative defense to prosecution under this paragraph that the items listed for purchase on the resale certificate had not been resold at the time of the comptroller's request for records under Tax Code, §151.023. If the conduct described by this paragraph is related to one scheme or continuous course of conduct, all such conduct may be considered as one offense and the amounts aggregated in determining the grade of the offense. See subsection (c) of this section for certain restrictions. An offense is:(A) a Class C misdemeanor if the tax avoided by use of the resale certificate is less than $20;(B) a Class B misdemeanor if the tax avoided by use of the resale certificate is $20 or more but less than $200;(C) a Class A misdemeanor if the tax avoided by use of the resale certificate is $200 or more but less than $750;(D) a felony of the third degree if the tax avoided by use of the resale certificate is $750 or more but less than $20,000; or(E) a felony of the second degree if the tax avoided by use of the resale certificate is $20,000 or more.(c) Inspection and demand for production. Tax Code, §151.023 permits the comptroller to inspect business premises where a taxable event has occurred and to issue a written demand notice to a taxpayer or to an employee, an authorized representative, or agent of the taxpayer for the production of documents within 10 business days of delivery of the notice. This authority will be exercised within the parameters outlined in §3.281(f) of this title (relating to Records Required; Information Required). The comptroller may file criminal charges with appropriate authorities for violations of Tax Code, §151.023, if the taxpayer fails to permit inspection or fails to produce documents in response to a demand by the comptroller's Enforcement Division or Criminal Investigation Division.(d) Confidential information. The comptroller or the attorney general may use taxpayer information or records made confidential by Tax Code, Title 2 to enforce Tax Code, Title 2 or the criminal laws of Texas or the United States, or may authorize the use of information or records made confidential by Tax Code, Title 2 in a judicial or administrative proceeding in which this state, another state, or the federal government is a party.(e) Penal Code.(1) Criminal conspiracy. Penal Code, §15.02 (Criminal Conspiracy) and §15.04 (Renunciation Defense) apply to all criminal offenses prescribed by the Tax Code.(2) Organized crime. A person commits an offense under Penal Code, §71.02, if the person, with the intent to establish, maintain, or participate in a combination or in the profits of a combination or as a member of a criminal street gang, commits or conspires to commit a felony offense prescribed by the Tax Code. The terms \"combination,\" \"profits,\" \"criminal street gang,\" and \"conspires to commit,\" are defined by Penal Code, §71.01.(3) Money laundering. The definition of the term \"proceeds\" in Penal Code, Chapter 34 (Money Laundering) includes funds acquired or derived directly or indirectly from, produced through, or realized through conduct that constitutes an offense under Tax Code, §151.7032 (Failure to Pay Taxes Collected; Criminal Penalty and Aggregation of Amounts Involved).(f) Venue. The venue for prosecution of any offense incurred under Tax Code, Chapter 151 is Travis County or the county in which any element of the offense occurs. If prosecution for engaging in criminal conspiracy, an organized criminal activity, or money laundering is based upon an offense classified as a felony under the Tax Code, the venue for prosecution of the conspiracy, organized criminal activity, or money laundering is any county in which venue for the underlying offense is proper under the Tax Code.",
            "sourceNote": "Source Note: The provisions of this §3.305 adopted to be effective February 18, 2002, 27 TexReg 1177; amended to be effective September 23, 2013, 38 TexReg 6224; amended to be effective October 13, 2020, 45 TexReg 7270."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=164254&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "164254",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.306",
                "label": "Sales of Mobile Offices, Oilfield Portable Units, Portable Buildings, Prefabricated Buildings, and Ready-Built Homes"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19774&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19774",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Definitions. The following words and terms when used in this section shall have the following meanings, unless the context clearly indicates otherwise.(1) Bunkhouse--This term has the meaning given in §3.72 of this title (relating to Trailers, Farm Machines, and Timber Machines).(2) Contract for the improvement to realty--A contract, as described in §3.347(a) of this title (relating to Improvements to Realty). Such a contract includes installation or set-up performed to permanently affix a structure defined in this section to real property.(3) House trailer--This term has the meaning given in §3.72 of this title.(4) Installation or set-up--Activities associated with either a contract for the improvement to real property or the temporary placement of a structure defined in this section, including, but not limited to, spotting the structure; preparing the foundation; connecting separate sections of the structure, if any; placing, blocking, leveling, and anchoring the structure; connecting sewer, water, electricity, and other utilities; and installing skirting, awnings, and steps.(5) Manufactured home--This term has the meaning given in §3.481 of this title (relating to Imposition and Collection of Manufactured Housing Tax).(6) Mobile office--A self-contained transportable structure built on a permanent chassis, with or without wheels, axles, and a towing device, that is designed to be used as an office, sales outlet, or other work place, such as a self-contained portable bathroom or a portable on-site dressing room. A food and beverage concession trailer is an example of a towable structure designed to be used as a sales outlet or other work place.(7) Oilfield portable unit.(A) A self-contained transportable structure built on a permanent chassis, with or without wheels, axles, and a towing device, designed to be used for temporary lodging or temporary office space that:(i) does not require attachment to a foundation or real property to be functional;(ii) is located exclusively upon, or immediately adjacent to, the lease premises or assigned acreage of an oil, gas, water disposal, or injection well located within an oil or gas lease, field, pooled unit, or unitized tract;(iii) is used exclusively to provide sleeping accommodations, temporary office space, or any other temporary work space for employees, contractors, or other workers at an oil, gas, water disposal, or injection well; and(iv) is not a travel trailer, camper trailer, or recreational vehicle.(B) Examples of items that qualify as an oilfield portable unit when located and used exclusively as provided in this paragraph include, but are not limited to, a bunkhouse, trailer, semitrailer, park model, house trailer, and manufactured home. For more information regarding the taxation of travel trailers, camper trailers, and recreational vehicles, refer to §3.72 of this title.(8) Park model--This term has the meaning given in §3.481 of this title.(9) Portable building--A self-contained transportable structure that does not require attachment to a foundation or to realty in order to be functional. An example of a portable building is a tool shed.(10) Prefabricated building--A structure, not designed to be a residential dwelling, built at a location other than its permanent site, and that is later transported in one or more sections and affixed to real property.(11) Ready-built home--A structure that does not bear a label or decal issued by the Texas Department of Licensing and Regulation, the Texas Department of Housing and Community Affairs, or the U.S. Department of Housing and Urban Development, but that is designed to be a residential dwelling which is constructed, precut, partially assembled, or fabricated in whole or in part at a location other than the home site and subsequently transported, in one or more sections, to the home site, where it is assembled on a permanent foundation.(12) Travel trailer or recreational vehicle--This term has the meaning given in §3.72 of this title.(13) The terms mobile home, ready-built home, prefabricated building, and portable building do not include a house trailer, as defined in and subject to the provisions of Tax Code, Chapter 152, or a manufactured home, as defined in and subject to the provisions of Tax Code, Chapter 158. See §3.72 and §3.481 of this title.(b) Application of the sales and use tax to mobile offices, oilfield portable units, portable buildings, prefabricated buildings, ready-built homes, and tangible personal property.(1) Mobile offices. A sale, lease, or rental of a mobile office is a taxable sale of tangible personal property. Sales tax is due on the total sales price charged by the seller, including charges for delivery and installation or set-up, even if separately stated on the invoice issued to the purchaser. See §3.303 of this title (relating to Transportation and Delivery Charges) and §3.294 of this title (relating to Rental and Lease of Tangible Personal Property).(2) Oilfield portable units. A sale, lease, or rental of an oilfield portable unit is subject to sales tax. Sales tax is due on the total sales price charged by the seller, including charges for delivery and installation or set-up, even if separately stated on the invoice issued to the purchaser. See §3.303 and §3.294 of this title.(A) An oilfield portable unit that ceases to be used exclusively as an oilfield portable unit, as required by this section, and that meets the definition of a motor vehicle, pursuant to Tax Code, §152.001(3), is subject to tax imposed by Tax Code, Chapter 152. Examples include bunkhouses, trailers, semitrailers, park models, or house trailers. For more information regarding the application of the Motor Vehicle Sales Tax to oilfield portable units, refer to §3.72(c) of this title.(B) The lease or rental of a manufactured home as defined in §3.481 of this title that ceases to be used exclusively as an oilfield portable unit as required by this section is subject to hotel occupancy tax as provided under Tax Code, Chapter 156.(3) Portable buildings. A sale, lease, or rental of a portable building is a taxable sale of tangible personal property. Sales tax is due on the total sales price charged by the seller, including charges for delivery and installation or set-up, even if separately stated on the invoice issued to the purchaser. See §3.303 and §3.294 of this title.(4) Prefabricated buildings and ready-built homes.(A) A contract to sell a prefabricated building or a ready-built home is considered a contract for an improvement to real property when the seller is required to build, transport, and affix the structure to a permanent site. See §3.347 of this title. If the contract requires the seller to perform installation or set-up services, the seller's sales tax responsibilities are determined by whether the contract is a lump-sum contract or a contract that separately states charges for materials and labor. See §3.291 of this title (relating to Contractors).(B) The sale of a ready-built home or a prefabricated building that is not at the time of sale affixed to its permanent site is a taxable sale of tangible personal property if sold to a person responsible for affixing the structure to real property.(5) Structures deemed to be tangible personal property. A sale of a structure that is affixed to real property is nonetheless a taxable sale of tangible personal property if the purchaser is obligated to remove the structure from its site.(6) Tangible personal property affixed to real property. An \"in-place\" sale of items such as fixtures, machinery, and equipment is considered a sale of tangible personal property if the seller:(A) is a lessee of the real property or structure to which the items are affixed; and(B) has the present right to remove the items either as trade fixtures or under the express terms of the lease. Sales tax is due on that portion of the total consideration allocable to the in-place items without regard to the fact of their physical attachment to real property.(c) Application of limited sales and use tax to manufactured homes.(1) Limited sales or use tax is due on parts or accessories installed in a manufactured home by the retailer of the manufactured home, whether the home is sold alone or as part of a contract for the improvement to realty. See §3.291 of this title.(A) If the retailer sells the home for a lump sum amount that includes both the home and parts, the retailer should not collect limited sales or use tax on the lump sum charge. The retailer must pay limited sales or use tax on the parts at the time of purchase.(B) If the retailer separates the charge to the customer into one charge for the home and a separate charge for the additional parts, the retailer must collect limited sales or use tax on the amount charged for the parts. The retailer may issue a resale certificate in lieu of tax when purchasing the parts.(C) If a third party sells and installs the items, the installer's sales tax responsibilities are determined by whether the contract separates charges for materials from charges for labor. If the installer charges a lump-sum amount for materials and labor, the installer should not collect tax on the lump-sum charge, and the installer must pay limited sales or use tax on the parts at the time of purchase. If the installer separately states the charges for materials and labor, the installer must collect limited sales tax on the amount charged for the parts, and the installer may issue a resale certificate in lieu of tax when purchasing the parts.(2) A manufactured home affixed to real property, including placement on a foundation and/or supporting, blocking, leveling, securing, anchoring, and connecting multiple sections, is presumed to be an improvement to real property for sales and use tax purposes.(3) Repair, remodeling, restoration and maintenance.(A) Sales or use tax is not due on labor for the repair, remodeling, restoration, and maintenance of a manufactured home affixed to real property and used for residential purposes pursuant to §3.291 of this title. Residential use of a manufactured home occurs when the building is occupied as a home or residence by the owner or by a tenant who occupies the building under a contract for an express initial term of more than 29 consecutive days. Absent a contract, only the period exceeding 29 consecutive days will be considered residential use, when supported by valid documentation, such as receipts or canceled checks.(B) Sales or use tax is due on the repair, remodeling, and restoration of a manufactured home affixed to real property and used for nonresidential purposes pursuant to §3.357 of this title (relating to Nonresidential Real Property Repair, Remodeling, and Restoration; Real Property Maintenance).(C) Sales or use tax is due on the repair, remodeling, restoration, and maintenance of a manufactured home temporarily affixed to real property pursuant to §3.292 of this title (relating to the Repair, Remodeling, Maintenance, and Restoration of Tangible Personal Property). A manufactured home temporarily affixed to real property is deemed to be tangible personal property if the owner of the home is a lessee of the real property to which the home is affixed and is obligated to remove the home from the real property under the express terms of the lease without regard to the home's attachment to the real property. For example, a manufactured home used exclusively to provide sleeping accommodations for employees, contractors, or other workers at a construction site is temporarily affixed to the real property.",
            "sourceNote": "Source Note: The provisions of this §3.306 adopted to be effective January 1, 1976; amended to be effective October 7, 1980, 5 TexReg 3842; amended to be effective October 13, 1982, 7 TexReg 3497; amended to be effective May 8, 2006, 31 TexReg 3717; amended to be effective November 14, 2013, 38 TexReg 7969."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19774&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19774",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.307",
                "label": "Florists"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187509&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "187509",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Local tax--City (including industrial development corporation), county, mass transit authority, city transit department, county health services, emergency service district, and/or crime control district sales or use tax.(2) Local taxing jurisdiction--A local jurisdiction imposing local tax.(b) Sales tax is due on amounts charged by a Texas florist for taxable items delivered within Texas even though the florist taking the order instructs an unrelated florist to make delivery. The tax is not due on the amount received by an unrelated florist making the delivery.(c) Sales tax is due on amounts charged by a Texas florist for taxable items purchased in Texas for delivery outside the state. Tax is due whether the items are delivered by the florist who took the order or by an unrelated florist outside Texas who is instructed to make delivery.(d) Use tax is not due on amounts received by a Texas florist who makes deliveries in Texas at the instructions of an unrelated florist taking an order outside Texas.(e) Delivery charges, whether charged by a florist taking an order or by an unrelated florist, are taxable even though stated separately from charges for taxable items.(f) Sales tax is due on charges for telephone calls or telegrams even when separately stated to the customer. The florist may not give the provider of telecommunications services a resale certificate in lieu of tax. The telecommunications service is not resold to the florist's customer but is used by the florist in making sales of floral arrangements. The charge for the telecommunications service is passed on to the florist's customer as an expense connected with the sale of the arrangement.(g) Sales tax is not due on the purchase of wires, stems, vases, etc., which are later sold as part of a flower arrangement. See §3.300 of this title (relating to Manufacturing; Custom Manufacturing; Fabricating; Processing).(h) Local sales tax is due to the local taxing jurisdiction of a florist taking an order for a taxable item.  Local tax is not due to the local taxing jurisdiction of an unrelated florist making delivery.(i) If a florist has more than one place of business, local sales tax is due based on the local taxing jurisdiction where the place of business taking the order is located.(j) Local use tax is not due when a florist located outside a local taxing jurisdiction takes an order and delivers the order into a local taxing jurisdiction or instructs an unrelated florist to make delivery in a local taxing jurisdiction. Local use tax is not due on amounts received by a Texas  florist who  makes a delivery in a local taxing jurisdiction at the instructions of an unrelated florist taking an order either outside the state or outside a local taxing jurisdiction.",
            "sourceNote": "Source Note: The provisions of this §3.307 adopted to be effective May 20, 1985, 10 TexReg 1428; amended to be effective November 19, 1987, 12 TexReg 4121; amended to be effective August 29, 1990, 15 TexReg 4701."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187509&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "187509",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.308",
                "label": "Computers--Hardware, Computer Programs, Services, and Sales"
            },
            "nextRule": {
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                "recordId": "92831",
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Computer program--A series of instructions that are coded for acceptance or use by a computer system and that are designed to permit the computer system to process data and provide results and information. The series of instructions may be contained in or on magnetic tapes, semiconductor chips, punched cards, printed instructions, or other tangible or electronic media.(2) Contract programming--Services to create or develop a new computer program, or to repair, maintain, modify, or restore an existing computer program, when the person performing the services did not sell, and retains no rights in, the computer program being created, developed, repaired, maintained, modified, or restored.(A) Examples of contract programming include:(i) writing a new computer program to perform a particular function for the customer where all rights in the program are transferred to the customer;(ii) customizing a computer program owned by the customer or licensed to the customer by a third party; or(iii) modifying a computer program or performing repair, maintenance, or restoration on a computer program that the programmer wrote for the customer under a prior contract programming agreement.(B) Contract programming only occurs when the person performing the programming services transfers all rights, including intellectual property rights such as those rights arising from copyrights, patents, and trade secret laws, to the computer program being created, developed, modified, maintained, repaired, or restored to the purchaser of the contract programming services. Notwithstanding other provisions of this paragraph, a person performing contract programming services may retain rights to property including materials, tools, methods, and processes used in the performance of the service. A person performing contract programming services may also retain rights to an incidental program or incidental component of a program included under an agreement to provide contract programming services. Examples of incidental programs and incidental components of a program are installers, drivers, macros, and subroutines.(3) Internet hosting--Providing to an unrelated user access over the Internet to computer services using property that is owned or leased and managed by the provider and on which the user may store or process the user's own data or use software that is owned, licensed, or leased by the user or provider. The term does not include telecommunications services.(b) Hardware.(1) The sale, lease, or rental of computer hardware, including central processing units and all peripheral equipment, parts, and supplies, is subject to the sales and use tax.(2) A taxable rental or lease can occur without the right to move the hardware if the lessee has total operational control of the hardware. For example, a lessee may contract to use a computer on the owner's premises for an exact period of time weekly. The lessee provides the operator and all materials. During the time of use by the lessee, no one else may use the hardware. This transaction constitutes a transfer of the total operational control of the hardware, which is a lease or rental of tangible personal property. However, if the owner provides and directs the operator, operational control has not been transferred to the lessee. The transaction will not be considered the rental or lease of the hardware. Note: if the only supervision provided by the owner is for maintenance or training on proper use, this is not providing an operator. See §3.294 of this title (relating to Rental and Lease of Tangible Personal Property).(3) Sales tax is due on charges for labor or services rendered in installing or applying computer hardware.(4) Sales tax is due on charges for labor or services rendered in remodeling, repairing, maintaining, or restoring computer hardware. See §3.292 of this title (relating to Repair, Remodeling, Maintenance, and Restoration of Tangible Personal Property).(5) Installation charges for remote terminals are taxable whether or not separately stated. Charges for telephone lines are taxable.(c) Computer programs and related services.(1) Computer programs.(A) The sale, lease, or license of a computer program is a sale of tangible personal property. Tax is due when the computer program, or a license to use the computer program, is transferred for consideration in Texas, or stored, used, or consumed in Texas, in electronic form or on physical media.(B) Sales price. The sales price of a computer program includes all charges made in connection with the sale of the program, which may include charges for installation, modification, repair, maintenance, or restoration, whether or not separately stated.(C) The sales price of a computer program, or a single license for a computer program, that is sold or used in Texas may not be allocated to other states based on the purchaser making copies of the program for use in another state; installing the program on hardware located in another state; or accessing the program in another state.(2) Computer program repair, maintenance, and restoration. Charges for computer program repair, maintenance, or restoration by a person who sold the computer program are taxable. Computer program repair, maintenance, or restoration includes error correction, technical fixes, and technical support, whether provided over the Internet or over the phone.(3) Instruction. Separately stated charges for instruction on the use of the computer program by a person who sold the computer program are not taxable.(4) Contract programming services. Contract programming may result in the creation of tangible personal property, but it does not constitute the sale thereof. Charges for contract programming are charges for a service and are not taxable.(d) Sales. The following are examples of transactions which involve the sale of taxable items and are taxable.(1) A separate charge for additional copies of the result of services is taxable.(2) The charge for processing, printing, or producing tangible personal property by a computer is taxable unless the processing, printing, or producing is performed as an incidental part of a nontaxable service. Examples of taxable processing, printing, or producing include standardized amortization or depreciation tables, newsletters, and advertising.(e) Sales for resale.(1) A resale certificate may be issued by a purchaser only if hardware or a computer program is purchased for the exclusive purpose of resale. If the purchaser makes a taxable use of the hardware or computer program while holding it for resale, the purchaser is liable for sales tax. See §3.285 of this title (relating to Resale Certificate; Sales for Resale).(2) Internet hosting providers.(A) A sale for resale includes the sale of a computer program to an Internet hosting provider in a transaction that meets all criteria in this subparagraph, regardless of whether care, custody, and control of the computer program is transferred to the user of the Internet hosting service.(i) The Internet hosting provider acquires the program from an unrelated vendor for the purpose of selling the right to use the program to an unrelated user of the provider's Internet hosting services in the normal course of business and in the form or condition in which the provider acquired the program;(ii) the Internet hosting provider offers the unrelated user a selection of computer programs that are available to the public for purchase directly from an unrelated vendor;(iii) the Internet hosting provider executes a written contract with the unrelated user that specifies the name of the computer program sold to the unrelated user and includes a charge to the unrelated user for computing hardware;(iv) the unrelated user purchases the right to use the computer program from the Internet hosting provider through the acquisition of a license; and(v) the Internet hosting provider does not retain the right to use the computer program under that license.(B) The performance by the Internet hosting provider of routine maintenance of the computer program that is recommended or required by the unrelated vendor of the computer program does not affect the application of subparagraph (A) of this paragraph.",
            "sourceNote": "Source Note: The provisions of this §3.308 adopted to be effective January 1, 1976; amended to be effective April 11, 1980, 5 TexReg 1288; amended to be effective February 18, 1981, 6 TexReg 507; amended to be effective May 9, 1983, 8 TexReg 1343; amended to be effective October 19, 1984, 9 TexReg 5163; amended to be effective November 11, 1985, 10 TexReg 4184; amended to be effective December 31, 1987, 12 TexReg 4787; amended to be effective January 22, 2018, 43 TexReg 353."
        },
        {
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            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
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            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.310",
                "label": "Laundry, Cleaning, and Garment Services"
            },
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                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Personal services means all services listed under Group 721, Major Group 72 of the Standard Industrial Classification Manual, 1972. Personal services listed in Group 721 are laundry, cleaning, and garment services.(b) Sales tax is due on laundry, cleaning, and garment services. A person who performs these services is required to collect sales tax from the customer. Examples of laundry, cleaning, and garment services include, but are not limited to:(1) carpet cleaning and repairing, except carpet repairing performed in residential structures;(2) diaper cleaning service;(3) drapery cleaning services;(4) dry cleaning services for garments or rugs;(5) fur garment cleaning, repairing, and storage;(6) garment alterations and repairs;(7) ironing or pressing garment services;(8) mending services;(9) power and hand laundry services;(10) rug cleaning, dying, and repairing services;(11) tailoring garments;(12) treating or applying protective chemicals to carpet, upholstery, rugs, or drapery;(13) upholstery cleaning and repairs;(14) uniform or linen cleaning services that provide only the services to clean or launder the customers' uniforms or linens; and(15) valet services.(c) A person who performs services that are taxable under this section must pay sales tax on cleaning supplies (chemicals, soaps, etc.), machinery, tools, utilities, and equipment used to perform laundry, cleaning, and garment services.(d) A person who performs services that are taxable under this section may issue a resale certificate in lieu of paying sales tax on the purchase of items that are transferred to the customer as an integral part of the laundry, cleaning, and garment personal services. Examples include buttons and thread used in mending or tailoring. Examples of items transferred in residential carpet, drapery, or upholstery cleaning include: carpet protectors, fire retardants, antistatic applications, flea killers, and rust inhibitors. See §3.285 of this title (relating to Resale Certificate; Sales for Resale). Wrapping and packaging supplies do not qualify for the resale exemption, and sales tax is due on the purchase of wrapping and packaging supplies that are used to provide taxable services, unless a laundry or dry cleaner purchases the supplies as provided in subsection (j) of this section.(e) Sales tax is not due on personal services provided through coin-operated machines that are operated by the customer.(f) Sales tax is not due on personal services if performed by an employee for his employer as part of employee's regular duties for which he is paid. Sales tax is due on personal services that are performed on a contractual basis between two or more parties.(g) Sales tax is not due on repairs to carpet in residential real property. See §3.291 of this title  (relating to Contractors).(h) Exemption for labor to restore real or tangible personal property in a disaster area.(1) Labor to restore, including cleaning, laundering, repairing, treating, or applying protective chemicals to, real or tangible personal property is exempt if:(A) the amount of the charge for labor is separately itemized; and(B) the repair is to property damaged within a disaster area by the condition that caused the area to be declared a disaster area.(2) The exemption does not apply to tangible personal property transferred as part of the repair.(3) In this subsection, \"disaster area\" means:(A) an area declared a disaster area by the governor of Texas under Government Code, Chapter 418; or(B) an area declared a disaster area by the president of the United States under 42 United States Code §5141.(i) Records must be kept on all personal services performed. Sales tax is due on the total receipts if adequate records are not maintained. See §3.281 of this title (relating to Records Required; Information Required).(j) Sales tax is not due on wrapping, packing, and packaging supplies that are purchased by a person who performs laundry or dry cleaning services, if the supplies are used to wrap, pack, or package an item that the person has pressed and dry cleaned or laundered in the regular course of business. For the purpose of this section, wrapping, packing and packaging supplies include hangers, safety pins, pins, inventory tags, staples, boxes, paper wrappers, and plastic bags. A person who performs laundry or dry cleaning services may issue an exemption certificate in lieu of paying tax to a supplier at the time of the person's purchase of the supplies. See §3.287 of this title (relating to Exemption Certificates). A person who owns coin-operated or other self-service garment cleaning facilities is not considered to be a laundry or dry cleaner.",
            "sourceNote": "Source Note: The provisions of this §3.310 adopted to be effective December 10, 1984, 9 TexReg 6017; amended to be effective November 28, 1990, 15 TexReg 6602; amended to be effective January 1, 1992, 16 TexReg 7360; amended to be effective February 10, 1994, 19 TexReg 633; amended to be effective July 19, 2000, 25 TexReg 6776; amended to be effective March 3, 2002, 27 TexReg 1334."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126274&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126274",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.311",
                "label": "Auctioneers, Brokers, and Factors"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=28626&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "28626",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context indicates otherwise.(1) Auction or auctioning--The sale by an auctioneer of tangible personal property by competitive bid.(2) Auctioneer--A person who owns tangible personal property or to whom tangible personal property has been consigned and who offers the tangible personal property for sale at auction.(3) Broker--A person who brings other people together to bargain for the sale or purchase of taxable items. In absence of contractual provisions to the contrary, a broker:(A) may not have possession of property;(B) cannot cause title of property to be transferred to a purchaser without further action on the part of its owner; and(C) has disclosed to the purchaser the identity of the broker's principal.(4) Disclosed principal--A principal is considered to be disclosed if before or at the time of sale the purchaser has been given notice of the principal's identity.(5) Factor--A person who sells taxable items belonging to a principal on consignment. A factor:(A) has possession and control of property;(B) can cause title of property to be transferred to a purchaser without further action on the part of its owner; and(C) has not disclosed to the purchaser the identity of the factor's principal.(6) Principal--A person who employs a broker or factor to act in the principal's behalf in negotiating with a purchaser for the sale of a taxable item.(b) Responsibility of an auctioneer.(1) Sales tax is due from the purchaser on the sales price of taxable items sold at auction.(2) An auctioneer is responsible for collecting and remitting to the comptroller any tax due on the sale of taxable items sold at auction by the auctioneer.(3) An auctioneer who does not receive payment for the item sold, does not issue a bill of sale or invoice to the purchaser of the item, and who does not issue a check or other remittance to the owner of the item sold by the auctioneer is not considered a seller responsible for the collection of the tax. In this instance, it is the owner's responsibility to collect and remit the tax.(4) An auctioneer should not collect tax on the sale of items that are exempt from sales tax such as motor vehicles, real property, or livestock.(5) Sales tax is not due on a sale of a taxable item when the owner of the item subsequently reclaims the property at the auction.(c) Letter of waiver. A person, who is seeking an auctioneer's license and requires a letter of waiver as proof no sales tax permit is required, may request a letter of waiver from the comptroller.(1) A request for a letter of waiver from the comptroller as proof no sales tax permit is required must be in writing and must detail the basis or reason no sales tax permit is required.(2) If the items being auctioned are exempt from sales tax or if the auctioneer is not considered a seller, a letter of waiver will be issued.(3) A letter of waiver is valid only so long as there is no change in the fact situation as originally presented to the comptroller.(d) Responsibility of a broker.(1) Sales tax is due on sales solicited by a broker if the principal is a seller as defined by Tax Code, §151.008; and the sale would not otherwise meet the definition of an occasional sale as found in §3.316 of this title (relating to Occasional Sales; Joint Ownership Transfers; Sales by Senior Citizens' Organizations; Sales by University and College Student Organizations; and Sales by Nonprofit Animal Shelters). The principal is responsible for collecting and reporting the tax.(2) Sales tax is not due on sales solicited by a broker if the principal is not a seller and the sale would otherwise meet the definition of occasional sale as found in §3.316 of this title (relating to Occasional Sales; Joint Ownership Transfers; Sales by Senior Citizens' Organizations; Sales by University and College Student Organizations; and Sales by Nonprofit Animal Shelters).(e) Responsibility of a factor. Sales tax is due on sales made by a factor. A factor is required to collect and report tax on all sales.(f) Reference. Auctioneers and factors should refer to §3.286 of this title (relating to Seller's and Purchaser's Responsibilities).",
            "sourceNote": "Source Note: The provisions of this §3.311 adopted to be effective December 6, 1996, 21 TexReg 11503; amended to be effective September 5, 2006, 31 TexReg 7133."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=28626&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "28626",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.312",
                "label": "Graphic Arts or Related Occupations; Miscellaneous Activities"
            },
            "nextRule": {
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                "recordId": "165933",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Decorative or informative activities; graphic art.(1) Photographers, commercial artists, portrait painters, and persons who draw, paint, engrave, and etch are graphic artists.(2) Persons who paint or apply decorative material to tangible personal property are also engaged in graphic art activities. Examples of graphic artists performing decorative or informative activities include painting murals, pinstriping, or painting signs on motor vehicles.(3) Sales tax is due and should be collected by the graphic artist from the customer on the total charge for the art.(4) Persons who furnish their own supplies in pursuit of their work including photographers, commercial artists, portrait painters, etc., shall pay a tax on their supplies, equipment, and any other taxable items used by them. However, when supplies or materials will become an ingredient or component part of a finished product held for sale, the materials are not subject to tax at the time of purchase by the artist. See §3.300 of this title (relating to Manufacturing; Custom Manufacturing; Fabricating; Processing).(b) Printing, imprinting, word processing, and multiple reproduced computer-generated material.(1) Sales tax is due on the total charge for producing multiple copies of printed material regardless of the type of equipment used in the reproduction.(2) Multiple copies include computer-generated form letters produced with a slight variation which personalizes essentially the same letter. Tax applies to the entire charge without deduction for charges for setting up the machine, keyboarding, or assembling the material. Charges for providing additional copies are taxable regardless of whether the original was prepared using a typewriter or word processing equipment.(3) Sales tax is due on charges for furnishing original letters or other printed material prepared by using word processing or other data processing equipment. See §3.330 of this title (relating to Data Processing Services).(4) Persons who produce, process, print, or imprint tangible personal property, when the materials used in these processes have been furnished by the customer, must collect sales tax on the total charge for such work. This includes photo finishers, book binders, printers, and film developers.(c) Protective or maintenance activities.(1) The repair, remodeling, maintenance, and restoration of tangible personal property is a taxable service. The total amount charged the customer for labor and materials is subject to tax.(2) Persons who apply substances to tangible personal property, other than motor vehicles, private aircraft, and commercial vessels, for the purpose of protection or maintenance are covered by §3.292 of this title (relating to Repair, Remodeling, Maintenance, and Restoration of Tangible Personal Property). Examples of protective or maintenance activities for tangible personal property other than motor vehicles, private aircraft, or commercial vessels include painting, rustproofing, undercoating, chrome plating, and the application of polishes, waxes, and glazes.(3) Persons maintaining private aircraft, motor vehicles, or commercial vessels should refer to §3.359 of this title (relating to Motor Vehicle and Private Aircraft). When private aircraft, motor vehicles, or commercial vessels are being protected or maintained, such as the application of decorative molding, sunshield, and tinting to motor vehicles, it makes no difference if an item is being painted or repainted, coated or recoated, waxed or rewaxed. The taxability of the activity will be determined by the type of contract used, or, in absence of a contract, the type of billing, either lump-sum or separated, which is used by the provider of the activity. Persons repairing or maintaining aircraft other than private aircraft should refer to §3.297 of this title (relating to Carriers).",
            "sourceNote": "Source Note: The provisions of this §3.312 adopted to be effective January 1, 1976; amended to be effective October 30, 1984, 9 TexReg 5387; amended to be effective February 12, 1986, 11 TexReg 547; amended to be effective October 3, 1990, 15 TexReg 5412; amended to be effective July 29, 1992, 17 TexReg 5119."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=165933&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "165933",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.313",
                "label": "Cable Television Service and Bundle Cable Service"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=92834&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "92834",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Bundled cable service--The provision of cable television service and at least one other taxable service by a cable service provider through a cable system for a single price. Other taxable services may include, but are not limited to, telecommunications services, as defined in §3.344 of this title (relating to Telecommunications Services); Internet access services, as defined in §3.366 of this title (relating to Internet Access Services); data processing services, as defined in §3.330 of this title (relating to Data Processing Services); information services, as defined in §3.342 of this title (relating to Information Services); and security services, as defined in §3.333 of this title (relating to Security Services). Services sold to a purchaser by a third party, rather than the cable service provider, are not bundled cable services even if they are provided by means of a cable system.(2) Cable service provider--A person who provides cable television service or bundled cable service through a cable system.(3) Cable system--The system through which a cable service provider delivers cable television or bundled cable service. A cable system may comprise any or all of the following: tangible personal property; real property; and other media, such as radio waves, microwaves, or any other means of conveyance now in existence or that may be developed.(4) Cable television service--The digital distribution of video programming to purchasers by any means now in existence or that may be developed. The term includes, but is not limited to, direct broadcast satellite service (DBS); subscription television service (STV); satellite master antenna television service (SMATV); master antenna television service (MATV); multipoint distribution service (MDS); multichannel multipoint distribution service (MMDS); fixed programming; any audio portion of a video program; streaming video programming provided via the Internet or other technology, regardless of the type of device used by the purchaser to receive the service; video on demand services or subscription services that allow purchasers to choose from a library of available content; and any other video programming provided in exchange for consideration. The term does not include the provision of tangible personal property, such as video content that has been downloaded by the purchaser or is stored on a compact disc or other physical media, or the provision of telecommunications services, as defined in §3.344 of this title.(5) Fixed physical connection--The place at a purchaser's residence or business where the cable service provider or its agent, or the purchaser, by agreement with the cable service provider, has installed any materials or equipment that connect the purchaser to the provider's cable system. For example, a coaxial cable connection at a distribution box or an outdoor antenna or dish that connects to a satellite receiver is a fixed physical connection. The connection of equipment, such as a personal computer, Internet-ready television, or other device that allows the purchaser to view content that is not provided directly by the cable service provider, does not create a fixed physical connection.(6) Nomadic access--The ability to access cable television service or bundled cable service from multiple locations with or without the use of a fixed physical connection.(7) Point of delivery--The physical address of the purchaser's fixed physical connection or, in the absence of such connection, the physical address of the purchaser at which the cable television or bundled cable service is considered to be received, as determined in subsection (g)(3) of this section.(b) Imposition of tax. The sale of cable television or bundled cable service, and any services or expenses connected to the provision of the service, are subject to sales and use tax.(1) Taxable charges include:(A) service connection fees. The term \"service connection fee\" includes terms such as \"installation,\" \"connect,\" or \"reconnect;\"(B) charges for video programming services;(C) charges for tangible personal property, such as converters, descramblers, and digital video recorders, transferred to the care, custody, and control of purchasers as an integral part of the services provided;(D) amounts billed to purchasers for repairs or maintenance;(E) municipal franchise fees; and(F) any licensing fees for the right to receive or distribute a satellite signal.(2) Unrelated services.(A) A service will be considered as unrelated if:(i) it is not a cable television service or bundled cable service, nor a service taxed under other provisions of Tax Code, Chapter 151;(ii) it is of a type which is commonly provided on a stand-alone basis; and(iii) the performance of the service is distinct and identifiable.(B) Where nontaxable unrelated services and taxable services are sold or purchased for a single charge and the portion relating to taxable services represents more than 5.0% of the total charge, the total charge is presumed to be taxable. The presumption may be overcome by the taxable service provider at the time the transaction occurs by separately stating to the purchaser a reasonable charge for the taxable services. If the charge for the taxable portion of the services is not separately stated at the time of the transaction, the service provider or the purchaser may later establish for the comptroller, through documentary evidence, the percentage of the total charge that relates to nontaxable unrelated services. The service provider's books must support the apportionment between exempt and nonexempt activities based on the cost of providing the service or on a comparison to the normal charge for each service if provided alone. If the charge for exempt services is unreasonable when the overall transaction is reviewed considering the cost of providing the service or a comparable charge made in the industry for each service, the comptroller will adjust the charges and assess additional tax, penalty, and interest on the taxable services.(c) Deposits. A deposit that represents future payment for cable television or bundled cable service is part of the sales price of the service and is taxable when the deposit is used to pay for the service. A deposit paid to receive equipment that is transferred to the care, custody, and control of the purchaser as an integral part of the service, such as a converter that is returned to the cable service provider when the service is terminated, is not taxable.(d) Sales for resale.(1) Taxable services. A cable service provider may issue a resale certificate to purchase a taxable service tax-free in the following circumstances:(A) if the service will be transferred as an integral part of the cable television or bundled cable service. For example, if a cable service provider sells a bundled cable service that includes data storage, and the provider purchases data storage capacity from a third party, then the provider may issue a resale certificate to the provider of the data storage capacity; or(B) if the service is performed on tangible personal property that the cable service provider will transfer to the care, custody, and control of the purchaser as an integral part of the cable television or bundled cable service. For example, if a cable service provider that provides digital video recorders or converters to purchasers hires a third party to repair a digital video recorder or converter, then the provider may issue a resale certificate to the repair service provider in lieu of paying tax on the repair service. See §3.285 of this title (relating to Resale Certificate; Sales for Resale).(2) Tangible personal property. A resale certificate may be used to purchase tangible personal property tax free if care, custody, and control of the property are transferred to the purchaser of the cable television or bundled cable service as an integral part of the service. For example, a cable service provider may issue a resale certificate to the seller of remote controls that are provided to purchasers of the cable television service as part of the sale of the service. See §3.285 of this title.(e) Taxable purchases.(1) Taxable services. A cable service provider owes tax on its purchases of taxable services that are not transferred to purchasers as an integral part of a cable television or bundled cable service, but are instead used by the cable service provider in providing that service.(2) Tangible personal property. A cable service provider owes tax on its purchases of equipment, supplies, and other items that are not transferred to the care, custody, and control of purchasers as an integral part of the cable television or bundled cable service, but are instead used by the cable service provider to provide that service. For example, a cable service provider owes tax on the satellite receiving and transmitting equipment, cables, and wiring that it uses to provide cable television service and that are not located on the purchaser's premises. Taxable items that a cable service provider purchases out of state and brings into Texas for use in providing a cable television or bundled cable service are subject to Texas use tax. See §3.346 of this title (relating to Use Tax). Credit will be allowed against the use tax for any sales or use tax legally imposed and paid to another state. See §3.338 of this title (relating to Multistate Tax Credits and Allowance of Credit for Tax Paid to Suppliers).(3) A cable television service provider may seek an annual refund of Texas sales and use taxes paid on certain tangible personal property directly used or consumed in providing cable television services. See §3.345 of this title (relating to Annual Refund Program for Providers of Cable Television, Internet Access, and Telecommunications Services).(f) Real property rental. An owner of real property, such as an apartment complex or hotel, that provides cable television or bundled cable service to its residents or guests must collect sales tax on any charge it imposes on residents or guests that is attributable to the cable television or bundled cable service. If the owner does not charge the residents or guests for the cable television or bundled cable service, the owner is the consumer of the service and must pay tax on that service and all services or expenses connected to the provision of that service, in accordance with subsection (b) of this section.(g) Local tax.(1) Cable service providers are required to collect all local tax due on the sale of cable television or bundled cable service, and on all services or expenses connected with the provision of that service, in accordance with subsection (b) of this section, based upon the point of delivery to the purchaser. For more information regarding the calculation of local tax, see Tax Code, Title 3, Subtitle C.(2) Direct-to-home satellite. The sale of cable television or bundled cable service by means of direct-to-home satellite is exempt from local tax under the Telecommunications Act of 1996, §602. For purposes of this section, direct-to-home satellite refers to cable television or bundled cable service that is transmitted directly to a purchaser's premises, including a residence, hotel, or motel, without use of ground receiving or distribution equipment, except at the purchaser's premises or in the uplink process to the satellite. Tangible personal property transferred to the care, custody, and control of the purchaser as an integral part of the cable television or bundled cable service is considered to be part of the service and is also exempt from local tax. Equipment used by a cable service provider to provide direct-to-home satellite cable television or bundled cable service is subject to local sales and use taxes, unless otherwise exempt.(3) Point of delivery.(A) Service delivered through a fixed physical connection.(i) If a cable service provider delivers, or under its contract with the purchaser is able to deliver, cable television or bundled cable service, or any portion or element thereof, to the purchaser by means of a fixed physical connection, then the address of that fixed physical connection is the point of delivery, even if the purchaser can access the service both through a fixed physical connection and by means of nomadic access.(ii) Two or more fixed physical connections. If fixed physical connections at two or more locations are associated with a single account, then the service provider must collect local taxes for each separately stated charge for cable television or bundled cable service based upon the location of the fixed physical connection to which the charge is allocable. For example, if a purchaser's account is associated with coaxial cable connections in City A and in City B, and the purchaser incurs a separately stated charge for a pay-per-view movie that is provided through the coaxial cable connection in City B, then the service provider should collect local taxes on the pay-per-view charge using the City B location as the point of delivery. If the service provider cannot determine the location of the fixed physical connection to which a charge is allocable, then the point of delivery is the location of the fixed physical connection designated by the purchaser prior to or at the time of purchase. Information about a purchaser's designated point of delivery must be maintained in the seller's books and records. For example, if a purchaser's account is associated with fixed physical connections at two or more locations, and the purchaser incurs a separately stated charge for video programming that is provided by means of nomadic access, then the point of delivery is the location of the fixed physical connection designated by the purchaser prior to or at the time of purchase.(B) Service delivered by mobile telecommunications service provider. If the purchaser's account does not have a fixed physical connection, and if the cable service provider is also a mobile telecommunications service provider, then the point of delivery to the purchaser is the purchaser's place of primary use of the mobile telecommunications service, as that term is defined in §3.344 of this title.(C) Service delivered without a fixed physical connection. If the purchaser does not have a fixed physical connection, and the cable service provider is not a mobile telecommunications service provider, then the point of delivery shall be:(i) the purchaser's mailing address in this state. For example, if there is no fixed physical connection, but the cable service provider sends invoices to the purchaser at a mailing address in this state, or has on file in its books and records for the purchaser a mailing address in this state, then the purchaser's Texas mailing address is the point of delivery. A cable service provider acting in good faith may rely upon a statement from a purchaser regarding the purchaser's mailing address as provided in paragraph (4) of this subsection, in which case the provider will not be held liable for any additional tax, penalty, or interest if the comptroller subsequently determines that the statement is invalid; or(ii) the address in this state that is associated with the payment instrument used by the purchaser to pay for the service, but only if the cable service provider cannot determine, or the purchaser has not provided, a mailing address in this state under clause (i) of this subparagraph.(4) Purchaser's rights and remedies.(A) Mailing address. If the point of delivery to the purchaser is not a fixed physical connection under paragraph (3)(A) of this subsection or the place of primary use under paragraph (3)(B) of this subsection, then the purchaser may contact the cable service provider to provide an accurate mailing address or to update the mailing address already in the provider's books and records. The cable service provider must then collect local tax on the sale of cable television and bundled cable service to the purchaser based upon the point of delivery determined in accordance with paragraph (3)(C)(i) of this subsection using the information provided by the purchaser.(B) Refund. If a cable service provider collects local sales tax from a purchaser in error, then the purchaser may request a refund of that local sales tax from the comptroller in accordance with the procedures set forth in §3.325 of this title (relating to Refunds and Payments Under Protest).(5) Nomadic access. If a purchaser has an account with nomadic access, the point of delivery is determined in accordance with paragraph (3) of this subsection.(6) Tangible personal property. Tangible personal property that is transferred to the care, custody, and control of the purchaser as an integral part of a cable television or bundled cable service is regarded as a component of that service and is subject to local tax based upon the point of delivery to the purchaser in accordance with paragraph (3) of this subsection. A cable service provider is responsible for collecting local tax in accordance with Tax Code, Title 3, Subtitle C on any other sale, lease, or rental of tangible personal property. When a cable service provider charges a single price for the provision of both cable television or bundled cable service and tangible personal property that is not an integral part of that service, such as the rental of compact discs containing video programming, then the cable service provider must identify in its contracts, invoices, or books and records that portion of each charge that is attributable to the provision of tangible personal property and must collect local sales tax upon that amount in accordance with the provisions of the Tax Code governing the application of local tax to the sale of tangible personal property.(7) Other taxable services.(A) A cable service provider providing a service other than cable television or bundled cable service through a cable system is responsible for collecting local tax on the separately stated charges for that service in accordance with Tax Code, Title 3, Subtitle C, or, if applicable, the specific provisions of the section of the title that address the services provided. For example, a cable service provider who provides an information service for a separate charge must collect the local tax due on that charge in accordance with the provisions of Tax Code, §321.203 and §323.203.(B) A service provider, other than a cable service provider, who provides services through a cable system is responsible for collecting local tax on those services in accordance with Tax Code, Title 3, Subtitle C, or, if applicable, the specific provisions of the section of the title that address the services provided.",
            "sourceNote": "Source Note: The provisions of this §3.313 adopted to be effective December 12, 1984, 9 TexReg 6089; amended to be effective June 25, 1991, 16 TexReg 3195; amended to be effective August 12, 2007, 32 TexReg 4765; amended to be effective February 16, 2014, 39 TexReg 770."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=92834&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "92834",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.314",
                "label": "Wrapping, Packing, Packaging Supplies, Containers, Labels, Tags, Export Packers, and Stevedoring Materials and Supplies"
            },
            "nextRule": {
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                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Containers--Glass, plastic, or metal bottles, cans, barrels, and cylinders. The term does not include any item of a type that is enumerated in paragraph (4) of this subsection.(2) Manufacturers--Those persons covered by the provisions of §3.300 of this title (relating to Manufacturing; Custom Manufacturing; Fabricating; Processing).(3) Nonreturnable container--A container other than a returnable container.(4) Packaging supplies--All internal and external wrapping, packing, and packaging supplies including wrapping paper, wrapping twine, bags, boxes, cartons, crates, crating material, pallets, tape, rope, rubber bands, metal bands, labels, staples, glue, mailing tubes, excelsior, straw, cardboard fillers, separators, shredded paper, ice, dry ice, cotton batting, shirt boards, and hay lath.(5) Returnable container--A container of a kind customarily returned for reuse by the buyer of the contents.(b) Manufacturers.(1) Sales or use tax is not due on containers or packaging supplies purchased by manufacturers for use as a part of the completion of the manufacturing process. For the purposes of this section, the manufacturing process is complete when the tangible personal property being produced has been packaged by the manufacturer as it will be sold. For example, toothpaste may be sold at retail in a tube enclosed in a box. Multiple units of the boxed toothpaste are placed in cardboard boxes by the manufacturer. A label is placed on the cardboard boxes identifying the product. The manufacturer then places these labelled boxes on a pallet and covers them with shrink-wrap for shipment, either to the manufacturer's distribution center, the manufacturer's warehouse, or to the manufacturer's customer. The toothpaste manufacturer may purchase the tubes, boxes, labels, pallets, and shrink-wrap tax free. Any additional packaging necessary to transfer the product from the manufacturer's distribution center, or from the manufacturer's warehouse to the manufacturer's customer would also be exempt from tax.(2) Sales tax is not due on internal or external wrapping, packing and packaging supplies sold to a person for the person's own use, stored for use, or used in wrapping, packing, or packaging newspapers as defined in §3.299(a) of this title (relating to Newspapers, Magazines, Publishers, Exempt Writings), including those distributed free of charge to the general public.(3) Sales tax is not due on nonreturnable containers, if the purchaser fills the container and sells the container with its contents. See subsection (g)(3) of this section regarding returnable containers.(4) Sales or use tax is not due on ice used by manufacturers and processors inside or outside a package in order to shape, form, preserve, stabilize, or protect the contents of the manufactured product.(c) Sale of packaging supplies to persons other than manufacturers. Sales or use tax is due on the sale of packaging supplies, including gift wrapping supplies, to persons who repack tangible personal property prior to sale, produce shippers who are not original producers, wholesalers, retailers, and service providers other than laundry and dry cleaners for use in delivering, expediting, or furthering in any way:(1) the performance of a taxable or nontaxable service;(2) the rental of tangible personal property; or(3) the sale of tangible personal property.(d) Gift wrapping supplies. Sales tax is due on the purchase price of gift wrapping supplies used by persons providing gift wrapping services.(1) Tax must be paid on the purchase price of gift wrapping by the person who provides the service whether or not the item being gift wrapped was sold by the person providing the service.(2) Tax must be collected on a charge for gift wrapping if the person who provides the gift wrapping service sold the item that is being wrapped and does not provide the service on a stand-alone basis.(e) Combination businesses. A business that primarily manufactures tangible personal property for sale may also purchase tangible personal property for resale that was manufactured by another entity. If the business is primarily a manufacturer, all packaging supplies may be purchased tax free even though a portion of the packaging supplies are used in repackaging a product. For example:(1) fast-food restaurants are considered to be primarily processors of tangible personal property for sale. The restaurant may also sell tangible personal property without further processing, such as soft drinks, doughnuts, or candy. The fast-food restaurant may purchase all packaging supplies tax free even though a portion of the packaging supplies are used in packaging or serving a nonprocessed product;(2) a grocery store purchases tangible personal property for resale, but also processes food and food products. A grocery store's meat department or snack bar may be processing as well as re-packaging food and food products. If the packaging supplies used by the departments that process are clearly distinguishable from those packaging supplies used in the nonprocessing department, the processing department's packaging supplies may be purchased tax free.(f) Purchases for resale. A person who purchases packaging supplies for resale \"as is,\" not as part of a packaged product, may purchase the packaging supplies tax free by issuing a resale certificate in lieu of paying tax.(g) Containers. Sales or use tax is not due on:(1) containers when sold with the contents, if sales or use tax is not due on the sales price of the contents;(2) nonreturnable containers when sold without the contents to persons who place the contents in the container and sell the contents together with the container. Throwaway glass bottles are examples of nonreturnable containers;(3) returnable containers when sold with the contents in connection with the retail sale of the contents or when resold for refilling. An example is a person who sells oxygen with an oxygen cylinder. The oxygen seller must pay sales or use tax on the oxygen cylinder at the time of purchase. If the oxygen purchaser returns the cylinder to be refilled, then no tax is due on the cylinder in that transaction.(h) Labels and tags. Sales or use tax is due on labels and tags unless they are used as discussed in subsection (b) or are purchased by the type of persons who are described in subsection (k) of this section.(i) Export packers.(1) An export packer is a person who packages property to be exported outside the territorial limits of the United States.(2) Crating and packaging supplies as listed in subsection (a)(4) of this section, when purchased by an export packer to export personal property, are exempt under Tax Code, §151.307, whether used to package the export packer's property, that of vendors shipping such property to their foreign customers, or that of purchasers who contract and pay for such services.(3) An export packer may give exemption certificates to suppliers on material purchases but must maintain records showing which materials were used for the exempt purpose of exporting tangible personal property.(4) The export packer need not obtain a sales or use tax permit if all crating and packing supplies are purchased for exporting tangible personal property.(j) Stevedoring services. Materials and supplies are exempt when purchased by a person providing stevedoring services for a ship or vessel operating exclusively in foreign or interstate coastal commerce if the materials and supplies are loaded aboard the ship or vessel and are not removed before the departure of the ship or vessel.(k) Laundry and dry cleaners. Sales tax is not due on hangers, safety pins, pins, inventory tags, staples, boxes, paper wrappers, and plastic bags that are purchased by a person who performs laundry or dry cleaning services, if the items are used to wrap, pack, or package an item that the person has pressed and dry cleaned or laundered in the regular course of business. See §3.310 of this title (Relating to Laundry, Cleaning, and Garment Services).",
            "sourceNote": "Source Note: The provisions of this §3.314 adopted to be effective July 23, 1992, 17 TexReg 4958; amended to be effective May 3, 1996, 21 TexReg 3550; amended to be effective December 6, 1996, 21 TexReg 11504; amended to be effective March 3, 2002, 27 TexReg 1334."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=145716&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "145716",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.315",
                "label": "Motor Vehicle Parking and Storage"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=174122&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "174122",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) College, university, and public school students, faculty, and staff--Any person who is:(A) registered as a current student and who is enrolled in a course of instruction at the school;(B) paid or employed by the school to provide classroom instruction or academic research;(C) otherwise employed as a full-time or part-time employee of the school; or(D) a volunteer sanctioned by the school to participate in school activities, events or other functions.(2) Parking facility--A parking facility is a real property structure, such as a lot or garage, whether improved or unimproved, where parking is permitted for a fee. The term includes areas, which are specifically designed and used for parking, but may at times be rented or leased for purposes other than parking.(3) Parking permits and decals--Motor vehicle parking permits and decals represent registrations of motor vehicles or individual persons for parking privileges.(4) College--For the purpose of this section, an institution of higher education that is exempt from sales tax either as a governmental entity under Tax Code, §151.309, or as a nonprofit educational organization under Tax Code, §151.310(a)(1). See §3.322 of this title (relating to Exempt Organizations).(5) University--For the purpose of this section, an institution of higher education that is exempt from sales tax either as a governmental entity under Tax Code, §151.309, or as a nonprofit educational organization under Tax Code, §151.310(a)(1). See §3.322 of this title.(6) Voluntary gratuity--A gift of money or other item of value given freely by the purchaser to a parking attendant over and above the sales price of the parking service.(b) Sales tax is due on the charge for parking and storage of a motor vehicle. Examples include charges for parking meters, either private or municipally owned, permits for parking or storage in lots or garages, impound fees, charges for valet parking services, and parking facility lease or rental. If the charge for parking and storage either includes a charge for transportation such as shuttle services, or is in addition to a separately stated charge for transportation, sales tax is due on the entire charge, including any separately stated charges for transportation, other than motor vehicle towing provided by licensed tow truck operators. Motor vehicle towing charges are not subject to sales tax. Persons who repossess motor vehicles for creditors are providing taxable debt collection services rather than towing services, and should refer to §3.354 of this title (relating to Debt Collection Services) for more information.(c) A boot fee by a private parking lot or garage is subject to sales tax. The private parking lot or garage does not owe sales tax to the booting company. A boot fee by a city or other local government entity is not subject to sales tax.(d) If a contract for the lease or rental of real property includes a charge for motor vehicle parking and storage, sales tax is due on the motor vehicle parking or storage charge. If one agreement includes motor vehicle parking, and another agreement for similar property does not, any monetary difference may be considered as evidence of the value of the parking.(e) The person who provides the parking or storage service must pay sales or use tax on all taxable items that are purchased for use in providing the service. The service provider may make tax-free purchases of taxable services that are provided to the customer as an integral part of the motor vehicle parking and storage service. The service provider may also make tax-free purchases of tangible personal property that is transferred to the care, custody, and control of the customer. Examples include decals or ticket stubs that are transferred to the customer. See §3.285 of this title (relating to Resale Certificate; Sales for Resale).(f) Colleges, universities, and public schools are not required to collect sales tax on charges for parking permits and decals issued to their students, faculty, or staff for campus parking.(1) Charges to the general public for parking are taxable.(2) Charges to students, faculty, or staff for parking not covered by a permit or decal, such as parking at special events such as concerts or sporting events, are taxable.(3) Colleges, universities, and public schools are not required to collect sales tax on any parking that is included, without separate charge, as part of a sale of an amusement service, if the amusement service is exempt under Tax Code, §151.3101(a)(1) or (5).(g) Sales tax is not due on the charges for the use of parking meters or visitor parking facilities funded or operated by the Texas State Preservation Board or by the Texas State History Museum for visitors of the Capitol complex in Austin, Texas.(h) A rental or lease of a parking facility is presumed to be taxable.(1) If a parking facility is rented or leased for a purpose other than parking, then the charge is not taxable. For example, a rental might include the lease of a parking facility for a flea market. The lessor must collect tax unless the lessor receives and retains documentation, such as an exemption certificate or contract, clearly describing the nontaxable activity.(2) The lump-sum rental or lease of a parking facility for an event, wherein there will be a combination of parking and a nontaxable use of the facility, is taxable as the provision of motor vehicle parking. A separately stated charge for the use of the area in the facility that is not devoted to motor vehicle parking is not taxable. The separately stated charges for the motor vehicle parking and the nontaxable use must, however, represent a reasonable allocation based on the area used for motor vehicle parking and the nontaxable use.(i) Valet parking services. Valet parking services are taxable regardless of whether compensation for the service is received directly from the owner of the parked vehicle or from a third party such as a restaurant or nightclub; or, the parking service is provided at the service provider's location or on the purchaser's own property.(1) A provider of valet parking services must collect tax on the total amount charged to a person under a contract to provide valet parking services to the person's guests, patrons, employees or others.(2) A person who provides parking services to others during the normal course of business for a separately stated charge may issue a resale certificate in lieu of tax to a valet parking service provider. That person must collect tax on the total amount charged to patrons for the service. A resale certificate cannot be issued when valet parking is provided to patrons free of charge or as an incidental part of another service.(3) Tax is due on a mandatory charge to an individual for valet parking service. A voluntary gratuity given by a vehicle owner to a parking attendant is not taxable. See §3.337 of this title (relating to Gratuities).(j) Local tax. Local sales and use tax is due based on the location where the parking service occurs.",
            "sourceNote": "Source Note: The provisions of this §3.315 adopted to be effective December 24, 1984, 9 TexReg 6187; amended to be effective August 30, 1995, 20 TexReg 6333; amended to be effective January 3, 2002, 26 TexReg 11034; amended to be effective May 27, 2010, 35 TexReg 4179."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=174122&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "174122",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.316",
                "label": "Occasional Sales; Transfers Without Change in Ownership; Sales by Senior Citizens' Organizations; Sales by University and College Student Organizations; and Sales by Nonprofit Animal Shelters"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19776&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
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            "ruleBody": "(a) Sales exempt. A taxable item that is sold or purchased by way of an occasional sale is exempt from sales and use taxes, except as provided by subsection (i) of this section.(b) Occasional sales by persons not in the business of selling, leasing, or renting.(1) One or two sales of taxable items, other than an amusement service, during any 12-month period by a person who does not hold himself out as engaged (or who does not habitually engage) in the business of selling taxable items are occasional sales.(2) The third sale of a taxable item in a 12-month period by a person not previously in the business of selling, leasing, or renting taxable items causes that person to become a retailer. Tax must be collected and reported on the third sale and all subsequent sales unless the sale qualifies for exemption under paragraph (4) of this subsection or subsection (d) or (e) of this section. If three or more sales are made in a 12-month period, then the person must obtain a permit. See §3.286 of this title (relating to Seller's and Purchaser's Responsibilities, including Nexus, Permits, Returns and Reporting Periods, and Collection and Exemption Rules). Example: A lump-sum contractor sells a backhoe in October, a typewriter in December and a crane in February. The contractor has not sold, leased or rented any construction equipment prior to the sale of the backhoe; therefore, the contractor can sell the backhoe and typewriter tax free as occasional sales. The sale of the crane is the third sale within 12 months from the sale of the back-hoe. The sale of the crane is not an occasional sale. The contractor must obtain a permit, collect tax on the sale of the crane and, until an intervening 12 months have passed between sales, all subsequent sales of taxable items.(3) The sale of not more than ten admissions for amusement services during a 12-month period by a person who does not hold himself out as engaged (or who does not habitually engage) in the provision of amusement services are occasional sales.(4) The sale of tangible personal property by an individual is an occasional sale if:(A) the property was originally purchased by the individual or a member of the individual's family for either of their personal use;(B) the individual does not hold a sales tax permit and is not required to hold a sales tax permit;(C) the sale is not made through the use of an auctioneer, broker, or factor, other than an online auction; and(D) the total receipts from such sales do not exceed $3,000 in a calendar year. If the total receipts from the individual's sales of such tangible personal property exceed $3,000 in a calendar year, the individual must obtain a sales tax permit and collect tax on all sales of taxable items in this state, beginning with the first sale which causes the total receipts to exceed $3,000.(5) The exemption provided under subsection (b) of this section does not apply to a rental or lease of a taxable item.(c) Persons who hold permits.(1) Persons who hold themselves out as engaged in the business of selling, leasing, or renting taxable items and persons who sell, lease, or rent three or more taxable items in a 12-month period are retailers for the purposes of this section. Also, persons who sell more than 10 admissions for amusement services during a 12-month period are retailers for the purposes of this section.(2) Sales that retailers and other persons who hold sales or use tax permits make are not occasional sales, even if the sales are not made in the regular course of business (e.g., a restaurant owner sells a dining table). All sales by a retailer or permit holder are subject to tax, unless the sales qualify for exemption under subsection (d) or (e) of this section.(3) Sales that persons who hold direct payment permits make are not occasional sales. All sales by direct payment permit holders are subject to tax unless the sales qualify for exemption under subsection (d) or (e) of this section.(d) Sale of a business or an identifiable segment of a business.(1) The sale of the entire operating assets of a business or of a separate division, branch, or identifiable segment of a business is an occasional sale. The lease or rental of an identifiable segment does not qualify as an occasional sale.(2) The sale of the entire operating assets of a separate division, branch, or identifiable segment of a business is an occasional sale if, prior to the sale, the income and expenses attributable to the separate division, branch or identifiable segment could be separately established from the books of account or record.(3) For the purposes of this section, a \"separate division, branch, or identifiable segment\" means an enterprise engaged in providing a product or service to customers, usually for a profit. \"Income\" means revenue generated by the enterprise in providing that product or service. \"Expenses\" mean those operating expenses incurred by the enterprise in providing the product or services that are directly traceable to that enterprise. \"Operating assets\" means tangible personal property used exclusively by the enterprise in providing the product or service but does not mean tangible personal property maintained and used both for general business purposes and by the specific enterprise. Inventory and intangible property are not operating assets for purposes of the exemption.(4) The entire operating assets of the business or of the division, branch, or identifiable segment of the business must be sold in a single transaction to a single purchaser. The sale of the entire operating assets through several transactions to several purchasers does not qualify as an occasional sale under this section.(e) Transfer without change in ownership.(1) Any transfer of all or substantially all the property held or used by a person in the course of an activity, when after such transfer the real or ultimate ownership of such property is substantially similar to that which existed before such transfer, is an occasional sale. Since ownership must be transferred, \"transfer\" does not include the lease or rental of property.(2) For the purposes of this section, stockholders, bondholders, partners, or other persons who hold an interest in a corporation or other entity are regarded as having the \"real or ultimate ownership\" of the property of such corporation or other entity. Ownership is \"substantially similar\" if the person who transfers the property owns 80% or more of the stock in the corporation to which the transfer is being made. Ownership is \"substantially similar\" if 80% or more of the stock in the corporation that makes the transfer is owned by the transferee.(3) \"All or substantially all\" of the property is considered transferred if 80% or more is transferred.(f) Occasional sales as defined in subsections (d) and (e) of this section are not restricted by subsections (a) and (b) of this section. Three or more sales of the type defined in subsections (d) and (e) of this section would not result in the loss of the occasional sale exemption.(g) Resale certificates - occasional sales - leases.(1) When a lessor purchases a taxable item tax free for rental or lease and later sells, leases, or rents the item by way of an occasional sale as provided in subsection (d) or (e) of this section, then the lessor owes tax on the amount by which the lessor's purchase price exceeds the amount of rent, if any, upon which tax has been collected and reported from the prior rental or lease of the item.(2) If the item was exempt from sales tax when originally purchased by the lessor or if tax was paid on the full purchase price at the time of purchase by the lessor, then the lessor does not incur sales tax liability on the original purchase price when sold by way of an occasional sale as provided in subsection (d) or (e) of this section.(h) Purchases exempt from tax. The purchase price of an item that is sold by means of an occasional sale is not subject to tax, except as provided in subsection (i) of this section.(i) Exception to subsection (h) of this section. A person who holds a permit that is issued pursuant to Tax Code, Chapter 151, and who makes a purchase in a transaction on which the seller is not required to collect tax under subsection (b) of this section, must accrue and remit tax to the comptroller on the transaction.(j) Senior citizens' organizations. Sales that a senior citizens' organization makes are exempt from tax if all of the following qualifications are met:(1) all of the taxable items sold are manufactured, produced, made, or assembled exclusively by persons 65 years old or older;(2) the sale is part of a fund-raising drive held or sponsored by a nonprofit organization created for the sole purpose of providing assistance to elderly persons;(3) all net proceeds from the sale go to either the organization or the person who produced the taxable item sold or both; and(4) the organization has not conducted more than four separate fund-raising drives each calendar year for a total of not more than 20 days per year.(k) University and college student organizations.(1) A sale of a taxable item by a qualified student organization is exempt from sales tax if:(A) the student organization sells the items at a sale that lasts for one day only, and the primary purpose of the sale is to raise funds for the organization;(B) the student organization holds not more than one fund-raising sale each calendar month for which the exemption is claimed;(C) the student organization has as its primary purpose a purpose other than being engaged in business or performance of an activity that is designed to make a profit; and(D) the sales price of the taxable item is $5,000 or less, except that a taxable item that the organization manufactures or has received by donation may be sold tax free during the one-day sale, regardless of sales price, if the item is not sold to the donor.(2) A taxable item acquired tax free under paragraph (1) of this subsection is exempt from use tax on its storage, use, or consumption until the item is resold or subsequently transferred.(3) The first $5,000 of a qualified student organization's total receipts from sales of taxable items in a calendar year that are not exempted under paragraph (1) of this subsection are exempt from sales tax.(4) A qualified student organization must be affiliated with an institution of higher education as defined by Education Code, §61.003, or a private or independent college or university that is located in this state and that is accredited by a recognized accrediting agency under Education Code, §61.003. A student organization must file with the comptroller a certification issued by the institution, college, or university showing that the organization is affiliated with the institution, college, or university. A college, university, or institution may designate one of its departments or officers to compile a list of registered or certified student organizations and submit the list to the comptroller in lieu of having each student organization submit individual certifications. The certification is valid until the institution, university, or college notifies the comptroller that a student organization is decertified, suspended, or otherwise loses its campus privileges or affiliation with the institution, university, or college.(l) Sales by religious, educational, charitable organizations, and organizations classified as 501(c)(3), (4), (8), (10), or (19).(1) A religious, educational, charitable, eleemosynary organization, or an organization exempt under Internal Revenue Code, §501(c)(3), (4), (8), (10), or (19) that has been granted exempt status by the comptroller, and each bona fide chapter of an exempt organization, is not required to collect sales tax on the sales price of taxable items sold for $5000 or less at a sale or auction held by the organization or chapter only twice a calendar year and each sale or auction lasting only one day. See §3.322 of this title (relating to Exempt Organizations). Additionally, a taxable item may be sold tax free during a one-day tax-free sale or auction, regardless of price, if the item is one that the organization manufactured or has received by donation and the item is not sold to the donor.(2) One day is a consecutive 24-hour period. If a designated tax-free sale or auction exceeds a consecutive 24-hour period, the organization or chapter may not hold another tax-free sale or auction that calendar year. An organization or chapter may hold the two tax-free sales or auctions consecutively, but the two tax-free sales or auctions by that organization or chapter cannot exceed a maximum of 48 consecutive hours in a calendar year.(3) The organization may employ an auctioneer to conduct the sale or auction and pay the auctioneer a reasonable fee not to exceed 20% of the gross receipts.(4) If two or more exempt organizations or chapters jointly hold a tax-free sale or auction, each is considered to have held a tax-free sale or auction during that calendar year. Each exempt organization that participates in a joint one-day tax-free sale or auction may hold one other tax-free sale or auction during the remainder of that calendar year.(m) Sales by nonprofit animal shelters. The sale, including the acceptance of a fee for adoption, of an animal by a nonprofit animal shelter is exempt from sales and use taxes. The term \"animal shelter\" is defined in Health and Safety Code, §823.001, as a facility that keeps or legally impounds stray, homeless, abandoned, or unwanted animals.",
            "sourceNote": "Source Note: The provisions of this §3.316 adopted to be effective January 1, 1976; amended to be effective April 12, 1977, 2 TexReg 1446; amended to be effective January 31, 1978, 3 TexReg 195; amended to be effective August 10,  1981, 6 TexReg 2693; amended to be effective December 24, 1984, 9 TexReg 6187; amended to be effective May 3, 1994, 19 TexReg 2959; amended to be effective May 17, 1996, 21 TexReg 3946; amended to be effective November 30, 2000, 25 TexReg 11665; amended to be effectiveMarch 20, 2002, 27 TexReg 2051; amended to be effective October 22, 2015, 40 TexReg 7242."
        },
        {
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            "currentRecordId": "19776",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.317",
                "label": "Massage Parlors, Escort Services, and Turkish Baths"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=117233&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "117233",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Escort service--A business that provides for a fee an employee as an escort,  date, or bodyguard. An escort service does not include motor escorting or armored car service.(2) Massage parlor--A business that provides massage services for a fee. A massage parlor does not include the following, even though massages may be part of their services: health clubs, health spas, hospitals, nursing homes, sanitariums, athletic departments, licensed physical therapists, registered massage therapists, beauty spas, reducing salons, scalp treatments, or slenderizing salons. A massage parlor does include Turkish baths and any business not previously listed that provides massages as at least one of its services.(3) A Turkish bath--A business in which a customer first uses a steam room and then obtains a massage or rubdown.(b) Sales tax is due on all services provided by massage parlors, Turkish baths, or escort services.(c) Sales tax is due on utilities, equipment, towels, and machinery used to perform personal services.(d) Records must be kept on all services provided by massage parlors, Turkish baths, and escort services. For more detailed information about records required, see §3.281 of this title (relating to Records Required; Information Required).",
            "sourceNote": "Source Note: The provisions of this §3.317 adopted to be effective December 3, 1984, 9 TexReg 5930; amended to be effective February 1, 1991, 16 TexReg 320."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=117233&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "117233",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.318",
                "label": "Water-Related Exemptions (Tax Code, §§151.314, 151.315, and 151.355)"
            },
            "nextRule": {
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                "recordId": "3821",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Brush control--The selective control, removal, or reduction from watershed rangelands of noxious mesquite, prickly pear, salt cedar, or other deep-rooted woody plants to enhance the availability of water. A brush control service that frees up water is not a taxable real property service as defined in §3.356 of this title (relating to Real Property Service).(2) Desalination--The removal of salts from non-potable or brackish surface water or groundwater so that the water is useable freshwater or high-quality drinking water.(3) Political subdivision--A city, county, district, authority, or any other political subdivision of the State of Texas, any interstate compact commission to which the State of Texas is a party, and any nonprofit water supply corporation that is created and operated under Water Code, Chapter 67.(4) Precipitation enhancement--Cloud seeding to artificially induce rain clouds to produce rain.(5) Rainwater harvesting--The capture and storage of rainwater for subsequent use.(6) Reduction or elimination of water use--The use of devices, services, or supplies for the sole purpose of saving water.(7) Regional water supply or waste water system--A system that the Texas Commission on Environmental Quality certifies as a regional system.(8) Water recycling and reuse--The recapture of water for reuse.(b) The following are exempt from sales and use tax. Equipment, services, or supplies when used solely for:(1) brush control. Examples of equipment and supplies that are used in brush control include bulldozers, root plows, crawler tractors, hydro axes, chains, roller choppers, aerial sprayers, sling blades, grass seed, and herbicides;(2) desalination;(3) precipitation enhancement. Examples of equipment that is used in precipitation enhancement include aircraft, global positioning systems, weather radar equipment, and seeding chemicals;(4) reduction or elimination of water use. For example, a toilet dam is used to reduce the amount of water used;(5) construction or operation of a:(A) regional water supply or waste water system; or(B) water supply or waste water system by a private entity as a public-private partnership as certified by a political subdivision that is a party to the project;(6) rainwater harvesting; or(7) water recycling and reuse.(c) Effective date. The effective date of the exemption that is described in subsection (b) of this section is September 1, 2001. A purchaser who claims the exemption must give the seller a properly completed exemption certificate. The purchase, lease, or rental of such items prior to September 1, 2001 is taxable, unless otherwise exempt.(d) Divergent use. A person who claims a valid exemption on the purchase, lease, or rental of an item described in subsection (b) of this section, and who then uses the item in a taxable manner, is required to report and pay sales tax to the comptroller based on the fair market rental value of the tangible personal property or fair market value of the taxable service for the period of time that the item is used in a taxable manner. At any time, a purchaser may elect to pay sales tax on the purchase price of the item, but no credit is allowed for taxes that were previously paid based on fair market value. See §3.287 of this title (relating to Exemption Certificates).(e) Taxable services performed on exempt items. A person who performs a repair, restoration, remodeling or maintenance service to tangible personal property described in subsection (b) of this section is not required to collect sales tax on that service if the customer provides a properly completed exemption certificate. This exemption applies to services that are performed on or after September 1, 2001.(f) Water. The sales tax law specifically exempts the sale of water, including spring water, sparkling water, or mineral water, from sales or use tax. The exemption includes the sale of bottled water and water that a restaurant or any other food service provider sells. An exemption certificate is not required. Flavored water (carbonated or non-carbonated) is a soft drink and is taxable. See §3.293 of this title (relating to Food; Food Products; Meals; Food Service) for further information on soft drinks. The sale of brine water, other than naturally occurring brine water, is taxable.(g) Rural Water Assistance Fund. A nonprofit water supply corporation or a nonprofit sewer service corporation is exempt from paying sales tax on the purchase, lease, or rental of tangible personal property and on the purchase of taxable services for projects that the Rural Water Assistance Fund finances. The nonprofit corporation must keep records that clearly show which taxable items were purchased for projects that the Rural Water Assistance Fund financed.(h) Economically Distressed Areas Program (EDAP). A nonprofit water supply corporation or a nonprofit sewer service corporation is exempt from paying sales tax on the purchase, lease, or rental of tangible personal property and on the purchase of taxable services for projects that EDAP finances for an economically distressed area as defined in Water Code, §17.921(1). The nonprofit corporation must keep records that clearly show which taxable items were purchased for projects that the EDAP financed.",
            "sourceNote": "Source Note: The provisions of this §3.318 adopted to be effective October 9, 2002, 27 TexReg 9386; amended to be effective October 12, 2004, 29 TexReg 9551."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3821&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "3821",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.319",
                "label": "Prior Contracts"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197944&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197944",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Bid--A written offer by a seller directed to a specific person making a binding commitment to perform a contract for specified work and labor or for supplying specified taxable items at a specified price. A general statement by a seller listing current prices is not a written bid.(2) Contract--A written agreement between two persons binding one party to perform specified work and labor or to supply specified taxable items to another party at a specified price. A purchase order issued by a purchaser may qualify as a contract only if signed and dated by the seller.(3) Enabling legislation--A bill passed into law by the Texas Legislature that authorizes an exemption for prior contracts or bids.(4) Prior contract or bid--A bid offered or a contract signed before any change in the tax rate or tax base. A purchase order issued by the purchaser prior to a rate change is not a prior contract unless signed and/or fulfilled by the seller prior to the rate change.(5) Third-party contract--A contract between the purchaser of the items for which exemption is claimed and a party other than the seller of the items for which exemption is claimed.(b) Exemptions.(1) Tax rate increase. Taxable items purchased, leased, or rented for use in the performance of a third-party contract or bid signed on or before the date provided for prior contracts in the enabling legislation are exempted from the amount of the increase in the tax rate.(2) Tax base increase. Taxable items purchased, leased, or rented that are the subject of a contract or bid signed on or before the date provided for prior contracts in the enabling legislation are exempted from a change in the tax base.(c) Exceptions.(1) Cancellation clauses. A cancellation clause in a contract will not cause the loss of a prior contract exemption.(2) Change orders. Change orders that constitute additions to the contract or increases in coverage or taxable items, labor or services added to the contract are not included in the prior contract exemption. The original part of the contract may still retain its prior contract exemption if the change orders can be separately identified. (3) Renewals or extensions. Any renewal or exercise of an option to extend the terms (either by action of either party to the contract or automatically) will be considered a new contract.(4) Price changes. A contract will not lose the prior contract exemption solely due to a change in price if:(A) the parties intend that the contract shall remain binding regardless of the change in price; and(B) the contract does not expressly provide that changes in price terminate the contract.(5) Tax pass-through clauses. Any contract whose terms state the customer will be liable for any tax rate increases or for the applicable tax rate will not qualify for the prior contract exemption, even though the contract was in effect prior to the tax rate change. Such phrases are intended to transfer the burden of the tax increase from the seller to the customer and violate the statutory qualifications for exemption. Note: this paragraph applies only to tax rate increases and not to new services added to the tax base.(6) Fixed-price/as-needed terms. Contracts that contain a fixed price that must be paid whether or not the service is performed, and specify the work to be performed by type and quantity, and contracts that state that \"services or taxable items will be supplied as needed or upon request\" will qualify as prior contracts if they otherwise meet the requirements of this section.(7) Bids vs. contracts. A bid submitted prior to a change in the tax rate or base and a contract signed after the change pursuant to that bid will qualify for the prior contract exemption if the terms of the contract are substantially similar to the original bid.(8) Transfer of contracts. With the exception of contracts that may be substantially changed or modified, a contract that is transferred by either party will retain its prior contract exemption so long as the transferee is bound by the original terms of the contract. (d) Records. Persons claiming the prior contract exemption must maintain records which may be verified by audit. Failure to maintain adequate records subject to examination by the comptroller results in an automatic loss of the exemption. Written notice of prior contracts or bids should not be sent to the comptroller; however, the prior contracts or bids should be available for review upon request.(e) Prior contracts/limitations. This section applies only when there is enabling legislation. The effective date and statute of limitations date on prior contracts will also be governed by the enabling legislation.(f) Identification number. An identification number is required on prior contract exemption certificates furnished to sellers. The identification number should be the person's sales or use tax permit number, if the person issuing the certificate is required to hold a permit under the terms of the Tax Code. If a permit is not required, the person's federal employer's identification (FEI) number or social security number may be used. A suggested form for the exemption certificate is a part of this section.Attached Graphic",
            "sourceNote": "Source Note: The provisions of this §3.319 adopted to be\r\neffective August 5, 1987, 12 TexReg 2431; amended to be effective\r\nApril 1, 1988, 13 TexReg 1340; amended to be effective November 6,\r\n1990, 15 TexReg 6197; amended to be effective June 6, 1995, 20 TexReg\r\n3839."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197944&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197944",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.320",
                "label": "Texas Emissions Reduction Plan Surcharge; Off-Road, Heavy-Duty Diesel Equipment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=28628&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "28628",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Off-road, heavy-duty diesel equipment--Diesel-powered equipment of 50 horsepower or greater, other than motor vehicles and equipment used directly in oil and gas exploration and production at an oil or gas well site. See §3.96 of this title (relating to Imposition and Collection of a Surcharge on Certain Diesel Powered Motor Vehicles) for information about the imposition of the surcharge on motor vehicles. Off-road, heavy-duty diesel equipment includes accessories and attachments sold with the equipment. Off-road, heavy-duty diesel equipment includes, but is not limited to, the following diesel-powered equipment:(A) backhoes;(B) bore equipment and drilling rigs, except drilling rigs used to drill oil and gas wells;(C) bulldozers;(D) compactors (plate compactors, etc.);(E) cranes;(F) crushing and processing equipment (rock and gravel crushers, etc.);(G) dumpsters and tenders;(H) excavators;(I) forklifts (rough terrain forklifts, etc.);(J) graders;(K) light plants (generators) and signal boards;(L) loaders;(M) mining equipment;(N) mixers (cement mixers, mortar mixers, etc.);(O) off-highway vehicles and other moveable specialized equipment (equipment, such as a motorized crane, that does not meet the definition of a motor vehicle because it is designed to perform a specialized function rather than designed to transport property or persons other than the driver);(P) paving equipment (asphalt pavers, concrete pavers, etc.);(Q) rammers and tampers;(R) rollers;(S) saws (concrete saws, industrial saws, etc.);(T) scrapers;(U) surfacing equipment;(V) tractors; and(W) trenchers.(2) Surcharge--A fee imposed on the sale, lease, or rental in Texas of new or used off-road, heavy-duty diesel equipment and on the storage, use, or other consumption of such equipment subject to use tax as provided for in §3.346 of this title (relating to Use Tax). This surcharge is in addition to state and local sales and use taxes that are due on the equipment and is for the benefit of the Texas Emissions Reduction Fund, which is administered by the Texas Commission on Environmental Quality.(3) Sales price--The total amount a purchaser pays a seller for the purchase, lease, or rental of off-road, heavy-duty diesel equipment as set out in Tax Code, §151.007. The sales price includes charges for accessories, transportation, installation, services, and other expenses that are connected to the sale.(b) Imposition of Surcharge.(1) A surcharge is due on the sales price of off-road, heavy-duty diesel equipment sold in Texas. If the purchaser takes possession of or title to the equipment on or after September 1, 2015, the surcharge is 1.5% of the sales price. If the purchaser took possession of or title to the equipment on or after July 1, 2003, and before September 1, 2015, the surcharge is 2.0% of the sales price.(2) A surcharge is due on the sales price, excluding separately stated interest charges, of off-road, heavy-duty diesel equipment leased under a financing lease, as defined in §3.294 of this title (relating to Rental and Lease of Tangible Personal Property). If the lessee takes possession of the equipment on or after September 1, 2015, the surcharge is 1.5% of the sales price. If the lessee took possession of the equipment on or after July 1, 2003, and before September 1, 2015, the surcharge is 2.0% of the sales price.(3) A surcharge is due on the lease payments for off-road, heavy-duty diesel equipment that is leased under an operating lease, as defined in §3.294 of this title. If the lessee takes possession of the equipment on or after September 1, 2015, the surcharge is 1.5% of the lease payments. If the lessee took possession of the equipment on or after July 1, 2003, and before September 1, 2015, the surcharge is 2.0% of the lease payments.(4) A surcharge is due on the sales price of off-road, heavy-duty diesel equipment purchased, leased, or rented out of state and brought into Texas for use. If the purchaser brings the equipment into Texas for use on or after September 1, 2015, the surcharge is 1.5% of the sales price. If the purchaser brought the equipment into Texas for use on or after July 1, 2003, and before September 1, 2015, the surcharge is 2.0% of the sales price. See §3.346 of this title.(5) A 1.0% surcharge is due on off-road, heavy-duty diesel construction equipment sold, leased, or rented if the purchaser took possession of or title to the equipment on or after August 31, 2001 and before July 1, 2003. No surcharge is due on equipment sold, leased, or rented during this time period if the equipment is subject to use tax or is used in non-construction activities.(c) Collection of surcharge. A seller must collect the surcharge from the purchaser on the sales price of each sale, lease, or rental in Texas of off-road, heavy-duty diesel equipment that is not exempt from sales tax. The surcharge is collected at the same time and in the same manner as sales or use tax. See §3.286 of this title (relating to Seller's and Purchaser's Responsibilities) for information on the collection and remittance of sales or use tax. The surcharge is collected in addition to state and local sales or use taxes but is not collected on the amount of the sales or use tax.(d) Exemptions. No surcharge is collected on the sale, lease, or rental of off-road, heavy-duty diesel equipment that is exempt from sales and use tax. A seller who accepts a valid and properly completed resale or exemption certificate, direct payment exemption certificate, or other acceptable proof of exemption from sales and use tax is not required to collect the surcharge. For example, a seller may accept an exemption certificate in lieu of collecting sales tax and the surcharge from a farmer who purchases a bulldozer to be used exclusively in the construction or maintenance of roads and water facilities on a farm that produces agricultural products that are sold in the regular course of business.(e) Reports and payments.(1) A seller or purchaser with a surcharge account, including a direct payment holder, must report and pay the surcharge in the same manner as sales or use tax, but separate reports and payments for the surcharge are required.(A) A seller's or purchaser's reporting period (i.e., monthly, quarterly, or yearly) and due date for the surcharge are determined by the amount of surcharge that the seller collects or purchaser owes. See §3.286 of this title.(B) A purchaser who does not hold a surcharge account must report and pay the surcharge by the 20th day of the month following the month in which the purchaser acquired off-road, heavy-duty diesel powered equipment on which the seller did not collect the surcharge.(2) A seller or purchaser must report and pay the surcharge to the comptroller on forms prescribed by the comptroller for the surcharge. A seller or purchaser is not relieved of the responsibility for filing a surcharge report and paying the surcharge by the due date because the seller or purchaser fails to receive the correct form from the comptroller.(3) The penalties and interest imposed for failure to timely file and pay the surcharge are the same as those imposed for failure to timely file and pay sales or use tax. Likewise, the 0.5% discount for timely filing and payment is applicable to surcharge reports and payments. No prepayment discount will be paid a seller or purchaser for prepayment of the surcharges.(f) Expiration. The surcharge expires on the last day of the state fiscal biennium during which the Texas Commission on Environmental Quality publishes in the Texas Register  the notice required by Health and Safety Code, §382.037.",
            "sourceNote": "Source Note: The provisions of this §3.320 adopted to be effective March 19, 2002, 27 TexReg 2051; amended to be effective December 4, 2003, 28 TexReg 10775; amended to be effective January 26, 2009, 34 TexReg 433; amended to be effective May 17, 2016, 41 TexReg 3525; amended to be effective January 7, 2020, 45 TexReg 382."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=28628&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "28628",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.321",
                "label": "Advertising Agencies"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207487&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Acting as agent--(A) The advertising agency has:(i) disclosed to its supplier that it is acting as agent for the client designated on the advertising agency's purchase order or in some other written documentation; and(ii) maintains accounting records and invoices which evidence that the billing to its clients, except for service charges, is identical to that paid to suppliers.(B) In the absence of such documentation, the advertising agency shall be conclusively presumed to be a seller of tangible personal property and not the agent of its client(s).(2) Employee-fabrication--The actual assembly or production of finished art or other taxable items by employees of the advertising agency. It includes the incorporation by the employees of items which become a component of the finished art or other taxable items.(3) Employee-fabricated property--Any finished art or other taxable items produced by means of employee fabrication.(4) Finished art--The final art, assembly, or formulation representing the ultimate product to be used for reproduction by photomechanical or other process,  used by the client for display or other advertising purposes. Examples: all camera-ready art, drawings, architectural delineations, paintings, retouched photographs, lettering, assembly of elements, and show cards.(5) Nontangible services--Unless related to the sale of employee-fabricated property or the sale of other taxable items, the following are examples of nontangible services:(A) account supervision;(B) account service;(C) creative concept development;(D) consultation service;(E) supervision of any kind not related directly and solely to employee fabrication of taxable items;(F) public relations;(G) setting up press conferences;(H) writing copy for use in any medium;(I) media placement, advertising time, and space charges to client;(J) market research individualized for one client;(K) postage or freight charges occurring after the sale (see §3.303 of this title (relating to Transportation and Delivery Charges);(L) residuals;(M) retainers (reserve right to services of advertising agency or actors, models,  etc.);(N) commissions or fees granted or allowed by suppliers or media;(O) media placement fees, commissions, or discounts allowed to advertising agencies by media upon placement of advertising;(P) secretarial or clerical fees;(Q) telephone, telex, telegraph charges; and(R) travel or transportation expenses not directly and solely related to the fabrication of taxable items.(6) Preliminary art--Roughs, visualizations, layouts, and comprehensives submitted by an advertising agency to its clients for the client's approval of the advertising concept or message prior to the preparation of finished art.(7) Service charges--The charges, commissions, or other compensation received by the advertising agency, however measured or computed, and whether or not related to the acquisition or disposition of taxable items. Standard methods of compensation include:(A) the standard agency commission allowed by the supplier or media;(B) the handling fee or service charge for outside purchases for the client;(C) billable time for creating, directing, consulting, copywriting, or other nontangible services; and(D) retainer fees which would be a charge agreed upon between agency and client for the overall handling of their advertising.(8) Taxable items--All tangible personal property and taxable services.(b) Advertising agency acting as agent of client.(1) An advertising agency may act as the agent of its client-principal in dealing with others. To the extent that it acts as an agent in acquiring taxable items, the advertising agency is neither the purchaser of the property nor is it a seller of the property to its client-principal. When the advertising agency acquires taxable items as agent, title to the property passes directly from the supplier to the client-principal. The agency may not issue the agency's resale certificate to a supplier in lieu of tax.(2) When an advertising agency acts as an agent of its client in the purchase of taxable items, the supplier will add the tax to the net amount billed to the agency. Unless the items purchased are for resale by the client, the agency is responsible for paying sales tax to the supplier on the amount so billed. If the supplier fails to add the tax to the amount billed the agency, it is the agency's responsibility to remit the tax directly to the state. The client-principal is liable to the agency for payment of the tax on the net amount billed. The handling or service fee charged for these purchases is considered nontaxable. If the item purchased is for resale by the client, the client's resale certificate may be issued to the supplier in lieu of sales tax. The resale certificate must show the client's sales tax permit number.(3) An advertising agency may not act as the agent of its client-principal when providing employee-fabricated property. The agency is the seller of such property and the provisions of subsection (c)(2) and (3) of this section apply.(c) Advertising agency acting as a seller to a client.(1) When an advertising agency purchases a taxable item with the intent to resell it to its client, the agency is a seller of such property and acts as a retailer.(2) All employee-fabricated property will be taxable to the client. Examples: finished artwork for print advertising, photographs, records, or supplies used in broadcast. Sales tax is applicable to the charge to the client by the advertising agency for employee-fabricated property.(3) An advertising agency may issue a resale certificate to suppliers in lieu of tax for any item that the agency resells before use or that becomes physically an ingredient or component part of the taxable item sold. Examples: illustration board, paint, ink, rubber cement, flap paper, wrapping paper, photographs, photostats, or art purchased from other artists. See §3.285 of this title (relating to Sales for Resale; Resale Certificates).(4) Sales tax is due on the charge to the customer for employee fabrication and on the cost of items purchased for resale to the customer such as:(A) photographs and additional prints;(B) photostats, line negatives, offset negatives;(C) type composition;(D) finished art;(E) photo retouching;(F) research sold to public (not a single client);(G) printed materials: annual reports, stationery, brochures, direct mail, business cards, ad reprints, sale literature, point-of-purchase materials;(H) outdoor poster paper;(I) radio and television dubs;(J) electrical transcriptions (see §3.309 of this title (relating to Electrical Transcriptions, Recording Studios, Producers));(K) motion picture films (see §3.350 of this title (relating to Audiovisual Works)).(L) video tapes (see §3.350 of this title (relating to Audio-visual Works)).(d) Advertising agency as a consumer. The advertising agency is the consumer and ultimate user of taxable items utilized in the customary conduct of its business operations. This category includes property such as office furniture, equipment, stationery, and other office supplies. The agency owes sales tax on the property purchased in Texas or use tax if purchased outside the state and brought into Texas for use. See §3.346 of this title (relating to Use Tax).(e) Exempt charges. Sales tax is not due on the advertising agency's charge to its customers for:(1) nontangible services except taxable services. See §3.292 of this title (relating to Repair, Remodeling, Maintenance and Restoration of Tangible Personal Property);(2) Service charges for acquisition of property from third party suppliers as agent, or acquisition of property from third party suppliers as sellers.(3) Preliminary article. Any portion of preliminary art that becomes physically incorporated into the finished art shall be taxable. To be considered nontaxable,  charges for all preliminary art must be separately stated and identifiable on agency's internal records.(f) Records required. Each advertising agency must maintain sufficient records that provide the following.(1) Art time records must clearly distinguish layout and preliminary art from finished art.(2) Supplier or media invoices identifying by client the net amount paid, and tax paid, if any.(3) Employee-fabricated property must be easily identifiable on agency internal records.(4) Invoices to clients need not show taxable and nontaxable items separately. The tax due on any invoice need not be shown, but the agency must indicate on the invoice that tax is included on those items subject to tax and the agency must be able to document the amount of tax included on that invoice from its internal records.(5) Commissions, handling, or service fees must be easily determinable on agency records.(6) All certificates, receipts, and/or invoices verifying each deduction from gross sales of nontaxable items listed as follows must be kept on file: sales for resale, sales to exempt organizations, sales to persons using the property in a manner exempt by law, sales of items which are shipped to out-of-state locations by the seller, bad debts, repossessions, returned goods, nontaxable labor and services charges, sales of nontaxable items.(7) Records must be maintained for a four-year period.(g) Seller's responsibilities. For responsibilities of sellers and filing requirements, see §3.286 of this title (relating to Seller's Responsibilities).",
            "sourceNote": "Source Note: The provisions of this §3.321 adopted to be effective January 1, 1976; amended to be effective November 15, 1976, 1 TexReg 3099; amended to be effective July 6, 1981, 6 TexReg 2182; amended to be effective November 19, 1984, 9 TexReg 5717; amended to be effective March 10, 1987, 12 TexReg 603."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207487&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207487",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.322",
                "label": "Exempt Organizations"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=119694&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "119694",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) General policy. This section is administered using the following guiding principles.(1) Because exemptions are not favored under the laws of the State of Texas, the provisions of this section shall be strictly interpreted.(2) An organization must show by clear and convincing evidence that it meets the requirements of this section and the relevant statutes. Any unresolved question about the qualifications of an organization will result in denial of exempt status.(b) Entities that must prove exempt status. Entities or organizations that may qualify for exempt status include:(1) a nonprofit charitable or eleemosynary organization that devotes all or substantially all of its activities to the alleviation of poverty, disease, pain, and suffering by providing food, clothing, medicine, medical treatment, shelter, or psychological counseling directly to indigent or similarly deserving members of society with its funds derived primarily from sources other than fees or charges for its services. If the organization engages in any substantial activity other than the activities described in this section, it cannot qualify for exemption under this provision because it is not organized for purely public charity. However, if the organization is engaged in activities, other than those described in this section, and the additional activities are incidental to and in support of the activities conducted by the organization that are described in this section, the organization may be considered for this exemption. No part of the net earnings of the organization may inure to the benefit of any private party or individual other than as reasonable compensation for services rendered to the organization. Some examples of organizations that do not meet the definition of a charitable organization, even if they are nonprofit organizations that perform services that are often charitable in nature, are as follows: fraternal organizations, lodges, fraternities, sororities, service clubs, veterans groups, mutual benefit or social groups, professional groups, trade or business groups, trade associations, medical associations, chambers of commerce, and similar organizations. Although these organizations do not qualify for exemption as charitable organizations, they may qualify for the exemption under Tax Code, §151.310(a)(2), if they obtain an exemption from the Internal Revenue Service (IRS) under Internal Revenue Code (IRC), §501(c). Chambers of Commerce may qualify for exemption under paragraph (6) of this subsection;(2) a nonprofit educational organization or governmental entity whose activities are devoted solely to systematic instruction, particularly in the commonly accepted arts, sciences, and vocations, and has a regularly scheduled curriculum that uses the commonly accepted methods of teaching, a faculty of qualified instructors, and an enrolled student body or students in attendance at a place where the educational activities are regularly conducted. An organization that has activities that solely consist of presentation of discussion groups, forums, panels, lectures, or other similar programs, may qualify for the exemption under this provision, if the presentations provide instruction in the commonly accepted arts, sciences, and vocations. An organization cannot qualify for exemption under this provision if the systematic instruction or educational classes are incidental to some other facet of the organization's activities. No part of the net earnings of the organization may inure to the benefit of any private party or individual other than as reasonable compensation for services rendered to the organization. Some examples of organizations that do not meet the requirements for exemption under this definition are professional associations, business leagues, information resource groups, research organizations, support groups, home schools, and organizations that merely disseminate information by distributing printed publications. Although these organizations do not qualify for exemption as educational organizations, they may qualify for the exemption under Tax Code, §151.310(a)(2), if they obtain an exemption from the IRS under IRC, §501(c);(3) a nonprofit religious organization that is an organized group of people who regularly meet at a designated physical location for the primary purpose of holding, conducting, and sponsoring religious worship services according to the rites of their sect. The organization must be able to provide evidence of an established congregation that shows regular attendance of these services by an organized group of people. An organization that supports or encourages religion as an incidental part of its overall purpose, or one whose general purpose is to further religious work or instill its membership with a religious understanding, cannot qualify for exemption under this provision. No part of the net earnings of the organization may inure to the benefit of any private party or individual other than as reasonable compensation for services rendered to the organization. Some examples of organizations that do not meet the requirements for exemption under this definition are conventions or associations of churches, evangelistic associations, churches with membership consisting of family members only, missionary organizations, and groups that organize for the purpose of holding prayer meetings, Bible study, or revivals. Although these organizations do not qualify for exemption as religious organizations, they may qualify for the exemption under Tax Code, §151.310(a)(2), if they obtain an exemption from the IRS under IRC, §501(c);(4) a youth athletic organization that is a nonprofit corporation or association that exclusively provides athletic competition among persons under 19 years of age;(5) a nonprofit organization that applies for and obtains a determination letter or a group exemption ruling letter from the IRS that states that the organization qualifies for exemption from federal income tax under IRC, §501(c)(3), (4), (8), (10), or (19);(6) a nonprofit chamber of commerce that represents at least one Texas city, county, or geographic locality. For the purpose of this section, a chamber of commerce is a perpetual organization devoted exclusively to promoting the general economic interest of all commercial enterprises in the city, county, or areas it represents. The term does not include chamber-like organizations such as trade associations or business leagues that serve a single line or closely related lines of business within a single industry;(7) a nonprofit convention and tourist promotional agency organized or sponsored by at least one Texas city or county;(8) an electric cooperative formed under the Electric Cooperative Corporation Act (Utilities Code, Chapter 161) and nonprofit electric cooperatives located outside the state;(9) a telephone cooperative formed under the Telephone Cooperative Act (Utilities Code, Chapter 162) and nonprofit telephone cooperatives located outside the state;(10) a local organizing committee, as defined in Texas Civil Statutes, Article 5190.14, §1(7), that is exempt from federal income tax under IRC, §501(c). The local organizing committee must be authorized by an endorsing municipality, an endorsing county, or more than one endorsing municipality or county acting collectively to pursue an application and submit a bid on the municipality's or county's behalf to a site selection organization for selection as the host site of one or more games or events, as defined in Texas Civil Statutes, Article 5190.14, §§5A, 5B, or 5C;(11) any company, department, or association organized for the purpose of answering fire alarms and extinguishing fires or for the purpose of answering fire alarms, extinguishing fires, and providing emergency medical services, the members of which receive nominal or no compensation for their services; and(12) nonprofit corporations formed under Local Government Code, Chapter 501 (Development Corporation Act of 1979) or Health and Safety Code, Chapter 221 (Health Facilities Development Act of 1981) when they purchase items for their exclusive use and benefit. The exemption does not apply to items purchased by the corporation to be lent, sold, leased, or rented.(c) Entities that are always exempt. Certain entities and organizations are exempt under the law and are not required to request and prove exempt status, except to send information as requested by the comptroller to verify its exempt status under this subsection.(1) The United States, its unincorporated agencies and instrumentalities. The United States includes all parts of the executive, legislative, and judicial branches and all independent boards, commissions, and agencies of the United States government. Instrumentalities and agencies of the United States include:(A) various military entities under the supervision of a base commander;(B) organizations that contract with the United States and whose contracts explicitly and unequivocally state that they are agents of the United States;(C) organizations wholly owned by the United States or wholly owned by an organization that is itself wholly owned by the United States;(D) organizations specifically named as agents of the United States or exempted as instrumentalities of the United States by federal statutes; and(E) organizations having substantially all of the following characteristics:(i) they are funded by the United States;(ii) they carry out a specific program of the United States;(iii) they are managed or controlled by officers of the United States;(iv) their officers are appointed by the United States;(v) they perform commitments of the United States under an international treaty; and(vi) they are not organized for private profit;(2) any incorporated agency or instrumentality of the United States wholly owned by the United States or by a corporation wholly owned by the United States. \"Wholly owned\" means total or 100% ownership;(3) federal credit unions organized under 12 United States Code, §1768;(4) the State of Texas, its unincorporated agencies and instrumentalities; and(5) any county, city, special district or other political subdivision of the State of Texas, and any college or university created or authorized by the State of Texas.(d) Qualification requirements. To qualify for exempt status under subsection (b) of this section, an organization must satisfy all of the following requirements.(1) An organization must be organized or formed solely to conduct one or more exempt activities. The comptroller will consider all documents necessary to prove the purpose for which an organization is formed.(2) An organization must devote its operations exclusively to one or more exempt activities.(3) An organization must dedicate its assets in perpetuity to one or more exempt activities.(4) No profit or gain may pass directly or indirectly to any private shareholder or individual. All salaries or other benefits furnished officers and employees must be commensurate with the services actually rendered.(e) How to obtain exempt status.(1) Application. To apply for and obtain notification of exemption from the comptroller, an organization must complete and submit to the comptroller the appropriate application or its equivalent. Applicants should refer to the Guidelines to Texas Tax Exemptions (publication 96-1045) for assistance in completing the proper application for any exemption sought.(2) Documentation required. In addition to a properly completed application, an organization must submit with the application all documents requested by the application and comptroller publication 96-1045, Guidelines to Texas Tax Exemptions, all governing documents as indicated by subparagraph (A) of this paragraph, and all IRS documents indicated by subparagraph (B) of this paragraph.(A) Governing documents. A copy of each of the organization's governing documents must be submitted with the application as indicated in clauses (i) - (iii) of this subparagraph.(i) An unincorporated organization requesting an exemption must include copies of its formation documents, such as bylaws, constitution, articles of association, certificate of formation, or applicable trust agreement, and any related amendments. If the exemption being sought requires that the organization be a nonprofit, the governing documents must state that the organization is a nonprofit.(ii) A non-Texas corporation requesting an exemption must include file-stamped copies of its formation documents and certificate of existence from the home state of incorporation, and any related amendments.(iii) A non-Texas limited liability company requesting an exemption must include file-stamped copies of its formation documents and certificate of existence from the home state of formation, and any related amendments.(iv) Exception. An organization applying for exemption based on its federal exempt status under IRC, §501(c)(3), (4), (8), (10), or (19), is not required to submit file-stamped copies of its governing documents and certificate of existence unless it is a corporation or limited liability company chartered outside the state of Texas.(B) IRS documents. If an organization is applying for exemption based on its federal exempt status under IRC, §501(c)(3), (4), (8), (10), or (19), the organization must provide copies of all pages of its IRS determination letter or group exemption ruling letter and include any caveat or addendum that applies. If the original determination letter or group exemption ruling letter is more than four years old, the organization must also include a copy of a recent letter from the IRS to confirm the exemption is still valid. A nonprofit organization that claims exemption under a parent's exemption must provide a copy of the parent organization's IRS group exemption ruling letter and a letter from the parent organization that states the applicant nonprofit organization is a subordinate covered by the parent organization's group exemption.(3) The comptroller may require an organization to furnish additional information to further clarify the organization's overall purpose and activities to establish the claimed exemption. For example, the comptroller may request a written statement that details the nature of the activities conducted, or to be conducted, financial information, and documentation that shows all services the organization performs.(4) After a review of the material, the comptroller will inform an organization in writing if it qualifies for exemption.(5) The comptroller or an authorized representative of the comptroller may audit the records of an organization at any time during regular business hours to verify the validity of the organization's exempt status.(f) Revocations, withdrawals, or loss of exemptions.(1) Except as provided in paragraph (2) of this subsection, if at any time the comptroller has reason to believe that an exempt organization no longer qualifies for exemption, a comptroller's representative will notify the organization that its exempt status is under review. A comptroller's representative may request additional information that is necessary to ascertain the continued validity of the organization's exempt status. An organization must immediately notify the comptroller in writing of a revocation, withdrawal, or loss of exemption when the organization no longer qualifies for exemption. If the comptroller determines that an organization is no longer entitled to its exemption, then the comptroller will notify the organization. The date of the notification letter is the effective date of the revocation. All subsequent purchases by the organization are subject to tax.(2) For nonprofit organizations that are granted an exemption under Tax Code, §151.310(a)(2), the revocation, withdrawal, or loss of the federal income tax exemption automatically terminates the sales tax exemption, effective on the date on which the IRS serves formal written notice of the revocation on the nonprofit organization or the date on which the IRS notifies the comptroller, whichever is earlier. All subsequent purchases by the organization are subject to tax.(A) The effective date of a revocation for a nonprofit organization that was granted an exemption as a recognized subordinate is the date on which the organization ceased to be recognized as a subordinate under the federal group exemption. All subsequent purchases by the organization are subject to tax.(B) The organization must notify the comptroller in writing of the revocation, withdrawal, or loss of exemption immediately upon receiving notice from the IRS of such revocation, withdrawal, or loss.(C) Under a federal/state exchange agreement, the IRS may notify the comptroller when an organization no longer qualifies for federal exemption.(3) An organization that loses its exempt status must immediately notify its suppliers that its purchases are subject to tax. Failure to so notify a supplier is a violation of the sales tax law.(4) After revocation, the organization may re-apply for exempt status under other provisions of this section.(g) Purchases by an exempt organization; refund claims; and credits. See §3.287 of this title (relating to Exemption Certificates).(1) The purchase, lease, or rental of a taxable item that relates to the purpose of an exempt organization listed in subsection (b)(1), (2), (3), (5), (10), (11) or (12) of this section is exempt from tax when the organization or an authorized agent of the organization pays for the item and provides the vendor with an exemption certificate in the form prescribed by the comptroller.(2) The purchase, lease, or rental of a taxable item to an exempt organization listed in subsections (c) and (b)(4), (6), (7), (8), or (9) of this section is exempt from tax when the organization or an authorized agent pays for the taxable item and provides the vendor with an exemption certificate in the form prescribed by the comptroller.(3) A purchase voucher issued by any one of the entities identified in subsection (c) of this section is sufficient proof of the entity's exempt status.(4) An exemption certificate must be given to a vendor when an authorized agent makes a cash purchase of merchandise for an exempt organization.(5) An employee of an exempt organization cannot claim an exemption from tax when the employee purchases taxable items of a personal nature even though the employee receives an allowance or reimbursement from the organization.(6) A person who travels on official business for an exempt organization must pay sales tax on taxable purchases whether reimbursed on a per diem basis or reimbursed for actual expenses incurred.(7) Bingo equipment as defined by Occupations Code, §2001.002, including machinery or devices used to select or hold letters or numbers, electronic or mechanical cardminding devices, pull-tab dispensers, bingo cards, balls, and other devices commonly used in the direct operation of a bingo game, are exempt from sales and use taxes when purchased, leased, or rented by an organization exempt under IRC, §501(c)(3), (4), (8), (10), or (19), and exclusively used to conduct bingo games authorized under Occupations Code, Chapter 2001. Commonly available component parts of bingo equipment such as batteries, light bulbs, and fuses do not qualify for this exemption.(8) Refund claims and credits by organizations exempted under Tax Code, §151.310.(A) Qualifying organizations. The following organizations are covered by the provisions of Tax Code, §151.310 and are subject to the provisions of this paragraph:(i) organizations created for religious, educational, or charitable purposes;(ii) organizations qualifying for an exemption from federal income taxes under IRC, §501(c)(3), (4), (8), (10), or (19);(iii) nonprofit organizations engaged exclusively in providing athletic competition among persons under 19 years old;(iv) volunteer fire departments; and(v) chambers of commerce or convention and tourist promotional agencies representing at least one Texas city or county.(B) Exemption effective dates.(i) Organizations identified in subparagraph (A) of this paragraph are not considered exempted from sales and use taxes before the earlier of:(I) the date the organization applied for exemption with the comptroller as evidenced by the postmark date on the organization's qualifying application for exemption as required under subsection (e) of this section; or(II) the date of assessment of the organization's tax liability by the comptroller as a result of an audit.(ii) With the exception of entities that qualify for exemption under subsection (c) of this section, organizations' exemption effective dates can be verified by using the comptroller's Texas Tax-Exempt Entity Search located on the agency's Web site.(C) Refund claims by organizations with exemption effective dates prior to September 1, 2009. Organizations identified in subparagraph (A) of this paragraph with an exemption effective date prior to September 1, 2009 may request a refund or credit for sales and use taxes paid in error, retroactive to the effective date of the organization's exemption or the four-year statute of limitations, whichever date is more recent.(D) Refund claims by organizations with exemption effective dates on or after September 1, 2009. Organizations identified in subparagraph (A) of this paragraph with an exemption effective date on or after September 1, 2009 are not eligible to request a refund or credit for sales or use tax paid between September 1, 2009 and the exemption effective date. If the comptroller has determined the organization with an exemption effective date on or after September 1, 2009, has met the requirements for exemption from the sales tax under Tax Code, §151.310 for a period prior to September 1, 2009, the organization may request a refund or credit for sales and use taxes paid in error on purchases made between the earliest date the comptroller determined the organization met the requirements for the exemption or the four-year statute of limitations, whichever is more recent, and August 31, 2009.(E) See §3.325 of this title (relating to Refunds and Payments Under Protest) for more information about how to claim a refund and §3.339 of this title (relating to Statute of Limitations).(h) Sales by an exempt organization.(1) An exempt organization that sells taxable items must obtain a sales tax permit and is responsible for collection and remittance of tax on all sales of taxable items that the organization makes, unless otherwise provided by this subsection or unless such sales are otherwise exempt from the tax. See §3.293 of this title (relating to Food; Food Products; Meals; Food Service), §3.299 of this title (relating to Newspapers, Magazines, Publishers, Exempt Writings), and §3.298 of this title (relating to Amusement Services).(2) A religious, educational, charitable, or eleemosynary organization, or an organization exempt under IRC, §501(c)(3), (4), (8), (10), or (19), and each of its bona fide chapters, may have two one-day tax-free sales or auctions each calendar year. During a tax-free sale or auction lasting only one day, the organization is not required to collect sales tax on the sales price of taxable items sold for $5,000 or less. Additionally, a taxable item may be sold tax-free during a one-day tax-free sale or auction regardless of price if the item is manufactured by the organization or is donated to the organization and is not sold to the donor.(A) One day is a consecutive 24-hour period. If a designated tax-free sale or auction exceeds a consecutive 24-hour period, the organization or chapter may not hold another tax-free sale or auction during that calendar year. An organization or chapter may hold the two tax-free sales or auctions consecutively, but the two tax-free sales or auctions by that organization or chapter cannot exceed a maximum of 48 consecutive hours in a calendar year.(B) The organization may employ an auctioneer to conduct the sale or auction and pay the auctioneer a reasonable fee not to exceed 20% of the gross receipts.(C) If two or more exempt organizations or chapters jointly hold a tax-free sale or auction, each is considered to have held a tax-free sale or auction during that calendar year. Each exempt organization that participates in a joint tax-free sale or auction may hold one additional tax-free sale or auction during that calendar year.(D) An organization described by subsection (b)(11) of this section and which is granted an exemption may hold 10 tax-free sales or auctions during a calendar year.(i) Each tax-free sale or auction may continue for not more than 72 hours.(ii) The storage, use, or consumption of a taxable item that is acquired from a qualified organization at a tax-free sale or auction and that is exempted from the sales tax under this paragraph is exempted from the use tax until the item is resold or subsequently transferred.(iii) If an organization described by subsection (b)(11) of this section and which is granted an exemption jointly holds a tax-free sale or auction with one or more other exempt organizations, the tax-free sale or auction is considered to be one of the organization's 10 tax-free sales or auctions during that calendar year.(3) Fundraisers. Exempt entities engaged in fundraising activities in conjunction with for-profit entities are not the sellers of any taxable items and do not need to be permitted to collect and remit tax on such sales. See §3.286 of this title (relating to Seller's and Purchaser's Responsibilities).(4) The sale of a taxable item is exempt from sales and use tax if:(A) the seller or retailer is a county fair association or another nonprofit organization that is exempt from federal income taxation under Internal Revenue Code of 1986, §501(a), by being listed as an exempt organization in §501(c)(3) of that code;(B) the sale takes place at a county fair operated by a county fair association on property owned by the county; and(C) the purchaser is a person attending or participating in the fair.(5) For the purposes of this subsection, the following words and terms shall have the following meanings.(A) County Fair Association--An organization that is exempt from federal income taxation under Section 501(a), Internal Revenue Code of 1986, by being listed as an exempt organization in Section 501(c)(3) of that code and that organizes a county fair that is primarily for the exhibition of local horticultural or agricultural products or livestock. A county fair association does not include an association that holds a license issued after January 1, 2001, under Subtitle A-1, Title 13, Occupations Code (Texas Racing Act); or an association that organizes events other than a county fair, including an exhibition of arts and crafts or a state fair.(B) Livestock--Includes poultry, cattle, sheep, swine, horses, mules, donkeys, and goats. Livestock does not include domesticated animals such as dogs, cats, guinea pigs, hamsters, or other similar animals.(6) Sales by agencies and instrumentalities of the federal government are subject to tax, and the agencies and instrumentalities must collect and remit tax unless the collection of tax is specifically prohibited by federal law. If the collection is prohibited by specific federal law, the purchaser of the taxable item shall be liable for reporting and paying the tax directly to the state.(7) Sales of governmental publications, records, or documents.(A) When a governmental body is required to furnish a copy of any document under the Open Records Act, the transaction is not considered the sale of a taxable item. Sales tax is not due on any fee charged by the governmental body for furnishing one or more copies, regardless of whether the copies are certified or the fee is established by statute, ordinance, public official, or state agency.(B) Sales tax is not due on the fee charged by a governmental body for furnishing a copy or copies of a document not open to public inspection to a person who is authorized to obtain a copy or copies of such document. For example, sales tax is not due on the fee charged by a college for furnishing a student's academic transcript to the student or on the fee charged by the Department of State Health Services for furnishing a person a copy of the person's birth certificate.(C) Unless such sales are otherwise exempt, sales tax is due on sales of regular publications, records, or general information by a governmental body, even though such publications, records, or information may be open or available to the public by statute. For example, textbooks sold by a state university and magazine subscriptions sold by a state agency are taxable. See §3.299 of this title.(D) Sales tax collected by state agencies must be remitted in accordance with comptroller accounting requirements.(i) Organizations that do not qualify for exempt status. Examples of organizations that cannot qualify for exempt status include professional groups, certain mutual benefit or social groups, and political, trade, business, bar, or medical associations. However, certain sales by certain organizations may be exempt. For information on exempt sales by senior citizens' organizations, student organizations affiliated with a college or university, or nonprofit animal shelters, see §3.316 of this title (relating to Occasional Sales; Transfers Without Change in Ownership; Sales by Senior Citizens' Organizations; Sales by University and College Student Organizations; and Sales by Nonprofit Animal Shelters).(j) Diplomatic tax exemptions.(1) Sales tax exemptions provided to foreign diplomatic and consular personnel in the United States are governed by international and federal law as administered by the United States Department of State's Office of Foreign Missions.(2) Types of exemption cards.(A) Mission tax exemption cards. Mission tax exemption cards can only be used for official purchases by a foreign consulate or embassy. All purchases must be made in the name of the mission and paid for by a mission check or credit card, not by cash or personal check. The person whose name and photo appear on the card is responsible for ensuring the accuracy of the exemption, but does not need to be present when purchases are made in the name of the mission.(B) Personal tax exemption cards. Only the person whose photo appears on the front side of the card is permitted to use it to purchase the exempted items that are identified on the card. Personal tax exemption cards are not transferable and may not be used by others.(3) Procedures for retailers.(A) Diplomatic tax exemption cards must be presented to the seller at the time of sale for the exemption to apply. If the exemption is not claimed at the time of sale, the comptroller will not refund tax paid on an item which qualifies for a diplomatic tax exemption. The card must be signed.(B) To document the sale of an item subject to a diplomatic tax exemption, a retailer should retain a copy of the sales invoice or contract that bears the identification number appearing on the diplomatic tax exemption card or should make a photocopy of the front and back of the card.(C) Certain diplomatic exemption cards are limited to what and how much may be purchased tax free or may require a minimum purchase before the exemption can be claimed. This information is contained on the diplomatic exemption card itself. Retailers who make sales to persons with cards that require purchases to exceed a certain dollar limit should include only those taxable items that are purchased in the same transaction to determine if the appropriate level has been reached. Purchases made in separate transactions may not be added together to reach minimum exemption levels. Neither type of card identified in paragraph (2) of this subsection can be used to obtain the tax-free sale of utilities.(k) The Alabama-Coushatta, Kickapoo, and Tigua Native American tribes.(1) The purchase, lease, or rental of a taxable item to a tribal council or a business owned by a tribal council of these Native American tribes is exempt from sales tax. An exemption certificate or purchase order from the tribal council is sufficient proof of the exempt sale.(2) Sales made by a tribal council or a business owned by a tribal council of these Native American tribes within the boundaries of the reservation are exempt from sales tax if:(A) the taxable item being sold is made by a member of the tribe; and(B) the taxable item is a cultural artifact of the tribe.(3) Sales made off the reservation or sales made on the reservation of items that are not cultural artifacts are taxable.(l) Bordering states and governmental units of states that border Texas.(1) The State of Arkansas, State of Louisiana, State of New Mexico, and State of Oklahoma, or a governmental unit of any of those bordering states may qualify for exemption on the purchase, lease, or rental of taxable items, but only to the extent that the bordering state or governmental unit of the bordering state exempts or does not impose a tax on similar sales of items to the State of Texas or a political subdivision of the State of Texas.(2) A bordering state or a governmental unit of a bordering state may enter into a reciprocal agreement with the comptroller for the exemption of taxable items purchased, leased, or rented to the State of Texas or a political subdivision of the State of Texas.(3) The purchase, lease, or rental of a taxable item to a bordering state or a governmental unit of a bordering state is exempt from sales tax to the extent allowed under the terms of the reciprocal agreement. An exemption certificate from a qualifying bordering state or a governmental unit of a bordering state is sufficient proof of the exempt sale.",
            "sourceNote": "Source Note: The provisions of this §3.322 adopted to be effective January 1, 1976; amended to be effective October 10, 1976, 1 TexReg 2669; amended to be effective September 15, 1977, 2 TexReg 3392; amended to be effective November 17, 1981, 6 TexReg 4065; amended to be effective February 6, 1984, 9 TexReg 414; amended to be effective November 19, 1984, 9 TexReg 5717; amended to be effective June 18, 1986, 11 TexReg 2553; amended to be effective September 10, 1991, 16 TexReg 4681; amended to be effective September 19, 1996, 21 TexReg 8734; amended to be effective June 20, 2000, 25 TexReg 5915; amended to be effective December 2, 2002, 27 TexReg 11160; amended to be effective July 19, 2011, 36 TexReg 4568; amended to be effective December 29, 2015, 40 TexReg 9724; amended to be effective January 11, 2022, 47 TexReg 29."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=119694&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "119694",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.323",
                "label": "Imports and Exports"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Air forwarder--A licensed International Air Transportation Association freight forwarder.(2) Consignee--The person named in a bill of lading to whom or to whose order the bill promises delivery.(3) Consignor--The person named in a bill of lading as the person from whom the goods have been received for shipment.(4) Licensed and certificated carrier--A person authorized by the appropriate United States agency or by the appropriate state agency within the United States to operate an aircraft, vessel, train, motor vehicle, or pipeline as a common or contract carrier. Certificates of inspection or airworthiness certificates are not the appropriate documents for authorizing a person to operate as a common or contract carrier. These documents relate to the carrier device itself rather than a person's right to operate a carrier business.(5) Licensed customs broker--A person who is licensed by the United States Customs Service to act as a custom house broker and who holds a Texas Customs Broker's License issued by the comptroller as provided in §3.360 of this title (relating to Customs Brokers).(6) Ocean forwarder--A licensed Federal Maritime Commission freight forwarder.(b) United States Constitution. On the basis of the import and export clause of the United States Constitution, Article 1, §10, clause 2, tangible personal property imported into or exported from Texas is exempt from taxation by the Tax Code, §151.307 and §151.330, so long as the property retains its character as an import or export.(c) Exports.(1) When an exemption is claimed because tangible personal property is exported beyond the territorial limits of the United States, proof of export may be shown only by:(A) a copy of a bill of lading issued by a licensed and certificated carrier of persons or property that shows the seller as consignor, the buyer as consignee, and a delivery point outside the territorial limits of the United States;(B) documentation that is valid under §3.360 of this title (relating to Customs Brokers) provided by a licensed customs broker certifying that the property will be exported to a point outside the territorial limits of the United States;(C) formal entry documents from the country of destination showing that the property was imported into a country other than the United States. For the country of Mexico, the formal entry document would be the pedimento de importaciones document with a computerized, certified number issued by Mexican customs officials, or an alternative type of formal entry document also used by Mexican customs officials, such as the boleta;(D) a copy of the original airway, ocean, or railroad bill of lading issued by a licensed and certificated carrier that describes the property being exported and a copy of the air forwarder's, ocean forwarder's, or rail freight forwarder's receipt if an air, ocean, or rail freight forwarder takes possession of the property in Texas; or(E) a maquiladora exemption certificate issued by an organization of the type defined in §3.358 of this title (relating to Maquiladoras). The maquiladora must also provide a copy of its maquiladora export permit issued by the comptroller.(2) The retailer is responsible for obtaining proof of exportation. Only one type of proof relating to a particular piece of property is necessary. For example, a furniture store sells a table and collects sales tax. The purchaser returns to the store a week later with a valid pedimento de importaciones showing that the table was imported into Mexico. The retailer may accept the pedimento, alone, as proof of export and refund the tax. It is not necessary for the retailer to also obtain an export certification form issued by a licensed customs broker. Except as provided in §3.358 of this title (relating to Maquiladoras), exemption certificates, affidavits, or statements from the purchaser that the property will be or has been exported are not sufficient to exempt the sale as an export. The certification form provided by a licensed Texas customs broker as provided in §3.360 of this title (relating to Customs Brokers), is acceptable as proof of export. A passport number taken by a seller from a passport issued by a foreign country is not acceptable as proof of export. For information concerning resale certificates given by Mexican retailers, see §3.285 of this title (relating to Resale Certificate; Sales for Resale).(3) Storing property in Texas by the owner prior to exportation is a use of that property in Texas. Property stored or otherwise used or consumed in Texas by the owner loses its exemption as an export. For example, clothing or jewelry actually worn by the purchaser in Texas is used in Texas; automotive parts (not including electronic audio equipment) installed on the purchaser's motor vehicle in Texas are used in Texas if the vehicle is subsequently driven in Texas; and food ready for immediate consumption that is purchased in Texas is presumed to be used in Texas. By law, electronic audio equipment retains the exemption even if installed in a motor vehicle that is driven in Texas prior to export. Sufficient time will be allowed to arrange for shipping. Property in Texas longer than 30 days from date of purchase will be presumed to have been stored. Any use of the property in Texas by the owner prior to export also causes the loss of the export exemption. Property in the hands of a freight forwarder is not covered by this provision.(4) The sale of property to military personnel is taxable unless proof of export is maintained as outlined in paragraph (1) of this subsection.(5) If a seller delivers property to a purchaser in Texas, the seller must collect tax at the time of sale unless the sale is exempt for a reason other than export and the seller accepts a properly completed resale or exemption certificate. Tax may not be refunded until the property has actually been exported from the territorial limits of the United States and the seller has received valid proof of export as described in this subsection. There is a rebuttable presumption that an export certification form issued by a licensed customs broker who complies with §3.360 of this title (relating to Customs Brokers) is valid. Tax not collected will be assessed against the seller. This paragraph does not apply when proof of export is provided to the seller at the time of sale by a maquiladora according to the terms of paragraph (1)(E) of this subsection.(d) Imports. Property imported into Texas from another country is exempt from Texas use tax as long as the property retains its character as an import. When transit ceases in Texas, the import becomes subject to the Texas use tax.(e) Refunds.(1) A retailer who collects sales tax on tangible personal property that qualifies for exemption under subsection (b) of this section may refund the tax to the original purchaser or the original purchaser's assignee upon receipt of export documentation as required by subsection (c) of this section.(2) A retailer who receives documentation that is valid under subsection (c)(1)(B) of this section, must report the total amount of sales tax refunded as provided in subsection (g) of this section, may not refund the tax paid under this chapter on that purchase before:(A) the 24th hour after the hour stated as the time of export on the documentation, if the retailer is located in a county that borders the United Mexican States; or(B) the seventh day after the day stated as the date of export on the documentation, if the retailer is located in a county that does not border the United Mexican States.(3) The refund may be made by certified check, company check, money order, credit memo, or cash. If the refund is made in cash, the retailer must receive at the time the refund is made a receipt showing a description of the property purchased, the amount and date of the refund, and the name, address, and signature of the purchaser and, if applicable, the purchaser's assignee. A retailer who issues a tax refund to the purchaser's assignee must also receive a copy of the purchaser's written assignment of the right to a refund. A retailer who makes a refund before the time prescribed by subsection (e)(2)(A) or (B) of this section or makes a refund that is undocumented or improperly documented is liable for the tax refunded plus interest.(4) A copy of the certified check, company check, money order, credit memo, or signed cash receipt and a copy of the written assignment of the purchaser's right to a refund, if applicable, must be attached to the original export documents and maintained in the seller's files.(5) In an audit, the auditor must be able to tie the export documents to the original taxable transaction. The seller must retain the original invoice of the sale. Cash register receipts and other records of the original taxable transaction that do not include a detailed, specific description of the items purchased are not sufficient to tie the export documents to the original taxable transaction. Refunds made pursuant to undocumented or improperly documented export exemptions will be assessed against the seller.(f) Records. Please refer to §3.281 of this title (relating to Records Required; Information Required), §3.282 of this title (relating to Auditing Taxpayer Records), and §3.360 of this title (relating to Customs Brokers).(g) Reports. Retailers are required to report the total amount of sales tax refunded for items exported beyond the territorial limits of the United States based on licensed customs broker certifications on a supplemental sales tax report prescribed by the comptroller at the same time and for the same reporting period as the retailer's state sales and use tax return.",
            "sourceNote": "Source Note: The provisions of this §3.323 adopted to be effective November 3, 1985, 10 TexReg 4127; amended to be effective February 19, 1990, 15 TexReg 658; amended to be effective January 1, 1993, 17 TexReg 7583; amended to be effective March 6, 1995, 20 TexReg 1270; amended to be effective January 3, 1996, 20 TexReg 11021; amended to be effective June 20, 2000, 25 TexReg 5915; amended to be effective April 13, 2005, 30 TexReg 2083."
        },
        {
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            "currentRecordId": "161346",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
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            "rule": {
                "number": "§3.324",
                "label": "Oil, Gas, and Related Well Service"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Oil, gas, and related well service--An activity performed for others for a consideration or compensation at any well site including an oil, gas, water disposal, or injection well.(2) Taxable services--The total charge to repair, restore, remodel, or maintain tangible personal property or to repair, remodel, or restore improvements to real property at a lease site. Taxable services also include, but are not limited to, real property services such as surveying and structural pest control at the lease site.(3) Nontaxable services--The labor to start or stimulate production or the labor to work on the formation outside the well. Pumping the product is not considered to be stimulating production.(b) Responsibilities of those providing a nontaxable well service.(1) The labor to perform those services subject to the 2.42% oil well service tax imposed under Tax Code, Chapter 191, is not taxable under Tax Code, Chapter 151.(2) Work performed inside the wellbore for the purpose of starting initial production or increasing production by working on the formation is not taxable. The following activities are not taxable.(A) Fracturing (frac job)--Work done on a well using high pressure pumps to stimulate production by increasing the permeability of the producing formation. Under extremely high hydraulic pressure a fluid (water, oil, alcohol, hydrochloric acid, liquefied petroleum gas, foam) is pumped down through the tubing and forced into perforations in the casing. The fluid enters the producing formation and parts or fractures it. Sand, aluminum pellets, glass beads, or similar materials are carried in suspension into the fractures. These are propping agents. When pressure is released at the surface the frac fluid returns to the wellbore and the fractures partially close on the proppants leaving channels for oil or gas to flow through to the wellbore. The well is then ready to complete or put back on production. (See Tax Code, Chapter 191, relating to the 2.42% well servicing tax.)(B) Perforating--A special service done by lowering into the well a perforating gun that fires electrically detonated bullets or shaped charges. The gun is controlled from the surface. The casing and cement wall are pierced to provide holes through which the contents of the formation may enter.(C) Squeeze cement--Cementing trucks with high pressure pumps force cement slurry to a specified point in the well to cause seals at the points of squeeze. It is a secondary cementing method that is used to isolate a producing formation or seal off water. (See subsection (d)(5) of this section for the tax responsibilities to repair the casing string.)(D) Workover--To perform one or more remedial operations when the formation has declined in production or ceased to produce, with the hope of restoring or increasing production. Workover operations can include deepening or plugging back.(E) Acidizing--The treatment of formations by chemical reaction with acid in order to increase production. Hydrochloric or other acid is pumped into the formation under pressure causing the pore space and permeability to increase. The acid may be held under pressure for a period of time before the well is put back on production. Chemical inhibitors are combined with the acid to prevent corrosion of the pipe. (See Tax Code, Chapter 191, relating to 2.42% well servicing tax.)(F) Logging--A device which is run into the well to record certain electrical or radioactive characteristics of the formations. The purpose of the well log is to locate, identify, and evaluate the various formations present. (See Tax Code, Chapter 191, relating to 2.42% well servicing tax.)(G) Drilling deeper--A workover operation where the well is deepened in either the existing or another producing formation.(H) Plug back--A workover operation placing cement in the bottom of a well for the purpose of excluding bottom water, sidetracking or producing from a formation already drilled through. A mechanical plug can be set by wireline, tubing, or drill pipe.(I) Completion--The act of bringing a well to productive status. Numerous services are used to complete a well, including running casing, cementing, logging, perforating, fracturing, acidizing, swabbing, and other special services depending on characteristics of the formation.(J) Plug and abandon--To set cement plugs into a well preparatory to abandonment.(K) Pulling or resetting casing liner--A liner is any string of casing whose top is located below the surface. Liners are set for the purpose of admitting production to the bottom of the well. Pulling or resetting a liner involves moving this casing up or down the hole or pulling it out of the well.(L) Installing a casing liner--This service is similar to that described in subparagraph (K) of this paragraph except that it involves the initial installation of the casing to the desired depth for producing the well.(M) Drilling out a plug--The removal by drilling of the cement set as a plug in the wellbore.(N) Putting on artificial lift (new installation)--If a well will not produce by natural energy, a method is used to lift the oil to the surface. Artificial lift systems include rod pumping, gas lifting, hydraulic pumping, and centrifugal pumping.(O) Running a bottom hole bomb--The pressure in a well at a point opposite the producing formation is recorded by a bottom hole pressure bomb, a steel container that houses a precision pressure gauge. The bomb is lowered on a wireline.(P) Swabbing--Operating a rubber faced cylinder up and down on a wireline to bring fluids to the surface when the well will not flow naturally. In the event an oil well does not flow after being swabbed it is necessary then to install artificial lift equipment.(Q) Jetting--Introduction of nitrogen or other inert gases into the wellbore to enhance production or recovery. The gases have no beneficial effect on downhole equipment.(R) Gravel packing--The installation of a screen to prevent the intrusion of formation sand into the wellbore.(S) Hot oil treatment of formation--If a hot oil unit is used for the purpose of treating the formation, it will be considered a nontaxable service. The invoice must clearly identify the purpose of the treatment or it will be considered to be a treatment on the wellbore and taxable.(3) The provider of a nontaxable service should pay sales tax on any machinery or equipment purchased or rented to provide the service and on any materials (except cement) used, consumed, or expended in the well.(4) The provider of a nontaxable service may not collect sales tax from customers on any portion of the charge for service. If the provider of the service wishes to be reimbursed for sales tax paid on the purchase price of provided materials used, the tax must be included in a single charge for materials. The tax may not be separately stated.(5) If the provider of a nontaxable service sells any materials to a customer that were not used in the well servicing, sales tax must be collected on the sales price. Any machinery or equipment transferred to the customer will be taxable to the customer if sold or rented without an operator. Those items listed on the well service invoice as \"rentals\" which are so called merely because of the carry-over of the term from past industry practice are not rentals as defined in §3.294 of this title (relating to Rental and Lease of Tangible Personal Property).(6) Direct payment permit holders should not issue direct payment exemption certificates to persons providing nontaxable services.(7) When a direct payment permit holder is doing business with a person who may be selling taxable items as well as nontaxable services, the direct payment exemption certificate must indicate that it does not cover any nontaxable services that the servicer may provide. The issuance of a specific direct payment exemption certificate will be considered evidence of the direct payment permit holder's intent to purchase any tangible personal property transferred by the service provider rather than the purchase of a nontaxable service.(c) Sale or rental versus service.(1) If a company merely provides equipment and a supervisor, the presumption will be that the company is not providing services but selling or renting equipment. The charge for the supervisor's time is part of the tax base as an expense connected with the sale or rental. Mileage charges are also taxable. Equipment being incorporated into the wellbore, i.e., hanger liners, packers, plugs, etc., may be purchased tax free by issuing a resale certificate. The invoice and/or back-up work tickets must clearly indicate what is occurring.(2) A service company must pay tax on tools and equipment used to provide a service. If a service company also rents the tools to others, sales tax must be collected on the rental price. A service company that issues a resale certificate for tools which it will rent to others must keep those tools separate from those which it uses to perform services.(d) Responsibilities of those providing taxable services.(1) Persons who provide taxable services must collect sales tax from their customers on the total charge (materials and labor) for the service. Charges for mileage, trip charges, standby charges, etc., connected with taxable services will also be taxable. The following activities by service companies are taxable.(A) Pump change--Replacing bottom hole pump.(B) Rod/tubing job--Pulling sucker rods and/or tubing out of and running it back in the well. See subsection (e)(1) of this section.(C) Fishing for rods or tubing--When sucker rods break or part, or tubing parts, a fishing tool is run to recover the parted rods or tubing.(D) Tubing leak--The small diameter pipe in a well that serves as conduit for the oil and gas may become worn or develop a leak. Tubing is pulled and tubing or collar replaced.(E) Change packer or anchor--A packer is a device used to block communication through the annular space between two strings of pipe. Production packers may be retrievable or permanent. An anchor is a device that secures or fastens downhole equipment. Rods and/or tubing may be pulled to change a packer or anchor.(F) Hot oil or water treatment of casing, tubing or flow lines--The treatment of a producing well with heated oil or water so as to melt accumulated paraffin in the annulus, tubing or surface piping (flow line) through which the oil travels from the well to storage. Special truck-mounted hot oil units heat the oil or water and pump it down the well or through the flow lines.(2) The provider of a taxable service should pay sales tax on any machinery or equipment purchased or rented to provide the service and on any materials (except cement) used or consumed in providing the service which do not become a part of the items inside the wellbore.(3) Those items of equipment which become a component part of the items inside the wellbore are considered to be sold as a part of the taxable service and may be purchased tax free by the provider of the taxable service. The provider of the taxable service will collect sales tax from the customer on the total charge (materials and labor) for the taxable service.(4) On occasion, down hole services described in this subsection may be performed in order to facilitate a nontaxable service, e.g., pull tubing to perform workover. This will render the taxable service nontaxable. Any equipment incorporated into the well, in this situation, will still be considered as sold to the operator; and the operator will owe tax on the amount charged for the equipment.(5) The labor to repair, remodel, or restore an item of real property is a taxable service. Tax is due on the total amount charged for the taxable service. The following activities are taxable.(A) Squeeze cement--Cementing trucks with high pressure pumps force cement slurry to a specified point in the well to cause seals at the points of squeeze. It is a secondary cementing method used to repair casing leaks or damage;(B) Pulling or resetting casing liner--Pulling or resetting a liner for the purpose of repairing the casing string.(e) Work crews.(1) The labor charge by persons who prepare a well for servicing will be taxable or not taxable depending on what is actually done by the provider of the service. For example, a crew removing rods so that a pump may be repaired would be providing taxable labor. A crew removing tubing so that a workover could be accomplished would not be providing taxable labor.(2) General maintenance around a well site may be either maintenance on tangible personal property, a real property service (§3.356 of this title (relating to Real Property Service)), or a repair of an improvement to real property (§3.357 of this title (relating to Nonresidential Real Property Repair, Remodeling, and Restoration; Real Property Maintenance)) depending on the service provided. Examples of maintenance of tangible personal property include service to tanks with a capacity of 500 barrels or less, flow lines, whether above or below ground, pumps, and gauges. Examples of real property services would include structural pest control by a licensed exterminator. An example of a repair or restoration of real property would be sandblasting and repainting 1000 barrel tanks. Examples of nontaxable services performed at well sites include cutting weeds, covering oil spills and mowing grass.(3) All welding in the field will be presumed to be taxable unless billings clearly indicate the labor was performed as part of new construction as defined in §3.357 of this title or third-party installation (initial only) of customer-owned equipment.(f) Lost or damaged items.(1) Any charges by the service company for items lost or damaged beyond repair while providing the well service will not be considered a sale of such items but a reimbursement of cost by the customer. The transaction should not be labeled as a \"sale\" on the invoice. The service company may be reimbursed for the sales or use tax it paid by including the sales or use tax on the invoice to the customer as a part of the charge for such item. The reimbursement of sales or use tax may not be separately stated as tax.(2) When a service company actually rents items to a customer, their charges are taxable. This includes any charges for damage waiver or repair to the items after their return.(g) All process licenses are intangible items, and the fees paid by the service company to the holder of the patents are nontaxable where there is a service only.(h) Chemicals, brine water, potassium chloride (KCL), CO2--sales versus service.(1) Because maintenance to tangible personal property is taxable, the injection of maintenance-type chemicals such as corrosion inhibitors, bactericides, etc., into the wellbore is considered a taxable service. Since certain chemicals are oil soluble and remain in the product flow after injection, the well operator may purchase those chemicals separately from the service provider and issue a resale certificate in lieu of tax on the charge for the chemicals. All charges associated with the injection would be taxable including mileage, standby, pump truck, and labor.(2) The injection of chemicals to stimulate production or remove impurities from the product being removed such as acid, emulsifiers, or nitrogen is a nontaxable service. The service company is the consumer of all chemicals pumped down hole and must pay tax at the time of purchase.(3) Excluding that which may be purchased to provide nontaxable well services identified in subsection (b) of this section, CO2 used to stimulate production may be purchased, exempt from tax, by the well operator for injection provided the well operator issues a properly completed exemption certificate in lieu of paying the tax.(4) Kill charges will be taxable or nontaxable depending on the overall purpose. All kill charges will be presumed taxable until the contrary is established. The service company should bill tax if it is not known at the time of billing what the overall purpose was. The operator must then pay the tax or provide either a direct payment exemption certificate or a statement that the purpose was to facilitate a nontaxable service. The statement must be definite in the purpose claimed. Statements such as \"to stimulate production\" are insufficient and will be disallowed.(5) A service company will be considered to be providing services if they do the actual injection into the well. Delivery into a frac tank or other storage unit will be considered a sale of tangible personal property. If it is unclear from the invoice, the presumption will be that if a high pressure pump truck is used, a service has occurred; if a vacuum truck is used to deliver the fluids or CO2, then a sale of tangible personal property has occurred. The service company may purchase all components of the fluids tax free when making a sale or providing a taxable service.",
            "sourceNote": "Source Note: The provisions of this §3.324 adopted to be effective August 19, 1985, 10 TexReg 2550; amended to be effective November 25, 1988, 13 TexReg 5577; amended to be effective March 28, 2013, 38 TexReg 2019."
        },
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            "title": {
                "number": "34",
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                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
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                "number": "3",
                "label": "TAX ADMINISTRATION"
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            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.325",
                "label": "Refunds and Payments Under Protest"
            },
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            "ruleBody": "(a) Requirements for refund claims.(1) Refund claims by non-permitted purchasers. A person who does not have a sales and use tax permit and who has paid tax in error to a permitted seller may request a refund only from the permitted seller to whom the tax was paid. The permitted seller who refunds tax to a purchaser may claim a refund as provided by paragraph (2) of this subsection. A permitted seller may assign its right to refund to the purchaser, who may then request a refund directly from the comptroller as provided by paragraph (4) of this subsection.(2) Refund claims by permitted sellers and third party assignees and successors.(A) With one exception relating to the return transactions, no taxes, penalties, or interest will be refunded by the comptroller to a permitted seller who has collected tax in error from a purchaser until all such taxes are first refunded or credited with the purchaser's written consent to the person from whom they were collected. If the refund claim relates to a return of tangible personal property, a permitted seller is entitled to claim a credit or request a refund of sales tax equal to the amount of sales tax refunded to a purchaser when the purchaser receives a full or partial refund of the sales price of a taxable item that is returned to the seller.(B) Before a permitted seller refunds to a purchaser tax collected in error on the sale of a taxable item, the permitted seller must obtain from the purchaser a properly completed exemption or resale certificate that meets all the requirements of §3.285 of this title (relating to Resale Certificate; Sales for Resale) and §3.287 of this title (relating to Exemption Certificates). The permitted seller must retain the certificate to document the basis for the refund.(C) After the permitted seller has refunded or credited the tax to the account of the purchaser, the permitted seller may then seek reimbursement from the comptroller in accordance with the procedures that are outlined in paragraph (4) of this subsection or take a credit on a future sales and use tax return filed by the seller in the amount refunded or credited to the account of the purchaser.(D) Refunds on exports. See §3.323 of this title (relating to Imports and Exports) for information about amounts a seller can refund on taxable items that are exported by a purchaser.(E) A permitted seller's right to a refund may be assigned to a third party such as a creditor, settlement trustee, or successor entity. The comptroller will grant or deny a refund claimed by a third party assignee on the same basis as if it had been claimed by the original seller. The third party assignee must comply with all requirements of this section when filing any refund claim, including the requirement to refund or credit tax paid in error to the purchaser in accordance with subparagraph (C) of this paragraph.(3) Refund claims by permitted purchasers.(A) How to file a refund claim. A permitted purchaser may amend a return for the period in which an overpayment was made, file a refund claim with the comptroller according to the requirements of paragraph (4) of this subsection, or take a credit on a future sales and use tax return filed by the purchaser for taxes paid in error to a permitted seller. The permitted purchaser must have been permitted at the time the tax paid in error was due and payable in order to claim a refund directly from the comptroller, amend a return for the period in which an overpayment was made, or to take a credit on a future sales and use tax return. If the permitted purchaser was not permitted at the time the tax paid in error was due and payable, the permitted purchaser must be assigned the right to refund by the permitted seller and must file a refund claim with the comptroller for the assigned taxes that meets the requirements in paragraph (4) of this subsection.(B) Sample and projection method of calculating refund claims. A permitted purchaser who paid tax in error to a permitted seller may compute the amount of overpayment by use of a projection based on a sampling of transactions and on a method that complies with generally accepted sampling methods as approved by the comptroller. The purchaser must have been permitted for the entire period included in the projection. The method by which the projection and computation were performed must be retained and be made available upon request of the comptroller.(C) Credits.(i) Reports and documentation. A permitted purchaser who paid tax in error to a permitted seller and who takes credits on tax returns is required to report the total amount of tax credit being taken and the earliest date of the tax paid in error on a supplemental sales tax report prescribed by the comptroller. The permitted purchaser must retain, for the period required in Tax Code, Chapter 111, all documentation that is necessary to support the credit claimed.(ii) Credits allowed on certain purchases. See §3.338 of this title (relating to Multistate Tax Credits and Allowance of Credit for Tax Paid to Suppliers) for additional rules about credits that can be claimed by permitted purchasers.(4) A person who requests a refund from the comptroller must:(A) submit a claim in writing that states fully and in detail each reason or ground on which the claim is founded;(B) identify the period during which the claimed overpayment was made;(C) include, at a minimum, each of the following about each transaction upon which a refund is requested:(i) purchaser or seller's name, as appropriate;(ii) invoice number, if applicable;(iii) date of transaction;(iv) description of the item(s) purchased or sold;(v) specific reason for the refund, such as applicable statutory authority;(vi) purchase or sale amount subject to refund;(vii) total amount of tax refund requested;(viii) identification of all local jurisdictions to which tax was remitted; and(ix) if requesting a refund for taxes paid in error to a permitted seller, the seller's name, address and sales tax permit number or information that allows the comptroller to identify the seller's sales tax permit number;(D) submit the claim within the applicable limitations period as provided by subsection (b) of this section; and(E) submit supporting documentation to verify any refund claimed or credit taken, such as copies of invoices, cancelled checks, and executed contracts. If the supporting documentation cannot be easily mailed or otherwise easily submitted to the agency, the refund claim must include a statement that all supporting documentation necessary to verify the claim will be made available to the comptroller upon request.(b) Statute of limitations for refund claims.(1) Unless otherwise indicated by this section, a claim for refund must be made within four years from the date on which the tax was due and payable as provided by Tax Code, §151.401.(2) A claim for refund for tax paid pursuant to a deficiency determination must be made by the later of:(A) four years from the date on which the tax was due and payable; or(B) six months after the date on which the deficiency determination for the periods becomes final, and is subject to the restriction imposed by paragraph (3) of this subsection.(3) A refund claim filed within six months after the date on which a deficiency determination becomes final is within the limitations period for all items included in the deficiency determination. A refund claim for all other items is subject to the limitations period in paragraph (1) of this subsection.(4) Extension of limitations period. Before the expiration of the statute of limitations, the comptroller and a taxpayer may agree in writing to extend the limitation period in accordance with Tax Code, §111.203. An extension applies only to the periods specifically mentioned in the agreement and no single extension agreement may be for a period that exceeds 24 months from the date of the expiration of the limitations period being extended. Any refund request pertaining to periods for which limitations have been extended must be made prior to the expiration date of the agreement. Following expiration of the agreement, the statute of limitations applies to subsequent refund requests as if no extension had been authorized.(5) A redetermination or refund proceeding does not toll the statute of limitations, except for the issues contested.(6) Failure to file a claim within the limitations prescribed by this section constitutes a waiver of any demand against the state on account of the overpayment.(7) The informal review of a refund claim by the comptroller is not a hearing or contested case and does not toll the limitation period for any subsequent claim for refund on the same period and type of tax for which the claim was fully or partially denied.(8) For more information about the statute of limitations, see §3.339 of this title (relating to Statute of Limitations).(9) Limitations on refunds and credits claimed by organizations exempt from sales and use tax under Tax Code, §151.310. Organizations that are exempt from sales and use tax under Tax Code, §151.310 should see §3.322 of this title (relating to Exempt Organizations) for information about limitations on refunds and credits that may be claimed depending on whether the organization qualifies for exemption either before or on or after September 1, 2009.(10) Requirements to toll the statute of limitations.(A) Subject to the other paragraphs of this subsection regarding the statute of limitations, a refund claim that is filed with the comptroller will toll the statute of limitations if the following requirements are met:(i) the claim states fully and in detail each reason or ground on which the claim is founded, as required by subsection (a)(4)(A) of this section;(ii) the claim identifies the period during which the claimed overpayment was made, as required by subsection (a)(4)(B) of this section;(iii) if the claim is being filed by a non-permitted person who is an assignee of or successor to a refund that may be owed, the person submits with the claim for refund the assignment of right to refund; and(iv) if a person other than the person to whom the refund is due is submitting the claim for refund, a power of attorney is submitted with the claim.(B) If the refund claim meets the requirements of subparagraph (A) of this paragraph, but does not meet the other requirements under subsection (a)(4) of this section, the claim will be denied and the person may request a hearing as provided by subsection (e) of this section.(C) If a person does not meet the requirements of subparagraph (A) of this paragraph, the statute of limitations will not be tolled.(c) Interest on Refunds.(1) Eligibility for Interest. Interest is earned on refunds except in the following situations:(A) a refund claim for a period for which a report is due before January 1, 2000;(B) credits taken by a taxpayer on a return;(C) tax paid on an account that is later determined to be uncollectable and written off as a bad debt for federal tax purposes. See §3.302 of this title (relating to Accounting Methods, Credit Sales, Bad Debt Deductions, Repossessions, Interest on Sales Tax, and Trade-Ins); and(D) as otherwise determined by the comptroller.(2) Interest rates.(A) Refunds claimed before September 1, 2005. The interest rate for a refund that is claimed before September 1, 2005 and granted for a period for which a report is due after December 31, 1999 is the rate set in Tax Code, §111.060, as provided in Tax Code, §111.064.(B) Refunds claimed on or after September 1, 2005. The interest rate for a refund that is claimed on or after September 1, 2005 and granted for a period for which a report is due after December 31, 1999 is the lesser of the annual rate of interest earned on deposits in the state treasury during December of the previous calendar year as determined by the comptroller or the rate set in Tax Code, §111.060, as provided in Tax Code, §111.064.(3) Calculation of Interest. Interest accrues on refund claims identified in paragraph (1) of this subsection at a rate determined by paragraph (2) of this subsection on the net amount that is found to be erroneously paid:(A) beginning on the later of 60 days after the date of payment or the due date of the tax report; and(B) ending, as determined by the comptroller, on either:(i) the date of allowance of credit that results from either a final decision that the comptroller has issued or from an audit; or(ii) a date that is not more than 10 days before the date of the refund warrant.(d) Determining when a refund is claimed.(1) The postmark date or its equivalent on a refund request determines when a refund is claimed.(2) If refund claims or credits are pending with the comptroller and a person makes additional claims for refund, the date of each claim controls whether interest is due and the amount applicable to each separate claim.(e) Denial of refund claim.(1) The comptroller will notify the claimant if the comptroller determines that a refund claim cannot be granted in part or in full and will also notify the claimant which requirements of subsection (a)(4) of this section were not met. The claimant may then request a refund hearing within 30 days of the denial.(2) A person may not refile a refund claim for the same transaction or item, tax type, period, and ground or reason that was previously denied by the comptroller.(3) After receiving a timely request for a refund hearing, the comptroller may issue a written demand notice requesting that all documentation to enable the comptroller to verify the claim be produced within 180 days from the date of the demand notice. A person may not introduce into evidence at the hearing any documents that were not timely produced as requested by the demand notice. This limitation does not apply to a judicial proceeding filed in accordance with Tax Code, Chapter 112. The ability of the comptroller to demand documentation once a claim for a refund hearing is requested does not eliminate the requirement that persons provide documentation under subsection (a)(4)(E) of this section when the refund is first claimed.(f) Payments under protest. A person who intends to file suit under Tax Code, Chapter 112, Subchapter B, must submit to the comptroller a letter of protest with the payment of the tax that is the subject of the protest. For information about payments under protest and electronic funds transfer payments, see §3.9(h) of this title (relating to Electronic Filing of Returns and Reports; Electronic Transfer of Certain Payments by Certain Taxpayers). The letter of protest must state fully and in detail every reason that the taxpayer contends that the assessment is unlawful or unauthorized and must accompany the payment. If the payment and letter of protest do not accompany one another, the payment will not be deemed to have been made under protest. The comptroller will advise the taxpayer of the amount of payment under protest that the comptroller has received and the date of the payment.",
            "sourceNote": "Source Note: The provisions of this §3.325 adopted to be effective July 19, 2011, 36 TexReg 4570; amended to be effective January 7, 2013, 38 TexReg 148."
        },
        {
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            "currentRecordId": "146985",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.326",
                "label": "Carbon Dioxide Capture and Sequestration"
            },
            "nextRule": {
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                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Advanced Clean Energy Project--A project for which an application for a permit or for an authorization to use a standard permit under Health and Safety Code, Chapter 382 is received by the Texas Commission on Environmental Quality on or after January 1, 2008, and before January 1, 2020. At its conclusion, the project will meet all standards with respect to energy sourcing, method of related generation or co-generation of electricity, emissions levels, and carbon dioxide capture and sequestration as set forth in Health and Safety Code, §382.003(1-a). A project may include new construction; nonresidential repair, remodeling, or restoration; maintenance; or the sale and installation of qualifying components of tangible personal property.(2) Anthropogenic Emission Source--A location that emits man-made carbon dioxide, including but not limited to, a coal burning electric production plant.(3) Clean Energy Project--A project defined by Natural Resources Code, §120.001(2), and certified as such by the Railroad Commission of Texas as provided by Natural Resources Code, §120.004. A project may include new construction; nonresidential repair, remodeling, or restoration; maintenance; or the sale and installation of qualifying components of tangible personal property.(4) Components of tangible personal property--For the purposes of this section, the term shall have the meaning given to the term \"tangible personal property\" as defined in Tax Code, §151.009 and includes tubing, pipe, valves, tanks, machinery and equipment, including replacement parts for such items, used specifically to capture carbon dioxide from an anthropogenic emission source, to transport or inject carbon dioxide from such a source, or to prepare carbon dioxide from such a source for transportation or injection. The term also includes actuators, generators, transformers (and the switches, breakers, capacitor banks, regulators, relays, reclosers, fuses, interruptors, reactors, arrestors, resistors, insulators, instrument transformers, and telemetry units that are related to the transformers), electronic control room equipment, computerized control units, pumps, hydraulic units, and related accessories that are used to power, supply, support, or control such components.(5) Install--To attach or incorporate components of tangible personal property that either retain their identity as tangible personal property or become improvements to realty.(6) Maintenance on real property--For operational and functional improvements to realty, maintenance means scheduled, periodic work that is necessary to sustain or support safe, efficient, continuous operations, or to prevent the decline, failure, lapse, or deterioration of the improvement. Taxable real property services that are described by §3.356 of this title (relating to Real Property Service) do not qualify as maintenance. Maintenance does not include work to remodel, modify, upgrade, perform major repair, or restore, even if the work is scheduled or periodic.(A) As it relates to maintenance, the term \"scheduled\" means anticipated and designated to occur within a given time period or production level.(B) As it relates to maintenance, the term \"periodic\" means ongoing or continual or at least occurring at intervals of time or production that are reasonably predictable.(7) Modification--The alteration or upgrade of an existing improvement to real property by repair, remodeling, or restoration (see §3.357 of this title (relating to Nonresidential Real Property Repair, Remodeling, and Restoration; Real Property Maintenance)) or the alteration or upgrade of existing components of tangible personal property that have maintained their identity as tangible personal property after installation. Partial demolition of existing nonresidential realty is taxable modification. The complete demolition of an existing nonresidential improvement to real property is not modification and is not taxable.(8) Replacement part--Any part attached to an installed component of tangible personal property to repair or upgrade the component.(9) Sequester--To inject carbon dioxide into a geological formation:(A) as part of an enhanced oil recovery project that qualifies for a tax rate reduction under Tax Code, §202.0545(c); or(B) in a manner and under conditions that create a reasonable expectation that at least 99% of the carbon dioxide will remain separated from the earth's atmosphere for at least 1,000 years.(b) Exemption for certain components of tangible personal property.(1) The sale, use, storage or consumption of components of tangible personal property used in connection with an advanced clean energy project or a clean energy project are exempted from sales and use tax if:(A) the components are installed on the project, either to become annexed to realty or to retain their identity as tangible personal property, are necessary and essential, and are used in this state directly:(i) to capture carbon dioxide from an anthropogenic emission source;(ii) to transport or inject carbon dioxide from such a source; or(iii) to prepare carbon dioxide from such a source for transportation or injection; and(B) the carbon dioxide is sequestered in this state.(2) Items that are merely useful or incidental to the project, such as office machines, office supplies, maintenance supplies, cleaning supplies, lubricants, consumables and similar items are taxable.(c) Records required. A qualifying project must maintain records that support the exemption and are verifiable by audit. See §3.281 of this title (relating to Records Required; Information Required) and §3.282 of this title (relating to Auditing Taxpayer Records). The records must include copies of invoices showing the item purchased, the date of purchase, the amount of purchase and the identity of the seller. Records must also reflect the exempt nature of the component of tangible personal property purchased under an exemption certificate, and must also substantiate at the conclusion of the project that:(1) in the case of a clean energy project, the project is certified by the Railroad Commission of Texas as provided by Natural Resources Code, §120.004; or(2) in the case of an advanced clean energy project, the Texas Commission on Environmental Quality has received an application for a permit or for an authorization to use a standard permit under Health and Safety Code Chapter 382 on or after January 1, 2008, and before January 1, 2020, and the project:(A) involves the energy sourcing types and related electricity generation or co-generation methods set forth in Health and Safety Code, §382.003(1-a)(A);(B) meets the emissions level standards set forth in Health and Safety Code, §382.003(1-a)(B); and(C) captures and sequesters carbon dioxide in accordance with the standards set forth in Health and Safety Code, §382.003(1-a)(C).(d) Contracts to improve realty.(1) A contractor who incorporates components of tangible personal property into realty as covered in §3.291 of this title (relating to Contractors) may accept an exemption certificate in lieu of tax for any components of tangible personal property that qualify for exemption under subsection (b) of this section sold under a separated contract. Taxable materials, such as foundation materials, must be separately stated from qualifying components of tangible personal property. A single charge for qualifying and nonqualifying materials will be presumed taxable.(2) The services of a contractor who incorporates components of tangible personal property into realty under a lump-sum contract as part of new construction as covered in §3.291 of this title are not taxable. Although a contractor is the consumer of all the materials the contractor uses in the performance of a lump-sum contract, the contractor may issue an exemption certificate to a vendor of components of tangible personal property when the components will be installed on a project qualifying for exemption under subsection (b) of this section.(3) When components of tangible personal property are incorporated into realty as part of a qualifying repair, remodeling, or restoration project as described in subsection (b) of this section, the components will be exempt and should be separately stated from both nonqualifying materials and taxable labor. A lump-sum charge to repair, remodel, or restore nonresidential realty is presumed taxable. The presumption may be overcome by the service provider at the time the transaction occurs by separately stating to the customer a reasonable charge for the taxable services. If, however, the charge for the qualifying components of tangible personal property is not separately stated at the time of the transaction, the service provider or the purchaser may later establish for the comptroller, through documentary evidence, the percentage of the total charge that relates to exempt qualifying components. Examples of acceptable documentation include purchase invoices, bid sheets, or schedules of values. See §3.357 of this title.(e) Sale and Installation. The sale and installation of components of tangible personal property on a qualifying project, as described in subsection (b) of this section, are exempt when the items retain their identity as tangible personal property.(f) Taxable services performed on exempt items. A person who performs repair, restoration, remodeling or maintenance services on exempt components of tangible personal property, which, after installation, retain their identity as tangible personal property, is not required to collect sales tax on that service if the customer provides a properly completed exemption certificate.(g) Maintenance on real property. Components of tangible personal property installed as part of maintenance on real property are exempt when the installation is performed on a clean energy project or an advanced clean energy project. Persons performing real property maintenance under separated contracts should refer to subsection (d)(1) of this section. Persons performing real property maintenance under lump-sum contracts should refer to subsection (d)(2) of this section.(h) Divergent use. A person who claims a valid exemption or refund on the purchase of a component of tangible personal property under the provisions of subsection (b) of this section, but who then uses the item in a taxable manner, is required to report and pay sales tax to the comptroller based on the fair market rental value of the component of tangible personal for the period of time that the item is used in a taxable manner. At any time, a purchaser may elect to pay sales tax on the purchase price of the item, but no credit is allowed for taxes that were previously paid based on fair market value. See §3.287 of this title (relating to Exemption Certificates).(i) Effective date. The provisions of this section are effective September 1, 2009. A purchaser who claims an exemption under this section must give the seller a properly completed exemption certificate. The sale, use, storage or consumption of such items prior to September 1, 2009, is taxable unless otherwise exempt.",
            "sourceNote": "Source Note: The provisions of this §3.326 adopted to be effective August 5, 2010, 35 TexReg 6694."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95553&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "95553",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.327",
                "label": "Taxpayer's Bond or Other Security"
            },
            "nextRule": {
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                "recordId": "3823",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Each person who applies for a tax permit or who becomes delinquent in the payment of any taxes, penalties, or interest must furnish security in the amount that the comptroller determines to be sufficient to protect the state against a failure to pay any amounts or costs which may become due under the state, city, special purpose district, county, and metropolitan transit authority sales and use tax laws.(b) A person who applies for a tax permit may be required to post a bond or security in an amount that is equal to the greater of $100,000 or four times the amount of the average monthly tax liability. An itinerant vendor may be required to post a bond, but the minimum amount may not be less than $500. For the purposes of this section, an itinerant vendor is a person who does not operate any place of business as defined in §3.286 of this title (relating to Seller's Responsibilities).(c) A permitted retailer who is or has been delinquent in the payment of state or local sales or use taxes may be required to post a bond or security in an amount that is equal to the greater of either $100,000 or four times the amount of the average monthly tax liability.(d) If the comptroller determines at any time that the amount of the bond on file is inadequate or if a permitted retailer is delinquent in the payment of any state or local sales or use taxes, the comptroller may require a new or additional bond to be posted.(e) Types of security.(1) Acceptable types of security:(A) irrevocable assignments of accounts in banks, savings and loan institutions, and credit unions, whose deposits are insured by an agency of the United States government;(B) cash (personal checks are acceptable);(C) bank letters of credit that are deemed by the comptroller to be sufficient in amount and secure;(D) United States Treasury bonds, readily convertible to cash;(E) surety bonds.(2) Unacceptable types of security:(A) corporate stocks and bonds;(B) personal guarantees.(f) An assignment of either a savings account or a certificate of deposit in an institution insured by an agency of the United States government must be irrevocable and must be executed on an assignment form approved by the comptroller.(g) A surety bond must be executed on a form approved by the comptroller and can be issued only by a surety company chartered or authorized to do business in the State of Texas. The bond shall constitute a new and separate obligation in the penal sum named therein for each calendar year or a portion thereof while the bond is in force. The bond must be executed by an attorney-in-fact appointed by the surety. The appointing instrument must be properly notarized and physically attached to the bond.(h) In the event of forfeiture, the comptroller will notify the holder of the security and demand payment. The comptroller will also notify the permitted retailer and demand that a new or additional bond or security for a specified amount be furnished within 10 days of the date of such notice. This notice shall become final at the expiration of 10 days. Failure to comply with the requirements of the notice within the 10-day period will result in the suspension of the retailer's tax permit.(i) Retailer's bond or security when ownership is changed.(1) When the legal structure of a business changes, the retailer who holds a tax permit must apply for a new permit, as provided by Tax Code, §151.201. Examples include, but are not limited to, a change from a sole ownership to a partnership, or a change from a partnership to a corporation.(2) When a retailer applies for a new permit because of a change in legal structure, the retailer may be required to post a bond or security as provided by the provisions of this section. The comptroller will review all available records of the retailer's history of payment of taxes.(3) If, after the review, it appears that the interests of the state will not be endangered by the new ownership, the comptroller may determine that no new or additional bond is required.(4) If, however, it appears that there has been a substantial change in ownership or that security is required to guarantee payment of taxes by the new entity, the comptroller may require security in accordance with the provisions of this section.",
            "sourceNote": "Source Note: The provisions of this §3.327 adopted to be effective December 13, 1977, 2 TexReg 4625; amended to be effective June 25, 1980, 5 TexReg 2272; amended to be effective December 21, 1983, 8 TexReg 5038; amended to be effective January 2, 1985, 9 TexReg 6370; amended to be effective September 18, 1990, 15 TexReg 5062; amended to be effective July 23, 2002, 27 TexReg 6537."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3823&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "3823",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.328",
                "label": "Optional Reporting Methods for Grocers and Other Vendors"
            },
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                "recordId": "32331",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Retail grocer defined. Persons who sell food at retail to be consumed off the premises where such food is sold, and who sell household supplies and nondurable household goods, but whose receipts from the sale of any other tangible personal property do not exceed 5.0% of their total receipts, are referred to in this section as retail grocers. Beer and wine are not food products or food, and therefore are tangible personal property. If the receipts from the sale of beer and/or wine exceed 5.0% of the total receipts, a grocer is disqualified from using the 15% reporting method (Method C).(b) Reporting methods.(1) First method (B).(A) Eligibility is restricted to the following classes of retailers:(i) any retail grocer;(ii) any vendor who maintains a separate grocery department with separate records which may be audited by the state, as applies to the grocery department only;(iii) any vendor whose taxable receipts from the sale of taxable items are less than 10% of his total receipts.(B) Procedure:(i) Add all invoices for merchandise purchased during the past calendar or fiscal year to obtain a total of those purchases.(ii) Add all invoices for exempt merchandise purchased during the past calendar or fiscal year to obtain a total of those purchases.(iii) To the total of exempt merchandise purchased in clause (ii) of this subparagraph, add the amount of taxable items purchased during the past calendar or fiscal year for which foodstamps were accepted from the purchaser in lieu of other consideration.(iv) Divide the total amount of exempt merchandise purchased (clause (ii) and (iii) of this subparagraph) by the amount of total purchases (clause (i) of this subparagraph) to obtain a percentage relationship.(v) Multiply the total receipts from all sales during the reporting period by the percentage thus obtained in clause (iv) of this subparagraph.(vi) Deduct the figure obtained by this multiplication as described in clause (v)  of this subparagraph from the total receipts for the reporting period. The remaining amount will be taxable receipts from the sale of taxable items. Any purchases upon which the use tax is due must be added to this amount.(C) This method of calculating taxable receipts from the sale of taxable items is available for reporting purposes only, and is subject to audits as the comptroller may require. If an audit indicates the actual tax liability differs from the tax reported and paid, then the comptroller will assess additional tax or grant a refund. No penalties or interest will be assessed on additional taxes disclosed to be due by audit unless the audit discloses fraud or willful evasion of the tax.(D) A retail grocer electing to use this method of reporting must maintain records which will substantiate purchases of exempt and taxable items as well as records which will substantiate total gross sales.(2) Second method (C).(A) Eligibility.(i) Restricted to retail grocers, as defined in subsection (a) of this section, whose gross receipts do not exceed $100,000 per calendar year.(ii) A person may use this method for one or more outlets which qualify, as set out in paragraph (1) of this subsection, only if all outlets under the same ownership qualify and combined gross receipts do not exceed $100,000.(B) Procedure.(i) Any retail grocer whose total receipts do not exceed $100,00 per calendar year may elect to report and pay the tax imposed by this chapter on the basis that taxable receipts from the sale of taxable items are equal to 15% of his total receipts.(ii) If a grocer qualifies and elects to use this method, any audits performed on his account will be limited to this method. No additional taxes shall be assessed or refunds or credits allowed because of any showing that the amount of tax paid to the state under this method of reporting differs from the amount that would have been paid under any other reporting method. This method cannot be substituted for another method previously elected, and it is prospective only in nature.(iii) Grocers electing to use this method of reporting are required to continue in the manner prescribed for a period of three years following such election providing the total receipts of such grocers continue to be $100,000 or less. At such time as the gross receipts of any grocer exceed $100,000, such grocer shall,  upon the next succeeding calendar month, be ineligible to use this optional method, and he must promptly inform the comptroller of this fact and cease to use that basis immediately. Any retail grocer who fails to inform the comptroller of his ineligibility loses the immunity for audit assessment otherwise provided and consequently is liable for all back taxes, penalty, and interest prescribed by this section and in accordance with the Tax Code, § 151.415.(3) Third method (E). Any retailer, including those mentioned in this section, who establishes an accounting system in which the tax collected pursuant to the Limited Sales Tax Act is commingled with the receipts from the sale of taxable items may determine the taxable receipts in the following manner.(A) He must subtract from his total receipts the receipts from any sales which are specifically exempt from or otherwise excluded from the tax imposed by this Act. The remainder consists of the receipts from the sale of taxable items plus the tax collected pursuant to the provisions of the Act.(B) If the retailer is subject to state tax only, the remainder must be divided by the state tax rate, expressed as a percentage. If the retailer is subject to both state and city tax, the remainder shall be divided by the combined state and city tax rate, expressed as a percentage.(i) If the retailer is subject to state, city, and Metropolitan Transit Authority taxes (MTA), the remainder must be divided by the combined state, city,  and MTA tax rate, expressed as a percentage.(ii) If the retailer is within a metropolitan transit authority but not subject to city tax, the remainder must be divided by the combined state and MTA tax rate, expressed as a percentage.(iii) If the retailer is subject to state, city, and county sales taxes, the remainder must be divided by the combined state, city, and county tax rates, expressed as a percentage.(iv) If the retailer is subject to state and county taxes but not subject to city tax, the remainder shall be divided by the combined state and county tax rates, expressed as a percentage. If the retailer is subject to state, city, MTA,  and county taxes, the remainder must be divided by the combined total of all taxes expressed as a percentage.(C) The answer resulting is the taxable gross receipts of the retailer for reporting purposes as prescribed by the Tax Code, §151.410, of the Limited Sales Tax Act.(D) The sole purpose of this third method is to permit the widest possible latitude in the internal accounting system of retailers and to avoid requiring certain retailers to remit to the state a tax computed upon a base which already includes the tax imposed by this Act. Nothing in this section may be construed to relieve the retailer of the obligation and duty of collecting the tax in the specific manner prescribed by the Tax Code, §151.053, and the bracket system provided therein. Neither may anything in this third method be construed to relieve the taxpayer of the obligation of paying tax, penalty, and interest upon delinquent taxes.(c) Purchase invoice records must be maintained for at least four years to verify a grocer's sales tax returns regardless of the method chosen for reporting purposes.",
            "sourceNote": "Source Note: The provisions of this §3.328 adopted to be effective May 10, 1978, 3 TexReg 1540; amended to be effective August 4, 1978, 3 TexReg 2477; amended to be effective November 29, 1978, 3 TexReg 3995; amended to be effective November 26, 1984, 9 TexReg 5836; amended to be effective August 11, 1987, 12 TexReg 2642."
        },
        {
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            "currentRecordId": "32331",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.329",
                "label": "Enterprise Projects, Enterprise Zones, and Defense Readjustment Zones"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Enterprise project--A qualified business designated by the Texas Department of Economic Development as an enterprise project under Government Code, Chapter 2303.406, for a five-year period.(2) Enterprise zone--An area of the state designated by the Department of Economic Development as an enterprise zone.(3) Equipment and machinery--Any machinery and equipment, including office furniture and equipment, used exclusively in an enterprise zone by a qualified business. These terms do not include building materials or motor vehicles.(4) Local governing body--A governing body of a city or county with an enterprise zone within its boundaries.(5) New permanent job--A job that meets the criteria of a new permanent job as defined by the Texas Department of Economic Development for enterprise projects.(6) One-time refund--The maximum amount that may be refunded from all claims during the life of a qualified business regardless of the amount of tax paid or jobs retained in an enterprise zone.(7) Period--The five-year period that the qualified business has been designated as a project unless the designation is revoked.(8) Qualified business--A person, including a corporation or other entity, that the Texas Department of Economic Development certifies has met the criteria required under the Texas Enterprise Zone Act.(9) Qualified employee--An employee who works for a qualified business and who performs at least 50% of his service for the business within the enterprise zone.(10) Retained job--An existing employment position of a qualified business that has provided employment to a qualified employee of at least 1,820 hours annually.(b) Refund for job retention.(1) Eligibility for a one-time refund of state sales and use tax. A business is eligible for the refund if:(A) the business is certified as a qualified business by a local governing body;(B) has operated in an enterprise zone's jurisdiction for at least three consecutive years before filing a claim;(C) has retained 10 or more jobs held by qualified employees during the year; and(D) has been certified as eligible for a refund to the Comptroller's Department by the Texas Department of Economic Development.(2) When to apply for a one-time refund. On or after September 1, 1991, a qualified business may apply for a refund of state sales and use tax immediately upon receipt of certification from the Texas Department of Economic Development.(3) Accumulated purchases. A qualified business may apply for and receive a refund of tax paid on equipment and machinery upon which the qualified business paid sales or use tax within four years of the date of application. The allowed refund is up to $500 per qualified employee retained, for a total of not more than $5,000. See §3.325 of this title (relating to Refunds, Interest, and Payments Under Protest) for information on the statute of limitations on refunds.(4) How to apply for a one-time state sales or use tax refund. After a qualified business has been certified as eligible for a refund by the local governing body sponsoring the enterprise zone and by the Texas Department of Economic Development, the qualified business may obtain a refund by applying directly to the Comptroller of Public Accounts. A refund request submitted to the comptroller must:(A) be in writing on forms provided by the comptroller;(B) be accompanied by copies of the certification by the Department of Economic Development; and(C) list each item purchased, the name of each seller, invoice or contract number, dollar amount of each purchase, and amount of state tax paid on each purchase.(5) The refund applies to state tax only. No city, county, transit, special purpose district tax, or any other local sales and use tax may be obtained from the state. Information regarding city tax refunds may be obtained from the city having an enterprise zone within its boundaries.(6) Manufacturers. A qualified business engaged in manufacturing that claims a sales tax refund under both §3.300 of this title (relating to Manufacturing; Custom Manufacturing; Fabricating; Processing) and this section on the same machinery and equipment, may not claim more than the total amount of state sales or use tax paid on the machinery and equipment.(7) Records. A qualified business must maintain records supporting the refund request which can be verified by audit. See §3.281 of this title (relating to Records Required; Information Required) and §3.282 of this title (relating to Auditing Taxpayer Records).(c) Enterprise projects.(1) An enterprise project qualifies for a refund of state sales and use tax of $2,000 for each job that has been retained or each new permanent job the enterprise project creates for a qualified employee during its designation as an enterprise project. A qualified business receiving its designation as an enterprise project after August 31, 1995, may not apply for a refund of taxes until after August 31, 1997. Not more than $8 million in state sales and use taxes may be refunded to enterprise projects designated during the biennium beginning September 1, 1995.(2) Only items of the type described in paragraph (3) of this subsection which are purchased by the enterprise project during the designated period or 90 days prior to its designation may be considered in determining the amount of refund available to the project.(3) Subject to the limitations of paragraphs (1), (2), (4), (5), and (6) of this subsection, a refund will be made based on state tax paid purchases of:(A) machinery or equipment for use in the enterprise zone in which the enterprise project is located;(B) building materials for use in constructing, rehabilitating, or remodeling a structure in the enterprise zone in which the enterprise project is located;(C) labor for remodeling, rehabilitating, or constructing a structure in an enterprise zone; and(D) electricity and natural gas purchased and consumed in the normal course of business in the enterprise zone.(4) An enterprise project is not entitled to a refund of any taxes paid by a contractor under a lump-sum contract unless the contractor has received designation as the enterprise project.(5) Sales and use taxes paid on taxable services are not eligible for refund. Taxes paid on materials purchased in conjunction with services will qualify for refund only when the charge for materials is separated from the charge for services and the amount of tax paid on materials is separated.(6) Subject to the limitations prescribed in this subparagraph, refunds will be paid directly to the project.(A) An enterprise project is eligible for a maximum refund of $250,000 in each state fiscal year.(i) The total amount refunded to an enterprise project may not exceed the total amount of state tax paid on qualifying purchases, or the amount determined by multiplying $250,000 by the number of state fiscal years during the designated period of the enterprise project, whichever is less. The refund may not exceed $2,000 for each job retained or each new job created for a qualified employee.(ii) An enterprise project that qualifies for a refund that exceeds $250,000 during a state fiscal year may carry the excess to a subsequent year subject to the $250,000 limitation in each year.(iii) Any carry-over or other eligible refunds must be applied for no later than the end of the next state fiscal year that follows the fiscal year in which the designation as an enterprise project expires or is removed by the Texas Department of Economic Development.(B) Claims for refund must be in writing and must indicate the period for which the refund is claimed and must reflect the written approval of the Texas Department of Economic Development with respect to the number of jobs retained or new permanent jobs created during the period. A claim for refund may be made annually or semiannually. Annual claims cover the period from September-August of each fiscal year. Semiannual claims cover the period from September-February and from March-August of each fiscal year.(7) For refunds applied for after August 31, 1991, the following conditions apply:(A) the qualified business must maintain the same level of employment of qualified employees for three years as existed at the time it qualified for a refund;(B) annually, the Texas Department of Economic Development shall certify that the correct level of employment has been maintained; and(C) the comptroller shall assess the qualified business that portion of the refund attributable to any decrease in employment, plus penalty and interest from the date of the refund.(8) An enterprise project must retain records substantiating each claim for refund. The records must be verifiable by audit and include copies of invoices showing the item purchased, the date of purchase, amount of purchase, the amount of tax paid, and the identity of the seller. The records must also show that the machinery and equipment and building materials purchased are for use within the zone. Employment records must also be kept verifying the number of new jobs created.(d) Defense economic readjustment zones.(1) Definitions applicable to subsection (d) only:(A) Defense readjustment project--A person designated by the Texas Department of Economic Development as a defense readjustment project under the Government Code, Title 10, Subtitle G, Chapter 2310.(B) Qualified business--A person certified as a qualified business under Government Code, §2310.302.(C) Qualified employee--A person who:(i) works for a qualified business; and(ii) performs at least 50% of the person's service for the business in the readjustment zone.(D) Readjustment zone--An area designated as a defense economic readjustment zone under the Government Code, Chapter 2310.(2) Tax refunds for defense readjustment projects.(A) A defense readjustment project is eligible for a refund in the amount provided by this section of the state sales and use taxes imposed by this chapter on purchases of:(i) equipment or machinery sold to a defense readjustment project for use in a readjustment zone;(ii) building materials sold to a defense readjustment project for use in remodeling, rehabilitating, or constructing a structure in a readjustment zone;(iii) labor for remodeling, rehabilitating, or constructing a structure, not qualifying as a new construction, by a defense readjustment project in a readjustment zone; and(iv) electricity and natural gas purchased and consumed in the normal course of business in the readjustment zone.(B) Subject to the limitations provided by subparagraph (C) of this paragraph, a defense readjustment project qualifies for a refund of taxes under this section of $2,500 for each new permanent job or job that has been retained by the defense readjustment project for a qualified employee.(C) The total amount of tax refund that a defense readjustment project may apply for in a state fiscal year may not exceed $250,000. If a defense readjustment project qualifies in a state fiscal year for a refund of taxes in an amount in excess of the limitation provided by this subsection, it may apply for a refund of those taxes in a subsequent year, subject to the $250,000 limitation for each year. However, a defense readjustment project may not apply for a refund under this section after the end of the state fiscal year immediately following the state fiscal year in which the defense readjustment project's designation as a defense readjustment project expires or is removed. The total amount that may be refunded to a defense readjustment project under this section may not exceed the amount determined by multiplying $250,000 by the number of state fiscal years during which the defense readjustment project created one or more jobs for qualified employees.(D) Only qualified businesses that have been certified as eligible for a tax refund under this section by the Texas Department of Economic Development to the comptroller and the Legislative Budget Board are entitled to the tax refund.(E) To receive a state tax refund under this section, a defense readjustment project must apply to the comptroller for the refund. A refund request submitted to the comptroller must:(i) be in writing in a format prescribed by the comptroller;(ii) be accompanied by copies of the certification by the Texas Department of Economic Development;(iii) list each qualifying item purchased, the name of each seller, invoice or contract number, dollar amount of each purchase, and amount of state tax paid on each purchase.(F) A defense readjustment project applying for a refund of state taxes under this subsection must retain records substantiating each claim for refund. The records must be verifiable by audit and include copies of invoices showing the item purchased, the date of purchase, amount of purchase, the amount of tax paid, and the identity of the seller. The records must also show that the qualifying taxable items purchased were for use within the zone. Employment records must also be kept verifying the number of new jobs created or retained.(G) For possible local tax abatements, see the Government Code, §2310.405.",
            "sourceNote": "Source Note: The provisions of this §3.329 adopted to be effective December 6, 1996, 21 TexReg 11505; amended to be effective May 10, 1998, 23 TexReg 4311."
        },
        {
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            "currentRecordId": "224588",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.330",
                "label": "Data Processing Services"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Data processing service--the computerized entry, retrieval, search, compilation, manipulation, or storage of data or information. (A) Data processing service includes:(i) word processing; (ii) payroll and business accounting data production; (iii) the performance of a totalizator service with the use of computational equipment required by Occupations Code, Subtitle A-1, Title 13, (Texas Racing Act); and(iv) the use of a computer or computer time for data processing whether the processing is performed by the provider of the computer or computer time or by the purchaser or other beneficiary of the service.(B) Data processing services do not include:(i) Internet access service as defined by Tax Code, §151.00394 (Internet access service);(ii) the transcription of medical dictation by a medical transcriptionist;(iii) the display of a classified advertisement, banner advertisement, vertical advertisement, or link on an Internet website owned by another person;(iv) services exclusively to encrypt electronic payment information for acceptance onto a payment card network that allows a person to accept a specific brand of debit or credit card by routing information and data to settle an electronic payment transaction, to comply with standards set by the Payment Card Industry Security Standards Council; or(v) settling of an electronic payment transaction by:(I) a downstream payment processor or point of sale payment processor or point of sale payment processor that routes electronic payment information to an entity described in subclause (II) or (III) of this clause;(II) a federally insured financial institution, as defined by Finance Code, §201.101 (Definitions), that is organized under the laws of Texas, another state, or the United States, or an affiliate of the institution;(III) a payment card network that allows a person to accept a specific brand of debit or credit card by routing information and data to settle an electronic payment transaction; (IV) a person who has entered into a sponsorship agreement with an entity described in subclause (II) of this clause for the purpose of processing that entity's electronic payment transactions through a payment card network; or(V) a person who is engaged in the business of money transmission and required to obtain a license under Finance Code, §152.101 (Money Transmission License Required).(C) Under its exclusive jurisdiction to interpret taxable services, the comptroller excludes from the definition of \"data processing service,\" data processing that is sold for a single charge with another service if the data processing service does not have a separate value, and the data processing service is ancillary to the other service. The burden is on the taxpayer to demonstrate that the data processing service does not have a separate value and is ancillary to the other service.(i) If the data processing service is sold for a single charge with another service that does not have a separate value, and the other service is ancillary to the data processing service, the entire charge will be taxable as a data processing service. (ii) If the data processing service is sold for a single charge with another service that has a separate value, subsection (e) of this section applies. (iii) In determining whether the data processing service and the other service have separate values, the comptroller will consider whether the services are distinct and identifiable and whether each service is of a type that is commonly provided on a stand-alone basis or commonly provided as an additional service for a greater single charge. (iv) In determining whether the data processing service is ancillary to another service, or conversely, whether the other service is ancillary to the data processing service, the comptroller may consider the extent to which the service provider exercises discretion or judgment in individual applications of the processed data based on knowledge of the physical sciences, accounting principles, law, or other fields of study. The routine or repetitive manipulation of data by the seller is a factor suggesting that the data processing activity is not ancillary to another service and should be taxable as a data processing service. The manipulation of data that depends on the external knowledge and discretionary judgment of the service provider in individual applications suggests that the data processing activity is ancillary to another service and should not be taxable as a data processing service. The provider's skill, experience, or expertise, in processing data or information is not a factor. Other factors may be considered, and the weight of the factors may vary from case to case. The evaluation is based on what the service provider is doing, not on what the customer wants. (2) Downstream payment processor--A payment processor that acts as an intermediary between a consumer-facing entity that has incurred an outstanding money transmission obligation to a consumer, and the consumer's designated recipient. (3) Point of sale payment processor--A payment processor that receives funds from a consumer on behalf of a consumer-facing entity that either sells goods or services other than money services or accepts charitable donations. (4) Settling of an electronic payment transaction--The authorization, clearing, or funding of a payment made by credit card, debit card, gift card, stored value card, electronic check, virtual currency, loyalty program currency such as points or miles, or a similar method. The term does not include charges by a marketplace provider, as that term is defined by Tax Code, §151.0242 (Marketplace Providers and Marketplace Sellers).(b) Examples of services that are and are not taxable data processing services.(1) Payroll services, such as maintaining records of employee work time, computing and preparing payroll checks, filing payroll tax returns, and completing pre-printed employee-related forms such as W-2s, are taxable data processing services because they involve the routine and repeated simultaneous application of the same process to different data. The service provider's skill, experience, or expertise with payroll documents is not determinative.(2) The production of business accounting data, such as inventory reports, is a taxable data processing service because it involves the routine and repeated simultaneous application of the same process to different data. The service provider's skill, experience, or expertise with business reports is not determinative.(3) The preparation of financial statements kept in accordance with generally accepted accounting principles, is not a taxable data processing service, even though it has elements of data processing, because the categorization and characterization of the data is variable and depends upon the discretion and certified opinion of an accounting professional. For example, the use of a computer by a certified accounting firm, enrolled agent, or bookkeeping firm to produce a financial report or to prepare federal income tax or state franchise or sales tax returns is not taxable data processing services.  (4) The insertion of data into form title or loan documents for a client is taxable data processing because it involves the repeated application of the same process to different data. The service provider's skill or experience with title or loan documents is not determinative. The preparation of a title opinion is not included in taxable data processing, even though it has elements of data processing, because the result is solitary and depends upon the opinion or skills of a legal professional.(5) Effective October 1, 2025, marketplace provider services may be included in taxable data processing services when they involve the computerized entry, retrieval, search, compilation, manipulation, or storage of data or information provided by the purchaser or the purchaser's designee. For example, services provided by a marketplace provider to its marketplace seller that store product listings and photographs, maintain records of transactions, and compile analytics are taxable data processing services. (6) Internet hosting, as defined by Tax Code, §151.108 (Internet Hosting), is a taxable data processing service when the user stores data on the service provider's hardware, or processes data on software that is owned, licensed, or leased by the user or provider. An example is the provision of servers and operating systems that are used by a customer to store software applications and content that can be accessed by the customer's customers.(7) Streaming video subscriptions are taxable as a cable television service but not as data processing services. See also §3.313 of this title (relating to Cable Television Service and Bundle Cable Service).   (8) Streaming video game subscriptions are taxable as an amusement service but not as data processing services. See also §3.298 of this title (relating to Amusement Services). (9) The compilation of information that the service provider acquires from unrelated third parties through nontaxable opinion polls and surveys as described by §3.342 of this title (relating to Information Services) is not a taxable data processing service if the data processing is ancillary to the main service of data acquisition and the data processing does not have a separate value. However, if the service provider acquires and compiles data from the customer or the customer's designees, and the service provider's expertise is in managing the data, such as in inventory management, the main service is data processing and the service is taxable. (10) The compilation of nontaxable information primarily derived from the service provider's laboratory, medical, or exploratory testing or experimentation or any similar method of direct scientific observation of physical phenomena as described by §3.342 of this title (relating to Information Services) is not a taxable data processing service if the data processing is ancillary to the main service and the data processing does not have a separate value. Examples may be geophysical surveys, polygraph tests, and the recording and tracking of vital signs in medical treatment. (11) Data migration services that transfer data from one storage device to another storage device is taxable data processing.  (12) Website creation, repair, and maintenance are taxable data processing services when they involve the storage, manipulation, compilation, and entry of data. However, simply developing a blueprint or plan for a website is not data processing services.    (c) Imposition of tax, permits.(1) State sales and use tax and any applicable local sales and use tax are imposed on each sale or use of a data processing service in Texas. (2) Except for small remote sellers described in §3.286(b)(2)(B) of this title (relating to Seller's and Purchaser's Responsibilities), a seller of data processing services must obtain a Texas sales and use tax permit and collect and remit tax on charges for data processing services, or accept properly completed resale, exemption, or direct pay permit certificates in lieu of collecting tax. See §3.285 of this title (relating to Resale Certificate; Sales for Resale); §3.287 of this title (relating to Exemption Certificates); §3.288 of this title (relating to Direct Payment Procedures and Qualifications).(3) A charge for data processing services is taxable regardless of the ownership of the computer or whether the data is provided by the customer or the customer's authorized designee.(4) Twenty percent of the total amount charged for data processing services is exempted from tax. If the data processing service is also taxable as another type of taxable service other than an information service, the twenty percent exemption does not apply.(d) Resale certificates. (1) Providers of data processing services may issue a resale certificate in lieu of tax to suppliers of tangible personal property only if care, custody, and control of the property is transferred to the client. For example, a service provider purchases a Universal Serial Bus (USB) drive to transfer the results of data processing services to customers. The USB drive is transferred to the customer, and the customer owns and uses the USB drive to review the results of the data processing service. The service provider may purchase the USB drive tax free by issuing a resale certificate. Tax is due on the total amount charged the customer, including amounts for the USB drive and for the services. (2) A resale certificate may be issued for a service if the buyer intends to transfer the service as an integral part of taxable services. A service will be considered an integral part of a taxable service if the service purchased is essential to the performance of the taxable service and without which the taxable service could not be rendered. (3) A resale certificate may be issued for a taxable service if the buyer intends to incorporate the service into tangible personal property which will be resold. If the entire service is not incorporated into the tangible personal property, it will be presumed the service is subject to tax and the service will only be exempt to the extent the buyer can establish the portion of the service actually incorporated into the tangible personal property. If the buyer does not intend to incorporate the entire service into the tangible personal property, no resale certificate may be issued, but credit may be claimed at the time of sale of the tangible personal property to the extent the service was actually incorporated into the tangible personal property.  (e) Nontaxable related services. (1) A service will be considered as a nontaxable related service if: (A) it is neither a data processing service, nor a service taxed under other provisions of the Tax Code, Chapter 151; (B) each of the services provided are of a type which are commonly provided on a stand-alone basis; and (C) the performance of the service is distinct and identifiable. Examples of such a service would be consultation, development of and preparation of feasibility studies, design and development, or training. (2) Where nontaxable related services and taxable services are sold or purchased for a single charge and the portion relating to taxable services represents more than 5.0% of the total charge, the total charge is presumed to be taxable. The presumption may be overcome by the data processing service provider at the time the transaction occurs by separately stating to the customer a reasonable charge for the taxable services. However, if the charge for the taxable portion of the services is not separately stated at the time of the transaction, the service provider or the purchaser may later establish for the comptroller, through documentary evidence, the percentage of the total charge that relates to nontaxable related services. The service provider's books must support the apportionment between exempt and nonexempt activities based on the cost of providing the service or on a comparison to the normal charge for each service when provided alone. If the charge for exempt services is unreasonable when the overall transaction is reviewed considering the cost of providing the service or a comparable charge made in the industry for each service, the comptroller will adjust the charges and assess additional tax, penalty, and interest on the taxable services. (3) Charges for services or expenses directly related to and incurred while providing the taxable service are taxable and may not be separated for the purpose of excluding these charges from the tax base. Examples would be charges for meals, telephone calls, hotel rooms, or airplane tickets. (f) If both the data processing service provider and the customer are located in Texas, Texas tax is due. (g) Determining the incidence of the tax. (1) With respect to a taxable service, \"use\" means the derivation in Texas of direct or indirect benefit from the service. (2) The sale of a data processing service that is delivered in Texas is presumed to be a sale for storage, use, or consumption in Texas until the contrary is established. (3) A data processing service performed in Texas is subject to Texas sales tax unless an exemption applies. (A) A data processing service performed in Texas for use entirely outside of Texas is exempt from sales tax.(B) A data processing service performed in Texas for use both within and outside of Texas is exempt to the extent that the service is used outside Texas.(4) A data processing service performed outside of Texas is subject to Texas use tax to the extent that the service is for use in Texas, unless an exemption applies. (5) A purchaser of a data processing service performed outside of Texas for use in Texas may claim a credit for a similar tax paid in another state if that state provides a similar credit for a taxpayer in Texas. (6) A purchaser asserting the use of a data processing service at its business locations in multiple states may issue to the service provider a form promulgated by the comptroller, or a substantially similar document that asserts the purchaser's concurrent multistate business use and represents that the purchaser will report and pay the state and local tax on the portion that is taxable and is not exempt. (A) The multistate purchaser may use a reasonable and consistent method supported by its business records to allocate the service between its business locations.(B) A service provider that accepts a multistate use certificate in good faith is relieved of responsibility for collecting and remitting Texas state and local sales and use taxes on transactions subject to the certificate. (h) Local taxes. (1) Local sales tax is due in a local jurisdiction where the sale is consummated. The sale may be consummated at a place of business of the seller where the order is received, a place of business of the seller where the order is fulfilled, or at the location to which the service is delivered. See §3.334 of this title (relating to Local Sales and Use Taxes). (2) Local use tax may also be due in a local jurisdiction where a direct or indirect benefit from the service is derived if the 2.0% local tax cap has not been exceeded. See also §3.334 of this title. (3) An in-state customer purchasing data processing services for the benefit of locations in more than one local taxing entity is responsible for issuing to the data processing service provider an exemption certificate claiming a multi-city benefit and for determining the extent of benefit for each entity. The local use tax for each entity must be reported, allocated, and paid by the customer. A data processing service provider that accepts in good faith an exemption certificate claiming a multi-city benefit is relieved of responsibility for collecting and remitting local tax on transactions to which the certificate relates. (i) Use tax. The customer is responsible to report and pay use tax if the service provider:(1) is not required to collect and remit the sales or use tax; or(2) does not collect the correct amount of sales or use tax.",
            "sourceNote": "Source Note: The provisions of this §3.330 adopted\r\nto be effective June 16, 1988, 13 TexReg 2753; amended to be effective\r\nNovember 13, 1989, 14 TexReg 5786; amended to be effective February\r\n28, 1991, 16 TexReg 987; amended to be effective March 23, 1995, 20\r\nTexReg 1749; amended to be effective August 24, 2000, 25 TexReg 8048;\r\namended to be effective April 2, 2025, 50 TexReg 2226."
        },
        {
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            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.331",
                "label": "Transfers of Common Interests in Tangible Personal Property; Intercorporate Services"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19778&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19778",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Transfer of common interests.(1) Sales or use tax is not due when an interest in tangible personal property is sold to a purchaser who, either before or after the sale, owns a joint or undivided interest in the tangible personal property with the seller.(2) In order for the sale to be exempt, the following requirements must be met.(A) The seller must have paid sales or use tax on the tangible personal property when it was purchased.(B) The sale must be made pursuant to the terms of a good faith contractual relationship between the seller and the purchaser. Good faith contractual relationship means a legal relationship established between two or more persons created for considerations other than the avoidance of the limited sales and use tax.(C) It is necessary that the purchaser, either before or after the sale, own a joint or undivided interest in the property with the seller. The joint ownership transfer exemption does not apply to sales between related corporations or other entities if the only joint ownership is the ultimate ownership of the corporation stock.(b) Research and development ventures. Sales and use tax is not due on tangible personal property sold by a joint research and development venture as defined by 15 United States Code §4301 to a participating entity if the tangible personal property is created, developed, or substantially modified by or for the joint research and development venture.(c) Intercorporate services.(1) Sales or use tax is not due on charges for taxable services if the seller and purchaser are affiliated entities that are members of an affiliated group under 26 U.S.C. §1504, and if both entities report their income to the Internal Revenue Service on a single consolidated income tax return with at least one corporation that is a member of the affiliated group for the tax year in which the taxable service is provided. If either the seller or the purchaser elects to file a separate federal income tax return even though it is eligible to file a consolidated federal income tax return with other members of the affiliated group, the exemption provided by this subsection does not apply.(2) Sales or use tax is not due on charges for taxable services if both the seller and purchaser are entities classified as members of an affiliated group under 26 U.S.C. §1504, but either the seller or purchaser or both cannot file a consolidated federal income tax return because of the exclusions provided by 26 U.S.C. §1504(b).(3) The exemption provided by this subsection does not apply to sales of tangible personal property between affiliated corporations or sales of services that were taxable before September 2, 1987. The following services were taxable before September 2, 1987:(A) amusement services;(B) cable television services;(C) personal services;(D) motor vehicle parking and storage;(E) the repair, remodeling, maintenance, or restoration of tangible personal property except maintenance of computer software and those services excluded from tax by Tax Code, §151.0101(a)(5); and(F) telecommunications services.(4) A seller of a taxable service must pay sales or use tax on its purchase of tangible personal property that the seller transfers as an integral part of the taxable service if the sale of the taxable service is exempt from sales tax under this subsection. The seller may not claim a sale for resale exemption.(5) A seller of a taxable service must pay sales or use tax on its purchase of a taxable service that the seller transfers as an integral part of the taxable service sold if the sale of the taxable service is exempt from sales tax under this subsection. The seller may not claim a sale for resale exemption.(6) When a contract contains charges for taxable items and charges for services that qualify for exemption under this subsection, the total charge will be taxable unless the charge for taxable items is separately stated to the customer.",
            "sourceNote": "Source Note: The provisions of this §3.331 adopted to be effective March 18, 1988, 13 TexReg 1146; amended to be effective February 10, 1993, 18 TexReg 590; amended to be effective June 1, 2004, 29 TexReg 5415."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19778&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19778",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.332",
                "label": "Drilling Equipment"
            },
            "nextRule": {
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                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Drilling equipment built for exclusive use outside Texas. The Texas Tax Code,  §151.324(b) exempts the receipts from a sale, lease, or rental of, or the storage, use, or other consumption in this state of drilling equipment used in the exploration for or production of oil, gas, sulphur, or other minerals when such equipment is built for exclusive use outside the boundaries of the State of Texas and is removed forthwith from the state upon completion.(b) Offshore exploration or production. The Texas Tax Code, §151.324(a)(1) exempts the receipts from a sale, lease, or rental in this state of casing, drill pipe, tubing, and other pipe to be used in exploration for or production of oil, gas, sulphur, and other minerals offshore outside the territorial limits of the state from the tax. The Texas Tax Code, §151.324(a)(2), (c), and (d) extends the above exemption to all tangible personal property which is to be used exclusively in the exploration for or production of oil, gas, sulphur, or other minerals offshore and outside the territorial limits of the state. Such tangible personal property may be delivered to the purchaser or lessee in this state for removal by his own facilities or by any other means beyond the territorial limits of the state, or may be shipped to any place in the state for further assembly or fabrication, and the receipts from a sale, lease, or rental of such property made upon completion of the assembly or fabrication are exempt if the property is forthwith removed beyond the territorial limits of the state.(c) Boundaries. Boundaries of the state includes all territory within the exterior limits of the State of Texas. The gulfward boundary of Texas is confirmed at three marine leagues from the coast. Removal from state \"forthwith' means removal from the state within a reasonable period of time from the transfer of possession of the property providing that there is no use or consumption of the property within the state. If at the time of sale, delivery, assembly, or fabrication, it is not known whether the property will be used outside the state, then the taxes must be paid to the vendor or lessor.(d) Proof of exemption. Where such property as may be exempted under this section is delivered in Texas to the purchaser or his designated agent, such property shall be presumed to be taxable unless the retailer obtains an exemption certificate from the purchaser stating the property is for exclusive use outside the boundaries of the state or offshore outside the territorial limits of state.",
            "sourceNote": "Source Note: The provisions of this §3.332 adopted to be effective January 1, 1976."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=172885&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "172885",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.333",
                "label": "Security Services"
            },
            "nextRule": {
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            "ruleBody": "(a) Security service. Any service for which a license is required under Occupations Code, §1702.101 or §1702.102, Private Security Chapter, and includes any service provided within the scope of the required license as an investigations company, guard company, alarm systems company, armored car company, courier company, guard dog company, security services contractor, private security officer, detective service, private investigator, locksmith company, or private security consultant company.(b) Permit required. A provider of security services must obtain a Texas sales and use tax permit and collect tax on the total amount charged for security services, or accept a properly completed resale or exemption certificate in lieu of collecting tax. See §3.285 of this title (relating to Resale Certificate; Sales for Resale) and §3.287 of this title (relating to Exemption Certificates).(c) Employees. Security services performed by an employee for his employer in the regular course of business, within the scope of the employee's duties, and for which the employee is paid his regular wages or salary are not taxable.(d) Temporary security service personnel. A security service is taxable even when provided on a temporary basis unless:(1) the security service is performed by a temporary help service for an employer to supplement the employer's existing security service personnel on a temporary basis;(2) the security service is normally performed by the employer's own employees;(3) the employer provides all supplies and equipment necessary; and(4) the temporary employee is under the direct or general supervision of the employer to whom the security service is furnished.(e) Security services provided in Texas. Charges for providing security service to property or persons located in Texas are subject to Texas sales tax. Unless a customer claims multistate benefit as provided in subsection (p) of this section, if any portion of the security service originates in Texas, Texas sales tax is due even though a portion of the service may be performed in another state. Credit will not be allowed against Texas sales tax for use tax imposed by another state when the service benefit location is in Texas. Detective and investigation services of corporate locations or premises located outside Texas are not taxable if the investigation is unrelated to any investigation of corporate locations in Texas.(f) Credit for security services originating in another state. If a security service originates in another state and sales tax is legally paid on that service in the other state, credit against the Texas use tax will be allowed. See §3.338 of this title (relating to Multistate Tax Credits and Allowance of Credit for Tax Paid to Suppliers).(g) Resale certificates.(1) A seller of a security service may issue a resale certificate in lieu of tax to a supplier of tangible personal property only if care, custody, and control of the property will be transferred to the service provider's client. For example, a security service provider purchases a DVD to transfer the results of an investigation to a customer. The DVD is transferred to the customer, and the customer owns and uses the DVD to review the results of the security service. The security service provider may purchase the DVD tax free by issuing a resale certificate. Tax is due on the total amount charged the customer, including amounts for the DVD and for the services.(2) A resale certificate may be issued for a taxable service if the buyer intends to transfer the service as an integral part of a taxable service. A service will be considered an integral part of a taxable service if the service purchased is essential to the performance of the taxable service and without which the taxable service could not be rendered.(3) A resale certificate may be issued for a taxable service if the buyer intends to incorporate the service into tangible personal property that will be resold. If the entire service is not incorporated into the tangible personal property, it will be presumed the service is subject to tax and the service will be exempt only to the extent the buyer can establish the portion of the service actually incorporated into the tangible personal property. If the buyer does not intend to incorporate the entire service into the tangible personal property, no resale certificate may be issued, but credit may be claimed at the time of sale of the tangible personal property to the extent the service was actually incorporated into the tangible personal property.(h) Sales price, unrelated services.(1) Providers of taxable security services must collect state and all applicable local sales tax on the total sales price of the services provided unless they receive a properly completed resale or exemption certificate from the purchaser.(2) The total sales price includes charges for services or expenses directly related to and incurred while providing a taxable security service, even if billed separately. Examples include charges for meals, telephone calls, hotel rooms, or airplane tickets.(3) Where nontaxable unrelated services and taxable services are sold or purchased for a single charge and the portion relating to taxable services represents more than 5.0% of the total charge, the total charge is presumed to be taxable. The service provider may overcome the presumption by separately stating to the customer at the time the transaction occurs a reasonable charge for the taxable services. However, if the charge for the taxable portion of the services is not separately stated at the time of the transaction, the service provider or the purchaser may later establish for the comptroller, through documentary evidence, the percentage of the total charge that relates to nontaxable unrelated services. The service provider's books must support the apportionment between taxable and nontaxable activities based on the cost of providing the service or on a comparison to the normal charge for each service if provided alone. If the charge for nontaxable services is unreasonable when the overall transaction is reviewed, the comptroller will adjust the charges and assess additional tax, penalty, and interest on the taxable services.(4) Charges for services or expenses directly related to and incurred while providing a taxable service are taxable and may not be separated for the purpose of excluding those charges from the tax base. Examples include charges for meals, telephone calls, hotel rooms, or airplane tickets.(5) A service will be considered unrelated, and thus not part of the sales price of a taxable security service, if:(A) it is not a security service, nor a service taxable under other provisions of Tax Code, Chapter 151;(B) it is of a type that is commonly provided on a stand-alone basis; and(C) the performance of the unrelated service is distinct and identifiable. Examples of unrelated services that may be excluded from the tax base include a service for which no license is required, such as coin-wrapping services by a courier or armored car service, or providing court testimony, training, or filing legal documents.(i) Excepted persons. Persons excepted from the licensing requirements of the Private Security Act are not providing security services subject to the sales tax because they are not required to hold a license to provide their services. Examples include, but are not limited to:(1) persons employed exclusively and regularly by one employer in connection with the affairs of the employer;(2) officers or employees of the United States, this state, or a political subdivision of either, while engaged in the performance of official duties;(3) persons who have full-time employment as peace officers as defined by Code of Criminal Procedure, Article 2.12, and who satisfy the requirements of Occupations Code, §1702.322, and who receive compensation for private employment on an individual or an independent contractor basis as patrolmen, guards, or watchmen;(4) persons who provide telematics services (a service that may rely on global positioning system satellite data to fix the exact location of a vehicle) as defined in Occupations Code, §1702.332(a), and who have satisfied exemption requirements as set out in Occupations Code, §1702.332(c);(5) persons who sell burglar alarm or other protective devices exclusively over-the-counter, by mail order or by e-commerce;(6) persons who sell or install automobile burglar alarm devices;(7) persons set out in Occupations Code, §1702.331(b), who provide personal emergency response systems as defined in Occupations Code, §1702.331(a), that are not part of a combination of alarm systems that include burglar alarm or fire alarm; and(8) a person or firm licensed as an accountant or accounting firm under Occupations Code, Chapter 901, an owner of an accounting firm, or an employee of an accountant or accounting firm.(j) A charge for using a slim-jim or similar device to open a locked vehicle is not taxable, even when the service provider is a licensed locksmith.(k) Taxable under other provisions. Persons whose activities are not defined as security services may nonetheless be performing a service that is taxable under other provisions. Examples include, but are not limited to:(1) persons engaged in the business of obtaining and furnishing credit information. See §3.343 of this title (relating to Credit Reporting Services);(2) insurance adjusters, insurance investigators, and/or claims processors performing services in connection with a policy of insurance. Although not taxable as security services, some insurance services are subject to sales and use tax. See §3.355 of this title (relating to Insurance Services);(3) persons who install electronic access control devices, as that term is defined in Occupations Code, §1702.002(a)(6-a) in existing nonresidential improvements to real property. Although not taxable as a security service, the installation of such a device in an existing nonresidential real property improvement may be taxable as nonresidential real property repair, remodeling or restoration. See §3.357 of this title (relating to Nonresidential Real Property Repair, Remodeling, and Restoration; Real Property Maintenance).(l) Undercover agents. The fact that a security service provider may be performing his services by furnishing an undercover agent will not affect the applicability of sales tax to the service transaction between the employer and the consumer. The employer of the undercover agent is considered to be providing security services to a client, and that transaction is subject to the sales tax.(m) Local taxes. Local sales and use taxes (city, county, transit authority, and special purpose district) apply to services in the same way as they apply to tangible personal property. A service provider must collect local sales taxes if the service provider's place of business is within a local taxing jurisdiction, even if the service is actually provided at a location outside that jurisdiction. If the place of business is outside such a jurisdiction but the service is provided to a customer within a local taxing jurisdiction, local use taxes apply and the service provider is responsible for collecting them. For information on the collection and reporting responsibilities of providers and purchasers of taxable services, see §3.334 of this title (relating to Local Sales and Use Taxes).(n) Use tax. If a seller of a service is not engaged in business in Texas or in a specific local taxing jurisdiction and is not required to collect Texas state or local tax, it is the Texas customer's responsibility to report the use tax directly to this office.(o) Service benefit location. If the security service provider is in Texas and the customer is located only in Texas, Texas tax is due, and must be collected by the security service provider.(p) Service benefit location--multistate customer.(1) To the extent a security service is provided for a separate, identifiable segment of a customer's business, the service is presumed to benefit the location where that part of the customer's business is conducted.(2) To the extent the use of the service cannot be assigned to an identifiable segment of a customer's business, the service is presumed to be used to support the administration or operation of the customer's business generally. The security service is presumed to be used at the customer's principal place of business. The principal place of business means the place from which the trade or business is directed or managed.(3) If a multistate customer claims that part of the security service benefits the customer's business at locations both within and outside the state, the customer must provide the security service provider with an exemption certificate in lieu of tax. It will then be the customer's responsibility to report the tax to this office for that portion of the security service that benefits Texas locations. The security service will not be taxable to the extent the customer can establish benefit outside Texas. A multistate customer may use any reasonable method for allocation that is supported by business records.(4) A security service provider who accepts an exemption certificate in good faith is relieved of responsibility for collecting and remitting tax on transactions to which the certificate relates.",
            "sourceNote": "Source Note: The provisions of this §3.333 adopted to be effective March 24, 1988, 13 TexReg 1221; amended to be effective November 13, 1989, 14 TexReg 5786; amended to be effective November 26, 1993, 19 TexReg 84; amended to be effective March 23, 1995, 20 TexReg 1749; amended to be effective February 24, 2010, 35 TexReg 1468; amended to be effective February 21, 2011, 35 TexReg 1159; amended to be effective June 25, 2015, 40 TexReg 3999."
        },
        {
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            "currentRecordId": "219470",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
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            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.334",
                "label": "Local Sales and Use Taxes"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Cable system--The system through which a cable service provider delivers cable television or bundled cable service, as those terms are defined in §3.313 of this title (relating to Cable Television Service and Bundled Cable Service).(2) City--An incorporated city, municipality, town, or village.(3) City sales and use tax--The tax authorized under Tax Code, §321.101(a), including the additional municipal sales and use tax authorized under Tax Code, §321.101(b), the municipal sales and use tax for street maintenance authorized under Tax Code, §327.003, the Type A Development Corporation sales and use tax authorized under Local Government Code, §504.251, the Type B Development Corporation sales and use tax authorized under Local Government Code, §505.251, a sports and community venue project sales and use tax adopted by a city under Local Government Code, §334.081, and a municipal development corporation sales and use tax adopted by a city under Local Government Code, §379A.081. The term does not include the fire control, prevention, and emergency medical services district sales and use tax authorized under Tax Code, §321.106, or the municipal crime control and prevention district sales and use tax authorized under Tax Code, §321.108.(4) Comptroller's website--The comptroller's website concerning local taxes located at: https://comptroller.texas.gov/taxes/sales/.  (5) County sales and use tax--The tax authorized under Tax Code, §323.101, including a sports and community venue project sales and use tax adopted by a county under Local Government Code, §334.081. The term does not include the county health services sales and use tax authorized under Tax Code, §324.021, the county landfill and criminal detention center sales and use tax authorized under Tax Code, §325.021, or the crime control and prevention district sales and use tax authorized under Tax Code, §323.105.(6) Drop shipment--A transaction in which an order is received by a seller at one location, but the item purchased is shipped by the seller from another location, or is shipped by the seller's third-party supplier, directly to a location designated by the purchaser.(7) Engaged in business--This term has the meaning given in §3.286 of this title (relating to Seller's and Purchaser's Responsibilities).(8) Extraterritorial jurisdiction-An unincorporated area that is contiguous to the corporate boundaries of a city as defined in Local Government Code, §42.021.(9) Fulfill--To complete an order by transferring possession of a taxable item to a purchaser, or to ship or deliver a taxable item to a location designated by the purchaser. The term does not include receiving or tracking an order, determining shipping costs, managing inventory, or other activities that do not involve the transfer, shipment, or delivery of a taxable item to the purchaser or a location designated by the purchaser.(10) Independently owned and operated business--A self-controlling entity that is not a subsidiary of another entity or otherwise subject to control by another entity, and that is not publicly traded.(11) Itinerant vendor--A seller who travels to various locations for the purpose of receiving orders and making sales of taxable items and who has no place of business in this state. A person who sells items through vending machines is also an itinerant vendor. A salesperson that operates out of a place of business in this state is not an itinerant vendor.(12) Kiosk--A small stand-alone area or structure:(A) that is used solely to display merchandise or to submit orders for taxable items from a data entry device, or both;(B) that is located entirely within a location that is a place of business of another seller, such as a department store or shopping mall; and(C) at which taxable items are not available for immediate delivery to a purchaser.(13) Local taxes--Sales and use taxes imposed by any local taxing jurisdiction.(14) Local taxing jurisdiction--Any of the following:(A) a city that imposes sales and use tax as provided under paragraph (3) of this subsection;(B) a county that imposes sales and use tax as provided under paragraph (5) of this subsection;(C) a special purpose district created under the Special District Local Laws Code or other provisions of Texas law that is authorized to impose sales and use tax by the Tax Code or other provisions of Texas law and as governed by the provisions of Tax Code, Chapters 321 or 323 and other provisions of Texas law; or(D) a transit authority that imposes sales and use tax as authorized by Transportation Code, Chapters, 451, 452, 453, 457, or 460 and governed by the provisions of Tax Code, Chapter, 322.(15) Marketplace provider--This term has the meaning given in §3.286 of this title.(16) Micro-business--A legal entity, including a corporation, partnership, or sole proprietorship, that:(A) is formed for the purpose of making a profit;(B) is independently owned and operated; and(C) has not more than 20 employees.(17) Order placed in person--An order placed by a purchaser with the seller while physically present at the seller's place of business regardless of how the seller subsequently enters the order.(18) Place of business of the seller - general definition--A place of business of the seller must be an established outlet, office, or location operated by a seller for the purpose of receiving orders for taxable items from persons other than employees, independent contractors, and natural persons affiliated with the seller. An \"established outlet, office, or location\" usually requires staffing by one or more sales personnel. The term does not include a computer server, Internet protocol address, domain name, website, or software application. The \"purpose\" element of the definition may be established by proof that the sales personnel of the seller receive three or more orders for taxable items at the facility during the calendar year. Additional criteria for determining when a location is a place of business of the seller are provided in subsection (b) of this section for distribution centers, manufacturing plants, storage yards, warehouses and similar facilities; kiosks; and purchasing offices. An outlet, office, facility, or any location that contracts with a retail or commercial business to process for that business invoices, purchase orders, bills of lading, or other equivalent records onto which sales tax is added, including an office operated for the purpose of buying and selling taxable goods to be used or consumed by the retail or commercial business, is not a place of business of the seller if the comptroller determines that the outlet, office, facility, or location functions or exists to avoid the tax legally due under Tax Code, Chapters 321, 322, and 323 or exists solely to rebate a portion of the tax imposed by those chapters to the contracting business. An outlet, office, facility, or location does not exist to avoid the tax legally due under Tax Code, Chapters 321, 322, and 323 or solely to rebate a portion of the tax imposed by those chapters if the outlet, office, facility, or location provides significant business services, beyond processing invoices, to the contracting business, including logistics management, purchasing, inventory control, or other vital business services.(19) Purchasing office--An outlet, office, facility, or any location that contracts with a retail or commercial business to process for that business invoices, purchase orders, bills of lading, or other equivalent records onto which sales tax is added, including an office operated for the purpose of buying and selling taxable goods to be used or consumed by the retail or commercial business.(20) Remote Seller--As defined in §3.286 of this title, a remote seller is a seller engaged in business in this state whose only activity in the state is:(A) engaging in regular or systematic solicitation of sales of taxable items in this state by the distribution of catalogs, periodicals, advertising flyers, or other advertising, by means of print, radio, or television media, or by mail, telegraphy, telephone, computer data base, cable, optic, microwave, or other communication system for the purpose of effecting sales of taxable items; or(B) soliciting orders for taxable items by mail or through other media including the Internet or other media that may be developed in the future.(21) Seller--This term has the meaning given in §3.286 of this title and also refers to any agent or employee of the seller.(22) Small business--A legal entity, including a corporation, partnership, or sole proprietorship, that:(A) is formed for the purpose of making a profit;(B) is independently owned and operated; and(C) has fewer than 100 employees or less than $6 million in annual gross receipts.(23) Special purpose district--A local governmental entity authorized by the Texas legislature for a specific purpose, such as crime control, a local library, emergency services, county health services, or a county landfill and criminal detention center.(24) Storage--This term has the meaning given in §3.346 of this title (relating to Use Tax).(25) Temporary place of business of the seller--A location operated by a seller for a limited period of time for the purpose of selling and receiving orders for taxable items and where the seller has inventory available for immediate delivery to a purchaser. For example, a person who rents a booth at a weekend craft fair or art show to sell and take orders for jewelry, or a person who maintains a facility at a job site to rent tools and equipment to a contractor during the construction of real property, has established a temporary place of business. A temporary place of business of the seller includes a sale outside of a distribution center, manufacturing plant, storage yard, warehouse, or similar facility of the seller in a parking lot or similar space sharing the same physical address as the facility but not within the walls of the facility.(26) Transit authority--A metropolitan rapid transit authority (MTA), advanced transportation district (ATD), regional or subregional transportation authority (RTA), city transit department (CTD), county transit authority (CTA), regional mobility authority (RMA) or coordinated county transportation authority created under Transportation Code, Chapters 370, 451, 452, 453, 457, or 460.(27) Two percent cap--A reference to the general rule that, except as otherwise provided by Texas law and as explained in this section, a seller cannot collect, and a purchaser is not obligated to pay, more than 2.0% of the sales price of a taxable item in total local sales and use taxes for all local taxing jurisdictions.(28) Use--This term has the meaning given in §3.346 of this title.(29) Use tax--A tax imposed on the storage, use or other consumption of a taxable item in this state.(b) Determining the place of business of a seller.(1) Distribution centers, manufacturing plants, storage yards, warehouses, and similar facilities.(A) A distribution center, manufacturing plant, storage yard, warehouse, or similar facility operated by a seller for the purpose of selling taxable items where sales personnel of the seller receive three or more orders for taxable items during the calendar year from persons other than employees, independent contractors, and natural persons affiliated with the seller is a place of business of the seller. Forwarding previously received orders to the facility for fulfilment does not make the facility a place of business.(B) If a location that is a place of business of the seller, such as a sales office, is in the same building as a distribution center, manufacturing plant, storage yard, warehouse, or similar facility operated by a seller, then the entire facility is a place of business of the seller.(2) Kiosks. A kiosk is not a place of business of the seller for the purpose of determining where a sale is consummated for local tax purposes. A seller who owns or operates a kiosk in Texas is, however, engaged in business in this state as provided in §3.286 of this title.(3) Purchasing offices.(A) A purchasing office is not a place of business of the seller if the purchasing office exists solely to rebate a portion of the local sales and use tax imposed by Tax Code, Chapters 321, 322, or 323 to a business with which it contracts; or if the purchasing office functions or exists to avoid the tax legally due under Tax Code, Chapters 321, 322, or 323. A purchasing office does not exist solely to rebate a portion of the local sales and use tax or to avoid the tax legally due under Tax Code, Chapters 321, 322, or 323 if the purchasing office provides significant business services to the contracting business beyond processing invoices, including logistics management, purchasing, inventory control, or other vital business services.(B) In making a determination under subparagraph (A) of this paragraph, as to whether a purchasing office provides significant business services to the contracting business beyond processing invoices, the comptroller will compare the total value of the other business services to the value of processing invoices. If the total value of the other business services, including logistics management, purchasing, inventory control, or other vital business services, is less than the value of the service to process invoices, then the purchasing office will be presumed not to be a place of business of the seller.(C) If the comptroller determines that a purchasing office is not a place of business of the seller, the sale of any taxable item is deemed to be consummated at the place of business of the seller from whom the purchasing office purchased the taxable item for resale and local sales and use taxes are due according to the following rules.(i) When taxable items are purchased from a Texas seller, local sales taxes are due based on the location of the seller's place of business where the sale is deemed to be consummated, as determined in accordance with subsection (c) of this section.(ii) When the sale of a taxable item is deemed to be consummated at a location outside of this state, local use tax is due based on the location where the items are first stored, used or consumed by the entity that contracted with the purchasing office in accordance with subsection (d) of this section.(4) An order that is received by a salesperson who is not at a place of business of the seller when the salesperson receives the order is treated as being received at the location from which the salesperson operates. Examples include orders that a salesperson receives by mail, telephone, including Voice over Internet Protocol and cellular phone calls, facsimile, and email while traveling. The location from which the salesperson operates is the principal fixed location where the salesperson conducts work-related activities. The location from which a salesperson operates will be a place of business of the seller only if the location meets the definition of a \"place of business of a seller\" in subsection (a)(16) of this section on its own, without regard to the orders imputed to that location by this paragraph. (5) A facility without sales personnel is usually not a \"place of business of the seller.\" A vending machine is not \"an established outlet, office, or location,\" and does not constitute a \"place of business of the seller.\" Instead, a vending machine sale is treated as a sale by an itinerant vendor. See subsections (a)(10) and (c)(6) of this section. However, a walk-in retail outlet with a stock of goods available for immediate purchase through a cashier-less point of sale terminal at the outlet would be \"an established outlet, office, or location\" so as to constitute a \"place of business of the seller\" even though sales personnel are not required for every sale. A computer that operates an automated shopping cart software program is not an established outlet, office, or location,\" and does not constitute a \"place of business of the seller.\" A computer that operates an automated telephone ordering system is not \"an established outlet, office, or location,\" and does not constitute a \"place of business of the seller.\" (6) If a small business or a micro-business operates a single location out of which it conducts all of its business activities, the comptroller will presume that the location is a place of business of the seller.(c) Local sales tax - Consummation of sale - determining the local taxing jurisdictions to which sales tax is due. Except for the special rules applicable to remote sellers in subsection (i)(3) of this section, direct payment permit purchases in subsection (j) of this section, and certain taxable items, including taxable items sold by a marketplace provider, as provided in subsection (k) of this section, each sale of a taxable item is consummated at the location indicated by the provisions of this subsection. The following rules, taken from Tax Code, §321.203 and §323.203, apply to all sellers engaged in business in Texas, regardless of whether they have no place of business in Texas, a single place of business in Texas, or multiple places of business in Texas.(1) Consummation of sale - order received at a place of business of the seller in Texas.(A) Order placed in person. Except as provided by paragraph (3) of this subsection, when an order for a taxable item is placed in person at a seller's place of business in Texas, including at a temporary place of business of the seller in Texas, the sale of that item is consummated at that place of business of the seller, regardless of the location where the order is fulfilled.(B) Order not placed in person.(i) Order fulfilled at a place of business of the seller in Texas. When an order is received at a place of business of the seller in Texas and is fulfilled at a place of business of the seller in Texas, the sale is consummated at the place of business where the order is fulfilled.(ii) Order not fulfilled at a place of business of the seller in Texas. When an order is received at a place of business of the seller in Texas and is fulfilled at a location that is not a place of business of the seller in Texas, the sale is consummated at the place of business where the order is received.(2) Consummation of sale - order not received at a place of business of the seller in Texas.(A) Order fulfilled at a place of business of the seller in Texas. When an order is received at a location that is not a place of business of the seller in Texas or is received outside of Texas, and is fulfilled from a place of business of the seller in Texas, the sale is consummated at the place of business where the order is fulfilled.(B) Order not fulfilled from a place of business of the seller in Texas.(i) Order fulfilled in Texas. When an order is received at a location that is not a place of business of the seller in Texas and is fulfilled from a location in Texas that is not a place of business of the seller, the sale is consummated at the location in Texas to which the order is shipped or delivered, or at which the purchaser of the item takes possession.(ii) Order not fulfilled in Texas. When an order is received by a seller at a location that is not a place of business of the seller in Texas, and is fulfilled from a location outside of Texas, the sale is not consummated in Texas. However, a use is consummated at the first point in Texas where the item is stored, used, or consumed after the interstate transit has ceased. A taxable item delivered to a point in Texas is presumed to be for storage, use, or consumption at that point until the contrary is established. Local use tax should be collected as provided in subsection (d) of this section. Except as provided in subsection (i)(3) of this section, a remote seller required to collect state use tax under §3.286(b)(2) of this title must also collect local use tax.(3) Exception for qualifying economic development agreements entered into before January 1, 2009, pursuant to Tax Code, §321.203(c-4) - (c-5) or §323.203(c-4) - (c-5). This paragraph is effective until September 1, 2024. If applicable, the local sales tax due on the sale of a taxable item is based on the location of the qualifying warehouse, which is a place of business of the seller, from which the item is shipped or delivered or at which the purchaser of the item takes possession.(4) Local sales taxes are due to each local taxing jurisdiction with sales tax in effect where the sale is consummated. Local use tax may also be due if the total amount of local sales taxes due does not reach the two percent cap, and the item purchased is shipped or delivered to a location in one or more different local taxing jurisdictions, as provided in subsection (d) of this section.(5) Multiple special purpose district taxes, multiple transit authority sales taxes, or a combination of the two may apply to a single transaction. If the sale of a taxable item is consummated at a location within the boundaries of multiple special purpose districts or transit authorities, local sales tax is owed to each of the jurisdictions in effect at that location. For example, a place of business of the seller located in the city of San Antonio is within the boundaries of both the San Antonio Advanced Transportation District and the San Antonio Metropolitan Transit Authority, and the seller is required to collect sales tax for both transit authorities. Similarly, a place of business of the seller in Flower Mound is located within the boundaries of two special purpose districts, the Flower Mound Crime Control District and the Flower Mound Fire Control District, and the seller is responsible for collecting sales tax for both special purpose districts.(6) Itinerant vendors; vending machines.(A) Itinerant vendors. Sales made by itinerant vendors are consummated at, and itinerant vendors must collect sales tax based upon, the location where the item is delivered or at which the purchaser of the item takes possession. Itinerant vendors do not have any responsibility to collect use tax.(B) Vending machines. Sales of taxable items made from a vending machine are consummated at the location of the vending machine. See §3.293 of this title (relating to Food; Food Products; Meals; Food Service) for more information about vending machine sales.(7) The location where the order is received by or on behalf of the seller means the physical location of a seller or third party such as an established outlet, office location, or automated order receipt system operated by or on behalf of the seller where an order is initially received by or on behalf of the seller and not where the order may be subsequently accepted, completed or fulfilled. An order is received when all of the information from the purchaser necessary to the determination whether the order can be accepted has been received by or on behalf of the seller. The location from which a product is shipped shall not be used in determining the location where the order is received by the seller.(d) Local use tax. The provisions addressing the imposition of state use tax in §3.346 of this title also apply to the imposition of local use tax. For example, consistent with §3.346(e) of this title, all taxable items that are shipped or delivered to a location in this state that is within the boundaries of a local taxing jurisdiction are presumed to have been purchased for use in that local taxing jurisdiction as well as presumed to have been purchased for use in the state.(1) General rules.(A) When local use taxes are due in addition to local sales taxes as provided by subsection (c) of this section, all applicable use taxes must be collected or accrued in the following order until the two percent cap is reached: city, county, special purpose district, and transit authority. If more than one special purpose district use tax is due, all such taxes are to be collected or accrued before any transit authority use tax is collected or accrued. See subparagraphs (D) and (E) of this paragraph.(B) If a local use tax cannot be collected or accrued at its full rate without exceeding the two percent cap, the seller cannot collect it, or any portion of it, and the purchaser is not responsible for accruing it.(C) If a seller collects a local sales tax on an item, or a purchaser accrues a local sales tax on an item, a use tax for the same type of jurisdiction is not due on the same item. For example, after a city sales tax has been collected or accrued for an item, no use tax is due to that same or a different city on that item, but use tax may be due to a county, special purpose district, or transit authority. Similarly, if one or more special purpose district sales taxes have been collected or accrued for an item, no special purpose district use tax is due on that item, and if one or more transit authority sales taxes have been collected or accrued for an item, no transit authority use tax is due on that item.(D) Collection or accrual of use tax for multiple special purpose districts. If more than one special purpose district use tax is in effect at the location where use of an item occurs, the special purpose district taxes are due in the order of their effective dates, beginning with the earliest effective date, until the two percent cap is met. The effective dates of all special purpose district taxes are available on the comptroller's website. However, if the collection or accrual of use tax for the district with the earliest effective date would exceed the two percent cap, the tax for that district is not due and the seller or purchaser should determine, following the criteria in subparagraphs (A) - (C) of this paragraph, whether use tax is due for the district that next became effective.(i) If the competing special purpose district taxes became effective on the same date, the special purpose district taxes are due in the order of the earliest date for which the election in which the district residents authorized the imposition of sales and use tax by the district was held.(ii) If the elections to impose the local taxes were held on the same date, the special purpose district taxes are due in the order of the earliest date for which the enabling legislation under which each district was created became effective.(E) Collection or accrual of use tax for multiple transit authorities. If more than one transit authority use tax is in effect at the location where use of an item occurs, and the two percent cap has not been met, the transit authority taxes are due in the order of their effective dates, beginning with the earliest effective date, until the two percent cap is met. The effective dates of all transit authority taxes are available on the comptroller's website. However, if the collection or accrual of use tax for the authority with the earliest effective date would exceed the two percent cap, the tax for that authority is not due and the seller or purchaser should determine, following the criteria in subparagraphs (A) - (D) of this paragraph, whether use tax is due for the authority that next became effective.(i) If the competing transit authorities became effective on the same date, the transit authority taxes are due in the order of the earliest date for which the election in which the authority residents authorized the imposition of sales and use tax by the authority was held.(ii) If the elections to impose local taxes were held on the same date, the transit authority use taxes are due in the order of the earliest date for which the enabling legislation under which each authority was created became effective.(2) General use tax rules applied to specific situations. The following fact patterns explain how local use tax is to be collected or accrued and remitted to the comptroller based on, and subject to, the general rules in paragraph (1) of this subsection.(A) Sale consummated outside the state, item delivered from outside the state or from a location in Texas that is not operated by the seller - local use tax due. Except as provided in subsection (i)(3) of this section, if a sale is consummated outside of this state according to the provisions of subsection (c) of this section, and the item purchased is either shipped or delivered to a location in this state as designated by the purchaser from a location outside of the state, or if the order is drop shipped directly to the purchaser from a third-party supplier, local use tax is owed based upon the location in this state to which the order is shipped or delivered or at which the purchaser of the item takes possession. The seller is responsible for collecting the local use tax due on the sale. If the seller does not collect the local use taxes due on the sale, the purchaser is responsible for accruing such taxes and remitting them directly to the comptroller according to the provisions in paragraph (1) of this subsection. For example, if an order for a taxable item is received by a seller at a location outside of Texas, and the order is shipped to the purchaser from a location outside of the state, local use tax is due based upon the location to which the order is shipped or delivered or at which the purchaser of the item takes possession.  (B) Sale consummated in Texas outside a local taxing jurisdiction, item delivered into one or more local taxing jurisdictions - local use tax due. If a sale is consummated at a location in Texas that is outside of the boundaries of any local taxing jurisdiction according to the provisions of subsection (c) of this section, and the order is shipped or delivered to the purchaser at a location in this state that is within the boundaries of one or more local taxing jurisdictions, local use tax is due based on the location to which the items are shipped or delivered or at which the purchaser of the item takes possession. The seller is responsible for collecting the local use taxes due on the sale, regardless of the location of the seller in Texas. If the seller fails to collect any local use taxes due, the purchaser is responsible for accruing such taxes and remitting them directly to the comptroller.(C) Sale consummated in any local taxing jurisdictions imposing less than 2.0% in total local taxes - local sales taxes and use taxes due. If a sale is consummated at a location in Texas where the total local sales tax rate imposed by the taxing jurisdictions in effect at that location does not equal 2.0% according to the provisions of subsection (c) of this section, and the item is shipped or delivered to the purchaser at a location in this state that is inside the boundaries of a different local taxing jurisdiction, additional local use tax may be due based on the location to which the order is shipped or delivered or at which the purchaser of the item takes possession, subject to the two percent cap. The seller is responsible for collecting any additional local use taxes due on the sale, regardless of the location of the seller in Texas. See subsection (i) of this section. If the seller fails to collect the additional local use taxes due, the purchaser is responsible for accruing such taxes and remitting them directly to the comptroller.(i) Example one - if an order is received in person at a place of business of the seller, such that the sale is consummated at the location where the order is received as provided under subsection (c)(1)(A) of this section, and the local sales tax due on the sale does not meet the two percent cap, additional local use taxes are due based on the location to which the order is shipped or delivered or at which the purchaser of the item takes possession, subject to the provisions in paragraph (1) of this subsection.(ii) Example two - if a seller receives an order for a taxable item at a seller's place of business in Texas, and the seller ships or delivers the item from an out-of-state location to a location in this state as designated by the purchaser, local sales tax is due based upon the location of the place of business of the seller where the order is received. If the local sales tax due on the item does not meet the two percent cap, use taxes, subject to the provisions in paragraph (1) of this subsection, are due based upon the location where the items are shipped or delivered or at which the purchaser of the item takes possession.(e) Effect of other law.(1) Tax Code, Title 2, Subtitles A (General Provisions) and B (Enforcement and Collection), Tax Code, Chapter 141 (Multistate Tax Compact) and Tax Code, Chapter 151 (Limited Sales, Excise, and Use Tax) apply to transactions involving local taxes. Related sections of this title and comptroller rulings shall also apply with respect to local taxes. This includes authorities such as court cases and federal law that affect whether an item is taxable or is excluded or exempt from taxation.(2) Permits, exemption certificates, and resale certificates required by Tax Code, Chapter 151, shall also satisfy the requirements for collecting and remitting local taxes, unless otherwise indicated by this section or other sections of this title. For example, see subsection (n) of this section concerning prior contract exemptions.(3) Any provisions in this section or other sections of this title related to a seller's responsibilities for collecting and remitting local taxes to the comptroller shall also apply to a purchaser if the seller does not collect local taxes that are due. The comptroller may proceed against the seller or purchaser for the local tax owed by either.(f) Tax rates. Except as otherwise provided by law, no local governmental entity may adopt or increase a sales and use tax if, as a result of the adoption or increase of the tax, the combined rate of all sales and use taxes imposed by local taxing jurisdictions having territory in the local governmental entity would exceed 2.0% at any location within the boundaries of the local governmental entity's jurisdiction. The following are the local tax rates that may be adopted.(1) Cities. Cities may impose sales and use tax at a rate of up to 2.0%.(2) Counties. Counties may impose sales and use tax at rates ranging from 0.5% to 1.5%.(3) Special purpose districts. Special purpose districts may impose sales and use tax at rates ranging from 0.125% to 2.0%.(4) Transit authorities. Transit authorities may impose sales and use tax at rates ranging from 0.25% to 1.0%.(g) Jurisdictional boundaries, combined areas, and city tax imposed through strategic partnership agreements.(1) Jurisdictional boundaries.(A) City boundaries. City taxing jurisdictional boundaries cannot overlap one another and a city cannot impose a sales and use tax in an area that is already within the jurisdiction of another city.(B) County boundaries. County tax applies to all locations within that county.(C) Special purpose district and transit authority boundaries. Special purpose districts and transit authorities may cross or share boundaries with other local taxing jurisdictions and may encompass, in whole or in part, other local taxing jurisdictions, including cities and counties. A geographic location or address in this state may lie within the boundaries of more than one special purpose district or more than one transit authority.(D) Extraterritorial jurisdictions. Except as otherwise provided by paragraph (3) of this subsection concerning strategic partnership agreements and subsection (l)(5) of this section concerning the City of El Paso and Fort Bliss, city sales and use tax does not apply to taxable sales that are consummated outside the boundaries of the city, including sales made in a city's extraterritorial jurisdiction. However, an extraterritorial jurisdiction may lie within the boundaries of a special purpose district, transit authority, county, or any combination of the three, and the sales and use taxes for those jurisdictions would apply to those sales.(2) Combined areas. A combined area is an area where the boundaries of a city overlap the boundaries of one or more other local taxing jurisdictions as a result of an annexation of additional territory by the city, and where, as the result of the imposition of the city tax in the area in addition to the local taxes imposed by the existing taxing jurisdictions, the combined local tax rate would exceed 2.0%. The comptroller shall make accommodations to maintain a 2.0% rate in any combined area by distributing the 2.0% tax revenue generated in these combined areas to the local taxing jurisdictions located in the combined areas as provided in Tax Code, §321.102 or Health and Safety Code, §775.0754. Combined areas are identified on the comptroller's website. Sellers engaged in transactions on which local sales or use taxes are due in a combined area, or persons who must self-accrue and remit tax directly to the comptroller, must use the combined area local code when reporting the tax rather than the codes for the individual city, county, special purpose districts, or transit authorities that make up the combined area.(3) City tax imposed through strategic partnership agreements.(A) The governing bodies of a district, as defined in Local Government Code, §43.0751, and a city may enter into a limited-purpose annexation agreement known as a strategic partnership agreement. Under this agreement, the city may impose sales and use tax within all or part of the boundaries of a district. Areas within a district that are annexed for this limited purpose are treated as though they are within the boundaries of the city for purposes of city sales and use tax.(B) Counties, transit authorities, and special purpose districts may not enter into strategic partnership agreements. Sales and use taxes imposed by those taxing jurisdictions do not apply in the limited-purpose annexed area as part of a strategic partnership agreement between a city and an authorized district. However, a county, special purpose district, or transit authority sales and use tax, or any combination of these three types of taxes, may apply at locations included in a strategic partnership agreement between a city and an authorized district if the tax is imposed in that area by the applicable jurisdiction as allowed under its own controlling authorities.(C) Prior to September 1, 2011, the term \"district\" was defined in Local Government Code, §43.0751 as a municipal utility district or a water control and improvement district. The definition was amended effective September 1, 2011, to mean a conservation and reclamation district operating under Water Code, Chapter 49.(h) Places of business of the seller and job sites crossed by local taxing jurisdiction boundaries.(1) Places of business of the seller crossed by local taxing jurisdiction boundaries. If a place of business of the seller is crossed by one or more local taxing jurisdiction boundaries so that a portion of the place of business of the seller is located within a taxing jurisdiction and the remainder of the place of business of the seller lies outside of the taxing jurisdiction, tax is due to the local taxing jurisdictions in which the sales office is located. If there is no sales office, sales tax is due to the local taxing jurisdictions in which any cash registers are located.(2) Job sites.(A) Residential repair and remodeling; new construction of an improvement to realty. When a contractor is improving real property under a separated contract, and the job site is crossed by the boundaries of one or more local taxing jurisdictions, the local taxes due on any separately stated charges for taxable items incorporated into the real property must be allocated to the local taxing jurisdictions based on the total square footage of the real property improvement located within each jurisdiction, including the square footage of any standalone structures that are part of the construction, repair, or remodeling project. For more information about tax due on materials used at residential and new construction job sites, refer to §3.291 of this title (relating to Contractors).(B) Nonresidential real property repair and improvement. When taxable services are performed to repair, remodel, or restore nonresidential real property, including a pipeline, transmission line, or parking lot, that is crossed by the boundaries of one or more local taxing jurisdictions, the local taxes due on the taxable services, including materials and any other charges connected to the services performed, must be allocated among the local taxing jurisdictions based upon the total mileage or square footage, as appropriate, of the repair, remodeling, or restoration project located in each jurisdiction. For more information about tax due on materials used at nonresidential real property repair and remodeling job sites, refer to §3.357 of this title (relating to Nonresidential Real Property Repair, Remodeling, and Restoration; Real Property Maintenance).(i) Sellers' and purchasers' responsibilities for collecting or accruing local taxes.(1) Sale consummated in Texas; seller responsible for collecting local sales taxes and applicable local use taxes. When a sale of a taxable item is consummated at a location in Texas as provided by subsection (c) of this section, the seller must collect each local sales tax in effect at the location. If the total rate of local sales tax due on the sale does not reach the two percent cap, and the seller ships or delivers the item into another local taxing jurisdiction, then the seller is required to collect additional local use taxes due, if any, based on the location to which the item is shipped or delivered or at which the purchaser of the item takes possession, regardless of the location of the seller in Texas. For more information regarding local use taxes, refer to subsection (d) of this section.(2) Out-of-state sale; seller engaged in business in Texas. Except as provided in paragraph (3) of this subsection, when a sale is not consummated in Texas, a seller who is engaged in business in this state is required to collect and remit local use taxes due, if any, on orders of taxable items shipped or delivered at the direction of the purchaser into a local taxing jurisdiction in this state based upon the location in this state to which the item is shipped or delivered or at which the purchaser of the item takes possession as provided in subsection (d) of this section.(3) Local use tax rate for remote sellers.(A) A remote seller required to collect and remit one or more local use taxes in connection with a sale of a taxable item must compute the amount using:(i) the combined tax rate of all applicable local use taxes based on the location to which the item is shipped or delivered or at which the purchaser of the item takes possession; or(ii) at the remote seller's election, the single local use tax rate published in the Texas Register.  (B) A remote seller that is storing tangible personal property in Texas to be used for fulfillment at a facility of a marketplace provider that has certified that it will assume the rights and duties of a seller with respect to the tangible personal property, as provided for in §3.286 of this title, may elect the single local use tax rate under subparagraph (A)(ii) of this paragraph.(C) Notice to the comptroller of election and revocation of election.(i) Before using the single local use tax rate, a remote seller must notify the comptroller of its election using a form prescribed by the comptroller. A remote seller may also notify the comptroller of the election on its use tax permit application form. The remote seller must use the single local use tax rate for all of its sales of taxable items until the election is revoked as provided in clause (ii) of this subparagraph.(ii) A remote seller may revoke its election by filing a form prescribed by the comptroller. If the comptroller receives the notice by October 1, the revocation will be effective January 1 of the following year. If the comptroller receives the notice after October 1, the revocation will be effective January 1 of the year after the following year. For example, a remote seller must notify the comptroller by October 1, 2020, for the revocation to be effective January 1, 2021. If the comptroller receives the revocation on November 1, 2020, the revocation will be effective January 1, 2022.(D) Single local use tax rate.(i) The single local use tax rate in effect for the period beginning October 1, 2019, and ending December 31, 2019, is 1.75%.(ii) The single local use tax rate in effect for the period beginning January 1, 2020, and ending December 31, 2020, is 1.75%.(E) Annual publication of single local use tax rate. Before the beginning of a calendar year, the comptroller will publish notice of the single local use tax rate in the Texas Register  that will be in effect for that calendar year.(F) Calculating the single local use tax rate. The single local use tax rate effective in a calendar year is equal to the estimated average rate of local sales and use taxes imposed in this state during the preceding state fiscal year. As soon as practicable after the end of a state fiscal year, the comptroller must determine the estimated average rate of local sales and use taxes imposed in this state during the preceding state fiscal year by:(i) dividing the total amount of net local sales and use taxes remitted to the comptroller during the state fiscal year by the total amount of net state sales and use tax remitted to the comptroller during the state fiscal year;(ii) multiplying the amount computed under clause (i) of this subparagraph by the rate provided in Tax Code, §151.051; and(iii) rounding the amount computed under clause (ii) of this subparagraph to the nearest .0025.(G) Direct refund. A purchaser may request a refund based on local use taxes paid in a calendar year for the difference between the single local use tax rate paid by the purchaser and the amount the purchaser would have paid based on the combined tax rate for all applicable local use taxes. Notwithstanding the refund requirements under §3.325(a)(1) of this title (relating to Refunds and Payments Under Protest), a non-permitted purchaser may request a refund directly from the comptroller for the tax paid in the previous calendar year, no earlier than January 1 of the following calendar year within the statute of limitation under Tax Code, 111.104 (Refunds).(H) Marketplace providers. Notwithstanding subparagraph (A) of this paragraph, marketplace providers may not use the single local use tax rate and must compute the amount of local use tax to collect and remit using the combined tax rate of all applicable local use taxes.(4) Purchaser responsible for accruing and remitting local taxes if seller fails to collect.(A) If a seller does not collect the state sales tax, any applicable local sales taxes, or both, on a sale of a taxable item that is consummated in Texas, then the purchaser is responsible for filing a return and paying the tax. The local sales taxes due are based on the location in this state where the sale is consummated as provided in subsection (c) of this section.(B) A purchaser who buys an item for use in Texas from a seller who does not collect the state use tax, any applicable local use taxes, or both, is responsible for filing a return and paying the tax. The local use taxes due are based on the location where the item is first stored, used, or consumed by the purchaser.(C) For more information about how to report and pay use tax directly to the comptroller, see §3.286 of this title.(5) Local tax is due on the sales price of a taxable item, as defined in Tax Code, §151.007, in the report period in which the taxable item is purchased or the period in which the taxable item is first stored, used, or otherwise consumed in a local taxing jurisdiction.(6) A purchaser is not liable for additional local use tax if the purchaser pays local use tax using the rate elected by an eligible remote seller according to paragraph (3) of this subsection. The remote seller must be identified on the comptroller's website as electing to use the single local use tax rate. A purchaser must verify that the remote seller is listed on the comptroller's website. If the remote seller is not listed on the comptroller's website, the purchaser will be liable for additional use tax due in accordance to paragraph (4) of this subsection.(j) Items purchased under a direct payment permit.(1) When taxable items are purchased under a direct payment permit, local use tax is due based upon the location where the permit holder first stores the taxable items, except that if the taxable items are not stored, then local use tax is due based upon the location where the taxable items are first used or otherwise consumed by the permit holder.(2) If, in a local taxing jurisdiction, storage facilities contain taxable items purchased under a direct payment exemption certificate and at the time of storage it is not known whether the taxable items will be used in Texas, then the taxpayer may elect to report the use tax either when the taxable items are first stored in Texas or are first removed from inventory for use in Texas, as long as use tax is reported in a consistent manner. See also §3.288(i) of this title (relating to Direct Payment Procedures and Qualifications) and §3.346(g) of this title.(3) If local use tax is paid on stored items that are subsequently removed from Texas before they are used, the tax may be recovered in accordance with the refund and credit provisions of §3.325 of this title and §3.338 of this title (relating to Multistate Tax Credits and Allowance of Credit for Tax Paid to Suppliers).(k) Special rules for certain taxable goods and services. Sales of the following taxable goods and services are consummated at, and local tax is due based upon, the location indicated in this subsection.(1) Amusement services. Local tax is due based upon the location where the performance or event occurs. For more information on amusement services, refer to §3.298 of this title (relating to Amusement Services).(2) Cable services. When a service provider uses a cable system to provide cable television or bundled cable services to customers, local tax is due as provided for in §3.313 of this title. When a service provider uses a satellite system to provide cable services to customers, no local tax is due on the service in accordance with the Telecommunications Act of 1996, §602.(3) Florists. Local sales tax is due on all taxable items sold by a florist based upon the location where the order is received, regardless of where or by whom delivery is made. Local use tax is not due on deliveries of taxable items sold by florists. For example, if the place of business of the florist where an order is taken is not within the boundaries of any local taxing jurisdiction, no local sales tax is due on the item and no local use tax is due regardless of the location of delivery. If a Texas florist delivers an order in a local taxing jurisdiction at the instruction of an unrelated florist, and if the unrelated florist did not take the order within the boundaries of a local taxing jurisdiction, local use tax is not due on the delivery. For more information about florists' sales and use tax obligations, refer to §3.307 of this title (relating to Florists).(4) Landline telecommunications services. Local taxes due on landline telecommunications services are based upon the location of the device from which the call or other transmission originates. If the seller cannot determine where the call or transmission originates, local taxes due are based on the address to which the service is billed. For more information, refer to §3.344 of this title (relating to Telecommunications Services).(5) Marketplace provider sales. Local taxes are due on sales of taxable items through a marketplace provider based on the location in this state to which the item is shipped or delivered or at which the purchaser takes possession. For more information, refer to §3.286 of this title.(6) Mobile telecommunications services. Local taxes due on mobile telecommunications services are based upon the location of the customer's place of primary use as defined in §3.344(a)(8) of this title, and local taxes are to be collected as indicated in §3.344(h) of this title.(7) Motor vehicle parking and storage. Local taxes are due based on the location of the space or facility where the vehicle is parked. For more information, refer to §3.315 of this title (relating to Motor Vehicle Parking and Storage).(8) Natural gas and electricity. Any local city and special purpose taxes due are based upon the location where the natural gas or electricity is delivered to the purchaser. As explained in subsection (l)(1) of this section, residential use of natural gas and electricity is exempt from all county sales and use taxes and all transit authority sales and use taxes, most special purpose district sales and use taxes, and many city sales and use taxes. A list of the cities and special purpose districts that do impose, and those that are eligible to impose, local sales and use tax on residential use of natural gas and electricity is available on the comptroller's website. For more information, also refer to §3.295 of this title (relating to Natural Gas and Electricity).(9) Nonresidential real property repair and remodeling services. Local taxes are due on services to remodel, repair, or restore nonresidential real property based on the location of the job site where the remodeling, repair, or restoration is performed. See also subsection (h)(2)(B) of this section and §3.357 of this title.(10) Residential real property repair and remodeling and new construction of a real property improvement performed under a separated contract. When a contractor constructs a new improvement to realty pursuant to a separated contract or improves residential real property pursuant to a separated contract, the sale is consummated at the job site at which the contractor incorporates taxable items into the customer's real property. See also subsection (h)(2)(A) of this section and §3.291 of this title.(11) Waste collection services. Local taxes are due on garbage or other solid waste collection or removal services based on the location at which the waste is collected or from which the waste is removed. For more information, refer to §3.356 of this title (relating to Real Property Service).(l) Special exemptions and provisions applicable to individual jurisdictions.(1) Residential use of natural gas and electricity.(A) Mandatory exemptions from local sales and use tax. Residential use of natural gas and electricity is exempt from most local sales and use taxes. Counties, transit authorities, and most special purpose districts are not authorized to impose sales and use tax on the residential use of natural gas and electricity. Pursuant to Tax Code, §321.105, any city that adopted a local sales and use tax effective October 1, 1979, or later is prohibited from imposing tax on the residential use of natural gas and electricity. See §3.295 of this title.(B) Imposition of tax allowed in certain cities. Cities that adopted local sales tax prior to October 1, 1979, may, in accordance with the provisions in Tax Code, §321.105, choose to repeal the exemption for residential use of natural gas and electricity. The comptroller's website provides a list of cities that impose tax on the residential use of natural gas and electricity, as well as a list of those cities that do not currently impose the tax, but are eligible to do so.(C) Effective January 1, 2010, a fire control, prevention, and emergency medical services district organized under Local Government Code, Chapter 344 that imposes sales tax under Tax Code, §321.106, or a crime control and prevention district organized under Local Government Code, Chapter 363 that imposes sales tax under Tax Code, §321.108, that is located in all or part of a municipality that imposes a tax on the residential use of natural gas and electricity as provided under Tax Code, §321.105 may impose tax on residential use of natural gas and electricity at locations within the district. A list of the special purpose districts that impose tax on residential use of natural gas and electricity and those districts eligible to impose the tax that do not currently do so is available on the comptroller's website.(2) Telecommunication services. Telecommunications services are exempt from all local sales taxes unless the governing body of a city, county, transit authority, or special purpose district votes to impose sales tax on these services. However, since 1999, under Tax Code, §322.109(d), transit authorities created under Transportation Code, Chapter 451 cannot repeal the exemption unless the repeal is first approved by the governing body of each city that created the local taxing jurisdiction. The local sales tax is limited to telecommunications services occurring between locations within Texas. See §3.344 of this title. The comptroller's website provides a list of local taxing jurisdictions that impose tax on telecommunications services.(3) Emergency services districts.(A) Authority to exclude territory from imposition of emergency services district sales and use tax. Pursuant to the provisions of Health and Safety Code, §775.0751(c-1), an emergency services district wishing to enact a sales and use tax may exclude from the election called to authorize the tax any territory in the district where the sales and use tax is then at 2.0%. The tax, if authorized by the voters eligible to vote on the enactment of the tax, then applies only in the portions of the district included in the election. The tax does not apply to sales made in the excluded territories in the district and sellers in the excluded territories should continue to collect local sales and use taxes for the local taxing jurisdictions in effect at the time of the election under which the district sales and use tax was authorized as applicable.(B) Consolidation of districts resulting in sales tax sub-districts. Pursuant to the provisions of Health and Safety Code, §775.018(f), if the territory of a district proposed under Health and Safety Code, Chapter 775 overlaps with the boundaries of another district created under that chapter, the commissioners court of each county and boards of the counties in which the districts are located may choose to create a consolidated district in the overlapping territory. If two districts that want to consolidate under Health and Safety Code, §775.024 have different sales and use tax rates, the territory of the former districts located within the consolidated area will be designated as sub-districts and the sales tax rate within each sub-district will continue to be imposed at the rate the tax was imposed by the former district that each sub-district was part of prior to the consolidation.(4) East Aldine Management District.(A) Special sales and use tax zones within district; separate sales and use tax rate. As set out in Special District Local Laws Code, §3817.154(e) and (f), the East Aldine Management District board may create special sales and use tax zones within the boundaries of the District and, with voter approval, enact a special sales and use tax rate in each zone that is different from the sales and use tax rate imposed in the rest of the district.(B) Exemptions from special zone sales and use tax. The sale, production, distribution, lease, or rental of; and the use, storage, or other consumption within a special sales and use tax zone of; a taxable item sold, leased, or rented by the entities identified in clauses (i) - (vi) of this subparagraph are exempt from the special zone sales and use tax. State and all other applicable local taxes apply unless otherwise exempted by law. The special zone sales and use tax exemption applies to:(i) a retail electric provider as defined by Utilities Code, §31.002;(ii) an electric utility or a power generation company as defined by Utilities Code, §31.002;(iii) a gas utility as defined by Utilities Code, §101.003 or §121.001, or a person who owns pipelines used for transportation or sale of oil or gas or a product or constituent of oil or gas;(iv) a person who owns pipelines used for the transportation or sale of carbon dioxide;(v) a telecommunications provider as defined by Utilities Code, §51.002; or(vi) a cable service provider or video service provider as defined by Utilities Code, §66.002.(5) Imposition of city sales tax and transit tax on certain military installations; El Paso and Fort Bliss. Pursuant to Tax Code, §321.1045 (Imposition of Sales and Use Tax in Certain Federal Military Installations), for purposes of the local sales and use tax imposed under Tax Code, Chapter 321, the city of El Paso includes the area within the boundaries of Fort Bliss to the extent it is in the city's extraterritorial jurisdiction. However, the El Paso transit authority does not include Fort Bliss. See Transportation Code, §453.051 concerning the Creation of Transit Departments.(m) Restrictions on local sales tax rebates and other economic incentives. Pursuant to Local Government Code, §501.161, Section 4A and 4B development corporations may not offer to provide economic incentives, such as local sales tax rebates authorized under Local Government Code, Chapters 380 or 381, to persons whose business consists primarily of purchasing taxable items using resale certificates and then reselling those same items to a related party. A related party means a person or entity which owns at least 80% of the business enterprise to which sales and use taxes would be rebated as part of an economic incentive.(n) Prior contract exemptions. The provisions of §3.319 of this title (relating to Prior Contracts) concerning definitions and exclusions apply to prior contract exemptions.(1) Certain contracts and bids exempt. No local taxes are due on the sale, use, storage, or other consumption in this state of taxable items used:(A) for the performance of a written contract executed prior to the effective date of any local tax if the contract may not be modified because of the tax; or(B) pursuant to the obligation of a bid or bids submitted prior to the effective date of any local tax if the bid or bids and contract entered into pursuant thereto are at a fixed price and not subject to withdrawal, change, or modification because of the tax.(2) Annexations. Any annexation of territory into an existing local taxing jurisdiction is also a basis for claiming the exemption provided by this subsection.(3) Local taxing jurisdiction rate increase; partial exemption for certain contracts and bids. When an existing local taxing jurisdiction raises its sales and use tax rate, the additional amount of tax that would be due as a result of the rate increase is not due on the sale, use, storage, or other consumption in this state of taxable items used:(A) for the performance of a written contract executed prior to the effective date of the tax rate increase if the contract may not be modified because of the tax; or(B) pursuant to the obligation of a bid or bids submitted prior to the effective date of the tax rate increase if the bid or bids and contract entered into pursuant thereto are at a fixed price and not subject to withdrawal, change, or modification because of the tax.(4) Three-year statute of limitations.(A) The exemption in paragraph (1) of this subsection and the partial exemption in paragraph (3) of this subsection have no effect after three years from the date the adoption or increase of the tax takes effect in the local taxing jurisdiction.(B) The provisions of §3.319 of this title apply to this subsection to the extent they are consistent.(C) Leases. Any renewal or exercise of an option to extend the time of a lease or rental contract under the exemptions provided by this subsection shall be deemed to be a new contract and no exemption will apply.(5) Records. Persons claiming the exemption provided by this subsection must maintain records which can be verified by the comptroller or the exemption will be lost.(6) Exemption certificate. An identification number is required on the prior contract exemption certificates furnished to sellers. The identification number should be the person's 11-digit Texas taxpayer number or federal employer's identification (FEI) number.",
            "sourceNote": "Source Note: The provisions of this §3.334 adopted to be effective July 4, 2024, 49 TexReg 4797."
        },
        {
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            "currentRecordId": "191457",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.335",
                "label": "Property Used in a Qualifying Data Center or Qualifying Large Data Center Project; Temporary Sales Tax Exemption"
            },
            "nextRule": {
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                "recordId": "191458",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Capital investment--The amount paid to acquire capital or fixed assets that are purchased for use in the operation of a qualifying data center or qualifying large data center projects, and that, for U.S. federal income tax purposes, qualify as Section 179, Section 1245, or Section 1250 property, as those terms are defined in Internal Revenue Code, §§179(d)(1), 1245(a)(3), and 1250(c), respectively. Examples include, but are not limited to, land, buildings, furniture, machinery, and equipment used for the processing, storage, and distribution of data, and labor used specifically to construct or refurbish such property. The term does not include:(A) property purchased before September 1, 2013, for a qualifying data center;(B) property purchased before May 1, 2015, for a qualifying large data center project;(C) property purchased by a qualifying owner, qualifying operator, or qualifying occupant from persons or legal entities related to the purchaser by ownership or common control;(D) property that is leased under an operating lease; or(E) expenditures for routine and planned maintenance required to maintain regular business operations.(2) County average weekly wage--The average weekly wage in a county for all jobs during the most recent four quarterly periods for which data is available, as computed by the Texas Workforce Commission, at the time a qualifying owner, qualifying operator, or qualifying occupant creates a job used to qualify under this section.(3) Data center--A facility that:(A) is or will be located in this state;(B) is or will be specifically constructed or refurbished for use primarily to house servers, related equipment, and support staff for the processing, storage, and distribution of data;(C) will be used by a single qualifying occupant for the processing, storage, and distribution of data;(D) will not be used primarily by a telecommunications provider to house tangible personal property that is used to deliver telecommunications services; and(E) has or will have an uninterruptible power source, generator backup power, a sophisticated fire suppression and prevention system, and enhanced physical security that includes restricted access, video surveillance, and electronic systems.(4) Permanent job--An employment position for which an Internal Revenue Service Form W-2 must be issued, that will exist for at least five years after the date the job is created. A permanent job will be considered to exist for at least five years after the date the job is created if during the five-year period any vacancy which occurs is filled within 120 days of the date of vacancy.(5) Primarily--More than 50% of the time.(6) Qualifying data center--A data center that the comptroller certifies as meeting each of the requirements in subsection (d) of this section.(7) Qualifying job--(A) A new, full-time job created by a qualifying owner, qualifying operator, or qualifying occupant of a qualifying data center or qualifying large data center project that:(i) is a permanent job;(ii) is located in the same county in Texas in which the associated qualifying data center or qualifying large data center project is located;(iii) will provide at least 1,820 hours of employment a year to a single employee;(iv) pays at least 120% of the county average weekly wage, as defined by paragraph (2) of this subsection, for the county in which the job is located;(v) is not transferred from one county in Texas to another county in Texas; and(vi) is not created to replace a qualifying job that was previously held by another employee.(B) The term includes a new employment position staffed by a third party employer if the employment position meets the requirements of subparagraph (A) of this paragraph and if a written contract exists between the third-party employer and a qualifying owner, qualifying operator, or qualifying occupant that provides that the employment position is permanently assigned to an associated qualifying data center or qualifying large data center project.(8) Qualifying large data center project--A data center that the comptroller certifies as meeting each of the requirements in subsection (e) of this section.(9) Qualifying operator--A person who controls access to a qualifying data center or qualifying large data center project, regardless of whether that person owns each item of tangible personal property located at the qualifying data center or qualifying large data center project. A qualifying operator may also be the qualifying owner.(10) Qualifying owner--A person who owns the building in which a qualifying data center or qualifying large data center project is located. A qualifying owner may also be the qualifying operator.(11) Qualifying occupant--A person who:(A) contracts with either a qualifying owner or qualifying operator to place, or cause to be placed, tangible personal property at the qualifying data center or qualifying large data center project for use by the occupant. The qualifying occupant may also be the qualifying owner or the qualifying operator of the same data center; and(B) is the sole occupant of the qualifying data center or qualifying large data center project. A qualifying occupant may provide data storage and processing services, but may not sublease to a third party any real or tangible personal property located within the area of a building designated by the qualifying occupant, qualifying owner, or qualifying operator as part of the qualifying data center or qualifying large data center project. For example, a qualifying occupant may not sell or lease excess servers or server space, including the provision of dedicated servers, at the qualifying data center to third parties. If a single occupant leases 150,000 square feet of space in a building for use as a qualifying data center, that occupant may not use 100,000 square feet for its own qualifying use and sublease the remaining 50,000 square feet to a third party, even if the third party will also use the space as a data center. An occupant may, however, lease 150,000 square feet of space in a building and, during the certification process, formally designate 100,000 square feet or more of the space as the area to be used as its qualifying data center. The occupant could then sublease the space not designated for use as the qualifying data center to a third party without causing the qualifying data center to lose its certification as a qualifying data center. Tangible personal property purchased for use in the space outside the area designated for use as a qualifying data center would not qualify for exemption under this section.(b) Exemption.(1) The exemption under this subsection for qualifying data centers only applies to Texas state sales and use taxes. See Tax Code, §151.359 (Property Used in Certain Data Centers; Temporary Exemption). The exemption under this subsection for qualifying large data center projects applies to Texas state and local sales and use taxes. See Tax Code, §151.3595 (Property Used in Certain Large Data Center Projects; Temporary Exemption).(2) Tangible personal property purchased by a qualifying owner, qualifying operator, or qualifying occupant for installation at, incorporation into, or in the case of subparagraph (A) of this paragraph, use in a qualifying data center or qualifying large data center project is exempted from the applicable taxes as specified in paragraph (1) of this subsection if the tangible personal property is necessary and essential to the operation of the qualifying data center or qualifying large data center project and is:(A) electricity. A predominant use study is required to differentiate between taxable and nontaxable use of electricity from a single meter unless the qualifying data center or qualifying large data center project is a stand-alone facility of which the qualifying occupant is the sole inhabitant. For more information regarding predominant use studies, refer to §3.295 of this title (relating to Natural Gas and Electricity). The qualifying owner, qualifying operator, or qualifying occupant of a stand-alone qualifying data center or qualifying large data center project is not required to perform a predominant use study and may, in lieu of tax, supply its utility provider with a properly completed Exemption Certificate for Qualifying Data Centers or Qualifying Large Data Center Projects, Form 01-929. Refer to subsection (h) of this section regarding exemption certificates;(B) an electrical system;(C) a cooling system;(D) an emergency generator;(E) hardware or a distributed mainframe computer or server;(F) a data storage device;(G) network connectivity equipment;(H) a rack, cabinet, and raised floor system;(I) a peripheral component or system;(J) software;(K) a mechanical, electrical, or plumbing system that is necessary to operate any tangible personal property described in this subsection;(L) any other item of equipment or system necessary to operate any tangible personal property described in this subsection, including a fixture; or(M) a component part of any tangible personal property described in this subsection.(3) The purchase price of qualifying tangible personal property, including building materials, electricity, and other items, jointly procured by a qualifying owner, qualifying operator, or qualifying occupant for installation at, incorporation into, or use in one or more qualifying data centers or qualifying large data center projects is to be apportioned among the purchasers for purposes of subsection (i)(2) of this section, concerning liability in the event of revocation.(c) Exclusion from exemption. The exemption in subsection (b) of this section does not apply to:(1) office equipment or supplies;(2) maintenance or janitorial supplies or equipment;(3) equipment or supplies used primarily in sales activities or transportation activities;(4) tangible personal property on which the purchaser has received or has a pending application for a refund under Tax Code, §151.429 (Tax Refunds for Enterprise Projects);(5) tangible personal property that is rented or leased for a term of one year or less;(6) tangible personal property not otherwise exempted under subsection (b) of this section that is incorporated into real estate or into an improvement of real estate; or(7) notwithstanding Tax Code, §151.3111 (Services on Certain Exempted Personal Property), a taxable service that is performed on tangible personal property exempted under this section.(d) Eligibility for certification as a qualifying data center. The comptroller may certify an applicant facility as a qualifying data center if the following requirements are met:(1) the applicants declare on the application for certification that the facility does or will meet all of the requirements for the definition of the term \"data center\" set out in subsection (a)(3) of this section;(2) the data center is at least 100,000 square feet of space located in a single building or portion of a single building;(3) the qualifying owner, qualifying operator, or qualifying occupant, jointly or independently, have agreed to, on or after September 1, 2013:(A) create at least 20 qualifying jobs on or before the fifth anniversary of the date that the data center is certified by the comptroller as a qualifying data center; and(B) make a capital investment of at least $200 million in that particular data center over a five-year period beginning on the date the data center is certified by the comptroller as a qualifying data center. For purposes of this subparagraph:(i) an expenditure can only be counted toward the capital investment requirement if invoiced to the qualifying owner, qualifying operator, or qualifying occupant on or after the date the comptroller certifies the data center; and(ii) purchases by a related corporate entity on behalf of a qualifying owner, qualifying operator, or qualifying occupant cannot be included in the capital investment calculation; and(4) the applicant facility does not have an agreement under which it receives a limitation on appraised value of property for ad valorem tax purposes under Tax Code, Chapter 313 (Texas Economic Development Act).(e) Eligibility for certification as a qualifying large data center project. The comptroller may certify an applicant facility as a qualifying large data center project if the following requirements are met:(1) the applicants declare on the application for certification that the facility does or will meet all of the requirements for the definition of the term \"data center\" set out in subsection (a)(3) of this section;(2) the data center is composed of one or more buildings totaling at least 250,000 square feet of space located or to be located on a single parcel of land or on contiguous parcels of land that are commonly owned or owned by affiliation with the qualifying operator;(3) the qualifying owner, qualifying operator, or qualifying occupant, jointly or independently, have agreed to:(A) on or after June 1, 2015, create at least 40 qualifying jobs on or before the fifth anniversary of the date that the data center submits the application to the comptroller;(B) on or after May 1, 2015, make a capital investment of at least $500 million in that particular data center over a five-year period beginning on the date the data center submits the application to the comptroller. For purposes of this subparagraph:(i) an expenditure can only be counted toward the capital investment requirement if invoiced to the qualifying owner, qualifying operator, or qualifying occupant on or after the date the data center submits the application to the comptroller; and(ii) purchases by a related corporate entity on behalf of a qualifying owner, qualifying operator, or qualifying occupant cannot be included in the capital investment calculation; and(C) on or after June 1, 2015, contract for at least 20 megawatts of transmission capacity for operation of the qualifying large data center project; and(4) the applicant facility does not have an agreement under which it receives a limitation on appraised value of property for ad valorem tax purposes under Tax Code, Chapter 313 (Texas Economic Development Act).(f) Application process.(1) A facility that is eligible to be certified under subsection (d) of this section as a qualifying data center or under subsection (e) of this section as a qualifying large data center project by the comptroller shall apply for a registration number on the Texas Application for Certification as a Qualifying Data Center, Form AP-233 or Texas Application for Certification as a Qualifying Large Data Center Project, Form AP-236, as applicable. The application must include:(A) the name, contact information, and authorized signature for the qualifying occupant and, if applicable, the name, contact information, and authorized signature for the qualifying owner and the qualifying operator who will claim the exemption authorized under this section;(B) a business proposal summarizing the plan of the qualifying owner, qualifying operator, or qualifying occupant, independently or jointly, to meet the requirements in subsection (d) of this section for qualifying data centers or subsection (e) of this section for qualifying large data center projects; and(C) a statement confirming that the qualifying owner, qualifying operator, and qualifying occupant, as applicable, agree that the statute of limitation provided in Tax Code, §111.201 (Assessment Limitation) on the assessment of tax, penalty, and interest on purchases made tax-free under this section is tolled from the date of certification until the fifth anniversary of that date, or until such time as the comptroller is able to verify that the requirements set out in subsection (d) of this section for qualifying data centers or subsection (e) of this section for qualifying large data center projects have been met, whichever is later.(2) Information provided on and with the application under this subsection is confidential under Tax Code, §151.027 (Confidentiality of Tax Information).(3) After certifying the qualifying data center or qualifying large data center project, the comptroller will issue a separate registration number to the qualifying owner, the qualifying operator, and the qualifying occupant, as applicable, based on the registration number of the qualifying data center or qualifying large data center project.(g) Temporary exemption dates. The exemption under this section is temporary. The exemption applies to qualifying purchases made by a qualifying owner, qualifying operator, or qualifying occupant during the exemption period applicable to the qualifying data center or qualifying large data center project.(1) The exemption period for a qualifying data center or qualifying large data center project begins on the date the data center is certified by the comptroller.(2) A qualifying data center's exemption period ends 10 or 15 years from the certification date, depending on the amount of capital investment made.(A) A qualifying data center's sales tax exemption expires 10 years from the date of certification by the comptroller if the qualifying owner, qualifying operator, or qualifying occupant, independently or jointly, makes a capital investment of at least $200 million, but less than $250 million, within the first five years after certification.(B) A qualifying data center's sales tax exemption expires 15 years from the date of certification by the comptroller if the qualifying owner, qualifying operator, or qualifying occupant, independently or jointly, makes a capital investment of at least $250 million within the first five years after certification.(3) A qualifying large data center project's exemption period ends 20 years from the date of certification by the comptroller provided the qualifying owner, qualifying operator, or qualifying occupant, independently or jointly, makes a capital investment of at least $500 million within the first five years after certification.(4) The comptroller will audit each qualifying data center and qualifying large data center project at its five year anniversary to verify the amount of capital investment made and to verify that the jobs creation requirement has been met. The comptroller will also verify the contract for transmission capacity for operation of a qualifying large data center project.(5) Once all jobs are created, as required under subsection (d) of this section for qualifying data centers or subsection (e) of this section for qualifying large data center projects, the qualifying owner, qualifying operator, or qualifying occupant, either singly or jointly, must timely notify the comptroller by providing a properly completed Qualifying Data Center or Qualifying Large Data Center Project Job Creation Report, 01-160.(h) Exemption certificate. Each person who is eligible to claim an exemption authorized by this section must hold a registration number issued by the comptroller.(1) To claim an exemption under this section for the purchase of tangible personal property, a qualifying owner, qualifying operator, or qualifying occupant must provide to the seller of a taxable item an Exemption Certificate for Qualifying Data Centers or Qualifying Large Data Center Projects, Form 01-929. The exemption certificate does not apply to local sales and use tax for qualifying data centers. Refer to subsection (l) of this section for more information regarding local sales and use tax.(2) To claim the exemption, a qualifying owner, qualifying operator, or qualifying occupant must properly complete all required information on the exemption certificate, including:(A) the data center registration number;(B) the registration number of the qualifying owner, qualifying operator, or qualifying occupant, as applicable;(C) the address of the qualifying owner, qualifying operator, or qualifying occupant, as applicable;(D) a description of the tangible personal property to be purchased;(E) the signature of the purchaser; and(F) the date of the purchase.(3) The properly completed Exemption Certificate for Qualifying Data Centers or Qualifying Large Data Center Projects is the seller's documentation that it made a tax-exempt sale in good faith. The seller is required to keep the exemption certificate and all other financial records relating to the exempt sale, including records to document the seller's collection of the local sales and use tax for qualifying data centers. The seller must be able to match invoices of tax-exempt sales to the purchaser's exemption certificate. This may be accomplished by the seller entering the purchaser's registration number on each invoice.(4) A seller is not required to accept an exemption certificate from a qualifying data center or qualifying large data center project. If a seller chooses not to accept an exemption certificate issued by a purchaser, the purchaser may instead request a refund of the tax paid from the comptroller. Sellers shall provide an Assignment of Right to Refund, Form 00-985, when the exemption is not provided to a qualifying owner, qualifying operator, or qualifying occupant when qualifying purchases of tangible personal property are made.(i) Revocation. By filing an application for certification of a qualifying data center or qualifying large data center project, the qualifying owner, qualifying operator, and qualifying occupant, as applicable, commit to meeting the requirements set out in subsection (d) of this section for qualifying data centers or subsection (e) of this section for qualifying large data center projects and certify the data center will be occupied by a single qualifying occupant over the life of the exemption. For more information, refer to subsection (d) of this section for qualifying data center requirements, subsection (e) of this section for qualifying large data center project requirements, and subsection (g) of this section for the term of the exemption.(1) Failure to meet one or more of the certification requirements described in subsection (d) of this section for qualifying data centers or subsection (e) of this section for qualifying large data center projects will result in termination of the certification and the revocation of all related qualifying owner, qualifying operator, and qualifying occupant exemption registration numbers.(2) Each entity that has a registration number revoked will be liable for unpaid sales or use taxes, including penalty and interest from the date of purchase, on all items purchased tax-free under this section, back to the original date of certification of the data center as a qualifying data center or qualifying large data center project.(3) If a formal waiver of the statute of limitations under Tax Code, §111.203 (Agreements to Extend Period of Limitation) is deemed necessary to insure against a loss of revenue to the state in the event that a data center's certification is revoked, by allowing the comptroller to verify, prior to the expiration of the statute of limitations on assessment, that each of the requirements in subsection (d) of this section for qualifying data centers or subsection (e) of this section for qualifying large data center projects has been met, then the failure to execute a timely statutory waiver will also result in the termination of the data center's certification and the revocation of all related registration numbers.(j) Documentation and record retention.(1) In accordance with Tax Code, §111.0041 (Records; Burden to Produce and Substantiate Claims) and §151.025 (Records Required to be Kept), all qualifying occupants, qualifying owners, and qualifying operators of a qualifying data center or qualifying large data center project must keep complete records to document any and all tax-exempt purchases made under this exemption, and to confirm payment of the local sales and use tax on such purchases by qualifying data centers. See §3.281 of this title (relating to Records Required; Information Required) for additional guidance.(2) In addition, each qualifying owner, qualifying operator, and qualifying occupant of a qualifying data center or qualifying large data center project must keep complete records to document the applicable capital investment made in the qualifying data center or qualifying large data center project; the creation of the required number of applicable qualifying jobs including the retention of those jobs for a period of at least five years; and documentation of the contract for the applicable transmission capacity for qualifying large data center projects. These records must be retained until the data center's certification expires. For example, a qualifying owner, qualifying operator, or qualifying occupant should keep comprehensive records of capital investment expenditures, such as contracts, invoices, and sales receipts, and employment records regarding job creation, including associated third-party employer positions.(3) In the event the comptroller revokes the certification of a qualifying data center or qualifying large data center project, the records of all qualifying owners, qualifying operators, and qualifying occupants must be retained until all assessments have been resolved.(k) Successor Liability. A purchaser of a qualifying owner, qualifying operator, or qualifying occupant's business or stock of goods in a qualifying data center or qualifying large data center project is subject to Tax Code, §111.020 (Tax Collection on Termination of Business).(l) Local tax. The state sales and use tax exemption for qualifying owners, qualifying operators, or qualifying occupant of a qualifying data center does not apply to local sales and use tax. Local sales and use tax must be paid on the purchase of any tangible personal property that qualifies for exemption from state sales and use tax under this section. This subsection is not applicable to qualifying large data center projects.(m) An entity that qualifies for the exemption under this section as a qualifying data center or qualifying large data center project is not eligible to receive a limitation on appraised value of property for ad valorem tax purposes under Tax Code, Chapter 313 (Texas Economic Development Act).",
            "sourceNote": "Source Note: The provisions of this §3.335 adopted to be effective February 26, 2014, 39 TexReg 1157; amended to be effective November 10, 2014, 39 TexReg 8742; amended to be effective March 19, 2017, 42 TexReg 1129; amended to be effective February 11, 2018, 43 TexReg 581."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=191458&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "191458",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.336",
                "label": "Currency, Certain Coins, and Gold, Silver, and Platinum Bullion"
            },
            "nextRule": {
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                "recordId": "133325",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Bullion--Gold, silver, or platinum that is formed into uniform shapes and quantities such as ingots, bars, or plates, with uniform content and purity, as are suitable for or customarily used in the purchase, sale, storage, transfer, and delivery of bulk or wholesale transactions in gold, silver, or platinum.(2) Currency--The coin and paper money of the United States or another country that is designated as legal tender and circulates and is customarily used and accepted as a medium of exchange in the country of issuance.(3) Numismatic coin--A coin that is not used as a medium of exchange or whose price depends more on characteristics such as beauty, rarity, and condition than on its metal content or its face value.(b) Taxability of sales of gold, silver, or numismatic coins, and gold, silver, or platinum bullion. Effective October 1, 2013, the sale of gold, silver, or numismatic coins or of gold, silver, or platinum bullion is exempted from Texas sales and use tax.(1) This exemption does not include gold, silver, or numismatic coins, or gold, silver, or platinum bullion in the form of jewelry or other items of adornment.(2) The purchase of a commodity contract for items exempt under this subsection is not a taxable transaction.(c) Taxability of currency exchanges. The exchange of currency for another form of currency based on an exchange rate is not a taxable transaction if the invoice, receipt, billing, sales slip or ticket, or contract issued to the customer identifies the exchange rate.(d) Taxability of the sale of certain paper money. The sale of paper money that is not currency is taxable as the sale of tangible personal property. Sales or use tax is due on the total sales price of the paper money.(e) Use of gold, silver, or numismatic coins or gold, silver, or platinum bullion to acquire taxable items. Persons who use gold, silver, or numismatic coins or gold, silver, or platinum bullion to acquire taxable items owe tax on the transaction based on the sales price of the taxable item.",
            "sourceNote": "Source Note: The provisions of this §3.336 adopted to be effective January 1, 1976; amended to be effective August 27, 1984, 9 TexReg 4344; amended to be effective June 7, 1987, 12 TexReg 1663; amended to be effective November 24, 1987, 12 TexReg 4198; amended to be effective August 10, 1990, 15 TexReg 4318; amended to be effective September 5, 2006, 31 TexReg 7133; amended to be effective July 12, 2018, 43 TexReg 4558."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=133325&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "133325",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.337",
                "label": "Gratuities"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=167951&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "167951",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Mandatory gratuity charge--Any amount required by the seller for the service of meals and food products for immediate consumption including soft drinks and candy.(2) Qualified employees--Employees who customarily and regularly provide the service upon which a gratuity is based, including, but not limited to, waiters, waitresses, busboys, service bartenders, wine stewards, and maitres d'hotel. The term does not include janitorial help, chefs, cashiers, or dishwashers.(3) Reasonable mandatory gratuity charge--Mandatory gratuity charges that do not exceed 20% of the sales price.(4) Total direct compensation--Total salaries paid to qualified employees. The term does not include other benefits paid or incurred on an employee's behalf, such as health and life insurance, sick leave, or vacation time.(5) Voluntary gratuity--A tip added to the bill at the suggestion of the purchaser or money given freely by the purchaser over and above the sales price.(b) Voluntary gratuities are excluded from the sales price of taxable items.(c) Mandatory gratuity charges.(1) Reasonable mandatory gratuity charges are excluded from the sales price of taxable items if they are:(A) separated from the sales price of the meal or food product served for immediate consumption;(B) identified as a tip or gratuity by any reasonable means, including such terms as service fee or service charge; and(C) disbursed to qualified employees. Any portion of a reasonable mandatory gratuity charge that is retained by the employer is subject to sales tax.(2) Mandatory gratuity charges in excess of 20%. If a mandatory gratuity charge exceeds 20% then the entire mandatory gratuity charge is subject to sales tax regardless of how the gratuity is disbursed.(d) Records. The employer must maintain records that demonstrate the amount of mandatory gratuity charges that have been disbursed to qualified employees. In order to comply with this requirement, the records must show:(1) the amount of mandatory gratuity charges collected from customers and the corresponding disbursements to each qualified employee; or(2) that the total direct compensation due all qualified employees equals or exceeds the total amount collected as mandatory gratuity charges.",
            "sourceNote": "Source Note: The provisions of this §3.337 adopted to be effective February 16, 2006, 31 TexReg 856; amended to be effective November 28, 2007, 32 TexReg 8521."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=167951&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "167951",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.338",
                "label": "Multistate Tax Credits and Allowance of Credit for Tax Paid to Suppliers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=152162&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "152162",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Multistate Tax Compact--The agreement between member states to promote uniform tax treatment and to avoid double taxation of multistate taxpayers, of which the State of Texas is a member, as provided for in Tax Code, Chapter 141.(2) Sales tax--A tax imposed on the transfer of title or possession of taxable items for consideration. See Tax Code, §151.005.(3) Use tax--This term has the meaning given in §3.346 of this title (relating to Use Tax). Use tax is complementary to the sales tax and is imposed on the storage, use, or other consumption of taxable items in this state.(b) Multistate tax credits.(1) As a member of the multistate tax compact, and as provided under Tax Code, §151.303(c), Texas will allow as a credit against Texas use tax due any combined amounts of legally imposed sales or use taxes paid on the same item to another state or any subdivision of another state. The credit will be allowed even though the other state may not be a member of the multistate tax compact.(2) The credit shall be applied first against the amount of any use tax due the state. Any remaining credit is then applied against the amount of local use tax due in the following order:(A) transit use tax, including use taxes imposed by a metropolitan transit authority, city transit department, county transit authority, advanced transportation district, or similar entity authorized to impose sales and use tax under the Transportation Code;(B) special purpose district use tax, including use taxes imposed by a fire control, prevention, and emergency services district, a crime control and prevention district, or any similar special purpose district created under Tax Code, Chapter 321 or 323;(C) county use taxes imposed under Tax Code, Chapter 323; and(D) municipal use tax imposed under Tax Code, Chapter 321, including additional municipal taxes adopted under Tax Code, §321.101(b).(3) The following example illustrates the manner in which the credit should be calculated and applied. A person buys a laptop computer in Oklahoma for $1300 and pays 5.0% sales tax. The purchaser then takes the computer to Dallas. Texas state and local use taxes are due on this purchase at the rate of 8.25%. The 8.25% use tax is based on 6.25% state tax, 1.0% Dallas city tax, and 1.0% Dallas MTA tax. The purchaser may receive a credit for the 5.0% tax that was paid to Oklahoma. A total of 3.25% Texas state and local tax is due (8.25% Texas state and local tax - 5.0% Oklahoma state and local sales tax = 3.25%). The credit is first applied to state use tax. Therefore, state use tax of 1.25% is due (6.25% Texas state use tax - 5.0% Oklahoma state and local tax = 1.25%). The amount due for Texas state use tax is $1300 x 1.25% = $16.25. The amount due for Dallas Metropolitan Transit Authority use tax is $1300 x 1.0% = $13.00. The amount due for Dallas city use tax is $1300 x 1.0% = $13.00.(4) Sales tax legally imposed by the State of Texas will not be refunded because of payment of a use tax imposed by another state.(5) Use tax collected by the State of Texas will be refunded or allowed as a credit on subsequent sales and use tax returns to the extent of a subsequent payment of use tax to another state, if the other state's use tax was imposed as a result of the taxable item's use in that state prior to its use in Texas.(6) Credit against use tax collected by the State of Texas will not be allowed for sales tax paid to another state that was not legally due and paid to another state.(7) Credit against the Texas use tax will not be allowed for any gross receipts tax imposed on retailers in another state, if that tax is not customarily separated from the sales price of taxable items, and is not customarily passed on directly to customers as tax, but, rather, is characterized as a reimbursement or recovery of the tax owed by the retailer.(c) Credit for tax paid to suppliers by permitted purchaser. General information about refund claims and credits that may be claimed in the context of a refund claim is located in §3.325 of this title (relating to Refunds and Payments Under Protest).(1) Credit may be claimed on a permitted purchaser's return for tax paid to suppliers in error.(A) Before taking a credit on a return, the permitted purchaser must have a receipt from a Texas retailer or other seller authorized to collect the Texas sales and use tax. The receipt must reflect the amount of tax paid and the selling price of the taxable item. Receipts from out-of-state sellers must identify the tax as Texas sales or use tax.(B) A credit must be claimed within the applicable statute of limitations. See §3.339 of this title (relating to Statute of Limitations).(C) Within the statute of limitations, a credit may be claimed on a return for a later reporting period or by filing an amended return for the reporting period in which the tax was paid in error.(2) A permitted purchaser may claim a credit for tax paid on the purchase of taxable items that were resold prior to the purchaser making a taxable use of the items.(3) Tax paid to a supplier on taxable items that the permitted purchaser does not resell but uses for an exempt purpose may be claimed as a credit on the purchaser's return. For example, a manufacturer who mistakenly pays tax to a supplier when purchasing manufacturing equipment that qualifies for exemption under Tax Code, §151.318 may claim a credit for the tax paid on that equipment.(4) Local sales and use tax credit may also be claimed. A permitted purchaser who claims a credit for local sales and use tax paid to a supplier is responsible for taking the credit against local tax to the same local taxing jurisdictions to which the supplier reported the tax.(d) Effect of a person's rights to other deductions. Nothing in this section shall be construed as limiting a person's right to the deductions for bad debts, repossessions, returned sales, or renegotiated selling price as provided in the Tax Code or other sections of this title.(e) Texas Emissions Reduction Plan Surcharge. Credit for tax paid to another state, governmental entity, or county is not allowed against the Texas Emissions Reduction Plan Surcharge imposed under Tax Code, §151.0515.",
            "sourceNote": "Source Note: The provisions of this §3.338 adopted to be effective December 6, 1996, 21 TexReg 11505; amended to be effective July 15, 2014, 39 TexReg 5427."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=152162&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "152162",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
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            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.339",
                "label": "Statute of Limitations"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209747&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
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                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Assessments.(1) Except as otherwise provided in this section, the comptroller has four years from the date a tax becomes due and payable to assess a deficiency tax liability. For information as to when a tax becomes due and payable, see §3.286 of this title (relating to Seller's and Purchaser's Responsibilities, including Nexus, Permits, Returns and Reporting Periods, Collection and Exemption Rules, and Criminal Penalties).(2) The statute of limitations does not apply and the comptroller may assess and collect taxes, penalties, and interest at any time against a taxpayer if:(A) the taxpayer files a false or fraudulent sales tax return with the intent to evade the tax;(B) the taxpayer fails to file a sales tax return; or(C) the taxpayer files a sales tax return that has a gross error. A gross error exists when the amount of tax due and payable, after the correction of error, exceeds the amount of tax reported on the return by at least 25%.(3) The statute of limitations does not apply to any period for which a taxpayer has filed a timely claim for a sales tax refund if, while investigating the merits of the refund claim, the comptroller determines that additional tax is due. The assessment for the additional tax determined to be due for that period must be made within four years from the date the claim for refund was filed.(b) Extension of limitations period. Before the expiration of the statute of limitations, the comptroller and a taxpayer may agree in writing to extend the limitation period in accordance with Tax Code, §111.203. An extension applies only to the periods specifically mentioned in the agreement and no single extension agreement may be for a period that exceeds 24 months from the date of the expiration of the period being extended. Any assessment or refund request pertaining to periods for which limitations have been extended must be made prior to the expiration date of the agreement. Following expiration of the agreement, the statute of limitations applies to subsequent assessments and refund requests as if no extension had been authorized.(c) Tolling of limitations. In computing the expiration date of a limitation period, the following periods are not considered:(1) the period following the date of the protest payment to the date of the timely filed lawsuit in district court suspends the statute of limitations for the same contested issues raised;(2) the period during which a judicial proceeding involving a protest suit is pending suspends the statute of limitations for the same contested issues raised;(3) the period during which an administrative redetermination or refund hearing is pending suspends the statute of limitations for the same contested issues raised; and(4) the period during which a bankruptcy proceeding commenced under United States Code, Title 11 is pending suspends the statute of limitations.(d) Refunds. For information on the statute of limitations for refunds, see §3.325(b) of this title (relating to Refunds and Payments Under Protest).(e) Successor liability. The comptroller may assess tax against the successor of a business if, at the time the business or stock of goods was acquired, the seller of the business had an outstanding sales tax liability with the state. The assessment must be made within four years from the date of the sale of the business to the successor or from the date a determination against the seller becomes final, whichever event occurs later. For information on successor liability, see §3.7 of this title (relating to Successor Liability: Liability Incurred by Purchase of a Business).(f) Suit for collection. Within three years from the date that a deficiency or jeopardy determination becomes due and payable, or within three years after the last recording of a lien, the comptroller may file suit for collection of the taxes, penalties and interest. If a redetermination hearing is requested, the determination will not become final until a redetermination decision is issued and becomes final.(g) Notice of delinquency. Within three years from the date that a deficiency determination becomes due and payable, a jeopardy determination becomes final, the last recording of a lien, or a redetermination decision becomes final, the comptroller may give notice of delinquency to all persons who have in their possession or under their control any credits or other personal property belonging to the delinquent, or who owe any debts to the delinquent.(h) Seizure. Within three years from the date that a deficiency determination becomes due and payable, a jeopardy determination becomes final, or a redetermination decision becomes final, the comptroller may seize any property of the delinquent and sell the property, or a sufficient part of it, at public auction to pay the taxes, penalties, and interest due.(i) Remedies cumulative. The remedies of the state are cumulative and no action taken by the comptroller or the attorney general constitutes an election by the state to pursue any remedy to the exclusion of any other remedy for which provision is made.",
            "sourceNote": "Source Note: The provisions of this §3.339 adopted to be effective July 19, 2011, 36 TexReg 4570."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209747&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "209747",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.340",
                "label": "Qualified Research"
            },
            "nextRule": {
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Business component--A business component is any product, process, computer software, technique, formula, or invention, which is to be held for sale, lease, or license, or used by the taxpayer in a trade or business of the taxpayer.(2) Combined group--Taxable entities that are part of an affiliated group engaged in a unitary business and that are required to file a combined group report under Tax Code, §171.1014 (Combined Reporting; Affiliated Group Engaged in Unitary Business). For more information about combined groups, see §3.590 of this title (relating to Margin: Combined Reporting).(3) Directly used in qualified research--Having an immediate use in qualified research activity, without an intervening or ancillary use.(4) Four-Part Test--The test described in IRC, §41(d) (Qualified research defined) that determines whether research activities are qualified research. The four parts of the test are the Section 174 Test, the Discovering Technological Information Test, the Business Component Test, and the Process of Experimentation Test.(5) Franchise tax research and development activities credit--A credit against franchise tax for qualified research activities that is allowed under Tax Code, Chapter 171, Subchapter M (Tax Credit for Certain Research and Development Activities).(6) Internal Revenue Code (IRC)--The Internal Revenue Code of 1986 in effect on December 31, 2011, excluding any changes made by federal law after that date, but including any regulations adopted under the code applicable to the tax year to which the provisions of the code in effect on that date applied. A regulation adopted after December 31, 2011 is only included in this term to the extent that a taxpayer could have applied the regulation to the 2011 federal income tax year. Examples of treasury regulations included in this definition are:(A) Treasury Regulation, §1.174-2 (Definition of research and experimental expenditures) as contained in 26 CFR part 1 (revised as of July 21, 2014);(B) Treasury Regulation, §1.41-4 (Qualified research for expenditures paid or incurred in taxable years ending on or after December 31, 2003) as contained in 26 CFR part 1 (revised as of November 3, 2016), except for paragraph (c)(6) (Internal use software). For paragraph (c)(6), as provided in the last sentence of Treasury Regulation, §1.41-4 (e) (Effective/applicability dates), taxpayers may elect to follow either of the following versions of paragraph (c)(6):(i) Treasury Regulation, §1.41-4(c)(6) (Internal-use computer software) as contained in 26 CFR part 1 (revised as of April 1, 2003) and IRB 2001-5; or(ii) Proposed Treasury Regulation, §1.41-4(c)(6) (Internal use software for taxable years beginning on or after the December 31, 1985) as contained in IRB 2002-4.(7) Qualified research--This term has the meaning given in IRC, §41(d), except that the research must be conducted in Texas. Qualified research activities must satisfy each part of the Four-Part Test.(8) Registrant--A taxpayer who holds a Texas Qualified Research Registration Number issued by the comptroller.(9) Registration number--The Texas Qualified Research Registration Number issued by the comptroller to a taxpayer who submits the Texas Registration for Qualified Research and Development Sales Tax Exemption form.(10) Taxable entity--This term has the meaning given by Tax Code, §171.0002 (Definition of Taxable Entity).(b) Depreciable tangible personal property used in qualified research.(1) Subject to paragraph (2) of this subsection, the sale, storage, or use of tangible personal property is exempt from Texas sales and use tax if the property:(A) has a useful life that exceeds one year;(B) is subject to depreciation under:(i) generally accepted accounting principles; or(ii) IRC, §167 (Depreciation) or §168 (Accelerated cost recovery system); and(C) is sold, leased, rented to, stored, or used by a taxpayer engaged in qualified research; and(D) is directly used in qualified research. Depreciable tangible personal property is directly used in qualified research if it is used in the actual performance of activities that are part of the qualified research. For example, machinery, equipment, computers, software, tools, laboratory furniture such as desks, laboratory tables, stools, benches, and storage cabinets, and other tangible personal property used by personnel in the process of experimentation are directly used in qualified research. Tangible personal property is not directly used in qualified research if it is used in ancillary or support activities such as administration, maintenance, marketing, distribution, or transportation activities, or if it is used in activities excluded from qualified research. For example, machinery and equipment used by administrative, accounting, or clerical personnel are not directly used in qualified research.(2) A taxpayer may not claim the exemption if that taxpayer will, as a taxable entity or as a member of a combined group, claim a franchise tax research and development activities credit on a franchise tax report based on the accounting period during which the depreciable tangible personal property used in qualified research would first be subject to Texas sales or use tax.(3) A claim for a carryforward of an unused franchise tax research and development activities credit under Tax Code, §171.659 (Carryforward) does not affect a taxpayer's ability, as a taxable entity or as a member of a combined group, to claim the sales and use tax exemption provided by paragraph (1) of this subsection.(4) Property satisfies paragraph (1)(B) of this subsection if it is subject to depreciation under generally accepted accounting principles, IRC, §167, or IRC, §168 even if the taxpayer does not actually depreciate that property.(5) Property satisfies paragraph (1) of this subsection only if it is tangible personal property subject to depreciation at the time a taxpayer purchases it. For example, assume a taxpayer purchases tangible personal property that is not subject to depreciation. The taxpayer later incorporates that property into real property that is subject to depreciation. Although the real property with the incorporated tangible personal property is subject to depreciation, the tangible personal property, on its own, was never subject to depreciation. The tangible personal property does not satisfy paragraph (1) of this subsection because it was never subject to depreciation as tangible personal property.(6) A taxpayer has the burden of establishing its entitlement to the exemption by clear and convincing evidence, including proof that the research activities meet the definition of qualified research and applying the shrink-back rule described in subsection (c)(3) of this section. All qualified research activities must be supported by contemporaneous business records.(7) An Internal Revenue Service audit determination of eligibility for the federal research and development credit under IRC, §41 (Credit for increasing research activities), whether that determination is that the taxpayer qualifies or does not qualify for the federal research and development credit, is not binding on the comptroller's determination of eligibility for the exemption.(c) Application of the Four-Part Test. Research activities must satisfy each part of the Four-Part Test, as described in paragraph (1) of this subsection, to be qualified research.(1) Four-Part Test.(A) Section 174 Test. Expenditures related to the research must be eligible to be treated as expenses under IRC, §174 (Research and experimental expenditures).(i) Expenditures are eligible to be treated as expenses under IRC, §174, if the expenditures are incurred in connection with the taxpayer's trade or business and represent a research and development cost in the experimental or laboratory sense. Expenditures represent research and development costs in the experimental or laboratory sense if they are for activities intended to discover information that would eliminate uncertainty concerning the development or improvement of a product. Uncertainty exists if the information available to the taxpayer does not establish the capability or method for developing or improving the product or the appropriate design of the product.(ii) For the purposes of this test, the term \"product\" includes any pilot model, process, formula, invention, technique, patent, or similar property, and includes products to be used by the taxpayer in its trade or business as well as products to be held for sale, lease, or license.(iii) Expenditures for the following are not eligible to be treated as expenses under IRC, §174:(I) land;(II) depreciable property;(III) the ordinary testing or inspection of materials or products for quality control;(IV) efficiency surveys;(V) management studies;(VI) consumer surveys;(VII) advertising or promotions;(VIII) the acquisition of another's patent, model, production, or process; or(IX) research in connection with literary, historical, or similar projects.(iv) Although expenditures for depreciable property are not eligible to be treated as expenditures under IRC, §174, those expenditures qualify for the purposes of the sales tax research and development exemption, provided that the research activities otherwise satisfy the Four-Part Test and are not excluded under subsection (d) of this section.(B) Discovering Technological Information Test. The research must be undertaken for the purpose of discovering information that is technological in nature.(i) Research is undertaken for the purpose of discovering technological information if it is intended to eliminate uncertainty concerning the development or improvement of a business component. Uncertainty exists if the information available to the taxpayer does not establish the capability or method for developing or improving the business component, or the appropriate design of the business component.(ii) In order to satisfy the requirement that the research is technological in nature, the process of experimentation used to discover information must fundamentally rely on principles of the physical or biological sciences, engineering, or computer science. A taxpayer may employ existing technologies and may rely on existing principles of the physical or biological sciences, engineering, or computer science to satisfy this requirement.(iii) A determination that research is undertaken for the purpose of discovering information that is technological in nature does not require that the taxpayer:(I) seek to obtain information that exceeds, expands, or refines the common knowledge of skilled professionals in the particular field of science or engineering in which the taxpayer is performing the research; or(II) succeed in developing a new or improved business component.(C) Business Component Test. The application of the technological information for which the research is undertaken must be intended to be useful in the development of a new or improved business component of the taxpayer, which may include any product, process, computer software, technique, formula, or invention that is to be held for sale, lease, or license, or used by the taxpayer in a trade or business of the taxpayer.(i) If a taxpayer provides a service to a customer, the service provided to that customer is not a business component because a service is not a product, process, computer software, technique, formula, or invention. However, a product, process, computer software, technique, formula, or invention used by a taxpayer to provide services to its customers may be a business component.(ii) A design is not a business component because a design is not a product, process, computer software, technique, formula, or invention. While uncertainty as to the appropriate design of a business component is a qualifying uncertainty for the Section 174 Test and the Discovering Technological information test, the design itself is not a business component. For example, the design of a structure is not a business component, although the structure itself may be a business component. Similarly, a blueprint or other plan used to construct a structure that embodies a design is not a business component.(D) Process of Experimentation Test. Substantially all of the research activities must constitute elements of a process of experimentation for a qualified purpose. A process of experimentation is undertaken for a qualified purpose if it relates to a new or improved function, performance, reliability, or quality of a business component. Any research relating to style, taste, cosmetic, or seasonal design factors does not satisfy the Process of Experimentation Test.(i) A process of experimentation is a process designed to evaluate one or more alternatives to achieve a result where the capability or the method of achieving that result, or the appropriate design of that result, is uncertain as of the beginning of the taxpayer's research activities.(ii) A process of experimentation must:(I) be an evaluative process and generally should be capable of evaluating more than one alternative; and(II) fundamentally rely on the principles of the physical or biological sciences, engineering, or computer science and involve:(-a-) the identification of uncertainty concerning the development or improvement of a business component;(-b-) the identification of one or more alternatives intended to eliminate that uncertainty; and(-c-) the identification and the conduct of a process of evaluating the alternatives through, for example, modeling, simulation, or a systematic trial and error methodology.(iii) A taxpayer may undertake a process of experimentation if there is no uncertainty concerning the taxpayer's capability or method of achieving the desired result so long as the appropriate design of the desired result is uncertain as of the beginning of the taxpayer's research activities. Uncertainty concerning the development or improvement of the business component (e.g., its appropriate design) does not establish that all activities undertaken to achieve that new or improved business component constitute a process of experimentation.(iv) The substantially all requirement of this subparagraph is satisfied only if 80% or more of a taxpayer's research activities, measured on a cost or other consistently applied reasonable basis constitute elements of a process of experimentation that relates to a new or improved function, performance, reliability, or quality. The substantially all requirement is satisfied even if the remainder of a taxpayer's research activities with respect to the business component do not constitute elements of a process of experimentation that relates to a new or improved function, performance, reliability, or quality.(v) Non-experimental methods, such as simple trial and error, brainstorming, or reverse engineering, are not considered a process of experimentation.(vi) The following are factors that may be considered in determining whether a trial and error methodology is experimental systematic trial and error or non-experimental simple trial and error. Evidence provided to determine the type of trial and error is not limited to these factors, nor is evidence of each factor required. These factors only apply to determining whether a process of experimentation is systematic trial and error. Systematic trial and error is not the only qualifying process of experimentation. These factors are:(I) whether the person conducting the trial and error methodology stops testing alternatives once a single acceptable result is found or continues to find multiple acceptable results for comparison;(II) whether all the results of the trial and error methodology are recorded for evaluation;(III) whether there is a written procedure for conducting the trial and error methodology; and(IV) whether there is a written procedure for evaluating the results of the trial and error methodology.(vii) Examples.(I) Example 1. A taxpayer is engaged in the business of developing and manufacturing widgets. The taxpayer wants to change the color of its blue widget to green. The taxpayer obtains several different shades of green paint from various suppliers. The taxpayer paints several sample widgets, and surveys its customers to determine which shade of green its customers prefer. The taxpayer's activities to change the color of its blue widget to green do not satisfy the Process of Experimentation Test because its activities are not undertaken for a qualified purpose. All of the taxpayer's research activities are related to style, taste, cosmetic, or seasonal design factors.(II) Example 2. The taxpayer in Example 1 chooses one of the green paints. The taxpayer obtains samples of the green paint from a supplier and determines that it must modify its painting process to accommodate the green paint because the green paint has different characteristics from other paints it has used. The taxpayer obtains detailed data on the green paint from its paint supplier. The taxpayer also consults with the manufacturer of its paint spraying machines. The manufacturer informs the taxpayer that it must acquire new nozzles that operate with the green paint it wants to use because the current nozzles do not work with the green paint. The taxpayer tests the new nozzles, using the green paint, to ensure that they work as specified by the manufacturer of the paint spraying machines. The taxpayer's activities to modify its painting process are not qualified research. The taxpayer did not conduct a process of evaluating alternatives in order to eliminate uncertainty regarding the modification of its painting process. Rather, the manufacturer of the paint machines eliminated the taxpayer's uncertainty regarding the modification of its painting process. The taxpayer's activities to test the nozzles to determine if the nozzles work as specified by the manufacturer of the paint spraying machines are in the nature of routine or ordinary testing or inspection for quality control.(III) Example 3. A taxpayer is engaged in the business of manufacturing food products and currently manufactures a large-shred version of a product. The taxpayer seeks to modify its current production line to permit it to manufacture both a large-shred version and a fine-shred version of one of its food products. A smaller, thinner shredding blade capable of producing a fine-shred version of the food product is not commercially available. Thus, the taxpayer must develop a new shredding blade that can be fitted onto its current production line. The taxpayer is uncertain concerning the design of the new shredding blade because the material used in its existing blade breaks when machined into smaller, thinner blades. The taxpayer engages in a systematic trial and error process of analyzing various blade designs and materials to determine whether the new shredding blade must be constructed of a different material from that of its existing shredding blade and, if so, what material will best meet its functional requirements. The taxpayer's activities to modify its current production line by developing the new shredding blade satisfy the Process of Experimentation Test. Substantially all of the taxpayer's activities constitute elements of a process of experimentation because it evaluated alternatives to achieve a result where the method of achieving that result, and the appropriate design of that result, were uncertain as of the beginning of the taxpayer's research activities. The taxpayer identified uncertainties related to the development of a business component, and identified alternatives intended to eliminate these uncertainties. Furthermore, the taxpayer's process of evaluating identified alternatives was technological in nature and was undertaken to eliminate the uncertainties.(IV) Example 4. A taxpayer is in the business of designing, developing and manufacturing automobiles. In response to government-mandated fuel economy requirements, the taxpayer seeks to update its current model vehicle and undertakes to improve aerodynamics by lowering the hood of its current model vehicle. The taxpayer determines, however, that lowering the hood changes the air flow under the hood, which changes the rate at which air enters the engine through the air intake system, which reduces the functionality of the cooling system. The taxpayer's engineers are uncertain how to design a lower hood to obtain the increased fuel economy, while maintaining the necessary air flow under the hood. The taxpayer designs, models, simulates, tests, refines, and re-tests several alternative designs for the hood and associated proposed modifications to both the air intake system and cooling system. This process enables the taxpayer to eliminate the uncertainties related to the integrated design of the hood, air intake system, and cooling system. Such activities constitute 85% of its total activities to update its current model vehicle. The taxpayer then engages in additional activities that do not involve a process of evaluating alternatives in order to eliminate uncertainties. The additional activities constitute only 15% of the taxpayer's total activities to update its current model vehicle. In this case substantially all of the taxpayer's activities constitute elements of a process of experimentation because it evaluated alternatives to achieve a result where the method of achieving that result, and the appropriate design of that result, were uncertain as of the beginning of its research activities. The taxpayer identified uncertainties related to the improvement of a business component and identified alternatives intended to eliminate these uncertainties. Furthermore, the taxpayer's process of evaluating the identified alternatives was technological in nature and was undertaken to eliminate the uncertainties. Because 85% of the taxpayer's activities to update its current model vehicle constitute elements of a process of experimentation that relates to a new or improved function, performance, reliability, or quality, all of its activities satisfy the Process of Experimentation Test.(V) Example 5. A taxpayer is in the business of providing building and construction services, including the construction of warehouses, strip malls, office buildings, and other commercial structures. The taxpayer is engaged to construct a structure in a part of Texas where foundation problems are common. The taxpayer's engineers were uncertain how to design the structure to ensure stability of the structure's foundation because the taxpayer had never designed a structure in a similar location. The taxpayer's engineers used their professional experience and various building codes to determine how to design the foundation based on the conditions at the construction site. The engineers chose to use piles in the foundation. The taxpayer constructed a test pile on site to confirm whether this would work in the conditions present on the construction site. This test pile would become part of the foundation of the structure regardless of whether the engineers had to redesign the additional piles required for the foundation. The taxpayer's activities in using professional experience and business codes to design the foundation did not meet the Process of Experimentation Test because the activities did not resolve technological uncertainties through an experimental process. Constructing the test pile also did not meet the Process of Experimentation Test because it was not an evaluative process.(VI) Example 6. A taxpayer is in the business of providing building and construction services, including the construction of warehouses, strip malls, office buildings, and other commercial structures. For one of its projects to construct an office building, the taxpayer was uncertain how to design the layout of the electrical systems. The taxpayer's employees held on-site meetings to discuss different options, such as running the wire under the floor or through the ceiling, but did not actually experiment by installing wire in different locations. The taxpayer used computer-aided simulation and modeling to produce the final electrical system layout. While in some cases computer-aided simulation and modeling may be an experimental process, in this case, it was not an experimental process because the taxpayer did not use the computer-aided simulation and modeling to evaluate different alternatives in a scientific manner. The taxpayer's activities did not satisfy the Process of Experimentation Test because it did not conduct an experimental process of evaluating alternatives to eliminate a technological uncertainty.(VII) Example 7. A taxpayer is an oil and gas operator that recently acquired rights to drill in an area in which it had not previously operated. The taxpayer decided to use horizontal drilling in this area, but it had never drilled a horizontal well and was uncertain how to successfully execute the horizontal drilling. At the time the taxpayer began horizontal drilling, the technology to drill horizontal wells was established. The taxpayer selected technology from existing commercially available options to use in its horizontal drilling program. The taxpayer's activities did not satisfy the Process of Experimentation Test because evaluating commercially available options does not constitute a process of experimentation.(VIII) Example 8. A taxpayer is an oil and gas operator that recently acquired rights to drill in an area in which it had not previously operated. The taxpayer decided to use horizontal drilling in this area. The taxpayer had drilled a horizontal well before in a different formation and at different depths. However, it had never drilled a horizontal well in this formation or at the required depths and was uncertain how to successfully execute the horizontal drilling. The taxpayer utilized its existing technology to perform its horizontal drilling operations in this area and the existing technology was successful. The taxpayer's activities did not satisfy the Process of Experimentation Test because the taxpayer merely used its existing technology and did not perform any experimentation to evaluate alternative any drilling methods.(IX) Example 9. A taxpayer sought to discover cancer immunotherapies. The taxpayer was uncertain as to the appropriate design of the proteins to be used as a drug candidate. The taxpayer identified several alternative protein constructs and used a process to test them. The taxpayer's process involved testing the constructs using in vitro functional assays and binding assays, and either modifying the designs or discarding them and repeating the previous steps. The taxpayer took the resulting products from the in vitro testing and tested the drug candidate in living organisms. This process evaluated the various alternatives identified by the taxpayer. The taxpayer's activities satisfied the Process of Experimentation Test.(2) Application of the Four-Part Test to business components. The Four-Part Test is applied separately to each business component of the taxpayer. Any plant process, machinery, or technique for commercial production of a business component is treated as a separate business component from the business component being produced.(3) Shrink-back rule. The Four-Part Test is first applied at the level of the discrete business component used by the taxpayer in a trade or business of the taxpayer. If the requirements of the Four-Part Test are not met at that level, then they are applied at the next most significant subset of elements of the business component. This shrinking back of the product continues until either a subset of elements of the product that satisfies the requirements of the Four-Part Test is reached, or the most basic element of the product is reached and such element fails to satisfy any part of the Four-Part Test.(4) Software development as qualified research. In determining if software development activities constitute qualified research, the comptroller shall consider the facts and circumstances of each activity.(A) Application of Four-Part Test to software development activities.(i) A taxpayer must prove that a software development activity is qualified research and meets all the requirements of the Four-Part Test under paragraph (1) of this subsection, even if the activity is likely to qualify as described in subparagraph (B) of this paragraph.(ii) A taxpayer may prove that a software development activity described as unlikely to qualify in subparagraph (C) of this paragraph, is qualified research by providing evidence that the activity meets all the requirements of the Four-Part Test under paragraph (1) of this subsection.(B) Software development activities likely to qualify. Types of activities likely to qualify include, but are not limited to:(i) developing the initial release of an application software product that includes new constructs, such as new architectures, new algorithms, or new database management techniques;(ii) developing system software, such as operating systems and compilers;(iii) developing specialized technologies, such as image processing, artificial intelligence, or speech recognition; and(iv) developing software as part of a hardware product where the software interacts directly with that hardware in order to make the hardware/software package function as a unit.(C) Software development activities unlikely to qualify. Types of activities unlikely to qualify include, but are not limited to:(i) maintaining existing software applications or products;(ii) configuring purchased software applications;(iii) reverse engineering of existing applications;(iv) performing studies, or similar activities, to select vendor products;(v) detecting flaws and bugs directed toward the verification and validation that the software was programmed as intended and works correctly;(vi) modifying an existing software business component to make use of new or existing standards or devices, or to be compliant with another vendor's product or platform;(vii) developing a business component that is substantially similar in technology, functionality, and features to the capabilities already in existence at other companies;(viii) upgrading to newer versions of hardware or software or installing vendor-fix releases;(ix) re-hosting or porting an application to a new hardware such as from mainframe to PC, or software platform, such as Windows to UNIX, or rewriting an existing application in a new language, such as rewriting a COBOL mainframe application in C++;(x) writing hardware device drivers to support new hardware, such as disks, scanners, printers, or modems;(xi) performing data quality, data cleansing, and data consistency activities, such as designing and implementing software to validate data fields, clean data fields, or make the data fields consistent across databases and applications;(xii) bundling existing individual software products into product suites, such as combining existing word processor, spreadsheet, and slide presentation software applications into a single suite;(xiii) expanding product lines by purchasing other products;(xiv) developing interfaces between different software applications;(xv) developing vendor product extensions;(xvi) designing graphic user interfaces;(xvii) developing functional enhancements to existing software applications/products;(xviii) developing software as an embedded application, such as in cell phones, automobiles, and airplanes;(xix) developing software utility programs, such as debuggers, backup systems, performance analyzers, and data recovery;(xx) changing from a product based on one technology to a product based on a different or newer technology; and(xxi) adapting and commercializing technology developed by a consortium or open software group.(d) Excluded research activities. Qualified research does not include the activities described in this subsection.(1) Research after commercial production. Any research conducted after the beginning of commercial production of the business component.(A) Activities are conducted after the beginning of commercial production of a business component if such activities are conducted after the component is developed to the point where it is ready for commercial sale or use or meets the basic functional and economic requirements of the taxpayer for the component's sale or use.(B) The following activities are deemed to occur after the beginning of commercial production of a business component:(i) preproduction planning for a finished business component;(ii) tooling-up for production;(iii) trial production runs;(iv) troubleshooting involving detecting faults in production equipment or processes;(v) accumulating data relating to production processes;(vi) debugging flaws in a business component; and(vii) any activities that involve the use of an item for which the taxpayer claimed the manufacturing exemption under Tax Code, §151.318.(C) In cases involving development of both a product and a manufacturing or other commercial production process for the product, the research after commercial production exclusion applies separately for the activities relating to the development of the product and the activities relating to the development of the process. For example, even after a product meets the taxpayer's basic functional and economic requirements, activities relating to the development of the manufacturing process may still constitute qualified research, provided that the development of the process itself separately satisfies the requirements of this section, and the activities are conducted before the process meets the taxpayer's basic functional and economic requirements or is ready for commercial use.(D) Clinical testing of a pharmaceutical product prior to its commercial production in the United States is not treated as occurring after the beginning of commercial production even if the product is commercially available in other countries. Additional clinical testing of a pharmaceutical product after a product has been approved for a specific therapeutic use by the Food and Drug Administration and is ready for commercial production and sale is not treated as occurring after the beginning of commercial production if such clinical testing is undertaken to establish new functional uses, characteristics, indications, combinations, dosages, or delivery forms for the product. A functional use, characteristic, indication, combination, dosage, or delivery form shall be considered new only if such functional use, characteristic, indication, combination, dosage, or delivery form must be approved by the Food and Drug Administration.(E) Examples.(i) Example 1. A taxpayer is a tire manufacturer and develops a new material to use in its tires. The taxpayer conducts research to determine the changes that will be necessary for it to modify its existing manufacturing processes to manufacture the new tire. The taxpayer determines that the new tire material retains heat for a longer period of time than the materials it currently uses for tires, and, as a result, the new tire material adheres to the manufacturing equipment during tread cooling. The taxpayer evaluates several alternatives for processing the treads at cooler temperatures to address this problem, including a new type of belt for its manufacturing equipment to be used in tread cooling. Such a belt is not commercially available. Because the taxpayer is uncertain of the belt design, it develops and conducts sophisticated engineering tests on several alternative designs for a new type of belt to be used in tread cooling until it successfully achieves a design that meets its requirements. The taxpayer then manufactures a set of belts for its production equipment, installs the belts, and tests the belts to make sure they were manufactured correctly. The taxpayer's research with respect to the design of the new belts to be used in its manufacturing of the new tire may be qualified research under the Four-Part Test. However, the taxpayer's expenses to implement the new belts, including the costs to manufacture, install, and test the belts were incurred after the belts met the taxpayer's functional and economic requirements and are excluded as research after commercial production.(ii) Example 2. For several years, a taxpayer has manufactured and sold a particular kind of widget. The taxpayer initiates a new research project to develop a new or improved widget. The taxpayer's activities to develop a new or improved widget are not excluded from the definition of qualified research under this paragraph. The taxpayer's activities relating to the development of a new or improved widget constitute a new research project to develop a new business component and are not considered activities conducted after the beginning of commercial production.(iii) Example 3. For the purposes of this example, assume that the taxpayer's development of its products and manufacturing processes satisfies the Four-Part Test described by subsection (c) of this section and is not otherwise excluded under this subsection. A taxpayer is a manufacturer of integrated circuits for use in specific applications. The taxpayer develops various integrated circuit devices and associated manufacturing processes. The taxable entity assembles various product configurations for testing. After an internal process of testing, the taxpayer delivers a sample quantity of the integrated circuit to a potential customer for further testing. At the time when the samples are delivered to the taxpayer's potential customer, the potential customer has not agreed to purchase any integrated circuits from the taxpayer. This process of testing by both the taxpayer and its potential customer continues until an acceptable product and manufacturing process to produce the product is achieved. At that point, the taxpayer and the potential customer enter an agreement for the delivery of an order of the integrated circuits. In some cases, no acceptable product or manufacturing process is achieved, and no agreement is reached with the potential customer. Research activities occurring prior to an agreement are not considered activities conducted after the beginning of commercial production because the integrated circuits were not yet ready for commercial use. Any research that occurs after an agreement is reached are excluded as activities conducted after the beginning of commercial production because the integrated circuits were ready for commercial use once the product and associated manufacturing process was accepted by the potential customer.(2) Adaptation of existing business components. Activities relating to adapting an existing business component to a particular customer's requirement or need. This exclusion does not apply merely because a business component is intended for a specific customer. For example:(A) Example 1. A taxpayer is a computer software development firm and owns a general ledger accounting software core program that it markets and licenses to customers. The taxpayer incurs expenditures in adapting the core software program to the requirements of one of its customers. Because the taxpayer's activities represent activities to adapt an existing software program to a particular customer's requirement or need, its activities are excluded from the definition of qualified research under this paragraph.(B) Example 2. Assume that the customer from Example 1 pays the taxpayer to adapt the core software program to the customer's requirements. Because the taxpayer's activities are excluded from the definition of qualified research, the customer's payments to the taxpayer are not for qualified research and are not considered to be contract research expenses.(C) Example 3. Assume that the customer from Example 1 uses its own employees to adapt the core software program to its requirements. Because the customer's employees' activities to adapt the core software program to its requirements are excluded from the definition of qualified research, the wages the customer paid to its employees do not constitute in-house research expenses.(D) Example 4. A taxpayer manufactures and sells rail cars. Because rail cars have numerous specifications related to performance, reliability and quality, rail car designs are subject to extensive, complex testing in the scientific or laboratory sense. A customer orders passenger rail cars from the taxpayer. The customer's rail car requirements differ from those of the taxpayer's other existing customers only in that the customer wants fewer seats in its passenger cars and a higher quality seating material and carpet that are commercially available. The taxpayer manufactures rail cars meeting the customer's requirements. The rail car sold to the customer was not a new business component, but merely an adaptation of an existing business component that did not require a process of experimentation. Thus, the taxpayer's activities to manufacture rail cars for the customer are excluded from the definition of qualified research because the taxpayer's activities represent activities to adapt an existing business component to a particular customer's requirement or need.(E) Example 5. A taxpayer is a manufacturer and undertakes to create a manufacturing process for a new valve design. The taxpayer determines that it requires a specialized type of robotic equipment to use in the manufacturing process for its new valves. Such robotic equipment is not commercially available. Therefore, the taxpayer purchases existing robotic equipment for the purpose of modifying it to meet its needs. The taxpayer's engineers identify uncertainty that is technological in nature concerning how to modify the existing robotic equipment to meet its needs. The taxpayer's engineers develop several alternative designs, conduct experiments using modeling and simulation in modifying the robotic equipment, and conduct extensive scientific and laboratory testing of design alternatives. As a result of this process, the taxpayer' s engineers develop a design for the robotic equipment that meets its needs. The taxpayer constructs and installs the modified robotic equipment on its manufacturing process. The taxpayer's research activities to determine how to modify the robotic equipment it purchased for its manufacturing process are not considered an adaptation of an existing business component.(F) Example 6. A taxpayer is an oil and gas operator and has been engaged in horizontal drilling for the past ten years. Recently, the taxpayer was hired by a customer to drill in a formation. The drilling objectives included targeting an interval within that formation for horizontal drilling. The taxpayer was uncertain about the successful execution of the horizontal drilling because it had not previously drilled a horizontal well in that formation. The taxpayer was also uncertain about the economic results from the targeted interval. The taxpayer drilled several horizontal wells before its customer was satisfied with the economic results. The taxpayer modified its existing horizontal drilling program based on these results. The taxpayer's activities to identify a horizontal drilling process are excluded from the definition of qualified research because the activities consisted of adapting an existing business component, its existing horizontal drilling process, and did not involve creating a new or improved business component.(G) Example 7. For the purposes of this example, assume that the taxpayer's development of its products satisfies the Four-Part Test described by subsection (c) of this section and is not otherwise excluded under this subsection. A taxpayer is a manufacturer of rigid plastic containers. The taxpayer contracts with major food and beverage manufacturers to provide suitable bottle and packaging designs. The products designed by the taxpayer may be for repeat customers and the sizes and types of bottle may be similar to previous products. The development of each new product, and the production process necessary to produce the products at sufficient production volume, starts from new concept drawings developed by engineers. The taxpayer uses a qualifying process of experimentation to evaluate alternative concepts for the product and production processes. The taxpayer's activities related to both the product and the production process are not excluded from the definition of qualified research as an adaptation of an existing business component.(3) Duplication of existing business component. Any research related to the reproduction of an existing business component, in whole or in part, from a physical examination of the business component itself or from plans, blueprints, detailed specifications, or publicly available information with respect to such business component. This exclusion does not apply merely because the taxpayer examines an existing business component in the course of developing its own business component.(4) Surveys, studies, etc. Any efficiency survey; activity relating to management function or technique; market research, testing or development (including advertising or promotions); routine data collection; or routine or ordinary testing or inspection for quality control.(5) Computer software. Any research activities with respect to internal use software.(A) For the purposes of this paragraph, internal use software is computer software developed by, or for the benefit of, the taxpayer primarily for internal use by the taxpayer.(B) This exclusion does not apply to software used in:(i) an activity that constitutes qualified research, or(ii) a production process that meets the requirements of the Four-Part Test.(6) Social sciences, etc. Any research in the social sciences, arts, or humanities.(7) Funded research. Any research funded by any grant, contract, or otherwise by another person or governmental entity.(A) Research is considered funded if:(i) the taxpayer performing the research for another person retains no substantial rights to the results of the research; or(ii) the payments to the researcher are not contingent upon the success of the research.(B) For the purposes of determining whether a taxpayer retains substantial rights to the results of the research:(i) Incidental benefits to the researcher from the performance of the research do not constitute substantial rights. For example, increased experience in a field of research is not considered substantial rights.(ii) A taxpayer does not retain substantial rights in the research it performs if the taxpayer must pay for the right to use the results of the research.(C) If a taxpayer performing research does not retain substantial rights to the results of the research, the research is considered funded regardless of whether the payments to the researcher are contingent upon the success of the research. In this case, all research activities are considered funded even if the researcher has expenses that exceed the amount received by the researcher for the research.(D) If a taxpayer performing research does retain substantial rights to the results of the research and the research is considered funded under subparagraph (A)(ii) of this paragraph, the research is only funded to the extent of the payments and fair market value of any property that the taxpayer becomes entitled to by performing the research. If the expenses related to the research exceed the amount the researcher is entitled to receive, the research is not considered funded with respect to the excess expenses. For example, a taxpayer performs research for another person. Based on the contract, the research activities are considered funded under subparagraph (A)(ii) of this paragraph because payments to the researcher are not contingent on the success of the research. The taxpayer retains substantial rights to the results of the research. The taxpayer is entitled to $100,000 under the contract but spent $120,000 on the research activities. In this case, the research is considered funded with respect to $100,000 and is not considered funded with respect to $20,000.(E) A taxpayer performing research for another person must identify any other person paying for the research activities and any person with substantial rights to the results of the research.(F) All agreements, not only research contracts, entered into between the taxpayer performing the research and the party funding the research shall be considered in determining the extent to which the research is funded.(G) The provisions of this paragraph shall be applied separately to each research project undertaken by the taxpayer.(e) Texas Qualified Research and Development Exemption Registration. In order to claim an exemption under this section, a taxpayer must first register with the comptroller and obtain a registration number.(1) Registration procedure. To obtain a registration number, a taxpayer must complete Form AP-234, Texas Registration for Qualified Research and Development Sales Tax Exemption, its electronic equivalent, or any form promulgated by the comptroller that succeeds such form.(A) The taxpayer requesting the registration number must certify that it will not, as a taxable entity or as a member of a combined group, claim a franchise tax research and development activities credit on a franchise tax report based on an accounting period during which it claims an exemption under subsection (b) of this section.(B) The taxpayer requesting the registration number must provide all data and information required by the comptroller to administer the exemption and comply with Tax Code, §151.3182(c) (Certain Property Used in Research and Development Activities; Reporting of Estimates and Evaluation).(2) Retroactive registration. A taxpayer may request that a registration number be given retroactive effect.(A) A taxpayer may request that a registration number have retroactive effect by following the procedures required under paragraph (1) of this subsection and by completing an annual information report, described in paragraph (3) of this subsection, for each prior year for which the registration number is to be effective.(B) The registration number may be made retroactive to the later of January 1, 2014, or a date requested by a registrant that is no more than four years prior to the date the registration is received, if the date requested is not within an accounting period during which the registrant, as a taxable entity or as a member of a combined group, claimed the franchise tax research and development activities credit.(C) A registrant who is issued a retroactive registration number may file a claim for refund of Texas sales and use tax paid on purchases made on or after the later of January 1, 2014, or the effective date of the registration number, that qualify for exemption under subsection (b) of this section, in accordance with the requirements of §3.325 of this title (relating to Refunds and Payments Under Protest).(D) A claim for a carryforward of an unused franchise tax research and development activities credit under Tax Code, §171.659 does not affect a taxpayer's ability, as a taxable entity or as a member of a combined group, to request a retroactive registration.(3) Annual information report. A registrant must submit an annual information report for each calendar year its registration number is effective, irrespective of the date on which the original registration occurred.(A) The registrant must provide all data and information required by the comptroller to administer the exemption and comply with Tax Code, §151.3182(c).(B) The annual information report must be submitted electronically unless the comptroller issues a waiver. A registrant who cannot comply with this requirement due to hardship, impracticality, or other valid reason must submit a written request to the comptroller for a waiver of the requirement.(C) The due date for the annual information report for the preceding calendar year is March 31. If March 31 falls on a Saturday, Sunday, or a legal holiday, the due date is the next business day.(i) An annual information report filed electronically must be completed and submitted by 11:59 p.m. central time on the due date to be considered timely.(ii) Reports submitted on paper must be postmarked on or before the due date to be considered timely.(D) A registrant who fails to timely file an annual information report for its registration number will be given written notice of the failure to file. If an annual information report is not submitted within 60 days of the date of the notice of failure to file, the registration number will be cancelled by the comptroller in accordance with paragraph (5) of this subsection.(4) Direct payment permit holders. A direct payment permit holder must obtain a registration number as required by paragraph (1) of this subsection in order to claim an exemption under this section. A direct payment permit holder with a registration number must file an annual information report for each year the number is effective as required by paragraph (3) of this subsection.(5) Cancellation of registration number by the comptroller. The comptroller will cancel the registration number of a registrant who fails to comply with the provisions of this section. For example, the comptroller may cancel the registration number of a registrant who fails to file an annual information report or who claims the franchise tax research and development activities credit without first cancelling its registration number, as required by paragraph (8) of this subsection. The comptroller shall give written notice of the cancellation to the registrant. The notice may be personally served on the registrant or sent by regular mail to the registrant's address as shown in the comptroller's records. The former registrant may not claim an exemption under this section during the period when the registration number is cancelled. A former registrant that purchases an item under a cancelled registration number may be subject to a criminal penalty under Tax Code, §151.707 (Resale or Exemption Certificate; Criminal Penalty) and §3.287(d)(3) of this title (relating to Exemption Certificates).(6) Effective date of cancellation. A registrant whose registration number is cancelled by the comptroller is responsible for remitting Texas sales and use tax, and penalty and interest from the date of purchase, on any items purchased tax-free pursuant to Tax Code, §151.3182 on or after the effective date of cancellation. In the case of a registrant whose registration number is cancelled because of a failure to file an annual information report, the effective date of the cancellation is December 31 of the last year for which the registrant filed an annual information report. In the case of a registrant whose registration number is cancelled because the registrant, as a taxable entity or as a member of a combined group, claimed the franchise tax research and development activities credit, the effective date of cancellation is the beginning date of the accounting period covered by the franchise tax report on which the credit was claimed.(7) Reinstatement following cancellation. A former registrant who has had its registration number cancelled by the comptroller may submit a request in writing to have the registration number reinstated.(A) A former registrant whose registration number has been cancelled may request reinstatement of the number be given retroactive effect. The registrant must file an annual information report for each prior year for which the registration number is to be effective.(B) A registration number will not be reinstated for periods during which the former registrant is not eligible for the exemption under this section.(C) Before the comptroller will reinstate a registration number, the former registrant must remit any Texas sales and use taxes, as well as applicable penalties and interest from the date of purchase, on all purchases made tax-free under this section during periods when the registrant was not eligible for the exemption under this section.(8) Cancellation of registration number by registrant. A registrant who has received a registration number and subsequently chooses to claim the franchise tax research and development activities credit must cancel the registration number. The registrant is responsible for remitting Texas sales and use tax, and penalty and interest from the date of purchase, on any items purchased tax-free under this section during any accounting periods covered by a franchise tax report on which the credit is claimed.(f) Texas Qualified Research Sales and Use Tax Exemption Certificate. Beginning January 1, 2014, a retailer may accept a valid and complete Form 01-931, Texas Qualified Research Sales and Use Tax Exemption Certificate or any form promulgated by the comptroller or that succeeds such form, in lieu of Texas sales and use tax on the sale of depreciable tangible personal property that qualifies for exemption under subsection (b) of this section. To be valid and complete, a Texas Qualified Research Sales and Use Tax Exemption Certificate must bear the registration number issued to the registrant by the comptroller and must be signed by the registrant or the registrant's authorized agent. Texas Qualified Research Sales and Use Tax Exemption Certificates are subject to the requirements of §3.287(d) of this title. A retailer must maintain a copy of the Texas Qualified Research Sales and Use Tax Exemption Certificate accepted in lieu of tax on a sale and all records supporting that transaction. Refer to §3.281 of this title (relating to Records Required; Information Required).(g) Divergent use. When a registrant uses an item purchased under a valid Texas Qualified Research Sales and Use Tax Exemption Certificate in a taxable manner, the registrant is liable for payment of Texas sales and use tax, plus penalty and interest as applicable, based on the fair market rental value of the tangible personal property for the period of time used in the taxable manner. This subsection applies to an item that is used for any purpose other than for use in qualified research, whether that use occurs before, during, or after the time when the item is used in qualified research. Refer to Tax Code, §151.155 (Exemption Certificate).(h) Refund of Texas sales and use tax paid on depreciable tangible personal property used in qualified research. A registrant with a valid registration number may file a claim for refund of Texas sales and use tax paid on purchases made on or after the later of January 1, 2014, or the effective date of the registration number, that qualify for exemption under subsection (b) of this section in accordance with the requirements of §3.325 of this title.(i) Effective dates.(1) The provisions of this section apply to the sale, storage, or use of tangible personal property occurring on or after January 1, 2014.(2) The sales and use tax exemption for depreciable tangible personal property used in qualified research expires on December 31, 2026.",
            "sourceNote": "Source Note: The provisions of this §3.340 adopted to be effective November 30, 2015, 40 TexReg 8663; amended to be effective October 24, 2021, 46 TexReg 7048; amended to be effective August 4, 2022, 47 TexReg 4556."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=80674&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "80674",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.342",
                "label": "Information Services"
            },
            "nextRule": {
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                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Data processing services -- Processing, reformatting, or manipulating data provided by the customer is data processing and is not included in the definition of information services.(2) Information services -- Furnishing general or specialized news or other current information, including financial information, by printed, mimeographed, electronic, or electrical transmission, or by utilizing wires, cable, radio waves, microwaves, satellites, fiber optics, or any other method now in existence or which may be devised, and electronic data retrieval or research. The term information services does not include Internet access service or information services that are provided in conjunction with and merely incidental to the provision of Internet access service when provided for a single charge.(3) Internet -- collectively the myriad of computer and telecommunications facilities, including equipment and operating software, that comprise the interconnected worldwide network of networks that employ the Transmission Control Protocol/Internet Protocol, or any predecessor or successor protocols to the protocol, to communicate information of all kinds by wire or radio.(4) Internet access service -- a service that enables users to access content, information, electronic mail, or other services offered over the Internet and may also include access to proprietary content, information, and other services as part of a package of services offered to consumers. Internet access service does not include any other taxable service, unless the taxable service is provided in conjunction with and is merely incidental to the provision of Internet access service. Individuals providing Internet access should refer to §3.366 of this title (relating to Internet Access Services).(5) Nontaxable information services.(A) The sale of information that is gathered or compiled on behalf of a particular client is not subject to tax if the information is of a proprietary nature to that client and may not be sold to others by the person who gathered or compiled the information. Any subsequent sale of such information by the client for whom the information was gathered or compiled is subject to tax. Examples include opinion polls and management consultant reports.(B) Any sale of information primarily derived from laboratory, medical, or exploratory testing or experimentation or any similar method of direct scientific observation of physical phenomena is not subject to tax. Examples include, but are not limited to, geophysical survey information, polygraph test, and medical test results.(C) Information required to be furnished pursuant to the Open Records Act is not subject to sales tax. See §3.341 of this title (relating to Sales of Governmental Publications, Records, or Documents). Fees paid when obtaining these documents may be excluded from the tax base if separately stated when the documents are furnished to clients. Tax will only be due on the amount over and above the cost of the documents.(6) Taxable information services. Information that is gathered, maintained, or compiled and made available by the provider of the information service to the public or to a specific segment of industry for a consideration is subject to sales tax. Examples of taxable information services include, but are not limited to, the following:(A) newsletters;(B) scouting reports and surveys, including those used in sports and the oil and gas and related industries;(C) mailing lists, and bad check lists (only that percentage which represents names of persons located in Texas is taxable);(D) real estate listings;(E) financial, investment, stock market, or bond rating, or financial reports, other than charges to a person by a financial institution for account balance information;(F) news clipping services and wire services; and(G) abstracts of title and other information provided by title plants.(b) Hold permits. All providers of information services must obtain Texas sales and use tax permits and collect tax on charges for information services, or accept properly completed resale, exemption, or direct payment permit certificates in lieu of collecting tax. See §3.285 of this title (relating to Resale Certificate; Sales for Resale); §3.287 of this title (relating to Exemption Certificates); §3.288 of this title (relating to Direct Payment Procedures and Qualifications). Effective October 1, 1999, 20% of the total amount charged for information services is exempted from sales and use tax. The exemption applies to services performed on or after October 1, 1999. The exemption does not apply to services performed before the effective date and billed or paid for after the effective date of the exemption.(c) Exempt information services. Sales tax is not due on information services sold to a newspaper or to a radio or television station licensed by the Federal Communications Commission, if an exemption certificate is obtained. The exemption certificate must state that the purchaser is a newspaper with a general circulation published at least as frequently as weekly, or is a station licensed by the Federal Communications Commission.(d) Resale certificates.(1) Providers of information service may issue a resale certificate in lieu of tax to suppliers of tangible personal property only if care, custody, and control of the property will be transferred to the service provider's client. For example, an information provider purchases magnetic tape to transfer information to customers. The tape is transferred to the customer, and the customer owns and uses the tape to review the information. The information provider may purchase the tape tax free by issuing a resale certificate. Tax is due on the total amount charged the customer, including amounts for the tape and for the services.(2) A resale certificate may be issued for a service if the buyer intends to transfer the service as an integral part of taxable services. A service will be considered an integral part of a taxable service if the service purchased is essential to the performance of the taxable service and without which the taxable service could not be rendered.(3) A resale certificate may be issued for a taxable service if the buyer intends to incorporate the service into tangible personal property which will be resold. If the entire service is not incorporated into the tangible personal property, it will be presumed the service is subject to tax and the service will only be exempt to the extent the buyer can establish the portion of the service actually incorporated into the tangible personal property. If the buyer does not intend to incorporate the entire service into the tangible personal property, no resale certificate may be issued, but credit may be claimed at the time of sale of the tangible personal property to the extent the service was actually incorporated into the tangible personal property.(e) Unrelated services.(1) A service will be considered as unrelated if:(A) it is not an information service nor a service taxed under other provisions of the Tax Code, Chapter 151;(B) it is of a type which is commonly provided on a stand-alone basis; and(C) the performance of the unrelated service is distinct and identifiable. Examples of an unrelated service which may be excluded from the tax base include consultation, training, expedited filing charges, escrow fees, or charges for proprietary information.(2) Where nontaxable unrelated services and taxable services are sold or purchased for a single charge and the portion relating to taxable services represents more than 5.0% of the total charge, the total charge is presumed to be taxable. The presumption may be overcome by the information provider at the time the transaction occurs by separately stating to the customer a reasonable charge for the taxable services. However, if the charge for the taxable portion of the services is not separately stated at the time of the transaction, the service provider or the purchaser may later establish for the comptroller, through documentary evidence, the percentage of the total charge that relates to nontaxable unrelated services. The information provider's books must support the apportionment between exempt and nonexempt activities based on the cost of providing the service or on a comparison to the normal charge for each service if provided alone. If the charge for exempt services is unreasonable when the overall transaction is reviewed considering the cost of providing the service or a comparable charge made in the industry for each service, the comptroller will adjust the charges and assess additional tax, penalty, and interest on the taxable services.(3) Charges for services or expenses directly related to and incurred while providing the taxable service are taxable and may not be separated for the purpose of excluding these charges from the tax base. Examples would be charges for meals, telephone calls, hotel rooms, or airplane tickets.(f) Service benefit location. If both the information service provider and the customer are located in Texas, Texas tax is due.(g) Service benefit location - multistate customer.(1) To the extent information service is used to support a separate, identifiable segment of a customer's business (other than general administration or operation of the business) the service is presumed to be used at the location where that part of the business is conducted.(2) If that part of the business is conducted at locations both within and outside the state, the service is not taxable to the extent it is used outside Texas. A multistate customer may use any reasonable method for allocation which is supported by business records.(3) A multistate customer purchasing information services for the benefit of both in-state and out-of-state locations is responsible for issuing to the information service provider an exemption certificate asserting a multistate benefit, and for reporting and paying the tax on that portion of the charge for information which will benefit the Texas location. An information provider that accepts such a certificate in good faith is relieved of responsibility for collecting and remitting tax on transactions to which the certificate relates.(4) The customer's books must support the assignment of the service to an identifiable segment of the business, the determination of the location or locations of the use of the service, and the allocation of the taxable charge to Texas.(5) To the extent the use of the service cannot be assigned to an identifiable segment of a customer's business, the service is presumed to be used to support the administration or operation of the customer's business generally. The service is presumed to be used at the customer's principal place of business. The principal place of business means the place from which the trade or business is directed or managed.(h) Local taxes.(1) For local sales tax purposes, city, county, transit authority, and special purpose district sales taxes are due if an information provider has only one place of business (the location where clients request service) within the boundaries of a local taxing entity. Local sales tax must be collected based on the tax rate at that location, except that no MTA or CTD sales tax is due on services provided at a location outside the boundaries of the transit area. In the case of multiple locations, if an order for service is placed at one location but the service is provided at another location, the place of business from which the service is provided will determine to which local taxing entity the tax is allocated.(2) If a place of business is outside the boundaries of a local taxing entity, the information provider will be required to collect local use tax if the client is within the local taxing entity and the information provider has representation in the local taxing entity as outlined in §3.286 of this title (relating to Seller's and Purchaser's Responsibilities). Even if the information provider is not required to collect local use tax, the client is still liable for the tax if the service is performed or a benefit is derived from the service within the boundaries of a local taxing entity.(A) An in-state customer purchasing information services for the benefit of locations in more than one local taxing entity is responsible for issuing to the information provider an exemption certificate asserting a multi-city benefit and for determining the extent of benefit for each entity. The local tax for each entity must be reported, allocated, and paid by the customer. An information provider that accepts in good faith an exemption certificate claiming a multi-city benefit is relieved of responsibility for collecting and remitting local tax on transactions to which the certificate relates.(B) A multistate customer purchasing information services for the benefit of both in-state and out-of-state locations is responsible for issuing an exemption certificate and for reporting and paying local tax as provided by subsection (f)(3) and (4) of this section.(i) Use tax. If an information provider is not doing business in Texas or in specific local taxing jurisdictions and is not required to collect Texas state or local tax, it is the Texas customer's responsibility to report the state and local use tax directly to this office.",
            "sourceNote": "Source Note: The provisions of this §3.342 adopted to be effective March 25, 1988, 13 TexReg 1192; amended to be effective November 13, 1989, 14 TexReg 5787; amended to be effective March 23, 1995, 20 TexReg 1749; amended to be effective August 24, 2000, 25 TexReg 8049."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=28633&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "28633",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.343",
                "label": "Credit Reporting Services"
            },
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                "recordId": "227299",
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Credit report--Any written, oral or other compilation of any credit history or other information bearing on a person's credit worthiness, credit standing, credit capacity, or insurability, including information concerning character, general reputation and, if an individual, personal characteristics, medical information, or mode of living.(2) Credit reporting services--The assembly or furnishing, for monetary fees, dues, or other consideration, of a credit report or any part of a credit report.(b) Responsibilities of persons providing credit reporting services.(1) Sales tax is due and must be collected on the total charge for credit reporting activities when:(A) the address of the credit applicant (the subject of the credit report) at the time of the request for a report is in Texas; and(B) the person who requested the credit report is located in Texas or is doing business in Texas as provided in the Tax Code, §151.107. Credit card companies are considered to be doing business in Texas if the financial institution issuing the card is doing business in Texas or if the credit card company is otherwise doing business in Texas.(2) If a seller of a service is not doing business in Texas and is not required to collect Texas tax, it is the Texas customer's responsibility to report the tax directly to this office.(3) Persons providing credit reporting services must obtain a tax permit and collect tax on the entire sales price of their service.(c) Resale certificates.(1) Providers of credit reporting service may issue a resale certificate in lieu of tax to suppliers of tangible personal property only if care, custody, and control of the property is transferred to the client. For example, a taxpayer purchases magnetic tape to transfer the results of a credit report to customers. The tape is transferred to the customer, and the customer owns and uses the tape to review the results of the credit reporting service. Taxpayer may purchase the tape tax free by issuing a resale certificate. Tax is due on the total amount charged the customer, including amounts for the tape and for the services.(2) A resale certificate may be issued for a service if the buyer intends to transfer the service as an integral part of taxable services. A service will be considered an integral part of a taxable service if the service purchased is essential to the performance of the taxable service and without which the taxable service could not be rendered.(3) A resale certificate may be issued for a taxable service if the buyer intends to incorporate the service into tangible personal property which will be resold. If the entire service is not incorporated into the tangible personal property, it will be presumed the service is subject to tax and the service will only be exempt to the extent the buyer can establish the portion of the service actually incorporated into the tangible personal property. If the buyer does not intend to incorporate the entire service into the tangible personal property, no resale certificate may be issued, but credit may be claimed at the time of sale of the tangible personal property to the extent the service was actually incorporated into the tangible personal property.(4) Persons providing credit reporting services may accept a valid exemption certificate in lieu of tax when performing a taxable service for an exempt entity. See §3.322 of this title (relating to Exempt Organizations).(d) Unrelated services.(1) A service will be considered as unrelated if:(A) it is not a credit reporting service nor a service taxed under other provisions of the Tax Code, Chapter 151;(B) it is of a type which is commonly provided on a stand-alone basis; and(C) the performance of the unrelated service is distinct and identifiable. Examples of an unrelated service which may be excluded from the tax base include consultation, training, and charges for proprietary information.(2) Where nontaxable unrelated services and taxable services are sold or purchased for a single charge and the portion relating to taxable services represents more than 5.0% of the total charge, the total charge is presumed to be taxable. The presumption may be overcome by the provider of credit reporting services at the time the transaction occurs by separately stating to the customer a reasonable charge for the taxable services. However, if the charge for the taxable portion of the services is not separately stated at the time of the transaction, the service provider or the purchaser may later establish for the comptroller, through documentary evidence, the percentage of the total charge that relates to nontaxable unrelated services. The service provider's books must support the apportionment between exempt and nonexempt activities based on the cost of providing the service or on a comparison to the normal charge for each service if provided alone. If the charge for exempt services is unreasonable when the overall transaction is reviewed considering the cost of providing the service or a comparable charge made in the industry for each service, the comptroller will adjust the charges and assess additional tax, penalty, and interest on the taxable services.(3) Charges for services or expenses directly related to and incurred while providing the taxable service are taxable and may not be separated for the purpose of excluding these charges from the tax base. Examples would be charges for meals, telephone calls, hotel rooms, or airplane tickets.(e) Service benefit location. If both the credit grantor and the credit applicant are located in Texas, Texas sales tax is due.(f) Service benefit location--multistate customer.(1) To the extent a credit reporting service is used to support a separate, identifiable segment of a customer's business (other than general administration or operation of the business) the service is presumed to be used at the location where that part of the business is conducted.(2) If that part of the business is conducted at locations both within and outside the state, the service is not taxable to the extent it is used outside Texas. A multistate customer may use any reasonable method for allocation which is supported by business records.(3) A multistate customer purchasing credit reporting services for the benefit of both in-state and out-of-state locations is responsible for issuing to the credit reporting entity an exemption certificate asserting a multistate benefit, and for reporting and paying the tax on that portion of the credit reporting charge which will benefit the Texas location. A provider of credit reports that accepts such a certificate in good faith is relieved of responsibility for collecting and remitting tax on transactions to which the certificate relates.(4) The customer's books must support the assignment of the service to an identifiable segment of the business, the determination of the location or locations of the use of the service, and the allocation of the taxable charge to Texas.(5) To the extent the use of the service cannot be assigned to an identifiable segment of a customer's business, the service is presumed to be used to support the administration or operation of the customer's business generally. The service is presumed to be used at the customer's principal place of business. The principal place of business means the place from which the trade or business is directed or managed.(g) Local tax.(1) For local sales tax purposes, city, county, transit authority, and special purpose district sales taxes are due if a provider of credit reports has only one place of business (the location where clients request service) within the boundaries of a local taxing entity. Local tax must be collected based upon the tax rate at that location, except that no MTA or CTD sales tax is due on services provided at a location outside the boundaries of the transit area. In the case of multiple locations, if an order for service is placed at one location but the service is provided at another location, the place of business from which the service is provided will determine to which local taxing entity the tax is allocated.(2) For the purposes of the local use tax, if a place of business is outside the boundaries of a local taxing entity, the service provider will be required to collect local use tax if the client is within the local taxing entity and the service provider has representation in the local taxing entity as outlined in §3.286 of this title (relating to Seller's and Purchaser's Responsibilities). Even if the service provider is not required to collect local use tax, the client is still liable for the tax if the service is performed or a benefit is derived from the service within the boundaries of a local taxing entity.(A) An in-state customer purchasing credit reporting services for the benefit of locations in more than one local taxing entity is responsible for issuing to the provider of credit reporting services an exemption certificate asserting a multi-city benefit and for determining the extent of benefit for each entity. The local use tax for each entity must be reported, allocated and paid by the customer. A provider of credit reporting service that accepts in good faith an exemption certificate claiming a multi-city benefit is relieved of responsibility for collecting and remitting local tax on transactions to which the certificate relates.(B) A multistate customer purchasing credit reporting services for the benefit of both in-state and out-of-state locations is responsible for issuing an exemption certificate and for reporting and paying local tax as provided by subsection (f)(3) and (4) of this section.(h) Use tax. If a seller of a service is not doing business in Texas or in specific local taxing jurisdictions and is not required to collect Texas tax, it is the Texas customer's responsibility to report and pay the state and local use tax directly to this office.",
            "sourceNote": "Source Note: The provisions of this §3.343 adopted to be effective March 21, 1988, 13 TexReg 1193; amended to be effective November 13, 1989, 14 TexReg 5787; amended to be effective March 23, 1995, 20 TexReg 1749."
        },
        {
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            "currentRecordId": "227299",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.344",
                "label": "Telecommunications Services"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Basic local exchange telephone service--The provision by a telephone company of each access line and each dial tone to a fixed location for sending and receiving telecommunications in the telephone company's local exchange network. Services are considered basic irrespective of whether the customer has access to a private or party line, or whether the customer has limited or unlimited access. The term does not include international, interstate, or intrastate long-distance telecommunications services or mobile telecommunications services. (2) Designated database provider--An entity defined under 4 U.S.C. §124(3) (Definitions). (3) Internet--Collectively the myriad of computer and telecommunications facilities, including equipment and operating software, that comprise the interconnected worldwide network of networks that employ the Transmission Control Protocol/Internet Protocol, or any predecessor or successor protocols to the protocol, to communicate information of all kinds by wire or radio. (4) Internet access service--A service that enables users to access content, information, electronic mail, or other services offered over the Internet and may also include access to proprietary content, information, and other services as part of a package of services offered to consumers. The term does not include telecommunications services. (5) Interstate long-distance telecommunication service--A telecommunication service that originates in one state, crosses state lines, and terminates in another state. (6) Intrastate long-distance telecommunications service--A telecommunication service that originates and terminates within one state, but crosses the boundaries on subdivisions or jurisdictions within the state. (7) Mobile telecommunications service--The provision of a commercial mobile radio service, as defined in 47 C.F.R. 20.3 of the Federal Communications Commission's (FCC) regulations in effect on June 1, 1999 under the Mobile Telecommunications Sourcing Act (4 U.S.C. §§116-126). The term includes cellular telecommunications services, personal communications services (PCS), specialized mobile radio services, wireless voice over Internet protocol services, and paging services. The term does not include telephone prepaid calling cards or air-ground radio telephone services as defined in 47 C.F.R. 22.99 of FCC regulations in effect on June 1, 1999. (8) Pay telephone coin sent--Telecommunications service paid for by the insertion of coins into a coin-operated telephone. (9) Place of primary use--The physical street address that is representative of where a customer primarily uses a mobile telecommunications service. That location must be either the customer's residential street address or the customer's primary business street address that is within the licensed service area of the service provider. The individual or entity that contracts with the service provider is the customer. If the individual or entity that contracts with the service provider is not the end user, then the physical street address where the end user primarily uses the service determines the customer's place of primary use. For example, a business owner who is located in Austin, Texas establishes mobile telecommunication service accounts for employees who are located in other cities. One employee does business from his home in Dallas, Texas. Two other employees work at an office that is located in Houston, Texas. Another employee works at an office that is located in New Orleans, Louisiana. The home street address of the employee in Dallas is the place of primary use for that cellular phone account. The place of primary use for the two Houston employees is the street address of the Houston office. The place of primary use for the employee in Louisiana is the street address of the New Orleans office. (10) Prepaid telecommunications service--A wireless or wire telecommunications service for which the provider requires a customer to prepay the full amount prior to provision of the service. The term does not include the sale or use of a telephone prepaid calling card as defined in paragraph (15) of this subsection. A card, pin number, access code or similar device that allows a user to access only a specific network, or that is intended for use with a specific user account or device (e.g., to add more minutes to an existing account) is a prepaid telecommunications service and is taxed as the sale of a telecommunications service. Local sales tax is collected as explained in subsection (h) of this section. (11) Private communication service--A telecommunication service that entitles the customer to exclusive or priority use of a communications channel or group of channels between or among termination points, regardless of the manner in which such channel or channels are connected, and includes switching capacity, extension lines, stations, and any other associated services that are provided in connection with the use of such channel or channels. (A) As it relates to private communication service, the term \"communications channel\" means a physical or virtual path of communications over which signals are transmitted between or among customer channel termination points. (B) As it relates to private communication service, the term \"customer channel termination point\" means the location where the customer either inputs or receives the communications. (12) Seller--Any person who sells telecommunications services including a hotel, motel, owner or lessor of an office, residential building or development that contracts and pays for telecommunications services for resale to guests or tenants. (13) Taxable service--A telecommunications service or other taxable service listed in Tax Code, §151.0101. (14) Telecommunications services--The electronic or electrical transmission, conveyance, routing, or reception of sounds, signals, data, or information utilizing wires, cable, radio waves, microwaves, satellites, fiber optics, Voice over Internet Protocol (VoIP), or any other method now in existence or that may be devised, including but not limited to long-distance telephone service. The term includes mobile telecommunications services and prepaid telecommunications services. The term does not include: (A) the storage of data or other information for subsequent retrieval or the processing, or reception and processing, of data or information intended to change its form or content; (B) the sale or use of a telephone prepaid calling card; (C) Internet access service; or (D) pay telephone coin sent. (15) Telephone company--A person who owns or operates a telephone line or telephone in this state and charges for its use. (16) Telephone prepaid calling card--A card or other item, including an access code, that represents the right to access telecommunications services, other than prepaid telecommunications services as defined in paragraph (9) of this subsection, through multiple devices, regardless of the network providing direct service to the device used, for which payment is made in incremental amounts and before the call or transmission is initiated. For example, a calling card that allows a user to access a long distance telecommunications network for the purpose of making international calls through a pay phone is a telephone prepaid calling card. The sale of a telephone prepaid calling card is taxed as the sale of tangible personal property.  (17) Voice over Internet Protocol (VoIP)--A telecommunication service where a phone call is transmitted over a data network. The term \"Internet Protocol\" is a catchall phrase for the protocols and technologies of encoding a voice call that allow the voice call to be slotted in between data on a data network, including the Internet, a company's Intranet, or any other type of data network. (b) Taxable telecommunications services. The total amount charged for a taxable telecommunications service is subject to sales tax. Sales tax is due on a charge for the following: (1) basic local exchange telephone services; (2) enhanced services such as metro service, extended area service, multiline hunting, and PBX trunk; (3) auxiliary services such as call waiting and call forwarding; (4) intrastate long-distance telecommunications services;  (5) interstate long-distance telecommunications services that are both originated from, and billed to, a telephone number or billing or service address within Texas such that if a call originates in Texas and is billed to a Texas service address, the charge is taxable even if the invoice, statement, or other demand for payment is sent to an address in another state; (6) mobile telecommunications services for which the place of primary use is located in Texas; (7) telegraph services that are both originated from, and billed to, a person within Texas; (8) a telecommunications service paid for by the insertion of tokens, credit or debit card into a coin-operated telephone located in Texas; (9) subject to subsection (e) of this section, the lease, rental, or other charges for telecommunication equipment including separately stated installation charges. Separately stated charges for labor to install wiring will not be taxable if the wiring is installed in new structures or residences in such manner as to become a part of the realty. Separately stated charges for labor to install wiring in existing nonresidential real property are taxable. See §3.291 and §3.357 of this title (relating to Contractors; Nonresidential Real Property Repair, Remodeling, and Restoration; Real Property Maintenance) for additional information. If charges for the installation of wiring and charges for the equipment are not separated, the total charge will be treated as a sale and installation of tangible personal property. Equipment sold by a telecommunications service provider is subject to sales or use tax and is not taxed as part of the telecommunications service if the service provider separately invoices the sale of the equipment. The sale of equipment is not separately invoiced if it is identified on the same bill, receipt or invoice as the sale of the telecommunications service, even if it is identified as a separate line item on the same bill, receipt, or invoice; (10) installation of telecommunications services, including service connection fees; (11) private communication services. Taxable receipts include the channel termination charge imposed at each channel termination point within this state, the total channel mileage charges imposed between channel termination points or relay points within this state, and an apportionment of the interoffice channel mileage charge that crosses the state border. An apportionment on the basis of the ratio of the miles between the last channel termination point in Texas and the state border to the total miles between that channel termination point and the next channel termination point in the route will be accepted. If there is a single charge for a private communication service in which the customer has channel termination points both inside and outside of Texas, the apportionment can also be determined by dividing the number of customer channel termination points in Texas by the total number of customer channel termination points to establish the percentage of the charge subject to state sales tax for Texas. Other apportionment methods may be used by the seller if first approved in writing by the comptroller; (12) charges that are passed through to a purchaser for federal, state, or local taxes or fees that are imposed on the seller of the telecommunications service rather than on the purchaser. Such charges are a cost or expense of the seller and are included in the total price subject to sales tax; and (13) prepaid wireless telecommunications services as defined by subsection (a)(9) of this section when the purchase is made in person at a Texas business or is made by telephone or the Internet and the purchaser's primary business address or residential address is in Texas. (c) Nontaxable or exempt charges. Sales tax is not due on charges for: (1) interstate long-distance telecommunications services that are not both originated from, and billed to, a telephone number or billing or service address within Texas. Records must clearly distinguish between taxable and exempt long-distance services; (2) broadcasts by commercial radio or television stations licensed or regulated by the FCC. See §3.313 of this title (relating to Cable Television Service and Bundle Cable Service) for the tax status of cable television services; (3) telecommunications services purchased for resale; (4) telegraph services that are not both originated from and billed to a person within Texas; (5) mobile telecommunications services for which the place of primary use is located outside of Texas; (6) charges for federal, state, or local taxes or fees that are imposed on the purchaser rather than on the seller of the telecommunications service. For example, no sales tax is due on a separately stated charge for federal excise tax or for 9-1-1 Emergency Service Fee and 9-1-1 Equalization Surcharge because these taxes or fees are imposed on the purchaser and are not a cost of doing business of the seller; and (7) telecommunications services exclusively provided or used for the navigation of machinery and equipment exclusively used or employed on a farm or ranch in the building or maintaining of roads or water facilities or in the production of:(A) food for human consumption;(B) grass;(C) feed for animal life; or(D) other agricultural products to be sold in the regular course of business.(E) The purchaser must be an agricultural registrant and provide the seller with an agricultural exemption certificate.(F) This paragraph is effective September 1, 2015, and applies to telecommunication services provided after this date.(d) Billing and records requirements. If any nontaxable charges are combined with and not separately stated from taxable telecommunications service charges on the purchaser's bill or invoice from a provider of telecommunications services, the combined charge is subject to tax unless the service provider can identify the portion of the charges that are nontaxable through the provider's books and records kept in the regular course of business. If the nontaxable charges cannot reasonably be identified, the charges from the sale of both nontaxable services and taxable telecommunications services are attributable to taxable telecommunications services. The provider of telecommunications services has the burden of proving nontaxable charges. (e) Resale of tangible personal property. See §3.285 of this title (relating to Resale Certificate; Sales for Resale). (1) Transfer of tangible personal property to the care, custody and control of the purchaser. A telecommunications service provider may claim a resale exemption on the purchase of tangible personal property that is transferred by the telecommunications service provider to the care, custody, and control of the purchaser. A telecommunications service provider must collect sales tax on charges for such items. (2) Wireless voice communication devices. A person may claim a resale exemption on the purchase of a cell phone or other wireless voice communication device as an integral part of a taxable service, regardless of whether there is a separate charge for the wireless voice communication device or whether the purchaser is the provider of the taxable telecommunications service, if payment for the service is a condition for receiving the wireless voice communication device. For example, if a person signs a contract for the purchase of telecommunications services at the location of a retailer and the retailer sells the person a cell phone as a condition of entering the contract for the telecommunications services that will be provided by someone other than the retailer, the retailer can purchase the cell phone tax free with a properly completed resale certificate. (f) Resale of a telecommunications service. See §3.285 of this title. (1) Sales tax is not due on the charge by one telephone company to another for providing access to a local exchange network. The telecommunications service provider must collect sales tax from the final purchaser on the total charge for the taxable service including the charge for access. (2) A telecommunications service may be purchased tax free for resale if resold by the purchaser as an integral part of a taxable service. The purchaser must give the service provider a properly completed resale certificate to purchase the telecommunications service tax free for resale. A telecommunications service is an integral part of a taxable service if the telecommunications service is essential to the performance of the taxable service and without which the taxable service could not be rendered. For example, an Internet access service provider (ISP) may give a resale certificate when purchasing the dedicated dial-up line services to be used by the ISP's customers. However, the ISP must pay sales tax when purchasing its own personal or business use of telecommunications services such as charges for its office phone lines, mobile telecommunications services for its traveling salespersons, or for a customer service call-center. (3) A mobile telecommunications service provider may purchase roaming services from another mobile telecommunications service provider tax free for resale to its customers that are using the roaming services. For example, an out-of-state mobile telecommunications service provider purchases roaming services in Texas for resale to its out-of-state customers (i.e., persons who have a place of primary use outside Texas). To be exempt from sales tax, the out-of-state mobile telecommunications service provider must give the seller of the roaming services a resale certificate showing either a Texas sales tax permit number or the sales tax permit number or registration number issued by its home state. Effective for billing periods that begin on or after August 1, 2002, these out-of-state customers do not owe Texas sales tax on roaming charges incurred while visiting or traveling through Texas. (g) Taxable purchases. Subject to the provisions of subsections (e) and (f) of this section, a telecommunications service provider owes sales or use tax on all tangible personal property and services that are used to provide the service. See §3.346 of this title (relating to Use Tax), §3.281 of this title (relating to Records Required; Information Required), and §3.282 of this title (relating to Auditing Taxpayer Records). (h) Local tax. (1) Subject to the provisions of paragraph (2) of this subsection, jurisdictions that impose local sales and use taxes may repeal the local sales tax exemption on telecommunications services. See Publication 96-339 (Jurisdictions That Impose Local Sales Tax on Telecommunications Services) for a list of jurisdictions that impose local taxes on telecommunications services. (2) Taxable interstate long-distance telecommunications are only subject to state sales tax. Local taxing jurisdictions may not repeal the local sales tax exemption on interstate long-distance telecommunications services. (3) A seller of taxable telecommunications services, with the exception of mobile telecommunications services as explained in paragraph (4) of this subsection and prepaid wireless telecommunications services as explained in paragraph (6) of this subsection, must collect local sales taxes based on the location from which the telecommunications service originates. If the point of origin cannot be determined, the telecommunications service provider must collect local taxes based on the address to which the telecommunications service is billed. (4) A seller of mobile telecommunications services must collect local sales taxes based on the place of primary use as defined in subsection (a)(8) of this section and per Tax Code, §151.061. The location from which a mobile telecommunications service originates does not determine whether the service is exempt or is subject to state or local sales tax. (A) Local sales and use tax may be determined by using an electronic database as described in Tax Code, §151.061(a)(3). If neither the state nor a designated database provider provides an electronic database as described in Tax Code, §151.061(a)(3), then the seller of a mobile telecommunications service shall be held harmless from any tax, charge, or fee liability that is due only as a result of an assignment of a street address to an incorrect taxing jurisdiction. (B) To be held harmless, the seller of a mobile telecommunications service must have exercised due diligence which includes demonstrating it has: (i) expended reasonable resources to implement and maintain an appropriately detailed electronic database of street address assignments to taxing jurisdictions;(ii) implemented and maintained reasonable internal controls to promptly correct misassignments of street addresses to taxing jurisdictions; and (iii) used all reasonable obtainable and usable data pertaining to municipal annexations, incorporations, reorganizations, and any other changes in jurisdictional boundaries, including the comptroller's online Sales Tax Rate Locator and Publication 96-339, Jurisdictions that Impose Local Sales Tax on Telecommunications Services, or any subsequent or revised versions of the Locator or Publication.(5) A seller of telephone prepaid calling cards is not selling a telecommunications service and must collect state and local sales or use tax on the sale of the cards in the same manner as sales of other tangible personal property.(6) A seller of prepaid wireless telecommunications services as defined in subsection (a)(9) of this section must collect local tax based on the business address of the seller when the sale occurs in Texas in person. However, if the sale occurs over the telephone or Internet, tax is due if the primary business address of the purchaser or residential address of the purchaser is in Texas.",
            "sourceNote": "Source Note: The provisions of this §3.344 adopted\r\nto be effective December 30, 1985, 10 TexReg 4810; amended to be effective\r\nApril 1, 1988, 13 TexReg 1342; amended to be effective April 18, 2000,\r\n25 TexReg 3289; amended to be effective October 21, 2010, 35 TexReg\r\n9329; amended to be effective January 10, 2016, 41 TexReg 486; amended\r\nto be effective January 5, 2026, 51 TexReg 152."
        },
        {
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            "currentRecordId": "168977",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.345",
                "label": "Annual Refund Program for Providers of Cable Television, Internet Access, or Telecommunications Services"
            },
            "nextRule": {
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Cable television services--This term has the meaning as assigned by §3.313 of this title (relating to Cable Television Services).(2) Data processing services--This term has the meaning as assigned by §3.330 of this title (relating to Data Processing Services).(3) In or during--Within the course of an actual activity, such as transmission or routing. For example, a cable carrying a cable television services' signal to a customer's home is used in or during the conveyance of the signal in order to provide cable television services. In contrast, equipment merely used while the cable is carrying the signal, such as office furniture or an air conditioning system, is not used in or during the conveyance of the services.(4) Information services--This term has the same meaning as assigned by §3.342 of this title (relating to Information Services).(5) Internet access services--This term has the same meaning as assigned by §3.366 of this title (relating to Internet Access Services).(6) Provider--A seller, as defined by §3.286 of this title (relating to Seller's and Purchaser's Responsibilities, including Nexus, Permits, Returns and Reporting Periods, Collection and Exemption Rules, and Criminal Penalties) and §3.344 of this title (relating to Telecommunications Services), who supplies or otherwise makes available cable television services, Internet access services, or telecommunications services to the public, or a segment of the public, for consideration.(7) Qualifying purchase--Tangible personal property:(A) purchased, leased, or rented by a provider or a subsidiary of a provider on which sales and use tax was paid by the provider or the subsidiary; and(B) that is directly used or consumed by the provider or the subsidiary in or during:(i) the distribution of cable television services by the sending or relaying of video programming for the fulfillment of cable television services, to subscribing or paying customers;(ii) the provision of Internet access services by making available to the public, or a segment of the public, for consideration the means or method by which users can connect individual computer terminals, computers, mobile devices, or computer networks to the Internet; or(iii) the transmission by the process of creating, converting, sending, or propagating, for reception elsewhere, sounds or symbols into an analog or digital information signal, by telegraph, telephone, satellite, facsimile, or any other method now in existence or that may be devised, including Voice over Internet Protocol (VoIP), via any medium, such as wire, coaxial cable, microwave, optical fiber, or radio frequency; conveyance by the carriage, as by an outdoor telephone line or a satellite beam; routing by the selection of conveyance pathways; or reception by the acquisition, as by a satellite dish, of a telecommunications services' signal, where the transmission, conveyance, routing, or reception is specific to the direct provision of the services to the customer or a general or limited area, whether the signal remains in its original form or is subsequently amplified, filtered, encoded, decoded, or otherwise altered.(C) Qualifying purchases do not include supporting or ancillary functions, such as office operations, field operations, marketing, transportation, warehousing, data storage, or similar operations that do not directly result in the distribution of cable television services; the provision of Internet access services; or the transmission, conveyance, routing, or reception of telecommunications services.(8) Refund request date--(A) September 2, 2014, for tax paid September 1, 2013, through December 31, 2013, on qualifying purchases made on or after September 1, 2013.(B) For tax paid on or after January 1, 2014, on qualifying purchases made on or after September 1, 2013, March 31 of the year immediately following the calendar year in which the tax was paid. If March 31 falls on a Saturday, Sunday, or legal holiday, the refund request date will be the next business day. For example, a refund request for taxes paid during calendar year 2014 on qualifying purchases made on or after September 1, 2013, is due by March 31, 2015.(9) Requestor--The provider or subsidiary of a provider submitting the refund request.(10) Subsidiary of a provider--A subsidiary, as defined in Business Organizations Code, §1.002(85), for which a cable television service provider, Internet access service provider, or telecommunications service provider is the parent, as that term is defined in Business Organizations Code, §1.002(65).(11) Telecommunications services--This term has the same meaning as assigned by §3.344 of this title.(b) Persons eligible for refund request. Providers of cable television, Internet access, and telecommunications services and their subsidiaries are entitled to request a refund under this section.(c) Sales and use tax eligible for refund.(1) State sales and use taxes paid on qualifying purchases made on or after September 1, 2013, are eligible for a refund under this section.(2) Local sales and use taxes are not eligible for a refund under this section.(3) Sales and use taxes paid on property directly used or consumed in or during the provision, creation, or production of data processing services or information services are not eligible for a refund under this section, except when those services are provided in conjunction with and are merely incidental to the provision of Internet access services, as set out in §3.366(a)(2) of this title.(d) Request for refund.(1) The total amount of state sales and use tax that can be refunded to all requestors pursuant to this section for any one calendar year is $50 million.(2) Each requestor must file the refund request electronically or in the format prescribed by the comptroller. The postmark date or its electronic equivalent on a refund request determines the filing date.(A) A requestor required to file a refund request electronically who is unable to do so due to hardship, impracticality, or other valid reason may submit a written request to the comptroller for a waiver of the requirement and authorization of an alternative filing method. A waiver must be requested no later than 30 days prior to the refund request date. If the 30th day falls on a Saturday, Sunday, or legal holiday, the waiver must be requested by the next business day.(B) A requestor filing a refund request electronically may use an application provided by the comptroller, software provided by the comptroller, or commercially available software that satisfies requirements prescribed by the comptroller.(3) The refund request must contain the following information for each transaction for which a refund of sales and use taxes is requested:(A) the requestor's name, address, and taxpayer identification number;(B) if the requestor is a subsidiary of a provider, the parent provider's name, address, and taxpayer identification number;(C) identification of the provider's industry as either, cable television service, Internet access service, or telecommunications service;(D) the name, address, and taxpayer identification number of the seller of the qualifying purchase for each identified transaction;(E) the invoice number, if applicable, for each identified transaction;(F) the amount of sales and use tax paid on the qualifying purchase and the manner in which the tax was paid, such as accrued and paid by the provider or paid to the seller;(G) the date of each transaction;(H) a description of each item, or like items, purchased;(I) the purchase amount of each item subject to refund; and(J) the total amount of sales and use tax refund requested per item identified.(4) A refund request submitted pursuant to this section is subject to audit verification.(A) Additional information may be requested during the verification process.(B) If the comptroller requests in writing additional information, the person requesting the refund must submit the requested information within 30 calendar days.(C) A request will be reduced by a determination that the request includes:(i) items that are not qualifying purchases;(ii) items on which no sales or use tax was paid;(iii) items without supporting documentation; or(iv) items for which additional information requested by the comptroller was not received within 30 calendar days, as required by this subsection.(5) Tax Code, §151.3186 does not provide for a refund of interest and therefore no interest will be paid on refunds requested under this section.(6) Multiple refunds on the same items are not allowed. Requestors may not seek a refund or credit under another provision of Tax Code, Chapter 151 for any item on which sales or use tax was paid and for which a refund was requested under this section unless the refund request under this section for the specific item was denied in full.(e) Requests for refund filed by the applicable refund request date.(1) The maximum amount each requestor can be refunded under this section is equal to:(A) the cumulative amount of state sales and use tax paid by the requestor on qualifying property during the calendar year immediately preceding the refund request date, if the total amount of eligible state sales and use tax refund requests by all requestors for which a refund is approved under this section is equal to or less than $50 million for the calendar year; or(B) a pro-rated amount of the state sales and use tax paid by the requestor on qualifying property during the calendar year immediately preceding the refund request date, if the total amount of eligible sales and use tax refund requests by all requestors received by the refund request date for which a refund is approved under this section exceeds $50 million for the calendar year.(2) By no later than December 31, 2014, for the refund request date of September 2, 2014, or thereafter by August 31 for the refund request date of March 31:(A) the comptroller will issue a warrant to each requestor whose refund claim is approved in whole or in part. The warrant will be equal to:(i) the total refund amount approved for the requestor, if the total amount of eligible requests for refund is less than or equal to $50 million; or(ii) if the total amount of eligible requests for refund is greater than $50 million, a pro-rated amount of the $50 million calculated by dividing each requestor's approved refund amount by the total amount of eligible requests for refund; and(B) if the refund request is denied in full or in part, the comptroller will issue a notice advising the requestor:(i) that the refund request was denied, in whole or in part; and(ii) of the requirements of subsection (d)(3) of this section that were not met.(3) The comptroller will not issue an initial refund to a requestor whose refund request is denied in full.(4) Requestors whose refund requests are denied, in full or in part, may request a refund hearing within 30 days of notice from the comptroller as set out in §3.325(e) of this title (relating to Refunds and Payments Under Protest).(5) Final refund payments will be issued to all eligible requestors once all refund hearings or judicial proceedings related to the same refund request date filed in accordance with Tax Code, Chapter 112, if any, are final.(A) If the total of all approved refunds is less than or equal to $50 million, each requestor will be issued a final refund payment equal to the requestor's final approved refund amount, less any initial refund payment issued.(B) If the total of all approved refunds is greater than $50 million, the pro rata distribution formula will be recalculated to determine the total amount of refund due to each requestor for their approved claim as a percentage of all approved claims. Final payments will be issued based on the final pro rata distribution formula less any initial refund payment issued.(C) In no case shall the total amount of refund issued to a requestor exceed the requested amount in the requestor's refund request.(6) A refund request filed by the applicable refund request date cannot be amended after the applicable refund request date. If a requestor submits additional items after the applicable refund request date, the additional items will be considered a separate refund request and will be processed according to subsection (f) of this section.(f) Requests for refund filed after the applicable refund request date.(1) If the total amount of eligible requests for the applicable refund period received by the applicable refund request date is less than $50 million, the comptroller will issue a warrant to each late-filed requestor whose refund claim is approved in full or in part, on a first-come-first-served basis. Requestors whose refund requests are denied, in full or in part, under this paragraph may request a hearing under subsection (e)(4) of this section.(2) If the total amount of eligible requests for the applicable refund period received by the applicable refund request date is greater than $50 million, the late-filed request for refund will be denied for lack of funds. Any denial under this paragraph is not eligible for a hearing under subsection (e)(4) of this section.",
            "sourceNote": "Source Note: The provisions of this §3.345 adopted to be effective September 1, 2014, 39 TexReg 6863."
        },
        {
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            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.346",
                "label": "Use Tax"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Storage--The keeping or retention of tangible personal property in Texas for any purpose other than:(A) transporting property out of state to a location outside Texas for use solely outside of Texas; or(B) processing, fabricating, or manufacturing of tangible personal property into other property or attaching the tangible personal property to or incorporating the tangible personal property into other property that will be transported outside Texas for use solely outside of Texas.(2) Use--The exercise of a right or power incidental to the ownership of tangible personal property over tangible personal property, including tangible personal property other than printed material that has been processed, fabricated, or manufactured into other property or attached to or incorporated into other property transported into this state. With respect to a taxable service, use means the derivation in this state of direct or indirect benefit from the service. The term does not include the following:(A) the sale of tangible personal property or a taxable service in the regular course of business;(B) the transfer of a taxable service as an integral part of the transfer of tangible personal property in the regular course of business;(C) the transfer of tangible personal property as an integral part of the transfer of a taxable service in the regular course of business;(D) the exercise of a right or power over tangible personal property for the purpose of subsequently transporting the property outside Texas for use solely outside of Texas; or(E) the exercise of a right or power over tangible personal property for the purpose of processing, fabricating, or manufacturing of tangible personal property into other property or attaching the tangible personal property to or incorporating the tangible personal property into other property that will be transported outside Texas for use solely outside of Texas.(3) Use tax--A nonrecurring tax that is complementary to the sales tax and is imposed on the storage, use, or other consumption of a taxable item in this state.(b) Imposition of the use tax.(1) Out-of-state purchases. Use tax is due on taxable items purchased out of state that are stored, used or consumed in Texas.(2) Direct payment permit purchases. Use tax is due on taxable items purchased under a direct payment permit that are stored, used or consumed in Texas. See §3.288 of this title (relating to Direct Payment Procedures and Qualifications) and subsection (g) of this section.(3) Construction contracts.(A) Use tax is due on taxable items used, consumed or incorporated into real property in Texas by a contractor in the performance of a lump-sum contract for construction of a new improvement to realty or for repair and remodeling of a residential improvement to realty. See §3.291 of this title (relating to Contractors).(B) Use tax is due on taxable items used or consumed in Texas by a person in the performance of a lump sum or separated contract for nonresidential repair or remodeling, or in the performance of a separated contract for construction of a new improvement to realty or for repair or remodeling of a residential improvement to realty. See §3.357 of this title (relating to Nonresidential Real Property Repair, Remodeling, and Restoration; Real Property Maintenance) and §3.291 of this title.(4) Shipments of taxable items from out-of-state suppliers and sellers to purchaser's designees. Use tax is due on taxable items, such as gifts, catalogs and promotional goods purchased outside this state by a purchaser engaged in business in this state if the taxable items are delivered at the direction of the purchaser to a location in Texas designated by the purchaser.(A) A purchaser is engaged in business in Texas if the purchaser is required to collect sales or use tax under Tax Code, Chapter 151 or if the purchaser has nexus or is engaged in business in Texas as defined in §3.286 of this title (relating to Seller's and Purchaser's Responsibilities, including Nexus, Permits, Returns and Reporting Periods, Collection and Exemption Rules, and Criminal Penalties).(B) Local use taxes (city, county, transit, special purpose district) are also due, but only to the extent that the purchaser is engaged in business in the local taxing jurisdictions into which deliveries are made.(5) Raw materials manufactured or incorporated into other tangible personal property. Use tax is due on raw materials (tangible personal property), other than printed materials as provided under paragraph (6) of this subsection, purchased outside this state that have been processed, fabricated, or manufactured into other property or attached to or incorporated into other property outside this state and subsequently transported into this state, and, except as provided by Tax Code, §151.056(b) regarding property incorporated under a separated contract for the improvement of realty, includes the incorporation of tangible personal property into real estate or into improvements of real estate whether or not the real estate is subsequently sold.(6) Printed materials.(A) Use tax is due on the total cost of printed materials, including printing, paper and ink, purchased out of state, such as a book, brochure or catalog, and then shipped or delivered into Texas. An example of such printed material is a catalog where either the purchaser or the printer of the catalog first purchased ink and paper outside of Texas that was then printed and bound before being mailed to Texas residents in the form of a catalog. The item being used by the purchaser in this state is the catalog and since the catalog is not incorporated into another item, use tax is due on the total cost of the catalogs delivered into Texas.(B) Use tax does not apply to printed materials purchased outside of this state that have been processed, fabricated, or manufactured into other property or attached to or incorporated into other property transported into this state. An example would include the purchase of printed pages by a Texas customer from an out-of-state printer who ships the items directly to another out-of-state firm that binds the items into a manual or book. The charge by the out-of-state binder to the Texas customer is subject to tax. The charge by the vendor that sold the printed materials to the Texas customer is not taxable since the printed materials have been processed, fabricated, or manufactured into other property or attached to or incorporated into other property transported into this state.(7) Occasional sales.(A) A person who holds or is required to hold a sales and use tax permit must accrue use tax on the purchase of a taxable item from a person entitled to the occasional sale exemption from sales tax provided by Tax Code, §151.304(b)(1) and remit it to the comptroller. Tax Code, §151.304(b)(1) relates to one or two sales during a 12-month period by a person who does not habitually engage, or hold himself out as engaging, in the business of selling taxable items at retail.(B) A purchaser who holds or is required to hold a sales and use tax permit is not required to accrue use tax and remit it to the comptroller on a purchase from a person entitled to claim the occasional sales exemption from sales tax provided by Tax Code, §151.304(b)(2) - (5). Tax Code, §151.304(b)(2) relates to the sale of the entire operating assets of a business or of a separate division, branch, or identifiable segment of a business; Tax Code, §151.304(b)(3) relates to the transfer of all or substantially all the property used by a person in the course of an activity if after the transfer the real or ultimate ownership of the property is substantially similar to that which existed before the transfer; Tax Code, §151.304(b)(4) relates to the sale of not more than 10 admissions for amusement services during a 12-month period by a person who does not hold himself out as engaging, or does not habitually engage, in providing amusement services; Tax Code, §151.304(b)(5) relates to sales of items purchased for use by an individual who does not hold, and is not required to obtain a sales and use tax permit. In order to be exempt from sales tax, total sales by the individual must not exceed $3,000 per calendar year. See §3.316 of this title (relating to Occasional Sales; Joint Ownership Transfers; Sales by Senior Citizens' Organizations; Sales by University and College Student Organizations; and Sales by Nonprofit Animal Shelters).(c) Inapplicability of use tax.(1) Use tax is not applicable if the purchaser of a taxable item paid sales tax to a Texas seller or owes sales tax to a Texas seller who failed to collect it. The comptroller may proceed against the seller or the purchaser for the sales tax owed by either.(2) Use tax is not applicable to the storage, use, or other consumption of taxable items in this state if the sale, lease, or rental of the taxable items would be exempt from the sales tax had the items been purchased within Texas.(d) User liability, payment of the tax and credit for tax paid to another state.(1) The person storing, using, or consuming a taxable item in this state is liable for the tax imposed under this section, and except as provided by paragraph (2) of this subsection, the liability continues until the tax is paid to the state.(2) The liability may be extinguished by payment of the Texas use tax directly to the comptroller or to a seller authorized to collect it. See the use tax permit requirements for out-of-state sellers in §3.286 of this title.(3) The basis of the use tax is the total purchase price of the taxable item, including any related charges such as shipping and handling fees, regardless of whether such fees are separately stated. See §3.303 of this title (relating to Transportation and Delivery Charges).(4) The tax must be reported and remitted to the comptroller with the return covering the period in which the taxable items are first stored, used, or otherwise consumed in Texas as provided by §3.286 of this title. Purchasers without a sales and use tax permit should refer to §3.286 of this title to view the tax responsibilities of non-permitted purchasers.(5) Credit is allowed against the use tax liability to the extent that a similar sales or use tax was legally due and paid to another state under the conditions provided in Tax Code, Chapter 141 and Chapter 151, §151.303. See §3.338 of this title (relating to Multistate Tax Credits and Allowance of Credit for Tax Paid to Suppliers).(e) Presumption.(1) Tangible personal property that is shipped or brought into this state by, or at the direction of, a purchaser is presumed, in the absence of evidence to the contrary, to have been purchased from a seller for storage, use, or consumption in this state. A taxable service used in this state is presumed, in the absence of evidence to the contrary, to have been purchased from a seller for use in this state.(2) Tangible personal property purchased out of state and used for its intended purpose outside of Texas for more than one year before the date of entry into Texas will not be presumed to have been purchased for use in Texas. This presumption applies only if the use outside Texas is substantial and constitutes a primary use for which the property was purchased. Either the comptroller or the purchaser may introduce evidence to establish the intent or absence of intent to use the taxable items in Texas at the time of purchase.(3) If tangible personal property is shipped outside of Texas by the seller such that the transaction is exempt from sales tax under Tax Code, §151.330(a), and the property is outside of Texas for less than one year before reentering Texas, the presumption is that the property is purchased for use in Texas.(f) Local use tax is due to the jurisdictions where taxable items are first stored, used, or consumed.(g) Direct payment permit holders - election to pay use tax at time of first storage or upon first removal from storage for use in Texas. If, at the time an item is purchased and stored in the state, it is not known if the item will be used in Texas or removed from the state for use elsewhere, a direct payment permit holder can elect to either pay state and local use tax at the time an item is first removed from storage for use in Texas or elect to pay state and local use tax on the item when first stored in Texas. This election must consistently apply to all stored items once the election is made and consistently apply to all state and local taxes that are due. Local tax is due to the jurisdictions where the item is first stored regardless of which election is chosen. A direct pay permit holder who elects to pay Texas use tax when items are first stored may claim a refund as provided by other sections of this title of taxes paid on items that are removed from storage in Texas for use elsewhere.",
            "sourceNote": "Source Note: The provisions of this §3.346 adopted to be effective March 7, 1979, 4 TexReg 554; amended to be effective November 17, 1981, 6 TexReg 4070; amended to be effective December 3, 1984, 9 TexReg 5929; amended to be effective December 21, 1990, 15 TexReg 7029; amended to be effective February 9, 2011, 36 TexReg 587; amended to be effective November 11, 2012, 37 TexReg 8857."
        },
        {
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            "currentRecordId": "19782",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.347",
                "label": "Improvements to Realty"
            },
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            "ruleBody": "(a) \"Contract for the improvement to realty\" includes a contract with the intended purpose to:(1) erect, construct, alter, or repair any building or other structure, project, development, or other permanent improvement on, under the surface of, or to real property, whether fee or leasehold;(2) furnish and install property becoming a part of any building or other structure, project, development, or other permanent improvement on or to such real property, including tangible personal property, which after installation becomes real property by virtue of being embedded in or permanently affixed to the land or to a structure constituting realty and which property after installation is necessary to the intended usefulness of the building or other structure; or(3) alter the land surface of real property by such means as creating roads, earthen dams, and stock tanks. However, mining or timber operations do not, in and of themselves, constitute improvements to realty.(b) \"Contract for the improvement to realty\" does not include:(1) a contract for the sale and installation of tangible personal property; this includes a contract to furnish and install machinery, equipment, or other tangible property not essential to the building or structure, nor adapted or intended to become a part of the realty, but which incidentally may, on account of its nature, be temporarily attached to the realty without losing its identity as a particular piece of machinery, equipment, or property and, if attached, is readily removable without substantial damage to the unit or to the realty or without destroying the intended usefulness of the realty;(2) the furnishing of tangible personal property if the person furnishing the property is not responsible for the final affixation or installation of any of the property furnished; or(3) the furnishing of tangible personal property if the person furnishing the property is only responsible for supervision or warranty of installation without contractual responsibility for installation.",
            "sourceNote": "Source Note: The provisions of this §3.347 adopted to be effective February 7, 1979, 4 TexReg 218."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182682&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182682",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
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                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
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                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.350",
                "label": "Master Recordings and Broadcasts"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Audio recording--The fixation of signals representing a series of musical, spoken, or other sounds, but not including motion pictures, by any method now known or later developed.(2) Broadcast--For the purposes of this section only, the dissemination of audio signals, video signals, or a combination of both audio and video signals in the form of radio or television programming to the public over the segment of the radio spectrum used for broadcasting, and the exhibition of video programming with or without the use of wires to subscribing or paying customers.(3) C.F.R.--Code of Federal Regulations.(4) C.F.R.-compliant digital audio broadcast equipment--Tangible personal property that is sold to the permittee or licensee of an AM or FM station that commences interim hybrid In-band On-Channel (IBOC) digital audio broadcast (DAB) pursuant to 47 C.F.R. §73.404(a) (Interim Hybrid IBOC DAB Operation), if the tangible personal property is necessary for the licensee or permittee to provide the broadcast services described by 47 C.F.R. §73.403 (Digital Audio Broadcasting Service Requirements) or 47 C.F.R. §73.404.(5) C.F.R.-compliant digital television transmission equipment--Tangible personal property that is sold to a digital television broadcast station permittee or licensee to which 47 C.F.R. §73.624(b) applies, if the tangible personal property is necessary for the permittee or licensee to comply with 47 C.F.R. §73.682(d) (Digital Broadcast Television Transmission Standard).(6) Distribute--For purposes of this section only, to supply copies of a master recording to persons who will sell, license, further distribute, broadcast, or exhibit copies of the master recording. For example, copies of a motion picture are distributed to movie theaters which exhibit the motion pictures to the public for consideration.(7) Exhibit--(A) To play or perform a master recording or live program at a place open to the public or at any place where a substantial number of persons, outside of a normal circle of a family and its social acquaintances, is gathered; or(B) to transmit or otherwise communicate a performance of the master recording or live program to the public by any means, whether the members of the public capable of receiving the performance receive it in the same place or in separate places and at the same or different times.(8) License--To authorize or otherwise grant legal permission to use a copy of a master recording in a limited manner, for a limited purpose, or both. For example, the owner of a master audio recording may license a copy of the master audio recording for use as part of an advertising campaign in a specific geographic area for a specified period of time.(9) Live program--Radio or television content that is not pre-recorded and that is broadcast by a producer of cable programs or a radio or television station licensed by the Federal Communications Commission.(10) Master recording--The principal media on which images, sound, or a combination of images and sound are first fixed, and from which copies are intended to be reproduced for the purpose of obtaining consideration from the ultimate sale, license, distribution, broadcast, or exhibition of the copies. A master recording may be an audio recording, motion picture recording, video recording, or a combination of these.(A) Master recordings include feature films, television programs, television commercials, corporate films, infomercials, recordings of live performances, musical albums, and other projects that are intended for commercial distribution, even if commercial distribution is very limited, such as the distribution of training or industrial films.(B) Master recordings do not include training videos for in-house use, student films, wedding videos, recordings exhibited on social media, and other recordings not intended to be copied for commercial distribution or commercial exhibition.(C) A master recording may contain interactive software that allows a viewer to locate, see, or hear a segment of the master recording without having to see or hear the master recording in full.(D) A master recording does not include video games even if the games contain recorded audio or visual sequences.(11) Media production facility--A structure, building, or room used for the specific purpose of creating a moving image project. The term includes but is not limited to:(A) a soundstage and scoring stage;(B) a production office;(C) an editing facility, an animation production facility, and a video game production facility;(D) a storage and construction space; and(E) a sound recording studio and motion capture studio.(12) Motion picture recording--A series of related images stored in any method now known or later developed which, when shown in succession, together with any accompanying sounds, impart an impression of motion.(13) Moving image project--A visual and sound production, including a film, television program, national or multistate commercial, or digital interactive media production. The term does not include a production that is obscene, as defined by Penal Code, §43.21 (Definitions).(14) Producer--A person who owns the original rights to a master recording.(15) Qualified media production location--A location in a media production zone that has been designated by the Texas Film Commission as a qualified media production location in accordance with Government Code, Chapter 485A (Media Production Development Zones).(16) Qualified person--A person certified by the Texas Film Commission as a qualified person under Government Code, §485A.201 (Qualified person).(17) Texas Film Commission--The division of the Office of the Governor of Texas, by whatever name called, that is assigned to administer and monitor the implementation of the Media Production Development Zone Act as provided in Government Code, Chapter 485A.(18) Video game--An electronic game in which a player controls images on a video screen, television, or computer monitor.(19) Video recording--A series of related images intended to be shown by the use of machines or devices such as projectors, viewers, or electronic equipment, together with any accompanying sounds, stored in any method now known or later developed.(b) Master recordings.(1) The sale of a master recording by the producer of the master recording is exempt from sales and use tax under this section.(2) The sale of a copy of a master recording is taxable under Tax Code, Chapter 151 (Limited Sales, Excise, and Use Tax) as the sale of tangible personal property.(3) A license of all or part of the rights to a master recording is not subject to tax under Tax Code, Chapter 151.(c) Exempt items used in production.(1) Except as provided in subsections (d) and (e) of this section, sales and use tax is not due on the purchase or use of the following items:(A) tangible personal property that will become an ingredient or component part of a master recording or a live program; and(B) tangible personal property or taxable services that are necessary or essential to, and used or consumed in or during, the production of a master recording or live program.(i) Tangible personal property that is leased or rented is eligible for exemption described in this subparagraph regardless of the length of the lease or rental.(ii) Taxable items used in pre-production activities do not qualify for the exemption under this section because they are not used or consumed in or during the production of the master recording or live program. Examples of equipment used in pre-production include equipment used in gathering news prior to the beginning of a television production and computers and software used in authoring or editing a script.(2) The exemption in this subsection includes, but is not limited to:(A) cameras, film, and film developing chemicals that are necessary and essential to and used or consumed in the production of a master recording or a live program;(B) lights, props, sets, teleprompters, microphones, digital equipment, special effects equipment and supplies, and other equipment that is necessary and essential to and used or consumed directly in the production of a master recording or a live program; and(C) audio or video routing switchers located in a production or recording studio that are necessary and essential to and used or consumed directly in the production of a master recording or a live program.(d) Nonexempt items used in production.(1) The following items do not qualify for exemption under this section even when used in the production of a master recording or a live program:(A) office equipment or supplies;(B) maintenance or janitorial equipment or supplies;(C) machinery, equipment, or supplies used in sales or transportation activities;(D) machinery, equipment, or supplies used in distribution activities, unless otherwise exempted by this section;(E) taxable items that are used incidentally in the production of a master recording or a live program;(F) telecommunications equipment and services;(G) transmission equipment, other than qualifying C.F.R.-compliant digital television transmission equipment and qualifying C.F.R.-compliant digital audio broadcast equipment;(H) security services;(I) motor vehicle parking services; and(J) food ready for immediate consumption.(2) Examples of nonexempt items used in production include, but are not limited to: tents for catering or staging areas; office furniture; crew jackets; flowers for dressing rooms; catering or other food ready for immediate consumption; bodyguard services; script typing; landscape maintenance; director's chairs; gas cans; ladders; shipping cases; battery chargers; mobile offices; pagers, cellular phones, and other communication equipment (except those used exclusively on the set); telecommunications services such as mobile phone service; waste removal (including waste that will be recycled); wardrobe racks; and alcoholic and non-alcoholic beverages.(3) Taxable items are not exempt under this section when used in the production of a master recording for broadcast, or in the production of a live program for broadcast, if the master recording or live program is not intended to be broadcast to either the general public or to cable television service subscribers or paying customers.(e) Transportation equipment. Motor vehicles, including trailers and semitrailers, are subject to motor vehicle sales tax and are exempt from sales and use tax imposed by Tax Code, Chapter 151 (Limited Sales, Excise, and Use Tax). For more information on the taxes due on motor vehicles, see Subchapter F, of this chapter (Motor Vehicle Sales Tax). Other types of machinery, equipment, or supplies used in transportation activities, such as helicopters, do not qualify for exemption from sales and use tax under this section.(f) C.F.R.-compliant digital television transmission.(1) The purchase of C.F.R.-compliant digital television transmission equipment by a digital television broadcast station permittee or licensee is exempt from sales and use tax. The exemption applies whether the equipment is used for television transmission in high or standard definition.(2) Equipment that may be used for both analog and digital television transmission is exempt if it is necessary to comply with 47 C.F.R. §73.682(d) (TV transmission standards). Transmission equipment that is not necessary for digital television transmission, or that can be used only for analog transmission, is not exempt under this section.(3) An Advanced Television Systems Committee (ATSC) encoder is exempt.(4) Entities that are not subject to the relevant provisions of 47 C.F.R. Part 73 (Radio Broadcast Services), such as cable and satellite television providers, may not make exempt purchases under this subsection.(g) C.F.R.-compliant digital audio broadcast equipment.(1) The purchase of C.F.R.-compliant digital audio broadcast equipment by a radio broadcast station permittee or licensee is exempt from sales and use tax.(2) Equipment used to transmit both over-the-air digital audio programming at no direct charge to listeners and over-the-air digital audio programming for a fee to listeners is exempt.(3) Equipment used solely to transmit over-the-air digital audio programming for a fee to listeners is not exempt.(h) Exemptions for repair and maintenance. Repair or maintenance of tangible personal property that is exempted under this section is also exempt, unless the tangible personal property is installed into realty and has lost its identity as tangible personal property. For information on the repair or maintenance of items that become real property after installation, see §3.357 of this title (relating to Nonresidential Real Property Repair, Remodeling, and Restoration; Real Property Maintenance). For information on new construction that incorporates materials exempted under this section see §3.291 of this title (relating to Contractors).(i) Exemptions for natural gas and electricity.(1) Natural gas and electricity used in the production of a master recording are exempt.(2) Natural gas and electricity are taxable when used for a non-exempt purpose. For example, an entertainment venue provides beverages to customers during live performances. The venue also makes master recordings of the live performances. The electricity used for the beverage refrigeration equipment is not exempt; however the electricity used to power the recording equipment is exempt under this subsection. Non-exempt purposes include, but are not limited to, the following:(A) administrative or office operations;(B) marketing;(C) transportation; or(D) warehousing.(3) A predominant use study is required to determine the exempt and non-exempt use of natural gas or electricity measured by a single meter. See §3.295 of this title (relating to Natural Gas and Electricity).(j) Exemptions for qualified media production locations.(1) The exemption in this subsection is available only to a qualified person acquiring a taxable item for use at a qualified media production location. Information on becoming certified as a qualified person or a qualified media production location is available through the Texas Film Commission.(2) The sale, lease, or rental of a taxable item, including nonresidential repair or remodeling services, is exempt if the item is used:(A) for the construction, maintenance, expansion, improvement, or renovation of a media production facility at a qualified media production location;(B) to equip a media production facility at a qualified media production location; or(C) for the renovation of a building or facility at a qualified media production location that is to be used exclusively as a media production facility.(3) Repair or maintenance of tangible personal property used to equip a media production facility at a qualified media production location is exempt during the exemption period described in paragraph (4) of this subsection.(4) The exemption in this subsection is temporary.(A) The exemption begins when both the qualified person and related qualified media production location are certified by the Texas Film Commission.(B) The exemption ends on the earlier of:(i) the expiration date identified in the approval documents issued for the certification of the qualified media production location;(ii) the expiration date identified in the approval documents issued for the certification of the qualified person; or(iii) the date the certification of either the qualified person or the qualified media production location is revoked.(C) In no event shall the exemption period extend for more than two years from the earlier of the date of certification of the qualified person or the date of certification of the related qualified media production location.(5) Reports required. Each qualified person is required to submit a report for each qualified media production location.(A) The report must be in the form and manner prescribed by the comptroller and must contain the following information:(i) the name, address, and comptroller-issued taxpayer identification number of the qualified person;(ii) the name, address, and, if applicable, comptroller-issued taxpayer identification number of the qualified media production location;(iii) a description of the project or activity conducted by the qualified person at the qualified media production location;(iv) the date of certification and the expiration date of the certification of the qualified person and related qualified media production zone as identified in the approval documents issued by the Texas Film Commission;(v) a statement that no items were purchased tax-free under the exemption in this subsection during the period covered by the report, if applicable; or for each item purchased tax-free under this exemption the following information:(I) the name, address, and comptroller-issued taxpayer identification number of the seller;(II) the date of purchase;(III) the name or description of the item, or like items;(IV) the purpose or brief explanation of how the item, or like items, were, or are to be, used;(V) the sales price of the item;(VI) the lease or rental terms, if applicable; and(VII) the current location of the item.(B) Report periods. The initial report covers the time period from the date of certification of the qualified person and the related qualified media production location through August 31. For example, if the qualified person and the related qualified media production location received certification on April 1, the initial report period is April 1 through August 31. Subsequent reports cover the time period from September 1 through August 31 of the following year.(C) The report is due September 30 each year. If the due date falls on a Saturday, Sunday, or legal holiday, the report will be due the next business day.(k) Exemption certificates. The exemptions under this section may be claimed by providing the seller with a properly completed exemption certificate at the time of purchase in lieu of paying sales and use tax. See §3.287 of this title (relating to Exemption Certificates).(l) Divergent use.(1) When a taxable item purchased tax-free under a properly completed exemption certificate is used in a taxable manner, sales and use tax is due. The tax is calculated based on the fair market rental value of the tangible personal property for the period of time used in the taxable manner. See §3.287 of this title and Tax Code, §151.155 (Exemption Certificate).(2) Records must be maintained to document the taxable use of an item purchased tax-free, and the payment of sales and use tax due on such use.",
            "sourceNote": "Source Note: The provisions of this §3.350 adopted to be effective February 1, 2017, 42 TexReg 320."
        },
        {
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            "currentRecordId": "177275",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.353",
                "label": "Sales Tax Holiday--Certain Emergency Preparation Supplies"
            },
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            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Emergency preparation item--(A) A portable generator used to provide light or communications or to preserve perishable food in the event of a power outage, the sales price of which is less than $3,000;(B) a storm protection device manufactured, rated, and marketed specifically to prevent damage to a glazed or non-glazed opening during a storm, the sales price of which is less than $300;(C) an emergency or rescue ladder, such as a collapsible or chain ladder designed to hang from a window sill, the sales price of which is less than $300; or(D) an item listed in this subparagraph, the sales price of which is less than $75:(i) a reusable or artificial ice product;(ii) a portable, self-powered light source;(iii) a gasoline or diesel fuel container;(iv) a AAA cell, AA cell, C cell, D cell, 6 volt, or 9 volt battery, or a package containing more than one battery, other than an automobile or boat battery;(v) a nonelectric cooler or ice chest for food storage;(vi) a tarpaulin or other flexible waterproof sheeting;(vii) a ground anchor system or tie-down kit;(viii) a mobile telephone battery or battery charger;(ix) a portable self-powered radio, including a two-way radio or weatherband radio;(x) a fire extinguisher, smoke detector, or carbon monoxide detector;(xi) a hatchet or axe;(xii) a self-contained first aid kit; or(xiii) a nonelectric can opener.(2) Exemption period--The period beginning at 12:01 a.m. on the Saturday before the last Monday in April and ending at 12 midnight on the last Monday in April.(3) Layaway sales--A transaction in which merchandise is set aside for future delivery to a customer who makes a deposit, agrees to pay the balance of the purchase price over a period of time, and, at the end of the payment period, receives the merchandise.(4) Rain check--A document assuring that a person can take advantage of a sale or special offer made by a seller at a later time if the item offered is not available.(b) Exempt sales.(1) Sales or use tax is not due on the sale of an emergency preparation item during the exemption period.(2) Any person can purchase emergency preparation items tax-free during the exemption period. There is no limit to the number of emergency preparation items one person can purchase tax-free during the exemption period. An exemption or resale certificate is not required to purchase an emergency preparation item tax-free during the exemption period.(3) The exemption applies to each emergency preparation item sold during the exemption period, regardless of how many emergency preparation items are sold on the same invoice. For example, a person can purchase two generators with a sales price of $2,500 each, even though the total price on the invoice exceeds $3,000.(4) Emergency preparation items may be rented or leased tax-free, including under a \"rent to own\" contract, if the rental or lease contract is executed during the exemption period. Extensions or renewals of rental or lease contracts do not qualify for the exemption unless executed during the exemption period.(c) Taxable sales. The exemption under this section does not apply to:(1) tangible personal property that is not an emergency preparation item, as that term is defined in subsection (a)(1) of this section, for example, camp stoves, camping supplies, chainsaws, extension ladders, step-ladders, plywood, tents, or automobile or boat batteries;(2) a portable generator with a sales price of $3,000 or more;(3) a storm protection device or emergency or rescue ladder with a sales price of $300 or more;(4) any item listed in subsection (a)(1)(D) of this section with a sales price of $75 or more;(5) repair or replacement parts for an emergency preparation item that do not otherwise qualify for exemption; or(6) services performed on or related to emergency preparation items as well as warranty plans and extended protection plans. For example, repair services for an eligible portable generator are taxable as the repair of tangible personal property. See §3.292 of this title (relating to Repair, Remodeling, Maintenance, and Restoration of Tangible Personal Property) for more information.(d) Sales of pre-packaged combinations containing both exempt and taxable items.(1) When an emergency preparation item is sold together in a pre-packaged combination with an item that is not eligible for the exemption described in subsection (b) of this section, the full price of the pre-packaged combination is subject to sales tax, unless the price of the emergency preparation item is separately stated. For example, a portable generator and a portable cooking device sold as a set for a single price is taxable regardless of the price of the generator or the package. A separately-stated charge for the portable generator is eligible for the sales tax exemption during the exemption period if the sales price of the portable generator is less than $3,000.(2) When an emergency preparation item is sold in a pre-packaged combination that contains as a free gift an item that is not eligible for the exemption described in subsection (b) of this section, the emergency preparation item may qualify for the exemption under this section if the price of the set is the same as the price of the emergency preparation item sold separately. For example, a portable generator with a sales price of less than $3,000 may be sold in a package with a free extension cord. If the price of the set is the same as the price of the portable generator sold separately, the product that is being sold is the portable generator, which is exempt from tax if sold during the exemption period. See §3.301 of this title (relating to Promotional Plans, Coupons, Retailer Reimbursement) for additional information on the seller's tax responsibility for the free item.(e) Sales price. Whether an item described in subsection (a)(1) of this section satisfies the definition of an emergency supply item, and can be purchased tax-free during the exemption period, depends upon the sales price of the item.(1) Delivery or shipping and handling charges. Delivery or shipping and handling charges are included as part of the total sales price of an item of tangible personal property, regardless of whether the charges are separately stated.(A) The addition of delivery or shipping and handling charges to the price of an item may result in the item no longer qualifying as an emergency preparation item. For example, a portable generator with a sales price of $2,999 is eligible for the exemption during the exemption period. A generator that sells for $2,999 and is delivered for a charge of $25, for a total sales price of $3,024, does not qualify as an emergency preparation item and sales tax is due on the total sales price of $3,024, even if the sale occurs during the exemption period.(B) Delivery or shipping and handling charges which are part of the sales price of an exempt item are exempt so long as the total charge does not exceed the limits set forth in this exemption. For example, a portable generator with a sales price of $1,999 and delivery charge of $50, for a total sales price of $2,049, is eligible for the exemption during the exemption period. The total sales price of $2,049, is exempt.(2) Discounts. A seller may offer discounts to reduce the sales price of an item described in subsection (a)(1) of this section in order to qualify the item as an emergency preparation item. When a discount is given during the exemption period to reduce the sales price of an item described in subsection (a)(1) of this section, the item can qualify as an emergency preparation item based on the reduced sales price.(3) Coupons. When sellers accept a coupon as a part of the sales price of any item of tangible personal property, the value of the coupon is excluded from the sales price as a cash discount, regardless of whether the seller is reimbursed for the amount that the coupon represents. When a coupon is used during the exemption period to reduce the sales price of an item described in subsection (a)(1) of this section, the item can qualify as an emergency preparation item based on the reduced sales price.(4) Buy one, get one free or for a reduced price. The total price of an item that is advertised as \"buy one, get one free,\" or \"buy one, get one for a reduced price,\" cannot be averaged across two items in order for both to qualify for the exemption under this section as emergency preparation items. For example, an emergency rescue ladder with a sales price of $400 that is advertised as buy one, get one free does not qualify as an emergency preparation item based on the sales price even though the purchaser is receiving two emergency rescue ladders and the average sales price of each would be $200.(5) Rebates. Rebates that are paid to a purchaser after the exemption period do not affect the sales price of an item purchased for purposes of determining whether an item qualifies for exemption under this section. The full amount of the sales price, before the rebate, is used to determine whether an item meets the definition of an emergency preparation item.(f) Layaway sales and purchases by means other than in person.(1) The sale of an emergency preparation item under a layaway plan or purchased by mail, telephone, email, Internet, custom order, or any other means other than in person qualifies for exemption when either:(A) the purchaser places on layaway the emergency preparation item during the exemption period and the seller accepts the order for immediate delivery upon full payment, even if delivery is made after the exemption period;(B) the purchaser places the order and the seller accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period; or(C) final payment on the layaway order is made by, and the merchandise is given to, the purchaser during the exemption period.(2) For purposes of this subsection, the seller accepts an order when the seller has taken action to fill the order for immediate shipment. Actions to fill an order include placement of an \"in date\" stamp on a mail order, or assignment of an \"order number\" to a telephone order. An order is for immediate shipment notwithstanding that the shipment may be delayed because of a backlog of orders or because stock is currently unavailable to, or on back order by, the seller.(g) Rain checks. Emergency preparation items purchased during the exemption period with use of a rain check qualify for the exemption regardless of when the rain check was issued. The issuance of a rain check during the exemption period will not qualify an emergency preparation item for the exemption if the item is purchased after the exemption period.(h) Exchanges.(1) Tax is not due on an emergency preparation item purchased during the exemption period but exchanged, after the exemption period ends, for an emergency preparation item of equal or lesser value.(2) Tax is due on the difference in sales price of an emergency preparation item purchased during the exemption period but exchanged, after the exemption period ends, for another emergency preparation item of greater value that would qualify for exemption if purchased during the exemption period.(i) Returned merchandise. For a 30-day period after the temporary exemption period, when a customer returns an emergency preparation item that would qualify for the exemption, no credit for or refund of sales tax shall be given unless the customer provides a receipt or invoice that shows tax was paid, or the seller has sufficient documentation to show that tax was paid on the specific item.(1) This 30-day period begins the Tuesday immediately following the end of the exemption period and ends 30 calendar days later with no exclusions for weekend days or holidays.(2) This 30-day period is set solely for the purpose of designating a time period during which the purchaser must provide documentation that shows that sales tax was paid on returned merchandise. The 30-day period is not intended to change a seller's policy on the time period during which the seller will accept returns.(j) Documenting exempt sales. A seller is not required to obtain an exemption certificate on sales of eligible items during the exemption period; however, the seller's records should clearly identify the type of item sold, the date on which the item was sold, and the sales price of each exempt item sold.",
            "sourceNote": "Source Note: The provisions of this §3.353 adopted to be effective April 21, 2016, 41 TexReg 2772."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=96892&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "96892",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.354",
                "label": "Debt Collection Services"
            },
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                "recordId": "190822",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Claim--Without limitation, any alleged right, entitlement, or demand, whether for money or property, arising out of or concerning any actual or alleged obligation, promise or indebtedness, howsoever arising, whether in law or in equity, in contract or in tort, whether secured or unsecured, actual or contingent, and whether liquidated or unliquidated.(2) Contingent fee--An arrangement whereby a debt collector agrees, by contract or otherwise, to accept as consideration for debt collection services a percentage of the amount actually collected, whether inclusive or exclusive of actual expenses incurred in performing such services.(3) Debt--Any obligation to pay a sum certain in money or other consideration.(4) Debt collection service--Any activity performed for consideration, to collect or adjust a delinquent debt, to collect or adjust a claim, or to repossess property subject to a claim, including any activity performed in furtherance of the satisfaction or compromise of a debt or claim.(5) Debt collector--Any person performing debt collection services.(6) Drawer--The payor who owns the account on which a check is drawn.(b) Responsibilities of debt collectors.(1) Tax is due and must be collected on the total charge for debt collection activities when:(A) the last known address of the debtor in the creditor's records at the time the account is placed for collection is in Texas; and(B) the creditor for whom the debt is collected is located in Texas or is engaged in business in Texas (as provided in Tax Code, §151.107) at the time the debt is referred for collection.(2) Collection of current credit and real estate accounts, including mortgage payments and rental payments, is not subject to tax under this rule. A current credit or real estate transaction is one that has not exceeded the later of the due date of the payment or the date on which a penalty or other contractual sanction attaches. Late charges for payment of mortgage payments are considered additional interest and not debt collection charges. Mortgage reinstatement fees following forfeiture of a mortgage are not considered debt collection charges.(3) The drawer of a dishonored check is responsible for paying the cost incurred to process a dishonored check including the sales tax due on the debt collection service.(4) Debt collectors must obtain a tax permit and collect tax on the entire sales price of their service, or accept a properly completed exemption certificate in lieu of collecting tax. See §3.287 of this title (relating to Exemption Certificates) and §3.322 of this title (relating to Exempt Organizations).(5) If a debt collector charges a contingent fee, the sales price is the amount actually withheld by or remitted to the debt collector for the performance of such services, including any amounts withheld or remitted for the purchase of taxable items used or consumed in performing the service.(c) Resale certificates.(1) A debt collector may issue a resale certificate in lieu of tax to a supplier of tangible personal property only if care, custody, and control of the property is transferred to the client. For example, a debt collector purchases magnetic tape to transfer the results of debt collection services to customers. The tape is transferred to the customer, and the customer owns and uses the tape to review the results of the service. Taxpayer may purchase the tape tax free by issuing a resale certificate. Tax is due on the total amount charged the customer, including amounts for the tape and for the services.(2) A resale certificate may be issued for a service if the buyer intends to transfer the service as an integral part of taxable services. A service will be considered an integral part of a taxable service if the service purchased is essential to the performance of the taxable service and without which the taxable service could not be rendered.(3) A resale certificate may be issued for a taxable service if the buyer intends to incorporate the service into tangible personal property which will be resold. If the entire service is not incorporated into the tangible personal property, it will be presumed the service is subject to tax and the service will only be exempt to the extent the buyer can establish the portion of the service actually incorporated into the tangible personal property. If the buyer does not intend to incorporate the entire service into the tangible personal property, no resale certificate may be issued, but credit may be claimed at the time of sale of the tangible personal property to the extent the service was actually incorporated into the tangible personal property.(d) Nontaxable services.(1) Activities undertaken by a debt collector to determine whether a creditor has a claim are not taxable if the debt collector determines not to attempt to collect or adjust the claim.(2) Collection of court-ordered child support or medical child support is not taxable.(3) Services that are provided by a person who acts as a trustee in connection with the foreclosure sale of real property under a lien that is created by a mortgage, deed of trust, or security instrument are not taxable.(e) Unrelated services.(1) A service will be considered as unrelated if:(A) it is not a debt collection service nor a service taxed under other provisions of Tax Code, Chapter 151;(B) it is of a type that is commonly provided on a stand-alone basis; and(C) the performance of the unrelated service is distinct and identifiable. Examples of an unrelated service that may be excluded from the tax base include charges for consultation, training, or collection of current mortgage payments.(2) If a combination of nontaxable unrelated services and taxable debt collection services is performed under the same contract, and the debt collection portion exceeds 5.0% of the overall charge, then the parties to the contract must separately identify taxable and nontaxable services along with the charges that apply to each, or else the entire contract is presumed to be for debt collection and is taxable. If the charge for the taxable portion of the services is not separately stated at the time of the transaction, the service provider or the purchaser may later establish for the comptroller, through the debt collector's books or other documentary evidence, the percentage of the total charge that relates to nontaxable unrelated services. Both parties must retain documentation that clearly defines the work that is performed to show that, had the nontaxable service and debt collection service been done independently, the charge for each would reasonably approximate the amount allocated. The comptroller may recalculate the charges if the allocation appears unreasonable and either party may be held responsible for the additional tax, penalty, and interest on the taxable services.(3) Charges for services or expenses directly related to and incurred while providing the taxable service are taxable and may not be separated for the purpose of excluding these charges from the tax base. Examples would be charges for meals, telephone calls, hotel rooms, or airplane tickets.(f) Service benefit location. If both the creditor and the debtor are located in Texas, Texas tax is due.(g) Service benefit location--multistate customer.(1) To the extent a debt collection service is used to benefit a separate, identifiable segment of a creditor's business (other than general administration or operation of the business) the service is presumed to be used at the location where that part of the creditor's business is conducted.(2) To the extent the use of the service cannot be assigned to an identifiable segment of a creditor's business, the service is presumed to be used to support the administration or operation of the creditor's business generally. The service is presumed to be used at the creditor's principal place of business. The principal place of business means the place from which the trade or business is directed or managed.(3) If a multistate customer claims that part of the debt collection service benefits the customer's business at locations both within and outside the state, the customer must provide the debt collection service provider with an exemption certificate in lieu of tax. It will then be the customer's responsibility to report the tax to this office for that portion of service that benefits Texas locations. The service will not be taxable to the extent the customer can establish benefit outside Texas. A multistate creditor may use any reasonable method for allocation which is supported by business records.(4) A debt collector who accepts a certificate in good faith is relieved of responsibility for collecting and remitting tax on transactions to which the certificate relates.(h) Local taxes.(1) Local sales tax. Local sales taxes (city, county, transit authority, and special purpose district) apply to debt collection services in the same way they apply to tangible personal property. Generally, service providers must collect local sales taxes if their place of business is within a local taxing jurisdiction, even if the service is actually provided at a location outside that jurisdiction.(A) Transit sales taxes do not apply to services provided outside the boundaries of the transit area.(B) In the case of multiple locations, if an order for service is placed at one location but the service is provided at another location, the place of business from which the service is provided will determine to which local taxing entity the tax is allocated.(2) Local use tax.(A) If the service provider's place of business is outside a local taxing jurisdiction but service is provided to a customer within a local taxing jurisdiction, local use taxes apply and the service provider is responsible for collecting the local use tax if the service provider has representation in the local jurisdiction.(B) If a customer of a service provider located outside a local taxing jurisdiction claims that part of the debt collection service benefits the customer's business in more than one local taxing jurisdiction, the customer must provide the service provider with an exemption certificate in lieu of use tax. (This claim may be asserted and the exemption certificate issued only in situations where use tax is due and does not apply when local sales tax is applicable.) The local use tax for each local taxing jurisdiction to which the exemption certificate applies must be reported, allocated, and paid by the customer. A debt collector who accepts in good faith an exemption certificate claiming benefit in more than one local taxing jurisdiction is relieved of responsibility for collecting and remitting local use tax on transactions to which the certificate relates.(3) References. For more information on the collection and allocation of local sales and use taxes, see §3.374 of this title (relating to Collection and Allocation of the City Sales Tax), §3.375 of this title (relating to City Use Tax), §3.424 of this title (relating to Collection and Allocation of Transit Sales Tax), and §3.425 of this title (relating to Transit Use Tax).(i) A multistate creditor purchasing debt collection services for the benefit of both in-state and out-of-state locations is responsible for issuing an exemption certificate and for reporting and paying local tax as provided by subsection (g) of this section.(j) Use tax. If a debt collector is not engaged in business in Texas or in a specific local taxing jurisdiction and is not required to collect Texas tax, it is the Texas creditor's responsibility to report and pay the state and local use tax to this office.",
            "sourceNote": "Source Note: The provisions of this §3.354 adopted to be effective March 24, 1988, 13 TexReg 1222; amended to be effective November 13, 1989, 14 TexReg 5787; amended to be effective December 11, 1992, 17 TexReg 8332; amended to be effective March 23, 1995, 20 TexReg 1749; amended to be effective February 7, 1996, 21 TexReg 601; amended to be effective October 9, 2002, 27 TexReg 9386."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190822&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "190822",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
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            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.355",
                "label": "Insurance Services"
            },
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            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Affiliated group--A group of one or more entities in which a controlling interest is owned by a common owner or owners, either corporate or noncorporate, or by one or more of the member entities.(2) Certified public accountancy firm--A person who holds a firm license issued under Occupations Code, Chapter 901, Subchapter H (Firm License Requirements), or a firm that practices public accountancy in this state under Occupations Code, §901.461 (Practice by Certain Out-of-State Firms).(3) Controlling interest--(A) for a corporation, either more than 50%, owned directly or indirectly, of the total combined voting power of all classes of stock of the corporation, or more than 50%, owned directly or indirectly, of the beneficial ownership interest in the voting stock of the corporation;(B) for a partnership, association, trust, or other entity other than a limited liability company, more than 50%, owned directly or indirectly, of the capital, profits, or beneficial interest in the partnership, association, trust, or other entity; and(C) for a limited liability company, either more than 50%, owned directly or indirectly, of the total membership interest of the limited liability company or more than 50%, owned directly or indirectly, of the beneficial ownership interest in the membership interest of the limited liability company.(4) Insurance loss or damage appraisal--Any activity performed for purposes of valuing damages, or estimating the quantity, value, or extent of loss of property. Appraisal activities performed prior to damage or loss, such as the appraisal of jewelry for scheduling on a homeowners insurance policy, are not considered loss or damage appraisal.(5) Insurance inspection--Any activity performed to evaluate risks to property, to survey or value property in connection with the furnishing of insurance coverage, or any other similar activity.(6) Insurance investigation--Any activity performed to evaluate an individual's eligibility or qualifications for insurance coverage, or for the payment of benefits, or any other similar activity. For example, the assembly or evaluation of information for the purpose of determining whether to issue a life insurance policy to a specific individual would be considered an insurance investigation.(7) Insurance or annuity actuarial analysis or research--Any activity performed in connection with the calculation of rates for a policy of insurance or annuity rates, reserves, refunds, dividends, insurance benefits, or other similar activities.(8) Insurance claims adjustment or claims processing--Any activities to supervise, handle, investigate, pay, settle, or adjust claims or losses.(9) Insurance loss prevention service--Any activities performed in an effort to identify, analyze, evaluate, control, anticipate and/or eliminate the occurrence of accidents, losses, or damage. Examples include: survey recommendations, training programs, consultations, analysis of accident causes, and industrial hygiene and health services.(10) Insurance carrier--Every type of insurer engaged in the business of insurance that is licensed or operates under or is required to be licensed or to operate under the provisions of the Insurance Code.(11) Public insurance adjuster--A person, as set out in Insurance Code, §4102.001(3), who:(A) for direct, indirect, or any other compensation:(i) acts on behalf of an insured in negotiating for or effecting the settlement of a claim or claims for loss or damage under any policy of insurance covering real or personal property; or(ii) on behalf of any other public insurance adjuster, investigates, settles, or adjusts or advises or assists an insured with a claim or claims for loss of damage under any policy of insurance covering real or personal property; or(B) advertises, solicits business, or holds himself or herself out to the public as an adjuster of claims for loss or damage under any policy of insurance covering real or personal property.(12) Self-insured plan--A plan whereby an employer maintains funds for providing employee benefits rather than transferring risk by purchasing insurance from an insurance carrier. This plan is not considered a policy of insurance for sales tax purposes.(13) Third-party administrator--A person hired by an employer to administer the provisions of the employer's self-insured plan.(b) Taxable services. Insurance services defined in subsection (a) of this section performed on behalf of an insurance carrier, its insured, its policyholders, or others pertaining to a policy or policies of insurance for monetary fees, dues, or other consideration are taxable. These services performed pursuant to a self-insured plan or for a third-party administrator handling distribution of funds under a self-insured plan are not taxable.(c) Nontaxable services. The following services are not taxable as insurance services:(1) insurance coverage for which a premium is paid or sales commissions are paid to insurance agents. Insurance services provided by an insurance agent without charge to the customer are not taxable. If a customer pays a separate amount for these services over and above the amount paid as a commission for a policy, this separate charge is taxable;(2) medical services provided by any medical provider, including physicians, medical staff at the physician's direction, hospitals, clinics, chiropractors, and other practitioners of the healing arts;(3) services related to automobile warranties or service contracts for which the State Board of Insurance allows an exclusion to third-party administrators;(4) services performed on behalf of an insured by a public insurance adjuster on or after October 1, 2015. Insurance services performed by a public insurance adjuster before October 1, 2015, are subject to tax regardless of the date billed, invoiced, or paid;(5) effective January 1, 2018, services performed by a certified public accountancy firm, if less than one percent of the firm's total revenue in the prior calendar year is from services in this state that would otherwise constitute taxable insurance services, as described in subsection (b) of this section; and(6) effective January 1, 2018, services performed on behalf of a certified public accountancy firm by an owner of the firm or a member of the firm's affiliated group, if less than one percent of the owner's or member's total revenue in the prior calendar year is from services in this state that would otherwise constitute taxable insurance services, as described in subsection (b) of this section.(d) Doing business. Insurance services will be subject to taxation in Texas if the individual, entity, or property which is the object of the service is in Texas and the company for which the services are performed is either an insurance carrier as that term is defined in subsection (a)(10) of this section, or if not an insurance carrier, is doing business in Texas.(e) Fees and premiums. Insurance premiums and any other form of compensation subject to gross administrative or service fees taxes under the Insurance Code are subject to tax hereunder if paid in connection with the performance of an insurance service. Insurance premiums subject to gross premiums taxes under the Insurance Code are not subject to sales tax.(f) Not insurance related. Where an insurance service is performed as a part of a nontaxable service and the primary purpose for purchasing the nontaxable service is not insurance related, no part of the fee or charge is taxable. For example, the charge for an appraisal required by a lender as a condition of extending credit is not taxable as an insurance service because the primary purpose in obtaining the service is financing the loan. The fact that the appraisal may also be used as the basis for establishing minimum property insurance required by the lender as a condition of financing does not render the service taxable as an insurance service.(g) Responsibilities of persons providing insurance services. Persons providing insurance services must obtain a tax permit and collect tax on the entire sales price of their services. The presumption is that all services are taxable unless the service provider obtains an exemption certificate from a customer claiming an exemption. For example, a third-party administrator may issue an exemption certificate for charges for claim adjustment activities done pursuant to a self-insured plan.(h) Resale certificates.(1) Providers of insurance service may issue a resale certificate in lieu of tax to suppliers of tangible personal property only if care, custody, and control of the property will be transferred to the service provider's client. For example, an insurance service provider purchases magnetic tape to transfer the results of actuarial research to service provider's client. The tape is transferred to the client and the client owns and uses the tape to review the results of the actuarial research. The insurance service provider may purchase the tape tax free by issuing a resale certificate. Tax is due on the total amount charged the customer, including amounts for the tape and for the services.(2) A resale certificate may be issued for a service if the buyer intends to transfer the service as an integral part of taxable services. A service will be considered an integral part of a taxable service if the service purchased is essential to the performance of the taxable service and without which the taxable service could not be rendered.(3) A resale certificate may be issued for a taxable service if the buyer intends to incorporate the service into tangible personal property which will be resold. If the entire service is not incorporated into the tangible personal property, it will be presumed the service is subject to tax and the service will only be exempt to the extent the buyer can establish the portion of the service actually incorporated into the tangible personal property. If the buyer does not intend to incorporate the entire service into the tangible personal property, no resale certificate may be issued, but credit may be claimed at the time of sale of the tangible personal property to the extent the service was actually incorporated into the tangible personal property.(i) Unrelated services.(1) A service will be considered as unrelated if:(A) it is not an insurance service, nor a service taxed under other provisions of Tax Code, Chapter 151;(B) it is of a type which is commonly provided on a stand-alone basis; and(C) the performance of the unrelated service is distinct and identifiable. Examples of an unrelated service which may be excluded from the tax base include activities as third-party administrators, appraisals for reasons other than loss or damage, or doctor's fees.(2) Where nontaxable unrelated services and taxable services are sold or purchased for a single charge and the portion relating to taxable services represents more than 5.0% of the total charge, the total charge is presumed to be taxable. The presumption may be overcome by the insurance service provider at the time the transaction occurs by separately stating to the customer a reasonable charge for the taxable services. However, if the charge for the taxable portion of the services is not separately stated at the time of the transaction, the service provider or the purchaser may later establish for the comptroller, through documentary evidence, the percentage of the total charge that relates to nontaxable unrelated services. The insurance service provider's books must support the apportionment between exempt and nonexempt activities based on the cost of providing the service or on a comparison to the normal charge for each service if provided alone. If the charge for exempt services is unreasonable when the overall transaction is reviewed considering the cost of providing the service or a comparable charge made in the industry for each service, the comptroller will adjust the charges and assess additional tax, penalty, and interest on the taxable services.(3) Charges for services or expenses directly related to and incurred while providing the taxable service are taxable and may not be separated for the purpose of excluding these charges from the tax base. Examples would be charges for meals, telephone calls, hotel rooms, or airplane tickets.(j) Service benefit location--multistate customer.(1) To the extent an insurance service is used to support a separate, identifiable segment of a customer's business (other than general administration or operation of the business) the service is presumed to be used at the location where that part of the business is conducted.(2) If that part of the business is conducted at locations both within and outside the state, the service is not taxable to the extent it is used outside Texas. A multistate customer may use any reasonable method for allocation which is supported by business records.(3) A multistate customer purchasing insurance services, such as actuarial services, for the benefit of both in-state and out-of-state locations is responsible for issuing to the insurance services provider an exemption certificate asserting a multistate benefit, and for reporting and paying the tax on that portion of the insurance services charge which will benefit the Texas location. A provider of insurance services that accepts such a certificate in good faith is relieved of responsibility for collecting and remitting tax on transactions to which the certificate relates.(4) The customer's books must support the assignment of the service to an identifiable segment of the business, the determination of the location or locations of the use of the service, and the allocation of the taxable charge to Texas.(5) To the extent the use of the service cannot be assigned to an identifiable segment of a customer's business, the service is presumed to be used to support the administration or operation of the customer's business generally. The service is presumed to be used at the customer's principal place of business. The principal place of business means the place from which the trade or business is directed or managed.(k) Local tax. For information on the collection and reporting responsibilities of providers and purchasers of taxable services, see §3.334 of this title (relating to Local Sales and Use Taxes).(l) Use tax. If a provider of an insurance service is not doing business in Texas or in a specific local taxing jurisdiction and is not required to collect Texas state or local tax, it is the Texas customer's responsibility to report and pay the use tax directly to this office.",
            "sourceNote": "Source Note: The provisions of this §3.355 adopted to be effective March 24, 1988, 13 TexReg 1224; amended to be effective November 13, 1989, 14 TexReg 5787; amended to be effective May 2, 1990, 15 TexReg 2284; amended to be effective March 23, 1995, 20 TexReg 1749; amended to be effective May 1, 2016, 41 TexReg 2970; amended to be effective May 7, 2018, 43 TexReg 2794."
        },
        {
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            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
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                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
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            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.356",
                "label": "Real Property Service"
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Employee--A person providing services for another for consideration where the employer has the right to control and direct the employee in the material details of how the work is to be performed, both under the contract of employment and in fact. The term also includes personnel provided by a temporary help service, as defined in paragraph (10) of this subsection.(2) Employer--In determining which of several persons is the employer of an individual, factors which will be considered include:(A) who exercises direct control over the details of how the work is performed by the employee;(B) who pays the employee's salary;(C) who withholds applicable federal taxes from the employee's salary;(D) who provides employment-related benefits such as health insurance, eligibility to participate in a retirement plan, sick leave, vacation, etc., to the employee; and(E) who has the right to terminate the employment of the individual employee.(3) Garbage or other solid waste--Waste; refuse; sludge from a waste treatment plant, a water supply treatment plant, or an air pollution control facility; and other discarded material, including solid, liquid, semisolid, or contained gaseous material, resulting from residential, industrial, municipal, commercial, mining, and agricultural operations, and resulting from community and institutional activities. The term does not include any of the following:(A) solid or dissolved material in domestic sewage; or solid or dissolved material in irrigation return flows; or industrial discharges subject to regulation by permit issued pursuant to the Texas Water Code, Chapter 26;(B) waste materials which result from activities associated with the exploration, development, or production of oil, gas, geothermal resources, or any other substance or material regulated by the Railroad Commission of Texas pursuant to Natural Resources Code, §91.101;(C) any waste which requires specific licensing under Health and Safety Code, Chapter 401, and the rules adopted by the Texas Board of Health under that law, which for the purposes of this rule shall be referred to as radioactive waste;(D) hazardous waste, as identified or listed as a hazardous waste by the administrator of the United States Environmental Protection Agency or by other appropriate federal or state agency; or(E) industrial solid waste, as that term is defined in Health and Safety Code, Chapter 361, with the exception of industrial solid waste which meets the definition of garbage or municipal solid waste.(4) Landscaping--The activity of arranging and modifying areas of land, natural scenery and other areas, such as indoor or outdoor patios, for aesthetic effect, considering the use to which the land is to be put. The term includes adding, removing, or arranging natural forms, features, and plantings, including vegetation, and other features to fulfill aesthetic requirements. It includes the application of soil, soil additives, and amendments to prepare or maintain the planting area. Some examples are garden planting or maintenance, arborist services, ornamental bush or shrub planting, tree planting or removal, tree surgery, pruning or spraying, and lawn sodding. The term does not include the addition of sprinkler systems, retaining walls, ponds, pools, or fences, or other construction activities or services provided by landscape designers or landscape architects such as consultation, research, preparation of general or specific design or detail plans, studies, specifications, or supervision, or any other professional services or functions within the definition of the practice of engineering or architecture. Landscaping services performed by landscape designers or landscape architects are taxable.(5) Lawn and yard maintenance--Mowing, trimming, fertilizing, watering and any other treatment or service which may be performed on private or commercial yards or lawns. It also includes maintenance of trees and plants whether inside or outside a building. The term does not include clearing land for buildings, power line rights-of-way, pipeline rights-of-way, or maintenance on land belonging to a governmental entity when the service is required by the governmental entity.(6) Property management company--A person who, for consideration, operates and manages all the activities at a property held by the owner for purposes of rental, such as: an office building, mall or other retail or office complex, an apartment complex, duplex, or home. In the context of this rule, the responsibilities of a property management company must include, but are not limited to, securing tenants, hiring and supervising employees for operation or upkeep of the property, receiving and applying revenues, and incurring and paying expenses derived from the operation of the property as directed by the owner. The term does not include a person performing taxable services at a manufacturing facility or at a property held by the owner for purposes other than rental.(7) Residential or nonresidential building or grounds cleaning, janitorial, or custodial services--The activities of keeping the inside and outside premises of a building clean, orderly, and functional, including performing minor adjustments, maintenance, or repairs. Examples include, but are not limited to: window washing; floor, wall, and ceiling cleaning; collection of waste on the premises, whether from inside a building or on the grounds; chimney or duct cleaning; lighting maintenance, such as bulb and fuse replacement; the cleaning, disinfecting, and restocking of restrooms or lounge areas; cleaning or washing sidewalks, parking garages, or parking lots; and pool cleaning and maintenance. The term does not include activities such as painting; wallpapering; or performing significant repairs; nor domestic services such as those of a baby-sitter, maid or cook employed by a private household to provide domestic services for the benefit of the household.(8) Structural pest control services--Activities performed for the purpose of identifying, preventing, controlling, or eliminating, by use of chemical or mechanical means, infestation of any of the following:(A) insects, spiders, mites, ticks, ants, bees, and other related pests, wood infesting organisms, rodents, weeds, nuisance birds, or any other obnoxious or undesirable animals which may infest households, railroad cars, ships, docks, trucks, airplanes or other structures or their contents;(B) pests or diseases of trees, shrubs or other plantings in a park or adjacent to a residence, business establishment, industrial plant, institutional building, or street; and(C) the term \"structural pest control services\" includes related activities, such as inspection or evaluation concerning the nature or extent of an infestation; reports; or performance of services to control pest or insect infestation.(9) Surveying of real property--Activities performed to determine or confirm the boundaries of real property, or to determine or confirm the location of structures or other improvements in relation to the boundaries of the property by the use of relevant elements of law, research, measurement, analysis, computation, mapping and land description. Examples include, but are not limited to, boundary recovery, residential surveying, lot surveying, title surveying, as-built title surveying, and right-of-way surveying. The term does not include activities performed after taxable surveying has been completed to search the surveyed area for items of archaeological or historic significance.(10) Temporary help service--An individual, company, or corporation covered by Industry Group 7363, Group 736, Major Group 73 of the Standard Industrial Classification Manual, 1989, and includes an individual, company, or corporation that supplies personnel on a temporary basis to supplement a customer's existing work force. In the context of this section, such temporary personnel must perform a service that is normally performed by the customer's own employees; the customer must provide all supplies and equipment necessary; and the temporary personnel must be under the direct or general supervision of the customer to whom the help is furnished.(b) Responsibilities of persons providing real property services on both residential and nonresidential real property. With the exception of terms defined by subsection (a)(6) and (10) of this section, persons providing services defined in subsection (a) of this section are performing real property services. Persons performing real property services must obtain a tax permit and collect and remit sales or use taxes on all charges for real property services.(c) Resale certificates.(1) A properly completed resale certificate may be used to purchase tangible personal property tax free if the care, custody, and control of the property is transferred to the customer as part of the real property service. For example, a taxpayer purchases paper products to be left at the customer's premises when providing janitorial services, or garbage dumpsters to leave on the customer's premises as a part of the garbage collection service. Taxpayer may purchase the paper products and dumpsters tax free by issuing a resale certificate. Tax is due on the total amount charged the customer, including amounts for the paper products, dumpster, and for the services.(2) A properly completed resale certificate may be issued for a service if the buyer intends to transfer the service as an integral part of a taxable service. A service will be considered an integral part of a taxable service if the service purchased is essential to the performance of the taxable service and without which the taxable service could not be rendered. See §3.285 of this title (relating to Resale Certificate; Sales for Resale).(3) A properly completed resale certificate may be issued to purchase a taxable service tax free if the buyer intends to incorporate the service into tangible personal property which will be resold. If the entire service is not incorporated into the tangible personal property, it will be presumed the service is subject to tax and the service will only be exempt to the extent the buyer can establish the value of that portion of the service actually incorporated into the tangible personal property. If the buyer does not intend to incorporate the entire service into the tangible personal property, the buyer may not issue a resale certificate but he may claim credit at the time of sale of the tangible personal property for the portion of the service that was actually incorporated into the tangible personal property.(d) Exemption certificates. Persons providing real property services may accept a properly completed exemption certificate in lieu of tax when the service is purchased by an exempt entity. See §3.322 of this title (relating to Exempt Organizations), §3.287 of this title (relating to Exemption Certificates) and §3.288 of this title (relating to Direct Payment Procedures and Qualifications).(e) Landscaping, lawn, and yard maintenance provided by persons under 18 years old or by persons 65 years old or older. Charges for the performance of landscaping, lawn, and yard maintenance services (subsection (a)(4) and (5) of this section) are exempt if performed by:(1) a self-employed person under 18 years of age whose total receipts from providing landscaping, lawn, or yard maintenance are $1,000 or less during either the preceding calendar quarter or the same calendar quarter of the preceding year; or(2) an individual 65 years of age or older whose total receipts from providing landscaping or yard maintenance are $5,000 or less for the four most recent quarters.(f) Landfill charges connected with garbage collection services. Persons providing garbage collection services may not separate in the bill to their customers the charge for garbage collection from the charge for use of the landfill for the purpose of reducing the amount upon which tax must be collected. The charge paid by the service provider for access to the landfill, while not taxable to the service provider, is a necessary expense in providing the garbage collection service and is not excludable from the fee to the service provider's customer for garbage collection.(g) Garbage removal facilities. When a city, county, or any other entity provides a facility where garbage may be left and which will, at another time, be moved to a landfill, the fee charged to persons depositing garbage into such a facility is considered to be a charge for garbage collection and is taxable.(h) Garbage collection services that may be excluded from tax. Persons providing collection services for customers having waste excluded from the definition of \"garbage or other solid waste\" may accept an exemption certificate from the customer in lieu of tax. The exemption certificate must state the type of waste being excluded, and that either the waste to be collected is totally excludable or that the customer has both taxable and nontaxable waste and the customer will be responsible for accruing tax on that portion of the charge which represents taxable services. The customer may use any reasonable allocation for reporting tax on taxable services which is supportable by books and records.(i) Unrelated services.(1) A service will be considered as unrelated if:(A) it is not a real property service, nor a service or labor taxable under another provision of the Tax Code, Chapter 151;(B) it is not provided as a part of the taxable service and is of a type which is commonly provided on a stand-alone basis; and(C) the performance of the unrelated service is distinct and identifiable. Examples of an unrelated service which may be excluded from the tax base include maintenance charges meeting the definition in §3.357 of this title (relating to Labor Relating to Nonresidential Real Property Repair, Remodeling Restoration, Maintenance, New Construction, and Residential Property), engineering studies, and architectural or landscaping designs.(2) When nontaxable unrelated services and taxable services are sold or purchased for a single charge and the portion relating to taxable services represents more than 5.0% of the total charge, the total charge is presumed to be taxable. The presumption may be overcome by the service provider at the time the transaction occurs by separately stating to the customer a reasonable charge for the taxable services. However, if the charge for the taxable portion of the services is not separately stated at the time of the transaction, the service provider or the purchaser may later establish for the comptroller, through documentary evidence, the percentage of the total charge that relates to nontaxable unrelated services. A customer may presume that a separately stated charge from a service provider for taxable services is reasonable, in the context of this section. The service provider's books must support the apportionment between exempt and nonexempt activities based on the cost of providing the service or on a comparison to the normal charge for each service if provided alone. If the charge for exempt services is unreasonable when the overall transaction is reviewed, considering the cost of providing the service or a comparable charge made in the industry for each service, the comptroller will adjust the charges and assess the service provider the additional tax, penalty, and interest on the taxable services.(3) Charges for services or expenses directly related to or incurred while providing the taxable service are taxable and may not be separated for the purpose of excluding these charges from the tax base. Examples include charges for meals, telephone calls, hotel rooms, or airplane tickets.(j) Governmental entities. When garbage collection services are provided by a governmental entity without a specific charge being assessed, such as when this service is provided as a basic part of services funded by a tax or a set fee structure of the governmental entity, sales or use taxes are not due. This section does not apply if the fee changes each billing period based on quantity of consumption of tangible personal property or service provided individual service recipients.(k) Local taxes. With the exception of garbage or other solid waste removal services, local sales and use taxes apply to services in the same way as they apply to tangible personal property. Generally, service providers must collect local sales taxes if their place of business is within a local taxing jurisdiction, even if the service is actually provided at a location outside that jurisdiction. However, transit sales taxes do not apply to services provided outside the boundaries of the transit area. If the service provider's place of business is outside a local taxing jurisdiction but the service is provided to a customer within a local taxing jurisdiction, local use taxes apply and the service provider is required to collect them. Local taxes for garbage or other solid waste removal services are allocated to the local taxing jurisdiction in which the garbage or other solid waste is located when its collection or removal begins.(l) For general information on the collection and reporting responsibilities of providers and purchasers of taxable services, see §§3.286, 3.374, 3.375, 3.424, and 3.425 of this title (relating to Seller's and Purchaser's Responsibilities; Imposition of the Sales Tax; Collection by Retailer; Bracket System Formula; Determining City Tax, Administration of Use Tax; Collection by Retailer, Imposition of Sales Tax, and Administration of Use Tax; Imposition and Collection).(m) Use tax. If a seller of a taxable service is not doing business in Texas or a specific local taxing jurisdiction and is not required to, or does not voluntarily, collect and report the applicable Texas tax, it is the Texas customer's responsibility to report and pay the use tax directly to this office.(n) Property management companies.(1) Employees permanently assigned to one rental property are considered employees of that property when the property manager is reimbursed by the property owner on a dollar-for-dollar basis. On managed rental properties, the employees remain assigned to the property while employed by successive owners or management companies. The reimbursement charge for taxable services performed on a managed rental property by management company employees assigned to it will not be taxable. However, if these same employees provide real property services for other properties, the property manager must collect tax on the total charge for those services. The management company owes tax on the purchase price of all taxable items purchased and provided to the employees providing services on managed rental property.(2) Property management companies whose employees provide taxable services as part of their overall management and operation of a rental property need not collect tax on those services if their value is insignificant.(A) Such taxable services will be considered insignificant in any billing period in which their value is 5.0% or less of the amount charged by the management company for services. The amount charged by the management company for taxable services is to be determined by deducting from the management company's total charge any mortgage payments made by the management company for the property owner and any amounts paid to persons other than employees of the management company for goods and services.(B) If the value of the taxable services exceeds the 5.0% limit, the entire amount charged by the management company will be considered taxable unless charges for taxable services are separately itemized and taxed as provided under subsection (i)(2) of this section.(3) Purchases by the property management company for use by the property owner of taxable goods, labor, or services from third-party suppliers may be handled in either of the following ways:(A) the management company may issue a resale certificate to the supplier and collect tax from the property owner on the itemized charge for the goods, labor, or service; or(B) the management company may pay tax to the supplier and collect from the property owner an amount equal to the total of the amount paid by the management company for the goods, labor, or services and the tax paid.",
            "sourceNote": "Source Note: The provisions of this §3.356 adopted to be effective April 1, 1988, 13 TexReg 1343; amended to be effective April 24, 1989, 14 TexReg 1790; amended to be effective December 6, 1991, 16 TexReg 6760; amended to be effective March 23, 1995, 20 TexReg 1749."
        },
        {
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            "currentRecordId": "92385",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
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                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
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                "number": "3",
                "label": "TAX ADMINISTRATION"
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            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.357",
                "label": "Nonresidential Real Property Repair, Remodeling, and Restoration; Real Property Maintenance. (Tax Code, §§151.0047, 151.0101, 151.056, 151.058, 151.311, 151.350, 151.429)"
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Consumable items--Nondurable tangible personal property that is used to improve real property and that, after being used once for its intended purpose, is completely used or destroyed. Examples include, but are not limited to, nonreusable concrete forms, nonreusable drop cloths, barricade tape, natural gas, and electricity. Consumable items do not include incorporated materials, machinery, equipment, accessories to machinery and equipment, repair and replacement parts of machinery and equipment, or any rented or leased item.(2) Contractor--Any person who builds new improvements to residential or nonresidential real property; completes any part of an uncompleted structure that is an improvement to residential or nonresidential real property; makes improvements to real property as part of periodic and scheduled maintenance of nonresidential real property; or repairs, restores, maintains, or remodels residential real property; and who, in making the improvement, incorporates tangible personal property into the real property that is improved. The term includes subcontractors but does not include material men, suppliers, or persons who provide taxable real property services. Contractors should refer to §3.291 of this title (relating to Contractors). Persons who provide real property services should refer to §3.356 of this title (relating to Real Property Service). Persons who repair, restore, or remodel chemical plants or petrochemical refineries should refer to §3.362 of this title (relating to Labor Relating to Increasing Capacity in a Production Unit in a Petrochemical Refinery or Chemical Plant).(3) Disaster area--An area that the Governor of Texas declares a disaster under the Government Code, Chapter 418, or that the President of the United States declares a disaster under 42 United States Code, §5141.(4) Equipment--Tangible personal property that is used in the performance of a contract to improve real property, such as tools, machinery, implements, accessories, repair and replacement parts, or any item that is rented or leased. Equipment includes all items that do not meet the definitions of consumable items or incorporated materials.(5) Incorporated materials--Tangible personal property that loses its distinct and separate identity when incorporated into real property. Examples of incorporated materials include framing lumber, bricks, concrete, doors, and windows.(6) Labor--For the purposes of this section, labor means all components of a transaction or contract directly related to the remodeling, repair, or restoration other than those components attributable to materials incorporated into the realty. Unrelated components, such as charges by engineers and architects, are also part of the labor component unless separately stated to the customer.(7) Maintenance on real property--For operational and functional improvements to realty, maintenance means scheduled, periodic work that is necessary to sustain or support safe, efficient, continuous operations, or to prevent the decline, failure, lapse, or deterioration of the improvement. Taxable real property services that are described by §3.356 of this title (relating to Real Property Service) do not qualify as maintenance. Maintenance does not include work to remodel, modify, upgrade, perform major repair, or restore, even if the work is scheduled or periodic.(A) As it relates to maintenance, the term \"scheduled\" means anticipated and designated to occur within a given time period or production level.(B) As it relates to maintenance, the term \"periodic\" means ongoing or continual or at least occurring at intervals of time or production that are reasonably predictable.(C) The scheduled shutdown or turnaround of a manufacturing or processing plant is considered to be maintenance within the meaning of this definition.(8) New construction--All new improvements to real property including initial finish out work to the interior or exterior of the improvement. An example is a multiple story building that has had only its first floor finished and occupied. The initial finish out of each additional floor before initial occupancy or use is considered new construction. New construction also includes the addition of new, usable square footage to an existing structure. Examples are the addition of a new wing onto an existing building, or the addition of a new mezzanine level within an existing building. Reallocation of existing square footage inside a structure is remodeling and does not constitute the addition of new, usable square footage. For example, the removal or relocation of interior walls to expand the size of a room, or the finish out of an office space that was previously used for storage, is remodeling. Raising the ceiling of a room or the roof of a building is not new construction unless new, usable square footage is created.(9) Prior contract--A written contract, or a written bid that becomes a written contract, into which the parties enter before the effective date of the applicable section of the Tax Code. See §3.319 of this title (relating to Prior Contracts).(10) Real property--Land, including structures and other improvements that are embedded into or permanently affixed to the land.(11) Remodeling or modification--To rebuild, replace, alter, modify, or upgrade existing real property. However, the replacement of an item that is within an operational and functional improvement to realty is not taxable remodeling or modification when the work is scheduled and periodic maintenance as defined in paragraph (7) of this subsection. Improvements to manufacturing or production units of chemical plants or petrochemical refineries that meet the definition of increased capacity are not remodeling or modification services. See §3.362 of this title (relating to Labor Relating to Increasing Capacity in a Production Unit in a Petrochemical Refinery or Chemical Plant). Work that is performed after the initial finish out has been completed is remodeling even when the improvement has not been occupied or used. For example, a prospective tenant wants the unit of a completely finished out shopping complex repainted before the tenant leases the unit. The repainting is remodeling. Partial demolition of existing nonresidential realty is taxable remodeling. The complete demolition of an existing nonresidential improvement to real property is neither remodeling nor modification and is not taxable.(12) Repair--To mend or bring back real property that was broken, damaged, or defective as near as possible to its original working order. However, minor repair work that is performed on operational and functional improvements to realty is not taxable repair if the work is done in accordance with paragraph (7) of this subsection.(13) Residential property--Property that is used as a family dwelling, multifamily apartment or housing complex, nursing home, condominium, or retirement home. The term includes homeowners association-owned and apartment-owned swimming pools, laundry rooms, and other common areas for tenants' use. Common areas of mixed residential and nonresidential property are allocated or prorated based on the ratio of residential to nonresidential use of the property. The term does not include any commercial area open to nonresidents, retail outlets, hospitals, hotels, or any other facilities that are subject to the hotel occupancy tax.(14) Restoration--An activity that is performed to bring back real property that is still operational and functional but that has faded, declined, or deteriorated, as near as possible to its original condition. Minor restorative work that is performed within the meaning of paragraph (7) of this subsection is maintenance, not restoration.(15) Unrelated service. A service is unrelated if:(A) it is not the repair, remodeling, or restoration of nonresidential real property, nor a service or labor that is taxable under any other provision of the Tax Code, Chapter 151;(B) it is of a type that is commonly provided on a stand-alone basis; and(C) the performance of the service is distinct and identifiable. Examples of unrelated services that may be excluded from the tax base are the creation of engineering plans or architectural designs, new construction, increased capacity, and maintenance on real property.(b) Tax responsibilities of persons who repair, remodel, or restore nonresidential real property.(1) All persons who repair, restore, or remodel nonresidential real property must obtain Texas sales and use tax permits. Persons who construct new improvements to realty, perform maintenance on real property, or repair, restore, or remodel residential real property should refer to §3.291 of this title (relating to Contractors).(2) All persons who repair, restore, or remodel nonresidential real property must collect tax on the total sales price to the customer less separately stated charges for unrelated services. The total sales price does not include Texas sales or use tax that the service provider must collect from customers. See §3.286 of this title (relating to Seller's and Purchaser's Responsibilities). The service provider may, in good faith, accept valid resale, exemption, or direct payment exemption certificates in lieu of tax. Previously, lump-sum and separated contracts were treated differently for tax purposes. This distinction is no longer valid when the contract is for the repair, remodeling, or restoration of nonresidential real property.(3) A contract that involves both nonresidential repair, restoration, or remodeling and new construction is taxable in total unless the charge for new construction labor is separately stated to the customer as outlined in paragraph (7) of this subsection. An example is remodeling a restaurant's kitchen at the same time that a new dining area outside the existing structure is added. Work on the kitchen is taxable as remodeling, while the construction of the new dining area is nontaxable new construction. Minor repair, restoration, or remodeling that is performed in connection with new construction is not taxable if the portion of the charge that is attributed to repair, restoration, or remodeling is 5.0% or less of the overall lump-sum charge. All separately stated charges for repair, restoration, remodeling, or other taxable services are taxable, even if they constitute 5.0% or less of the total contract price.(4) All persons who repair, restore, or remodel nonresidential real property owe tax at the time of purchase on all machinery, equipment, materials, and supplies that are used but not incorporated into the realty. The service provider is not entitled to a credit for tax paid on taxable items that are used but not incorporated into the realty.(5) Items used in performing repairs, remodeling, or restoration for exempt entities.(A) Persons who repair, remodel, or restore real property or make improvements to real property for entities exempted by Tax Code, §151.309 or §151.310, may claim an exemption for tangible personal property used in those activities if the tangible personal property is incorporated into real property in the performance of the contract.(B) Person who repair, remodel, or restore real property or make improvements to real property for entities that are exempted under Tax Code, §151.309 or §151.310, may claim an exemption for the purchase of taxable services that are used in those activities if the service is performed at the job site and if the contract requires the specific service to be provided or purchased by the person who makes the improvement to realty, or the service is integral to the performance of the contract.(C) Persons who use consumable items in the improvement of realty that is repaired, remodeled, or restored for entities that are exempt under Tax Code, §151.309 or §151.310, may claim an exemption for the purchase of a consumable item if use of the item is necessary for the performance of the contract and the item is completely consumed at the job site.(D) Persons who repair, restore, or remodel real property may issue a properly completed exemption certificate in lieu of tax for the purchase of items that are identified in subparagraphs (A) through (C) of this paragraph. The exemption certificate must show the service provider as the purchaser and must identify the exempt entity for whom the improvements are made and the project for which the items are purchased.(6) Repair, restoration, or remodeling that is performed upon a structure that is used both for residential and commercial purposes is taxable in total unless the labor on the residence is separately identified. The labor to repair, restore, or remodel the residence will not be taxable if separately stated. The charge for repair, restoration, or remodeling to common areas of mixed residential and nonresidential property is taxed based upon the ratio of residential to nonresidential use of the property.(7) If a combination of repair, restoration, or remodeling and new construction is performed under the same contract, and the repair, restoration, or remodeling portion exceeds 5.0% of the overall charge, then the parties to the contract must separately identify taxable and nontaxable labor along with the charges that apply to each or else the entire contract is presumed to be for repair, restoration, and remodeling and is taxable. Both parties must retain documentation that clearly defines the work that is performed to show that, had the new construction and remodeling been done independently, the charge for each would reasonably approximate the amount allocated. Examples of acceptable documentation are written contracts that detail the scope of work, bid sheets, tally sheets, schedules of values, and blueprints. If no written contract clearly shows agreement on the taxable and nontaxable work that is performed, then the customer and the service provider must prepare a written certification that verifies the allocation of charges for repair, restoration, or remodeling and new construction. The comptroller may recalculate the charges if the allocation appears unreasonable, and either party may be held responsible for the additional tax due.(8) Repainting is presumed to be a restoration or remodeling activity. Either party may overcome the presumption by showing that the scope of the work meets the definition of maintenance found in subsection (a)(7) of this section. Persons who perform repainting or other restoration activities should collect sales tax on the total charge to the customer unless the customer provides a properly completed exemption certificate as outlined in subsection (c)(2) or (4) of this section.(9) If a combination of taxable services (e.g., repair of nonresidential property), nontaxable services (e.g., new construction, residential repair, or maintenance), and nontaxable unrelated services are sold or purchased for a single charge and the portion that relates to taxable services represents more than 5.0% of the total charge, the total charge is presumed to be taxable. The service provider may overcome this presumption by submission of documentary evidence that establishes the percentages of the total charge that relate to taxable services and to nontaxable services. Examples of acceptable documentation include written contracts that detail the scope of work, bid sheets, tally sheets, schedules of values, and blueprints.(c) Tax responsibilities of persons who perform maintenance on real property.(1) A person who performs maintenance on real property and incorporates tangible personal property into the realty acts as a contractor and is subject to §3.291 of this title (relating to Contractors).(2) A person who performs maintenance on real property and does not incorporate tangible personal property into the realty as part of that service provides nontaxable services and owes tax on all taxable items that are used to perform those services.(d) Exemptions, exceptions, and exclusions.(1) A person who performs taxable services has the burden of obtaining an exemption certificate for any exemption that a customer claims. However, if the customer is a governmental entity, a purchase order from the governmental entity is sufficient documentation.(2) Maintenance on real property is a nontaxable service.(A) To qualify a purchase as nontaxable real property maintenance, a service provider's customer must prove by way of maintenance schedules or work orders or other similar forms of evidence that the services meet the definition of maintenance on real property that is stated in subsection (a)(7) of this section. If the service provider does not have a written contract, but is only hired on a per job basis, then the service provider must presume that the service is repair or restoration and must therefore collect tax. If the customer has documentation to prove that the service qualifies as maintenance, then the customer may issue to the service provider an exemption certificate in lieu of paying tax or provide the documentation required to overcome the presumption. The certificate must state that the labor is maintenance as defined in subsection (a)(7) of this section, rather than repair or restoration as defined in subsection (a)(13) and (15) of this section, and that the customer is liable for any additional tax that is due in the event that the comptroller determines that a taxable service was performed.(B) Repairs or restoration that are performed under a claimed maintenance contract will not change a nontaxable maintenance contract into a taxable repair or restoration contract so long as the charges that are attributable to the repairs or restoration are 5.0% or less of the overall charge. Note: The 5.0% test applies to each contract and subcontract. For example, if five different companies provide lump-sum contracts for services, then each contract stands alone for the purposes of determining whether the taxable services are 5.0% or less of that contract. In the absence of a written contract, the 5.0% test will apply to the total charge billed by each service provider.(C) A contract that includes maintenance and repair or restoration will be taxable in total if the charges for repairs and/or restoration services exceed 5.0% of the total charges and are not separately identified to the customer in the contract or billing. All separately stated charges for repair, restoration, remodeling, or other taxable services are taxable, even when the taxable services constitute 5.0% or less of the total contract price.(3) The modification of parts of existing structures solely to support the addition of new space will not change a new construction contract into a remodeling contract so long as the charges that are attributable to remodeling are 5.0% or less of the overall charge. Examples are conversion of a one-story building into a two-story building with the addition of a stairway to the existing structure to provide access to the new space, or the removal of an existing wall to allow the addition of structural support in the process of construction of a new room outside of the existing structure. Contracts with remodeling charges that exceed 5.0% are taxable in total unless the charges for remodeling are separately identified to the customer. However, see subsection (b)(9) of this section.(4) A service provider may accept a properly completed exemption certificate in place of tax for the separately stated charges for labor to remodel, restore, or repair buildings that are listed in the National Register of Historic Places. The service provider is a contractor under §3.291 of this title (relating to Contractors).(5) A service provider may accept a properly completed exemption certificate in lieu of tax for both materials and labor charges from an entity that is exempt under Tax Code, §151.309 or §151.310(a)(3), (4), or (5), or that is exempt under Texas Civil Statutes. A service provider may accept a properly completed exemption certificate for both materials and labor charges from an entity that is exempted by Tax Code, §151.310(a)(1) or (2), if the repair, restoration, or remodeling appears reasonably related to the exempt purpose of the organization. See §3.322 of this title (relating to Exempt Organizations).(6) A service provider who enters into a contract with a nonexempt entity to improve real property for the primary use and benefit of an entity that is exempted under Tax Code, §151.309 or §151.310, may accept a properly completed exemption certificate in lieu of tax. If the improvement is for the primary use and benefit of an entity that is exempted under Tax Code §151.310(a)(1) or (2), then the primary use and benefit must relate to the exempt purpose of that entity.(7) A service provider who enters into a contract with a nonexempt entity to add improvements to real property that will become government property may accept a properly completed exemption certificate if the nonexempt entity dedicates the real property and the improvement to a governmental entity before any work begins and the governmental entity accepts the real property and the improvement. If, at a later date, the governmental entity fails to accept the improvement, the non-exempt entity will owe tax on the service.(8) A service provider may accept a properly completed exemption certificate from a manufacturer for separately stated charges for equipment that qualifies for the manufacturing exemption. See §3.300 of this title (relating to Manufacturing; Custom Manufacturing; Fabricating; Processing).(9) The labor to repair real or tangible personal property that is damaged within a disaster area by the condition or occurrence that caused the area to be declared a disaster area is exempt from tax if the charge for labor is separately stated to the customer. The materials that are used to perform the repairs are taxable. A person who has property repaired under this paragraph should issue to the service provider an exemption certificate in lieu of tax. The service provider must presume that all work is taxable until the customer issues an exemption certificate that covers the separately stated labor portion of the bill. If the charge for the repair is lump-sum, the total charge is taxable.(10) No sales tax is due on the wages or salary paid by an employer to an employee who provides the labor to repair, remodel, or restore real property that belongs to and is used by the employer. A person is considered the employee of the employer if the employer pays the person's wages or salary, withholds applicable federal taxes from the employee's wages or salary, pays employment-related benefits such as health insurance, and exercises direct control over the work that the employee performs.(e) Resale certificates.(1) Persons who repair, restore, and remodel real property may issue a resale certificate in lieu of tax to suppliers of tangible personal property only if the tangible personal property will be incorporated into the customer's realty. For example, a repairman or remodeler purchases paint to repaint a repaired or remodeled area. The paint is transferred to the customer as a part of the finished job. The repairman or remodeler may purchase the paint tax free by issuing a resale certificate. Tax is due on the total amount that is charged the customer, including amounts that are charged for the paint and for the services. A resale certificate may not be issued for materials and supplies used or consumed by the repairman or remodeler that are not incorporated into the customer's realty.(2) A resale certificate may be issued for a service if the buyer intends to transfer the service as an integral part of taxable services. A service will be considered as an integral part of a taxable service if the service purchased is essential to the performance of the taxable service and is of a type without which the taxable service could not be performed. Examples of services for which a resale certificate may be issued in lieu of tax are landscaping and surveying services if the landscaping or surveying is performed upon the property that is remodeled.(f) Local taxes. Local taxes (city, county, transit authority, city transit department, and special purpose districts) apply to services in the same way as they apply to tangible personal property.(1) Generally, service providers must collect local sales taxes if their place of business is within a local taxing jurisdiction, even if the service is actually provided at a location outside that jurisdiction.(2) Transit sales taxes do not apply to services that are provided outside the boundaries of a transit area.(3) If the service provider's place of business is outside a local taxing jurisdiction but the service is provided to a customer who is located within a local taxing jurisdiction, then local use taxes apply and the service provider is required to collect the local taxes.(4) For information on the collection and reporting responsibilities of providers and purchasers of taxable services, see §3.374 of this title (relating to Collection and Allocation of the City Sales Tax), §3.375 of this title (relating to City Use Tax), §3.424 of this title (relating to Collection and Allocation of Transit Sales Tax), and §3.425 of this title (relating to Transit Use Tax).(g) Use tax. If a seller of a service is not engaged in business in Texas or in a specific local taxing jurisdiction, and is not required to collect Texas tax, then the Texas customer must report and pay the use tax directly to the Texas comptroller.(h) Enterprise project. An entity that qualifies as an enterprise project may qualify to claim a refund of sales tax that is paid on the total charge for nonresidential repair, restoration, or remodeling. See §3.329 of this title (relating to Enterprise Projects, Enterprise Zones, and Defense Readjustment Zones).(i) Prior contracts. Prior contracts that are signed before the effective date of a statutory change that affects nonresidential real property repair, remodeling, and restoration shall be governed by the provisions of §3.319 of this title (relating to Prior Contracts).",
            "sourceNote": "Source Note: The provisions of this §3.357 adopted to be effective February 17, 2002, 27 TexReg 947."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3827&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "3827",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.358",
                "label": "Maquiladoras"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197580&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197580",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Maquiladora enterprise. Maquiladora enterprise means a business entity chartered by the government of the United Mexican States and authorized by that government to make duty-free imports of raw materials, component parts, or other property into Mexico to be used in manufacturing, processing, or assembling items by the business entity in Mexico primarily for export from Mexico.(b) Maquiladora permits.(1) Any maquiladora enterprise wishing to make tax-free purchases in Texas for export to Mexico may apply to the comptroller for a maquiladora export permit.(2) The applicant must provide copies of their maquiladora authorization form issued by the Mexican Secretaria De Comercio Y Fomento Industrial showing the number by which they are listed in the registry of in-bond companies. They must also post any bond or security the comptroller may require.(3) When the application is complete, the comptroller will issue at no charge a numbered maquiladora export permit which will be valid until canceled by either the maquiladora enterprise or the comptroller.(c) Security required. The comptroller may require a maquiladora enterprise to post a bond or other security in the amount the comptroller considers reasonable to ensure the payment of state and local sales and use taxes.(d) Permit cancellation.(1) The comptroller may suspend or revoke a maquiladora export permit to make tax-free purchases under this section without notice for good cause. Examples of acts which will be considered good cause to suspend a permit include failure to provide an updated maquiladora authorization form or other records upon request, to post a required bond, or to file returns and pay all tax due in a timely fashion.(2) Any enterprise whose maquiladora authorization is canceled or not renewed by the Mexican Secretaria De Comercio Y Fomento Industrial must immediately notify the comptroller to cancel their maquiladora export permit.(3) Any enterprise whose maquiladora export permit is either voluntarily forfeited or canceled by action of the comptroller's office must immediately notify in writing all persons to whom they have issued a maquiladora exemption certificate advising that the exemption certificate issued to them pursuant to the maquiladora export permit is no longer valid.(e) Tax-free purchases. A maquiladora export permit holder may make tax-free purchases of goods for export to Mexico. To claim the exemption, the purchaser must give the supplier:(1) a blanket maquiladora exemption certificate; and(2) a copy of their maquiladora export permit issued by the comptroller of public accounts.(f) Records. An applicant for a maquiladora export permit must agree to retain records in accordance with §3.281 of this title (relating to Records Required; Information Required) and §3.323(c)(1) of this title (relating to Imports and Exports). The records must establish whether the items purchased by them were actually exported to Mexico.(1) Records may be kept in either the United States or Mexico, but the applicant must agree to make them available in Texas upon request.(2) Records must be kept for four years, unless the comptroller authorizes in writing a shorter retention period.(g) Reports.(1) Each person holding a maquiladora export permit must file a report of its tax-free purchases and pay the tax required under the Tax Code, §151.101, for any goods used or consumed in Texas. Items may be stored in this state prior to export to Mexico without incurring a tax liability.(2) Reports required under this section must be filed on a quarterly basis on a form prescribed by the comptroller and must include any payment due. Reports must be postmarked by the 20th day of month following the end of the calendar quarter unless that day falls on a Saturday, Sunday, or holiday, in which case the report must be postmarked by the next business day.(3) Payments made after the due date will incur a 5.0% penalty for the first 1-30 days that the payment is late. An additional 5.0% penalty will be assessed for payments that are made 31-60 days late. Interest at a rate of 10% will begin to accrue as of the 61st day after the due date and will continue until payment is made.(h) Sales. A maquiladora enterprise that sells taxable items, including used equipment, in this state must obtain a sales tax permit and collect and remit tax on the transaction. A maquiladora enterprise may not make a tax-free occasional sale in this state unless the sale is qualified under §3.316(d) or (e) of this title (relating to Occasional Sales). If a maquiladora makes a sale and claims it is exempt under §3.316(d) or (e) of this title (relating to Occasional Sales), he must provide the purchaser with a statement to that effect.(i) Form of certificate. A maquiladora exemption  certificate must be substantially in the form set out as follows.",
            "sourceNote": "Source Note: The provisions of this §3.358 adopted to be effective November 13, 1989, 14 TexReg 5735."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197580&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197580",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.360",
                "label": "Customs Brokers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=26773&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "26773",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Authorized employee--A person who is authorized by their employer to perform customs transactions or related services on behalf of the employer, is compensated by the employer with a regular salary or wages, is under the direct control and supervision of the employer, and from whose salary or wages the employer is required to and actually does deduct and withhold a tax under federal law. This definition applies to employees of customs brokers and employees of verification contractors.(2) Certification identification number--The number generated by the comptroller's website used to prepare export certification forms as described in subsection (k) of this section.(3) Licensed customs broker--A person who is licensed by the United States Customs and Border Protection to act as a customs broker and who holds a Texas Customs Broker License issued by the comptroller as provided for in this section.(4) Original receipt--The final documentation of a sale provided by the retailer at the time of purchase or when purchased items are received. An original receipt may be in either physical or electronic format, but may not be a record such as a duplicate, reprint, or copy used by the retailer for internal purposes.(5) Purchaser Identification Number--A number issued by a purchaser's country of residence for purposes of identification. For example, a purchaser from the United Mexican States may have as a purchaser identification number either a \"Registro Federal de Contribuyente\" or \"Registro Federal de Causante\" (collectively \"RFC\"), or a \"Clave Unica de Registro de la Población\" (Unique Code to Register the Population or \"CURP\").(6) Total value of property--The sales price, as shown on original receipts and invoices, of all property for which a licensed customs broker issued export certification forms during a calendar quarter.(7) Total amount of tax on property--The total amount of all Texas state and local sales and use taxes paid on property for which a licensed customs broker issued export certification forms during a calendar quarter.(8) Total amount of tax refunded--The total amount of all Texas state and local sales and use taxes that retailers refunded to a customs broker during a calendar quarter.(9) Verification contractor--An independent contractor who, for consideration and under a written contract with a licensed customs broker, monitors the export of property on behalf of a licensed customs broker as provided in subsection (b)(1) of this section. Unless the context clearly indicates otherwise, all references in this section to a verification contractor include an authorized employee of a verification contractor.(b) Certification of exports. Only a licensed customs broker or an authorized employee of a licensed customs broker may fully or partially prepare, issue, and/or sign a valid export certification form as provided for in this section and in §3.323 of this title (relating to Imports and Exports). A retailer who receives documentation that is valid under this section certifying that delivery was made to a point outside of the territorial limits of the United States should refer to §3.323(e) of this title for information regarding refunds. A licensed customs broker, or an authorized employee of the customs broker, may issue an export certification form only if the customs broker or authorized employee:(1) personally witnesses, or a verification contractor personally witnesses, the transportation of property across the border of the United States;(2) personally witnesses the property being placed on a common carrier for delivery outside the territorial limits of the United States; or(3) verifies by performing all of the following actions that the purchaser is transporting the property to a destination outside of the territorial limits of the United States:(A) examines a passport, laser visa identification card, or picture foreign voter registration identification that proves that the purchaser of the property resides in a foreign country;(B) requires that the documentation examined under subparagraph (A) of this paragraph have a unique purchaser identification number for that purchaser;(C) requires that the purchaser produce the property and the original receipt for the property so the customs broker or authorized employee can verify that the property is the same property as described in the purchaser's original receipt. The comptroller shall limit to six the number of original receipts for which a single proof of export documentation may be issued under this section;(D) requires that the purchaser state the foreign country of destination, which must be the foreign country in which the purchaser resides, the date and time the property is expected to arrive in the foreign country destination, the date and time the property was purchased, the name and address of the retailer from whom the purchaser bought the property, the sales price and quantity of the property, and a description of the property;(E) requires that the purchaser and the customs broker or an authorized employee sign in the presence of each other a form prepared or approved by the comptroller:(i) that states the purchaser has provided the information and documentation required in this paragraph;(ii) that states \"Providing false information to a customs broker is a Class B misdemeanor\" clearly on the form; and(iii) that contains a notice to the purchaser that property not exported to a foreign country is subject to Texas sales and use tax and the purchaser is liable for payment of an amount equal to the value of the property, as well as other possible civil liabilities and criminal penalties, if the purchaser improperly obtains a refund of taxes relating to the property;(F) requires that the purchaser produce the following travel documentation for inspection by the customs broker or authorized employee:(i) if the purchase was made in a county that does not border the United Mexican States, the purchaser's Form I-94, Arrival/Departure record, or its successor, as issued by the United States Customs and Border Protection; or(ii) if the customs broker is located in a county that does not border the United Mexican States, the purchaser's travel documentation, e.g., airline or bus ticket; and(G) requires the purchaser and the customs broker or an authorized employee, when using a power of attorney form to attest, as a part of the form and in the presence of each other:(i) that the purchaser has provided the information and documentation required by this paragraph; and(ii) that the purchaser is on notice that tangible personal property not exported is subject to taxation under this chapter and the purchaser is liable, in addition to other possible civil liabilities and criminal penalties, for payment of an amount equal to the value of the merchandise if the purchaser improperly obtained a refund of taxes relating to the property;(4) circles, and writes or states \"exported\" next to, each item to be exported on purchaser's original receipt; and(5) if the property is verified in accordance with paragraph (3)(C) of this subsection at a time not contemporaneous with the issuance of the certification of export, the customs broker or an authorized employee, in addition to writing or stating \"exported\" next to each item to be exported on purchaser's original receipt, must write or state on each original receipt the date and time the property was verified for export, as well as the full printed name of the person making the verification.(c) Texas Customs Broker License; prerequisites. A person may apply to the comptroller for a Texas Customs Broker License, which is a license to issue export certification forms for the purpose of claiming exemption from Texas sales and use taxes. To obtain a license, a person must:(1) be currently licensed by the United States Customs and Border Protection to act as a customs broker;(2) submit an application in the form prescribed by the comptroller;(3) pay an annual license fee of $300 for each place of business from which the customs broker intends to issue export certification forms;(4) post a bond or security as required in subsection (h) of this section; and(5) be current in payment of all taxes and fees administered by the comptroller.(d) Form of application. The comptroller will prescribe an application form for a Texas Customs Broker License, which must include or be accompanied by the following:(1) a copy of the applicant's license to act as a customs broker issued by the United States Customs and Border Protection;(2) the applicant's name, mailing address, primary business address, business telephone number, home address, and home telephone number, and the names, home addresses, and home telephone numbers of all the general partners (if the applicant is a partnership), the formation/registration number, formation/registration date, federal Employer Identification Number, and the names, home addresses, and home telephone numbers of the officers and directors (if the applicant is a corporation), or the names, home addresses, and home telephone numbers of the members (if the applicant is an entity other than a partnership or corporation);(3) the names, mailing addresses, primary business addresses, business telephone numbers, home addresses, and home telephone numbers of all verification contractors and all authorized employees of verification contractors, and the names, home addresses, and home telephone numbers of all the general partners (if the verification contractor is a partnership), the formation/registration number, formation/registration date, federal Employer Identification Number, and the names, home addresses, and home telephone numbers of the officers and directors (if the verification contractor is a corporation), or the names, home addresses, and home telephone numbers of the members (if the verification contractor is an entity other than a partnership or corporation), and the date of contract of all verification contractors;(4) the names, home addresses, and home telephone numbers of all employees who are authorized to certify exports in the name of the applicant and the date of hire of all such employees;(5) a copy of each authorized employee's power of attorney to certify exports in the name of the applicant;(6) the trade name of the applicant's business and the address of each location where export certifications are to be fully or partially prepared;(7) the original signature or signatures of the applicant (if the applicant is a sole proprietor), an officer or director (if the applicant is a corporation), all general partners (if the applicant is a partnership), or an authorized member (if the applicant is an entity other than a corporation or partnership), and the original signatures of all authorized employees of the customs broker;(8) the social security number of each authorized employee, verification contractor, and authorized employee of a verification contractor, and the social security number of the applicant (if the applicant is a sole proprietor), each general partner (if the applicant is a partnership), each officer and director (if the applicant is a corporation), or each member (if the applicant is an entity other than a partnership or corporation); and(9) any other information the comptroller requires.(e) Annual customs broker license and fee. An annual customs broker's license issued under this section continues in effect through December 31st each year unless canceled by the customs broker or suspended or revoked by the comptroller before the expiration date. All expired, canceled, suspended, or revoked licenses must be immediately returned to the comptroller or they will be subject to confiscation. The annual license fee is non-refundable but the fee may be prorated on a calendar year $75 per-quarter basis as follows:(1) $300 fee for a license with an effective date beginning January 1st through March 31st;(2) $225 fee for a license with an effective date beginning April 1st through June 30th;(3) $150 fee for a license with an effective date beginning July 1st through September 30th; or(4) $75 fee for a license with an effective date beginning October 1st through December 31st.(f) Display of license. An original Texas Customs Broker License must be prominently displayed at each place of business of the customs broker where export certification forms are fully or partially prepared.(g) Locations outside the United States. No Texas Customs Broker Licenses will be issued for locations beyond the territorial limits of the State of Texas.(h) Bond or security. A licensed customs broker is required to post a bond or security in the amount of $5,000, plus an additional $1,000 for each place of business from which the customs broker intends to issue export certification forms.(1) The security may be in the form of cash, a certificate of deposit, a letter of credit, or another instrument of value acceptable as security to the comptroller.(2) The comptroller may forfeit a customs broker's bond or security and apply the amount to any liabilities due for unpaid taxes, penalties, interest, license fees, stamp fees, and other penalties imposed for any violations of the Tax Code or this section.(3) A licensed customs broker, who has a bond or security forfeited by the comptroller, must immediately post another bond or security as required by the comptroller.(4) A customs broker must send the comptroller a written request to obtain release of the bond or security once the broker has ceased to do business in Texas. The comptroller may release a bond or security once a customs broker has ceased doing business in Texas and the comptroller verifies that the customs broker has no outstanding liabilities or penalties due.(i) Verification contractors. A licensed customs broker may enter into a written contract with a verification contractor to facilitate the monitoring of exports certified by the customs broker. A verification contractor may authorize by power of attorney their full-time or part-time employee to perform verification services on their behalf. A verification contractor may not fully or partially prepare, issue, and/or sign export certification forms and may not affix export certification stamps to export certification forms. A verification contractor's contract must be submitted to and approved by the comptroller before the verification contractor may perform export verification services.(j) Export certification stamps. The comptroller will produce or have produced export certification stamps to be affixed to export certification forms.(1) The comptroller may change the design as often as necessary for the enforcement of this section. The design will be changed at least once each calendar quarter.(2) Only a licensed customs broker or authorized employee may receive stamps. A person obtaining stamps in person must present photo identification.(3) There is a $2.10 fee for each stamp.(4) The stamps are non-transferable. A stamp is void if transferred to a person other than the customs broker to whom the comptroller originally issued the stamp or to that customs broker's authorized employee. This paragraph does not apply to a stamp that is actually affixed to an export certification form that is transferred in compliance with this section.(5) All unused, expired stamps must be returned to the comptroller within 15 working days of the end of each calendar quarter. All such stamps must be delivered to the comptroller on the same date, at the same time, and to the same location. Unused stamps must be immediately returned to the comptroller upon cancellation, suspension, or revocation of the customs broker's license or upon notification that the customs broker is out of business and may be confiscated if not returned. Unused, expired stamps may not be retained, destroyed, or disposed of except by the comptroller. The comptroller will allow a licensed customs broker credit for returned unused stamps. Such credit must be used to purchase new stamps. A licensed customs broker who ceases to do business in Texas must return all unused stamps within 15 working days of the customs broker's last day of business. The comptroller shall refund an out-of-business customs broker an amount of $2.10 for each returned unused stamp.(6) As soon as practicable after discovery, a customs broker must report in writing to the comptroller the theft, destruction, or other loss of stamps issued to the customs broker, including the numbers assigned to the lost stamps (if the comptroller has numbered the stamps sequentially). No credit or refund will be allowed for stamps lost, destroyed, or stolen, unless the customs broker provides sufficient documentation that the stamps were stolen or destroyed.(7) A customs broker must notify the comptroller as soon as practicable in writing if the customs broker has no remaining inventory of stamps following use, theft, and/or other loss of the stamps.(k) Preparation of documentation. The comptroller will maintain a password-protected website that a licensed customs broker, or an authorized employee of a licensed customs broker, must use to prepare export certification forms.(1) A licensed customs broker, or an authorized employee of a licensed customs broker, is required to use the website to prepare export certification forms and must provide all information as required by the comptroller. Failure to use the website to prepare export certification forms while the website is available is a violation under subsection (q) of this section.(2) When the comptroller's website is available but a licensed customs broker, or an authorized employee of a licensed customs broker, is unable to use the system due to technical or communications problems, the licensed customs broker or authorized employee must notify the comptroller prior to issuing manual export certifications. The licensed customs broker, or authorized employee, may provide the notification by calling 1-888-434-5464 and following an automated menu to enter the licensed customs broker's 11-digit taxpayer number and the location number. The licensed customs broker, or authorized employee, must contact the comptroller again every 48-hours for as long as the customs broker is unable to use the website. The licensed customs broker, or authorized employee, must enter the export certification information using the website no later than 48-hours after the technical or communications problems are resolved.(3) When the comptroller's website is unavailable due to routine maintenance by the comptroller or technical or communications problems experienced by the comptroller, a licensed customs broker, or an authorized employee of a licensed customs broker, may issue manual export certification forms without notifying the comptroller's office in advance. The licensed customs broker, or authorized employee, must enter such export certification information using the website within 48-hours after the website becomes available. Failure to enter such documentation no later than 48-hours is a violation under subsection (q) of this section.(l) Reports required. A licensed customs broker is required to file a report quarterly on a form prescribed by the comptroller.(1) The quarterly report must be signed by the licensed customs broker or by the licensed customs broker's duly authorized agent and must include the following information:(A) the total value of property for which the licensed customs broker issued export certifications that quarter;(B) the total amount of tax on property for which the licensed customs broker issued export certifications that quarter; and(C) the total amount of tax refunded in accordance with export certifications issued by the licensed customs broker that quarter.(2) The customs broker report is due on the 20th day of the month following the end of each calendar quarter reporting period. For example, the first quarter report period is January, February, and March, and the due date is April 20th. If the 20th is a Saturday, Sunday, or legal holiday, the report is due the next business day. To be considered timely, a report must be either postmarked or received by the comptroller on or before the due date of the report.(3) Failure to receive the correct report form from the comptroller does not relieve a customs broker of the responsibility to file a report.(4) A penalty of $500 is imposed for each report filed after the due date. The comptroller shall also impose an additional $50 penalty for each late report filed.(m) Records required. A licensed customs broker must maintain books and records that include, at a minimum, the following:(1) an exact photographic image of the export certification stamp and of each export certification form signed by the customs broker within the last two years. Carbon copies and pages from multi-page forms are acceptable in lieu of photocopies, provided the number of the export certification stamp affixed to the original is recorded on the additional copies;(2) a ledger that:(A) lists sequentially all export certification forms issued or voided within the last two years;(B) identifies the person or persons who fully or partially prepared, issued, and/or signed each form; and(C) identifies the person's or persons' relationship to the licensed customs broker;(3) an inventory of export certification stamps and records tracking transfers of stamps between the customs broker and authorized employees, identifying the recipients and showing the dates of transfer, quantities transferred, the sequential numbers of the transferred stamps (if the comptroller has numbered the stamps sequentially), and detailed records regarding stamps that have been lost, stolen, or are otherwise unaccounted for;(4) a current list of all employees authorized to fully or partially prepare, issue, and/or sign export certification forms and information relating to the hiring and termination of the authorized employees;(5) all contracts executed between the customs broker and verification contractors and information relating to the termination or cancellation of such contracts;(6) exact copies of all invoices, receipts, passports, laser visa identification cards, foreign voter registration picture identification, I-94 forms, air, land, or water travel documentation, or other documents relating to property whose export the customs broker has certified. This requirement specifically applies to documentation that must be verified by a customs broker under subsection (b)(3) of this section. The requirement also applies to other documentation if the customs broker attached such copies to the original form as provided in subsection (p)(6) of this section;(7) a copy of a certified check, company check, or money order made payable to the purchaser, or a credit memo or cash receipt signed by the purchaser, and the purchaser's written assignment of the right to a Texas sales or use tax refund for each instance in which the customs broker obtained a refund assignment from the purchaser;(8) detailed records showing the amount the customs broker charges clients for their export certification services and the customs broker's gross receipts from certifying exports;(9) information described in subsection (d) of this section, updated and kept current since the date of application; and(10) detailed records of when an authorized employee is terminated, quits, is no longer authorized to complete export certification forms, or whose power of attorney is withdrawn. A licensed customs broker is required to notify the comptroller in writing within 15 days of the date when an authorized employee is subject to such action.(n) Examination of records. A licensed customs broker must make all required records available for examination by the comptroller. The comptroller will issue written notice of routine examination of records at least 15 days prior to the date of examination. No advance notice will be issued if the comptroller determines that notice could jeopardize the proper enforcement of the tax laws and the comptroller's rules. The examination will take place at the customs broker's principal place of business unless the comptroller agrees to examine the records at another location.(o) Retention of records. A licensed customs broker must retain records for a period of at least two years from the date of the document, the date of completion (if the required record is a contract), or the date of final entry (if the required record is a list or ledger). Copies of export certification forms must be retained for at least two years after the date the customs broker or the customs broker's authorized employee signs the form, regardless of the date of export. For other documents with multiple dates, the two-year period for retention begins on the latest date reflected on the document.(p) Export certification form and contents. The export certification forms issued by a licensed customs broker must be substantially in the form recommended by the comptroller. A separate form must be completed for each seller. A maximum of six invoices from a single seller may be listed on a single export certification form only if all the listed items were exported at the same place, on the same date, and at the same time. The required information must be completed in English on the face of the form, in addition to any other language in which the form is completed. The comptroller may immediately confiscate from any person an export certification form that is incomplete on its face, indecipherable, fraudulent, or otherwise in violation of this section. An export certification form must, at a minimum, reflect the following information:(1) the name and address of the purchaser of the property, as shown on the invoice, receipt, or similar document, or the purchaser's home address if the customs broker certified the export under subsection (b)(3) of this section;(2) the name of the seller and the seller's location from which the property was sold;(3) the name, address of the place of business which the customs broker certified the export, and Texas Customs Broker License number of the customs broker in whose name the export is being certified;(4) the date (and time, if available) of sale, as shown on the invoice, receipt, or similar document;(5) the date, time and exact location where the property was exported (e.g., the name of border crossing bridge or airport), unless export was verified as set out in subsection (b)(3) of this section;(6) a description and quantity of the property; a list of Store Keeping Unit (SKU), Harmonization Systems, Schedule B or other product identification codes; or copies of invoices securely attached to the form and signed and dated individually by the customs broker or the customs broker's authorized employee;(7) the invoice numbers (if any) and total sales prices and taxes of all property certified for export;(8) the original signature of the licensed customs broker or the customs broker's authorized employee, together with a certification that the customs broker or authorized employee inspected the property and the original receipt for the property and that the property has been exported or will be exported under the verification requirements of subsection (b)(3) of this section;(9) the name of the person who signed the form, typed or legibly printed near the signature;(10) a valid export certification stamp whose expiration date falls within the same calendar quarter as the certification date (regardless of the date of sale);(11) a sequential export certification form number assigned by the licensed customs broker;(12) the purchaser's original signature and date; and(13) the certification identification number assigned by the comptroller.(q) License denial, suspension, and revocation. The comptroller may deny, suspend, or revoke a Texas Customs Broker License for cause.(1) Grounds for denying a person's application for a Texas Customs Broker License include, but are not limited to:(A) ineligibility for a license under subsection (c) of this section, including filing incomplete, false, or misleading information with the license application;(B) disqualification for a license due to prior denial, United States Customs and Border Protection suspension, or revocation, as provided in this subsection;(C) forfeiture of an entity's right to transact business or certificate of formation/registration, if the applicant is a taxable entity;(D) failure to pay annual license fee; or(E) failure to post bond or security as required by the comptroller.(2) A person whose application for a Texas Customs Broker License has been denied may resubmit the application not sooner than 90 days after the date on which the comptroller's decision to deny the application becomes final. However, the comptroller may authorize reapplication at an earlier date if the comptroller determines it is warranted under the circumstances.(3) Acts or omissions of a licensed customs broker, authorized employee, verification contractor, an officer or director, a general partner, or member (as applicable) that constitute cause for suspension or revocation of a license under this section include, but are not limited to:(A) cancellation, suspension, or revocation by the United States Customs and Border Protection of the customs broker's license to act as a customs broker or cancellation of that license by the customs broker;(B) violation of any provision of the Tax Code or the comptroller's rules;(C) delivering to any person a signed and/or stamped export certification form if all or a portion of the property described thereon was not actually exported at the time and place and on the date reflected on the certification form, or not properly verified as property that will be exported as required in subsection (b)(3) of this section;(D) delivering to any person a signed and/or stamped export certification form based solely on:(i) foreign import documents, bills of lading, freight forwarder's receipts, or other documents that constitute valid proof of export in and of themselves under §3.323 of this title; or(ii) proof of foreign citizenship;(E) transferring an export certification stamp to a person other than the licensed customs broker or the customs broker's authorized employee, except if, at the time of transfer, the stamp is affixed to an export certification form issued in compliance with this section;(F) delivering to any person an export certification form with knowledge that the recipient intends to use the form to evade tax that is legally due or to assist another person in the evasion of tax that is legally due;(G) soliciting, advertising, or promoting the unlawful evasion of tax through use of export certification forms;(H) knowingly making a false verbal or written statement to the comptroller;(I) fully or partially preparing export certification forms at a location for which no Texas Customs Broker License has been issued;(J) transferring signed and/or stamped export certification forms that are otherwise blank or incomplete at the time of transfer to a person other than the licensed customs broker or the customs broker's authorized employee in the ordinary course of business;(K) failing to exercise responsible supervision and control over the conduct of export certification business, including inadequate supervision of authorized employees and verification contractors;(L) failing to keep current in a correct, orderly, and itemized manner the records required under this section, failing to timely provide the comptroller with information required to be provided, or failing to account for all export certification stamps received from the comptroller;(M) refusing the comptroller access to, concealing, removing, or destroying without the comptroller's prior written consent, the whole or any part of a record required to be kept under this section, or refusing to cooperate with the comptroller's investigation;(N) attempting to unduly influence the comptroller by the use of a threat, false accusation, duress, or the offer of any special inducement or promise of advantage, or by bestowing any gift, favor, or other thing of value;(O) withholding information from or knowingly imparting false information to a client;(P) failing to timely return to the comptroller unused, expired export certification stamps as required by this section, absent a showing and timely report to the comptroller of loss by theft or accident;(Q) selling or buying export certification forms and/or export certification stamps except as consistent with this section;(R) seeking and/or obtaining under false pretenses a tax refund from a seller, including giving a false refund assignment to the seller or otherwise representing that the customs broker has the authority to obtain a refund of tax paid by another person if the customs broker does not have such authority;(S) failing promptly to notify the seller, in writing, that an export certification form relating to that seller is for any reason incomplete, misleading, void, or otherwise invalid;(T) failing to file quarterly customs broker report;(U) failing to use the website for preparing documentation while the website is available, or, if the website becomes unavailable and the comptroller provides prior authorization, failing to promptly enter documentation using the website no later than 48 hours after website becomes available or disabling or interfering with the proper functioning of the website in any manner;(V) failing to pay tax, penalties, or interest that become due or are imposed by the comptroller under the provisions of the Tax Code or this section;(W) failing to request a purchaser identification number; or(X) failing to properly document each item to be exported on purchaser's original receipt by circling, and writing or stating \"exported\" next to each item, or failing to write or state on each original receipt the date and time the property was verified for export together with the full printed name of the person making the verification.(4) After notice and hearing, the comptroller may suspend a license for no fewer than 60 days and no more than 120 days if the customs broker's license has not been previously suspended or revoked, for no fewer than 120 days and no more than 180 days if the customs broker's license has been previously suspended or revoked, or concurrently and for the same length of time as a suspension by the United States Customs and Border Protection of the customs broker's license to act as a customs broker. The suspension becomes effective on the date the comptroller's decision to suspend the license becomes final. Suspension of a license applies to all locations of the customs broker.(5) After notice and hearing, the comptroller may revoke a customs broker's license indefinitely if the customs broker's license has been suspended at least twice previously or has been previously revoked, or if the customs broker's license to act as a customs broker has been revoked by the United States Customs and Border Protection. The revocation becomes effective on the date the comptroller's decision to revoke the license becomes final. Revocation of a license applies to all locations of the customs broker.(6) A Texas Customs Broker License that has been revoked must be returned to the comptroller within 15 days of the effective date of revocation. A Texas Customs Broker License that has been suspended is reinstated automatically upon the expiration of the period of suspension, unless the licensee notifies the comptroller in writing that the license should not be reinstated. Not sooner than one year after the effective date of revocation, a person whose Texas Customs Broker License has been revoked may apply to the comptroller for reinstatement. The comptroller may reinstate the license if the person otherwise qualifies for a license as provided in this section and the comptroller is satisfied that the person has a good faith intent to comply with the tax laws and the comptroller's rules.(7) For procedures relating to license denial, suspension, and revocation, see §3.361 of this title (relating to Practice and Procedure for Texas Customs Broker's License Denial, Suspension, and Revocation).(8) The comptroller may require a customs broker to pay the comptroller the amount of any tax refunded if the customs broker does not comply with the Tax Code or this section. In addition to the amount of the refunded tax, the comptroller may require the customs broker pay a penalty of not less than $500 dollars nor more than $5,000. The comptroller may deduct any penalties to be paid by a customs broker from the customs broker's posted bond.(9) A proceeding by the comptroller to require a customs broker to pay an amount under paragraph (8) of this subsection is a contested case in the same manner as a proceeding to suspend or revoke a customs broker's license under Tax Code, §151.157(f).(r) Form of export certification. An export certification form must be substantially in the form of a Licensed Customs Broker Export Certification. Copies of the form may be obtained from the Comptroller of Public Accounts, Tax Policy Division, or be requested by calling 1-800-252-5555.",
            "sourceNote": "Source Note: The provisions of this §3.360 adopted to be effective March 6, 1995, 20 TexReg 1272; amended to be effective June 20, 2000, 25 TexReg 5915; amended to be effective August 15, 2004, 29 TexReg 7992; amended to be effective September 18, 2006, 31 TexReg 8006; amended to be effective March 26, 2014, 39 TexReg 2114; amended to be effective December 31, 2019, 44 TexReg 8326."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=26773&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "26773",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.361",
                "label": "Practice and Procedure for Texas Customs Broker's License Denial, Suspension, and Revocation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=28637&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "28637",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Applicability of rules of practice and procedure. The following rules of practice and procedure contained in Part I, Chapter 1, Subchapter A of this title (relating to Practice and Procedure) shall apply to hearings involving the denial, revocation, or suspension of a Texas Customs Broker's License: §§1.1, 1.2, 1.4, 1.8, 1.19, 1.21-1.27, 1.29-1.36, 1.38, 1.41, and 1.42 of this title (relating to Practice and Procedure). For information about licensing procedures and requirements, see §3.360 of this title (relating to Customs Brokers).(b) Special rules governing hearings on the denial, revocation, or suspension of a Texas Customs Broker's License.(1) Contested cases. A contested case is a proceeding in which the legal rights, duties, or privileges of an applicant or licensee are to be determined by the agency after an opportunity for adjudicative hearing. It includes a request for relief from actions initiated by the agency to deny, suspend, or revoke a Texas Customs Broker's License. Contested cases are within the jurisdiction of the administrative law judges.(2) Initiation of an oral hearing.(A) If the comptroller determines that an applicant is not eligible for a Texas Customs Broker's License, the applicant will be notified, in writing, by personal service, or by registered or certified mail, return receipt requested, that the application has been denied. The notice will state the reasons for the denial. The applicant may, within 15 days of the date of the notice of denial, make a written request for an oral hearing to contest the denial. If the applicant does not request a hearing within 15 days of the date of the notice of denial, the hearing is waived and a final decision will be issued.(B) If the comptroller determines that a Texas Customs Broker's License should be suspended or revoked, the comptroller will notify the licensee, in writing, by personal service or by registered or certified mail, return receipt requested, that the license will be suspended or revoked and will state the reasons for the action. The licensee may, within 15 days of the date of the notice of suspension or revocation, make a written request for an oral hearing to contest the action. If the licensee does not request a hearing within 15 days of the date of the notice of suspension or revocation, the hearing is waived and a final decision will be issued.(3) Content of request for an oral hearing.(A) A request for an oral hearing must contain the reasons the applicant or licensee disagrees with the action of the agency. The applicant or licensee must list and number the factual and legal grounds why the action of the agency should be reversed. Legal authority must be cited if the applicant or licensee disagrees with the agency's interpretation of the law.(B) Evidence regarding issues raised in the request for hearing may be obtained through:(i) a preliminary conference; and(ii) discovery.(C) Time limits on discovery or preliminary conferences will be set by the assigned administrative law judge if the parties cannot reach agreement. Evidence that a licensee or applicant will rely upon must be submitted to the assigned administrative law judge and hearings attorney at least ten days prior to the hearing date.(D) A request for hearing may be amended up to ten days prior to the time that the hearing date is set, and not later, unless by permission of the assigned administrative law judge, and unless all evidence upon which the applicant or licensee intends to rely and that was not previously filed is filed with the amended request for hearing.(4) Extensions of time.(A) A motion for extension of the due date for submitting a request for hearing on the denial of an application or on the proposed suspension or revocation of a license may be granted in case of emergency or extraordinary circumstances. A motion for extension will not be routinely granted and each request will be closely scrutinized to ensure that the applicant or licensee has made every effort to comply with the original deadline. A motion filed after the expiration of the original due date will not be considered. A motion must be directed to the chief administrative law judge or his designee, who will grant or deny the motion.(B) A motion for an extension of any other deadline will not be granted unless good cause is established and the need for the extension is not due to the moving party's neglect, indifference, or lack of diligence. A motion must be made in writing at least seven days prior to the deadline. In the event of an emergency, a motion may be accepted if it is postmarked, sent by facsimile transmission, or deposited with a private mail or courier service, postage or delivery charges paid, not later than the date of the original deadline.(5) Motion to dismiss; request for extended hearing.(A) The agency may move to dismiss the hearing on the ground that the request for hearing was not timely filed or failed to state a claim upon which relief could be granted as required by paragraph (3) of this subsection.(B) An applicant or licensee who believes it will require more than two hours for a hearing must file a written request for an extended hearing at the time the request for hearing is filed, and state the reasons why more time will be required; however, any party may later request an extended hearing for good cause shown.(6) Notice of setting. Upon receipt of a timely and sufficient request for hearing, the assigned administrative law judge will send a notice to the parties giving:(A) the date, time, place, and nature of the oral hearing;(B) the legal authority and jurisdiction under which the hearing is to be held;(C) a reference to the particular statutes and rules involved; and(D) upon request, briefing and evidentiary prefiling dates, and other appropriate orders.(7) Administrative law judge to hear case. Hearings will be conducted by an assigned administrative law judge who has authority to examine witnesses, to rule on motions, and to rule upon the admissibility of evidence. The administrative law judge has the authority to continue or recess any hearing, to control the record, and to propose decisions to the comptroller. If for any reason the assigned administrative law judge cannot continue on a contested case, another administrative law judge will become familiar with the record and perform any functions remaining to be performed without the necessity of repeating any previous proceedings in the case.(8) Filing of documents. All documents submitted after the notice of setting has been issued must be filed with the assigned administrative law judge with a copy to each party. In addition to any other order by the assigned administrative law judge, the time limit for filing documents with the administrative law judge and an opposing party shall be not later than ten days prior to the hearing.(9) Continuances (postponement of hearing). A motion for continuance of a contested case set for oral hearing must be in writing and filed with the assigned administrative law judge at least seven days prior to the date that the matter is to be heard. If an emergency occurs less than seven days prior to the hearing date, a motion for continuance may be filed. The motion must show that there is good cause for the continuance and that the need is not caused by neglect, indifference, or lack of diligence. A copy of the motion must be served upon all other parties of record at the time of filing.(10) Comptroller's decision. The proposed decision of the assigned administrative law judge must be approved by the Comptroller of Public Accounts before it is given effect. The comptroller's decision will be sent to the applicant or licensee and any authorized representative. The decision is final 20 days from the date mailed, unless a motion for rehearing is filed at or before midnight of the 20th day. If the motion for rehearing is granted, the decision is vacated pending a subsequent decision upon rehearing. If the motion for rehearing is overruled, whether by order or operation of law, the decision is final on the date the motion is overruled. A final decision of the comptroller to deny, suspend, or revoke a Texas Customs Broker's License is subject to judicial review by trial de novo in the district courts of Travis County.(11) Joint hearings. An applicant, licensee, or the agency may file a written motion to have two or more cases involving only that applicant or licensee joined for purposes of hearing; or the assigned administrative law judge, acting independently, may join two or more such cases.(12) Dismissal of case.(A) If a motion to dismiss is filed upon agreement between the applicant or licensee and the agency, or upon the applicant's or licensee's decision to abandon the case, a decision will be issued that conforms with such disposition.(B) The agency may move to dismiss a case based upon agreement reached between the applicant or licensee and the agency, for failure to state a claim upon which relief can be granted as required by paragraph (3) of this subsection, or for want of prosecution. The motion must be served on the applicant or licensee and its authorized representative at its last address of record. If there is no reply from the applicant or licensee to the agency's motion to dismiss within 15 days, a decision will be issued denying the relief sought by the applicant or licensee.(C) All motions to dismiss that are based upon a representation that both parties have agreed to dismiss a contested case on the basis that all issues have been settled shall be in writing and signed by both parties or their authorized representatives.(13) Burden of proof. In all contested cases the agency has the burden of proving a prima facie case; the burden of proof then shifts to the applicant or licensee, with the standard of proof being by a preponderance of the evidence.",
            "sourceNote": "Source Note: The provisions of this §3.361 adopted to be effective March 22, 1995, 20 TexReg 1658."
        },
        {
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            "currentRecordId": "28637",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.362",
                "label": "Labor Relating to Increasing Capacity in a Production Unit in a Petrochemical Refinery or Chemical Plant"
            },
            "nextRule": {
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Allied chemical product--A consumer or end-user product manufactured from basic or intermediate chemicals. Examples include drugs, soaps, detergents, paints and agricultural chemical formulations.(2) Basic or intermediate chemical--Basic chemicals are the initial building blocks or raw materials that are processed and combined to manufacture intermediate chemicals. Intermediate chemicals are products that are manufactured from basic chemicals and other intermediate chemicals and are manufactured into finished chemical products. Examples of basic chemicals include alkalies, chlorine, nitrogen, sulfur, benzene, ethylene, propylene methane, and sodium carbonate. Examples of intermediate chemicals include synthetic fibers, polymers, resins, elastomers, dyes, and pigments.(3) Chemical plant--(A) A facility that in a single continuous operation or using a batch processing method manufactures a basic or an intermediate chemical.(B) A chemical plant may be either a single facility existing by itself or a facility within a chemical plant complex consisting of a number of separate chemical plants each of which produces a single basic or intermediate chemical product. A chemical plant complex may include any combination of distinct facilities that manufacture basic chemicals, intermediate chemicals, or allied chemical products. In a chemical plant complex, each facility is considered individually to determine whether it qualifies as a chemical plant.(C) The term does not include:(i) a facility that manufactures \"allied chemical products\"; or(ii) a facility, other than one that produces a basic or an intermediate chemical, that generates any chemical as a waste product or a by-product.(4) Crude oil--A mixture of hydrocarbons that exists in liquid phase in underground reservoirs and remains liquid at atmospheric pressure after passing through surface-separating facilities. The term includes liquid condensate and liquid hydrocarbons produced from tar sands, gilsonite, and oil shale. Drip gases are also included, but topped crude oil (residual oil) and other unfinished oils are excluded. Liquids produced at natural gas processing plants and mixed with crude oil are likewise excluded where identifiable.(5) Increased capacity--(A) Increasing the capability of the manufacturing or processing production unit to produce:(i) more of the same product measured by units per hour or units per year; or(ii) a new product.(B) Increasing a unit's capability to produce more of an existing product and less of another existing product is not increasing the unit's capacity unless the overall production unit capability is increased. For example, if a production unit that produces 50 units of product X and 50 units of product Y is modified so that it produces 60 units of product X and 40 units of product Y, the production unit's capacity has not been increased.(6) Manufacturing or processing production unit--A group of manufacturing and processing machines and ancillary equipment that together are necessary to create or produce a physical or chemical change beginning with the first processing of the raw material and ending with a finished product. Examples of such equipment include reactors, distillation columns, catalytic crackers, fractionators, or other primary process equipment, and ancillary equipment such as heat exchangers, cooling towers, computer control units, piping, valves, and actuators. Another example of ancillary equipment is quality control equipment that is used during the manufacturing process, but not equipment used to test products before the process begins or after it is completed. The production unit does not include maintenance equipment; research and development laboratory equipment; waste handling or treatment equipment; equipment for the storage of feedstock, catalysts, or finished products; loading and unloading equipment; or any other equipment that is not used in the actual processing or manufacturing operation.(7) New product--A product that has different product properties and a different commercial application than the product previously manufactured or processed by that production unit. Examples of new products include chlorine produced from sodium chloride; styrene from benzene; aqueous hydrogen chloride (HCl) from anhydrous HCl; and soft polyethylene from hard polyethylene if the soft polyethylene is used to manufacture different end products than the hard polyethylene. Producing gasoline with a 91-octane rating instead of an 89-octane rating for use in motor vehicle engines is not producing a new product. Changes caused by straining or purifying an existing product or cosmetic changes such as adding or removing color or odor to or from an existing product will not create a new product. For example, the manufacture of a different grade of the same product, such as technical sulfuric acid which is colored and contains impurities and anhydrous 100% sulfuric acid which is colorless and odorless, does not qualify one as a new or different product from the other.(8) Petrochemical refinery--A facility that manufactures finished petroleum products from crude oil, unfinished oils, natural gas liquids, other hydrocarbons, and oxygenates. Products of these refineries include gasoline, diesel, kerosene, distillate fuel oils, liquefied petroleum gas (LPG), residual fuel oils, lubricants, and other products refined through alkylation, coking, cracking, dewaxing, desulphurization, distillation, hydrotreating, isomerization, polymerization, or other chemical processes. These facilities also produce petrochemical feedstock for use by chemical plants. The term does not include facilities at an oil or gas lease site that remove water or other impurities and merely make the product more marketable.(b) Tax responsibilities of persons who make improvements to a manufacturing or processing production unit of a petrochemical refinery or chemical plant.(1) Persons who repair, remodel, restore, or modify a manufacturing or processing production unit of a petrochemical refinery or chemical plant to increase the capacity in the production unit are not performing a taxable real property repair and remodeling service. Such persons are governed by the provisions of §3.291 of this title (relating to Contractors).(A) Contractors performing lump-sum contracts as defined in §3.291 of this title (relating to Contractors) are consumers of all materials, consumable items, and equipment used or incorporated into a customer's property. As a consumer, a contractor must pay tax to on all such all materials, consumable items, and equipment. See §3.291 of this title (relating to Contractors) for more information on lump-sum contracts. Contractors performing lump-sum contracts for persons having direct payment permits may not accept a direct payment exemption certificate from those persons. When performing lump-sum contracts for a direct payment permit holder, the contractor must pay sales tax to the supplier or accrue and remit sales tax on incorporated materials removed from a tax-free inventory for incorporation into the direct payment permit holder's realty. Direct payment permit holders cannot authorize the contractor or any other person to purchase any taxable item using their permit. See §3.288 of this title (relating to Direct Payment Procedures and Qualifications).(B) Contractors performing separated contracts as defined in §3.291 of this title (relating to Contractors) are considered retailers of all materials physically incorporated into the realty being improved. As a retailer, a contractor must collect tax from the customer based upon the agreed contract price of the incorporated materials. See §3.291 of this title (relating to Contractors) for more information on separated contracts. Contractors performing separated contracts for persons having direct payment permits may accept a direct payment exemption certificate from those persons in lieu of tax for all tangible personal property incorporated into customer's realty. A direct payment exemption certificate may not be accepted for tax liability incurred by the contractor on machinery or equipment rented or leased by the contractor and used in the performance of the contract. See §3.288 of this title (relating to Direct Payment Procedures and Qualifications).(2) Repairs, remodeling, restorations, or modifications other than to the processing production unit or that do not increase the capacity of the processing production unit are governed by the provisions of §3.357 of this title (relating to Labor Relating to Nonresidential Real Property Repair, Remodeling Restoration, Maintenance, New Construction, and Residential Property).(3) Persons who perform repair, remodeling, maintenance, or restoration services on tangible personal property are governed by the provisions of §3.292 of this title (relating to Repair, Remodeling, Maintenance, and Restoration of Tangible Personal Property). These services may be exempt under the Tax Code, §151.3111, that exempts services performed on tangible personal property if the property is exempt because of the nature of the property, its use, or a combination of its nature and its use.(4) Where increased capacity improvements and taxable services are sold or purchased for a single charge and the portion relating to taxable services represents more than 5.0% of the total charge, the total charge is presumed to be taxable. The presumption may be overcome by the service provider at the time the transaction occurs by separately stating to the customer a reasonable charge for the taxable services. However, if the charge for the taxable portion of the services is not separately stated at the time of the transaction, the service provider or the purchaser may later establish for the comptroller, through documentary evidence, the percentage of the total charge that relates to nontaxable unrelated services. Examples of acceptable documentation include written contracts detailing the scope of work, bid sheets, tally sheets, schedules of values, and blueprints.(5) When both increased capacity improvements and taxable services are being performed under the same contract, the parties to the contract should separately identify taxable from nontaxable labor in a contract and the charges applicable to each or the entire contract will be presumed to be for taxable services. Documentation which clearly defines the work being performed should be retained by both parties to show that had the increased capacity improvements and taxable services been done independently of each other, the cost of each would be reasonably near the allocation of charges. Examples of acceptable documentation include written contracts which detail the scope of work, bid sheets, tally sheets, schedules of values, and blueprints. If there is not a written contract signed by both parties clearly showing agreement as to the taxable and nontaxable work being performed, the customer and the service provider must prepare, at the time of the transaction, a written certification verifying the allocation of charges for increased capacity improvements and taxable services. The comptroller may recalculate the charges if the allocation appears unreasonable and either party may be held responsible for the additional tax due.(6) A service provider's customer must be able to substantiate by way of documentary evidence that repair, remodeling, restoration, or modification services performed on a production unit increase the unit's capacity as defined in subsection (a)(5) of this section. If the person performing the service does not have the certification set out in paragraph (5) of this subsection, the service provider must presume that the service is taxable and collect tax. If the service provider's customer has documentation to prove that the labor increases the capacity of a production unit, the customer may issue an exemption certificate in lieu of paying tax to the service provider. The certificate must state that the labor increases the production unit's capacity as defined in subsection (a)(5) of this section, and that the customer will be liable for any additional tax due in the event that it is determined that taxable services were performed. A service provider who accepts such a certificate should follow the guidelines set out in paragraph (1) of this subsection and §3.291 of this title (relating to Contractors).",
            "sourceNote": "Source Note: The provisions of this §3.362 adopted to be effective April 3, 1996, 21 TexReg 2473."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=191427&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "191427",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.364",
                "label": "Services by Employees"
            },
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                "recordId": "166385",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Affiliated group--Entities in which a controlling interest is owned by a common owner or owners, either corporate or noncorporate, or by one or more of the member entities.(2) Client--Any person who enters into a professional employer services agreement with a professional employer organization.(3) Coemployer--A professional employer organization or a client that is a party to a coemployment relationship.(4) Coemployment relationship--A contractual relationship between a client and a professional employer organization that involves the sharing of employment responsibilities with or allocation of employment responsibilities to covered employees in accordance with a professional employer services agreement and the provisions of Labor Code, Chapter 91.(5) Covered employee--An individual having a coemployment relationship with a professional employer organization and a client. The term does not include an independent contractor, a temporary common worker as defined by Labor Code, Chapter 92, or an employee providing temporary help.(6) Controlling interest--(A) for a corporation, either more than 50%, owned directly or indirectly, of the total combined voting power of all classes of stock of the corporation, or more than 50%, owned directly or indirectly, of the beneficial ownership interest in the voting stock of the corporation;(B) for a partnership, association, trust, or other entity other than a limited liability company, more than 50%, owned directly or indirectly, of the capital, profits, or beneficial interest in the partnership, association, trust, or other entity; and(C) for a limited liability company, either more than 50%, owned directly or indirectly, of the total membership interest of the limited liability company or more than 50%, owned directly or indirectly, of the beneficial ownership interest in the membership interest of the limited liability company.(7) Host employer--The employer who owns, manages, or controls the property or worksite where a temporary employee performs a service.(8) Independent contractor--A person who contracts to perform work or provide a service for the benefit of another and who:(A) is paid by the job, not by the hour or some other time measured basis;(B) is free to hire as many helpers as the person desires and to determine what each helper will be paid;(C) is free to work for other customers, or to send helpers to work for other customers, while under contract to the hiring customer; and(D) is in control of the details of the work and the right to terminate the employment of its employees.(9) Professional employer organization--A business entity that offers professional employer services and is licensed under Labor Code, Chapter 91.(10) Professional employer services--Services provided to a client by a professional employer organization through a coemployment relationship when a majority of the employees providing services to the client, or to a division or work unit of the client, are covered employees. The term does not include:(A) temporary employees;(B) the provision of services by an independent contractor;(C) the provision of services that otherwise meet the definition of \"professional employer services\" by one person solely to other persons who are related to the service provider by common ownership; or(D) services provided by a temporary common worker employer as defined by Labor Code, Chapter 92.(11) Temporary employee--An employee of a temporary employment service.(12) Temporary employment service--A person, corporation, organization, or other legal entity that employs individuals for the purpose of assigning those individuals to a host employer to support or supplement the host employer's workforce in a special work situation, including:(A) an employee absence;(B) a temporary skill shortage;(C) a seasonal workload; or(D) a special assignment or project.(b) Tax responsibilities of professional employer organizations.(1) Sales tax is not due on professional employer services if all of the following conditions are met:(A) at least 75% of the covered employees providing services under the professional employer services agreement were previously employees of the client for a period of at least three months immediately prior to commencement of the professional employer services agreement;(B) none of the covered employees were employed previously:(i) by the company providing professional employer services under the agreement unless the previous employment was through a coemployment relationship; or(ii) by a person that previously provided or currently provides taxable services to the client; and(C) a coemployment relationship exists between the client and the professional employer organization as to the covered employees.(2) The following are exceptions to paragraph (1) of this subsection.(A) A professional employer services agreement must comply only with paragraph (1)(B) and (C) of this subsection when the client has been in operation for less than a year; provided that a client that has been in existence less than a year solely due to a change in legal entity, merger, or corporate reorganization must meet all three conditions. In the latter situation, the combined experience of all entities involved in such legal change, merger, or corporate reorganization will be considered when applying the tests set forth in paragraph (1) of this subsection.(B) When a professional employer organization enters into an agreement with a client that previously was in a coemployment relationship with another professional employer organization immediately prior to the effective date of such new agreement, the employees that were subject to the coemployment relationship will be considered employees of the client in meeting the requirement in paragraph (1)(A) of this subsection.(C) A professional employer services agreement that has met the qualifications in paragraph (1) of this subsection will not have to re-qualify if a covered employee is fired or resigns and is replaced. However, an agreement must re-qualify under paragraph (1) if, within six months after it is entered into, all of the covered employees or an identifiable segment of the covered employees are replaced by:(i) employees previously employed by the professional employer organization unless the previous employment was through a coemployment relationship with another client; or(ii) employees of an entity that previously provided or currently provides taxable services to the client.(D) If the scope of an existing professional employer services agreement is expanded to increase the volume of services of the type already provided by the professional employer organization by adding employees to perform the same work functions of employees already under the agreement (for example, another shift is added), the amended agreement must meet the qualifications in paragraph (1)(B)(i) and (C) of this subsection.(E) If the scope of an existing professional employer services agreement is expanded to include services not previously provided by the professional employer organization by adding employees to perform functions that are not currently performed by employees under the agreement (for example, employees are added to perform debt collection services for a client who previously had not performed those services in house), the amended agreement must meet the qualifications in paragraph (1)(B) and (C) of this subsection.(3) The client and the professional employer organization must sign a written certification that the professional employer services agreement or amendments to the agreement meet the requirements and conditions set out in this section, and both parties must retain a copy of the certification in their files.(4) If an agreement does not meet the conditions for exemption set out in subsection (b) of this section, taxable services as defined in Tax Code, §151.0101, performed under the agreement are subject to sales tax, unless purchased for resale as provided in §3.285 of this title (relating to Resale Certificates; Sales for Resale).(5) When both nontaxable professional employer services and taxable services are being performed under the same agreement, the parties to the agreement should separately identify the taxable from nontaxable services in the agreement and the charges applicable to each. Failure to separate the charges will result in the entire agreement being presumed to be for taxable services. Documentation that clearly defines the work being performed should be retained by both parties to show that had the nontaxable professional employer services and taxable services been performed independently of each other, the cost of each would be reasonably near the allocation of charges. Examples of acceptable documentation include written agreements, which detail the scope of work, bid sheets, tally sheets, payroll records, and job descriptions. If there is not a written agreement signed by both parties clearly showing agreement as to the taxable and nontaxable work being performed, the customer and the service provider may prepare a written certification verifying the allocation of nontaxable professional employer services and taxable services. All services performed will be presumed to be taxable if the parties fail to provide the written certification. The comptroller may recalculate the charges if the allocation appears unreasonable and either party may be held responsible for the additional tax due.(c) Independent contractor. Professional employer services do not include services performed by an independent contractor regardless of the status of the contractor as a licensed professional employer organization.(d) Tax responsibilities of temporary employment services.(1) Taxable services performed for a host employer by temporary employees are exempt from sales tax when the following conditions are met:(A) the service is normally performed by the host employer's own employees;(B) the host employer is using the temporary employees to supplement its own work force;(C) the host employer provides the temporary employees all supplies and equipment necessary to perform the services, other than personal protective equipment provided by the temporary employment service pursuant to a federal law or regulation; and(D) the host employer does not rent, lease, purchase, or otherwise acquire for use any of the supplies and equipment described in paragraph (1)(C) of this subsection, other than the personal protective equipment described by that subsection, from the temporary employment service or an entity that is a member of an affiliated group of which the temporary employment service is also a member.(E) the host employer has the sole right to supervise, direct, and control the work performed by the temporary employee as necessary to conduct the host employer's business or to comply with any licensing, statutory, or regulatory requirement applicable to the host.(2) A temporary employment service may accept a properly completed blanket exemption certificate from the host employer. Refer to §3.287 of this title (relating to Exemption Certificates).(e) Services provided for an employer by an employee. A service performed by an employee for the employee's employer in the regular course of business, within the scope of the employee's duties, and for which the employee is paid regular wages or salary, is exempt from sales and use tax. An employee is not required to provide an employer with an exemption certificate. The employment tax records that an employer maintains for the Internal Revenue Service are sufficient documentation of exemption.",
            "sourceNote": "Source Note: The provisions of this §3.364 adopted to be effective August 12, 1996, 21 TexReg 7266; amended to be effective May 10, 1998, 23 TexReg 4314; amended to be effective August 28, 2016, 41 TexReg 6213; amended to be effective July 3, 2018, 43 TexReg 4465."
        },
        {
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            "currentRecordId": "166385",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
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            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
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            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.365",
                "label": "Sales Tax Holiday--Clothing, Shoes and School Supplies"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Clothing or footwear--An article of apparel that the article manufacturer designs for wear on or about the human body. Except as provided under paragraph (3) of this subsection, for the purposes of this section, the term does not include accessories, such as jewelry, handbags, purses, briefcases, luggage, wallets, watches, and similar items that are carried on or about the human body, without regard to whether the item is worn on the body in a manner that is characteristic of clothing.(2) Eligible item--For the purposes of this section, an article of clothing or footwear, a school backpack, or school supplies that are eligible for the sales tax exemption established under Tax Code, §151.326 and §151.327.(3) School backpack--A pack with straps that one wears on the back, including a backpack with wheels (provided it may also be worn on the back like a traditional backpack) or a messenger bag, that is purchased for use by a student in a public or private elementary or secondary school. The term does not include an item that is commonly considered luggage, a briefcase, an athletic bag, a duffle bag, a gym bag, a computer bag, or a framed backpack.(4) School supply--The term \"school supply\" has the meaning assigned by the Streamlined Sales and Use Tax Agreement adopted November 12, 2002, including all amendments made to the Agreement on or before December 14, 2006. The items set out in the following all-inclusive list are school supplies for the purpose of this exemption: binders, book bags, calculators, cellophane tape, blackboard chalk, compasses, composition books, crayons, erasers, expandable folders, pocket folders, plastic folders, manila folders, glue, paste, paste sticks, highlighters, index cards, index card boxes, legal pads, lunch boxes, markers, notebooks, loose leaf ruled notebook paper, copy paper, graph paper, tracing paper, manila paper, colored paper, poster board, construction paper, pencil boxes and other school supply boxes, pencil sharpeners, pencils, pens, protractors, rulers, scissors, and writing tablets. School supply items not on this list, for example, computers and textbooks, are not eligible for the exemption.(b) Exempt sales.(1) Sales or use tax is not due on the sale of an eligible item if:(A) the sales price of the eligible item is less than $100; and(B) the sale takes place during the period that begins at 12:01 a.m. on the Friday before the fifteenth day preceding the fourth Monday in August, and ends at 12:00 a.m. (midnight) on the following Sunday.(i) Using 2013 as an example, the fourth Monday in August falls on August 26. The fifteenth day preceding August 26 is Sunday, August 11th. The Friday before August 11 is August 9. The sales tax holiday will begin at 12:01 a.m. on Friday, August 9 and end at 12:00 a.m. (midnight) on Sunday, August 11.(ii) In 2014, the sales tax holiday will begin at 12:01 a.m. on Friday, August 8 and end at 12:00 a.m. (midnight) on Sunday, August 10.(iii) In 2015, the sales tax holiday will begin at 12:01 a.m. on Friday, August 7 and end at 12:00 a.m. (midnight) on Sunday, August 9.(2) The exemption applies to each eligible item that sells for less than $100, regardless of how many items are sold on the same invoice to a customer. For example, if a customer purchases two shirts for $80 each, then both items qualify for the exemption, even though the customer's total purchase price ($160) exceeds $99.99.(3) The exemption does not apply to the first $99.99 of an otherwise eligible item that sells for more than $99.99. For example, if a customer purchases a pair of pants that costs $110, then sales tax is due on the entire $110.(c) Taxable sales. The exemption under this section does not apply to:(1) any special clothing or footwear that the manufacturer primarily designed for athletic activity or protective use and that is not normally worn except when used for the athletic activity or protective use for which the manufacturer designed the article. For example, golf cleats and football pads are primarily designed for athletic activity or protective use and are not normally worn except when used for those purposes; therefore, they do not qualify for the exemption. However, tennis shoes, jogging suits, and swimsuits are commonly worn for purposes other than athletic activity and thus qualify for the exemption;(2) accessories, such as jewelry, handbags, purses, briefcases, luggage, athletic bags, duffle bags, gym bags, computer bags, framed backpacks, umbrellas, wallets, watches, and similar items that are carried on or about the human body, without regard to whether the item is worn on the body in a manner that is characteristic of clothing;(3) school supplies and backpacks that are not purchased for use by elementary or secondary school students;(4) school supplies not listed in subsection (a)(4) of this section;(5) the rental of clothing or footwear. For example, the exemption under this section does not apply to the rental of formal wear, costumes, uniforms, diapers, or bowling shoes;(6) taxable services that are performed on clothing or footwear, such as repair, remodeling, alterations, or maintenance services, and cleaning or laundry services. For example, a customer purchases a pair of pants for $90 and pays $15 to have the pants cuffed, then the $90 charge for the pants is exempt, but tax is due on the $15 alterations charge; and(7) purchases of items that are used to make or repair eligible items, including fabric, thread, yarn, buttons, snaps, hooks, and zippers.(d) Articles normally sold as a unit. Articles that are normally sold as a unit must continue to be sold in that manner; they cannot be priced separately and sold as individual items in order to obtain the exemption. For example, if a pair of shoes sells for $150, then the pair cannot be split in order to sell each shoe for $75 to qualify for the exemption. If a suit is normally priced at $225 on a single price tag, the suit cannot be split into separate articles so that any of the components may be sold for less than $100 in order to qualify for the exemption. However, components that are normally priced as separate articles may continue to be sold as separate articles and qualify for the exemption if the price of an article is less than $100.(e) Sales of pre-packaged combinations containing both exempt and taxable items.(1) When an eligible item is sold together with taxable merchandise in a pre-packaged combination or single unit and the predominant cost of the set or unit is taxable, then the full price is subject to sales tax unless the price of the eligible item is separately stated. For example, if a boxed gift set that consists of a French-cuff dress shirt, cufflinks, and a tie tack is sold for a single price of $95, the full price of the boxed gift set is taxable if the cufflinks and tie tack are the predominant cost and the price of the shirt and tie are not separately stated.(2) When an eligible item is sold in a pre-packaged combination that also contains taxable merchandise as a free gift and no additional charge is made for the gift, the eligible item may qualify for the exemption under this section. For example, a boxed set may contain a tie and a free tie tack. If the price of the set is the same as the price of the tie sold separately, the item that is being sold is the tie, which is exempt from tax if the tie is sold for less than $100 during the exemption period. Note: When a retailer gives an item away free of charge, the retailer owes sales or use tax on the purchase price that the retailer paid for the item.(f) Discounts and coupons.(1) A retailer may offer discounts to reduce the sales price of an item. If the discount reduces the sales price of an item to $99.99 or less, the item may qualify for the exemption under this section. For example, a customer buys a $150 dress and a $100 blouse from a retailer who offers a 10% discount. After application of the 10% discount, the final sales price of the dress is $135, and the blouse is $90. The dress is taxable (its price is over $99.99), and the blouse is exempt (its price is less than $100.00).(2) When retailers accept coupons as a part of the sales price of any taxable item, the value of the coupon is excludable from the tax as a cash discount, regardless of whether the retailer is reimbursed for the amount that the coupon represents. Therefore, a coupon can be used to reduce the sales price of an item to $99.99 or less in order to qualify for the exemption under this section. For example, if a customer purchases a pair of shoes priced at $110 with a coupon worth $20, the final sales price of the shoes is $90, and the shoes qualify for the exemption.(g) Buy one, get one free or for a reduced price. The total price of items that are advertised as \"buy one, get one free,\" or \"buy one, get one for a reduced price,\" cannot be averaged in order for both items to qualify for the exemption under this section. The following examples illustrate how such sales should be handled.(1) A retailer advertises pants as \"buy one, get one free.\" The first pair of pants is priced at $120; the second pair of pants is free. Tax is due on $120. Having advertised that the second pair is free, the store cannot register the charge for each pair of pants at $60 in order for the items to qualify for the exemption. However, if the retailer advertises and sells the pants for 50% off, and sells each pair of $120 pants for $60, each pair of pants qualifies for the exemption. Note: When a retailer gives an item away free of charge, the retailer owes sales or use tax on the purchase price that the retailer paid for the item.(2) A retailer advertises shoes as \"buy one pair at the regular price, get a second pair for half price.\" The first pair of shoes is sold for $100; the second pair is sold for $50 (half price). Tax is due on the $100 shoes, but not on the $50 shoes. Having advertised that the second pair is half price, the store cannot ring up each pair of shoes for $75 in order for the items to qualify for the exemption under this section. However, if the retailer advertises the shoes for 25% off, and thereby sells each pair of $100 shoes for $75, then each pair of shoes qualifies for the exemption.(h) Rebates. Rebates occur after the sale and do not affect the sales price of an item purchased. For example, a customer purchases a sweater for $110 and receives a $12 rebate from the manufacturer. The retailer must collect tax on the $110 sales price of the sweater.(i) Layaway sales. A layaway sale is a transaction in which merchandise is set aside for future delivery to a customer who makes a deposit, agrees to pay the balance of the purchase price over a period of time, and, at the end of the payment period, receives the merchandise. An order is accepted for layaway by the retailer when the retailer removes the goods from normal inventory or clearly identifies the items as sold to the customer. The sale of an eligible item under a layaway plan qualifies for exemption when either:(1) final payment on a layaway order is made by, and the merchandise is given to, the customer during the exemption period; or(2) the customer selects the eligible item and the retailer accepts the order for the item during the exemption period, for immediate delivery upon full payment, even if delivery is made after the exemption period.(j) Rain checks. Eligible items that customers purchase during the exemption period with use of a rain check will qualify for the exemption regardless of when the rain check was issued. However, issuance of a rain check during the exemption period will not qualify an eligible item for the exemption if the item is actually purchased after the exemption period.(k) Exchanges.(1) If a customer purchases an eligible item during the exemption period, but later exchanges the item for an item of a different size, different color, or other feature, no additional tax is due even if the exchange is made after the exemption period.(2) If a customer purchases an eligible item during the exemption period, but after the exemption period has ended, the customer returns the item and receives credit on the purchase of a different item, the appropriate sales tax is due on the sale of the newly purchased item.(3) If a customer purchases an eligible item before the exemption period, but during the exemption period the customer returns the item and receives credit on the purchase of a different eligible item, no sales tax is due on the sale of the new item if the new item is purchased during the exemption period.(4) Examples:(A) A customer purchases a $35 shirt during the exemption period. After the exemption period, the customer exchanges the shirt for the same shirt in a different size. Tax is not due on the $35 price of the shirt.(B) A customer purchases a $35 shirt during the exemption period. After the exemption period, the customer exchanges the shirt for a $35 jacket. Because the jacket was not purchased during the exemption period, tax is due on the $35 price of the jacket.(C) During the exemption period, a customer purchases a $90 dress that qualifies for the exemption. Later, during the exemption period, the customer exchanges the $90 dress for a $150 dress. Tax is due on the $150 dress. The $90 credit from the returned item cannot be used to reduce the sales price of the $150 item to $60 for exemption purposes.(D) During the exemption period, a customer purchases a $60 dress that qualifies for the exemption. Later, during the exemption period, the customer exchanges the $60 dress for a $95 dress. Tax is not due on the $95 dress because it was also purchased during the exemption period and otherwise meets the qualifications for the exemption.(l) Returned merchandise. For a 30-day period after the temporary exemption period, when a customer returns an item that would qualify for the exemption, no credit for or refund of sales tax shall be given unless the customer provides a receipt or invoice that shows tax was paid, or the retailer has sufficient documentation to show that tax was paid on the specific item. This 30-day period is set solely for the purpose of designating a time period during which the customer must provide documentation that shows that sales tax was paid on returned merchandise. The 30-day period is not intended to change a retailer's policy on the time period during which the retailer will accept returns.(m) Mail, telephone, e-mail, Internet orders, and custom orders. Under the Texas sales tax law, a sale of tangible personal property occurs when a purchaser receives title to or possession of the property for consideration. Therefore, an eligible item may qualify for this exemption if:(1) the item is both delivered to and paid for by the customer during the exemption period; or(2) the customer orders and pays for the item and the retailer accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period. The retailer accepts an order when the retailer has taken action to fill the order for immediate shipment. Actions to fill an order include placement of an \"in date\" stamp on a mail order, or assignment of an \"order number\" to a telephone order. An order is for immediate shipment when the customer does not request delayed shipment. An order is for immediate shipment notwithstanding that the shipment may be delayed because of a backlog of orders or because stock is currently unavailable to, or on back order by, the company.(n) Shipping and handling charges.(1) Shipping and handling charges are included as part of the sales price of an eligible item, regardless of whether the charges are separately stated. Except as provided in paragraph (2) of this subsection, if multiple items are shipped on a single invoice, the shipping and handling charge must be proportionately allocated to each item ordered, and separately identified on the invoice, to determine if any items qualify for the exemption. The following examples illustrate the way these charges should be handled.(A) A customer orders a jacket for $95. The shipping charge to deliver the jacket to the customer is $5.00. The sales price of the jacket is $100. Tax is due on the full sales price.(B) A customer orders a suit for $285 and a shirt for $95. The charge to deliver the items is $15. The $15 shipping charge must be proportionately and separately allocated between the items: $285 / $380 = 75%; therefore, 75% of the $15 shipping charge, or $11.25, must be allocated to the suit, and separately identified on the invoice as such. The remaining 25% of the $15 shipping charge, or $3.75, must be allocated to the shirt, and separately identified on the invoice as such. The sales price of the shirt is $95 plus $3.75, which totals $98.75; therefore, the shirt qualifies for the exemption.(C) A customer orders a suit for $285 and a shirt for $95. The charge to deliver the items is $20. The $20 shipping charge must be proportionately and separately allocated between the items: $285 / $380 = 75%; therefore, 75% of the $20 shipping charge, or $15, must be allocated to the suit, and separately identified on the invoice as such. The remaining 25% of the $20 shipping charge, or $5.00, must be allocated to the shirt, and separately identified on the invoice as such. The sales price of the shirt is $95 plus $5.00, which totals $100; because the sales price of the shirt exceeds $99.99, the purchase of the shirt is taxable.(2) If the shipping and handling charge is a flat rate per package and the amount charged is the same regardless of how many items are included in the package, for purposes of this exemption the total charge may be attributed to one of the items in the package rather than proportionately and separately allocated between the items. For example, a customer orders five shirts, with four priced at $98 and one at $85. The retailer charges $10 for shipping and handling the order. The retailer would have charged the same amount for shipping and handling whether the customer ordered one shirt or five shirts. The retailer may choose to attribute the $10 shipping and handling charge to the shirt that was sold for $85 rather than allocate the charge proportionately and separately between the shirts. If the charge is attributed to the $85 shirt, the sales price of that shirt is $95, and all of the shirts will qualify for the exemption.(o) Documenting exempt sales.(1) Except as provided in paragraphs (2) and (3) of this subsection, a retailer is not required to obtain an exemption certificate on sales of eligible items during the exemption period; however, the retailer's records should clearly identify the type of item sold, the date on which the item was sold, and the sales price of the item.(2) A retailer who sells more than 10 backpacks to a customer at the same time must obtain an exemption certificate from the customer verifying that the backpacks are being purchased for use by elementary or secondary school students.(3) If the purchaser is buying the school supplies under a business account, the retailer must obtain an exemption certificate from the purchaser certifying that the items are purchased for use by an elementary or secondary school student. \"Under a business account\" means the purchaser is using a business credit card or business check rather than a personal credit card or personal check; is being billed under a business account maintained at the retailer; or is using a business membership at a retailer that is membership based.(p) Reporting exempt sales. No special reporting procedures are necessary to report exempt sales made during the exemption period. Sales should be reported as currently required by law.",
            "sourceNote": "Source Note: The provisions of this §3.365 adopted to be effective September 7, 2000, 25 TexReg 8740; amended to be effective April 13, 2005, 30 TexReg 2085; amended to be effective October 6, 2008, 33 TexReg 8398; amended to be effective November 23, 2009, 34 TexReg 8338; amended to be effective December 3, 2012, 37 TexReg 9525; amended to be effective March 3, 2014, 39 TexReg 1479."
        },
        {
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            "currentRecordId": "81884",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.366",
                "label": "Internet Access Services"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Internet--collectively the myriad of computer and telecommunications facilities, including equipment and operating software, that comprise the interconnected worldwide network of networks that employ the Transmission Control Protocol / Internet Protocol, or any predecessor or successor protocols to the protocol, to communicate information of all kinds by wire or radio.(2) Internet access service--a service that enables users to access content, information, electronic mail, or other services offered over the Internet and may also include access to proprietary content, information, and other services as part of a package of services offered to consumers. The term does not include telecommunications services or other taxable services, unless these services are provided in conjunction with and are merely incidental to the provision of Internet access service. For example: Basic Internet access service includes the ability to access general information (an information service) and/or the ability to send information or messages via e-mail (a telecommunication service). These services are incidental to the provision of Internet access services and, unless separately stated, are considered part of the Internet access service. On the other hand, a person selling information services using the Internet, such as a company selling stock market prices, is not providing an Internet access service and must collect tax on the charge for its information service.(b) Amount subject to tax. The sale, use, or other consumption in this state of Internet access service is exempt from sales or use tax in an amount not to exceed the first $25 of a monthly charge. This exemption applies to the total sales price the service provider charges a purchaser for Internet access, without regard to whether the service provider charges one lump-sum amount or separately bills the purchaser for each user. For example: Company A buys Internet access for 25 employees at several locations. The first $25 of the total charge to Company A is exempt and not the first $25 of each user's apportioned cost. Because a \"purchaser\" is a single entity and the $25 exemption is provided per purchaser, not user, account, or site, separate billings for employees or for different locations will not reduce the taxable amount. This exemption applies without regard to:(1) whether the Internet access service is bundled with another service, including any other taxable service; or(2) the billing period used by the service provider. Example: An Internet access service is provided for a set fee of $99 per year. The fee will qualify in its entirety for exemption because the monthly charge is less than $25. The exemption applies to services performed on or after October 1, 1999. The exemption does not apply to services performed before the effective date and billed or paid for after the effective date of the exemption.(c) Hold permits. All providers of Internet access services must obtain a Texas sales and use tax permit and collect tax on the total amount subject to tax as provided in subsection (b) of this section, or accept a properly completed resale, exemption, or direct payment permit exemption certificate in lieu of collecting tax. See §3.285 of this title (relating to Resale Certificate; Sales for Resale); §3.287 of this title (relating to Exemption Certificates); and §3.288 of this title (relating to Direct Payment Procedures and Qualifications).(d) Resale certificates.(1) Providers of Internet access services may issue resale certificates in lieu of tax to suppliers of tangible personal property only if care, custody, and control of the property is transferred to the customers. For example, a service provider purchases diskettes to transfer software to customers. The service provider may purchase the diskettes tax free by issuing a resale certificate. However, promotional diskettes provided to potential customers are not resold and are taxable.(2) An entity that markets Internet access services for others and gives away, or sells for a nominal amount (less than 25%), computer-related equipment as an inducement to sign an Internet service contract is considered the consumer of the equipment and must pay tax on its acquisition cost of the equipment. An entity that markets Internet access services for others and also sells related equipment for 25% or more of acquisition cost is a retailer of the equipment. The entity may buy the transferred equipment tax free for resale and collect tax on its charge to its customers. For example, Company A markets Internet access services provided by Company B. Company A purchases computers for $400 that it offers to customers for free when a customer signs a contract for Internet access service with Company B. Company A is the consumer of the computer and owes tax when it purchases the computer. If Company A sells the computer to its customer for $100 or more (25% or more of cost), Company A may purchase the computer tax free for resale but must collect tax from its customer on the sales price of the computer ($100). If Company A sells the computer for less than $100 under the condition that the customer will purchase Internet access service from Company B, the nominal amount paid by the customer is not taxable and Company A must pay tax on the original purchase price of the equipment.(3) A resale certificate may be issued for a service if the buyer intends to transfer the service as an integral part of taxable services. A service will be considered an integral part of a taxable service if the service purchased is essential to the performance of the taxable service and without which the taxable service could not be rendered. For example, a provider of Internet access service may purchase tax free for resale telecommunication services used to provide the Internet access services.(e) Service benefit location. If both the Internet access service provider and the customer are located in Texas, Texas tax is due.(f) Service benefit location - multi-state customer.(1) To the extent Internet access service is provided to and accessed by a multi-state customer with users both within and outside of Texas, the service is presumed to be used at the location from which the Internet is accessed. The service is not taxable to the extent it is used outside Texas. A multi-state customer may use any reasonable method for allocation that is supported by business records.(2) A multi-state customer purchasing Internet access services for the benefit of both in-state and out-of-state locations is responsible for issuing to the Internet access service provider an exemption certificate asserting a multi-state benefit, and for reporting and paying the tax on that portion of the Internet access charge that will benefit the Texas location. An Internet access service provider that accepts such a certificate in good faith is relieved of responsibility for collecting and remitting tax on transactions to which the certificate relates.(g) Local taxes.(1) For local sales tax purposes, city, county, transit authority, and/or special purpose district sales taxes are due if the Internet access service provider has only one place of business (the location from which the provider accepts orders for Internet service) within the boundaries of a local taxing entity. Local sales tax must be collected based upon the tax rate at that location, except that no transit authority sales tax is due on services provided to a location outside the boundaries of the transit area. In the case of multiple locations, if an order for Internet service is taken at one location but the service is provided from another location from which customers may order service, the place of business from which the service is provided will determine to which local taxing entity the tax is allocated.(2) For the purposes of the local use tax, if a place of business is outside the boundaries of a local taxing entity, the Internet access service provider will be required to collect local use tax if the client is within the local taxing entity and the service provider has representation in the local taxing entity as outlined in §3.286 of this title (relating to Seller's and Purchaser's Responsibilities). Even if the service provider is not required to collect local use tax, the client is still liable for the tax if the service is received or a benefit is derived from the service within the boundaries of a local taxing entity.(3) An in-state customer purchasing Internet access services for the benefit of locations in more than one local taxing entity is responsible for issuing to the Internet access service provider an exemption certificate claiming a multi-city benefit and for determining the extent of benefit for each entity. The local use tax for each entity must be reported, allocated, and paid by the customer. An Internet access service provider that accepts in good faith an exemption certificate claiming a multi-city benefit is relieved of responsibility for collecting and remitting local tax on transactions to which the certificate relates.(h) Use tax. If a provider of an Internet access service is not engaged in business in Texas or in a specific local taxing jurisdiction and is not required to collect Texas tax, it is the Texas customer's responsibility to report and pay the state and local use tax directly to this office.",
            "sourceNote": "Source Note: The provisions of this §3.366 adopted to be effective September 12, 2000, 25 TexReg 9013."
        },
        {
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            "currentRecordId": "119697",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.367",
                "label": "Timber Items (Tax Code, §151.3162 and §151.317)"
            },
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                "recordId": "180962",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Equipment--An apparatus, device, hand tool, simple machine, or expendable supply item. Examples include axes, handsaws, ropes, tree measurement devices, harnesses for tree climbing, eye protection goggles, ear protection devices, components of above-ground sprinkler systems or underground sprinkler systems, boards or mats used for access to commercial timber sites, and expendable supplies such as lubricants, solvents, and rags. The term \"equipment\" includes repair, replacement parts, and accessories for equipment. A computer or software program may qualify, if it is used exclusively in the production of timber. For example, a computer used exclusively to measure or track the growth of the trees to determine harvest time is a timber item. However, computers and software used in business accounting, bookkeeping, word processing, preparation of payrolls and employee evaluations, or other non-production activities are not timber items. The term does not include furniture, office supplies, or office equipment.(2) Machinery--A powered-operated machine. Examples include chain saws, chippers, machinery used to drill holes for planting, machinery used to fertilize, harvesters, slashers, merchandisers including total merchandising systems, debarkers, delimbers, grapples, log stackers, feller bunchers, loaders including knuckleboom loaders, skidders, tractors, bulldozers, welding machines, compressors, and generators. The term \"machinery\" includes repair, replacement parts, and accessories for machinery. The term does not include motor vehicles or repair, replacement parts, or accessories for motor vehicles except for motor vehicles that qualify as timber machines and timber trailers.(3) Original producer--a person who:(A) harvests timber that the person owns and continues to own until the timber is processed, packed, or marketed; or(B) is the grower of the timber, exercises predominant operational control over the growth of the timber, and bears the risk of loss of investment in the timber.(4) Pollution control equipment--Machinery and equipment that are used by an original producer to control pollution that results from the processing, packing, or marketing of timber products by the original producer.(5) Production of timber--Activities to prepare the production site or to plant, cultivate, or harvest commercial timber that will be sold in the regular course of business. The term includes construction, repair, and maintenance of private roads and lanes exclusively used for access to commercial timber sites. Activities at a harvest site to cut down commercial timber, debark, delimb, chip, slash, and to prepare and load harvested timber qualify as the production of timber but are not manufacturing operations as described in subsection (f) of this section. The use of a timber trailer to haul the harvested logs or chips from the harvest site for delivery to a saw mill also qualifies as the production of timber. Transportation of timber products from a location other than a commercial timber harvest site does not qualify.(6) Timber machine--A self-propelled motor vehicle specially adapted to perform a specialized function for use primarily in timber operations. Timber machine does not include any self-propelled motor vehicle specifically designed or adapted for the primary purpose of transporting timber or timber products including a self-propelled motor vehicle designed to transport cargo and adapted with a cargo loading device. For information concerning the exemption of a timber machine from motor vehicle sales tax under Chapter 152 of the Tax Code, see §3.72 of this title (relating to Farm Machines, Timber Machines and Trailers).(7) Timber trailer--A trailer or semitrailer designed for and used primarily in a timber operation. For information concerning the exemption of a timber trailer from motor vehicle sales tax under Chapter 152 of the Tax Code, see §3.72 of this title (relating to Farm Machines, Timber Machines and Trailers).(b) Qualifying items. Persons may claim a partial refund or credit for Texas sales or use taxes paid on purchases of the following items:(1) seedlings of trees commonly grown for commercial timber. Examples of trees commonly grown for commercial timber include hardwood or pine trees;(2) defoliants, desiccants, fertilizers, fungicides, herbicides, and insecticides that are exclusively used in the production of timber for sale;(3) machinery or equipment that is exclusively used in the production of timber for sale, including accessories, repair or replacement parts, and lubricants for the machinery or equipment;(4) tangible personal property sold or used as a component of an underground irrigation system that is exclusively used in the production of timber for sale. For example, a contractor who has a lump-sum contract to install an underground irrigation system as an improvement to realty is the consumer of the incorporated materials and must pay sales tax on purchases. As authorized by Tax Code, §151.3162(b)(2), the contractor may request a partial refund or credit for tax that the contractor paid on the qualifying components of the irrigation system. For further information on contracts to improve real property, see §3.291 of this title (relating to Contractors); and(5) machinery or equipment, including pollution control equipment, that the original producer uses to process, pack, or market timber product, if the machinery or equipment meets the requirements enumerated in subsection (d)(1) of this section. Examples of eligible machinery and equipment include stacking sticks used to dry the lumber, forklifts, and conveyors.(c) Partial refund or credit for sales or use tax paid on qualifying items. A person who, during the period beginning October 1, 2001, and ending December 31, 2007, pays Texas sales or use tax on the purchase, lease, or rental of a qualifying item as set out in subsection (b) of this section may either request a partial refund of the tax directly from the comptroller or take a credit on a sales tax return for a portion of the tax. The amount of the partial refund or credit is determined by the date that the qualifying item is purchased, leased, or rented, as provided in paragraphs (1) - (3) of this subsection. At the time of the purchase, lease, or rental, the purchaser must pay sales or use tax to the retailer and may not issue an exemption certificate to the retailer. A purchaser must accrue and pay use tax to the comptroller on qualifying items purchased out-of-state for use in Texas (see §3.346, concerning Use Tax). The purchaser may take the partial credit on the sales and use tax return when the purchaser reports and pays the tax to the comptroller. The amount of credit will be determined by the date on which the purchaser brings the qualifying items into this state.(1) If a qualifying item is purchased, leased, or rented from October 1, 2001 through December 31, 2003, then the purchaser is entitled to a refund or credit in an amount equal to 33% of the tax paid on the item.(2) If a qualifying item is purchased, leased, or rented from January 1, 2004 through December 31, 2005, then the purchaser is entitled to a refund or credit in an amount equal to 50% of the tax paid on the item.(3) If a qualifying item is purchased, leased or rented from January 1, 2006 through December 31, 2007, then the purchaser is entitled to a refund or credit in an amount equal to 75% of the tax paid on the item.(4) A purchaser may seek a refund or take a credit for tax paid on exempt timber items within the following limitations:(A) A purchaser who elects to take a credit must claim the credit on a sales or use tax return for a report period that ends not later than the first anniversary of the date that the timber item was purchased, leased, or rented. For example, a quarterly filer who purchases and pays tax on a qualifying item on October 2, 2001, may take the 33% credit on any quarterly return up to and including the return for the quarter that ends September 30, 2002.(B) A purchaser who elects to claim a refund directly from the comptroller must submit a written claim not later than December 31 of the calendar year immediately following the year in which the tax was paid. For example, a purchaser who purchases a timber item and pays tax on October 2, 2001, must submit a refund claim for 33% of tax paid by December 31, 2002.(C) A purchaser who fails to take a credit on a return before the expiration of the limitation period provided in subparagraph (A) of this paragraph may still request a refund directly from the comptroller within the limitation period provided in subparagraph (B) of this paragraph.(5) Interest. Sales or use taxes paid on timber items that are purchased, leased, or rented from October 1, 2001 through December 31, 2007, are not taxes paid in error, and no interest under Tax Code, §111.064, is due on partial refunds or credits taken on timber items.(6) Taxable services. Sales or use taxes paid on maintenance, repair, or remodeling performed on qualifying machinery or equipment from October 1, 2001 through December 31, 2007, are not eligible for the partial refund or credit. A purchaser may claim a partial refund or take a credit for tax paid on separately stated charges for parts, accessories, and lubricants for qualifying machinery or equipment.(7) Rentals and Leases. The amount of partial refund or credit will be determined by the date on which the lessee takes possession of the items. The lessee may not claim a refund or take credit until tax has been paid. The limitations in which the refund or credit must be claimed or taken, as provided in paragraph (4) of this subsection, are based on the date the lessee paid tax.(d) Original producer.(1) The original producer may qualify for the partial refund or credit only if:(A) the processing, packing, or marketing occurs at or from a location operated by the original producer;(B) at least 50% of the value of the timber products processed, packed, or marketed at or from the location during the most recent calendar year is attributable to products produced by the original producer and not purchased or acquired from others; and(C) the original producer does not for consideration process, pack, or market timber products that belong to others, unless the value of the product that belongs to another person is 5.0% or less of the total value of the timber products processed, packed, or marketed by the original producer.(2) Two or more corporations that operate timber activities on the same or adjacent tracts of land and that are entirely owned by the same individual or a combination of the individual, the individual's spouse, and the individual's children may qualify as an original producer for the purposes of this paragraph.(e) Exemption for timber items. After December 31, 2007, the purchase, lease, or rental of timber items will be exempt from sales or use tax, and a purchaser may issue a retailer a properly completed exemption certificate in lieu of paying tax on qualifying items that are purchased, leased, or rented after December 31, 2007. After December 31, 2007, taxable services performed on qualifying items will be exempt under Tax Code, §151.3111.(f) Exemption for off-road, heavy-duty diesel equipment. A person who uses off-road heavy-duty diesel equipment in timber operations may claim an exemption from the Texas Emissions Reduction Plan Surcharge imposed by Tax Code §151.0515 provided the equipment is exclusively used in the production of timber for sale.(g) Manufacturing. A person who processes or fabricates tangible personal property to be sold is a manufacturer and may be entitled to manufacturing exemptions provided by Tax Code, §151.318. See §3.300 of this title (relating to Manufacturing; Custom Manufacturing; Fabricating; Processing) for information on tax exemptions for equipment and supplies used in manufacturing. For information regarding wrapping and packaging supplies purchased by manufacturers, see §3.314 of this title (relating to Wrapping, Packing, Packaging Supplies, Containers, Labels, Tags, Export Packers, and Stevedoring Materials and Suppliers).(h) Gas and electricity exemption. Effective October 1, 2001, natural gas and electricity used in timber operations are exempt from sales and use taxes. See §3.295 of this title (relating to Natural Gas and Electricity) for further information regarding the exemption of natural gas and electricity.(i) Buildings. Buildings, structural components of buildings, and/or the materials used to build, construct, or fabricate buildings are not timber items and are taxable.(1) Buildings include any structures or edifices enclosing a space within their walls, and usually are covered by a roof, the purpose of which may be to provide storage, shelter, or housing, or to provide work, office, or sales space. Examples of buildings include residential quarters, offices, storage facilities, and warehouses.(2) A building or structure that is essentially an item of equipment or machinery necessary for timber production may be considered timber equipment if it is specifically designed for such use and cannot be economically used for any other purpose. For example, a commercial greenhouse is timber equipment if it is used to grow seedlings of trees commonly grown for commercial timber.(3) Pollution control equipment and machinery or equipment used in processing, packing, or marketing by an original producer, may qualify even if the machinery and equipment are affixed to real property. For a timber producer to qualify for sales tax refunds or credits on qualifying items that are installed under a contract to improve real property, the timber producer must enter into a separated contract. Additionally, the contract must separately state the charges for the qualifying items from the charges for other tangible personal property. See §3.291 of this title  (relating to Contractors) for information regarding new construction contracts. See §3.357 of this title (relating to Nonresidential Real Property Repair, Remodeling, and Restoration; Real Property Maintenance) for information regarding nonresidential real property repair, remodeling, or restoration.(j) Repeal of previous exemption. Effective October 1, 2001, the exemption in Tax Code, §151.3161, that took effect on October 1, 1995, is repealed. That provision allowed a tax exemption for the first $50,000 of the purchase price of each complete unit of machinery or equipment used exclusively in a commercial timber operation to prepare the site, plant, cultivate, or to harvest timber in the regular course of business.",
            "sourceNote": "Source Note: The provisions of this §3.367 adopted to be effective December 31, 2002, 27 TexReg 12367; amended to be effective April 13, 2005, 30 TexReg 2085."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=180962&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "180962",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "STATE AND LOCAL SALES AND USE TAXES"
            },
            "rule": {
                "number": "§3.369",
                "label": "Sales Tax Holiday--Certain Energy Star Products, Certain Water-Conserving Products, and WaterSense Products"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=176117&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "176117",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Energy-efficient product--A product that has been designated as an Energy Star qualified product under the Energy Star program jointly operated by the United States Environmental Protection Agency and the United States Department of Energy and that is an:(A) air conditioner priced at $6,000 or less (room and central units);(B) clothes washer;(C) ceiling fan;(D) dehumidifier;(E) dishwasher;(F) incandescent or fluorescent light bulb;(G) programmable thermostat; or(H) refrigerator (including a mini-fridge) priced at $2,000 or less.(2) Exchange--The act of giving or taking one thing in return for another.(3) Exemption period--The period beginning at 12:01 a.m. on the Saturday preceding the last Monday in May (Memorial Day) and ending at 11:59 p.m. on the last Monday in May.(4) Layaway sales--A transaction in which merchandise is set aside for future delivery to a person who makes a deposit, agrees to pay the balance of the purchase price over a period of time, and, at the end of the payment period, receives the merchandise.(5) Qualifying products--Energy-efficient, water-conserving, and WaterSense products eligible for exemption from sales and use tax if purchased, leased, or rented during the exemption period.(6) Rain check--A document assuring that a person can take advantage of a sale or special offer made by a seller at a later time if the item offered is not available.(7) Water-conserving product--(A) tangible personal property that is used on residential property and is not used for business or trade, and when used or planted in an outdoor residential property, may result in:(i) water conservation or groundwater retention;(ii) water table recharge; or(iii) a decrease in ambient air temperature that limits water evaporation.(B) Examples of water-conserving products include:(i) a soaker or drip-irrigation hose;(ii) a moisture control for a sprinkler or irrigation system;(iii) mulch;(iv) a rain barrel or an alternative rain and moisture collection system;(v) a permeable ground cover surface that allows water to reach underground basins, aquifers, or water collection points;(vi) grasses, plants, shrubs, and trees; and(vii) water-saving surfactants designed to help water penetrate the soil.(C) Products purchased by a business, including an apartment complex or nursing home, are used for business or trade and are not water-conserving products.(D) Products that are incorporated into real property under a lump-sum contract are used for business or trade by the person improving the real property and are not water-conserving products.(8) WaterSense product--A product that has been designated as a WaterSense certified product under the WaterSense program operated by the United States Environmental Protection Agency, or a similar successor program.(b) Exempt sales.(1) Sales or use tax is not due on the sale of a qualifying product if the sale takes place during the exemption period.(2) There is no limit to the number of qualifying products one can purchase exempt from sales tax during the exemption period.(3) The exemption applies to each qualifying product sold during the exemption period, regardless of how many qualifying products are sold on the same invoice to a person. For example, if a person purchases two refrigerators for $1,800 each, then both refrigerators qualify for the exemption, even though the person's total purchase price ($3,600) exceeds $2,000.(4) Qualifying products may be rented or leased tax-free, including under a \"rent to own\" contract, if the rental or lease contract is executed during the exemption period. The exemption applies only to the specified rental or lease period designated by the contract. Extensions or renewals of rental or lease contracts do not qualify for the exemption unless executed during the exemption period.(c) Taxable sales. The exemption under this section does not apply to:(1) products designated as Energy Star products under the Energy Star program that are not specifically identified in subsection (a)(1) of this section;(2) products that may conserve water but that do not meet the definition of a water-conserving product provided in subsection (a)(7) of this section;(3) repair or replacement parts for qualifying products that are used to repair or remodel products already owned by a person and that do not otherwise qualify for exemption. For example, an individual may own a central air conditioner with a faulty compressor. The individual cannot obtain the exemption on the purchase of a new Energy Star qualified compressor;(4) an Energy Star qualified air conditioner that sells for more than $6,000. For example, if a person purchases an Energy Star qualified air conditioner that costs $6,055, then sales tax is due on the entire $6,055;(5) an Energy Star qualified refrigerator that sells for more than $2,000. For example, if a customer purchases an Energy Star qualified refrigerator that costs $2,055, then sales tax is due on the entire $2,055;(6) system components sold individually. Qualifying products must be sold as a unit in order to qualify for the exemption. The components cannot be priced separately and sold as individual items in order to obtain the exemption. For example, central air conditioners must be priced at $6,000 or less and sold as a unit in order to qualify for the exemption. If an Energy Star qualified central air conditioner sells for $7,000, the entire $7,000 charge is subject to tax and cannot be split into separate charges for a compressor, metering device, evaporator coil and blower in order to qualify for the exemption; and(7) disposal fees charged for the removal of old appliances. Disposal or \"haul away\" fees charged for the removal of an old appliance are taxable as a waste removal service.(d) Sales of pre-packaged combinations containing both exempt and taxable items.(1) When a qualifying product is sold together with taxable merchandise in a pre-packaged combination or single unit, the full price is subject to sales tax unless the price of the qualifying product is separately stated. For example, a clothes washer and clothes dryer sold as a \"set\" for a single price is taxable if the washer and dryer are separate appliances. A separately stated charge for the Energy Star rated washing machine is eligible for the sales tax exemption during the holiday period. Tax is due on the dryer. An Energy Star rated combination washer and dryer unit that is designed to be sold as a single unit and that cannot be sold separately will, however, qualify for the exemption.(2) When a qualifying product is sold in a pre-packaged combination that also contains a taxable item as a free gift, and no additional charge is made for the gift, the qualifying product may qualify for the exemption under this section. For example, the sale of a dishwasher may include a free bottle of rinse aid. If the price of the set is the same as the price of the dishwasher sold separately, the product that is being sold is the dishwasher, which is exempt from tax if sold during the exemption period. Note: When a retailer gives a taxable item away free of charge, the retailer owes sales or use tax on the purchase price that the retailer paid for the item. See §3.301 of this title (relating to Promotional Plans, Coupons, Retailer Reimbursement).(e) Delivery charges.(1) Air conditioners and refrigerators. Delivery charges that are billed by the seller to the purchaser are included as part of the total sales price of a qualifying product, regardless of whether the charges are separately stated, and as such must be considered when determining whether air conditioners and refrigerators qualify for the exemption. The addition of delivery charges to the retail price of a refrigerator or air conditioner will cause the loss of the exemption if the total price exceeds the applicable cap. For example, assume a person purchases an Energy Star qualified refrigerator priced at $1,985. The charge to deliver the refrigerator is $25, causing the total sales price to be $2,010. Since the total sales price of the refrigerator exceeds $2,000, the refrigerator does not qualify for the exemption, and tax is due on the total sales price of $2,010.(2) Items other than air conditioners and refrigerators. Delivery charges that are billed by the seller to the purchaser are exempt if the product sold is exempt. For example, delivery fees billed in connection with the sale of a qualifying energy-efficient dishwasher during the exemption period are exempt.(3) \"Per item\" delivery fees. Delivery charges billed on a \"per item\" basis must be properly allocated when a delivery to the same person contains both exempt and taxable items. Except as provided in paragraph (4) of this subsection, if multiple items are shipped on a single invoice, the delivery charges must be allocated to each item ordered and separately identified on the invoice. For example, assume that a person purchases a qualifying clothes washer tax-free during the exemption period. The same person also purchases a clothes dryer, which does not qualify for the exemption. The retailer charges the person an additional fee of $25 per appliance for delivery. The $25 delivery fee connected to the delivery of the qualifying clothes washer is exempt from sales tax, but the $25 fee connected to the delivery of the clothes dryer is subject to tax.(4) \"Flat rate\" delivery fees. If the delivery charge is a flat rate per delivery address, and the amount charged is the same regardless of how many items are included in the delivery, for purposes of the exemption, the total charge may be attributed to one of the items in the delivery rather than proportionately allocated between the items. The delivery fee can be allocated to either an exempt qualifying product or a taxable product. The following examples illustrate the way these charges should be handled.(A) Delivery fee allocated to exempt item. Assume a seller charges a flat fee of $50 per customer address for delivery regardless of the number of items delivered to that address and during the exemption period, a person purchases an Energy Star qualified refrigerator priced at $1,900, a taxable stove and a taxable microwave. The seller may attribute the $50 delivery charge to the sale of the refrigerator bringing the sales price of the refrigerator to $1,950. The refrigerator sales price does not exceed $2,000, so it still qualifies for the exemption. The seller does not have to allocate the delivery charge between the refrigerator, stove and microwave. The sales invoice must clearly identify that the delivery charge was attributed to the exempt item and must separately state the tax due on the taxable items.(B) Delivery fee allocated to taxable item. Assume a seller charges a flat fee of $50 per customer address for delivery regardless of the number of items delivered to that address and during the exemption period, a person purchases an Energy Star qualified refrigerator priced at $1,975 and a taxable stove. The seller may attribute the entire $50 delivery charge to the sale of the stove, thus allowing the total sales price of the refrigerator to remain $1,975. Since the refrigerator sales price does not exceed $2,000 it still qualifies for the exemption. The seller does not have to allocate the delivery charge between the refrigerator and stove. The sales invoice must clearly identify that the delivery charge was attributed to the taxable stove and must separately state the tax due on the taxable item.(f) Installation charges. A charge for the installation of a qualifying product purchased during the exemption period qualifies for exemption only if the item remains tangible personal property after installation. If the product becomes real property after installation, the charge for installation labor may be taxable or nontaxable depending on whether the product is installed in residential or nonresidential property or as part of a new construction contract.(1) Tangible personal property. Products that are free-standing or mobile, such as clothes washers, dehumidifiers, refrigerators, portable dishwashers and window or room air conditioning units are tangible personal property. If qualifying tangible personal property retains its identity as tangible personal property after installation, the installation charge billed by the seller of the item becomes part of the sales price of the item. As part of the sales price, an installation charge billed by the seller qualifies for the exemption, even if the installation is performed after the exemption period. If however, the charge for installation of an Energy Star qualified refrigerator, which remains tangible personal property after installation, causes the total sales price to exceed $2,000, the entire charge of the refrigerator, delivery and installation, is taxable.(2) Improvements to real property. Items such as programmable thermostats, central air conditioning units, ceiling fans and built-in refrigerators and dishwashers that are plumbed, wired or otherwise permanently attached to a building structure are improvements to real property. For items that become improvements to real property, the taxability of the installation labor is determined by the type of jobsite: residential, new construction or nonresidential repair or remodeling.(A) Residential and new construction. No tax is due on charges for labor to install items such as ceiling fans, programmable thermostats or central air conditioning units in residential property or during a new construction project. See §3.291 of this title (relating to Contractors).(B) Nonresidential repair and remodeling. Nonresidential repair and remodeling is a taxable service. Therefore, tax is due on charges for labor to install ceiling fans, built-in appliances, programmable thermostats and central air conditioning units in existing nonresidential real property, regardless of when the installation is performed. Charges for installation labor performed on existing nonresidential real property should be separately stated on the invoice from the sales price of qualifying energy-efficient or WaterSense products. Separately stated charges for products that may conserve water but that are not water-conserving products because they are installed in nonresidential real property are taxable. A lump sum charge for the purchase of a qualifying product and installation labor is subject to tax as the purchase of nonresidential repair and remodeling. See §3.357 of this title (relating to Nonresidential Real Property Repair, Remodeling, and Restoration; Real Property Maintenance).(g) Purchases by real estate developers, dealers, service providers and contractors. Real estate developers, dealers, service providers and contractors may purchase qualifying products tax-free during the sales tax holiday as discussed in this subsection.(1) An exemption or resale certificate is not required for purchases of energy-efficient or WaterSense products.(2) A resale certificate must be provided for purchases of water-conserving products that will be subsequently resold to customers or incorporated into customers' real property under a separated contract.(3) An exemption certificate or resale certificate may not be provided for purchases of products that may conserve water but will be incorporated into real property under a lump-sum contract.(4) There is no limit to the number of qualifying products a person may purchase tax-free during the exemption period.(5) Held in inventory. Qualifying products purchased tax-free during the exemption period may be held in inventory until ready for use as discussed in this subsection.(A) No use tax is due if an energy-efficient product or WaterSense product purchased tax free during the exemption period by a contractor, developer, etc., is subsequently incorporated into the realty of a contractor's customer under a lump sum contract for new construction or residential repair and remodeling. See §3.291 of this title. Use tax is due on products that may conserve water but do not meet the definition of water-conserving products provided in subsection (a)(7) of this section because the products were incorporated into real property under a lump sum contract.(B) Sales tax is due on sales of energy-efficient or WaterSense products transferred to customers as part of a nonresidential repair and remodeling contract preformed after the exemption period. Nonresidential repair and remodeling service providers are responsible for collecting sales tax from customers on sales of energy-efficient or WaterSense products under a separated contract or under a lump sum contract for nonresidential repair and remodeling, unless the transaction (the sale of the energy-efficient or WaterSense product) between the customer and service provider, dealer or contractor occurs during the exemption period under a separated contract. See §3.357 of this title.(h) Discounts and coupons. An Energy Star qualified air conditioner must be priced at $6,000 or less in order to qualify for the exemption. An Energy Star qualified refrigerator must be priced at $2,000 or less to qualify for the exemption. A seller may offer a discount or a coupon that reduces the sales price of an Energy Star qualified air conditioner or refrigerator. A discount or a coupon affects the application of the exemption as explained in paragraphs (1) and (2) of this subsection. The total sales price of the product includes delivery and installation charges as explained in subsections (e) and (f) of this section. See §3.301 of this title.(1) Discounts. If a discount reduces the sales price of an Energy Star qualified air conditioner to $6,000 or less, or reduces the sales price of an Energy Star qualified refrigerator to $2,000 or less, the air conditioner or refrigerator qualifies for the exemption under this section. For example, a person buys an Energy Star qualified free-standing refrigerator that has a sales price of $2,050, including shipping, handling and installation of tangible personal property, from a seller who offers a 10% discount. After application of the 10% discount, the final sales price of the refrigerator is $1,845. The refrigerator is exempt because its sales price does not exceed $2,000.(2) Coupons. When sellers accept a manufacture's or other coupon as a part of the sales price of any taxable item, the value of the coupon reduces the sales price, the same as a cash discount, regardless of whether the retailer is reimbursed for the amount that the coupon represents. Therefore, a coupon can be used to reduce the sales price of an Energy Star qualified air conditioner to $6,000 or less, or to reduce the sales price of an Energy Star qualified refrigerator to $2,000 or less. The item then qualifies for exemption under this section. For example, a person buys an Energy Star qualified free-standing refrigerator that has a sales price of $2,050, including shipping, handling and installation of tangible personal property, with a coupon worth $100. After application of the $100 coupon, the sales price of the refrigerator is $1,950. The refrigerator is exempt because its sales price does not exceed $2,000.(i) Rebates.(1) Rebates given at the time of sale. Rebates provided by a seller are cash discounts when given at the time of sale and as such are excludable from the tax base. The rebate, like a discount when taken at the time of the sale, is a reduction in the amount subject to tax.(2) Rebates that occur after the sale. Rebates that are paid to a purchaser after the exemption period do not affect the sales price of an item purchased for purposes of determining whether an item qualifies for exemption under this section. The full amount of the sales price, before the rebate, is used to determine whether the exemption applies. For example, if a person purchases an Energy Star qualified air conditioner for $6,050 and receives a $300 mail-in rebate from the manufacturer, the seller must collect tax on the $6,050 sales price of the air conditioner.(j) Layaway sales and purchases by means other than in person.(1) the sale of an energy-efficient product, WaterSense product, or water-conserving product under a layaway plan or purchased by mail, telephone, email, internet, custom order, or any other means other than in person qualifies for exemption when:(A) the purchaser places the item on layaway during the exemption period and the seller accepts the order for immediate delivery upon full payment, even if delivery is made after the exemption period;(B) the purchaser places the order and the seller accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period; or(C) final payment on a layaway order is made by, and the merchandise is given to, the purchaser during the exemption period.(2) For purposes of this subsection, the seller accepts an order when the seller has taken action to fill the order for immediate shipment. Actions to fill an order include placement of an \"in date\" stamp on a mail order, or assignment of an \"order number\" to a telephone order. An order is for immediate shipment notwithstanding that the shipment may be delayed because of a backlog of orders or because stock is currently unavailable to, or on back order by, the seller.(k) Rain checks. Qualifying products that are purchased during the exemption period with use of a rain check qualify for the exemption regardless of when the rain check was issued. However, issuance of a rain check during the exemption period will not cause the purchase of a qualifying product to be exempt if the item is actually purchased after the exemption period.(l) Exchanges.(1) If a person purchases a qualifying product during the exemption period, and, after the exemption period has ended, exchanges the item for a qualifying product of equal or lesser value, no additional tax is due. For example, a person purchases a $60 qualifying dehumidifier during the exemption period. After the exemption period, the person exchanges it for a $60 qualifying dehumidifier of a different brand. Tax is not due on the $60 sales price of the new dehumidifier.(2) If a person purchases a qualifying product during the exemption period, and after the exemption period has ended, exchanges the product for a qualifying product of greater value, tax is due on the difference between the prices of the two products. For example, assume a person purchases a $60 qualifying dehumidifier during the exemption period. After the exemption period, the person exchanges it for $70 in qualifying light bulbs. Tax is due on the $10 difference between the two sales prices.(3) If a person purchases a qualifying product during the exemption period, and after the exemption period has ended, exchanges the products for a nonqualifying item, tax is due on the original sales price of the nonqualifying item. For example, assume a person purchases a $60 qualifying dehumidifier during the exemption period. After the exemption period, the person exchanges it for a $60 nonqualifying microwave. Tax is due on the $60 sales price of the nonqualifying microwave.(4) If a person purchases a qualifying product before the exemption period, but, during the exemption period, returns the product and receives credit on the purchase of a different qualifying product, no sales tax is due on the sale of the new product if the new item is purchased during the exemption period. For example, assume a person purchases a $60 qualifying dehumidifier before the exemption period. During the exemption period, the person returns the dehumidifier and receives credit on the purchase of a $70 qualifying ceiling fan. No tax is due on the sale of the ceiling fan if it is purchased during the exemption period.(m) Returned merchandise. When a person returns an item that would qualify for the exemption, no credit for or refund of sales tax shall be given unless the person provides a receipt or invoice that shows tax was paid, or the retailer has sufficient documentation to show that tax was paid on the specific item.(n) Documenting exempt sales.(1) A seller is not required to obtain an exemption certificate on sales of energy-efficient or WaterSense products during the exemption period; however, the retailer's records should clearly identify the type of item sold, the date on which the item was sold, and the sales price of the item.(2) A seller is not required to obtain an exemption certificate on sales of items identified as examples of water-conserving products in subsection (a)(7)(B) of this section; however, the retailer's records should clearly identify the type of item sold, the date on which the item was sold, and the sales price of the item. A seller should obtain an exemption certificate on sales of items that do not clearly meet the definition of a water-conserving product.",
            "sourceNote": "Source Note: The provisions of this §3.369 adopted to be effective September 9, 2010, 35 TexReg 8138; amended to be effective November 20, 2016, 41 TexReg 9018."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=176117&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "176117",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "S",
                "label": "MOTOR FUEL TAX"
            },
            "rule": {
                "number": "§3.430",
                "label": "Records Required, Information Required"
            },
            "nextRule": {
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                "recordId": "164636",
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            "ruleBody": "(a) Records Required.(1) A supplier and permissive supplier, as those terms are defined in Tax Code, §162.001, shall keep the shipping documents that relate to each receipt for distribution of gasoline or diesel fuel and shall keep records that show:(A) the number of gallons of all gasoline or diesel fuel inventories on hand at the first of each month;(B) the number of gallons of all gasoline or diesel fuel refined, compounded, or blended;(C) the number of gallons of all gasoline or diesel fuel purchased or received, showing the name of the seller and the date of each purchase or receipt;(D) the number of gallons of all gasoline or diesel fuel sold, distributed, or used, showing the name of the purchaser and the date of the sale, distribution, or use;(E) the number of gallons of all gasoline or diesel fuel lost by fire, theft, or accident; and(F) an itemized statement showing by load the number of gallons of all gasoline or diesel fuel:(i) received during the preceding calendar month for export and the location of the loading;(ii) exported from this state by destination state or country; and(iii) imported during the preceding calendar month by state or country of origin.(2) A supplier or permissive supplier when acting as a distributor, importer, exporter, blender, aviation fuel dealer, or motor fuel transporter is subject to the record keeping requirements of that license.(3) A distributor of gasoline or diesel fuel, as that term is defined in Tax Code, §162.001, shall keep the shipping documents that relate to each receipt for distribution of gasoline or diesel fuel and shall keep records that show:(A) the number of gallons of all gasoline or diesel fuel inventories on hand at the first of each month;(B) the number of gallons of all gasoline or diesel fuel refined, compounded, or blended;(C) the number of gallons of all gasoline or diesel fuel purchased or received, showing the name of the seller and the date of each purchase or receipt;(D) the number of gallons of all gasoline or diesel fuel sold, distributed, or used, showing the name of the purchaser and the date of the sale, distribution, or use;(E) the number of gallons of all gasoline or diesel fuel lost by fire, theft, or accident;(F) an itemized statement showing by load the number of gallons of all gasoline or diesel fuel:(i) received during the preceding calendar month for export and the location of the loading;(ii) exported from this state by destination state or country; and(iii) imported during the preceding calendar month by state or country of origin; and(G) proof of payment of tax to the destination state in a form acceptable to the comptroller for gasoline or diesel fuel exported from this state under Tax Code, §162.204(a)(4)(A).(4) A distributor, when acting as an importer, exporter, blender, aviation fuel dealer, or motor fuel transporter, is subject to the record keeping requirements of that license.(5) An importer, as that term is defined in Tax Code, §162.001, shall keep the shipping documents that relate to each receipt for distribution of gasoline or diesel fuel and shall keep records that show:(A) the number of gallons of all gasoline or diesel fuel inventories on hand at the first of each month;(B) the number of gallons of all gasoline or diesel fuel refined, compounded, or blended;(C) the number of gallons of all gasoline or diesel fuel purchased or received, showing the name of the seller and the date of each purchase or receipt;(D) the number of gallons of all gasoline or diesel fuel sold, distributed, or used, showing the name of the purchaser and the date of the sale, distribution, or use;(E) the number of gallons of all gasoline or diesel fuel lost by fire, theft, or accident; and(F) an itemized statement showing by load the number of gallons of all gasoline or diesel fuel:(i) received during the preceding calendar month for export and the location of the loading;(ii) exported from this state by destination state or country; and(iii) imported during the preceding calendar month by state or country of origin.(6) An importer, when acting as an exporter or blender, is subject to the record keeping requirements of that license.(7) An exporter, as that term is defined in Tax Code, §162.001, shall keep the shipping documents that relate to each receipt for distribution and shall keep records that show:(A) the number of gallons of all gasoline or diesel fuel inventories on hand at the first of each month;(B) the number of gallons of all gasoline or diesel fuel refined, compounded, or blended;(C) the number of gallons of all gasoline or diesel fuel purchased or received, showing the name of the seller and the date of each purchase or receipt;(D) the number of gallons of all gasoline or diesel fuel sold, distributed, or used, showing the name of the purchaser and the date of the sale or use;(E) the number of gallons of all gasoline or diesel fuel lost by fire, theft, or accident;(F) an itemized statement showing by load the number of gallons of all gasoline or diesel fuel:(i) received during the preceding calendar month for export and the location of the loading; and(ii) exported from this state by destination state or country; and(G) proof of payment of tax to the destination state or proof that the transaction was exempt in the destination state, in a form acceptable to the comptroller if an exemption under Tax Code, §162.104(a)(4)(B) and §162.204(a)(4)(B) is claimed.(8) A blender, as that term is defined in Tax Code, §162.001, shall keep the shipping documents that relate to each receipt for distribution and shall keep records that show the number of gallons of:(A) all gasoline or diesel fuel inventories on hand at the first of each month;(B) all gasoline or diesel fuel refined, compounded, or blended;(C) all blending agents blended with gasoline or diesel fuel;(D) all gasoline or diesel fuel purchased or received, showing the name of the seller and the date of each purchase or receipt;(E) the number of gallons of all gasoline or diesel fuel sold, distributed, or used, showing the name of the purchaser and the date of the sale or use; and(F) the number of gallons of all gasoline or diesel fuel lost by fire, theft, or accident.(9) A terminal operator, as that term is defined in Tax Code, §162.001, shall keep records that show:(A) the number of gallons of all gasoline or diesel fuel inventories on hand at the first of each month, including the name and license number of each owner and the amount of gasoline or diesel fuel held for each owner;(B) the number of gallons of all gasoline or diesel fuel received, showing the name of the seller and the date of each purchase or receipt;(C) the number of gallons of all gasoline or diesel fuel sold, distributed, or used, showing the name of the purchaser and the date of the sale, distribution, or use;(D) the number of gallons of all gasoline or diesel fuel lost by fire, theft, or accident; and(E) the number of gallons on an itemized statement showing by load the number of gallons of all gasoline or diesel fuel:(i) received during the preceding calendar month for export and the location of the loading;(ii) exported from this state by destination state or country; and(iii) imported during the preceding calendar month by state or country of origin.(10) A dealer, as that term is defined in Tax Code, §162.001, shall keep the shipping documents that relate to each receipt for distribution and shall keep records that show the number of gallons of:(A) gasoline or diesel fuel inventories on hand at the first of each month;(B) all gasoline or diesel fuel purchased or received, showing the name of the seller and the date of each purchase or receipt;(C) all gasoline or diesel fuel sold or used, showing the date of the sale or use; and(D) all gasoline or diesel fuel lost by fire, theft, or accident.(11) An interstate trucker, as that term is defined in Tax Code, §162.001, shall keep records on an individual-vehicle basis of:(A) the total miles traveled, evidenced by odometer or hubodometer readings, everywhere by all vehicles traveling to or from this state, and the total miles traveled, evidenced by odometer or hubodometer readings, in this state, including for each individual vehicle:(i) date of each trip (starting and ending);(ii) trip origin and destination;(iii) beginning and ending odometer or hubodometer reading of each trip;(iv) odometer or hubodometer reading entering Texas, and odometer or hubodometer reading leaving Texas; and(v) power unit number or vehicle identification number or license plate number;(B) the total quantity purchased and delivered at retail of gasoline, diesel fuel, compressed natural gas, or liquefied natural gas everywhere by all vehicles traveling to or from this state, and the total quantity of gasoline, diesel fuel, compressed natural gas, or liquefied natural gas purchased and delivered into the fuel supply tanks of motor vehicles in this state, including for each individual vehicle:(i) date of purchase;(ii) name and address of seller;(iii) number of gallons or liters purchased;(iv) type of fuel purchased;(v) price per gallon or liter; and(vi) unit number of the vehicle into which the fuel was placed;(C) in the case of an interstate trucker that uses a distribution log to record removals from the person's own bulk storage into a motor vehicle, the person's stamped or preprinted name and address, and for each individual delivery:(i) date of delivery;(ii) number of gallons or liters of gasoline or diesel fuel delivered;(iii) diesel gallon equivalent or gasoline gallon equivalent of compressed natural gas or liquefied natural gas delivered;(iv) license plate or vehicle identification number or power unit number;(v) odometer or hubodometer reading; and(vi) signature of the user;(D) in the case of an interstate trucker that maintains bulk fuel storage, the number of gallons of gasoline or diesel fuel beginning and ending inventories, all invoices of bulk purchases, and records to substantiate all fuel withdrawals from storage; and(E) in the case of an interstate trucker who delivers compressed natural gas or liquefied natural gas into the fuel supply tank of a motor vehicle, must hold a compressed natural gas and liquefied natural gas dealer license and is subject to the record keeping requirements pursuant to paragraph (17) of this subsection.(12) An aviation fuel dealer, as that term is defined in Tax Code, §162.001, shall keep the shipping document that relates to each receipt for distribution and shall keep records that show:(A) the number of gallons of all gasoline or diesel fuel inventories on hand at the first of each month;(B) the number of gallons of all gasoline or diesel fuel purchased or received, showing the name of the seller and the date of each purchase or receipt;(C) the number of gallons of all gasoline or diesel fuel lost by fire, theft, or accident; and(D) the number of gallons of all gasoline or diesel fuel sold or used in aircraft or aircraft servicing equipment, including for each individual aircraft or aircraft equipment:(i) the name of the purchaser or user of gasoline or diesel fuel;(ii) the date of the sale or use of gasoline or diesel fuel; and(iii) the registration or \"N\" number of the airplane or a description or number of the aircraft or a description or number of the aircraft servicing equipment in which gasoline or diesel fuel is used.(13) An aviation fuel dealer who delivers compressed natural gas or liquefied natural gas must hold a compressed natural gas and liquefied natural gas dealer license and is subject to the record keeping requirements pursuant to paragraph (17) of this subsection.(14) A dyed diesel fuel bonded user, as that term is defined in Tax Code, §162.001, shall keep a record showing the number of gallons of:(A) dyed and undyed diesel fuel inventories on hand at the first of each month;(B) dyed and undyed diesel fuel purchased or received, showing the name of the seller and the date of each purchase or receipt;(C) dyed and undyed diesel fuel delivered into the fuel supply tanks of motor vehicles;(D) dyed and undyed diesel fuel used in off-highway equipment or for other nonhighway purposes and described in Tax Code, §162.229(c); and(E) dyed and undyed diesel fuel lost by fire, theft, or accident.(15) To satisfy the record keeping requirements described in paragraph (14) of this subsection, a dyed diesel fuel bonded user who owns or operates an oil or gas well drilling rig that satisfies the requirements of subparagraph (B) of this paragraph may keep purchase and delivery records and supply tank inventory records that document the amount of dyed diesel fuel used by the drilling rig.(A) The owner, operator, or contractor of the oil or gas well drilling rig may use this method if:(i) one or more stationary engines are component parts of the drilling rig;(ii) each stationary engine is connected directly to a bulk fuel storage tank by way of a fuel supply line; and(iii) the bulk fuel storage tank is locked or otherwise secured so that dyed diesel can only be withdrawn from the bulk fuel storage tank:(I) through the fuel supply lines to the stationary engines;(II) to move the bulk fuel storage tank to another location, or;(III) for emergencies such as a fire or leaking tank.(B) The drilling rig includes engines required to power equipment that is a component part of the oil or gas drilling rig. These component parts are the rotary table, drawworks, shakers, mud pumps, dog house, and derrick lighting, whether referred to with these common industry names or an alternative name for these parts. A drilling rig or component part does not include auxiliary off-highway equipment used at the well site, including, but not limited to, a backhoe, a tractor, a forklift, a front-end loader, a bulldozer, a bobcat, a portable lighting unit, an all-terrain vehicle, or a generator used to power an off-site office, bunkhouse, or a guard shack.(16) A motor fuel transporter, as that term is defined in Tax Code, §162.001, shall keep a complete and separate record of each intrastate and interstate transportation of gasoline or diesel fuel, showing:(A) the date of transportation;(B) the name of the consignor and consignee;(C) the means of transportation;(D) the quantity and kind of gasoline or diesel fuel transported;(E) the points of origin and destination;(F) the import verification number if that number is required by §3.441 of this title (relating to Documentation of Imports and Exports, Import Verification Numbers, Export Sales, and Diversion Numbers); and(G) full data concerning the diversion of shipments, including the number of gallons diverted from interstate to intrastate and intrastate to interstate commerce, and the diversion number if that number is required by §3.441 of this title.(17) A person who holds a compressed natural gas and liquefied natural gas dealer's license, as that term is defined in Tax Code, §162.357, shall keep records that show:(A) all compressed natural gas and liquefied natural gas inventories on hand at the first of each month;(B) the amount of natural gas compressed and liquefied by the dealer;(C) all compressed natural gas and liquefied natural gas purchased or received, showing the name of the seller and the date of each purchase or receipt;(D) the number of taxable diesel gallon equivalents or gasoline gallon equivalents delivered into the fuel supply tank of motor vehicles, showing the date of the delivery;(E) the number of diesel gallon equivalents or gasoline gallon equivalents delivered into the fuel supply tank of motor vehicles or other equipment exempt from tax under Tax Code, §162.356, including:(i) the name of the owner or operator of the motor vehicle;(ii) the type or description of the equipment; and(iii) date of delivery;(F) all compressed natural gas or liquefied natural gas lost by fire, theft, or accident; and(G) in the case of a dealer located on an Indian reservation recognized by the federal government of the United States, the number of diesel gallon equivalents or gasoline gallon equivalents delivered tax-free into the fuel supply tank of motor vehicles operated by an exempt tribal entity or tribal member. The dealer must maintain a copy of the invoice showing:(i) the name of the purchaser;(ii) the date of the sale;(iii) the number of gallons sold;(iv) the type of fuel sold; and(v) a written statement that no state tax was collected or that it was a tax-free sale.(18) A metropolitan rapid transit authority created under Transportation Code, Chapter 451, or a regional transportation authority created under Transportation Code, Chapter 452, that operates a refueling facility accessible only by vehicles used to provide transportation services and that elects to prepay the tax on compressed natural gas and liquefied natural gas used by those transit vehicles shall keep records that show:(A) all compressed natural gas and liquefied natural gas inventories on hand at the first of each month;(B) the amount of natural gas compressed and liquefied by the authority;(C) all compressed natural gas and liquefied natural gas purchased or received, showing the name of the seller and the date of each purchase or receipt;(D) the number of diesel gallon equivalents or gasoline gallon equivalents delivered into the fuel supply tank of vehicles;(E) the number of diesel gallon equivalents or gasoline gallon equivalents delivered into the fuel supply tank of other equipment exempt from tax under Tax Code, §162.356, including:(i) the type or description of the equipment; and(ii) date of delivery; and(F) all compressed natural gas or liquefied natural gas lost by fire, theft, or accident.(19) A metropolitan rapid transit authority created under Transportation Code, Chapter 451, or a regional transportation authority created under Transportation Code, Chapter 452, that delivers compressed natural gas or liquefied natural gas into the fuel supply tank of a non-transit vehicle or a motor vehicle not operated by the metropolitan rapid transit authority or regional transportation authority must hold a compressed natural gas and liquefied natural gas dealer license and is subject to the record keeping requirements of that license.(20) A person who does not hold a license under Tax Code, Chapter 162, who files a claim for refund of gasoline, diesel fuel, compressed natural gas, or liquefied natural gas taxes shall keep the shipping document that relates to each receipt of gasoline, diesel fuel, compressed natural gas, or liquefied natural gas, the original invoice issued by the seller, and the appropriate records described in this section to support gallons of gasoline, diesel fuel, compressed natural gas, or liquefied natural gas removed from the person's own bulk storage, and for each individual delivery:(A) the date of delivery;(B) the number of gallons of gasoline or diesel fuel delivered or the diesel gallon equivalents or gasoline gallon equivalents delivered;(C) the signature of user; and(D) the type or description of off-highway equipment into which the gasoline or diesel fuel was delivered or the type of motor vehicle identified by state highway license plate number, vehicle identification number, or unit number assigned to the motor vehicle and odometer or hubmeter reading.(b) The comptroller may require selective schedules from a supplier, permissive supplier, distributor, importer, exporter, blender, terminal operator, motor fuel transporter, dealer, aviation fuel dealer, dyed diesel fuel bonded user, and interstate trucker for any purchase, sale, or delivery of gasoline or diesel fuel if the schedules are consistent with the requirements of Tax Code, Chapter 162.(c) The records required by this section must be kept for at least four years and must be open to inspection at all times by the comptroller and the attorney general.(d) A person who claims a deduction or exclusion authorized by law must keep records that substantiate the claim. When records regarding the amount and applicability of any deductions or exclusions from the motor fuels tax are insufficient, the comptroller may estimate deductions or exclusions based on any records available or may disallow all deductions and exclusions. No exclusions for loss by fire, accident, or theft will be allowed unless accompanied by fire department, environmental regulatory agency, or police department reports that verify the fire, accident, or theft.(e) Failure to keep adequate records. If any person who is required by this section to keep accurate records of receipts, purchases, sales, distributions, or uses of gasoline or diesel fuel, fails to keep those records, the comptroller may estimate the tax liability based on any information available.(f) The comptroller may suspend any permit or license the comptroller has issued to a person if the person fails to keep the records required by this section.(g) Records may be written, kept on microfilm, stored on data processing equipment, or may be in any form that the comptroller can readily examine.(h) Information required.(1) The comptroller may require any person who must hold a license or registration under Tax Code, Chapter 162, to furnish information that the comptroller needs to:(A) identify any person who applies for a motor fuels license, uses a signed statement to purchase tax-free dyed diesel fuel, or transports motor fuel in Texas by truck, railcar, or vessel, or any person who is required to file a return;(B) determine the amount of bond, if any, required to commence or continue business;(C) determine possible successor liability; and(D) determine the amount of tax the person is required to remit, if any.(2) The information required may include, but is not limited to, the following:(A) name of the actual owner of the business;(B) name of each partner in a partnership;(C) names of officers and directors of corporations and other organizations;(D) all trade names under which the owner operates;(E) mailing address and actual locations of all business outlets;(F) license numbers, title numbers, and other identification of business vehicles;(G) identification numbers assigned by other governmental agencies, including social security numbers, federal employers identification numbers, and driver's license numbers;(H) names of gasoline and diesel fuel suppliers or distributors with whom the person will transact business; and(I) names and last known addresses of former owners of the business.",
            "sourceNote": "Source Note: The provisions of this §3.430 adopted to be effective April 13, 2005, 30 TexReg 2086; amended to be effective June 2, 2015, 40 TexReg 3192; amended to be effective January 27, 2016, 41 TexReg 683."
        },
        {
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            "currentRecordId": "164636",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "S",
                "label": "MOTOR FUEL TAX"
            },
            "rule": {
                "number": "§3.431",
                "label": "Refund of Gasoline and Diesel Fuel Tax to Transit Company"
            },
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            "ruleBody": "(a) Definition. A transit company is a company that:(1) holds a franchise from a political subdivision or is owned or operated by a political subdivision;(2) has rates that are regulated by the political subdivision; and(3) uses vehicles designed for 12 or more passengers to transport persons in the political subdivisions.(b) Transit company affidavit. A qualifying transit company must submit an affidavit to the comptroller stating that it holds a franchise from a political subdivision or is owned or operated by a political subdivision and has rates regulated by the political subdivision. After review and approval of the affidavit the comptroller shall issue to the transit company a letter confirming that they qualify for the refund described in subsection (c) of this section.(c) Refund. A qualifying transit company may seek refund of one cent per gallon of gasoline or one-half of one cent per gallon of diesel fuel, one cent per gasoline gallon equivalent of compressed natural gas or one cent per diesel gallon equivalent of liquefied natural gas used in transit vehicles designed to carry 12 or more passengers. The letter issued by the comptroller to the qualifying transit company must accompany the claim for refund.(d) Time limitation. A claim for refund must be filed no later than one year from the first day of the calendar month that follows the use of the fuel in a transit vehicle.",
            "sourceNote": "Source Note: The provisions of this §3.431 adopted to be effective October 13, 2004, 29 TexReg 9552; amended to be effective November 28, 2013, 38 TexReg 8446."
        },
        {
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            "currentRecordId": "198316",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
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            "subchapter": {
                "number": "S",
                "label": "MOTOR FUEL TAX"
            },
            "rule": {
                "number": "§3.432",
                "label": "Refunds on Gasoline, Diesel Fuel, Compressed Natural Gas, and Liquefied Natural Gas Taxes"
            },
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            "ruleBody": "(a) Refunds and credits. A person may file a claim for refund or a license holder may take a credit on a return for state fuel tax paid on gasoline, diesel fuel, compressed natural gas, or liquefied natural gas used off the highway, for certain resale, for export from Texas, for loss caused by fire, theft, or accident, or other use if authorized by law. The claim for refund or credit must be filed in accordance with this section.(b) Time limitation. A claim for refund or credit must be filed before the expiration of the following time limitations, as provided by Tax Code, §§162.128, 162.230, and 162.369:(1) one year from the first day of the calendar month that follows:(A) purchase;(B) tax exempt sale;(C) use, if withdrawn from one's own storage for one's own use;(D) export from Texas; or(E) loss by fire, theft, or accident; or(2) four years from the due and payable date for a tax return on which an overpayment of state fuel tax was made by a licensed supplier, permissive supplier, distributor, importer, exporter, blender, or compressed natural gas and liquefied natural gas dealer who determines that taxes were erroneously reported or that more taxes were paid than were due because of a mistake of fact or law. The licensed supplier, permissive supplier, distributor, importer, exporter, blender, or compressed natural gas and liquefied natural gas dealer must establish the credit by filing an amended state fuel tax return for the period in which the error occurred and tax payment was made to the comptroller.(c) Filing forms and documentation. A claim for refund or credit must be on a form prescribed by the comptroller and must be submitted within the applicable limitations period provided by subsection (b) of this section. A person or license holder is required to maintain and have available for inspection the following documentation and information to substantiate a claim for refund or credit:(1) an original purchase invoice with the name and address of the seller or name of the purchaser, whichever is applicable. For refund or credit purposes, the original invoice may be a copy of the original impression if the copy has been stamped \"Customer Original Invoice,\" \"Original for Tax Purposes,\" or similar wording. If a copy is so stamped, the original and all other copies must then be stamped \"Not Good for Tax Purposes\" or similar wording. Invoices of original impression submitted in support of refund claims must be without the above wording stamped or imprinted;(2) evidence as to who paid the tax. A purchaser claiming a refund or credit must have an invoice that either separately states the state fuel tax amount paid or a written statement that the price included state fuel tax. A seller claiming a refund or credit must have issued an invoice, signed by the purchaser, that contains a statement that no state fuel tax was collected or that it was a tax-free sale;(3) if refund or credit is claimed on fuel purchased at retail the purchase invoice must note the identification of each vehicle or type of equipment (e.g., including railway engines, motor boats, refrigeration units, stationary engines, off-highway equipment, or nonhighway farm equipment that has traveled between multiple farms or ranches as allowed in §3.440 of this title (relating to On-Highway Travel of Farm Machinery)) in which the fuel was delivered and used; and(4) if refund or credit is claimed on fuel removed from the claimant's own bulk storage, then a distribution log as provided by Tax Code, §162.127 and §162.229. The distribution log must contain the name and address of the user and, for each individual removal from the bulk storage the following information:(A) the date the fuel was removed;(B) the number of gallons removed;(C) the type of fuel removed;(D) the identity of the person removing the fuel; and(E) the type or description of the off-highway equipment into which the fuel was delivered, or the identification of both on-highway and off-highway motor vehicles into which the fuel was delivered, including the state highway license number or vehicle identification number and odometer or hubometer reading, or description of other off-highway use.(d) Refund or credit for state fuel tax on gasoline used solely for off-highway purposes. A claim for refund or credit for state fuel tax on gasoline used solely for off-highway purposes must list each off-highway vehicle or piece of equipment or document other nonhighway use and the total number of gallons used by way of a distribution log as described in subsection (c)(4) of this section.(e) Refund or credit for state fuel tax on gasoline used by a lessor of off-highway equipment. The lessor of off-highway equipment who claims a refund or credit of state fuel tax must maintain documentation that shows that the state fuel tax was assessed and paid, a list of each piece of off-highway equipment, and a distribution log as described in subsection (c)(4) of this section of the number of gallons of gasoline used in both on-highway and off-highway vehicles and equipment. A lessor who claims a refund of state fuel tax may include a separate refueling, fuel reimbursement, or fuel service charge on the invoice, if the invoice contains a statement that the fuel charge does not include state fuel tax.(f) Refund or credit for state fuel tax on gasoline, compressed natural gas, or liquefied natural gas used in a motor vehicle operated exclusively off-highway, except for incidental highway use. A claim for refund or credit may be filed by a person who used gasoline, compressed natural gas, or liquefied natural gas in motor vehicles incidentally on the highway, when the incidental travel on the highway was infrequent, unscheduled, and insignificant to the total operation of the motor vehicle, and only for the purpose of transferring the base of operation or to travel to and from required maintenance and repair.(1) A record that shows the date and miles traveled during each highway trip must be maintained.(2) 1/4 gallon for each mile of incidental highway travel shall be deducted from the number of gallons claimed.(g) Refund or credit for state fuel tax on gasoline used in gasoline-powered motor vehicles equipped with power take-off or auxiliary power units. A person who files a claim for refund or a license holder who takes a credit on a tax return for state fuel tax on gasoline used in the operation of power take-off or auxiliary power units must use one of the following methods in determining the amount of gasoline used:(1) direct measurement method. The use of a metering device, as defined by §3.435 of this title (relating to Metering Devices Used to Claim Refund of Tax on Gasoline Used in Power Take-Off and Auxiliary Power Units) is an acceptable method for determination of fuel usage. A person who claims a refund or credit for state fuel tax on gasoline used to propel motor vehicles with approved measuring or metering devices that measure or meter the fuel used in stationary operations must maintain records on each vehicle so equipped, and the records must reflect:(A) the miles driven as shown by any type of odometer or hubometer;(B) the gallons delivered to each vehicle; and(C) the gallons used as recorded by the meter or other measuring device;(2) fixed 30% method for gasoline-powered ready mix concrete trucks and solid waste refuse trucks. Operators of gasoline-powered ready mix concrete trucks and solid waste refuse trucks that are equipped with power take-off or auxiliary power units that are mounted on the motor vehicle and use the fuel supply tank of the motor vehicle may claim refund on 30% of the total gasoline used in this state by each vehicle. A solid waste refuse truck means a motor vehicle equipped with a power take-off or auxiliary power unit that provides power to compact the refuse, open the back of the container before ejection, and eject the compacted refuse;(3) mileage factor method. The nontaxable use may be determined by computing the taxable use at 1/4 gallon for each mile traveled, as recorded by the odometer or hubometer and subtracting that amount from the total quantity of gasoline delivered into the motor vehicle fuel supply tanks. The remainder will be considered nontaxable, and a tax refund or tax credit may be claimed on that quantity of fuel;(4) two tank method. A motor vehicle may be equipped with two fuel tanks and an automatic switching device that a spring-activated air release parking brake operates, and that switches from one tank that is designated for highway use to another tank that is not so designated when the vehicle is stationary. The highway tank and the not-for-highway tank may not be connected by crossover line or equalizer line of any kind. The state fuel tax paid on the gasoline delivered to the tank designated not-for-highway use may be claimed as a tax refund or taken as a tax credit. All gasoline delivered into the fuel supply tanks of a vehicle that is equipped with an automatic switching device must be invoiced as taxable. Separate invoices must be issued for deliveries of fuel into each tank. A notation that indicates that fuel was delivered into the tank designated not-for-highway use must be made on invoices;(5) fixed 5.0% method. In lieu of the use of one of the previously mentioned methods, the owner or operator of a gasoline-powered motor vehicle that is equipped with a power take-off or auxiliary power unit that is mounted on the vehicle may claim a credit or refund of the state fuel tax paid on 5.0% of the total taxable gasoline used in this state by each vehicle so equipped; or(6) proposed alternate methods. Proposals for the use of methods that this section does not specifically cover to determine the amount of gasoline used in power take-off operations or auxiliary power units may be submitted to the comptroller for approval; and(7) accurate mileage records must be kept regardless of the method used.(h) Refund or credit for state fuel tax on gasoline or diesel fuel sold to or used by an exempt entity.(1) A license holder, other than an aviation fuel dealer, may take a credit on a return for state fuel tax paid on the purchase of gasoline or diesel fuel that is resold tax-free if the purchaser was one of the following entities:(A) the United States or federal government and the purchase is for its exclusive use. The federal government means any department, board, bureau, agency, corporation, or commission that the United States government has created or wholly owns. Exclusive use by the federal government means use of fuel only in motor vehicles or other equipment that the federal government operates. A person operating under a contract with the federal government is not an exempt entity. Evidence that sales were made to the federal government must be maintained and consist of:(i) a United States tax exemption certificate--Standard Form 1094 or similar certificate that includes the same information as the Standard Form 1094;(ii) copies of the invoice(s) when a United States National credit card--Standard Form 149, was used for the purchase, which invoice must include the license plate number or official vehicle designation, if fuel is delivered into the fuel supply tank of a motor vehicle; or(iii) a copy of a contract between the seller and the federal government supporting the sales invoices or purchase vouchers;(B) a Texas public school district and the purchase is for its exclusive use. Exclusive use by a public school district means use of fuel only in motor vehicles or other equipment that the public school district operates;(C) a commercial transportation company with a contract to provide public school transportation services to a Texas public school district under Education Code, §34.008, and the gasoline or diesel fuel is used exclusively to provide those services;(D) a Texas non-profit electric cooperative organized under Utilities Code, Chapter 161, and telephone cooperative organized under Utilities Code, Chapter 162, and the purchase is for its exclusive use. Exclusive use by an electric or telephone cooperative means use of fuel only in motor vehicles or other equipment that the electric or telephone cooperative operates;(E) a Texas volunteer fire department when the purchase is for its exclusive use. A directory of fire departments is available at: https://fireconnect.tfs.tamu.edu/. For purposes of this subparagraph:(i) for sales made before May 24, 2019, a qualifying Texas volunteer fire department is a fire department identified on the Texas A&M Forest Service's website as a volunteer fire department having no paid members; and(ii) for sales made on or after May 24, 2019, a qualifying Texas volunteer fire department is a fire department that is operated by its members on a not-for-profit basis, including a part-paid fire department composed of at least 50% volunteer firefighters, and including a fire department that is exempt from federal income tax under Section 501(a), Internal Revenue Code of 1986, by being listed as an exempt organization in Section 501(c)(3) or (4) of that code; or(F) a nonprofit entity that is organized for the sole purpose of and engages exclusively in providing emergency medical services in Texas, including rescue and ambulance services, when the purchase is for its exclusive use.(2) An exempt entity enumerated in paragraph (1)(A) - (F) of this subsection may claim a refund of state fuel tax paid on gasoline, diesel fuel, compressed natural gas, or liquefied natural gas purchased for its exclusive use.(3) A refund may be requested for state fuels tax on compressed natural gas or liquefied natural gas used in a motor vehicle operated exclusively by:(A) a Texas county or a Texas municipality; or(B) a transit company, including a metropolitan rapid transit authority under Transportation Code, Chapter 451, or a regional transportation authority under Transportation Code, Chapter 452, that provides transportation services and who on January 1, 2015, held a prepaid liquefied gas decal as that section existed on that date.(i) Refund or credit for state fuel tax on gasoline or diesel fuel exported from Texas or sold for export.(1) A person may claim a refund or a licensed supplier, permissive supplier, distributor, importer, exporter, or blender may take a credit on a return for state fuel tax paid on gasoline or diesel fuel that the person or the license holder exports from this state in quantities of 100 or more gallons. Proof of export must be one of the following:(A) proof of export that United States Customs officials have certified, if the fuel was exported to a foreign country;(B) proof of export that a port of entry official of the state of importation has certified, if the state of importation maintains ports of entry;(C) proof from the taxing officials of the state into which the fuel was imported that shows that the exporter has accounted for the fuel on that state's tax returns;(D) other proof that the fuel has been reported to the state into which the gasoline or diesel fuel was imported; or(E) a common or contract carrier's transporting documents (see §3.439 of this title (relating to Motor Fuel Transportation Documents)) that list the consignor and consignee, the points of origin and destination, the number of gallons shipped or transported, the date of export, and the kind of fuel exported.(2) A licensed supplier, permissive supplier or distributor may take a credit on a return for state fuel tax paid on gasoline or diesel fuel resold tax-free to a licensed supplier, permissive supplier, distributor, importer, or exporter for immediate export from this state under the following circumstances:(A) a shipping document or bill of lading issued by the seller that shows the destination state;(B) the purchaser (exporter) is licensed in Texas as a supplier, permissive supplier, distributor, importer, or exporter; and(C) the purchaser is licensed in the destination state to pay that state's tax; or(D) if the destination is a foreign country, a shipping document or bill of lading issued by the seller that shows the foreign destination.(3) A licensed supplier must collect either the destination state's tax or Texas tax from the purchaser on gasoline or diesel fuel exported to another state.(j) Refund or credit for state fuel tax on gasoline or diesel fuel loss by fire, theft, or accident. A person may claim a refund or a license holder may take a credit on a return for state fuel tax paid on 100 or more gallons of gasoline or diesel fuel loss by fire, theft, or accident. The claimant must maintain records of the incident that establishes that the exact quantity of fuel that has been claimed as lost was actually lost, and that the loss resulted from that incident. The time limitation prescribed in subsection (b)(1) of this section is determined by the date of the first incident of a multiple incident loss that totals 100 gallons or more. A claim for refund for loss by fire, theft, or accident shall be accompanied by fire department, police department, or regulatory agency reports as appropriate.(1) If the incident is a drive-away theft at a retail outlet (i.e., theft occurs when a person delivers gasoline or diesel fuel into the fuel supply tank(s) of a motor vehicle at a retail outlet without payment for the fuel), the following documentation shall be maintained:(A) a police department report or evidence that the incident of drive-away theft has been or will be taken as a deduction on the federal income tax return during the same or the subsequent reporting period; and(B) a separate report for each incident that the employee(s) who witnessed the event prepared and signed. The report must include the date and time of occurrence, type of fuel, number of gallons, outlet location, and, if the theft is reported to a police department, the police case number.(2) If the accidental loss was incurred through a leak in a line or storage tank, the minimum proof required is:(A) a statement by the person who actually dug up or otherwise examined the hole or leak. Such statement should articulate the extent of the leak, the date of the examination, and the person's name and title; and(B) a statement of the actual loss as determined by computing the measured inventory immediately preceding the discovery of the accidental leak, plus motor fuel salvaged from the leaky tank or line, if any, less intervening withdrawals for sale or use.(3) A person claiming a refund or credit under this subsection must take inventory on the first of each month and promptly correct the inventory for any loss that has occurred in the preceding month. If inventories have not been accurately or timely measured, or if complete records have not been kept of all withdrawals for sale or use as required by law, a claim for refund or credit cannot be honored for payment.(k) Refund or credit for state fuel tax on gasoline or diesel moved between terminals. A licensed supplier or permissive supplier may take a credit on a return for state fuel tax paid on gasoline or diesel fuel removed from an IRS registered terminal that is transferred by truck or railcar to another IRS registered terminal.(l) Refund or credit for state fuel tax on gasoline or diesel fuel sold to or purchased by a licensed aviation fuel dealer.(1) A licensed supplier, permissive supplier, or distributor may take a credit on a return for state fuel tax paid on gasoline or diesel fuel sold to a licensed aviation fuel dealer for delivery solely into the fuel supply tanks of aircraft, aircraft servicing equipment, or into a bulk storage tank of a licensed aviation fuel dealer.(2) A licensed aviation fuel dealer may claim refund for state fuel tax paid on gasoline or diesel fuel delivered into the fuel supply tanks of aircraft, aircraft servicing equipment, or into a bulk storage tank of another licensed aviation fuel dealer.(m) Refund or credit for state fuel tax on gasoline, diesel fuel, compressed natural gas, or liquefied natural gas used outside of Texas by a licensed interstate trucker. A licensed interstate trucker may take a credit on a tax return for state fuel tax paid on gasoline, diesel fuel, compressed natural gas, or liquefied natural gas purchased in Texas and used outside of Texas in commercial vehicles operated under an interstate trucker license. The credit may be taken on the return for the period in which the purchase occurred. If the credit exceeds the amount of tax reported due on that return, the licensed interstate trucker:(1) may carry forward the excess credit on any of the three successive quarterly returns until exhausted, or until the due date of the third successive quarterly return, whichever occurs first;(2) may seek refund of the excess credit by filing a claim for refund on or before the due date of the third successive quarterly return; or(3) if returns are filed on an annual basis an interstate trucker may seek refund or credit no later than the due date of the annual return; and(4) any remaining credit not taken on a return or claimed as a refund before the prescribed deadline expires.(n) Refund for state fuel tax on gasoline or diesel fuel sold on Indian reservations. A retailer located on an Indian reservation recognized by the United States government may claim refund of state fuel tax paid on gasoline or diesel fuel resold tax-free to exempt tribal entities and tribal members. The retail dealer must maintain records that include the original purchase invoices that show that the state fuel tax was paid and sales invoices that include:(1) the name of the purchaser;(2) the date of the sale;(3) the number of gallons sold;(4) the type of fuel sold; and(5) a written statement that no state fuel tax was collected or that it was a tax-free sale.(o) Refund of state fuel tax on compressed natural gas or liquefied natural gas sold on Indian reservations. Tribal entities and tribal members may claim a refund of state fuel tax paid on compressed natural gas or liquefied natural gas purchased from a compressed natural gas and liquefied natural gas dealer located on an Indian reservation recognized by the United States government. The refund claim must be supported with original purchase invoices that show the state fuel tax was paid and that include:(1) the name and address of the seller;(2) the name of the purchaser;(3) the date of the sale;(4) the number of diesel gallon equivalents or gasoline gallon equivalents purchased;(5) the type of fuel purchased; and(6) the rate and amount of tax, separately stated from the selling price.(p) Refund or credit for state fuel tax paid on diesel fuel used in moveable specialized equipment operated exclusively in oil field well servicing.(1) A person may claim a refund or a license holder may take a credit on a return for state fuel tax paid on diesel fuel consumed by moveable specialized equipment used exclusively in oil field well servicing equipment if the person or license holder has received or is eligible to receive a federal diesel fuel tax refund under Internal Revenue Code, Title 26, and the moveable specialized equipment meets the following specific design-base and use-base tests.(A) Design-base test.(i) The chassis has permanently mounted to it (by welding, bolting, riveting, or other means) machinery or equipment to perform oil well servicing operations if the operation of the machinery or equipment is unrelated to transportation on or off the highways;(ii) the chassis has been specially designed to serve only as a mobile carriage and mount (and power source, if applicable) for the machinery or equipment, whether or not the machinery or equipment is in operation; and(iii) the chassis could not, because of its special design, be used as part of a vehicle designed to carry any other load without substantial structural modification. A chassis that can be used for a variety of uses and body types (such as a dump truck, flat bed, or box truck) is a highway chassis and would not qualify as a specially designed chassis.(B) Use-base test. The use-based test is satisfied if the vehicle travels less than 7,500 miles on highways during a calendar year.(2) Documentation requirements. In addition to the documentation requirements in Tax Code, §162.229, the person or license holder must maintain:(A) a mileage or trip log for each moveable specialized equipment on an individual-vehicle basis consisting of:(i) total miles traveled, evidenced by odometer or hubometer readings;(ii) date of each trip on the public highways of this state and out of this state (starting and ending);(iii) beginning and ending odometer or hubometer readings of each trip on the public highway;(iv) odometer or hubometer readings entering Texas, and odometer or hubometer readings leaving Texas;(v) power unit number or vehicle identification number or license plate number; or(vi) vehicles that are not licensed under the International Fuel Tax Agreement may use the Texas Department of Transportation Quarterly Hubometer Permit report in lieu of the records required in clauses (i) - (v) of this subparagraph to document incidental highway travel.(B) Internal Revenue Service form 4136, if refund of federal excise tax claimed;(C) verification that limited sales tax was paid on the movable specialized equipment, if purchased in Texas; and(D) verification that an oversize/overweight permit is used to travel on the highways of this state.(3) Computation of refund. One-fourth of one gallon for each mile of incidental highway travel shall be deducted from the number of gallons claimed.(4) Moveable specialized equipment licensed under the International Fuel Tax Agreement (IFTA). An IFTA licensee may only request a refund for state fuel tax paid on diesel fuel used in moveable specialized equipment licensed under the IFTA directly from the comptroller and separately from the IFTA tax return. A refund claim must be supported with purchase invoice(s) and trip or mileage logs described in paragraph (2) of this subsection.(5) Recovery of refund. If a refund has been issued for movable specialized equipment for a partial calendar year, and it is determined that the movable specialized equipment traveled 7,500 miles or more on the highways in that calendar year then the taxes previously refunded for that vehicle must be repaid to the comptroller.(q) Refund of state fuel tax paid on diesel fuel used in a medium to remove drill cuttings from a well bore in the production of oil or gas. A refund must be supported with purchase invoice(s) and distribution log described in Tax Code, §162.229.(r) Refund of state fuel tax paid on diesel fuel used as a feedstock in manufacturing. A person may claim a refund or a license holder may take a credit on a return for state fuel tax paid on diesel fuel used as a feedstock in the manufacturing of tangible personal property for resale, but not as a motor fuel. A refund claim must be supported with purchase invoice(s), records showing the amount of diesel fuel used as feedstock and a description of the tangible personal property manufactured.(s) The right to receive a refund or take a credit under this section is not assignable.",
            "sourceNote": "Source Note: The provisions of this §3.432 adopted to be effective April 13, 2005, 30 TexReg 2089; amended to be effective December 4, 2007, 32 TexReg 8849; amended to be effective November 16, 2009, 34 TexReg 8039; amended to be effective November 19, 2014, 39 TexReg 9047; amended to be effective April 11, 2016, 41 TexReg 2600; amended to be effective February 11, 2020, 45 TexReg 918."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=164637&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "164637",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "S",
                "label": "MOTOR FUEL TAX"
            },
            "rule": {
                "number": "§3.433",
                "label": "Incidental Highway Travel"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=117236&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "117236",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definition. \"Incidental travel\" on the public highway means those infrequent and unscheduled trips that are insignificant to the total operation of the motor vehicle, and only for the purpose of transferring the base of operation or to travel to and from required maintenance and repairs.(b) Requirements of dyed diesel fuel bonded user. Licensed dyed diesel fuel bonded users are required to remit the tax due on dyed diesel fuel used for incidental travel of motor vehicles at a rate of 1/4 gallon per mile traveled on the public highway.(c) Requirements of person claiming refund. A person who operates a motor vehicle exclusively off the public highways except for incidental travel may claim a refund provided by §3.432 of this title (relating to Refunds On Gasoline, Diesel Fuel, Compressed Natural Gas, and Liquefied Natural Gas Taxes), but not for that portion of fuel used in motor vehicles for incidental travel. Tax is due on gasoline, diesel fuel, compressed natural gas, and liquefied natural gas used for incidental travel of motor vehicles at a rate of 1/4 gallon per mile traveled on the public highway.(d) Records. Dyed diesel fuel bonded users and persons requesting refund shall maintain a record showing the date and miles traveled on each on-highway trip in addition to the other records required by §3.430 of this title (relating to Records Required, Information Required).",
            "sourceNote": "Source Note: The provisions of this §3.433 adopted to be effective October 13, 2004, 29 TexReg 9552; amended to be effective November 28, 2013, 38 TexReg 8447."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=117236&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "117236",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "S",
                "label": "MOTOR FUEL TAX"
            },
            "rule": {
                "number": "§3.435",
                "label": "Metering Devices Used to Claim Refund of Tax on Gasoline Used In Power Take-Off and Auxiliary Power Units (Tax Code, §162.125)"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=163851&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "163851",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) This rule applies only to motor fuel transactions that take place on or after January 1, 2004. Motor fuel transactions that occur prior to January 1, 2004, will be governed by sections in Texas Administrative Code, Title 34, Part 1, Chapter 3, Subchapter L. The words and terms used in this section have the same meaning as those defined in Tax Code, Chapter 162.(b) Metering devices. A metering device that complies with the specifications set out in subsection (c) of this section may be used as a basis for determining the quantity of gasoline consumed in the operation of an auxiliary power unit or power take-off equipment mounted on a motor vehicle.(c) Design specifications. The meters shall be designed to separately measure the fuel used by the motor vehicle from the fuel used to operate the power take-off or the auxiliary power unit.(1) The metering device, or a model thereof, must be tested for accuracy and proper performance by the Texas Engineering Experiment Station, Texas A&M University, or other testing agency approved by the comptroller. The test must clearly establish that the metering device operates within the acceptance tolerances for allowable error or departure from true performance set forth in the National Bureau of Standards, U.S. Department of Commerce Handbook 44, latest edition for slow-flow meters;(2) The metering device must be designed so that the gasoline will flow through and be recorded by the metering device only when the motor vehicle's spring-loaded air-parking brake or other approved air-parking brake, or hydraulic parking brake is engaged, or when any hydraulic power take-off unit that can be operated only when the motor vehicle is stationary and the hydraulic power take-off unit is engaged. The device must be designed so that gasoline will at all times flow through a by-pass line when the air brakes, hydraulic brakes, or hydraulic power take-off units described above are disengaged, or when the motor vehicle is not stationary.(3) The metering device installed on the motor vehicle must be maintained in a manner in which the device will operate at all times within the maintenance tolerances set forth in Handbook 44 for slow-flow meters.(d) Disallowance of tax credit or refunds. It is expressly provided that tax credits or tax refunds may be disallowed for tax paid on gasoline that was measured and recorded by any metering device that is not maintained as required by subsection (c) of this section or when the owner or operator fails to keep the following records for at least four years:(1) a complete record of the total miles traveled by each motor vehicle equipped with such metering device as shown by the speedometer, odometer, or hubmeter readings accurately maintained;(2) the total gallons of gasoline delivered into the fuel supply tank of each vehicle equipped with such metering device as shown on purchase invoices or a distribution log; and(3) each claim for tax credit or tax refund shall be supported by such mileage and fuel consumption records and a record of the beginning and ending meter readings recorded on such metering device for each refund period.",
            "sourceNote": "Source Note: The provisions of this §3.435 adopted to be effective October 13, 2004, 29 TexReg 9552."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=163851&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "163851",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "S",
                "label": "MOTOR FUEL TAX"
            },
            "rule": {
                "number": "§3.437",
                "label": "Trip Permit in Lieu of Interstate Trucker License"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=164771&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "164771",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Who may qualify. A person entering Texas for commercial purposes with a motor vehicle that has two axles and a registered gross weight in excess of 26,000 pounds; or has three or more axles, or is used in combination and the registered gross weight of the combination exceeds 26,000 pounds, may purchase a temporary trip permit in lieu of the required interstate trucker license or registration under a multistate tax agreement (International Fuel Tax Agreement) if no more than five entries into the state are made during a calendar year.(b) Conditions.(1) A trip permit must be obtained before or at the time of entry into Texas.(2) The trip permit is valid for 20 days from date of purchase.(3) The trip permit may be used for only one entry into the state.(c) Procedures.(1) A fee of $50 for the trip permit shall be paid to the Texas comptroller.(2) The fee may be paid in the form of a cashier's check or a money order delivered by mail or wire service to the Texas comptroller's office, Austin.(3) The receipt from the cashier's check or money order shall be marked \"trip permit\" and, identify the motor vehicle by license plate number or the manufacture's vehicle identification number.(4) The receipt must be carried in the vehicle for which the tax payment is made.(d) Limitations. Persons who make more than five entries in a calendar year must obtain an interstate trucker license or register under a multistate tax agreement (International Fuel Tax Agreement).",
            "sourceNote": "Source Note: The provisions of this §3.437 adopted to be effective September 2, 2004, 29 TexReg 8373; amended to be effective October 1, 2013, 38 TexReg 6601."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=164771&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "164771",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "S",
                "label": "MOTOR FUEL TAX"
            },
            "rule": {
                "number": "§3.438",
                "label": "Signed Statements for Purchasing Dyed Diesel Fuel Tax Free"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=164772&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "164772",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) End User Number. A person who wants to use a signed statement to purchase dyed diesel fuel tax free for use in nonhighway equipment must apply to the comptroller for an End User Number. The comptroller will issue to a qualified applicant an End User Number with a prefix of DD (for non-agriculture off-highway equipment) or AG (for agriculture off-highway equipment) depending on the manner in which the applicant will use the dyed diesel fuel. A person cannot use a signed statement to purchase tax-free dyed diesel fuel unless the person holds an End User Number issued by the comptroller. (b) Signed Statement. A person with a valid End User Number may purchase dyed diesel fuel tax free for nonhighway use by providing the seller with a signed statement. The signed statement must be substantially in the form provided by the comptroller and is subject to the limitations that are stated in paragraphs (2), (3) and (4) of this subsection. Copies of the blank signed statements may be obtained from the Comptroller of Public Accounts, P.O. Box 13528, Austin, Texas 78711-3528 or requested by calling (512) 463-4600, or our toll-free number 1-800-252-1383. Taxpayers may download copies at www.window.state.tx.us. (1) The signed statement must include the purchaser's End User Number, must be signed by the buyer or the buyer's authorized representative, and must specify that: (A) only dyed diesel fuel will be purchased using the signed statement; (B) all dyed diesel fuel will be used by the buyer and will not be resold; and (C) none of the dyed diesel fuel will be delivered into the fuel supply tanks of motor vehicles operated on public highways.  (2) A person issued an End User Number beginning with DD may buy, and a licensed diesel fuel supplier, permissive supplier, or distributor may sell, dyed diesel fuel tax free using a signed statement for not more than 10,000 gallons of dyed diesel fuel during a calendar month regardless of whether the dyed diesel fuel is purchased in a single transaction during that month or in multiple transactions during that month. The purchase, sale, or delivery that causes the 10,000 gallon limit to be exceeded during a month is not taxable. Any subsequent purchase, sale, or delivery made during the same month is taxable. (3) A person who has been issued an end user number beginning with DD and who uses the dyed diesel fuel exclusively in the original production of oil and gas, or to increase the production of oil and gas, must obtain a letter of exception authorizing the person to exceed the 10,000 gallon limit. Examples of uses that may occur in the original production or to increase production of oil and gas include the use of dyed diesel fuel to drill, fracture, perforate, squeeze cement, acidize, log, plug back, complete, plug and abandon, install a casing liner, pull or reset a casing liner, swab, drill out a plug, jet, pack gravel or workover, and perform a hot oil treatment on a formation. Oil and gas production does not include maintaining the site, mowing, painting, gauging tanks, changing pumps, performing rod or tubing jobs, fishing for rods or tubing, repairing a tubing leak, changing a packer or anchor, performing hot oil or water treatment on casing, tubing or flow lines, and transporting. A person who uses dyed diesel fuel exclusively in the original production of oil and gas or to increase the production of oil and gas, may buy, and a licensed diesel fuel supplier, permissive supplier, or distributor may sell, dyed diesel fuel tax free by using a letter of exception and a signed statement for not more than 25,000 gallons of dyed diesel fuel during a calendar month regardless of whether the dyed diesel fuel is purchased in a single transaction during that month or in multiple transactions during that month. The purchase, sale, or delivery that causes the 25,000 gallon limit to be exceeded during a calendar month is not taxable. Any subsequent purchase, sale, or delivery made during the same calendar month is taxable. (4) A person who has been issued an end user number beginning with AG and who uses dyed diesel fuel exclusively for an agricultural purpose as described in Tax Code, §162.001, may buy, and a diesel fuel licensed supplier, permissive supplier, or distributor may sell, dyed diesel fuel tax free using a signed statement for not more than 25,000 gallons of dyed diesel fuel during a calendar month regardless of whether the dyed diesel fuel is purchased in a single transaction during that month or in multiple transactions during that month. The purchase, sale, or delivery that causes the 25,000 gallon limit to be exceeded during a calendar month is not taxable. Any subsequent purchase, sale, or delivery made during the same calendar month is taxable. Attached Graphic(c) A person who exceeds the limitations in subsection (b) of this section shall be required to obtain a dyed diesel fuel bonded user license. (d) A separate operating division of a corporation may apply for and receive an End User Number to buy dyed diesel fuel tax free using a signed statement if the division: (1) does not resell the fuel; (2) consumes the fuel; and (3) maintains separate storage apart from other corporate divisions. (e) The signed statement remains in effect until: (1) it is revoked in writing by either the buyer or seller; (2) it is revoked by the comptroller upon receipt of an electronic notification of a final judgment issued on or after September 1, 2013, for failure to pay an amount owed to a licensed supplier or distributor for the purchase of dyed diesel fuel and the comptroller notifies the supplier or distributor in writing or by means of electronic transmission that the buyer may no longer make tax-free purchases. The comptroller may reinstate the end user number upon receipt of an electronic notification that the judgment, including all costs and other amounts awarded in the judgment, has been satisfied; or (3) the comptroller notifies the supplier or distributor in writing or by means of electronic transmission that the buyer may no longer make tax-free purchases.",
            "sourceNote": "Source Note: The provisions of this §3.438 adopted to be effective September 2, 2004, 29 TexReg 8374; amended to be effective May 18, 2008, 33 TexReg 3774; amended to be effective January 3, 2010, 34 TexReg 9463; amended to be effective December 2, 2013, 38 TexReg 8669."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=164772&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "164772",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "S",
                "label": "MOTOR FUEL TAX"
            },
            "rule": {
                "number": "§3.439",
                "label": "Motor Fuel Transportation Documents"
            },
            "nextRule": {
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                "recordId": "163852",
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            "ruleBody": "(a) Manifest required.(1) A terminal operator or an operator of a bulk plant must give a shipping document or cargo manifest to the person who operates the barge, vessel, railroad tank car, or transport vehicle into which motor fuel is loaded at the terminal rack or bulk plant rack. The terminal operator or operator of the bulk plant must keep copies of shipping documents for at least four years.(2) A motor fuel transporter must carry the shipping document or cargo manifest in the transport vehicle for which the document was issued when transporting the fuel described in the document. The motor fuel transporter must keep copies of shipping documents for at least four years.(b) Information required. The cargo manifest or shipping document shall be issued in sufficient quantities to provide coverage for the record keeping requirements of all parties involved in the transaction and shall contain the following information:(1) the name and physical address or terminal code number assigned by the United States Internal Revenue Service of the terminal or the name and physical address of the bulk plant at which the cargo was loaded;(2) the date of loading or movement;(3) the type of motor fuel that is cargo, and if the fuel is dyed diesel fuel, a notice that states \"Dyed Diesel Fuel, Nontaxable Use Only, Penalty for Taxable Use\";(4) the number of gallons:(A) in net temperature-adjusted gallons when loaded from a terminal; or(B) in gross gallons if loaded from a bulk plant;(5) the percentage of ethanol or methanol contained in the motor fuel;(6) the types and percentages of cosolvents contained in the motor fuel, if methanol has been added;(7) the percentage of water, fuel ethanol, renewable diesel, or biodiesel blended with petroleum diesel fuel, except as provided by Tax Code, §162.204(g);(8) the destination of the cargo;(9) the name of the seller, consignor, or shipper;(10) the name, federal employer identification number, license, or permit number if applicable, and physical address of the purchaser or consignee. If the federal identification number, license, or permit number, and physical address of the purchaser or consignee are not printed on the cargo manifest or shipping document, then that information must be in the records of the terminal or bulk plant operator and made available for review when requested;(11) the name and the federal employer identification number or social security number of the carrier. If the federal identification number or social security number of the carrier is not printed on the cargo manifest or shipping document, then that information must be in the records of the terminal or bulk plant operator and made available for review when requested;(12) the method of transportation:(A) if by truck, the license or unit number;(B) if by barge or boat, the name of the vessel; or(C) if by railway, the rail car number and initial;(13) the name of the person responsible for payment of the tax as given to the terminal operator if different from the licensed supplier, permissive supplier, distributor, or importer. If this information is not printed on the cargo manifest or shipping document, it must be in the records of the terminal operator and made available for review when requested;(14) the amount of delivery fee assessed under Water Code, §26.3574;(15) import verification number or diversion number when required under §3.441 of this title (relating to Documentation of Imports and Exports, Import Verification Numbers, Export Sales, and Diversion Numbers). The importer is responsible for writing the import verification number on the cargo manifest and the importer, exporter, or common/contract carrier is responsible for writing the diversion number on the manifest; and(16) any other information the comptroller deems necessary for the proper administration of Tax Code, Chapter 162.(c) Waybills or bills of lading. If a carrier transports motor fuel for which a waybill is required under the regulations of the Texas Railroad Commission, or a bill of lading is required under the regulations of the United States Department of Transportation, or if similar documentation is required by another regulatory agency, these documents may be used in lieu of the cargo manifest or shipping document prescribed in this section, so long as the waybill, bill of lading, or similar document lists the information described in subsection (b) of this section.(d) Delivery of cargo manifest or shipping document. One copy of the shipping document or cargo manifest shall be delivered to the purchaser when the fuel is delivered, and the seller shall retain one copy. If a motor fuel transporter delivers the fuel, the motor fuel transporter must also retain one copy. Copies of shipping documents must be retained by the seller, transporter, and receiver for at least four years from the date of delivery.(1) If the motor fuel transporter receives cargo at different locations, a notation of the fuel loaded at each location must be made on the cargo manifest by the motor fuel transporter or a separate cargo manifest that covers the fuel or blend material loaded at each location must be issued by the terminal operator or the operator of the bulk plant or the seller of the blend material.(2) If the motor fuel transporter off-loads cargo at various locations, then the motor fuel transporter must note the fuel off-loaded on the required cargo manifest, or a customer invoice indicating the location and amount of motor fuel that has been off-loaded at each location. If separate invoices are used, then the invoices must be attached to or cross referenced to the cargo manifest for record purposes. The cargo manifest or a copy of the customer invoice shall be retained with the transporting vehicle until the motor fuel is removed from the cargo tank.(3) A cargo manifest is not required if an end user transports motor fuel in the user's own cargo tank, and the fuel is for the end user's use and not for resale.(4) If the delivery fee assessed under Water Code, §26.3574, is not shown on the cargo manifest, it must be shown on the invoice that covers the delivery, and be cross referenced to the cargo manifest or shipping document for record purposes.",
            "sourceNote": "Source Note: The provisions of this §3.439 adopted to be effective October 13, 2004, 29 TexReg 9553; amended to be effective January 3, 2010, 34 TexReg 9464; amended to be effective December 2, 2013, 38 TexReg 8669."
        },
        {
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            "currentRecordId": "163852",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "S",
                "label": "MOTOR FUEL TAX"
            },
            "rule": {
                "number": "§3.440",
                "label": "On-Highway Travel of Farm Machinery"
            },
            "nextRule": {
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                "recordId": "198774",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Owners or operators of multiple farms, ranches, or similar tracts of land in the same vicinity may move farm tractors, combines, and similar self-propelled farm machinery over the public highways for the purpose of transferring the base of operation of the machinery.(b) Gasoline and diesel fuel used for travel on the highway for any purpose other than for moving the machinery from one tract of land to another to change base of operation shall be considered taxable.",
            "sourceNote": "Source Note: The provisions of this §3.440 adopted to be effective October 13, 2004, 29 TexReg 9554; amended to be effective October 1, 2013, 38 TexReg 6601."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198774&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "198774",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "S",
                "label": "MOTOR FUEL TAX"
            },
            "rule": {
                "number": "§3.441",
                "label": "Documentation of Imports and Exports, Import Verification Numbers, Export Sales, and Diversion Numbers"
            },
            "nextRule": {
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                "recordId": "166071",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Bulk plant--A motor fuel storage and distribution facility that:(A) is not an Internal Revenue Service-approved (IRS-approved) terminal; and(B) from which motor fuel may be removed at a rack.(2) Bulk transfer/terminal system--The motor fuel distribution system consisting of refineries, pipelines, marine vessels, motor fuel storage facilities, and IRS-approved terminals.(A) Motor fuel is in the bulk transfer/terminal system if the motor fuel is in a refinery, a pipeline, a motor fuel storage facility, a terminal, or a marine vessel transporting motor fuel owned by a licensed supplier or permissive supplier.(B) Motor fuel is not in the bulk transfer/terminal system if the motor fuel is in:(i) a bulk plant that is not part of a refinery or terminal;(ii) the motor fuel supply tank of an engine or a motor vehicle; or(iii) a tank car, railcar, trailer, truck, or other equipment suitable for ground transportation.(3) Diesel fuel--Kerosene or another liquid, or a combination of liquids blended together, offered for sale, sold, used, or capable of use as fuel for the propulsion of a diesel-powered engine.(A) The term includes products commonly referred to as kerosene, light cycle oil, #1 diesel fuel, #2 diesel fuel, dyed or undyed diesel fuel, aviation jet fuel, renewable diesel, biodiesel, distillate fuel, cutter stock, or heating oil.(B) The term does not include compressed natural gas, liquefied natural gas, gasoline, aviation gasoline, or liquefied gas.(4) Distributor--A person who makes sales of motor fuel at wholesale. A distributor's activities may also include sales of motor fuel at retail.(5) Diversion number--The number assigned by the comptroller, or by a person to whom the comptroller delegates or appoints the authority to assign the number, that relates to a single cargo tank delivery of motor fuel that is diverted from the original destination state printed on the shipping document.(6) Export--To obtain motor fuel in this state for sale or use in another state, territory, or foreign country.(7) Exporter--A person who exports motor fuel from this state. The seller is the exporter of motor fuel delivered out of this state by or for the seller, and the purchaser is the exporter of motor fuel delivered out of this state by or for the purchaser.(8) Gasoline--Any liquid or combination of liquids blended together, offered for sale, sold, used, or capable of use as fuel for a gasoline-powered engine.(A) The term includes gasohol, aviation gasoline, and blending agents.(B) The term does not include compressed natural gas, liquefied natural gas, racing gasoline, diesel fuel, aviation jet fuel, or liquefied gas.(9) Import--To bring motor fuel into this state by motor vehicle, marine vessel, pipeline, or any other means. The term does not include bringing motor fuel into this state in the motor fuel supply tank of a motor vehicle if the motor is used to power that motor vehicle.(10) Import verification number--The number assigned by the comptroller, or by a person to whom the comptroller delegates or appoints the authority to assign the number, that relates to a single cargo tank delivery into this state from another state after a request for an assigned number by an importer or by the motor fuel transporter carrying taxable motor fuel into this state for the account of an importer.(11) Importer--A person that imports motor fuel into this state. The seller is the importer for motor fuel delivered into this state from outside of this state by or for the seller, and the purchaser is the importer for motor fuel delivered into this state from outside of this state by or for the purchaser.(12) Marine vessel--Includes a marine barge.(13) Motor fuel--Gasoline, diesel fuel, gasoline blended fuel, compressed natural gas, liquefied natural gas, and other products that are offered for sale, sold, used, or capable of use as fuel for a gasoline-powered engine or a diesel-powered engine.(14) Motor fuel storage facility-- A storage facility supplied by pipeline or marine vessel that does not have a rack for removal of motor fuel by truck, railcar, or any other means of conveyance that is outside the bulk transfer/terminal system.(15) Permissive supplier--A person who elects, but is not required, to have a supplier's license and who is registered under Internal Revenue Code, §4101, for transactions in motor fuel in the bulk transfer/terminal system and is a position holder in motor fuel located only in another state or a person who receives motor fuel only in another state under a two-party exchange.(16) Position holder--The person who holds the inventory position in motor fuel in a terminal, as reflected on the records of the terminal operator. A person holds the inventory position in motor fuel when that person has a contract with the terminal operator for the use of storage facilities and terminaling services for motor fuel at the terminal. The term includes a terminal operator who owns motor fuel in the terminal.(17) Rack--A mechanism for delivering motor fuel from a refinery, terminal, marine vessel, or bulk plant into a transport vehicle, railroad tank car, or other means of transfer that is outside the bulk transfer/terminal system.(18) Sale--A transfer of title, exchange, or barter of motor fuel, other than the transfer of possession of motor fuel on consignment.(19) Shipping document--A delivery document issued in conjunction with the sale, transfer, or transport of motor fuel. A shipping document issued by a terminal operator shall be machine printed. All other shipping documents shall be typed or handwritten on a preprinted form or machine printed.(20) Supplier--A person subject to the general taxing jurisdiction of this state who:(A) is registered under Internal Revenue Code, §4101, for transactions in motor fuel in the bulk transfer/terminal system; and(i) is a position holder in motor fuel in a terminal or refinery in this state and may concurrently be a position holder in motor fuel in another state;(ii) owns motor fuel in a marine vessel in this state; or(iii) receives motor fuel in this state under a two-party exchange; and(B) may also be a terminal operator, provided that a terminal operator is not considered to also be a \"supplier\" based solely on the fact that the terminal operator handles motor fuel consigned to it within a terminal.(21) Terminal--An IRS-approved motor fuel storage and distribution facility to which a terminal control number has been assigned, to which motor fuel is supplied by pipeline or marine vessel, and from which motor fuel may be removed at a rack.(b) Imports.(1) Gasoline or diesel fuel imported into Texas by or for a seller constitutes an import by that seller. Gasoline or diesel fuel imported into Texas by or for a purchaser constitutes an import by that purchaser.(2) An importer must obtain from the comptroller an import verification number for each load of gasoline or diesel fuel imported into Texas by truck or railroad tank car. An import verification number must be obtained within 72 hours before or after the gasoline or diesel fuel enters Texas. The importer must write the import verification number on the shipping document issued for that fuel.(3) An importer must possess a shipping document created by the terminal or bulk plant where the gasoline or diesel fuel was loaded. See §3.439 of this title (relating to Motor Fuel Transportation Documents) for gasoline or diesel fuel imported by any means into Texas.(c) Exports.(1) A licensed supplier, permissive supplier, or distributor makes an export sale when it sells gasoline or diesel fuel in Texas to a licensed exporter, importer, distributor, supplier, or permissive supplier who then sends or transports the gasoline or diesel fuel outside the state. The bill of lading or shipping document must list the out of state destination.(2) A licensed supplier, permissive supplier, or distributor who makes an export sale will not be liable for tax on gasoline or diesel fuel that the purchaser diverts provided that the seller issued a bill of lading or shipping document that shows that the gasoline or diesel fuel is to be delivered to a destination outside Texas.(3) The comptroller may request proof of export from the exporter to verify that the gasoline or diesel fuel was exported from Texas. This proof may consist of:(A) proof of export that a U.S. customs office has certified, if the gasoline or diesel fuel was exported from this state to a foreign country;(B) proof of export that a port of entry of the state of importation has certified, if ports of entry are maintained by that state;(C) proof from the tax officials of the state into which the gasoline or diesel fuel was imported, which shows that the exporter has accounted for the gasoline or diesel fuel on the state's tax report; or(D) other proof that the gasoline or diesel fuel has been reported to the state into which the gasoline or diesel fuel was imported.(d) Diversion Number. An importer or exporter who diverts the delivery of a load of gasoline or diesel fuel being transported by truck or railroad tank car from the destination state or country that is preprinted on the shipping document that has been issued for that fuel to another state or country must obtain a diversion number from the comptroller. A diversion number must be obtained within 72 hours before or after the diversion. The importer, exporter, or common or contract carrier must write the diversion number on the shipping document issued for that fuel.(e) Reporting subsequent sales in this state of tax-free gasoline or diesel fuel purchased for export.(1) A person who purchases or removes gasoline or diesel fuel tax-free for export to any other state or foreign country and, before export, sells the gasoline or diesel fuel in this state tax-free to a licensed supplier, permissive supplier, distributor, importer, or exporter shall report that transaction as required by this subsection.(2) If the gasoline or diesel fuel is subsequently sold one or more times in this state before export and tax-free to a licensed supplier, permissive supplier, distributor, importer, or exporter, each seller shall report the transaction to the comptroller as required by this section.(3) Each person who makes a sale described by paragraph (1) or (2) of this subsection must provide to the comptroller:(A) the bill of lading number issued at the terminal;(B) the terminal control number;(C) the date the gasoline or diesel fuel was removed from the terminal;(D) the number of gallons invoiced;(E) date of sale; and(F) any other information required by the comptroller.(4) The sales invoice for each transaction described by paragraph (1) or (2) of this subsection must include:(A) the name of the seller and purchaser; and(B) the original bill of lading number.(5) A person who is required to report a subsequent sale in this state of tax-free gasoline or diesel fuel purchased for export shall report the transaction with the required monthly motor fuels return as required under Tax Code, §162.114 (Returns and Payments) or §162.215 (Returns and Payments).(f) Penalties.(1) A person who fails to report a subsequent sale in this state of tax-free gasoline or diesel fuel purchased for export shall pay a penalty of $200 for each sale that was not reported on the original return, unless the person files an amended report that includes the sale not later than the 180th day after the due date of the original return.(2) Failure to pay tax due on a subsequent sale of tax-free gasoline and diesel fuel purchased for export. A licensed supplier, permissive supplier, distributor, importer, or exporter who redirects a delivery of gasoline or diesel fuel to a location in this state prior to export and fails to pay the tax when due, shall pay a penalty equal to the greater of $2,000 or five times the amount of tax due.(3) The penalties addressed in this subsection are in addition to any other penalty authorized under Tax Code, Chapter 162 (Motor Fuel Taxes).",
            "sourceNote": "Source Note: The provisions of this §3.441 adopted to be effective April 13, 2005, 30 TexReg 2093; amended to be effective March 16, 2020, 45 TexReg 1859."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=166071&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "166071",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "S",
                "label": "MOTOR FUEL TAX"
            },
            "rule": {
                "number": "§3.442",
                "label": "Bad Debts or Accelerated Credit for Non-payment of Taxes"
            },
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            "ruleBody": "(a) Bad Debt Deductions. A licensed distributor, supplier, permissive supplier, or compressed natural gas and liquefied natural gas dealer may file a claim for refund on the monthly return of taxes paid on fuel that was sold on account that is later determined to be uncollectible, worthless, and previously written off as bad debt at the time that the distributor, supplier, permissive supplier, or compressed natural gas and liquefied natural gas dealer held an active license.(1) The claim for refund must be in writing, state the fuel type (gasoline, diesel, compressed natural gas, or liquefied natural gas), state the beginning and ending date of sales on which the bad debt is claimed, the number of gallons, and the dollar amount of bad debts. The licensed distributor, supplier, permissive supplier, or compressed natural gas and liquefied natural gas dealer must establish the bad debt amount by providing information on the form required by the comptroller. Required information includes but is not limited to the following:(A) the date of sale or invoice date;(B) invoice fuel amount and invoice fuel tax amount;(C) the name and address of the purchaser, and if applicable, the license number of the purchaser;(D) all payments or credits applied to the account of the purchaser; and(E) uncollected amounts in the purchaser's account that were written off as bad debt in the distributor's, supplier's, permissive supplier's, or compressed natural gas and liquefied natural gas dealer's, records, including the number of gallons of fuel represented by the motor fuel portion of the bad debt.(2) All payments and credits made by the purchaser must be applied to the purchaser's account to determine the bad debt amount, and if the purchaser's account also contains purchases of goods other than motor fuel, then the payments and credits to that account should be applied ratably between motor fuel, including tax, and other goods sold to the purchaser. The comptroller will only allow a claim for refund of tax on the number of gallons represented by the motor fuel portion of the bad debt. The maximum amount of refund claimed cannot exceed the tax paid on the fuel sold on account that has been written off as a bad debt.(3) A claim for refund of taxes based on a bad debt must be filed within four years from the date the account is entered in the distributor's, supplier's, permissive supplier's, or compressed natural gas and liquefied natural gas dealer's books as a bad debt.(b) Accelerated Credit. If a licensed supplier or permissive supplier reported and remitted taxes on a tax return for fuel sold on account to a purchaser who is licensed as a distributor or importer at the time of the transaction and who subsequently fails to pay the taxes to the seller, the licensed supplier or permissive supplier may take a credit against tax liability on a subsequent tax return if the licensed supplier or permissive supplier notifies the comptroller of the default.(1) The notification to the comptroller for credits claimed before June 19, 2009, must be made no later than 60 days after the date of default. The notification to the comptroller for credits claimed on or after June 19, 2009, must be made no later than 15 days after the date of default.(2) The notification to the comptroller may be made by taking a credit on an original or amended return or in writing. If the notification is in writing the credits may be taken beginning with the return for the reporting month in which the notification is made. When credits are taken on a return, the licensed supplier or permissive supplier must submit with that return information required by the comptroller.(3) A licensed supplier or permissive supplier who fails to notify the comptroller of the default within the prescribed period in paragraph (1) of this subsection cannot take a credit on a return, but may seek a refund of taxes based on bad debts subject to the requirements provided by subsection (a) of this section.(4) For credits claimed before June 19, 2009, all payments and credits made by the purchaser must be applied to the purchaser's account to determine that non-payment amount, and if the purchaser's account contains the purchase of goods or items other than motor fuel, then the payments and credits to that account should be applied ratably between motor fuel, including tax, and other goods or items sold to the purchaser. The comptroller will only allow a credit of tax on the number of gallons represented by the motor fuel portion of the unpaid amount. The maximum amount of credit taken cannot exceed the tax paid on the fuel sold on account that has been unpaid. For credits claimed on or after June 19, 2009, the supplier or permissive supplier may claim credit on the amount of the deferred tax payment defaulted by the distributor or importer.(5) If the notification of default was timely made to the comptroller as prescribed by paragraph (1) of this subsection, credits for taxes that were not collected from the licensed purchaser must be taken within four years from the date of default.(6) A distributor or importer whose right to defer payment of tax to a supplier or permissive supplier has been suspended before June 19, 2009, may seek reinstatement of the right to defer payment when all motor fuel tax liability has been satisfied and considered in good standing with the comptroller. The distributor or importer must request that the comptroller issue a notice of good standing for motor fuel taxes.(7) A distributor or importer on which a supplier or permissive supplier has notified the comptroller of default of the deferred tax payment on or after June 19, 2009, loses the right to defer payment of tax to that supplier or permissive supplier for one year following the date that the supplier or permissive supplier notified the comptroller of default. The distributor or importer may seek reinstatement of the right to defer payment if the supplier or permissive supplier erroneously claimed a credit or the default was due to circumstances beyond the distributor's or importer's control, such as a bank error. Request for reinstatement of the right to defer taxes should be made to the comptroller in writing.(c) Credit card sales. The refund for bad debts or credit for non-payment of taxes allowed under this section does not apply to sales of fuel that is delivered into the supply tank of a motor vehicle or motorboat when payment is made through the use and acceptance of a credit card. For purpose of this section, a credit card is defined as any card, plate, key, or like device by which credit is extended to and charged to the purchaser's account. Sales made through the use and acceptance of a fuel access card, where the only use of the access card is to record the quantity and type of fuel or other information acquired merely for the purpose of reconciling accounts and no credit is extended to the holder are eligible for the bad debt credit. Credit sales to commercial or agricultural customers at locations not open to the general public are eligible for the bad debt credit.(d) A supplier, permissive supplier, distributor, or compressed natural gas and liquefied natural gas dealer who collects all or part of an account that was written off as a bad debt for which a refund was sought under subsection (a) of this section or who collects all or part of the unpaid tax after a credit was taken under subsection (b) of this section, must report and remit the collected amount on an amended return for the reporting period in which the bad debt was originally claimed. The comptroller may assess a deficiency, including 10% penalty at the rate provided by Tax Code, §111.060, if the amount recovered is not reported and tax is not paid to the state during the month in which the recovery is made. Interest will accrue from the date the credit was taken.(e) If the comptroller determines that a taxpayer obtained a refund from the comptroller or took a credit on a return when he knew or should reasonably have known that the account or tax was collectible, the comptroller may issue a deficiency for the tax plus 10% penalty and interest imposed from the date the refund was granted or the credit taken. In addition, other penalties provided by this section or by Tax Code, Chapters 111 or 162, may be imposed.(f) The comptroller may issue a deficiency assessment for tax, plus penalty and interest applicable under Tax Code, Chapter 111, against the purchaser whose account was the subject of a refund for bad debt obtained or a credit claimed by a distributor, supplier, permissive supplier, or compressed natural gas and liquefied natural gas dealer.(g) Criminal and civil penalties for issuing bad checks.(1) A person commits an offense if he issues a check to a licensed distributor, licensed supplier, or permissive supplier for the payment of fuel knowing that his account with the bank on which the check is drawn has insufficient funds and if the payment is for an obligation that includes tax imposed by Tax Code, Chapter 162, that is required to be collected by the licensed distributor, licensed supplier, or permissive supplier. The offense is a Class C misdemeanor.(2) If a licensed distributor, licensed supplier, or permissive supplier receives an insufficient fund check causing a refund to be sought or a credit taken in accordance with the provisions in this section, the licensed distributor, licensed supplier, or permissive supplier may notify the comptroller of the receipt of the insufficient fund check. When making the notification, a photocopy of both sides of the returned check should be furnished.(3) A person who issues an insufficient fund check to a licensed distributor, licensed supplier, or permissive supplier for payment of an obligation that includes tax imposed by Tax Code, Chapter 162, that is required to be collected by the licensed distributor, licensed supplier, or permissive supplier may be assessed a penalty equal to 100% of the total amount of tax not paid to the licensed distributor, licensed supplier, or permissive supplier. This penalty is in addition to any penalties, interest, and collection actions authorized by the Tax Code.",
            "sourceNote": "Source Note: The provisions of this §3.442 adopted to be effective April 13, 2005, 30 TexReg 2093; amended to be effective November 16, 2009, 34 TexReg 8039; amended to be effective February 27, 2014, 39 TexReg 1162."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=164773&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "164773",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "S",
                "label": "MOTOR FUEL TAX"
            },
            "rule": {
                "number": "§3.443",
                "label": "Diesel Fuel Tax Exemption for Water, Fuel Ethanol, Biodiesel, Renewable Diesel, and Biodiesel and Renewable Diesel Mixtures"
            },
            "nextRule": {
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Water-based diesel fuel--a combination of water, petroleum diesel fuel, emulsifier, and seasonal additives (when necessary) into an emulsion that is suitable or used for the propulsion of a diesel-powered motor vehicle.(2) Fuel grade ethanol--denatured ethanol meeting the requirements of American Society for Testing and Materials (ASTM) D-4806 used for blending with motor fuel.(3) Biodiesel--a fuel that:(A) meets the registration requirements for fuel or fuel additives established by the United States Environmental Agency under Section 211 of the Federal Clean Air Act (42 U.S.C. Section 7545);(B) is mono-alkyl esters of long chain fatty acids derived from vegetable oils and animal fats;(C) meets the requirements of ASTM D-6751;(D) is intended for use in engines that are designed to run on conventional, petroleum-derived diesel fuel; and(E) is derived from agricultural products, vegetable oils, recycled greases, biomass, or animal fats or the wastes of those products or fats.(4) Biodiesel blend--a blend of biodiesel meeting the requirements of paragraph (3) of this subsection, with petroleum based diesel fuel.(5) Renewable diesel--a fuel that:(A) meets the registration requirements for fuel or fuel additives established by the United States Environmental Agency under Section 211 of the Federal Clean Air Act (42 U.S.C. Section 7545);(B) is a hydrocarbon;(C) meets the requirements of ASTM D-975;(D) is intended for use in engines that are designed to run on conventional, petroleum-derived diesel fuel; and(E) is derived from agricultural products, vegetable oils, recycled greases, biomass, or animal fats or the wastes of those products or fats.(6) Renewable diesel blend--a blend of renewable diesel fuel meeting the requirements of paragraph (5) of this subsection, with petroleum based diesel fuel. A renewable diesel blend may also be identified as a biomass-based diesel blend.(b) Diesel fuel tax exception. The tax imposed on diesel fuel pursuant to Tax Code, §162.201, does not apply to biodiesel, renewable diesel or to the volume of water, fuel grade ethanol, biodiesel or renewable diesel that is blended with taxable petroleum based diesel fuel when the finished product meets the certification requirements of subsection (f) of this section and is clearly identified on the sales invoice, storage tank, and retail pump, as required by subsection (c), (d), or (e) of this section. The tax imposed pursuant to Tax Code, §162.201, applies to the petroleum-based component of a renewable diesel blend that is the result of co-processing a renewable diesel feedstock with a petroleum-based feedstock in the same facility or refinery processing unit. The portion of the resulting co-processed product that is exempt from the tax imposed pursuant to Tax Code, §162.201, as a renewable diesel is equal to the volume of renewable diesel used as a feedstock. The tax exemption on biodiesel, renewable diesel or to the volume of water, fuel grade ethanol, biodiesel or renewable diesel that is blended with taxable petroleum based diesel fuel provided by Tax Code, §162.204, should be documented in each transaction so that the exemption is passed to the person ultimately using or consuming the diesel fuel.(c) Invoice documentation.(1) The volume of biodiesel or renewable diesel must be identified on the sales invoice on each sales transaction, and must continue to be identified on sales invoices until the product is sold to the ultimate consumer.(2) The volume of water, fuel grade ethanol, biodiesel, or renewable diesel that is combined with taxable petroleum based diesel fuel must be identified on the sales invoice on each sales transaction after the water, fuel grade ethanol, biodiesel, or renewable diesel is first blended with taxable petroleum based diesel fuel, and must continue to be identified on sales invoices until the blended product is sold to the ultimate consumer.(3) A sales invoice must:(A) identify a water-based diesel fuel, ethanol blended diesel fuel, biodiesel, renewable diesel, biodiesel blend, or renewable diesel blend by a commonly accepted commercial or industry name for the product being sold. For example, B100 for biodiesel or B20 for a biodiesel blend containing 80% taxable petroleum diesel fuel and 20% biodiesel;(B) list the volume in gallons (rounded to the nearest whole gallon) or the percentage (rounded to the nearest whole percentage; for example 1.4% becomes 1.0% and 1.5% becomes 2.0%) of the blended product that is water, fuel grade ethanol, biodiesel, or renewable diesel;(C) list the volume in gallons (rounded to the nearest whole gallon) or the percentage (rounded to the nearest whole percentage) of the blended product that is taxable petroleum based diesel fuel. Taxable diesel fuel includes emulsifiers and additives, but not water, fuel grade ethanol, biodiesel, or renewable diesel; and(D) list the basis of calculating the tax (if a taxable sale) as either $0.20 for each gallon of taxable petroleum based diesel fuel in the blended product or a ratable tax rate based on the percent of taxable petroleum based diesel in the blended product. For example, the invoice for the sale of 100 gallons that is a blend of 20% biodiesel and 80% taxable diesel fuel may list: state diesel fuel tax of $0.20 per gallon on 80 gallons taxable diesel fuel and no state tax on 20 gallons biodiesel, or state diesel fuel tax of $0.16 per gallon on 100 gallons of biodiesel blend.(d) Notice required on storage tank and retail pump.(1) A notice must be posted in a conspicuous location on each storage tank and retail pump from which biodiesel or renewable diesel is stored or sold. The notice must identify the product by the common industry or commercial name. For example, B100 for biodiesel.(2) A notice must be posted in a conspicuous location on each storage tank located outside the bulk terminal/transfer system and retail pump from which a blend product is stored or sold from the time that the water, fuel grade ethanol, biodiesel, or renewable diesel is first blended with taxable petroleum based diesel fuel until the blended product is sold to the ultimate consumer. The notice must identify the blended product by the common industry or commercial name, and state the volume percentage (rounded to the nearest whole percentage) of water, fuel grade ethanol, biodiesel, or renewable diesel that is blended with petroleum diesel fuel. For example, \"B5 - 5.0% Biodiesel\", or similar wording, for a 5.0% biodiesel blend.(e) As an alternative to subsections (c) and (d) of this section, a dealer dispensing a biodiesel blend or renewable diesel blend at a retail location to the ultimate consumer may elect to identify on the storage tank, retail pump and sales invoice the blended product sold in the following manner:(1) blends containing a total percentage of up to 5.0% biodiesel or renewable diesel by volume may be identified as \"Contains Up To 5.0% Biodiesel or Renewable Diesel\" or similar wording. Each component that is biodiesel or renewable diesel is added together to determine the total percentage. The sales invoice must list the basis for collecting the state tax as though the blended product sold is a 5.0% blend. For example, a blended product that contains 2.0% biodiesel and 2.0% renewable diesel has a total blend percentage of 4.0% and may be identified on the retail pump as \"Contains Up To 5.0% Biodiesel or Renewable Diesel\", or similar wording, and identified on the sales invoice with the statement \"Contains up to 5.0% biodiesel or renewable diesel - state diesel tax $0.19 per gallon\", or similar wording;(2) blends containing a total percentage greater than 5.0% biodiesel or renewable diesel by volume but no more than 10% biodiesel or renewable diesel by volume may be identified as \"Contains Up To 10% Biodiesel or Renewable Diesel\" or similar wording. Each component that is biodiesel and renewable diesel is added together to determine the total percentage. The sales invoice must list the basis for collecting the state tax as though the blended product sold is a 10% blend. For example, a blend that contains 2.0% biodiesel and 5.0% renewable diesel has a total blend of 7.0% and may be identified on the retail pump as \"Contains Up To 10% Biodiesel or Renewable Diesel\", or similar wording, and identified on the sales invoice with the statement \"Contains up to 10% biodiesel or renewable diesel - state diesel tax $0.18 per gallon\", or similar wording;(3) blends containing a total percentage greater than 10% biodiesel or renewable diesel by volume but no more than 15% biodiesel or renewable diesel by volume may be identified as \"Contains Up To 15% Biodiesel or Renewable Diesel\" or similar wording. Each component that is biodiesel and renewable diesel is added together to determine the total percentage. The sales invoice must list the basis for collecting the state tax as though the blended product sold is a 15% blend. For example, a blend that contains 5.0% biodiesel and 7.0% renewable diesel has a total blend of 12% and may be identified on the retail pump as \"Contains Up To 15% Biodiesel or Renewable Diesel\", or similar wording, and identified on the sales invoice with the statement \"Contains up to 15% biodiesel or renewable diesel - state diesel tax $0.17 per gallon\", or similar wording;(4) blends containing a total percentage greater than 15% biodiesel or renewable diesel by volume but no more than 20% biodiesel or renewable diesel by volume may be identified as \"Contains Up To 20% Biodiesel or Renewable Diesel\" or similar wording. Each component that is biodiesel and renewable diesel is added together to determine the total percentage. The sales invoice must list the basis for collecting the state tax as though the blended product sold is a 20% blend. For example, a blend that contains 8.0% biodiesel and 8.0% renewable diesel has a total blend of 16% and may be identified on the retail pump as \"Contains Up To 20% Biodiesel or Renewable Diesel\", or similar wording, and identified on the sales invoice with the statement \"Contains up to 20% biodiesel or renewable diesel - state diesel tax $0.16 per gallon\", or similar wording;(5) blends containing a total percentage greater than 20% biodiesel or renewable diesel by volume must follow the sales invoice, storage and retail pump requirements as described in subsections (c) and (d) of this section;(6) a dealer who uses this subsection must pay state diesel fuel tax on their purchases of a biodiesel blend or renewable diesel blend based on the actual volume of the petroleum diesel in the blend;(7) this subsection does not apply to wholesale sales of biodiesel or renewable diesel blends.(f) Certification. The refiner, producer, importer, blender, or reseller of biodiesel, renewable diesel, biodiesel blend, or renewable diesel blend must provide on each transfer to a person who is not the ultimate consumer a delivery ticket, certificate, letter, or other written statement (e.g.; invoice, bill of sale, bill of lading, or product transfer document) that contains the name of the seller, the name of the purchaser, date of transfer and the volume in gallons (rounded to the nearest whole gallon) or the percentage (rounded to the nearest whole percentage) of the biodiesel or renewable diesel component of the blend. Certification records required by this subsection must be maintained for four years.(g) Refund of diesel fuel tax paid. The ultimate consumer who has paid diesel fuel tax on biodiesel, renewable diesel, or on the percentage of water, fuel grade ethanol, biodiesel, or renewable diesel that is blended with taxable petroleum based diesel may file a claim for refund of taxes paid as provided by §3.432 of this title (relating to Refunds on Gasoline and Diesel Fuel Tax). The refund claim must be supported with purchase invoice(s) as described in subsection (c) of this section. The total volume of diesel fuel that is purchased is presumed to be taxable diesel fuel if the purchase invoice does not meet the requirements of subsection (c) of this section.(h) Commercial motor vehicles licensed under the International Fuel Tax Agreement (IFTA).(1) A water-based diesel fuel, ethanol blended diesel fuel, biodiesel, renewable diesel, biodiesel blend, or renewable diesel blend that is delivered into the fuel supply tank(s) of a motor vehicle that is licensed under the IFTA is presumed to be used in the jurisdiction in which it was purchased. This presumption may be overcome if it is shown that the total amount of water-based diesel fuel, ethanol blended diesel fuel, biodiesel, renewable diesel, biodiesel blend, or renewable diesel blend that is purchased in other IFTA jurisdictions is greater than the amount of total diesel fuel used in other IFTA jurisdictions by all diesel-powered motor vehicles that the IFTA licensee operates.(2) In calculating the IFTA fleet average mile-per-gallon, the total gallons of diesel fuel that are consumed includes the total gallons of water-based diesel fuel, ethanol blended diesel fuel, biodiesel, renewable diesel, biodiesel blend, or renewable diesel blend.(3) An IFTA licensee who overpays the tax on a water-based diesel fuel, ethanol blended diesel fuel, biodiesel, renewable diesel, biodiesel blend, or renewable diesel blend by way of an IFTA tax return may request a refund from the comptroller. A refund claim must be supported with purchase invoice(s) as described in subsection (c) of this section. The total volume of diesel fuel that is purchased is presumed to be taxable diesel fuel if the purchase invoice(s) do not meet the requirements of subsection (c) of this section.(i) A license holder who makes the first sale in Texas or import into Texas of biodiesel, renewable diesel, or a mixture of water, fuel grade ethanol, biodiesel, or renewable diesel that is blended with taxable petroleum-based diesel fuel, may elect to collect and remit the tax imposed on diesel fuel pursuant to Tax Code, §162.201, rather than complying with subsections (c), (d), and (e) of this section. Biodiesel, renewable diesel, or the volume of water, fuel grade ethanol, biodiesel, or renewable diesel that is blended with taxable petroleum-based diesel fuel, on which tax has been paid is not exempt from tax on a subsequent sale and subsections (c), (d), and (e) of this section do not apply to a subsequent sale. A license holder, dealer, or other purchaser who pays tax on biodiesel, renewable diesel, or the volume of water, fuel grade ethanol, biodiesel, or renewable diesel that is blended with taxable petroleum-based diesel fuel, is not entitled to a credit or refund.",
            "sourceNote": "Source Note: The provisions of this §3.443 adopted to be effective September 2, 2004, 29 TexReg 8374; amended to be effective August 24, 2010, 35 TexReg 7446; amended to be effective August 1, 2011, 36 TexReg 4805; amended to be effective December 5, 2013, 38 TexReg 8671."
        },
        {
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            "currentRecordId": "119705",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "S",
                "label": "MOTOR FUEL TAX"
            },
            "rule": {
                "number": "§3.444",
                "label": "Temperature Adjustment Conversion Table and Metering Devices"
            },
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            "ruleBody": "(a) This rule applies only to motor fuel transactions that take place on or after January 1, 2004. Motor fuel transactions that occur prior to January 1, 2004, will be governed by sections in Texas Administrative Code, Title 34, Part 1, Chapter 3, Subchapter L.(b) Temperature adjustment method. For the purpose of conversion of actual gasoline and diesel fuel volume to equivalent volume of 60 degrees Fahrenheit, Table 6B of revised ASTM-API-IP Petroleum Measurement Tables may be used in lieu of any conversion table which the comptroller may issue.(c) Testing and accuracy of meters and thermometers or other devices designed to accurately measure the temperature of fuel. Meters must be tested each 90 days or after 10 million gallons through-put, whichever occurs first. The accuracy of any meter being used must be maintained within 1% of correct volume during all loading or unloading operations. The tests of meters shall be determined by the methods provided by the American Society of Mechanical Engineers-American Petroleum Institute for the Installation, Proving and Operation of Meters in Liquid Hydrocarbon Service. Thermometers or other devices designed to accurately measure the temperature of fuel must be tested each 90 days and must conform to standards set by the American Society of Mechanical Engineers-American Petroleum Institute or National Bureau of Standards.(d) Records. A record of all tests must be maintained and open for examination by the comptroller for a period of four years.(e) Posting of results. The results of the most recent tests on all meters and thermometers or temperature measuring devices being used must be posted in a conspicuous place at each terminal where the tests are required.",
            "sourceNote": "Source Note: The provisions of this §3.444 adopted to be effective April 13, 2005, 30 TexReg 2095."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=119706&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "119706",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "S",
                "label": "MOTOR FUEL TAX"
            },
            "rule": {
                "number": "§3.446",
                "label": "Electronic Filing of Reports, Civil Penalties, and Deferred Tax Payments"
            },
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            "ruleBody": "(a) This rule applies only to motor fuel transactions that take place on or after January 1, 2004. Motor fuel transactions that occur prior to January 1, 2004, will be governed by sections in Texas Administrative Code, Title 34, Part 1, Chapter 3, Subchapter L.(b) Electronic filing of reports and schedules.(1) The comptroller may require a supplier, permissive supplier, distributor, importer, exporter, blender, or motor fuel transporter to file reports and schedules by means of electronic transmission under the following circumstances:(A) the combined total number of gallons of gasoline and diesel fuel that a licensed supplier, permissive supplier, distributor, importer, exporter, or blender receives during the preceding 12 months exceeds five million gallons, or the total number of transactions that a licensed supplier, permissive supplier, distributor, importer, exporter, or blender reports on the monthly report schedules exceeds 100 transactions each month for three consecutive months on an individual license basis; or(B) the total number of transactions that a motor fuel transporter reports on the quarterly report schedules exceeds 100 transactions.(2) For the purpose of this section, one transaction means a single purchase, sale, import, or export of gasoline or diesel fuel, or the summary of multiple purchases, sales, imports, or exports of gasoline or diesel fuel during a reporting period, when the seller, purchaser, fuel type, motor fuel transporter, origin state or country, and destination state or country are the same.(3) The taxpayer or its authorized agent shall enter into a written agreement with the comptroller to permit electronic filing of reports and schedules. The signature of the taxpayer or its authorized agent on the written agreement into which the parties enter for this purpose shall be deemed to appear on each report filed electronically.(4) Electronic transmission of each report and schedule shall be made in a format that the comptroller approves and that is compatible with the comptroller's equipment and facilities.(5) The comptroller shall notify the taxpayers to whom this subsection applies no less than 90 days before the taxpayer is required to begin filing its reports and schedules electronically.(6) Suppliers, permissive suppliers, distributors, importers, exporter, blenders, and motor fuel transporters who are required to file reports and supplements electronically, but are unable to do so, may request a waiver from the comptroller.(7) The license of a supplier, permissive supplier, distributor, importer, exporter, blender, or motor fuel transporter who is required to file electronically may be suspended if the supplier, permissive supplier, distributor, importer, exporter, blender, or motor fuel transporter fails to file reports and schedules by means of electronic transmission in an approved format, after being notified of such requirement.(8) A terminal operator must file reports and schedules electronically.(c) Civil penalty.(1) A motor fuel transporter who is required to file reports and schedules and who fails to do so, after being notified of such requirement, may be assessed a penalty not to exceed $200 for each report period and $25 for each reportable transaction. Each calendar quarter that a motor fuel transporter fails to file a report with the comptroller is a separate violation. The comptroller will send notice to the motor fuel transporter about the assessment of the penalty. The motor fuel transporter may request a redetermination under the terms of §§1.1-1.42 of this title (relating to Rules of Practice and Procedure). An oral hearing at the office of the Comptroller of Public Accounts in Austin, Texas, may be requested. The standard of proof in an administrative hearing pursuant to this section is by a preponderance of the evidence, unless otherwise provided by statute.(2) A motor fuel transporter or terminal operator who is required to file reports and schedules electronically and who fails to do so in an approved format, after being notified of such requirement, may be assessed a penalty not to exceed $200 for each report period and $25 for each reportable transaction. The comptroller will send notice to the motor fuel transporter or terminal operator about the assessment of the penalty. The motor fuel transporter or terminal operator may request a redetermination under the terms of §§1.1-1.42 of this title (relating to Rules of Practice and Procedure). An oral hearing at the office of the Comptroller of Public Accounts in Austin, Texas, may be requested. The standard of proof in an administrative hearing pursuant to this section is by a preponderance of the evidence, unless otherwise provided by statute.(d) Deferred tax payments.(1) A licensed supplier, permissive supplier, distributor, or importer ordering a withdrawal of motor fuel at a terminal rack may elect to defer the payment of taxes to a supplier or permissive supplier until two days before the supplier or permissive supplier is required to remit the tax to the state. If two days before the report due date falls on a weekend or banking holiday, then the payment to the supplier or permissive supplier is to be made on the last business day prior to the weekend or banking holiday. For example, if the due date falls on a Tuesday the 25th, then the supplier or permissive supplier may draft the account on Friday the 21st.(2) A supplier, a permissive supplier, or its representative shall give at least a two day notice by electronic means of the amount to be drafted from the account of the supplier, permissive supplier, distributor, or importer. If two days before the date the bank account is to be drafted falls on a weekend or banking holiday, then the notice to the supplier, permissive supplier, distributor or importer is to be made on the last business day prior to the weekend or banking holiday. For example, if the due date falls on a Tuesday the 25th, then the supplier or permissive supplier must give notice on Wednesday the 19th.(3) The supplier, permissive supplier, distributor or importer shall pay the taxes to the supplier or permissive supplier by electronic funds transfer.",
            "sourceNote": "Source Note: The provisions of this §3.446 adopted to be effective April 13, 2005, 30 TexReg 2095."
        },
        {
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            "title": {
                "number": "34",
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                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
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                "number": "3",
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            "subchapter": {
                "number": "S",
                "label": "MOTOR FUEL TAX"
            },
            "rule": {
                "number": "§3.447",
                "label": "Reports, Due Dates, Bonding Requirements, and Qualifications for Annual Filers"
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                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Reports required.(1) A dyed diesel fuel bonded user with an average quarterly tax liability of $600 or less has the option to file reports each quarter or each year. After a dyed diesel fuel bonded user has selected a method of reporting, the method cannot be changed without permission from the comptroller unless the dyed diesel fuel bonded user's tax liability for a year exceeds $2,400, or the comptroller deems change otherwise necessary. If the dyed diesel fuel bonded user's diesel fuel tax liability during a year exceeds $2,400, the dyed diesel fuel bonded user must file a report for all previous quarters of that year. Future reports must be filed on a quarterly basis.(2) Dyed diesel fuel bonded users with an average quarterly tax liability of more than $600 must file quarterly reports.(3) Compressed natural gas and liquefied natural gas dealers with an average quarterly tax liability of $600 or less have the option to file reports each quarter or each year. After a compressed natural gas and liquefied natural gas dealer has selected a method of reporting, the dealer cannot change the method without permission from the comptroller, unless the compressed natural gas and liquefied natural gas dealer's tax liability for a year exceeds $2,400. The comptroller may require a compressed natural gas and liquefied natural gas dealer to change its method of reporting when the comptroller deems change otherwise necessary. If the compressed natural gas and liquefied natural gas dealer's tax liability during a year exceeds $2,400, the compressed natural gas and liquefied natural gas dealer must file a report for all previous quarters of that year. Future reports must be filed on a quarterly basis.(4) The report and payment of tax on sales of compressed natural gas and liquefied natural gas made from September 1, 2013, through December 31, 2013, are to be included with the 2013 annual return.(b) Due dates.(1) The due date for all annual reports is January 25th.(2) The due date for all quarterly reports is the 25th day of the month following the calendar quarter end date.(3) If the report is filed by the due date, a request for refund of taxes paid on compressed natural gas and liquefied natural gas used out-of-state by a Texas interstate trucker must be made on the annual report.(c) Bonding requirements. Dyed diesel fuel bonded users that report annually will be required to post security in the amount of two times the annual tax liability on taxable uses of diesel fuel. The minimum bond is $10,000. The bond may be waived if it is determined that the bond is not necessary to protect the state.(d) Changes in filing status.(1) A license holder that is going out of business or whose license is cancelled must file a report on or before the 25th day of the month following the calendar quarter in which business ceased.(2) Dyed diesel fuel bonded users will be notified each March of any filing status change based on the dyed diesel fuel bonded user's previous-year reports.(e) Compressed natural gas/liquefied natural gas reports. Licensed compressed natural gas/liquefied natural gas dealers who are also compressed natural gas/liquefied natural gas interstate truckers registered under a multistate tax agreement must file their compressed natural gas/liquefied natural gas dealer report with the same frequency that they report their interstate trucker operations under the multistate tax agreement.",
            "sourceNote": "Source Note: The provisions of this §3.447 adopted to be effective October 13, 2004, 29 TexReg 9554; amended to be effective February 16, 2014, 39 TexReg 776; amended to be effective January 27, 2016, 41 TexReg 683."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=176120&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "176120",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "S",
                "label": "MOTOR FUEL TAX"
            },
            "rule": {
                "number": "§3.448",
                "label": "Transportation Services for Texas Public School Districts"
            },
            "nextRule": {
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                "recordId": "187573",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Affidavit. To purchase gasoline or diesel fuel  less the state tax, a commercial transportation company that provides  transportation services to a public school district in Texas must  submit to the comptroller an affidavit stating: (1) that the company has contracted with a specific  public school district to provide transportation services (other than  charter trips) for the school district; and(2) that motor fuel purchased tax-free will be used  exclusively by the company to provide the transportation services  for the school district.(b) Exception letter. After review and approval of  the affidavit required by subsection (a) of this section, the comptroller  shall issue to the company a letter of exception specifying that the  company may purchase tax-free gasoline and/or diesel fuel used to  provide transportation services to a public school district in Texas.  The letter of exception may be reproduced for licensed suppliers and  licensed distributors. An exception letter shall be issued to the  company for specific vehicles operated using compressed natural gas  or liquefied natural gas. The letter may be furnished to inspectors  when a compressed natural gas or liquefied natural gas powered bus  is undergoing a safety inspection and to compressed natural gas and  liquefied natural gas dealers when the company purchases compressed  natural gas or liquefied natural gas tax free to be placed into the  fuel supply tank of the bus. Compressed natural gas and liquefied  natural gas dealers may not accept an exception letter for compressed  natural gas or liquefied natural gas delivered into a motor vehicle  at an unmanned compressed natural gas or liquefied natural gas retail  location. An unmanned compressed natural gas or liquefied natural  gas retail location is a location where compressed natural gas or  liquefied natural gas is sold to the public and which is completely  unstaffed, meaning that there are no personnel routinely working at  the site. An unmanned compressed natural gas and liquefied natural  gas retail location does not include self-service filling stations  at which customers pump their own fuel and have the option of paying  an attendant or paying at the pump. A company who pays tax on compressed  natural gas and liquefied natural gas delivered into the fuel supply  tank of a vehicle issued an exception letter may request refund under §3.432  of this title (relating to Refunds on Gasoline, Diesel Fuel, Compressed  Natural Gas, and Liquefied Natural Gas Taxes). (c) Records required. A commercial transportation company  providing transportation services to a Texas public school district  shall keep separate records for tax-free and tax-paid fuels. Both  sets of records must show:(1) the number of gallons of gasoline, diesel fuel,  compressed natural gas, or liquefied natural gas on hand on the first  day of each month;(2) the number of gallons of gasoline, diesel fuel,  compressed natural gas, or liquefied natural gas purchased or received,  showing the name of the seller and the date of each purchase;(3) the date and number of gallons of gasoline, diesel  fuel, compressed natural gas, or liquefied natural gas delivered into  the fuel supply tanks of vehicles used to furnish transportation services  to public school districts;(4) the date and number of gallons of gasoline, diesel  fuel, compressed natural gas, or liquefied natural gas delivered into  the fuel supply tanks of vehicles used to furnish transportation services  other than to public school districts;(5) the date and number of miles traveled to provide  transportation services for the public school district, including  starting point, destination, purpose of trip, beginning and ending  odometer readings, vehicle identification number, and the vehicle  license plate number; and(6) the date and number of miles traveled to provide  transportation services for customers other than public school district(s),  including the beginning and ending odometer readings, vehicle identification  number, and vehicle license plate number of the vehicle so used.(d) Taxable use.(1) A commercial transportation company forfeits its  right to purchase gasoline or diesel fuel tax-free if:(A) the gasoline or diesel fuel is sold, other than  to a Texas public school district for which the commercial transportation  company provides transportation services; or(B) the gasoline or diesel fuel is used in a vehicle  for any purpose other than providing transportation services for a  Texas public school district.(2) A commercial transportation company that forfeits  its right to purchase gasoline or diesel fuel tax-free under paragraph  (1) of this subsection must return to the comptroller the original  and all copies of the letter of exception issued to the company under  subsection (b) of this section.(e) Cancellation or completion of contract. A commercial  transportation company shall report the total number of gallons of  tax-free gasoline and/or diesel fuel on hand in storage tanks and  in the fuel supply tanks of motor vehicles, and remit the tax due  on the ending tax-free inventory to the comptroller within five days  of the cancellation or completion of a contract with a Texas public  school district.(f) Charter trips. A commercial transportation company  that charters round-trip transportation to special events for a Texas  public school district may claim a refund for the gasoline, diesel  fuel, compressed natural gas, or liquefied natural gas used in the  charter vehicle.(1) The refund shall be computed by starting the trip  with a full fuel supply tank or tanks, maintaining records of the  fuel delivered into the fuel supply tank or tanks of the vehicle during  the trip, and filling the fuel supply tank or tanks upon arrival back  at the origination point. The number of gallons delivered into the  fuel supply tank or tanks after the start of the trip will be the  number of gallons upon which the charter company may claim a tax refund.(2) The records required by subsection (c)(5) of this  section shall also be maintained for each charter trip.(3) The commercial transportation company shall keep  a copy of the billing to the school district for the trip.(g) Refunds.(1) A commercial transportation company providing transportation  services to a Texas public school district may file a claim for refund  of state taxes paid on gasoline, diesel fuel, compressed natural gas,  or liquefied natural gas used exclusively for such transportation  purposes.(2) A metropolitan rapid transit authority operating  under Transportation Code, Chapter 451, that is party to a contract  governed by Education Code, §34.008, and that is providing transportation  services to a Texas public school district may file a claim for refund  of state taxes paid on gasoline, diesel fuel, compressed natural gas,  or liquefied natural gas used for such transportation services.(A) A claim for refund must contain the following information  by month for each vehicle used to provide public student transportation: (i) total miles traveled, evidenced by odometer or  hubometer readings and total miles traveled on public school transportation  routes;(ii) hours of service;(iii) total fuel consumed;(iv) total number of student passengers per route;(v) total number of non-student passengers per route;  and(vi) records required by Tax Code, §§162.127,  162.229, and 162.367.(B) A claim for refund cannot be made for a single  route in any month of a school year in which the number of non-student  passengers for that single route is greater than 5.0% of the total  passengers for that single route.(C) The gallons of gasoline, diesel fuel, compressed  natural gas, or liquefied natural gas eligible for refund in a qualifying  month for each vehicle is determined by multiplying the vehicle's  average miles-per-gallon for that month by the miles traveled for  public school transportation during that month.Attached Graphic",
            "sourceNote": "Source Note: The provisions of this §3.448 adopted\r\nto be effective September 2, 2004, 29 TexReg 8374; amended to be effective\r\nNovember 27, 2007, 32 TexReg 8521; amended to be effective November\r\n19, 2014, 39 TexReg 9051; amended to be effective January 27, 2016,\r\n41 TexReg 684."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187573&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "187573",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "T",
                "label": "MANUFACTURED HOUSING SALES AND USE TAX"
            },
            "rule": {
                "number": "§3.481",
                "label": "Imposition and Collection of Manufactured Housing Tax"
            },
            "nextRule": {
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                "recordId": "184195",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Charitable or eleemosynary organization--A nonprofit organization devoting all or substantially all of its activities to the alleviation of poverty, disease, pain, and suffering by providing food, clothing, drugs, treatment, shelter, or psychological counseling directly to indigent or similarly deserving members of society with its funds derived primarily from sources other than fees or charges for its services. If the organization engages in any substantial activity other than the activities described in this section, it will not be considered as having been organized for purely public charity, and therefore, will not qualify for exemption under this section. No part of the net earnings of the organization may inure to the benefit of any private party or individual other than as reasonable compensation for services rendered to the organization. Some examples of organizations that do not meet the requirements for exemption under this definition are fraternal organizations, lodges, fraternities, sororities, service clubs, veterans groups, mutual benefit or social groups, professional groups, trade or business groups, trade associations, medical associations, chambers of commerce, and similar organizations. Even though not organized for profit and performing services which are often charitable in nature, these types of organizations do not meet the requirements for exemption under this section.(2) Educational organization--A nonprofit organization or governmental entity whose activities are devoted solely to systematic instruction, particularly in the commonly accepted arts, sciences, and vocations, and which has a regularly scheduled curriculum, using the commonly accepted methods of teaching, a faculty of qualified instructors, and an enrolled student body or students in attendance at a place where the educational activities are regularly conducted. An organization that has activities consisting solely of presenting discussion groups, forums, panels, lectures, or other similar programs, may qualify for exemption under this section, if the presentations provide instruction in the commonly accepted arts, sciences, and vocations. The organization will not be considered for exemption under this section if the systematic instruction or educational classes are incidental to some other facet of the organization's activities. No part of the net earnings of the organization may inure to the benefit of any private party or individual other than as reasonable compensation for services rendered to the organization. Some examples of organizations that do not meet the requirements for exemption under this definition are professional associations, business leagues, information resource groups, research organizations, support groups, home schools, and organizations that merely disseminate information by distributing printed publications. Entities that are defined in Education Code, §61.003, as \"institutions of higher education\" are recognized for exemption under this section. Included in the definition of \"institutions of higher education\" are state and private universities and colleges.(3) Exempt use--A use to promote the purpose for which an exempt organization was created.(4) House trailer--A trailer designed for human habitation, including a park model as defined in this section. The term does not include mobile offices as defined in §3.306 of this title (relating to Sales of Mobile Offices, Oilfield Portable Units, Portable Buildings, Prefabricated Buildings, and Ready-Built Homes); manufactured homes as defined in this section; or portable buildings, prefabricated buildings, and ready-built homes, as defined in §3.306 of this title.(5) HUD-code manufactured home--A structure constructed on or after June 15, 1976, according to the rules of the United States Department of Housing and Urban Development; transportable in one or more sections, which in the traveling mode is eight body feet or more in width or 40 body feet or more in length, or when erected on site is 320 or more square feet; built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities; and which includes the plumbing, heating, air conditioning, and electrical systems.(6) Industrialized housing--A residential structure that is designed for the occupancy of one or more families; constructed in one or more modules, or one or more modular components built at a location other than the home site; designed to be used as a permanent residential structure when the module or the modular component is transported to the permanent site and erected or installed on a permanent foundation system; and that includes the structure's plumbing, heating, air conditioning, and electrical systems. Industrialized housing does not include a residential structure that exceeds three stories or 49 feet in height; housing constructed of a sectional or panelized system that does not use a modular component; or a ready-built home constructed in a manner in which the entire living area is contained in a single unit or section at a temporary location for the purpose of selling and moving the home to another location.(7) Manufactured home--A HUD-code manufactured home that has a label or decal issued by the U.S. Department of Housing and Urban Development and the Texas Department of Housing and Community Affairs permanently affixed to each section, industrialized housing that has a label or decal issued by the Texas Department of Licensing and Regulations permanently affixed to each module or modular component, or a mobile home. A manufactured home does not include a recreational vehicle, park model, or house trailer, as those terms are defined in this section. Further, the term does not include a structure designed as a residence and constructed since June 15, 1976, that lacks a label or decal issued by the U.S. Department of Housing and Urban Development and the Texas Department of Housing and Community Affairs or by the Texas Department of Licensing and Regulations permanently affixed to each section, module, or modular component.(8) Manufacturer--Any person who constructs or assembles manufactured housing for sale, exchange, or lease-purchase within this state.(9) Mobile home--A structure constructed before June 15, 1976; transportable in one or more sections, which in the traveling mode is eight body feet or more in width or 40 body feet or more in length, or when erected on site is 320 or more square feet; built on a permanent chassis; designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities; and that includes the plumbing, heating, air conditioning, and electrical systems.(10) New manufactured home--One that has not been subject to a retail sale.(11) Park model--A trailer designed to be used for human habitation, with or without a permanent foundation, when connected to the required utilities, and that:(A) is less than eight feet six inches in width and 45 feet in length in the traveling mode;(B) includes the plumbing, heating, air conditioning and electrical systems; and(C) is not required to be affixed with a label or decal issued by the U.S. Department of Housing and Urban Development and by the Texas Department of Housing and Community Affairs.(12) Person--An individual, partnership, company, corporation, association, or other group, however organized.(13) Recreational vehicle--A vehicle which is self-propelled or designed to be towed by a motor vehicle, but is not designed to be used as a permanent dwelling, and which contains plumbing, heating, and electrical systems that may be operated without connection to outside utilities. Examples include, but are not limited, to travel trailers, camper trailers, and motor homes. For information on the taxability of recreational vehicles, see §3.72 of this title (relating to Trailers, Farm Machines, and Timber Machines).(14) Religious organization--A nonprofit organization that is an organized group of people regularly meeting for the primary purpose of holding, conducting and sponsoring religious worship services, according to the rites of their sect. The organization must be able to provide evidence of an established congregation showing that there is an organized group of people regularly attending these services. An organization that supports and encourages religion as an incidental part of its overall purpose, or one whose general purpose is furthering religious work or instilling its membership with a religious understanding, will not qualify for exemption under this section. No part of the net earnings of the organization may inure to the benefit of any private party or individual other than as reasonable compensation for services rendered to the organization. Some examples of organizations that do not meet the requirements for exemption under this definition are conventions or associations of churches, evangelistic associations, churches with membership consisting of family members only, missionary organizations, and groups who meet for the purpose of holding prayer meetings, bible study, or revivals.(15) Retail sale--Sale to a consumer as opposed to a sale to a retailer for resale or for further processing and resale.(16) Retailer--Any person engaged in the business of buying for resale, selling, or exchanging manufactured homes or offering them for sale, exchange, or lease-purchase to consumers, including a person who maintains a location for the display of manufactured homes. No person will be considered a retailer unless engaged in the sale, exchange, or lease-purchase of two or more manufactured homes to consumers in any consecutive 12-month period.(17) Sales price--The total amount to be paid, as set forth in the invoice or bill of sale, excluding any separately stated shipping, freight, or delivery charges from the manufacturer to the retailer or other person.(18) Use--The exercise of any right or power over a manufactured home incident to its ownership, including the sale, lease, or rental, or the incorporation of any manufactured home into real estate or into improvements on real estate.(19) Used manufactured home--One that has been subject to a retail sale.(b) Imposition of tax.(1) The manufactured housing sales tax is due on all new manufactured homes sold or consigned by a manufacturer to a retailer or other person in this state.(A) Invoices for all new manufactured homes sold by manufacturers must set forth the amount of tax imposed at the rate of 5.0% of 65% of the sales price (equivalent to 3.25% of the sales price).(B) The manufacturer must report and pay the tax to the comptroller on or before the last day of the month following the month in which the manufactured home was sold.(C) A manufactured home is presumed to be \"sold\" at the time the home is sold or consigned by the manufacturer to a retailer or other person in this state or is shipped to any point in this state for the use and benefit of any person.(2) Parts and accessories added to a manufactured home by the retailer. Limited sales or use tax is due on parts or accessories installed by a retailer in or on a manufactured home, pursuant to Tax Code, Chapter 151. For information on the taxability of parts and accessories added to a manufactured home, see §3.306(c) of this title.(3) Repair, remodeling, restoration, and maintenance of a manufactured home. The labor to repair, remodel, restore, or maintain a manufactured home may be subject to the limited sales and use tax, pursuant to Tax Code, Chapter 151. For more information, see §3.306(c) of this title.(c) Use tax.(1) Manufactured homes purchased outside Texas.(A) New manufactured homes. A use tax of 5.0% of 65% of the purchase price (equivalent to 3.25% of the purchase price) is due on a manufactured home that was purchased new outside of this state for use, occupancy, resale, or exchange in this state. The tax is to be paid by the person to whom or for whom the home was sold, shipped, or consigned. It is presumed that a manufactured home was not purchased for use or occupancy in this state if the purchaser has purchased the home at a retail sale at least one year prior to its being brought or shipped to this state.(B) Used manufactured homes. The use tax does not apply to a manufactured home that was purchased used at a retail sale outside of this state.(2) Manufactured homes purchased in this state.(A) New manufactured homes.(i) A use tax of 5.0% of 65% of the purchase price (equivalent to 3.25% of the purchase price) is imposed on a manufactured home that was purchased new in this state.(ii) The use tax is not due if the manufacturer has paid the sales tax on the home to this state. It will be presumed that the sales tax has been paid on a manufactured home sold, shipped, or consigned by the manufacturer to a retailer or other person in this state. The comptroller, the manufacturer, the retailer, and the user of the home may introduce evidence to establish whether or not the sales tax has been paid.(B) Used manufactured homes. The use tax does not apply to a manufactured home purchased used at retail in this state.(3) A credit equal to the amount of any legally imposed sales or use tax paid to another state on a manufactured home may be taken against the use tax imposed in this state.(4) The use tax imposed is to be paid directly to the comptroller by the person to whom or for whom the home was sold, shipped, or consigned. The use tax is due and payable by the last day of the month following the month after the home is sold, shipped, or consigned to a person in this state.(d) Interstate sales of manufactured housing.(1) A manufacturer engaged in business in this state but located outside this state must collect and remit to the comptroller the manufactured housing sales tax on the initial sale, shipment, or consignment of a manufactured home to a retailer or other person in this state.(2) The sales tax is not imposed on a manufactured home that is sold, shipped, or consigned to a retailer or other person when a manufacturer located in this state ships the home to a point outside this state by means of:(A) the facilities of the manufacturer; or(B) delivery by the manufacturer to a carrier for shipment under a bill of lading to a consignee at a location outside this state.(3) The sales tax is not imposed on a manufactured home that is sold to a retailer in this state for resale at retail to a resident of another state if the home is transported to and installed for occupancy on a home site located in another state.(A) This exemption does not apply if the home is titled or registered in this state or if the home is used for any purpose other than display prior to being transported outside of the state.(B) The manufacturer may accept an exemption certificate which has been properly completed and signed by the retailer and the consumer in compliance with subsection (e) of this section.(C) A retailer who has previously paid the sales tax imposed by this chapter to the manufacturer on a transaction exempt under this section may claim a credit or a refund from the manufacturer.(e) Exemption Certificates.(1) An exemption certificate may be issued by:(A) the United States;(B) any incorporated agency or instrumentality of the United States wholly owned by the United States or by a corporation wholly owned by the United States;(C) federal credit unions organized under 12 United States Code, §1768, federal land bank associations organized under 12 United States Code, §2098, or farm credit banks organized under 12 United States Code, §2023;(D) the State of Texas, its unincorporated agencies and instrumentalities;(E) any county, city, special district, or other political subdivision of the State of Texas, and any college or university created or authorized by the State of Texas;(F) nonprofit corporations formed under Local Government Code, Chapter 501, Provisions Governing Development Corporations or Health and Safety Code, Chapter 221, Health Facilities Development Act when purchasing items for their exclusive use and benefit. The exemption does not apply to items purchased by the corporation to be lent, sold, leased, or rented;(G) any organization created for religious, educational, charitable, or eleemosynary purposes, provided that such organization must have requested and been granted exempt status by the comptroller. In order to qualify for exempt status the organization must meet all of the following requirements:(i) An organization must be organized or formed solely to conduct one or more exempt activities. All documents necessary to prove the purpose for which an organization is formed will be considered when exempt status is sought.(ii) An organization must devote its operations exclusively to one or more exempt activities.(iii) An organization must dedicate its assets in perpetuity to one or more exempt activities.(iv) No profit or gain may pass directly or indirectly to any private shareholder or individual. All salaries or other benefits furnished officers and employees must be commensurate with the services actually rendered.(H) A resident of another state who purchases a new manufactured home from a retailer in this state for immediate transport, installation, and occupancy at a home site located outside of this state, provided the home:(i) has not been used by the retailer for any purpose other than display; and(ii) is not titled or registered in this state.(2) A manufacturer who accepts an exemption certificate in good faith is relieved of the responsibility for collecting the tax as required by Tax Code, §158.053. A retailer must submit to the manufacturer an exemption certificate which has been signed and completed by itself and the purchaser.(A) A retailer must keep a copy of the exemption certificate attached to the invoice or bill of sale transferring title to the purchaser.(B) The manufacturer must retain the original of the exemption certificate attached to the invoice or bill of sale.(3) Any person who issues an exemption certificate for a manufactured home and then uses the home for other than exempt use will be liable for the tax. The tax will be based on the selling price of the manufactured home to the person who issued the exemption certificate.(4) The exemption certificate must include:(A) names and addresses of the manufacturer, retailer, and purchaser;(B) a description of the manufactured home;(C) the address where the manufactured home will be installed;(D) reason for exemption; and(E) signatures of both the retailer and purchaser.(5) Form of an exemption certificate. An exemption certificate must be in substantially the form of a Texas Manufactured Housing Sales and Use Tax Exemption Certificate (Form 18-301). Copies of the exemption certificate are available at: https://comptroller.texas.gov/forms/18-301.pdf.",
            "sourceNote": "Source Note: The provisions of this §3.481 adopted to be effective December 6, 1996, 21 TexReg 11510; amended to be effective November 14, 2013, 38 TexReg 7971; amended to be effective February 11, 2018, 43 TexReg 582."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=184195&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "184195",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "U",
                "label": "PUBLIC UTILITY GROSS RECEIPTS TAX"
            },
            "rule": {
                "number": "§3.511",
                "label": "Tax Rate, Due Dates, Payments, Exclusions, and Auditing"
            },
            "nextRule": {
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Gross receipts--Includes receipts from charges for services, products, or commodities that are supplied or sold to an ultimate consumer. The tax assessment is not imposed on receipts derived from the sale of products or services that are purchased for resale. (2) Rate--Every compensation, tariff, charge, fare, toll, rental, and classification, or any of them demanded, observed, charged, or collected whether directly or indirectly by any public utility for any service, product, or commodity included in Texas Civil Statutes, Article 1446c, §2.0011(1) or §3.002(9), and  any rules, regulations, practices, or contracts affecting any compensation, tariff, charge, fare, toll, rental, or classification.(b) Tax rate. Each public utility within the jurisdiction of the Public Utility Commission is assessed a tax equal to one-sixth of 1.0% of its gross receipts from rates charged to the ultimate customers.  (c) Exclusions. Charges that represent taxes or assessments levied on a utility taxpayer and that are passed on to its customers, remain a part of the rate charged by the utility, and are receipts subject to the tax. However, taxes that are levied on the consumers and collected by utilities as agents for the taxing authority, are not receipts, and are not subject to the tax. (d) Due date. The  assessment imposed by Texas Civil Statutes, Article 1446c, §1.351, is due and payable, except as provided in subsection (f) of this section, on August 15 of each year. The payment and the report on the form prescribed by the Comptroller of Public Accounts will be considered timely if received by the comptroller or postmarked no later than midnight on August 15, except as provided in subsection (f)(1)-(3) of this section. The report due on August 15 of each year is for the reporting period of July 1 of the prior year through June 30 of the current year. (e) Quarterly filer. A taxpayer subject to the assessment may elect to make payments of the assessment on a quarterly basis, except as provided in subsection (f) of this section. An election to do so must be in writing and be  received by the comptroller at least 30 days prior to August 15. If an election is made, the assessment for the applicable quarters is due and payable as follows:Attached Graphic(f) Prepayment dates. A taxpayer subject to the assessment is required to prepay the assessment due for the years 1995, 1996, 1997, and 1998. The prepayments will be based on the taxpayer's estimate of its gross receipts for the next year. After the August 15, 1994, report, all taxpayers will be required to file annual reports. This subsection expires September 1, 1998. The required estimated assessment payments due for August 15, 1995, 1996, 1997, and 1998 reports are payable as follows:(1) 1995--50% by August 15, 1994, and 50% by February 15,  1995;(2) 1996--50% by August 15, 1995, and 50% by February 15, 1996;(3) 1997--50% by August 15, 1996, and 50% by February 15, 1997;(4) 1998--50% by August 15, 1997, and the remainder by August 15, 1998.(g) Prepayment calculation. The required estimated assessment payments will be determined in the following manner: (1) the estimated assessments due for the years 1995, 1996, 1997, and 1998 are equal to the assessment due for the previous annual report or previous four quarterly reports, whichever may apply, or the actual assessment due; and (2) any assessment amounts underpaid on assessments due on August 15, 1995, August 15, 1996, or August 15, 1997, must be paid by those  respective dates. Any assessment amounts overpaid shall be credited against the following assessments. (h) Penalties and interest. Penalties and interest may apply to the assessment and to the prepayment. (1) If the amount paid pursuant to subsections (f) and (g) of this section is less than the required estimated assessment amount, a penalty of 10% will accrue on the difference between the required estimated assessment amount and the amount actually remitted. (2) If a required estimated assessment payment is not timely, or no required estimated assessment payment is made, a 10% penalty will accrue on the required estimated assessment amount determined pursuant to subsections (f) and (g) of this section. (3) A  penalty of 10% will accrue on the additional assessment due, pursuant to subsection (g)(2) of this section, if not paid when the assessment is due. (4) All payments and reports postmarked, or received if not mailed, after the due date are late, and a penalty of 10% of the assessment is due. Amounts delinquent for more than 30 days shall draw interest at the rate of 12% per year on the assessment and penalty due. (i) Records. All taxpayers subject to the tax assessment imposed by Texas Civil Statutes, Article 1446c, must keep adequate records in order to accurately determine the amount of tax due and payable for a period of at least four years, and make the records available to the comptroller or his designated representative upon request. (j) Audits. Taxpayer accounts may be audited by authorized representatives of the Comptroller of Public Accounts at any time during regular business hours of the taxpayer. The audit will be performed by examining any records, books or other information which are maintained by the taxpayer. If the records are inadequate to accurately reflect the gross receipts subject to the tax assessment, the auditor will base the audit report on the best information available. (k) Assessment limitation. The Comptroller of Public Accounts may assess any unpaid tax assessment within four years after the date the assessment was due and payable.",
            "sourceNote": "Source Note: The provisions of this §3.511 adopted to be effective December 5, 1996, 21 TexReg 11510."
        },
        {
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            "currentRecordId": "181560",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "V",
                "label": "FRANCHISE TAX"
            },
            "rule": {
                "number": "§3.574",
                "label": "Margin: New Veteran-Owned Businesses"
            },
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                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Effective date. This section is effective January 1, 2016.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Beginning date--(A) For a taxable entity that qualifies as a new veteran-owned business, the earlier of:(i) the fifth anniversary of the date on which the taxable entity was chartered, organized, or otherwise formed in Texas; or(ii) the date the taxable entity ceases to qualify as a new veteran-owned business.(B) For example, if a qualifying entity files its certificate of formation with the secretary of state on June 1, 2016, and remains wholly-owned by honorably discharged veterans throughout its first five years of business, the entity becomes subject to franchise tax June 1, 2021. If one of the owners of this same new veteran-owned business sells his or her ownership percentage to anyone other than a qualifying veteran on December 31, 2017, the entity no longer qualifies as a new veteran-owned business and becomes subject to franchise tax January 1, 2018.(2) Letter of Verification of Veteran's Honorable Discharge--A letter issued by the Texas Veterans Commission, upon request by a veteran, verifying the honorable discharge of the veteran.(3) New business--A taxable entity that is chartered, organized, or otherwise formed in Texas on or after January 1, 2016, and before January 1, 2020.(4) New veteran-owned business--A taxable entity that is a new business in which each owner is a natural person who:(A) served in and was honorably discharged from a branch of the United States armed forces; and(B) provides verification to the comptroller of the person's service and discharge, as required by subsection (d) of this section.(c) Tax not imposed. The franchise tax is not imposed on a taxable entity that qualifies as a new veteran-owned business until the earlier of:(1) the fifth anniversary of the date on which the taxable entity was chartered, organized, or otherwise formed in Texas; or(2) the date the taxable entity ceases to qualify as a new veteran-owned business.(d) Verification. A taxable entity that qualifies as a new veteran-owned business must verify that it is owned entirely by qualifying veterans.(1) Required documents. A taxable entity must submit the following documents as required in paragraph (2) of this subsection:(A) a \"Letter of Verification of Veteran's Honorable Discharge\" from the Texas Veterans Commission for each owner of the business; and(B) comptroller Form 05-904, Certification of New Veteran-Owned Business, or any successor to the form promulgated by the comptroller.(2) Submission. A taxable entity must submit the required documents identified in paragraph (1) of this subsection to the:(A) secretary of state, if the taxable entity is formed with the secretary of state on or after January 1, 2016; or(B) comptroller, along with the appropriate comptroller franchise tax questionnaire, if necessary, if the taxable entity is not required to file a certificate of formation with the secretary of state.(e) Reporting requirement for a new veteran-owned business. A taxable entity that meets all of the qualifications of a new veteran-owned business is required to file a No Tax Due Report for each reporting period that the franchise tax is not imposed on the taxable entity.(1) A qualifying new veteran-owned business that fails to file a No Tax Due Report as required shall pay a penalty of $50 under Tax Code, §171.362(f).(2) A qualifying new veteran-owned business may not file with a combined group for each reporting period that the franchise tax is not imposed.(3) A qualifying new veteran-owned business is not required to file a Public Information Report or an Ownership Information Report for each reporting period that the franchise tax is not imposed.(f) Beginning date upon withdrawal of federal tax exemption. A qualifying new veteran-owned business that is exempt from franchise tax under Tax Code, §171.063 (Exemption for a Non-profit Corporation Exempt from Federal Income Tax) and subsequently has its federal tax exemption withdrawn by the Internal Revenue Service for failure to qualify or maintain its qualification for the exemption has a beginning date:(1) as provided in subsection (b)(1) of this section if:(A) in the absence of the federal tax exemption, the franchise tax would not have been imposed on the taxable entity under subsection (c) of this section; and(B) the effective date of the withdrawal is before the beginning date determined under subsection (b)(1) of this section; or(2) that is the effective date of the withdrawal, if either paragraph (1)(A) or (B) of this subsection does not apply.(g) Expiration. The provisions of this section expire January 1, 2020; however, a business that first qualifies as a new veteran-owned business before January 1, 2020, continues to qualify as a new veteran-owned business as provided by this section.",
            "sourceNote": "Source Note: The provisions of this §3.574 adopted to be effective December 20, 2016, 41 TexReg 9938."
        },
        {
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            "currentRecordId": "134546",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "V",
                "label": "FRANCHISE TAX"
            },
            "rule": {
                "number": "§3.581",
                "label": "Margin: Taxable and Nontaxable Entities"
            },
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            "ruleBody": "(a) Effective date. The provisions of this section apply to franchise tax reports originally due on or after January 1, 2008.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Banking corporation--Each state, national, domestic, or foreign bank, whether organized under the laws of this state, another state, or another country, or under federal law, including a limited banking association organized under Finance Code, Title 3, Subtitle A, and each bank organized under §25(a), Federal Reserve Act (12 U.S.C. §§611 - 631) (edge corporations), but does not include a bank holding company as that term is defined by Bank Holding Company Act of 1956, §2, (12 U.S.C. §1841).(2) Business trust--An entity as defined by Internal Revenue Code, Treasury Regulation, §301.7701-4(b).(3) Corporation--An entity formed pursuant to Business Corporation Act, Non-Profit Corporation Act, Professional Corporation Act, or Business Organizations Code, Title 2 or 7, or other equivalent statute of this state or of another jurisdiction.(4) Escrow--A legal arrangement whereby an asset is delivered to a third party to be held in trust or otherwise pending a contingency or the fulfillment of a condition or conditions in a contract.(5) Estate of a natural person--An entity as defined by Internal Revenue Code, §7701(a)(30)(D), excluding an estate taxable as a business entity pursuant to Internal Revenue Code, Treasury Regulation, §301.7701-4(b). An estate of a natural person shall include a trust that makes an election under Internal Revenue Code, §645 to be treated and taxed as part of an estate for federal income tax purposes.(6) General partnership--A partnership as described in Revised Partnership Act, Article 6132b-1.01 et. seq., or Business Organizations Code, Title 4, Chapter 152, or an equivalent statute in another jurisdiction.(7) Grantor trust--A trust as defined by Internal Revenue Code, §671 and §7701(a)(30)(E), excluding a trust taxable as a business entity pursuant to Treasury Regulation, §301.7701-4(b).(8) Holding company--An entity that confines its activities to owning stock in, and supervising management of, other companies.(9) Joint stock company--A common-law unincorporated business enterprise of natural persons possessing common capital with ownership interests represented by shares of stock.(10) Joint Venture--A partnership engaged in the joint prosecution of a particular transaction for mutual profit.(11) Limited liability company--An entity formed pursuant to Limited Liability Company Act, Article 1528n, or Business Organizations Code, Title 3 or 7, or an equivalent statute in another jurisdiction.(12) Limited liability partnership--A partnership registered pursuant to Revised Partnership Act, Article 6132b-3.08, or Business Organizations Code, Title 4, Chapters 152 and 153, Subchapter H, or an equivalent statute in another jurisdiction.(13) Limited partnership--A partnership formed pursuant to Revised Partnership Act, Article 6132a-1 or Business Organizations Code, Title 4, Chapter 153, or an equivalent statute in another jurisdiction.(14) Natural person--A human being or the estate of a human being. The term does not include a purely legal entity given recognition as the possessor of rights, privileges, and responsibilities, such as a corporation, limited liability company, partnership, or trust.(15) Partnership--A relationship referred to in Business Organizations Code, §152.051, and Revised Partnership Act, Article 6132b-2.02.(16) Passive entity--A general or limited partnership or trust other than a business trust that meets the qualifications in Tax Code, §171.0003. See also §3.582 of this title (relating to Margin: Passive Entities).(17) Professional association--An entity organized under Professional Association Act, Article 1528e, or Business Organizations Code, Title 7, Chapter 302, or an equivalent statute in another jurisdiction.(18) Qualified REIT subsidiary--An entity as defined by Internal Revenue Code, §856(i)(2).(19) Real Estate Investment Trust or REIT--An entity as defined by Internal Revenue Code, §856.(20) Real Estate Mortgage Investment Conduit or REMIC--An entity as defined by Internal Revenue Code, §860D.(21) Savings and loan association--A savings and loan association or savings bank, whether organized under the laws of this state, another state, or another country, or under federal law.(22) Self-insurance trust--A trust created and operated according to the provisions of Insurance Code, Chapter 2212, or a predecessor statute.(23) Sole proprietorship--A natural person carrying on business, if the business is not formed in a manner that limits the liability of the owner. It does not include other entities treated as sole proprietorships for federal tax purposes, unless by statute the form of entity does not afford limited liability protection to the owner and it does not include single member limited liability companies.(c) Taxable entities include:(1) partnerships, both general and limited, unless excluded in subsection (d)(2) of this section;(2) limited liability partnerships;(3) corporations;(4) banking corporations;(5) savings and loan associations;(6) limited liability companies;(7) business trusts;(8) professional associations;(9) business associations;(10) joint ventures, except joint operating or co-ownership arrangements meeting the requirements of Treasury Regulation 1.761-2(a)(3) that elect out of federal partnership treatment as provided by Internal Revenue Code, §761(a);(11) joint stock companies;(12) holding companies;(13) combined groups (also see §3.590 of this title (relating to Margin: Combined Reporting)); and(14) other legal entities.(d) Nontaxable entities. The following entities are specifically excluded from the definition of taxable entities for purposes of imposition of the franchise tax:(1) sole proprietorships (does not include single member limited liability companies);(2) general partnerships where direct ownership is composed entirely of natural persons, and the liability of those persons is not limited (e.g. by registration as a limited liability partnership) under a statute of this state or another state;(3) passive entities, as determined on a year to year basis (also see §3.582 of this title);(4) entities exempt under Chapter 171, Subchapter B;(5) grantor trusts, all of the grantors and beneficiaries of which are natural persons or charitable entities as described in Internal Revenue Code, §501(c)(3);(6) estates of a natural person;(7) escrows;(8) REITs or qualified REIT subsidiaries provided that:(A) the REIT holds interests in limited partnerships or other entities that are taxable entities and directly hold real estate; and(B) the REIT does not directly hold real estate, other than real estate it occupies for business purposes; or(9) REMICs;(10) nonprofit self-insurance trusts;(11) trusts qualified under Internal Revenue Code, §401(a); or(12) trusts or other entities that are exempt under Internal Revenue Code, §501(c)(9).(e) Single member limited liability company. An entity treated as a sole proprietorship for federal tax purposes is not a sole proprietorship for the purposes of this rule if it is formed in a manner that limits the liability of its owners or members.",
            "sourceNote": "Source Note: The provisions of this §3.581 adopted to be effective January 1, 2008, 32 TexReg 10013."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=178634&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "178634",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "V",
                "label": "FRANCHISE TAX"
            },
            "rule": {
                "number": "§3.582",
                "label": "Margin: Passive Entities"
            },
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            "ruleBody": "(a) Effective Date. The provisions of this section apply to franchise tax reports originally due on or after January 1, 2008, unless otherwise provided.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise:(1) Active trade or business--For the purposes of this section only:(A) an entity conducts an active trade or business if the activities include active operations that form a part of the process of earning income or profit, and the entity performs active management and operational functions;(B) activities performed by the entity include activities performed by persons outside the entity, including independent contractors, to the extent that the persons perform services on behalf of the entity and those services constitute all or part of the entity's trade or business; or(C) an entity conducts an active trade or business if assets, including royalties, patents, trademarks, and other intangible assets, held by the entity are used in the active trade or business of one or more related entities.(2) Business trust--An entity as defined by Internal Revenue Code, Treasury Regulation, §301.7701-4(b).(3) Federal gross income--Income that is reported on the entity's federal income tax return, to the extent the amount reported complies with federal income tax law.(4) General partnership--A partnership as described in Revised Partnership Act, Article 6132b-1.01 et. seq., or Business Organizations Code, Title 4, Chapter 152, or an equivalent statute in another jurisdiction.(5) Limited liability partnership--A partnership registered pursuant to Revised Partnership Act, Article 6132b-3.08, or Business Organizations Code, Title 4, Chapters 152 and 153, Subchapter H, or an equivalent statute in another jurisdiction.(6) Limited partnership--A partnership formed pursuant to Revised Partnership Act, Article 6132a-1, or Business Organizations Code, Title 4, Chapter 153, or an equivalent statute in another jurisdiction.(7) Net capital gains--Net capital gains as defined under the Internal Revenue Code.(8) Net gains--Net gains as defined under the Internal Revenue Code.(9) Non-controlling interest--For the purposes of this section only, an interest that is less than or equal to 50% that is held by an investor, either directly or indirectly, in an investee.(10) Security--(A) an instrument defined by Internal Revenue Code, §475(c)(2), where the holder of the instrument has a non-controlling interest in the issuer/investee;(B) an instrument described by Internal Revenue Code, §475(e)(2)(B), (C), (D);(C) an interest in a partnership where the investor has a non-controlling interest in the investee;(D) an interest in a limited liability company where the investor has a non-controlling interest in the investee; or(E) a beneficial interest in a trust where the investor has a non-controlling interest in the investee.(c) Qualification as a passive entity. To qualify as a passive entity:(1) the entity must be one of the following for the entire period on which the tax is based:(A) general partnership;(B) limited partnership;(C) limited liability partnership; or(D) trust, other than a business trust; and(2) at least 90% of an entity's federal gross income for the period on which margin is based must consist of the following sources of income:(A) dividends, interest, foreign currency exchange gain, periodic and nonperiodic payments with respect to notional principal contracts, option premiums, cash settlements or termination payments with respect to a financial instrument, and income from a limited liability company;(B) distributive shares of partnership income to the extent that those distributive shares of income are greater than zero;(C) net capital gains from the sale of real property, net gains from the sale of commodities traded on a commodities exchange, and net gains from the sale of securities; and(D) royalties from mineral properties, bonuses from mineral properties, delay rental income from mineral properties and income from other nonoperating mineral interests including nonoperating working interests not described in subsection (d)(2) of this section.(3) An entity with no federal gross income does not qualify as a passive entity under paragraph (2) of this subsection.(d) The income described by subsection (c)(2) of this section, does not include:(1) rent; or(2) income received by a nonoperator from mineral properties under a joint operating agreement if the nonoperator is a member of an affiliated group and another member of that group is the operator under the same joint operating agreement.(e) Conducting an active trade or business. To be considered a passive entity, an entity may not receive more than 10% of its federal gross income for the period on which margin is based from conducting an active trade or business. Income described by subsection (c)(2) of this section, may not be treated as income from conducting an active trade or business.(f) Activities that do not constitute an active trade or business:(1) ownership of a royalty interest or a nonoperating working interest in mineral rights;(2) payment of compensation to employees or independent contractors for financial or legal services reasonably necessary for the operation of the entity; and(3) holding a seat on the board of directors of an entity does not, by itself, constitute conduct of an active trade or business.(g) Reporting requirement for passive entities. If an entity meets all of the qualifications in subsection (c) of this section for the period upon which the franchise tax is based, the entity owes no tax; however, the entity may be required to file a No Tax Due Report subject to the following paragraphs:(1) Passive entities registered or required to be registered. A partnership or trust that qualifies as a passive entity for the period upon which the franchise tax is based, and is registered or required to be registered with the comptroller's office or with the secretary of state's office, is required to file a No Tax Due Report with the comptroller's office.(2) Passive entities not registered or otherwise required to be registered. A partnership or trust that qualifies as a passive entity for the period upon which the franchise tax report is based, and is not registered or otherwise required to be registered with the comptroller's office or with the secretary of state's office, is not required to file a No Tax Due Report with the comptroller's office.(3) Information Report. An entity that qualifies as a passive entity is not required to file a Public Information Report or an Ownership Information Report with the comptroller's office; however, a limited partnership that qualifies as a passive entity may be required to file a periodic report with the secretary of state's office. For more information, see Business Organization Code, Title 4, Chapter 153, Subchapter G.(h) Unregistered entities that no longer qualify as passive. A passive entity that is not registered with the comptroller's office or with the secretary of state's office and that no longer qualifies as passive, must register with the comptroller's office and begin filing annual franchise tax reports.(1) For the periods that the entity does not qualify as passive, see §3.584 of this title (relating to Margin: Reports and Payments).(2) For periods that the entity subsequently qualifies as passive, see subsection (g)(1) of this section.(i) Response to notification required. If a passive entity receives notification in writing from the comptroller asking if the entity is taxable, the entity must reply to the comptroller within 30 days of the notice.",
            "sourceNote": "Source Note: The provisions of this §3.582 adopted to be effective January 1, 2008, 32 TexReg 10015; amended to be effective December 31, 2009, 34 TexReg 9464; amended to be effective June 28, 2016, 41 TexReg 4649."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182477&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
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            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
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                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "V",
                "label": "FRANCHISE TAX"
            },
            "rule": {
                "number": "§3.583",
                "label": "Margin: Exemptions"
            },
            "nextRule": {
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            "ruleBody": "(a) Effective date. This section applies to franchise tax reports originally due on or after January 1, 2008, except as otherwise noted.(b) Application for exemption. An entity that has not previously established an exemption from franchise tax with the comptroller must apply for an exemption. An entity that is not a corporation, but whose activities would qualify it for a specific exemption under Tax Code, Chapter 171, Subchapter B, if it were a corporation, may qualify for the exemption from the tax in the same manner and under the same conditions as a corporation. See Tax Code, §171.088 (Exemption--Noncorporate Entity Eligible for Certain Exemptions). For provisional exemptions for certain entities, see subsection (i) of this section; for trade show exemptions, see subsection (j) of this section.(1) An entity that believes it is exempt from franchise tax must furnish to the comptroller sufficient evidence to establish its exempt status. The entity claiming the exemption bears the burden to establish its entitlement to exempt status and any doubts will result in a denial of the application for exemption.(2) Except as otherwise provided in subsections (f), (i), (j), and (n) of this section, each entity must submit to the comptroller:(A) a request for exemption in writing, which may require using forms developed by the comptroller for requesting exemptions, indicating the particular provision of Tax Code, Chapter 171, under which exemption is claimed;(B) a detailed statement of both the entity's past and current activities, if any, and its future plan of activities, each in relation to the manner in which the entity proposes to implement the purposes clause in its certificate of formation or application for registration;(C) an entity formed or created under Texas law whose articles of organization or formation is on file with the Texas Secretary of State need not submit copies of those documents with its request for exemption. A Texas entity that is not required to file organizational documents with the Texas Secretary of State must furnish a signed and dated copy of its organizational documents with its exemption request. If a non-Texas entity is required to file articles of organization or formation with its home jurisdiction Secretary of State, or other designated agency or officer, the entity must provide file-stamped copies of those filed organizational or formation documents. If a non-Texas entity is not required to file its articles of organization with the Secretary of State or other authority of its home jurisdiction, it must furnish a signed and dated copy of its organizational or formation documents with its exemption request; and(D) any additional information the comptroller may require to make a determination whether the entity is eligible for a franchise tax exemption.(c) Actions by comptroller. Upon receipt of an application for exemption, the comptroller's representative will review the application and send the applicant a notification either granting the exemption or denying the exemption, or requesting additional information.(1) If the exemption is granted, the exemption will be effective from the first date the entity was eligible for exemption. If the entity paid any franchise taxes prior to the comptroller's notification granting the exemption for a privilege period after the effective date of the exemption, the entity may request a refund, subject to the applicable statute of limitations. If the effective date of the exemption occurs after the beginning of a privilege period, the entity must pay through the end of such privilege period. An entity that has been subject to the tax and becomes eligible for exemption is liable for the additional tax under Tax Code, §171.0011 (Additional Tax).(2) If the exemption is denied or revoked, the entity may contest the denial or revocation by filing all reports due as required by the comptroller; and(A) paying all amounts of tax, penalty, and interest due and requesting a refund hearing pursuant to the provisions of Tax Code, Chapter 111 (Collection Procedures);(B) paying all amounts of tax, penalty, and interest due, accompanying the payment with a written protest, and filing suit for the recovery of amounts paid pursuant to the provisions of Tax Code, Chapter 112 (Taxpayers' Suits); or(C) requesting a redetermination hearing pursuant to Tax Code, §111.009 (Redetermination), if the comptroller issues a deficiency or jeopardy determination.(d) Qualification for exemption.(1) Entity subject to insurance premium taxes.(A) Insurance organization authorized to do business in this state. An insurance, surety, guaranty, fidelity or title insurance company, title insurance agent, or other insurance organization authorized to engage in insurance business in this state, that is required to pay an annual tax measured by its gross premium receipts is exempt from payment of the franchise tax, regardless of whether any gross premiums taxes are actually paid in any given year.(B) Insurance organization not authorized to do business in this state (non-admitted insurance organization). A non-admitted insurance organization required to pay a gross premium receipts tax during a tax year is exempted from the franchise tax for the same tax year. A non-admitted insurance organization that is subject to an occupation tax or any other tax that is imposed for the privilege of doing business in another state or foreign jurisdiction, including a tax on gross premium receipts, is exempted from the franchise tax.(C) Period covered. The exemption in this paragraph covers the periods upon which the franchise tax is based, provided the gross premium receipts tax is required to be paid on premiums received or written, as applicable, during the same period. For example, an insurance organization's gross premium receipts tax is due and payable on March 1, 2009, for premiums received during calendar year 2008. The entity would be exempt from franchise tax for the 2009 annual report covering the January 1, 2009 - December 31, 2009, privilege period, for margin attributable to calendar year 2008. An entity is subject to the franchise tax, however, for a tax year in any portion of which it is in violation of an order issued by the Texas Department of Insurance under Insurance Code, §2254.003(b) (Refund or Discount Based on Excessive or Unfairly Discriminatory Premium Rates), that is final after appeal or that is no longer subject to appeal.(2) Nonprofit entity organized to promote county, city, or another area. A nonprofit entity organized for the exclusive purpose of promoting the public interest of any county, city, town, or other area within the state, must show that promotion of the public interest is the exclusive purpose of the entity and not merely an incidental result. An entity will not be considered to be promoting the public interest if it engages in activities to promote or protect the private, business, or professional interests of its members or patronage.(3) Nonprofit entity organized for religious purposes. A nonprofit entity seeking franchise tax exemption as a religious organization must be an organized group of people regularly meeting for the primary purpose of holding, conducting, and sponsoring religious worship services according to the rites of their sect. The entity must be able to provide evidence of an established congregation showing that there is an organized group of people regularly attending these services. An entity that supports and encourages religion as an incidental part of its overall purpose, or one whose general purpose is furthering religious work or instilling its membership with a religious understanding, will not qualify for exemption under this provision. No part of the net earnings of the organization may inure to the benefit of any private party or individual other than as reasonable compensation for services rendered to the organization. Some examples of entities that do not meet the requirements for exemption under this definition are conventions or associations of churches, evangelistic associations, churches with membership consisting of family members only, missionary organizations, and groups that meet for the purpose of holding prayer meetings, Bible study or revivals. Although these organizations do not qualify for exemption under this category of exemption as religious organizations, they may qualify for the exemption under Tax Code, §171.063 (Exemption-Nonprofit Corporation Exempt from Federal Income Tax), if they obtain an exemption from the Internal Revenue Service (IRS) under Internal Revenue Code (IRC), §501(c).(4) Nonprofit entity organized for public charity. A nonprofit entity seeking a franchise tax exemption as organized for purely public charity must devote all or substantially all of its activities to the alleviation of poverty, disease, pain, and suffering by providing food, clothing, drugs, treatment, shelter, or psychological counseling directly to indigent or similarly deserving members of society with its funds derived primarily from sources other than fees or charges for its services. If an entity engages in any substantial activity other than the activities that are described in this paragraph, it will not be considered as having been organized for purely public charity, and therefore, will not qualify for exemption under this provision. No part of the net earnings of the organization may inure to the benefit of any private party or individual other than as reasonable compensation for services rendered to the organization. Some examples of organizations that do not meet the requirements for exemption under this definition are fraternal organizations, lodges, fraternities, sororities, service clubs, veterans groups, mutual benefit or social groups, professional groups, trade or business groups, trade associations, medical associations, chambers of commerce, and similar organizations. Even though not organized for profit and performing services that are often charitable in nature, these types of organizations do not meet the requirements for exemption under this provision. Although these organizations do not qualify for exemption under this category of exemption as charitable organizations, they may qualify for the exemption under Tax Code, §171.063, if they obtain an exemption from the IRS under IRC, §501(c).(5) Nonprofit entity organized for educational purposes. A nonprofit entity seeking a franchise tax exemption as an educational organization must show that its activities are devoted solely to systematic instruction, particularly in the commonly accepted arts, sciences, and vocations, and has a regularly scheduled curriculum, using the commonly accepted methods of teaching, a faculty of qualified instructors, and an enrolled student body or students in attendance at a place where the educational activities are regularly conducted. An entity that has activities consisting solely of presenting public discussion groups, forums, panels, lectures, or other similar programs, may qualify for exemption under this provision, if the presentations provide instruction in the commonly accepted arts, sciences, and vocations. The entity will not be considered for exemption under this provision if the systematic instruction or educational classes are incidental to some other facet of the organization's activities. No part of the net earnings of the organization may inure to the benefit of any private party or individual other than as reasonable compensation for services rendered to the organization. Some examples of organizations that do not meet the requirements for exemption under this definition are professional associations, business leagues, information resource groups, research organizations, support groups, home schools, and organizations that merely disseminate information via tangible or electronic media. Although these organizations do not qualify for exemption under this category of exemption as educational organizations, they may qualify for the exemption under Tax Code, §171.063, if they obtain an exemption from the IRS under IRC, §501(c).(6) Certain homeowners' associations. A nonprofit entity requesting franchise tax exemption as a homeowners' association must prove that it meets all requirements to qualify for the exemption. The entity must show that it is organized and operated to obtain, manage, construct, and maintain the property in or of a residential condominium or residential real estate development. The entity also must prove that the condominium project, or, for a real estate development, the related property, is legally restricted for use as residences. Furthermore, the entity must establish that the collective resident owners of individual lots, residences or units control at least 51% of the votes of the entity and that voting control, however acquired, is not held by: a single individual or family; one or more developers, declarants, banks, investors, or other similar parties. For example, an association is formed for a residential condominium consisting of 12 units with each unit being entitled to one vote. Each of five individuals separately owns and occupies one unit, a total of five units. A sixth individual owns two units, living in one unit and leasing the other. A seventh individual owns and leases the remaining five units. None of the owners are related. In determining whether the collective resident owners control at least 51% of the votes of the organization, the sixth owner is a resident owner regarding the one unit in which the owner lives and an investor regarding the other. The collective resident owners, therefore, have a total of six votes. Consequently, since the collective resident owners only have 50% of the votes of the entity, the association does not meet the requirement that the resident owners must control at least 51% of the votes of the organization. Accordingly, the entity does not qualify for the franchise tax exemption as a homeowners' association.(e) Revocation, withdrawal, or loss of exemptions.(1) An entity that no longer qualifies for the franchise tax exemption is required to notify the comptroller in writing of its change in status. Except as provided in paragraph (2) of this subsection, if at any time the comptroller has reason to believe that an exempt entity no longer qualifies for exemption, the comptroller's representative will notify the entity that its exempt status is under review. The comptroller's representative may request additional information necessary to ascertain the continued validity of the entity's exempt status. If the comptroller determines that an entity is no longer entitled to its exemption, notification to that effect will be sent to the entity. The effective date of revocation is the date the entity no longer qualified for the exemption. The day immediately following the date of withdrawal, loss, or revocation shall be the beginning date for determining the entity's privilege period and for all other purposes related to franchise tax.(2) For nonprofit entities granted an exemption under Tax Code, §171.063, the revocation, withdrawal, or loss of the federal income tax exemption automatically terminates the franchise tax exemption. A nonprofit entity that no longer qualifies for the federal income tax exemption which was the basis for obtaining the franchise tax exemption must notify the comptroller in writing within 30 days of its change in status and must provide a copy of the notice of such revocation, withdrawal, or loss. The effective date of withdrawal or loss is the date of withdrawal or loss of the federal tax exemption. The effective date of a revocation is the date the IRS serves written notice of the revocation to the non-profit entity or the date the IRS serves written notice of revocation to the comptroller, whichever is earlier. The day immediately following the date of withdrawal, loss, or revocation shall be the entity's beginning date for determining its privilege periods and for all other purposes of the franchise tax.(3) An electric cooperative entity previously exempted from franchise tax under Tax Code, §171.079 (Exemption--Electric Cooperative Corporation), that subsequently participates in a joint powers agency thereby loses its franchise tax exemption. The commencing date of participation in the joint powers agency shall be considered the entity's beginning date for purposes of determining the entity's privilege periods and for all other purposes of the franchise tax. The electric cooperative must notify the comptroller in writing that it is a participant in a joint powers agency within 30 days after the commencing date of its participation.(f) Federal exemption. An entity meeting the requirements of any paragraph of this subsection establishes its exempt status by furnishing to the comptroller a copy of a current exemption letter from the IRS.(1) A nonprofit entity that has been exempted from federal income tax under the provisions of IRC, §501(c)(3) - (8), (10), (19); or(2) any entity that has been exempted from federal income tax under the provisions of IRC, §501(c)(2) or (25), if the entity or entities for which it holds title to property are either exempt from or not subject to the franchise tax; and(3) any entity that has been exempted from federal income tax under IRC, §501(c)(16).(g) Solar energy devices exemption. An entity engaged solely in the business of manufacturing, selling, or installing solar energy devices is exempted from the franchise tax. For purposes of this section, the term \"solar energy device\" includes, but is not limited to:(1) devices used in the conversion of solar thermal energy into electrical or mechanical power;(2) devices used in the photovoltaic (solar cell) generation of electricity;(3) systems used in the heating of water and the heating and cooling of structures by use of solar collectors to gather the sun's energy; and(4) heat pumps used as an integral part of a system designed to make the best combined use of solar energy and conventional heating.(h) Recycling operation exemption. An entity engaged solely in the business of recycling sludge is exempt from franchise tax. For purposes of this subsection, \"sludge\" means solid, semisolid, or liquid waste generated from a municipal, commercial, or industrial wastewater treatment plant, water supply treatment plant, or air pollution control facility, excluding the treated effluent from a wastewater treatment plant, as provided under Health and Safety Code, Chapter 361 (Solid Waste Disposal Act), §361.003 (Definitions).(i) Provisional exemptions.(1) If established with the comptroller, the following entities may be granted a temporary exemption from franchise tax:(A) a nonprofit entity that has applied for exemption from federal income tax under IRC, §501(c)(3) - (8), (10), (19); or(B) an entity that has applied for exemption from federal income tax under IRC, §501(c)(2) or (25), if the entity or entities for which it holds title to property is either exempt from or not subject to the franchise tax; and(C) an entity that has applied for exemption from federal income tax under IRC, §501(c)(16).(2) To obtain a temporary franchise tax exemption with the comptroller, an entity that has applied for but has not yet received a letter of exemption from the IRS must timely file, as provided in paragraph (6) of this subsection, with the comptroller:(A) a copy of the application for recognition of exemption that has been filed with the IRS; and(B) a copy of:(i) a written notice from the IRS stating that the application for recognition of exemption has been received; or(ii) a receipt as proof that the application has been sent to the IRS by means of the United States Postal Service, other carrier, or hand delivery to the IRS.(3) Paragraph (2)(A) and (B)(ii) of this subsection, applies only if the organization has filed its application for recognition of exemption during the 14th or 15th month after its beginning date. Beginning date means:(A) for an entity organized under the laws of this state, the date on which the entity's certificate of formation or other similar document takes effect; and(B) for a foreign entity, the date on which the entity begins doing business in this state.(4) If the information required in paragraph (2)(A) and (B)(i) of this subsection is provided in a timely manner, as provided in paragraph (6) of this subsection, a 90-day provisional franchise tax exemption will be granted.(5) An entity qualifying under paragraph (2)(A) and (B)(ii) of this subsection, will be granted a 90-day provisional exemption with the condition that a copy of the notice required in paragraph (2)(B)(i) of this subsection be provided to the comptroller within 30 days from the date of the letter notifying the entity of the provisional exemption. If the IRS notification is not provided within the 30-day period, the provisional exemption will be canceled. An entity whose provisional exemption is canceled will be subject to all tax, penalty, and interest that has accrued since the entity's beginning date.(6) The information necessary for obtaining a temporary franchise tax exemption will be considered to be provided to the comptroller in a timely manner if:(A) the application for recognition of exemption is provided to the IRS within their timely filing guidelines; and(B) the information required in paragraph (2)(A) and (B)(i) or (B)(ii) of this subsection, is postmarked within 15 months after the day that is the last day of a calendar month and that is nearest to the entity's beginning date.(7) Before the expiration of the 90-day provisional exemption, the entity must provide the comptroller a copy of the letter from the IRS showing that the decision on the federal exemption is still pending or stating that the federal exemption is either granted or denied.(8) If the comptroller is notified as required in paragraph (7) of this subsection, that the decision on the federal exemption is still pending, an extension of the provisional exemption may be considered.(9) If the information in paragraph (7) of this subsection, is not provided as required, the provisional exemption may be canceled. If the provisional exemption is canceled, the entity will be responsible for all franchise tax reports and payments that have become due since its beginning date, and penalty and interest will be based on the original due date of each report.(10) An entity that provides the comptroller a copy of the letter from the IRS stating that the federal exemption has been granted will be considered for franchise tax exemption under subsection (f) of this section.(11) If the federal exemption is denied by the IRS, the entity is responsible for all franchise tax reports and payments that have become due since its beginning date and interest will be based on the original due date of each report. Late filing and payment penalties will be waived for any reports and payments postmarked within 90 days after the date of the final denial of the federal exemption. The penalty waiver process will begin when the entity submits a written request for penalty waiver and a copy of the letter denying the federal exemption when filing reports and payment.(j) Trade show exemption. See Tax Code, §171.084 (Exemption--Certain Trade Show Participants), for the requirements for exemption for certain foreign entities that participate in trade shows in Texas.(1) Notification to comptroller. Entities need not apply for an exemption under Tax Code, §171.084.(A) If a foreign entity has obtained a registration or has already notified the comptroller that it is doing business in Texas, the entity must notify the comptroller in writing by the due date of the first report for which the entity is exempt that the report and payment are not due because the entity is exempt under Tax Code, §171.084. After such notification, the entity must notify the comptroller in writing only when the organization no longer qualifies for exemption.(B) If a foreign entity has not obtained a registration or otherwise qualified to do business in the state, if applicable, and if the entity has not notified the comptroller that it is doing business in Texas, the entity must notify the comptroller in writing only when the entity no longer qualifies for exemption under Tax Code, §171.084. There is no need to apply for exemption as long as the entity qualifies for the exemption.(2) Solicitation periods. If the solicitation of orders is conducted during more than five periods during the business period upon which tax is based as set out in Tax Code, §171.1532 (Business on Which Tax on Net Taxable Margin is Based), the entity does not qualify for exemption.(A) For example, an entity with its fiscal year ending December 31, 2008, that filed a 2008 annual report, will not have to file and pay a 2009 annual report if it did not solicit orders for more than five periods during 2008.(B) For example, assume a foreign entity participated in its first trade show in Texas on April 1, 2008. It also participated in trade shows in 2009 on January 1, March 1, May 1, June 1, August 1, and October 1. The entity's fiscal year ends are December 31, 2008, and 2009. The entity would be exempt for its initial report and payment (covering the privilege periods from April 1, 2008 - December 31, 2009) because it only solicited for one period from April 1, 2008 - December 31, 2008 (i.e., the business upon which the initial report is based). The entity would be required to file a 2010 annual report and pay tax, however, because it solicited for six periods from January 1, 2009 - December 31, 2009 (i.e., the period upon which the 2010 annual report is based).(3) One hundred twenty hours. A solicitation period may not exceed 120 consecutive hours. If the solicitation of orders is conducted during a single period of more than 120 consecutive hours, the entity does not qualify for exemption. For example, an entity that meets the other requirements of Tax Code, §171.084, will meet the 120 hours requirement if the solicitation occurs Monday - Friday, but will not meet the 120 hours requirement if the solicitation occurs Monday - Saturday. If none of the solicitation limits prescribed in this subsection are exceeded, an entity may qualify for the exemption even if it leases space at a wholesale center for the entire period upon which the tax is based.(k) Credit association exemption. A cooperative credit association incorporated under Agriculture Code, Chapter 55 (Cooperative Credit Associations), an entity organized under 12 U.S.C. §2071, or an agricultural credit association regulated by the Farm Credit Administration is exempt from franchise tax.(l) Bingo unit exemption. For reports originally due on or after October 1, 2009, a bingo unit formed under Occupations Code, Chapter 2001, Subchapter I-1 (Unit Accounting), is exempt from franchise tax. \"Unit\" means two or more licensed authorized organizations that conduct bingo at the same location joining together to share revenues, authorized expenses, and inventory related to bingo operation.(m) TexAmericas Center nonprofit corporation exemption. Effective June 16, 2015, a nonprofit entity created by the TexAmericas Center under Special District Local Laws Code, §3503.111 (Nonprofit Corporations), is exempt from franchise tax.(n) Disaster response exemption for an out-of-state business entity. Effective June 16, 2015, an out-of-state business entity, as defined in this subsection, is not required to file a franchise tax report with or pay franchise tax to this state if the business done in this state is limited to the performance of disaster- and emergency-related work during a disaster response period. An out-of-state business entity that remains in Texas after a disaster response period is not entitled to this exemption.(1) Notification to comptroller. An entity need not apply for an exemption from franchise tax under Business & Commerce Code, §112.004 (Exemption of Out-of-State Business Entity From Certain Obligations During Disaster Response Period). An entity must notify the comptroller in writing only when the entity no longer qualifies for the exemption.(2) Definitions. For the purpose of this subsection, the terms defined in subparagraphs (B) - (H) of this paragraph have the meanings given in Business & Commerce Code, §112.003 (Definitions).(A) Affiliate--A member of a combined group as that term is described by Tax Code §171.1014 (Combined Reporting; Affiliated Group Engaged in Unitary Business).(B) Critical infrastructure--Equipment and property that is owned or used by a telecommunications provider or cable operator or for communications networks, electric generation, electric transmission and distribution systems, natural gas and natural gas liquids gathering, processing, and storage, transmission and distributions systems, and water pipelines and related support facilities, equipment, and property that serve multiple persons, including buildings, offices, structures, lines, poles, and pipes.(C) Declared state disaster or emergency--A disaster or emergency event that occurs in this state and:(i) in response to which the governor issues an executive order or proclamation declaring a state of disaster or a state of emergency; or(ii) that the president of the United States declares a major disaster or emergency.(D) Disaster- or emergency-related work--Repairing, renovating, installing, building, rendering services, or performing other business activities relating to the repair or replacement of critical infrastructure that has been damaged, impaired, or destroyed by a declared state disaster or emergency.(E) Disaster response period--(i) the period that:(I) begins on the 10th day before the date of the earliest event establishing a declared state disaster or emergency by the issuance of an executive order or proclamation by the governor or a declaration of the president of the United States; and(II) ends on the earlier of the 120th day after the start date or the 60th day after the ending date of the disaster or emergency period established by the executive order or proclamation or declaration, or on a later date as determined by an executive order or proclamation by the governor; or(ii) the period that, with respect to an out-of-state business entity:(I) begins on the date that the out-of-state business entity enters this state in good faith under a mutual assistance agreement and in anticipation of a state disaster or emergency, regardless of whether a state disaster or emergency is actually declared; and(II) ends on the earlier of the date that the work is concluded or the seventh day after the out-of-state business entity enters this state.(F) In-state business entity--A domestic entity or foreign entity that is authorized to transact business in this state immediately before a disaster response period.(G) Mutual assistance agreement--An agreement to which one or more business entities are parties and under which a public utility, municipally owned utility, or joint agency owning, operating, or owning and operating critical infrastructure used for electric generation, transmission, or distribution in this state may request that an out-of-state business entity perform work in this state in anticipation of a state disaster or emergency.(H) Out-of-state business entity--A foreign entity that enters this state at the request of an in-state business entity under a mutual assistance agreement or is an affiliate of an in-state business entity and;(i) that:(I) except with respect to the performance of a disaster- or emergency-related work:(-a-) has no physical presence in this state and is not authorized to transact business in this state immediately before a disaster response period; and(-b-) is not registered with the secretary of state to transact business in this state, does not file a tax report with this state or a political subdivision of this state, and does not have nexus with this state for the purpose of taxation during the year immediately preceding the disaster response period; and(II) enters this state at the request of an in-state business entity, the state, or a political subdivision of this state to perform disaster- or emergency-related work in this state during the disaster response period; or(ii) that performs work in this state under a mutual assistance agreement.",
            "sourceNote": "Source Note: The provisions of this §3.583 adopted to be effective January 1, 2008, 32 TexReg 10018; amended to be effective January 1, 2009, 33 TexReg 10502; amended to be effective December 31, 2009, 34 TexReg 9466; amended to be effective January 29, 2017, 42 TexReg 213."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196470&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "196470",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "V",
                "label": "FRANCHISE TAX"
            },
            "rule": {
                "number": "§3.584",
                "label": "Margin: Reports and Payments"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=185917&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "185917",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Effective date. The provisions of this section apply to franchise tax reports originally due on or after January 1, 2008, except as otherwise noted.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Beginning date--(A) except as provided by subparagraph (B) of this paragraph:(i) for a taxable entity chartered or organized in this state, the date on which the taxable entity's charter or organization takes effect; and(ii) for a foreign taxable entity, the date on which the taxable entity begins doing business in this state; or(B) for a taxable entity that qualifies as a new veteran-owned business, as defined in §3.574 of this title (relating to Margin: New Veteran-Owned Businesses), the earlier of:(i) the fifth anniversary of the date on which the taxable entity was chartered, organized, or otherwise formed in Texas; or(ii) the date the taxable entity ceases to qualify as a new veteran-owned business.(2) Primarily engaged in retail or wholesale trade--A taxable entity is primarily engaged in retail or wholesale trade only if:(A) the total revenue from the taxable entity's activities in retail and wholesale trade is greater than the total revenue from its activities in trades other than retail and wholesale trade;(B) less than 50% of the total revenue from the taxable entity's activities in retail or wholesale trade comes from the sale of products the taxable entity produces or products produced by an entity that is part of an affiliated group to which the taxable entity also belongs, except for total revenue from activities in a retail trade described by Major Group 58 (Eating and Drinking Places) of the SIC Manual; and(C) the taxable entity does not provide retail or wholesale utilities, including telecommunications services, electricity, or gas. For purposes of this subparagraph, selling telephone prepaid calling cards is not providing telecommunications services.(3) Produce--To construct, manufacture, install during the manufacturing or construction process, develop, mine, extract, improve, create, raise, or grow either a product or a component of a product.(A) A taxable entity produces a product that it sells if the taxable entity or an entity that is part of an affiliated group to which the taxable entity also belongs:(i) asserts a software copyright with respect to the product or a component of the product;(ii) asserts a patent right under Title 35 of the United States Code or comparable law of a foreign jurisdiction with respect to the product, a component of the product, or the packaging of the product; or(iii) produces a component of the product, or acquires the product and makes a modification to the product, unless the taxable entity can demonstrate that the component or modification does not increase the sales price of the product by more than 10%.(B) Except as provided in subparagraph (A) of this paragraph, a taxable entity does not produce a product that it sells if an unrelated party manufactures the product and all components of the product to the taxable entity's specifications.(4) Product--Tangible personal property acquired or produced for sale.(A) Tangible personal property--(i) personal property that can be seen, weighed, measured, felt, or touched or that is perceptible to the senses in any other manner;(ii) films, sound recordings, videotapes, live and prerecorded television and radio programs, books, and other similar property embodying words, ideas, concepts, images, or sound, without regard to the means or methods of distribution or the medium in which the property is embodied, for which, as costs are incurred in producing the property, it is intended or is reasonably likely that any medium in which the property is embodied will be mass-distributed by the creator or any one or more third parties in a form that is not substantially altered; and(iii) a computer program, as defined by Tax Code, §151.0031 (\"Computer Program\").(B) Tangible personal property does not include:(i) intangible property; or(ii) services.(5) Retail trade--(A) for reports originally due on or after January 1, 2008, and before January 1, 2012, the activities described in Division G of the SIC Manual;(B) for reports originally due on or after January 1, 2012, and before January 1, 2014:(i) the activities described in Division G of the SIC Manual; and(ii) apparel rental activities classified as Industry 5999 or 7299 of the SIC Manual; and(C) for reports originally due on or after January 1, 2014:(i) the activities described in Division G of the SIC Manual;(ii) apparel rental activities classified as Industry 5999 or 7299 of the SIC Manual;(iii) the activities classified as Automotive Repair Shops, Industry Group 753 of the SIC Manual;(iv) rental-purchase agreement activities regulated by Business & Commerce Code, Chapter 92;(v) rental or leasing of tools, party and event supplies, and furniture, classified as Industry 7359 of the SIC Manual; and(vi) heavy construction equipment rental or leasing activities, classified as Industry 7353 of the SIC Manual.(6) SIC Manual--The 1987 Standard Industrial Classification Manual published by the federal Office of Management and Budget.(7) Wholesale trade--The activities described in Division F of the SIC Manual.(8) Unrelated party--With respect to a taxable entity, an entity that for any period during which the entity does not meet the requirements to be a member of the same affiliated group, as defined in §3.590(b)(1) of this title (relating to Margin: Combined Reporting), as such taxable entity.(c) Reports and due dates.(1) Initial report. For taxable entities with a beginning date prior to October 4, 2009, both the initial report and payment of the tax due, if any, are due no later than 89 days after the first anniversary date of the beginning date. The taxable margin computed on the initial report is based on the business done during the period beginning on the beginning date and ending on the last accounting period ending date for federal income tax purposes that is at least 60 days before the original due date of the initial report, or, if there is no such ending date, then ending on the day that is the last day of the calendar month nearest to the end of the taxable entity's first year of business. If the period used to compute business done for purposes of the initial report differs from the taxable entity's last accounting period for federal income tax purposes, then the taxable entity's total revenue for purposes of the initial report shall be computed as if the taxable entity had reported its federal taxable income on an Internal Revenue Service form covering the period used to compute business done for purposes of the initial report. The privilege period for the initial report is from the beginning date through December 31 of the year in which the initial report is originally due.(2) First annual report. For taxable entities with a beginning date of October 4, 2009, or later, both the first annual report and payment of the tax due, if any, are due no later than May 15 of the year following the year the entity became subject to the tax (i.e., the beginning date). The taxable margin computed on the first annual report is based on the business done during the period beginning on the beginning date and ending on the last accounting period ending date for federal income tax purposes that is in the same calendar year as the beginning date. The privilege period for the first annual report is from the beginning date through December 31 of the year in which the first annual report is originally due.(3) Annual report. The annual franchise tax report must be filed and the tax paid no later than May 15 of each year. The taxable margin computed on an annual report is based on the business done during the period beginning with the day after the last date upon which tax was computed under Tax Code, Chapter 171 on a previous report, and ending with the last accounting period ending date for federal income tax purposes ending in the calendar year before the calendar year in which the report is originally due, or, if there is no such ending date, then ending on December 31 of the calendar year before the calendar year in which the report is originally due. A taxable entity that uses a 52 - 53 week accounting year end and has an accounting year ending the first four days of January of the year in which the annual report is originally due may use the preceding December 31 as the date through which taxable margin is computed. If the period used to compute business done for purposes of the annual report differs from the taxable entity's last accounting period for federal income tax purposes, then the taxable entity's total revenue for purposes of the annual report shall be computed as if the taxable entity had reported its federal taxable income on an Internal Revenue Service form covering the period used to compute business done for purposes of the annual report. The privilege period for an annual report is January 1 through December 31 of the year in which the annual report is originally due.(4) Final report. A final tax report and payment of the additional tax are due within 60 days after the taxable entity no longer has sufficient nexus with Texas to be subject to the franchise tax. See §3.592 of this title (relating to Margin: Additional Tax) for further information concerning the additional tax imposed by Tax Code, §171.0011.(5) Extensions.(A) Annual report. See §3.585 of this title (relating to Margin: Annual Report Extension), for extensions of time to file an annual report, including the first annual report.(B) Final report. A taxable entity will be granted a 45-day extension of time to file a final report, if the taxable entity:(i) requests the extension on or before the filing date;(ii) requests the extension on a form provided by the comptroller; and(iii) remits 90% or more of the tax reported as due on the final report.(6) Nontaxable entities. See §3.581 of this title (relating to Margin: Taxable and Nontaxable Entities) for information concerning nontaxable entities. Except for passive entities (see §3.582 of this title (relating to Margin: Passive Entities)), a nontaxable entity that has not notified the comptroller or the secretary of state that it is doing business in Texas, or that has previously notified the comptroller that it is not taxable, must notify the comptroller in writing only when the entity no longer qualifies as a nontaxable entity. If an entity receives notification in writing from the comptroller asking for information to determine if the entity is a taxable entity, the entity must reply to the comptroller within 30 days of the notice.(7) Passive entities. See §3.582 of this title, for information concerning the reporting requirements for a passive entity.(8) Combined reporting. Taxable entities that are part of an affiliated group engaged in a unitary business must file a combined group report in lieu of individual reports, except that a public information report or ownership information report must be filed for each member of the combined group with nexus. See §3.590 of this title for rules on filing a combined report.(9) New veteran-owned businesses. See §3.574 of this title for information concerning the reporting requirements for a qualifying new veteran-owned business.(10) Date of filing. See §3.13 (relating to Postmarks, Timely Filing of Reports, and Timely Payment of Taxes and Fees) for information concerning the requirements for timely filing.(11) Receivership. It is the responsibility of a receiver to file franchise tax reports and pay the franchise tax of a taxable entity in receivership. A debtor in possession or the appointed trustee or receiver of a taxable entity in reorganization or arrangement proceedings under the Bankruptcy Act is responsible for filing franchise tax reports and paying the franchise tax pursuant to the plan of reorganization or arrangement.(d) Calculation of tax.(1) Margin computation. A taxable entity's margin equals the least of the following calculations, if eligible:(A) For reports originally due on or after January 1, 2008, and before January 1, 2014:(i) total revenue minus cost of goods sold;(ii) total revenue minus compensation; or(iii) 70% of total revenue.(B) For reports originally due on or after January 1, 2014:(i) total revenue minus cost of goods sold;(ii) total revenue minus compensation;(iii) 70% of total revenue; or(iv) total revenue minus $1 million.(2) Rate. Except as provided by paragraph (6) of this subsection:(A) For reports originally due on or after January 1, 2008, but before January 1, 2014:(i) a tax rate of 1.0% of taxable margin applies to most taxable entities; and(ii) a tax rate of 0.5% of taxable margin applies to taxable entities primarily engaged in retail or wholesale trade.(B) For reports originally due on or after January 1, 2014, but before January 1, 2015:(i) a tax rate of 0.975% of taxable margin applies to most taxable entities; and(ii) a tax rate of 0.4875% of taxable margin applies to taxable entities primarily engaged in retail or wholesale trade.(C) For reports originally due on or after January 1, 2015, but before January 1, 2016:(i) a tax rate of 0.95% of taxable margin applies to most taxable entities; and(ii) a tax rate of 0.475% of taxable margin applies to taxable entities primarily engaged in retail or wholesale trade.(D) For reports originally due on or after January 1, 2016:(i) a tax rate of 0.75% of taxable margin applies to most taxable entities; and(ii) a tax rate of 0.375% of taxable margin applies to taxable entities primarily engaged in retail or wholesale trade.(3) Annualized Total Revenue. When the accounting period on which a report is based is more or less than 12 months, a taxable entity must annualize its total revenue to determine its eligibility for the no tax due threshold, discounts, and E-Z Computation. The amount of total revenue used in the actual tax calculations will not change as a result of annualizing revenue. To annualize total revenue, an entity will divide total revenue by the number of days in the period upon which the report is based, and then multiply the result by 365. Examples are as follows:(A) a taxable entity's 2010 franchise tax report is based on the period September 15, 2009 through December 31, 2009 (108 days), and its total revenue for the period is $375,000. The taxable entity's annualized total revenue is $1,267,361 ($375,000 divided by 108 days multiplied by 365 days). Based on its annualized total revenue, the taxable entity does not qualify for the $1,000,000 no tax due threshold but is eligible to file using the E-Z computation. The discounts do not apply in years when the no tax due threshold is $1,000,000;(B) a taxable entity's 2010 franchise tax report is based on the period March 1, 2008 through December 31, 2009 (671 days), and its total revenue for the period is $1,375,000. The taxable entity's annualized total revenue is $747,951 ($1,375,000 divided by 671 days multiplied by 365 days). Based on its annualized total revenue, the taxable entity qualifies for the $1,000,000 no tax due threshold and is eligible to file using the No Tax Due Information Report.(4) No tax due. Effective September 1, 2015, No Tax Due Reports are required to be filed electronically. See §3.587(c)(8)(C) of this title (relating to Margin: Total Revenue) for the tiered partnership exception to filing No Tax Due Reports.(A) A taxable entity owes no tax and may file a No Tax Due Report if its annualized total revenue is:(i) for reports originally due on or after January 1, 2008, but before January 1, 2010, $300,000 or less;(ii) for reports originally due on or after January 1, 2010, but before January 1, 2012, $1 million or less;(iii) for reports originally due on or after January 1, 2012, but before January 1, 2014, $1,030,000 or less;(iv) for reports originally due on or after January 1, 2014, but before January 1, 2016, $1,080,000 or less;(v) for reports originally due on or after January 1, 2016, but before January 1, 2018, $1,110,000 or less; and(vi) for reports originally due on or after January 1, 2018, the amount determined under Tax Code, §171.006 (Adjustment of Eligibility for No Tax Due, Discounts, and Compensation Deduction).(B) A taxable entity that has zero Texas receipts owes no tax and may file a No Tax Due Report.(C) A taxable entity that has tax due of less than $1,000 owes no tax; however, the entity cannot file a No Tax Due Report and must file a regular annual report or, if qualified, the E-Z Computation Report.(5) Discount. A taxable entity is entitled to a discount of the tax imposed as follows.(A) For reports originally due on or after January 1, 2008, but before January 1, 2010, if annualized total revenue is:(i) greater than $300,000 and less than $400,000, the discount is 80% of tax due;(ii) greater than or equal to $400,000 and less than $500,000, the discount is 60% of tax due;(iii) greater than or equal to $500,000 and less than $700,000, the discount is 40% of tax due;(iv) greater than or equal to $700,000 and less than $900,000, the discount is 20% of tax due.(B) For reports originally due on or after January 1, 2010 there are no discounts.(6) E-Z Computation.(A) For reports originally due on or after January 1, 2008, and before January 1, 2016, a taxable entity with annualized total revenue of $10 million or less may choose to pay the franchise tax by using the E-Z Computation method. For this period, under the E-Z Computation, a taxable entity's tax liability is computed by applying a tax rate of 0.575% to apportioned total revenue and subtracting any applicable discount as provided by paragraph (5) of this subsection.(B) For reports originally due on or after January 1, 2016, a taxable entity with annualized total revenue of $20 million or less may choose to pay the franchise tax by using the E-Z Computation method. For this period, under the E-Z Computation, a taxable entity's tax liability is computed by applying a tax rate of 0.331% to apportioned total revenue.(C) No deductions to compute margin, credits, or other adjustments are allowed if a taxable entity chooses to compute its tax liability under the E-Z Computation.(7) Tiered partnership provision. See §3.587 of this title for information concerning the tiered partnership provision.(A) Eligibility for no tax due, discounts and the E-Z Computation. For eligible entities choosing to file under the tiered partnership provision, paragraphs (4), (5), and (6) of this subsection do not apply to an upper or lower tier entity if, before the attribution of total revenue by a lower tier entity to upper tier entities, the lower tier entity does not meet the criteria.(B) Tiered Partnership Report. The lower tier entity must submit a report to the comptroller indicating its total revenue before attribution and the amount of total revenue that each upper tier entity must include with the upper tier entity's own total revenue. Each upper tier entity must submit a report to the comptroller indicating the lower tier entity's total revenue before attribution and the amount of the lower tier entity's total revenue that was passed to the upper tier entity and is included in the total revenue of the upper tier entity.(e) Penalty and interest on delinquent taxes.(1) Tax Code, §171.362 (Penalty for Failure to Pay Tax or File Report), imposes a 5.0% penalty on the amount of franchise tax due by a taxable entity that fails to report or pay the tax when due. If any part of the tax is not reported or paid within 30 days after the due date, an additional 5.0% penalty is imposed on the amount of tax unpaid. There is a minimum penalty of $1.00. Delinquent taxes accrue interest beginning 60 days after the due date. For example, if payment is made on the 61st day after the due date, one day's interest is due. The annual rate of interest on delinquent taxes is the prime rate plus one percent, as published in The Wall Street Journal on the first day of each calendar year that is not a Saturday, Sunday, or legal holiday.(2) When a taxable entity is issued an audit assessment or other underpayment notice based on a deficiency, penalties under Tax Code, §171.362, and interest are applied as of the date that the underpaid tax was originally due, including any extensions, not from the date of the deficiency determination or date the deficiency determination is final.(3) A deficiency determination is final 60 days after the date the notice of the determination is issued.(A) The amount of a determination is due and payable 10 days after it becomes final. If the amount of the determination is not paid within 10 days after the day it became final, a penalty under Tax Code, §111.0081 (When Payment is Required), of 10% of the tax assessed will be added. For example, if a deficiency determination is made in the amount of $1,000 tax (plus the initial penalty and interest), but the total amount of the deficiency is not paid until the 71st day after the deficiency notice is issued, $1,200 plus interest would be due (i.e., $1,000 tax, $100 initial penalty for not paying when originally due, $100 penalty for not paying deficiency determination within 10 days after it became final, plus interest accrued to the date of payment at the applicable statutory rate).(B) A petition for redetermination must be filed within 60 days after the date the notice of determination is issued, or the redetermination is barred.(C) A decision on a petition for redetermination becomes final at the time a decision in a contested case is final under Government Code, Chapter 2001. The amount of a determination is due and payable 20 days after the decision is final. If the amount of the determination is not paid within 20 days after the day the decision becomes final, a penalty under Tax Code, §111.0081, of 10% of the tax assessed will be added. Using the previous example, on the 21st day after the decision is final, $1,200 plus interest would be due (i.e., $1,000 tax, $100 initial penalty, $100 additional penalty and the applicable accrued interest).(4) A jeopardy determination is final 20 days after the date on which the service of the notice is completed unless a petition for redetermination is filed before the determination becomes final. Service by mail is complete when the notice is deposited with the United States Postal Service. The amount of the determination is due and payable immediately. If the amount determined is not paid within 20 days from the date of service, a penalty, under Tax Code, §111.022 (Jeopardy Determination), of 10% of the amount of tax and interest assessed will be added.(5) If the comptroller determines that a taxable entity exercised reasonable diligence to comply with the statutory filing or payment requirements, the comptroller may waive penalties or interest for the late filing of a report or for a late payment. The taxable entity requesting waiver must furnish a detailed description of the circumstances that caused the late filing or late payment and the diligence exercised by the taxable entity in attempting to comply with the statutory requirements. See §3.5 of this title (relating to Waiver of Penalty or Interest) for additional information.(6) If a taxable entity fails to comply with Tax Code, §171.212 (Report of Changes to Federal Income Tax Return), the taxable entity is liable for a penalty of 10% of the tax that should have been reported and had not previously been reported to the comptroller under Tax Code, §171.212. This penalty is in addition to any other penalty provided by law.(f) Amended reports. In filing an amended report, the taxable entity must type or print on the top of the report the phrase \"Amended Report.\" The report should be forwarded with a cover letter of explanation, with enclosures necessary to support the amendment. Applicable penalties and interest must be reported and paid along with any additional amount of tax shown to be due on the amended report.(1) A taxable entity may file an amended report for the purpose of correcting a mathematical or other error in a report, for the purpose of supporting a claim for refund, or to change its method of computing margin or, if qualified, to use the E-Z Computation.(2) A taxable entity that has been audited by the Internal Revenue Service must file an amended franchise tax report within 120 days after the Revenue Agent's Report (RAR) is final, if the RAR results in changes to taxable margin reported for franchise tax purposes. An RAR is final when all administrative appeals with the Internal Revenue Service have been exhausted or waived. An administrative appeal with the Internal Revenue Service does not include an action or proceeding in the United States Tax Court or any other federal court.(3) A taxable entity whose taxable margin is changed as a result of an audit or other adjustment by a competent authority other than the Internal Revenue Service must file an amended franchise tax report within 120 days after the adjustment is final. An adjustment is final when all administrative or other appeals have been exhausted or waived. For the purposes of this section, a competent authority includes, but is not limited to, the United States Tax Court, United States District Courts, United States Courts of Appeals, and United States Supreme Court.(4) A taxable entity must file an amended franchise tax report within 120 days after the taxable entity files an amended federal income tax return that changes the taxable entity's taxable margin. A taxable entity is considered to have filed an amended federal income tax return if the taxable entity is a member of an affiliated group during a period in which an amended consolidated federal income tax return is filed.(5) A final determination resulting from an Internal Revenue Service administrative proceeding (including an audit), or a judicial proceeding arising from an administrative proceeding, that affects the amount of franchise tax liability must be reported to the comptroller before the expiration of 120 days after the day on which the determination becomes final. See Tax Code, §111.206 (Exception to Limitation: Determination Resulting from Administrative Proceeding).(6) Because the 10% penalty provided for in Tax Code, §171.212 only applies to deficiencies, failure to file an amended return in which a refund would result will not cause a 10% penalty to be imposed.(g) Comptroller audit. During the course of an audit or other examination of a taxable entity's franchise tax account, the comptroller may examine financial statements, working papers, registers, memoranda, contracts, corporate minutes, and any other business papers used in connection with its accounting system. In connection with the examination, the comptroller may also examine any of the taxable entity's officers or employees under oath.(h) Payment of determination. The payment of a determination issued to a taxable entity for an estimated tax liability shall not satisfy the reporting requirements set forth in Tax Code, Chapter 171, Subchapter E, concerning reports and records.(i) Information report. Each taxable entity on which the franchise tax is imposed must file an information report.(1) Public information report. For a taxable entity legally formed as a corporation, limited liability company, limited partnership, professional association, or financial institution, a public information report as described in Tax Code, §171.203 (Public Information Report), is due at the same time each initial and annual, including the first annual, report is due. An authorized person must sign the public information report on behalf of the taxable entity under a certification that:(A) all information contained in the report is true and correct to the best of the authorized person's knowledge; and(B) a copy of the report has been mailed to each person named in the report who is an officer, director, or manager and who is not employed by the taxable entity or a related (at least 10% ownership) taxable entity on the date the report is filed.(C) A report that is filed electronically complies with the signature and certification requirements of this provision.(2) Ownership information report. Taxable entities not required to file a public information report must file an ownership information report as described in Tax Code, §171.201 (Initial Report) and §171.202 (Annual Report) is due at the same time each initial and annual, including the first annual, report is due.(3) Failure to file or sign a public information report or ownership information report shall result in the forfeiture of corporate or business privileges as provided by Tax Code, §171.251 (Forfeiture of Corporate Privileges) and §171.2515 (Forfeiture of Right of Taxable Entity to Transact Business in this State). If the corporate or business privileges are forfeited, each officer or director of the taxable entity may be liable for each debt of the taxable entity that is created or incurred in Texas after the date on which the report is due and before the corporate or business privileges are revived, as provided by Tax Code, §171.255 (Liability of Directors and Officers).(4) The provisions of paragraph (3) of this subsection, concerning forfeiture of corporate privileges do not apply to a banking taxable entity or a savings and loan association, as defined in Tax Code, §171.0001 (General Definitions).(5) For purposes of this subsection:(A) authorized person means, in the case of a corporation, an officer, director or other authorized person of the corporation;(B) authorized person means, in the case of a limited liability company, a member, manager or other authorized person of the limited liability company;(C) authorized person means, in the case of a limited partnership, a partner or other authorized person of the partnership;(D) director includes a manager of a limited liability company, a general partner in a limited partnership and a general partner in a partnership registered as a limited liability partnership;(E) authorized person also includes a paid preparer authorized to sign the report.(6) Taxable entities that are members of a combined group and do not have nexus in Texas are not required to file an ownership information report or a public information report.",
            "sourceNote": "Source Note: The provisions of this §3.584 adopted to be effective January 1, 2008, 32 TexReg 10022; amended to be effective January 1, 2009, 33 TexReg 10502; amended to be effective December 31, 2009, 34 TexReg 9469; amended to be effective December 8, 2016, 41 TexReg 9625; amended to be effective September 4, 2019, 44 TexReg 4741."
        },
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            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
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                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
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                "number": "3",
                "label": "TAX ADMINISTRATION"
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                "number": "V",
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            "rule": {
                "number": "§3.585",
                "label": "Margin: Annual Report Extension"
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            "ruleBody": "(a) Effective date. Except as otherwise provided, the provisions of this section apply to franchise tax reports originally due on or after January 1, 2008.(b) Taxable and nontaxable entities. See §3.581 of this title (relating to Margin: Taxable and Nontaxable Entities) for a list of taxable and nontaxable entities.(c) Extension of due date to November 15. Except for a taxable entity that has been notified by the comptroller that it is required to make its franchise tax payments by electronic funds transfer (see subsections (d), (f), and (g) of this section), a taxable entity will be granted an extension to file an annual report and the due date of the report is extended to the next November 15, if the taxable entity:(1) requests the extension on or before May 15;(2) requests the extension on a form provided by the comptroller; and(3) remits with the extension request:(A) 90% or more of the amount of tax reported as due on the report filed on or before November 15; or(B) 100% of the tax reported as due for the previous calendar year on the report due in the previous calendar year and filed on or before May 14 of the year for which the extension is requested.(i) For reports originally due prior to January 1, 2017, a combined group may only use this 100% option if the combined group has lost a member or if the members of the combined group are the same as they were on the last day of the period upon which the report due in the previous calendar year was based.(ii) For reports originally due on or after January 1, 2017, a combined group may use this 100% option regardless of any changes in combined group members.(iii) A separate entity that was included in a combined group report originally due in the previous calendar year may not use the 100% extension option.(d) No previous report. An extension shall not be granted under subsection (c)(3)(B) or (f)(3)(B) of this section, if no report was due in the previous calendar year or the report due in the previous calendar year is not filed on or before May 14 of the year for which the extension is requested.(e) Penalty and interest for taxable entities not required to pay by electronic funds transfer. Penalty and interest, except for a taxable entity that has been notified by the comptroller that it is required to make its franchise tax payments by electronic funds transfer (see subsection (h) of this section), will be calculated in the following manner.(1) If a taxable entity is granted an extension by remitting, on or before May 15, at least 100% of the tax reported as due for the previous calendar year on the report due in the previous calendar year and filed on or before May 14 of the year for which the extension is requested, then no penalty or interest will be assessed if the remaining tax due is remitted on or before November 15.(2) If a taxable entity is granted an extension by remitting, on or before May 15, 90% or more of the tax that will be reported as due on or before November 15, then no penalty or interest will be assessed if the remaining tax due is remitted on or before November 15.(3) If a taxable entity, on or before May 15, requests an extension but does not meet the requirements of paragraph (1) or (2) of this subsection, then penalty and interest will be assessed on the difference between 90% of the tax finally determined to be due and the amount remitted on or before May 15. Penalty and interest will also be assessed on 10% of the tax finally determined to be due if not remitted on or before November 15.(f) Required electronic funds transfer extension of the due date to August 15. Subject to paragraphs (1) - (3) of this subsection, a taxable entity that has been notified by the comptroller that it is required to make its franchise tax payments by electronic funds transfer (see §3.9 of this title (relating to Electronic Filing of Returns and Reports; Electronic Transfer of Certain Payments by Certain Taxpayers)) will be granted an extension to file an annual report and the due date of the report is extended to the next August 15. A combined group is required to make its franchise tax payments by electronic funds transfer if any member of the combined group receives notice of the requirement. An extension of the due date to August 15 will be granted if the taxable entity:(1) requests the extension on or before May 15;(2) requests the extension on a form provided by the comptroller; and(3) remits with the extension request:(A) 90% or more of the amount of tax reported as due on the report filed on or before August 15; or(B) 100% of the tax reported as due for the previous calendar year on the report due in the previous calendar year and filed on or before May 14 of the year for which the extension is requested.(i) For reports originally due prior to January 1, 2017, a combined group may only use this 100% option if the combined has lost a member or if the members of the combined group are the same as they were on the last day of the period upon which the report due in the previous calendar year was based.(ii) For reports originally due on or after January 1, 2017, a combined group may use this 100% option regardless of any changes in combined group members.(iii) A separate entity that was included in a combined group report originally due in the previous calendar year may not use the 100% extension option.(g) Required electronic funds transfer second extension of the due date to November 15. A taxable entity granted an extension under subsection (f) of this section will be granted an extension to file an annual report and the due date of the report is extended to the next November 15 if the taxable entity:(1) requests the extension on or before August 15;(2) requests the extension on a form provided by the comptroller; and(3) remits with the request the difference between the amount paid previously for the current reporting period and 100% of the amount of tax reported as due on the report filed on or before November 15.(h) Penalty and interest for taxable entities required to pay by electronic funds transfer. Penalty and interest will be calculated in the following manner.(1) If a taxable entity is granted an extension until August 15 by remitting, on or before May 15, at least 100% of the tax reported as due for the previous calendar year on the report due in the previous calendar year and filed on or before May 14 of the year for which the extension is requested, then no penalty or interest will be assessed if the remaining tax due is remitted on or before August 15. However, if the taxable entity requests, on or before August 15, an extension until November 15, and remits, on or before August 15, at least 99% of the amount reported as due on or before November 15, then no penalty will be assessed. Interest will be assessed on the remaining tax due if not remitted on or before November 15.(2) If a taxable entity is granted an extension until August 15 by remitting, on or before May 15, 90% or more of the tax that will be reported as due on or before August 15, then no penalty or interest will be assessed if the remaining tax due is remitted on or before August 15. However, if the taxable entity requests, on or before August 15, an extension until November 15, and remits, on or before August 15, at least 99% of the amount reported as due on or before November 15, then no penalty will be assessed. Interest will be assessed on the remaining tax due if not remitted on or before November 15.(3) If a taxable entity, on or before May 15, requests an extension until August 15, but does not meet the requirements of paragraph (1) or (2) of this subsection, then penalty and interest will be assessed on the difference between 90% of the tax finally determined to be due and the amount remitted on or before May 15. Penalty and interest will also be assessed on 10% of the tax finally determined to be due if not remitted on or before August 15. However, if the taxable entity requests, on or before August 15, an extension until November 15, and remits on or before August 15 at least 99% of the amount reported as due on or before November 15, then penalty and interest will be assessed on the difference between 90% of the tax finally determined to be due and the amount remitted on or before May 15. No penalty will be assessed on the remaining tax due if remitted on or before November 15. Interest will be assessed on the remaining tax due if not remitted on or before November 15.(i) No additional extensions. No additional extensions will be granted for annual franchise tax reports pursuant to Tax Code, §111.057.",
            "sourceNote": "Source Note: The provisions of this §3.585 adopted to be effective January 1, 2008, 32 TexReg 10026; amended to be effective January 1, 2009, 33 TexReg 10503; amended to be effective October 11, 2017, 42 TexReg 5486."
        },
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            "rule": {
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                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Effective date. The provisions of this section apply to franchise tax reports originally due on or after January 1, 2008, unless otherwise noted.(b) Foreign taxable entity. A taxable entity that is not chartered or organized in Texas.(c) Nexus. A taxable entity is subject to Texas franchise tax when it has sufficient contact with this state to be taxed without violating the United States Constitution. Nexus is determined on an individual taxable entity level.(d) Physical presence. Some specific activities that subject a taxable entity to Texas franchise tax include, but are not limited to, the following: (1) advertising: entering Texas to purchase, place, or display advertising when the advertising is for the benefit of another and in the ordinary course of business (e.g., the foreign taxable entity makes signs and brings them into Texas, sets them up, and maintains them); (2) consignments: having consigned goods in Texas; (3) contracting: performance of a contract in Texas regardless of whether the taxable entity brings its own employees into the state, hires local labor, or subcontracts with another; (4) delivering: delivering into Texas items it has sold; (5) employees or representatives: having employees or representatives in Texas doing the business of the taxable entity; (6) federal enclaves: doing business in any area within Texas, even if the area is leased by, owned by, ceded to, or under the control of the federal government; (7) franchisors: entering into one or more contracts with persons, corporations, or other business entities located in Texas, by which: (A) the franchisee is granted the right to engage in the business of offering, selling, or distributing goods or services under a marketing plan or system prescribed in substantial part by the franchisor; and (B) the operation of a franchisee's business pursuant to such plan is substantially associated with the franchisor's trademark, service mark, trade name, logotype, advertising, or other commercial symbol designating the franchisor or its affiliate. (8) holding companies: maintaining a place of business in Texas or managing, directing, and/or performing services in Texas for subsidiaries or investee entities; (9) inventory: having an inventory in Texas or having spot inventory for the convenient delivery to customers, even if the bulk of orders are filled from out of state; (10) leasing: leasing tangible personal property which is used in Texas; (11) loan production activities: soliciting sales contracts or loans, gathering financial data, making credit checks, collecting accounts, repossessing property or performing other financial activities in Texas through employees, independent contractors, or agents, regardless of whether they reside in Texas; (12) partners: (A) acting as a general partner in a general partnership that is doing business in Texas; (B) acting as a general partner in a limited partnership that is doing business in Texas (a foreign taxable entity that is a limited partner in a limited partnership does not have physical presence in Texas, if that is the limited partner's only connection with Texas); (13) place of business: maintaining a place of business in Texas; (14) processing: assembling, processing, manufacturing, or storing goods in Texas; (15) real estate: holding, acquiring, leasing, or disposing of any property located in Texas; (16) services, including, but not limited to the following:  (A) providing any service in Texas, regardless of whether the employees, independent contractors, agents, or other representatives performing the services reside in Texas; (B) maintaining or repairing property located in Texas whether under warranty or by separate contract; (C) installing, erecting, or modifying property in Texas; (D) conducting training classes, seminars or lectures in Texas; (E) providing any kind of technical assistance in Texas, including, but not limited to, engineering services; or (F) investigating, handling or otherwise assisting in resolving customer complaints in Texas. (17) shipment: sending materials to Texas to be stored awaiting orders for their shipment; (18) shows and performances: the staging of or participating in shows, theatrical performances, sporting events, or other events within Texas; (19) solicitation: having employees, independent contractors, agents, or other representatives in Texas, regardless of whether they reside in Texas, to promote or induce sales of the foreign taxable entity's goods or services; (20) telephone listing: having a telephone number that is answered in Texas; or (21) transportation: (A) carrying passengers or freight (any personal property including oil and gas transmitted by pipeline) from one point in Texas to another point within the state, if pickup and delivery, regardless of origination or ultimate destination, occurs within Texas; or (B) having facilities and/or employees, independent contractors, agents, or other representatives in Texas, regardless of whether they reside in Texas: (i) for storage, delivery, or shipment of goods; (ii) for servicing, maintaining, or repair of vehicles, trailers, containers, and other equipment; (iii) for coordinating and directing the transportation of passengers or freight; or (iv) for doing any other business of the taxable entity. (e) Texas use tax permit. A foreign taxable entity with a Texas use tax permit is presumed to have nexus in Texas and is subject to Texas franchise tax. If the entity has overcome this presumption, the beginning date is determined under subsection (g)(2)(A) or (C) of this section.(f) Economic nexus.(1) For each federal income tax accounting period ending in 2019 or later, a foreign taxable entity has nexus in Texas and is subject to Texas franchise tax, even if it has no physical presence in Texas, if during that federal income tax accounting period, it had gross receipts from business done in Texas of $500,000 or more, as sourced under §3.591(e) and (f) of this title (relating to Margin: Apportionment). (2) For purposes of this subsection, gross receipts means all revenue reportable by a taxable entity on its federal return, without deduction for the cost of property sold, materials used, labor performed, or other costs incurred.(3) The economic nexus threshold in paragraph (1) of this subsection is based on gross receipts and it applies to a foreign taxable entity that apportions its margin using a method other than gross receipts, such as the apportionment methods described in §3.591(c)(1) or (2) of this title.(g) Beginning date. (1) Prior to Jan. 1, 2019, a foreign taxable entity begins doing business in Texas on the date the entity has physical presence as described in subsection (d) of this section.(2) On or after Jan. 1, 2019, a foreign taxable entity begins doing business in Texas on the earliest of: (A) the date the entity has physical presence as described in subsection (d) of this section;(B) the date the entity obtains a Texas use tax permit if obtained on or after Jan. 1, 2019 or Jan. 1, 2019, if the entity obtained a use tax permit prior to that date; or(C) the first day of the federal income tax accounting period ending in 2019 or later in which the entity had gross receipts from business done in Texas of $500,000 or more.(h) Trade shows. See §3.583 of this title (relating to Margin: Exemptions) for information concerning exemption for certain trade show participants under Tax Code, §171.084. (i) Public Law 86-272. Public Law 86-272 (15 United States Code §§381 - 384) does not apply to the Texas franchise tax.",
            "sourceNote": "Source Note: The provisions of this §3.586 adopted to be\r\neffective January 1, 2008, 32 TexReg 10027; amended to be effective\r\nDecember 29, 2019, 44 TexReg 8021; amended to be effective February\r\n10, 2021, 46 TexReg 935; amended to be effective January 7, 2026,\r\n51 TexReg 156."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227677&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227677",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "V",
                "label": "FRANCHISE TAX"
            },
            "rule": {
                "number": "§3.587",
                "label": "Margin: Total Revenue"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190180&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "190180",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Effective date. The provisions of this section apply to franchise tax reports originally due on or after January 1, 2008, except as otherwise noted.(b) Definitions. The following words and terms, when used in this section, have the following meanings, unless the context clearly indicates otherwise.(1) Actual cost of uncompensated care--The amount determined by multiplying Operating Expenses by the Uncompensated Care Ratio where:(A) operating expenses are the amounts reported on line 2 (cost of goods sold) and line 21 (total deductions), Internal Revenue Service Form 1065; the amounts reported on line 2 (cost of goods sold) and line 20 (total deductions), Internal Revenue Service Form 1120S; or the corresponding line items from any other federal form filed, less any items that have already been subtracted from total revenue (e.g., bad debts);(B) uncompensated care ratio means uncompensated care charges less partial payments divided by total charges;(C) uncompensated care charges are the charges for health care services where the provider has not received any payment or where the provider has received partial payment that does not cover the cost of the health care provided to the patient. Uncompensated care charges do not include any portion of a charge that the health care provider has no right to collect under a private health care plan, under an agreement with an individual for a specific amount, or under the charge limitations imposed by the programs described in subsection (e)(10)(A)(i) - (iii) of this section;(D) charges must be comparable to the charges applied to services provided to all patients of the health care provider; (E) partial payment is an amount that has been received toward uncompensated care charges that does not cover the cost of the services provided;(F) total charges are charges for all health care services, including uncompensated care;(G) records that clearly identify each patient, the procedure performed, and the charge for such a service, as well as payments received from each patient must be maintained by the health care provider for all uncompensated care;(H) a corresponding adjustment must be made to reduce the cost of goods sold deduction calculated under §3.588 of this title (relating to Margin: Cost of Goods Sold) or the compensation deduction calculated under §3.589 of this title (relating to Margin: Compensation) for the portion of the cost of goods sold or compensation that has been excluded from total revenue.(i) For a single taxable entity,(I) the cost of goods sold adjustment is equal to the cost of goods sold deduction multiplied by the uncompensated care ratio; and(II) the compensation adjustment is equal to the compensation deduction multiplied by the uncompensated care ratio.(ii) For a combined group, (I) the cost of goods sold adjustment, as described in clause (i)(I) of this subparagraph, is only calculated for and applied to the costs of goods sold deduction for each member of the combined group claiming the exclusion from total revenue for the actual cost of uncompensated care; and(II) the compensation adjustment, as described in clause (i)(II) of this subparagraph, is only calculated for and applied to the compensation deduction for each member of the combined group claiming the exclusion from total revenue for the actual cost of uncompensated care.(III) If an employee is paid by more than one member of a combined group, the compensation adjustment calculated in subclause (II) of this clause is subject to reduction based on the combined group's limitation on wages and cash compensation under §3.589(c)(1) of this title. The compensation adjustment for a member is reduced by the member's pro-rata share of the employee's wages and cash compensation that exceeds the combined group's wages and cash compensation limitation, multiplied by the uncompensated care ratio.(2) Federal obligations--(A) stocks and other direct obligations of, and obligations unconditionally guaranteed by, the United States government and United States government agencies; and(B) direct obligations of a United States government-sponsored agency.(3) Health care institution--An ambulatory surgical center; an assisted living facility licensed under Health and Safety Code, Chapter 247 (Assisted Living Facilities); an emergency medical services provider; a home and community support services agency; a hospice; a hospital; a hospital system; an intermediate care facility for individuals with an intellectual disability or a home and community-based services waiver program for persons with intellectual disabilities adopted in accordance with the federal Social Security Act, §1915(c) (42 U.S.C. §1396n) (Compliance with State plan and payment); a birthing center; a nursing home; an end stage renal disease facility licensed under Health and Safety Code, §251.011 (License Required); or a pharmacy.(4) Health care provider--Any taxable entity that participates in the Medicaid program, Medicare program, Children's Health Insurance Program (CHIP), state workers' compensation program, or TRICARE military health system as a provider of health care services.(5) Internal Revenue Code--The Internal Revenue Code of 1986 in effect for the federal tax year beginning on January 1, 2007, not including any changes made by federal law after that date, and any regulations adopted under that code applicable to that period. (6) Landman services--(A) performing title searches for the purpose of determining ownership of or curing title defects related to oil, gas, other energy sources, or other related mineral or petroleum interests;(B) negotiating the acquisition or divestiture of mineral rights for the purposes of the exploration, development, or production of oil, gas, other energy sources, or other related mineral or petroleum interests; or (C) negotiating or managing the negotiation of contracts or other agreements related to the ownership of mineral interests for the exploration, exploitation, disposition, development, or production of oil, gas, other energy sources, or other related mineral or petroleum interests.(7) Lending institution--An entity that makes loans; and(A) is regulated by the Federal Reserve Board, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Commodity Futures Trading Commission, the Office of Thrift Supervision, the Texas Department of Banking, the Office of Consumer Credit Commissioner, the Credit Union Department, or any comparable regulatory body;(B) is licensed by, registered with, or otherwise regulated by the Department of Savings and Mortgage Lending;(C) is a \"broker\" or \"dealer\" as defined by the Securities Exchange Act of 1934 at 15 U.S.C. §78c (Definitions and application); or(D) provides financing to unrelated parties solely for agricultural production.(8) Management company--A corporation, limited liability company, or other limited liability entity that conducts all or part of the active trade or business of another entity (\"the managed entity\") in exchange for a management fee and reimbursement of specified costs incurred in the conduct of the active trade or business of the managed entity, including wages and cash compensation as determined under Tax Code, §171.1013(a) and (b) (Determination of Compensation). To qualify as a management company:(A) the entity must perform active and substantial management and operational functions, control and direct the daily operations and provide services such as accounting, general administration, legal, financial or similar services; or(B) if the entity does not conduct all of the active trade or business of an entity, the entity must conduct all operations, as provided in subparagraph (A) of this paragraph, for a distinct revenue-producing component of the entity.(9) Net distributive income--The net amount of income, gain, deduction, or loss relating to a pass-through entity or disregarded entity reportable to the owners for the tax year of the entity.(10) Obligation--Any bond, debenture, security, mortgage-backed security, pass-through certificate, or other evidence of indebtedness of the issuing entity. The term does not include a deposit, a repurchase agreement, a loan, a lease, a participation in a loan or pool of loans, a loan collateralized by an obligation of a United States government agency, or a loan guaranteed by a United States government agency.(11) Pro bono services--The direct provision of legal services to the poor, without an expectation of compensation.(12) Professional employer organization--A business entity that offers professional employer services or temporary employment services. For the purposes of this paragraph:(A) \"Professional employer services\" means the services provided through coemployment relationships in which all or a majority of the employees providing services to a client or to a division or work unit of a client are covered employees. \"Professional employer services\" does not include temporary help, an independent contractor, the provision of services that otherwise meet the definition of professional employer services by one person solely to other persons who are related to the service provider by common ownership, or a temporary common worker employer.(B) \"Temporary employment services\" means a person who employs individuals for the purpose of assigning those individuals to the clients of the service to support or supplement the client's workforce in a special work situation, including an employee absence, a temporary skill shortage, a seasonal workload, or a special assignment or project.(13) Qualified courier and logistics company--A taxable entity that:(A) receives at least 80% of the taxable entity's annual total revenue from its entire business from a combination of at least two of the following courier and logistics services:(i) expedited same-day delivery of an envelope, package, parcel, roll of architectural drawings, box or pallet. \"Same-day delivery\" means the service provider must pick up and deliver an item on the same calendar day;(ii) temporary storage and delivery of the property of another entity, including an envelope, package, parcel, roll of architectural drawings, box, or pallet; and (iii) brokerage of same-day or expedited courier and logistics services to be completed by a person or entity under a contract that includes a contractual obligation by the taxable entity to make payments to the person or entity for those services;(B) during the period on which margin is based, is registered as a motor carrier under Transportation Code, Chapter 643 (Motor Carrier Registration), and if the taxable entity operates on an interstate basis, is registered as a motor carrier or broker under the motor vehicle registration system established under 49 U.S.C. §14504a (Unified Carrier Registration System plan and agreement) or a similar federal registration program that replaces that system, during that period;(C) maintains an automobile liability insurance policy covering individuals operating vehicles owned, hired, or otherwise used in the taxable entity's business, with a combined single limit for each occurrence of at least $1 million;(D) maintains at least $25,000 of cargo insurance;(E) maintains a permanent nonresidential office from which the courier and logistics services are provided or arranged;(F) has at least five full-time employees during the period on which margin is based;(G) is not doing business as a livery service, floral delivery service, motor coach service, taxicab service, building supply delivery service, water supply service, fuel or energy supply service, restaurant supply service, commercial moving and storage company, or overnight delivery service; and(H) is not delivering items that the taxable entity or an affiliated entity sold.(14) Qualified destination management company--A taxable entity that:(A) is incorporated or is a limited liability company;(B) receives at least 80% of the entity's annual total revenue from providing or arranging for the provision of a combination of at least six destination management services. \"Destination management services\" means transportation vehicle management; booking and managing entertainers; coordination of tours or recreational activities; meeting, conference, or event registration; meeting, conference, transportation, or event staffing; event management; meal coordination; shuttle system services, including vehicle staging, radio communications, signage, and routing services; and airport meet-and-greet services, including the provision of airport permits, manifest management services, porterage, and passenger greeting services;(C) maintains a permanent nonresidential office from which the destination management services are provided or arranged;(D) has at least three full-time employees;(E) maintains a general liability insurance policy with a limit of at least $1 million;(F) during the preceding tax year, had at least 80% of the entity's client contracts for:(i) clients from outside Texas who were determined by a contracting entity outside this state; or(ii) clients from outside this state who were program attendees staying in a hotel in this state;(G) other than office equipment used in the conduct of the entity's business, does not own equipment used to directly provide destination management services, including motor coaches, limousines, sedans, dance floors, decorative props, lighting, podiums, sound or video equipment, or equipment for catered meals;(H) does not prepare or serve beverages, meals, or other food products, but may procure catering services on behalf of the entity's clients;(I) does not provide services for weddings;(J) does not own or operate a venue at which events or activities for which destination management services are provided occur; and(K) is not a member of an affiliated group, as that term is defined by Tax Code, §171.0001, (General Definitions), another member of which:(i) prepares or serves beverages, meals, or other food products; or(ii) owns or operates a venue described by subparagraph (J) of this paragraph.(15) Qualified live event promotion company--(A) A taxable entity that:(i) receives at least 50% of the entity's annual total revenue from the provision or arrangement for the provision of three or more live event promotion services; (ii) maintains a permanent nonresidential office from which the live event promotion services are provided or arranged;(iii) employs 10 or more full-time employees during all or part of the period for which taxable margin is calculated;(iv) does not provide services for a wedding or carnival; and(v) is not a movie theater.(B) For the purposes of this section:(i) \"live event promotion services\" means services related to the promotion, coordination, operation, or management of a live entertainment event. The term includes services related to the provision of the staff for the live entertainment event or the scheduling and promotion of an artist performing or entertaining at the live entertainment event; (ii) \"live entertainment event\" means an event that occurs on a specific date to which tickets are sold in advance by a third-party vendor and at which: a natural person or a group of natural persons, physically present at the venue, performs for the purpose of entertaining a ticket holder who is present at the event; a traveling circus or animal show performs for the purpose of entertaining a ticket holder who is present at the event; or a historical, museum-quality artifact is on display in an exhibition; and(iii) \"artist\" means a natural person or an entity that contracts to perform or entertain at a live entertainment event.(16) Sales commission--(A) any form of compensation paid to a person for engaging in an act for which a license is required by Occupations Code, Chapter 1101 (Real Estate Brokers and Sales Agent); or(B) compensation paid to a sales representative by a principal in an amount that is based on the amount or level of certain orders for or sales of the principal's product and that the principal is required to report on Internal Revenue Service Form 1099-MISC (or would have been reported if the amount had met the Internal Revenue Service minimum reporting requirement).(C) For purposes of this paragraph: (i) a \"principal\" is a person who manufactures, produces, imports, distributes, or acts as an independent agent for the distribution of a product for sale; uses a sales representative to solicit orders for the product; and compensates the sales representative wholly or partly by sales commission.(ii) A \"product\" means services, tangible personal property, and intangible property.(17) Security--The meaning assigned by Internal Revenue Code, §475(c)(2) (Security defined), and includes instruments described by Internal Revenue Code, §475(e)(2)(B), (C), and (D) (Commodity).(18) Tiered partnership arrangement--An ownership structure in which any of the interests in one taxable entity treated as a partnership or an S corporation for federal income tax purposes (a \"lower tier entity\") are owned by one or more other taxable entities (an \"upper tier entity\").(19) United States government--Any department or ministry of the federal government, including a federal reserve bank. The term does not include a state or local government, a commercial enterprise owned wholly or partly by the United States government, or a local governmental entity or commercial enterprise whose obligations are guaranteed by the United States government.(20) United States government agency--An instrumentality of the United States government whose obligations are fully and explicitly guaranteed as to the timely payment of principal and interest by the full faith and credit of the United States government. The term includes the Government National Mortgage Association, the Department of Veterans Affairs, the Federal Housing Administration, the Farmers Home Administration, the Export-Import Bank, the Overseas Private Investment Corporation, the Commodity Credit Corporation, the Small Business Administration, and any successor agency.(21) United States government-sponsored agency--An agency originally established or chartered by the United States government to serve public purposes specified by the United States Congress but whose obligations are not explicitly guaranteed by the full faith and credit of the United States government. The term includes the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, the Farm Credit System, the Federal Home Loan Bank System, the Student Loan Marketing Association, and any successor agency.(22) Vaccine--A preparation or suspension of dead, live attenuated, or live fully virulent viruses or bacteria, or of antigenic proteins derived from them, used to prevent, ameliorate, or treat an infectious disease.(c) General rules for reporting total revenue.(1) Variant of form. Any reference to an Internal Revenue Service form includes a variant of the form. For example, a reference to Form 1120 includes Forms 1120-A, 1120-S, and other variants of Form 1120. A reference to an Internal Revenue Service form also includes any subsequent form with a different number or designation that substantially provides the same information as the original form.(2) Amount reportable. Any reference to an amount reportable as income on a line number on an Internal Revenue Service form is the amount entered to the extent the amount entered complies with federal income tax law and includes the corresponding amount entered on a variant of the form, or a subsequent form, with a different line number to the extent the amount entered complies with federal income tax law.(3) Federal consolidated group. A taxable entity that is part of a federal consolidated group computes its total revenue as if it had filed a separate return for federal income tax purposes. Information on combined reporting can be found in §3.590 of this title (relating to Margin: Combined Reporting).(4) Passive entity. A taxable entity shall include its share of net distributive income from a passive entity, but only to the extent the net income of the passive entity was not generated by any other taxable entity.(5) Treatment of total revenue exclusions for cost of goods sold and compensation.(A) Any expense excluded from total revenue (e.g., flow-through funds or the cost of uncompensated care allowed under subsection (e) of this section) may not be included in the determination of cost of goods sold (see §3.588 of this title) or the determination of compensation (see §3.589 of this title).(B) Net distributive income that is subtracted from total revenue may not be included in the determination of compensation.(6) Ordinary contract for services. Except as provided by subsection (e)(2) of this section, a payment received under an ordinary contract for the provision of services in the ordinary course of business may not be excluded from the calculation of total revenue.(7) Payment to affiliated group members. If the taxable entity belongs to an affiliated group, the taxable entity may not exclude from the calculation of total revenue any payments described by subsection (e)(1) - (6) of this section that are made to entities that are members of the affiliated group.(8) Tiered partnership provision. This provision is not mandatory. Subject to the following subparagraphs, a lower tier entity in a tiered partnership arrangement may exclude from total revenue the amount of total revenue reported to an upper tier entity. If a lower tier entity chooses to file under the tiered partnership provision, the lower tier entity may report total revenue to any or all of its upper tier entities. The total revenue reported to an upper tier entity must equal the upper tier entity's ownership percentage of the lower tier entity's entire total revenue.(A) Reporting requirements. The lower tier entity must submit a report to the comptroller showing the amount of total revenue that each upper tier entity must include with the upper tier entity's own total revenue. Each upper tier entity must submit a report to the comptroller showing the amount of the lower tier entity's total revenue that was passed to the upper tier entity and is included in the total revenue of the upper tier entity. (B) Nontaxable upper tier entity. This paragraph does not apply to that percentage of the total revenue attributable to an upper tier entity by a lower tier entity if the upper tier entity is not subject to the tax under this chapter. In this case, the lower tier entity cannot report total revenue to the nontaxable upper tier entity and the lower tier entity cannot exclude this total revenue from its franchise tax report.(C) Eligibility for no tax due and the E-Z Computation. The no tax due thresholds and the E-Z Computation do not apply to an upper or lower tier entity if, before the attribution of any total revenue by a lower tier entity to upper tier entities under this section, the lower tier entity does not meet the criteria. See §3.584(d)(7) of this title (relating to Margin: Reports and Payments).(D) Not a partnership distribution. Total revenue reported from a lower tier entity to an upper tier entity under the provisions of Tax Code, §171.1015(b) (Reporting for Certain Partnerships in Tiered Partnership Arrangement), is not a distribution from a partnership. (E) Combined reporting. The tiered partnership provision is not an alternative to combined reporting. Combined reporting is mandatory for taxable entities that meet the ownership and unitary criteria. See §3.590 of this title. Therefore, the tiered partnership provision is not allowed if the lower tier entity is included in a combined group.(F) Accounting period. If the lower tier entity and an upper tier entity have different accounting periods, the upper tier entity must allocate the revenue reported from the lower tier entity to the accounting period that the upper tier entity's report is based on.(G) Lower tier entity no tax due. For reports originally due on or after January 1, 2010, if the lower tier entity owes no tax before the attribution of total revenue to the upper tier entities, filing under the tiered partnership provision is not allowed.(9) Nontaxable revenue. Revenue that Texas cannot tax under the United States Constitution is not included in total revenue.(10) Federal disregarded entity. A taxable entity that is disregarded for federal income tax purposes computes its total revenue as if it had filed a separate return as a corporation for federal income tax purposes. The federal disregarded entity may, however, choose to combine its revenue, cost of goods sold, compensation and gross revenue with its parent as provided by §3.590(d)(6) of this title. Further information on combined reporting can be found in §3.590 of this title.(d) Total revenue. The line items in this subsection refer to line items on the 2006 Internal Revenue Service forms. A reference to a line item on the 2006 Internal Revenue Service forms includes any line item on a subsequent form with a different number or designation that substantially provides the same information as the line item on the 2006 Internal Revenue Service forms. For reports originally due prior to January 1, 2026, total revenue is based on the equivalent line numbers from the corresponding federal return, the amounts of which are computed based on the Internal Revenue Code. For reports originally due on or after January 1, 2026, total revenue is based on the equivalent line numbers from the corresponding federal return. (1) Corporations. For the purpose of computing its taxable margin, the total revenue of a taxable entity treated as a corporation for federal income tax purposes is computed by:(A) adding:(i) the amount reportable as income on line 1c, Internal Revenue Service Form 1120;(ii) the amounts reportable as income on lines 4 through 10, Internal Revenue Service Form 1120; and(iii) any total revenue reported by a lower tier entity as includable in the taxable entity's total revenue under Tax Code, §171.1015(b); and(B) subtracting, to the extent included in the calculation under subparagraph (A) of this paragraph:(i) bad debt expensed for federal income tax purposes that corresponds to items of gross receipts included for the current reporting period or a past reporting period;(ii) foreign royalties and foreign dividends, including amounts determined under Internal Revenue Code, §78 (Dividends received from certain foreign corporations by domestic corporations choosing foreign tax credit) or §§951 - 964 (Controlled Foreign Corporations). Subtractions under this clause do not include foreign-derived intangible income (FDII) or global intangible low-taxed income (GILTI), as defined by the Tax Cuts and Jobs Act of 2017, or foreign-derived deduction eligible income (FDDEI) or net controlled foreign corporation tested income (NCTI), as defined by the One Big Beautiful Bill Act of 2025;(iii) net distributive income from a taxable entity treated as a partnership or as an S corporation for federal income tax purposes, except as provided by subsection (c)(4) of this section;(iv) allowable deductions from Internal Revenue Service Form 1120, Schedule C, to the extent the relating dividend income is included in total revenue. Subtractions under this clause do not include FDII or GILTI deductions, as defined by the Tax Cuts and Jobs Act of 2017, or FDDEI or NCTI deductions, as defined by the One Big Beautiful Bill Act of 2025;(v) items of income attributable to an entity that is a disregarded entity for federal income tax purposes; and(vi) other amounts authorized by subsection (e) of this section.(2) S corporations. For the purpose of computing its taxable margin, the total revenue of a taxable entity treated as an S corporation for federal income tax purposes is computed by:(A) adding:(i) the amount reportable as income on line 1c, Internal Revenue Service Form 1120S;(ii) the amounts reportable as income on lines 4 and 5, Internal Revenue Service Form 1120S;(iii) the amounts reportable as income on lines 3a and 4 through 10, Internal Revenue Service Form 1120S, Schedule K;(iv) the amounts reportable as income on lines 17 and 19, Internal Revenue Service Form 8825; and(v) any total revenue reported by a lower tier entity as includable in the taxable entity's total revenue under Tax Code, §171.1015(b); and(B) subtracting, to the extent included in the calculation under subparagraph (A) of this paragraph:(i) bad debt expensed for federal income tax purposes that corresponds to items of gross receipts included for the current reporting period or a past reporting period;(ii) foreign royalties and foreign dividends, including amounts determined under Internal Revenue Code, §78 or §§951 - 964. Subtractions under this clause do not include FDII or GILTI, as defined by the Tax Cuts and Jobs Act of 2017, or FDDEI or NCTI, as defined by the One Big Beautiful Bill Act of 2025;(iii) net distributive income from a taxable entity treated as a partnership or as an S corporation for federal income tax purposes, except as provided by subsection (c)(4) of this section;(iv) items of income attributable to an entity that is a disregarded entity for federal income tax purposes; and(v) other amounts authorized by subsection (e) of this section.(3) Partnerships. For the purpose of computing its taxable margin, the total revenue of a taxable entity treated as a partnership for federal income tax purposes is computed by:(A) adding:(i) the amount reportable as income on line 1c, Internal Revenue Service Form 1065;(ii) the amounts reportable as income on lines 4, 6, and 7, Internal Revenue Service Form 1065;(iii) the amounts reportable as income on lines 3a and 5 through 11, Internal Revenue Service Form 1065, Schedule K;(iv) the amounts reportable as income on line 17, Internal Revenue Service Form 8825;(v) the amounts reportable as income on line 11, plus line 2 or line 45, Internal Revenue Service Form 1040, Schedule F; and(vi) any total revenue reported by a lower tier entity as includable in the taxable entity's total revenue under Tax Code, §171.1015(b); and(B) subtracting, to the extent included in the calculation under subparagraph (A) of this paragraph:(i) bad debt expensed for federal income tax purposes that corresponds to items of gross receipts included for the current reporting period or a past reporting period;(ii) foreign royalties and foreign dividends, including amounts determined under Internal Revenue Code, §78 or §§951 - 964. Subtractions under this clause do not include FDII or GILTI, as defined by the Tax Cuts and Jobs Act of 2017, or FDDEI or NCTI, as defined by the One Big Beautiful Bill Act of 2025;(iii) net distributive income from a taxable entity treated as a partnership or as an S corporation for federal income tax purposes, except as provided by subsection (c)(4) of this section;(iv) items of income attributable to an entity that is a disregarded entity for federal income tax purposes; and(v) other amounts authorized by subsection (e) of this section.(4) Trusts. For the purpose of computing its taxable margin, the total revenue of a taxable entity treated as a trust for federal income tax purposes is computed by:(A) adding:(i) the amount reportable as income on lines 1, 2a, 3, 4, 7, and 8 of Internal Revenue Service Form 1041;(ii) the amount reportable as income on lines 3, 4, 32, and 37 of Internal Revenue Service Form 1040, Schedule E;(iii) the amounts reportable as income on line 11, plus line 2 or line 45, Internal Revenue Service Form 1040, Schedule F; and(iv) any total revenue reported by a lower tier entity as includable in the taxable entity's total revenue under Tax Code, §171.1015(b); and(B) subtracting, to the extent included in the calculation under subparagraph (A) of this paragraph:(i) bad debt expensed for federal income tax purposes that corresponds to items of gross receipts included for the current reporting period or a past reporting period;(ii) foreign royalties and foreign dividends, including amounts determined under Internal Revenue Code, §78 or §§951 - 964. Subtractions under this clause do not include FDII or GILTI, as defined by the Tax Cuts and Jobs Act of 2017, or FDDEI or NCTI, as defined by the One Big Beautiful Bill Act of 2025;(iii) net distributive income from a taxable entity treated as a partnership or as an S corporation for federal income tax purposes, except as provided by subsection (c)(4) of this section;(iv) items of income attributable to an entity that is a disregarded entity for federal income tax purposes; and(v) other amounts authorized by subsection (e) of this section.(5) Single member limited liability company (SMLLC) filing as a sole proprietorship. For the purpose of computing its taxable margin, the total revenue of a taxable entity registered as a single member limited liability company and filing as a sole proprietorship for federal income tax purposes is computed by:(A) adding:(i) the amount reportable as income on line 3 of Internal Revenue Service, Form 1040, Schedule C;(ii) the amount reportable as income on line 17, Internal Revenue Service Form 4797, to the extent that it relates to the (SMLLC);(iii) ordinary income or loss from partnerships, S corporations, estates and trusts, Internal Revenue Service Form 1040, Schedule E, to the extent that it relates to the (SMLLC);(iv) the amount reportable as income on line 16 of Internal Revenue Service Form 1040, Schedule D, to the extent that it relates to the (SMLLC);(v) the amounts reportable as income on lines 3 and 4, Internal Revenue Service Form 1040, Schedule E, to the extent that it relates to the (SMLLC);(vi) the amounts reportable as income on line 11, plus line 2 or line 45, Internal Revenue Service Form 1040, Schedule F, to the extent that it relates to the (SMLLC);(vii) the amount reportable as income on line 6 of Internal Revenue Service Form 1040, Schedule C, that has not already been included in this subparagraph; and(viii) any total revenue reported by a lower tier entity as includable in the taxable entity's total revenue under Tax Code, §171.1015(b); and(B) subtracting, to the extent included in the calculation under subparagraph (A) of this paragraph:(i) bad debt expensed for federal income tax purposes that corresponds to items of gross receipts included for the current reporting period or a past reporting period;(ii) foreign royalties and foreign dividends, including amounts determined under Internal Revenue Code, §78 or §§951 - 964. Subtractions under this clause do not include FDII or GILTI, as defined by the Tax Cuts and Jobs Act of 2017, or FDDEI or NCTI, as defined by the One Big Beautiful Bill Act of 2025;(iii) net distributive income from a taxable entity treated as a partnership or as an S corporation for federal income tax purposes, except as provided by subsection (c)(4) of this section;(iv) items of income attributable to an entity that is a disregarded entity for federal income tax purposes; and(v) other amounts authorized by subsection (e) of this section.(6) Other taxable entities. For a taxable entity other than a taxable entity treated for federal income tax purposes as a corporation, S corporation, partnership, trust, or single member limited liability company filing as a sole proprietorship, the total revenue shall be an amount determined in a manner substantially equivalent to the amount calculated for the entities listed in this subsection.(e) Exclusions from total revenue. Except as otherwise provided in this section and only to the extent included in the calculation of total revenue under subsection (d)(1) - (6) of this section, the following items shall be excluded from total revenue:(1) Flow-through funds mandated by law or fiduciary duty. Flow-through funds that are mandated by law or fiduciary duty to be distributed to other entities or persons, including taxes collected from a third party by the taxable entity and remitted by the taxable entity to a taxing authority.(A) Allowed exclusions include, but are not limited to, taxes imposed by law on a third party but collected by the taxable entity and remitted by it to a taxing authority. Examples include, but are not limited to, state sales tax and the Texas hotel occupancy tax.(B) For excise taxes, only those entities that collect and remit the tax to the taxing authority may exclude the tax from total revenue. Excise taxes include, but are not limited to, motor fuels taxes and tobacco taxes.(C) Taxes imposed by law on the taxable entity itself are not allowed as flow-through funds and cannot be excluded from total revenue. Examples include, but are not limited to, the Texas mixed beverage gross receipts tax and the Texas franchise tax. (D) Payments of monetary awards in judgments and administrative orders are flow-through funds mandated by law if the judgments or orders are based on a statutory directive to distribute revenue to another entity or person. An example of a flow-through fund mandated by law is the public performance royalty based on a percentage of licensee gross revenues, which is mandated by a Copyright Royalty Board order pursuant to 17 U.S.C., §112 (Limitation on executive rights: Ephemeral recordings) and §114 (Scope of exclusive rights and sound recordings). Examples of flow-through funds that are not mandated by law are payments of judgments awarding contract or tort damages, agreed payments pursuant to antitrust consent decrees, and agreed payments to obtain permit approvals. (2) Flow-through funds mandated by contract or subcontract. Flow-through funds that are mandated by contract or subcontract to be distributed to other entities or persons are limited to:(A) sales commissions, as that term is defined by subsection (b)(16) of this section, to non-employees, including split-fee real estate commissions;(B) the tax basis as determined under the Internal Revenue Code of securities underwritten; and(C) subcontracting payments made under a contract or subcontract entered into by the taxable entity to provide services, labor, or materials in connection with the actual or proposed design, construction, remodeling, remediation, or repair of improvements on real property or the location of the boundaries of real property. For the purpose of this paragraph, a payment is a subcontracting payment when the following requirements are met: (i) The payment is made for services, labor, or material that the taxpayer is obligated and compensated by its customer to provide; (ii) the taxpayer has a contractual obligation to compensate its subcontractor; and (iii) the connection between the payment and the actual or proposed design, construction, remodeling, or repair of improvements on real property or the location of the boundaries of real property is more than tangential. However, the taxpayer's subcontractor is not required to effect a material or physical change to the real property. (3) Principal repayments. A taxable entity that is a lending institution shall exclude the principal repayment of loans.(4) Tax basis of securities and loans. A taxable entity shall exclude the tax basis, as determined under the Internal Revenue Code, of securities and loans sold.(5) Legal services. A taxable entity that provides legal services shall exclude:(A) the following flow-through funds that are mandated by law, contract, or fiduciary duty to be distributed to the claimant by the claimant's attorney or to other entities or persons on behalf of a claimant by the claimant's attorney:(i) damages due the claimant;(ii) funds subject to a lien or other contractual obligation arising out of the representation, other than fees owed to the attorney;(iii) funds subject to a subrogation interest or other third-party contractual claim; and(iv) fees paid an attorney in the matter who is not a member, partner, shareholder, or employee of the taxable entity;(B) reimbursement of the taxable entity's expenses incurred in prosecuting a claimant's matter that are specific to the matter, are reimbursed on a dollar-for-dollar basis, and are not estimated amounts, such as general operating expenses; and(C) regardless of whether it was included in the calculation of total revenue under subsection (d) of this section, $500 per pro bono services case handled by the attorney, but only if the attorney maintains records of the pro bono services for auditing purposes in accordance with the manner in which those services are reported to the State Bar of Texas.(6) Pharmacy cooperative or network. A taxable entity that is a pharmacy cooperative shall exclude flow-through funds from rebates from pharmacy wholesalers that are distributed to the pharmacy cooperative's shareholders. A taxable entity that provides a pharmacy network shall exclude reimbursements, pursuant to contractual agreements, for payments to pharmacies in the pharmacy network.(7) Professional employer organization. A taxable entity that is a professional employer organization shall exclude payments received from a client for wages, payroll taxes on those wages, employee benefits, and workers' compensation benefits for the covered employees of the client. A professional employer organization cannot exclude payments received from a client for payments made to independent contractors assigned to the client and reportable on Internal Revenue Service Form 1099.(8) Dividends and interest from federal obligations. A taxable entity shall exclude dividends and interest received from federal obligations.(9) Management company. A taxable entity that is a management company shall exclude reimbursements of specified costs incurred in its conduct of the active trade or business of a managed entity, including wages and cash compensation as determined under Tax Code, §171.1013(a) and (b).(10) Health care provider. A taxable entity that is a health care provider shall exclude:(A) the total amount of payments, including co-payments and deductibles from the patient or supplemental insurance, received:(i) under the Medicaid program, Medicare program, Indigent Health Care and Treatment Act (Health and Safety Code, Chapter 61), and Children's Health Insurance Program (CHIP), including any plans under these programs and capitation awards from the Centers for Medicare & Medicaid Services transferred from another entity in the health care provider's corporate structure;(ii) for professional services provided in relation to a workers' compensation claim under Labor Code, Title 5 (Texas Workers' Compensation Act);(iii) for professional services provided to a beneficiary rendered under the TRICARE military health system, including any plans under this program;(iv) from a third-party agent or administrator for revenue earned under clauses (i) - (iii) of this subparagraph; and(B) the actual costs, regardless of whether it was included in the calculation of total revenue under subsection (d)(1) - (6) of this section, of uncompensated care provided, but only if the provider maintains records of the uncompensated care for auditing purposes and, if the provider later receives payment for all or part of that care, the provider adjusts the amount excluded for the tax year in which the payment is received.(11) Health care institution. A health care provider that is a health care institution shall exclude 50% of the exclusion described in paragraph (10) of this subsection.(12) Federal government and armed forces. A taxable entity shall exclude all revenue received that is directly derived from the operation of a facility that is:(A) located on property owned or leased by the federal government; and(B) managed or operated primarily to house members of the armed forces of the United States.(13) Oil and gas revenue from low-producing wells.(A) During the dates certified by the comptroller in which the monthly average closing price of West Texas Intermediate crude oil is below $40 per barrel, as recorded on the New York Mercantile Exchange, a taxable entity shall exclude revenue received from the sale of oil produced from an oil well designated by the Railroad Commission of Texas or similar authority of another state whose production averages less than 10 barrels a day over a 90-day period.(B) During the dates certified by the comptroller in which the average closing price of gas is below $5 per MMBtu, as recorded on the New York Mercantile Exchange, a taxable entity shall exclude revenue received from the sale of gas produced from a gas well designated by the Railroad Commission of Texas or similar authority of another state whose production averages less than 250 mcf a day over a 90-day period.(14) Qualified destination management company. Effective for reports originally due on or after January 1, 2010, a taxable entity that is a qualified destination management company shall exclude payments made to other entities or persons to provide services, labor, or materials in connection with the provision of destination management services.(15) Qualified live event promotion company. Effective for reports originally due on or after January 1, 2012, a taxable entity that is a qualified live event promotion company shall exclude payments made to artists in connection with the provision of a live entertainment event or live event promotion services.(16) Qualified courier and logistics company. Effective for reports originally due on or after January 1, 2012, a taxable entity that is a qualified courier and logistics company shall exclude subcontracting payments made by the taxable entity to nonemployee agents for the performance of delivery services.(17) Aggregate transportation company. Effective for reports originally due on or after January 1, 2014, a taxable entity that is primarily engaged in the business of transporting aggregates shall exclude subcontracting payments made to nonemployee agents for the performance of delivery services. \"Aggregates\" means any commonly recognized construction material removed or extracted from the earth, including dimension stone, crushed and broken limestone, crushed and broken granite, other crushed and broken stone, construction sand and gravel, industrial sand, dirt, soil, cementitious material, and caliche.(18) Barite transportation company. Effective for reports originally due on or after January 1, 2014, a taxable entity that is primarily engaged in the business of transporting barite shall exclude subcontracting payments to nonemployee agents for the performance of transportation services. \"Barite\" means barium sulfate (BaSO4), a mineral used as a weighing agent in oil and gas exploration.(19) Landman services company. Effective for reports originally due on or after January 1, 2014, a taxable entity that is primarily engaged in the business of performing landman services shall exclude subcontracting payments made to nonemployees for the performance of landman services. (20) Vaccine. Effective for reports originally due on or after January 1, 2014, a taxable entity shall exclude the actual cost paid for a vaccine.(21) Waterway transportation company. Effective for reports originally due on or after January 1, 2014, a taxable entity primarily engaged in the business of transporting goods by waterway that does not subtract cost of goods sold in computing taxable margin shall exclude direct costs of providing transportation services by intrastate or interstate waterways to the same extent that a taxable entity that sells in the ordinary course of business real or tangible personal property would be authorized by Tax Code, §171.1012 (Determination of Cost of Goods Sold), to subtract those costs as costs of goods sold in computing its taxable margin, notwithstanding Tax Code, §171.1012(e)(3).(22) Agricultural aircraft operation company. Effective for reports originally due on or after January 1, 2014, a taxable entity primarily engaged in the business of providing services as an agricultural aircraft operation, as defined by 14 C.F.R. §137.3 (Definitions), shall exclude the cost of labor, equipment, fuel, and materials used in providing those services.(23) Motor carrier company. Effective for reports originally due on or after January 1, 2014, a taxable entity that is registered as a motor carrier under Transportation Code, Chapter 643, shall exclude flow-through revenue derived from taxes and fees.(24) Performing rights society. Effective for payments received on or after June 4, 2019, a taxable entity that is a performing rights society that licenses the public performance of nondramatic musical works on behalf of a copyright owner shall exclude payments made to the public performance rights holder and the copyright owner for whom the taxable entity licenses the public performance.(25) Qualifying loan or grant proceeds related to COVID-19 relief. Effective for reports originally due on or after January 1, 2021, a taxable entity shall exclude qualifying loan or grant proceeds, as defined under Tax Code, §171.10131 (Provisions Related to Certain Money Received for COVID-19 Relief). (26) Qualifying grant proceeds related to broadband deployment. Effective for reports originally due on or after January 1, 2023, a taxable entity shall exclude qualifying grant proceeds, as defined under Tax Code, §171.10132 (Provisions Related to Certain Grants Received for Broadband Deployment in Texas).(f) Exemptions. Effective June 16, 2021, the following items related to Winter Storm Uri are exempt from the franchise tax and are not included in total revenue:(1) Gas utilities:(A) any interest on customer rate relief bonds, as defined by Utilities Code, §104.362;(B) the sale or purchase of customer rate relief bonds issued under Utilities Code, Subchapter I (Customer Rate Relief Bonds);(C) revenue derived from services performed in the issuance or transfer of customer rate relief bonds issued under Utilities Code, Subchapter I; and(D) a gas utility's receipt of customer rate relief charges, as defined under Utilities Code, §104.362 (Definitions); (2) Electric markets:(A) the transfer and receipt of default charges, as defined under Utilities Code, §39.602 (Definitions);(B) transactions involving the transfer and ownership of uplift property, as described by Utilities Code, §39.662 (Property rights); and(C) the receipt of uplift charges, as defined under Utilities Code, §39.652 (Definitions);(3) Electric Cooperatives:(A) transactions involving the transfer and ownership of securitized property, as defined under Utilities Code, §41.152 (Definitions); and(B) the receipt of securitized charges, as defined under Utilities Code, §41.152.",
            "sourceNote": "Source Note: The provisions of this §3.587 adopted\r\nto be effective January 1, 2008, 32 TexReg 10028; amended to be effective\r\nJanuary 1, 2009, 33 TexReg 10503; amended to be effective December\r\n31, 2009, 34 TexReg 9470; amended to be effective September 30, 2012,\r\n37 TexReg 7487; amended to be effective March 1, 2026, 51 TexReg 1162."
        },
        {
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            "currentRecordId": "190180",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "V",
                "label": "FRANCHISE TAX"
            },
            "rule": {
                "number": "§3.588",
                "label": "Margin: Cost of Goods Sold"
            },
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                "recordId": "211359",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Effective Date. The provisions of this section apply to franchise tax reports originally due on or after January 1, 2008, except as otherwise noted.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Arm's length--The standard of conduct under which entities that are not related parties and that have substantially equal bargaining power, each acting in its own interest, would negotiate or carry out a particular transaction.(2) Computer program--A series of instructions that are coded for acceptance or use by a computer system and that are designed to permit the computer system to process data and provide results and information. The series of instructions may be contained in or on magnetic tapes, printed instructions, or other tangible or electronic media.(3) Goods--Real or tangible personal property sold in the ordinary course of business of a taxable entity.(4) Heavy construction equipment--Self-propelled, self-powered, or pull-type equipment that weighs at least 3,000 pounds and is intended to be used for construction. The term does not include a motor vehicle required to be titled and registered.(5) Lending institution--An entity that makes loans and:(A) is regulated by the Federal Reserve Board, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Commodity Futures Trading Commission, the Office of Thrift Supervision, the Texas Department of Banking, the Office of Consumer Credit Commissioner, the Credit Union Department, or any comparable regulatory body;(B) is licensed by, registered with, or otherwise regulated by the Department of Savings and Mortgage Lending;(C) is a \"broker\" or \"dealer\" as defined by the Securities Exchange Act of 1934 at 15 U.S.C. §78c; or(D) provides financing to unrelated parties solely for agricultural production.(6) Principal business activity--The activity in which a taxable entity derives the largest percentage of its \"total revenue\".(7) Production--Construction, manufacture, installation occurring during the manufacturing or construction process, development, mining, extraction, improvement, creation, raising, or growth.(8) Related party--A person, corporation, or other entity, including an entity that is treated as a pass-through or disregarded entity for purposes of federal taxation, whether the person, corporation, or entity is subject to the tax under this chapter or not, in which one person, corporation, or entity, or set of related persons, corporations, or entities, directly or indirectly owns or controls a controlling interest in another entity.(9) Service costs--Indirect costs and administrative overhead costs that can be identified specifically with a service department or function, or that directly benefit or are incurred by reason of a service department or function. For purposes of this section, a service department includes personnel (including costs of recruiting, hiring, relocating, assigning, and maintaining personnel records or employees); accounting (including accounts payable, disbursements, and payroll functions); data processing; security; legal; general financial planning and management; and other similar departments or functions.(10) Tangible personal property--(A) includes:(i) personal property that can be seen, weighed, measured, felt, or touched or that is perceptible to the senses in any other manner;(ii) films, sound recordings, videotapes, live and prerecorded television and radio programs, books, and other similar property embodying words, ideas, concepts, images, or sound, without regard to the means or methods of distribution or the medium in which the property is embodied, for which, as costs are incurred in producing the property, it is intended or is reasonably likely that any medium in which the property is embodied will be mass-distributed by the creator or any one or more third parties in a form that is not substantially altered; and(iii) a computer program, as defined in paragraph (2) of this subsection.(B) does not include:(i) intangible property or(ii) services.(c) General rules for determining cost of goods sold.(1) Affiliated entities. Notwithstanding any other provision of this section, a payment made by one member of an affiliated group to another member of that affiliated group not included in the combined group may be subtracted as a cost of goods sold only if it is a transaction made at arm's length.(2) Capitalization or expensing of certain costs. The election to capitalize or expense allowable costs is made by filing the franchise tax report using one method or the other. The election is for the entire period on which the report is based and may not be changed after the due date or the date the report is filed, whichever is later. A taxable entity that is allowed a subtraction by this section for a cost of goods sold and that is subject to Internal Revenue Code, §§263A, 460, or 471 (including a taxable entity subject to §471 that elects to use LIFO under §472), may elect to:(A) Capitalize those costs in the same manner and to the same extent that the taxable entity capitalized those costs on its federal income tax return, except for those costs excluded under subsection (g) of this section, or in accordance with subsections (d), (e), and (f) of this section. A taxable entity that elects to capitalize costs on its first report due on or after January 1, 2008, may include, in beginning inventory, costs allowable for franchise tax purposes that would be in beginning inventory for federal income tax purposes.(i) If the taxable entity elects to capitalize those costs allowed under this section as a cost of goods sold, it must capitalize each cost allowed under this section that it capitalized on its federal income tax return.(ii) If the taxable entity later elects to begin expensing those costs allowed under this section as a cost of goods sold, the entity may not deduct any cost incurred before the first day of the period on which the report is based, including any ending inventory from a previous report.(B) Expense those costs, except for those costs excluded under subsection (g) of this section, or in accordance with subsections (d), (e), and (f) of this section.(i) If the taxable entity elects to expense those costs allowed under this section as a cost of goods sold, costs incurred before the first day of the period on which the report is based may not be subtracted as a cost of goods sold.(ii) If the taxable entity later elects to begin capitalizing those costs allowed under this section as a cost of goods sold, costs incurred prior to the accounting period on which the report is based may not be capitalized.(3) Election to subtract cost of goods sold. A taxable entity, if eligible, must make an annual election to subtract cost of goods sold in computing margin by the due date, or at the time the report is filed, whichever is later. The election to subtract cost of goods sold is made by filing the franchise tax report using the cost of goods sold method. An amended report may be filed within the time allowed by Tax Code, §111.107 to change the method of computing margin to the cost of goods sold deduction method or from the cost of goods sold deduction method to the compensation deduction method, 70% of total revenue, or, if otherwise qualified, the E-Z computation method. An election may also be changed as part of an audit. See §3.584 of this title (relating to Margin: Reports and Payments).(4) Exclusions from total revenue. Any expense excluded from total revenue (see §3.587 of this title (relating to Margin: Total Revenue)) may not be included in the determination of cost of goods sold.(5) Film and broadcasting. A taxable entity whose principal business activity is film or television production or broadcasting or the sale of broadcast rights or the distribution of tangible personal property described by subsection (b)(10)(A)(ii) of this section, or any combination of these activities, and who elects to use cost of goods sold to determine margin, may include as cost of goods sold:(A) the costs described in this section in relation to the property;(B) depreciation, amortization, and other expenses directly related to the acquisition, production, or use of the property, including(C) expenses for the right to broadcast or use the property.(6) Lending institutions. Notwithstanding any other provision of this section, if the taxable entity is a lending institution that offers loans to the public and elects to subtract cost of goods sold, the entity may subtract as a cost of goods sold an amount equal to interest expense.(A) This paragraph does not apply to entities primarily engaged in an activity described by category 5932 of the 1987 Standard Industrial Classification Manual published by the federal Office of Management and Budget.(B) For purposes of this subsection, an entity engaged in lending to unrelated parties solely for agricultural production offers loans to the public.(7) Mixed transactions. If a transaction contains elements of both a sale of tangible personal property and a service, a taxable entity may only subtract as cost of goods sold the costs otherwise allowed by this section in relation to the tangible personal property sold.(8) Movie theaters. Effective for reports originally due on or after September 1, 2013, if a taxable entity that is a movie theater elects to subtract cost of goods sold, the cost of goods sold for the taxable entity shall be the costs described by this section in relation to the acquisition, production, exhibition, or use of a film or motion picture, including expenses for the right to use the film or motion picture, and the costs otherwise allowed by this section in relation to concessions sold.(9) Owner of goods. A taxable entity may make a subtraction under this section in relation to the cost of goods sold only if that entity owns the goods.(A) A taxable entity that holds the legal title to the goods is presumed to be the owner of the goods for purposes of this section. A taxable entity may rebut this presumption by proving an ownership right superior to the legal title holder based on all of the facts and circumstances, including the various benefits and burdens of ownership vested with the taxable entity.(B) A taxable entity furnishing labor or materials to a project for the construction, improvement, remodeling, repair, or industrial maintenance (as the term \"maintenance\" is defined in §3.357 of this title (relating to Nonresidential Real Property Repair, Remodeling, and Restoration; Real Property Maintenance)) of real property is considered to be an owner of the labor or materials and may include the costs, as allowed by this section, in the computation of the cost of goods sold. For purposes of determining whether a taxable entity is considered an owner of the labor or materials under this paragraph, and eligible to deduct costs as described in subsections (d), (e), and (f) of this section, the following terms mean:(i) Labor--Labor used in the direct prosecution of the project.(ii) Material--All or part of:(I) the material, machinery, fixtures, or tools incorporated into the project, consumed in the direct prosecution of the project, or ordered and delivered for incorporation or consumption;(II) rent at a reasonable rate and actual running repairs at a reasonable cost for construction equipment used or reasonably required and delivered for use in the direct prosecution of the project at the site of the project; or(III) power, water, fuel, and lubricants consumed or ordered and delivered for consumption in the direct prosecution of the project.(C) Solely for the purposes of this section, a taxable entity shall be treated as the owner of goods being manufactured or produced by the entity under a contract with the federal government, including any subcontracts that support a contract with the federal government, notwithstanding that the Federal Acquisition Regulations may require that title or risk of loss with respect to those goods be transferred to the federal government before the manufacture or production of those goods is complete.(10) Pipeline entities. Effective for reports originally due on or after January 1, 2014, and notwithstanding paragraph (9) of this subsection and subsection (g)(3) of this section, a pipeline entity that provides services for others related to the product that the pipeline does not own and to which this paragraph applies may subtract as a cost of goods sold its depreciation, operations, and maintenance costs allowed by this section related to the services provided.(A) For purposes of this paragraph, \"pipeline entity\" means an entity:(i) that owns or leases and operates the pipeline by which the product is transported for others and only to that portion of the product to which the entity does not own title; and(ii) that is primarily engaged in gathering, storing, transporting, or processing crude oil, including finished petroleum products, natural gas, condensate, and natural gas liquids, except for a refinery installation that manufactures finished petroleum products from crude oil.(B) For purposes of this paragraph, \"processing\" means the physical or mechanical removal, separation, or treatment of crude oil, including finished petroleum products, natural gas, condensate, and natural gas liquids after those materials are produced from the earth. The term does not include the chemical or biological transformation of those materials.(11) Rental or leasing companies. Notwithstanding any other provision of this section:(A) a motor vehicle rental company that remits a tax on gross receipts imposed under Tax Code, §152.026, or a motor vehicle leasing company, may subtract as costs of goods sold the costs otherwise allowed by this section in relation to motor vehicles that the company rents or leases in the ordinary course of its business;(B) a heavy construction equipment rental or leasing company may subtract as costs of goods sold the costs otherwise allowed by this section in relation to heavy construction equipment that the company rents or leases in the ordinary course of its business; and(C) a railcar rolling stock rental or leasing company may subtract as costs of goods sold the costs otherwise allowed by this section in relation to railcar rolling stock that the company rents or leases in the ordinary course of its business.(12) Reporting methods. A taxable entity shall determine its cost of goods sold, except as otherwise provided by this section, in accordance with the methods used on the federal income tax return on which the report under this chapter is based. This subsection does not affect the type or category of cost of goods sold that may be subtracted under this section.(13) Restaurants and bars. Entities engaged in activities described in Major Group 58 (Eating and Drinking Places) of the Standard Industrial Classification Manual may deduct for cost of goods sold only those expenses allowed under subsections (d), (e) and (f) of this section, that relate to the acquisition and production of food and beverages. Any costs related to both the production of food and beverages and to other activities must be allocated to production on a reasonable basis.(d) Direct costs. The cost of goods sold includes all direct costs of acquiring or producing the goods. Direct costs include:(1) Labor costs. A taxable entity may include in its cost of goods sold calculation labor costs, other than service costs, that are properly allocable to the acquisition or production of goods and are of the type subject to capitalization or allocation under Treasury Regulation Sections 1.263A-1(e) or 1.460-5 as direct labor costs, indirect labor costs, employee benefit expenses, or pension and other related costs, without regard to whether the taxable entity is required to or actually capitalizes such costs for federal income tax purposes.(A) For purposes of this section, labor costs include W-2 wages, IRS Form 1099 payments for labor, temporary labor expenses, payroll taxes, pension contributions, and employee benefits expenses, including, but not limited to, health insurance and per diem reimbursements for travel expenses, to the extent deductible for federal tax purposes.(B) Labor costs under this paragraph shall not include any type of costs includable in subsection (f) or excluded in subsection (g) of this section. Costs for labor that do not meet the requirements set forth in this paragraph may still be subtracted as a cost of goods sold if the cost is allowed under another provision of this section. For example, service costs may be included in a taxable entity's cost of goods sold calculation to the extent provided by subsection (f) of this section.(2) Incorporated materials. A taxable entity may include in its cost of goods sold calculation the cost of materials that are an integral part of specific property produced.(3) Consumable materials. A taxable entity may include in its cost of goods sold calculation the cost of materials that are consumed in the ordinary course of performing production activities.(4) Handling costs. A taxable entity may include in its cost of goods sold calculation handling costs, including costs attributable to processing, assembling, repackaging, and inbound transportation.(5) Storage costs. A taxable entity may include in its cost of goods sold calculation storage costs, including the costs of carrying, storing, or warehousing property, subject to subsection (g) of this section, concerning excluded costs.(6) Depreciation, depletion, and amortization. A taxable entity may include in its cost of goods sold calculation depreciation, depletion, and amortization reported on the federal income tax return on which the report under this chapter is based, to the extent associated with and necessary for the production of goods, including recovery described by Internal Revenue Code, §197, and property described in Internal Revenue Code, §179.(7) Rentals and leases. A taxable entity may include in its cost of goods sold calculation the cost of renting or leasing equipment, facilities, or real property directly used for the production of the goods, including pollution control equipment and intangible drilling and dry hole costs.(8) Repair and maintenance. A taxable entity may include in its cost of goods sold calculation the cost of repairing and maintaining equipment, facilities, or real property directly used for the production of the goods, including pollution control devices.(9) Research and development. A taxable entity may include in its cost of goods sold calculation the costs attributable to research, experimental, engineering, and design activities directly related to the production of the goods, including all research or experimental expenditures described by Internal Revenue Code, §174, regardless of whether the taxable entity is the producer of the good it sells.(10) Mineral production. A taxable entity may include in its cost of goods sold calculation geological and geophysical costs incurred to identify and locate property that has the potential to produce minerals.(11) Taxes. A taxable entity may include in its cost of goods sold calculation taxes paid in relation to acquiring or producing any material, including property taxes paid on buildings and equipment, and taxes paid in relation to services that are a direct cost of production.(12) Electricity. A taxable entity may include in its cost of goods sold calculation the cost of producing or acquiring electricity sold.(13) A taxable entity may include in its cost of goods sold calculation a contribution to a partnership in which the taxable entity owns an interest that is used to fund activities, the costs of which would otherwise be treated as cost of goods sold of the partnership, but only to the extent that those costs are related to goods distributed to the contributing taxable entity as goods-in-kind in the ordinary course of production activities rather than being sold by the partnership.(e) Additional costs. In addition to the amounts includable under subsection (d) of this section, the cost of goods sold includes the following costs in relation to the taxable entity's goods:(1) deterioration of the goods;(2) obsolescence of the goods;(3) spoilage and abandonment, including the costs of rework, reclamation, and scrap;(4) if the property is held for future production, preproduction direct costs allocable to the property, including storage and handling costs, as provided by subsection (d)(4) and (5) of this section;(5) postproduction direct costs allocable to the property, including storage and handling costs, as provided by subsection (d)(4) and (5) of this section;(6) the cost of insurance on a plant or a facility, machinery, equipment, or materials directly used in the production of the goods;(7) the cost of insurance on the produced goods;(8) the cost of utilities, including electricity, gas, and water, directly used in the production of the goods;(9) the costs of quality control, including replacement of defective components pursuant to standard warranty policies, inspection directly allocable to the production of the goods, and repairs and maintenance of goods; and(10) licensing or franchise costs, including fees incurred in securing the contractual right to use a trademark, corporate plan, manufacturing procedure, special recipe, or other similar right directly associated with the goods produced.(f) Indirect or administrative overhead costs. A taxable entity may subtract as a cost of goods sold service costs, as defined in subsection (b)(9) of this section, that it can demonstrate are reasonably allocable to the acquisition or production of goods. The amount subtracted may not exceed 4.0% of total indirect and administrative overhead costs.(1) Any costs already subtracted under subsections (d) or (e) of this section may not be subtracted under this subsection.(2) Any costs excluded under subsection (g) of this section may not be subtracted under this subsection.(g) Costs not included. The cost of goods sold does not include the following costs in relation to the taxable entity's goods:(1) the cost of renting or leasing equipment, facilities, or real property that is not used for the production of the goods;(2) selling costs, including employee expenses related to sales;(3) distribution costs, including outbound transportation costs;(4) advertising costs;(5) idle facility expenses;(6) rehandling costs;(7) bidding costs, which are the costs incurred in the solicitation of contracts ultimately awarded to the taxable entity;(8) unsuccessful bidding costs, which are the costs incurred in the solicitation of contracts not awarded to the taxable entity;(9) interest, including interest on debt incurred or continued during the production period to finance the production of the goods;(10) income taxes, including local, state, federal, and foreign income taxes, and franchise taxes that are assessed on the taxable entity based on income;(11) strike expenses, including costs associated with hiring employees to replace striking personnel, but not including the wages of the replacement personnel, costs of security, and legal fees associated with settling strikes;(12) officers' compensation;(13) costs of operation of a facility that is:(A) located on property owned or leased by the federal government; and(B) managed or operated primarily to house members of the armed forces of the United States;(14) any compensation paid to an undocumented worker used for the production of goods, provided that, as used in this paragraph only, the following terms shall have the following meanings:(A) \"undocumented worker\" means a person who is not lawfully entitled to be present and employed in the United States; and(B) \"goods\" includes the husbandry of animals, the growing and harvesting of crops, and the severance of timber from realty; and(15) costs funded by a partnership contribution, to the extent that the contributing taxable entity made the cost of goods sold deduction under subsection (d)(13) of this section.",
            "sourceNote": "Source Note: The provisions of this §3.588 adopted to be effective January 1, 2008, 32 TexReg 10034; amended to be effective May 21, 2009, 34 TexReg 2982; amended to be effective June 5, 2013, 38 TexReg 3415; amended to be effective July 13, 2016, 41 TexReg 5073; amended to be effective March 22, 2018, 43 TexReg 1640."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=211359&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "211359",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "V",
                "label": "FRANCHISE TAX"
            },
            "rule": {
                "number": "§3.589",
                "label": "Margin: Compensation"
            },
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            "ruleBody": "(a) Effective date. The provisions of this section apply to franchise tax reports originally due on or after January 1, 2008, except as otherwise noted.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Client--(A) any person who enters into a professional employer services agreement with a license holder; or(B) any person who enters into an agreement with a temporary employment service, as defined under Labor Code, §93.001(2) (Definitions), for the purpose of having individuals supplement their workforce.(2) Covered employee--An individual having a co-employment relationship with a professional employer organization and a client.(3) Management company--A corporation, limited liability company or other limited liability entity that conducts all or part of the active trade or business of another entity (the managed entity) in exchange for a management fee and reimbursement of specified costs incurred in the conduct of the active trade or business of the managed entity, including wages and cash compensation as determined under Tax Code, §171.1013(a) and (b) (Determination of Compensation). To qualify as a management company:(A) the entity must perform active and substantial management and operational functions, control and direct the daily operations, and provide services such as accounting, general administration, legal, financial or similar services; or(B) if the entity does not conduct all of the active trade or business of an entity, the entity must conduct all operations, as provided in subparagraph (A) of this paragraph, for a distinct revenue-producing component of the entity.(4) Natural person--A human being or the estate of a human being. The term does not include a purely legal entity given recognition as the possessor of rights, privileges, or responsibilities, such as a corporation, limited liability company, partnership, or trust.(5) Net distributive income--The net amount of income, gain, deduction, or loss relating to a pass-through entity or disregarded entity reportable to the owners for the tax year of the entity.(6) Professional employer organization--A business entity that offers professional employer services or a temporary employment service.(7) Small employer--A person who employed an average of at least two employees but not more than 50 employees on business days during the preceding calendar year, as defined under Insurance Code, §1501.002 (Definitions). For purposes of this definition, a partnership is the employer of a partner.(8) Undocumented worker--A person who is not lawfully entitled to be present and employed in the United States.(9) Wages and cash compensation--(A) the amount entered in the Medicare wages and tips box of Internal Revenue Service Form W-2 or any subsequent form with a different number or designation that substantially provides the same information for the period on which the tax is based;(B) any wages and cash compensation paid to employees in a foreign country and reported on forms issued by the foreign company that are substantially equivalent to the Internal Revenue Service Form W-2;(C) the amount of net distributive income (not to include net distributive income that has been subtracted from total revenue), regardless of whether cash or property pertaining to such income is actually distributed and regardless of whether it is a positive or negative amount, from one of the following entities to partners or owners during the accounting period but only if the person receiving the amount is a natural person:(i) taxable entities treated as partnerships for federal income tax purposes;(ii) limited liability companies and corporations treated as S corporations for federal income tax purposes; and(iii) limited liability companies treated as sole proprietorships for federal income tax purposes;(D) stock awards and stock options deducted for federal income tax purposes, to the extent not included in subparagraph (A) of this paragraph.(c) Compensation. Subject to Tax Code, §171.1014 (Combined Reporting; Affiliated Group Engaged in Unitary Business), a taxable entity that elects to subtract compensation (see subsection (i) of this section) for the purpose of computing its taxable margin under Tax Code, §171.101 (Determination of Taxable Margin), may subtract an amount equal to:(1) subject to subsection (d) of this section, all wages and cash compensation paid by a taxable entity to its officers, directors, owners, partners, and employees up to the following thresholds for any one person per 12-month period on which the tax is based:(A) for reports originally due on or after January 1, 2008, but before January 1, 2010, the taxable entity cannot subtract more than $300,000;(B) for reports originally due on or after January 1, 2010, but before January 1, 2012, the taxable entity cannot subtract more than $320,000;(C) for reports originally due on or after January 1, 2012, but before January 1, 2014, the taxable entity cannot subtract more than $330,000;(D) for reports originally due on or after January 1, 2014, but before January 1, 2016, the taxable entity cannot subtract more than $350,000;(E) for reports originally due on or after January 1, 2016, but before January 1, 2018, the taxable entity cannot subtract more than $360,000;(F) for reports originally due on or after January 1, 2018, but before January 1, 2020, the taxable entity cannot subtract more than $370,000;(G) for reports originally due on or after January 1, 2020, but before January 1, 2022, the taxable entity cannot subtract more than $390,000;(H) for reports originally due on or after January 1, 2022, but before January 1, 2024, the taxable entity cannot subtract more than $400,000; and(2) subject to subsection (e) of this section, the cost of all benefits the taxable entity provides to its officers, directors, owners, partners, and employees.(d) Compensation - excluded items. Compensation does not include:(1) payments made that are reportable on Internal Revenue Form 1099 (or would have been reported if the amount had met the Internal Revenue Service minimum reporting requirement);(2) any expense excluded from total revenue and any net distributive income subtracted from total revenue. See §3.587 of this title (relating to Margin: Total Revenue);(3) an employer's share of payroll taxes;(4) wages or cash compensation paid to an employee whose primary employment is directly associated with the operation of a facility that is located on property owned or leased by the federal government and managed or operated primarily to house members of the armed forces of the United States. See §3.587 of this title; and(5) wages or cash compensation paid to undocumented workers.(e) Benefits. A taxable entity is allowed to subtract the cost of all benefits to the extent deductible for federal income tax purposes that it provides to its officers, directors, owners, partners, and employees.(1) The term \"benefits\" includes employer contributions made to:(A) employees' health savings accounts;(B) health care (for example, this would include contributions to the cost of health insurance);(C) retirement; and(D) workers' compensation.(2) The term \"benefits\" does not include the following:(A) amounts included in the definition of wages and cash compensation; and(B) payroll taxes. (For example, \"payroll taxes\" would include payments to state and federal unemployment compensation funds and payments under the Federal Insurance Contributions Act, Chapter 21 of Subtitle C of the Internal Revenue Code, §§3101 - 3128, the Railroad Retirement Tax Act, Chapter 22 of Subtitle C of the Internal Revenue Code, §§3201 - 3233).(3) The cost of benefits does not include the amount paid by an employee.(f) Professional employer organizations. See §3.587 of this title.(1) A professional employer organization cannot include as compensation the following payments for covered employees:(A) wages and cash compensation;(B) payroll taxes;(C) employee benefits including workers' compensation; and(D) payments made to independent contractors and reportable on Internal Revenue Service Form 1099 (or would have been reported if the amount had met the Internal Revenue Service minimum reporting requirement).(2) A client can include as compensation the following amounts for covered employees:(A) wages and cash compensation; and(B) benefits.(3) A client cannot include as compensation the following:(A) an administrative fee;(B) payments made to a professional employer organization as reimbursement for payments made to independent contractors assigned to the client and reportable on Internal Revenue Service Form 1099 (or would have been reported if the amount had met the Internal Revenue Service minimum reporting requirement); and(C) other costs.(4) A professional employer organization shall determine compensation only for the taxable entity's own employees who are not covered employees.(g) Management company. See §3.587 of this title.(1) A taxable entity that is a management company may not include as wages and cash compensation any amounts reimbursed by a managed entity.(2) A taxable entity that is a managed entity may subtract wages and cash compensation that are reimbursed to the management company.(3) A management company shall determine compensation for only those wages and compensation payments that are not reimbursed by a managed entity.(h) Small employers. This subsection applies to a taxable entity that is a small employer and that has not provided health care benefits to any of its employees in the calendar year preceding the beginning date of its reporting period. Subject to Tax Code, §171.1014, a taxable entity to which this subsection applies that elects to subtract compensation for the purpose of computing its taxable margin under Tax Code, §171.101, may subtract the following health care benefits:(1) amounts as provided under subsection (c) of this section;(2) for the first 12-month period on which margin is based and in which the taxable entity provides health care benefits to all of its employees, an additional amount equal to 50% of the cost of health care benefits provided to its employees for that period; and(3) for the second 12-month period on which margin is based and in which the taxable entity provides health care benefits to all of its employees, an additional amount equal to 25% of the cost of health care benefits provided to its employees for that period.(4) The term \"provide\" does not include amounts paid by the employee, officer, director, etc.(i) Election to subtract compensation. The election to subtract compensation is made by filing the franchise tax report using the compensation method or by amending any report filed within the statute of limitations. A taxable entity may file an amended report for the purpose of correcting a mathematical or other error in a report, or to change its method of computing margin.(j) Expenses paid with qualifying loan or grant proceeds. A taxable entity may include in compensation any expense paid using the qualifying loan or grant proceeds, as defined under Tax Code, §171.10131 (Provisions Related to Certain Money Received for COVID-19 Relief), to the extent the expense is otherwise includable as compensation under this section, even if the taxable entity has excluded the qualifying loan or grant proceeds from its total revenue under §3.587 of this title.",
            "sourceNote": "Source Note: The provisions of this §3.589 adopted to be effective January 1, 2008, 32 TexReg 10038; amended to be effective January 1, 2009, 33 TexReg 10504; amended to be effective December 31, 2009, 34 TexReg 9471; amended to be effective April 19, 2022, 47 TexReg 2031; amended to be effective December 19, 2022, 47 TexReg 8278."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=143854&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "143854",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "V",
                "label": "FRANCHISE TAX"
            },
            "rule": {
                "number": "§3.590",
                "label": "Margin: Combined Reporting"
            },
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                "recordId": "213028",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Effective date. The provisions of this section apply to franchise tax reports originally due on or after January 1, 2008.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Affiliated group--Entities in which a controlling interest is owned by a common owner, either corporate or noncorporate, or by one or more of the member entities.(2) Combined group--Taxable entities that are part of an affiliated group engaged in a unitary business and that are required to file a combined group report under Tax Code, §171.1014.(A) A combined group may not include a taxable entity that conducts business outside the United States if 80% or more of the taxable entity's property and payroll are assigned to locations outside the United States. If either the property factor or payroll factor is zero, the denominator is one. For example, if Corporation Z has no property, but does have payroll located entirely outside the United States, Corporation Z will not be included in the combined group. The combined group may not include a taxable entity that conducts business outside the United States and has no property or payroll if 80% or more of the taxable entity's gross receipts are assigned to locations outside the United States. See Tax Code, §171.1014.(B) A combined group may not include an exempt entity.(C) A combined group must include eligible entities even if those entities do not have nexus as described in §3.586 of this title (relating to Margin: Nexus).(D) Eligible pass-through entities including partnerships, limited liability companies taxed as partnerships under federal law, limited liability companies that are disregarded under federal law and S corporations are included in a combined group.(E) Passive entities are not included in the combined group; however, the pro rata share of net income from a passive entity shall be included in total revenue to the extent it was not generated by the margin of another taxable entity.(3) Combined group report--A report that includes the business of all members of the combined group.(4) Controlling interest.(A) Controlling interest means:(i) for a corporation, either more than 50%, owned directly or indirectly, of the total combined voting power of all classes of stock of the corporation, or more than 50% owned directly or indirectly, of the beneficial ownership interest in the voting stock of the corporation;(ii) for a partnership, association, trust or other entity other than a limited liability company, more than 50%, owned directly or indirectly, of the capital, profits, or beneficial interest in the partnership, association, trust, or other entity;(iii) for a limited liability company, either more than 50%, owned directly or indirectly, of the total membership interest of the limited liability company or more than 50%, owned directly or indirectly, of the beneficial ownership interest in the membership interest of the limited liability company.(B) Examples are as follows:(i) Corporation A owns 10% of Corporation C and 60% of Corporation B, which owns 41% of Corporation C. Corporation A has a controlling interest in Corporation B and a controlling interest in Corporation C of 51% of stock ownership because it has control of the stock owned by Corporation B.(ii) Corporation A owns 10% of Limited Liability Company C and 15% of Corporation B, which owns 90% of Limited Liability Company C. Corporation A does not have controlling interest in Limited Liability Company C and does not have a controlling interest in Corporation B. Corporation B has a controlling interest in Limited Liability Company C.(iii) Individual A owns 100% of 10 corporations, each of which owns 10% of Partnership B. Individual A has a controlling interest in each of the ten corporations and in Partnership B.(iv) Corporation A holds a 70% interest in Partnership B that owns 60% of Limited Liability Company C. Corporation A owns the remaining 40% of Limited Liability Company C. Corporation A owns a controlling interest in Partnership B and, taking into account Company A's direct and indirect ownership of Limited Liability Company C, a 100% controlling interest in Limited Liability Company C.(v) Corporation A owns 10% of Limited Liability Company C and 45% of Corporation B, which owns 90% of Limited Liability Company C. Corporation A would hold a 10% interest in Limited Liability Company C which would not constitute a controlling interest. Corporation B has a controlling interest in Limited Liability Company C.(vi) Partnership P is owned equally by Limited Liability Company A, Limited Liability Company B and Limited Liability Company C. Three unrelated individuals each wholly owns one of the limited liability companies. None of the limited liability companies owns more than 50% of Partnership P. There is no controlling interest.(vii) Individual A and Individual B each owns 50% of Partnership X. Individual A and Individual B each also owns 50% of Partnership Y. Individual A and Individual B are not husband and wife. Since neither individual owns more than 50% of each partnership, neither individual has a controlling interest in the partnerships.(C) Other circumstances. In addition to the foregoing tests, the comptroller may consider any other circumstances that tend to demonstrate that the more than 50% direct or indirect common ownership test was met or was not met.(D) Membership termination. Membership in an affiliated group shall be treated as terminated in any year, or fraction thereof, in which the conditions listed in this paragraph are not met, except as follows:(i) when an affiliate is sold, exchanged, or otherwise disposed of, the membership in an affiliated group shall not be terminated if the requirements of this paragraph are again met immediately after the sale, exchange, or disposition.(ii) The comptroller may treat the affiliated group as remaining in place if the conditions of this paragraph are again met within a period not to exceed two years.(E) Attribution. Except as otherwise provided, an entity is owned when a controlling interest is directly held or the interest is constructively owned. An individual constructively owns stock that is owned by his or her spouse.(F) Membership in more than one group. If an entity is a member of more than one affiliated group, the entity is treated as a member of the affiliated group (or part thereof) with respect to which it has a unitary relationship. If the entity has a unitary relationship with more than one of those affiliated groups, it shall elect to be treated as a member of only one group. The election shall remain in effect until the unitary business relationship between the entity and the other members ceases, or unless revoked with approval of the comptroller.(5) Reporting entity--The combined group's choice of an entity that is:(A) the parent entity, if it is part of the combined group, or(B) the entity that:(i) is included within the combined group;(ii) is subject to Texas' taxing jurisdiction; and(iii) has the greatest Texas business activity during the first period upon which the first report is based, as measured by the Texas receipts after eliminations for that period.(6) Unitary business--A single economic enterprise that is made up of separate parts of a single entity or of a commonly controlled group of entities that are sufficiently interdependent, integrated, and interrelated through their activities so as to provide a synergy and mutual benefit that produces a sharing or exchange of value among them and a significant flow of value to the separate parts. In determining whether a unitary business exists, the comptroller shall consider any relevant factor, including:(A) whether:(i) activities of the group members are in the same general line, such as manufacturing, wholesaling, retailing of tangible personal property, transportation, or finance;(ii) the activities of the group members are steps in a vertically structured enterprise or process, such as the steps involved in the production of natural resources, including exploration, mining, refining, and marketing; or(iii) the members are functionally integrated through the exercise of strong centralized management, such as authority over purchasing, financing, product line, personnel, and marketing.(B) Other factors. In addition, the comptroller may consider other factors that may be applicable, including guidelines in Supreme Court decisions that presume activities are unitary. All affiliated entities are presumed to be engaged in a unitary business.(C) New entities. When a taxable entity acquires another entity, a presumption exists for finding a unitary relationship during the first reporting period. Any party may rebut such presumption by proving that the taxable entities were not unitary. If such presumption is rebutted, then the taxable entities shall not be considered unitary as of the date of acquisition. When a taxable entity forms another taxable entity, a unitary relationship exists as of the date of formation unless the business is not unitary on a longer term basis. An acquired entity is required to file a report for the period prior to acquisition.(D) Non-arm's-length prices. Goods or services or both are supplied at non-arm's length prices between or among entities. Existence of arm's-length pricing between entities, however, does not indicate lack of unity.(E) Existence of benefits from joint, shared or common activity. A discount, cost-saving or other benefit can be shown to result from joint purchases, leaseholds, or other forms of joint, shared or common activities between or among entities.(F) Relationships of joint, shared or common activity to income-producing operations. In determining whether a joint, shared, or common activity is indicative of a unitary relationship, consideration shall be given to the nature and character of the basic operations of each entity. Such consideration shall include, but not be limited to, the entity's sources of supply, its goods or services produced or sold, its labor force, and market to determine whether the joint, shared, or common activity is directly beneficial to, related to, or reasonably necessary to the income-producing activities of the unitary business.(G) Holding entities. The tests for a unitary business established by this section apply in determining whether a holding entity is included or excluded from a unitary business.(7) United States--The 50 states and the District of Columbia. It also includes the territorial waters of the United States and the seabed and subsoil of those submarine areas that are adjacent to the territorial waters of the United States and over which the United States has exclusive rights, in accordance with international law, with respect to the exploration for or exploitation of natural resources. It also includes the possessions and territories of the United States and the Commonwealth of Puerto Rico.(c) Mandatory combined reporting. A combined group shall file a combined group report. A taxable entity that is not included in a combined report must file a separate report if it is doing business in Texas or is chartered or organized in Texas.(d) Determination of combined taxable margin and apportionment.(1) Combined total revenue. A combined group shall determine its total revenue by:(A) determining the total revenue of each of its members as provided by Tax Code, §171.1011 (including §171.1011(h)) and §3.587 of this title (relating to Margin: Total Revenue) as if the member were an individual taxable entity without regard to the no tax due limitation provided by Tax Code, §171.002(d)(2);(B) adding the total revenues of the members determined under subparagraph (A) of this paragraph, together; and(C) subtracting, to the extent included under Tax Code, §§171.1011(c)(1)(A), (c)(2)(A), or (c)(3), items of total revenue received from a member of the combined group.(2) Combined cost of goods sold.(A) A combined group that elects to subtract costs of goods sold shall determine that amount by:(i) determining the cost of goods sold for each of its members as provided by Tax Code, §171.1012 and §3.588 of this title (relating to Margin: Cost of Goods Sold) as if the member were an individual taxable entity;(ii) adding the amounts of cost of goods sold determined under clause (i) of this subparagraph, together; and(iii) subtracting from the amount determined under clause (ii) of this subparagraph, any cost of goods sold amounts paid from one member of the combined group to another member of the combined group, but only to the extent the corresponding item of total revenue was subtracted under paragraph (1)(C) of this subsection.(B) A member of a combined group may claim as cost of goods sold those costs that qualify under Tax Code, §171.1012, if the goods for which the costs are incurred are owned by another member of the combined group.(3) Combined compensation. The combined group may not subtract in relation to a person, more than the wages and cash compensation limitation provided in §3.589(c)(1) of this title (relating to Margin: Compensation), per 12-month period on which margin is based. A combined group that elects to subtract compensation shall determine that amount by:(A) determining the compensation for each of its members as provided by Tax Code, §171.1013 and §3.589 of this title, as if each member were an individual taxable entity;(B) adding the amounts of compensation determined under subparagraph (A) of this paragraph, together; and(C) subtracting from the amount determined under subparagraph (B) of this paragraph, any compensation amounts paid from one member of the combined group to another member of the combined group, but only to the extent the corresponding item of total revenue was subtracted under paragraph (1)(C) of this subsection.(4) Combined groups are eligible to use the 70% of revenue calculation pursuant to Tax Code, §171.101 or, if qualified, the E-Z Computation pursuant to Tax Code, §171.1016. See §3.584 of this title (relating to Margin: Reports and Payments).(5) Combined apportionment.(A) The combined margin is generally apportioned in accordance with §3.591 of this title (relating to Margin: Apportionment).(B) Except as provided in subparagraph (D) of this paragraph, gross receipts from business done in this state of taxable entities without nexus individually in Texas are excluded from the numerator. For example, sales of tangible personal property shipped into Texas by a member that does not have nexus individually are excluded from the numerator but are included in the denominator.(C) For each member of the combined group that does not have nexus individually with this state for purpose of taxation, a combined group must, for information purposes only, include in a report filed under Tax Code, §171.201 or §171.202:(i) the member's gross receipts from business done in this state; and(ii) the member's gross receipts from business done in this state that are subject to taxation in another state under a throwback law or regulation.(D) Receipts derived from transactions between members of a combined group that are excluded under Tax Code, §171.1014(c)(3), may not be included in the numerator or denominator of the apportionment factor. However, the numerator of the apportionment factor will include certain sales of tangible personal property made to third party purchasers if the tangible personal property is ultimately delivered to a purchaser in Texas without substantial modification. See Tax Code, §171.1055(b). For example, drop shipments made from a Texas location to a Texas purchaser would be included in Texas receipts based on the amount billed to the third party purchaser if the seller is a member of the combined group and the seller does not have nexus.(6) Disregarded entities. When reporting revenue, cost of goods sold, compensation and gross receipts for a disregarded entity, that information may be included with the parent; in that event, both entities are presumed to have nexus.(e) Reporting entity.(1) Responsibilities of the reporting entity.(A) Access to records. In addition to the information required to be included in the combined group report, upon request of the comptroller, the reporting entity shall provide access to the tax, financial, and nonfinancial records of entities that do and do not have Texas nexus.(B) Filing. The reporting entity shall file a combined group report on behalf of the combined group together with all reports and schedules required by the comptroller. Any elections required by the combined group are binding on all members of the group.(C) Payment. The reporting entity shall timely remit to the comptroller the Texas franchise tax imposed on the combined group.(D) Authority. The reporting entity may file refund claims, give waivers and execute agreements on behalf of the combined group. Any refund claim, waiver given, agreement or any document executed, shall be considered as having also been given or executed by each combined group member.(2) Notices. Notices mailed to the reporting entity shall be deemed to have been mailed to each of the taxable entities in the combined group.(3) Change in the reporting entity. The reporting entity shall change only when the entity (other than the parent) is no longer subject to Texas' jurisdiction to tax or the reporting entity is no longer a member of the combined group, at which time the combined group shall designate another entity that qualifies as its reporting entity and notify the comptroller of the designation.(f) Accounting period of the combined group.(1) The combined group's accounting period is determined as follows:(A) if two or more members of a combined group file a federal consolidated return, the group's accounting period is the federal taxable period of the federal consolidated group;(B) in all other instances, the accounting period is the federal taxable period of the reporting entity.(2) Members with different accounting periods. If the federal taxable period of a member differs from the federal taxable period of the combined group, the reporting entity will determine the portion of that member's revenue, cost of goods sold, compensation, etc. to be included by preparing a separate income statement based on federal income tax reporting methods for the period included in the group's accounting period.(g) Liability for the combined tax, penalty, and interest. The members of a combined group shall be jointly and severally liable for the combined tax reported on the combined report and any interest and penalty.(h) Credits. Unless otherwise provided by law, credits generally may be applied against the combined tax liability of the combined group. See §3.594 of this title (relating to Margin: Temporary Credit for Business Loss Carryforwards), and §3.593 of this title (relating to Margin: Credits).(i) Standard Industrial Classification Code. For a combined group, the revenue from each retail and wholesale trade activity of each of the members of the combined group shall be aggregated for purposes of determining whether the combined group is engaged in retail or wholesale trade. The determination of whether a combined group is engaged in a retail or wholesale trade activity shall be made after eliminations.(j) Tax rate, discounts, and E-Z Computation. The determination of whether a combined group is eligible for the 0.5% tax rate, discounts from tax liability, and the E-Z Computation under Tax Code, §§171.002, 171.0021, and 171.1016, shall be made based on the total revenue of the combined group as a whole after eliminations. See §3.584 of this title.(k) Combined report filing. A taxable entity will only be included in a combined group report for the accounting period in which it belongs to the combined group.(1) Initial reports.(A) Combined groups. A combined group will not file an initial report. For the period that a combined group exists, the combined group will file only annual reports regardless of whether the reporting entity or any or all of the members of the combined group would have been required to file an initial report if filing as a separate entity.(B) Members of a combined group. This subparagraph applies to members of a combined group that became subject to the franchise tax prior to October 4, 2009. Members of a combined group that become subject to the tax on October 4, 2009 or later will file only annual reports (see paragraph (2)(B) of this subsection).(i) A newly-formed member of a combined group will not report its data on a separate initial report but will include its data with the combined group's report for the corresponding accounting period. If a member of a combined group receives a franchise tax initial report filing notice, the entity must return the notice to the comptroller identifying the reporting entity of the combined group unless the entity is required to file a separate initial report under clause (ii) or (iii) of this subparagraph.(ii) A newly formed member of a combined group that leaves the combined group during the accounting period that would be covered by its initial report is required to file a separate initial report for the period beginning on the date it leaves the group through the date of its last federal accounting year end that is at least 60 days prior to the original due date of its initial report. Example: Corporation A is formed on April 3, 2009 as a member of Combined Group Z. It is spun off as a separate non-unitary entity effective August 15, 2009. The federal accounting year end for all parties is December 31. Corporation A will file a 2010 initial report due July 1, 2010 for August 15, 2009 - December 31, 2009, the period after the spin-off of the corporation. Combined Group Z will file a 2010 annual report including Corporation A for April 3, 2009 - August 14, 2009, the period before the spin-off of the corporation.(iii) A newly-formed entity that is subsequently acquired by a combined group is required to file a separate initial report for the period that is prior to the acquisition date. Example: Corporation A is a separate entity that was formed on November 15, 2008 and has a June 30 federal accounting year end. Corporation A was acquired by Combined Group Z effective February 1, 2009. Combined Group Z has a December 31 federal accounting year end. Corporation A will file a 2010 initial report due February 12, 2010. Because Corporation A was acquired by Combined Group Z effective February 1, 2009, Corporation A will include only the period from November 15, 2008 - January 31, 2009 on its initial report. Combined Group Z will file a 2010 annual report including Corporation A for the period February 1, 2009 - December 31, 2009.(2) Annual reports.(A) Combined groups. For the period that a combined group exists, the combined group will file only annual reports.(B) Members of a combined group.(i) For any accounting period that an entity is not part of a combined group, the entity must file a separate report. Example: Corporation B is a separate entity that began filing franchise tax reports in 2000 and has a December 31 federal accounting year end. Corporation B was acquired by Combined Group X effective July 1, 2009. Combined Group X has a March 31 federal accounting year end. Corporation B is sold by Combined Group X to Combined Group Y effective October 1, 2009. Combined Group Y has a December 31 federal accounting year end. Corporation B will file a 2010 annual report for the period January 1, 2009 - June 30, 2009. Combined Group X will file a 2010 annual report for the period April 1, 2008 - March 31, 2009. Combined Group X will not include Corporation B in its 2010 annual report because Corporation B was not part of the combined group during the accounting period on which the report is based. Combined Group X will include Corporation B in its 2011 annual report for the period July 1, 2009 - September 30, 2009. Combined Group Y will file a 2010 annual report for the period January 1, 2009 - December 31, 2009 and will include Corporation B for the period October 1, 2009 - December 31, 2009.(ii) A taxable entity formed on October 4, 2009, or later, that is a member of a combined group and that leaves the combined group during the accounting period that would be covered by its first annual report, is required to file a separate annual report for the period beginning on the date it leaves the group through the date of its last federal accounting year end in the calendar year prior to the year its first annual report is originally due. Example: Corporation A is formed on April 3, 2010 as a member of Combined Group Z. It is spun off as a separate non-unitary entity effective August 15, 2010. The federal accounting year end for all parties is December 31. Corporation A will file a 2011 annual report due May 15, 2011 for August 15, 2010 - December 31, 2010, the period after the spin-off of the corporation. Combined Group Z will file a 2010 annual report including Corporation A for April 3, 2010 - August 14, 2010, the period before the spin-off of the corporation.(iii) A taxable entity formed on October 4, 2009, or later, and is subsequently acquired by a combined group is required to file a first annual report for the period that is prior to the acquisition date. Example: Corporation A is a separate entity that was formed on June 15, 2010 and has a December 31 federal accounting year end. Corporation A was acquired by Combined Group Z effective December 1, 2010. Combined Group Z has a December 31 accounting year end. Corporation A will file a 2011 annual report due May 15, 2011. Because Corporation A was acquired by Combined Group Z effective December 1, 2010, Corporation A will include only the period from June 15, 2010 - November 30, 2010 on its annual report. Combined Group Z will file a 2010 annual report including Corporation A for the period December 1, 2010 - December 31, 2010.(3) Final reports.(A) Combined groups. If every member of a combined group ceases doing business in Texas, a final report will need to be filed and paid before a taxable entity will receive clearance from the comptroller for termination, cancellation, withdrawal or merger. In all other cases, for the period a combined group exists, the combined group will file only annual reports.(B) Members of a combined group.(i) A member of a combined group that ceases doing business in Texas will not file a final report. The data that would have been reported on the final report will be included in the combined group's annual report for the corresponding accounting period. If a member of a combined group receives a franchise tax final report filing notice, the entity must return the notice to the comptroller identifying the reporting entity of the combined group unless the entity is required to file a separate final report under clause (ii) or (iii) of this subparagraph.(ii) A separate entity that joins a combined group and then ceases doing business in Texas in the accounting period that would be covered by a final report is required to file a final report for the period that is prior to the acquisition date. The period from the acquisition date through the date the entity ceased doing business in Texas will be reported on the combined group's annual report for the corresponding period. Example: Corporation C is a separate entity that has a December 31 accounting year end. Corporation C was acquired by Combined Group W effective July 1, 2008. Combined Group W also has a December 31 accounting year end. On October 31, 2008 Corporation C is dissolved. Corporation C will file a final report due December 30, 2008 for the period January 1, 2008 - June 30, 2008, which is the period before Corporation C was purchased by Combined Group W. Combined Group W will file a 2009 annual report and include Corporation C for the period July 1, 2008 - October 31, 2008.(iii) A member of a combined group that leaves the combined group and then ceases doing business in Texas during the accounting period that would be covered by a final report is required to file a final report for the period from the date the entity left the combined group through the date that the entity ceased doing business in Texas. Example: Corporation C is a member of Combined Group W. Both Corporation C and Combined Group W have a September 30 accounting year end. Corporation C leaves the combined group effective May 1, 2008. On August 15, 2008, Corporation C is dissolved. Corporation C will file a final report due October 14, 2008 for the period May 1, 2008 - August 15, 2008, which is the period after Corporation C left Combined Group W. Combined Group W will file a 2009 annual report and will include Corporation C for the period October 1, 2007 - April 30, 2008.(4) Electronic funds transfer. If any one member of a combined group receives notice that it is required to electronically transfer franchise tax payments, then the combined group is required to electronically transfer payments.",
            "sourceNote": "Source Note: The provisions of this §3.590 adopted to be effective January 1, 2008, 32 TexReg 10040; amended to be effective January 1, 2009, 33 TexReg 10504; amended to be effective December 31, 2009, 34 TexReg 9471."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213028&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "213028",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "V",
                "label": "FRANCHISE TAX"
            },
            "rule": {
                "number": "§3.591",
                "label": "Margin: Apportionment"
            },
            "nextRule": {
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                "recordId": "139406",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Effective date. The provisions of this section apply to franchise tax reports originally due on or after January 1, 2008, except as otherwise noted.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Capital asset--Any asset that is held for use in the production of income, and that is subject to depreciation, depletion or amortization.(2) Employee retirement plan--A plan or other arrangement that qualifies under Internal Revenue Code (IRC), §401(a) (Qualified pension, profit-sharing, and stock bonus plans), or that satisfies the requirement of IRC, §403 (Taxation of employee annuities), or a government plan described in IRC, §414(d) (Definitions and special rules).(3) Gross receipts--Revenue as determined under §3.587 of this title (relating to Margin: Total Revenue), except as provided in subsection (e)(2) (concerning capital assets and investments) and subsection (e)(17) (concerning loans and securities) of this section. Non-receipt items excluded from total revenue under §3.587 of this title are not included in the calculation of total revenue under that section and are not deducted from gross receipts. These non-receipt items include the exclusion for uncompensated care, the $500 exclusion per pro bono services case, the exclusion for the direct cost of providing waterway transportation, the exclusion for the direct cost of providing agricultural aircraft services, and the exclusion for the cost of a vaccine. See subsection (d)(5) of this section for gross receipts that are excluded from the apportionment calculation.(4) Internal Revenue Code--The Internal Revenue Code of 1986 in effect for the federal tax year beginning on January 1, 2007, not including any changes made by federal law after that date, and any regulations adopted under that code applicable to that period.(5) Inventory--Property held primarily for sale to customers in the ordinary course of a trade or business. Securities and loans held for investment, hedging, or risk management purposes are not inventory.(6) Investment--Any non-cash asset that is not a capital asset or inventory.(7) Legal domicile--The legal domicile of a corporation or limited liability company is its state of formation. The legal domicile of a partnership, trust, or joint venture is the principal place of business of the partnership, trust, or joint venture.(8) Location of payor--The legal domicile of the payor.(9) Principal place of business--The place where an entity's management directs, controls, and coordinates the entity's activities.(10) Regulated investment company--Any domestic corporation defined under IRC, §851(a) (Definition of regulated investment company), including a taxable entity that includes trustees or sponsors of employee benefit plans that have accounts in a regulated investment company.(11) Security--An instrument defined under IRC, §475(c)(2) (Mark to market accounting method for dealers in securities). This term includes instruments described by §475(e)(2)(B), (C), and (D) of that code.(12) Tax reporting period--The period upon which the tax is based under Tax Code, §171.1532 (Business on Which Tax on Net Taxable Margin Is Based) or §171.0011 (Additional Tax).(13) Taxable entity--Any entity upon which tax is imposed under Tax Code, §171.0002(a) (Definition of Taxable Entity) and not specifically excluded under Tax Code, §171.0002(b) or §171.0002(c). See also §3.581 of this title (relating to Margin: Taxable and Nontaxable Entities).(14) Texas gross receipts--The portion of a taxable entity's gross receipts that is from business done in Texas.(c) Apportionment formula. Except as provided in paragraphs (1) and (2) of this subsection, a taxable entity's margin is apportioned to Texas to determine the amount of franchise tax due by multiplying the taxable entity's margin by a fraction, the numerator of which is the taxable entity's Texas gross receipts and the denominator of which is the taxable entity's gross receipts from its entire business.(1) Regulated investment company services. A taxable entity's margin derived, directly or indirectly, from the sale of management, distribution, or administration services to or on behalf of a regulated investment company, is apportioned to Texas by multiplying that portion of the taxable entity's total margin by a fraction:(A) the numerator of which is the average of the sum of shares owned at the beginning of the year and the sum of the shares owned at the end of the year by the investment company shareholders whose principal place of business is in this state or, if the shareholders are individuals, are residents of this state; and(B) the denominator of which is the average of the sum of shares owned at the beginning of the year and the sum of shares owned at the end of the year by all investment company shareholders.(2) Employee retirement plan services. A taxable entity's margin derived, directly or indirectly, from the sale of management, administration, or investment services to an employee retirement plan is apportioned to Texas by multiplying that portion of the taxable entity's total margin by a fraction:(A) the numerator of which is the average of the sum of beneficiaries domiciled in Texas at the beginning of the year and the sum of beneficiaries domiciled in Texas at the end of the year; and(B) the denominator of which is the average of the sum of all beneficiaries at the beginning of the year and the sum of all beneficiaries at the end of the year.(d) General rules for reporting gross receipts.(1) A taxable entity that files an annual report must report gross receipts based on the business done by the taxable entity beginning with the day after the date upon which the previous report was based, and ending with the last accounting period ending date for federal income tax purposes ending in the calendar year before the calendar year in which the report is originally due.(2) A taxable entity with a beginning date prior to October 4, 2009 that files an initial report must report gross receipts based on its activities commencing with the beginning date, as described in §3.584 of this title (relating to Margin: Reports and Payments), and ending on the last accounting period ending date for federal income tax purposes that is at least 60 days before the original due date of the initial report. A taxable entity with a beginning date on or after October 4, 2009 that files a first annual report must report gross receipts based on its activities commencing with the beginning date and ending on the last accounting period ending date for federal income tax purposes in the same calendar year as the beginning date.(3) Taxable entities that are members of an affiliated group that are part of a unitary business must file a combined franchise tax report. See §3.590 of this title (relating to Margin: Combined Reporting), for determining gross receipts for a combined report.(4) When a taxable entity computes gross receipts for apportionment, the taxable entity is deemed to have elected to use the same methods that the taxable entity used in filing its federal income tax return.(5) Any item of revenue that is excluded from total revenue under Texas law or United States law is excluded from gross receipts from an entity's entire business and Texas gross receipts as provided by Tax Code, §171.1055(a) (Exclusion of Certain Receipts for Margin Apportionment). For example, any amount that is excluded from total revenue under the IRC, §78 (Dividends received from certain foreign corporations by domestic corporations choosing foreign tax credit) or §§951 - 964 (26 U.S. Code Subpart F - Controlled Foreign Corporations), is excluded from gross receipts. Non-receipt items that are excluded from total revenue under §3.587 of this title, such as $500 per pro bono services case; the actual cost of uncompensated care; the direct cost of providing waterway transportation; the direct cost of providing agricultural aircraft services and the cost of a vaccine, are not deducted from gross receipts under this section. See subsection (b)(3) of this section, concerning definition of gross receipts. For example, under Tax Code, §171.1011(g-3) (Determination of Total Revenue from Entire Business), an attorney may exclude $500 from total revenue for handling a pro bono case. Since the $500 is not a receipt, there is no exclusion for pro bono work when calculating gross receipts. Therefore, if a taxable entity starts with its total revenue amount to calculate its gross receipts, the taxable entity must add back the $500 per pro bono services case.(6) A taxable entity that uses a 52 - 53 week accounting year end and that has an accounting year that ends during the first four days of January of the year in which the report is originally due may use the preceding December 31 as the date through which margin is computed.(7) Any item of allocated revenue excluded under §3.587(c)(9) of this title is excluded from Texas gross receipts and gross receipts from an entity's entire business.(e) Computation and sourcing of gross receipts.(1) Advertising services. Gross receipts from the dissemination of advertising are sourced to the locations of the advertising audience. The locations of the advertising audience should be determined in good faith using the most reasonable method under the circumstances, considering the information reasonably available. The method should be consistently applied from year to year and supported by records retained by the service provider. Locations that may be reasonable include the physical locations of the advertising, advertising audience locations recorded in the books and records of the service provider, and locations listed in published rating statistics. If the locations of nationwide advertising audiences cannot otherwise be reasonably determined, then 8.7% of the gross receipts are sourced to Texas. For reports originally due prior to January 1, 2021, advertising receipts attributable to a radio or television station transmitter in Texas may be sourced to Texas.(2) Capital assets and investments.(A) Except as provided in subparagraph (C) of this paragraph, only the net gain from the sale of a capital asset or investment is included in gross receipts. A net loss from the sale of a capital asset or investment is not included in gross receipts.(B) The net gain or net loss from the sale of a capital asset or investment is the amount realized from the sale less the adjusted basis for federal income tax purposes.(C) For reports originally due prior to January 1, 2021, a taxable entity may add the net gains and losses from sales of investments and capital assets to determine the total gross receipts from such transactions. If both Texas and out-of-state sales have occurred, then a separate calculation of net gains and losses on Texas sales must be made. If the combination of net gains and losses results in a loss, the taxable entity may not net the loss against other receipts.(D) The net gain from the sale of a capital asset or investments is sourced based on the type of asset or investment sold. The net gain from the sale of an intangible asset is sourced to the location of the payor as provided in paragraph (21)(B) of this subsection, concerning gross receipts from the sale of intangible assets, and paragraph (25) of this subsection, concerning securities, of this subsection Examples of intangible assets include, but are not limited to, stocks, bonds, commodity contracts, futures contracts, patents, copyrights, licenses, trademarks, franchises, goodwill, and general receivable rights. The net gain from the sale of real property is sourced as provided in paragraph (23) of this subsection, concerning real property. The net gain from the sale of tangible personal property is sourced as provided in paragraph (29) of this subsection, concerning tangible personal property.(E) Examples.(i) Example 1. During a report year, a real estate investment company sells two Texas investment properties, reporting a gain on sale of one property and a loss on the sale of the other property. The company should include the net gain on the profitable sale in gross receipts from its entire business but should not include the net loss on the unprofitable sale. The company should not offset the net loss against the net gain. To determine Texas gross receipts, the asset should be sourced based on its nature. Receipts from the sale of real property are sourced to the location of the property, as provided in paragraph (23) of this subsection. The company should include only the net gain on the sale of the Texas investment property in Texas gross receipts and should not include the net loss on the sale of the other Texas investment property.(ii) Example 2. The facts are the same as in Example 1, except the real estate investment company also had net gains and net losses from the sale of out-of-state properties. For reports originally due prior to January 1, 2021, the real estate investment company may offset all of the net losses from these sales against all of the net gains. If the result is a net gain, the net gain is included in gross receipts from its entire business. If the result is a net loss, the net loss may not be not included in gross receipts from its entire business. To determine Texas gross receipts, the company may offset the net loss from the sale of the one Texas property against the net gain from the sale of the other Texas property. If the result is a net gain, the net gain is included in Texas gross receipts. If the result is a net loss, the net loss may not be included in Texas gross receipts.(3) Computer hardware and digital property.(A) Gross receipts from the sale of computer hardware together with any software installed on the hardware are sourced as the sale or lease of tangible personal property under paragraph (29) of this subsection.(B) Gross receipts from the lease of computer hardware together with any software installed on the hardware are sourced as the leasing of tangible personal property under paragraph (14)(B) of this subsection.(C) Gross receipts from the sale of digital property (computer programs and any content in digital format that is either protected by copyright law or no longer protected by copyright law solely due to the passage of time) that is transferred by fixed physical media are sourced as the sale of tangible personal property under paragraph (29) of this subsection.(D) Gross receipts from lease of digital property that is transferred by fixed physical media are sourced as the leasing of tangible personal property under paragraph (14)(B) of this subsection.(E) Gross receipts from the sale or lease of digital property that is transferred by means other than by fixed physical media are sourced as the sale of intangible property under paragraph (21)(B) of this subsection.(F) Gross receipts from the delivery of digital property as a service are sourced under paragraph (26) of this subsection, unless otherwise provided in this subsection.(G) Gross receipts from the delivery of digital property as part of an internet hosting service are sourced as internet hosting receipts under paragraph (13) of this subsection. See paragraph (13)(D) of this subsection for factors distinguishing the purchase of access over the internet to computer services from the purchase or lease of digital property.(H) Gross receipts from the use (as opposed to the sale or licensing) of digital property are sourced under paragraph (21)(A) of this subsection.(I) Examples.(i) Example 1. Movie Studio produces a copyrighted movie in digital format and successively sells the theatrical rights to Movie Theater Chain Company, the broadcast rights to Cable Company, the internet streaming rights to Internet Company A, the internet rental rights to Internet Company B, the digital versatile disc (DVD) sale rights to DVD Company, DVD rental rights to Kiosk Company, and the permanent download sale rights to Download Company. In each instance, Movie Studio's receipts are from the right to use its copyrighted digital property and sourced to where the copyright is used under paragraph (21)(A) of this subsection. Movie Theater Chain Company receipts from ticket sales are from the sale of a service and sourced under paragraph (26) of this subsection. Cable Company subscription receipts from broadcasting the movie are from the sale of a service and sourced under paragraph (26) of this subsection. Internet Company A's subscription receipts for its streaming service using its website are from an internet hosting service and sourced to the location of the customer under paragraph (13) of this subsection. Internet Company B's receipts from the rental (access for a limited time) of the movie using the company's website are from an internet hosting service and sourced to the location of the customer under paragraph (13) of this subsection. DVD Company's receipts from the sale of DVDs are from the sale of tangible personal property and sourced under paragraph (29) of this subsection. Kiosk Company's receipts from the rental of DVDs are from the rental of property and sourced to the location of the property under paragraph (14) of this subsection. Download Company's receipts from the sale of permanent downloads of the movie are from the sale intangibles and sourced to the location of payor under paragraph (21)(B) of this subsection.(ii) Example 2. Software Company designs bookkeeping software for personal use. Software Company licenses the software to Computer Company to include in the software sold with its computers. Software Company sells digital versatile discs (DVDs) of the bookkeeping software to Retail Company for resale to end users. Software Company sells downloads of its bookkeeping software directly to end users. Software Company sells an on-line version of its bookkeeping software in which end users can enter and store data on-line using the Software Company's website for a periodic fee. Software Company receipts from licensing the software to Computer Company are from the use of its digital product and sourced to the location of use under paragraph (21)(A) of this subsection. Computer Company's receipts from the sale of computers with pre-loaded software are from the sale of tangible personal property and sourced under paragraph (29) of this subsection. Software Company's receipts from the sale of DVDs to Retail Company are from the sale of tangible personal property and sourced under paragraph (29) of this subsection. Software Company's receipts from the sale of downloads to end users are from the sale of intangible property and sourced to the location of payor under paragraph (21)(B) of this subsection. Software Company's receipts from the sale of its on-line version are from the sale of an internet hosting service and sourced to the location of the customer under paragraph (13) of this subsection.(4) Condemnation. Gross receipts from condemnation of property are sourced to the location of the property condemned.(5) Debt forgiveness. If a creditor releases any part of a debt, then the amount that the creditor forgives is a gross receipt that is sourced to the legal domicile of the creditor.(6) Debt retirement. Gross receipts from the retirement of a taxable entity's own indebtedness, such as through the taxable entity's purchase of its own bonds at a discount, are sourced to the taxable entity's legal domicile. The indebtedness is treated as an investment in the determination of the amount of gross receipts.(7) Dividends.(A) Dividends that are recognized as a reduction of the taxpayer's basis in stock of a taxable entity for federal income tax purposes are not gross receipts. Dividends that exceed the taxpayer's basis for federal income tax purposes that are recognized as a capital gain are treated as dividends for apportionment purposes.(B) The following are excluded from Texas gross receipts and gross receipts from an entity's entire business:(i) dividends from a subsidiary, associate, or affiliated taxable entity that does not transact a substantial portion of its business or regularly maintain a substantial portion of its assets in the United States;(ii) Form 1120, Schedule C special deductions that are excluded from total revenue; and(iii) dividends on federal obligations that are excluded from total revenue.(C) Dividends that are received from a corporation or other sources are sourced to the location of the payor.(D) Dividends received from a national bank are sourced to Texas if the bank's principal place of business is located in Texas. Dividends received from a bank that is organized under the Texas Banking Code are sourced to Texas.(8) Exchanges of property. Exchanges of property are included in gross receipts to the extent that the exchange is recognized as a taxable transaction for federal income tax purposes. Such exchange must be included in gross receipts based on the gross exchange value, unless otherwise required under this section.(9) Federal enclave. Gross receipts from a taxable entity's sales, services, leases, or other business activities that are transacted on a federal enclave that is located in Texas are sourced to Texas, unless otherwise excepted by this section.(10) Financial derivatives. Gross receipts from the settlement of financial derivatives contracts, including hedges, options, swaps, futures, and forward contracts, and other risk management transactions are sourced to the location of the payor.(11) Insurance proceeds.(A) Business interruption insurance proceeds are gross receipts when the proceeds are intended to replace lost profits. Such receipts are Texas gross receipts when the location of the payor is in Texas.(B) Gross receipts from fire and casualty insurance proceeds are sourced to the location of the damaged or destroyed property.(12) Interest.(A) Except as provided in subparagraph (B) of this paragraph, interest received is sourced to the location of the payor.(B) Interest received from a national bank is a Texas gross receipt if the bank's principal place of business is located in Texas. Interest received from a bank that is organized under the Texas Banking Code is a Texas gross receipt.(C) The following are excluded from Texas gross receipts and gross receipts from an entity's entire business:(i) interest on federal obligations that is excluded from total revenue; and(ii) interest that is exempt from federal income tax.(D) A banking corporation may exclude from its Texas gross receipts interest that is earned on federal funds and interest that is earned on securities that are sold under an agreement to repurchase and that are held in a correspondent bank that is domiciled in Texas, but the banking corporation must include the interest in its gross receipts from an entity's entire business.(13) Internet hosting service. For reports originally due on or after January 1, 2014, receipts from internet hosting are Texas gross receipts if the customer is located in Texas.(A) Internet hosting service means providing to an unrelated user access over the internet to computer services using property that is owned or leased and managed by the provider and on which the user may store or process the user's own data or use software that is owned, licensed, or leased by the user or provider.(B) Internet hosting includes real-time, nearly real-time, and on-demand access over the internet to computer services such as:(i) data storage and retrieval;(ii) video gaming;(iii) database search services;(iv) entertainment streaming services;(v) processing of data; and(vi) marketplace provider services.(C) Internet hosting does not include:(i) telecommunications service;(ii) cable television service;(iii) internet connectivity service;(iv) internet advertising service; or(v) internet access solely to download digital content for storage and use on the customer's computer or other electronic device.(D) The purchase of access over the internet to computer services is distinguished from the purchase or lease of computer hardware or digital property (which are sourced under subsection (e)(3) of this section) by taking into account all relevant factors, the relevance of which may vary depending upon the circumstances. Some relevant factors indicating the purchase of access to a computer service rather than the purchase or lease of computer hardware or digital property include:(i) the customer is not in physical possession of the property;(ii) the customer does not control the property, beyond the customer's network access and use of the property;(iii) the provider has the right to determine the specific property used in the transaction and replace such property with comparable property;(iv) the property is a component of an integrated operation in which the provider has other responsibilities, including ensuring the property is maintained and updated;(v) the customer does not have a significant economic or possessory interest in the property;(vi) the provider bears any risk of substantially diminished receipts or substantially increased expenditures if there is nonperformance under the contract;(vii) the provider uses the property concurrently to provide significant services to entities unrelated to the customer;(viii) the provider's fee is primarily based on a measure of work performed or the level of the customer's use rather than the mere passage of time; and(ix) the total contract price substantially exceeds the rental value of the property for the contract period.(E) The customer location is determined by the physical location where the purchaser or the purchaser's designee consumes the service. The location should be determined in good faith using the most reasonable method under the circumstances, considering the information reasonably available. Receipts from some services may be sourced to multiple customer locations or to multiple customers. Locations that may be reasonable under the circumstances include the customer's principal place of business, the customer's business unit that is using the computer services, the delivery addresses for individual units of service provided to the customer, the primary place or places of consumption by the customer, the service address of the customer, the billing address of the customer, or a combination of methods.(i) Example 1. An individual purchases access to a dating application. The most reasonable customer location for consumption of the service may be the billing address of the individual in the absence of information regarding the individual's physical address.(ii) Example 2. A benefactor purchases access to a computer service for a charitable organization. The customer is the purchaser's designee for consuming the service - the charitable organization. The most reasonable customer location for consumption of the service may be the physical address of the charitable organization.(iii) Example 3. An intermediary purchases access to a computer service for resale to a third party. The customer is purchaser's designee for consuming the service - the third party. The most reasonable customer location for consumption of the service may be the physical location of the third party, if known.(iv) Example 4. A law firm purchases access to a database search program for attorneys in multiple offices. The customers are the purchaser's designees for consuming the service - its attorneys. The most reasonable customer locations for consumption of the service may be physical addresses of each office, with the access fee sourced proportionately based on the number of attorneys in each office.(v) Example 5. A retailer with multiple sales outlets purchases access to point of sales software that reports to the retailer's central office. The most reasonable customer locations for consumption of the service may be the physical addresses of the central office and each designated point of sale, with the access fee sourced proportionately between the central office and each designated point of sale.(vi) Example 6. A retailer with multiple sales outlets purchases access to federal income tax preparation software. The most reasonable customer location for consumption of the service may be the principal place of business of the retailer.(vii) Example 7. An individual pays a fee to an internet ride-sharing service connecting the individual with a driver at a particular location. The most reasonable customer location for consumption of the service may be the physical address of rendezvous point for the ride.(14) Leases and subleases.(A) Gross receipts from the lease, sublease, rental, or subrental of real property are sourced to the location of the property.(B) Gross receipts from the lease, sublease, rental, or subrental of tangible personal property are sourced to the location of the property. If the property is used both inside and outside Texas, then lease payments are sourced based on the number of days that the tangible personal property was used in Texas divided by the number of days that the tangible personal property was used everywhere. If the amount due under the lease is based on mileage, then the lease payments are sourced based on the number of miles in Texas divided by the number of miles everywhere.(C) If a lump sum is charged for the lease, sublease, rental, or subrental of more than one item of property, and the items are located both inside and outside Texas, the lump-sum is sourced to Texas based on a ratio of the fair rental value of the items located in Texas to the fair value of the items located outside of Texas.(D) Gross receipts from the lease, sublease, rental, or subrental of a vessel that engages in commerce are sourced to Texas based on the number of days that the vessel is engaged in commerce in Texas waters divided by the number of days that the vessel is engaged in commerce everywhere.(E) Gross receipts from a lease, sublease, rental, or subrental of real property or tangible personal property that is treated as a sale for federal income tax purposes are sourced in the same manner as a sale. Any portion of the payments that the contracting parties designate as interest is sourced as provided in paragraph (12) of this subsection, concerning interest.(15) Litigation awards. Litigation awards are gross receipts that are sourced to the location of the payor; however, if the litigation awards are intended to replace receipts for which another rule provided in this section applies, then the gross receipts are sourced in accordance with that rule. For example, if a taxable entity sues a Delaware corporation to recover on a sale of goods delivered to a Texas location, then a judgment for the amount of that sale would not convert the receipts from Texas gross receipts to Delaware receipts. See subsection (f) of this section, for the sourcing of receipts from judgments, compromises, or settlements that relate to natural gas production.(16) Loan servicing.(A) Gross receipts from servicing loans secured by real property are sourced to the location of the collateral real property that secures the loan being serviced.(B) Gross receipts from servicing loans that are not secured by real property are sourced as provided in paragraph (26) of this subsection, concerning services.(17) Loans and securities treated as inventory of the seller.(A) Gross proceeds from the sale of a loan or security treated as inventory of the seller for federal income tax purposes are included in gross receipts even though the tax basis is not included in total revenue under §3.587(e)(4) of this title. Securities and loans held for investment or risk management purposes are not inventory. Gross receipts from the sale of a loan or security treated as inventory of the seller are sourced to the location of the payor as provided in paragraph (25) of this subsection, concerning securities. See paragraph (2) of this subsection, concerning capital assets and investments, or paragraph (10) of this subsection, concerning financial derivatives, for the treatment of gains and losses from sales of loans and securities not treated as inventory of the seller.(B) If a lending institution categorizes a loan or security as \"Securities Available for Sale\" or \"Trading Securities\" under Financial Accounting Standard No. 115, the gross proceeds of the sale of that loan or security are considered gross receipts. In this subparagraph, \"Financial Accounting Standard No. 115\" means the Financial Accounting Standard No. 115 in effect as of January 1, 2009, not including any changes made after that date.(18) Membership or enrollment fees paid for access to benefits. Membership or enrollment fees paid for access to benefits are gross receipts from the sale of an intangible asset and are sourced to the location of the payor.(19) Mixed transactions. If a transaction involves elements of both a sale of tangible personal property and a service, but no documentation exists to show separate charges for the tangible personal property and service elements, then the comptroller may determine the amounts that are allocable to each element based on fair values or on any available evidence.(20) Net distributive income. The net distributive income or loss from a passive entity that is included in total revenue is sourced to the principal place of business of the passive entity.(21) Patents, copyrights, and other intangible assets.(A) Gross receipts from the use of intangible assets.(i) Revenues from a patent royalty are included in Texas receipts to the extent that the patent is utilized in production, fabrication, manufacturing, or other processing in Texas.(ii) Revenues from a copyright royalty are included in Texas receipts to the extent that the copyright is utilized in printing or other publication in Texas.(iii) Gross receipts that the owner of a patent, copyrighted material, trademark, franchise, or license receives from licensing the use of the patent, copyrighted material, trademark, franchise, or license are sourced to Texas to the extent the patent, copyrighted material, trademark, franchise or license is used in Texas.(iv) Royalties from an affiliated taxable entity that does not transact a substantial portion of its business or regularly maintain a substantial portion of its assets in the United States are excluded from Texas gross receipts and gross receipts from an entity's entire business.(B) Gross receipts from the sale of intangible assets. Except as otherwise provided in this section, gross receipts from the sale of intangible assets are sourced to the location of payor.(C) Examples.(i) Example 1. The owner of seismic data grants a license to an oil company to access the seismic data. Even though a license is part of this transaction, the receipts are from the use of the underlying intangible property, the seismic data (which cannot be copyrighted), not from the use of a license. Accordingly, the receipts are sourced under subparagraph (B) of this paragraph to the location of the payor.(ii) Example 2. An inventor licenses a patent to a manufacturer. When the manufacturer licensee thereafter produces the patented item, it uses the patent, and its payments to the inventor, owner of the patent, are receipts from the use of a patent under subparagraph (A) of this paragraph. The receipts that the inventor receives are included in Texas receipts to the extent that the patent is used in production, fabrication, manufacturing, or other processing in Texas.(iii) Example 3. The owner of copyrighted material grants a license to a publisher to publish the copyrighted material. When the publisher publishes the copyrighted material, it uses the copyright, and its payments to the owner are receipts from the use of a copyright under subparagraph (A) of this paragraph. The receipts that the copyright owner receives from the use of its copyright is included in Texas receipts to the extent the copyright is used in Texas.(22) Qualified stock purchase under IRC, §338(h)(10) (Certain stock purchases treated as asset acquisitions). Receipts that are treated as receipts from the sale of assets by the target taxable entity under IRC, §338(h)(10) are sourced according to the rules that apply to sales of such assets. For the purposes of this paragraph, the purchaser of the target's stock is considered the purchaser of the assets.(23) Real property. Gross receipts from the sale, lease, rental, sublease, or subrental of real property, including mineral interests, are sourced to the location of the property. Royalties from mineral interests are considered revenue from real property.(24) Sales taxes. State or local sales taxes that are imposed on the customer, but are collected by a seller are not included in the seller's gross receipts. However, discounts that a seller is allowed to take in remittance of the collected sales tax are gross receipts to the seller.(25) Securities. Gross receipts from the sale of securities are sourced to the location of the payor. If securities are sold through an exchange, and the payor cannot be identified, then 8.7% of the revenue is a Texas gross receipt. For reports originally due prior to January 1, 2021, a taxable entity may use 7.9% instead of 8.7%.(26) Services. Except as otherwise provided in this section, gross receipts from a service are sourced to the location where the service is performed.(A) Location of performance. Except as provided in other subparagraphs, a service is performed at the location or locations where the taxable entity's personnel or property are doing the work that the customer hired the taxable entity to perform. Activities that are not directly used to provide a service are not relevant when determining the location where a taxable entity performs a service.(B) If services are performed both inside and outside Texas for a single charge, then receipts from the services are Texas gross receipts on the basis of the fair value of the services that are performed in Texas. In determining fair value, the relative value of each service provided on a stand-alone basis may be considered. Units of service, such as hours worked, may also be considered. The cost of performing a service does not necessarily represent its value. If costs are considered, costs should be limited to the direct costs of doing the work that the customer hired the taxable entity to perform and should not include any costs that are not directly used to provide a service to the customer.(i) Example 1. A law firm with offices in Texas and Louisiana charges a client by the hour. Hours billed for work conducted in Texas are Texas gross receipts.(ii) Example 2. A law firm with offices in Texas and Louisiana charges a client a lump sum fee of $5,000 to draft a document. Attorneys in the Texas office recorded 20 hours on the project, and attorneys in the Louisiana office recorded 5 hours on the project at the same billing rate. Texas gross receipts are $4,000. If the law firm does not record hours worked on a project, other measures of direct cost may be considered.(iii) Example 3. A Texas-based landscaper provides grounds maintenance services at its client's four offices in Texas, and one office in Oklahoma, for an annual fee of $50,000. The landscape services at each of the locations are substantially the same. Texas gross receipts are $40,000. Although the cost of performing the landscaping maintenance service at the Oklahoma office is higher than the cost of performing the service at the other locations because of the additional travel cost, the additional cost is not considered.(C) Taxable entities that have margin that is derived, directly or indirectly, from the sale of services to or on behalf of a regulated investment company should refer to subsection (c)(1) of this section for information on apportionment of such margin.(D) Taxable entities that have margin that is derived, directly or indirectly, from the sale of management, administration, or investment services to an employee retirement plan should refer to subsection (c)(2) of this section for information on apportionment of such margin.(E) Receipts from services that a defense readjustment project performs in a defense economic readjustment zone are not Texas gross receipts.(27) Single member limited liability company (SMLLC). For purposes of this section, the sale of a SMLLC by its sole owner is the sale of a membership interest in the SMLLC. The membership interest is an intangible asset, and receipts from the sale of a SMLLC are sourced to the location of payor.(28) Subsidies or grants. Proceeds of subsidies or grants that a taxable entity receives from a governmental agency are gross receipts, except when the funds are required to be expended dollar-for-dollar (i.e., passed through) to third parties on behalf of the agency. Receipts from a governmental subsidy or grant are sourced in the same manner as the item to which the subsidy or grant was attributed. For example, receipts from a grant to conduct research for the government are receipts from a service and are sourced to the location where the research is performed.(29) Tangible personal property. Examples of transactions that involve the sale of tangible personal property and result in Texas gross receipts include, but are not limited to, the following:(A) the sale of tangible personal property that is delivered in Texas to a purchaser. Delivery is complete upon transfer of possession or control of the property to the purchaser, an employee of the purchaser, or transportation vehicles that the purchaser leases or owns. FOB point, location of title passage, and other conditions of the sale are not relevant to the determination of Texas gross receipts;(B) the sale of tangible personal property that is delivered in Texas to an employee or transportation agent of an out-of-state purchaser. A carrier is an employee or agent of the purchaser if the carrier is under the supervision and control of the purchaser with respect to the manner in which goods are transported;(C) the sale and delivery in Texas of tangible personal property that is loaded into a barge, truck, airplane, vessel, tanker, or any other means of conveyance that the purchaser of the property leases and controls or owns. The sale of tangible personal property that is delivered in Texas to an independent contract carrier, common carrier, or freight forwarder that a purchaser of the property hires results only in gross receipts everywhere if the carrier transports or forwards the property to the purchaser outside this state;(D) the sale of tangible personal property with delivery to a common carrier outside Texas, and shipment by that common carrier to a purchaser in Texas;(E) the sale of oil or gas to an interstate pipeline company, with delivery in Texas;(F) the sale of tangible personal property that is delivered in Texas to a warehouse or other storage facility that the purchaser owns or leases;(G) the sale of tangible personal property that is delivered to and stored in a warehouse or other storage facility in Texas at the purchaser's request, as opposed to a necessary delay in transit, even though the property is subsequently shipped outside Texas;(H) the drop shipment of tangible personal property in Texas. A drop shipment is a shipment of tangible personal property from a seller directly to a purchaser's customer, at the request of the purchaser, without passing through the hands of the purchaser. This results in Texas gross receipts for the seller and the purchaser.(30) Telecommunication services.(A) Gross receipts from telephone calls that both originate and terminate in Texas are sourced to Texas.(B) Gross receipts from telephone calls that originate in Texas but terminate outside of Texas or that originate outside of Texas but terminate in Texas are not sourced to Texas.(C) Gross receipts from telecommunication services other than those services in subparagraph (A) or (B) of this paragraph are sourced to Texas if the services are performed in Texas. For example, a telephone company that provides a long distance carrier access to the telephone company's local exchange network in Texas is performing a service in Texas. Any fee that the telephone company charges the long distance carrier for access to the local exchange network in Texas is a Texas receipt regardless of whether the access is related to an interstate call. A fee that is charged to obtain access to a local exchange network in Texas and that is based on the duration of an interstate telephone call are not sourced to Texas.(31) Television broadcaster licensing income. For reports originally due on or after January 1, 2018, a broadcaster's gross receipts from licensing income from broadcasting or otherwise distributing film programming by any means are sourced to Texas if the legal domicile of the broadcaster's customer is in this state. In this subparagraph, the following words and terms shall have the following meaning:(A) Broadcaster--A taxable entity, not including a cable service provider or a direct broadcast satellite service, that is a television station licensed by the Federal Communications Commission, television broadcast network, cable television network, or television distribution company.(B) Customer--A person, including a licensee, who has a direct connection or contractual relationship with a broadcaster under which the broadcaster derives revenue.(C) Film programming--All or part of a live or recorded performance, event, or production intended to be distributed for visual and auditory perception by an audience.(D) Programming--Includes news, entertainment, sporting events, plays, stories, or other literary, commercial, educational, or artistic works.(32) Texas waters. Gross receipts from transactions that occur in Texas waters are sourced to Texas. Texas waters are considered to extend to 10.359 statute miles, or nine nautical miles, from the Texas coastline.(33) Transportation services. Gross receipts from the transportation of goods or passengers are sourced to Texas by:(A) including gross receipts from the transportation of goods or passengers that both originates and terminates in Texas; or(B) the multiplication of total transportation receipts by the ratio of total compensated mileage in the transportation of goods and passengers in Texas to total compensated mileage.(f) Natural gas production.(1) Gross receipts that a gas producer realizes from the contract price of gas that the gas producer produces and that the purchaser takes pursuant to the terms of sales are sourced to Texas, if the gas is delivered in Texas.(2) Gross receipts that a gas producer realizes from a purchaser's payment under a sale or purchase contract for gas to be produced even if no gas is produced and delivered to the purchaser, are sourced to the location of the payor.(3) Gross receipts that a gas producer realizes from a purchaser's payments to terminate a gas purchase contract are sourced to the location of the payor.(4) Gross receipts that a gas producer realizes from a contract amendment that relates to the price of the gas sold are treated as gross receipts from the sales of gas and are sourced to Texas if delivery is made to a location in Texas. Gross receipts that the gas producer realizes from a contract amendment that relates to a provision other than the price of gas sold are sourced to the location of the payor.(5) Gross receipts that a gas producer realizes from litigation awards for a breach of contract, reimbursements for litigation-related expenses (e.g., documented attorney's fees or court costs), or interest (upon which the parties have agreed, that the records of the producer reflects, or in an amount that a court has ordered) are sourced to the location of the payor.(6) Gross receipts that a gas producer realizes from a judgment, compromise, or settlement relating to the recovery of a contract price of gas produced are sourced to Texas to the extent the contract specified delivery to a location in Texas. Gross receipts that a gas producer realizes from a judgment, compromise, or settlement that relates to several claims or causes of action shall be prorated based upon the documented amounts due under the contract for each claim or cause of action according to the records of the producer. For example, a settlement sum of $100,000 for a pricing dispute of $25,000 and for failure to pay for gas not taken in the amount of $225,000, would result in receipts of $10,000 from gas sales (100,000 X 25,000/250,000) and receipts from other business of $90,000 (100,000 X 225,000/250,000). Records of the producer shall include, but are not limited to the following: contracts, settlement agreements, accounting records and entries, court pleadings and worksheets, including calculations reflecting settlement amounts.",
            "sourceNote": "Source Note: The provisions of this §3.591 adopted to be effective January 1, 2008, 32 TexReg 10044; amended to be effective December 31, 2009, 34 TexReg 9472; amended to be effective January 24, 2021, 46 TexReg 460; amended to be effective March 14, 2023, 48 TexReg 1450."
        },
        {
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            "currentRecordId": "139406",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "V",
                "label": "FRANCHISE TAX"
            },
            "rule": {
                "number": "§3.592",
                "label": "Margin: Additional Tax"
            },
            "nextRule": {
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                "recordId": "143856",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Effective date. For reports originally due on or after January 1, 2008, the additional tax imposed by Tax Code, §171.0011, applies to a taxable entity which no longer has sufficient nexus with Texas to be subject to the franchise tax. All provisions of Tax Code, Chapter 171, apply to the additional tax, unless they conflict with a provision in Tax Code, §171.0011.(b) Due date. A final report and payment of the additional tax are due within 60 days after the taxable entity no longer has sufficient nexus with Texas to be subject to the franchise tax. However, an estimated return and payment may need to be filed and paid before a taxable entity will receive clearance from the comptroller to terminate, dissolve, merge, or withdraw. As long as the proper amount is paid and an amended return, if needed, is filed within 60 days after the taxable entity terminates, dissolves, merges, or withdraws, then no penalty or interest will be assessed.(c) Rate and business based on. The additional tax rate is determined by Tax Code, §171.002 and is applied to taxable margin for the period from the day after the last day for which tax under Tax Code, Chapter 171, was based on a previous report through the date the taxable entity no longer has sufficient nexus with Texas to be subject to the franchise tax.(d) Passive entities. See §3.582(g) of this title (relating to Margin: Passive Entities) and Tax Code, §171.001(c). A passive entity must file a final report when the entity is no longer subject to the tax. If the entity has been a passive entity since the last report filed, no tax would be due with the report.(e) Combined group reports. See §3.590 of this title (relating to Margin: Combined Reporting).",
            "sourceNote": "Source Note: The provisions of this §3.592 adopted to be effective January 1, 2008, 32 TexReg 10048; amended to be effective January 1, 2009, 33 TexReg 10505."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=143856&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "143856",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "V",
                "label": "FRANCHISE TAX"
            },
            "rule": {
                "number": "§3.593",
                "label": "Margin: Franchise Tax Credits"
            },
            "nextRule": {
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            "ruleBody": "(a) Effective date. The provisions of this section apply to franchise tax reports originally due on or after January 1, 2008, except as otherwise noted.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Research and development credit--A research and development credit established under Tax Code, Chapter 171, Subchapter O, on a franchise tax report originally due prior to January 1, 2008.(2) Jobs creation credit--A jobs creation credit established under Tax Code, Chapter 171, Subchapter P, on a franchise tax report originally due prior to January 1, 2008.(3) Investment credit--An investment credit established under Tax Code, Chapter 171, Subchapter Q, on a franchise tax report originally due prior to January 1, 2008 and an investment credit established under Tax Code, Chapter 171, Subchapter Q-1.(4) Enterprise project--A person designated as an enterprise project under Government Code, Chapter 2303, on or after September 1, 2001, but before January 1, 2005.(5) Enterprise zone--An area designated as an enterprise zone under Government Code, §2303.003.(6) Qualified business--A person certified as a qualified business under Government Code, §2303.402.(7) Qualified capital investment--Tangible personal property that is first placed in service in an enterprise zone by a qualified business that has been designated as an enterprise project and that is defined in IRS Reg. §1.48-1(c) and described in Internal Revenue Code, §1245(a), subject to depreciation or amortization including engines, machinery, tools, and implements that are used in a trade or business, or are held for investment. The term includes transportation costs and direct labor costs necessary to fabricate, install or place the tangible personal property in service. The term does not include real property or buildings and their structural components. Property that is leased under a capitalized lease is considered a \"qualified capital investment,\" but property that is leased under an operating lease is not considered a \"qualified capital investment.\" Property that is expensed under Internal Revenue Code, §179, is not considered a \"qualified capital investment.\" The term also does not include all costs included in the depreciable basis such as indirect labor costs, interest, intangibles and overhead.(8) Tangible personal property first placed in service in an enterprise zone includes tangible personal property that is:(A) purchased by an enterprise project for placement in an incomplete improvement that is under active construction or other physical preparation;(B) identified by a purchase order, invoice, billing, sales slip, or contract; and(C) physically present at the enterprise project's qualified business site, as defined by Government Code, §2303.003, and in use by the enterprise project on the original due date of the report on which the credit is taken.(9) Clean energy project--A project as defined by Natural Resources Code, §120.001(2).(c) Information required. A taxable entity that claims a credit under this section must submit a credit schedule with each report that a credit is claimed.(d) Limitations.(1) The total research and development credit, jobs creation and investment credits that a taxable entity claims may not exceed the amount of franchise tax due for the report after any other applicable credits.(2) A taxable entity may not convey, assign, or transfer to another entity the credits that this section provides, unless all of the assets of the taxable entity are conveyed, assigned, or transferred to the entity in the same transaction.(e) Research and development credit.(1) Carryforward. If a taxable entity established a research and development credit on a franchise tax report originally due prior to January 1, 2008, that exceeded the tax limitations, then the taxable entity may continue to carry the unused credit forward on each consecutive report until the earlier of the date the credit would have expired under Tax Code, Chapter 171, Subchapter O, or December 31, 2027.(2) Report limitation. The total research and development credit carryforward that a taxable entity may claim for a report may not exceed 50% of the amount of franchise tax that is due for the report before any other tax credits are applied.(3) Combined group. A taxable entity that is a combined group may claim the unused credit carried forward for each member entity. The limitation in subsection (d) of this section and report limitation in paragraph (2) of this subsection shall be applied to the amount of franchise tax due of the combined group before any other tax credits are applied.(f) Jobs creation credit.(1) Carryforward. If a taxable entity established a jobs creation credit on a franchise tax report originally due prior to January 1, 2008, that exceeded the tax limitations, then the taxable entity may continue to carry the unused credit forward on each consecutive report until the earlier of the date the credit would have expired under Tax Code, Chapter 171, Subchapter P, or December 31, 2012.(2) Report limitation. The total jobs creation credit carryforward that a taxable entity may claim for a report may not exceed 50% of the amount of franchise tax that is due for the report before any other tax credits are applied.(3) Combined group. A taxable entity that is a combined group may claim the unused credit carried forward for each member entity. The limitation in subsection (d) of this section and report limitation in paragraph (2) of this subsection shall be applied to the amount of franchise tax due of the combined group before any other tax credits are applied.(g) Investment credit.(1) Installment. A taxable entity that has any unused installments from an investment credit established on a franchise tax report originally due prior to January 1, 2008, may claim the remaining installments on consecutive reports beginning with reports originally due on or after January 1, 2008.(2) Carryforward. A carryforward is the remaining portion of an installment that cannot be claimed in the current year because of the limitations that are stated in subsection (d)(1) of this section or this paragraph. A carryforward is added to the next year's installment of the credit in determination of the limitations for that year. A credit carryforward from a previous report must be used before the current year installment. The taxable entity may carry the unused credit forward on each consecutive report until the earlier of the date the credit would have expired under Tax Code, Chapter 171, Subchapter Q, or December 31, 2012.(3) Report limitation. The total investment credit that a taxable entity may claim for a report including any credit under subsection (h) of this section, may not exceed 50% of the amount of franchise tax that is due for the report before any other tax credits are applied.(4) Ineligibility.(A) A taxable entity may not take any remaining installment of the credit, (except the taxable entity is permitted to take the portion of an installment that accrued in a previous year and was carried forward pursuant to paragraph (2) of this subsection), if, during one of the periods used to determine margin for a report on which an installment could be claimed, the taxable entity:(i) disposes of the qualified capital investment;(ii) takes the qualified capital investment out of service;(iii) moves the qualified capital investment out of the strategic investment area; or(iv) fails to pay an average weekly wage, at the location for which the credit is claimed, that amounts to at least 110% of the county average weekly wage.(B) For purposes of subparagraph (A)(i) - (iii) of this paragraph, an installment may still be taken if the qualified capital investment is replaced at the same location within 90 days with a new qualified capital investment of equal or greater value.(5) Combined group. A taxable entity that is a combined group may claim any remaining installments and unused credit carried forward for each member entity. The limitation in subsection (d) of this section and report limitation in paragraph (3) of this subsection shall be applied to the amount of franchise tax due of the combined group before any other tax credits are applied.(h) Enterprise projects. A taxable entity that has been designated an enterprise project on or after September 1, 2001, but before January 1, 2005, may establish a credit that equals 7.5% of the qualified capital investment made on or after January 1, 2005, and before January 1, 2007. Subject to paragraph (4) of this subsection, an enterprise project may claim the entire credit established on a report originally due on or after January 1, 2008, and before January 1, 2009.(1) Carryforward. If an enterprise project is eligible for a credit that exceeds the limitation under paragraph (4) of this subsection, the enterprise project may carry the unused credit forward for not more than five consecutive reports.(2) Ineligibility.(A) An enterprise project is not eligible for a credit under this subsection if the enterprise project claimed a credit under Tax Code, Chapter 171, Subchapter Q, before the repeal of that subchapter on January 1, 2008.(B) A taxable entity, other than a combined group, may not claim the credit under this subsection unless the taxable entity was, on May 1, 2006, subject to the tax imposed by this chapter as it existed on that date.(C) A taxable entity that establishes its eligibility for an investment credit is not eligible to claim a franchise tax reduction that is authorized under Tax Code, §171.1015.(3) Combined group. A taxable entity that is a combined group may claim the credit for each member entity that was, on May 1, 2006, subject to the tax imposed by this chapter as it existed on that date and shall compute the amount of the credit for that member as provided by this subsection.(4) Report limitation. The total investment credit that a taxable entity claims for a report, including the amount of any installment or carryforward under subsection (g)(1) and (2) of this section may not exceed 50% of the amount of franchise tax that is due for the report before any other tax credits are applied.(5) Expiration. This subsection expires on December 31, 2009. This expiration does not affect the carryforward of a credit that was established on a report that was originally due before this expiration date.(i) Clean energy project credit. A clean energy project credit established under Government Code, Chapter 490, Subchapter H, as follows:(1) Eligibility. A franchise tax credit shall be issued to a taxable entity implementing a clean energy project in this state in connection with the construction of a new facility after:(A) the Railroad Commission of Texas (the commission) has issued a certificate of compliance for the project to the entity as provided by Natural Resources Code, §120.004. The commission may not issue a certificate of compliance for more than three clean energy projects;(B) the construction of the project has been completed;(C) the electric generating facility associated with the project is fully operational;(D) the Bureau of Economic Geology of the University of Texas at Austin verifies to the comptroller that the electric generating facility associated with the project is sequestering at least 70% of the carbon dioxide resulting from or associated with the generation of electricity by the facility; and(E) the owner or operator of the project has entered into an interconnection agreement relating to the project with the Electric Reliability Council of Texas.(2) Credit calculation. The total amount of the franchise tax credit that may be issued to the entity designated in the certificate of compliance for a clean energy project is equal to the lesser of:(A) 10% of the total capital cost of the project, including the cost of designing, engineering, permitting, constructing, and commissioning the project, the cost of procuring land, water, and equipment for the project, and all fees, taxes, and commissions paid and other payments made in connection with the project but excluding the cost of financing the capital cost of the project; or(B) $100 million.(3) Report limitation. The amount of the franchise tax credit for each report year is calculated by determining the amount of franchise tax that is due based on the taxable margin generated by a clean energy project from the generation and sale of power and the sale of any products that are produced by the electric generation facility. The amount of the franchise tax credit claimed under this section for a report year may not exceed the amount of franchise tax attributable to the clean energy project for that report year.(4) Issuance Restriction. A franchise tax credit for a clean energy project may not be issued before September 1, 2013.",
            "sourceNote": "Source Note: The provisions of this §3.593 adopted to be effective January 1, 2008, 32 TexReg 10049; amended to be effective December 31, 2009, 34 TexReg 9472."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=139407&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "139407",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "V",
                "label": "FRANCHISE TAX"
            },
            "rule": {
                "number": "§3.594",
                "label": "Margin: Temporary Credit for Business Loss Carryforwards"
            },
            "nextRule": {
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            "ruleBody": "(a) Provisions. The provisions of this section apply to franchise tax reports originally due on or after January 1, 2008.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Business loss--Any negative amount of earned surplus after apportionment and allocation but before any deductions for solar energy devices under Tax Code, §171.107, clean coal project under Tax Code, §171.108, or investment in an enterprise zone under Tax Code, §171.1015. Business losses must have been used to offset any positive amount of earned surplus even in years when no tax was due.(2) Business loss carryforward--Unused and unexpired amounts of business losses created on the 2003 and subsequent franchise tax report years.(c) Eligibility.(1) A taxable entity may claim the credit if the entity was, on May 1, 2006, subject to franchise tax.(2) A taxable entity that is a combined group may claim the credit for each member entity that was, on May 1, 2006, subject to the franchise tax and shall compute the amount of the credit for that member as provided by this section.(3) If a member of a combined group changes combined groups after June 30, 2007, the business loss carryforward of that member will no longer be included in the temporary credit calculation of the group and the related share of any temporary credit carried over from a previous year is lost to the group. There is no proration for a partial year. In addition, the business loss carryforward does not follow the member to a separately filed report or another combined group. If a member merges into another member of the group, that member's business loss carryforward will remain with the group. If the member dissolves, terminates, or otherwise leaves the group, the business loss carryover of that member is no longer eligible for use. If the combined group adds a new member or members, the credit of the existing members will remain intact, but no credit is allowed for the new member(s).(4) Example. Corporation A, corporation B, corporation C and corporation D are members of a combined group. They have business loss carryforwards of $2,000,000, $2,000,000, $2,000,000, and $4,000,000 respectively. In 2008, the combined group's credit will be $10,000,000 x 2.25% x 4.5% equaling $10,125. The combined group's tax due before the credit is $9,000 which results in a carryover of $1,125. During 2008, corporation D leaves the group. On the 2009 report, the combined group is entitled to a credit of $6,000,000 x 2.25% x 4.5% equaling $6,075. In addition, the group only has $675 of the carryover credit. They lost the 40% that was related to corporation D. However, if corporation D had merged into corporation C during 2008 instead of leaving the group, the combined group's credit will remain $10,125 for 2009 and there will still be a $1,125 carryover from 2008.(5) The preservation of the right to claim the credit may not be conveyed, assigned, or transferred to another entity.(d) Notice requirements.(1) A notice of intent to preserve the right to claim the temporary credit for business loss carryforwards must be submitted to the comptroller with the first report due from a taxable entity after January 1, 2008, on a form prescribed by the comptroller. The postmark date (or meter-mark date, if there is no postmark) on the envelope in which the form is received determines the date of filing.(2) The taxable entity must submit with the notice of intent the amount of business loss that is being carried forward.(3) After the initial preservation, the taxpayer may change the amount preserved only as the result of an Internal Revenue Service audit. The taxpayer must notify the comptroller in writing of the change within 120 days after the Internal Revenue Service audit is final.(4) If, upon audit by the comptroller, an adjustment is made to the business loss carryforward used on reports prior to 2008, then no notice is required and the amount of business loss carryforwards that were preserved and subsequently taken will be adjusted accordingly. The taxable entity will be liable for any additional tax, penalty, and interest due for years in which the credit was improperly claimed.(5) No other changes to the amount preserved will be allowed except as provided by subsections (d)(3) and (d)(4) of this section.(e) Electing the credit. The election to claim the credit shall be made on each report originally due on or after January 1, 2008 and before September 1, 2027.(1) A taxable entity elects the credit by:(A) properly taking the credit on a report filed on or before the original due date; or(B) electing the credit on a timely filed extension request and properly taking the credit on the report filed on or before the extended due date of the report.(2) If an election to take the credit is not made on or before the original due date of the report as indicated in paragraph (1) of this subsection, the credit for that year is lost for that year and cannot be carried over to a subsequent year.(3) A taxable entity that uses the E-Z Computation to report and pay its franchise tax may not elect to take the business loss carryforward credit in that year. See Tax Code, §171.1016(c). For any report year in which the E-Z Computation is used, the credit for that year's report is lost and may not be carried over to subsequent years.(f) Computation of the credit.(1) For report years 2008 - 2017: Business loss carryforward amount x 2.25% x 4.5%.(2) For report years 2018 - 2027: Business loss carryforward amount x 7.75% x 4.5%.(g) Credit carryover. The amount of credit claimed on any report may not exceed the amount of franchise tax due for that report year. The credit is applied to the franchise tax due only if the tax due exceeds $1,000. Unused credits may be carried over to subsequent report years unless subsection (e)(2) of this section applies.",
            "sourceNote": "Source Note: The provisions of this §3.594 adopted to be effective January 1, 2008, 32 TexReg 10051; amended to be effective January 1, 2009, 33 TexReg 10505."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=191407&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "191407",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "V",
                "label": "FRANCHISE TAX"
            },
            "rule": {
                "number": "§3.598",
                "label": "Margin: Tax Credit for Certified Rehabilitation of Certified Historic Structures"
            },
            "nextRule": {
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                "recordId": "209839",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Effective date. The provisions of this section apply to franchise tax reports originally due on or after January 1, 2015, except as otherwise noted.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Audited cost report--A report that itemizes the eligible costs and expenses incurred by the entity in the certified rehabilitation of the certified historic structure and that is issued by a certified public accountant who holds a certificate issued under Occupations Code, Chapter 901 (Accountants) or is an out-of-state practitioner with substantially equivalent qualifications as provided by Occupations Code, §901.462 (Practice by Out-of-State Practitioner with Substantially Equivalent Qualifications).(2) Certificate of eligibility--The certification issued by the commission in accordance with Tax Code, §171.904 (Certification of Eligibility), confirming that the property to which the eligible costs and expenses relate is a certified historic structure and that the rehabilitation qualifies as a certified rehabilitation; and specifying the date the historic structure was first placed in service after the rehabilitation.(3) Certified historic structure--A property in this state that is:(A) listed individually in the National Register of Historic Places;(B) designated as a Recorded Texas Historic Landmark under Government Code, §442.006 (State Historical Marker Program), or as a state archeological landmark under Natural Resources Code, Chapter 191 (Antiquities Code); or(C) certified by the commission as contributing to the historic significance of:(i) a historic district listed in the National Register of Historic Places; or(ii) a local district certified by the United States Department of the Interior in accordance with 36 Code of Federal Regulations, §67.9 (Certification of State or Local Historic District).(4) Certified rehabilitation--The rehabilitation of a certified historic structure that the commission has certified as meeting the United States Secretary of the Interior's Standards for Rehabilitation as defined in 36 Code of Federal Regulations, §67.7 (Standards of Rehabilitation).(5) Commission--The Texas Historical Commission.(6) Eligible costs and expenses--Except as provided in subparagraphs (A) and (B) of this paragraph, qualified rehabilitation expenditures, as defined by Internal Revenue Code, §47(c)(2) (Rehabilitation Credit), incurred by the entity establishing the credit.(A) Nonprofit corporation exempt from federal income tax. Effective for reports due on or after January 1, 2016, the provisions of Internal Revenue Code, §47(c)(2)(B)(i) (Straight-line depreciation must be used) and (v) (Tax-exempt use property) do not apply to costs and expenses incurred by an entity exempted under Tax Code, §171.063 (Exemptions-Nonprofit Corporation Exempt from Federal Income Tax) if the other provisions of Internal Revenue Code, Section §47(c)(2) are satisfied.(B) Institution of higher education or university system. Effective for costs and expenses incurred on or after June 14, 2017, and before January 1, 2022, the provisions of Internal Revenue Code, §47(c)(2)(B)(i) and (v) do not apply to costs and expenses incurred by an institution of higher education or university system as defined by Education Code, §61.003 (Definitions), if the other provisions of Internal Revenue Code, §47(c)(2) are satisfied.(7) Placed-in-service date--The date specified on the certificate of eligibility issued by the commission. See also 13 TAC §13.1.(8) Year--A calendar year.(c) Qualifications for credit. An entity may qualify for a credit for eligible costs and expenses incurred by the entity in the rehabilitation of a certified historic structure provided in this section if:(1) the rehabilitated certified historic structure is placed in service on or after September 1, 2013;(2) the entity has an ownership interest in the certified historic structure in the year during which the structure is placed in service after the rehabilitation;(3) the total amount of eligible costs and expenses incurred by the entity exceeds $5,000; and(4) the entity received a Certificate of Eligibility from the commission.(d) Establishing the credit.(1) Required documentation. The entity that incurred the eligible costs and expenses in the certified rehabilitation of a certified historic structure must submit the following documentation to the comptroller to establish the credit:(A) a Texas Franchise Tax Historic Structure Credit Registration, or any successor to the form promulgated by the comptroller, which includes an attestation of the total eligible costs and expenses incurred by the entity on the rehabilitation of the certified historic structure;(B) a Certificate of Eligibility issued by the commission. The certificate must confirm:(i) the property to which the eligible costs and expenses relate is a certified historic structure;(ii) the rehabilitation qualifies as a certified rehabilitation; and(iii) the date the certified historic structure was first placed in service after the rehabilitation; and(C) an audited cost report.(2) Submission of documentation. The documentation required in paragraph (1) of this subsection may be submitted to the comptroller:(A) on or with the franchise tax report for the period for which the tax credit is claimed; or(B) upon receipt of the Certificate of Eligibility issued by the commission.(3) The burden of establishing eligibility for the credit is on the entity incurring the eligible costs and expenses.(4) The comptroller will rely on the audited cost report. It is the responsibility of the certified public accountant hired by the entity establishing the credit to make a determination on whether items qualify as eligible costs and expenses.(5) The credit must be established within the statute of limitations based on the due date of the first report on which the credit may be claimed under subsection (f)(1) of this section.(6) Texas Franchise Tax Historic Structure Credit Certificate. Upon receipt of the required documentation, the comptroller will issue to the entity that incurred the eligible costs and expenses a Texas Franchise Tax Historic Structure Credit Certificate indicating the entity as the owner of the credit and the amount of credit available to that entity.(e) Amount of credit.(1) The total amount of the credit that may be claimed with respect to the certified rehabilitation of a single certified historic structure may not exceed 25% of the total eligible costs and expenses incurred in the certified rehabilitation of the certified historic structure. For purposes of approving the credit, the comptroller will rely on the audited cost report provided by the entity establishing the credit.(2) The total credit claimed for a report, including the amount of any carryforward under subsection (g) of this section, may not exceed the amount of franchise tax due for the report after any other applicable tax credits.(3) Eligible costs and expenses may only be counted once in determining the amount of the credit available, and more than one entity may not establish a credit for the same eligible costs and expenses.(f) Claiming the credit.(1) The first report on which the credit may be claimed is the report based on the accounting period during which the rehabilitated structure is placed in service. Rehabilitated historic structures placed in service between September 1, 2013, and December 31, 2013, are considered to be placed in service January 1, 2014, for purposes of this paragraph only. For example, a 2015 report with an accounting year of January 1 through December 31, 2014, may claim a credit for historic structures placed in service within the 2014 accounting year.(2) An entity shall file with every report on which the credit is claimed the Texas Franchise Tax Historic Structure Credit Certificate issued to the entity by the comptroller, or any successor to the form promulgated by the comptroller.(3) The reporting entity for a combined group may claim the credit for each member entity that has established a credit under this section.(4) The burden of establishing the value of the credit is on the entity claiming the credit.(g) Carryforward.(1) If an entity is eligible for a credit that exceeds the limitations under subsection (e)(2) of this section, the entity may carry the unused credit forward and apply the credit to the tax imposed by this chapter in any of the succeeding five report years following the first report year after the certified historic structure is placed in service.(2) A carryforward is considered the remaining portion of a credit that cannot be claimed in the current year because of the limitation under subsection (e)(2) of this section.(3) The sale, assignment, or allocation of a credit in accordance with subsection (h) of this section does not extend the period for which a credit may be carried forward and does not increase the total amount of the credit that may be claimed.(4) For example, for a structure placed in service in 2014, a credit may be claimed on the 2015 report and the credit carryforward may be applied to the following five consecutive reports: the 2016, 2017, 2018, 2019, and 2020 reports. The credit expires after the 2020 report.(h) Sale, assignment, or allocation of credit.(1) Sale or assignment. An entity that incurs eligible costs and expenses may sell or assign all or part of the credit that may be claimed for those costs and expenses to one or more entities, and any entity to which all or part of the credit is sold or assigned may sell or assign all or part of the credit to another entity. There is no limit on the total number of transactions for the sale or assignment of all or part of the total credit authorized under this section, however, collectively, all transfers are subject to the maximum total limits provided by subsection (e) of this section.(2) Allocation. A credit earned or purchased by, or assigned to, a partnership, limited liability company, S corporation, or other pass-through entity may be allocated to the partners, members, or shareholders of that entity in accordance with the provisions of any agreement among the partners, members, or shareholders and without regard to the ownership interest of the partners, members, or shareholders in the rehabilitated certified historic structure. A partner, member, or shareholder to whom a credit is allocated may further allocate all or part of the allocated credit as provided in this paragraph or may sell or assign the allocated credit as provided in paragraph (1) of this subsection. There is no limit on the total number of allocations of all or part of the total credit authorized under this section, however, collectively, all transfers are subject to the maximum credit limits provided by subsection (e) of this section.(3) Documentation.(A) An entity that sells, assigns, or allocates a credit under this section to another entity shall provide a copy of the certificate of eligibility, together with the audited cost report, to the recipient of the credit.(B) An entity that sells, assigns, or allocates a credit under this section and the entity to which the credit is sold, assigned, or allocated shall jointly submit:(i) written notice of the sale, assignment, or allocation to the comptroller on a Texas Franchise Tax Sale, Assignment or Allocation of Historic Structure Credit form, or any successor to the form promulgated by the comptroller, not later than the 30th day after the date of the sale, assignment, or allocation. The notice must include the date of the sale, assignment, or allocation; the amount of the credit sold, assigned, or allocated; the names and federal identification numbers of the entity that sold, assigned, or allocated the credit or part of the credit and of the entity to which the credit or part of the credit was sold, assigned, or allocated; and the amount of the credit owned by the selling, assigning, or allocating entity before the sale, assignment, or allocation, and the amount the selling, assigning, or allocating entity retained, if any, after the sale, assignment, or allocation; and(ii) Texas Franchise Tax Historical Structure Credit Certificate.(C) Until the required documentation under subparagraph (B) of this paragraph is received by the comptroller's office, the recipient entity will not be allowed to claim the credit.(4) Carryforwards. The sale, assignment, or allocation of a credit in accordance with this section does not extend the period for which a credit may be carried forward and does not increase the total amount of the credit that may be claimed.(5) Limitation. After an entity establishes a credit for eligible costs and expenses, another entity may not use the same costs and expenses as the basis for establishing a credit.",
            "sourceNote": "Source Note: The provisions of this §3.598 adopted to be effective August 6, 2015, 40 TexReg 4904; amended to be effective November 22, 2016, 41 TexReg 9158; amended to be effective July 2, 2018, 43 TexReg 4466."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209839&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "209839",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "V",
                "label": "FRANCHISE TAX"
            },
            "rule": {
                "number": "§3.599",
                "label": "Margin: Research and Development Activities Credit"
            },
            "nextRule": {
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            },
            "ruleBody": "(a) Effective dates.(1) The provisions of this section apply to franchise tax reports originally due on or after January 1, 2014.(2) These provisions expire on December 31, 2026. The credits allowed under this section cannot be established on a report originally due after December 31, 2026. The expiration does not affect the carryforward of a credit authorized under these provisions as provided in subsection (l) of this section and established on a report originally due prior to the expiration date of these provisions.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Business component--A business component is any product, process, computer software, technique, formula, or invention, which is to be held for sale, lease, or license, or used by the taxable entity in a trade or business of the taxable entity.(2) Combined group--Taxable entities that are part of an affiliated group engaged in a unitary business and that are required to file a combined group report under Tax Code, §171.1014 (Combined Reporting; Affiliated Group Engaged in Unitary Business).(3) Controlling interest--(A) For a corporation, either more than 50%, owned directly or indirectly, of the total combined voting power of all classes of stock of the corporation, or more than 50%, owned directly or indirectly, of the beneficial ownership interest in the voting stock of the corporation.(B) For a partnership, association, trust, or other entity other than a limited liability company, more than 50%, owned directly or indirectly, of the capital, profits, or beneficial interest in the partnership, association, trust, or other entity.(C) For a limited liability company, either more than 50%, owned directly or indirectly, of the total membership interest of the limited liability company or more than 50%, owned directly or indirectly, of the beneficial ownership interest in the membership interest of the limited liability company.(4) Four-Part Test--The test described in IRC, §41(d) (Qualified research defined) that determines whether research activities are qualified research. The four parts of the test are the Section 174 Test, the Discovering Technological Information Test, the Business Component Test, and the Process of Experimentation Test.(5) Internal Revenue Code (IRC)--The Internal Revenue Code of 1986 in effect on December 31, 2011, excluding any changes made by federal law after that date, but including any regulations that are later adopted under that code applicable to the tax year to which the provisions of the code in effect on that date applied. A regulation adopted after December 31, 2011 is only included in this term to the extent that a taxable entity could have applied the regulation to the 2011 federal income tax year. Examples of treasury regulations included in this definition are:(A) Treasury Regulation, §1.174-2 (Definition of research and experimental expenditures) as contained in 26 CFR part 1 (revised as of July 21, 2014);(B) Treasury Regulation, §1.41-4 (Qualified research for expenditures paid or incurred in taxable years ending on or after December 31, 2003) as contained in 26 CFR part 1 (revised as of November 3, 2016), except for paragraph (c)(6) (Internal use software). For paragraph (c)(6), as provided in the last sentence of Treasury Regulation, §1.41-4 (e) (Effective/applicability dates), taxable entities may elect to follow either of the following versions of paragraph (c)(6):(i) Treasury Regulation, §1.41-4(c)(6) (Internal-use computer software) as contained in 26 CFR part 1 (revised as of April 1, 2003) and IRB 2001-5; or(ii) Proposed Treasury Regulation, §1.41-4(c)(6) (Internal use software for taxable years beginning on or after the December 31, 1985) as contained in IRB 2002-4.(6) Public or private institution of higher education--(A) an institution of higher education, as defined by Education Code, §61.003 (Definitions); or(B) a private or independent institution of higher education, as defined by Education Code, §61.003.(7) Qualified research--This term has the meaning given in IRC, §41(d), except that the research must be conducted in Texas. Qualified research activities must satisfy each part of the Four-Part Test.(8) Qualified research expense--This term has the meaning given in IRC, §41(b) (Qualified research expenses), except that the expense must be for qualified research conducted in Texas. IRC, §41(b) defines qualified research expenses as the sum of in-house research expenses and contract research expenses.(A) In-house research expenses include any wages paid or incurred for qualified services performed by an employee; any amount paid or incurred for supplies used in the conduct of qualified research; and any amount paid or incurred to another person for the right to use computers in the conduct of qualified research.(i) Qualified services include an employee either engaging in qualified research or engaging in the direct supervision or direct support of qualified research.(I) For the purposes of this clause, the term \"engaging in qualified research\" means the actual conduct of qualified research. For example, a scientist conducting laboratory experiments could be engaging in qualified research.(II) For the purposes of this clause, the term \"direct supervision\" means the immediate supervision (first-line management) of qualified research. For example, a research scientist who directly supervises laboratory experiments, but who may not actually perform experiments, could be directly supervising qualified research. \"Direct supervision\" does not include supervision by a higher-level manager to whom first-line managers report, even if that manager is a qualified research scientist.(III) For the purposes of this clause, the term \"direct support\" means services in the direct support of either: Persons engaging in actual conduct of qualified research, or persons who are directly supervising persons engaging in the actual conduct of qualified research.(-a-) Direct support of research includes, but is not limited to, the services of: a secretary for typing reports describing laboratory results derived from qualified research; a laboratory worker for cleaning equipment used in qualified research; a clerk for compiling research data; and a machinist for machining a part of an experimental model used in qualified research.(-b-) Direct support of research activities does not include general administrative services, or other services only indirectly of benefit to research activities. For example, services of: payroll personnel in preparing salary checks of laboratory scientists; an accountant for accounting for research expenses; a janitor for general cleaning of a research laboratory; or officers engaged in supervising financial or personnel matters do not qualify as direct support of research. This is true whether general administrative personnel are part of the research department or in a separate department.(-c-) Direct support does not include supervision. Supervisory services constitute \"qualified services\" only to the extent provided in subclause (II) of this clause.(ii) Supplies are any tangible property other than land, improvements to land, or property of a character subject to the allowance for depreciation.(iii) If a taxable entity claimed a sales or use tax exemption under Tax Code, Chapter 151 (Limited Sales, Excise, and Use Tax) when it purchased a taxable item, and that exemption is for a use other than use in qualified research, the item is excluded from being an in-house research expense, even if it otherwise meets the definition of supplies in clause (ii) of this subparagraph. Exemptions or exclusions that are not based on the use of an item do not result in an exclusion from being an in-house research expense under this clause.(I) For example:(-a-) An item for which a taxable entity claimed the manufacturing exemption under Tax Code, §151.318 (Property Used in Manufacturing) or the sale for resale exemption under Tax Code, §151.302 (Sales for Resale) is excluded from being an in-house research expense under this clause.(-b-) Water, sulphur, and items for which a taxable entity paid sales or use tax to another state are not subject to sales or use tax under Tax Code, §151.315 (Water), Tax Code, §151.3171 (Sulphur), and Tax Code, §151.303 (Previously Taxed Items: Use Tax Exemption or Credit), but are not excluded from being an in-house research expense under this clause.(II) If an item is excluded from being an in-house research expense under this clause, and the taxable entity used that item in qualified research activities rather than the use for which the sales or use tax exemption was granted, the taxable entity may pay any sales or use tax, and any applicable penalty or interest, related to the purchase or use of the item. Once the applicable sales or use tax, penalty, and interest is paid, the taxable entity may include the cost of that item as an in-house research expense.(iv) The term wages has the meaning given such term by IRC, §3401(a) (Wages). In the case of an employee within the meaning of IRC, §401(c)(1) (Self-employed individual treated as employee) the term wages includes the earned income as defined in IRC, §401(c)(2) (Earned income) of such employee. The term wages does not include any amount taken into account in determining the work opportunity credit under IRC, §51(a) (Determination of amount).(v) If an employee performed both qualified services and nonqualified services, only wages for qualified services constitute an in-house research expense. Unless the taxable entity can demonstrate another method is more appropriate, the amount of wages that are in-house research expenses shall be determined by multiplying the total amount of wages paid to or incurred for the employee during the report year by the ratio of the total time actually spent by the employee in the performance of qualified services for the taxable entity to the total time spent by the employee in the performance of all services for the taxable entity during the report year.(vi) Notwithstanding clause (v) of this subparagraph, if the ratio of the total time actually spent by an employee in the performance of qualified services for the taxable entity to the total time spent by the employee in the performance of all services for the taxable entity during the report year is greater than 80%, all services performed by that employee are considered qualified services.(B) Contract research expenses are 65% of any amount paid or incurred by the taxable entity to any person, other than an employee of the taxable entity, for qualified research. If a taxable entity satisfies the requirements of IRC, §41(b)(3)(C) (Amounts paid to certain research consortia) or IRC, §41(b)(3)(D) (Amounts paid to eligible small businesses, universities, and Federal laboratories) the percentage of allowable contract research expenses is increased as provided by those subparagraphs.(i) An expense is paid or incurred for qualified research only to the extent that it is paid or incurred pursuant to an agreement that:(I) is entered into prior to the performance of the qualified research;(II) provides that research be performed on behalf of the taxable entity; and(III) requires the taxable entity to bear the expense even if the research is not successful.(ii) If an expense is paid or incurred by the taxable entity pursuant to an agreement under which payment is contingent on the success of the research, then the expense is not a contract research expense because the expense is considered paid for the product or result of the research rather than the performance of the research. This clause only applies to that portion of a payment that is contingent on the success of the research.(iii) Qualified research is performed on behalf of the taxable entity if the taxable entity has a right to the research results, even if that right is not exclusive.(iv) If any contract research expenses are paid or incurred during one report year for qualified research that is conducted in a subsequent report year, the expenses shall be treated as paid or incurred during the report year in which the qualified research is conducted.(v) See IRC, §41(b) for special circumstances that change the percentage that applies to contract research expenses.(9) Registration Number--The Texas Qualified Research Registration Number issued by the comptroller to a person who submits the Texas Registration for Qualified Research and Development Sales Tax Exemption form.(10) Research and development activities credit (credit)--A credit against franchise tax for qualified research expenses that is allowed under Tax Code, Chapter 171, Subchapter M (Tax Credit for Certain Research and Development Activities).(11) Tax period--The period on which a franchise tax report is based as provided by §3.584(c) of this title (relating to Margin: Reports and Payments).(c) Application of the Four-Part Test. Research activities must satisfy each part of the Four-Part Test, as described in paragraph (1) of this subsection, to be qualified research.(1) Four-Part Test.(A) Section 174 Test. Expenditures related to the research must be eligible to be treated as expenses under IRC, §174 (Research and experimental expenditures).(i) Expenditures are eligible to be treated as expenses under IRC, §174, if the expenditures are incurred in connection with the taxable entity's trade or business and represent a research and development cost in the experimental or laboratory sense. Expenditures represent research and development costs in the experimental or laboratory sense if they are for activities intended to discover information that would eliminate uncertainty concerning the development or improvement of a product. Uncertainty exists if the information available to the taxable entity does not establish the capability or method for developing or improving the product or the appropriate design of the product.(ii) For the purposes of this test, the term \"product\" includes any pilot model, process, formula, invention, technique, patent, or similar property, and includes products to be used by the taxable entity in its trade or business as well as products to be held for sale, lease, or license.(iii) Expenditures for the following are not eligible to be treated as expenses under IRC, §174:(I) land;(II) depreciable property;(III) the ordinary testing or inspection of materials or products for quality control;(IV) efficiency surveys;(V) management studies;(VI) consumer surveys;(VII) advertising or promotions;(VIII) the acquisition of another's patent, model, production, or process; or(IX) research in connection with literary, historical, or similar projects.(B) Discovering Technological Information Test. The research must be undertaken for the purpose of discovering information that is technological in nature.(i) Research is undertaken for the purpose of discovering technological information if it is intended to eliminate uncertainty concerning the development or improvement of a business component. Uncertainty exists if the information available to the taxable entity does not establish the capability or method for developing or improving the business component, or the appropriate design of the business component.(ii) In order to satisfy the requirement that the research is technological in nature, the process of experimentation used to discover information must fundamentally rely on principles of the physical or biological sciences, engineering, or computer science. A taxable entity may employ existing technologies and may rely on existing principles of the physical or biological sciences, engineering, or computer science to satisfy this requirement.(iii) A determination that research is undertaken for the purpose of discovering information that is technological in nature does not require that the taxable entity:(I) seek to obtain information that exceeds, expands, or refines the common knowledge of skilled professionals in the particular field of science or engineering in which the taxable entity is performing the research; or(II) succeed in developing a new or improved business component.(C) Business Component Test. The application of the technological information for which the research is undertaken must be intended to be useful in the development of a new or improved business component of the taxable entity, which may include any product, process, computer software, technique, formula, or invention that is to be held for sale, lease, or license, or used by the taxable entity in a trade or business of the taxable entity.(i) If a taxable entity provides a service to a customer, the service provided to that customer is not a business component because a service is not a product, process, computer software, technique, formula, or invention. However, a product, process, computer software, technique, formula, or invention used by a taxable entity to provide services to its customers may be a business component.(ii) A design is not a business component because a design is not a product, process, computer software, technique, formula, or invention. While uncertainty as to the appropriate design of a business component is a qualifying uncertainty for the Section 174 Test and the Discovering Technological information test, the design itself is not a business component. For example, the design of a structure is not a business component, although the structure itself may be a business component. Similarly, a blueprint or other plan used to construct a structure that embodies a design is not a business component.(D) Process of Experimentation Test. Substantially all of the research activities must constitute elements of a process of experimentation for a qualified purpose. A process of experimentation is undertaken for a qualified purpose if it relates to a new or improved function, performance, reliability, or quality of a business component. Any research relating to style, taste, cosmetic, or seasonal design factors does not satisfy the Process of Experimentation Test.(i) A process of experimentation is a process designed to evaluate one or more alternatives to achieve a result where the capability or the method of achieving that result, or the appropriate design of that result, is uncertain as of the beginning of the taxable entity's research activities.(ii) A process of experimentation must:(I) be an evaluative process and generally should be capable of evaluating more than one alternative; and(II) fundamentally rely on the principles of the physical or biological sciences, engineering, or computer science and involve:(-a-) the identification of uncertainty concerning the development or improvement of a business component;(-b-) the identification of one or more alternatives intended to eliminate that uncertainty; and(-c-) the identification and the conduct of a process of evaluating the alternatives through, for example, modeling, simulation, or a systematic trial and error methodology.(iii) A taxable entity may undertake a process of experimentation if there is no uncertainty concerning the taxable entity's capability or method of achieving the desired result so long as the appropriate design of the desired result is uncertain as of the beginning of the taxable entity's research activities. Uncertainty concerning the development or improvement of the business component (e.g., its appropriate design) does not establish that all activities undertaken to achieve that new or improved business component constitute a process of experimentation.(iv) The substantially all requirement of this subparagraph is satisfied only if 80% or more of a taxable entity's research activities, measured on a cost or other consistently applied reasonable basis constitute elements of a process of experimentation that relates to a new or improved function, performance, reliability, or quality. The substantially all requirement is satisfied even if the remainder of a taxable entity's research activities with respect to the business component do not constitute elements of a process of experimentation that relates to a new or improved function, performance, reliability, or quality.(v) Non-experimental methods, such as simple trial and error, brainstorming, or reverse engineering, are not considered a process of experimentation.(vi) The following are factors that may be considered in determining whether a trial and error methodology is experimental systematic trial and error or non-experimental simple trial and error. Evidence provided to determine the type of trial and error is not limited to these factors, nor is evidence of each factor required. These factors only apply to determining whether a process of experimentation is systematic trial and error. Systematic trial and error is not the only qualifying process of experimentation. These factors are:(I) whether the person conducting the trial and error methodology stops testing alternatives once a single acceptable result is found or continues to find multiple acceptable results for comparison;(II) whether all the results of the trial and error methodology are recorded for evaluation;(III) whether there is a written procedure for conducting the trial and error methodology; and(IV) whether there is a written procedure for evaluating the results of the trial and error methodology.(vii) Examples.(I) Example 1. A taxable entity is engaged in the business of developing and manufacturing widgets. The taxable entity wants to change the color of its blue widget to green. The taxable entity obtains several different shades of green paint from various suppliers. The taxable entity paints several sample widgets, and surveys its customers to determine which shade of green its customers prefer. The taxable entity's activities to change the color of its blue widget to green do not satisfy the Process of Experimentation Test because its activities are not undertaken for a qualified purpose. All of the taxable entity's research activities are related to style, taste, cosmetic, or seasonal design factors.(II) Example 2. The taxable entity in Example 1 chooses one of the green paints. The taxable entity obtains samples of the green paint from a supplier and determines that it must modify its painting process to accommodate the green paint because the green paint has different characteristics from other paints it has used. The taxable entity obtains detailed data on the green paint from its paint supplier. The taxable entity also consults with the manufacturer of its paint spraying machines. The manufacturer informs the taxable entity that it must acquire new nozzles that operate with the green paint it wants to use because the current nozzles do not work with the green paint. The taxable entity tests the new nozzles, using the green paint, to ensure that they work as specified by the manufacturer of the paint spraying machines. The taxable entity's activities to modify its painting process are not qualified research. The taxable entity did not conduct a process of evaluating alternatives in order to eliminate uncertainty regarding the modification of its painting process. Rather, the manufacturer of the paint machines eliminated the taxable entity's uncertainty regarding the modification of its painting process. The taxable entity's activities to test the nozzles to determine if the nozzles work as specified by the manufacturer of the paint spraying machines are in the nature of routine or ordinary testing or inspection for quality control.(III) Example 3. A taxable entity is engaged in the business of manufacturing food products and currently manufactures a large-shred version of a product. The taxable entity seeks to modify its current production line to permit it to manufacture both a large-shred version and a fine-shred version of one of its food products. A smaller, thinner shredding blade capable of producing a fine-shred version of the food product is not commercially available. Thus, the taxable entity must develop a new shredding blade that can be fitted onto its current production line. The taxable entity is uncertain concerning the design of the new shredding blade because the material used in its existing blade breaks when machined into smaller, thinner blades. The taxable entity engages in a systematic trial and error process of analyzing various blade designs and materials to determine whether the new shredding blade must be constructed of a different material from that of its existing shredding blade and, if so, what material will best meet its functional requirements. The taxable entity's activities to modify its current production line by developing the new shredding blade satisfy the Process of Experimentation Test. Substantially all of the taxable entity's activities constitute elements of a process of experimentation because it evaluated alternatives to achieve a result where the method of achieving that result, and the appropriate design of that result, were uncertain as of the beginning of the taxable entity's research activities. The taxable entity identified uncertainties related to the development of a business component, and identified alternatives intended to eliminate these uncertainties. Furthermore, the taxable entity's process of evaluating identified alternatives was technological in nature and was undertaken to eliminate the uncertainties.(IV) Example 4. A taxable entity is in the business of designing, developing and manufacturing automobiles. In response to government-mandated fuel economy requirements, the taxable entity seeks to update its current model vehicle and undertakes to improve aerodynamics by lowering the hood of its current model vehicle. The taxable entity determines, however, that lowering the hood changes the air flow under the hood, which changes the rate at which air enters the engine through the air intake system, which reduces the functionality of the cooling system. The taxable entity's engineers are uncertain how to design a lower hood to obtain the increased fuel economy, while maintaining the necessary air flow under the hood. The taxable entity designs, models, simulates, tests, refines, and re-tests several alternative designs for the hood and associated proposed modifications to both the air intake system and cooling system. This process enables the taxable entity to eliminate the uncertainties related to the integrated design of the hood, air intake system, and cooling system. Such activities constitute 85% of its total activities to update its current model vehicle. The taxable entity then engages in additional activities that do not involve a process of evaluating alternatives in order to eliminate uncertainties. The additional activities constitute only 15% of the taxable entity's total activities to update its current model vehicle. In this case substantially all of the taxable entity's activities constitute elements of a process of experimentation because it evaluated alternatives to achieve a result where the method of achieving that result, and the appropriate design of that result, were uncertain as of the beginning of its research activities. The taxable entity identified uncertainties related to the improvement of a business component and identified alternatives intended to eliminate these uncertainties. Furthermore, the taxable entity's process of evaluating the identified alternatives was technological in nature and was undertaken to eliminate the uncertainties. Because 85% of the taxable entity's activities to update its current model vehicle constitute elements of a process of experimentation that relates to a new or improved function, performance, reliability, or quality, all of its activities satisfy the Process of Experimentation Test.(V) Example 5. A taxable entity is in the business of providing building and construction services, including the construction of warehouses, strip malls, office buildings, and other commercial structures. The taxable entity is engaged to construct a structure in a part of Texas where foundation problems are common. The taxable entity's engineers were uncertain how to design the structure to ensure stability of the structure's foundation because the taxable entity had never designed a structure in a similar location. The taxable entity's engineers used their professional experience and various building codes to determine how to design the foundation based on the conditions at the construction site. The engineers chose to use piles in the foundation. The taxable entity constructed a test pile on site to confirm whether this would work in the conditions present on the construction site. This test pile would become part of the foundation of the structure regardless of whether the engineers had to redesign the additional piles required for the foundation. The taxable entity's activities in using professional experience and business codes to design the foundation did not meet the Process of Experimentation Test because the activities did not resolve technological uncertainties through an experimental process. Constructing the test pile also did not meet the Process of Experimentation Test because it was not an evaluative process.(VI) Example 6. A taxable entity is in the business of providing building and construction services, including the construction of warehouses, strip malls, office buildings, and other commercial structures. For one of its projects to construct an office building, the taxable entity was uncertain how to design the layout of the electrical systems. The taxable entity's employees held on-site meetings to discuss different options, such as running the wire under the floor or through the ceiling, but did not actually experiment by installing wire in different locations. The taxable entity used computer-aided simulation and modeling to produce the final electrical system layout. While in some cases computer-aided simulation and modeling may be an experimental process, in this case, it was not an experimental process because the taxable entity did not use the computer-aided simulation and modeling to evaluate different alternatives in a scientific manner. The taxable entity's activities did not satisfy the Process of Experimentation Test because it did not conduct an experimental process of evaluating alternatives to eliminate a technological uncertainty.(VII) Example 7. A taxable entity is an oil and gas operator that recently acquired rights to drill in an area in which it had not previously operated. The taxable entity decided to use horizontal drilling in this area, but it had never drilled a horizontal well and was uncertain how to successfully execute the horizontal drilling. At the time the taxable entity began horizontal drilling, the technology to drill horizontal wells was established. The taxable entity selected technology from existing commercially available options to use in its horizontal drilling program. The taxable entity's activities did not satisfy the Process of Experimentation Test because evaluating commercially available options does not constitute a process of experimentation.(VIII) Example 8. A taxable entity is an oil and gas operator that recently acquired rights to drill in an area in which it had not previously operated. The taxable entity decided to use horizontal drilling in this area. The taxable entity had drilled a horizontal well before in a different formation and at different depths. However, it had never drilled a horizontal well in this formation or at the required depths and was uncertain how to successfully execute the horizontal drilling. The taxable entity utilized its existing technology to perform its horizontal drilling operations in this area and the existing technology was successful. The taxable entity's activities did not satisfy the Process of Experimentation Test because the taxable entity merely used its existing technology and did not perform any experimentation to evaluate any alternative drilling methods.(IX) Example 9. A taxable entity sought to discover cancer immunotherapies. The taxable entity was uncertain as to the appropriate design of the proteins to be used as a drug candidate. The taxable entity identified several alternative protein constructs and used a process to test them. The taxable entity's process involved testing the constructs using in vitro functional assays and binding assays, and either modifying the designs or discarding them and repeating the previous steps. The taxable entity took the resulting products from the in vitro testing and tested the drug candidate in living organisms. This process evaluated the various alternatives identified by the taxable entity. The taxable entity's activities satisfied the Process of Experimentation Test.(2) Application of the Four-Part Test to business components. The Four-Part Test is applied separately to each business component of the taxable entity. Any plant process, machinery, or technique for commercial production of a business component is treated as a separate business component from the business component being produced.(3) Shrink-back rule. The Four-Part Test is first applied at the level of the discrete business component used by the taxable entity in a trade or business of the taxable entity. If the requirements of the Four-Part Test are not met at that level, then they are applied at the next most significant subset of elements of the business component. This shrinking back of the product continues until either a subset of elements of the product that satisfies the requirements of the Four-Part Test is reached, or the most basic element of the product is reached, and such element fails to satisfy any part of the Four-Part Test.(4) Software development as qualified research. In determining if software development activities constitute qualified research, the comptroller will consider the facts and circumstances of each activity.(A) Application of Four-Part Test to software development activities.(i) A taxable entity must prove that a software development activity is qualified research and meets all the requirements of the Four-Part Test under paragraph (1) of this subsection, even if the activity is likely to qualify as described in subparagraph (B) of this paragraph.(ii) A taxable entity may prove that a software development activity described as unlikely to qualify in subparagraph (C) of this paragraph, is qualified research by providing evidence that the activity meets all the requirements of the Four-Part Test under paragraph (1) of this subsection.(B) Software development activities likely to qualify. Types of activities likely to qualify include, but are not limited to:(i) developing the initial release of an application software product that includes new constructs, such as new architectures, new algorithms, or new database management techniques;(ii) developing system software, such as operating systems and compilers;(iii) developing specialized technologies, such as image processing, artificial intelligence, or speech recognition; and(iv) developing software as part of a hardware product where the software interacts directly with that hardware in order to make the hardware/software package function as a unit.(C) Software development activities unlikely to qualify. Types of activities unlikely to qualify include, but are not limited to:(i) maintaining existing software applications or products;(ii) configuring purchased software applications;(iii) reverse engineering of existing applications;(iv) performing studies, or similar activities, to select vendor products;(v) detecting flaws and bugs directed toward the verification and validation that the software was programmed as intended and works correctly;(vi) modifying an existing software business component to make use of new or existing standards or devices, or to be compliant with another vendor's product or platform;(vii) developing a business component that is substantially similar in technology, functionality, and features to the capabilities already in existence at other companies;(viii) upgrading to newer versions of hardware or software or installing vendor-fix releases;(ix) re-hosting or porting an application to a new hardware such as from mainframe to PC, or software platform, such as Windows to UNIX, or rewriting an existing application in a new language, such as rewriting a COBOL mainframe application in C++;(x) writing hardware device drivers to support new hardware, such as disks, scanners, printers, or modems;(xi) performing data quality, data cleansing, and data consistency activities, such as designing and implementing software to validate data fields, clean data fields, or make the data fields consistent across databases and applications;(xii) bundling existing individual software products into product suites, such as combining existing word processor, spreadsheet, and slide presentation software applications into a single suite;(xiii) expanding product lines by purchasing other products;(xiv) developing interfaces between different software applications;(xv) developing vendor product extensions;(xvi) designing graphic user interfaces;(xvii) developing functional enhancements to existing software applications/products;(xviii) developing software as an embedded application, such as in cell phones, automobiles, and airplanes;(xix) developing software utility programs, such as debuggers, backup systems, performance analyzers, and data recovery;(xx) changing from a product based on one technology to a product based on a different or newer technology; and(xxi) adapting and commercializing technology developed by a consortium or open software group.(d) Excluded research activities. Qualified research does not include the activities described in this subsection.(1) Research after commercial production. Any research conducted after the beginning of commercial production of the business component.(A) Activities are conducted after the beginning of commercial production of a business component if such activities are conducted after the component is developed to the point where it is ready for commercial sale or use or meets the basic functional and economic requirements of the taxable entity for the component's sale or use.(B) The following activities are deemed to occur after the beginning of commercial production of a business component:(i) preproduction planning for a finished business component;(ii) tooling-up for production;(iii) trial production runs;(iv) troubleshooting involving detecting faults in production equipment or processes;(v) accumulating data relating to production processes;(vi) debugging flaws in a business component; and(vii) any activities that involve the use of an item for which the taxable entity claimed the manufacturing exemption under Tax Code, §151.318.(C) In cases involving development of both a product and a manufacturing or other commercial production process for the product, the research after commercial production exclusion applies separately for the activities relating to the development of the product and the activities relating to the development of the process. For example, even after a product meets the taxable entity's basic functional and economic requirements, activities relating to the development of the manufacturing process may still constitute qualified research, provided that the development of the process itself separately satisfies the requirements of this section, and the activities are conducted before the process meets the taxable entity's basic functional and economic requirements or is ready for commercial use.(D) Clinical testing of a pharmaceutical product prior to its commercial production in the United States is not treated as occurring after the beginning of commercial production even if the product is commercially available in other countries. Additional clinical testing of a pharmaceutical product after a product has been approved for a specific therapeutic use by the Food and Drug Administration and is ready for commercial production and sale is not treated as occurring after the beginning of commercial production if such clinical testing is undertaken to establish new functional uses, characteristics, indications, combinations, dosages, or delivery forms for the product. A functional use, characteristic, indication, combination, dosage, or delivery form shall be considered new only if such functional use, characteristic, indication, combination, dosage, or delivery form must be approved by the Food and Drug Administration.(E) Examples.(i) Example 1. A taxable entity is a tire manufacturer and develops a new material to use in its tires. The taxable entity conducts research to determine the changes that will be necessary for it to modify its existing manufacturing processes to manufacture the new tire. The taxable entity determines that the new tire material retains heat for a longer period of time than the materials it currently uses for tires, and, as a result, the new tire material adheres to the manufacturing equipment during tread cooling. The taxable entity evaluates several alternatives for processing the treads at cooler temperatures to address this problem, including a new type of belt for its manufacturing equipment to be used in tread cooling. Such a belt is not commercially available. Because the taxable entity is uncertain of the belt design, it develops and conducts sophisticated engineering tests on several alternative designs for a new type of belt to be used in tread cooling until it successfully achieves a design that meets its requirements. The taxable entity then manufactures a set of belts for its production equipment, installs the belts, and tests the belts to make sure they were manufactured correctly. The taxable entity's research with respect to the design of the new belts to be used in its manufacturing of the new tire may be qualified research under the Four-Part Test. However, the taxable entity's expenses to implement the new belts, including the costs to manufacture, install, and test the belts were incurred after the belts met the taxable entity's functional and economic requirements and are excluded as research after commercial production.(ii) Example 2. For several years, a taxable entity has manufactured and sold a particular kind of widget. The taxable entity initiates a new research project to develop a new or improved widget. The taxable entity's activities to develop a new or improved widget are not excluded from the definition of qualified research under this paragraph. The taxable entity's activities relating to the development of a new or improved widget constitute a new research project to develop a new business component and are not considered activities conducted after the beginning of commercial production.(iii) Example 3. For the purposes of this example, assume that the taxable entity's development of its products and manufacturing processes satisfies the Four-Part Test described by subsection (c) of this section and is not otherwise excluded under this subsection. A taxable entity is a manufacturer of integrated circuits for use in specific applications. The taxable entity develops various integrated circuit devices and associated manufacturing processes. The taxable entity assembles various product configurations for testing. After an internal process of testing, the taxable entity delivers a sample quantity of the integrated circuit to a potential customer for further testing. At the time when the samples are delivered to the taxable entity's potential customer, the potential customer has not agreed to purchase any integrated circuits from the taxable entity. This process of testing by both the taxable entity and its potential customer continues until an acceptable product and manufacturing process to produce the product is achieved. At that point, the taxable entity and the potential customer enter into an agreement for the delivery of an order of the integrated circuits. In some cases, no acceptable product or manufacturing process is achieved, and no agreement is reached with the potential customer. Research activities occurring prior to an agreement are not considered activities conducted after the beginning of commercial production because the integrated circuits were not yet ready for commercial use. Any research that occurs after an agreement is reached are excluded as activities conducted after the beginning of commercial production because the integrated circuits were ready for commercial use once the product and associated manufacturing process was accepted by the potential customer.(2) Adaptation of existing business components. Activities relating to adapting an existing business component to a particular customer's requirement or need. This exclusion does not apply merely because a business component is intended for a specific customer. For example:(A) Example 1. A taxable entity is a computer software development firm and owns a general ledger accounting software core program that it markets and licenses to customers. The taxable entity incurs expenditures in adapting the core software program to the requirements of one of its customers. Because the taxable entity's activities represent activities to adapt an existing software program to a particular customer's requirement or need, its activities are excluded from the definition of qualified research under this paragraph.(B) Example 2. Assume that the customer from Example 1 pays the taxable entity to adapt the core software program to the customer's requirements. Because the taxable entity's activities are excluded from the definition of qualified research, the customer's payments to the taxable entity are not for qualified research and are not considered to be contract research expenses.(C) Example 3. Assume that the customer from Example 1 uses its own employees to adapt the core software program to its requirements. Because the customer's employees' activities to adapt the core software program to its requirements are excluded from the definition of qualified research, the wages the customer paid to its employees do not constitute in-house research expenses.(D) Example 4. A taxable entity manufactures and sells rail cars. Because rail cars have numerous specifications related to performance, reliability and quality, rail car designs are subject to extensive, complex testing in the scientific or laboratory sense. A customer orders passenger rail cars from the taxable entity. The customer's rail car requirements differ from those of the taxable entity's other existing customers only in that the customer wants fewer seats in its passenger cars and a higher quality seating material and carpet that are commercially available. The taxable entity manufactures rail cars meeting the customer's requirements. The rail car sold to the customer was not a new business component, but merely an adaptation of an existing business component that did not require a process of experimentation. Thus, the taxable entity's activities to manufacture rail cars for the customer are excluded from the definition of qualified research because the taxable entity's activities represent activities to adapt an existing business component to a particular customer's requirement or need.(E) Example 5. A taxable entity is a manufacturer and undertakes to create a manufacturing process for a new valve design. The taxable entity determines that it requires a specialized type of robotic equipment to use in the manufacturing process for its new valves. Such robotic equipment is not commercially available. Therefore, the taxable entity purchases existing robotic equipment for the purpose of modifying it to meet its needs. The taxable entity's engineers identify uncertainty that is technological in nature concerning how to modify the existing robotic equipment to meet its needs. The taxable entity's engineers develop several alternative designs, conduct experiments using modeling and simulation in modifying the robotic equipment, and conduct extensive scientific and laboratory testing of design alternatives. As a result of this process, the taxable entity's engineers develop a design for the robotic equipment that meets its needs. The taxable entity constructs and installs the modified robotic equipment on its manufacturing process. The taxable entity's research activities to determine how to modify the robotic equipment it purchased for its manufacturing process are not considered an adaptation of an existing business component.(F) Example 6. A taxable entity is an oil and gas operator and has been engaged in horizontal drilling for the past ten years. Recently, the taxable entity was hired by a customer to drill in a formation. The drilling objectives included targeting an interval within that formation for horizontal drilling. The taxable entity was uncertain about the successful execution of the horizontal drilling because it had not previously drilled a horizontal well in that formation. The taxable entity was also uncertain about the economic results from the targeted interval. The taxable entity drilled several horizontal wells before its customer was satisfied with the economic results. The taxable entity modified its existing horizontal drilling program based on these results. The taxable entity's activities to identify a horizontal drilling process are excluded from the definition of qualified research because the activities consisted of adapting an existing business component, its existing horizontal drilling process, and did not involve creating a new or improved business component.(G) Example 7. For the purposes of this example, assume that the taxable entity's development of its products satisfies the Four-Part Test described by subsection (c) of this section and is not otherwise excluded under this subsection. A taxable entity is a manufacturer of rigid plastic containers. The taxable entity contracts with major food and beverage manufacturers to provide suitable bottle and packaging designs. The products designed by the taxable entity may be for repeat customers and the sizes and types of bottle may be similar to previous products. The development of each new product, and the production process necessary to produce the products at sufficient production volume, starts from new concept drawings developed by engineers. The taxable entity uses a qualifying process of experimentation to evaluate alternative concepts for the product and production processes. The taxable entity's activities related to both the product and the production process are not excluded from the definition of qualified research as an adaptation of an existing business component.(3) Duplication of existing business component. Any research related to the reproduction of an existing business component, in whole or in part, from a physical examination of the business component itself or from plans, blueprints, detailed specifications, or publicly available information with respect to such business component. This exclusion does not apply merely because the taxable entity examines an existing business component in the course of developing its own business component.(4) Surveys, studies, etc. Any efficiency survey; activity relating to management function or technique; market research, testing or development (including advertising or promotions); routine data collection; or routine or ordinary testing or inspection for quality control.(5) Computer software. Any research activities with respect to internal use software.(A) For the purposes of this paragraph, internal use software is computer software developed by, or for the benefit of, the taxable entity primarily for internal use by the taxable entity.(B) This exclusion does not apply to software used in:(i) an activity that constitutes qualified research, or(ii) a production process that meets the requirements of the Four-Part Test.(6) Social sciences, etc. Any research in the social sciences, arts, or humanities.(7) Funded research. Any research funded by any grant, contract, or otherwise by another person or governmental entity.(A) Research is considered funded if:(i) the taxable entity performing the research for another person retains no substantial rights to the results of the research; or(ii) the payments to the researcher are not contingent upon the success of the research.(B) For the purposes of determining whether a taxable entity retains substantial rights to the results of the research:(i) Incidental benefits to the researcher from the performance of the research do not constitute substantial rights. For example, increased experience in a field of research is not considered substantial rights.(ii) A taxable entity does not retain substantial rights in the research it performs if the taxable entity must pay for the right to use the results of the research.(C) If a taxable entity performing research does not retain substantial rights to the results of the research, the research is considered funded regardless of whether the payments to the researcher are contingent upon the success of the research. In this case, all research activities are considered funded even if the researcher has expenses that exceed the amount received by the researcher for the research.(D) If a taxable entity performing research does retain substantial rights to the results of the research and the research is considered funded under subparagraph (A)(ii) of this paragraph, the research is only funded to the extent of the payments and fair market value of any property that the taxable entity becomes entitled to by performing the research. If the expenses related to the research exceed the amount the researcher is entitled to receive, the research is not considered funded with respect to the excess expenses. For example, a taxable entity performs research for another person. Based on the contract, the research activities are considered funded under subparagraph (A)(ii) of this paragraph because payments to the researcher are not contingent on the success of the research. The taxable entity retains substantial rights to the results of the research. The taxable entity is entitled to $100,000 under the contract but spent $120,000 on the research activities. In this case, the research is considered funded with respect to $100,000 and is not considered funded with respect to $20,000.(E) A taxable entity performing research for another person must identify any other person paying for the research activities and any person with substantial rights to the results of the research.(F) All agreements, not only research contracts, entered into between the taxable entity performing the research and the party funding the research shall be considered in determining the extent to which the research is funded.(G) The provisions of this paragraph shall be applied separately to each research project undertaken by the taxable entity.(e) Eligibility for credit.(1) A taxable entity is eligible to claim a credit for the periods in which the taxable entity is engaged in qualified research and incurs qualified research expenses. The credit may be claimed on a franchise tax report for qualified research expenses incurred during the period on which the report is based.(2) A taxable entity has the burden of establishing its entitlement to, and the value of, the credit by clear and convincing evidence, including proof that the research activities meet the definition of qualified research, the amount of any qualified research expenses, and applying the shrink-back rule described in subsection (c)(3) of this section.(A) All qualified research expenses must be paid or incurred in connection with research activities that are qualified research.(B) All qualified research expenses must be supported by contemporaneous business records.(i) Contemporaneous business records for wages are records that were created and maintained during the period in which the taxable entity paid the employee to engage in qualified services. This includes, but is not limited to, payroll records, employee job descriptions, performance evaluations, calendars, and appointment books.(ii) Contemporaneous business records for supplies are records that were created and maintained during the period in which the supplies were purchased. This includes, but is not limited to, inventory records, invoices, purchase orders, and contracts.(iii) Contemporaneous business records for contract research expenses are records that were created and maintained during the period in which the contract research expenses were paid or incurred. This includes, but is not limited to, contracts and invoices.(3) An Internal Revenue Service audit determination of eligibility for the federal research and development credit under IRC, §41 (Credit for increasing research activities), whether that determination is that the taxable entity qualifies or does not qualify for the federal research and development credit, is not binding on the comptroller's determination of eligibility for the credit.(f) Ineligibility for credit.(1) A taxable entity is not eligible to claim a credit on a franchise tax report for qualified research expenses incurred during the period on which the report is based if the taxable entity, or a member of the combined group, if the taxable entity is a combined group, received an exemption from sales and use tax under Tax Code, §151.3182 (Certain Property Used in Research and Development Activities; Reporting of Estimates and Evaluation) during that period.(2) A taxable entity that is not eligible to claim a credit under this subsection may carry forward an unused credit under subsection (l) of this section.(g) Amount of credit.(1) Qualified research expenses in Texas. Subject to subsection (h) of this section, and except as provided by paragraphs (2), (3), and (4) of this subsection, the credit allowed for any report equals 5.0% of the difference between:(A) all qualified research expenses incurred during the period on which the report is based; and(B) 50% of the average amount of all qualified research expenses incurred during the three tax periods preceding the period on which the report is based.(2) Entities without qualified research expenses in each of the three preceding tax periods. Except as provided by paragraph (4) of this subsection, if the taxable entity has no qualified research expenses in one or more of the three tax periods preceding the period on which the report is based, the credit for the period on which the report is based equals 2.5% of the qualified research expenses incurred during that period.(3) Qualified research expenses under a higher education contract. Subject to subsection (h) of this section, and except as provided by paragraph (4) of this subsection, if the taxable entity contracts with one or more public or private institutions of higher education for the performance of qualified research and the taxable entity incurs qualified research expenses in Texas under the contract during the period on which the report is based, then the credit for the report equals 6.25% of the difference between:(A) all qualified research expenses incurred during the period on which the report is based; and(B) 50% of the average amount of all qualified research expenses incurred during the three tax periods preceding the period on which the report is based.(4) Entities with qualified research expenses under higher education contracts but without qualified research expenses in each of the three preceding tax periods. If the taxable entity incurs qualified research expenses in Texas under a contract with one or more public or private institutions of higher education for the performance of qualified research during the period on which the report is based, but the taxable entity has no qualified research expenses in one or more of the three tax periods preceding the period on which the report is based, then the credit for the period on which the report is based equals 3.125% of all qualified research expenses incurred during that period.(5) Same method of computing qualified research expenses required. Notwithstanding whether the statute of limitations for claiming a credit under this section has expired for any tax period used in determining the average amount of qualified research expenses under paragraph (1)(B) or (3)(B) of this subsection, the determination of which research expenses are qualified research expenses for purposes of computing that average must be made in the same manner as that determination is made for purposes of paragraph (1)(A) or (3)(A) of this subsection. The comptroller may verify the qualified research expenses used to compute the prior year average, even if the statute of limitations for the prior year has expired. This verification will not result in an adjustment to tax, penalty, or interest for any report year for which the statute of limitations is closed.(6) A taxable entity with any qualified research expenses under higher education contracts in a tax period may include all of its qualified research expenses in the calculations under paragraphs (3) and (4) of this subsection, even if not all of the qualified research expenses are related to higher education contracts. For taxable entities in a combined group, see subsection (i) of this section.(h) Attribution of expenses following transfer of controlling interest.(1) If a taxable entity acquires a controlling interest in another taxable entity, or in a separate unit of another taxable entity, during a tax period with respect to which the acquiring taxable entity claims a credit under this section, then the amount of the acquiring taxable entity's qualified research expenses equals the sum of:(A) the amount of qualified research expenses incurred by the acquiring taxable entity during the period on which the report is based; and(B) subject to paragraph (4) of this subsection, the amount of qualified research expenses incurred by the acquired taxable entity or unit during the portion of the period on which the report is based that precedes the date of the acquisition.(2) A taxable entity that sells or otherwise transfers to another taxable entity a controlling interest in another taxable entity, or in a separate unit of a taxable entity, during a period on which a report is based may not claim a credit under this section for qualified research expenses incurred by the transferred taxable entity or unit during the period if:(A) the taxable entity that makes the sale or transfer is ineligible for the credit under subsection (f) of this section; or(B) the acquiring taxable entity claims a credit under this section for the corresponding period.(3) If during any of the three tax periods following the period in which a sale or other transfer described by paragraph (2) of this subsection occurs, the taxable entity that sold or otherwise transferred the controlling interest reimburses the acquiring taxable entity for research activities conducted on behalf of the taxable entity that made the sale or other transfer, the amount of the reimbursement is:(A) included as qualified research expenses incurred by the taxable entity that made the sale or other transfer for the tax period during which the reimbursement was paid, subject to paragraph (5) of this subsection; and(B) excluded from the qualified research expenses incurred by the acquiring taxable entity for the tax period during which the reimbursement was paid.(4) An acquiring taxable entity may not include on a report the amount of qualified research expenses otherwise authorized by paragraph (1)(B) of this subsection if the taxable entity that made the sale or other transfer described by paragraph (2) of this subsection received an exemption under Tax Code, §151.3182 during the portion of the period on which the acquiring taxable entity's report is based that precedes the date of the acquisition.(5) A taxable entity that makes a sale or other transfer described by paragraph (2) of this subsection may not include on a report the amount of reimbursement otherwise authorized by paragraph (3)(A) of this subsection if the reimbursement is for research activities that occurred during a tax period in which the entity that makes a sale or other transfer received an exemption under Tax Code, §151.3182.(i) Combined reporting.(1) The combined group is the taxable entity for purposes of calculating and reporting this credit.(2) A credit under this section for qualified research expenses incurred by a member of a combined group must be claimed on the combined report for the group required by Tax Code, §171.1014. The total qualified research expenses of each member of the combined group shall be added together to determine the total credit claimed on the combined report.(3) When the membership of a combined group changes, the credit carryforward under subsection (l) of this section will be determined as follows:(A) For the purposes of this paragraph, the carryforward attributable to a member of a combined group for each prior report year is determined by multiplying the total credit carryforward available for that report year by a fraction, the numerator of which is the qualified research expenses paid or incurred by the member during that report year, and the denominator of which is the total qualified research expenses paid or incurred by the combined group during that report year.(B) If a combined group loses a member, the credit carryforward will be attributed to each member of the combined group that was included on the report for the report year to which the carryforward relates. Each member of the combined group that has a carryforward attributed to it under this subparagraph, including the member that leaves the combined group, may continue to use that carryforward on its future franchise tax reports.(C) If a taxable entity that was not part of a combined group when it created a credit carryforward later joins a combined group, any credit carryforward it had previously established may be claimed on the combined group's future franchise tax reports.(D) If a taxable entity, including a member of a combined group, is a non-surviving entity in a merger transaction, any credit carryforward established by the non-surviving entity may be claimed on the surviving entity's future franchise tax reports.(E) If a taxable entity, including a member of a combined group, is terminated, dissolved, or otherwise loses its status as a legal entity, the credit carryforward attributable to that taxable entity may not be claimed on any future franchise tax report. This subparagraph does not apply if subparagraph (D) of this paragraph or subsection (m) of this section applies.(F) If all of the assets of a member of a combined group are conveyed, assigned or transferred in a manner that qualifies under subsection (m) of this section, the carryforward attributable to that member may be conveyed, assigned, or transferred as part of that transaction.(G) A combined group may only use a credit carryforward attributable to a member under subparagraphs (B), (C), or (D) of this paragraph if that member is part of the combined group on the last day of the accounting period on which that report is based.(4) A combined group with any qualified research expenses under higher education contracts in a tax period may include all of its qualified research expenses in the calculations under subsection (g)(3) and (4) of this section, even if not all of the members of the combined group have qualified research expenses that are related to higher education contracts.(j) Tiered partnership reporting.(1) An upper tier entity and a lower tier entity may claim a credit under this section for qualified research expenses; however, an upper tier entity and a lower tier entity cannot claim a credit under this section for the same qualified research expense.(2) An upper tier entity that includes the total revenue of a lower tier entity for purposes of computing its taxable margin as authorized by Tax Code, §171.1015 (Reporting for Certain Partnerships in Tiered Partnership Arrangement) may claim the credit under this section for qualified research expenses incurred by the lower tier entity to the extent of the upper tier entity's ownership interest in the lower tier entity.(k) Limitation. The total credit claimed under this section for a report, including the amount of any carryforward credit under subsection (l) of this section, may not exceed 50% of the amount of franchise tax due for the report before any other applicable tax credits.(l) Carryforward.(1) If a taxable entity is eligible for a credit that exceeds the limitation under subsection (k) of this section, the taxable entity may carry the unused credit forward for not more than 20 consecutive reports.(2) Research and development credits, including credit carryforwards, are considered to be used in the following order:(A) a credit carryforward of unused research and development credits accrued under Tax Code, Chapter 171, Subchapter O (Tax Credit for Certain Research and Development Activities), before its repeal on January 1, 2008, and claimed as authorized by §3.593 of this title (relating to Margin: Franchise Tax Credits);(B) a credit carryforward under this section; and(C) a current year credit.(3) If a taxable entity claims a carryforward on a report within the statute of limitations, the comptroller may verify that the credit that established the carryforward was based on qualified research activities, even if the statute of limitations for the year in which the credit was created has expired. This verification will not result in an adjustment to tax, penalty, or interest for any report year for which the statute of limitations has expired. The verification may result in an adjustment to the carryforward for all periods within the unexpired statute of limitations and for all future periods in which the taxable entity may claim the carryforward.(4) For application of the carryforward to combined groups, see subsection (i)(3) of this section.(m) Assignment prohibited. A taxable entity may not convey, assign, or transfer the credit allowed under this section to another entity unless all of the assets of the taxable entity are conveyed, assigned, or transferred in the same transaction. The conveyance, assignment, or transfer of an ownership interest in the taxable entity is not a conveyance, assignment, or transfer of the credit by the taxable entity.(n) Application for credit.(1) A taxable entity applies for the credit by claiming the credit on or with the franchise tax report for the period for which the credit is claimed. A taxable entity must also complete Form 05-178, Texas Franchise Tax Research and Development Activities Credits Schedule, its electronic equivalent, or any form promulgated by the comptroller that succeeds such form.(2) The comptroller may require a taxable entity that claims a credit under this section to provide all data and information required for the comptroller to evaluate the credit and to comply with Tax Code, §151.3182(c).(o) Amending reports.(1) If a report was originally due and filed after the effective date of this section and a credit allowed under this section was not claimed, a taxable entity may file an amended report within the statute of limitation to claim a credit, if the taxable entity or a member of its combined group does not have an active Registration Number for that period. See §3.584 of this title for information about filing an amended report.(2) If a taxable entity or member of the combined group has or had a Registration Number for a period for which it intends to claim a credit allowed under this section, the taxable entity or member of the combined group must submit a written request to cancel the registration before claiming a credit. The written request must contain the following information:(A) the tax period(s) covered by the report for which it intends to claim a credit allowed under this section; and(B) a statement whether any tax-exempt purchases were made. If tax-exempt purchases were made, include an original or amended sales and use tax report with tax due, penalty, and interest for the sales tax periods that cover the tax-exempt purchases.(3) If a report was filed claiming a credit allowed under this section and the taxable entity later decides to claim a sales and use tax exemption under Tax Code, §151.3182, the taxable entity must:(A) file an amended franchise tax report that does not claim the credit under this section and pay any tax, penalty, and interest due;(B) apply for a Registration Number; and(C) file a request for a sales and use tax refund for taxes paid on purchases under Tax Code, §151.3182.",
            "sourceNote": "Source Note: The provisions of this §3.599 adopted to be effective April 5, 2015, 40 TexReg 1858; amended to be effective October 24, 2021, 46 TexReg 7060; amended to be effective August 4, 2022, 47 TexReg 4557."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=119698&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "119698",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "W",
                "label": "AMUSEMENT MACHINE REGULATION AND TAX"
            },
            "rule": {
                "number": "§3.601",
                "label": "Definitions, Changes in Ownership, Gross Receipts Regulations, and Record Keeping Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199540&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "199540",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Gross receipts--The total sum of money derived from the operation of a coin-operated machine which vends music, skill, or pleasure.(2) Issue a license--A license issued on an applicant's original application or a license issued on an application for renewal.(3) License--A general business license, import license, or repair license issued by the comptroller.(4) Machine or amusement machine--All machines that vend or dispense music, or are operated for skill or pleasure. A machine in an independent cabinet with a separate central control mechanism shall be considered a separate machine in regard to occupation tax requirements. A machine that is no longer functional, and that has been permanently taken out of service, will not be considered to be a coin-operated machine operated for music, skill, or pleasure. In this context permanently taken out of service means that it is no longer financially practical to operate the machine and the machine will be used only for parts.(5) Machines designed exclusively for children--Machines that can only be used for skill or pleasure by a child under 12 years of age.(6) Owner of a registration certificate--An owner who possesses a valid registration certificate issued by the comptroller.(7) Permit--The decal issued by the comptroller to an owner of a coin-operated machine evidencing the payment of the occupation tax.(8) Person--Any natural person, association of natural persons, trustee, receiver, partnership, corporation, organization, or the manager, agent, or employee of any of them.(9) Video game--An electronic mechanism played for skill or pleasure by means of images on a screen. Each cabinet that holds a game of skill or pleasure by means of images on a screen constitutes an independent operation subject to the occupation tax.(b) Changes in ownership. Changes in ownership are reported in the following manner:(1) if any partner of a partnership; trustee of a trust; receiver of a receivership; officer or director of a corporation; shareholder owning 10% or more of the outstanding shares of a corporation; individual applicant or licensee; officer, director or member of an association or other entity changes since the last ownership information was filed with the comptroller, written notification of the ownership change must be filed with the comptroller within 10 days of the ownership change;(2) if any information on an application changes since the last application was filed or any information changes since the comptroller was notified of an information change, including the change of ownership of any permitted machine owned by the registration certificate holder or general business license holder, written notification of the change must be filed with the comptroller within 10 days of the change;(3) if the owners of a corporation change, a written notification of the change must be filed with the comptroller within 10 days of the change. The business entity may continue to operate under its existing license or registration certificate;(4) if partners in a partnership change or a business entity dissolves, the successor in interest must request a temporary extension of a license or file an application for a new license. A successor in interest is one who assumes the ownership interest of a business entity but does not include the purchaser of the assets of the entity. To request a temporary extension of a license, the successor in interest must file with the comptroller a certification by the county judge of the county in which the business is located that the person requesting the extension is successor in interest. In the case of a sole proprietor, only when there is a successor in interest as the result of the death of the licensee can there be an extension of a license. The death of this licensee must be certified by a county judge of the county in which the business is located, or by the judge of the probate court in the county in which the estate of the deceased licensee is probated. In all other instances, the entity assuming a sole proprietor's interest must obtain a license. At the time of renewal of a license that has been extended, the successor in interest must file an original license application; and(5) if a sole proprietor owner of a registration certificate dies, the successor in interest must notify the comptroller in writing. The successor in interest may then continue to use the registration certificate until its expiration at which time the successor in interest must file an original application for a registration certificate. In all other instances, the successor in interest of the owner of a registration certificate shall file an application for a new registration certificate.(c) Gross receipts regulations. The following regulations apply to gross receipts:(1) distribution of gross receipts from amusement machines. The term \"gross receipts from an amusement machine\" is defined to be the total sum of money derived from the operation of a coin-operated machine that vends music, skill, or pleasure. No licensee shall enter into a contract or offer to contract with a bailee or lessee (location operator) of an amusement machine to compensate the bailee or lessee in excess of 50% of the gross receipts from an amusement machine, except that a licensee may refund a bailee or lessee of an amusement machine all money accepted by an amusement machine due to its malfunction. Before any money may be refunded under this exception, the name, address, and telephone number of the person who deposited money in the malfunctioning machine together with the sum of money deposited by him must be supplied to the licensee;(2) collection records of distribution of gross receipts from an amusement machine. Complete and separate records showing the distribution of the gross receipts for each location that an amusement machine is operated shall be made on each and every occasion the licensee or one of his employees collects money from the cash box of an amusement machine placed in operation. These records showing the distribution of the gross receipts for each location that an amusement machine is operated shall be kept by a licensee at his designated address. These records shall be kept by the licensee for a period of two years; and(3) entry to cash boxes of amusement machines. No licensee shall allow the bailee or lessee of an amusement machine to open or gain entry in any manner to the cash box except a coin-operated machine equipped with an income meter that totals or computes the sum of money deposited in the machine in dollars and cents. All keys to the cash box of a coin-operated machine other than a machine expressly exempt by this rule shall at all times remain in the possession of the licensee or his employees.(d) Record keeping requirements. The following requirements are imposed on record keeping:(1) in addition to all other record keeping requirements, each licensee shall maintain at the designated address, for inspection at all times by the comptroller, a record of each and every amusement machine purchased, received, possessed, controlled, handled, exhibited, or operated by him in this state as long as the licensee owns the machine and for two years after the date the licensee ceases to own the machine. Under this section the following information shall be shown in the licensee's records:(A) the full name and address of the owner of each and every machine, or if other than an individual, the principal officers or members thereof and their addresses;(B) the date each machine was acquired or received in Texas;(C) the make, type, and serial number of each and every machine;(D) the date each machine was first placed in operation;(E) the date of the first and most recent registration of each machine;(F) the location or locations of each machine including county, city, and street, or directions if location is a rural route and box number;(G) every change in ownership of each machine including written notification as described in subsection (b)(2) of this section;(H) the distribution of the gross receipts for each location that a machine is located and the receipts from each machine;(I) the date each machine was taken out of operation, the reason the machine was taken out of operation, and the location of a machine taken out of operation or the description of the final disposition of a machine; and(J) all contracts made with location owners;(2) depreciation schedules and federal income tax returns must be maintained for four years to be in compliance with the sales tax statutes; and(3) purchase invoices for the machines must be maintained for four years to be in compliance with the sales tax statutes.",
            "sourceNote": "Source Note: The provisions of this §3.601 adopted to be effective December 17, 1996, 21 TexReg 11806; amended to be effective April 13, 2005, 30 TexReg 2097."
        },
        {
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            "currentRecordId": "199540",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "W",
                "label": "AMUSEMENT MACHINE REGULATION AND TAX"
            },
            "rule": {
                "number": "§3.602",
                "label": "Licenses and Certificates, Renewals and Due Dates, Occupation Tax Permits and Exemptions"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Coin-operated amusement machine--Any kind of machine or device operated by or with a coin or other United States currency, metal slug, token, electronic card, or check, that vends or dispenses music or is operated for skill or pleasure. The term does not include an amusement machine designed exclusively for children under 12 years of age.(2) General business license holder--A person who may engage in the business of manufacturing, owning, buying, selling, renting, leasing, trading, maintaining, transporting, or exhibiting in Texas, or storing a coin-operated amusement machine.(3) Import license holder--A person who may engage in the business of importing, transporting, owning, buying, repairing, selling, or delivering a coin-operated amusement machine for sale or delivery in this state.(4) Person--An individual, association, trustee, receiver, partnership, corporation, or other organization or legal entity, or a manager, agent, servant, or employee of an individual, association, trustee, receiver, partnership, corporation, or other organization or legal entity.(5) Registration certificate holder--A person who is exempt from the licensing and recordkeeping requirements in Occupations Code, Chapter 2153 (Coin-Operated Machines) but who may not exhibit a coin-operated amusement machine unless the machine is registered annually with the comptroller.(6) Repair license holder--A person who may engage in the business of maintaining, transporting, or storing a coin-operated amusement machine.(7) Tax permit--The decal issued by the comptroller to an owner of a coin-operated amusement machine evidencing the payment of the occupation tax.(b) Licenses and registration certificates.(1) Annual general business, import, and/or repair license fees, and registration certificate fees. Annual license and registration certificate fees for a general business license holder, import license holder, repair license holder, and a registration certificate holder are payable in advance and cannot be prorated. The annual fees are as follows:(A) for a general business license applicant with 50 or fewer machines, the fee is $200;(B) for a general business license applicant with 51 to 200 machines, the fee is $400;(C) for a general business license applicant with over 200 machines, the fee is $500;(D) for an import license applicant, the fee is $500;(E) for a repair license applicant, the fee is $50; and(F) for a registration certificate applicant, the fee is $150.(2) Age requirement for issuance of a license or registration certificate. No individual shall be issued a license or registration certificate by the comptroller for the operation of coin-operated amusement machines unless at the time the license or certificate is issued the applicant is 18 years of age or older.(3) Information requirement for issuance of a license or registration certificate. An applicant for a license or registration certificate must provide all information required on the comptroller's application before a license or registration certificate will be issued or renewed.(4) General business license and registration certificate notification requirement. A general business license holder must notify the comptroller in writing within 10 days of any change in ownership of a coin-operated amusement machine. A registration certificate holder must notify the comptroller in writing of any change in ownership of a coin-operated amusement machine and each time the location of a machine is changed within 10 days of the change.(5) Occasional sale exemption for registration certificate holder. A registration certificate holder may make two sales of coin-operated amusement machines during any 12-month period without being required to obtain a general business or import license, if the certificate holder does not hold out as engaging (or does not habitually engage) in the business of selling coin-operated amusement machines. Before the third sale of a coin-operated amusement machine in a 12-month period by a registration certificate holder not previously in the business of selling, leasing, or renting coin-operated amusement machines, a general business or import license must be obtained. The transfer of title or possession of more than one machine in a single transaction will constitute one sale.(c) Annual general business, import, and repair license renewals.(1) License renewal applications are due November 30. License renewal applications will not be considered complete for processing unless the tax due and the license fee are remitted. Complete license renewal applications filed after the due date may result in the renewal license being issued after December 31, the expiration date of the existing license. In such a case a person may not operate coin-operated amusement machines after the expiration date until the renewal license is issued. A person who operates coin-operated amusement machines without a license or with an expired license is guilty of a Class A misdemeanor.(2) An applicant who properly completes the license renewal application and remits all fees and taxes with it by the due date may continue to exhibit or display coin-operated amusement machines after the expiration date if the applicant's license renewal has not been issued unless the applicant is notified by the comptroller prior to the license expiration date of a problem with the license renewal.(3) The annual license fee must be submitted with a license renewal application. License fees may not be prorated.(4) Late-filed application for license renewal. If an application for renewal of an unexpired license is postmarked December 1 - December 31, the applicant must remit a late fee of $50 in addition to the annual license fee listed in subsection (b)(1) of this section.(5) Application for renewal of an expired license.(A) A license holder may renew an expired license if it has not been expired for more than 90 days by paying to the comptroller a fee that is 1-1/2 times the amount of the annual license fee listed in subsection (b)(1) of this section.(B) A license holder may renew an expired license if it has been expired for more than 90 days but less than two years by paying to the comptroller a fee that is two times the amount of the annual license fee listed in subsection (b)(1) of this section.(C) A person whose license has been expired for two years or more may not renew their license and must comply with the requirements and procedures for obtaining a new license under subsection (b) of this section. In addition to other penalties allowed by law, each person whose license has been expired for two years or more and who has been engaged in business as a general business license holder, import license holder, or repair license holder must remit to the comptroller an amount equal to two times the amount of the annual license fee listed in subsection (b)(1) of this section for each year that the person engaged in business with an expired license.(d) Annual registration certificate renewals.(1) Registration certificate renewal applications are due November 30. Registration certificate renewal applications will not be processed unless the tax due and the registration fee are remitted. Registration certificate renewal applications filed after the due date may result in the renewal registration certificate being issued after December 31, the expiration date of the existing registration certificate. In such a case, a person may not exhibit or display coin-operated amusement machines after the expiration date until the renewal certificate is issued. A person who exhibits or displays coin-operated amusement machines without a registration certificate or with an expired registration certificate is guilty of a Class A misdemeanor.(2) An applicant who properly completes the registration certificate renewal application and remits all fees and taxes with it by the due date may continue to exhibit or display coin-operated amusement machines after the expiration date even if the registration certificate renewal has not been issued, unless the applicant is notified by the comptroller prior to the registration certificate expiration date of a problem with the registration certificate renewal.(3) Registration certificate fees may not be prorated and the registration fee must be submitted with the registration certificate renewal application.(4) Late-filed application for registration certificate renewal. If an application for renewal of an unexpired registration certificate is postmarked December 1 - December 31, the applicant must remit a late fee of $50 in addition to the annual registration certificate fee listed in subsection (b)(1) of this section.(5) Application for renewal of an expired registration certificate.(A) A registration certificate holder may renew an expired registration if it has not been expired for more than 90 days by paying to the comptroller a fee that is 1-1/2 times the amount of the annual registration fee listed in subsection (b)(1)(F) of this section.(B) A registration certificate holder may renew an expired registration if it has been expired for more than 90 days but less than two years by paying to the comptroller a fee that is two times the amount of the annual registration fee listed in subsection (b)(1)(F) of this section.(C) A person whose registration has been expired for two years or more may not renew their registration and must comply with the requirements and procedures for obtaining a new registration certificate under subsection (b) of this section. In addition to other penalties allowed by law, each person whose registration has been expired for two years or more and who has been engaged in business as a registration certificate holder must remit to the comptroller an amount equal to two times the amount of the annual registration fee listed in subsection (b)(1) of this section for each year that the person engaged in business with an expired registration.(e) Occupation tax permits.(1) Occupation tax. Each coin-operated amusement machine that an owner exhibits, displays, or permits to be exhibited or displayed in this state is subject to an annual occupation tax. With the exception of annual renewals, the occupation tax is due at the time the owner exhibits or displays the machine, or permits the machine to be exhibited or displayed, in this state. The occupation tax for annual renewals for each machine exhibited or displayed or permitted to be exhibited or displayed in this state is due November 30 of each year. The purchase of a tax permit is payment of the occupation tax.(2) Tax rate. The tax rate is $60 per year. When a coin-operated amusement machine is first exhibited or displayed or permitted to be exhibited or displayed in this state, the occupation tax for the calendar year is prorated as follows:(A) for a tax permit issued January 1 to March 31, the amount of tax is $60;(B) for a tax permit issued April 1 to June 30, the amount of tax is $45;(C) for a tax permit issued July 1 to September 30, the amount of tax is $30; and(D) for a tax permit issued October 1 to December 31, the amount of tax is $15.(3) Replacement of lost, stolen, or destroyed valid occupation tax permits. The comptroller shall provide a duplicate tax permit if a valid tax permit has been lost, stolen, or destroyed. The fee for each duplicate tax permit is $5.00. If a valid tax permit is lost, stolen, or destroyed, a written statement must be submitted explaining the circumstances by which the tax permit was lost, stolen, or destroyed, and must include the number of the lost, stolen, or destroyed tax permit before a replacement tax permit can be issued. A tax permit for which a duplicate permit has been issued is void.(4) Assignment of tax permits. Each coin-operated amusement machine exhibited or displayed in Texas for music, skill, or pleasure shall be registered with the comptroller by make, model, and serial number. A tax permit issued by the comptroller shall be affixed to each registered machine. Each coin-operated amusement machine shall have a serial number, and the name and telephone number of the owner of each machine must be clearly visible on the outside surface of the machine. If a coin-operated machine is not manufactured with a serial number, a license holder or registration certificate holder shall assign a serial number to the machine and either stamp or engrave the assigned number on the machine cabinet. If all these requirements have been met, a tax permit may be assigned to a purchaser by submitting written notice, as described in subsection (b)(4) of this section, to the comptroller within 10 days of the transfer of title or possession of a coin-operated amusement machine.(5) Attachment of tax permits. Tax permits shall be conspicuously affixed to any permanent surface of the coin-operated amusement machine to make the tax permit visible for inspection without movement of the machine. Tax permits shall be securely and completely affixed to the coin-operated amusement machine so they cannot be removed without continued application of steam and water. Tax permits shall be completely affixed to a permanent surface of the coin-operated amusement machine by use of the adhesive exposed on the back of the tax permit following complete removal of the protective backing. It is unlawful to enclose any tax permit in a plastic cover, or on a removable cover made of plastic, metal, or any other material, or to in any way affix the tax permit in a less than permanent manner so the tax permit can be removed or moved from one machine to another without the destruction of the tax permit resulting as a consequence of such removal. Tax permits shall not be affixed by the use of tape. Tax permits are not transferrable from one person to another or from one machine to another, and cannot be affixed to a machine that has not been registered with the comptroller.(6) Invalid tax permits.(A) Any tax permit not properly displayed as described in paragraph (5) of this subsection is invalid. Any tax permit not affixed to a permanent surface of a coin-operated amusement machine as described in paragraph (5) of this subsection by use of the adhesive backing on the permit is invalid. Any tax permit removed from a coin-operated amusement machine is invalid.(B) The comptroller will not issue a duplicate tax permit to replace a tax permit that is invalid. A new tax permit must be purchased to replace an invalid tax permit.(C) The comptroller may assess a penalty of not less than $50 or more than $2,000 against an owner who permits a coin-operated amusement machine under the owner's control to be operated, exhibited, or displayed in this state without a valid tax permit or against a person who exhibits or displays a coin-operated amusement machine in this state without a valid tax permit. The comptroller may assess a penalty for each day a violation occurs.(7) Issuance of extra tax permits. The comptroller will issue tax permits only for coin-operated amusement machines that are exhibited or displayed on location. The owner shall not stockpile permits or attach tax permits to unregistered machines.(f) Exemptions.(1) Establishing an exemption. In order to establish that an organization is exempt from the license requirements pursuant to Occupations Code, §2153.005 (Exempt Corporations and Associations), the organization must do the following:(A) submit a written statement to the comptroller explaining in detail the nature of the activities conducted or to be conducted, a copy of the articles of incorporation if the organization is a corporation, a copy of the bylaws, a copy of any applicable trust agreement or a copy of its constitution, and a copy of any letter granting exemption from the Internal Revenue Service; and(B) furnish any additional information requested by the comptroller including, but not limited to, documentation showing all services performed by the organization and all income, assets, and liabilities of the organization.(2) Written notice. After a review of the material, the comptroller will inform the organization in writing if it qualifies for an exemption.(3) Private ownership exemption. An individual who owns a coin-operated amusement machine for personal use in the individual's private residence is not required to obtain a license or pay a tax under this section.",
            "sourceNote": "Source Note: The provisions of this §3.602 adopted to be effective December 17, 1996, 21 TexReg 11808; amended to be effective April 13, 2005, 30 TexReg 2097; amended to be effective June 4, 2020, 45 TexReg 3635."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199541&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "199541",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "W",
                "label": "AMUSEMENT MACHINE REGULATION AND TAX"
            },
            "rule": {
                "number": "§3.603",
                "label": "Denials; Suspensions; Revocations; Violations; Hearings"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19800&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19800",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) License holder, when used in this section, means a general business license holder, import license holder, or a repair license holder as these terms are defined in §3.602 of this title (relating to Licenses and Certificates, Renewals and Due Dates, Occupation Tax Permits and Exemptions).(b) If the comptroller determines an applicant is not eligible for a new or renewal license under Occupations Code, Chapter 2153 (Coin-Operated Machines), or if the comptroller proposes to impose sanctions or suspend or revoke a license or registration certificate, the comptroller will notify the applicant, license holder, or registration certificate holder in writing of the proposed action and will state the alleged violation or violations which constitutes grounds for a denial, suspension, or revocation of the license or certificate, or other sanctions. The notice will include the proposed final action of the comptroller. The applicant, license holder, or registration certificate holder may make a written request for a hearing within 20 calendar days of the date of service of the notice.(c) The comptroller may serve the notice in person or may send the notice by United States certified mail addressed to the applicant, license holder, or registration certificate holder at its last known address; or, in the event that notice cannot be delivered by either of these methods after due diligence, notice will be effective by publishing notice of the proposed action in a newspaper of general circulation in the area in which the license holder, applicant, or registration certificate holder conducts its business activities.(d) The hearing will be conducted in accordance with the relevant portions of §§1.1 - 1.35 of this title (relating to Rules of Practice and Procedure). The applicant, license holder, or registration certificate holder has the burden of proof by a preponderance of the evidence.(e) If the applicant, license holder, or registration certificate holder does not request a hearing within 20 calendar days after the date of service of the notice of the comptroller's proposed action, the hearing is waived and the comptroller's proposed action shall be considered the final order or ruling of the comptroller.(f) After a hearing, any order of the comptroller refusing an application or revoking or suspending a license or registration certificate or imposing other sanctions shall state the reasons therefor, and a copy of the order shall be served immediately on the applicant, license holder, or registration certificate holder in accordance with the procedure in subsection (c) of this section.",
            "sourceNote": "Source Note: The provisions of this §3.603 adopted to be effective January 25, 1988, 13 TexReg 246; amended to be effective December 7, 1988, 13 TexReg 5920; amended to be effective October 3, 1989, 14 TexReg 4861; amended to be effective June 4, 2020, 45 TexReg 3639."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19800&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19800",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "W",
                "label": "AMUSEMENT MACHINE REGULATION AND TAX"
            },
            "rule": {
                "number": "§3.605",
                "label": "Persons Who Repair, Maintain, or Service Amusement Machines"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19806&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19806",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Any person who repairs, maintains, or services any amusement machine for money or anything of value is required to possess a valid license issued by the comptroller, unless such person is engaged as an employee of an employer who possesses a valid license issued by the comptroller and he repairs, maintains, or services only those amusement machines of his employer.",
            "sourceNote": "Source Note: The provisions of this §3.605 adopted to be effective January 25, 1988, 13 TexReg 246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19806&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19806",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "W",
                "label": "AMUSEMENT MACHINE REGULATION AND TAX"
            },
            "rule": {
                "number": "§3.611",
                "label": "Refund on Licenses, Registration Certificates, or Occupation Tax Permits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=140741&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "140741",
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            "ruleBody": "(a) No refund is allowed for the annual occupation tax for a machine registered with the comptroller except as follows:(1) the taxpayer makes a written request to the comptroller for a refund prior to the beginning of the calendar year for which the tax permit was purchased and returns the tax permit;(2) the taxpayer makes a written request for a refund prior to the issuance of the tax permit;(3) the taxpayer makes a written request for a refund claiming the tax permit was mistakenly purchased for a machine not subject to the tax and returns the tax permit; or(4) the taxpayer provides the comptroller with a sworn affidavit that a machine was sold, stolen, or destroyed prior to the beginning of the calendar year for which the tax permit was purchased, and returns the tax permit unless it was attached to the stolen or destroyed machine.(b) No refund is allowed for a license or registration certificate except as follows:(1) the taxpayer makes a written request to the comptroller for a refund prior to the beginning of the calendar year for which it was purchased;(2) the taxpayer makes a written request prior to the issuance of the license or registration certificate;(3) the taxpayer makes a written request for a refund claiming the license or registration certificate was mistakenly purchased due to reliance on incorrect information from the comptroller;(4) the processing of the license or registration certificate is discontinued; or(5) the issuance of the license is denied.(c) Before a refund will be allowed if the renewal of a license is denied the comptroller must verify that the applicant has no sealed machines and does not possess any machines except those that may be exempt from the tax.(d) No refund will be allowed if the taxpayer has an existing liability for other taxes.(e) For all original 1989 registration certificates for which the applications are made in the months of September, October, November, and December of 1989, an automatic refund of $25 will be made from the application fee to the taxpayer, to reflect the decrease in the fee for that four-month period.",
            "sourceNote": "Source Note: The provisions of this §3.611 adopted to be effective December 7, 1988, 13 TexReg 5921; amended to be effective October 3, 1989, 14 TexReg 4862."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=140741&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "140741",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "X",
                "label": "PARI-MUTUEL WAGERING RACING REVENUE"
            },
            "rule": {
                "number": "§3.641",
                "label": "Pari-mutuel Wagering"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126276&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "126276",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Association--A person licensed by the commission to conduct a horse race meeting or a greyhound race meeting with pari-mutuel wagering or the authorized agent of such an association.(A) Receiving association--An association in this state that has been allocated live and simulcast race dates, or a facility not located in this state that is authorized to conduct wagering under the law of the jurisdiction in which it is located.(B) Sending association--An association in this state or out-of-state from which a race is transmitted.(2) Cancelled ticket--A pari-mutuel wagering ticket that has been withdrawn from the pari-mutuel pool and is no longer valid.(3) Commission--The Texas Racing Commission or an authorized agent of the Texas Racing Commission.(4) Common pool--A pool in which the wagers received at a receiving location are combined with the wagers received at a sending racetrack.(5) Communications facilities--Facilities which include all wire, radio, optical, satellite, or other electromagnetic systems and the modems, phone systems, and other equipment used to transmit voice, data, and images.(6) Comptroller--The Comptroller of Public Accounts or an authorized agent of the Comptroller of Public Accounts.(7) Cross-species simulcast pool--The total amount of money wagered by patrons on the result of a simulcast of a horse race at a greyhound racetrack or a simulcast of a greyhound race at a horse racetrack.(8) Handle--The total amount of money wagered at a racetrack during a particular period.(9) Live pari-mutuel pool--The total amount of money wagered by patrons on the result of a particular live race or combination of live races within the enclosure of the racetrack association where the race is run.(10) Multiple leg pari-mutuel pool--A wagering pool that involves more than one race.(11) Pari-mutuel pool--The total amount of money wagered by patrons on the result of a particular race or combination of races, the total being divided into separate mutuel pools for win, place, show, or combinations.(12) Performance--The schedule of horse or greyhound races run consecutively as one program.(13) Racetrack--A facility at which horse or greyhound racing is conducted.(14) Refunded ticket--A pari-mutuel ticket that has been refunded for the value of the wager that is no longer valid.(15) Same species simulcast pool--The total amount of money wagered by patrons on the result of a simulcast of a horse race at a horse racetrack or a simulcast of a greyhound race at a greyhound racetrack.(16) Simulcast--The telecast or other transmission of live audio and visual signals of a race, transmitted from a sending racetrack to a receiving location, for the purpose of wagering conducted on the race at the receiving location.(17) Simulcast pari-mutuel pool--The total amount of money wagered by patrons at a licensed racetrack association in Texas on the result of a particular simulcast race or combination of simulcast races.(18) State's share--The state's portion due on wagers.(19) Totalisator company--A company selling, leasing, servicing, maintaining, or operating automated electronic computer hardware and software to calculate, record, display, and store pari-mutuel wagering information.(20) Totalisator system--A computer system that registers and computes the wagering and payoffs for pari-mutuel wagering.(b) Collection and remittance of the state's share from live and simulcast pari-mutuel pools; reports to the comptroller.(1) Unless otherwise stated, each association shall report and remit the state's share from the following pari-mutuel pools wagered at the association's facility:(A) live pari-mutuel pools;(B) same species simulcast pools; and(C) cross-species simulcast pools.(2) In the event a Texas association creates a multi-leg pari-mutuel pool which includes one or more live races at the Texas association with one or more simulcast races from another association, the state's share for this entire pool shall be calculated under the provisions of a simulcast pool.(3) After each racing day, a representative of the association shall remit to the comptroller by the end of the next banking day the state's total share from the live and simulcast pari-mutuel pools for all races on which wagers were placed.(4) Upon remitting the state's share of the pari-mutuel pools to the comptroller, the association shall report by telephone to a data collection center designated by the comptroller the information shown on a pari-mutuel wagering deposit report form promulgated by the comptroller. The association shall also transmit a copy of the completed form to the comptroller by telephone line and by electronic transmission or by high-resolution facsimile equipment.(5) After each performance, information shall be reported to the comptroller.(A) Live pari-mutuel pools. For each performance, the association shall complete the Texas Pari-Mutuel Performance Summary Report. This report shall be filed for each racing date authorized by the commission, even if no races are held.(B) Same species simulcast pools. For each performance, if the association is receiving same species races, the pari-mutuel pools derived from these races shall be reported on the Texas Pari-Mutuel Performance Summary Report and the Texas Pari-Mutuel Performance Supplemental Report for Same Species Simulcast.(C) Cross-species simulcast pools. For each performance, if the association is receiving cross-species races, the pari-mutuel pools derived from these races shall be reported on the Texas Pari-Mutuel Performance Summary Report and the Texas Pari-Mutuel Performance Supplemental Report for Cross-Species Simulcast.(6) The association shall transmit a copy of the completed reports to the comptroller by electronic transmission or by facsimile equipment no later than the end of the next banking day following the performance. If problems exist in electronic or in telephone transmission or there is other breakdown in the facsimile equipment or electronic transmission, and copies of the reports cannot be transmitted, then associations shall notify the comptroller by telephone of such problems and discuss alternative reporting procedures.(7) Originals of the reports that are transmitted to the comptroller by electronic transmission or by facsimile equipment shall be preserved in chronological order with other association records. These reports shall be available and furnished to the comptroller upon request.(c) Associations with pari-mutuel wagering to post bond or other security.(1) Associations shall be responsible for the state's share of the pari-mutuel pool from the time a ticket is sold and the money is collected until the money is remitted to the state.(2) All associations shall be bonded or otherwise secured in an amount estimated by the comptroller to be four times the average daily state's share of the pari-mutuel pool. The bond will cover the state's share of the pari-mutuel pool.(3) The bond or other security shall be approved by and filed with the comptroller.(A) The comptroller may require that new or additional bond or security be posted if:(i) the comptroller determines that the amount of bond or other security deposited is inadequate; or(ii) the comptroller determines that an association is delinquent in payment of an amount due; or(iii) a surety gives the comptroller written notice of its intent to withdraw as surety.(B) If the amount of security posted is determined to be in excess of requirements, the comptroller shall allow as much of the bond or security as is determined to be in excess of requirements to be cancelled or withdrawn.(C) If the comptroller determines either that the security posted is inadequate or that it is in excess of requirements, the association shall receive written notice.(D) If new or additional bond or other security is required, the association shall furnish it within the time specified by the notice.(4) The comptroller shall accept as security: cash, cashiers checks, surety bonds, irrevocable bank letters of credit, United States Treasury bonds that are readily convertible to cash, and irrevocable assignments (on forms approved by the comptroller) of federally insured accounts in banks, savings and loan institutions, and credit unions. The comptroller will not accept corporate stocks and bonds or personal guarantees as security.(5) All surety bonds posted must be executed and issued by a surety company authorized to do business in the State of Texas on a form approved by the comptroller. The surety bond must be signed by an attorney-in-fact appointed by the surety, and a notarized copy of the appointment shall be attached.(6) A bond or other security must be in effect at all times while an association is conducting pari-mutuel wagering. The comptroller shall release the bond or other security upon determination that:(A) there is no payment, penalty, or interest due and payable to the State of Texas;(B) the association has ceased to conduct pari-mutuel wagering; and(C) its license has been revoked or relinquished and will not be renewed.(d) Association responsibilities and totalisator system requirements.(1) Each association shall conduct pari-mutuel wagering in accordance with the Texas Racing Act, the Texas Racing Commission Rules and the Comptroller of Public Accounts Rule.(2) Each association licensed for pari-mutuel wagering shall use totalisator equipment and software that satisfies the recordkeeping and reporting requirements of the comptroller and commission.(3) A totalisator company is subject to inspection and regulation by the comptroller to insure the integrity of the information obtained by use of its software and equipment. The comptroller may test or have tested the totalisator equipment or software and communications facilities.(4) The totalisator system must restrict access to cash/sell terminals through assigned user passwords to facilitate cashier accountability.(5) Cancelled tickets or refunded tickets must be preserved and furnished to the comptroller upon request.(6) The totalisator system must be able to produce reports identifying all reader and keyboard cancelled or refunded tickets, upon request of the comptroller. The reports must contain the number of the ticket issuing machine where it was cancelled or refunded, the ticket identification number, performance date, performance number, and the ticket amount that was cancelled or refunded. If these tickets are not provided, the association will be responsible for reimbursing the state for any money the state would have received had the ticket not been cashed.(e) Audit; appeal of audit findings.(1) The comptroller may act at the comptroller's sole discretion to verify information reported by the association using any commonly accepted auditing method, including, but not limited to, any auditing method used by the comptroller to verify information and reports filed pursuant to the Tax Code.(2) All computer tapes, computer programs, and books and records used to record, display, calculate or report the state's share shall be maintained by the association or the totalisator company.(3) The computer tapes, computer programs, books, and records used to record, display, calculate, or report the state's share shall be retained at least four years unless the comptroller gives written authority for earlier disposal. Any record relating to a comptroller audit that is still open or which has been challenged by the association shall be kept until the audit is final and all disputed issues are finally resolved.(4) An association may dispute any audit findings of the comptroller through the same procedures available to dispute audit findings under Tax Code, Title 2.(f) Sanctions.(1) The comptroller will certify to the commission as soon as practicable the violation by the association or its agents of a rule promulgated by the comptroller; the failure or refusal of an association to pay all or any part of funds due the state or to file reports when due; the failure or refusal of an association to allow inspection of reports and records; the failure or refusal of an association to allow testing of the totalisator system or the communications facilities; the failure or refusal of an association to post bond in the amount required; or the failure or refusal of an association to keep and retain the records required by the comptroller.(2) If any payment to the state is due, the comptroller shall notify the association and its sureties by a written demand for payment. If payment is demanded and is not made by the date specified in the demand notice, the comptroller will forfeit as much of the bond or security then in effect as may be necessary to pay the proper amount due.(3) The comptroller may take collection or enforcement actions authorized by the Tax Code and the Texas Racing Act.(4) An association may pursue administrative appeals as authorized by the Texas Racing Act.",
            "sourceNote": "Source Note: The provisions of this §3.641 adopted to be effective December 4, 2003, 28 TexReg 10776; amended to be effective May 25, 2009, 34 TexReg 3263."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126276&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126276",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "3",
                "label": "TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "Z",
                "label": "COASTAL PROTECTION FEE"
            },
            "rule": {
                "number": "§3.692",
                "label": "Definitions, Reporting Requirements and Amount of Fee"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193152&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
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                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Condensate--Any liquid hydrocarbon condensed from a natural gas stream and existing at atmospheric pressure and temperature.(A) Condensate includes, but is not limited to, liquid hydrocarbons:(i) recovered by non-mechanical processes such as conventional gravity separators;(ii) recovered by a treating facility such as a gas compression or dehydration facility; or(iii) recovered at pipeline drip stations.(B) Condensate does not include liquid hydrocarbons which may be recovered only by mechanical separation processes such as refrigeration, absorption or distillation.(2) Crude oil--Any naturally occurring liquid hydrocarbons at atmospheric temperature and pressure coming from the earth, including condensate.(A) Crude oil includes, but is not limited to, crude oil:(i) as it exists at atmospheric pressure and temperature when it is produced;(ii) as it exists after initial gas separation and/or stabilization; or(iii) as it exists after treating and/or conditioning for the removal of water and/or other impurities, and is sold, shipped, or purchased as crude oil.(B) Crude oil does not include any product which has been physically separated from crude oil.(3) Marine terminal--Any waterfront or offshore facility used for transferring crude oil to or from cargo vessels, including all associated pipelines, structures, devices or equipment. Marine terminals include, but are not limited to, the following:(A) loading docks;(B) sea terminals;(C) transshipment terminals; and(D) production/drilling platforms or rigs.(4) Operator--Any person owning a terminal facility or operating terminal facility by lease, contract or other form of agreement.(5) Vessel--Every description of water craft or other contrivance used or capable of being used as a means of transportation on water, whether self-propelled or otherwise. Examples include, but are not limited to, the following:(A) barges;(B) ships; and(C) any container aboard a barge, tanker etc., which may be used for transporting crude oil.(6) Waterfront--Land or structures fronting or abutting on the waters or bed of the Gulf of Mexico within the jurisdiction of the State of Texas, including any other contiguous waters that are navigable by vessels with a capacity to carry 10,000 gallons or more of oil as fuel or cargo.(b) Reporting requirements.(1) Each marine terminal operator, or owner of crude oil who is registered with the comptroller to report the fee, shall file a coastal protection fee report with the comptroller stating the number of barrels of crude oil and condensate off-loaded from vessels or loaded onto vessels at marine terminals located in Texas. The volume shall be determined by tank tables compiled to show 100% of the full capacity of the tank or by use of industry standard automatic measuring equipment, and shall be corrected to 60 degrees Fahrenheit. The volume may be reduced by a reasonable allowance for basic sediment and water as determined by tests generally recognized by the industry to be accurate.(2) The marine terminal operator shall collect a fee from the owner of the crude oil or condensate and remit the fee to the comptroller.(3) The fee shall be collected only once on the same crude oil or condensate.(c) Amount of fee.(1) Except as provided in paragraphs (2) and (4) of this subsection, the rate of the fee will be $.01333 per barrel of crude oil or condensate.(2) When the balance in the coastal protection fund has reached $20 million, the commissioner of the General Land Office will certify that fact to the comptroller. The fee will not be collected or required to be paid on or after the first day of the second month following the commissioner's certification to the comptroller.(3) If the commissioner of the General Land Office certifies to the comptroller that the balance of the coastal protection fund has fallen below $10 million, the fee will again be due at the rate of $.01333 per barrel.(4) The rate of the fee will be $.04 per barrel of crude oil or condensate when:(A) the commissioner of the General Land Office certifies to the comptroller that:(i) the balance in the coastal protection fund is less than $20 million; and(ii) an unauthorized discharge of oil in excess of 100,000 gallons has occurred within the previous 30 days; and(iii) expenditures from the fund for response costs and damages are expected to deplete the fund substantially.(B) The fee will not be collected or required to be paid on or after the first day of the second month following the commissioner's certification to the comptroller that the balance in the coastal protection fund has reached:(i) $20 million; or(ii) any lesser amount that the commissioner determines is sufficient to pay response costs and damages without substantially depleting the fund.(5) The comptroller will cause to be published in the Texas Register a notice specifying the date on which collection of the fee must begin or end.(d) Due date of report and payment.(1) The coastal protection fee report and payment are due not later than the last day of the month following the calendar month in which liability for the fee is incurred.(2) A marine terminal operator shall not file a monthly report showing crude oil or condensate transferred to or from a marine terminal located in Texas during periods in which the fee is suspended.(e) Penalty. Penalties due on delinquent fees and reports will be imposed as provided by Tax Code, §111.061.(f) Interest. Interest due on delinquent fees will be imposed as provided by Tax Code, §111.060.",
            "sourceNote": "Source Note: The provisions of this §3.692 adopted to be effective December 5, 1996, 21 TexReg 11517; amended to be effective October 12, 2004, 29 TexReg 9555; amended to be effective September 5, 2006, 31 TexReg 7134."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148647&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148647",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "4",
                "label": "TREASURY ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "POOLED COLLATERAL PROGRAM"
            },
            "rule": {
                "number": "§4.100",
                "label": "Purpose"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148648&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148648",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The comptroller has been granted authority by Government Code, §2257.102(a) to establish by rule a program for centralized pooled collateralization of deposits of public funds and for monitoring collateral maintained by participating depository institutions. The pooled collateral program is designed to safeguard deposits of public funds, allow greater efficiency, and reduce costs to public entities and depository institutions.",
            "sourceNote": "Source Note: The provisions of this §4.100 adopted to be effective October 19, 2010, 35 TexReg 9345."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148648&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148648",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "4",
                "label": "TREASURY ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "POOLED COLLATERAL PROGRAM"
            },
            "rule": {
                "number": "§4.101",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148649&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148649",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this chapter, have the following meanings:(1) Acceptable collateral--An eligible security under Government Code, §2257.002(4) that is deemed acceptable by the comptroller to pledge as collateral to secure the deposit of public funds in the pooled collateral program.(2) Collateral security agreement--A binding security agreement between a public entity and a participating depository institution to secure the deposit of public funds in the pooled collateral program. The collateral security agreement must be on a form provided or approved by the comptroller.(3) Custodian trustee--A custodian as provided under Government Code, §2257.104(c) and §2257.041(d).(4) Deposit of public funds--Public funds of a public entity that the comptroller does not manage under Government Code, Chapter 404 held as a demand or time deposit by a participating depository institution.(5) Depository institution--A state or national bank, savings and loan association, federal savings bank, or credit union that is insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund, and maintains a home or branch office in Texas.(6) Participating depository institution--A depository institution that has been approved by the comptroller for participation and holds deposits of public funds in the pooled collateral program.(7) Permitted institution--A financial institution defined in Government Code, §2257.002(6).(8) Pooled collateral program--The centralized pooled collateralization of deposits of public funds administered by the comptroller under Government Code, Chapter 2257, Subchapter F and this chapter.(9) Public entity--A state or a political or governmental entity, agency, instrumentality, or subdivision of the state, including a municipality, a conservation or reclamation district created under Texas Constitution, Article XVI, Section 59, and a public hospital, but the term does not include an institution of higher education, as defined by Education Code, §61.003.(10) State fiscal year--September 1st through August 31st.",
            "sourceNote": "Source Note: The provisions of this §4.101 adopted to be effective October 19, 2010, 35 TexReg 9345."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148649&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148649",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "4",
                "label": "TREASURY ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "POOLED COLLATERAL PROGRAM"
            },
            "rule": {
                "number": "§4.102",
                "label": "Public Entity Eligibility and Participation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148650&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148650",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Participation in the pooled collateral program by a public entity is voluntary.(b) A public entity may participate in the pooled collateral program as an alternative to collateralization under Government Code, Chapter 2257, Subchapter B.(c) Deposits of public funds of a county are not eligible for collateralization under the pooled collateral program.(d) A public entity must comply with the monitoring and notice requirements in §4.114 of this title (relating to Public Entity Deposits and Notice to Participating Depository Institutions).",
            "sourceNote": "Source Note: The provisions of this §4.102 adopted to be effective October 19, 2010, 35 TexReg 9345."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148650&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148650",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "4",
                "label": "TREASURY ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "POOLED COLLATERAL PROGRAM"
            },
            "rule": {
                "number": "§4.103",
                "label": "Depository Institution Eligibility and Participation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148651&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148651",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Participation in the pooled collateral program by a depository institution is voluntary.(b) A depository institution may participate in the pooled collateral program if:(1) the comptroller has approved the depository institution's participation in the pooled collateral program;(2) the depository institution has entered into a binding collateral security agreement with a public entity for the deposit of public funds and the agreement permits the depository institution's participation in the pooled collateral program;(3) the comptroller has approved or provided the collateral security agreement form used; and(4) deposits in the depository institution are insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund.",
            "sourceNote": "Source Note: The provisions of this §4.103 adopted to be effective October 19, 2010, 35 TexReg 9345."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148651&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148651",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "4",
                "label": "TREASURY ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "POOLED COLLATERAL PROGRAM"
            },
            "rule": {
                "number": "§4.104",
                "label": "Depository Institution Application Process"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148652&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
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                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The comptroller will post on its website the depository institution application, collateral security agreement, related documents, and guidance for application and participation in the pooled collateral program.(b) The comptroller's approval of a depository institution's participation in the pooled collateral program is effective for two years from September 1 of each odd-numbered year until August 31st of the next odd-numbered year. A depository institution may apply for approval every two years in the pooled collateral program, according to the instructions posted on the comptroller's website, but may also apply at any time during the two-year period.(c) The comptroller will notify a participating depository institution of the deadline for application by June 1st of each odd-numbered year. A depository institution must apply by August 1st of each odd-numbered year for the comptroller's approval to be effective for September 1 of each odd-numbered year for the next two-year term.(d) The parent institution of a depository institution must apply to be a participating depository institution and be approved if deposits are to be held in any of its Texas branch locations. Branch institutions may not apply. The parent institution may apply for approval by submitting a completed application and executed collateral security agreement to the comptroller at any time.(e) Once a depository has been approved for participation in the pooled collateral program, it will submit each new collateral security agreement with a public entity to the comptroller for approval before accepting its deposits as part of the pooled collateral program and in accordance with the comptroller's instructions on its website.(f) A successor institution to a participating depository institution must apply for approval to act as a depository institution and comply with pooled collateral program law, rules and requirements as soon after the change in ownership as is practicable.(g) The comptroller at its discretion may require the participating depository institution to update the application form and collateral security agreement.(h) If the depository institution has been approved for participation, the comptroller will notify the depository institution and the public entity. The comptroller will provide them both with instructions and requirements for participation in the pooled collateral program, including access to the pooled collateral program website.(i) If the depository institution has not been approved for participation, the comptroller will notify it in writing of the reason for disapproval. If the applicant that was not approved was a participating depository institution, it will comply with the requirements of §4.106(b) of this title (relating to Voluntary Withdrawal from the Pooled Collateral Program) for the orderly withdrawal from the pooled collateral program within ninety days of the comptroller's written disapproval.(j) Within thirty days after the written disapproval of its application an applicant may request an informal review in writing. The applicant must include the basis for its request and submit evidence that it cured any deficiency in its application. The comptroller will conduct an informal review based on the applicant's written submission. Except as provided in subsection (i) of this section for a participating depository institution, an applicant may not act as a depository institution in the program during the informal review process.(k) The agency's decision in the informal review is a final decision.(l) After the informal review process is complete, an applicant that has been disapproved for a deficiency may reapply to act as a depository institution once the deficiency in its application has been cured; however an applicant that has been disapproved for violation of §4.118 of this title (relating to Administrative Penalties for Noncompliance by Participating Depository Institution) would not be considered eligible to apply to act as a depository institution until the next odd-numbered year.",
            "sourceNote": "Source Note: The provisions of this §4.104 adopted to be effective October 19, 2010, 35 TexReg 9345."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148652&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148652",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "4",
                "label": "TREASURY ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "POOLED COLLATERAL PROGRAM"
            },
            "rule": {
                "number": "§4.105",
                "label": "Depository Institution Approval Criteria"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148662&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148662",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The depository institution will submit a completed application and required documents, with original signatures as required. The application must include a statement:(1) of the amount of the applicant's paid capital stock and permanent surplus, if any;(2) of the applicant's condition according to the most recent financial statement on the date the application is submitted;(3) that the applicant will maintain a separate, accurate, and complete records relating to a pledge of collateral, a deposit of public funds, and a transaction related to a pledge of collateral;(4) that the applicant will provide, upon request, the comptroller or a public entity information or confirmation regarding a deposit of public funds or a pledge of collateral; and(5) that the applicant will provide such other information as the comptroller or public entity may require to verify the condition of the depository institution.(b) The depository institution must also meet the following conditions before being approved to participate in the pooled collateral program:(1) the applicant must maintain its main office or a branch office in Texas;(2) the applicant shall submit a binding collateral security agreement for each public entity, with original signatures as required, using a form provided or approved by the comptroller;(3) each related public entity must be eligible for participation in the pooled collateral program;(4) the applicant shall provide for the collateral securities to be held by a custodian trustee in trust for the benefit of the pooled collateral program;(5) the applicant's named custodian trustee qualifies under Government Code, §2257.104(c) or §2257.041(d)(6) the comptroller and custodian trustee have executed a custodian trust agreement when the custodian trustee is qualified to act under Government Code, §2257.041(d)(1) or (5); and(7) the applicant must meet the requirements in Government Code, Chapter 2257, this chapter, or other applicable law.(c) In addition to the foregoing requirements for approval to participate in the pooled collateral program, if the applicant has previously participated in the pooled collateral program the comptroller may refuse to approve its participation in the pooled collateral program for:(1) failure to maintain compliance with Government Code, Chapter 2257, this chapter, or other applicable law;(2) failure to remedy a violation of Government Code, Chapter 2257 and this chapter within a reasonable time after receiving written notice of the violation;(3) audit or examination findings that include noncompliance with Government Code, Chapter 2257 and this chapter;(4) failure to comply with the terms of the collateral security agreement; or(5) failure to provide information requested by the comptroller, which information the comptroller considers necessary to evaluate compliance with Government Code, Chapter 2257 and this chapter, and for the benefit of the pooled collateral program.(d) The comptroller may approve those applicants that are acceptable and may reject those whose management or condition, in the opinion of the comptroller, does not warrant the placing of public funds in their possession or do not meet the requirements of this chapter. The comptroller may consider financial indicators that concern capital adequacy, asset quality, earnings and liquidity.",
            "sourceNote": "Source Note: The provisions of this §4.105 adopted to be effective October 19, 2010, 35 TexReg 9345."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148662&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148662",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "4",
                "label": "TREASURY ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "POOLED COLLATERAL PROGRAM"
            },
            "rule": {
                "number": "§4.106",
                "label": "Voluntary Withdrawal from the Pooled Collateral Program"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148656&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148656",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An approved depository institution or public entity may withdraw from the pooled collateral program by providing written notice to the comptroller and the other named party to its collateral security agreement(s) (either the depository institution or public entity). The depository institution must provide notice in writing at least 90 days before the effective date of withdrawal. The public entity must provide reasonable written notice of withdrawal from the program as soon as practicable.(b) As part of the withdrawal process a participating depository institution must:(1) maintain the required amount of acceptable collateral in the pooled collateral program until the effective date of withdrawal;(2) continue to provide the required reports detailing required information through the effective date of withdrawal;(3) continue to comply with the terms of collateral security agreements through the effective date of withdrawal; and(4) provide written notice to the comptroller that it has taken all appropriate steps to provide for the orderly transition of public entity deposits.",
            "sourceNote": "Source Note: The provisions of this §4.106 adopted to be effective October 19, 2010, 35 TexReg 9345."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148656&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148656",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "4",
                "label": "TREASURY ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "POOLED COLLATERAL PROGRAM"
            },
            "rule": {
                "number": "§4.107",
                "label": "General Collateral Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148657&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148657",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A participating depository institution must enter into a binding collateral security agreement with each public entity to secure public deposits.(b) A participating depository institution is responsible for pledging sufficient collateral when public deposits are received, and for maintaining sufficient collateral at all times. A depository institution must use its best efforts to pledge collateral at the same time it receives a deposit of public funds, but no later than the close of business on the same day of the deposit. Collateral is not required for deposits to the extent that the deposits are insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund. The comptroller will apply the full amount of federal deposit insurance coverage for a public entity to determine the amount of collateral required to secure the deposit of public funds in the program.(c) A participating depository institution is required to pledge acceptable collateral with a custodian trustee qualified to act under Government Code, §2257.104(c) or §2257.041(d) to secure the deposits of public funds. The custodian trustee shall properly identify and hold the pledged collateral in trust for the benefit of the public entities participating in the depository institution's specific pooled custodian account in the pooled collateral program.(d) A participating depository institution may pledge its pooled collateral to more than one participating public entity under contract with the participating depository institution. The collateral security may be pledged using a single custodial account instead of an account for each public entity.(e) Each participating depository institution's collateral may not be combined, cross-collateralized with, or aggregated with, or pledged to any other depository institution's collateral pools.(f) The custodian trustee may either keep all collateral pledged for the benefit of the program in one identifiable pooled collateral account or in an account in the name of the participating depository institution where the collateral is clearly pledged and identified for the pooled collateral program using a unique code reporting system.(g) The security interest for a participating depository institution's pledge of collateral is created, attaches, and is perfected when the custodian trustee records the pledge on its books and records and issues a trust receipt.(h) The custodian trustee is for all purposes the bailee or agent of the public entity depositing the public funds as part of the pooled collateral program.",
            "sourceNote": "Source Note: The provisions of this §4.107 adopted to be effective October 19, 2010, 35 TexReg 9345."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148657&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148657",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "4",
                "label": "TREASURY ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "POOLED COLLATERAL PROGRAM"
            },
            "rule": {
                "number": "§4.108",
                "label": "Acceptable Collateral"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148658&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148658",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) To properly secure the deposit of public funds and to preserve the integrity and viability of the pooled collateral program, the comptroller will designate those instruments in this section and on its website that it deems acceptable to pledge as collateral. The comptroller's decision regarding whether an instrument is deemed acceptable collateral, either on its own determination or upon petition by a participating depository institution, is final and not subject to review.(b) The comptroller will designate acceptable collateral for the program from those instruments allowed as eligible collateral under Government Code, §2257.02(4). The comptroller will designate acceptable collateral based upon its associated risks, its preservation of market value, its operational efficiencies, and such other appropriate criteria that may be developed by the comptroller.(c) The comptroller will review its designation of acceptable collateral each state fiscal year and more often if needed. At its discretion the comptroller may add or remove its designation of acceptable collateral from time to time as appropriate to protect the deposit of public funds and the integrity of the pooled collateral program. The comptroller will provide at least 180 days notice of the same to participating depository institutions to allow substitution of a pledged instrument that is no longer deemed acceptable collateral, unless a shorter notice is required to adequately secure the deposit of public funds.(d) A participating depository institution may make a written request that the comptroller approve an instrument that is not currently deemed as acceptable collateral. The participating depository institution will provide appropriate documentation to substantiate its request. The comptroller will review the request and notify the participating depository institution of its decision of whether to add the instrument to the designation of acceptable collateral that may be pledged by a participating depository institution and the rationale for its decision. The comptroller may accept or reject a proposed instrument based on the criteria for designating acceptable collateral.(e) Except as provided in subsection (c) or (f) of this section, the following instruments are deemed acceptable to be pledged as collateral in the pooled collateral program:(1) United States Treasury obligations;(2) Mortgage-backed securities (Federal National Mortgage Association discount notes, primary debt instruments or debentures) with a remaining maturity of 15 years or less;(3) Federal Home Loan Bank system consolidated bonds and discount notes issued in book-entry form;(4) Federal Home Loan Bank Beneficiary Standby Letters of Credit that are fully collateralized;(5) Federal Farm Credit Banks consolidated system-wide bonds and discount notes issued in book-entry form;(6) Government National Mortgage Association securities;(7) Federal Home Loan Mortgage Corporation discount notes and primary debt instruments or debentures, and only those mortgage-backed securities with a remaining maturity of 15 years or less;(8) State of Texas bonds issued by various state agencies and four year educational institutions of the State of Texas; and(9) Municipal bonds issued by governmental entities of the State of Texas with a rated investment quality by a nationally recognized investment rating firm of not less than \"A\" or its equivalent. By way of illustration, and not limitation, governmental entities include independent school districts, junior colleges, incorporated cities, certain road districts, certain municipal water and/or utility districts, hospital districts (excluding health facility bonds), and water and air pollution control districts.(f) The following instruments are not deemed acceptable to be pledged as collateral in the pooled collateral program:(1) Adjustable Rate Mortgages (ARM);(2) Collateralized Mortgage Obligations (CMO);(3) step-up securities;(4) variable rate securities; and(5) securities not found on common pricing systems.",
            "sourceNote": "Source Note: The provisions of this §4.108 adopted to be effective October 19, 2010, 35 TexReg 9345."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148658&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148658",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "4",
                "label": "TREASURY ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "POOLED COLLATERAL PROGRAM"
            },
            "rule": {
                "number": "§4.109",
                "label": "Required Amount of Collateral"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148659&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148659",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If the balance of deposits of public funds in a participating depository institution is increased, the participating depository institution will increase the collateral for the deposits to the required amount.(b) The comptroller shall determine the market value of acceptable collateral pledged by participating depository institutions to determine if the collateral amount is adequate. The comptroller's valuation of acceptable collateral is final and not subject to review.(c) If the market value of the collateral pledged by a participating depository institution becomes less than the required amount, the comptroller shall require that additional collateral be pledged immediately, but not later than the close of business on the same day the comptroller notifies the depository institution that it does not meet collateral requirements.(d) Except as provided in subsection (e) of this section, each participating depository institution shall pledge acceptable collateral with a total value of at least 105% of the amount of deposits of public funds in its pool, reduced to the extent deposits are insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund.(e) If pledged collateral consists of securities with a declining principal balance, the market value of the collateral pledged may not be less than 125% of the amount of the deposits of public funds to be secured, reduced to the extent deposits are insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund.(f) The collateralization requirements of Government Code, §2257.022(b) do not apply to a deposit of public funds held by a participating depository institution and collateralized in the pooled collateral program.",
            "sourceNote": "Source Note: The provisions of this §4.109 adopted to be effective October 19, 2010, 35 TexReg 9345."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148659&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148659",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "4",
                "label": "TREASURY ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "POOLED COLLATERAL PROGRAM"
            },
            "rule": {
                "number": "§4.110",
                "label": "Pledge and Withdrawal of Collateral"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148660&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148660",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The comptroller will, as the designated agent of the public entity, monitor collateral pledged as part of the program and approve as appropriate, the pledge and withdrawal of collateral into and out of the custodian trustee account for pooled collateral.(b) The comptroller will post procedures for pledging acceptable collateral on its website. The procedures will address the following:(1) the pledge of acceptable collateral by the participating depository institution;(2) the comptroller's review of the proposed pledge of collateral and notification to a participating depository institution if the proposed pledge is not approved;(3) the comptroller's authorization to the custodian trustee to accept the pledge of collateral; and(4) the custodian trustee's identification of the pledge of collateral on its books and records and issuance of a safekeeping trust receipt to the comptroller in an acceptable manner.(c) The comptroller will post procedures for withdrawal of collateral on its website. The procedures will address the following:(1) notice by the participating depository institution of the proposed withdrawal of collateral from its pooled collateral program pool;(2) the comptroller's review of the proposed withdrawal of collateral and notification to the participating depository institution if the comptroller rejects the withdrawal of collateral;(3) the comptroller's authorization to the custodian trustee to allow the withdrawal of collateral; and(4) the custodian trustee's acknowledgement to the comptroller of receipt of approval to withdraw collateral and confirmation of the withdrawal.",
            "sourceNote": "Source Note: The provisions of this §4.110 adopted to be effective October 19, 2010, 35 TexReg 9345."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148660&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148660",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "4",
                "label": "TREASURY ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "POOLED COLLATERAL PROGRAM"
            },
            "rule": {
                "number": "§4.111",
                "label": "Recovery of Public Deposits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148661&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148661",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "If a participating depository institution fails to satisfy a claim against a deposit of public funds or becomes insolvent, the official custodian of a public entity (as set out in 12 CFR 330.15) may make a claim to recover their deposits of public funds.",
            "sourceNote": "Source Note: The provisions of this §4.111 adopted to be effective October 19, 2010, 35 TexReg 9345."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148661&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148661",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "4",
                "label": "TREASURY ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "POOLED COLLATERAL PROGRAM"
            },
            "rule": {
                "number": "§4.112",
                "label": "Custodian Trustee Qualification and Participation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148644&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148644",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A custodian trustee holds in trust the collateral pledged to secure deposits of public funds by the participating depository institution.(b) A custodian trustee must qualify as a custodian under Government Code, §2257.104(c) or §2257.041(d) before acting as a custodian trustee in the pooled collateral program.(c) A custodian trustee must be approved by a public entity before the custodian trustee may accept collateral to secure the deposit of its public funds.(d) A custodian trustee or a permitted institution may not own, may not be owned by, and must be independent of the participating depository institution or institutions for which it holds the public entity's collateral in trust.(e) The comptroller shall ensure that the custodian trustee is:(1) a state or national bank that:(A) is designated by the comptroller as a state depository;(B) has its main office or a branch office in this state; and(C) has a capital stock and permanent surplus of $5 million or more;(2) the Texas Treasury Safekeeping Trust Company;(3) a Federal Reserve Bank or a branch of a Federal Reserve Bank;(4) a banker's bank as defined by Texas Finance Code, §34.105;(5) a federal home loan bank; or(6) a financial institution authorized to exercise fiduciary powers and that is designated by the comptroller as a custodian pursuant to Government Code, §404.031(e).(f) If the custodian trustee qualified is to act under the terms of Government Code, §2257.041(d)(1) or (5), the comptroller will enter into an agreement to protect the security interests of collateral pledged for the pooled collateral program. If the custodian trustee is qualified to act under Government Code, §2257.104(c)(1) - (3) or §2257.041(d)(2) - (4), it is not required to enter into such an agreement with the comptroller.(g) A qualified custodian trustee will comply with the following requirements to participate in the pooled collateral program:(1) the custodian trustee shall comply with all procedures for pledge or withdrawal of collateral in the pooled collateral program;(2) the custodian trustee shall properly identify and hold the pledged collateral in trust for the benefit of the pooled collateral program. The custodian trustee may either keep all collateral pledged for the benefit of the program in one identifiable pooled collateral account or in an account in the name of the participating depository institution where the collateral is clearly pledged and identified for the program using a unique code reporting system;(3) the custodian trustee shall issue a trust receipt, advice of transaction, or other evidence of transaction to the comptroller indicating the pledge or withdrawal of collateral in a manner acceptable to the comptroller;(4) the custodian trustee shall not allow a withdrawal of the collateral without permission of the comptroller; and(5) the custodian trustee shall keep accurate and detailed records of all transactions related to the collateral.",
            "sourceNote": "Source Note: The provisions of this §4.112 adopted to be effective October 19, 2010, 35 TexReg 9345."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148644&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148644",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "4",
                "label": "TREASURY ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "POOLED COLLATERAL PROGRAM"
            },
            "rule": {
                "number": "§4.113",
                "label": "Reporting Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148641&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
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                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The comptroller will publish instructions on the required electronic reporting procedures, deadlines, requirements, and format on its website.(b) The comptroller will provide an electronic acknowledgement of each report received and post each report on its website.(c) Each participating depository institution will file the following reports in accordance with the comptroller's instructions:(1) daily report--the participating depository institution will file a daily report of its prior business day's aggregate ledger balance of deposits of public funds. The daily report will be itemized by each public entity and account. The participating depository institution will report deposits by account type, indicating interest bearing and non-interest bearing accounts;(2) weekly summary report--the participating depository institution will file a weekly report of the total par and market value of collateral held by a custodian trustee on its behalf. As part of the participating depository institution's weekly summary report, it may either report the market value itself or adopt by reference the comptroller's daily report indicating the market value of the collateral for the due date of the weekly report. If a participating depository institution elects to adopt the comptroller's reported market value of the collateral by reference, it must elect to do so either during the application process or if during the two-year term, in accordance with the comptroller's guidelines posted on its website;(3) monthly report--the participating depository institution will file a monthly report listing the collateral instruments held by a custodian trustee on behalf of the participating depository institution, together with the par and market value of the securities with their CUSIP numbers if applicable; and(4) annual reporting--during even-numbered years beginning in 2012 the participating depository institution will file appropriate annual reports as the comptroller may require, including its annual report and financial statements. The comptroller will post any such annual reporting requirements on its website.(d) The comptroller will provide a daily report on the market value of the collateral held in each pool on its website.(e) The comptroller will, as the designated agent of the public entity, monitor the reports and related collateral held in trust for the benefit of the public entity and the pooled collateral program.(f) The comptroller may impose an administrative penalty against a participating depository institution that fails to timely file a report as required under Government Code, §2257.107 and this chapter.",
            "sourceNote": "Source Note: The provisions of this §4.113 adopted to be effective October 19, 2010, 35 TexReg 9345."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148641&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148641",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "4",
                "label": "TREASURY ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "POOLED COLLATERAL PROGRAM"
            },
            "rule": {
                "number": "§4.114",
                "label": "Public Entity Deposits and Notice to Participating Depository Institutions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148642&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148642",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A public entity is responsible for reviewing and monitoring the reports posted on the comptroller's website related to its deposits of public funds.(b) A public entity is responsible for verifying the accuracy of the daily reports of its itemized deposits and reporting any discrepancies to its participating depository institution.(c) A public entity shall inform its participating depository institution of a significant change in the amount or activity of its deposits within a reasonable time before the change occurs.(d) A participating depository institution must notify the comptroller if a public entity repeatedly fails to inform it of a significant change in the amount or activity in deposits as required in subsection (c) of this section.(e) The comptroller in its discretion may disapprove a collateral security agreement between a participating depository institution and a public entity if that public entity fails to comply with the notice requirement in subsection (c) of this section more than two times within a one-year period.",
            "sourceNote": "Source Note: The provisions of this §4.114 adopted to be effective October 19, 2010, 35 TexReg 9345."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148642&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148642",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "4",
                "label": "TREASURY ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "POOLED COLLATERAL PROGRAM"
            },
            "rule": {
                "number": "§4.115",
                "label": "Books and Records"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148643&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148643",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A participating depository institution, custodian trustee, and a permitted institution will maintain separate, accurate and complete records relating to each deposit of public funds, each pledge of collateral, and each transaction related to a pledge of collateral.(b) A depository institution, custodian trustee and a permitted institution will provide, upon request, the comptroller or a public entity with information or confirmation regarding a deposit of public funds or a pledge of collateral.(c) A public entity may, pursuant to the terms of its account agreement, review the records of its participating depository institution, custodian trustee, and permitted institution related to that public entity's deposit and collateralization of public funds in the pooled collateral program.",
            "sourceNote": "Source Note: The provisions of this §4.115 adopted to be effective October 19, 2010, 35 TexReg 9345."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148643&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148643",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "4",
                "label": "TREASURY ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "POOLED COLLATERAL PROGRAM"
            },
            "rule": {
                "number": "§4.116",
                "label": "Certification of Compliance"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148645&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148645",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The comptroller at its discretion may require annual certification by a participating depository institution that it is in compliance with Government Code, Chapter 2257, Subchapter F and this chapter.(b) The comptroller may require written confirmation from a participating depository institution, custodian trustee, or permitted institution that it is in compliance with the books and records requirements under Government Code, Chapter 2257 and this chapter.",
            "sourceNote": "Source Note: The provisions of this §4.116 adopted to be effective October 19, 2010, 35 TexReg 9345."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148645&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148645",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "4",
                "label": "TREASURY ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "POOLED COLLATERAL PROGRAM"
            },
            "rule": {
                "number": "§4.117",
                "label": "Compliance with Laws; Venue"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148646&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148646",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The comptrollers' office and all participants in the pooled collateral program will comply with all applicable laws, including the Federal Reserve regulations and Operating Circulars, in connection with the pooled collateral program.(b) A legal action brought by or against a public entity that arises out of or in connection with the duties of a depository institution, custodian trustee or permitted institution must be brought and maintained as provided by the contract with the public entity.(c) Venue for any suit brought in connection with the pooled collateral program will be in State District Court in Travis County, Texas, and no other county.",
            "sourceNote": "Source Note: The provisions of this §4.117 adopted to be effective October 19, 2010, 35 TexReg 9345."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148646&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148646",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "4",
                "label": "TREASURY ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "POOLED COLLATERAL PROGRAM"
            },
            "rule": {
                "number": "§4.118",
                "label": "Administrative Penalties for Noncompliance by Participating Depository Institution"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148653&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148653",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The comptroller may, in addition to other penalties provided by law, impose an administrative penalty against a participating depository institution for:(1) failure to maintain collateral in an amount and in the manner required by Government Code, §2257.104 and this chapter, if the participating depository institution has not remedied the violation before the third business day after the date the notice is issued;(2) failure to timely file a report required under Government Code, §2257.105 and this chapter; or(3) failure to pay an assessment within 45 calendar days after the date it receives the notice.(b) In an action under Government Code, §2257.108, the comptroller may consider the failure of a public entity to properly inform the participating depository institution of a significant change in amount or activity in its deposits as a mitigating factor if it causes the participating depository institution to be in violation of the collateral requirements under Government Code, §2257.104 and the rules of the comptroller.(c) The comptroller will notify a participating depository institution if it is in violation of any reporting requirements, collateral requirements, or in the event of failure to pay the annual assessment.(d) The comptroller and the participating depository institution may agree to informally resolve a pending violation and penalty.(e) A proceeding to impose a penalty under Government Code, §§2257.107, 2257.108, and 2257.109 and this section, is a contested case under Government Code, Chapter 2001.(f) If, after a determination that a penalty is due, the participating depository institution fails to pay the penalty, the comptroller may refer the matter to the attorney general for enforcement.(g) The participating depository institution may stay enforcement of the penalty during the time the order is under judicial review in the manner provided in Government Code, §2257.113.",
            "sourceNote": "Source Note: The provisions of this §4.118 adopted to be effective October 19, 2010, 35 TexReg 9345."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148653&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148653",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "4",
                "label": "TREASURY ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "POOLED COLLATERAL PROGRAM"
            },
            "rule": {
                "number": "§4.119",
                "label": "Penalty Amounts"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199542&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "199542",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The formula for determining the amounts of penalties for a participating depository institution violation shall be based on the following factors: average weekly deposits, average asset base, number of previous violations, and number of days of a continuing violation. The penalty must be at least $100 per calendar day and cannot exceed $1,000 per calendar day. (b) The calculation of the penalty amount per calendar day of violation is as follows: (1) start with the amount set out in paragraph (5) of this subsection based on the participating depository institution's average weekly deposits as a percentage of the total weekly deposits in the pooled collateral program for that week; (2) add the amount based on participating depository institution's average asset base as reported on the year-end report of conditions set out in paragraph (5) of this subsection; (3) the base penalty is the sum of paragraph (1) plus (2) of this subsection. If the participating depository institution has had more than one violation in the state fiscal year, multiply the base penalty as follows: by two if for the second violation, and by three for three violations or more; (4) if there is a continuing violation after seven business days, increase the penalty by $100 per calendar day from the 8th business day through the 14th business day of the continued violation; and (5) if there is a continuing violation after fourteen business days, increase the penalty by $200 per calendar day. Attached Graphic",
            "sourceNote": "Source Note: The provisions of this §4.119 adopted to be effective October 19, 2010, 35 TexReg 9345."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199542&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "199542",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "4",
                "label": "TREASURY ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "POOLED COLLATERAL PROGRAM"
            },
            "rule": {
                "number": "§4.120",
                "label": "Assessment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193696&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "193696",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In accordance with Government Code, §2257.106, the comptroller shall impose an annual assessment each state fiscal year on each participating depository institution in an amount sufficient to pay the costs of administering the pooled collateral program. The comptroller will publish instructions on the required assessment procedure, formula, deadlines, and requirements on its website. The comptroller may, in its discretion and when appropriate, allocate program costs over a period of years. Additionally, the comptroller may, in its discretion and when appropriate, choose not to impose an annual assessment against participating depository institutions if there are no extra costs associated with administering the pooled collateral program.(b) The formula for determining the amount of the assessment will be based on the following factors:(1) the number of collateral transactions a participating depository institution conducts;(2) the number of public entity accounts a participating depository institution maintains in the program; and(3) the depository institution's average weekly deposits of public funds collateralized during that state fiscal year.(c) The comptroller shall calculate the annual assessment, if any, and send a notification, if applicable, to each participating depository institution after the close of the state fiscal year.(d) The participating depository institution will remit payment to the comptroller by Automated Clearing House (ACH) credit according to the instructions provided by the comptroller within 45 calendar days after the date it receives the notice.(e) The comptroller may impose an administrative penalty against a participating depository institution if it does not timely pay the assessment.",
            "sourceNote": "Source Note: The provisions of this §4.120 adopted to be effective October 19, 2010, 35 TexReg 9345; amended to be effective June 7, 2020, 45 TexReg 3640."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193696&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "193696",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "A",
                "label": "DEFINITIONS"
            },
            "rule": {
                "number": "§5.1",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213519&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "213519",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Comptroller--The Comptroller of Public Accounts for the State of Texas.(2) Designated headquarters--The city limits of the town in which a person's headquarters are located.(3) Payroll period or pay period--Designates the time period for which full-time state employees receive payment for services to the state.(4) Transportation network company--An entity that uses a digital network service to connect people to transportation services provided by a transportation network driver.(5) Transportation network driver--A person who uses a personal vehicle to participate with a transportation network company to provide prearranged transportation services to people for pay.(6) Travel voucher--An accounting document used to implement payment to state officials and employees for travel expenses incurred in the discharge of state business.",
            "sourceNote": "Source Note: The provisions of this §5.1 adopted to be effective January 1, 1976; amended to be effective November 19, 2006, 31 TexReg 9328; amended to be effective October 26, 2015, 40 TexReg 7427; amended to be effective December 25, 2018, 43 TexReg 8477."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213519&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "213519",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "B",
                "label": "PAYMENT PROCESSING--ELECTRONIC FUNDS TRANSFERS"
            },
            "rule": {
                "number": "§5.12",
                "label": "Processing Payments Through Electronic Funds Transfers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=171551&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "171551",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Applicability. These rules govern EFT payments by the comptroller on behalf of custodial and paying state agencies as part of the electronic funds transfer system authorized by Government Code, §403.016.(b) Definitions. The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise.(1) Automated clearing house (ACH)--A central distribution and settlement point for the electronic clearing of debits and credits between financial institutions subject to regulation under rules of an automated clearing house association and applicable regulatory law.(2) ACH rules--The operating rules and guidelines governing the ACH network published by NACHA, the Electronic Payments Association and applicable federal regulatory law.(3) Comptroller--The Comptroller of Public Accounts for the State of Texas.(4) Credit entry--A type of EFT entry that the comptroller initiates on behalf of a paying state agency to credit a state payee's EFTS account at a domestic financial institution.(5) Custodial state agency--A state agency that establishes and maintains the state payee's account information. The custodial state agency may or may not be the paying state agency.(6) Direct deposit--A form of EFT payment using ACH for the electronic transfer of funds directly into a state payee EFTS account at a domestic financial institution.(7) Electronic funds transfer (EFT)--A transfer of funds which is initiated by the comptroller as originator to the originating depository financial institution to order, instruct, or authorize a receiving depository financial institution to perform a credit entry, reversal, or reclamation in accordance with this subchapter. For purposes of these rules, an EFT does not include a transaction originated by wire transfer, check, draft, warrant, or other paper instrument.(8) EFTS authorization--A state payee's agreement to allow the comptroller to originate state-issued payments by EFT on behalf of a paying state agency to a state payee EFTS account. A state payee may provide EFTS authorization and notice under Government Code, §403.016 by:(A) submitting an EFTS authorization with a state payee's agreement on a comptroller approved form; or(B) providing an agreement to a custodial state agency or a paying state agency in a manner deemed appropriate by that agency and the comptroller, and as required by law and NACHA rules.(9) EFTS form--An electronic or paper form submitted by a state payee as part of the EFTS. An EFTS form used by a custodial state agency or paying state agency is subject to comptroller approval.(10) Electronic funds transfer system (EFTS)--A system authorized by Government Code, §403.016, that is administered by the comptroller in accordance with these rules to make EFT payments to state payees on behalf of a paying state agency.(11) Financial institution--A state or national bank, a state or federal savings and loan association, a mutual savings bank, or a state or federal credit union that complies with NACHA rules and may be an originating depository financial institution or a receiving depository financial institution.(12) International ACH transaction (IAT)--An ACH entry involving a financial agency (as defined by NACHA rules) that is not located in the territorial jurisdiction of the United States. An international ACH transaction may be referred to as an IAT entry or IAT.(13) May not--A prohibition. The term does not mean \"might not\" or its equivalents.(14) NACHA--The National Automated Clearing House Association is the electronic payments association that establishes standards, rules and procedures that enable domestic financial institutions to exchange payments electronically.(15) Notification of change (NOC)--Information sent by a financial institution through the ACH network to notify the comptroller that previously valid information for a state payee has become outdated or that information contained in a prenotification is erroneous.(16) Originating depository financial institution--A financial institution that originates ACH entries on behalf of the comptroller and transmits ACH entries through the ACH network in accordance with NACHA rules.(17) Originator--The comptroller acts as the originator and authorizes an originating depository financial institution to transmit, on behalf of the state, a credit entry, reclamation, reversal, or prenotification entry to a state payee EFTS account at a domestic financial institution.(18) Pay card--A payment card issued to a state employee or annuitant that provides access to payroll, travel reimbursement, or retirement payments deposited to a designated account at a domestic financial institution as part of the EFTS through the comptroller's pay card contract.(19) Paying state agency--A state agency for which the comptroller initiates payment. The term includes the comptroller of public accounts. A paying state agency may or may not be the custodial state agency.(20) Prenotification--A non-dollar entry sent by the comptroller through the ACH network to alert a receiving depository financial institution that a live dollar credit entry will be forthcoming and to request verification of the state payee's EFTS account information. (21) Receiving depository financial institution--A financial institution that receives ACH entries to a state payee EFTS account.(22) Reclamation--A request made by the comptroller in compliance with NACHA rules, to an originating depository financial institution to reclaim from a receiving depository financial institution any amounts received by a state payee after the state payee's death or legal incapacity, or the death of a beneficiary of a state payee.(23) Regulation E--The regulations adopted by the Bureau of Consumer Financial Protection at 12 C.F.R. Part 1005, as they may be amended, to implement the Electronic Fund Transfer Act (15 U.S.C. §1693 et seq. ).(24) Reversal--An EFT entry initiated by the comptroller at the request of a paying state agency to correct an erroneous credit entry previously transmitted to a state payee EFTS account. The comptroller may initiate a reversal of an EFT payment of state employee payroll or retirement in compliance with NACHA rules.(25) State agency--(A) a department, commission, board, office, or other agency in the executive or legislative branch of state government that is created by the constitution or a statute of this state, including the comptroller of public accounts;(B) the supreme court of Texas, the court of criminal appeals, a court of appeals, or a state judicial agency; or(C) a university system or an institution of higher education as defined by Education Code, §61.003 other than a public junior college.(26) State payee--A person to whom a state payment is issued, including an individual, state employee, annuitant, business, vendor, governmental entity, or other legal recipient paid by the State of Texas.(27) State payee EFTS account--An account at a domestic financial institution designated by a state payee for EFTS payments.(28) Warrant--A state payment in the form of a paper instrument which is subject to applicable state law, is drawn on the State of Texas treasury funds, and is payable to a state payee on behalf of a paying state agency by the comptroller or by a state agency with delegated authority to issue warrants under Government Code, §403.060. A warrant is not an approved means of electronic funds transfer as set out in subsection (c) of this section.(29) Wire transfer--An unconditional order to a financial institution to pay a fixed or determinable amount of money to a state payee upon receipt or on a day stated in the order that is transmitted by electronic or other means. Wire transfer is not an approved means of electronic fund transfer, as set out in subsection (c) of this section.(c) Approved types of EFTS payments.(1) The comptroller will approve the types of EFTS payments the state may use by rule and amend the approval based upon the comptroller's procedures and current technology.(2) EFTS payment types approved by the comptroller to a state payee EFTS account include:(A) direct deposit, except an IAT; and(B) pay card.(3) Any other type of payment which is not an approved type of EFTS payment under paragraph (2) of this subsection is not considered to be an approved type of EFTS payment under these rules. Warrants, wire transfers, and IAT are not approved types of EFTS payments. (d) Compliance with applicable NACHA rules and regulation. Each participant in the EFTS, including the comptroller, the paying state agency, the custodial state agency, and the state payee, shall comply with applicable law and NACHA regulations in EFTS transactions.(e) Confidentiality. Each participant in the EFTS, including the comptroller, the paying state agency, the custodial state agency, and the state payee, shall comply with applicable confidentiality requirements under the law, including maintaining the confidentiality of financial institution account numbers and state payee social security numbers.(f) Audit. The comptroller is subject to audit by NACHA for compliance with NACHA rules concerning EFT transactions under this chapter. The comptroller may audit a paying or custodial state agency for compliance with applicable regulatory or NACHA rules concerning EFT transactions under this chapter. A paying or custodial state agency shall comply with an audit under this chapter.(g) Notification.(1) Any questions, comments, or complaints concerning the comptroller's electronic funds transfer system as it relates to Government Code, §403.016 and these rules may be sent to the comptroller by mail to: Texas Comptroller of Public Accounts, Fiscal Management, 111 E. 17th Street, Room 1010.9, Austin, Texas, 78711, or by email to tins.mail@cpa.texas.gov, or at such other email address as the comptroller may designate.(2) The comptroller may provide additional information and updates on its website regarding notification.(3) The comptroller may require the custodial state agency, the paying state agency, the state payee, and the financial institution to provide contact information as appropriate.(h) Conflict of law. If there is a conflict in law between any of these rules and applicable law, the applicable law shall apply. If any provision of these rules is held to be invalid, illegal, or unenforceable due to a conflict of law, it will not affect any other provisions of these rules, and the rules will be construed as if such invalid or illegal or unenforceable provision had never been contained herein.",
            "sourceNote": "Source Note: The provisions of this §5.12 adopted to be effective February 23, 2015, 40 TexReg 825; amended to be effective July 6, 2016, 41 TexReg 4861; amended to be effective July 31, 2018, 43 TexReg 4987; amended to be effective May 18, 2023, 48 TexReg 2507."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=171551&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "171551",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "B",
                "label": "PAYMENT PROCESSING--ELECTRONIC FUNDS TRANSFERS"
            },
            "rule": {
                "number": "§5.13",
                "label": "Administration of Electronic Funds Transfers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=191593&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
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            "ruleBody": "(a) Role of the comptroller.(1) General administration. As part of its general powers under Government Code, §403.011, the comptroller shall supervise, as the sole accounting officer of the state, the state's fiscal concerns and manage those concerns as required by law, and keep and settle all accounts in which the state is interested. Under Government Code, §403.056 and §403.060 the comptroller has authority to prepare and deliver warrants, and to print and issue warrants. The comptroller has been granted further authority by Government Code, §403.016 to establish and operate an EFTS to make state payments. As part of operating the EFTS, and in accordance with Government Code, §403.016, the comptroller:(A) may use the services of financial institutions, automated clearinghouses, and the federal government;(B) shall approve the means of EFTS payments the state may use in accordance with Government Code, §403.016;(C) shall approve EFTS methods and forms, and post them online as appropriate, and provide them to paying and custodial state agencies and to state payees;(D) may revise its policies and procedures from time to time as appropriate to operate the EFTS;(E) is authorized to act as originator, to initiate an EFT;(F) may act upon a request from a paying state agency to initiate a reversal to correct an erroneous entry or a reclamation for payments not due in accordance with these rules;(G) shall use the EFTS to pay:(i) state employee salary and travel expense reimbursements;(ii) payments to annuitants;(iii) recurring payments to municipalities, counties, political subdivisions, special districts, and other governmental entities of this state; and(iv) payments to persons or vendors who choose to receive payment through the EFTS:(H) is not required to make a payment by the EFTS even if a state payee or state agency requests payment by EFT;(I) may, when a law requires the comptroller to make a payment by warrant, issue a payment by EFT under Government Code, §403.016(g);(J) shall issue a warrant to pay a person under the terms of Government Code, §403.016(h); and(K) may issue a payment to a state payee by warrant in lieu of EFT pursuant to Government Code, §403.016(i).(2) Specific procedures. As part of operating the EFTS, and in accordance with Government Code, §403.016, the comptroller:(A) may limit the number of state payee EFTS accounts that a state payee may designate for payment by EFT;(B) shall rely on the EFTS authorization from a custodial state agency for the distribution of EFTS payments;(C) may cancel a state payee's participation in the EFTS without prior notice to the state payee;(D) shall rely on an NOC from receiving depository financial institution;(E) may require state payees to disclose any information necessary to support an EFT payment;(F) may require the custodial state agency, the paying state agency, the state payee, and the financial institution to provide contact information as appropriate; and(G) shall, in the case of payments issued through the ACH network that are intended to be sent to a financial institution outside of the United States, or an IAT:(i) require the paying state agency or the custodial state agency to obtain a written confirmation from state payees whether the intended final destination of a payment or payments is a country outside of the United States, in compliance with the law, NACHA rules, and in accordance with comptroller policy;(ii) shall rely on the custodial state agency, the paying state agency, the state payee, and the financial institution to notify state agencies, including the comptroller, of payees who confirm the intended final destination of payment or payments is a country outside of the United States; and(iii) shall not use the EFTS to transmit an IAT payment or payments.(b) Role of the custodial state agency.(1) The custodial state agency is responsible for establishing and maintaining EFTS state payee account information for EFT and shall:(A) encourage state payees to participate in the EFTS;(B) establish and maintain the state payee's EFTS account information for EFT in the comptroller's statewide systems in a manner prescribed by the comptroller;(C) obtain comptroller approval for a EFTS form or EFTS authorization created by the custodial state agency before it uses the EFTS form or EFTS authorization;(D) comply with a comptroller request to withdraw or change an EFTS form or EFTS authorization;(E) post approved EFTS forms and EFTS authorizations online and direct state payees to online tools for EFTS forms and EFTS authorizations;(F) obtain a state payee EFTS authorization or notice under Government Code, §403.016, by submitting an EFTS authorization with a state payee's agreement on a comptroller approved form, or by obtaining an agreement between the custodial state agency and the state payee in a manner deemed appropriate by that agency and the comptroller, and as required by law and NACHA rules;(G) obtain a written confirmation from state payees whether the intended final destination of a payment or payments is a country outside of the United States, in compliance with the law, NACHA rules, and in accordance with comptroller policy; and(H) retain a record of the state payee's EFTS forms or EFTS authorizations in a manner deemed appropriate by that agency and the comptroller, and as required by law and NACHA rules.(2) The custodial state agency may cancel a state payee's EFTS authorization without prior notice to the state payee.(3) The custodial state agency shall provide reasonable advance written notice to the comptroller of a regulatory requirement related to the custodial state agency's EFTS processing.(4) The custodial state agency shall not act as an originator, as defined in these rules, unless specifically authorized to do so by the comptroller or under law.(c) Role of the paying state agency. The paying state agency is the state agency for which the comptroller initiates payment. The paying state agency:(1) shall encourage state payees to participate in the EFTS;(2) shall act in accordance with any applicable laws and requirements;(3) may provide notice to the comptroller under Government Code, §403.016(h)(2) to request payment by warrant rather than by EFT;(4) shall obtain a written confirmation from state payees whether the intended final destination of a payment or payments is a country outside of the United States, in compliance with federal law, NACHA rules, and in accordance with comptroller policy;(5) shall not act as an originator as defined in these rules unless specifically authorized to do so by the comptroller or under law;(6) shall obtain comptroller approval for an EFTS form or an EFTS authorization created by the paying state agency before it uses the EFTS form or EFTS authorization;(7) shall comply with a comptroller request to withdraw or change an EFTS form or EFTS authorization;(8) shall post online its comptroller-approved EFTS forms and EFTS authorization, and payment information;(9) shall provide payment reconciliation assistance to state payees upon request;(10) shall provide payment information to the comptroller's statewide accounting system to facilitate the state payee's payment reconciliation, in accordance with comptroller policy;(11) shall provide reasonable advance written notice to the comptroller of a regulatory requirement related to the paying state agency's EFT processing;(12) shall obtain a written confirmation from state payees whether the intended final destination of a payment or payments is a country outside of the United States, in compliance with the law, NACHA rules, and in accordance with comptroller policy; and(13) shall report to the comptroller any state payee or state payee's beneficiary who fails to reimburse the paying state agency for any payment amount of an unsuccessful EFTS reversal, in accordance with Government Code, §403.055(f) and (g).(d) Limitation of liability.(1) Notwithstanding any provision to the contrary, the comptroller is not liable for any harm, damages, attorney's fees, or costs in connection with the EFTS, including but not limited to liability arising:(A) when a paying state agency is in noncompliance of that agency's statutes requiring mandatory EFT payment of certain payments, or fails to comply with existing law and NACHA rules;(B) from any act or omission of a paying state agency or a custodial state agency; and(C) when a paying state agency and/or a custodial state agency fail to notify the comptroller of a regulatory requirement.(2) Notwithstanding any provision to the contrary, the comptroller, the paying state agency, and custodial state agency are not liable for any harm, damages, attorney's fees, or costs in connection with the EFTS, including but not limited to the following matters:(A) arising from any act or omission of any automated clearing house, financial institution, or other person or entity;(B) arising from the consequences of a rejection of the EFT account information by the receiving depository financial institution; and(C) arising when an EFT payment is rejected or posted late, including any additional late payment interest, additional late fees or charges.",
            "sourceNote": "Source Note: The provisions of this §5.13 adopted to be effective February 23, 2015, 40 TexReg 825."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=191593&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "191593",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "B",
                "label": "PAYMENT PROCESSING--ELECTRONIC FUNDS TRANSFERS"
            },
            "rule": {
                "number": "§5.14",
                "label": "Participation in the Electronic Funds Transfer System"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213520&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "213520",
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            "ruleBody": "(a) State payee participation in electronic funds transfer system.(1) Payee disclosure of state payee EFTS account information. The state payee must establish, change, or cancel state payee EFTS account information by providing EFTS authorization to a custodial state agency.(2) EFTS forms. The state payee must obtain EFTS forms from the payee's paying state agency.(3) State payee may elect to authorize payment by EFT. A state payee may choose to receive payment by EFT by providing EFTS authorization. A state payee's choice not to provide EFTS authorization constitutes notice to the comptroller to receive payment by warrant as provided in Government Code, §403.016(h)(1).(4) Payment destination confirmation. At the time of electing to participate in the EFTS, a state payee must confirm whether payments they receive will be forwarded to a financial institution outside of the United States. A state payee must also notify the paying state agency of any change to the intended final destination of a payment or payments outside of the United States.(5) Refusal to accept an EFT payment. A state payee may refuse to accept an EFTS payment in accordance with NACHA rules.(6) Refusal of reversal. The state payee may not instruct their financial institution to reject a reversal made by the comptroller to correct an erroneous credit entry.(7) Cancellation of state payee EFTS authorization. The cancellation of a state payee's EFTS authorization terminates the state payee's participation in the ETFS until the state payee provides a new EFTS authorization.(8) Comptroller may issue warrant. The comptroller may issue a payment to a state payee by warrant in lieu of EFT pursuant to applicable law, including Government Code, §403.016(i).(b) Number of EFTS accounts. The comptroller may limit the number EFTS accounts that a state payee may designate for payment by EFTS, subject to the comptroller's policy and procedure.(c) EFTS authorization.(1) The state payee must provide EFTS authorization to establish, change, or cancel instructions for EFT payments by providing account information by:(A) submitting an EFT authorization with a state payee's agreement on a comptroller approved form; or(B) providing an agreement to a custodial state agency or a paying state agency in a manner deemed appropriate by that agency and the comptroller, and as required by law and NACHA rules.(2) Upon receipt of an EFTS authorization, the comptroller will issue a warrant to a state payee during the time when prenotification is used to verify the account information is correct.(3) A state payee may request to bypass prenotification by certifying to the custodial state agency that:(A) the state payee requests to bypass prenotification;(B) the state payee has verified the account information with the financial institution; and(C) the state payee is solely responsible for the consequences of providing erroneous account information that may result in rejection, delay, or loss of an EFTS payment.(4) The custodial state agency must provide written notification to the comptroller that the state payee has requested to bypass prenotification for EFT payments under paragraph (3) of this subsection.(5) If the state payee's financial institution rejects the state payee's account information, neither the comptroller, the custodial state agency, or the paying state agency is liable for the consequences of the rejection.(6) If the comptroller receives an EFTS authorization or other notification to cancel a state payee's account information, the state payee's participation in the EFTS terminates until the custodial state agency or the comptroller receives a new EFTS authorization from the state payee.(7) To facilitate proper EFT payments in accordance with NACHA rules or other regulations, the comptroller may change or cancel a state payee's account information without prior notice to the state payee.(8) The comptroller or custodial state agency may cancel a state payee's account information without prior notice to the state payee.(d) Credit of EFTS payments.(1) A payment is credited to a state payee EFTS account on the effective date of the credit entry regardless of when the receiving depository financial institution posts the credit.(2) If payment is rejected or posted late by the receiving depository financial institution, the comptroller, a paying state agency, or a custodial state agency are not liable for any additional late payment interest, including under Government Code, Chapter 2251, or late fees or charges, including those that may be imposed by the state payee or receiving depository financial institution.(e) EFTS initiation of reversals and reclamations.(1) Only a paying state agency may request that the comptroller initiate a reversal or reclamation.(2) A paying state agency must request a reversal or reclamation through the comptroller in the comptroller's prescribed manner.(3) A paying state agency shall not initiate a reversal for an EFTS payment initiated by the comptroller on behalf of the paying state agency.(4) A paying state agency shall not initiate a reclamation entry for an EFTS payment initiated by the comptroller on behalf of the paying state agency.(5) The comptroller may initiate a reversal for a state payroll or retirement payment or a reclamation for a retirement or benefit payment only in compliance with NACHA rules.(6) Failure to make funds available by a state payee or state payee's beneficiary for a reversal or reclamation entry initiated by the comptroller results in a debt under Government Code, §403.055.(f) Reversal.(1) Notice to comptroller. A paying state agency must submit to the comptroller a request for a reversal no later than five banking days after the effective date of the erroneous credit entry in accordance with comptroller procedures and NACHA rules.(2) A receiving depository financial institution:(A) may only accept a reversal entry from the comptroller for an erroneous credit entry initiated by the comptroller on behalf of a paying state agency; and(B) in accordance with NACHA rules, shall not act upon instructions from the state payee to reject a reversal entry.(3) Notice to state payee. A paying state agency must notify a state payee of a reversal entry no later than the effective date of the reversal in accordance with NACHA rules.(4) Unsuccessful reversal entry.(A) If the RFDI does not honor the comptroller's reversal entry, the state payee must reimburse the erroneous credit entry amount to the paying state agency.(B) If the state payee fails to reimburse the paying state agency for the erroneous credit entry amount, the state payee will owe the amount of the erroneous credit entry as a debt to the state under Government Code, §403.055.(C) A paying state agency shall report to the comptroller any state payee who fails to reimburse the paying state agency for any erroneous credit entry amounts, as required by Government Code, §403.055(f) and (g).(g) Reclamation.(1) A paying state agency must submit EFTS reclamation requests to the comptroller for processing within five business days of notification of the death or legal incapacity of the state payee or beneficiary of the state payee.(2) The comptroller may initiate a reclamation request on behalf of the paying state agency to reclaim any amounts transmitted to the state payee's account after the state payee's death or legal incapacity, or the death of a beneficiary of the state payee.(3) The comptroller must provide prior approval to allow a paying state agency to initiate a reclamation entry for a credit entry which the comptroller initiated on behalf of a paying state agency.(4) In accordance with NACHA rules, if the reclamation request is returned by the receiving depository financial institution, the comptroller may submit a written demand for payment of the reclamation request within fifteen days on behalf of the paying state agency.(5) Unsuccessful reclamation entry.(A) If the RFDI does not honor the comptroller's reclamation entry, the state payee or the state payee's beneficiary must reimburse the reclamation entry amount to the paying state agency.(B) If the state payee or the state payee's beneficiary fails to reimburse the paying state agency for the reclamation entry amount, the state payee or the state payee's beneficiary will owe the reclamation entry amount as a debt to the state under Government Code, §403.055.(C) A paying state agency shall report to the comptroller any state payee or state payee's beneficiary who fails to reimburse the paying state agency for any reclamation entry amounts, as required by Government Code, §403.055(f) and (g).",
            "sourceNote": "Source Note: The provisions of this §5.14 adopted to be effective February 23, 2015, 40 TexReg 825; amended to be effective July 31, 2018, 43 TexReg 4987."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213520&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "213520",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "B",
                "label": "PAYMENT PROCESSING--ELECTRONIC FUNDS TRANSFERS"
            },
            "rule": {
                "number": "§5.15",
                "label": "Electronic Funds Transfers - Pay Cards"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199831&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "199831",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Pay cards for state payroll, travel reimbursement, or retirement payments.(1) The comptroller may enter into a contract to offer state employee payroll, travel reimbursement, or retirement payments using pay cards, an approved type of EFTS payment under §5.12(c) of this title (relating to Processing Payments through Electronic Funds Transfers).(2) Pay cards may be issued to a state employee or annuitant to provide access to payroll, travel reimbursement, or retirement payments deposited to a designated account at a domestic financial institution.(b) Pay cards are subject to Regulation E.",
            "sourceNote": "Source Note: The provisions of this §5.15 adopted to be effective February 23, 2015, 40 TexReg 825; amended to be effective July 31, 2018, 43 TexReg 4987; amended to be effective May 18, 2023, 48 TexReg 2507."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199831&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "199831",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "C",
                "label": "CLAIMS PROCESSING--TRAVEL VOUCHERS"
            },
            "rule": {
                "number": "§5.22",
                "label": "State of Texas Travel Guidance"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=195230&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
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            "ruleBody": "(a) General travel information will be maintained on the comptroller's website. The information will include procedures, as provided in this rule, Government Code, Chapter 660, and the General Appropriations Act; examples; guidelines that will help support the travel expense reimbursement process for state agencies. Procedures, amounts, timing, limits, required documentation, permissible payees, distinctions among different types of state employees, or any other details concerning travel expense payments or reimbursements by a state agency are governed by Government Code, Chapter 660, the General Appropriations Act, and the rules adopted by the comptroller under Government Code, Chapter 660.(b) Eligible expenses. A travel expense must be incurred before it is eligible for reimbursement.(1) For lodging and transportation expenses, proof of payment must be documented to validate that the expenses were actually incurred.(2) A state employee who receives free transportation or lodging in exchange for points or other non-monetary credits has not incurred an expense for reimbursement purposes.(3) A state agency may not reimburse a state employee for any costs or expenses in excess of those incurred for official travel that result from a state employee's personal preference or convenience.(4) A state agency may not reimburse a state employee for a travel expense incurred by or on behalf of another state employee, unless:(A) the reimbursement is authorized by law; or(B) the travel expense is incurred while the paying state employee and other state employee(s) are traveling on official state business; the circumstances surrounding payment of the travel expense necessitate the reimbursement of the paying state employee; and the reimbursement of the paying state employee is approved by the state agency.(c) Erroneous processing and erroneous vouchers.(1) A state agency or a state employee may not seek reimbursement of a travel expense that the agency or employee knows or reasonably should know is not reimbursable.(2) The comptroller's omission of a particular travel expense reimbursement as erroneous during a post-payment audit does not prevent the comptroller from designating a similar reimbursement as erroneous in a subsequent audit.(d) Meal and lodging expenses.(1) A state employee may be reimbursed for meal and/or lodging expenses that are incurred on a day that the employee conducts state business. The reimbursement is limited to the rates set forth in the General Appropriations Act. The reimbursement limit applies without a carry-over from one day to another.(2) Meal and lodging expenses incurred at a duty point the night before state business begins are reimbursable.(3) Meal and lodging expenses incurred more than one night before state business begins are not reimbursable unless traveling to the duty point reasonably requires more than one day or the expenses are incurred to qualify for a discount airfare.(e) Apartment or house rental expenses.(1) An apartment or house rental expense may be reimbursed if:(A) the purpose of the rental is the conservation of state funds; and(B) the agency reasonably anticipates that the employee will be using the apartment or house while conducting state business throughout the term of the lease.(2) Application fees and other mandatory costs associated with applying for rental of the apartment or house are reimbursable.(f) Other reimbursable expenses.(1) In accordance with Government Code, §660.141, a state employee may be reimbursed for travel expenses incurred while staying extra days at a duty point to qualify for a discount airfare. Such expenses may be reimbursed only if:(A) the amount of the reimbursement plus the amount of the discount is less than the average coach airfare or the contracted airfare; and(B) the employing agency determines that the employee's absence for the extra days is not detrimental to the agency.(2) Incidental expenses.(A) Pursuant to Government Code, §660.002, a state employee or legislator is entitled to be reimbursed for incidental expenses when they are incurred for a state business reason.(B) Examples of reimbursable incidental expenses include, but are not limited to: mandatory charges or mandatory service charges; telephone calls; toll charges; parking charges; repair charges for a state-owned vehicle; postage; passport or visa charges required for foreign travel; and currency exchange fees.(C) Tips or gratuities and excess baggage charges for personal belongings are not reimbursable expenses.(3) Expenses of transportation by rented or public conveyance.(A) Pursuant to Government Code, §660.092, a state agency may pay or reimburse the expense of transporting a state employee by rented or public conveyance if the transportation is provided by a commercial transportation company as defined by Government Code, §660.002(6).(B) To be considered a commercial transportation company as defined by Government Code, §660.002(6), an entity must be covered by insurance that covers any accident or loss that occurs while transporting people or goods for pay, as required by law.(C) A commercial transportation company as defined by Government Code, §660.002(6), includes a transportation network driver.(g) Mileage.(1) Amount of mileage reimbursement.(A) The mileage reimbursement rate is established by the legislature in the General Appropriations Act.(B) With the exception of tolls and parking expenses, the mileage reimbursement rate is inclusive of all expenses associated with the operation of the employee's personal vehicle.(2) Determination of reimbursable mileage.(A) The number of miles traveled by an employee for state business may be determined by point-to-point itemization.(B) Point-to-point mileage may be documented by an employee's vehicle odometer reading or by the readily available electronic mapping service selected under subparagraph (C) of this paragraph by the employee's agency, institution of higher education, or other entity required to comply with Government Code, Chapter 660.(C) Each agency, institution of higher education, or other entity required to comply with Government Code, Chapter 660, must select no more than one readily available electronic mapping service for use by its employees and must adopt the service by internal policy.(h) Travel advance accounts.(1) A state agency may establish an account for advancing funds to a state employee for the employee's projected travel expenses.(2) A state agency that declines to establish a travel advance account may not make travel advances.(3) A travel advance account may not be used for any purpose other than to make travel advances.(4) A state agency may not issue a travel advance to:(A) a prospective state employee;(B) an employee of another state agency unless the employee will be providing services to the agency issuing the travel advance; or(C) a person who is not a state employee, including a commercial transportation company, a commercial lodging establishment, a credit card issuer, and a travel agency.(5) The comptroller may not reimburse the travel advance account of a state agency for a travel advance to a state employee who at the time of the advance had been properly reported to the comptroller as being indebted to the state.(6) Under and over advances.(A) If a state employee received a travel advance that is less than the reimbursable expenses incurred, the employing state agency may reimburse the employee for the difference.(B) If an employee received a travel advance that is greater than the reimbursable expenses incurred, then the employee shall promptly reimburse the account for the difference.(7) A travel advance account may not be reimbursed for a travel expense that would not have been reimbursed if the account had not been used.(i) Voucher and documentation requirements.(1) The comptroller requires supporting information and/or documentation to be included on a voucher prior to submission for payment.(2) Supporting documentation must be sufficient to detail the expenses claimed. Supporting documentation requirements apply to a travel expense that is paid directly and to a travel expense reimbursement made by an agency. The information or documentation required changes periodically; however, it generally includes the following: documentation of employee's headquarters, required itemizations, purpose of trip, and required receipts.(j) Audits conducted by the comptroller.(1) Under Government Code, §660.028, the comptroller is required to periodically audit travel vouchers submitted for payment either before or after the comptroller issues a warrant or initiates an electronic funds transfer in response to the voucher. These audits and examinations assist the comptroller's office in determining whether:(A) the expenses were reasonable and necessary;(B) the purpose of travel clearly involved state business and was consistent with the agency's legal authority;(C) the travel conducted and expenses incurred complied with the Travel Regulations Act, comptroller rules, travel provisions of the General Appropriations Act, the comptroller's Statewide Procurement Division contract requirements, and policies and procedures adopted by the comptroller's office; and(D) the number of individuals traveling for the same or a similar purpose was necessary to perform state business.(2) The comptroller may question the fiscal responsibility of a payment even if it is technically legal.",
            "sourceNote": "Source Note: The provisions of this §5.22 adopted to be effective September 9, 2008, 33 TexReg 7566; amended to be effective March 14, 2010, 35 TexReg 2017; amended to be effective October 26, 2015, 40 TexReg 7428; amended to be effective June 25, 2020, 45 TexReg 4218."
        },
        {
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            "currentRecordId": "195230",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "D",
                "label": "CLAIMS PROCESSING--PAYROLL"
            },
            "rule": {
                "number": "§5.37",
                "label": "Deferred Compensation Contracts"
            },
            "nextRule": {
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                "recordId": "205189",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) State agency--Has the meaning assigned by Government Code, §659.262(a).(2) Classified employee--A state employee who is employed in a position that is classified under Government Code, Chapter 654, and is identified by the chief administrator of a state agency as essential for the state agency's operations.(3) Deferred compensation contract--A contract entered into between a state agency and a classified employee under Government Code, §659.262(c).(b) A state agency shall not enter into a deferred compensation contract with a classified employee while another deferred compensation contract with that same classified employee is in effect. A deferred compensation contract is in effect during the 12-month period of service required by Government Code, §659.262(c).",
            "sourceNote": "Source Note: The provisions of this §5.37 adopted to be effective May 19, 2019, 44 TexReg 2362."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205189&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "205189",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "D",
                "label": "CLAIMS PROCESSING--PAYROLL"
            },
            "rule": {
                "number": "§5.39",
                "label": "Hazardous Duty Pay"
            },
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                "recordId": "227552",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Calendar month--The period from the first day through the last day of January, February, March, April, May, June, July, August, September, October, November, or December.(2) Classified position--A position included in the position classification plan in the General Appropriations Act, Article IX.(3) Correctional officer--An employee in a job class designated by TDCJ as a correctional officer holding a hazardous duty position.(4) Day--The 24 consecutive hour period beginning at 12:00 midnight and ending at 11:59 p.m.(5) Full-time state employee--Has the meaning assigned by Government Code, §659.301(1).(6) Hazardous duty position--A position in the service of the state that:(A) renders any individual holding that position a \"state employee,\" as defined in paragraph (11) of this subsection; or(B) requires the performance of hazardous duty.(7) Lifetime service credit--The number of months that an individual has served in a hazardous duty position during the individual's lifetime.(8) Part-time state employee--Has the meaning assigned by Government Code, §659.301(4).(9) Regular hours--The number of hours an individual actually works during a month.(10) Standard hours--The total number of hours that an individual would work during a month if the individual worked exactly eight hours during each workday of that month.(11) State employee--An individual who is a state employee under subsection (b)(1)(A) or (b)(2)(A) of this section.(12) TABC--The Texas Alcoholic Beverage Commission.(13) TDCJ--The Texas Department of Criminal Justice.(14) TJJD--The Texas Juvenile Justice Department.(15) TPWD--The Texas Parks and Wildlife Department.(16) Type 1 grandfathered employee--A state employee whose compensation for services provided to the state during any month before August 1987, included hazardous duty pay that was based on total state service performed before May 29, 1987.(17) Type 2 grandfathered employee--An individual who is entitled to receive hazardous duty pay under subsection (g) of this section.(18) Workday--Has the meaning assigned by Government Code, §659.301(6).(b) Receiving hazardous duty pay.(1) Individuals not employed by TJJD.(A) In this paragraph, \"state employee\" has the meaning assigned by Government Code, §659.301(5).(B) Hazardous duty pay may not be paid to an individual who does not satisfy both of the criteria in Government Code, §659.302(a), except as provided in subsection (g) of this section, concerning type 2 grandfathered employees.(C) An individual's ceasing to be a state employee sometime during a month does not affect the individual's hazardous duty pay entitlement for that month. The full amount of hazardous duty pay must be paid to the individual.(D) For purposes of Government Code, §659.302(a)(2), the 12 months of lifetime service credit are not required to be 12 continuous months.(E) This paragraph does not apply to an individual employed by TJJD.(2) Individuals employed by TJJD.(A) In this paragraph, \"state employee\" means an individual who:(i) has routine direct contact with youth:(I) placed in a residential facility of TJJD; or(II) released under TJJD's supervision; or(ii) is an investigator, inspector general, security officer, or apprehension specialist employed by TJJD's office of the inspector general.(B) Except as provided in Government Code, §659.303, TJJD may include hazardous duty pay in the compensation paid to an individual for services rendered during a month if the individual:(i) is a state employee for any portion of the first workday of the month; and(ii) has completed at least 12 months of lifetime service credit not later than the last day of the preceding month.(C) Hazardous duty pay may not be paid to an individual who does not satisfy both of the criteria in subparagraph (B) of this paragraph.(D) An individual's ceasing to be a state employee sometime during a month does not affect the individual's hazardous duty pay eligibility for that month.(E) For purposes of subparagraph (B)(ii) of this paragraph, the 12 months of lifetime service credit are not required to be 12 continuous months.(F) This paragraph applies only to an individual employed by TJJD.(c) Amount of hazardous duty pay.(1) Monthly amount for individuals employed by TJJD.(A) The amount of hazardous duty pay that TJJD pays monthly to a full-time state employee must be expressed in terms of a specific dollar amount for each 12-month period of lifetime service credit and, for type 1 grandfathered employees, for each 12-month period of state service credit. The amount must be the same for each type of service credit.(B) The amount of hazardous duty pay that TJJD pays monthly to a full-time state employee may not exceed $10 for each 12-month period of lifetime service credit accrued by the employee.(C) In this paragraph, \"state employee\" has the meaning assigned by subsection (b)(2)(A) of this section.(D) This paragraph applies only to an individual employed by TJJD.(2) Part-time state employees.(A) The amount of a part-time state employee's hazardous duty pay is equal to the product of:(i) the amount of hazardous duty pay that the employee would receive if the employee were a full-time state employee; and(ii) a quotient:(I) the numerator of which is equal to the number of hours the employee normally works each week, not to exceed 40; and(II) the denominator of which is equal to 40.(B) For purposes of subparagraph (A)(ii)(I) of this paragraph, the number of hours that a part-time state employee normally works each week during a particular month is equal to the number of hours that the employee is scheduled to work each week as of the first workday of that month.(3) Hourly state employees. The amount of an hourly state employee's hazardous duty pay for a particular month is equal to the product of:(A) the amount of hazardous duty pay that the employee would receive if the employee were a full-time state employee; and(B) a quotient:(i) the numerator of which is equal to the number of regular hours for the employee for that month, not to exceed the number of standard hours for that month; and(ii) the denominator of which is equal to the number of standard hours for that month.(4) Correctional officers of TDCJ.(A) The amount of hazardous duty pay for a particular month for a full-time correctional officer employed by TDCJ is the lesser of:(i) $12 for each 12-month period of lifetime service credit accrued by the employee; or(ii) $300.(B) The amount of hazardous duty pay that TDCJ pays a part-time correctional officer is equal to the product of:(i) the amount of hazardous duty pay that the employee would receive if the employee were a full-time correctional officer; and(ii) a quotient:(I) the numerator of which is equal to the number of hours the employee normally works each week, not to exceed 40; and(II) the denominator of which is equal to 40.(C) The amount of hazardous duty pay that TDCJ pays an hourly correctional officer is equal to the product of:(i) the amount of hazardous duty pay that the employee would receive if the employee were a full-time correctional officer; and(ii) a quotient:(I) the numerator of which is equal to the number of regular hours for the employee for that month, not to exceed the number of standard hours for that month; and(II) the denominator of which is equal to the number of standard hours for that month.(d) Timing for payment of hazardous duty pay.(1) Employees paid once each month.(A) This paragraph applies to a state employee only if the employee is normally paid once each month.(B) Any hazardous duty pay that is included in the compensation earned by a state employee during a particular month must be paid in its entirety at the same time the compensation is paid to the employee.(2) Employees paid twice each month.(A) This paragraph applies to a state employee only if the employee is normally paid twice each month.(B) Any hazardous duty pay that is included in the compensation earned by a state employee during a particular month must be paid in its entirety at the same time that the compensation earned by the employee during the first half of the month is paid to the employee.(3) Employees paid once every two weeks.(A) This paragraph applies to a state employee only if the employee is normally paid once every two weeks.(B) The hazardous duty pay that is included in the compensation earned by a state employee during a particular month must be paid in its entirety on the pay day that is closest to the date that a monthly employee is paid the compensation earned by the employee during that month.(e) Lifetime service credit.(1) Accrual. An individual accrues lifetime service credit for the period the individual holds a hazardous duty position. However, an individual who is on leave without pay for a full calendar month does not accrue lifetime service credit for the month.(2) Amount. The amount of an individual's lifetime service credit at any particular time is equal to the number of months that have elapsed since the individual's effective service date. A month begins on the same day each month as the effective service date and ends on the day before that day during the next month, regardless of how many days are included in the month.(3) Effective service date.(A) An individual's \"effective service date\" is used to determine the amount of the individual's lifetime service credit for the purpose of hazardous duty pay.(B) \"Effective service date\" is determined by completing the following steps:(i) adding together all days the individual was employed in a hazardous duty position in all previous periods of employment with the state;(ii) counting backward from the first day of the individual's current continuous employment with the state in a hazardous duty position using the total number of days calculated in clause (i) of this subparagraph; and(iii) counting forward the number of months in which the individual was on leave without pay for any full calendar month during all periods of employment in a hazardous duty position using the date calculated in clause (ii) of this subparagraph.(C) An example of determining a state employee's effective service date is as follows: The employee's first day of employment at your agency is February 5, 2021. The employee was previously employed in a hazardous duty position from October 8, 2011 to August 31, 2017, or 2,155 days. During that employment, the employee had one period of leave without pay from December 7, 2015 to February 2, 2016, for a total of one full calendar month of leave without pay. To determine the employee's effective service date, first count backwards 2,155 days from February 5, 2021 to arrive at March 15, 2015. Then count forward one month (the number of months in which the individual was on leave without pay for any full calendar month during all periods of employment in a hazardous duty position) from March 15, 2015 to arrive at April 15, 2015, which is the employee's effective service date.(D) An individual accrues one full day of credit for any part of a day the individual is employed in a hazardous duty position.(4) Transfers. For the purposes of paragraph (3) of this subsection, an individual's transfer from one state agency to another does not interrupt continuity of employment if no workdays occur between the two employments.(f) Exceptions for type 1 grandfathered employees.(1) State service credit. For purposes of this subsection, the amount of an individual's state service credit equals the sum of:(A) the amount of the individual's lifetime service credit; and(B) the number of months during the individual's lifetime that the individual has provided services to the state in a position that is not a hazardous duty position.(2) Applicability of other subsections. Subsections (a) - (e) of this section apply to a type 1 grandfathered employee except as provided in this subsection.(3) Amount for non-hourly employees.(A) The amount of hazardous duty pay for a type 1 grandfathered employee who is not hourly and who is not employed by TJJD is equal to the sum of:(i) $10 for each 12-month period of state service credit the employee finished accruing before May 29, 1987; and(ii) $10 for each 12-month period of lifetime service credit that is accrued after the date, which must be before May 29, 1987, on which the employee finished accruing the last 12-month period of state service credit.(B) The amount of hazardous duty pay for a type 1 grandfathered employee who is not hourly and who is employed by TJJD is equal to the sum of:(i) the dollar amount specified by TJJD under subsection (c)(2) of this section for each 12-month period of state service credit the employee finished accruing before May 29, 1987; and(ii) the dollar amount specified by TJJD under subsection (c)(2) of this section for each 12-month period of lifetime service credit that is accrued after the date, which must be before May 29, 1987, on which the employee finished accruing the last 12-month period of state service credit.(4) Amount for hourly employees. The amount of hazardous duty pay for an hourly type 1 grandfathered employee is equal to the product of:(A) the amount calculated under paragraph (3) of this subsection; and(B) a quotient:(i) the numerator of which is equal to the number of regular hours for the employee for that month, not to exceed the number of standard hours for that month; and(ii) the denominator of which is equal to the number of standard hours for that month.(5) Limitation. A type 1 grandfathered employee may not receive more than $10 for each 12-month period of state service credit or lifetime service credit, regardless of the number of positions the employee holds or the number of hours the employee works each week.(g) Exceptions for type 2 grandfathered employees.(1) Applicability of other subsections. Subsections (a) - (e) of this section apply to a type 2 grandfathered employee as if the employee were a state employee, except as provided in this subsection.(2) Entitlement for certain TPWD personnel. Hazardous duty pay must be included in the compensation paid for services rendered to the state during a month by an individual who:(A) is not a state employee on the first workday of that month;(B) is one of the commissioned law enforcement personnel of TPWD for any portion of the first workday of that month; and(C) on May 29, 1987, was receiving or was entitled to receive hazardous duty pay because the individual on that date was one of the commissioned law enforcement personnel of TPWD.(3) Entitlement for certain employees of TDCJ. Hazardous duty pay must be included in the compensation paid for services rendered to the state during a month by an individual who:(A) is not a state employee on the first workday of that month;(B) holds any of the following positions with TDCJ for any portion of the first workday of that month:(i) correctional officer I through warden;(ii) a position that requires the individual to work on a unit and have routine direct contact with inmates, e.g., farm manager, livestock supervisor, maintenance foreman, shop foreman, medical assistant, food service supervisor, steward, education consultant, commodity specialist, correctional counselor;(iii) a position assigned to an administrative office and requiring routine direct contact with inmates, e.g., investigator, compliance monitor, an accountant routinely required to audit unit operations, sociologist, interviewer, classification officer, supervising counselor;(iv) a position that requires the individual to respond to emergency situations involving inmates, e.g., director, deputy director, assistant director, administrative duty offices, except that not more than 25 administrative duty officers may qualify under this clause;(v) a position that requires the individual to work within the prison compound or have daily contact with inmates, except that not more than 500 individuals may qualify under this clause; or(vi) warden I or II, assistant warden, major of correctional officers, captain of correctional officers, lieutenant of correctional officers, sergeant of correctional officers, or correctional officer I, II, or III; and(C) on May 29, 1987, was receiving or was eligible to receive hazardous duty pay because the individual on that date held a position with the Texas Department of Corrections that is listed in subparagraph (B) of this paragraph.(4) Entitlement for certain employees of TABC. Hazardous duty pay must be included in the compensation paid for services rendered to the state during a month by an individual who:(A) is not a state employee on the first workday of that month;(B) holds any of the following positions with TABC for any portion of the first workday of that month:(i) chief or assistant chief of enforcement and marketing practices;(ii) district supervisor or assistant district supervisor;(iii) senior agent or agent I, II, or III;(iv) port of entry supervisor or port of entry inspector I or II;(v) supervising auditor I or II or auditor I, II, or III;(vi) assistant director of auditing and tax reporting; or(vii) senior tax auditor; and(C) on May 29, 1987, was receiving or was eligible or entitled to receive hazardous duty pay because the individual on that date:(i) held a position with TABC that is listed in subparagraph (B)(i) - (iii) of this paragraph; or(ii) both:(I) held a position with TABC that is listed in subparagraph (B)(iv) - (vii) of this paragraph; and(II) was receiving hazardous duty pay on August 31, 1981, because the individual on that date was engaged in full time law enforcement work while holding any of the following classified positions:(-a-) supervisor tax collector;(-b-) tax collector I or II;(-c-) district supervisor;(-d-) chief or assistant chief, enforcement division;(-e-) assistant district supervisor;(-f-) inspector I or II;(-g-) supervising auditor I;(-h-) auditor I, II, or III;(-i-) supervisor or assistant supervisor, marketing practices;(-j-) special project director;(-k-) director of auditing; or(-l-) assistant director of auditing.",
            "sourceNote": "Source Note: The provisions of this §5.39 adopted to be effective September 28, 2004, 29 TexReg 9202; amended to be effective February 16, 2006, 31 TexReg 857; amended to be effective February 17, 2008, 33 TexReg 1119; amended to be effective June 2, 2021, 46 TexReg 3417."
        },
        {
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            "currentRecordId": "227552",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "D",
                "label": "CLAIMS PROCESSING--PAYROLL"
            },
            "rule": {
                "number": "§5.40",
                "label": "Overpayments and Underpayments of Compensation"
            },
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                "recordId": "227553",
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) \"Community college\"--Has the meaning assigned to \"public junior college.\"(2) \"Comptroller\"--The Comptroller of Public Accounts for the State of Texas.(3) \"Institution of higher education\"--Has the meaning assigned by Education Code, §61.003, except that the term does not include a public junior college or a community college.(4) \"Public junior college\"--Has the meaning assigned by Education Code, §61.003.(b) Recovering overpayments of compensation.(1) Special definitions. The following words and terms, when used in this subsection, shall have the following meanings, unless the context clearly indicates otherwise.(A) \"CAPPS\"--The centralized accounting, payroll and personnel system maintained by the comptroller or a version held elsewhere as authorized by the comptroller. The payroll and personnel components are used by state agencies that use CAPPS as their internal system and it submits personnel and payroll information to SPRS.(B) \"Compensation\"--Has the meaning assigned by Government Code, §666.001(1). The term:(i) includes any type of bonus or performance reward; and(ii) does not include a workers' compensation payment.(C) \"Comptroller object code\"--The four-digit code that indicates in USAS the type of expenditure made.(D) \"Deduction\"--A deduction of the amount of a state employee's indebtedness from any amount of compensation that a state agency owes the employee or the employee's successor.(E) \"Fiscal year\"--The accounting period beginning on September 1st and ending the following August 31st.(F) \"HRIS\"--The human resource information system.(G) \"Indebtedness\"--Money that a state employee owes a state agency because the employee received an overpayment of compensation from the agency.(H) \"Overpayment of compensation\"--Compensation paid to a state employee that exceeds the amount the employee was eligible to receive under law because at the time the compensation was paid:(i) the employee was ineligible to receive all or a portion of the amount paid; or(ii) the employee's eligibility to receive all or a portion of the amount paid was conditioned on the occurrence of an event that did not occur or the employee's fulfillment of a promise that the employee did not fulfill.(I) \"Reduction\"--A reduction in the gross amount of base salary or wages that a state agency owes a state employee or the employee's successor for services provided by the employee during any pay period after the pay period in which the indebtedness was incurred.(J) \"SPRS\"--The standardized payroll/personnel reporting system.(K) \"State agency\"--Has the meaning assigned by Government Code, §666.001(3).(L) \"State employee\"--Has the meaning assigned by Government Code, §666.001(4).(M) \"Successor\"--Has the meaning assigned by Government Code, §666.001(5).(N) \"USAS\"--The uniform statewide accounting system.(2) Exclusive authority to recover indebtedness.(A) The comptroller has exclusive authority to recover an indebtedness if the comptroller is responsible under Government Code, §§404.046, 404.069, or 2103.003 for paying compensation to the employee or successor on behalf of a state agency. For example, if a payment of compensation is processed through USAS, then the comptroller has exclusive authority to recover the indebtedness.(B) If the comptroller is not responsible under Government Code, §§404.046, 404.069, or 2103.003 for paying compensation to the employee or successor on behalf of a state agency, then only the agency that pays compensation to the employee or successor may recover the indebtedness. For example, a state agency that issues a check to pay the compensation of a state employee has exclusive authority to recover the indebtedness.(3) General preconditions for the comptroller recovering an indebtedness.(A) This paragraph applies only to the recovery of an indebtedness by deduction or reduction.(B) A state agency's request for the comptroller to recover an indebtedness is invalid unless the request complies with any applicable requirements of HRIS, SPRS, USAS, and CAPPS.(C) A state agency's request to the comptroller to recover an indebtedness constitutes the agency's certification to the comptroller that the agency already has:(i) provided proper notice to the employee or successor according to paragraph (4) of this subsection; and(ii) complied with Government Code, §666.005(a).(D) A state agency may avoid making the certifications listed in subparagraph (C) of this paragraph only if the agency does not request the comptroller to recover the indebtedness.(4) Notice requirements. A state agency's notice to a state employee or the employee's successor is \"proper\" for purposes of recovering an indebtedness only if the notice:(A) complies with Government Code, §666.003(b)(1)-(3); and(B) reasonably describes the method by which the indebtedness may be recovered if the indebtedness is not paid on or before the date specified.(5) Calculating the hourly rate for the recovery of an indebtedness. This paragraph applies only if an indebtedness resulted from a state agency believing that a state employee worked more hours than the employee actually worked. When the agency calculates the amount of a deduction or a reduction, the agency shall use the hourly rate of pay that was in effect during the payroll period the hours were worked.(6) Effect of the recovery of an indebtedness on payroll deductions. If a deduction (other than the deduction described in this subsection) was made from an overpayment of compensation at the time the overpayment occurred, then a refund of that deduction must be made in conjunction with the recovery of that overpayment. For example, the amount deducted to make a retirement contribution or to comply with the Federal Insurance Contributions Act must be refunded when the overpayment is recovered.(7) Timing of a deduction. A deduction may be made from any payment of compensation and may be made more often than once monthly.(8) Sufficiency of compensation to support a deduction.(A) If the amount of a state employee's compensation is insufficient to support a deduction after all other deductions with a higher priority have been made, then a portion of the deduction must be made. The amount of the deduction that could not be made must be deducted in succeeding payroll periods until the full amount is deducted.(B) This subparagraph applies to a state employee who has agreed to pay an indebtedness through deduction but under an installment plan. The amount that could not be deducted in a payroll period because of insufficient compensation must be added to the amount of the regularly scheduled installment in the next payroll period.(9) Sufficiency of base salary or wages to support a reduction.(A) If the amount of a state employee's base salary or wages is insufficient to support a reduction, then a portion of the reduction must be made. The amount of the reduction that could not be made must be subtracted from gross salary or wages in succeeding payroll periods until the full amount of the reduction is realized.(B) This subparagraph applies to a state employee who has agreed to pay an indebtedness through a reduction but under an installment plan. The amount of the reduction that could not occur in a payroll period because of insufficient base salary or wages must be added to the amount of the regularly scheduled installment in the next payroll period.(10) Reimbursement of accounts and funds in the state treasury.(A) This paragraph applies only to a state agency that:(i) directly used money in the state treasury to make an overpayment of compensation; or(ii) initially used local money controlled by the agency to make an overpayment of compensation and then was reimbursed for that overpayment with money in the state treasury.(B) A state agency that recovers an indebtedness must reimburse the appropriate account or fund in the state treasury. The agency must credit that reimbursement to the comptroller object code that corresponds to the type of compensation recovered, e.g., salary, benefit replacement pay, longevity pay. The reimbursement must be credited to the same fiscal year that was charged for the overpayment. If the fiscal year already has closed, then the agency must first deposit the reimbursement in a suspense account and then manually adjust the appropriate accounts.(C) For purposes of this paragraph, \"state treasury\" means money that may be spent only on a warrant issued or electronic funds transfer initiated by the comptroller.(11) Adjustments to payroll accumulators. A state agency that recovers an indebtedness shall adjust all relevant payroll accumulators, including agency paid taxes, employee paid taxes, and limits on benefit replacement pay and deferred compensation. The agency shall maintain sufficient records about these adjustments to prove compliance with state and federal laws and to support an audit.(12) Terminations or interagency transfers of state employees. A deduction or a reduction that started while a state employee was employed by a state agency may not continue after the employee transfers to a different state agency. The amount of overpaid compensation that remains outstanding after the transfer may not be recovered through deduction or reduction.(c) Correcting underpayments of compensation.(1) Special definitions. The following words and terms, when used in this subsection, shall have the following meanings, unless the context clearly indicates otherwise.(A) \"Casual or task employee\" means an individual who is employed by an institution of higher education for a short period or a particular task.(B) \"State agency\"--A department, board, commission, committee, council, agency, office, or other entity in the executive, legislative, or judicial branch of Texas state government, the jurisdiction of which is not limited to a geographical portion of this state. The term includes the State Bar of Texas, the Board of Law Examiners, and an institution of higher education.(C) \"State employee\"--Includes a state officer, a casual or task employee, and an individual whose employment with a state agency is conditional on the individual being a student.(2) Quality control measures. Each state agency must ensure that its internal operating procedures include quality control measures that will detect any underpayment of compensation to a state employee.(3) Deadline for correcting underpayments.(A) Except as provided in subparagraph (B) or (C) of this paragraph, a state agency shall correct an underpayment of compensation for a particular pay period not later than the following pay period.(B) A state agency shall promptly process a supplemental payroll to correct an underpayment of compensation to a state employee if delaying the correction would cause employee hardship.(C) This subparagraph applies when a state agency does not detect an underpayment of compensation in time to correct it during the pay period following the pay period for which the underpayment occurred. The agency shall promptly correct the underpayment through a supplemental payroll.(4) Choosing the hourly rate for the correction. This paragraph applies only if an underpayment of compensation resulted from a state agency believing that a state employee worked fewer hours than the employee actually worked. The agency shall calculate the amount of the correction by using the hourly rate of pay that was in effect during the payroll period the hours were worked.(5) Adjustments to payroll accumulators. A state agency that corrects an underpayment of compensation shall adjust all relevant payroll accumulators, including agency paid taxes, employee paid taxes, and limits on benefit replacement pay and deferred compensation. The agency shall maintain sufficient records about these adjustments to prove compliance with state and federal laws and to support an audit.",
            "sourceNote": "Source Note: The provisions of this §5.40 adopted to\r\nbe effective September 28, 2004, 29 TexReg 9203; amended to be effective\r\nFebruary 17, 2026, 51 TexReg 958."
        },
        {
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            "currentRecordId": "227553",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "D",
                "label": "CLAIMS PROCESSING--PAYROLL"
            },
            "rule": {
                "number": "§5.41",
                "label": "Payroll Requirements"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Calendar month--The period from the first day through the last day of January, February, March, April, May, June, July, August, September, October, November or December.(2) CAPPS--The centralized accounting, payroll and personnel system maintained by the comptroller or a version held elsewhere as authorized by the comptroller. The payroll and personnel components are used by state agencies that use CAPPS as their internal system and it submits personnel and payroll information to SPRS.(3) Casual or task employee--An individual who is employed by an institution of higher education for a short time period or a specific task.(4) \"Comptroller\"--The Comptroller of Public Accounts for the State of Texas.(5) FLSA--The Fair Labor Standards Act of 1938.(6) GAA--The General Appropriations Act.(7) HRIS--The human resource information system maintained by the comptroller. It captures personnel and payroll information submitted by institutions of higher education and locally funded agencies. (8) Institution of higher education--Has the meaning assigned by Education Code, §61.003, except that the term does not include a public junior college.(9) Locally funded agencies--State agencies whose funds are held in banks outside of the state treasury department.(10) Payroll document--The type of document that a state agency submits to the comptroller in the required format when requesting payment of the compensation of state employees or certain other types of payments as required by the comptroller.(11) Payroll information--Information concerning the type and amount of compensation earned by a state employee, deductions from the compensation earned by the employee, and the source of funding for the payment of compensation to the employee. The term includes other types of information that the comptroller requires to be reported as payroll information.(12) Personnel information--Information about a state employee's job, compensation, or personal characteristics. The term includes other types of information that the comptroller requires to be reported as personnel information. Personnel information includes all information related to the individual as an employee and must support statewide reporting, such as for military employment preference and Equal Employment Opportunity type information.(13) Qualified deferred compensation plan--A deferred compensation plan that is governed by Internal Revenue Code of 1986, §401(k). (14) SPRS--The standardized payroll/personnel system maintained by the comptroller. It captures personnel and payroll information submitted by state agencies that report their data to SPRS.(15) State agency--A department, board, commission, committee, council, agency, office, or other entity in the executive, legislative, or judicial branch of Texas state government, the jurisdiction of which is not limited to a geographical portion of this state. The term includes the State Bar of Texas, the Board of Law Examiners, and an institution of higher education.(16) State employee--An officer or employee of a state agency. The term includes an elected or appointed officer; a full-time or part-time employee or officer; an hourly employee; a temporary state employee; a casual or task employee; an individual whose employment with a state agency is conditional on the individual being a student; a line item exempt employee; or an employee not covered by the Position Classification Act; an employee that works in a nonacademic position at a state institution of higher education and any other individual to whom wages are paid by a state agency or institution of higher education.(17) USAS--The uniform statewide accounting system maintained by the Comptroller of Public Accounts. It is the official accounting system for the State of Texas.(18) USAS format--The USAS layout that a state agency uses to submit payroll documents to the comptroller.(19) Workday--Any day except Saturday and Sunday. The term includes a state or national holiday under GAA or Government Code, §§662.001 - 662.010.(b) Required submission of payroll documents.(1) A state agency must submit a payroll document to the comptroller if the agency is requesting reimbursement for the agency's payment of compensation to its employees. The payroll document must be in proper USAS format.(2) A state agency may electronically submit a payroll detail to the comptroller according to the comptroller's requirements. (c) Deadline for receipt of payroll documents.(1) Generally. Except as provided in paragraph (2) of this subsection, a payroll document must be received by the comptroller, according to the comptroller's requirements, not later than the seventh workday before payday. This applies regardless of how often a state agency pays its employees.(2) Exceptions.(A) If a state agency wants to pick up its warrants before payday under a bailment contract the agency has executed with the comptroller, then the agency's payroll document must be received not later than one workday before the day on which the agency wants to pick up the warrants.(B) A payroll document that is submitted by a state agency that uses CAPPS or reports to SPRS must be received by the comptroller, according to the comptroller's requirements, not later than the fourth workday before payday to ensure direct deposit of net pay.(d) Supplemental payroll documents.(1) When allowed. A state agency may submit a supplemental payroll document to the comptroller if a change occurs between the agency's submission of its regular payroll document and the end of the month.(2) Adjustments in compensation. When a change results in a state agency owing money to a state employee, the agency should adjust the employee's compensation for the following month instead of submitting a supplemental payroll if the delay would not cause hardship to the employee.(e) Non-regular payments. A state agency may make a payment to a state employee for other than the employee's regular compensation on a regular payroll document. The agency must select the proper comptroller object code for the payment.(f) Cancellations of payments of compensation.(1) Cancellations of warrants. When a state agency needs to cancel a payroll warrant, the agency must follow the comptroller's warrant cancellation procedures.(2) Cancellation of electronic funds transfers. When a state agency needs to cancel a payment of compensation via the comptroller's electronic funds transfer system, the agency must follow the procedures specified by the comptroller.(3) Issuance of new warrants. When a state agency needs to issue a new payroll warrant after canceling the original payroll warrant, the agency must follow the comptroller's procedures for supplemental payrolls.(g) Payroll conversions. In early September of each year, state agencies that are subject to the Position Classification Act must furnish payroll conversion information to the comptroller and the state auditor according to their guidelines. Although the comptroller sends the guidelines to each state agency once each year, the guidelines are always available from the comptroller upon request.(h) Reporting of personnel information to HRIS.(1) Applicability. This subsection applies to a state agency only if it does not use CAPPS or report to SPRS.(2) Reporting requirements.(A) A state agency shall report personnel information to HRIS if:(i) a state employee is added to or removed from the agency's payroll;(ii) the agency changes a state employee's compensation rate;(iii) the agency changes a state employee's classification or job title;(iv) the legal name of a state employee of the agency changes;(v) the social security number of a state employee of the agency changes;(vi) a state employee of the agency goes on leave without pay or faculty development leave;(vii) the home address of a state employee of the agency changes;(viii) deduction information concerning a state employee of the agency changes, if HRIS requires reporting of that information; or(ix) other job or descriptive information concerning a state employee of the agency changes, if HRIS requires reporting of that information.(B) A state agency shall ensure that HRIS receives its report not later than the seventh day of the month after the month in which the change or event occurs that triggers the requirement for the agency to file the report.(C) A report to HRIS under this paragraph must be made in the manner, frequency, and form required by the comptroller.(i) Reporting of payroll information to HRIS.(1) Applicability. This subsection applies to:(A) an institution of higher education that does not use CAPPS or report to SPRS;(B) the State Bar of Texas; and(C) the Board of Law Examiners.(2) Reporting requirements.(A) A state agency shall report payroll information to HRIS.(B) A state agency's report of payroll information must be complete not later than the seventh day of the month following the month covered by the report. A report is complete only if:(i) it encompasses all the pay periods that end in the month covered by the report; and(ii) HRIS receives it by the deadline.(C) A report to HRIS under this paragraph must be made in the manner, frequency, and form required by the comptroller.(j) Reporting errors. If the comptroller detects an error in a state agency's report of personnel or payroll information, then the comptroller shall provide a description of the error to the agency. The agency shall then correct the error according to the comptroller's requirements. The agency must correct the error not later than the seventh day of the month following the month in which the agency receives a description of the error.(k) Additional mail codes. A state agency may establish an additional mail code for a state employee only by submitting the proper application to the comptroller's Fiscal Management division.(l) Reporting of personnel information to CAPPS or SPRS.(1) Applicability. This subsection applies to a state agency only if it does not report to HRIS.(2) Reporting requirements.(A) A state agency shall be considered to have reported personnel information to CAPPS or SPRS if:(i) a state employee is added to or removed from the agency's payroll;(ii) the agency changes a state employee's compensation rate;(iii) the agency changes a state employee's classification or job title;(iv) the legal name of a state employee of the agency changes;(v) the social security number of a state employee of the agency changes;(vi) a state employee of the agency goes on leave without pay or faculty development leave;(vii) the home address of a state employee of the agency changes;(viii) deduction information concerning a state employee of the agency changes; or(ix) other job or descriptive information concerning a state employee of the agency changes.(B) A state agency must ensure that the information is provided in the manner, frequency, and form required by the comptroller. (m) Reporting of payroll information to CAPPS or SPRS.(1) Applicability. This subsection applies to a state agency that does not report to HRIS.(2) Reporting requirements.(A) A state agency shall be considered to have reported payroll information to CAPPS or SPRS if the agency successfully completes the processing of payroll information.(B) A state agency's report of payroll information must include any payments of regular salary, twice monthly salary, overtime pay, longevity, benefit replacement pay, lump sum payment of unused vacation and sick leave, emoluments and special pays such as bilingual or fire brigade pay. A report is complete only if:(i) it encompasses all the pay periods that end in the month covered by the report; and(ii) the comptroller receives it by the deadline.(C) Payroll information under this paragraph must be processed in the manner, frequency, and form required by the comptroller. (D) Reporting errors. If the comptroller detects an error in a state agency's report of personnel or payroll information, then the comptroller shall provide a description of the error to the agency. The agency shall then correct the error according to the comptroller's requirements.(n) Standard payroll calculation.(1) Exemption. This subsection does not apply to an institution of higher education.(2) Required use of CAPPS.(A) Except as provided in subparagraph (B) of this paragraph, a state agency must use CAPPS to:(i) calculate and otherwise generate the agency's payments of compensation to its state employees; and(ii) maintain the agency's personnel and payroll information.(B) A state agency is not subject to subparagraph (A) of this paragraph if the comptroller has allowed the agency to report to SPRS.(3) Conforming to payroll calculation. A state agency must conform its payroll calculation with the payroll calculation set forth in comptroller policies and procedures.(o) Deceased state employees.(1) Required payees. A state agency must pay the compensation earned by a deceased state employee to the employee's estate unless Estates Code, §453.004, or another law authorizes or requires a different payment method.(2) Additional mail codes. When a state agency pays the estate of a deceased state employee, the agency must establish an additional mail code under the payee identification number of the employee.(p) Overtime payments.(1) Generally. A state employee covered by the overtime provisions of the FLSA must be credited or paid for overtime hours worked according to the GAA, the FLSA, and the regulations adopted by the United States Department of Labor under the FLSA. Those regulations and the FLSA prevail over the GAA to the extent of conflict, if any.(2) Method for making overtime payments. A state agency may pay overtime on any payroll document submitted to the comptroller, including a supplemental payroll document.(q) Payments of compensation for working partial months.(1) State employees paid once each month.(A) This paragraph applies only to a state employee who is paid once each month.(B) A state agency must calculate the amount of compensation a state employee is entitled to receive for working less than a full month by:(i) calculating the employee's hourly rate of pay according to the comptroller's requirements; and(ii) multiplying the employee's hourly rate of pay by the number of hours worked to determine the correct amount of compensation.(C) Subparagraph (B) of this paragraph also applies to the compensation paid to a state employee who is on leave without pay for less than an entire calendar month.(2) State employees paid twice each month.(A) This paragraph applies only to a state employee who is paid twice each month.(B) This subparagraph applies to a state employee who does not work all the available hours in the first half of a month but works all the available hours in the second half of the month.(i) The total compensation that must be paid to a state employee for an entire month is equal to the product of:(I) the hours worked in the month by the employee; and(II) the employee's hourly rate for the month calculated according to the comptroller's requirements.(ii) The amount of compensation that must be paid to a state employee for services provided during the first half of a month is equal to the product of:(I) the hours worked in that half of the month by the employee; and(II) the employee's hourly rate for the month calculated according to the comptroller's requirements.(iii) The amount of compensation that must be paid to a state employee for services provided during the second half of a month equals the difference between:(I) the total compensation that must be paid to the employee for the entire month as determined under clause (i) of this subparagraph; and(II) the compensation that must be paid to the employee for services provided during the first half of the month as determined under clause (ii) of this subparagraph.(C) This subparagraph applies to a state employee who works all the available hours in the first half of a month but does not work all the available hours in the second half of that month.(i) The total compensation that must be paid to a state employee for an entire month is equal to the product of:(I) the hours worked in the month by the employee; and(II) the employee's hourly rate for the month calculated according to the comptroller's requirements.(ii) The amount of compensation that must be paid to a state employee for services provided during the first half of a month equals 50% of the employee's compensation for the month.(iii) The amount of compensation that must be paid to a state employee for services provided during the second half of a month equals the difference between:(I) the total compensation that must be paid to the employee for the entire month as determined under clause (i) of this subparagraph; and(II) the compensation that must be paid to the employee for services provided during the first half of the month as determined under clause (ii) of this subparagraph.(r) Payroll deductions.(1) Special definitions. The following words and terms, when used in this subsection, shall have the following meanings unless the context clearly indicates otherwise.(A) Certified state employee organization--A state employee organization that the comptroller has certified according to §5.46 of this title (relating to Deductions for Paying Membership Fees to Certain State Employee Organizations).(B) State agency--(i) a board, commission, department, office, or other agency that is in the executive branch of state government and that was created by the constitution or a statute of the state, including an institution of higher education as defined by Education Code, §61.003; (ii) the legislature or a legislative agency; or(iii) the supreme court, the court of criminal appeals, a court of appeals, the State Bar of Texas, or another state judicial agency.(2) Statutory limitation. Government Code, §659.002, prohibits a state agency from making a deduction from the compensation paid to an employee whose compensation is paid in full or in part from state funds unless the deduction is authorized by law.(3) List of authorized deductions. The deductions authorized by law are:(A) court-ordered deductions under Bankruptcy Code, Chapter 13;(B) deductions required by levies imposed by the Internal Revenue Service;(C) deductions required by payroll deduction agreements between the Internal Revenue Service and state employees if the agreements are legally binding on employing state agencies;(D) federal income tax withholding;(E) deductions required by the Federal Insurance Contributions Act, which includes social security and Medicare withholding;(F) income tax deductions required by states other than Texas or by local governments outside Texas in which state employees live and work;(G) contributions to the Employees Retirement System of Texas, the Teacher Retirement System of Texas, the optional retirement program, the Judicial Retirement System of Texas Plan One, or the Judicial Retirement System of Texas Plan Two;(H) fees charged to state employees by their employing state agencies for complying with court-ordered child support deductions from the employees' compensation;(I) court-ordered child support deductions;(J) extra federal income tax withholding;(K) deferrals to and repayments of loans from the qualified deferred compensation plan;(L) deductions required by a valid assignment, transfer, or pledge of compensation as security for an indebtedness under Education Code, §51.934;(M) health benefits plan deductions, cafeteria plan deductions, and other deductions authorized by Insurance Code, Chapter 1551, Texas Employees Group Insurance Benefits Act;(N) health benefits plan deductions, cafeteria plan deductions, and other deductions authorized by Insurance Code, Chapter 1601, State University Employees Uniform Insurance Benefits Act;(O) deductions for goods and services provided to employees by the institutional division of the Department of Criminal Justice;(P) deductions for services provided to state employees of agencies as authorized in statute or the GAA;(Q) deferrals to the deferred compensation plans governed by Internal Revenue Code of 1986, §457;(R) contributions by employees of the Texas Higher Education Coordinating Board, the Texas Education Agency, the Texas School for the Deaf, the Texas School for the Blind and Visually Impaired, the Department of State Health Services, the Texas Juvenile Justice Department, and the governing boards of state-supported institutions of higher education to any investment authorized under Internal Revenue Code of 1986, §403(b);(S) deductions to pay membership fees to certified state employee organizations;(T) service purchase installment deductions for contributing members of the Employees Retirement System of Texas, the Judicial Retirement System of Texas Plan One, or the Judicial Retirement System of Texas Plan Two;(U) deductions from the compensation paid to certain faculty members who take English proficiency courses under Education Code, §51.917;(V) deductions for contributions to eligible charitable organizations;(W) deductions for payments to credit unions;(X) deductions required by federal law for the repayment of guaranteed student loans;(Y) deductions for savings bond purchases;(Z) deductions for supplemental optional benefit programs approved by the Employees Retirement System of Texas under Government Code, §659.102;(AA) deductions to make payments under a prepaid tuition contract; and(BB) deductions for contributions to a qualified football coaches plan.(s) Garnishments.(1) Delivery of garnishment notices. A notice to garnish the compensation of a state employee must be delivered directly to the employing state agency.(2) Garnishment notices for terminated employees. If a state agency receives a garnishment notice for a person no longer employed by the agency, then the agency must:(A) return the notice to the entity that issued the notice;(B) inform the entity that the person is no longer employed; and(C) identify to the entity the retirement system that the entity should contact to seek information about the person's retirement contribution balance.(3) Compliance with garnishment notices. Upon receipt of a valid garnishment notice, the receiving state agency must:(A) inform the affected state employee about the notice and the procedures the agency will follow to comply with the notice;(B) establish a mail code on the comptroller's Texas payee information system for the recipient of the garnishment proceeds unless a payee number has already been designated for all state agencies to use; and(C) show the garnishment as a miscellaneous deduction on the affected state employee's payroll record.(4) Effective date of garnishment notices. A garnishment notice takes effect with the first payroll document submitted to the comptroller after the notice is received. Therefore, if a state agency receives a garnishment notice after the agency has submitted a payroll document to the comptroller, the notice does not apply to that document.(t) Refunds of deductions. A state agency may refund amounts previously deducted in error only by using credit amounts in the appropriate deduction column on a payroll document.",
            "sourceNote": "Source Note: The provisions of this §5.41 adopted to be\r\neffective November 19, 1996, 21 TexReg 10988; amended to be effective\r\nMarch 11, 2013, 38 TexReg 1694; amended to be effective May 19, 2019,\r\n44 TexReg 2362; amended to be effective February 17, 2026, 51 TexReg\r\n958."
        },
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            "currentRecordId": "120400",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "D",
                "label": "CLAIMS PROCESSING--PAYROLL"
            },
            "rule": {
                "number": "§5.43",
                "label": "Payments for Accrued Vacation Time"
            },
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            "ruleBody": "(a) Definitions. In this section:(1) \"Calendar month\" means the first day through the last day of January, February, March, April, May, June, July, August, September, October, November, or December.(2) \"Community college\" has the meaning assigned to \"public junior college.\"(3) \"Comptroller\" means the Comptroller of Public Accounts for the State of Texas.(4) \"Fiscal year\" means the accounting period beginning on September 1st and ending the following August 31st.(5) \"Institution of higher education\" has the meaning assigned by Education Code, §61.003, except that the term does not include a community college or a public junior college.(6) \"National holiday\" has the meaning assigned by Government Code, §661.061(1).(7) \"Public junior college\" has the meaning assigned by Education Code, §61.003.(8) \"State agency\" means a department, board, commission, committee, council, agency, office, or other entity in the executive, legislative, or judicial branch of Texas state government, the jurisdiction of which is not limited to a geographical portion of this state. The term includes the State Bar of Texas, the Board of Law Examiners, and an institution of higher education. The term does not include a community college or a public junior college.(9) \"State employee\" has the meaning assigned by Government Code, §661.061(2).(10) \"State holiday\" has the meaning assigned by Government Code, §661.061(3).(11) \"Temporary state employee\" means a state employee who is hired to provide services to a state agency for a limited time. The term includes a seasonal employee. The term does not include:(A) an independent contractor; or(B) an employee or independent contractor of an independent contractor.(12) \"Workday\" means any day except Saturday and Sunday. The term includes a state or national holiday.(b) Meaning of \"continuous state employment.\" For purposes of determining whether a state employee is entitled to be paid for the accrued balance of the employee's vacation time upon separation from state employment, the employee has \"continuous state employment\" so long as employment with the state is not interrupted by a period when the employee is not being paid a regular state salary. The period when the employee is on leave without pay or leave of absence without pay is not an interruption that requires the period of continuous state employment to begin again. A leave period that covers one or more entire calendar months, however, does not count toward fulfilling the six month requirement in Government Code, §661.062(a).(c) Meaning of \"separation from state employment.\" For purposes of determining whether a state employee is entitled to be paid for the accrued balance of the employee's vacation time, \"separation from state employment\" includes:(1) a resignation or dismissal from state employment;(2) a circumstance listed in Government Code, §661.062(b)(2) - (5) or §661.091(a); or(3) a state employee leaving one state agency to begin working for another state agency, if at least one workday occurs between the two employments.(d) Responsibility for making the payment. The state agency that employed a state employee at the time of the employee's separation from state employment is responsible for paying the accrued balance of the employee's vacation time. This responsibility exists even if the employee at that time held a position that did not accrue vacation time.(e) Hours of accrued vacation time to be paid.(1) Allocation of accrued time. Except as provided in paragraph (2)(D)(ii) of this subsection, the accrued balance of a state employee's vacation time must be allocated over the workdays following the effective time of the employee's separation from state employment until the balance is allocated completely.(A) If the employee, at the effective time of separation, was normally scheduled to work at least 40 hours each week, then each workday consists of eight hours.(B) If the employee, at the effective time of separation, was normally scheduled to work fewer than 40 hours each week, then each workday consists of 20% of the number of hours the employee was normally scheduled to work each week.(2) Addition for holidays encountered during the allocation.(A) This subparagraph applies to a state employee who, on the effective date of separation from state employment, was normally scheduled to work at least 40 hours each week. Except as provided in subparagraph (C) or (D)(i) of this paragraph, eight hours must be added to the accrued balance of the employee's vacation time for each state or national holiday that occurs during the period over which the balance is allocated.(B) This subparagraph applies to a state employee who, on the effective date of separation from state employment, was normally scheduled to work fewer than 40 hours each week. Except as provided in subparagraph (C) or (D)(i) of this paragraph, a specified number of hours must to be added to the accrued balance of the employee's vacation time for each state or national holiday that occurs during the period over which the balance is allocated. The number of hours added for each holiday is equal to the product of:(i) eight hours; and(ii) the percentage of 40 hours that the employee was normally scheduled to work each week on the effective date.(C) This subparagraph applies to a state employee who is entitled to receive a payment under this subsection because the employee moves or transfers to a position that does not accrue vacation time. No hours may be added to the accrued balance of the employee's vacation time for a state or national holiday that occurs during the period over which the balance is allocated.(D) This subparagraph applies to a state employee who is entitled to be paid for a state or national holiday that occurs after the effective time of the employee's separation from state employment.(i) No hours may be added to the accrued balance of the employee's vacation time for that holiday.(ii) The holiday is ignored when allocating the accrued balance of the employee's vacation time over the workdays following the effective time of the employee's separation from state employment.(3) Individuals not state employees during the allocation period. The inclusion of a workday in the allocation of the accrued balance of vacation time does not cause any individual to be a state employee on that workday for any purpose.(f) Computation of the payment.(1) Accrued balances allocated over only one month. If the accrued balance of a state employee's vacation time is allocated over only one month, then the amount of the payment for that balance is equal to the product of:(A) the number of hours of the balance; and(B) the applicable rate of compensation of the employee, which must be expressed as an hourly rate for that month.(2) Accrued balances allocated over more than one month. If the accrued balance of a state employee's vacation time is allocated over more than one month, then the amount of the payment for that balance is equal to the sum of the amounts attributed to each month included in the allocation. The amount attributed to any particular month is equal to the product of:(A) the number of hours of the balance that is allocated to that month; and(B) the applicable rate of compensation of the employee, which must be expressed as an hourly rate for that month.(g) Applicable rate of compensation.(1) Items included in the rate of compensation. For purposes of determining the amount of a payment under this section, a state employee's rate of compensation includes base pay plus any emolument or stipend provided as a salary supplement. A special item of compensation, e.g., housing, utilities, clothing, and cleaning, may be included in the rate only if the item was provided in lieu of base pay. Longevity pay, hazardous duty pay, and benefit replacement pay may not be included in the rate.(2) Employees who are not hourly. This paragraph applies only to a state employee who was not an hourly employee at the effective time of the employee's separation from state employment.(A) The employee's rate of compensation must be expressed as an hourly rate for each month or part of a month included in the allocation of the accrued balance of vacation time.(B) This subparagraph applies only if the state agency making a payment under this section is not an institution of higher education. The hourly rate of compensation for a particular month is equal to a quotient:(i) the numerator of which is equal to the rate of compensation for the month; and(ii) the denominator of which is equal to eight multiplied by the number of workdays during the month.(C) This subparagraph applies only if the state agency making a payment under this section is an institution of higher education. The institution may calculate the hourly rate of compensation for a particular month under the method described in subparagraph (B) of this paragraph. If the institution determines not to use that method, then the hourly rate of compensation for a particular month is equal to a quotient:(i) the numerator of which is equal to the rate of compensation, expressed as an annual rate; and(ii) the denominator of which is 2080.(3) Employees with contracts to work fewer than twelve months each fiscal year. This paragraph applies to a state employee who, on the effective date of the employee's separation from state employment, was normally scheduled to work for a state agency fewer than twelve months during a fiscal year but who agreed for the agency to pay the compensation earned during that work period over twelve months. The employee's applicable rate of compensation must be based on the amount of compensation earned each month the employee worked, not on the amount of compensation paid to the employee each month of the year.(h) Remaining on the payroll to exhaust the accrued balance of vacation time. A state agency that is liable for a payment under this section and the state employee who is entitled to receive the payment may mutually agree for the employee to remain on the agency's payroll to exhaust the accrued balance of the employee's vacation time instead of paying the employee for the balance. The payment must occur if either party does not agree.(i) Payroll details. The payroll detail submitted to the comptroller to make a payment under this section must include:(1) the employee's rate of pay at the effective time of separation from state employment;(2) the effective time of separation from state employment; and(3) the number of days and hours of the accrued balance of the employee's vacation time, not including hours for authorized national and state holidays.",
            "sourceNote": "Source Note: The provisions of this §5.43 adopted to be effective June 28, 2005, 30 TexReg 3731."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=120401&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "120401",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "D",
                "label": "CLAIMS PROCESSING--PAYROLL"
            },
            "rule": {
                "number": "§5.44",
                "label": "Payments for Accrued Vacation and Sick Leave to the Estates of Deceased State Employees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19825&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19825",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. In this section:(1) \"Calendar month\" means the first day through the last day of January, February, March, April, May, June, July, August, September, October, November, or December.(2) \"Community college\" has the meaning assigned to public junior college.(3) \"Comptroller\" means the Comptroller of Public Accounts for the State of Texas.(4) \"Fiscal year\" means the accounting period beginning on September 1st and ending the following August 31st.(5) \"Institution of higher education\" has the meaning assigned by Education Code, §61.003, except that the term does not include a community college or a public junior college.(6) \"National holiday\" has the meaning assigned by Government Code, §661.031(1).(7) \"Public junior college\" has the meaning assigned by Education Code, §61.003.(8) \"State agency\" means a department, board, commission, committee, council, agency, office, or other entity in the executive, legislative, or judicial branch of Texas state government, the jurisdiction of which is not limited to a geographical portion of this state. The term includes the State Bar of Texas, the Board of Law Examiners, and an institution of higher education. The term does not include a community college or a public junior college.(9) \"State employee\" has the meaning assigned by Government Code, §661.031(2).(10) \"State holiday\" has the meaning assigned by Government Code, §661.031(3).(11) \"Temporary state employee\" means a state employee who is hired to provide services to a state agency for a limited time. The term includes a seasonal employee. The term does not include:(A) an independent contractor; or(B) an employee or independent contractor of an independent contractor.(12) \"Total leave balance\" means the sum of:(A) the accrued balance of a deceased state employee's vacation leave; and(B) the lesser of:(i) half of the accrued balance of the employee's sick leave; or(ii) 336 hours of sick leave.(13) \"Workday\" means any day except Saturday and Sunday. The term includes a state or national holiday.(b) Meaning of \"continuous state employment.\" For purposes of determining whether the estate of a deceased state employee is entitled to be paid for the employee's total leave balance, the employee had \"continuous state employment\" so long as employment with the state was not interrupted by a period when the employee was not being paid a regular state salary. The period when the employee was on leave without pay or leave of absence without pay was not an interruption that required the period of continuous state employment to begin again. A leave period that covered one or more entire calendar months, however, did not count toward fulfilling the six month requirement in Government Code, §661.032(a).(c) Responsibility for making the payment. The state agency that employed a state employee at the time of the employee's death is responsible for paying the employee's estate for the employee's total leave balance. This responsibility exists even if the employee at that time held a position that did not accrue vacation leave or sick leave, or both.(d) Hours of total leave balance to be paid.(1) Allocation of total leave balance. A deceased state employee's total leave balance must be allocated over the workdays following the date of the employee's death until the balance is allocated completely.(A) If the employee, at the time of death, was normally scheduled to work at least 40 hours each week, then each workday consists of eight hours.(B) If the employee, at the time of death, was normally scheduled to work fewer than 40 hours each week, then each workday consists of 20% of the number of hours the employee was normally scheduled to work each week.(2) Addition for holidays encountered during the allocation.(A) This subparagraph applies to a state employee who, at the time of death, was normally scheduled to work at least 40 hours each week. Eight hours must be added to the employee's total leave balance for each state or national holiday that occurs during the period over which the balance is allocated.(B) This subparagraph applies to a state employee who, at the time of death, was normally scheduled to work fewer than 40 hours each week. A specified number of hours must to be added to the employee's total leave balance for each state or national holiday that occurs during the period over which the balance is allocated. The number of hours added for each holiday is equal to the product of:(i) eight hours; and(ii) the percentage of 40 hours that the employee was normally scheduled to work each week at the time of death.(3) Individuals not state employees during the allocation period. The inclusion of a workday in the allocation of a total leave balance does not result in any individual being a state employee on that workday for any purpose.(e) Computation of the payment.(1) Total leave balance allocated over only one month. If a deceased state employee's total leave balance is allocated over only one month, then the amount of the payment for that balance is equal to the product of:(A) the number of hours of the balance; and(B) the applicable rate of compensation of the employee, which must be expressed as an hourly rate for that month.(2) Total leave balance allocated over more than one month. If a deceased state employee's total leave balance is allocated over more than one month, then the amount of the payment for that balance is equal to the sum of the amounts attributed to each month included in the allocation. The amount attributed to any particular month is equal to the product of:(A) the number of hours of the total leave balance that is allocated to that month; and(B) the applicable rate of compensation of the employee, which must be expressed as an hourly rate for that month.(f) Applicable rate of compensation.(1) Items included in the rate of compensation. For purposes of determining the amount of a payment under this section, a deceased state employee's rate of compensation includes base pay plus any emolument or stipend provided as a salary supplement. A special item of compensation, e.g., housing, utilities, clothing, and cleaning, may be included in the rate only if it was provided in lieu of base pay. Longevity pay, hazardous duty pay, and benefit replacement pay may not be included in the rate.(2) Employees who were not hourly. This paragraph applies only to a state employee who was not an hourly employee at the time of death.(A) The employee's rate of compensation must be expressed as an hourly rate for each month or part of a month included in the allocation of the employee's total leave balance.(B) This subparagraph applies only if the state agency making a payment under this section is not an institution of higher education. The hourly rate of compensation for a particular month is equal to a quotient:(i) the numerator of which is equal to the rate of compensation for the month; and(ii) the denominator of which is equal to eight multiplied by the number of workdays during the month.(C) This subparagraph applies only if the state agency making a payment under this section is an institution of higher education. The institution may calculate the hourly rate of compensation for a particular month under the method described in subparagraph (B) of this paragraph. If the institution determines not to use that method, then the hourly rate of compensation for a particular month is equal to a quotient:(i) the numerator of which is equal to the rate of compensation, expressed as an annual rate; and(ii) the denominator of which is 2080.(3) Employees who had contracts to work fewer than twelve months each fiscal year. This paragraph applies to a state employee who, at the time of death, was normally scheduled to work for a state agency fewer than twelve months during a fiscal year but who agreed for the agency to pay the compensation earned during that work period over twelve months. The employee's applicable rate of compensation must be based on the amount of compensation earned each month the employee worked, not on the amount of compensation paid to the employee each month of the year.(g) Payroll details. The payroll detail submitted to the comptroller to make a payment under this section must include:(1) the employee's rate of pay at the time of death;(2) the date of death;(3) the number of days and hours of the employee's accrued vacation leave balance, not including hours for authorized national and state holidays; and(4) the number of days and hours of the employee's accrued sick leave balance, which must be the number before the application of the 336 hour limit on the number of hours of sick leave that may be paid.",
            "sourceNote": "Source Note: The provisions of this §5.44 adopted to be effective June 28, 2005, 30 TexReg 3732."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19825&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19825",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "D",
                "label": "CLAIMS PROCESSING--PAYROLL"
            },
            "rule": {
                "number": "§5.45",
                "label": "IRS Levy Procedures"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=219471&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "219471",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) After November 30, 1975, the comptroller's office will no longer receive notice of levy from the IRS. Notices will be mailed directly to the employing/contracting agency pursuant to a written agreement between the comptroller's office and the IRS whereby receipt of levies by mail will be accepted by all state agencies and departments. The following procedures should be adhered to by each agency:(1) IRS serves notice of levy by mail or in person on the employing or contracting agency against current funds due taxpayers, except on contractual agreements, in which case the levy is against all future sums due on that contract. Levies against wages are to apply only against first regular pay warrant issued after date levy is received.(2) Upon receipt of notice of levy from the IRS, the employing or contracting state agency should notify the employee or vendor of the levy and the procedures that shall be followed.(3) If the employee has terminated employment or a vendor is no longer doing business with the agency, the agency will take the following action:(A) notice of levy for the vendor is returned to IRS with an explanation;(B) notice of levy for a terminated employee with no accrued retirement with Employees' or Teachers' Retirement System is returned to IRS with an explanation;(C) notice of levy for a terminated employee with accrued retirement with Employees' or Teachers' Retirement System is returned to IRS with indication of such accrued retirement.(b) Any voucher submitted to the comptroller for warrant(s) to be issued to an employee or vendor after notice of levy has been served on the agency should be prepared and handled by the agency as follows:(1) Payroll or purchase vouchers submitted to the comptroller should include a notation that warrant(s) to be issued are subject to IRS levy.(2) Warrant(s) will be made payable to the employee or vendor and returned to the agency that submitted the voucher for payment. Note: Delivery of warrant(s) to IRS shall be the responsibility of the agency. Warrants should be mailed to IRS using the preaddressed envelopes enclosed with the original notice of levy.(3) If the amount due the employee or vendor is more than the amount of the levy,  one warrant will be made payable to the employee or vendor for the exact amount of the levy, a second warrant will be made payable to the employee or vendor for the amount in excess of the levy, and these warrants returned to the submitting agency for disposition to IRS and the employee or vendor.(4) If the amount due the employee or vendor is less than the amount of the levy,  one warrant will be made payable to the employee or vendor and returned to the agency for transmittal to IRS.(5) If the amount due the employee or vendor is equal to the amount of the levy, the warrant will be handled as in paragraph (4) of this subsection.(c) At such time the warrant has been mailed, and the warrant number noted on the agency copy of levy, and filed, the requirements of the levy will have been fulfilled unless the levy has been against a contractual amount, in which case to satisfy the levy requirements all payments made on the contractual amount shall be forwarded to IRS until the full amount of the levy is paid or the total contractual amount due the vendor has been paid, whichever occurs first.",
            "sourceNote": "Source Note: The provisions of this §5.45 adopted to be effective January 1, 1976."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=219471&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "219471",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "D",
                "label": "CLAIMS PROCESSING--PAYROLL"
            },
            "rule": {
                "number": "§5.46",
                "label": "Deductions for Paying Membership Fees to Certain State Employee Organizations"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208488&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208488",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) CAPPS--The centralized accounting and payroll/personnel system, or any successor system used to implement the enterprise resource planning component of the uniform statewide accounting project, developed under Government Code, §2101.035 and §2101.036.(2) Comptroller--The Comptroller of Public Accounts for the State of Texas.(3) Eligible organization--A state employee organization that the comptroller has certified in accordance with this section and whose certification has not been terminated.(4) Employer--A state agency that employs a state employee who authorizes a deduction under this section.(5) Fiscal year--The accounting period for the state government which begins on September 1 and ends on August 31.(6) Holiday--A state or national holiday as specified by Government Code, §§662.001-662.010. The term does not include a holiday that the General Appropriations Act prohibits state agencies from observing.(7) Include--Is a term of enlargement and not of limitation or exclusive enumeration. The use of the term does not create a presumption that components not expressed are excluded.(8) Institution of higher education--Has the meaning assigned by Education Code, §61.003.(9) May not--Is a prohibition. The term does not mean \"might not\" or its equivalents.(10) Membership fee--The dues or fee that a state employee organization requires a state employee to pay to maintain membership in the organization.(11) Salary or wage leveling agreement--A contract or other agreement between a state employee and the employer that requires the employer to pay the employee's total annual salary or wages over 12 months even though the employee is not scheduled to work each of those months.(12) Salary or wages--Base salary or wages, longevity pay, or hazardous duty pay.(13) State agency--A department, commission, board, office, agency, or other entity of Texas state government, including an institution of higher education.(14) State employee--An employee of a state agency. The term includes an elected or appointed official, a part-time employee, an hourly employee, a temporary employee, an employee who is not covered by Government Code, Chapter 654 (the Position Classification Act), and a combination of the preceding. The term excludes an independent contractor and an employee of an independent contractor.(15) State employee organization--An association, union, or other organization that advocates the interests of state employees concerning grievances, compensation, hours of work, or other conditions or benefits of employment.(16) Texas identification number--The 14-digit number that the comptroller assigns to each direct recipient of a payment made by the comptroller.(17) Workday--A calendar day other than Saturday, Sunday, or a holiday.(b) Deductions.(1) Authorization of deductions.(A) A state employee may authorize one or more monthly deductions from the employee's salary or wages to pay membership fees to eligible organizations.(B) Neither a state agency nor a state employee organization may state or imply that a state employee is required to authorize a deduction under this section.(C) A state employee may provide an authorization only if the employee:(i) submits to the employer's human resource officer or payroll officer a properly completed authorization form establishing a deduction; or(ii) submits through CAPPS a properly completed electronic authorization establishing a deduction.(D) Neither the comptroller nor a state agency is liable or responsible for any damages or other consequences resulting from a state employee's authorization of an incorrect amount of a deduction under this section.(E) Except as provided in subsection (i)(3) of this section, neither the comptroller nor a state agency is responsible for providing a state employee's membership information to an eligible organization.(2) Change in the amount of a deduction or cancellation of a deduction.(A) At any time, a state employee may authorize a change in the amount to be deducted under this section from the employee's salary or wages or cancel a deduction under this section.(B) A state employee may authorize a change in the amount of a deduction or a cancellation of a deduction under this section only if the employee:(i) submits to the employer's human resource officer or payroll officer a properly completed authorization form, cancellation form, or cancellation notice, as appropriate, changing or cancelling a deduction; or(ii) submits through CAPPS a properly completed electronic authorization changing or canceling a deduction.(C) Neither the comptroller nor a state agency is liable or responsible for any damages or other consequences resulting from a state employee's change of the amount of a deduction or cancellation of a deduction under this section.(D) If a state employee submits a cancellation form or cancellation notice to the employer's human resource officer or payroll officer, or submits an electronic authorization through CAPPS cancelling a deduction, the state agency must notify the affected eligible organization.(3) Automatic change in the amount of a deduction.(A) An employer may change the amount of a deduction under this section from the employee's salary or wages without requiring the employee to submit a new authorization form only if:(i) the employee's current authorization form authorizes the employer to change the amount of a deduction under this section from the employee's salary or wages without requiring the employee to submit a new authorization form; and(ii) the change is needed because the eligible organization to which the employee authorized a deduction has changed the amount of membership fees it charges to state employees.(B) Even if a state employee provides the authorization under subparagraph (A) of this paragraph, the employer may require the employee to submit a properly completed authorization form to the employer before the employer changes the amount of a deduction under this section from the employee's salary or wages.(C) A state employee may provide the authorization under subparagraph (A) of this paragraph only if the employee submits to the employer's human resource officer or payroll officer a properly completed authorization form.(D) When an eligible organization wants to change the amount of membership fees it charges to state employees that are authorized under subparagraph (A) of this paragraph, the organization must provide prior written notification of the change to the comptroller. If the comptroller receives the notification on the first calendar day of a month, the change is effective for the salary or wages paid to state employees on the first workday of the second month following the month in which the comptroller receives the notification. If the comptroller receives the notification after the first calendar day of a month, the change is effective for the wages and salaries paid to state employees on the first workday of the third month following the month in which the comptroller received the notification.(4) Sufficiency of salary or wages to support a deduction.(A) A state employee is solely responsible for ensuring that the employee's salary or wages are sufficient to support a deduction authorized by this section.(B) If a state employee's salary or wages are sufficient to support only part of a deduction authorized by this section, no part of the deduction may be made.(C) The amount that could not be deducted from a state employee's salary or wages because they were insufficient to support the deduction may not be made up by deducting the amount from subsequent payments of salary or wages to the employee.(5) Timing of deductions.(A) Except as provided in subparagraph (B) of this paragraph, a deduction authorized by this section must be made from the salary or wages that are paid on the first working day of a month.(B) If a state employee does not receive a payment of salary or wages on the first working day of a month, the employer may designate the payment of salary or wages to the employee from which a deduction authorized by this section will be made. A deduction authorized by this section may be made only once each month.(6) Regularity of deductions.(A) This subparagraph applies to a state employee who is scheduled by the employer to work each month of a year. A deduction authorized by this section must be calculated so that the total membership fee paid by a state employee per year is spread evenly over 12 monthly deductions.(B) This subparagraph applies to a state employee who is not scheduled by the employer to work each month of a year.(i) If a state employee has entered into a salary or wage leveling agreement, a deduction authorized by this section must be calculated so that the total membership fee paid by the employee per year is spread evenly over the months the employee will be paid under the agreement.(ii) If a state employee has not entered into a salary or wage leveling agreement, a deduction authorized by this section must be calculated so that the total membership fee paid by the employee per year is spread evenly over the months the employee will be paid.(7) Retroactive deductions.(A) In this paragraph, \"retroactive deduction\" means a deduction authorized by this section to the extent the purpose of the deduction is:(i) to correct an error made in a previous month that resulted in the amount of money deducted being less than the amount authorized by a state employee; or(ii) to catch up on the amount of membership fees owed by a state employee to an eligible organization because a deduction authorized by this section was not made in one or more previous months.(B) A retroactive deduction is prohibited unless:(i) an error described in subparagraph (A)(i) of this paragraph was committed by the employer; and(ii) the eligible organization that received the erroneous deduction consents to the retroactive deduction.(8) Interagency transfers of state employees. A state employee who transfers from one state agency to a second state agency must be treated by the second state agency as if the employee has not yet authorized any deductions under this section.(c) Effectiveness of authorizations.(1) Effective date of authorizations.(A) This subparagraph applies if a state agency receives a state employee's properly completed authorization form or electronic authorization on the first calendar day of a month.(i) The first deduction authorized by this section must be made from the employee's salary or wages that are paid on the first workday of the first month following the month in which the agency receives the authorization form or electronic authorization.(ii) If an authorization form or electronic authorization is submitted to change the amount of a deduction authorized by this section, the change is effective with the deduction made on the first workday of the first month following the month in which the agency receives the authorization form or electronic authorization.(B) This subparagraph applies if a state agency receives a state employee's properly completed authorization form or electronic authorization after the first calendar day of a month.(i) The first deduction authorized by this section must be made from the employee's salary or wages that are paid on the first workday of the second month following the month in which the agency receives the authorization form or electronic authorization. However, the agency may consent for the first deduction to occur from the salary or wages that are paid on the first workday of the first month following the month in which the agency receives the authorization form or electronic authorization.(ii) If an authorization form or electronic authorization is submitted to change the amount of a deduction authorized by this section, the change is effective with the deduction made on the first workday of the second month following the month in which the agency receives the authorization form or electronic authorization. However, the agency may consent for the change to be effective with the deduction made on the first workday of the first month following the month in which the agency receives the authorization form or electronic authorization.(C) If the first calendar day of a month is not a workday, the first workday following the first calendar day is the deadline for the receipt of properly completed authorization forms or electronic authorizations.(D) A state employee is solely responsible for ensuring that a properly completed authorization form or electronic authorization is received by the employer by the deadline.(E) An eligible organization's receipt of the authorization form or electronic authorization is not a prerequisite to the authorization becoming effective.(2) Return of authorization forms.(A) A state agency shall return an authorization form to the state employee who submitted the form if:(i) the form is incomplete, contains erroneous data, or is otherwise insufficient; and(ii) a deficiency listed in clause (i) of this subparagraph makes it impossible for the agency to establish the deduction in accordance with the form.(B) A state agency may either accept an authorization form from or return an authorization form to the state employee who submitted the form when the form postpones the first deduction authorized by this section beyond the effective date determined under paragraph (1) of this subsection. If the agency accepts the authorization form, the agency may not make the deduction effective before the effective date specified on the form.(C) A state agency shall state in writing the reason for the return of an authorization form. The statement must be attached to the form being returned.(d) Effectiveness of cancellation of deductions.(1) Effective date of cancellation of deductions.(A) This subparagraph applies if a state agency receives a state employee's properly completed cancellation form, cancellation notice, or electronic authorization on the first calendar day of a month. A state employee's cancellation of a deduction authorized by this section is effective for the salary or wages paid to the employee on the first workday of the first month following the month in which the agency receives the cancellation form, cancellation notice, or electronic authorization.(B) This subparagraph applies if a state agency receives a state employee's properly completed cancellation form, cancellation notice, or electronic authorization after the first calendar day of a month. A state employee's cancellation of a deduction authorized by this section is effective for the salary or wages paid to the employee on the first workday of the:(i) second month following the month in which the agency receives the cancellation form, cancellation notice, or electronic authorization; or(ii) first month following the month in which the agency receives the cancellation form, cancellation notice, or electronic authorization if the agency consents to this effective date.(C) If the first calendar day of a month is not a workday, the first workday following the first calendar day is the deadline for the receipt of properly completed cancellation forms, cancellation notices, or electronic authorization.(D) A state employee is solely responsible for ensuring that properly completed cancellation forms, cancellation notices, and electronic authorization are received by the deadline.(E) An eligible organization's receipt of the cancellation form, cancellation notice, or electronic authorization is not a prerequisite to the cancellation becoming effective.(2) Return of cancellation forms and cancellation notices.(A) A state agency shall return a cancellation form or cancellation notice to the state employee who submitted the form or notice if:(i) the form or notice is incomplete, contains erroneous data, or is otherwise insufficient; and(ii) a deficiency listed in clause (i) of this subparagraph makes it impossible for the agency to cancel the deduction in accordance with the form or notice.(B) A state agency shall state in writing the reason for the return of a cancellation form or cancellation notice. The statement must be attached to the form being returned.(e) Authorization and cancellation forms.(1) The comptroller's approval of authorization and cancellation forms.(A) An eligible organization may not distribute or provide an authorization or cancellation form to a state employee until the organization has received the comptroller's written approval of the form.(B) As a condition for retaining its eligibility, an eligible organization must produce an authorization form and a cancellation form that comply with the comptroller's requirements and this section. The organization must produce the forms within a reasonable time after the organization receives its certification from the comptroller.(C) The comptroller may approve an eligible organization's authorization form if the form:(i) clearly informs state employees that a properly completed authorization form must be submitted to the employer's human resource officer or payroll officer to authorize a deduction;(ii) clearly informs state employees that a copy of the properly completed authorization form should be provided to the organization to notify the organization that the employee has authorized a deduction;(iii) contains the following statement: \"I understand that I cannot be compelled to be a member of a state employee organization or to pay dues to a state employee organization as a condition of employment with the state. While I am free to join a state employee organization, I understand that I may change or cancel this authorization at any time by providing written notice to my employer. I voluntarily authorize a monthly payroll deduction in the amount shown above from my salary or wages for membership fees to the state employee organization listed above and agree to comply with the comptroller's rules concerning this deduction. I agree that my name, social security number, personal contact information, and the amount of my payroll deduction for membership fees may be provided to the state employee organization listed above only for the purpose of informing the state employee organization about the payroll deduction.\"; and(iv) complies with this section and the comptroller's other requirements for format and substance.(D) The comptroller may approve the cancellation form of an eligible organization if the form:(i) clearly informs state employees that a properly completed cancellation form must be submitted to the employer's human resource officer or payroll officer to cancel the deduction;(ii) clearly informs state employees that a copy of the properly completed cancellation form should be provided to the organization to notify the organization that the employee has cancelled the deduction;(iii) clearly informs state employees that they are not required to state a reason for a cancellation; and(iv) complies with the comptroller's other requirements for format and substance.(E) An eligible organization must revise an authorization or cancellation form upon request from the comptroller. The organization may not distribute or otherwise make available to state employees a revised form until the organization has received the comptroller's written approval of the form.(2) Distribution of authorization or cancellation forms.(A) An eligible organization must provide an authorization or cancellation form to a state employee or state agency promptly after receiving:(i) an oral or written request for the form from the employee or agency; or(ii) an oral or written request to provide the form to the employee from the comptroller or the employer.(B) A state agency may maintain a supply of cancellation forms and distribute the forms to its state employees upon request. An eligible organization shall promptly provide the forms to the agency upon request.(f) Procedural requirements for certifying state employee organizations.(1) Request for certification.(A) The comptroller may not certify a state employee organization under this section unless the comptroller receives a written request for certification from an individual who is authorized by the organization to make the request.(B) The comptroller may not certify a state employee organization under this section if the comptroller receives the organization's request for certification after June 2nd of a fiscal year.(2) Requirements for requests for certification. A request for certification submitted to the comptroller by a state employee organization must contain:(A) the organization's complete name;(B) the street address of the headquarters of the organization;(C) the mailing address of the headquarters of the organization, if different from the street address;(D) the full name, title, telephone number, and mailing address of the organization's primary contact;(E) a specific request for certification as an eligible organization, specifying whether the organization is requesting certification under Government Code, §403.0165 or §659.1031;(F) a specific acceptance of the requirements of this section as they exist at the time the request is made or as adopted or amended thereafter;(G) the organization's Internal Revenue Service employer identification number; and(H) any other information that the comptroller deems necessary.(g) Substantive requirements for certifying state employee organizations. The comptroller shall certify a state employee organization under this section if the organization satisfies the requirements of paragraph (1) or (2) of this subsection.(1) Certification of a state employee organization under Government Code, §403.0165.(A) The comptroller shall certify a state employee organization if the organization:(i) submits persuasive evidence to the comptroller that the organization had a membership of at least 4,000 state employees throughout the 18 months preceding the month in which the comptroller receives the organization's request for certification (an example of the evidence that the comptroller may review is a membership roster containing the name of each state employee who is a member of the organization, the date each employee joined the organization, and the date through which each employee's membership fees are paid);(ii) demonstrates to the comptroller that the organization conducts activities on a statewide basis (an organization may satisfy this requirement by submitting any relevant evidence, including newsletters, news articles, correspondence, and membership rosters containing the names and addresses of the organization's members);(iii) demonstrates to the comptroller that the organization had a membership fee structure for state employees throughout the 18 months preceding the month in which the comptroller receives the organization's request for certification (an organization may satisfy this requirement by submitting relevant evidence, including dated enrollment forms from state employees, documentation about the fees structure, and financial records);(iv) demonstrates to the comptroller that the membership fees collected from state employees will be equal to an average of at least one-half of the membership fees received by the organization nationwide (an organization may satisfy this requirement by submitting financial records that compare the membership fees to be received from state employees with the membership fees received from other individuals throughout the nation); and(v) has submitted to the comptroller a completed direct deposit form for the organization.(B) The comptroller shall certify a state employee organization under this paragraph that demonstrates to the satisfaction of the comptroller that the organization had a membership of at least 4,000 state employees on April 1, 1991. The organization is not required to satisfy any of the other substantive requirements of this paragraph except for subparagraph (A)(v) of this paragraph. A state employee organization may demonstrate that the organization had a membership of at least 4,000 state employees on April 1, 1991, only by submitting to the comptroller:(i) a membership roster containing the name of each state employee who was a member of the organization on April 1, 1991;(ii) the date each employee joined the organization; and(iii) the date through which each employee's membership fees were paid as of April 1, 1991.(2) Certification of a state employee organization under Government Code, §659.1031. The comptroller shall certify a state employee organization if the organization:(A) submits persuasive evidence to the comptroller that the organization had a membership of at least 2,000 active or retired state employees who hold or have held certification from the Texas Commission on Law Enforcement under Occupations Code, Chapter 1701, Subchapter G; and(B) has submitted a completed direct deposit form for the organization to the comptroller.(3) Notifications.(A) The comptroller shall notify a state employee organization about the comptroller's approval or disapproval of the organization's request for certification by no later than the 30th day after the comptroller receives the request if the request is complete in all respects.(B) The comptroller shall notify each state agency of the comptroller's certification of a state employee organization by no later than the 30th day after the comptroller makes the certification.(h) Effective date of certification. The first deduction to pay a membership fee to an eligible organization may be made from salary or wages paid on the first workday of the second month following the month in which the comptroller certifies the organization.(i) Payments of deducted membership fees.(1) Payments by the comptroller through electronic funds transfers. The comptroller shall pay deducted membership fees to an eligible organization by electronic funds transfer.(2) Payments by institutions of higher education.(A) This paragraph applies only to membership fees in eligible organizations that have been deducted from salaries or wages that the comptroller does not pay directly to state employees of institutions of higher education.(B) An institution of higher education shall pay deducted membership fees to an eligible organization by electronic funds transfer unless it is infeasible to do so.(C) If it is infeasible for an institution of higher education to pay deducted membership fees to an eligible organization by electronic funds transfer, then the institution shall pay the fees by check. The check must be mailed or delivered to the organization by no later than the 20th calendar day of the month following the month when the salary or wages from which the deductions were made were earned. If the 20th calendar day of a month is not a workday, then the first workday following the 20th calendar day is the deadline for the mailing or delivery of checks.(3) Reconciliation.(A) An eligible organization shall reconcile the detail report provided by a state agency under subsection (l)(4) of this section with:(i) the amount of membership fees paid to the organization under this subsection; and(ii) the organization's membership information.(B) An eligible organization must submit to the agency, in a secure manner, a reconciling items report, which identifies:(i) any discrepancies between the detail report provided by a state agency under subsection (l)(4) of this section and the actual amount of membership fees received under this subsection; and(ii) the name of any employee listed in the detail report provided by a state agency under subsection (l)(4) of this section for whom the organization does not already have personal contact information.(C) The organization must ensure that the agency receives the organization's reconciling items report by no later than the 60th calendar day after the day on which the agency submitted the detail report to the organization. If the 60th calendar day is not a workday, the first workday following the 60th calendar day is the deadline.(D) A state agency that receives a reconciling items report from an eligible organization shall investigate the reconciling items described in the organization's reconciling items report, and notify the organization of the action to be taken to eliminate the reconciling items. A reconciling item may be eliminated by:(i) making a retroactive deduction if it is authorized by subsection (b)(7) of this section;(ii) recovering an excessive payment to an eligible organization of amounts deducted under this section from a subsequent payment to the organization;(iii) recovering an excessive payment to an eligible organization of amounts deducted under this section by obtaining a refund from the organization in accordance with subsection (k)(5) of this section;(iv) the agency making corrections to the detail report if the report is incorrect; or(v) providing the organization, in a secure manner, with personal contact information for each employee identified in the reconciling items report for whom the organization does not already have personal contact information.(E) If a state agency timely receives a reconciling items report that identifies the information described in paragraph (3)(B)(ii) of this subsection, the agency shall provide the information described in paragraph (3)(D)(v) of this subsection to the organization no later than the 10th calendar day after the day on which the agency received the organization's reconciling items report. If the 10th calendar day is not a workday, the first workday following the 10th calendar day is the deadline for providing the information.(4) Subordinate units of eligible organizations.(A) A chapter or other subordinate unit of an eligible organization may receive directly from the comptroller or an institution of higher education a payment of deducted membership fees if the fees were deducted under authorization forms that authorized the payment of the fees to the chapter or other subordinate unit of the organization.(B) A request to pay deducted membership fees to a chapter or subordinate unit instead of the parent eligible organization must be submitted to the comptroller by the organization.(C) The comptroller may grant a request under subparagraph (B) of this paragraph only if the membership fee structure of the chapter or subordinate unit is the same as the membership fee structure of the parent eligible organization.(D) The comptroller's granting of a request under subparagraph (B) of this paragraph is not a certification of the chapter or subordinate unit as an eligible organization.(E) The comptroller may require an eligible organization to submit proof that an entity is a chapter or other subordinate unit of the organization before a payment of deducted membership fees is paid directly to the entity. The comptroller may periodically require the organization to submit proof that the entity is still a chapter or other subordinate unit of the organization as a condition for continuing to pay deducted membership fees directly to the entity.(j) Solicitation. This section does not prohibit the chief administrator of a state agency from permitting or prohibiting solicitation by eligible organizations on the premises of the agency.(k) Responsibilities of eligible organizations.(1) Disseminating information.(A) An eligible organization is solely responsible for the dissemination of relevant information to its representatives and employees.(B) An eligible organization must ensure that its representatives and employees comply with the requirements of this section.(2) Notification to the comptroller. An eligible organization must notify the comptroller in writing immediately after a change occurs to:(A) the organization's name;(B) the street address of the headquarters of the organization;(C) the mailing address of the headquarters of the organization, if different from the street address;(D) the full name, title, telephone number, or mailing address of the organization's primary contact; or(E) the organization's electronic funds transfer information.(3) Primary contact. The individual that a state employee organization designates as its primary contact must represent the organization for the purposes of:(A) communicating with the comptroller, including receiving and responding to correspondence from the comptroller; and(B) disseminating information, including information about the requirements of this section, to representatives of the organization.(4) Texas identification number. The Texas identification number of an eligible organization must appear on all correspondence from the organization to the comptroller or a state agency.(5) Refunding excessive payments of amounts deducted under this section.(A) An eligible organization shall refund a payment of amounts deducted under this section to the extent the amount exceeds the amount that should have been paid to the organization if:(i) the organization receives a written request for the refund from a state agency;(ii) the agency provides reasonable evidence of the overpayment to the organization; and(iii) no subsequent payments of amounts deducted under this section are anticipated to be made to the organization.(B) If a refund is required by subparagraph (A) of this paragraph, the organization must ensure that the appropriate state agency receives the refund by no later than the 30th calendar day after the later of:(i) the date on which the organization receives the agency's written request for the refund; and(ii) the date on which the organization receives the agency's reasonable evidence of the overpayment.(l) Responsibilities of state agencies.(1) Reports of violations. A state agency may report to the comptroller a violation of this section that the agency believes an eligible organization or its representatives or employees might have committed. A report must be made in writing, and a copy of the report must be mailed to the organization at the same time that the original of the report is mailed to the comptroller.(2) Authorization forms. A state agency:(A) may accept authorization forms only if they comply with this section;(B) must ensure that the state employee organization identified on an authorization form is listed on the comptroller's website as an approved state employee organization for membership fee deduction;(C) may not accept an authorization form that contains an obvious alteration without the state employee's written consent to the alteration; and(D) must accept an authorization form from a state employee if a refusal to accept the form would violate a law of the United States or the State of Texas.(3) Acceptance of cancellation forms and cancellation notices. A state agency must accept a cancellation form or cancellation notice from a state employee unless:(A) the employee has not previously authorized a monthly deduction from the employee's salary or wages to pay membership fees to the eligible organization listed on the cancellation form or cancellation notice; or(B) the employee did not properly complete the cancellation form or failed to provide sufficient information in the cancellation notice.(4) Detail reports to eligible organizations.(A) An employer must submit, in a secure manner, a detail report each month to each eligible organization that receives the deductions.(B) A detail report to an eligible organization for a month must contain:(i) the name, in alphabetical order, and social security number of each state employee from whose salary or wages a deduction was authorized by this section for the month, regardless of whether the deduction was actually made; and(ii) the amount of the deduction made for each employee.(C) An employer must submit the detail report for the payment to the organization by no later than the 15th calendar day of the month in which the payment was made. If the 15th calendar day is not a workday, then the first workday following the 15th calendar day is the deadline for submitting the report.(m) Termination of certification.(1) Termination by the comptroller.(A) The comptroller may terminate the certification of an eligible organization only if the organization violates subsection (e)(1) of this section.(B) The comptroller may determine the effective date of a termination under this paragraph. No deduction authorized by this section may be made to an eligible organization on or after the effective date of a termination under this paragraph.(C) When the comptroller terminates the certification of an eligible organization, the comptroller shall send written notice of the termination to the organization via certified mail, return receipt requested.(2) Termination by eligible organizations.(A) An eligible organization may terminate its participation in the deduction program authorized by this section only by terminating its certification.(B) An eligible organization may terminate its certification by providing written notice of termination to the comptroller. However, an organization may not provide written notice of termination to the comptroller until the organization has provided written notice of termination to each state employee from whose salary or wages a membership fee to the organization is being deducted.(C) An eligible organization's termination of its certification is effective beginning with the salary or wages that are paid on the first workday of the third month following the month in which the comptroller receives the organization's proper notice of termination.",
            "sourceNote": "Source Note: The provisions of this §5.46 adopted to be effective June 26, 1992, 17 TexReg 4256; amended to be effective June 24, 1998, 23 TexReg 6513; amended to be effective June 20, 2021, 46 TexReg 3026; amended to be effective July 3, 2024, 49 TexReg 4808."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208488&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208488",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "D",
                "label": "CLAIMS PROCESSING--PAYROLL"
            },
            "rule": {
                "number": "§5.47",
                "label": "Deductions for Payments to Credit Unions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227554&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227554",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) CAPPS--The centralized accounting and payroll/personnel system, or any successor system used to implement the enterprise resource planning component of the uniform statewide accounting project, developed under Government Code, §2101.035 and §2101.036.(2) Comptroller--The comptroller of public accounts for the State of Texas.(3) Credit union--A state credit union, an out-of-state credit union, a foreign credit union, or a federal credit union.(4) Electronic funds transfer--A payment made electronically instead of by warrant or check. The term includes a payment made through an automated clearinghouse, by bank wire, or by federal wire.(5) Employer--A state agency that employs a state employee who authorizes a deduction under this section.(6) Federal credit union--A credit union organized under 12 U.S.C. Chapter 14.(7) Foreign credit union--A credit union that is not organized under the laws of this state or the United States if the credit union is authorized under Finance Code, Title 3, Subtitle D, to do business in this state.(8) Holiday--A state or national holiday as specified by the General Appropriations Act or Government Code, §§662.001-662.010.(9) Include--A term of enlargement and not of limitation or exclusive enumeration. The use of the term does not create a presumption that components not expressed are excluded.(10) Institution of higher education--Has the meaning assigned by Education Code, §61.003.(11) May not--A prohibition. The term does not mean \"might not\" or its equivalents.(12) Out-of-state credit union--A credit union organized under the laws of a state other than Texas if the credit union is authorized under Finance Code, Title 3, Subtitle D, to do business in this state.(13) Participating credit union--A credit union that the comptroller has certified according to this section.(14) Salary or wages--Base salary or wages, longevity pay, or hazardous duty pay.(15) State agency--A department, commission, board, office, or other agency of any branch of Texas state government, including an institution of higher education.(16) State credit union--A voluntary, cooperative, nonprofit financial institution that is authorized under Finance Code, Title 3, Subtitle D, to do business in this state for the purposes of:(A) encouraging thrift among its members;(B) creating a source of credit at fair and reasonable rates of interest;(C) providing an opportunity for its members to use and control their own money to improve their economic and social condition; and(D) conducting any other business, engaging in any other activity, and providing any other service that may be of benefit to its members subject to Finance Code, Title 3, Subtitle D, and rules adopted under that law.(17) State employee--An employee of a state agency. The term includes an elected or appointed official, a part-time employee, an hourly employee, a temporary employee, an employee who is not covered by Government Code, Chapter 654, and a combination of the preceding. The term excludes an independent contractor and an employee of an independent contractor.(18) Workday--A calendar day other than Saturday, Sunday, or a holiday.(b) Deductions or changes in deductions.(1) References in this section. A reference in this section to a deduction without further qualification or explanation is a reference only to a deduction from a state employee's salary or wages to make a payment to a participating credit union.(2) Authorization of a deduction or a change in the amount of a deduction.(A) A state employee may authorize a deduction or a change in the amount of a deduction only if the employee:(i) submits to the participating credit union to which the deducted amounts will be paid a properly completed authorization form establishing a deduction or changing the amount of a deduction; or(ii) submits through CAPPS a properly completed electronic authorization establishing a deduction or changing the amount of a deduction.(B) A state employee may not authorize more than three monthly deductions from the employee's salary or wages. However, a state employee may not authorize more than one monthly deduction to any particular participating credit union.(C) A state employee may authorize a change in the amount to be deducted from the employee's salary or wages at any time.(D) Neither the comptroller nor a state agency is liable or responsible for any damages or other consequences resulting from a state employee authorizing an incorrect amount of a deduction or a change in the amount of a deduction.(E) This subparagraph applies only if a state employee authorizes a deduction or changes the amount of a deduction by submitting a properly completed authorization form to the participating credit union to which the deducted amounts will be paid under subparagraph (A)(i) of this paragraph.(i) If the employee completing the authorization form is required to pay an administrative fee, the amount of the fee must be stated on the form before the employee signs it.(ii) The credit union shall submit in a secure manner the authorization form to the employer not later than the tenth workday after the day on which the form becomes effective.(F) This subparagraph applies only if a state employee authorizes a deduction or changes the amount of a deduction by submitting a properly completed electronic authorization through CAPPS under subparagraph (A)(ii) of this paragraph. The employer shall notify the participating credit union in writing of a deduction or change in the amount of a deduction when the employer submits the next monthly detail report to the credit union.(3) Sufficiency of salary or wages to support a deduction.(A) A state employee is solely responsible for ensuring that the employee's salary or wages are sufficient to support a deduction.(B) If a state employee's salary or wages are sufficient to support only part of a deduction, no part of the deduction may be made. If a state employee has authorized more than one deduction and the employee's salary or wages are insufficient to support all the deductions, none of the deductions may be made.(C) The amount that could not be deducted from a state employee's salary or wages because of subparagraph (B) of this paragraph may not be made up by deducting the amount from subsequent payments of salary or wages to the employee.(4) Timing of deductions.(A) Except as provided in subparagraph (B) of this paragraph, a deduction must be made from the salary or wages that are paid on the first workday of a month.(B) If a state employee does not receive a payment of salary or wages on the first workday of a month, the employer may designate the payment of salary or wages from which a deduction will be made. A deduction may be made only once each month.(5) Cancellation of deductions.(A) A state employee may cancel a deduction at any time. A cancellation is effective only if the employee:(i) submits to the participating credit union or employer a properly completed authorization form canceling a deduction; or(ii) submits through CAPPS a properly completed electronic authorization canceling a deduction.(B) This subparagraph applies only if a state employee cancels a deduction by submitting a properly completed authorization form to a participating credit union under subparagraph (A)(i) of this paragraph. The credit union shall submit in a secure manner the form to the employer not later than the tenth workday after the day on which the form becomes effective.(C) This subparagraph applies only if a state employee cancels a deduction by submitting a properly completed authorization form to an employer under subparagraph (A)(i) of this paragraph or by submitting a properly completed electronic authorization through CAPPS under subparagraph (A)(ii) of this paragraph. The employer shall notify the participating credit union in writing of the cancellation of a deduction when the employer submits the next monthly detail report to the credit union.(D) Neither the comptroller nor a state agency is liable or responsible for any damages or other consequences resulting from a state employee canceling a deduction.(6) Interagency transfers of state employees. A state employee who transfers from one state agency to a second state agency may be treated by the second state agency as if the employee has not yet authorized any deductions.(c) Effective dates of authorization forms and electronic authorizations.(1) Effective date of authorization forms or electronic authorizations that request new deductions, changes in deductions, or cancellation of deductions. This paragraph applies to a state employee's authorization form or electronic authorization that requests a new deduction, change in a deduction, or cancellation of a deduction. The employer may decide when the first deduction from the employee's salary or wages, or the change or cancellation of the deduction, will occur. However, the authorized deduction, change in a deduction, or cancellation of a deduction must begin not later than with the employee's salary or wages that are paid on the first workday of the second month following the month in which:(A) the employer receives the authorization form; or(B) the electronic authorization is submitted through CAPPS.(2) Copies of authorization forms.(A) A participating credit union is solely responsible for making a copy of an authorization form before the credit union submits the form to an employer.(B) A state employee is solely responsible for making a copy of an authorization form before the employee submits the form to a participating credit union or employer.(d) Return of authorization forms.(1) Mandatory return. An employer shall return an authorization form to the participating credit union or state employee that submitted the form if it:(A) is incomplete, contains erroneous data, or is otherwise insufficient and the insufficiency makes it impossible for the employer to cancel, establish, or change the deduction according to the form; or(B) is for an individual who is not employed by the employer.(2) Discretionary return. An employer may return an authorization form to the participating credit union or state employee that submitted the form if the form is a copy or facsimile.(e) Requirements for the content and format of authorization forms.(1) Prohibition against distributing or providing authorization forms. A participating credit union may not distribute or provide an authorization form to a state employee until the credit union has received the comptroller's written approval of the form.(2) Requirement to produce authorization forms. As a condition for retaining its certification, a participating credit union must produce an authorization form that complies with the comptroller's requirements and this section. The credit union must produce the form within a reasonable time after receiving its certification from the comptroller.(3) Using previously approved authorization forms. A participating credit union may use an authorization form that the comptroller has approved for use by another participating credit union if the form is modified so that the first credit union's name appears at the top of the form.(4) Restrictions on approval of authorization forms by the comptroller. The comptroller may not approve the authorization form of a participating credit union unless:(A) the form has a blank space for insertion of the amount of administrative fees the employee completing the form must pay under this section;(B) the name of the credit union appears at the top of the form; and(C) the form complies with the comptroller's other requirements for format and substance.(5) Revisions of authorization forms. A participating credit union shall revise an authorization form upon request from the comptroller. The credit union may not distribute or otherwise make available a revised form to a state employee until the credit union has received the comptroller's written approval of the form.(f) Requirements for certifying and decertifying credit unions.(1) Request for certification. The comptroller may not certify a credit union unless the comptroller receives a written request for certification from an individual who is authorized by the credit union to make the request.(2) Requirements for requests for certification. The comptroller may not certify a credit union unless its request for certification includes:(A) the credit union's complete name;(B) the street address of the credit union's main branch;(C) the mailing address of the credit union's main branch, if different from the street address;(D) the full name, title, telephone number, email address, and mailing address of the credit union's primary contact;(E) the credit union's Internal Revenue Service employer identification number; and(F) the other information that the comptroller deems necessary.(3) Electronic funds transfers. The comptroller may not certify a credit union unless the credit union:(A) submits to the comptroller a request for deducted amounts to be paid by the comptroller through electronic funds transfers under rules and procedures adopted by the comptroller;(B) submits to each institution of higher education that will be paying deducted amounts directly to the credit union a request for those amounts to be paid through electronic funds transfers; and(C) all those requests are approved.(4) Notifications.(A) The comptroller shall notify a credit union in writing about the comptroller's approval or disapproval of the credit union's request for certification not later than the 30th calendar day after the comptroller receives the request if the request is complete in all respects. If the 30th calendar day is not a workday, the first workday following the 30th calendar day is the deadline.(B) The comptroller shall maintain a list of participating credit unions. The comptroller shall periodically circulate the list to all state agencies and furnish a copy of the list to a state agency upon request.(5) Effective date of certification. The first deduction to a participating credit union may be made from salary or wages paid on the first workday of the second month following the month in which the comptroller certifies the credit union.(6) Termination of certification.(A) A participating credit union may terminate its participation in the deduction program authorized by this section only by terminating its certification.(B) A participating credit union may terminate its certification by providing written notice of termination to the comptroller. However, the credit union may not provide that notice before the credit union has provided written notice of termination to each state employee from whose salary or wages a deduction to the credit union is occurring.(C) A participating credit union's termination of its certification is effective beginning with the salary or wages paid on the first workday of the third month following the month in which the comptroller receives the credit union's proper notice of termination.(g) Payments of deducted amounts.(1) Payments by the comptroller through electronic funds transfers.(A) If feasible, the comptroller shall pay deducted amounts to a participating credit union by electronic funds transfer.(B) If the comptroller pays deducted amounts to a participating credit union by electronic funds transfer, the comptroller may:(i) make one transfer to the credit union and require it to distribute the transferred funds to state employees' accounts according to subsection (h) of this section; or(ii) make one transfer to the credit union account of each state employee.(2) Payments through warrants issued by the comptroller.(A) If it is infeasible for the comptroller to pay deducted amounts to a participating credit union by electronic funds transfer, the comptroller shall:(i) pay the amounts by warrant;(ii) make the warrant payable to the credit union;(iii) require the credit union to distribute the deducted amounts to state employees' accounts according to subsection (h) of this section; and(iv) make the warrant available for pick up by the employer whose employees' deducted amounts are being paid by the warrant.(B) An employer shall hand-deliver or use an overnight delivery service to deliver a warrant picked up under subparagraph (A) of this paragraph to the payee of the warrant.(i) If the warrant relates to salary or wages that are paid on the first workday of a month, the employer shall:(I) release the warrant to an overnight delivery service not later than the second workday of the month for delivery to the payee of the warrant; or(II) hand-deliver the warrant to the payee of the warrant not later than the third workday of the month.(ii) If the warrant relates to salary or wages that are paid on a day other than the first workday of a month, the employer shall:(I) release the warrant to an overnight delivery service not later than the second workday after the employer receives the warrant for delivery to the payee of the warrant; or(II) hand-deliver the warrant to the payee of the warrant not later than the third workday after the employer receives the warrant.(3) Payments by institutions of higher education.(A) This paragraph applies only to deductions from salaries or wages that the comptroller does not pay directly to state employees of institutions of higher education.(B) If feasible, an institution of higher education shall pay deducted amounts to a participating credit union by electronic funds transfer.(C) If an institution of higher education pays deducted amounts to a participating credit union by electronic funds transfer, the institution may:(i) make one transfer to the credit union and require it to distribute the transferred funds to state employees' accounts according to subsection (h) of this section; or(ii) make one transfer to the credit union account of each state employee.(D) If it is infeasible for an institution of higher education to pay deducted amounts to a participating credit union by electronic funds transfer, the institution shall:(i) pay the amounts by check;(ii) make the check payable to the credit union; and(iii) require the credit union to distribute the deducted amounts to state employees' accounts according to subsection (h) of this section.(E) An institution of higher education shall hand-deliver or use an overnight delivery service to deliver a check issued under subparagraph (D) of this paragraph to the payee of the check.(i) If the check relates to salary or wages that are paid on the first workday of a month, the institution shall:(I) release the check to an overnight delivery service not later than the second workday of the month for delivery to the payee of the check; or(II) hand-deliver the check to the payee of the check not later than the third workday of the month.(ii) If the check relates to salary or wages that are paid on a day other than the first workday of a month, the institution shall:(I) release the check to an overnight delivery service not later than the second workday after the date printed on the check for delivery to the payee of the check; or(II) hand-deliver the check to the payee of the check not later than the third workday after the date printed on the check.(h) Distributions of deducted amounts.(1) Applicability of this subsection. This subsection applies to deducted amounts only if they are paid to a participating credit union under subsection (g)(1)(B)(i), (g)(2), (g)(3)(C)(i), or (g)(3)(D) of this section.(2) Requirement. A participating credit union shall distribute the amount deducted from a state employee's salary or wages to the proper account of the employee at the credit union.(3) Deadline for distributions.(A) This subparagraph applies only if a participating credit union receives a payment of deducted amounts through an electronic funds transfer. The credit union shall distribute them according to paragraph (2) of this subsection not later than the first workday after the credit union receives the detail report for the deducted amounts.(B) This subparagraph applies only if a participating credit union receives a payment of deducted amounts through a warrant or check. The credit union shall distribute them according to paragraph (2) of this subsection not later than the first workday after the credit union receives the warrant or check.(4) Distribution of interest earned. This paragraph applies only to the interest that accrues while an employee's deducted amounts are in a credit union account awaiting distribution to the employee's account at the credit union. The interest shall be paid to the employee's account unless the credit union determines the payment would violate federal or state law or an agreement between the credit union and the employee.(i) Charging administrative fees to cover costs incurred to make deductions.(1) Requirement.(A) This subparagraph applies to a state employee whose salary or wages are paid through a warrant issued or an electronic funds transfer initiated by the comptroller. The comptroller may not charge the employee an administrative fee to cover the cost of making the deduction.(B) If a state employee's salary or wages are paid through a check issued or an electronic funds transfer initiated by an institution of higher education and the institution's payroll costs are reimbursed from the state treasury, the institution may determine whether the employee must pay an administrative fee to cover the cost of making the deduction. The fee, if charged, shall be paid through payroll deduction.(2) Determination by an institution of higher education of the amount of the fee.(A) An institution of higher education shall determine the amount of the administrative fee, if any, to be paid by a state employee covered by paragraph (1)(B) of this subsection.(B) The institution shall periodically recalculate the fee to ensure that the amount of the fee equals the cost of making the deduction. Except as otherwise provided in this subparagraph, the institution shall notify each participating credit union and employee of the institution in writing whenever the institution calculates or recalculates the fee. The institution is not required to notify an employee who has not authorized a deduction or a participating credit union to which no employee of the institution has authorized a currently-effective deduction.(3) Payment of the administrative fees. The total amount of administrative fees that an institution of higher education deducts from its state employees' salary and wages shall be paid to the institution.(j) Canceled payments of salary or wages; refunding deducted amounts to employers.(1) Canceled payments of salary or wages.(A) An employer shall notify a participating credit union in writing about the employer's cancellation of a payment of salary or wages to a state employee not later than the day the employer processes the cancellation. This subparagraph applies only if:(i) the payment is canceled after the employer has hand-delivered to the credit union or released to an overnight delivery service a monthly or an additional detail report; and(ii) the deductions covered by the report include deductions from the canceled payment of salary or wages.(B) If an employer notifies a credit union that the employer has canceled a payment of salary or wages to a state employee and if the credit union receives the notice before it distributes deducted amounts to the employee's account, the credit union may not make the distribution.(C) If a credit union's distribution of deducted amounts is prohibited by subparagraph (B) of this paragraph, the employer that paid them to the credit union shall obtain a refund of them according to paragraph (3)(A) or (B) of this subsection.(D) If an employer notifies a credit union that the employer has canceled a payment of salary or wages to a state employee and if the credit union receives the notice after it distributes deducted amounts to the employee's account, the credit union shall withdraw the amounts from the account unless:(i) the credit union determines the withdrawal would violate federal or state law; or(ii) the amount of funds in the account is insufficient for withdrawal of the full amount.(E) A credit union that receives notification under subparagraph (A) of this paragraph that an employer has canceled a payment of salary or wages to a state employee shall promptly notify the employer in writing about whether the employee's deducted amounts have been distributed to the employee's account. If the distribution has occurred, the credit union shall also notify the employer about whether the amounts have been withdrawn from the employee's account under subparagraph (D) of this paragraph. The credit union's notification to the employer must be made in writing.(2) Authorization of refunds. The payment of a state employee's deducted amounts to a participating credit union shall be refunded to the employer only if:(A) they exceed the amount that should have been paid to the credit union, and they have not been distributed to the employee's account at the credit union; or(B) they have been withdrawn from the employee's account at the credit union according to paragraph (1)(D) of this subsection.(3) Method for accomplishing refunds. If a refund from a participating credit union is required by paragraph (1)(C) or (2) of this subsection, the refund shall be accomplished by:(A) the employer of the state employee whose deducted amounts are being refunded subtracting the amount of the refund from a subsequent payment of deducted amounts to the credit union; or(B) the credit union issuing a check to the employer in the amount of the refund, if authorized by paragraph (4) of this subsection.(4) Paying refunds by check. A participating credit union may issue a check to an employer only if it submits to the credit union a written request for the refund to be made by check.(5) Deadline for paying refunds by check. If a participating credit union is authorized by paragraph (4) of this subsection to make a refund to an employer by check, the credit union shall ensure that the employer receives the check not later than the 30th calendar day after the date on which the credit union receives the employer's written request for the refund. If the 30th calendar day is not a workday, the first workday following the 30th calendar day is the deadline.(k) Responsibilities of participating credit unions.(1) Notification to the comptroller. A participating credit union shall notify the comptroller in writing immediately after a change occurs to:(A) the credit union's name;(B) the street address of the credit union's main branch;(C) the mailing address of the credit union's main branch, if different from the street address;(D) the full name, title, telephone number, email address, or mailing address of the credit union's primary contact; or(E) the credit union's routing number or bank account number.(2) Primary contact. The individual that a credit union designates as its primary contact must represent the credit union for the purposes of:(A) communicating with the comptroller, including receiving and responding to correspondence from the comptroller;(B) disseminating information, including information about the requirements of this section, to representatives of the credit union; and(C) communicating with employers about payment reconciliation and refunds.(3) Payment reconciliation and discrepancies.(A) A participating credit union shall reconcile the detail report provided by an employer under subsection (l) of this section with the deducted amounts paid to the credit union by the employer under subsection (g) of this section.(B) A participating credit union shall report all discrepancies between a detail report provided by an employer and the actual amount of deductions received from the employer. The credit union shall provide in a secure manner its report to the employer that submitted the detail report. The credit union must ensure that its report is received not later than the 60th calendar day after the day on which the detail report was mailed, hand-delivered, or released, whichever applies. If the 60th calendar day is not a workday, the first workday following the 60th calendar day is the deadline.(4) Submission of detail reports. A participating credit union that wants a monthly or additional detail report to be submitted to an entity other than the credit union must notify the comptroller in writing. An employer is not required to submit the report to the entity before the employer has received notification from the comptroller that the report must be submitted to the entity.(l) Responsibilities of employers.(1) Authorization forms. An employer:(A) may accept an authorization form only if it complies with this section; and(B) is not required to accept an authorization form that contains an obvious alteration without the state employee's written consent to the alteration.(2) Monthly detail reports to participating credit unions.(A) An employer shall submit in a secure manner a monthly detail report to each participating credit union that received or should have received a payment of amounts deducted from the salary or wages of at least one of the employer's state employees. If the participating credit union has notified the comptroller in writing that the monthly detail reports should be submitted to an entity other than the credit union, the reports shall be submitted to that entity.(B) A monthly detail report may cover only the deductions from salary or wages that are paid on the first workday of the month. Deducted amounts that were paid by electronic funds transfer directly to the credit union accounts of state employees may not be included in the report.(C) An employer shall ensure that a monthly detail report is received by the participating credit union or other entity under subparagraph (A) of this paragraph not later than the third workday of the month.(D) A monthly detail report to a participating credit union for a particular month must include:(i) the name and social security number of each state employee from whose salary or wages deducted amounts were paid to the credit union for the month; and(ii) the amount of deductions from each state employee's salary or wages that were paid to the credit union for the month.(E) An employer shall submit its monthly detail reports in the format required by the comptroller.(3) Additional detail reports to participating credit unions.(A) An employer shall submit in a secure manner an additional detail report to each participating credit union that received or should have received a payment of amounts deducted from the salary or wages of at least one of the employer's state employees. If the participating credit union has notified the comptroller in writing that the additional detail reports should be submitted to an entity other than the credit union, the reports shall be submitted to that entity.(B) An additional detail report may cover only the deductions from salary or wages that are paid on a day other than the first workday of the month. Deducted amounts that were paid by electronic funds transfer directly to the credit union accounts of state employees may not be included in the report.(C) This subparagraph applies only to an additional detail report that covers deducted amounts which are paid by electronic funds transfer to a participating credit union. An employer shall ensure that an additional detail report is received by the participating credit union or other entity under subparagraph (A) of this paragraph not later than the third workday of the month after the deducted amounts are paid to the credit union.(D) This subparagraph applies only to an additional detail report that covers deducted amounts which are paid by warrant or check to a participating credit union. The report shall accompany the warrant or check when it is mailed or otherwise delivered to the credit union.(E) An additional detail report to a participating credit union for a particular month must include:(i) the name and social security number of each state employee from whose salary or wages deducted amounts were paid to the credit union for the month; and(ii) the amount of deductions from each state employee's salary or wages that were paid to the credit union for the month.(F) An employer shall submit its additional detail reports in the format required by the comptroller.(4) Payment discrepancies. An employer that receives a report of discrepancies from a participating credit union shall investigate them and notify the credit union in writing of the action to be taken to eliminate them. The employer shall provide the notification not later than the 30th calendar day after the employer receives the report. If the 30th calendar day is not a workday, the first workday following the 30th calendar day is the deadline.(m) Responsibilities of the comptroller. The comptroller shall notify all state agencies in writing whenever the comptroller receives written notification from a participating credit union that monthly or additional detail reports should be submitted to an entity other than the credit union.",
            "sourceNote": "Source Note: The provisions of this §5.47 adopted to be effective May 22, 1995, 20 TexReg 3468; amended to be effective November 19, 1996, 21 TexReg 10989; amended to be effective April 21, 2022, 47 TexReg 2031."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227554&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227554",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "D",
                "label": "CLAIMS PROCESSING--PAYROLL"
            },
            "rule": {
                "number": "§5.48",
                "label": "Deductions for Contributions to Charitable Organizations"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205190&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "205190",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Campaign coordinator--The state employee who has volunteered and been designated by the chief administrator of a state agency to coordinate the state employee charitable campaign for that agency.(2) Campaign material--A logo identifying the state employee charitable campaign, a campaign slogan, a campaign film, a campaign donor brochure, a donor authorization form, an online giving tool website and/or application, and other materials as approved by the state policy committee.(3) Campaign year--For salary or wages paid once each month, the payroll periods from December 1st through November 30th. For salary or wages paid twice each month, the payroll periods from December 16th through December 15th. For salary or wages paid every other week by a state agency that is not an institution of higher education, the 26 consecutive payroll periods beginning with the period that corresponds to the payment of salary or wages occurring on or closest to, but not after, December 31st. For salary or wages paid every other week by an institution of higher education, the 26 consecutive payroll periods beginning with the period designated by the institution if the period is entirely within December.(4) Charitable organization--Has the meaning assigned by Government Code, §659.131.(5) Comptroller--The Comptroller of Public Accounts for the State of Texas.(6) Comptroller's electronic funds transfer system--The system authorized by Government Code, §403.016, that the comptroller uses to initiate payments instead of issuing warrants.(7) Deduction--The amount subtracted from a state employee's salary or wages to make a contribution to a local campaign manager or a statewide federation or fund that has been assigned a payee identification number by the comptroller.(8) Designated representative--A state employee volunteer or other individual named by a local campaign manager or a statewide federation or fund as its representative.(9) Eligible charitable organization--A charitable organization that is determined to be eligible to participate in the state employee charitable campaign as provided by this section and Government Code, §659.146.(10) Eligible local charitable organization--A local charitable organization that has been approved for local participation in the state employee charitable campaign.(11) Employer--A state agency that employs at least one state employee.(12) Federated community campaign organization--Has the meaning assigned by Government Code, §659.131.(13) Federation or fund--Has the meaning assigned by Government Code, §659.131.(14) Generic campaign materials--Campaign materials that have not been modified to reflect a particular local campaign area's participants or a local employee committee.(15) Health and human services--Has the meaning assigned by Government Code, §659.131.(16) Holiday--A state or national holiday as specified by Government Code, §662.003. The term does not include a state or national holiday if the General Appropriations Act prohibits state agencies from observing the holiday.(17) Include--A term of enlargement and not of limitation or exclusive enumeration. The use of the term does not create a presumption that components not expressed are excluded.(18) Institution of higher education--Has the meaning assigned by Education Code, §61.003. The term does not include a public junior college that has decided not to participate in the state employee charitable contribution program in accordance with subsection (x) of this section.(19) Local campaign area--Has the meaning assigned by Government Code, §659.131.(20) Local campaign manager--Any local campaign manager or managers appointed by the state policy committee under Government Code, §659.140(e)(1)(C).(21) Local campaign materials--Campaign materials that have been modified to reflect a particular local campaign area's participants and the local employee committee for the area if the state policy committee has approved the modifications, and additional materials that the state policy committee has approved because they are based on and consistent with the campaign materials approved by the committee.(22) Local charitable organization--Has the meaning assigned by Government Code, §659.131.(23) Local employee committee--Any local employee committee or committees appointed by the state policy committee under Government Code, §659.140(e)(1)(B).(24) May not--A prohibition. The term does not mean \"might not\" or its equivalents.(25) Payee identification number--The 14-digit number that the comptroller assigns to each direct recipient of a payment made by the comptroller for the State of Texas.(26) Public junior college--Has the meaning assigned by Education Code, §61.003. The term includes a community college.(27) Salary or wages--Base salary or wages, longevity pay, or hazardous duty pay.(28) State advisory committee--Has the meaning assigned by Government Code, §659.131.(29) State agency--Has the meaning assigned by Government Code, §659.131.(30) State campaign manager--A federated community campaign organization or a charitable organization that is selected by the state policy committee as provided by this section to coordinate state employee charitable campaign operations with any local campaign managers appointed by the state policy committee.(31) State employee--An employee of a state agency. The term does not include an employee of a public junior college that is not participating in the state employee charitable contribution program in accordance with subsection (x) of this section.(32) State employee charitable campaign--Has the meaning assigned by Government Code, §659.131.(33) State employee charitable contribution program--The charitable deduction program authorized by Government Code, Chapter 659, Subchapter I (exclusive of the deductions authorized by Government Code, §659.1311(b) - (c)).(34) State policy committee--Has the meaning assigned by Government Code, §659.131.(35) Statewide federation or fund--A federation or fund that has been approved for statewide participation in the state employee charitable campaign.(36) Workday--A calendar day other than Saturday, Sunday, or a holiday.(b) Deductions.(1) Authorization of deductions.(A) A state employee who is not employed by an institution of higher education may authorize not more than three monthly deductions from the employee's salary or wages.(B) A state employee who is employed by an institution of higher education may authorize not more than three monthly deductions from the employee's salary or wages, if the institution has not specified a higher maximum number of deductions that its employees may authorize, If the institution has specified a higher maximum number, then the employee may authorize not more than that number.(C) A state employee may authorize only one deduction to any particular statewide federation or fund or local campaign manager. (D) A state employee may authorize a deduction only if the employee:(i) properly completes an authorization form or an electronic deduction authorization entered through the online giving tool website or application; and(ii) submits the form to a designated representative of the statewide federation or fund or the local campaign manager to which the deduction will be paid or completes an electronic deduction authorization through the online giving tool website or application.(E) Except as provided in this subparagraph, a state employee may authorize a deduction only during a state employee charitable campaign.(i) State law says that a state agency, other than an institution of higher education, is not required to permit its state employees to authorize a deduction until the first full payroll period after the agency is converted to a system in which uniform statewide payroll procedures are followed. A state agency covered by that law shall permit its state employees to authorize deductions so that they are effective not later than the first full payroll period after conversion of the agency. Those authorizations may be made even if a state employee charitable campaign is not occurring when the authorizations are made.(ii) A state employee who begins employment with the state may authorize a deduction if the employee's employer receives the employee's properly completed authorization form or electronic deduction authorization not later than the 30th day after the employee's first day of employment with the agency. A new state employee may authorize a deduction even if a state employee charitable campaign is not occurring when the employment begins or the form or access to the electronic online giving tool website or application is provided. This clause does not apply to a state employee who transfers from one state agency to a second state agency.(F) Neither the comptroller nor a state agency is liable or responsible for any damages or other consequences resulting from a state employee authorizing an incorrect amount of a deduction.(2) Minimum amount of deductions. If a state employee authorizes a deduction, the minimum amount of the deduction is two dollars per month. This minimum applies to each deduction authorized by the employee. For example, if the employee authorizes two deductions, then the amount of each of those deductions must be at least two dollars per month.(3) Changes in the amount of deductions.(A) At any time during a campaign year, a state employee may authorize a change in the amount to be deducted from the employee's salary or wages during that year.(B) A state employee may authorize a change only by submitting a written authorization or electronic deduction authorization change to the employee's employer. The authorization may be a properly completed authorization form, electronic deduction authorization entered through the online giving tool website or application, or another type of written communication that complies with subparagraph (C) of this paragraph.(C) To be valid, a written communication, other than an authorization form or electronic deduction authorization, that a state employee submits for the purpose of authorizing a change must specify or contain:(i) the employee's name and appropriate identifying information;(ii) the name of the employee's employer;(iii) the six-digit code number of the charity for which the change is being authorized or, if the number is unknown, the charity's name;(iv) the new amount to be deducted;(v) the effective date of the change; and(vi) the employee's original signature.(D) A state employee may not change the statewide federation or fund or the local campaign manager that receives deducted amounts if the change would be provided outside the time a state employee charitable campaign is being conducted.(E) A state employee may not change the eligible charitable organizations designated to receive deducted amounts paid to a statewide federation or fund if the change would be provided outside the time a state employee charitable campaign is being conducted.(F) A state employee may not change the eligible local charitable organizations designated to receive deducted amounts paid to a local campaign manager if the change would be provided outside the time a state employee charitable campaign is being conducted.(4) Sufficiency of salary or wages to support a deduction. (A) A state employee is solely responsible for ensuring that the employee's salary or wages are sufficient to support a deduction.(B) If a state employee's salary or wages are sufficient to support only part of a deduction, then no part of the deduction may be made.(C) If a state employee has multiple deductions and the employee's salary or wages are insufficient to support all the deductions, then none of the deductions may be made.(D) The amount that may not be deducted from a state employee's salary or wages because they are insufficient to support the deduction may not be made up by deducting the amount from subsequent payments of salary or wages.(5) Timing of deductions.(A) Except as provided in subparagraph (B) of this paragraph, a deduction may be made only from the salary or wages that are paid on the first workday of a month.(B) If a state employee is not entitled to receive a payment of salary or wages on the first workday of a month, then the employee's employer may designate the payment of salary or wages during the month from which a deduction will be made. A deduction may be made only once each month.(6) Cancellation of deductions.(A) A state employee may cancel a deduction at any time by submitting a written cancellation notice to the employee's employer or by canceling an electronic deduction authorization through the online giving tool website or application. The notice may be a properly completed authorization form, another type of written communication, or an entry into the online giving tool website or application cancelling the deduction authorization. The authorization form or written communication shall comply with subparagraph (B) of this paragraph.(B) To be valid, a written communication, other than an authorization form or electronic deduction authorization, that a state employee submits for the purpose of canceling a deduction must specify or contain:(i) the employee's name and appropriate identifying information;(ii) the name of the employee's employer;(iii) the six-digit code number of the charity for which the cancellation is being made or, if the number is unknown, the charity's name;(iv) the amount of the deduction to be canceled;(v) the effective date of the cancellation; and(vi) the employee's original signature.(7) Interagency transfers of state employees.(A) A deduction that started while a state employee was employed by a state agency may resume after the employee transfers to a second state agency only if:(i) the employee requests a copy of the employee's authorization form from the first state agency and submits the copy to the second state agency or alternatively requests a copy of the report from the online giving tool website or application or other documentation acceptable to the second state agency;(ii) the employee properly completes and submits an additional authorization form to the second state agency or completes an electronic deduction authorization, if the agency requires submission of the form or completion of the electronic deduction authorization; and(iii) the second state agency receives the copy of the employee's authorization form or electronic deduction authorization and the additional authorization form or electronic deduction authorization, if required, not later than the 30th day after the employee's first day of employment by the second state agency.(B) A deduction that may resume under subparagraph (A) of this paragraph shall become effective at the second state agency not later than with the salary and wages paid on the first workday of the second month following the later of:(i) the month in which the agency receives the copy of the authorization form or electronic deduction authorization to which subparagraph (A)(i) of this paragraph refers; or(ii) the month in which the agency receives the additional authorization form or electronic deduction authorization, if the agency requires submission of the form or completion of the electronic deduction authorization.(C) This subparagraph applies only if a state agency requires an additional authorization form or electronic deduction authorization to be submitted under subparagraph (A)(ii) of this paragraph. The statewide federation or fund or the local campaign manager named on the form or electronic deduction authorization must be the same as that named on the original authorization form or electronic deduction authorization. The additional authorization form or electronic deduction authorization may not make any changes other than those that a state employee who has not changed employers may make after a state employee charitable campaign has ended.(c) Designation of charitable organizations to receive deducted amounts.(1) Receiving deducted amounts through local campaign managers.(A) This subparagraph applies to a state employee only if not employed by an institution of higher education. A state employee's authorization of a deduction to a local campaign manager may designate not more than nine eligible local charitable organizations to receive the deducted amounts through the manager.(B) This subparagraph applies to a state employee only if employed by an institution of higher education. A state employee's authorization of a deduction to a local campaign manager may designate one or more eligible local charitable organizations to receive the employee's deducted amounts through the manager. The employee may designate not more than nine organizations if the employing institution of higher education has not specified a higher maximum number of designations that its employees may make. If the institution has specified a higher maximum number, then the employee may designate not more than that number.(C) If a state employee's authorization of a deduction to a local campaign manager designates only one eligible local charitable organization, then the organization's designated initial distribution amount with respect to the employee is equal to the employee's entire deduction to the local campaign manager.(D) If a state employee's authorization of a deduction to a local campaign manager designates more than one eligible local charitable organization, then the designation is valid only if it specifies the designated initial distribution amount for each organization. (E) If an eligible local charitable organization that a state employee designates under subparagraph (A) or (B) of this paragraph is a federation or fund, then the federation or fund shall distribute the deducted amounts it receives to its affiliated eligible charitable organizations according to its policy.(F) This subparagraph applies if a state employee's authorization of a deduction to a local campaign manager does not contain a valid designation. The undesignated initial distribution amounts with respect to the employee for eligible local charitable organizations and statewide federations or funds shall be determined according to this subparagraph.(i) Only an eligible local charitable organization that has been approved to participate in the local campaign area may have an undesignated initial distribution amount. Only a statewide federation or fund to which state employees in the local campaign area have authorized deductions may have an undesignated initial distribution amount.(ii) The undesignated initial distribution amount for an eligible local charitable organization is equal to the distribution percentage for the organization multiplied by the amount of the employee's deduction authorization to the local campaign manager. The distribution percentage is equal to the organization's total designated initial distribution amount as determined or specified under subparagraphs (C) and (D) of this paragraph for all state employees in the local campaign area divided by the sum of:(I) the total designated initial distribution amount for all eligible local charitable organizations in the local campaign area as determined or specified under subparagraphs (C) and (D) of this paragraph; and(II) the total amount of deductions authorized to statewide federations or funds by state employees in the local campaign area.(iii) The undesignated initial distribution amount for a statewide federation or fund is equal to the distribution percentage for the federation or fund multiplied by the amount of the employee's deduction authorization to the local campaign manager. The distribution percentage is equal to the total amount of deductions authorized to the federation or fund by state employees in the local campaign area divided by the sum of:(I) the total designated initial distribution amount for all eligible local charitable organizations in the local campaign area as determined or specified under subparagraphs (C) and (D) of this paragraph; and(II) the total amount of deductions authorized to statewide federations or funds by state employees in the local campaign area.(G) The following example illustrates the calculation of undesignated initial distribution amounts according to subparagraph (F) of this paragraph.(i) The following assumptions apply in this example.(I) State employees in the Austin local campaign area have authorized $15,000 in deductions to the Austin local campaign manager. Of that amount, state employees have designated $10,000 for distribution to the following eligible local charitable organizations. Organization 1 has been designated to receive $5,000. Organization 2 has been designated to receive $3,000. And Organization 3 has been designated to receive $2,000.(II) Of the $15,000 in authorized deductions to the Austin local campaign manager, $5,000 is undesignated.(III) State employees in the Austin local campaign area have authorized total deductions of $10,000 to the following statewide federations or funds. Organizations 4 and 5 have each been authorized to receive $5,000.(ii) The calculation of undesignated initial distribution amounts in this subparagraph relates only to the $5,000 in undesignated deductions to the Austin local campaign manager. This is because an eligible local charitable organization or a statewide federation or fund has an undesignated initial distribution amount only with respect to undesignated deductions.(iii) The first step is to determine the designated initial distribution amount for each eligible local charitable organization listed in clause (i)(I) of this subparagraph. That amount for each organization is the total amount of deductions that state employees have designated to the organization. Therefore, the designated initial distribution amount for Organization 1 is $5,000, Organization 2 is $3,000, and Organization 3 is $2,000.(iv) The second step is to determine the distribution percentage for each eligible local charitable organization listed in clause (i)(I) of this subparagraph. The distribution percentage must be determined according to subparagraph (F)(ii) of this paragraph. The distribution percentage for each organization is as follows:(I) Organization 1--25%;(II) Organization 2--15%;(III) Organization 3--10%.(v) The third step is to determine the distribution percentage for each statewide federation or fund listed in clause (i)(III) of this subparagraph. The distribution percentage must be determined according to subparagraph (F)(iii) of this paragraph. The distribution percentage for each federation or fund is as follows:(I) Organization 4--25%;(II) Organization 5--25%.(vi) The fourth step is to determine the undesignated initial distribution amount for each eligible local charitable organization listed in clause (i)(I) of this subparagraph. The amount must be determined by multiplying the organization's distribution percentage by the amount of undesignated deductions to the Austin local campaign manager. The amount for each organization is as follows:(I) Organization 1--$1,250;(II) Organization 2--$750;(III) Organization 3--$500.(vii) The fifth and final step is to determine the undesignated initial distribution amount for each statewide federation or fund listed in clause (i)(III) of this subparagraph. The amount must be determined by multiplying the federation or fund's distribution percentage by the amount of undesignated deductions to the Austin local campaign manager. The amount for each organization is as follows:(I) Organization 4--$1,250;(II) Organization 5--$1,250.(H) Notwithstanding anything in this paragraph, a local campaign manager shall distribute deducted amounts to an eligible local charitable organization or a statewide federation or fund according to the percentage method required by subsection (j) of this section. A designated or undesignated initial distribution amount specified or determined under this paragraph is only the starting point for calculating the amount to be distributed.(2) Receiving deducted amounts through statewide federations or funds.(A) This subparagraph applies to a state employee only if not employed by an institution of higher education. A state employee's authorization of a deduction to a statewide federation or fund may designate not more than nine eligible charitable organizations to receive the deducted amounts through the federation or fund.(B) This subparagraph applies to a state employee only if employed by an institution of higher education. A state employee's authorization of a deduction to a statewide federation or fund may designate one or more eligible charitable organizations to receive the employee's deducted amounts through the federation or fund. The employee may designate not more than nine organizations if the employing institution of higher education has not specified a higher maximum number of designations that its employees may make. If the institution has specified a higher maximum number, then the employee may designate not more than that number.(C) If a state employee's authorization of a deduction to a statewide federation or fund designates only one eligible charitable organization, then the organization's designated initial distribution amount with respect to the employee is equal to the employee's entire deduction to the statewide federation or fund.(D) If a state employee's authorization of a deduction to a statewide federation or fund designates more than one eligible charitable organization, then the designation is valid only if it specifies the designated initial distribution amount for each organization. (E) This subparagraph applies if a state employee's authorization of a deduction to a statewide federation or fund does not contain a valid designation. The statewide federation or fund shall determine the undesignated initial distribution amount with respect to the employee for each eligible charitable organization affiliated with the federation or fund. The determination must be accomplished according to the federation or fund's policy.(F) Notwithstanding anything in this paragraph, a statewide federation or fund shall distribute deducted amounts to an eligible charitable organization according to the percentage method required by subsection (k) of this section. A designated or undesignated initial distribution amount specified or determined under this paragraph is only the starting point for calculating the amount to be distributed.(d) State employee charitable campaign.(1) Time of the state employee charitable campaign. The state employee charitable campaign shall be conducted annually during the period after August 31st and before November 1st.(2) Reimbursement of expenses incurred by state employees while representing charitable organizations. A state agency may not reimburse a state employee for expenses incurred while acting as a representative of a charitable organization.(3) Participation by state employees. Participation by a state employee in the state employee charitable campaign is voluntary. (e) Effective dates of authorization forms and electronic deduction authorizations.(1) Effective date of authorization forms and electronic deduction authorizations provided during a state employee charitable campaign. A state employee's authorization form or electronic deduction authorization that is provided during a state employee charitable campaign is effective for the following campaign year if the form or electronic deduction authorization is completed properly, the form or electronic deduction authorization is signed by the employee, and the employee's employer receives the properly completed and signed form or electronic deduction authorization not later than November 15th before the start of that year. The deductions may not start before the beginning of that year.(2) Effective date of authorization forms and electronic deduction authorizations provided immediately after a state agency is converted to a system in which uniform statewide payroll procedures are followed. State law says that a state agency, other than an institution of higher education, is not required to permit its state employees to authorize a deduction until the first full payroll period after the agency is converted to a system in which uniform statewide payroll procedures are followed. A state agency covered by that law shall permit its employees to authorize deductions so that they are effective not later than the first full payroll period after conversion of the agency. To be effective by that date, a properly completed authorization form or electronic deduction authorization must be received by the agency not later than the tenth workday before the first day of the agency's first full monthly payroll period after conversion.(3) Effective date of authorization forms and electronic deduction authorizations provided by new state employees.(A) Paragraph (1) of this subsection applies to a new state employee's authorization form or electronic deduction authorization if it:(i) is received by the employee's employer during a state employee charitable campaign; and(ii) authorizes a deduction to begin during the campaign year following the campaign year in which the form or electronic deduction authorization is received.(B) This subparagraph applies to a new state employee's authorization form or electronic deduction authorization only if the form or electronic deduction authorization authorizes a deduction to begin during the same campaign year as the campaign year in which the employee's employer receives the form or electronic deduction authorization. The employer may decide when the deduction will take effect, subject to the following limitations.(i) Except as provided in clause (ii) of this subparagraph, the deduction must begin not later than with the employee's salary or wages that are paid on the first workday of the second month following the month in which the employer receives the form or electronic deduction authorization.(ii) If the employer receives the form or electronic deduction authorization during October or November, then the employer may decide whether and when to give effect to the form or electronic deduction authorization.(4) Effective date of authorization forms and electronic deduction authorizations that request changes in deductions.(A) This paragraph applies only to a state employee's authorization form or electronic deduction authorization that requests a change to a deduction.(B) The employer of the employee may decide when the change will take effect, subject to the following limitations.(i) Except as provided in clause (ii) of this subparagraph, the change must take effect not later than with the employee's salary or wages that are paid on the first workday of the second month following the month in which the employer receives the form or electronic deduction authorization.(ii) If the employer receives the form or electronic deduction authorization during October or November of a campaign year and the form or electronic deduction authorization requests a change in a deduction for the year, then the employer may decide whether and when to give effect to the form or electronic deduction authorization. (C) The following example illustrates the requirements of this paragraph. Assume that a state agency receives an authorization form or electronic deduction authorization on July 2, 2016, and that the form or electronic deduction authorization requests a decrease in the amount of a deduction. The agency may make the decrease effective with the deduction that occurs on the August 1, 2016, salary payment. If the agency does not, then the agency must make the decrease effective with the deduction that occurs on the September 1, 2016, salary payment.(5) Effective date of authorization forms and electronic deduction authorizations that request cancellations of deductions.(A) This paragraph applies only to a state employee's authorization form or electronic deduction authorization that requests the cancellation of a deduction.(B) The employer of the employee may decide when the cancellation will take effect. The cancellation must take effect, however, not later than with the employee's salary or wages that are paid on the first workday of the second month following the month in which the employer receives the form or electronic deduction authorization. (C) The following example illustrates the requirements of this paragraph. Assume that a state agency receives an authorization form or electronic deduction authorization on July 2, 2016, and that the form or electronic deduction authorization requests the cancellation of a deduction. The agency may make the cancellation effective with the August 1, 2016, salary payment. If the agency does not, then the agency must make the cancellation effective with the September 1, 2016, salary payment.(f) Requirements for the content and format of authorization forms.(1) Prohibition against distributing or providing authorization forms. A local campaign manager or a statewide federation or fund may distribute or provide an authorization form to a state employee only if both the comptroller and the state policy committee have approved the form.(2) Requirement to produce authorization forms. A local campaign manager or a statewide federation or fund must produce an authorization form that complies with the comptroller's requirements and this section.(3) Restrictions on approval of authorization forms. Neither the comptroller nor the state policy committee may approve the authorization form of a local campaign manager or a statewide federation or fund unless the form:(A) is at least 8 1/2 inches wide and 11 inches long;(B) states that statewide federations or funds and local campaign managers are required to use the percentage method to distribute a state employee's deducted amounts to eligible charitable organizations designated by the employee instead of matching deducted amounts received to actual designations;(C) accurately describes the percentage method; and(D) complies with the comptroller's requirements for format and substance.(g) Procedure for federations or funds to apply for statewide participation.(1) Request for statewide participation. A federation or fund may not be a statewide federation or fund unless the federation or fund applies to the state policy committee for that status in accordance with this section, Government Code, §659.146, and the committee's procedures.(2) Requirements for the application. The application of a federation or fund to be a statewide federation or fund must include:(A) a letter from the presiding officer of the federation or fund's board of directors certifying compliance by the federation or fund and its affiliated agencies with the eligibility requirements of Government Code, §659.146;(B) a copy of a letter from each affiliate of the federation or fund certifying that the federation or fund serves as the affiliate's representative and fiscal agent in the state employee charitable campaign; (C) a copy of the conflict of interest policy approved by the federation or fund's board of directors, which prohibits its board members, executive director, and staff from engaging in business transactions in which they have material conflicting interests;(D) if the executive director of the federation or fund receives material compensation for services rendered to any organization other than the federation or fund, a full disclosure of:(i) the name of the organization;(ii) the nature and amount of the compensation; and(iii) the relationship of the organization to the federation or fund;(E) a copy of the federation or fund's current operating budget, signed by the presiding officer of the federation or fund's board of directors; and(F) an acknowledgment that the federation or fund is responsible for filing any appeals from its affiliated agencies that have not secured approval for statewide or local participation in the state employee charitable campaign.(3) Notification of the comptroller. Upon approval of a federation or fund for statewide participation in the state employee charitable campaign, the state policy committee shall submit to the comptroller:(A) the complete name of the federation or fund;(B) the mailing address of the federation or fund;(C) the full name, title, telephone number, and mailing address of the federation or fund's primary contact;(D) the payee identification number of the federation or fund, when available; and(E) the other information deemed necessary by the comptroller. (4) Payee identification numbers. A federation or fund that has been approved for statewide participation and that does not have a payee identification number shall submit a request for one to the comptroller.(5) Electronic funds transfers.(A) A federation or fund that has been approved for statewide participation in the state employee charitable campaign shall submit a request to be paid by the comptroller through electronic funds transfers under rules adopted by the comptroller. This subparagraph applies only to the extent that the comptroller's electronic funds transfer system is used.(B) A federation or fund that has been approved for statewide participation in the state employee charitable campaign shall submit a request to be paid by an institution of higher education through electronic funds transfers under rules or procedures adopted by the institution. This subparagraph applies only to the extent that the comptroller's electronic funds transfer system is not used.(6) Beginning of deductions. The first payment of deducted amounts to a statewide federation or fund shall occur the first month of the first campaign year that begins after the federation or fund is approved for statewide participation in the state employee charitable campaign.(h) Procedure for charitable organizations to apply for local participation.(1) Request for local participation.(A) A charitable organization may not be an eligible local charitable organization unless it applies to the state policy committee and any applicable local employee committee appointed by the state policy committee in accordance with this section, Government Code, §659.147, and the committee's procedures.(B) A federation or fund that wants to be an eligible local charitable organization may apply on behalf of its affiliated agencies.(2) Requirements for applications from federations or funds. If a charitable organization applying to be an eligible local charitable organization is a federation or fund, then the organization must provide to the state policy committee and any applicable local employee committee appointed by the state policy committee:(A) a letter from the presiding officer of the federation or fund's board of directors certifying compliance by the federation or fund and its affiliated agencies with the eligibility requirements of Government Code, §659.147;(B) a copy of a letter from each affiliate of the federation or fund certifying that the federation or fund serves as the affiliate's representative and fiscal agent in the state employee charitable campaign; (C) a copy of the conflict of interest policy approved by the federation or fund's board of directors, which prohibits its board members, executive director, and staff from engaging in business transactions in which they have material conflicting interests;(D) if the executive director of the federation or fund receives material compensation for services rendered to any organization other than the federation or fund, a full disclosure of:(i) the name of the organization;(ii) the nature and amount of the compensation; and(iii) the relationship of the organization to the federation or fund;(E) a copy of the federation or fund's current operating budget, signed by the presiding officer of the federation or fund's board of directors; and(F) an acknowledgment that the federation or fund is responsible for filing any appeals from its affiliated agencies that have not secured approval for statewide or local participation in the state employee charitable campaign.(3) Beginning of deductions. The first deduction to pay an eligible local charitable organization shall occur the first month of the first campaign year that begins after the charitable organization is approved for local participation in the state employee charitable campaign.(i) Payments of deductions.(1) Prohibited payments to eligible local charitable organizations.(A) Neither the comptroller nor an institution of higher education may pay deducted amounts directly to an eligible local charitable organization.(B) Except as otherwise provided in this subparagraph, deducted amounts shall be paid directly to the appropriate local campaign manager if one has been appointed by the state policy committee. If the eligible local charitable organization involved is an affiliate of a statewide federation or fund, then the deducted amounts shall be paid directly to the federation or fund.(2) Payments by the comptroller through electronic funds transfers. If feasible, the comptroller shall pay deducted amounts to a local campaign manager or a statewide federation or fund by electronic funds transfer.(3) Payments through warrants issued by the comptroller.(A) This paragraph applies only if it is infeasible for the comptroller to pay deducted amounts by electronic funds transfer. (B) The comptroller shall pay deducted amounts by warrant and make the warrant available for pick up by the state agency whose employees' deductions are being paid by the warrant.(C) A state agency shall mail or hand deliver a warrant picked up under subparagraph (B) of this paragraph to the payee of the warrant.(D) Except as provided in subparagraph (E) of this paragraph, the deadline for mailing or hand delivering a warrant is the tenth workday of the month following the month when the salary or wages from which the deductions are made were earned.(E) This subparagraph applies only to a deduction that occurs after the tenth workday of the month following the month when the salary or wages from which the deduction is made were earned. The deadline for a state agency to mail or hand deliver a warrant to pay the deduction is the second workday after the agency receives the warrant.(4) Payments by institutions of higher education.(A) This paragraph applies to deducted amounts from the salary or wages of a state employee of an institution of higher education only if the comptroller does not pay those amounts directly to a local campaign manager or a statewide federation or fund.(B) If feasible, an institution of higher education shall pay deducted amounts to a local campaign manager or a statewide federation or fund by electronic funds transfer.(C) If it is infeasible for an institution of higher education to pay deducted amounts by electronic funds transfer, then the institution shall make the payment by check.(D) This subparagraph applies only if an institution of higher education pays deducted amounts by check.(i) This clause applies only to deductions from salary or wages that are paid on the first workday of a month. An institution of higher education shall mail or hand deliver its check to the payee of the check not later than the 10th workday of the month.(ii) This clause applies only to deductions from salary or wages that are paid on a day other than the first workday of a month. An institution of higher education shall mail or hand deliver its check to the payee of the check not later than the 10th workday of the month following the month in which the salary or wages were earned.(j) Distributions of deductions by any local campaign managers appointed by the state policy committee.(1) Requirement to use the percentage method. A local campaign manager shall use the percentage method to distribute deducted amounts to eligible local charitable organizations and statewide federations or funds.(2) Description of the percentage method.(A) Immediately after the end of a state employee charitable campaign, a local campaign manager shall calculate the contribution percentage for:(i) each eligible local charitable organization that has been approved to participate in the local campaign area under the manager's responsibility; and(ii) each statewide federation or fund to which state employees in the local campaign area have authorized deductions.(B) The contribution percentage for an eligible local charitable organization is the ratio of:(i) the sum of:(I) the organization's designated initial distribution amount with respect to all state employees in the local campaign area as determined under subsection (c)(1)(C) - (D) of this section; and(II) the organization's undesignated initial distribution amount with respect to all state employees in the local campaign area as determined under subsection (c)(1)(F)(ii) of this section; to(ii) the total amount of deductions authorized to the local campaign manager on authorization forms and electronic deduction authorizations completed during the campaign.(C) The contribution percentage for a statewide federation or fund is the ratio of:(i) the federation or fund's undesignated initial distribution amount with respect to all state employees in the local campaign area as determined under subsection (c)(1)(F)(iii) of this section; to(ii) the total amount of deductions authorized to the local campaign manager on authorization forms and electronic deduction authorizations completed during the campaign.(D) The contribution percentage for an eligible local charitable organization or a statewide federation or fund may not be recalculated before the conclusion of the next state employee charitable campaign.(E) The amount of deductions that a local campaign manager distributes to an eligible local charitable organization or a statewide federation or fund is equal to the product of:(i) the contribution percentage of the organization or federation or fund; and(ii) the total amount of deductions the manager is distributing.(3) Example of the percentage method. This paragraph illustrates the percentage method described in paragraph (2) of this subsection.(A) The following assumptions apply in this example.(i) Organization 1, an eligible local charitable organization, has a designated initial distribution amount of $5,000 and an undesignated initial distribution amount of $1,250.(ii) Organization 2, an eligible local charitable organization, has a designated initial distribution amount of $3,000 and an undesignated initial distribution amount of $750.(iii) Organization 3, an eligible local charitable organization, has a designated initial distribution amount of $2,000 and an undesignated initial distribution amount of $500.(iv) Organization 4, a statewide federation or fund, has an undesignated initial distribution amount of $1,250.(v) Organization 5, a statewide federation or fund, has an undesignated initial distribution amount of $1,250.(vi) The total amount of deductions authorized to the local campaign manager is $15,000.(vii) The local campaign manager has actually received $10,000 in deducted amounts.(B) The first step is to calculate the contribution percentage for each organization according to paragraph (2)(B) - (C) of this subsection. The contribution percentage for each organization is as follows:(i) Organization 1--41.67%;(ii) Organization 2--25%;(iii) Organization 3--16.67%;(iv) Organization 4--8.33%;(v) Organization 5--8.33%.(C) The second and final step is to calculate the amount that the local campaign manager distributes to each organization according to paragraph (2)(E) of this subsection. The amount for each organization is as follows:(i) Organization 1--$4,167;(ii) Organization 2--$2,500;(iii) Organization 3--$1,667;(iv) Organization 4--$833;(v) Organization 5--$833.(4) Prohibition of distributions until payment reports reconciled. A local campaign manager may not make a distribution before the manager reconciles the payment reports received from the comptroller or an institution of higher education with the payments received by electronic funds transfer or by warrant or check.(5) Frequency of distributions. A local campaign manager shall make distributions quarterly or more frequently than quarterly.(k) Distributions of deductions by statewide federations or funds.(1) Requirement to use the percentage method. A statewide federation or fund shall use the percentage method to distribute deducted amounts to eligible charitable organizations.(2) Description of the percentage method.(A) Immediately after the end of a state employee charitable campaign, a statewide federation or fund shall calculate the contribution percentage for each eligible charitable organization that is an affiliate of the federation or fund.(B) The contribution percentage for an eligible charitable organization is the ratio of:(i) the sum of:(I) the organization's designated initial distribution amount with respect to all state employees who have authorized deductions to the statewide federation or fund as determined under subsection (c)(2)(C) - (D) of this section; and(II) the organization's undesignated initial distribution amount with respect to all state employees who have authorized deductions to the statewide federation or fund as determined under subsection (c)(2)(E) of this section; to(ii) the total amount of deductions authorized to the statewide federation or fund on authorization forms and electronic deduction authorizations completed during the campaign.(C) The contribution percentage for an eligible charitable organization may not be recalculated before the conclusion of the next state employee charitable campaign.(D) The amount of deductions that a statewide federation or fund distributes to an eligible charitable organization is equal to the product of:(i) the contribution percentage of the organization; and(ii) the total amount of deductions the federation or fund is distributing.(3) Example of the percentage method. This paragraph illustrates the percentage method described in paragraph (2) of this subsection.(A) The following assumptions apply in this example.(i) Eligible charitable organization 1 has a designated initial distribution amount of $5,000 and an undesignated initial distribution amount of $1,250.(ii) Eligible charitable organization 2 has a designated initial distribution amount of $3,000 and an undesignated initial distribution amount of $750.(iii) Eligible charitable organization 3 has a designated initial distribution amount of $2,000 and an undesignated initial distribution amount of $500.(iv) The total amount of deductions authorized to the statewide federation or fund is $12,500.(v) The statewide federation or fund has actually received $10,000 in deducted amounts.(B) The first step is to calculate the contribution percentage for each eligible charitable organization according to paragraph (2)(B) of this subsection. The contribution percentage for each organization is as follows:(i) Organization 1--50%;(ii) Organization 2--30%;(iii) Organization 3--20%.(C) The second and final step is to calculate the amount that the statewide federation or fund distributes to each organization according to paragraph (2)(D) of this subsection. The amount for each organization is as follows:(i) Organization 1--$5,000;(ii) Organization 2--$3,000;(iii) Organization 3--$2,000.(4) Prohibition of distributions until payment reports reconciled. A statewide federation or fund may not make a distribution before the federation or fund reconciles the payment reports received from the comptroller or an institution of higher education with the payments received by electronic funds transfer or by warrant or check.(5) Frequency of distributions. A statewide federation or fund shall make distributions quarterly or more frequently than quarterly.(l) Charging administrative fees to cover costs incurred to make deductions. The comptroller has determined that the costs which would be covered by the charging of an administrative fee to charitable organizations would be insignificant. Therefore, the comptroller has decided not to charge the fee.(m) Refunding excessive payments of deductions.(1) Authorization of refunds. If the amount of deductions paid to a local campaign manager or a statewide federation or fund exceeds the amount that should have been paid, then the excess may be refunded to the state agency on whose behalf the payment was made.(2) Methods for accomplishing refunds. If a refund is authorized by paragraph (1) of this subsection, then the refund shall be accomplished by:(A) the state agency on whose behalf the payment was made subtracting the amount of the refund from a subsequent payment of deductions to the local campaign manager or statewide federation or fund; or(B) the local campaign manager or the statewide federation or fund issuing a check in the amount of the refund to the state agency on whose behalf the payment was made, if authorized by paragraph (3) of this subsection.(3) Paying refunds by check. A local campaign manager or a statewide federation or fund may issue a refund check only if the payee of the check first submits a written request for the refund to be made by check.(4) Deadline for paying refunds by check. This paragraph applies only if a local campaign manager or a statewide federation or fund is authorized by paragraph (3) of this subsection to make a refund by check. The local campaign manager or the statewide federation or fund shall ensure that the refund check is received by the payee not later than the 30th day after the date on which the written request for the refund to be made by check is received.(n) Responsibilities of the state policy committee.(1) Statutory responsibilities. The state policy committee shall fulfill its statutory responsibilities as set forth in Government Code, Chapter 659, Subchapter I.(2) Additional responsibilities. In addition to its statutory responsibilities, the state policy committee:(A) shall establish an annual application, eligibility determination, and appeals period for statewide or local participation in the state employee charitable campaign;(B) shall determine the eligibility of a federation or fund and its affiliated agencies for statewide participation in the state employee charitable campaign;(C) shall review and resolve the appeals of entities not accepted for statewide or local participation in the state employee charitable campaign under procedures that comply with paragraph (3) of this subsection;(D) shall disqualify a federation or fund from statewide participation in the state employee charitable campaign if the committee determines that the federation or fund intentionally filed an application that contains false or misleading information;(E) shall establish penalties for non-compliance with this section by a statewide federation or fund, an eligible local charitable organization, the state campaign manager, or any local campaign managers appointed by the state policy committee;(F) shall establish procedures for the selection and oversight of the state campaign manager and any local campaign managers appointed by the state policy committee;(G) shall select to act as the state campaign manager:(i) a federated community campaign organization in accordance with the criteria listed in paragraph (4) of this subsection, if any federated community campaign organization has applied to be the manager; or(ii) a charitable organization in accordance with the criteria listed in paragraph (4) of this subsection, if no federated community campaign organization has applied to be the manager;(H) may establish policies and procedures for the operation and administration of the state employee charitable campaign, including policies and procedures about the hearing of any grievance concerning the operation and administration of the campaign;(I) shall consult with the state campaign manager and the state advisory committee before approving the campaign plan, budget, and materials;(J) may not approve campaign materials if:(i) they do not state that statewide federations or funds may or may not provide services in all local campaign areas;(ii) they list a charitable organization as both a statewide federation or fund and an eligible local charitable organization; (iii) they list a charitable organization as an affiliate of two or more statewide federations or funds unless the organization serves separate and distinct populations as part of each statewide federation or fund;(iv) they list similarly named eligible local charitable organizations in the same local campaign area unless the applicable local employee committee, if one has been appointed by the state policy committee, has determined that each organization delivers services in different geographical areas within the local campaign area;(v) they list a charitable organization as an affiliate of more than one federation or fund certified as an eligible local charitable organization unless the applicable local employee committee, if one has been appointed by the state policy committee, has determined that the charitable organization delivers services to separate and distinct populations in the local campaign area as part of its membership in the federations or funds;(vi) they do not state that a local campaign manager or a statewide federation or fund may distribute quarterly a state employee's deductions;(vii) they do not state that a local campaign manager or a statewide federation or fund is required to distribute a state employee's deductions based on the percentage method instead of matching deducted amounts received by the local campaign manager or statewide federation or fund to the employee's designations; or(viii) they do not accurately describe the percentage method;(K) shall review and approve or disapprove the generic campaign materials used by the state campaign manager and any local campaign managers appointed by the state policy committee;(L) shall ensure that local campaign areas do not overlap; (M) shall ensure that only one local campaign manager, if one has been appointed by the state policy committee, is responsible for solicitation of all state employees in the local campaign area for which the manager has responsibility;(N) shall submit to the comptroller the name and boundaries of each local campaign area not later than the 30th day after the end of the annual application period;(O) shall compile and submit to the comptroller not later than the 30th day after the end of the annual application period a list of any local campaign managers appointed by the state policy committee and the name, address, and telephone number of each manager's primary contact;(P) shall notify the comptroller immediately after a change occurs to the name or mailing address of a statewide federation or fund or local campaign manager;(Q) shall notify the comptroller immediately after a change occurs to the name, title, telephone number, or mailing address of the primary contact of a local campaign manager or a statewide federation or fund; and(R) shall represent all statewide federations or funds and local campaign managers for the purposes of:(i) communicating with the comptroller, including receiving and responding to correspondence from the comptroller; and(ii) disseminating information, including information about the requirements of this section, to representatives of federations or funds, any local employee committees appointed by the state policy committee, and any local campaign managers appointed by the state policy committee.(3) Appeals procedures. The procedures that the state policy committee adopts to review and resolve the appeal of an entity that was not accepted for statewide or local participation in the state employee charitable campaign must:(A) prohibit the consideration of information that the committee has considered previously;(B) provide sufficient time for a federation or fund to reapply for participation in that campaign; and(C) permit a federation or fund that was not accepted for statewide participation to apply for participation in a local campaign area during the campaign.(4) Criteria for selection of a state campaign manager. The state policy committee shall consider the following criteria when evaluating the application of a federated community campaign organization or a charitable organization to act as the state campaign manager:(A) the number and diversity of voluntary health and human services agencies or affiliates that rely on the organization for financial support;(B) the capability of the organization to conduct employee campaigns, as demonstrated by records of the amount of funds raised during the organization's last completed annual public solicitation of funds;(C) the percent of solicited funds received by the organization during its last completed annual public solicitation of funds that were distributed to voluntary health and human services agencies;(D) the geographic area serviced by the organization; and(E) the organization's capability and expertise to provide effective campaign counsel and management as demonstrated by staff and equipment resources and examples of past campaign management. (5) Comptroller's reliance on decisions made by the state policy committee. The comptroller is entitled to rely on the state policy committee's:(A) determination about the eligibility of a federation or fund and its affiliated agencies for statewide participation in the state employee charitable campaign;(B) disqualification of a federation or fund from statewide participation in the state employee charitable campaign; and(C) other decision unless the committee has no legal authority over the subject covered by the decision.(o) Responsibilities of the state advisory committee. The state advisory committee shall fulfill its statutory responsibilities as set forth in Government Code, Chapter 659, Subchapter I.(p) Responsibilities of any local employee committees appointed by the state policy committee.(1) Statutory responsibilities. A local employee committee shall fulfill its statutory responsibilities as set forth in Government Code, Chapter 659, Subchapter I, along with any duties prescribed by the state policy committee under Government Code, §659.140.(2) Additional responsibilities. In addition to its statutory responsibilities and any duties prescribed by the state policy committee under Government Code, §659.140, any local employee committee appointed by the state policy committee:(A) shall determine the eligibility of a local charitable organization for local participation in the state employee charitable campaign;(B) may call upon and use outside expertise and resources available to the committee to assess the eligibility of a local charitable organization;(C) shall disqualify a local charitable organization from local participation in the state employee charitable campaign if the committee determines that the organization intentionally filed an application that contains false or misleading information;(D) shall, contingent upon the appointment of a local campaign manager by the state policy committee, select to act as the local campaign manager:(i) a federated community campaign organization in accordance with the criteria listed in paragraph (3) of this subsection, if any federated community campaign organization has applied to be the manager; or(ii) a charitable organization in accordance with the criteria listed in paragraph (3) of this subsection, if no federated community campaign organization has applied to be the manager;(E) shall, contingent upon the appointment of a local campaign manager by the state policy committee, contract with the organization selected as the local campaign manager;(F) shall, contingent upon the appointment of a local campaign manager by the state policy committee, consult with the local campaign manager before approving the local campaign plan, budget, and materials; and(G) shall, contingent upon the appointment of a local campaign manager by the state policy committee, submit to the state policy committee upon contracting with the organization selected as the local campaign manager:(i) the name of the local campaign area;(ii) the name of the organization with which the local employee committee has contracted; and(iii) the name, address, and telephone number of the primary contact of the local campaign manager.(3) Criteria for selection of a local campaign manager. A local employee committee shall, contingent upon the appointment of a local campaign manager by the state policy committee, consider the following criteria when evaluating the application of a federated community campaign organization or a charitable organization to act as the local campaign manager:(A) the number and diversity of voluntary health and human services agencies or affiliates that rely on the organization for financial support;(B) the capability of the organization to conduct employee campaigns, as demonstrated by records of the amount of funds raised during the organization's last completed annual public solicitation of funds;(C) the percent of solicited funds received by the organization during its last completed annual public solicitation of funds that were distributed to voluntary health and human services agencies;(D) the geographic area serviced by the organization; and(E) the organization's capability and expertise to provide effective campaign counsel and management as demonstrated by staff and equipment resources and examples of past campaign management. (4) Comptroller's reliance on decisions made by a local employee committee. The comptroller is entitled to rely on a local employee committee's:(A) determination about the eligibility of a local charitable organization for local participation in the state employee charitable campaign;(B) disqualification of a local charitable organization from local participation in the state employee charitable campaign; and(C) other decision unless the committee has no legal authority over the subject covered by the decision.(q) Responsibilities of the state campaign manager.(1) Statutory responsibilities. The state campaign manager shall fulfill the manager's statutory responsibilities as set forth in Government Code, Chapter 659, Subchapter I.(2) Additional responsibilities. In addition to the state campaign manager's statutory responsibilities, the manager shall:(A) develop the state employee charitable campaign plan in consultation with the state advisory committee;(B) serve as liaison to the state policy committee, the state advisory committee, any local campaign managers appointed by the state policy committee, and any local employee committees appointed by the state policy committee on behalf of statewide federations or funds and eligible local charitable organizations;(C) structure the state employee charitable campaign fairly and equitably according to the policies and procedures established by the state policy committee;(D) provide for involvement of all statewide federations or funds, including the use of their resources, at all levels of the state employee charitable campaign;(E) conduct the manager's responsibilities on behalf of the state employee participants in the state employee charitable campaign separately from the manager's internal operations;(F) prepare and submit for review by the state advisory committee a single statewide campaign budget that has been prepared in cooperation with any local campaign managers appointed by the state policy committee and that includes campaign materials, staff time, and other expenses incurred for the state employee charitable campaign;(G) establish, after consulting with the state advisory committee, the state policy committee, and any local campaign managers appointed by the state policy committee, a uniform campaign reporting form to allow reporting of designated deductions, undesignated deductions, campaign expenses, and other information deemed necessary by the state campaign manager; and(H) submit a statewide campaign report that complies with paragraph (3) of this subsection.(3) Statewide campaign reports. A statewide campaign report shall represent a compilation of the local campaign managers' campaign reports, if any local campaign managers have been appointed by the state policy committee. The state campaign manager shall ensure that the state policy committee, the state advisory committee, and the comptroller receive the statewide campaign report not later than February 5th of the calendar year following the calendar year in which the campaign covered by the report ended. If February 5th is not a workday, then the first workday after February 5th is the deadline.(r) Responsibilities of any local campaign managers appointed by the state policy committee.(1) Statutory responsibilities. A local campaign manager shall fulfill the manager's statutory responsibilities as set forth in Government Code, Chapter 659, Subchapter I, along with any duties prescribed by the state policy committee under Government Code, §659.140. (2) Additional responsibilities. In addition to a local campaign manager's statutory responsibilities and any duties prescribed by the state policy committee under Government Code, §659.140, any appointed manager shall:(A) recruit, train, and supervise state employee volunteers; (B) involve participating eligible local charitable organizations and statewide federations or funds in the training of state employee volunteers;(C) consult with eligible local charitable organizations and statewide federations or funds about the operation of the state employee charitable campaign and the preparation of local campaign materials;(D) provide eligible local charitable organizations and statewide federations or funds with the opportunity to participate in local state employee charitable campaign events and access to all records for the local campaign area;(E) maintain campaign records for the local campaign area, including total pledges, total pledges by eligible local charitable organization and statewide federation or fund, state agencies contacted, and other records deemed necessary by the state policy committee for organization, control, and progress reporting;(F) submit to the state campaign manager a final campaign report of designated deductions, undesignated deductions, campaign expenses, and other information deemed necessary by the state campaign manager;(G) ensure that the state campaign manager receives the local campaign manager's final campaign report not later than January 15th of the calendar year following the calendar year in which the campaign covered by the report ended or, if January 15th is not a workday, not later than the first workday after January 15th;(H) establish an account at a financial institution for the purpose of receiving payments from the comptroller and institutions of higher education by electronic funds transfer, warrant, or check;(I) distribute interest accrued during a campaign year as soon as possible after December 31st to each eligible local charitable organization and statewide federation or fund in the same manner that undesignated deductions are distributed, subject to the limitation in paragraph (3) of this subsection;(J) submit a request to the comptroller to be paid by the comptroller through electronic funds transfers under rules adopted by the comptroller, but only to the extent those transfers are initiated by the comptroller on behalf of the comptroller or other state agencies;(K) submit a request to an institution of higher education to be paid by the institution through electronic funds transfers under rules or procedures adopted by the institution, but only to the extent those transfers are not initiated by the comptroller on behalf of the institution;(L) reconcile the payment report provided by the comptroller or an institution of higher education with the amount of deductions paid to the manager;(M) report to the comptroller or an institution of higher education, as appropriate, each discrepancy between a payment report provided by the comptroller or an institution and the actual amount of deductions received not later than the 30th day after the day on which the comptroller or the institution mailed or delivered the report;(N) report to each eligible local charitable organization and statewide federation or fund the amount of its undesignated and designated initial distribution amounts as determined under subsection (c)(1) of this section; and(O) report to each eligible local charitable organization and statewide federation or fund its contribution percentage as determined under subsection (j)(2) of this section.(3) Limitation on distributions of accrued interest. A local campaign manager may not distribute accrued interest to:(A) an eligible local charitable organization that did not receive deducted amounts through the manager during the campaign year; or(B) a statewide federation or fund that did not receive deducted amounts through the manager during the campaign year, unless the only reason for not receiving the deducted amounts through the manager is the direct payment requirement of the second sentence of subsection (i)(1)(B) of this section.(4) Prohibition against solicitation. A local campaign manager may not solicit a deduction from a state employee at the employee's worksite unless the solicitation is pursuant to the state employee charitable campaign.(s) Responsibilities of statewide federations or funds.(1) Reconciliation of payment reports. A statewide federation or fund shall reconcile the payment report provided by the comptroller or an institution of higher education with the amount of deductions paid to the federation or fund.(2) Reports of discrepancies.(A) A statewide federation or fund shall report to the comptroller or an institution of higher education, as appropriate, each discrepancy between a payment report provided by the comptroller or an institution and the actual amount of deductions received.(B) A report of discrepancies is due not later than the 30th day after the day on which the comptroller or the institution of higher education mailed or delivered the report.(3) Prohibition against solicitation. A statewide federation or fund may not solicit a deduction from a state employee at the employee's worksite unless the solicitation is pursuant to the state employee charitable campaign.(t) Prohibition against certain solicitation by eligible local charitable organizations. An eligible local charitable organization may not solicit a deduction from a state employee at the employee's worksite unless the solicitation is pursuant to the state employee charitable campaign.(u) Acceptance of authorization forms and electronic deduction authorizations by state agencies.(1) Prohibition against accepting certain authorization forms and electronic deduction authorizations. A state agency may accept an authorization form or electronic deduction authorization only if it complies with the comptroller's requirements.(2) Reviewing authorization forms and electronic deduction authorizations. An authorization form or electronic deduction authorization submitted by a state employee to a state agency must be reviewed by the agency's campaign coordinator to ensure that the form or electronic deduction authorization has been completed properly.(3) Acceptance of altered authorization forms and electronic deduction authorizations. A state agency is not required to accept an authorization form or electronic deduction authorization that contains an obvious alteration without the appropriate state employee's written consent to the alteration.(4) Review of online giving tool website and application data by agency campaign coordinator. A state agency's campaign coordinator may view the data from the online giving tool website and application to ensure that the information has been completed properly and to validate the accuracy of the information.(v) Payment reports.(1) Monthly submission of payment reports.(A) An institution of higher education shall submit a payment report each month to each local campaign manager or statewide federation or fund that has received during the month deducted amounts from the institution's state employees.(B) The comptroller shall submit a payment report each month to each local campaign manager or statewide federation or fund that has received during the month deducted amounts through the comptroller's electronic funds transfer system.(2) Information included in payment reports.(A) An institution of higher education's payment report must include the amount and date of each check written to or electronic funds transfer made to a local campaign manager or a statewide federation or fund by the institution.(B) The comptroller's payment report must include the amount and date of each electronic funds transfer made to a local campaign manager or statewide federation or fund by the comptroller.(3) Format of payment reports. An institution of higher education's payment report must be in the format prescribed by the comptroller.(4) Deadline for submission of payment reports.(A) Except as otherwise provided in this subparagraph, an institution of higher education shall mail or deliver a payment report not later than the tenth workday of the month in which the institution paid the deducted amounts covered by the report. For deductions from salary or wages paid by an institution of higher education after the tenth workday of a month, the institution may include the deductions in the institution's payment report for the following month.(B) Except as otherwise provided in this subparagraph, the comptroller shall mail or deliver a payment report not later than the fifth workday of the month in which the comptroller paid the deducted amounts covered by the report. For deductions from salary or wages paid by the comptroller after the first workday of a month, the comptroller may include the deductions in the comptroller's payment report for the following month.(w) Complaints by state employees about coercive activity. (1) Definition.(A) In this section, \"coercive activity\" includes:(i) a state agency or its representative pressuring a state employee to participate in a state employee charitable campaign;(ii) a state agency or its representative inquiring about:(I) whether a state employee has chosen to participate in a state employee charitable campaign; or(II) the amount of a state employee's deduction except as necessary to administer the deduction;(iii) a state agency or its representative establishing a goal for 100% of the agency's state employees to authorize a deduction;(iv) a state agency or its representative establishing a dollar contribution goal or quota for a state employee;(v) a state agency, a statewide federation or fund, a local campaign manager, or a representative of the preceding developing or using a list of state employees who did not complete an authorization form or electronic deduction authorization during a state employee charitable campaign;(vi) a state agency, a statewide federation or fund, a local campaign manager, or a representative of the preceding using or providing to others a list of state employees who completed an authorization form or electronic deduction authorization during a state employee charitable campaign, unless the purpose of the list is to make a deduction or transmit deducted amounts to a local campaign manager or a statewide federation or fund; and(vii) a state agency or its representative using as a factor in a performance appraisal the results of a state employee charitable campaign in a particular section, division, or other level of the agency.(B) Notwithstanding subparagraph (A) of this paragraph, \"coercive activity\" does not include:(i) the head of a state agency's participation in the customary activities associated with a state employee charitable campaign; or(ii) the head of a state agency's demonstration of support for the campaign in newsletters or other routine communications with state employees.(2) Submission of complaints to the comptroller. A state employee may submit a written complaint to the comptroller when the employee believes that coercive activity has occurred in a state employee charitable campaign.(3) Investigation by the comptroller of complaints.(A) The comptroller shall investigate a state employee's written complaint about coercive activity. The comptroller shall mail or deliver a description of the comptroller's findings about the complaint to the employee not later than the 30th day after the comptroller receives the complaint.(B) If the comptroller finds that coercive activity has occurred, then the comptroller shall mail or deliver notice of the finding to the state policy committee not later than the 30th day after the comptroller makes the finding.(4) Action by the state policy committee.(A) If the state policy committee receives written notification that the comptroller has found that coercive activity has occurred, then the committee shall take appropriate action. Actions that the state policy committee may take include suspension of the person or entity that engaged in the coercive activity from participation in the state employee charitable campaign for one campaign year.(B) A person or entity that has been suspended from the state employee charitable campaign for a campaign year may apply to the state policy committee for participation in the campaign for the next campaign year.(x) Public junior colleges and their employees.(1) Classification as institutions of higher education and state employees. For the purposes of this section, a public junior college is considered to be an institution of higher education and the college's employees are considered to be state employees unless the college's governing board affirmatively decides for the college not to participate in the state employee charitable contribution program.(2) Decisions not to participate in the state employee charitable contribution program.(A) The decision of a public junior college's governing board for the college not to participate in the state employee charitable contribution program is effective for only one fiscal year.(B) To be valid, the decision of a public junior college's governing board for the college not to participate in the state employee charitable contribution program for a fiscal year must be made not earlier than September 1 and not later than April 1 of the preceding fiscal year.(C) A public junior college's governing board shall ensure that the state campaign manager receives written notice of the board's decision for the college not to participate in the state employee charitable contribution program. The board's failure to comply with this requirement does not, however, invalidate that decision.(3) Charitable deductions outside the state employee charitable contribution program.(A) This paragraph applies to a public junior college only if the college's governing board has decided for the college not to participate in the state employee charitable contribution program. (B) The governing board of a public junior college may allow the college's employees to authorize deductions from their salaries or wages for charitable contributions. The deductions must be voluntary.(C) The deductions must be made in accordance with any policies adopted by the board. Except for this paragraph, this section does not apply to those deductions.(y) Requirements for online giving tool website and application.(1) An online giving tool website and/or application may be used by a state employee to submit an electronic deduction authorization only if both the comptroller and the state policy committee have approved the online giving tool website and/or application.(2) Restrictions on approval of online giving tool website and/or application. Neither the comptroller nor the state policy committee may approve an online giving tool website and/or application unless the electronic deduction authorization produced through the electronic online giving tool:(A) states that statewide federations or funds and local campaign managers are required to use the percentage method to distribute a state employee's deducted amounts to eligible charitable organizations designated by the employee instead of matching deducted amounts received to actual designations;(B) accurately describes the percentage method; and(C) complies with the comptroller's requirements for format and substance.",
            "sourceNote": "Source Note: The provisions of this §5.48 adopted\r\nto be effective June 15, 1994, 19 TexReg 4253; amended to be effective\r\nFebruary 15, 1999, 24 TexReg 978; amended to be effective February\r\n15, 2010, 35 TexReg 1286; amended to be effective June 15, 2016, 41\r\nTexReg 4289; amended to be effective February 17, 2026, 51 TexReg\r\n958."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205190&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "205190",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "D",
                "label": "CLAIMS PROCESSING--PAYROLL"
            },
            "rule": {
                "number": "§5.49",
                "label": "Longevity Pay"
            },
            "nextRule": {
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                "recordId": "161094",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Calendar month--The period from the first day through the last day of January, February, March, April, May, June, July, August, September, October, November, or December.(2) Day--The 24 consecutive hour period beginning at 12:00 midnight and ending at 11:59 p.m.(3) Full-time state employee--Has the meaning assigned by Government Code, §659.041(2).(4) Hazardous duty position--Has the meaning assigned by §5.39(a)(6) of this title (relating to Hazardous Duty Pay).(5) Institution of higher education--Has the meaning assigned by Education Code, §61.003(8), but does not include a public junior or community college.(6) Lifetime service credit--The number of months that an individual has served in a position listed in Government Code, §659.046, during the individual's lifetime.(7) Military--The Armed Forces of the United States, the Texas National Guard, the Texas State Guard, or a reserve component of the Armed Forces of the United States.(8) Retiree--A state employee who retires from state employment and who receives an annuity based wholly or partly on service as a state officer or state employee in a public retirement system, as defined by Government Code, §802.001(3), that was credited to the state employee.(9) State agency--(A) a board, commission, department, office, or other entity that is in the executive branch of state government, including an institution of higher education;(B) the legislature or a legislative agency; or(C) the supreme court, the court of criminal appeals, a court of appeals, the state bar, or another state judicial agency.(10) State employee--Has the meaning assigned by Government Code, §659.041(4).(11) Workday--Any day that is not Saturday, Sunday, or a state or national holiday under Government Code, §662.003. The term includes a state or national holiday on which a state employee is not entitled to a paid day off from work under Government Code, §662.005.(b) Authority. Longevity pay is governed by Government Code, Chapter 659, Subchapter D; the General Appropriations Act; and the rules adopted by the comptroller under Government Code, Chapter 659, Subchapter D.(c) Verification of prior state employment periods. A state agency that currently employs a state employee who accrued lifetime service credit during one or more previous employments shall verify the amount of that credit.(d) Effective service date.(1) A state employee's \"effective service date\" is used to determine the amount of the employee's lifetime service credit.(2) \"Effective service date\" is determined by completing the following steps:(A) adding together all days the employee served in all previous periods of employment with the state;(B) counting backward from the first day of the employee's current continuous employment with the state using the total number of days calculated in subparagraph (A) of this paragraph; and(C) except as provided in subsection (l) of this section, counting forward the number of months in which the employee was on leave without pay for any full calendar month during all periods of employment using the date calculated in subparagraph (B) of this paragraph.(3) An example of determining a state employee's effective service date is as follows: The employee's first day of employment at your agency is February 10, 2021. The employee had two previous periods of state employment. The first previous period of employment was from January 6, 2017 to May 25, 2017, or 140 days. The second previous period of employment was from October 1, 2018 to December 31, 2020, or 823 days. During the employee's second previous period of employment, the employee had one period of leave without pay from March 25, 2019 to April 30, 2019, for a total of one full calendar month of leave without pay. To determine the employee's effective service date, first add together the total number of days in the employee's two previous periods of state employment to arrive at 933 days. Next, count backward 933 days from February 10, 2021 to arrive at June 24, 2018. Finally, count forward one month (the number of months in which the employee was on leave without pay for any full calendar month during all periods of employment) from June 24, 2018 to arrive at July 24, 2018, which is the employee's effective service date.(4) An individual's transfer from one state agency to another shall not interrupt continuity of employment if no workdays occur between the two employments.(e) Workday. If an individual is a state employee for any part of a workday, the individual is considered to be a state employee for the entire workday for the purpose of longevity pay.(f) Change in status. A full-time state employee in paid status on the first workday of the calendar month is entitled to the full amount of longevity pay for that calendar month even if the employee terminates state employment after the first workday of that calendar month.(g) Employees of Institutions of Higher Education.(1) The determinations required by Government Code, §659.0411(a) and (b) must be made publicly available to all employees under the institution's or board of regent's jurisdiction and must be made available to the comptroller, upon request by the comptroller.(2) The determinations required by Government Code, §659.0411(a) and (b) shall not take effect until they have been made publicly available to all employees under the institution's or board of regent's jurisdiction.(3) The determinations required by Government Code, §659.0411(b) must apply to every institution under the board of regent's jurisdiction.(h) Return to work retirees who leave state employment.(1) A retiree who retired from state employment on or after June 1, 2005, is not entitled to longevity pay upon returning to state employment.(2) A retiree who retired from state employment prior to June 1, 2005, and did not return to state employment prior to September 1, 2005, is not entitled to longevity pay upon returning to state employment.(3) A retiree who retired from state employment prior to June 1, 2005, returned to state employment prior to September 1, 2005, and subsequently leaves state employment, is not entitled to longevity pay upon returning to state employment.(i) Public retirement system. \"Public retirement system,\" as the term is used in Government Code, §659.042(7) and subsection (a)(8) of this section, includes the Employees Retirement System of Texas; Teacher Retirement System; and Optional Retirement Program as described in Government Code, Chapter 830.(j) Hazardous duty pay.(1) A state employee's lifetime service credit for the purpose of longevity pay shall include any period served in a hazardous duty position, except as provided in Government Code, §659.046(f)(2) or paragraph (2) of this subsection.(2) A state employee is not entitled to accrue lifetime service credit for the purpose of longevity pay during the period the employee serves in a hazardous duty position that entitles the employee to receive hazardous duty pay. When the employee is no longer serving in the hazardous duty position, the employee is entitled to accrue the lifetime service credit for the purpose of longevity pay for the period the employee previously served in the hazardous duty position.(3) For the purpose of longevity pay, lifetime service credit is accrued during the one year that a state employee serves in a hazardous duty position before becoming eligible or entitled to receive hazardous duty pay. The amount of longevity pay the employee receives during that year is based on the credit accrued during that year. But, the lifetime service credit used to calculate the amount of longevity pay received by the employee while receiving hazardous duty pay shall not include the one year waiting period.(4) If a state employee received hazardous duty pay based on total state service performed before May 29, 1987, and held a position that required the performance of hazardous duty on May 29, 1987, the employee's lifetime service credit for the purpose of longevity pay shall not include any state service credit the employee accrued for the purpose of hazardous duty pay before May 29, 1987.(k) Contract for less than 12 calendar months. An individual eligible to accrue lifetime service credit who works for a state agency under a formal written contract for less than 12 calendar months each year accrues 12 calendar months of credit each year if the individual is constantly under contract during the calendar months the individual does not work. The individual is constantly under contract if the individual's contract for the next work period is entered into before the end of the existing work period, even though the individual will not work during the interim period.(l) Military service. If an individual leaves a position that accrues lifetime service credit (or that would have accrued lifetime service credit had the longevity pay law been in effect when the individual left the position) to serve in the military and the individual is reemployed with the state after completing that service in accordance with any applicable federal or state veterans' reemployment law, the individual accrued lifetime service credit during that service, even if the individual is on leave without pay during the individual's period of military service.",
            "sourceNote": "Source Note: The provisions of this §5.49 adopted to be effective May 25, 2016, 41 TexReg 3744; amended to be effective June 2, 2021, 46 TexReg 3417."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161094&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "161094",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "E",
                "label": "CLAIMS PROCESSING--PURCHASE VOUCHERS"
            },
            "rule": {
                "number": "§5.51",
                "label": "Requirements for Purchase Documents"
            },
            "nextRule": {
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Appropriation year--The year that the legal authorization for the charge was granted by the legislature. Multiple appropriation year activity may occur within a single fiscal year.(2) Chief administrative officer--The appointed or elected individual who is authorized by law to administer a state agency that is not headed by a governing body or the executive director or other individual with an equivalent title who administers a state agency headed by a governing body.(3) Comptroller--The comptroller of public accounts for the State of Texas.(4) Comptroller object code--The four-digit code that indicates in USAS the type of expenditure made.(5) Delivery date--The date goods are delivered to a state agency.(6) Governing body--The board, commission, committee, council, or other group of individuals that is collectively authorized by law to administer a state agency.(7) Include--A term of enlargement and not of limitation or exclusive enumeration. The use of the term does not create a presumption that components not expressed are excluded.(8) Institution of higher education--Has the meaning assigned by Education Code, §61.003.(9) May not--A prohibition. The term does not mean \"might not\" or its equivalents.(10) Non-payment document--The paper or electronic document that a state agency submits to the comptroller for the purpose of requesting the comptroller to post or correct certain accounting information in USAS. The term does not include a payment document.(11) Order date--The date that a state agency enters into a contract for goods or services.(12) Texas identification number--The 11-digit number that the comptroller assigns to each payee of a warrant issued or electronic funds transfer initiated by the comptroller.(13) Mail code--The three digit number associated with a Texas identification number that documents disbursement instructions.(14) Payment document--The paper or electronic document that a state agency submits to the comptroller for the purpose of requesting the comptroller to make one or more payments on the agency's behalf. The term includes a document that uses the appropriated or other funds of a state agency to make a payment to another state agency. The term does not include a non-payment document.(15) Purchase document--The type of payment document that the comptroller requires a state agency to submit when requesting payment of certain claims against the agency.(16) Service date--The date the provision of services to a state agency ends.(17) State agency--A department, board, commission, committee, council, agency, office, or other entity in the executive, legislative, or judicial branch of Texas state government, the jurisdiction of which is not limited to a geographical portion of this state. The term includes an institution of higher education.(18) Payment transaction--A state agency's request to the comptroller for the comptroller to make one payment to one payee on behalf of the agency. A payment document always contains at least one payment transaction or one adjusting entry to a payment transaction.(19) USAS--The uniform statewide accounting system.(20) Fiscal year--The accounting period for the state government which begins on September 1 and ends on August 31.(b) Submission of purchase documents to the comptroller.(1) A state agency may submit a purchase document to the comptroller only by submitting the document to USAS.(2) A state agency must submit a purchase document to USAS electronically unless the comptroller has specifically authorized the agency to submit the document on paper. A state agency may electronically submit a purchase document through on-line, direct entries into USAS or through reporting into USAS by a magnetic media device.(c) General responsibilities of state agencies and their officers and employees.(1) The officers and employees of a state agency are responsible for:(A) being knowledgeable about Texas laws and rules concerning expenditures;(B) ensuring that the agency's expenditures comply with those laws and rules;(C) determining the agency's legal authority for making each payment that would result from a purchase document before the document is submitted to the comptroller;(D) ensuring that for each purchase document, the agency maintains necessary documentation for proving that each payment resulting from the document is legal, proper, and fiscally responsible; and(E) ensuring that each purchase document complies with the processing requirements of USAS.(2) An officer or employee of a state agency may not submit a purchase document to the comptroller if the officer or employee has any doubts about the legality, propriety, or fiscal responsibility of any payment that would result from the document.(3) The chief administrative officer of a state agency is responsible for ensuring that the agency's officers and employees understand and comply with this subsection. However, the chief administrative officer's failure to fulfill this responsibility does not relieve those officers and employees from the obligation to comply.(4) The comptroller's responsibility to audit a state agency's purchase documents does not relieve the agency's officers and employees from the responsibilities listed in paragraphs (1) - (3) of this subsection. Therefore, those officers and employees may not rely on the comptroller's audit to prevent a questionable payment from being made or to discover or reverse an invalid payment after it has occurred.(d) Content of purchase documents and payment transactions. For each payment transaction included in a purchase document, the document must specify or contain:(1) the Texas identification number and mail code of the individual or entity being paid or reimbursed;(2) the amount of the payment or adjusting entry;(3) the proper comptroller object code;(4) the appropriation year to be charged for the payment or adjusting entry;(5) the agency number of the agency whose funds are being used to make the payment or adjusting entry;(6) the proper transaction code for crediting or debiting the appropriate general ledger accounts;(7) the proper program cost account;(8) the number of the fund from which the payment or adjusting entry will be made;(9) the number of the appropriation from which the payment or adjusting entry will be made;(10) the disbursement method for making the payment or adjusting entry;(11) the service or delivery date, which must be entered into the service date field;(12) the order date, which must be entered into the document date field;(13) the approval and certification of the document; and(14) any other information deemed necessary by the comptroller.(e) Supporting documentation for purchase documents.(1) The comptroller may require a state agency to make available to the comptroller documentation to support the legality and fiscal responsibility of each payment that results from a purchase document if the payment is made out of the agency's funds. Supporting documentation must be made available whenever:(A) the comptroller's purchase guide, eXpendit, or a successor publication specifically requires the documentation to be made available; or(B) the comptroller notifies the agency that the documentation must be made available.(2) Supporting documentation must be made available to the comptroller in the manner required by the comptroller. The comptroller may require the documentation to be made available during a post-payment audit, a prepayment audit, or at any other time.(3) The types of supporting documentation that the comptroller may require include purchase orders, requisitions, contracts, invoices, and receipts.(4) A state agency must maintain documentation in its files to support the legality and fiscal responsibility of each payment resulting from a purchase document if the payment is made out of the agency's funds. The documentation must be maintained even if the comptroller does not require the agency to make it available to the comptroller.(5) A state agency's supporting documentation must satisfy all the following requirements.(A) The supporting documentation for a purchase document must be maintained in agency files at least until the end of the second fiscal year after the fiscal year in which the document is processed by USAS.(B) This subparagraph applies to a purchase document only if the document contains only one payment transaction. Supporting documentation must be cross-referenced to the purchase document that the documentation supports. This cross-reference must consist of the document's USAS document key. A purchase document's USAS document key consists of the document agency, the document number, and the fiscal year during which the document was initiated. All supporting documentation for a particular purchase document must be grouped together.(C) This subparagraph applies to a purchase document only if the document contains more than one payment transaction. Supporting documentation must be cross-referenced to the purchase document and payment transaction that the documentation supports. The cross-reference to the purchase document must consist of the document's USAS document key. A purchase document's USAS document key consists of the document agency, the document number, and the fiscal year during which the document was initiated. The cross-reference to the purchase transaction consists of the transaction's suffix number. All supporting documentation for a particular payment transaction must be grouped together.(D) The state agency whose funds are used to make a payment is responsible for maintaining the supporting documentation for the payment.(6) When the comptroller requires a state agency to make supporting documentation available to the comptroller, the agency is solely responsible for complying with this requirement. The comptroller is not required to search the agency's files for the documentation, determine which documentation corresponds with which purchase documents or payment transactions, or otherwise organize or sort the documentation. If the agency does not make supporting documentation for a particular purchase document or payment transaction available to the comptroller according to the comptroller's requirements, then the comptroller may reject the document or transaction or deem the payment resulting from the document or transaction to be unsubstantiated or erroneous.(7) This subsection also applies to any supporting documentation that a state agency maintains electronically.",
            "sourceNote": "Source Note: The provisions of this §5.51 adopted to be effective November 19, 1996, 21 TexReg 10989; amended to be effective November 9, 2008, 33 TexReg 8944; amended to be effective March 11, 2013, 38 TexReg 1695."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=225047&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "225047",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": ""
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": ""
            },
            "subchapter": {
                "number": "E",
                "label": "CLAIMS PROCESSING--PURCHASE VOUCHERS"
            },
            "rule": {
                "number": "§5.54",
                "label": "Consulting Services Contracts"
            },
            "nextRule": {
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise. (1) Consulting service--A study conducted for a state agency or advice provided to a state agency under a contract that does not involve the traditional relationship of employer and employee. The term does not include a routine service that is necessary to the functioning of a state agency's programs. (2) Institution of higher education--Has the meaning assigned by Education Code, §61.003 except the term does not include a public junior college or a community college. (3) Major consulting services contract--Has the meaning assigned by Government Code, §2254.021(2). (4) State agency--Has the meaning assigned by Government Code, §2151.002. (5) University system--Has the meaning assigned by Education Code, §61.003.(b) Applicability of this section. This section applies to a consulting service only to the extent Government Code, Chapter 2254, Subchapter B, applies to that service. (c) Effect of noncompliance with this section or applicable statutes. (1) If a state agency contracts for a consulting service or renews, amends, or extends a consulting services contract without complying with the requirements of Government Code, §§2254.028(a)(3), 2254.029, 2254.030, 2254.0301, and 2254.033, if applicable, the contract, renewal, amendment, or extension is void. (2) If a contract, renewal, amendment, or extension is void under paragraph (1) of this subsection, the comptroller may not: (A) draw a warrant or transmit funds to satisfy an obligation under the contract, renewal, amendment, or extension; or (B) reimburse a state agency for a payment made under the contract, renewal, amendment, or extension. (3) If a contract, renewal, amendment, or extension is void under paragraph (1) of this subsection, a state agency may not make any payments under the contract, renewal, amendment, or extension from any state or federal funds held in or outside the state treasury. (d) Procurement of consulting services by the comptroller. If the comptroller procures a consulting service for a state agency under Government Code, §2254.040, the comptroller must comply with any requirements of this section and Government Code, Chapter 2254, Subchapter B that would apply if the agency were procuring the consulting service directly. (e) Purchase document requirements. (1) In addition to the requirements of paragraph (2) of this subsection, the purchase document submitted to the comptroller that requests payment under a contract subject to that paragraph must be supported by the following documentation: (A) a copy of the original contract and, if the contract has been renewed, amended, or extended, a copy of the renewal, amendment, or extension; (B) a copy of any written notice provided to the Legislative Budget Board under Government Code, §2254.0301 if the amount of the contract, including any renewal, amendment, or extension, exceeds $50,000 and the state agency requesting the payment is not a university system or an institution of higher education; and (C) a statement that the payment complies with Government Code, §§2155.004(a) - (b), 2254.026, 2254.027, and 2254.033. (2) This paragraph applies when a purchase document is submitted to the comptroller that requests a payment under either a major consulting services contract (or a renewal, amendment, or extension of a major consulting services contract) or a contract that was not originally a major consulting services contract but whose value after renewal, amendment, or extension totals more than $15,000 if the state agency is not an institution of higher education or $25,000 if the state agency is an institution of higher education. In addition to the requirements of paragraph (1) of this subsection, the document must be supported by the following documentation: (A) a reference to the solicitation ID of the Electronic State Business Daily posting in which the requirements of Government Code, §2254.029 and §2254.030, and, if applicable, Government Code, §2254.028(c) were fulfilled; and (B) a copy of the governor's finding of fact that the consulting services are necessary if the finding is required by Government Code, §2254.028. (3) A state agency that has received the governor's emergency waiver of the requirements of Government Code, Chapter 2254, Subchapter B must include a copy of the waiver in the supporting documentation for the contract for which the waiver was received. (4) A state agency shall retain the supporting documentation required by this subsection and provide that documentation to the comptroller as required by §5.51 of this title (relating to Requirements for Purchase Documents).",
            "sourceNote": "Source Note: The provisions of this §5.54 adopted to\r\nbe effective January 26, 1995, 20 TexReg 227; amended to be effective\r\nJune 6, 2006, 31 TexReg 4657; amended to be effective November 9,\r\n2008, 33 TexReg 8944; amended to be effective January 9, 2019, 44\r\nTexReg 269; amended to be effective May 22, 2025, 50 TexReg 2981."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161095&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "161095",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "E",
                "label": "CLAIMS PROCESSING--PURCHASE VOUCHERS"
            },
            "rule": {
                "number": "§5.56",
                "label": "Appropriation Year Determination"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193946&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Appropriated money--Money that the legislature has appropriated through the General Appropriations Act or other law.(2) Appropriation year--The year that the legal authorization for the charge was granted by the legislature. Multiple appropriation year activity may occur within a single fiscal year.(3) Capital asset--A good other than a consumable that benefits a state agency during more than one appropriation year.(4) Comptroller--The comptroller of public accounts for the State of Texas.(5) Consumable--A good that perishes with use and that, under ordinary circumstances, will be entirely used during one appropriation year.(6) Institution of higher education--Has the meaning assigned by Government Code, §2113.205(e)(1).(7) Internet connection--Access to the Internet under an interagency contract or a contract with a private Internet service provider.(8) State agency--Has the meaning assigned by Government Code, §2113.205(e)(2).(9) Telecommunications service--Includes a corded telephone service, a cellular telephone and/or data service, a pager service, an Internet connection service, a cable television service, and a satellite television service. The term does not include a long distance charge, a prepaid telephone calling card, a cellular telephone roaming charge, and any other charge that is not imposed monthly as a flat rate.(10) Utility service--(A) electricity, water, natural gas, or propane, if furnished by a utility;(B) a telecommunications service; and(C) a wastewater treatment service, a well water service, or a waste disposal service, if provided by a utility.(b) General requirements and exceptions.(1) The comptroller may require a state agency to make available to the comptroller the documentation that supports the agency's classification of a purchase or payment as a consumable, service, capital asset, or grant.(2) This section does not apply to the extent it conflicts with state law, including a valid rider or other provision of the General Appropriations Act.(3) This section does not apply to a purchase that is paid with money that is not appropriated money.(c) Purchases of consumables.(1) Except as provided in paragraph (2) of this subsection, a state agency must charge its purchase of a consumable to the appropriation year in which delivery of the consumable occurs.(2) Except as provided in paragraph (3) of this subsection, a state agency may not charge its purchase of a consumable to a particular appropriation year if the agency could not reasonably have anticipated that the consumable would be consumed entirely during that year.(3) A state agency may charge the appropriation year that immediately precedes the appropriation year in which a consumable is delivered for the purchase of the consumable if:(A) the agency entered into a contract for the consumable during the immediately preceding appropriation year and, at the time of entrance into the contract, the agency reasonably anticipated that the consumable would be delivered during that year;(B) delivery of the consumable was delayed until the next appropriation year for reasons beyond the agency's reasonable control; and(C) the order quantity was no more than reasonably could have been consumed before the end of the immediately preceding appropriation year had delivery occurred as originally anticipated.(d) Purchases of services.(1) A state agency must charge its purchase of a service to the appropriation year in which the service is rendered.(2) A state agency must prorate its payments under a contract that is performed over more than one appropriation year so that each appropriation year is charged only for the services that are rendered during that year.(e) Purchases of capital assets.(1) Except as provided in paragraphs (2) - (3) of this subsection, a state agency must charge its purchase of a capital asset to the appropriation year in which the agency enters into a valid contract for the purchase. The signing date of a validly executed contract is the determining factor, the delivery date of the asset is irrelevant.(2) A state agency may contract during a particular appropriation year for the purchase of a capital asset in reliance on an existing appropriation for a subsequent appropriation year within the following biennium so long as payment for the asset does not occur before the start of the subsequent year.(3) A payment under a lease-purchase agreement must be charged to the appropriation year in which the payment is made.(f) Grant payments.(1) A state agency's payment of a grant to an individual or entity must be charged to the appropriation year in which the agency contracts, awards, or otherwise legally commits to pay the grant if an appropriation for that year and purpose is available. Otherwise, the payment must be charged to the first appropriation year for which an appropriation is available.(2) This subsection applies regardless of how the grantee will use the grant money.(3) This subsection applies even if the payments under a grant contract will be made over more than one appropriation year.(g) Contracts for the purchase of a combination of consumables, services, and capital assets.(1) This subsection applies only to:(A) a contract that involves the purchase of two or more of the following: a consumable, a service, or a capital asset; or(B) two or more closely related contracts that together involve the purchase of two or more of the following: a consumable, a service, or a capital asset.(2) If the dominant purpose of one or more contracts is to purchase a consumable, then subsection (c) of this section governs the determination of the correct appropriation year to charge for the purchases.(3) If the dominant purpose of one or more contracts is to purchase a service, then subsection (d) of this section governs the determination of the correct appropriation year to charge for the purchases.(4) If the dominant purpose of one or more contracts is to purchase a capital asset, then subsection (e) of this section governs the determination of the correct appropriation year to charge for the purchases.(h) Purchase options. The appropriation year in which a state agency exercises a contractual option to purchase a good, a service, or a capital asset must be charged for the cost of exercising that option, subject to this section's requirements for determining the correct appropriation year to charge for the purchase.(i) Periodical subscriptions, maintenance contracts, post office box rentals, insurance, Internet connections, and surety or honesty bonds.(1) A state agency may use money that is appropriated for a particular appropriation year to pay the entire cost or amount of a periodical subscription, a maintenance contract, a post office box rental, insurance, an Internet connection, or a surety or honesty bond, regardless of whether the subscription, contract, rental, insurance, connection, or bond covers more than one appropriation year.(2) This subsection prevails over subsections (c) - (h) of this section to the extent of any conflict.(j) Utility services.(1) A state agency may use money that is appropriated for a particular appropriation year to pay for a utility service that is provided during that appropriation year and September of the next appropriation year.(2) This subsection prevails over subsections (c) - (h) of this section to the extent of any conflict.",
            "sourceNote": "Source Note: The provisions of this §5.56 adopted to be effective October 25, 1996, 21 TexReg 10216; amended to be effective August 11, 2002, 27 TexReg 6860; amended to be effective October 17, 2004, 29 TexReg 9557; amended to be effective March 11, 2013, 38 TexReg 1695."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193946&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "193946",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "E",
                "label": "CLAIMS PROCESSING--PURCHASE VOUCHERS"
            },
            "rule": {
                "number": "§5.57",
                "label": "Use of Payment Cards by State Agencies"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Consulting service--Has the meaning assigned by §5.54 of this title (relating to Consulting Services Contracts).(2) Executive director--The individual who is the chief administrative officer of a state agency. The term excludes a member of a governing body.(3) Executive head--(A) the elected or appointed state official who is authorized by law to administer a state agency that is not headed by a governing body; or(B) the executive director of a state agency that is headed by a governing body.(4) Institution of higher education--Has the meaning assigned by Education Code, §61.003, other than a public junior college.(5) Payment card--A credit or charge card issued to an officer or employee of a state agency for the purpose of allowing the officer or employee to purchase goods or services for the agency.(6) Payment card purchase--The use of a payment card to pay for the purchase of a good or a service.(7) State agency--(A) a board, commission, department, or other agency in the executive branch of state government that is created by the constitution or a statute of this state, including an institution of higher education;(B) the legislature or a legislative agency; or(C) the supreme court, the court of criminal appeals, a court of appeals, or a state judicial agency.(b) Applicability of this section. Except as provided in subsection (c) of this section, this section applies to a state agency's use of a payment card regardless of the type of funds the agency uses to pay the payment card issuer.(c) Exemptions.(1) This section does not apply to a state agency if a law other than Government Code, §403.023, specifically authorizes, requires, prohibits, or otherwise regulates the agency's use of a payment card.(2) This section does not apply to the extent its application would affect a contract in which a state agency is a party. This paragraph applies only if the contract was in effect on September 1, 1993.(3) This section does not apply to the extent its application would violate a constitutional prohibition against a law that impairs a contractual obligation.(4) This section does not apply to the extent necessary to avoid an irreconcilable conflict with a federal law or regulation.(5) This section does not apply to the use of a payment card to pay for a travel expense incurred by a state officer or employee while conducting official state business.(d) Effect of noncompliance with this section. The comptroller may suspend or terminate a state agency's authority to use a payment card if the comptroller determines that the agency or an officer or employee of the agency has violated this section.(e) Procurement of payment card services by the comptroller.(1) The comptroller may contract with a payment card issuer on behalf of any state agency that chooses to participate in the contract.(2) A state agency may not use a payment card to pay for a purchase unless the card was issued under a contract between a payment card issuer and the comptroller.(3) A state agency may begin making payment card purchases only after the agency has complied with the procedural requirements of the comptroller.(f) Adoption of procedures by state agencies. A state agency shall adopt reasonable procedures governing the issuance and security of payment cards and the use of those cards by the agency's officers and employees. Upon request, the agency shall make the procedures available to the comptroller for review.(g) Prohibited uses of payment cards. A state agency may not use a payment card and may not reimburse an officer or employee for the use of a payment card for:(1) a purchase of a personal nature or any other purchase not connected with official state business;(2) a cash advance;(3) a purchase of a consulting service;(4) a purchase of a good or a service that may not be purchased without the prior approval of another state agency;(5) a purchase that the comptroller audits before payment; or(6) a purchase from a vendor if a payment to it is prohibited by:(A) Government Code, §403.055 or §2107.008;(B) Education Code, §57.48, or §57.482; or(C) Family Code, §231.007.(h) Applicability of purchasing requirements. The use of a payment card to pay for a purchase does not automatically exempt a state agency or its officers and employees from any purchasing requirement of state law or the comptroller.(i) Payments to payment card issuers. A state agency shall pay a payment card issuer through an electronic funds transfer.(j) Refunds. A state agency may not accept a cash refund for a purchase if the agency paid for the purchase with a payment card.(k) Lost or stolen payment cards. The state employee that had custody of a payment card immediately before it was lost or stolen shall report the loss or theft to the payment card issuer according to its requirements.(l) Disputed charges. A state agency shall dispute any incorrect charge that appears on an invoice the agency receives from a payment card issuer. When disputing the charge, the agency shall comply with applicable law and the issuer's requirements.(m) Taxes. A state agency or a state employee shall properly claim any available exemption from paying a state or federal tax that is assessed on a payment card purchase.(n) Responsibilities and notification of state employees.(1) A state employee shall ensure that each of the employee's payment card purchases comply with applicable state law and this section.(2) The executive head of a state agency shall notify the agency's employees about the requirements of this section.(o) Fiscal year determination. The fiscal year that must be charged for a purchase is not affected by the use of a payment card to pay for the purchase. For example, a state agency that pays a payment card issuer for a service purchased by the agency must charge the payment to the fiscal year in which the service was rendered.(p) Prohibition against excess obligations. A state agency that uses a payment card to pay for a purchase should be careful not to violate any provision in the General Appropriations Act about the incurrence of excess obligations.(q) Purchase document and receipt requirements.(1) A purchase document that a state agency submits to the uniform statewide accounting system for a payment to a payment card issuer must comply with the comptroller's general requirements for the submission of those documents. In addition, the document must:(A) provide the transaction charge and the appropriate Texas identification number on the detail lines;(B) provide the Texas identification number and name of the payment card issuer on the remittance line; and(C) contain any other information the comptroller considers necessary.(2) A state agency shall keep in its files any receipt that a vendor issues to the agency for a payment card purchase. The receipt must contain a description of the good or service purchased that is sufficient to support the expenditure object code used by the agency. The agency shall make the receipt available to the comptroller upon request.",
            "sourceNote": "Source Note: The provisions of this §5.57 adopted to be effective November 15, 1995, 20 TexReg 9190; amended to be effective December 3, 2002, 27 TexReg 11163; amended to be effective November 9, 2008, 33 TexReg 8945; amended to be effective January 9, 2019, 44 TexReg 269."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197133&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197133",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "E",
                "label": "CLAIMS PROCESSING--PURCHASE VOUCHERS"
            },
            "rule": {
                "number": "§5.58",
                "label": "Recovery of Certain State Agency Overpayments"
            },
            "nextRule": {
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                "recordId": "227555",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Consultant--A person with which the comptroller has contracted under Government Code, Chapter 2115.(2) Investment vehicle--Does not include real property.(3) Overpayment--Has the meaning assigned by Government Code, §2115.001(1).(4) Recovery audit--An audit performed under Government Code, Chapter 2115, to recover vendor overpayments made by state agencies.(5) Retiree--An individual who has been granted a retirement benefit under Government Code, Title 8, Subtitle B, C, D, E, or H.(6) Retirement benefit--Includes a service retirement benefit, a disability retirement benefit, an occupational disability retirement benefit, a nonoccupational disability retirement benefit, and a death benefit paid by or on behalf of a retirement system.(7) Retirement system--The Employees Retirement System of Texas, the Teacher Retirement System of Texas, the optional retirement program, the Judicial Retirement System of Texas Plan One, the Judicial Retirement System of Texas Plan Two, or the Texas Emergency Services Retirement System.(8) State agency--Has the meaning assigned by Government Code, §2115.001(2).(9) State employee--An officer or an employee of a state agency. The term does not include an independent contractor.(10) USAS--The uniform statewide accounting system.(11) Vendor payment--Does not include:(A) a payment from money held outside the state treasury if the payment was not reported to USAS as a cash expenditure;(B) a payment that already has been cancelled, recalled, refunded, or otherwise recovered;(C) a payment that was made by warrant if it has not yet been negotiated;(D) a payment of the compensation earned by a state employee;(E) a payment of a retirement benefit by or on behalf of a retirement system;(F) the refund by or on behalf of a retirement system of a member's accumulated contributions to the system;(G) a payment of the amount deducted from:(i) the compensation earned by a state employee; or(ii) the payment by or on behalf of a retirement system of a retirement benefit or the refund of a member's accumulated contributions;(H) a payment to an individual because of the individual's unemployment, under the Texas Unemployment Compensation Act, Labor Code, Title 4, Subtitle A;(I) a payment to a governmental entity of this state, including a state agency, a municipality, a county, a public school district, a public school, or a political subdivision;(J) a payment made by the Texas Department of Insurance in connection with the receivership of an insurance company;(K) a payment for the purchase of a security or other investment vehicle, except that the term includes a payment of a commission or similar fee concerning the purchase;(L) a payment of principal or interest, except that the term includes any interest paid under Government Code, Chapter 2251;(M) a payment of the premium to provide group insurance coverage for state employees or retirees;(N) a payment to a private person to administer a group insurance program for state employees or retirees;(O) a payment of a loan to a private person if, as of the date of the payment, the entire amount of the loan is required to be repaid;(P) a payment of a judgment against the state or a state agency or a payment to settle litigation involving the state or a state agency;(Q) a payment made by a person that is not a state agency; or(R) any other type of payment that the comptroller determines is not cost effective to include in the recovery audit.(b) Exemption from the recovery audit process. A state agency is exempt from the recovery audit process under Government Code, Chapter 2115, if:(1) the total amount of the state agency's cash expenditures during the immediately preceding state fiscal biennium was equal to or less than $50 million, as reported to USAS; and(2) the total amount of the state agency's vendor payments during the immediately preceding state fiscal biennium was less than $40 million, as reported to USAS.(c) Deposit of amounts recovered. A state agency that recovers money as a result of a recovery audit conducted under Government Code, Chapter 2115, shall deposit the money as required by applicable law.",
            "sourceNote": "Source Note: The provisions of this §5.58 adopted to be effective May 2, 2006, 31 TexReg 3587; amended to be effective November 26, 2019, 44 TexReg 7186."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227555&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227555",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "F",
                "label": "CLAIMS PROCESSING--GENERAL REQUIREMENTS"
            },
            "rule": {
                "number": "§5.61",
                "label": "Approval and Certification of Certain Payment and SPRS Documents"
            },
            "nextRule": {
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                "recordId": "227556",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Certification--A state agency's declaration to the comptroller that:(A) the goods or services received by the agency comply with contract requirements; and(B) the invoice received by the agency for the goods or services is correct.(2) Chief deputy--For a state agency that is administered by an elected or appointed state official, the individual authorized by law to administer the agency during the official's absence or inability to act.(3) Comptroller--The Comptroller of Public Accounts for the State of Texas.(4) Executive director--The individual who is the chief administrative officer of a state agency that is headed by a governing body. The term excludes a member of that body.(5) Governing body--The board, commission, committee, council, or other group of individuals that is collectively authorized by law to administer a state agency.(6) Head of agency--The elected or appointed state official who is authorized by law to administer a state agency.(7) Include--A term of enlargement and not of limitation or exclusive enumeration. The use of the term does not create a presumption that components not expressed are excluded.(8) Institution of higher education--Has the meaning assigned by Education Code, §61.003.(9) Mail code--The three-digit number associated with a Texas identification number that documents disbursement instructions.(10) May not--A prohibition. The term does not mean \"might not\" or its equivalents.(11) Non-payment document--The paper or electronic document that a state agency submits to the comptroller for the purpose of requesting the comptroller to post or correct certain accounting information in USAS. The term does not include a payment or SPRS document. (12) Payment document--The paper or electronic document that a state agency submits to the comptroller for the purpose of requesting the comptroller to make a payment on the agency's behalf. The term includes a document that uses the appropriated or other funds of a state agency to make a payment to another state agency. The term does not include a SPRS document or a non-payment document.(13) Payroll document--The type of payment document that the comptroller requires a state agency to submit when requesting payment of the compensation of state officers and employees or certain other types of payments. The term does not include a SPRS document.(14) State agency--A department, board, commission, committee, council, agency, office, or other entity in the executive, legislative, or judicial branch of Texas state government, the jurisdiction of which is not limited to a geographical portion of this state. The term includes an institution of higher education.(15) Texas identification number--The 11-digit number that the comptroller assigns to each payee of a warrant issued or electronic funds transfer initiated by the comptroller.(16) USAS--The uniform statewide accounting system.(17) SPRS--The standardized payroll/personnel reporting system.(18) SPRS document--The document that a state agency electronically submits to SPRS for the purpose of requesting the comptroller to pay the compensation of state officers and employees or to make certain other types of payments. The term does not include a payment or non-payment document.(b) Required approval and certification of payment and SPRS documents.(1) General Requirements. The comptroller may not make a payment on behalf of a state agency unless:(A) the agency properly submits a payment or SPRS document to the comptroller requesting the payment;(B) the document has been approved according to this section; and(C) the requirements, if applicable, of paragraph (2) of this subsection have been satisfied.(2) Certification of payment and SPRS documents. To the extent a payment or SPRS document requests payment of anything other than the compensation of a state officer or employee, a certification concerning the document must be given to the comptroller according to this section.(3) Multiple approvals of payment and SPRS documents.(A) If a payment document is approved more than once, the individual who provides the last approval is responsible for the truth and accuracy of the statement in subsection (o)(2)(B) of this section.(B) If a SPRS document is approved more than once, the individual who provides the last approval is responsible for the truth and accuracy of the statement in subsection (o)(4)(B) of this section.(c) Combined approval and certification of payment and SPRS documents.(1) Automatic certification. When an individual approves a payment or SPRS document, the individual automatically provides its certification if the certification is required by subsection (b)(2) of this section. An individual may not approve a payment or SPRS document without also providing its required certification.(2) Automatic approval. When an individual provides the required certification for a payment or SPRS document, the individual automatically approves it. An individual may not provide the required certification for a payment or SPRS document without also approving it.(3) References. A specific reference in subsections (e) - (q) of this section to the approval of a payment or SPRS document is also a reference to any required certification provided for that document.(d) Fact findings concerning the electronic approval of payment and SPRS documents.(1) Security. The comptroller has determined that the degree of security provided by the electronic approval of payment and SPRS documents under this section is at least equal to the degree of security that would be provided by the non-electronic approval of those documents.(2) Operation and maintenance of USAS. The comptroller has determined that the electronic approval of payment and SPRS documents under this section would facilitate the operation and administration of USAS.(e) Who may not approve payment and SPRS documents.(1) State officers and employees.(A) An officer or employee of a state agency may not approve and may not be designated to approve another agency's payment and SPRS documents.(B) This subparagraph applies when a state agency submits a payment or SPRS document that requests payment out of the funds of a second state agency. No officer or employee of the agency that submits the document may approve it.(2) Individuals not employed by a state agency. An individual who is not employed by a state agency may not approve and may not be designated to approve a state agency's payment or SPRS documents.(f) Who may approve payment and SPRS documents.(1) Generally. Only an individual who is described in paragraph (2) or (4) of this subsection may approve a payment or SPRS document. When this section refers to an individual approving a payment or SPRS document without further qualification or description, the reference is only to an individual who may approve a payment or SPRS, or USPS document under this paragraph.(2) Individuals with inherent authority to approve payment and SPRS documents.(A) The presiding officer of the governing body of a state agency may approve a payment or SPRS document of the agency after:(i) the comptroller has received a signature card that complies with subsection (l) of this section; and(ii) the officer's security profile has been established according to:(I) USAS security's procedures and requirements if the approval is of a payment document; or(II) SPRS security's procedures and requirements if the approval is of a SPRS document.(B) This subparagraph applies only to a state agency that is headed by an elected or appointed state official. The agency's head of agency may approve a payment or SPRS document of the agency after:(i) the comptroller has received a signature card that complies with subsection (l) of this section; and(ii) the head of agency's security profile has been established according to:(I) USAS security's procedures and requirements if the approval is of a payment document; or(II) SPRS security's procedures and requirements if the approval is of a SPRS document.(C) Notwithstanding subparagraphs (A)(ii) and (B)(ii) of this paragraph, a presiding officer or a head of agency may provide non-electronic approval of a payment or SPRS document without establishing a security profile. This subparagraph applies only if the comptroller does not require the approval to be provided electronically.(3) USAS and SPRS security profile changes.(A) This paragraph applies only when an individual ceases being either the presiding officer of a governing body or a head of agency.(B) The individual's security profile in USAS, if any, must be changed so that USAS no longer recognizes the individual's user identification number as belonging to an individual who has authority to approve payment documents. The individual's security profile in SPRS, if any, must be changed so that SPRS no longer recognizes the individual's user identification number as belonging to an individual who has authority to approve SPRS documents. The changes must take effect not later than the date the individual ceases being the presiding officer or head of agency.(C) The security coordinator of the state agency with which the individual serves as presiding officer or head of agency is responsible for requesting the comptroller to change the individual's security profiles.(D) If the comptroller determines that a security coordinator has not complied with subparagraph (C) of this paragraph, then the comptroller may unilaterally change the security profiles.(E) This subparagraph applies to a payment or SPRS document only if the comptroller determines that an individual approved the document after the individual ceased being a presiding officer or a head of agency. The comptroller may take any necessary steps to prevent a warrant from being issued or an electronic funds transfer from being initiated until the document is properly approved. If the comptroller is unable to prevent a warrant from being issued or an electronic funds transfer from being initiated, then the comptroller may take any necessary steps to prevent the warrant from being honored or to reverse the electronic funds transfer. The state agency whose payment or SPRS document results in the warrant or electronic funds transfer shall cooperate fully with the comptroller.(4) Individuals without inherent authority but who may be designated to approve payment documents. An officer or employee of a state agency who does not have inherent authority to approve the agency's payment and SPRS documents may be designated to approve those documents. A designation is valid only if it is made:(A) by someone with the authority to make designations; and(B) according to the procedures required by this section.(g) Who may designate individuals to approve payment and SPRS documents.(1) State agencies headed by a governing body.(A) The governing body of a state agency may designate one or more individuals to approve its payment and SPRS documents.(B) The governing body of a state agency may authorize the governing body's presiding officer or the agency's executive director, or both, to designate one or more individuals to approve the agency's payment and SPRS documents. The presiding officer or executive director may make a designation only if the authorization is effective according to subsection (h)(1) of this section.(2) State agencies headed by an elected or appointed state official.(A) The head of agency of a state agency may designate one or more individuals to approve the agency's payment and SPRS documents.(B) The head of agency of a state agency may authorize the agency's chief deputy to designate one or more individuals to approve the agency's payment and SPRS documents. The chief deputy may make a designation only if the authorization is effective according to subsection (h)(2) of this section.(h) How to authorize individuals to designate other individuals to approve payment and SPRS documents.(1) State agencies headed by a governing body.(A) The authorization of a presiding officer or executive director to designate individuals to approve payment and SPRS documents is effective only after the comptroller has received proper written notice of the authorization.(B) Written notice to the comptroller is proper only if the notice satisfies the requirements of this subparagraph.(i) The notice must be:(I) a certified copy of the minutes of the meeting of the governing body during which it made the authorization; or(II) a letter, memorandum, or other writing.(ii) If the notice consists of a copy of the minutes, then the copy must be certified and signed by:(I) the presiding officer of the governing body; or(II) the member of the governing body who is responsible for keeping those minutes.(iii) If the notice is in the form of a letter, memorandum, or other writing, then it must be signed by the presiding officer of the governing body.(iv) The notice must state in substance that the governing body has authorized the presiding officer or executive director, as applicable, to designate individuals to approve the agency's payment and SPRS documents.(v) The notice must state an effective date for the authorization.(C) The authorization of a presiding officer or executive director to designate individuals to approve payment and SPRS documents may be of a named individual or, alternatively, anyone who holds the position of presiding officer or executive director.(i) If the comptroller receives notification that a governing body has authorized the \"presiding officer\" or the \"executive director,\" then the body is deemed to have authorized whoever holds the position of presiding officer or executive director.(ii) If the comptroller receives notification that a governing body has authorized a named individual, then the body is deemed to have decided that its authorization terminates automatically upon the individual's leaving the position of presiding officer or executive director.(D) The authorization of a presiding officer or executive director may not be limited to designating individuals to approve only payment documents or only SPRS documents. If the comptroller receives notification that a governing body has authorized the presiding officer or executive director to designate individuals to approve only one type of document, then the body is deemed to have authorized the designation of individuals to approve both types of documents.(2) State agencies headed by an elected or appointed state official.(A) The authorization of a chief deputy to designate individuals to approve payment and SPRS documents is effective only after the comptroller has received proper written notice of the authorization. (B) Written notice to the comptroller is proper only if the notice:(i) contains the head of agency's original signature; (ii) states in substance that the head of agency has authorized the chief deputy to designate individuals to approve the agency's payment and SPRS documents; and(iii) states an effective date for the authorization.(C) The authorization of a chief deputy to designate individuals to approve payment and SPRS documents may be of a named individual or, alternatively, anyone who holds the position of chief deputy.(i) If the comptroller receives notification that a head of agency has authorized the \"chief deputy,\" then the head of agency is deemed to have authorized whoever holds the position of chief deputy.(ii) If the comptroller receives notification that a head of agency has authorized a named individual, then the head of agency is deemed to have decided that the authorization terminates automatically upon the individual's leaving the position of chief deputy.(D) The authorization of a chief deputy may not be limited to designating individuals to approve only payment documents or only SPRS documents. If the comptroller receives notification that a head of agency has authorized the chief deputy to designate individuals to approve only one type of document, then the head of agency is deemed to have authorized the designation of individuals to approve both types of documents.(i) How to revoke authorizations of individuals to designate other individuals to approve payment and SPRS documents.(1) State agencies headed by a governing body.(A) The governing body of a state agency may revoke its authorization of a presiding officer or executive director to designate individuals to approve the agency's payment and SPRS documents.(B) If a governing body revokes an authorization, then the body's presiding officer shall ensure that the comptroller receives written notice of the revocation not later than the fifth day after its effective date.(C) If the comptroller determines that an individual made a designation after the effective date of the revocation of the individual's authority to make designations, then the comptroller may not recognize the designation.(D) This subparagraph applies only if the governing body of a state agency has authorized a named individual to designate individuals to approve the agency's payment and SPRS documents.(i) The comptroller shall stop recognizing the authorization of an individual who, at the time of the authorization, was the body's presiding officer if the comptroller determines that the individual no longer holds that position.(ii) The comptroller shall stop recognizing the authorization of an individual who, at the time of the authorization, was the agency's executive director if the comptroller determines that the individual no longer holds that position.(iii) A determination under clause (i) or (ii) of this subparagraph may be based on any information the comptroller deems credible.(E) A change in the membership of a governing body does not automatically revoke an authorization made by that body. Whether an authorization would be revoked automatically by the abolishment of a governing body, the wholesale substitution of one governing body for another, or the transfer of a state agency from the jurisdiction of one governing body to another would depend on the legislation enacting the abolishment, substitution, or transfer.(2) State agencies headed by an elected or appointed state official.(A) The head of agency of a state agency may revoke the authorization of a chief deputy to designate individuals to approve the agency's payment and SPRS documents. The head of agency shall ensure that the comptroller receives written notice of the revocation not later than the fifth day after its effective date. If the comptroller determines that an individual made a designation after the effective date of the revocation of the individual's authority to make designations, then the comptroller may not recognize the designation.(B) This subparagraph applies only if the head of agency of a state agency has authorized a named individual to designate individuals to approve the agency's payment and SPRS documents. The comptroller shall stop recognizing the authorization of an individual who, at the time of the authorization, was the chief deputy if the comptroller determines that the individual no longer holds that position. This determination may be based on any information the comptroller deems credible.(C) When an individual stops being the head of agency of a state agency, all authorizations made by that individual are revoked automatically. Whether an authorization would be revoked automatically by the transfer of a state agency from the jurisdiction of one head of agency to another would depend on the legislation enacting the abolishment, substitution, or transfer.(j) How to designate individuals to approve payment and SPRS documents.(1) State agencies headed by a governing body.(A) An individual who has been designated to approve a state agency's payment and SPRS documents may approve one of those documents if:(i) the comptroller has received proper written notice of the designation;(ii) the comptroller has received a signature card that complies with subsection (l) of this section; and(iii) the individual's security profile has been established according to:(I) USAS security's procedures and requirements if the approval is of a payment document; or(II) SPRS security's procedures and requirements if the approval is of a SPRS document.(B) Written notice to the comptroller is proper only if the notice satisfies the requirements of this subparagraph.(i) The notice must be:(I) a certified copy of the minutes of the meeting of the governing body during which it made the designation; or(II) a letter, memorandum, or other writing.(ii) If the notice consists of a copy of the minutes, then the copy must be certified and signed by:(I) the presiding officer of the governing body; or(II) the member of the governing body who is responsible for keeping those minutes.(iii) If the notice is in the form of a letter, memorandum, or other writing, then it must be signed by:(I) the presiding officer of the governing body if it made the designation; or(II) the individual who made the designation if the governing body did not.(iv) The notice must:(I) identify the governing body or individual who made the designation;(II) list the legal name of the designated individual;(III) state an effective date for the designation; and(IV) say in substance that the individual has been designated to approve payment and SPRS documents.(C) Notwithstanding subparagraph (A)(iii) of this paragraph, an individual may provide non-electronic approval of a payment or SPRS document without establishing a security profile. This subparagraph applies only if the comptroller does not require the approval to be provided electronically.(D) The designation of an individual to approve payment or SPRS documents must be of a named individual. The designation may not be of just anyone who holds a particular office or position. If the comptroller receives notification that a particular office or position has been designated, then the designation will be deemed to have been of the individual who holds the office or position as of the date the designation is made. The comptroller's failure to specifically refuse to recognize the designation of an office or position does not constitute the comptroller's acceptance of the designation of the office or position.(E) The designation of an individual may not be limited to approving only payment documents or only SPRS documents. If the comptroller receives notification that an individual has been designated to approve only one type of document, then the designation will be deemed to include approval of both types of documents.(2) State agencies headed by an elected or appointed state official.(A) An individual who has been designated to approve a state agency's payment and SPRS documents may approve one of those documents if:(i) the comptroller has received proper written notice of the designation;(ii) the comptroller has received a signature card that complies with subsection (l) of this section; and(iii) the individual's security profile has been established according to:(I) USAS security's procedures and requirements if the approval is of a payment document; or(II) SPRS security's procedures and requirements if the approval is of a SPRS document.(B) Written notice to the comptroller is proper only if the notice:(i) is signed by the individual who made the designation;(ii) lists the legal name of the designated individual;(iii) says who made the designation;(iv) states an effective date for the designation; and(v) says in substance that the individual has been designated to approve payment and SPRS documents.(C) Notwithstanding subparagraph (A)(iii) of this paragraph, an individual may provide non-electronic approval of a payment or SPRS document without establishing a security profile. This subparagraph applies only if the comptroller does not require the approval to be provided electronically.(D) The designation of an individual to approve payment and SPRS documents must be of a named individual. The designation may not be of just anyone who holds a particular office or position. If the comptroller receives notification that a particular office or position has been designated, then the designation will be deemed to have been of the individual who holds the office or position as of the date the designation is made. The comptroller's failure to specifically refuse to recognize the designation of an office or position does not constitute the comptroller's acceptance of the designation of the office or position.(E) The designation of an individual may not be limited to approving only payment documents or only SPRS documents. If the comptroller receives notification that an individual has been designated to approve only one type of document, then the designation will be deemed to include approval of both types of documents.(k) How to revoke designations of individuals to approve payment and SPRS documents.(1) State agencies headed by a governing body.(A) The governing body of a state agency may, at anytime, revoke the designation of an individual to approve the agency's payment and SPRS documents, regardless of who made the designation.(B) This subparagraph applies only if a state agency's presiding officer is authorized to designate individuals to approve the agency's payment and SPRS documents. The presiding officer may revoke the designation of an individual only if:(i) the presiding officer made the designation;(ii) an individual who previously held the position of presiding officer made the designation while holding that position;(iii) the agency's executive director made the designation; or(iv) an individual who previously held the position of executive director made the designation while holding that position.(C) This subparagraph applies only if a state agency's executive director is authorized to designate individuals to approve the agency's payment and SPRS documents. The executive director may revoke the designation of an individual only if:(i) the executive director made the designation; or(ii) an individual who previously held the position of executive director made the designation while holding that position.(D) If the designation of an individual to approve payment and SPRS documents is revoked and the individual does not have a security profile or a user identification number in USAS or SPRS providing the individual with authority to approve payment, then the comptroller must receive written notification of the revocation not later than the fifth day after the revocation decision is made. The notification must be provided by the presiding officer of a governing body if that body revoked the designation. Otherwise, the notification must be provided by the individual who revoked the designation.(E) If the designation of an individual to approve payment and SPRS documents is revoked and the individual has a security profile or a user identification number in USAS or SPRS providing the individual with authority to approve payment, then the comptroller must receive notification of the revocation not later than the date the revocation decision is made. The notification must be provided by the security coordinator of the state agency that revoked the designation. (F) A change in the membership of a state agency's governing body does not automatically revoke the body's designation of any individual to approve payment and SPRS documents. Whether designations would be revoked automatically by the abolishment or creation of a governing body, the substitution of one governing body for another, or the transfer of a state agency from the jurisdiction of one governing body to another would depend on the legislation that enacts the change.(G) A notification to the comptroller under subparagraph (D) of this paragraph must satisfy the requirements of this subparagraph. (i) The notification must be:(I) a certified copy of the minutes of the meeting of the governing body during which it revoked the designation; or(II) a letter, memorandum, or other writing.(ii) If the notification consists of a copy of the minutes, then the copy must be certified and signed by:(I) the presiding officer of the governing body; or(II) the member of the governing body who is responsible for keeping those minutes.(iii) If the notification is in the form of a letter, memorandum, or other writing, then it must be signed by:(I) the presiding officer of the governing body if it revoked the designation; or(II) the individual who revoked the designation if the governing body did not.(iv) The notification must:(I) identify the governing body or individual who revoked the designation;(II) list the legal name of the individual whose designation is revoked;(III) state an effective date for the revocation; and(IV) say in substance that the individual's designation to approve payment and SPRS documents is revoked.(2) State agencies headed by an elected or appointed state official.(A) The head of agency of a state agency may, at anytime, revoke the designation of an individual to approve the agency's payment and SPRS documents, regardless of who made the designation.(B) This subparagraph applies only if a state agency's chief deputy is authorized to designate individuals to approve the agency's payment and SPRS documents. The chief deputy may revoke the designation of an individual only if:(i) the chief deputy made the designation; or(ii) an individual who previously held the position of chief deputy made the designation while holding that position.(C) If the designation of an individual to approve payment and SPRS documents is revoked and the individual does not have a security profile or a user identification number in USAS or SPRS providing the individual with authority to approve payment, then the comptroller must receive written notification of the revocation not later than the fifth day after the revocation is made. The notification must be provided by the individual who revoked the designation.(D) If the designation of an individual to approve payment and SPRS documents is revoked and the individual has a security profile or a user identification number in USAS or SPRS providing the individual with authority to approve payment, then the comptroller must receive notification of the revocation not later than the date the revocation decision is made. The notification must be provided by the security coordinator of the state agency that revoked the designation. (E) A change in a state agency's head of agency does not automatically revoke the head of agency's designation of any individual to approve payment and SPRS documents. Whether designations would be revoked automatically by the transfer of a state agency from the jurisdiction of one head of agency to another would depend on the legislation that enacts the change.(F) A notification to the comptroller under subparagraph (C) of this paragraph must:(i) be signed by the individual who revoked the designation; (ii) identify the individual who revoked the designation;(iii) list the legal name of the individual whose designation is revoked;(iv) state an effective date for the revocation; and(v) say in substance that the individual's designation to approve payment and SPRS documents is revoked.(3) Mandatory revocations because of termination of employment.(A) This paragraph applies to all state agencies.(B) When an individual terminates employment with a state agency and does not have a security profile or a user identification number in USAS or SPRS providing the individual with authority to approve payment, the individual's designation to approve the agency's payment and SPRS documents ends on the effective date of the termination. The comptroller must receive notification of the revocation not later than the effective date of the termination. The notification may be provided by any officer or employee of the agency.(C) When an individual terminates employment with a state agency and has a security profile or a user identification number in USAS or SPRS providing the individual with authority to approve payment, the individual's designation to approve the agency's payment and SPRS documents ends on the effective date of the termination. The comptroller must receive notification of the revocation the effective date of the termination. The notification must be provided by the security coordinator of the state agency that terminates the individual.(D) The comptroller shall stop recognizing the designation of an individual to approve a state agency's payment and SPRS documents if the comptroller determines that the individual has terminated employment with the agency. This determination may be based on any information the comptroller deems credible.(4) Revocations by the comptroller.(A) This paragraph applies to all state agencies.(B) The comptroller may unilaterally revoke the designation of any individual to approve payment and SPRS documents for any reason the comptroller deems appropriate.(5) USAS security profile changes.(A) If the designation of an individual to approve payment and SPRS documents is revoked, then the individual's security profiles in USAS and SPRS, if any, must be changed so that:(i) USAS no longer recognizes the individual's user identification number as belonging to an individual who has authority to approve payment documents; and(ii) SPRS no longer recognizes the individual's user identification number as belonging to an individual who has authority to approve SPRS documents.(B) A security profile change required by subparagraph (A) of this paragraph must take effect not later than the date the revocation takes effect.(C) The comptroller is responsible for changing the security profiles if the comptroller revoked the designation. Otherwise, the security coordinator of the state agency that revoked the designation is responsible.(D) If the comptroller determines that a security coordinator has not complied with subparagraph (C) of this paragraph, then the comptroller may unilaterally change the security profiles of the individual whose designation has been revoked.(6) Unauthorized approvals of payment and SPRS documents.(A) This paragraph applies to a payment or SPRS document only if the comptroller determines that an individual approved the document after the taking effect of the revocation of the individual's designation to approve payment and SPRS documents.(B) The comptroller may take any necessary steps to prevent a warrant from being issued or an electronic funds transfer from being initiated until a payment or SPRS document subject to this paragraph is properly approved.(C) If the comptroller is unable to prevent a warrant from being issued or an electronic funds transfer from being initiated, then the comptroller may take any necessary steps to prevent the warrant from being honored or to reverse the electronic funds transfer. The state agency whose payment or SPRS document resulted in the warrant or electronic funds transfer shall cooperate fully with the comptroller in this regard.(l) Signature card requirements.(1) Presiding officers and heads of agency. A signature card submitted by a state agency concerning the approval of payment and SPRS documents by the presiding officer of a governing body or by a head of agency is valid only if the card:(A) specifies the legal name, Texas identification number, mail code, and position of the presiding officer or head of agency;(B) provides the presiding officer's or head of agency's user identification number, if the officer or head of agency has one;(C) contains the presiding officer's or head of agency's original signature;(D) specifies the agency's name and identification number;(E) provides a contact phone number for the agency; and(F) lists an effective date.(2) Designated individuals. A signature card submitted by a state agency concerning the designation of an individual to approve payment and SPRS documents is valid only if the card:(A) specifies the designated individual's legal name, Texas identification number, mail code, and position;(B) provides the designated individual's user identification number, if the individual has one;(C) contains the designated individual's original signature;(D) specifies the agency's name and identification number;(E) provides a contact phone number for the agency; and(F) lists an effective date that is the same as the date listed in the accompanying written notification.(m) Limitations adopted by state agencies concerning approval and designation authority.(1) Limitations on approval authority. The comptroller may not enforce a state agency's decision to limit an individual's approval authority to particular types of payment or SPRS documents if the limit is stricter than required by state law and this section. Enforcement of that decision is solely the agency's responsibility.(2) Limitations on designation authority. The comptroller may not enforce a state agency's decision to limit a presiding officer's, executive director's, or chief deputy's authority to designate individuals to approve payment or SPRS documents if the limit is stricter than required by state law and this section. Enforcement of that decision is solely the agency's responsibility.(n) Signature card and notification forms adopted by the comptroller.(1) Adoption of forms. The comptroller may adopt one or more forms to facilitate compliance with the signature card and written notice and notification requirements of this section.(2) Use of forms. If the comptroller adopts a form under paragraph (1) of this subsection, then a state agency must use the form to comply with the requirements of this section to the extent the comptroller intends the form to be used for that purpose.(o) How electronic approvals of payment and SPRS documents are provided.(1) Release of payment documents into USAS for processing. (A) A state agency may request USAS to process a batch of the agency's payment documents only by releasing the batch on-line according to this section and the procedures adopted by the comptroller.(B) A batch that a state agency has released must be released again by the agency if:(i) a transaction within the batch is altered after its original release; or(ii) a transaction is added to the batch after its original release.(C) An individual may approve a payment document only if:(i) the individual begins an on-line session in USAS by entering the individual's user identification number and password; and(ii) USAS determines that the user identification number and password belong to an individual who USAS recognizes as authorized to approve the agency's payment documents.(D) USAS recognizes an individual as authorized to release a state agency's payment documents only if the comptroller has given the individual the necessary security to release those documents. (E) A state agency that wants an individual to have release capabilities for the agency's payment documents must properly request necessary security for the individual from the comptroller. The comptroller will grant the request only if the comptroller determines that the individual:(i) has inherent authority to approve payment documents and the requirements of subsection (f)(2) of this section have been satisfied; or(ii) the individual has been designated to approve the agency's payment documents, the requirements of subsection (j) of this section have been satisfied, and the individual's designation has not been revoked according to subsection (k) of this section.(2) Legal significance of releasing batches of payment documents into USAS for processing.(A) The on-line release of a batch of payment documents into USAS for processing constitutes the electronic approval of all those documents.(B) An individual who releases a batch of payment documents into USAS for processing is responsible for the truth and accuracy of the following statement with respect to each payment document and transaction in the batch: \"I approve each purchase, travel, and payroll document in this batch. Employees at my state agency have determined that each document complies with applicable law, including the General Appropriations Act (GAA) and the rules of the comptroller of public accounts. For each purchase or travel document, employees at my state agency have determined that: the goods and services covered by the document comply with the requirements of the contracts under which they were purchased; and that the invoices for the goods and services are correct. For each transaction included in a travel document, employees at my state agency have determined that the information included in the transaction has been approved by the claimant. For each payroll document, employees at my state agency have determined that: the payroll is correct and unpaid; and that any salary supplementation report required by the GAA to be filed with the comptroller of public accounts and the secretary of state has been filed. My state agency has authorized me to make this statement for the agency, and I accept responsibility for it.\" An individual who does not want to be responsible for this statement about a batch may not release the batch. An individual may not both release a batch and avoid responsibility for the statement.(C) The chief fiscal officer of a state agency shall ensure that each individual who is authorized or designated to approve the agency's payment documents understands this paragraph. The agency's executive director or head of agency, as applicable, shall ensure that the chief fiscal officer satisfies this requirement. However, the failure of the chief fiscal officer, the executive director, or the head of agency to comply with a requirement of this subparagraph does not relieve any individual from responsibility for the truth and accuracy of the statement in subparagraph (B) of this paragraph.(D) A state agency may not adopt a policy, procedure, or rule that conflicts with this paragraph.(3) Release of SPRS documents into SPRS for processing.(A) A state agency may request SPRS to process a batch of the agency's SPRS documents only by releasing the batch on-line according to this section and the procedures adopted by the comptroller.(B) A batch that a state agency has released must be released again by the agency if:(i) a transaction within the batch is altered after its original release; or(ii) a transaction is added to the batch after its original release.(C) An individual may approve a SPRS document only if:(i) the individual begins an on-line session in SPRS by entering the individual's user identification number and password; and(ii) SPRS determines that the user identification number and password belong to an individual who SPRS recognizes as authorized to approve the agency's SPRS documents.(D) SPRS recognizes an individual as authorized to release a state agency's SPRS documents only if the comptroller has given the individual the necessary security to release those documents. (E) A state agency that wants an individual to have release capabilities for the agency's SPRS documents must properly request necessary security for the individual from the comptroller. The comptroller will grant the request only if the comptroller determines that the individual:(i) has inherent authority to approve SPRS documents and the requirements of subsection (f)(2) of this section have been satisfied; or(ii) the individual has been designated to approve the agency's SPRS documents, the requirements of subsection (j) of this section have been satisfied, and the individual's designation has not been revoked according to subsection (k) of this section.(4) Legal significance of releasing batches of SPRS documents into SPRS for processing.(A) The on-line release of a batch of USPS or SPRS documents into USPS or SPRS for processing constitutes the electronic approval of all those documents.(B) An individual who releases a batch of SPRS documents into SPRS for processing is responsible for the truth and accuracy of the following statement with respect to each document and transaction in the batch: \"I approve each document in this batch. Employees at my state agency have determined that each document complies with applicable law, including the General Appropriations Act (GAA) and the rules of the comptroller of public accounts. For each document that involves the payment of compensation to a state officer or employee, employees at my state agency have determined that: the payroll is correct and unpaid; and that any salary supplementation report required by the GAA to be filed with the comptroller of public accounts and the secretary of state has been filed. For each document that does not involve the payment of compensation to a state officer or employee, employees at my state agency have determined that: the goods and services covered by the document comply with the requirements under which they were purchased; and that the invoices for the goods or services are correct. For each transaction that involves the reimbursement of a meal expense incurred during non-overnight travel, employees at my state agency have determined that the information included in the transaction has been approved by the claimant. My state agency has authorized me to make this statement for the agency, and I accept responsibility for it.\" An individual who does not want to be responsible for this statement about a batch may not release the batch. An individual may not both release a batch and avoid responsibility for the statement.(C) The chief fiscal officer of a state agency shall ensure that each individual who is authorized or designated to approve the agency's SPRS documents understands this paragraph. The agency's executive director or head of agency, as applicable, shall ensure that the chief fiscal officer satisfies this requirement. However, the failure of the chief fiscal officer, the executive director, or the head of agency to comply with a requirement of this subparagraph does not relieve any individual from responsibility for the truth and accuracy of the statement in subparagraph (B) of this paragraph.(D) A state agency may not adopt a policy, procedure, or rule that conflicts with this paragraph.(5) Disclosure of user identification numbers and passwords. An individual may not disclose the individual's user identification number or password, or both, to any individual or entity. Therefore, an individual may not authorize another individual to release a batch of payment or SPRS documents by using the first individual's user identification number and password. Penal Code, §33.02 criminalizes the intentional or knowing disclosure of a password or personal identification number to an individual or entity without the effective consent of the computer owner.(p) Non-electronic approvals of paper payment documents.(1) Special definition. In this subsection, \"payment document\" means only a paper payment document.(2) General requirements. A state agency may provide non-electronic approval of a payment document only if the comptroller consents to that approval method.(3) Requirements of other subsections. In addition to this subsection, subsections (a) - (o) of this section govern all aspects of non-electronic approvals of payment documents, with the exceptions specified in those subsections.(4) Method for providing approvals.(A) The non-electronic approval of a payment document must be provided through the original signature of an individual who is authorized or designated to approve the document.(B) An individual's original signature on a payment document is a valid approval of that document only if the signature matches the individual's signature on the appropriate signature card or, if adopted by the comptroller, on the form used in lieu of signature cards.(5) Reapprovals. If a payment document is altered in any manner after an individual has properly approved the document, then the document must be properly approved again.(q) Non-electronic approvals of payment documents submitted to USAS electronically and of SPRS documents.(1) Special definition. In this subsection, \"payment document\" means only a payment document that is submitted to USAS electronically.(2) General requirements. A state agency may provide non-electronic approval of a payment or SPRS document only if the comptroller consents to that approval method.(3) Requirements of other subsections. In addition to this subsection, subsections (a) - (o) of this section govern all aspects of non-electronic approvals of payment and SPRS documents, with the exceptions specified in those subsections.(4) Method for providing approvals.(A) The non-electronic approval of a payment or SPRS document must be provided through the original signature of an individual who is authorized or designated to approve the document.(B) An individual's original signature on a payment or SPRS document is a valid approval of that document only if the signature matches the individual's signature on the appropriate signature card or, if adopted by the comptroller, on the form used in lieu of signature cards.(5) Reapprovals. If a payment or SPRS document is altered in any manner after an individual has properly approved the document, then the document must be properly approved again.(6) When the release of a payment or SPRS document does not constitute approval of that document.(A) If the comptroller has consented to the contract, a state agency may contract with an individual not employed by the agency or with another entity to:(i) release the agency's payment documents into USAS for processing;(ii) release the agency's SPRS documents into SPRS for processing; or(iii) release the agency's payment documents into USAS for processing and the agency's SPRS documents into SPRS for processing.(B) The release of a payment or SPRS document under subparagraph (A) of this paragraph does not constitute approval of the document. The document may be approved only according to paragraph (4) of this subsection.(C) The comptroller may consent to a contract described by subparagraph (A) of this paragraph if:(i) the comptroller is satisfied that the state agency whose payment or SPRS documents are being released has statutory authority to enter into the contract;(ii) the comptroller is satisfied that the state agency, if any, that will be releasing the payment or SPRS documents has statutory authority to enter into the contract;(iii) the contract is in writing;(iv) the comptroller is satisfied that the agency whose payment or SPRS documents are being released has established an internal system for properly authorized or designated individuals to approve those documents before their release according to paragraph (4) of this subsection;(v) the comptroller is satisfied that approvals under the internal system described in clause (iv) of this subparagraph can be verified easily by the comptroller and the individual or entity that releases the payment or SPRS documents;(vi) before an individual or entity releases a payment or SPRS document, the contract requires the individual or entity to verify that the approval methods described in paragraph (4) of this subsection have been followed;(vii) the individual or entity has entered into a contract with the comptroller that obligates the individual or entity to comply with the requirements of this paragraph, if the comptroller determines the contract is necessary;(viii) the agency whose payment or SPRS documents are being released has agreed in its post-payment contract, if any, with the comptroller that the release of those documents into USAS or SPRS, as applicable, does not constitute approval of the document; and(ix) the comptroller is satisfied that the security provided under the contract is at least equivalent to the security that would exist if the agency released its own payment or SPRS documents. (D) The burden of demonstrating that a state agency has statutory authority to enter into a contract described in subparagraph (A) of this paragraph is with the agency. The comptroller may require the submission of whatever information and legal arguments the comptroller deems necessary to satisfy the comptroller that the authority exists.(E) The comptroller must be kept informed about who is authorized to release the payment or SPRS documents of a state agency that has entered into a contract described in subparagraph (A) of this paragraph. The authorized individuals may not appear on the agency's signature cards or, if adopted by the comptroller, the form used in lieu of the cards. The officer or employee of the agency who has the authority to enter into accounting services contracts is responsible for complying with this subparagraph.",
            "sourceNote": "Source Note: The provisions of this §5.61 adopted\r\nto be effective November 19, 1996, 21 TexReg 10990; amended to be\r\neffective February 2, 1998, 23 TexReg 786; amended to be effective\r\nOctober 20, 2008, 33 TexReg 8650; amended to be effective February\r\n17, 2026, 51 TexReg 959."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227556&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227556",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "L",
                "label": "CLAIMS PROCESSING--REPLACEMENT PAYMENTS"
            },
            "rule": {
                "number": "§5.140",
                "label": "Replacement Payments"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197459&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197459",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Appropriation year--The year for which legal authorization for the charge was granted by the legislature. Multiple appropriation year activity may occur within a single fiscal year.(2) Comptroller--The Comptroller of Public Accounts for the State of Texas.(3) Fiscal year--The accounting period for the state government which begins on September 1 and ends on August 31.(4) Include--A term of enlargement and not of limitation or exclusive enumeration. The use of the term does not create a presumption that components not expressed are excluded.(5) May not--A prohibition. The term does not mean \"might not\" or its equivalents.(6) Payee--A person to whom a payment is made payable. A payee may include an individual, a corporation, an organization, a government or governmental subdivision or agency, a business trust, an estate, a trust, a partnership, an association, and any other legal entity.(7) Payment cancellation voucher--The form prescribed by the comptroller that a state agency completes when requesting cancellation of a warrant by the comptroller.(8) Replacement payment--A payment issued to replace an original warrant, either by issuing a replacement warrant or initiating an electronic funds transfer.(9) State agency--(A) a board, commission, department, or other agency in the executive branch of state government that is created by the constitution or a statute of this state, including the comptroller and an institution of higher education as defined by Education Code, §61.003, other than a public junior college;(B) the legislature or a legislative agency; or(C) the supreme court, the court of criminal appeals, a court of appeals, or a state judicial agency.(10) Statewide accounting system--Includes the Uniform Statewide Accounting System, the Statewide Payroll/Personnel Reporting System and the Centralized Accounting and Payroll/Personnel System.(11) Warrant--A state payment in the form of paper issued to a payee by or on behalf of a state agency.(b) Request for issuance. The payee of an original warrant may request issuance of a replacement payment. The request must be directed to the state agency that initiated the original warrant and must be accompanied by any statements or documentation required by the agency.(c) Issuance by comptroller. The comptroller may issue a replacement payment only if:(1) the state agency that initiated the original warrant provides to the comptroller proper notification that:(A) the agency has received a request for issuance of a replacement payment from the payee of the original warrant;(B) the replacement payment would replace an original warrant previously issued by the agency; and(C) the agency has determined that:(i) the original warrant was lost, destroyed, or stolen;(ii) the payee did not receive the original warrant; or(iii) the payee's endorsement on the original warrant was forged; and(2) subsection (f) of this section does not prohibit issuance of the replacement payment.(d) Issuance by other agency. A state agency other than the comptroller may issue a replacement payment only if:(1) the comptroller has delegated to the agency the authority to print and deliver warrants under Government Code, §403.060; (2) the replacement payment would replace an original warrant previously issued by the agency;(3) the agency has determined that:(A) the original warrant was lost, destroyed, or stolen;(B) the payee did not receive the original warrant; or(C) the payee's endorsement on the original warrant was forged; and(4) subsection (f) of this section does not prohibit issuance of the replacement payment.(e) Notification.(1) For all warrants except financial assistance warrants governed by Human Resources Code, §31.038 and back pay award warrants governed by Labor Code, Chapter 210, Subchapter A, notification to the comptroller under subsection (c)(1) of this section is proper only if the agency:(A) submits the information directly to the comptroller's Web cancellation system in accordance with the comptroller's requirements, if the agency's documentation is retained in the agency's files for audit by the comptroller; or(B) complies with the comptroller's requirement to submit a payment cancellation voucher to the comptroller for cancellation of warrants that are not eligible to be canceled on the comptroller's Web cancellation system.(i) The agency must complete and submit the payment cancellation voucher to the comptroller.(ii) The agency may substitute the comptroller's payment cancellation voucher with an agency payment cancellation voucher only upon approval by the comptroller.(2) For financial assistance warrants governed by Human Resources Code, §31.038 and back pay award warrants governed by Labor Code, Chapter 210, Subchapter A, notification to the comptroller under subsection (c)(1) of this section is proper only if the agency completes and submits the appropriate documentation to the comptroller.(3) After a warrant is canceled, the state agency that requested its cancellation may request issuance of a replacement payment in accordance with the procedures adopted by the comptroller. The request for a replacement payment must be submitted to the appropriate statewide accounting system.(f) Prohibition on issuance. A replacement payment may not be issued if:(1) the original warrant has been paid, unless a refund of the payment has been obtained by the state;(2) the period during which the comptroller may pay the original warrant has expired under Government Code, §404.046, or other applicable law;(3) the payee of the replacement payment is not the same as the payee of the original warrant; or(4) state or federal law prohibits the issuance of a payment to the payee of the replacement payment.(g) Limitations and exceptions.(1) A replacement warrant must reflect the same appropriation year as the original warrant and may not be paid unless presented to the comptroller or a financial institution before the expiration of two years after the close of the fiscal year in which the original warrant was issued.(2) Except as provided by paragraph (1) of this subsection, a replacement payment for a federal guaranteed student loan identified by the Texas Higher Education Coordinating Board must be issued within 120 calendar days from its original date of issuance and may not be paid unless presented to the comptroller or a financial institution before its expiration date.(3) Except as provided by this paragraph, the Texas Workforce Commission shall comply with this section when issuing a replacement payment. The deadline for issuance of the replacement payment is the deadline specified in Labor Code, Chapter 210, Subchapter A.(4) A replacement payment issued to replace a state employee payroll warrant may not be issued by initiating an electronic funds transfer. Such replacement payment may be issued only in the form of a replacement warrant.(5) The state agency that issues a replacement payment under subsection (c) or (d) of this section is authorized to determine whether the replacement payment is issued in the form of a replacement warrant or an electronic funds transfer. The state agency must follow the appropriate comptroller procedures for issuing a replacement payment.",
            "sourceNote": "Source Note: The provisions of this §5.140 adopted\r\nto be effective February 14, 1997, 22 TexReg 1329; amended to be effective\r\nFebruary 15, 1999, 24 TexReg 993; amended to be effective November\r\n20, 2008, 33 TexReg 9270; amended to be effective March 11, 2013,\r\n38 TexReg 1695; amended to be effective July 12, 2018, 43 TexReg 4559;\r\namended to be effective February 17, 2026, 51 TexReg 960."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197459&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197459",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "N",
                "label": "ACCOUNTING POLICIES"
            },
            "rule": {
                "number": "§5.160",
                "label": "Petty Cash Accounts for Travel Advances"
            },
            "nextRule": {
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                "recordId": "197460",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Applicability. This section governs the use of petty cash accounts established under Government Code, Chapter 403, Subchapter K, for the purpose of advancing travel expense money to state officers and employees.(b) Definitions. The following words and terms, when used in this section, have the following meanings, unless the context clearly indicates otherwise.(1) Final accounting--A reimbursement from or additional payment to a state officer or employee so that the net amount received by the officer or employee equals the actual travel expenses incurred by the officer or employee.(2) May not--A prohibition. The term does not mean \"might not\" or its equivalents.(3) Petty cash account--A set amount of money held outside of the state treasury to be used for the purpose of advancing travel expense money to state officers and employees.(4) State agency--Includes:(A) a department, commission, board, office, or other state governmental entity in the executive or legislative branch of state government;(B) the Supreme Court of Texas, the Court of Criminal Appeals of Texas, a court of appeals, the Texas Judicial Council, the Office of Court Administration of the Texas Judicial System, the State Bar of Texas, or any other state governmental entity in the judicial branch of state government;(C) a university system or an institution of higher education as defined by Education Code, §61.003; and(D) any other state governmental entity that the comptroller determines to be a component unit of state government for the purpose of financial reporting under Government Code, §403.013.(5) State officer or employee--An elected or appointed official, or a person employed by a state agency.(c) Prohibited uses. A state agency may not use a petty cash account:(1) to advance more than projected travel expenses to a state officer or employee;(2) to advance travel expense money to a prospective state officer or employee; or(3) for any purpose other than advancing travel expense money to a state officer or employee.(d) Final accounting. A state agency must complete a final accounting of travel expenses after a state officer or employee has incurred travel expenses.(e) Account balance. A petty cash account may not exceed one-twelfth of a state agency's expenditures for travel in the immediately preceding fiscal year, unless approved by the comptroller.",
            "sourceNote": "Source Note: The provisions of this §5.160 adopted to be effective September 5, 1988, 13 TexReg 4136; amended to be effective June 6, 1989, 14 TexReg 2502; amended to be effective October 16, 1989, 14 TexReg 5173; amended to be effective May 21, 1990, 15 TexReg 2639; amended to be effective November 14, 2001, 26 TexReg 9158; amended to be effective October 14, 2004, 29 TexReg 9558; amended to be effective April 13, 2006, 31 TexReg 3059; amended to be effective May 8, 2008, 33 TexReg 3649; amended to be effective March 11, 2013, 38 TexReg 1696; amended to be effective June 22, 2016, 41 TexReg4497; amended to be effective December 25, 2019, 44 TexReg8022."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197460&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197460",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "N",
                "label": "ACCOUNTING POLICIES"
            },
            "rule": {
                "number": "§5.161",
                "label": "General Revenue Fund Reimbursement for Statewide Support Services"
            },
            "nextRule": {
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            "ruleBody": "(a) Applicability. This section governs the reimbursement of the general revenue fund by a state agency for the cost of statewide support services allocated to the state agency under the Statewide Cost Allocation Plan.(b) Definitions. The following words and terms, when used in this section, have the following meanings, unless the context clearly indicates otherwise.(1) SCAW--The Statewide Cost Allocation Worksheet prescribed by the comptroller.(2) State agency--A department, board, commission, or other entity in the executive branch of state government that has statewide jurisdiction and administers a program to provide a service to the public or to regulate persons engaged in an occupation or activity.(3) Statewide Cost Allocation Plan--A plan prepared annually by the office of the governor that identifies the costs of providing statewide support services and allocates those costs to the appropriate state agency.(4) Support services--Include accounting, auditing, budgeting, centralized purchasing, and legal services.(c) Each state agency shall complete a SCAW and email the completed SCAW to the comptroller at the email address and by the date prescribed by the comptroller. If a state agency fails to email the completed SCAW to the email address and by the date prescribed by the comptroller, the comptroller shall distribute the cost of statewide support services owed by the state agency based on the state agency's method of finance for the current fiscal year.(d) A state agency must transfer to the general revenue fund the cost of statewide support services owed by the state agency by transferring the entire amount in one payment or in quarterly payments.(e) The comptroller shall establish a schedule under which the state agency must transfer to the general revenue fund the cost of statewide support services owed by the state agency.(f) After receiving from the comptroller the payment schedule described in subsection (e) of this section, the state agency must transfer to the general revenue fund the cost of statewide support services owed by the state agency in accordance with the payment schedule.",
            "sourceNote": "Source Note: The provisions of this §5.161 adopted to be effective December 25, 2019, 44 TexReg 8022."
        },
        {
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            "currentRecordId": "205196",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "O",
                "label": "UNIFORM STATEWIDE ACCOUNTING SYSTEM"
            },
            "rule": {
                "number": "§5.200",
                "label": "State Property Accounting System"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Annual physical inventory--The annual capitalized and controlled personal property physical inventory count that a state agency must conduct once each fiscal year in accordance with this section.(2) Betterment of state property--An improvement of state property that materially increases its serviceability or useful life, or both.(3) Capital asset--A possession of the state that has an estimated useful life of more than one year.(4) Capital lease--A lease of personal property under which the lessee substantially assumes the risks and benefits of ownership as specified under pronouncements of the Governmental Accounting Standards Board.(5) Capitalized asset--A capital asset that has a value equal to or greater than the capitalization threshold established by the comptroller for that asset type.(6) Comptroller--The Comptroller of Public Accounts for the State of Texas.(7) Controlled asset--An agency asset that the state has determined to be at a high risk for loss; that must be secured and tracked; and that has a value equal to or greater than the cost established by the comptroller. The term does not include a capitalized asset, real property, an improvement to real property, or infrastructure.(8) Fiduciary fund--A fund held by a state agency as trustee of the fund. The term includes pension funds and non-expendable trust funds.(9) Fiscal year--The accounting period for state government, which begins on September 1 and ends on August 31.(10) Include--A term of enlargement and not of limitation or exclusive enumeration. The use of the term does not create a presumption that components not expressed are excluded.(11) Institution of higher education--Has the meaning assigned by Education Code, §61.003(8).(12) Internal state agency--A state agency that uses the SPA system exclusively as its own property accounting system.(13) May not--A prohibition. The term does not mean \"might not\" or its equivalents.(14) Personal property--A capitalized or controlled asset not classified as real property. The term includes trust property.(15) Proprietary fund--A self-supporting fund whose resources are generated through user charges. The term includes enterprise and internal service funds.(16) Real property--Land including structures or other improvements that are embedded into or permanently affixed to the land.(17) Replacement of state property--A replacement of an internal or external part of state property that allows it to complete its normal useful life.(18) Reporting state agency--A state agency that reports information from its own property accounting system to the SPA system.(19) Salvage personal property--Personal property that no longer serves its original purpose because it is depleted, worn out, damaged, consumed, outdated, or obsolete. The term does not include personal property that has a remaining useful life.(20) SPA system--The state property accounting system, which is the fixed asset component of the uniform statewide accounting system.(21) State agency--A state governmental entity that manages, administers, or controls state property.(22) State property--Property possessed by the state. The term includes real property and personal property.(23) Surplus personal property--Personal property in the possession of a state agency that is not currently needed by the agency and is not required for the agency's foreseeable needs. The term does not include salvage personal property.(24) Trust property--Property not owned by the state that a state agency temporarily holds on behalf of the owner and is not used in agency operations.(25) University system--Has the meaning assigned by Education Code, §61.003(10).(26) USAS--The Uniform Statewide Accounting System, which is the integrated financial system of record for the State of Texas financial records.(b) Exemptions.(1) Equipment and supplies purchased through programs, contracts, or grants with the Department of State Health Services.(A) An item of equipment or a supply is exempt from the requirements of this section if it is:(i) used to promote and maintain public health;(ii) purchased by or for a qualified entity; and(iii) purchased through a program, contract, or grant with the Department of State Health Services.(B) The exemption ends if the item of equipment or supply is returned to the Department of State Health Services upon the termination of the applicable program, contract, or grant. When the exemption ends, the formerly exempt item of equipment or supply must be reported to the SPA system in accordance with the comptroller's requirements.(C) A state agency that purchases an exempt item of equipment or a supply shall develop and maintain internal control procedures for keeping a complete and accurate inventory of the items of equipment or supplies exempt under subparagraph (A) of this paragraph.(D) In this paragraph, \"qualified entity\" includes an individual, a corporation, a local unit of government, and a state agency.(2) Items provided to an individual with a disability.(A) A material, tool, book, or other necessary apparatus provided to an individual with a disability by the Health and Human Services Commission or the Texas Workforce Commission for use in providing rehabilitation services to the individual is exempt from the requirements of this section.(B) The Health and Human Services Commission and the Texas Workforce Commission shall each develop and maintain internal control procedures for keeping a complete and accurate inventory of the items that are exempt under subparagraph (A) of this paragraph.(C) An item that no longer qualifies for an exemption under subparagraph (A) of this paragraph must be reported to the SPA system in accordance with the comptroller's requirements.(3) Items provided to clients of state agencies.(A) The comptroller may exempt from the reporting requirements of this section a material, tool, book, or other necessary apparatus if the item is provided to a client by a qualifying state agency.(B) The appropriate state agency shall develop and maintain internal control procedures for keeping a complete and accurate inventory of the items that are exempt under subparagraph (A) of this paragraph.(C) An item that no longer qualifies for an exemption under subparagraph (A) of this paragraph must be reported to the SPA system in accordance with the comptroller's requirements.(4) University system or institution of higher education.(A) Except as provided in this subsection and subsection (l) of this section, a university system or institution of higher education is exempt from the requirements of this section.(B) A university system or institution of higher education shall account for all personal property possessed by the system or institution. At all times, the property records of a university system or institution of higher education must accurately reflect the personal property possessed by the system or institution.(5) Items of state property otherwise exempt by law. An item of state property is exempt from the requirements of this section if it is otherwise exempt by law from the requirements of the SPA system.(c) General responsibilities.(1) Designation, supervision and training of property manager.(A) The head of a state agency shall:(i) designate a property manager for the agency;(ii) inform the comptroller of the designation not later than the 15th day after making the designation by properly completing and submitting the form required by the comptroller;(iii) ensure that the property manager receives training about this section and the SPA system; and(iv) ensure that the property manager properly carries out the property manager's duties as required by this section and applicable law.(B) The property manager may be the head of the state agency or another official or employee of the state agency.(C) The head of a state agency may designate more than one property manager for the agency only if the comptroller approves.(2) Responsibility for custody and care. The head of a state agency is responsible for the custody and care of state property in the agency's possession. This responsibility does not end when a property manager is designated.(3) Change of head of a state agency or property manager. If the head of a state agency or property manager changes, the outgoing head of the state agency or outgoing property manager shall inform the comptroller of the change not later than 15 days after the change occurs by properly completing and submitting the form required by the comptroller.(4) Perpetual inventory. A state agency shall maintain a perpetual inventory.(5) Inventory controls. The head of a state agency shall ensure that the agency maintains adequate inventory controls on state property.(6) Maintaining records. The property manager of a state agency shall maintain the records required by the comptroller, this section, and applicable law.(7) Forms. A state agency shall use the forms prescribed by the comptroller when taking any action authorized or required by this section. The comptroller may adopt and modify forms as the comptroller deems necessary.(8) Use of state property. State property may only be used for state purposes.(d) Certification of internal state agencies and reporting state agencies.(1) General requirement. A state agency must be certified by the comptroller as an internal state agency or a reporting state agency.(2) Request for certification or change of certification initiated by state agency.(A) A state agency that has not been certified or that is requesting a change of certification must properly complete and submit to the comptroller the form required by the comptroller, and obtain the comptroller's approval.(B) The agency must specify on the form whether the agency requests certification as an internal state agency or a reporting state agency.(C) The comptroller shall review the form and consider the agency's ability to comply with this section before determining whether to certify the agency or change the agency's certification.(3) Certification changes initiated by the comptroller. The comptroller may change a state agency's certification any time the comptroller determines the change is needed.(4) Effective date of certification. If the comptroller approves a request for certification or a change of certification under paragraph (2) of this subsection or changes an agency's certification under paragraph (3) of this subsection, the change is effective on the date specified by the comptroller.(e) Records and reporting.(1) Internal state agencies.(A) An internal state agency shall report state property to the SPA system at the time of acquisition. The information must be reported in accordance with the comptroller's requirements.(B) An internal state agency shall maintain its property records on the SPA system in accordance with the comptroller's requirements.(2) Reporting state agencies.(A) A reporting state agency shall report information to the SPA system in accordance with the comptroller's schedules, procedures, and classification system. The comptroller may require a reporting state agency to submit information at any time.(B) A reporting state agency shall maintain its property records in the manner and format required by this section and the comptroller. The agency shall ensure that its property accounting system is always capable of providing the information required by the SPA system and shall modify its property accounting system to comply with the comptroller's reporting requirements, as periodically amended.(C) A reporting state agency shall ensure that it has disaster recovery capability.(3) Tracking of state property.(A) Except as provided in subparagraph (B) of this paragraph, a state agency shall track and report state property on a unit basis.(B) A state agency may track and report library books, library reference materials, e-books, and software on a group basis.(4) Access to the SPA system. An individual may have access to the SPA system only in accordance with the procedures and security limitations prescribed by the comptroller.(f) Valuation of state property.(1) General provision. This subsection governs the valuation of state property as reported to the SPA system.(2) Newly acquired state property. The value of newly acquired state property must be equal to the sum of:(A) the cost of the property; and(B) the costs required to place the property into service.(3) Donated state property.(A) The value of state property acquired through donation must be equal to its fair market value on the date of donation.(B) The fair market value of donated state property must be determined through a reasonable market study.(C) A state agency that conducts a market study shall fully document the methods used to conduct the study. The agency shall maintain the documentation concerning the market study in accordance with the comptroller's requirements.(4) State property constructed by the state. The value of state property constructed by the state must be equal to the total cost of labor and materials in accordance with the comptroller's requirements.(5) Betterments and replacements of state property.(A) A state agency shall determine the value of a betterment or replacement of state property:(i) immediately following the completion of the betterment or replacement; or(ii) at the agency's earliest opportunity as deemed appropriate by the agency and the comptroller.(B) The value of a betterment of state property must be expensed unless the betterment increases the value or useful life of the property by a material amount. If a betterment is not expensed, the value of the property must be increased on the SPA system in accordance with the comptroller's requirements.(C) The value of a replacement of state property is equal to the cost of the replacement less the original cost of the part being replaced. The value of the replacement must be expensed unless the replacement materially increases the value or estimated useful life of the property. If a replacement is not expensed, the value of the property must be increased on the SPA system in accordance with the comptroller's requirements.(D) If a state agency is required to increase the value of state property on the SPA system because of a betterment or replacement, the agency shall maintain documentation that supports the amount of the increase in accordance with the comptroller's requirements.(6) Debt-financed state property.(A) In this paragraph, the total principal of debt-financed state property is equal to the purchase price of the property plus the applicable service charge imposed by the Texas Public Finance Authority.(B) The acquisition cost of debt-financed state property other than constructed items must reflect the total principal of the property and the costs required to place the property into service.(C) The acquisition cost of debt-financed state property that has been constructed should be equal to the total cost of acquiring the property plus the cost of placing the property into service, which includes the principal, interest, finance charges, costs of issuance, and administrative fees.(7) Leased state property.(A) State property that a state agency has leased under a capital lease must be valued in accordance with this paragraph.(B) Subject to subparagraph (C) of this paragraph, the cost of leased state property is equal to the present value of the minimum lease payments plus the cost of placing the property into service. The cost of the property does not include any costs not paid by the agency.(C) The cost of leased state property may not exceed the property's fair market value.(8) Trade-ins. If a state agency is authorized to trade state property for other personal property, the agency must report the trade to the SPA system in accordance with the comptroller's requirements.(g) Accounting practices.(1) Depreciation of state property.(A) The depreciable state property of proprietary and fiduciary funds must be depreciated in accordance with generally accepted accounting principles.(B) Depreciation is calculated and reported on the SPA system. Agencies that calculate depreciation locally must report the depreciation expense at the end of the fiscal year in accordance with the comptroller's schedules and procedures.(C) The amount that state property depreciates over a fiscal year is determined using the straight-line method, which is the historical cost of the property less the residual value of the property, divided by the useful life of the property expressed in months.(D) A state agency shall use the SPA system's default value for the estimated useful life of state property unless the agency documents a different value based on the agency's experience.(2) Transfer of state property between funds. If a state agency transfers state property to another fund, the acquisition cost of the property plus the associated accumulated depreciation as recorded in the new fund must be the same as the cost and the associated accumulated depreciation recorded in the old fund.(3) Reporting and reconciliation of state property inventory balances.(A) A state agency shall report additions, deletions, and adjustments in state property throughout the fiscal year in accordance with the comptroller's requirements.(B) An internal state agency must reconcile the accounting balances in USAS to the supporting financial detail on the SPA system. All adjustments made during the reconciliation must be documented and maintained in accordance with the comptroller's requirements.(C) A reporting state agency must reconcile the accounting balances in USAS and the agency's local property accounting system to the supporting financial detail on the SPA system. All adjustments made during the reconciliation must be documented and maintained in accordance with the comptroller's requirements.(h) Inventory control.(1) Marking of personal property. A state agency shall permanently mark each item of personal property in the agency's possession as property of the State of Texas. The marking is permanent for the purpose of this paragraph if the marking can be removed only through considerable or intentional means. The marking shall be highly visible so that conducting a physical inventory is facilitated.(2) Property inventory numbers.(A) A state agency shall assign a unique property inventory number to each item of state property possessed by the agency. For personal property, the number shall be printed on a label which shall be attached to the item in a highly visible location.(B) A property inventory number may not be reused, even if the appropriate disposal code for the property has been entered into the SPA system.(3) Responsibility for securing and tracking personal property. A state agency is responsible for ensuring that its personal property is tracked and secured in the manner that is most likely to prevent damage to, and the theft, loss, or misuse of, the property.(4) Locating state property.(A) A state agency must know where all of its state property is located at all times.(B) An internal state agency must maintain current location information on the SPA system.(C) A reporting state agency must maintain current location information on the agency's local property accounting system.(i) Annual physical inventory.(1) Timing of annual physical inventory. Except as provided in paragraph (2) of this subsection, a state agency shall conduct an annual physical inventory of the capitalized and controlled personal property in the agency's possession each fiscal year in accordance with the comptroller's schedules and procedures. The agency may choose the date of the inventory.(2) Exemptions.(A) Except as provided in subparagraph (B) of this paragraph, an agency's annual physical inventory is not required to contain an inventory of library books, library reference materials, e-books, software, antiques, artifacts, rare publications, historical books, historical treasures, or historical manuscripts in the agency's possession.(B) Every fifth fiscal year, beginning in fiscal year 2025, an agency's annual physical inventory must contain an inventory of antiques, artifacts, rare publications, historical books, historical treasures, and historical manuscripts in the agency's possession, in accordance with the comptroller's schedules and procedures.(3) Certification. The head of a state agency must certify completion of the agency's annual physical inventory in accordance with the comptroller's schedules and procedures.(4) Updating information. If the results of a state agency's annual physical inventory vary from the information on the SPA system, the agency shall immediately update the information on the SPA system. An agency must maintain documentation in accordance with the comptroller's requirements.(j) Entrusting personal property to other agency officials or employees.(1) Required receipt. A state agency may not entrust personal property in its possession to an agency official or employee, other than the agency's property manager, unless the official or employee provides to the agency's property manager a signed, written, and dated receipt, which includes the statement described in paragraph (2) of this subsection.(2) Statement. The receipts required under paragraph (1) of this subsection and subsection (k)(1) of this section must contain a statement similar to the following: \"I understand that I am financially liable to the state for the disappearance of the personal property if I fail to exercise reasonable care for its safekeeping; the deterioration of the property if I fail to exercise reasonable care to maintain and service it; and the damage or destruction of the property if it occurs because of my negligent or intentional wrongful act.\"(3) Use for other than state purposes. A head of a state agency or property manager may not entrust personal property to a person if the head of the state agency or property manager knows or reasonably should know that the person will use the property for other than state purposes.(k) Loaning personal property to another state agency.(1) Written authorization. A state agency may not loan personal property to another state agency unless the head of the agency lending the property provides written authorization for lending the property and the head of the agency to which the property is lent executes a written receipt, which includes the statement described in subsection (j)(2) of this section.(2) Document the loan. A state agency that loans personal property to another state agency shall document the loan as required by the comptroller.(3) Agency responsibility. A state agency that loans personal property to another state agency does not suspend or eliminate its responsibilities toward the property under this section and applicable law.(l) Transferring state property.(1) Comptroller requirements. A state agency that transfers state property to another state agency or receives state property from another state agency shall comply with the comptroller's requirements.(2) Agency responsibility. State property that is in pending transfer status to another state agency is the responsibility of the transferring state agency until the transfer has been completed in accordance with the comptroller's requirements.(3) Master lease financing program. A state agency may not transfer property purchased through the master lease financing program administered by the Texas Public Finance Authority unless the authority provides advance approval of the transfer in accordance with the authority's requirements.(4) University system or institution of higher education. A university system or institution of higher education is subject to the requirements of this subsection.(m) Lost, destroyed, or damaged personal property.(1) Comptroller requirements. A state agency must enter the appropriate disposal code for lost, destroyed, or damaged personal property into the SPA system in accordance with the comptroller's requirements.(2) Physical inventory. A state agency must include in the agency's annual physical inventory the agency's lost, destroyed, or damaged personal property until the appropriate disposal code for the property has been entered into the SPA system in accordance with the comptroller's requirements.(3) Reporting. If the head of a state agency or property manager has reasonable cause to believe that any property in the agency's possession has been lost, destroyed, or damaged through the negligence of any state official or employee, the head of the agency or property manager shall report the loss, destruction, or damage to:(A) the comptroller immediately by entering the appropriate disposal code into the SPA system; and(B) the attorney general in the manner prescribed by the comptroller not later than the fifth working day after reasonable cause for the belief arises.(n) Stolen personal property.(1) Comptroller requirements. A state agency must enter the appropriate disposal code for stolen personal property into the SPA system in accordance with the comptroller's requirements.(2) Physical inventory. A state agency must include in the agency's annual physical inventory the agency's stolen personal property until the appropriate disposal code for the property has been entered into the SPA system in accordance with the comptroller's requirements.(3) Reporting. If the head of a state agency or property manager has reasonable cause to believe that any property in the agency's possession has been stolen, the head of the agency or property manager shall report the theft to:(A) the comptroller immediately by entering the appropriate disposal code into the SPA system;(B) the attorney general in the manner prescribed by the comptroller not later than the fifth working day after reasonable cause for the belief arises; and(C) the appropriate law enforcement agency not later than the 48th hour after reasonable cause for the belief arises.(o) Surplus and salvage personal property.(1) Compliance with applicable law and rules. A state agency shall comply with Government Code, Chapter 2175, and the rules promulgated by the Texas Facilities Commission when transferring, selling, or disposing of its surplus or salvage personal property.(2) Disposal of surplus or salvage personal property. A state agency shall enter the appropriate disposal code for surplus or salvage personal property into the SPA system in accordance with the comptroller's requirements.(3) Physical inventory. A state agency must include in the agency's annual physical inventory the agency's salvage or surplus personal property until the appropriate disposal code for the property has been entered into the SPA system in accordance with the comptroller's requirements.(p) Real property. In addition to other requirements set forth in this section, a state agency must submit information about real property to the General Land Office.(q) Abolished state agencies.(1) Application of this subsection. This subsection applies to an abolished state agency only to the extent this section is consistent with the law that abolishes the agency.(2) Responsibilities of the head of an abolished state agency.(A) The head of an abolished state agency shall:(i) conduct a complete and accurate physical inventory of the agency's state property in accordance with the comptroller's requirements;(ii) furnish a copy of the inventory to the appropriate governmental entity designated to take custody of the agency's state property not later than the date prescribed by the legislature or, if the legislature did not prescribe a date, the effective date of the abolition of the state agency; and(iii) transfer all state property of the agency to the appropriate governmental entity designated to take custody of the agency's state property.(B) The physical inventory required by subparagraph (A)(i) of this paragraph is in addition to the annual physical inventory required by subsection (i) of this section.(r) Conflict with federal laws or regulations. If a federal law or regulation conflicts with this section, the federal law or regulation prevails over this section to the extent necessary to avoid the conflict.",
            "sourceNote": "Source Note: The provisions of this §5.200 adopted to be effective June 2, 2021, 46 TexReg 3418."
        },
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            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
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            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
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            "subchapter": {
                "number": "O",
                "label": "UNIFORM STATEWIDE ACCOUNTING SYSTEM"
            },
            "rule": {
                "number": "§5.205",
                "label": "Disposal of Computer Equipment by Charitable Organization"
            },
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                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Applicability. This section applies only to computer equipment that a charitable organization:(1) purchased for a price of at least $500 using funds received from the state, whether by appropriation, grant, or otherwise; and(2) disposes of under Government Code, §2175.907.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Charitable organization--Has the meaning assigned by Government Code, §2175.907(2).(2) Computer equipment--Has the meaning assigned by Government Code, §2175.907(1).(c) Requirements. A charitable organization that disposes of computer equipment purchased with state funds within the four-year period after the date of purchase by selling or trading of the computer equipment, disposing of the computer equipment that is not operational, or donating the computer equipment to another charitable organization, under Government Code, §2175.907:(1) must comply with any requirements regarding the disposition or donation of items purchased with state funds that are prescribed by the governmental entity that provided the state funds to the charitable organization, except to the extent the requirements are in conflict with the provisions of Government Code, §2175.907; and(2) must keep a record of the manner in which the computer equipment was disposed or donated, including:(A) a written description of the computer equipment;(B) a written description of the method used to dispose of or donate the computer equipment; and(C) any receipts or transfer documents.(d) Retention period. The record described in subsection (c)(2) of this section must be maintained by the charitable organization until the later of:(1) the fourth anniversary of the date the organization purchased the computer equipment; or(2) the expiration of the retention period prescribed by the governmental entity that provided the state funds to the charitable organization.",
            "sourceNote": "Source Note: The provisions of this §5.205 adopted to be effective June 2, 2021, 46 TexReg 3418."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227557&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227557",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "O",
                "label": "UNIFORM STATEWIDE ACCOUNTING SYSTEM"
            },
            "rule": {
                "number": "§5.210",
                "label": "Uniform Statewide Accounting System"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=134649&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "134649",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Purpose. The purpose of this section is to allow the comptroller to administer, maintain, modify and operate the uniform statewide accounting system, including any required component systems, to serve as the financial system of record for the State of Texas. The uniform statewide accounting system includes each component designated by the comptroller. The comptroller may require state agencies to use any or all components of the uniform statewide accounting system as their internal system or may allow agencies to report required information from existing individual systems that conform to reporting and calculation requirements specified by the comptroller.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) HRIS--The Human Resource Information System, which is the higher education reporting system and a component of the uniform statewide accounting system. HRIS is the system to which the institutions of higher education must report information in the format and by the timeframes required by the comptroller.(2) Individual Accounting and/or Payroll System--A system that supplements USAS by offering enhanced functionality to support agency operations, including the collection of additional accounting detail or the support of workflow functionality. This system typically interfaces with USAS.(3) SPA--The Statewide Property Accounting system, which is the personal property fixed asset component of the uniform statewide accounting system.(4) SPRS--The Standardized Payroll/Personnel Reporting System, which is a component of the uniform statewide accounting system. SPRS is the system maintained by the comptroller as the reporting data base that state agencies utilize to report required information in the format and by the timeframes required by the comptroller.(5) State agency--Has the meaning assigned by Government Code, §403.013(a), but does not include public junior colleges or community colleges.(6) State funds--Funds of the state held by state agencies regardless of whether or not such funds are inside or outside of the State Treasury.(7) TINS--The Texas Identification Number System, which is a component of the uniform statewide accounting system. TINS is used to track payees paid through USAS and records the payments.(8) USAS--The Uniform Statewide Accounting System, which is the integrated financial system of record for the State of Texas financial records.(c) The comptroller shall be responsible for the administration, maintenance, and operation of the Uniform Statewide Accounting System that it has previously implemented through HRIS, SPA, SPRS, TINS, and USAS as follows:(1) The comptroller shall notify state agencies of the requirements of the USAS components and provide user guides, manuals, and policy statements accessible on the comptroller's website.(2) The comptroller shall assist and consult with state agencies in the implementation and use of the USAS components in reporting to the comptroller.(3) The comptroller shall be available for discussions or meetings with state agencies to explain and assist with use and implementation of USAS components as well as to provide training.(4) The comptroller may require reports from state agencies regarding implementation of USAS components.(5) The comptroller may require state agencies to stop, delay, or modify implementation of individual accounting and/or payroll systems to ensure that those systems are compatible with USAS.(6) The comptroller may require state agencies to replace individual accounting and/or payroll systems to ensure that those systems are compatible with USAS.(7) Any expenditure of state funds by state agencies for the establishment, modification, or maintenance of an individual accounting and/or payroll system must be in compliance with rules, user guides, manuals and policy statements issued by the comptroller, regarding the development, implementation or use of USAS.(8) State agencies may use centralized computer systems other than USAS but such agencies must comply with the comptroller's rule on enterprise resource planning in §5.300 of this title (referring to Monitoring and Implementation of Enterprise Resource Planning Systems) and must follow interoperability standards contained in the comptroller's user guides, manuals, and policy statements available on the comptroller's website.",
            "sourceNote": "Source Note: The provisions of this §5.210 adopted\r\nto be effective January 8, 2008, 33 TexReg 271; amended to be effective\r\nJuly 17, 2018, 43 TexReg 4763; amended to be effective February 17,\r\n2026, 51 TexReg 961."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=134649&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "134649",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "P",
                "label": "ENTERPRISE RESOURCE PLANNING"
            },
            "rule": {
                "number": "§5.300",
                "label": "Monitoring and Implementation of Enterprise Resource Planning Systems"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182479&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182479",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The purpose of this section is to provide a procedure for the comptroller to monitor compatibility of individual accounting and payroll systems for compliance with the Uniform Statewide Accounting System including enterprise resource planning components and compliance.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) \"State agency\" means a department, commission, board, office, council, authority, or other agency in the executive or judicial branch of state government that is created by the constitution or a statute of this state, including a university system or institution of higher education as defined by Education Code, §61.003, other than a public junior college or community college.(2) \"State funds\" means funds of the state held by state agencies regardless of whether or not such funds are inside or outside of the State Treasury.(3) \"Enterprise resource planning\" means and includes the administration of a state agency's general ledger, accounts payable, accounts receivable, budgeting, inventory, asset management, billing, payroll, projects, grants: administration of human resources, including administration of performance measures, time spent on tasks, and other personnel and labor issues; and administration of procurement.(4) \"Uniform Statewide Accounting Project\" has the meaning assigned by Government Code, Chapter 2101, and includes the components of the Uniform Statewide Accounting System as previously promulgated and adopted by the comptroller.(5) \"Project director\" means the person appointed by the comptroller pursuant to Government Code, Chapter 2101, to administer the Uniform Statewide Accounting Project.(6) \"Implementation\" means the upgrade of software versions or the addition of new modules or functionality to software or systems(7) \"System\" means an internal enterprise resource planning, accounting or payroll system used by a state agency.(c) In order to ensure the Uniform Statewide Accounting Project includes enterprise resource planning the comptroller shall engage in the procedures that follow in this subsection.(1) Each state agency implementing individual systems shall submit information to the project director describing and detailing the project so as to allow the project manager to coordinate and consult with the submitting agency.(2) After reviewing the information provided in paragraph (1) of this subsection, the project director may reasonably request the submitting state agency to provide additional information describing and detailing the project to allow the project director to fully understand the project and to aid in coordination and consultation on the project.",
            "sourceNote": "Source Note: The provisions of this §5.300 adopted to be effective January 8, 2008, 33 TexReg 271."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182479&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182479",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "P",
                "label": "ENTERPRISE RESOURCE PLANNING"
            },
            "rule": {
                "number": "§5.302",
                "label": "State Agency Reporting of Contracting Information"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210829&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "210829",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) State agency--Has the meaning assigned by Government Code, §403.013(a) but does not include public junior colleges or community colleges.(2) CAPPS--The centralized accounting and payroll personnel system, or any successor system used to implement the enterprise resource planning component of the uniform statewide accounting project, developed under Government Code, §2101.035 and §2101.036.(b) A state agency using CAPPS shall provide to the comptroller the following contract and purchasing information for each contract entered into by the state agency:(1) a brief summary of each contract that is quickly and easily searchable, including the contract's purpose, timeline, and deliverables;(2) contract planning and solicitation documents;(3) the criteria used to determine the vendor awarded the contract;(4) if the contract was awarded based on best value to the state:(A) a list of the factors considered in determining best value with the weight given each factor; and(B) a statement regarding how the vendor awarded the contract provides the best value to the state in relation to other vendors who bid or otherwise responded to the contract solicitation;(5) any statements of work and work orders prepared for or under the contract;(6) the proposed budget for the contract;(7) any conflict of interest documents signed by state agency purchasing personnel participating in the planning, soliciting, or monitoring of the contract;(8) criteria used or to be used by the state agency in monitoring the contract and vendor performance under the contract;(9) a justification for each change order, contract amendment, contract renewal or extension, or other proposed action that would result in an increase in the monetary value of a contract with an initial value exceeding $10 million;(10) additional supporting documentation and justification for a change order, contract amendment, contract renewal or extension, or other proposed action of a contract described by paragraph (9) of this subsection that would result in an increase in the contract's monetary value by more than 20%; and(11) any additional contract and purchasing information required by the comptroller.(c) The information required under subsection (b) of this section shall be provided to the comptroller:(1) using CAPPS; and(2) in accordance with these rules and comptroller policies and procedures.",
            "sourceNote": "Source Note: The provisions of this §5.302 adopted to be effective January 24, 2017, 42 TexReg 224."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210829&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "210829",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "Q",
                "label": "PRINTING AND ISSUANCE OF WARRANTS"
            },
            "rule": {
                "number": "§5.400",
                "label": "Printing and Issuance of Warrants"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193699&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "193699",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Applicability. This rule governs the comptroller's delegation of the authority to print and issue warrants under Government Code, §403.060(a).(b) Definitions. The following words and terms, when used in this subchapter, shall have the following meanings.(1) Electronic Funds Transfer (EFT)--A transfer of funds which is initiated by the participating state agency as originator to the originating depository financial institution to order, instruct, or authorize a receiving depository financial institution to perform a credit entry, reversal, or reclamation. An EFT may include a pay card. For purposes of this rule, an EFT does not include a transaction originated by wire transfer, check, draft, warrant, or other paper instrument.(2) MOU--Memorandum of Understanding.(3) National Automated Clearing House Association (NACHA)--The electronic payments association that establishes standards, rules, and procedures that enable domestic financial institutions to exchange payments electronically.(4) Participating state agency--A state agency that has requested and received from the comptroller the delegated authority to print and issue warrants.(5) Pay card--A payment card issued to a state payee that provides access to state funds as authorized by a state agency.(6) Payment method--A warrant or an EFT payment.(7) Regulation E--The regulations adopted by the Board of Governors of the Federal Reserve System at 12 C.F.R. Part 205, as they may be amended, to implement the Electronic Fund Transfer Act (15 U.S.C. §1693 et seq. ).(8) State agency--(A) a department, commission, board, office, or other agency in the executive or legislative branch of state government that is created by the constitution or a statute of this state, including the comptroller of public accounts;(B) the supreme court of Texas, the court of criminal appeals, a court of appeals, or a state judicial agency; or(C) a university system or an institution of higher education as defined by Education Code, §61.003, other than a public junior college.(9) State payee--A person to whom a state payment is issued, including an individual, state employee, annuitant, business, vendor, governmental entity, or other legal recipient paid by the state of Texas.(10) Warrant--A state payment in the form of a paper instrument which is subject to applicable state law, is drawn on the state of Texas treasury funds, and is payable to a state payee on behalf of a state agency by the comptroller or a state agency with delegated authority to print and issue warrants under Government Code, §403.060(a). A warrant is not an approved means of EFT.(c) Delegating the printing and issuance of warrants to a state agency. The head of a state agency must submit a written request to the comptroller's office to obtain delegated authority to print and issue warrants. The request must:(1) identify the type of payments the agency is requesting to print and issue warrants for;(2) identify the payment method the agency intends to use; and(3) state the duration requested for the delegation authority.(d) If the request is approved by the comptroller's office, the participating state agency shall agree to the following:(1) the participating state agency agrees to bear all of its own costs and expenses in relation to the printing and distribution of warrants and/or EFT payments; and(2) must agree to a MOU that includes, but is not limited to:(A) general duties and responsibilities of the participating state agency;(B) warrant design requirements and specifications;(C) security and audit of warrants and/or EFT payments;(D) recording of warrants and/or EFT payments issued by the participating state agency;(E) cancellation of warrants and/or EFT payments issued by the participating state agency;(F) replacement of warrants and/or EFT payments issued by the participating state agency;(G) contingency planning for printing and issuance of warrants and/or EFT payments; and(H) EFT payments.(e) EFT payments.(1) A participating state agency that is delegated authority by the comptroller to print and issue warrants may instead make payments through the EFT system, including the issuance of a pay card, as provided by Government Code, §403.016(g).(2) A participating state agency that makes payments through the EFT system shall comply with Regulation E and all NACHA rules and regulations.",
            "sourceNote": "Source Note: The provisions of this §5.400 adopted to be effective August 23, 2018, 43 TexReg 5388; amended to be effective November 14, 2022, 47 TexReg 7559."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193699&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "193699",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "R",
                "label": "JUDICIARY DEPARTMENT PROCEDURES"
            },
            "rule": {
                "number": "§5.450",
                "label": "Salary Affidavits: District Attorneys, Criminal District Attorneys, and State Paid County Attorneys"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193700&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "193700",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) To receive a salary payment from the comptroller, a salary affidavit must be completed by all the district, criminal district, and county attorneys paid with state appropriations stating:(1) the amount received from sources other than state appropriated funds; and(2) the authority by which those funds are received. The salary affidavit must be signed by the district, criminal district, or county attorney before a notary public.(b) Time for filing.(1) Those district, criminal district or county attorneys appointed during the fiscal year must file with the comptroller a completed salary affidavit prior to receiving a salary payment.(2) Those district, criminal district, or county attorneys holding office at the beginning of the fiscal year or biennium must file with the comptroller a completed affidavit prior to the end of the first pay period in the new fiscal year.(3) Each district, criminal district, or county attorney whose supplemental salary amount is changed in any way must file with the comptroller a revised salary affidavit prior to the end of the first pay period in the new fiscal year.(c) Failure to submit the required affidavits will result in no salary payment being issued until receipt by the comptroller's office of a completed affidavit.(d) Upon receipt of a completed salary affidavit, a copy of the affidavit will be forwarded by the comptroller's office to the secretary of state for filing.",
            "sourceNote": "Source Note: The provisions of this §5.450 adopted to be effective December 25, 2018, 43 TexReg 8478."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193700&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "193700",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "R",
                "label": "JUDICIARY DEPARTMENT PROCEDURES"
            },
            "rule": {
                "number": "§5.451",
                "label": "Salary Affidavits: District Judges, Criminal District Judges and Judges of Courts of Appeals"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193701&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "193701",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) To receive a salary payment from the comptroller, a salary affidavit must be completed by all the district judges, criminal district judges, and judges of courts of appeals paid with state appropriations stating:(1) the amount received from sources other than appropriated funds; and(2) the authority by which those funds are received. The salary affidavit must be signed and notarized by the judge.(b) Time for filing.(1) Those judges appointed during the fiscal year must file with the comptroller a completed salary affidavit prior to the end of the first pay period.(2) Those judges holding office at the beginning of the fiscal year or biennium must file with the comptroller a completed affidavit prior to the end of the first pay period in the new fiscal year.(3) Each judge whose supplemental salary amount is changed in any way must file with the comptroller a revised salary affidavit prior to the end of the pay period in which the supplemental salary is altered.(c) Failure to submit the required affidavits will result in a salary payment not being issued until receipt by the comptroller's office of a completed affidavit.(d) Upon receipt of a completed salary affidavit, a copy of the affidavit will be forwarded by the comptroller's office to the secretary of state for filing.",
            "sourceNote": "Source Note: The provisions of this §5.451 adopted to be effective December 25, 2018, 43 TexReg 8478."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193701&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "193701",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "R",
                "label": "JUDICIARY DEPARTMENT PROCEDURES"
            },
            "rule": {
                "number": "§5.452",
                "label": "Claims for Additional Compensation for Active, Retired, and Former District Judges"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193702&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "193702",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The following information must be furnished by an active, retired, or former district judge making a claim for additional compensation prior to payment being made:(1) the claimant's name and county of residence;(2) the district court and county in which court was held;(3) the judge making the assignment; and(4) the number of days and dates which court was held.(b) The information set forth in subsection (a) of this section, must be sworn to by the claimant before a notary public.(c) The claim must have the approval of the presiding judge of the claimant's administrative judicial district, where required by law.(d) To receive compensation for holding court outside the county of residence and/or district, all active, retired, and former district judges must submit a claim in accordance with Government Code, §74.061.(e) Failure to submit a claim will result in no payment for compensation being issued.",
            "sourceNote": "Source Note: The provisions of this §5.452 adopted to be effective December 25, 2018, 43 TexReg 8478."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193702&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "193702",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "R",
                "label": "JUDICIARY DEPARTMENT PROCEDURES"
            },
            "rule": {
                "number": "§5.453",
                "label": "Travel and Expense Accounts of District Judges and District Attorneys"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193697&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "193697",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The following information must be furnished by a district judge or district attorney making a travel or expense claim prior to payment being made:(1) the claimant's name, address, title, and designated headquarters;(2) the dates covered by the claim;(3) the amount of fares for public transportation, with attached receipts;(4) the number of miles personally driven by the claimant;(5) the amount of postage expense, if any;(6) the amount of telephone expense, if any;(7) a breakdown of the meals and lodging expense for each day; and(8) a statement delineating the purpose of each trip.(b) The information in subsection (a) of this section must be sworn to as to accuracy and correctness before a notary public.(c) District judges are not permitted expenses outside their judicial district except on assignment.(d) Allowances for the actual and necessary postage and telephone expenses incurred by district judges and district attorneys will be granted only if such expenses are incurred in the discharge of their official duties within their judicial district.(e) If the claim presented exceeds the maximum amount appropriated by the legislature in the current appropriations act, the claim will be reduced and a payment for the reduced amount will be issued.",
            "sourceNote": "Source Note: The provisions of this §5.453 adopted to be effective December 25, 2018, 43 TexReg 8478."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193697&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "193697",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "R",
                "label": "JUDICIARY DEPARTMENT PROCEDURES"
            },
            "rule": {
                "number": "§5.454",
                "label": "Witness Fees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193698&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "193698",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The following information is required for claim processing:(1) The witness must submit the following information to the comptroller for a payment to be issued:(A) offense charged. If a misdemeanor, it must be noted if the misdemeanor carries, as a possible punishment, a jail sentence;(B) the witness's name and address including city, county, state, and social security number;(C) the city/town in which the witness was subpoenaed, requested, or summoned;(D) the county issuing the request, subpoena, or summons;(E) the number of trips made pursuant to the subpoena, request, or summons;(F) the number of miles driven in the witness's personal car, if any;(G) the actual expenses incurred for public transportation, if any;(H) a breakdown of the actual expenses for meals and lodging per day;(I) the amount advanced to the witness by the district or criminal district attorney, the county, or sheriff;(J) whether or not the witness is under bond;(K) the existence of an affidavit by the witness of witness's inability to appear due to lack of funds;(L) whether or not the witness testified in the case; and(M) the number of years lived in county of residence.(2) The witness must swear before a notary public that the information is correct and true.(3) The judge of the case and the district or county clerk must indicate that the claim of the witness is correct and due, and note the date that the witness was released from further attendance upon court.(b) Witness fee bills become due and payable after the witness is released from further court attendance.(c) Failure to submit a witness fee bill within 12 months from the release of the witness will result in the barring of the claim forever.",
            "sourceNote": "Source Note: The provisions of this §5.454 adopted to be effective December 25, 2018, 43 TexReg 8478."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=193698&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "193698",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "R",
                "label": "JUDICIARY DEPARTMENT PROCEDURES"
            },
            "rule": {
                "number": "§5.455",
                "label": "Payroll Procedures: District Judges, Criminal District Judges, District Attorneys, and Criminal District Attorneys"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=218584&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "218584",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) General. All newly elected or appointed judges and attorneys must file with the comptroller's office an IRS Form W4 indicating their social security number, marital status, and number of exemptions claimed prior to receiving their first payment.(b) Date placed on state payroll. If the legislature is in regular session, the newly appointed judge is placed on the payroll the day the judge's appointment is confirmed by a two-thirds vote of the senate or the day the judge takes the oath of office, whichever is later. If the legislature is not in session, the newly appointed judge is placed on the payroll on the day the judge took the oath of office. Each newly elected or appointed attorney must indicate to the comptroller's office the date the oath of office was taken and the attorney will be placed on the payroll as of that date.(c) Judge's retirement, resignation, or acceptance of another office. When a judge or attorney retires, resigns, or accepts another office, the judge or attorney must notify the comptroller's office.",
            "sourceNote": "Source Note: The provisions of this §5.455 adopted to be effective December 25, 2018, 43 TexReg 8478."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=218584&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "218584",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "5",
                "label": "FUNDS MANAGEMENT (FISCAL AFFAIRS)"
            },
            "subchapter": {
                "number": "S",
                "label": "NEXT GENERATION 9-1-1 SERVICE FUND"
            },
            "rule": {
                "number": "§5.480",
                "label": "Next Generation 9-1-1 Service Fund"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=107318&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "107318",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commission--The Commission on State Emergency Communications.(2) Comptroller--The Comptroller of Public Accounts for the State of Texas.(3) Coronavirus funds--Coronavirus State and Local Fiscal Recovery Funds under American Rescue Plan Act of 2021 (Pub. L. No. 117-2), §9901.(4) Emergency communication district--Has the meaning assigned by Health and Safety Code, §771.001(3).(5) Fund--The Next Generation 9-1-1 Service Fund established under Health and Safety Code, §771.0713.(6) Next generation 9-1-1 service--Has the meaning assigned by 47 U.S.C. §942.(b) Transfer of money to the fund.(1) Notwithstanding any other law and except as provided by federal law, the comptroller shall transfer to the credit of the fund as authorized by the legislature any amount available from federal money provided to this state from the Coronavirus funds or from any other state or federal governmental source for purposes of Health and Safety Code, Chapter 771, including money appropriated or otherwise credited to the fund.(2) The comptroller shall transfer the money as soon as practicable following:(A) the receipt by this state of a sufficient amount of federal money for the transfer; or(B) the effective date of the most recent legislative appropriation for purposes of Health and Safety Code, Chapter 771.(c) Administration, distribution, and use.(1) The commission shall administer the fund.(2) The commission shall distribute all money deposited to the credit of the fund from the Coronavirus funds, including any interest earned on money deposited to the credit of the fund from the Coronavirus funds, by August 31, 2024. This paragraph does not apply to the distribution of money deposited to the credit of the fund from any other state or federal governmental source for purposes of Health and Safety Code, Chapter 771, including money appropriated or otherwise credited to the fund.(3) Money deposited to the credit of the fund:(A) may be used only for the purpose of supporting the deployment and reliable operation of next generation 9-1-1 service, including the costs of equipment, operations, and administration;(B) may be distributed to only the commission and emergency communication districts as provided in Health and Safety Code, §771.0713(c), (c-1), (c-2), and (c-3); and(C) must be used in a manner that complies with state and federal law, including the requirements of Health and Safety Code, §771.0713.(4) All money distributed under paragraph (2) of this subsection must be spent by December 31, 2026.",
            "sourceNote": "Source Note: The provisions of this §5.480 adopted to be effective October 25, 2021, 46 TexReg 7223; amended to be effective June 3, 2024, 49 TexReg 3928."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=107318&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "107318",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "6",
                "label": "INVESTMENT MANAGEMENT"
            },
            "subchapter": {
                "number": "A",
                "label": "STANDARDS OF CONDUCT FOR FINANCIAL ADVISORS"
            },
            "rule": {
                "number": "§6.1",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=107319&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "107319",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Comptroller--The Office of the Comptroller of Public Accounts of the State of Texas, and any division or entity within the Office of the Comptroller or managed by the comptroller.(2) Financial advisor or service provider--Includes a person or business entity who acts as a financial advisor, financial consultant, money manager, investment manager, or broker.",
            "sourceNote": "Source Note: The provisions of this §6.1 adopted to be effective February 3, 2004, 29 TexReg 1014."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=107319&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "107319",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "6",
                "label": "INVESTMENT MANAGEMENT"
            },
            "subchapter": {
                "number": "A",
                "label": "STANDARDS OF CONDUCT FOR FINANCIAL ADVISORS"
            },
            "rule": {
                "number": "§6.2",
                "label": "Applicability"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=107320&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "107320",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) This subchapter applies in connection with the management or investment of any state funds managed or invested by the comptroller under the Texas Constitution or other law, including Government Code, Chapters 404 and 2256, without regard to whether the funds are held in the state treasury.(b) This subchapter applies to financial advisors or service providers who are not employees of the comptroller, who provide financial services to, or advise the comptroller in connection with the management or investment of state funds, and who:(1) may reasonably be expected to receive, directly or indirectly, more than $10,000 in compensation from the comptroller during a fiscal year; or(2) render important investment or funds management advice to the comptroller.(c) The standards adopted in this subchapter are intended to identify professional and ethical standards by which all financial advisors or service providers must abide in addition to the professional and ethical standards that may already be imposed on financial advisors or service providers under any contracts or service agreements with the comptroller.",
            "sourceNote": "Source Note: The provisions of this §6.2 adopted to be effective February 3, 2004, 29 TexReg 1014."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=107320&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "107320",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "6",
                "label": "INVESTMENT MANAGEMENT"
            },
            "subchapter": {
                "number": "A",
                "label": "STANDARDS OF CONDUCT FOR FINANCIAL ADVISORS"
            },
            "rule": {
                "number": "§6.3",
                "label": "Disclosure Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=107321&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "107321",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A financial advisor or service provider shall disclose in writing to the comptroller and to the state auditor:(1) any relationship the financial advisor has with any party to a transaction with the comptroller, other than a relationship necessary to the investment or fund management services that the financial advisor performs for the comptroller, if the relationship could reasonably be expected to diminish the financial advisor's independence of judgment in the performance of the person's responsibilities to the comptroller; and(2) all direct or indirect pecuniary interests the financial advisor has in any party to a transaction with the comptroller, if the transaction is connected with any financial advice or service the financial advisor provides to the comptroller in connection with the management or investment of state funds.(b) The financial advisor or service provider shall disclose a relationship described by subsection (a) without regard to whether the relationship is a direct, indirect, personal, private, commercial, or business relationship.(c) A financial advisor or service provider shall file annually a statement with the comptroller and with the state auditor. The statement must disclose each relationship and pecuniary interest described by subsection (a) or, if no relationship or pecuniary interest described by that subsection existed during the disclosure period, the statement must affirmatively state that fact.(d) The annual statement must be filed not later than April 15 on a form prescribed by the comptroller. The statement must cover the reporting period of the previous calendar year.(e) The financial advisor or service provider shall promptly file a new or amended statement with the comptroller and with the state auditor whenever there is new information to report under subsection (a).",
            "sourceNote": "Source Note: The provisions of this §6.3 adopted to be effective February 3, 2004, 29 TexReg 1014."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=107321&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "107321",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "6",
                "label": "INVESTMENT MANAGEMENT"
            },
            "subchapter": {
                "number": "A",
                "label": "STANDARDS OF CONDUCT FOR FINANCIAL ADVISORS"
            },
            "rule": {
                "number": "§6.4",
                "label": "Standards of Conduct"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=107322&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "107322",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Compliance.(1) These standards are intended to be in addition to, and not in lieu of, a financial advisor's or service provider's obligations under its contract or service agreement with the comptroller. In the event of a conflict between a financial advisor's obligations under these standards and under its contract or services agreement, the standard that imposes a stricter ethics or disclosure requirement controls.(2) A financial advisor or service provider shall be knowledgeable about these standards, keep current with revisions to these standards, and abide by the provisions set forth in these standards.(3) In all professional activities a financial advisor or service provider shall perform services in accordance with applicable laws, rules and regulations of governmental agencies and other applicable authorities, including the comptroller, and in accordance with any established policies of the comptroller.(b) Qualification Standards.(1) A financial advisor or service provider shall render opinions or advice, or perform professional services only in those areas in which the financial advisor has competence based on education, training or experience. In areas where a financial advisor is not qualified, the financial advisor shall seek the counsel of qualified individuals and/or refer the comptroller to such persons.(2) A financial advisor or service provider shall keep informed of developments in the field of financial planning and investments and participate in continuing education throughout the financial advisor's relationship with the comptroller in order to improve professional competence in all areas in which the financial advisor is engaged.(c) Integrity.(1) A financial advisor or service provider has an obligation to observe standards of professional conduct in the course of providing advice, recommendations and other services performed for the comptroller. A financial advisor shall perform professional services with honesty, integrity, skill, and care. In the course of professional activities, a financial advisor shall not engage in conduct involving dishonesty, fraud, deceit or misrepresentation, or knowingly make a false or misleading statement to a client, employer, employee, professional colleague, governmental, or other regulatory body or official, or any other person or entity.(2) A financial advisor or service provider's relationship with a third party shall not be used to obtain illegal or improper treatment from such third party on behalf of the comptroller.(d) Objectivity. A financial advisor or service provider will maintain objectivity and be free of conflicts of interest in discharging its responsibilities. A financial advisor will remain independent in fact and appearance when providing financial planning and investment advisory services to the comptroller.(e) Prudence. A financial advisor or service provider shall exercise reasonable and prudent professional judgment in providing professional services to the comptroller.(f) Competence. A financial advisor or service provider shall strive to continually improve its competence and the quality of services, and discharge its responsibilities to the best of its ability.(g) Conflicts of Interest.(1) If a financial advisor or service provider is aware of any significant conflict between the interests of the comptroller and the interests of another person, the financial advisor shall advise the comptroller of the conflict and shall also include appropriate qualifications or disclosures in any related communication.(2) A financial advisor or service provider shall not perform professional services involving an actual or potential conflict of interest with the comptroller unless the financial advisor's ability to act fairly is unimpaired, there has been full disclosure of the conflict to the comptroller, and the comptroller has expressly agreed in writing to the performance of the services by the financial advisor.(h) Confidentiality.(1) A financial advisor or service provider shall not disclose to another person any confidential information obtained from the comptroller or regarding the comptroller's investments unless authorized to do so by the comptroller in writing or required to do so by law.(2) For the purposes of this section, \"confidential information\" refers to information not in the public domain of which the financial advisor or service provider becomes aware during the course of rendering professional services to the comptroller. It may include information of a proprietary nature, information that is excepted from disclosure under the Public Information Act, Government Code, Chapter 552, or information restricted from disclosure under any contract or service agreement with the comptroller.",
            "sourceNote": "Source Note: The provisions of this §6.4 adopted to be effective February 3, 2004, 29 TexReg 1014."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=107322&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "107322",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "6",
                "label": "INVESTMENT MANAGEMENT"
            },
            "subchapter": {
                "number": "A",
                "label": "STANDARDS OF CONDUCT FOR FINANCIAL ADVISORS"
            },
            "rule": {
                "number": "§6.5",
                "label": "Contract Voidable"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227111&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227111",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A contract under which a financial advisor or service provider renders financial services or advice to the comptroller is voidable by the comptroller if the financial advisor violates a standard of conduct outlined in this subchapter.",
            "sourceNote": "Source Note: The provisions of this §6.5 adopted to be effective February 3, 2004, 29 TexReg 1014."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227111&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227111",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "6",
                "label": "INVESTMENT MANAGEMENT"
            },
            "subchapter": {
                "number": "B",
                "label": "STANDARDS FOR MEMBERS OF THE COMPTROLLER'S  INVESTMENT ADVISORY BOARD"
            },
            "rule": {
                "number": "§6.10",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227112&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227112",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. (1) Advisory Board--The comptroller's investment advisory board, established pursuant to Government Code, §404.028. (2) Comptroller--The Texas Comptroller of Public Accounts. (3) Trust Company--The Texas Treasury Safekeeping Trust Company, established pursuant to Government Code, Chapter 404, Subchapter G.",
            "sourceNote": "Source Note: The provisions of this §6.10 adopted to\r\nbe effective December 30, 2025, 50 TexReg 8615."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227112&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227112",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "6",
                "label": "INVESTMENT MANAGEMENT"
            },
            "subchapter": {
                "number": "B",
                "label": "STANDARDS FOR MEMBERS OF THE COMPTROLLER'S  INVESTMENT ADVISORY BOARD"
            },
            "rule": {
                "number": "§6.11",
                "label": "Advisory Capacity"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227113&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227113",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The advisory board serves only in an advisory capacity and is not a fiduciary with respect to the assets held by the comptroller or the trust company.",
            "sourceNote": "Source Note: The provisions of this §6.11 adopted to be\r\neffective December 30, 2025, 50 TexReg 8615."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227113&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227113",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "6",
                "label": "INVESTMENT MANAGEMENT"
            },
            "subchapter": {
                "number": "B",
                "label": "STANDARDS FOR MEMBERS OF THE COMPTROLLER'S  INVESTMENT ADVISORY BOARD"
            },
            "rule": {
                "number": "§6.12",
                "label": "Advisory Board Member Duties"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227114&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227114",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The advisory board will advise the comptroller and the trust company with respect to state assets held and invested pursuant to Government Code, Chapter 404, and other laws. (b) The advisory board will advise, assist, consult with, and make recommendations to the comptroller, with respect to the investment activities carried out by and through the trust company and policies respecting these activities. (c) The advisory board is also responsible for: (1) advising the trust company's chief executive officer and/or chief investment officer; (2) reviewing investment management strategies, asset allocation policies, and investment performance; (3) providing advice regarding prudent investment management practices; (4) providing advice regarding the integrity of the investment management process; (5) reviewing results of required financial audits; and(6) advising the comptroller with respect to trust company staffing and compensation matters.",
            "sourceNote": "Source Note: The provisions of this §6.12 adopted to\r\nbe effective December 30, 2025, 50 TexReg 8615."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227114&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227114",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "6",
                "label": "INVESTMENT MANAGEMENT"
            },
            "subchapter": {
                "number": "B",
                "label": "STANDARDS FOR MEMBERS OF THE COMPTROLLER'S  INVESTMENT ADVISORY BOARD"
            },
            "rule": {
                "number": "§6.13",
                "label": "Advisory Board Composition"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227115&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227115",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The advisory board is composed of seven members who must possess the expertise appropriate for advising the comptroller with regard to one or more types of investment that the comptroller makes under Government Code, Chapter 404, or other law.",
            "sourceNote": "Source Note: The provisions of this §6.13 adopted to be\r\neffective December 30, 2025, 50 TexReg 8615."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227115&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227115",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "6",
                "label": "INVESTMENT MANAGEMENT"
            },
            "subchapter": {
                "number": "B",
                "label": "STANDARDS FOR MEMBERS OF THE COMPTROLLER'S  INVESTMENT ADVISORY BOARD"
            },
            "rule": {
                "number": "§6.14",
                "label": "Compensation; Expenses"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227116&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227116",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Members of the advisory board serve without compensation but are entitled to reimbursement for actual and necessary expenses in attending meetings of the advisory board or performing other official duties authorized by the comptroller.",
            "sourceNote": "Source Note: The provisions of this §6.14 adopted to be\r\neffective December 30, 2025, 50 TexReg 8615."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227116&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227116",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "6",
                "label": "INVESTMENT MANAGEMENT"
            },
            "subchapter": {
                "number": "B",
                "label": "STANDARDS FOR MEMBERS OF THE COMPTROLLER'S  INVESTMENT ADVISORY BOARD"
            },
            "rule": {
                "number": "§6.15",
                "label": "Disclosures and Annual Affirmation of Compliance"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227117&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227117",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Each member shall disclose to the advisory board and the trust company any situation in which board member's judgment or conduct in the performance of the member's official duties for the comptroller or the trust company would be influenced, could be influenced, or would give the appearance of being influenced by the advisory board member's familial, personal, or business relationship with a third party, or any situation that would be deemed a conflict of interest under federal or state law.(b) A member who discloses such a matter to the trust company or the comptroller shall abstain from any discussion or action on that matter presented to or considered by the advisory board. (c) The trust company shall annually require advisory board members to affirm that they are in compliance with these requirements and the other applicable provisions of this subchapter and Government Code, Chapter 404.",
            "sourceNote": "Source Note: The provisions of this §6.15 adopted to be\r\neffective December 30, 2025, 50 TexReg 8615."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227117&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227117",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "6",
                "label": "INVESTMENT MANAGEMENT"
            },
            "subchapter": {
                "number": "B",
                "label": "STANDARDS FOR MEMBERS OF THE COMPTROLLER'S  INVESTMENT ADVISORY BOARD"
            },
            "rule": {
                "number": "§6.16",
                "label": "Term of Office"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227118&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227118",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The term of office of an advisory board member is four years. Advisory board members may serve more than one term. The comptroller may stagger advisory board member terms to maintain continuity and institutional knowledge.",
            "sourceNote": "Source Note: The provisions of this §6.16 adopted to be\r\neffective December 30, 2025, 50 TexReg 8615."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227118&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227118",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "6",
                "label": "INVESTMENT MANAGEMENT"
            },
            "subchapter": {
                "number": "B",
                "label": "STANDARDS FOR MEMBERS OF THE COMPTROLLER'S  INVESTMENT ADVISORY BOARD"
            },
            "rule": {
                "number": "§6.17",
                "label": "Charter and Policies"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227119&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227119",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The trust company shall develop and provide to each member of the advisory board the following:(1) formal charter document providing the advisory board purpose, statement of relevant legal authority, and an overview of advisory board operations, advisory board structure and membership, and advisory board business and administration; (2) policy on advisory board attendance and a process for responding to advisory board attendance concerns;(3) policy on ethics disclosures and a process for determining whether issues require disclosures; and(4) policy on reimbursement of expenses.",
            "sourceNote": "Source Note: The provisions of this §6.17 adopted to\r\nbe effective December 30, 2025, 50 TexReg 8615."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227119&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227119",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "6",
                "label": "INVESTMENT MANAGEMENT"
            },
            "subchapter": {
                "number": "B",
                "label": "STANDARDS FOR MEMBERS OF THE COMPTROLLER'S  INVESTMENT ADVISORY BOARD"
            },
            "rule": {
                "number": "§6.18",
                "label": "Removal of Advisory Board Members"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137737&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137737",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The comptroller may remove an advisory board member for any of the following causes:(1) at the time of the member's appointment, the member did not have the qualifications prescribed by §404.028;(2) the member does not maintain the qualifications prescribed by Government Code, §404.028; or(3) for a substantial portion of the member's term, the member fails to discharge the member's duties or is unable to discharge the member's duties.",
            "sourceNote": "Source Note: The provisions of this §6.18 adopted to\r\nbe effective December 30, 2025, 50 TexReg 8615."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137737&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137737",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL RULES"
            },
            "rule": {
                "number": "§7.1",
                "label": "General Statement of Purpose"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95280&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "95280",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Pursuant to the Education Code, Chapter 54, Subchapter F, the Prepaid Higher Education Tuition Board is responsible for developing the Prepaid Higher Education Tuition Program to increase access to higher education for Texas families. The program will provide a mechanism through which the cost of tuition and required fees may be paid in advance of enrollment in an institution of higher education or a private or independent institution of higher education. Promulgation of these rules will inform the public and provide an orderly procedure to accomplish the responsibilities provided by law.(b) Higher Education Savings Plan.(1) The board develops, implements, and administers the higher education savings plan under Education Code, §54.602(b) and Education Code, Chapter 54, Subchapter G.(2) The higher education savings plan enables individuals to contribute to an account that is established for the purpose of meeting the qualified higher education expenses of a beneficiary.(3) This subchapter and subchapter K of this chapter inform the public about the savings plan.(c) Prepaid Tuition Unit Undergraduate Education Program: Texas Tomorrow Fund II.(1) The board develops, implements, and administers the prepaid tuition unit undergraduate education program under Education Code, Chapter 54, Subchapter H.(2) The prepaid tuition unit undergraduate education program enables individuals to enter into a prepaid tuition contract with the board on behalf of a beneficiary for the purchase of one or more tuition units that the beneficiary is entitled to apply to the payment of the beneficiary's undergraduate tuition and required fees at an eligible educational institution.(3) This subchapter and Subchapter L of this chapter inform the public about the prepaid tuition unit undergraduate education program.(d) Board. This chapter provides an orderly procedure to accomplish the board's responsibilities.",
            "sourceNote": "Source Note: The provisions of this §7.1 adopted to be effective January 8, 1996, 20 TexReg 11124; amended to be effective July 14, 2002, 27 TexReg 6040; amended to be effective August 27, 2008, 33 TexReg 6954."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95280&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "95280",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL RULES"
            },
            "rule": {
                "number": "§7.2",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95284&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "95284",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words, terms, and phrases, when used in this chapter, shall have the following meanings. Terms used in this chapter and defined in the Education Code, §54.601, shall have the meaning ascribed therein.(1) Average amount of tuition and required fees--The average amount of tuition and required fees among all institutions within the plan selected by the purchaser.(2) Comptroller--The Comptroller of Public Accounts for the state of Texas.(3) Enrollment period--The designated period in each calendar year during which the board will accept applications for enrollment in the program.(4) Person--Includes an individual or corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity.(5) Required fees--Those fees imposed on all students as a condition of enrollment at a particular institution of higher education or private or independent institution of higher education. Required fees do not include fees such as laboratory fees or equipment usage fees required for particular courses, charges for room and board, book costs, or any optional fees.(6) Staff--Employees of the comptroller selected by the comptroller to serve as staff of the board and assist in the performance of duties delegated to the comptroller by the board.(7) Tuition--The charges imposed by an institution of higher education or private or independent institution of higher education on undergraduates as a condition of enrollment, as identified by such institution. Where applicable, a reference to tuition shall be deemed a reference to resident tuition rates unless otherwise specified.",
            "sourceNote": "Source Note: The provisions of this §7.2 adopted to be effective January 8, 1996, 20 TexReg 11124; amended to be effective December 3, 1997, 22 TexReg 11716; amended to be effective July 14, 2002, 27 TexReg 6041."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95284&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "95284",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL RULES"
            },
            "rule": {
                "number": "§7.3",
                "label": "Tax Exempt Status Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19827&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19827",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The provisions of this section are intended to meet the requirements of the Internal Revenue Code, §529.(b) All payments of amounts due to the fund for a prepaid tuition contract must be made in cash. No person may make payments to the fund in excess of the amounts required to be paid under the prepaid tuition contract selected by the purchaser.(c) A separate accounting shall be maintained for each beneficiary.(d) The purchaser of a prepaid tuition contract and the beneficiary of the contract shall have no ability to directly or indirectly control or direct the investment of the payments made under the contract or any earnings of the fund.(e) The purchaser of a prepaid tuition contract and the beneficiary of the contract cannot use any interest in the contract as security for a loan or other obligation.(f) The board shall make such reports as the Secretary of the Treasury shall require.",
            "sourceNote": "Source Note: The provisions of this §7.3 adopted to be effective November 15, 1996, 21 TexReg 10885; amended to be effective December 3, 1997, 22 TexReg 11716; amended to be effective July 14, 2002, 27 TexReg 6041."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19827&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19827",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "B",
                "label": "BOARD MEETING GUIDELINES AND REQUIREMENTS"
            },
            "rule": {
                "number": "§7.11",
                "label": "Board Officers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19824&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19824",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The comptroller is the presiding officer of the board. The comptroller's chief clerk shall serve as presiding officer in the comptroller's absence.(b) The board shall designate one of its members or board staff to serve as secretary of the board to ensure that appropriate notices are posted, minutes of board meetings are prepared, and to perform other duties delegated to the secretary by the board.(c) The comptroller is the executive director of the board and shall perform the duties prescribed by law and such other duties as may be prescribed by the board.(d) Notices, suggestions, correspondence or other documents to be delivered to the board may be delivered to the staff for distribution to the members of the board. Such information should be addressed to the Prepaid Higher Education Tuition Program, Office of the Comptroller of Public Accounts, P.O. Box 13407, Austin, Texas 78711-3407; 111 East 17th Street, Room 1114, Austin, Texas 78774-0001. Staff for the program may be reached by calling toll-free at 1-800-445-GRAD (4723) or in Austin at (512) 936-6055.",
            "sourceNote": "Source Note: The provisions of this §7.11 adopted to be effective January 8, 1996, 20 TexReg 11124; amended to be effective November 15, 1996, 21 TexReg 10886; amended to be effective December 3, 1997, 22 TexReg 11716."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19824&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19824",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "B",
                "label": "BOARD MEETING GUIDELINES AND REQUIREMENTS"
            },
            "rule": {
                "number": "§7.12",
                "label": "Meetings"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=31219&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "31219",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The board shall meet at least once quarterly in the city of Austin and at such other times and places as may be designated by the presiding officer. All meetings shall be conducted in compliance with the open meetings provisions in the Government Code, Chapter 551.(b) The board shall prepare, maintain and observe a written plan that provides reasonable access to board meetings and to the program to persons who do not speak English, or who have physical, mental or developmental disabilities.(c) Under the direction of the secretary, the staff shall be responsible for filing notice of meetings as required by law. The staff shall also give reasonable advance notice of the meetings and agenda items to each board member.(d) Board meetings shall be conducted in accordance with standard parliamentary rules of procedure.",
            "sourceNote": "Source Note: The provisions of this §7.12 adopted to be effective January 8, 1996, 20 TexReg 11124."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=31219&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "31219",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "B",
                "label": "BOARD MEETING GUIDELINES AND REQUIREMENTS"
            },
            "rule": {
                "number": "§7.13",
                "label": "Agenda for Board Meetings"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3854&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "3854",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The staff, at the direction of the presiding officer, shall prepare the agenda prior to board meetings. Notice of items to be considered shall be filed with the secretary of state as required by law.(b) Additional items may be included on the agenda upon the written request of one board member, provided such requests are received at least ten days in advance of the board meeting. The written request shall be forwarded to the presiding officer.(c) If the presiding officer finds that an emergency exists requiring immediate board action, additional items may be added to the agenda in accordance with the open meetings provisions in the Government Code, Chapter 551.",
            "sourceNote": "Source Note: The provisions of this §7.13 adopted to be effective January 8, 1996, 20 TexReg 11124."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3854&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "3854",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "B",
                "label": "BOARD MEETING GUIDELINES AND REQUIREMENTS"
            },
            "rule": {
                "number": "§7.14",
                "label": "Record of Meetings"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3855&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "3855",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Under the direction of the secretary, the staff shall keep a complete record of the meetings of the board and shall prepare complete written summaries or minutes reflecting actions taken by the board.",
            "sourceNote": "Source Note: The provisions of this §7.14 adopted to be effective January 8, 1996, 20 TexReg 11124."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3855&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "3855",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "B",
                "label": "BOARD MEETING GUIDELINES AND REQUIREMENTS"
            },
            "rule": {
                "number": "§7.15",
                "label": "Voting Procedures"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19822&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19822",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The board may take action upon a majority vote of the members present. Four members of the board shall constitute a quorum.",
            "sourceNote": "Source Note: The provisions of this §7.15 adopted to be effective January 8, 1996, 20 TexReg 11124."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19822&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19822",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "B",
                "label": "BOARD MEETING GUIDELINES AND REQUIREMENTS"
            },
            "rule": {
                "number": "§7.16",
                "label": "Public Comment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=28660&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "28660",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The board shall develop and implement reasonable policies that provide the public with an opportunity to appear before the board and speak on issues within the scope of the board's jurisdiction.(b) At each board meeting, the board shall invite and hear public comments, subject to reasonable limitations imposed at the discretion of the presiding officer to provide for efficient and fair consideration of agenda items.",
            "sourceNote": "Source Note: The provisions of this §7.16 adopted to be effective January 8, 1996, 20 TexReg 11124."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=28660&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "28660",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "B",
                "label": "BOARD MEETING GUIDELINES AND REQUIREMENTS"
            },
            "rule": {
                "number": "§7.17",
                "label": "Public Hearings"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=192383&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "192383",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The board may periodically hold public hearings around the state to obtain input regarding the policies and operations of the board, issues before the board, and to solicit suggestions and ideas from interested members of the public.",
            "sourceNote": "Source Note: The provisions of this §7.17 adopted to be\r\neffective January 8, 1996, 20 TexReg 11124."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=192383&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "192383",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "B",
                "label": "BOARD MEETING GUIDELINES AND REQUIREMENTS"
            },
            "rule": {
                "number": "§7.18",
                "label": "Complaints"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137735&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137735",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All plan or program websites and plan or program descriptions on behalf of the program shall include a statement specifying that complaints may be forwarded to the following address or by calling the toll free number: Prepaid Higher Education Tuition Program, Office of the Comptroller of Public Accounts, P.O. Box 13407, Austin, Texas 78711-3407, (800) 445-GRAD.(b) Staff shall document the source and nature of each complaint as provided in Education Code, §54.617, and shall keep a file for each written complaint filed. Each file shall include a description of the action taken to resolve the complaint. Staff shall provide any person who files a written complaint with a copy of the board's policies and procedures pertaining to complaint investigation and resolution, shall update such person at least quarterly regarding the status of the complaint, and shall notify such person of the final resolution of the complaint.",
            "sourceNote": "Source Note: The provisions of this §7.18 adopted to be effective January 8, 1996, 20 TexReg 11124; amended to be effective October 4, 2018, 43 TexReg 6454."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137735&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137735",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "C",
                "label": "BOARD RESPONSIBILITIES"
            },
            "rule": {
                "number": "§7.21",
                "label": "General Responsibilities"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19828&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19828",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The board shall retain the following responsibilities, all of which expressly are not delegated to the executive director:(1) initiation, settlement or defense of litigation and the retention of legal counsel in connection with litigation; provided that limited authority with respect to litigation is delegated to the executive director as set forth in §7.33(2) of this title (relating to Delegated Responsibilities);(2) adoption of rules relating to the program;(3) development of investment guidelines;(4) limitation of enrollments in the program;(5) approval of contract prices;(6) negotiation and execution of purchase, contracts, leases, lease purchases, licenses and agreements involving payments of equal to or more than the amount(s) stated in Government Code, §2254.021(2);(7) approval of agreements or other transactions with the United States, state agencies, general academic teaching institutions, two-year institutions of higher education, and local governments;(8) approval of contracts with persons or entities to market and enroll persons in the programs; and(9) all policy making responsibilities of general applicability, provided that the board may delegate policy making responsibility to the executive director where parameters have been adopted by the board to be followed by the executive director in the exercise of such responsibility.",
            "sourceNote": "Source Note: The provisions of this §7.21 adopted to be effective January 8, 1996, 20 TexReg 11124; amended to be effective August 27, 2008, 33 TexReg 6955."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19828&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19828",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "D",
                "label": "EXECUTIVE DIRECTOR"
            },
            "rule": {
                "number": "§7.31",
                "label": "General Responsibilities"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=31220&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "31220",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The comptroller serves as executive director of the board. The executive director shall perform all duties and responsibilities imposed by law or delegated by the board.",
            "sourceNote": "Source Note: The provisions of this §7.31 adopted to be effective January 8, 1996, 20 TexReg 11124."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=31220&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "31220",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "D",
                "label": "EXECUTIVE DIRECTOR"
            },
            "rule": {
                "number": "§7.32",
                "label": "Management Responsibilities"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137736&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137736",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The executive director shall select and supervise staff and contractors or consultants retained by the board, and shall perform such other functions as may be necessary to supervise, direct, conduct and administer the day-to-day duties of the board as authorized by law or by rules and policies adopted by the board.",
            "sourceNote": "Source Note: The provisions of this §7.32 adopted to be effective January 8, 1996, 20 TexReg 11124."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137736&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137736",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "D",
                "label": "EXECUTIVE DIRECTOR"
            },
            "rule": {
                "number": "§7.33",
                "label": "Delegated Responsibilities"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19833&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19833",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Authority to act in the following areas is delegated to the executive director by the board:(1) to act as agent for service of process and as official liaison with agencies of the state, other states, the federal government and the public;(2) to initiate, settle or defend litigation by, on behalf of or against the board in collection matters, contract disputes or other matters involving less than $10,000;(3) to initiate all rulemaking and adopt internal procedures and guidelines;(4) to supervise, direct, conduct and administer the day-to-day activities of the program;(5) to negotiate, enter into and execute purchases, contracts, leases, lease-purchases, licenses and agreements involving payments of less than the amount(s) stated in Government Code, §2254.021(2);(6) to authorize a refund, change of beneficiary, conversion to another plan and assess fees as specified by the board or consistent with rules and policies adopted by the board;(7) to negotiate agreements or other transactions with the United States, state agencies, general academic teaching institutions, two-year institutions of higher education, and local governments;(8) to appear on his or her own behalf or on behalf of the board before governmental agencies;(9) to engage the services of private consultants, actuaries, trustees, records administrators, managers, legal counsel, and auditors for administrative or technical assistance;(10) to solicit and accept on behalf of the board gifts, grants, loans, and other aid from any source or participate in any other way in any government program to carry out this chapter;(11) to purchase liability insurance covering the board and employees and agents of the board; and(12) to perform such other duties as specified by the board.",
            "sourceNote": "Source Note: The provisions of this §7.33 adopted to be effective January 8, 1996, 20 TexReg 11124; amended to be effective May 6, 2008, 33 TexReg 3649; amended to be effective August 27, 2008, 33 TexReg 6955."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19833&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19833",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "E",
                "label": "APPLICATION, ENROLLMENT, PAYMENT, AND FEES"
            },
            "rule": {
                "number": "§7.41",
                "label": "Application"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137738&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137738",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) These rules apply to prepaid tuition contracts for the prepayment of tuition and required fees necessary for a beneficiary to attend an institution of higher education or private or independent institution of higher education. Prepayments are expressly limited to payment of tuition and required fees as specified in this chapter, the Education Code, Chapter 54, Subchapter F, and the prepaid tuition contracts issued pursuant thereto.(b) Applications shall be made available through the Prepaid Higher Education Tuition Program, Office of the Comptroller of Public Accounts, P.O. Box 13407, Austin, Texas 78711-3407; 111 East 17th Street, Room 1114, Austin, Texas 78774-0001, or by calling toll-free at 1-800-445-GRAD (4723), or as otherwise provided by the board.(c) The rights of purchasers and beneficiaries are subject to the provisions of this chapter, the Education Code, Chapter 54, Subchapter F, and the terms and conditions of the prepaid tuition contract. Prepaid tuition contract prices shall be evaluated by the board annually and adjusted as necessary to ensure the actuarial soundness of the fund. Revisions to the prepaid tuition contract price will be published in the Texas Register and shall apply to prepaid tuition contracts entered into subsequent to board approval of the revision.",
            "sourceNote": "Source Note: The provisions of this §7.41 adopted to be effective January 8, 1996, 20 TexReg 11124; amended to be effective November 15, 1996, 21 TexReg 10886."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137738&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137738",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "E",
                "label": "APPLICATION, ENROLLMENT, PAYMENT, AND FEES"
            },
            "rule": {
                "number": "§7.42",
                "label": "Enrollment Period"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=73935&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "73935",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as provided in subsection (c) of this section, each enrollment period shall begin and end on dates set annually by the board and published in the Texas Register.  The official postmark date affixed by the United States Postal Service or date stamp evidencing actual receipt of the application at the address specified as follows, whichever is earlier, shall be considered the date of receipt of an application for purposes of the enrollment period. Applications may be mailed to the following address: Prepaid Higher Education Tuition Program, Office of the Comptroller of Public Accounts, P.O. Box 13407, Austin, Texas 78711-3407. In the alternative applications may be delivered to the following address: 111 East 17th Street, Room 1114, Austin, Texas 78774-0001.  (b) The board reserves the right to limit or suspend enrollment if necessary to ensure the actuarial soundness of the fund.  (c) An extended enrollment period for beneficiaries classified as \"newborns\" may be established by the Board on an annual basis.  (d) In each year that new enrollment in the program is temporarily suspended under Education Code, §54.619(j), the board shall determine whether to reopen new enrollment in the program based on the following criteria: the sufficiency of available alternatives for college savings offered by the state, whether analysis of actuarial data shows that new enrollment in the program may be reopened in an actuarially sound manner, and any other relevant criteria. The board may reopen the program to new enrollment if it determines that the alternatives for college savings offered by the state do not offer Texans sufficient help to attain a college education, and that the program could be reopened in an actuarially sound manner. In each year that new enrollment in the program remains closed, the board shall consider the current structure of the program and determine whether statutory or administrative changes are needed to enable the board to reopen the program to new enrollment in an actuarially sound manner.",
            "sourceNote": "Source Note: The provisions of this §7.42 adopted to be effective January 8, 1996, 20 TexReg 11124; amended to be effective November 15, 1996, 21 TexReg 10886; amended to be effective January 3, 1999, 23 TexReg 13103; amended to be effective August 27, 2008, 33 TexReg 6956."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=73935&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "73935",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "E",
                "label": "APPLICATION, ENROLLMENT, PAYMENT, AND FEES"
            },
            "rule": {
                "number": "§7.43",
                "label": "Administrative Fees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=73936&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "73936",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The board shall adopt an administrative fee schedule to cover costs of administration of the program.(b) Fees adopted by the board shall reflect the intent to make the program self-supporting and to maintain the actuarial soundness of the fund. The fees may include the following:(1) a nonrefundable application fee of $50 collected at the time the application is submitted;(2) a termination fee of $25 assessed upon the termination of a contract by the purchaser to allow reimbursement of the board's estimated expenses in terminating the contract;(3) a change of beneficiary fee of $50 assessed in connection with a request to substitute beneficiaries under the plan;(4) a change in purchaser fee of $20 assessed for assignment of contract rights and obligations to another purchaser;(5) a benefits transfer fee of $25 deducted from payments when funds are used for out-of-state tuition;(6) an account maintenance fee of $3.00 on monthly installment accounts and $20 on lump sum accounts for servicing accounts;(7) a fee of $15 for changes in the mode of payment or payment schedule requested by a purchaser;(8) a late fee of $10 assessed for payments made past the due date;(9) an insufficient funds fee of $20 assessed for all payments returned for insufficient funds;(10) an improper notice fee of $25 assessed for failure to provide timely notice of the intent to use contract benefits;(11) replacement of coupon books and other contract related documents;(12) a fee for application of program benefits to proprietary school tuition and fees in an amount established by the board; and(13) other administrative fees established by the board.(c) Where applicable, charges for copies of public records shall be assessed at the rates established by the General Services Commission pursuant to the Government Code, §552.261, and consistent with similar charges assessed for public records by the Office of the Comptroller.",
            "sourceNote": "Source Note: The provisions of this §7.43 adopted to be effective January 8, 1996, 20 TexReg 11124; amended to be effective December 3, 1997, 22 TexReg 11716; amended to be effective January 3, 1999, 23 TexReg 13103; amended to be effective February 16, 2000, 25 TexReg 1123."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=73936&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "73936",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "F",
                "label": "TUITION"
            },
            "rule": {
                "number": "§7.51",
                "label": "Tuition Paid"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19836&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19836",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) For prepaid tuition contracts issued under the junior college plan, junior/senior college plan, or senior college plan, the tuition and required fees paid pursuant to such prepaid tuition contracts shall be paid in accordance with the rates charged to Texas residents.(b) For prepaid tuition contracts issued under the private college plan, tuition and required fees paid pursuant to the prepaid tuition contract shall be limited to the estimated average private tuition and required fees as determined by the board on an annual basis.(c) For prepaid tuition contracts issued under the senior college, junior/senior college, or junior college plan, where tuition and required fee payments are made to Texas higher education institutions not of the plan selected, payments to the institution shall be based on a calculation of the average tuition rate of the plan selected.(d) Any prepaid tuition contract purchased under this program may be applied to the payment of tuition and required fees at a proprietary school meeting the requirements of the United States Internal Revenue Code, §529(e)(5), as an \"eligible education institution,\" as if the proprietary school were an institution of higher education or private or independent institution of higher education. On the purchaser's request, the board shall apply any existing amount of prepaid tuition contract benefits, as determined by the average rate of tuition and fees under the contract purchased, to the payment of tuition and required fees at such a proprietary school. The board is not responsible for the payment of tuition and required fees at the proprietary school in excess of that amount.",
            "sourceNote": "Source Note: The provisions of this §7.51 adopted to be effective January 8, 1996, 20 TexReg 11124; amended to be effective December 3, 1997, 22 TexReg 11716; amended to be effective January 3, 1999, 23 TexReg 13103; amended to be effective February 16, 2000, 25 TexReg 1123."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19836&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19836",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "F",
                "label": "TUITION"
            },
            "rule": {
                "number": "§7.52",
                "label": "Maximum Tuition Credit Hours and Fees Paid"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=73937&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "73937",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as provided by §7.53 of this title (relating to Supplemental Contracts), no more than 128 tuition credit hours may be purchased or paid pursuant to a prepaid tuition contract for attendance under the senior college plan or private college plan.(b) No more than 64 tuition credit hours may be purchased or paid pursuant to a prepaid tuition contract under the junior college plan.(c) No more than 128 tuition credit hours may be purchased or paid under the junior-senior college plan, with no more than 64 credit hours of tuition and required fees for attendance at a public junior college and 64 credit hours for attendance at a public senior college or university.(d) Certain required fees are assessed on a per semester basis. No more than the equivalent of eight semesters of such required fees shall be paid unless a supplemental contract is purchased under §7.53 of this title. If a supplemental contract is purchased under §7.53 of this title, then no more than the equivalent of 10 semesters of such required fees shall be paid.(e) The board may prescribe other limits to the amount of tuition and required fees payable under any prepaid tuition contract.",
            "sourceNote": "Source Note: The provisions of this §7.52 adopted to be effective January 8, 1996, 20 TexReg 11124; amended to be effective November 15, 1996, 21 TexReg 10887; amended to be effective December 3, 1997, 22 TexReg 11716."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=73937&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "73937",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "F",
                "label": "TUITION"
            },
            "rule": {
                "number": "§7.53",
                "label": "Supplemental Contracts"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19837&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19837",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "At any time during the duration of the contract but before the beneficiary graduates from high school, the purchaser of a prepaid tuition contract for a senior college plan for four years or a private college plan may purchase a supplemental contract to prepay the tuition and required fees of the beneficiary for 32 credit hours for one additional year of education, in addition to the undergraduate credit hours included in the primary contract.",
            "sourceNote": "Source Note: The provisions of this §7.53 adopted to be effective December 3, 1997, 22 TexReg 11716; amended to be effective February 16, 2000, 25 TexReg 1123."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19837&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19837",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "F",
                "label": "TUITION"
            },
            "rule": {
                "number": "§7.54",
                "label": "Application of Unused Credit Hours to Graduate Tuition"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19798&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19798",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If the beneficiary of a prepaid tuition contract registers in a graduate or professional degree program before the termination of the contract and the beneficiary has not received payment under the contract for tuition and required fees for all of the semester credit hours to which the beneficiary is entitled, the beneficiary may apply the value of the remaining semester credit hours under the contract to the payment of the beneficiary's tuition and required fees in a graduate or professional school.(b) The value of a semester credit hour under a prepaid tuition contract is equal to the average amount of tuition and required fees for an undergraduate semester credit hour for the same term or semester for which the beneficiary applies the payment to the beneficiary's tuition and required fees in a graduate or professional degree program.(c) This section does not affect the date on which a prepaid tuition contract terminates and does not give the beneficiary the right to any payment under the contract after termination of the contract.",
            "sourceNote": "Source Note: The provisions of this §7.54 adopted to be effective December 3, 1997, 22 TexReg 11716."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19798&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19798",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "G",
                "label": "BENEFICIARIES"
            },
            "rule": {
                "number": "§7.61",
                "label": "Qualified Beneficiary"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19839&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19839",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A qualified beneficiary is an individual who is under the age of 18 or who is 18 years of age or older and enrolled in high school at the time the purchaser enters into the contract, who has not graduated from high school nor obtained high school equivalency certification, and is either:(1) a resident of the state of Texas; or(2) a non-resident who is the child of a parent who is a resident of the state of Texas at the time that parent enters into the contract.",
            "sourceNote": "Source Note: The provisions of this §7.61 adopted to be effective January 8, 1996, 20 TexReg 11124; amended to be effective December 3, 1997, 22 TexReg 11716."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19839&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19839",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "G",
                "label": "BENEFICIARIES"
            },
            "rule": {
                "number": "§7.62",
                "label": "Certification and Evidence of Residency"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95283&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "95283",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The purchaser must certify on the application for enrollment in the program that the beneficiary or the parents or guardians of the beneficiary are residents of this state at the time the purchaser enters into the contract and that the beneficiary or the parents or guardians of the beneficiary satisfy any period of residency required by the board. Prior to or after accepting an application for enrollment in the program, the board may require evidence of residency in the state of Texas as of the date of the application.(b) For beneficiaries under the age of one as of the date of application, the following documents may be considered sufficient to establish residency status:(1) a birth certificate indicating that the qualified beneficiary was born in Texas; and(2) one or more of the items listed in subsection (e) of this section.(c) For beneficiaries who are at least one year of age but younger than six as of the date of application, the following documents may be considered sufficient to establish residency status:(1) progress reports or other documentation from the child's preschool or child care center or provider evidencing 12 months of continuous residency immediately prior to the date of the application; or(2) one or more of the items listed in subsection (e) of this section.(d) For beneficiaries who are at least six years of age but younger than 18 or who are 18 years of age or older and enrolled in high school as of the date of application, the following documents may be considered sufficient to establish residency status:(1) the child's report cards or transcripts from a public or private school in Texas or documentation from a child care center or provider may be accepted as evidence of 12 months of continuous residency immediately prior to the date of the application; or(2) one or more of the items listed in subsection (e) of this section.(e) If no such records relating to the beneficiary exist or are available, or if the beneficiary is a nonresident child of a parent who is a resident of the State of Texas, the parents' or guardians' residency shall be determinative as to eligibility for the program. Residency of a parent or guardian may be established by one or more of the following documents showing 12 months of continuous residence in the state of Texas immediately prior to the date of the application:(1) voter's registration card;(2) driver's license;(3) certificate of domicile;(4) utility bills at the same residence;(5) professional or occupational license;(6) wage statements or other proof of employment in Texas;(7) Texas vehicle registration; or(8) any other similar documentation indicating such continuous residency.(f) In assessing the 12 months continuous residency requirement, brief absences or absences justified by catastrophic or extenuating circumstances may be waived.",
            "sourceNote": "Source Note: The provisions of this §7.62 adopted to be effective January 8, 1996, 20 TexReg 11124; amended to be effective November 15, 1996, 21 TexReg 10887; amended to be effective December 3, 1997, 22 TexReg 11716."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95283&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "95283",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "G",
                "label": "BENEFICIARIES"
            },
            "rule": {
                "number": "§7.63",
                "label": "Change of Beneficiary"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19840&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19840",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The purchaser of a prepaid tuition contract may substitute one beneficiary for another subject to the following conditions:(1) the new beneficiary must meet the requirements of a qualified beneficiary on the date the designation is changed, including residency requirements;(2) the new beneficiary is a member of the family of the original beneficiary who meets the requirements of the Internal Revenue Code of 1986, §529 so that the change of beneficiary is not treated as a distribution under that law;(3) documentation must be submitted evidencing the relationship of the beneficiaries;(4) the purchaser must pay any amounts that would have been paid under the contract originally had the new beneficiary been designated at the time the original beneficiary was designated, plus any required fees specified in the board's fee schedule; and(5) the original beneficiary has not used any contract benefits.(b) Amounts paid before the beneficiary is changed shall be credited against amounts due at the time of the change. If the amount due at the time of the change is less than the amount paid prior to the change, such amount shall be credited against other amounts due through the term of the contract. If the amount paid prior to change exceeds the amounts due through the term of the contract, the amount in excess of the amounts due shall be refunded to the purchaser.",
            "sourceNote": "Source Note: The provisions of this §7.63 adopted to be effective January 8, 1996, 20 TexReg 11124; amended to be effective November 15, 1996, 21 TexReg 10888; amended to be effective December 3, 1997, 22 TexReg 11716; amended to be effective July 14, 2002, 27 TexReg 6041."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19840&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19840",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "G",
                "label": "BENEFICIARIES"
            },
            "rule": {
                "number": "§7.64",
                "label": "Purchasers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95285&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "95285",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A purchaser is a person who is obligated to make payments under a prepaid tuition contract. Joint purchasers may enter into a single prepaid tuition contract if they are married on the date of application. Each person that is a purchaser under a prepaid tuition contract is jointly and severally liable for all payments and fees due under such contract. Unless otherwise provided in these rules, the purchaser shall execute all prepaid tuition contract changes, conversions, transfers, terminations and refund requests, and if there are joint purchasers for a single prepaid tuition contract, both purchasers must execute to effect such actions. Any requests to change the purchaser must be signed and notarized by the purchaser. A purchaser may designate in writing to the board a person with a right of survivorship in the event of the purchaser's death. However, until the rights under the contract pass to the designee, such designee has no right to direct decisions regarding contract changes, conversions, transfers or termination. Without limitation on the foregoing, the contract may be modified or terminated by, or refund disbursed to, the purchaser without the consent or authorization of a designee of survivorship rights pursuant to this paragraph.",
            "sourceNote": "Source Note: The provisions of this §7.64 adopted to be effective November 15, 1996, 21 TexReg 10888."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95285&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "95285",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "H",
                "label": "CONVERSION"
            },
            "rule": {
                "number": "§7.71",
                "label": "Conversion"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=144025&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "144025",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Plans are designed to be flexible and to allow beneficiaries to attend their choice of institutions of higher education or private or independent institutions of higher education.(b) A purchaser may convert a prepaid tuition contract from one plan to another plan during the annual enrollment period specified by the board and upon payment of any additional amounts due under the plan to which the contract is converted plus any required fees specified in the board's fee schedule. The value at the time of conversion of the contract under the original plan shall be credited against amounts due upon conversion. Such value shall be the present lump sum actuarial value of the average amount of tuition and required fees for junior college plans, junior/senior college plans, and senior college plans and the estimated amount of private tuition and required fees for the private college plan. For contracts that are paid in full, the payment of additional amounts for conversion is determined by applying the value at the time of the conversion of the contract purchased under the original plan to the cost of the new plan. For contracts that are not paid in full, the payment of additional amounts for conversion is determined by applying the pro rata amount of the value at the time of conversion of the contract purchased under the original plan to the cost of the new plan, such pro rata amount determined by the number of payments paid under the contract under the original plan by the purchaser to the number of payments required to pay the contract under the original plan in full. If the amount due under the plan to which the contract is converted is less than the value at the time of conversion of the contract under the original plan, such excess amounts shall be credited against other amounts due through the term of the contract. If the amount to be credited under the preceding sentence exceeds the amount due through the term of the contract, such excess shall be refunded to the purchaser less any applicable fees.(c) A purchaser may transfer ownership of a prepaid tuition contract to another eligible purchaser, provided the transfer is accomplished without consideration and, if the beneficiary is a nonresident of Texas, the substitute purchaser meets the applicable residency requirements.",
            "sourceNote": "Source Note: The provisions of this §7.71 adopted to be effective January 8, 1996, 20 TexReg 11124; amended to be effective November 15, 1996, 21 TexReg 10889; amended to be effective December 3, 1997, 22 TexReg 11716; amended to be effective July 14, 2002, 27 TexReg 6042."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=144025&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "144025",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "I",
                "label": "REFUNDS, TERMINATION"
            },
            "rule": {
                "number": "§7.81",
                "label": "Refunds"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137748&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137748",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Refunds shall be made in accordance with provisions of these rules and the prepaid tuition contract, in a manner that will not adversely affect the tax status of the program under applicable provisions of the Internal Revenue Code, as amended from time to time. Refunds shall be governed by these rules as amended and as in effect on the date the request for refund is submitted to the board. The amount of any refund shall be the sum of all payments made under the contract for tuition and required fees, less fees due and payable to the program under the board's fee schedule and less any amounts paid by the program pursuant to the prepaid tuition contract prior to the refund.(b) Refunds shall be made to the purchaser of the prepaid tuition contract unless otherwise designated by the purchaser in writing to the board in the event of the purchaser's death.(c) Should a beneficiary terminate his/her student status on or after the date on which the institution denies refunds to students withdrawing for a particular semester, no refund shall be paid under the prepaid tuition contract for amounts relating to such semester.(d) Examples of circumstances under these rules in which refunds may be made include, but are not limited to, the following.(1) Under any plan if the beneficiary receives a full scholarship for tuition and required fees, the amount of tuition and required fees that would have been paid under the plan selected may be refunded. Under a junior college plan, junior/senior college plan, or a senior college plan, the amount of such refund shall not exceed the tuition scholarship amount. Refund payments may be issued each academic term as long as the scholarship is effective. The purchaser of the prepaid tuition contract shall be entitled to such refund. Proof of scholarship must be submitted in a form acceptable to the board.(2) Under the junior college plan, junior/senior college plan or senior college plan, if a beneficiary receives a partial scholarship for tuition and required fees, the tuition scholarship amount may be refunded. Under the private college plan, if a beneficiary receives a partial scholarship, a refund may be made in an amount equal to the excess of the estimated average private tuition and required fee amounts, over the actual tuition and required fee amounts less the scholarship amount. Refund payments up to the amount determined in accordance with this paragraph may be issued each academic term as long as the scholarship is effective. The purchaser of the prepaid tuition contract shall be entitled to such refund. Proof of scholarship must be submitted in a form acceptable to the board.(3) If the beneficiary dies or becomes disabled while attending an institution of higher education or a private or independent institution of higher education, the amount of benefits remaining available under the prepaid tuition contract, less any applicable fees, may be refunded. A lump sum refund may be made within 60 days of the date the program is notified of the death or disability to the purchaser of the prepaid tuition contract, provided proof of death or disability is submitted in a form acceptable to the board.(4) If the beneficiary dies or becomes disabled after having graduated from high school but prior to attending an institution of higher education or a private or independent institution of higher education, a refund may be issued or the benefits under such contract may be transferred to another qualified beneficiary. If a change of beneficiary is not requested, a lump sum refund may be made within 60 days of the date the program is notified of the death or disability to the purchaser of the prepaid tuition contract, provided proof of death or disability is submitted in a form acceptable to the board. Under the junior college plan, junior/senior college plan, or senior college plan, the refund will equal the average amount of tuition and required fees in effect at the time the refund is requested. Under the private college plan, the refund will equal the estimated average of private tuition and required fees as determined annually by the board.(5) If the beneficiary dies or becomes disabled before the contract is paid in full, a refund may be issued or the benefits under such contract may be transferred to another qualified beneficiary. If a change of beneficiary is not requested, a lump sum refund may be made within 60 days of the date the program is notified of the death or disability to the purchaser of the prepaid tuition contract, provided proof of death or disability is submitted in a form acceptable to the board. For junior college plans, junior/senior college plans, or senior college plans, the refund amount will be equal to a pro rata amount of the average amount of tuition and required fees in effect at the time the refund is requested, such pro rata amount determined by the number of payments made under the contract by the purchaser to the number of payments required to pay the contract in full. For private college plans, the refund amount will be equal to a pro rata amount of the estimated amount of private tuition and required fees set forth in the prepaid tuition contract, such pro rata amount determined by the number of payments made under the contract by the purchaser to the number of payments required to pay the contract in full.(6) If a prepaid tuition contract is terminated under §7.82(c) of this title (relating to Termination of Prepaid Tuition Contract), such contract may be refunded in an amount equal to the present lump sum actuarial value, as of the date of termination, of the average amount of tuition or the estimated amount of private tuition and required fees of junior college plans, junior/senior college plans or the estimated amount of private tuition and required fees for the private college plan, less a cancellation fee; and any other applicable fee. In no case shall a refund be made in an amount less than the total amount paid by the purchaser under the contract less any applicable administrative fees or amounts previously distributed.(7) If the purchaser who selected the junior college plan, junior/senior college plan, or senior college plan dies or becomes disabled and payments cease before the contract is paid in full, and unless otherwise directed by the purchaser in writing, a refund may be made. The refund amount will be equal to a percentage of the average amount of tuition and required fees in effect at the time the refund is requested, determined by reference to the percentage of payments made under the contract by the purchaser. If the purchaser who selected the private college plan dies or becomes disabled and payments cease before the contract is paid in full, a refund may be made. The refund amount will be equal to a percentage of the estimated amount of private tuition and required fees set forth in the prepaid tuition contract, determined by reference to the percentage of payments made under the contract by the purchaser. A lump sum refund may be made within 60 days to the purchaser of the prepaid tuition contract unless otherwise specified in writing by the purchaser as described in this paragraph. In the alternative, contract benefits may be converted to a plan with reduced benefits. Proof of death or disability shall be in a form acceptable to the board. Notwithstanding any other provision of this paragraph, the purchaser, in a writing to the board, and providing such other information as the board may request, may designate a person who shall have a right of survivorship with respect to purchaser's rights and obligations pursuant to a prepaid tuition contract; provided that such designation shall in no way affect the purchaser's ability to modify or terminate the contract and receive a refund without the consent or authorization of the designee.(8) Refunds may be made for other reasons as approved by the board. By way of example, such refunds may be made in an amount equal to the lowest amount of tuition and required fees of all institutions under the plan selected, less a cancellation fee. Refund payments may be made in semiannual installments to the purchaser of the prepaid tuition contract.",
            "sourceNote": "Source Note: The provisions of this §7.81 adopted to be effective January 8, 1996, 20 TexReg 11124; amended to be effective November 15, 1996, 21 TexReg 10890; amended to be effective December 3, 1997, 22 TexReg 11716; amended to be effective July 4, 1999, 24 TexReg 5021; amended to be effective July 14, 2002, 27 TexReg 6042; amended to be effective November 1, 2009, 34 TexReg 5958; amended to be effective January 12, 2010, 35 TexReg 253."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137748&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137748",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "I",
                "label": "REFUNDS, TERMINATION"
            },
            "rule": {
                "number": "§7.82",
                "label": "Termination of Prepaid Tuition Contract"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=73939&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "73939",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The prepaid tuition contract shall be terminated automatically:(1) if the board determines that a purchaser has misrepresented residency, age, or other information required by the board in connection with the purchase of a contract; or(2) upon failure to pay any amounts due under the prepaid tuition contract prior to the expiration of any applicable grace periods.(b) At its option, a purchaser may voluntarily terminate a prepaid tuition contract upon submission of a written request, provided the beneficiary is under 18 years of age and has not graduated from high school or attained high school equivalency certification. Termination shall be effective 30 days after receipt of such request by the board. The sum of payments made by the purchaser under the prepaid tuition contract, less a cancellation fee, may be refunded to the purchaser, subject to the limitations set forth in §7.81 of this title (relating to Refunds), or the purchaser may transfer any benefits under such contract to another qualified beneficiary under a prepaid tuition contract.(c) If the beneficiary is at least 18 years of age, or has graduated from high school or attained high school equivalency certification, either the purchaser or the beneficiary may terminate the prepaid tuition contract.(d) A prepaid tuition contract terminates automatically on the tenth anniversary of the date the beneficiary is projected to graduate from high school. Time spent as an active duty member of the United States armed services shall toll the ten-year anniversary period.",
            "sourceNote": "Source Note: The provisions of this §7.82 adopted to be effective January 8, 1996, 20 TexReg 11124; amended to be effective June 24, 1996, 21 TexReg 5459; amended to be effective November 15, 1996, 21 TexReg 10891; amended to be effective August 27, 2008, 33 TexReg 6957."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=73939&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "73939",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "I",
                "label": "REFUNDS, TERMINATION"
            },
            "rule": {
                "number": "§7.83",
                "label": "Termination of Program"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=62199&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "62199",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If the program is terminated a prepaid tuition contract remains in effect if the beneficiary has been accepted by or is enrolled in an institution of higher education, a private or independent institution of higher education, or a proprietary school, or the beneficiary is projected to graduate from high school not later than the third anniversary of the date the program terminated.(b) For contracts that do not remain in effect pursuant to subsection (a) of this section, the amount of the refund shall be the amount determined by the board at the time the program is terminated.",
            "sourceNote": "Source Note: The provisions of this §7.83 adopted to be effective January 8, 1996, 20 TexReg 11124; amended to be effective February 16, 2000, 25 TexReg 1123."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=62199&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "62199",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "I",
                "label": "REFUNDS, TERMINATION"
            },
            "rule": {
                "number": "§7.84",
                "label": "Transfer of Benefits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19843&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19843",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The purchaser may transfer benefits to an out-of-state college or university accredited by a regional accrediting association which is an \"eligible educational institution\" within the meaning of the Internal Revenue Code, §135(c)(3). The amount of the transfer shall not exceed the average amount of tuition and required fees for the previous academic year under the plan selected, or the estimated average private tuition and required fees for the previous academic year, as applicable, less a cancellation fee and any other applicable fees. Payments may be transferred each academic term to the out-of-state college or university as necessary to pay for tuition and required fees up to the credit hours limit identified in the prepaid tuition contract. A statement from the out-of-state college or university shall be submitted to the board during each academic term, in a form acceptable to the board.",
            "sourceNote": "Source Note: The provisions of this §7.84 adopted to be effective November 15, 1996, 21 TexReg 10891; amended to be effective January 3, 1999, 23 TexReg 13103."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19843&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19843",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "J",
                "label": "DEFAULT"
            },
            "rule": {
                "number": "§7.91",
                "label": "Default"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198983&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "198983",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Failure to make any payment within 30 days of the due date shall result in default by the purchaser. A purchaser may reinstate the status of its prepaid tuition contract in good standing within 180 days of the default, subject to payment of all delinquent amounts and any fees specified in the board's fee schedule, provided that if no payments are received within 120 days of the first payment due date of the contract, the contract is not eligible for reinstatement. A contract that has not been so reinstated shall be terminated.",
            "sourceNote": "Source Note: The provisions of this §7.91 adopted to be effective January 8, 1996, 20 TexReg 11124."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198983&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "198983",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "K",
                "label": "HIGHER EDUCATION SAVINGS PLAN"
            },
            "rule": {
                "number": "§7.101",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95318&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "95318",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words, terms, and phrases, when used in this subchapter, shall have the following meanings.(1) Beneficiary--The designated individual whose qualified higher education expenses are expected to be paid from a savings trust account.(2) Financial institution--A bank, trust company, savings and loan association, credit union, broker-dealer, mutual fund, insurance company, or other similar financial institution that is authorized to transact business in this state.(3) Nonqualified withdrawal--A withdrawal from a savings trust account other than:(A) a qualified withdrawal;(B) a withdrawal that is made as the result of the death or disability of the beneficiary of the account; or(C) a withdrawal that is made as a result of the receipt of a scholarship or an allowance or payment that is described in Internal Revenue Code of 1986, §135(d)(1)(B) or (C), as amended, and that the beneficiary has received, to the extent that the amount of the withdrawal does not exceed the amount of the scholarship, allowance, or payment, in accordance with federal law.(4) Owner--The individual, trust, estate, Uniform Gift to Minors Act (UGMA) custodian or Uniform Transfer to Minors Act (UTMA) custodian, guardian, corporation, non-profit entity, or other legal entity, or any combination thereof that results from transfers by operation of law, that owns a savings trust account under a savings trust agreement between the board and that individual, trust, estate, UGMA or UTMA custodian, guardian, corporation, non-profit entity, or other legal entity, or any combination thereof.(5) Plan manager--A financial institution that is under contract with the board to serve as a plan administrator.(6) Promotional material, or savings plan information--Any material published or used in any written, electronic, or other public media. For the purpose of §7.102(e)(2) and (3), of this title (relating to General Provisions) the term does not include:(A) internet banner ads that link directly to a web page that contains a link to the savings plan description;(B) time-limited broadcast advertisements;(C) press releases distributed only to members of the media;(D) materials and information that is not distributed to account owners, beneficiaries, or the public; or(E) objects, advertisements or social media posts that include no more than the name and logo of the plan and a short slogan that does not constitute a call to invest.(7) Qualified higher education expenses--Has the meaning assigned by Internal Revenue Code of 1986, §529, as amended, and includes tuition, fees, books, supplies, and equipment that are required for the enrollment or attendance of a beneficiary at an eligible educational institution as defined by Internal Revenue Code of 1986, §529, as amended, and including in certain instances the following:(A) In the case of a special needs beneficiary, \"qualified higher education expenses\" include expenses for special needs services that are incurred in connection with enrollment or attendance of the beneficiary at an eligible educational institution; and(B) To the extent permitted by Internal Revenue Code of 1986, §529, as amended, beneficiaries who live off-campus and not at home may include in \"qualified higher education expenses\" a reasonable room and board allowance as determined by the eligible educational institution, and beneficiaries who live on campus may include in \"qualified higher education expenses\" the actual invoice amount that is charged for room and board, if that amount is greater than the allowance.(8) Qualified withdrawal--A withdrawal from a savings trust account to pay the qualified higher education expenses of the beneficiary of the account.(9) Savings trust account--An account that an owner establishes through the savings plan under this subchapter and Education Code, Chapter 54, Subchapter G, on behalf of a beneficiary for the purpose of applying distributions from the account toward qualified higher education expenses at eligible educational institutions.(10) Savings trust agreement--The agreement between the owner that establishes a savings trust account and the board, which may be amended over time.",
            "sourceNote": "Source Note: The provisions of this §7.101 adopted to be effective July 14, 2002, 27 TexReg 6044; amended to be effective June 27, 2012, 37 TexReg 4597; amended to be effective October 4, 2018, 43 TexReg 6454; amended to be effective April 5, 2020, 45 TexReg 2316."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95318&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "95318",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "K",
                "label": "HIGHER EDUCATION SAVINGS PLAN"
            },
            "rule": {
                "number": "§7.102",
                "label": "General Provisions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209184&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "209184",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Applicability of this subchapter. This subchapter applies to each savings trust agreement.(b) Rights of owners and beneficiaries. The rights of an owner or a beneficiary under a savings trust agreement are subject to:(1) Education Code, Chapter 54, Subchapter G;(2) this subchapter; and(3) the terms and conditions of that agreement.(c) Composition and content of savings trust agreements.(1) The savings trust agreement between the board and an owner consists of:(A) the application for enrollment that the owner submitted to the plan manager that has custody of the owner's savings trust account; and(B) the master agreement for the savings plan, except when the agreement irreconcilably conflicts with Education Code, Chapter 54, Subchapter G; Internal Revenue Code of 1986, §529, as amended; regulations thereunder; or this subchapter.(2) The savings trust agreement between the board and an owner is governed by:(A) the terms of the agreement;(B) this subchapter;(C) Education Code, Chapter 54, Subchapter G, and any other applicable law of this state; and(D) Internal Revenue Code of 1986, §529, as amended, regulations thereunder, and any other applicable federal law.(3) The savings trust agreement between the board and an owner must contain the information that is required by Education Code, §54.707(c) and §54.709(d).(d) Conflicts between Education Code, Chapter 54, Subchapter G, and the Internal Revenue Code of 1986, §529, as amended, or this subchapter and the master agreement. To the extent of irreconcilable conflict, the provisions of Internal Revenue Code of 1986, §529, as amended, and regulations thereunder; Education Code, Chapter 54, Subchapter G; and this subchapter prevail over the master agreement for the savings plan. The agreement is at all times subject to this subchapter. Any amendment to Internal Revenue Code of 1986, §529; Education Code, Chapter 54, Subchapter G; or this subchapter that would apply to the savings plan, a savings trust agreement, or a savings trust account will automatically constitute an amendment to the savings trust agreement.(e) Disclosures and promotion of the plan.(1) Every savings trust agreement, deposit slip, or similar document that is used in connection with a contribution to a savings trust account must clearly indicate that:(A) the account is not insured by this state; and(B) neither the principal that is deposited nor the investment return is guaranteed by this state.(2) The promotional material or other savings plan information that is distributed to an owner or beneficiary shall disclose that:(A) no money that is invested in the savings plan is insured by this state; and(B) neither the principal that is deposited nor the investment return is guaranteed by this state.(3) The promotional material or other savings plan information that is provided to the public, an owner, or a beneficiary must disclose the administrative fees and service charges that are imposed under Education Code, Chapter 54, Subchapter G.(4) The promotion of or other form of disclosure of information about the savings plan to an owner or a beneficiary must be done in a manner that is consistent with:(A) Education Code, Chapter 54, Subchapter G; and(B) Internal Revenue Code of 1986, §529, as amended.(5) No plan manager, financial institution, or person who acts on behalf of either shall make any representation that is inconsistent with the requirements and limitations of this subchapter, or that is otherwise misleading with respect to any attribute of the savings plan, a savings trust agreement, or a savings trust account.",
            "sourceNote": "Source Note: The provisions of this §7.102 adopted to be effective July 14, 2002, 27 TexReg 6044."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209184&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "209184",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "K",
                "label": "HIGHER EDUCATION SAVINGS PLAN"
            },
            "rule": {
                "number": "§7.103",
                "label": "Tax Benefits and Securities Laws Exemptions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95320&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "95320",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Intent to satisfy tax exempt requirements. This subchapter, the savings plan, each savings trust agreement, and each savings trust account hereunder are intended to satisfy all requirements of:(1) Internal Revenue Code, §529, and regulations thereunder; and(2) federal securities laws.(b) Media for making payments to savings trust accounts. Any payment of an amount due to a savings trust account under a savings trust agreement must be made in cash or by electronic funds transfer.(c) Excess contributions prohibited.(1) The maximum contribution limit for a savings trust account shall be determined and published annually and shall be equal to the lesser of seven times the cost of one year of undergraduate tuition, room, board, and required fees, as determined and published for financial aid purposes, at a U.S. eligible educational institution that the board determines to be among the highest cost U.S. undergraduate eligible educational institutions, with the sum so computed then being rounded down to the nearest $5,000 increment; or a lesser amount determined by the board. The amount of money that may be contributed to a savings trust account shall be subject to the limit imposed under Internal Revenue Code, §529, taking into account the aggregation described in paragraph (3) of this subsection. To the extent that a contribution exceeds the amount otherwise permitted by this section, such excess will be promptly refunded, without interest or earnings, to the account's owner. A savings trust account for a designated beneficiary that has reached the maximum contribution limit may continue to accrue investment earnings. In the event that the board does not determine the maximum contribution limit for any year, the maximum contribution limit in effect during the previous year will continue in effect.(2) The plan manager shall monitor contributions to each savings trust account that is in the manager's custody, to ensure compliance with this subsection and any other applicable limits on contributions. The plan manager shall maintain records to ensure that the amounts paid or contributed on behalf of each designated beneficiary are not in excess of the funds required to meet the qualified higher education expenses of the beneficiary pursuant to Internal Revenue Code, §529(b)(6).(3) In application of these rules, the plan manager shall determine whether the beneficiary of a savings trust account is the beneficiary of any other qualified tuition program under Internal Revenue Code, §529, that is maintained by the state, and shall enforce the foregoing limitation on contributions by aggregating, as appropriate, the contributions to all prepaid tuition contracts and the contributions to all savings trust accounts maintained by the state for the same designated beneficiary. For purposes of this paragraph, any qualified rollover under Internal Revenue Code, §529, from another qualified tuition program of this state into a savings trust account for the same designated beneficiary shall not be treated as a new contribution to the savings trust account.(d) Separate accountings. A plan manager shall maintain a separate accounting for each savings trust account in the manager's custody.(e) Investment and earnings control prohibited. Except as provided in §7.106(f) of this title (relating to Plan Managers), neither the owner of a savings trust account nor the beneficiary of that account may control or direct the investment of:(1) the principal of the account; or(2) any earnings of the account.(f) Pledge of interest as security prohibited. Neither the owner of a savings trust account nor the beneficiary of that account may:(1) assign any interest in the account for the benefit of a creditor;(2) use any interest in the account as security or collateral for a loan or other obligation; or(3) otherwise alienate, sell, transfer, assign, pledge, encumber, or charge any interest in the account.(g) Reports. A plan manager shall make reports that are required by:(1) Internal Revenue Code, §529; and(2) any other applicable tax law.(h) Policies and procedures. Except where in conflict with Education Code, Chapter 54, Subchapter G, or this subchapter, the board may adopt any policy or procedure, and such policy or procedure automatically amends each outstanding savings trust agreement as necessary for:(1) the savings plan to obtain or maintain qualification as a qualified tuition program under Internal Revenue Code, §529;(2) owners and beneficiaries to obtain or maintain the federal income tax benefits or favorable treatment that is provided by Internal Revenue Code, §529; or(3) the savings plan to obtain or maintain exemption from registration under federal securities laws.",
            "sourceNote": "Source Note: The provisions of this §7.103 adopted to be effective July 14, 2002, 27 TexReg 6044; amended to be effective May 13, 2008, 33 TexReg 3775; amended to be effective June 6, 2022, 47 TexReg 3271."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95320&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "95320",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "K",
                "label": "HIGHER EDUCATION SAVINGS PLAN"
            },
            "rule": {
                "number": "§7.104",
                "label": "Enrollment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95321&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "95321",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Enrollment period. The savings plan will have an open, continuous enrollment period.(b) Date on which applications for enrollment are considered to have been received. For purposes of this section:(1) if an application for enrollment has an official postmark date that is affixed by the United States Postal Service, a plan manager is considered to have received the application on the earlier of:(A) the official postmark date; or(B) the date that is reflected on the date stamp to the application or equivalent documentation that evidences actual receipt of the application by the plan manager; or(2) if an application for enrollment does not have an official postmark date that is affixed by the United States Postal Service, a plan manager is considered to have received the application on the date that is reflected on the date stamp to the application or equivalent documentation that evidences actual receipt of the application by the plan manager.(c) Limitations on enrollment. The board may limit enrollment in the savings plan as the board considers necessary.(d) Opening of savings trust account. A prospective owner may open a savings trust account if:(1) the prospective owner enters into a savings trust agreement with the board;(2) the prospective owner makes the minimum contribution that the plan manager that has custody of the account requires; and(3) the maintenance and funding of the account would not cause excess contributions in violation of §7.103(c) of this title (relating to Excess Contributions Prohibited).",
            "sourceNote": "Source Note: The provisions of this §7.104 adopted to be effective July 14, 2002, 27 TexReg 6044."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95321&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "95321",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "K",
                "label": "HIGHER EDUCATION SAVINGS PLAN"
            },
            "rule": {
                "number": "§7.105",
                "label": "Administrative Fees and Service Charges"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=156959&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "156959",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "To be determined in consultation with the selected plan manager(s).",
            "sourceNote": "Source Note: The provisions of this §7.105 adopted to be effective July 14, 2002, 27 TexReg 6044."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=156959&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "156959",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "K",
                "label": "HIGHER EDUCATION SAVINGS PLAN"
            },
            "rule": {
                "number": "§7.106",
                "label": "Plan Managers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95323&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "95323",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Access to books and records. A plan manager shall provide the comptroller with access to the books and records of the manager as the comptroller determines necessary to assess the manager's compliance with Education Code, Chapter 54, Subchapter G, this subchapter, the savings trust agreement, or the contract between the board and the manager.(b) Savings trust accounts. A plan manager shall hold each savings trust account in trust. Notwithstanding the foregoing, the Texas Trust Code does not apply to a savings trust agreement or a savings trust account.(c) Investments. A plan manager shall ensure that each investment by the manager is made with the judgment and care that a person of prudence, discretion, and intelligence would exercise in the management of the property of another, not in regard to speculation but in regard to the permanent disposition of funds, with consideration of the probable income as well as the probable safety of capital.(d) Marketing of savings plan.(1) A plan manager shall develop a strategy to market the savings plan and present the strategy to the executive director for review. If the executive director approves the strategy, the manager shall fully implement that strategy.(2) A plan manager may contract with a financial institution to market the savings plan on behalf of the manager.(e) Account services. A plan manager may contract with a financial institution to provide account services to the owner of a savings trust account that the manager administers. The institution may charge a fee or commission for those services.(f) Investment alternatives. The plan manager, under board supervision, may formulate a variety of alternative investment strategies for savings trust accounts, so long as such strategies are consistent with the board's investment policy and with the requirements and limitations of Internal Revenue Code of 1986, §529, as amended, and the regulations thereunder. An owner is entitled to select a strategy from among such alternatives, as permitted by Internal Revenue Code of 1986, §529, as amended.(g) Board review. From time to time, and in accordance with procedures that the board establishes, the board shall review, monitor, and audit the actions of the plan manager and financial institutions, as described in subsections (c), (d), (e), and (f) of this section and without impairment to any other right that the board may have to terminate a contract with a plan manager, may terminate the contract with a plan manager or withdraw its approval to any of the above matters, if in its judgment the board finds that continuation of that contract or the continued approval is not in the best interests of the owners and beneficiaries, so long as such action is consistent with rights and obligations of the board under the savings trust agreement.",
            "sourceNote": "Source Note: The provisions of this §7.106 adopted to be effective July 14, 2002, 27 TexReg 6044; amended to be effective June 27, 2012, 37 TexReg 4598."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95323&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "95323",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "K",
                "label": "HIGHER EDUCATION SAVINGS PLAN"
            },
            "rule": {
                "number": "§7.107",
                "label": "Beneficiaries"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95324&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "95324",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Any individual may be the beneficiary of a savings trust account, including the owner of that account.",
            "sourceNote": "Source Note: The provisions of this §7.107 adopted to be effective July 14, 2002, 27 TexReg 6044."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95324&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "95324",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "K",
                "label": "HIGHER EDUCATION SAVINGS PLAN"
            },
            "rule": {
                "number": "§7.108",
                "label": "Roll-Overs"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95325&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "95325",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "In the case of a roll-over contribution from another qualified tuition plan into a savings trust account, the board shall require that the owner provide additional information and certifications to confirm that the contribution is a qualified roll-over under Internal Revenue Code §529, as amended, and to properly specify that portion of the contribution that is attributable to the investment in the account that was maintained under the previous qualified tuition program and that portion of the contribution that is attributable to earnings that were accumulated in that account.",
            "sourceNote": "Source Note: The provisions of this §7.108 adopted to be effective July 14, 2002, 27 TexReg 6044."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95325&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "95325",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "K",
                "label": "HIGHER EDUCATION SAVINGS PLAN"
            },
            "rule": {
                "number": "§7.109",
                "label": "Owners"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=156960&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "156960",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A savings trust account may only be established with one owner at the time it is opened, and thereafter shall have only one owner except when owned by more than one individual, trust, estate, or UGMA/UTMA custodian, guardian, corporation, non-profit entity, or other legal entity  (or any combination thereof) as a result of a transfer by operation of law.",
            "sourceNote": "Source Note: The provisions of this §7.109 adopted to be effective July 14, 2002, 27 TexReg 6044."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=156960&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "156960",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "K",
                "label": "HIGHER EDUCATION SAVINGS PLAN"
            },
            "rule": {
                "number": "§7.110",
                "label": "Replacement of Beneficiary"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95315&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "95315",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Criteria for being a qualified replacement beneficiary. An individual may be the qualified replacement beneficiary of a savings trust agreement if:(1) the individual is a member of the family of the former beneficiary who satisfies the requirements of Internal Revenue Code of 1986, §529(e)(2), as amended, so that the change of beneficiary is not treated as a distribution under that law; and(2) documentation that evidences the relationship between the individual and the former beneficiary is submitted to the plan manager that has custody of the savings trust account.(b) Conditions for replacement of beneficiary. The owner of a savings trust agreement may replace the beneficiary of that agreement with another individual only if:(1) the individual is a qualified replacement beneficiary as described in subsection (a) of this section; and(2) the owner pays to the plan manager that has custody of the savings trust account any fees that are required under the board's administrative fee and service charge schedule.(c) Notwithstanding subsections (a) and (b) of this section, an account owner that is a state or local government entity (or agency or instrumentality thereof) or an organization described in Internal Revenue Code of 1986, §501(c)(3), and exempt from taxation under §501(a) of that code as part of a scholarship program operated by such government or organization, may replace the beneficiary of a savings trust agreement regardless of whether the replacement beneficiary is a member of the family of the former beneficiary.",
            "sourceNote": "Source Note: The provisions of this §7.110 adopted to be effective July 14, 2002, 27 TexReg 6044; amended to be effective June 27, 2012, 37 TexReg 4598."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95315&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "95315",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "K",
                "label": "HIGHER EDUCATION SAVINGS PLAN"
            },
            "rule": {
                "number": "§7.111",
                "label": "Withdrawals"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=192385&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "192385",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) General provisions. The owner of a savings trust account may withdraw any amount from that account if:(1) the withdrawal is made in accordance with Education Code, Chapter 54, Subchapter G; this subchapter; and the applicable savings trust agreement;(2) the owner certifies to the appropriate plan manager the portion, if any, of the withdrawal that constitutes a nonqualified withdrawal if requested by the plan manager; and(3) the withdrawal would not adversely affect the tax status of the savings plan under applicable provisions of Internal Revenue Code of 1986, as amended. Notwithstanding the owner's certifications that are described in clause (2) above, the board may independently determine the extent to which any withdrawal constitutes a nonqualified withdrawal.(b) Responsibility of plan managers. A plan manager shall monitor withdrawals from each savings trust account in the manager's custody to ensure compliance with any applicable limitations on withdrawals.(c) Examples of particular types of withdrawals. The circumstances under which a withdrawal is authorized include the following.(1) If the beneficiary of a savings trust agreement receives a full or partial scholarship for tuition and required fees, the owner of the agreement may withdraw the amount of the scholarship from the savings trust account. A withdrawal under this paragraph may occur:(A) only as each academic term occurs; and(B) only if proof of the scholarship is submitted to the plan manager that has custody of the account, in a form that is acceptable to the plan manager.(2) If the beneficiary of a savings trust agreement dies or becomes disabled:(A) The owner of the agreement may withdraw the entire balance of the savings trust account or replace the deceased or disabled beneficiary with a qualified replacement beneficiary as provided in §7.110 of this title (relating to Replacement of Beneficiary).(B) If the owner of the agreement requests a withdrawal, the appropriate plan manager shall pay the withdrawal to the owner not later than the 60th day after the date on which the plan manager receives proof of the death or disability in a form that is acceptable to the plan manage.",
            "sourceNote": "Source Note: The provisions of this §7.111 adopted to be effective July 14, 2002, 27 TexReg 6044."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=192385&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "192385",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "L",
                "label": "PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II"
            },
            "rule": {
                "number": "§7.121",
                "label": "Application"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198984&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "198984",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) This subchapter applies to prepaid tuition contracts under the prepaid tuition unit undergraduate education program (Texas Tomorrow Fund II) to enable individuals to enter into a prepaid tuition contract with the board on behalf of a beneficiary for the purchase of one or more tuition units that the beneficiary is entitled to apply to the payment of the beneficiary's undergraduate tuition and required fees at an eligible educational institution.(b) Applications shall be made available through the Prepaid Tuition Unit Undergraduate Education Program, Office of the Comptroller of Public Accounts, P.O. Box 13407, Austin, Texas 78711-3407; 111 East 17th Street, Austin, Texas 78711-1440, or by calling toll-free at 1-800-445-4723 (GRAD), or as otherwise provided by the board on the board's Internet web site.(c) The rights of purchasers and beneficiaries are subject to the provisions of this subchapter, Education Code, Chapter 54, Subchapter H, Internal Revenue Code, §529, and the terms and conditions of the prepaid tuition contract. To the extent of irreconcilable conflict, the provisions of Internal Revenue Code, §529; Education Code, Chapter 54, Subchapter H; and this subchapter prevail over the prepaid tuition contract. Any amendment to Internal Revenue Code, §529; Education Code, Chapter 54, Subchapter H; or this subchapter that would apply to a prepaid tuition contract will automatically constitute an amendment to the prepaid tuition contract.",
            "sourceNote": "Source Note: The provisions of this §7.121 adopted to be effective August 27, 2008, 33 TexReg 6957; amended to be effective October 4, 2018, 43 TexReg 6455."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198984&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "198984",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "L",
                "label": "PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II"
            },
            "rule": {
                "number": "§7.122",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137751&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137751",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words, terms, and phrases, when used in this subchapter, shall have the following meanings:(1) Accredited out-of-state institution of higher education--A public or private institution of higher education that:(A) is located outside this state; and(B) is accredited by a recognized accrediting agency.(2) Beneficiary--The person designated under a prepaid tuition contract as the person entitled to apply one or more tuition units purchased under the contract to the payment of the person's undergraduate tuition and required fees at a general academic teaching institution, two-year institution of higher education, private or independent institution of higher education, medical and dental unit, career school, or accredited out-of-state institution of higher education.(3) Board--The Prepaid Higher Education Tuition Board.(4) Career school--A career school or college as defined by Education Code, §132.001 that offers a two-year associate degree as approved by the Texas Higher Education Coordinating Board.(5) Eligible educational institution--A general academic teaching institution, two-year institution of higher education, private or independent institution of higher education, medical and dental unit, career school, or accredited out-of-state institution of higher education, that qualify as eligible educational institutions under Internal Revenue Code, §529.(6) Enrollment period--The period established by the board during which a purchaser may enter into a contract with the board to purchase tuition units. The general enrollment period is September 1 through the end of February. For beneficiaries who are newborn infants under one year of age at the time of enrollment, the enrollment period is extended to cover the period of September 1 through July 31.(7) First payment due date--The date the first payment is due after enrolling in the program and establishing a new prepaid tuition contract. The first payment due date will be specified in the prepaid tuition contract. The first payment due date serves as the anniversary date for establishing the three-year holding period. The first payment due date may be changed subsequently by the board for future enrollment periods.(8) Fund--The Texas Tomorrow Fund II.(9) General academic teaching institution--Has the meaning assigned by Education Code, §61.003, except that the term does not include a public state college.(10) Matriculation--Enrollment as a member of the student body at an eligible educational institution.(11) Medical and dental unit, private or independent institution of higher education, public junior college, public state college, public technical institute, and recognized accrediting agency--Have the meanings assigned by Education Code, §61.003.(12) Paid in full--All the required payments for the tuition units and any assessed fees under the prepaid tuition contract have been received and credited to the account.(13) Pay-As-You-Go--Purchasing tuition units at the price in effect for that type of tuition unit on the day payment is received for the tuition unit. Pay-As-You-Go includes paying for tuition units with a lump sum payment or multiple lump sum payments, without being obligated to pay for any additional tuition units.(14) Plan manager--A professional investment manager that is under contract with the board to serve as a plan administrator and to invest the assets of the fund on behalf of the board.(15) Prepaid tuition contract--A contract under which a person purchases from the board on behalf of a beneficiary one or more tuition units that the beneficiary is entitled to apply to the payment of the beneficiary's undergraduate tuition and required fees at a general academic teaching institution, two-year institution of higher education, private or independent institution of higher education, medical and dental unit, career school, or accredited out-of-state institution of higher education.(16) Prepayment--Payment of the balance due or a portion of the balance due under a prepaid tuition contract, ahead of the schedule provided in the contract.(17) Program or Plan--The prepaid tuition unit undergraduate education program. The board may select a different name for the program or plan for marketing purposes.(18) Purchaser--A person who enters into a prepaid tuition contract with the board on behalf of a beneficiary for the purchase of one or more tuition units.(19) Redemption--The exchange of one or more tuition units to pay costs of tuition and required fees at an eligible educational institution.(20) Reduced Refund Value--The lesser of:(A) the amount paid by the purchaser or other contributor to purchase any unused tuition units under the contract; or(B) the amount paid by the Purchaser or other contributor to purchase any unused tuition units to be refunded under the contract, plus or minus the portion of the total net earnings or losses on assets of the Plan attributable to that amount.(21) Refund Value--An amount equal to the total purchase price of the unused tuition units to be refunded from the account, plus annual net earnings on the contributions made to the account to purchase the tuition units that are being refunded (including any negative returns), with the earnings rate to be set by the board at a rate that is up to two percent less than the actual investment return for the fund for each of the years the contract is in effect, provided that in no event shall the annual net earnings on the contributions ever exceed five percent annually, and provided further that for any year in which the investment return does not support payment of any earnings, the board may elect not to credit and pay any earnings on the contributions, to preserve the actuarial soundness of the fund. Refund Value shall not be less than Reduced Refund Value that would have been paid if the Tuition Units had been held for less than three years. Refund Value does not include any state provided or procured matching contributions or any earnings on State provided or procured matching contributions.(22) Required fee--A fee, other than a laboratory fee for a specific course, that is charged by a public or private institution of higher education to all students at the institution who are not exempt from the fee. For purposes of this subdivision, a fee is a required fee only to the extent that the fee is considered a qualified higher education expense under Internal Revenue Code, §529. Required fees are generally those fees imposed on all students as a condition of enrollment. Required fees do not include fees such as equipment usage fees required for particular courses, charges for room and board, book costs, or any optional fees.(23) Sales period--The year long period from September 1 through August 31 during which a purchaser who has established a prepaid tuition contract may make purchases under the contract at the price(s) established under the contract, or at the price established for tuition units applicable to the sales period if additional tuition units are purchased during the sales period.(24) Three-year holding period--The period of time that must transpire before a beneficiary or purchaser may redeem a tuition unit to pay for qualified higher education expenses, as provided under §7.125(g) of this title (relating to Redemption of Tuition Units).(25) Transfer value--The value of the prepaid tuition contract at the time of transfer, that is the lesser of:(A) an amount equal to the cost, at the time of the transfer, of the tuition and required fees that would be covered by redemption of the number and type of tuition units to be transferred from the account (but not including any units resulting from any State provided or procured matching funds) if the beneficiary were redeeming the units at a general academic teaching institution or two-year institution of higher education as follows:(i) for a Type I unit, at the general academic teaching institution that had the highest tuition and required fee cost;(ii) for a Type II unit, at a general academic teaching institution that had tuition and required fee cost at the weighted average; and(iii) for a Type III unit, at a two-year institution of higher education that had tuition and required fee cost at the weighted average; or(B) an amount equal to the current market value of the unused tuition units to be transferred from the account, which is an amount equal to the total purchase price of the unused tuition units to be transferred from the account (but not including any state provided or procured matching contributions), plus the portion of the total net earnings on assets of the Fund attributable to that amount (including any negative returns), but not including any earnings on state provided or procured matching contributions, as determined by the plan manager.(26) Tuition--The charges imposed by a general academic teaching institution, two-year institution of higher education, private or independent institution of higher education, medical and dental unit, career school, or accredited out-of-state institution of higher education, on undergraduates as a condition of enrollment, which are identified by such institution as tuition.(27) Tuition unit--A portion of the cost of undergraduate resident tuition and required fees that may be prepaid, whose assigned value, when used to pay the cost of tuition and required fees at an eligible educational institution, is equal to:(A) for a Type I tuition unit, one percent of the cost of undergraduate resident tuition and required fees for one academic year consisting of 30 semester hours charged by the general academic teaching institution with the highest such tuition and fee costs for the academic year in which the unit is redeemed, determined as provided by Education Code, §54.753(d);(B) for a Type II tuition unit, one percent of the weighted average cost of undergraduate resident tuition and required fees for one academic year consisting of 30 semester hours charged by general academic teaching institutions for the academic year in which the unit is redeemed, determined as provided by Education Code, §54.753(e); or(C) for a Type III tuition unit, one percent of the weighted average cost of undergraduate resident tuition and required fees for one academic year consisting of 30 semester hours charged by two-year institutions of higher education for the academic year in which the unit is redeemed, determined as provided by Education Code, §54.753(f).(28) Two-year institution of higher education--A public junior college, a public state college, and a public technical institute, as those terms are defined in Education Code, §61.003.(29) Weighted average--Has the meaning:(A) for Type II tuition units, a weighted average cost for undergraduate resident tuition and required fees of general academic teaching institutions for the applicable academic year, computed by the method specified in Education Code, §54.753(e); and(B) for Type III tuition units, a weighted average cost for undergraduate resident tuition and required fees of two-year institutions of higher education for the applicable academic year, computed by the method specified in Education Code, §54.753(f).",
            "sourceNote": "Source Note: The provisions of this §7.122 adopted to be effective August 27, 2008, 33 TexReg 6957; amended to be effective September 21, 2010, 35 TexReg 8503; amended to be effective April 5, 2020, 45 TexReg 2317."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137751&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137751",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "L",
                "label": "PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II"
            },
            "rule": {
                "number": "§7.123",
                "label": "Tax Exempt Status Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137752&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137752",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The provisions of this section are intended to meet the requirements of Internal Revenue Code, §529.(b) A payment of an amount due to the fund for a prepaid tuition contract must be made in cash or cash equivalent. A person may not make a payment to the fund (regardless of whether such payment is a direct purchase, gift, contribution under the Texas Save & Match program, or other payment) to the extent that any such payment with respect to a beneficiary, when aggregated with the other Internal Revenue Code, 529 Plans for such beneficiary, would exceed the contribution limits of Internal Revenue Code, §529.(c) The plan manager will monitor contributions to and withdrawals from the fund and any account within the fund to ensure that any applicable limits on contributions or withdrawals are not exceeded.(d) The plan manager shall maintain a separate accounting for each beneficiary.(e) The plan manager shall determine the earnings portion of each distribution, if any, in accordance with methods that are consistent with Internal Revenue Code, §529.(f) The plan manager shall report the earnings portion of any distribution or refund on a statement to the purchaser or other distributee as appropriate, and to the Secretary of the United States Treasury, as may be required by the Internal Revenue Code, §529.(g) The purchaser and beneficiary under the prepaid tuition contract, and any other contributor, may not:(1) control or direct the investment of payments under the contract or any earnings of the fund; or(2) use any interest in the contract as security or collateral for a loan or other obligation.(h) The board and plan manager shall make such reports as the Secretary of the United States Treasury may require to maintain compliance with Internal Revenue Code, §529.(i) Policies and procedures. As authorized under Education Code, Chapter 54, Subchapters F, G, and H, the board may adopt any policy or procedure, and such policy and procedure automatically amends each outstanding prepaid tuition contract, as necessary for:(1) the prepaid tuition contract to obtain or maintain qualification as a qualified tuition program under Internal Revenue Code, §529;(2) purchasers and beneficiaries to obtain and maintain the federal income tax benefits or favorable treatment that is provided by Internal Revenue Code, §529; or(3) the prepaid tuition contract to obtain or maintain exemption from registration under federal securities law. If outstanding prepaid tuition contracts are automatically amended as a result of this rule, purchasers will be notified of the amendment through the Internet web site of the program.",
            "sourceNote": "Source Note: The provisions of this §7.123 adopted to be effective August 27, 2008, 33 TexReg 6957."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137752&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137752",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "L",
                "label": "PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II"
            },
            "rule": {
                "number": "§7.124",
                "label": "Prepaid Tuition Units: Purchase; Assigned Value; Types; Price"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198985&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "198985",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Under the program, a purchaser may prepay the costs of all or a portion of a beneficiary's undergraduate tuition and required fees at an eligible educational institution by entering into a prepaid tuition contract with the board to purchase one or more tuition units of a type described by this section at the applicable price established by the board for that type of unit for the year in which the unit is purchased.  (1) The portion of the beneficiary's undergraduate tuition and required fees for which a tuition unit may be redeemed is assigned to the tuition unit at the time of purchase.  (2) Tuition unit(s) may be redeemed to pay that portion of the tuition and fees at the general academic teaching institution or two-year institution of higher education in any academic year in which the unit is redeemed in accordance with this subchapter.  (3) The purchaser may purchase one type of unit or a combination of two or three types of units.  (b) The assigned value of a tuition unit, purchased as provided by this section, when used to pay the cost of tuition and required fees, is equal to one percent of the amount necessary for the academic year in which the unit is redeemed to cover the applicable cost of undergraduate resident tuition and required fees for one academic year consisting of 30 semester credit hours as follows:  (1) for a Type I tuition unit, the cost of undergraduate resident tuition and required fees charged by the general academic teaching institution with the highest such tuition and fee costs, determined as provided by subsection (d) of this section;  (2) for a Type II tuition unit, the weighted average undergraduate resident tuition and required fees charged by general academic teaching institutions, determined as provided by subsection (e) of this section; and  (3) for a Type III tuition unit, the weighted average undergraduate resident tuition and required fees of two-year institutions of higher education, determined as provided by subsection (f) of this section.  (c) Each year, the board will establish the price at which each type of tuition unit may be purchased during the next sales period and the percentage of the total cost of undergraduate resident tuition and required fees for one academic year consisting of 30 semester credit hours for which each type of tuition unit may be redeemed at each general academic teaching institution and two-year institution.  (1) The percentage will be based on the total cost of required tuition and fees at a particular general academic teaching institution or two-year institution of higher education in relation to the amount determined for the institution with the highest cost or weighted average cost, as applicable.  (2) The purchase price established for each type of unit will be equal to the applicable cost of tuition and required fees as determined under this section for the most recent academic year that began before the beginning of the sales period.  (3) The sales period to which those prices apply expires on the first anniversary of the date the units become available for purchase at the prices established for that year.  (4) Revisions to the purchase price established for each type of unit will be published in the Texas Register  and on the board's Internet web site and shall apply to prepaid tuition contracts entered into on or after the effective date for the new price set by the board.  (d) The board shall base the purchase price of a Type I tuition unit on one percent of the cost of the undergraduate resident tuition and required fees for the applicable academic year at the general academic teaching institution with the highest such tuition and fee cost for that academic year.  (e) The board shall base the purchase price of a Type II tuition unit on one percent of the cost of the Weighted Average tuition and required fees of general academic teaching institutions for the applicable academic year. That cost is determined by:  (1) for each general academic teaching institution, multiplying the average amount of the institution's undergraduate resident tuition and required fees for an academic year consisting of 30 semester credit hours by the number of full-time equivalent undergraduate resident students at that institution;  (2) adding together the products computed under paragraph (1) of this subsection, for each institution; and  (3) dividing the sum determined under paragraph (2) of this subsection, by the total number of full-time equivalent undergraduate resident students at all general academic teaching institutions.  (f) The board shall base the purchase price of a Type III tuition unit on one percent of the cost of the Weighted Average tuition and required fees of two-year institutions of higher education for the applicable academic year, disregarding any portion of the tuition charged by a public junior college to a resident of this state who does not reside within the taxing jurisdiction of the junior college. That cost is determined by:  (1) for each two-year institution of higher education, multiplying the average amount of the institution's undergraduate resident tuition and required fees for an academic year consisting of 30 semester credit hours by the number of full-time equivalent undergraduate resident students at that institution;  (2) adding together the products computed under paragraph (1) of this subsection, for each institution; and  (3) dividing the sum determined under paragraph (2) of this subsection, by the total number of full-time equivalent undergraduate resident students at all two-year institutions of higher education.  (g) For the purposes of determining the cost of tuition and required fees at an eligible educational institution, if the tuition and required fees vary at an institution by the particular college or program area at the institution or campus, the tuition and required fees for those programs will be considered separately in calculating the weighted average costs for Type II and III tuition units and the price for Type I tuition units.  (h) The board will establish, in compliance with Internal Revenue Code, §529, the minimum amount that the purchaser is required to pay under the contract on behalf of a single beneficiary. The initial minimums set forth in this subsection may be periodically changed by the board as needed to maintain compliance with Internal Revenue Code, §529, or to maintain the actuarial soundness of the fund.  (1) The minimum number of tuition units that must be purchased to establish a new prepaid tuition contract using a Pay-As-You-Go purchase is one. Additional tuition units or fractional units may be added to an existing prepaid tuition contract by periodic Pay-As-You-Go purchases of a minimum of $15 each.  (2) The minimum number of tuition units that must be contracted for purchase to establish a new prepaid tuition contract using an installment plan is 25 Type I tuition units or 50 Type II or III tuition units. Additional tuition units or fractional units beyond the initial installment contract amount may be purchased by periodic Pay-As-You-Go purchases of a minimum of $15 each and credited to the same beneficiary in a new or amended contract under the existing enrollment. The purchaser does not have to wait until a new enrollment period to add tuition units through Pay-As-You-Go purchases.  (3) The minimum for an Automated Clearing House (ACH) payment is $15.  (i) The maximum number of tuition units that may be purchased and assigned to a single beneficiary is 600 Type I units or an approximate equivalent in Type II or III units.  (j) At the time of the establishment of the account to which a purchaser's prepaid tuition contract money is assigned, the board may impose an administrative fee not to exceed $25. The administrative fee may be imposed only once for an account established for the same purchaser and beneficiary, regardless of the number of account upgrades, contracts, or payment plans later established by the purchaser for that same beneficiary. Money from that fee will be used directly in maintaining the actuarial soundness of the fund as required by Education Code, §54.770.",
            "sourceNote": "Source Note: The provisions of this §7.124 adopted to be effective August 27, 2008, 33 TexReg 6957."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198985&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "198985",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "L",
                "label": "PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II"
            },
            "rule": {
                "number": "§7.125",
                "label": "Redemption of Tuition Units"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137754&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137754",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In accordance with this subchapter, when a beneficiary under a prepaid tuition contract redeems tuition units to pay costs of tuition and required fees, the board shall apply money in the Fund, in the amount provided by Education Code, §54.765, to pay all or the applicable portion of the costs of the beneficiary's tuition and required fees at the general academic teaching institution, two-year institution of higher education, private or independent institution of higher education, medical and dental unit, career school, or accredited out-of-state institution of higher education in which the beneficiary enrolls.(1) Subject to subsection (c)(2) of this section, and the other provisions of this section, a beneficiary may redeem any type of tuition unit or partial tuition unit for attendance at an institution described by this section.(2) A general academic teaching institution or two-year institution of higher education shall accept the amount transferred to the institution under Education Code, §54.765(c), when the unit or units are redeemed as payment for all or the applicable portion of the beneficiary's tuition and required fees.(b) To pay for the entire cost of undergraduate resident tuition and required fees for an academic year consisting of 30 semester credit hours:(1) redemption of 100 Type I tuition units (or an approximate equivalent amount of Type II or III units) is required at the general academic teaching institution with the highest tuition and fee cost as described by Education Code, §54.753(d);(2) redemption of 100 Type II tuition units (or an approximate equivalent amount of Type I or III units) is required at a general academic teaching institution with the applicable tuition and fee cost at the Weighted Average as described by Education Code, §54.753(e); and(3) redemption of 100 Type III units (or an approximate equivalent amount of Type I or II units) is required at a two-year institution of higher education with the applicable tuition and fee cost at the Weighted Average as described by Education Code, §54.753(f).(c) The number of tuition units that must be redeemed to pay for the entire cost of tuition and required fees for an academic year at another general academic teaching institution or two-year institution of higher education may be higher or lower:(1) in proportion to the amount that the cost of tuition and required fees at that institution is higher or lower than the amount determined for the institution with the highest cost or Weighted Average cost, as applicable; or(2) if a more or less valuable type of tuition unit is redeemed.(d) To assist purchasers in determining the number of tuition units a beneficiary must redeem to cover the costs of tuition and required fees at general academic teaching institutions and two-year institutions of higher education, each year the board shall prepare a tuition unit redemption chart and will post the chart on the board's Internet website. The chart will show for each general academic teaching institution and for each two-year institution of higher education the number of each type of units purchased that year that would be required to cover the cost of tuition and required fees, based on an academic year consisting of 30 semester credit hours.(1) The exact amount of tuition units that will be required to attend a particular institution will depend upon the cost of tuition and required fees at the institution in the year of redemption.(2) For Type I tuition units, the number of units required to attend a particular institution may be less than anticipated when purchased if that institution's costs are less than the general academic teaching institution with the highest tuition and fee cost in the year of redemption.(3) For Type II and III tuition units, the number of units required to attend a particular institution may be more or less than anticipated when purchased, and will depend on whether that institution's costs are higher or lower than the Weighted Average cost in the year of redemption. To the extent the cost of a particular institution is higher than the Weighted Average cost, the beneficiary will have to redeem additional tuition units to cover the higher cost, or pay the amount of the difference as provided in subsection (e) of this section.(e) If a beneficiary redeems fewer tuition units of the type or combination of types necessary to pay the total cost of the beneficiary's tuition and required fees at the general academic teaching institution, two-year institution of higher education, private or independent institution of higher education, medical and dental unit, career school, or accredited out-of-state institution of higher education at which the beneficiary enrolls, the beneficiary is responsible for paying the amount of the difference between the amount of tuition and required fees for which the beneficiary pays through the redemption of one or more tuition units and the total cost of the beneficiary's tuition and required fees at the institution.(f) A beneficiary who redeems Type III tuition units (or an approximate equivalent amount of Type I or II units) to attend a public junior college and who does not reside within the taxing jurisdiction of the junior college is responsible for paying any portion of the tuition charged by the junior college to persons who do not reside within that taxing jurisdiction.(g) A beneficiary or purchaser may not redeem a tuition unit earlier than the third anniversary of the date the unit was purchased.(1) For the purpose of calculating the three-year holding period for an initial Pay-As-You-Go purchase, the first payment due date after initially enrolling in the program is considered the date the initial units were purchased. These units may not be redeemed to pay for tuition and required fees until the third anniversary after the payment due date.(2) For installment plan payments, the three-year holding period is considered met if the purchaser enrolls in the program and the first payment due date is at least three years prior to any redemption of tuition units, and the installment plan is paid in full before redemption of any of the tuition units.(3) Additional Pay-As-You-Go purchases start a new three-year holding period as of the date payment is received for the additional tuition units.(4) Under the three-year holding period, the latest date that a purchaser could purchase tuition units to pay for a semester of undergraduate education using Pay-As-You-Go purchases is three years prior to the date of expected redemption of the tuition units, subject to the requirement that all tuition units under the contract must be used not later than the 10th anniversary of the date the beneficiary is projected to graduate from high school, not counting time spent by the beneficiary as an active duty member of the United States armed services.(5) If all of the tuition units in an account do not meet the three-year holding period, the purchaser may redeem those units or fractional units that meet the three-year holding period, and redeem the remaining tuition units in the account when the three-year holding period is met.(h) A beneficiary may redeem more than 100 tuition units in one academic year of the type or combination of types as needed to pay the total cost of the beneficiary's tuition and required fees at an eligible educational institution.(i) To accommodate part-time attendance or the enrollment in more or less semester hours than the contemplated 30 credit hours in an academic year, the board may calculate a per credit hour tuition unit cost for the eligible educational institution applicable to the year of redemption, whereby the number of tuition units required to be redeemed shall be in proportion to the amount that tuition and required fees to be charged to the beneficiary by the eligible educational institution are more or less costly than the cost for attending two semesters of 15 credit hours each or 30 total credit hours in an academic year.(j) A beneficiary may redeem fractional tuition units as needed to pay the cost of the beneficiary's tuition and required fees at an eligible educational institution.",
            "sourceNote": "Source Note: The provisions of this §7.125 adopted to be effective August 27, 2008, 33 TexReg 6957; amended to be effective September 21, 2010, 35 TexReg 8503; amended to be effective April 5, 2020, 45 TexReg 2317."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137754&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137754",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "L",
                "label": "PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II"
            },
            "rule": {
                "number": "§7.126",
                "label": "Prepaid Tuition Contract"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137739&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137739",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) To apply for enrollment in the program, a purchaser shall complete and submit a prepaid tuition contract form, approved by the board.(b) A purchaser shall provide the following information on the form:(1) the name, address, social security number or tax identification number of the purchaser;(2) name, date of birth and social security number of the beneficiary, or in the case of a newborn, provide proof of an application for a social security number through the Social Security Administration;(3) the date the beneficiary is projected to graduate from high school;(4) a certification indicating that the purchaser is eligible to enroll in the program because either the beneficiary or a parent of the beneficiary is a resident of this state, as provided in §7.127 of this title (relating to Purchaser; Beneficiary);(5) how the purchaser intends to finance the prepaid tuition contract;(6) the name of any person who shall have a right of survivorship with respect to the purchaser's rights under the prepaid tuition contract;(7) the annual gross household income of the purchaser;(8) the highest educational level achieved by the purchaser;(9) the race or ethnicity of the beneficiary; and(10) how the purchaser first learned about the program.(c) The prepaid tuition contract shall specify:(1) the name, address, social security number or tax identification number of the purchaser;(2) the terms under which the purchaser must pay any amounts owed under the contract;(3) the consequences of default;(4) the name, date of birth, and social security number of the beneficiary under the contract, provided that the board may allow additional time for the purchaser to obtain the social security number of a newborn;(5) the terms under which another person may be substituted as the beneficiary;(6) the date the beneficiary is projected to graduate from high school;(7) the name of any person designated by the purchaser who shall have a right of survivorship with respect to purchaser's rights under the prepaid tuition contract;(8) the name of any person who may terminate or cancel the contract;(9) the terms under which the contract may be terminated or cancelled;(10) the terms under which the purchaser is entitled to a refund;(11) the method by which the amount of the refund is computed; and(12) other provisions the board considers necessary or appropriate.(d) The prepaid tuition contract may provide for the purchase of additional tuition units in subsequent years at the then-current price of the additional units.(e) The prepaid tuition contract may also provide for the purchase of additional units in subsequent years through the Texas Save and Match program or through gift or other contributions by persons on behalf of a beneficiary, at the then-current price of the additional units at the time a contribution is made.",
            "sourceNote": "Source Note: The provisions of this §7.126 adopted to be effective August 27, 2008, 33 TexReg 6957."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137739&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137739",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "L",
                "label": "PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II"
            },
            "rule": {
                "number": "§7.127",
                "label": "Purchaser; Beneficiary"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137740&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137740",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A purchaser may be any person who is permitted to be a purchaser under Internal Revenue Code, §529. The purchaser is not required to be a resident of this state, except as provided by subsection (d)(2) of this section.(b) A purchaser is the owner of the account to which the purchaser's prepaid tuition contract money is assigned.(c) A prepaid tuition contract may be established by one purchaser at the time it is established during enrollment, and thereafter it shall have only one purchaser as owner except when owned by more than one individual, trust, estate, or UGMA/UTMA custodian, guardian, corporation, non-profit entity, or other legal entity (or any combination thereof) as a result of a transfer by operation of law.(d) At the time the purchaser enters into a prepaid tuition contract, the beneficiary of the contract must be:(1) a resident of this state; or(2) a nonresident who is the child of a parent who is both a resident of this state and the purchaser of the contract.(e) Notwithstanding any provision of Education Code, Chapter 54, Subchapter B, tuition and required fees charged by a general academic teaching institution or two-year institution of higher education that are paid for with tuition units, shall be determined as if the beneficiary of that contract were a resident student.",
            "sourceNote": "Source Note: The provisions of this §7.127 adopted to be effective August 27, 2008, 33 TexReg 6957."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137740&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137740",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "L",
                "label": "PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II"
            },
            "rule": {
                "number": "§7.128",
                "label": "Contract Payment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137741&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137741",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Payments under prepaid tuition contracts may be made in single or periodic Pay-As-You-Go payments, or under an installment plan, or both. The first payment due date for a newly enrolled purchaser is May 1, or as may be otherwise established by the board for subsequent enrollment periods.(b) For payments under a contract to be made in installments over a period longer than one year, those payments can be made in annual, or monthly installments, in accordance with any permitted installment plans established by the board.(1) Monthly installment plans shall include as a minimum: monthly installments to matriculation, a 10-year installment plan, and a 5-year installment plan.(2) Annual installment plans include annual installments to matriculation, a 5-year installment plan, or a 10-year installment plan.(3) Installment payments shall be due on the 1st of the month.(4) Installment payments shall include an implied interest component at a rate set by the board to ensure the actuarial soundness of the fund.(5) Installment plans must be paid in full prior to redemption of any units purchased by the installment plan.(6) Under an installment plan, the basic unit price will not change over the life of the installment agreement, unless the agreement is later amended. The tuition unit price for new installment plans to be entered into during later enrollment periods will be adjusted by the board to reflect the then effective base tuition unit price and an updated implied interest component at a rate applicable to the new installment plans.(7) A purchaser may initially establish both an installment plan contract and a Pay-As-You-Go contract when enrolling in the program, but the contract payments will be tracked separately. The purchaser will receive one combined account statement reflecting all payments under the different payment plans for the same purchaser and same beneficiary.(c) There shall be no prepayment penalty imposed if a purchaser pays off an installment plan ahead of the schedule outlined in the prepaid tuition contract. Prepayments may result in a credit toward any monies due to reflect that the prepaid tuition contract was paid off early. Prepayments may be applied to reduce the outstanding contract balance, reduce the amount or number of monthly payments, or to make monthly payments ahead of schedule, at the option of the purchaser. In the absence of direction from the purchaser, prepayments will be applied to reduce the outstanding contract balance.(d) The price for tuition units purchased using Pay-As-You-Go payments shall be the tuition unit price established by the board in accordance with §7.124 of this title (relating to Prepaid Tuition Units: Purchase; Assigned Value; Types; Price), for the sales period in which the tuition unit was purchased. If additional Pay-As-You-Go payments are made to purchase additional tuition units under a pre-existing prepaid tuition contract, the prepaid tuition contract shall be automatically amended to incorporate the additional tuition units purchased and the additional tuition units shall be credited to the existing account.(e) A purchaser may make payments under a prepaid tuition contract by check, money order, electronic funds transfer, or payroll deduction. A purchaser may change payment methods. Credit cards may not be used to purchase tuition units.(f) A purchaser may make payments under a prepaid tuition contract by payroll deduction, under procedures developed by the board and the comptroller to facilitate payments.(1) To facilitate the establishment of payroll deductions by public employees, the board may extend the enrollment period as necessary to accommodate the employee benefit open enrollment period of the state or a political subdivision of the state during which payroll deductions are normally established.(2) A purchaser electing to make payments under a prepaid tuition contract by payroll deduction shall specify whether the payments should be applied to pay for purchases under an installment plan or to make regular Pay-As-You-Go purchases.(3) The purchase price for tuition units to be purchased by payroll deduction shall be based on:(A) for payments under an installment plan, the price in effect for the sales period when the first tuition unit payment is or was received, regardless of the date the employee enrolls in payroll deduction; or(B) for Pay-As-You-Go purchases, the price in effect for the sales period when each payment is actually received.(g) Upgrades. Upgrades to an existing prepaid tuition unit account are allowed. An upgrade of an account is defined as adding additional tuition units to the account beyond the units specified in the original or existing prepaid tuition contract, by amending the contract or adding a new contract to the account.(1) Pay-As-You-Go purchases of additional tuition units can be added to an existing Pay-As-You-Go contract without amending the contract. A new three-year holding period for tuition unit redemptions begins for new Pay-As-You-Go purchases.(2) Pay-As-You-Go purchases of additional tuition units can be added to an existing enrollment that has a pre-existing installment plan contract, at any time during the sales period. However, Pay-As-You-Go purchases will be under a new contract and tracked separately from the installment plan purchases for implementation of the three-year holding period. The purchaser will receive a single account statement reflecting all payment plans under the account.(3) The payment timeframe of an existing installment plan contract may be extended by contract amendment so long as the amended contract calls for payment in full prior to redemption of any of the tuition units. Other upgrades to an existing installment plan will also be performed by contract amendment.(4) An installment plan contract may be added to an existing account that is set up as a Pay-As-You-Go plan contract, but only during an enrollment period. The new installment plan will be considered a separate contract from the Pay-As-You-Go contract. The installment plan for additional units will be priced at the tuition unit prices in effect on the date when the plan manager receives and accepts a signed new contract from the purchaser to acquire the additional tuition units. Both payment plans will be reflected on a single account statement for the purchaser.(5) A purchaser can have multiple payment plans in a single beneficiary account but the aggregate amount should not exceed the limit of 600 Type I tuition unit equivalents per beneficiary.(h) Downgrades. A prepaid tuition unit contract may be downgraded without terminating the contract. A downgrade of an account is defined as agreeing to purchase fewer tuition units than originally specified in the original contract.(i) The board may impose a fee for a late payment under a prepaid tuition contract.(j) The purchaser will also bear the cost if a purchaser's attempted payment is refused by a financial institution.",
            "sourceNote": "Source Note: The provisions of this §7.128 adopted to be effective August 27, 2008, 33 TexReg 6957."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137741&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137741",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "L",
                "label": "PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II"
            },
            "rule": {
                "number": "§7.129",
                "label": "Deferred Use of Prepaid Credit Hours"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137742&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137742",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A prepaid tuition contract will allow a beneficiary:(1) to elect to pay from a source other than tuition units purchased under the contract the beneficiary's tuition and required fees for some or all of the tuition and required fees to which the beneficiary is entitled to payment under the contract; and(2) to defer to a subsequent semester or other academic term the right to payment of the beneficiary's tuition and required fees by using tuition units remaining under the contract.(b) This section does not affect the date on which a prepaid tuition contract terminates and does not give the beneficiary the right to a payment under the contract after termination of the contract.",
            "sourceNote": "Source Note: The provisions of this §7.129 adopted to be effective August 27, 2008, 33 TexReg 6957."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137742&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137742",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "L",
                "label": "PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II"
            },
            "rule": {
                "number": "§7.130",
                "label": "Change of Beneficiary"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137743&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137743",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The purchaser of a prepaid tuition contract may designate a different beneficiary in place of the original beneficiary subject to the following conditions:(1) the new beneficiary must meet the requirements of a beneficiary under §7.127 of this title (relating to Purchaser; Beneficiary), on the date the designation is changed;(2) the new beneficiary must meet the requirements of Internal Revenue Code, §529 (such as being a member of the family of the former beneficiary, as defined by §529(e)(2)), to prevent the change of beneficiary from being treated as a distribution under that law;(3) documentation must be submitted evidencing the relationship between the replacement beneficiary and the former beneficiary; and(4) the terms of the contract may be adjusted so that the purchaser is required to pay the amount the purchaser would have been required to pay had the purchaser originally designated the new beneficiary as the beneficiary, taking into account any payments made before the date the designation is changed.(b) Amounts paid before the beneficiary is changed shall be credited against amounts due at the time of the change. If the amount due at the time of the change is less than the amount paid prior to the change, such amount shall be credited against other amounts due through the term of the contract. If the amount paid prior to the change exceeds the amounts due through the term of the contract, the amount in excess of the amounts due shall be refunded to the purchaser.(c) A purchaser must submit a properly signed request form approved by the board to change a beneficiary.(d) A fee will not be imposed in connection with the designation of a new beneficiary under this subchapter.(e) The purchaser of a prepaid tuition contract may not sell the contract.",
            "sourceNote": "Source Note: The provisions of this §7.130 adopted to be effective August 27, 2008, 33 TexReg 6957."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137743&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137743",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "L",
                "label": "PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II"
            },
            "rule": {
                "number": "§7.131",
                "label": "Purchaser Obligations and Requests"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137744&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137744",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The purchaser is the person who is obligated to make payments under a prepaid tuition contract.(b) Unless otherwise provided in this subchapter, the purchaser shall execute all prepaid tuition contract changes, conversions, transfers, terminations and refund requests.(c) Any request to change a purchaser, change a beneficiary, or terminate a contract, must be submitted in a writing signed by the purchaser.(d) A purchaser may designate in writing to the board on the enrollment form, or in a separate written request, a person with a right of survivorship in the event of the purchaser's death. However, until the rights under the contract pass to the designee, such designee has no right to direct decisions regarding contract changes, conversions, transfers or termination. Without limitation on the foregoing, the contract may be modified or terminated by, or refund disbursed to, the purchaser without the consent or authorization of a designee of survivorship rights. It is the purchaser's responsibility to update the survivorship information as appropriate.",
            "sourceNote": "Source Note: The provisions of this §7.131 adopted to be effective August 27, 2008, 33 TexReg 6957."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137744&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137744",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "L",
                "label": "PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II"
            },
            "rule": {
                "number": "§7.132",
                "label": "No Promise or Guarantee of Admission"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137745&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137745",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Nothing in this subchapter or the program should be construed as a promise or guarantee that a beneficiary will be:(1) admitted to any public or private institution of higher education;(2) admitted to a particular public or private institution of higher education;(3) allowed to continue enrollment at a public or private institution of higher education; or(4) graduated from a public or private institution of higher education.",
            "sourceNote": "Source Note: The provisions of this §7.132 adopted to be effective August 27, 2008, 33 TexReg 6957."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137745&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137745",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "L",
                "label": "PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II"
            },
            "rule": {
                "number": "§7.133",
                "label": "Contract Termination"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137746&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137746",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The prepaid tuition contract may be terminated by the board:(1) if the board determines that a purchaser has misrepresented residency, age, or other information required by the board in connection with the purchase of a contract;(2) upon default for failure to pay any amounts due under the prepaid tuition contract prior to the expiration of any applicable grace periods as outlined in §7.134 of this title (relating to Default and Delinquency Conversion), unless such contract is converted to a Pay-As-You-Go contract; or(3) if the purchaser fails to provide a valid social security account number or other applicable tax identification number for the purchaser or beneficiary within six months of enrollment.(b) At its option, a purchaser may voluntarily cancel a prepaid tuition contract upon submission of a proper written request signed by the purchaser.(c) A prepaid tuition contract terminates automatically on the tenth anniversary of the date the beneficiary was projected to graduate from high school, as indicated by the purchaser in the enrollment contract.(1) For the purpose of this subsection, the date the beneficiary is projected to graduate from high school includes the projected completion of a nontraditional secondary education, such as obtaining a general education development certificate, certificate of high school equivalency, or other credentials equivalent to a public high school degree, as indicated by the purchaser in the enrollment contract.(2) Time spent as an active duty member of the United States armed services shall toll the ten-year anniversary period.(3) If there is a change of beneficiary, the ten-year anniversary period is calculated based on the projected high school graduation date of the new beneficiary, as indicated in the enrollment contract or change of beneficiary form.(4) If a contract has been terminated automatically, the plan manager will make a reasonable effort to locate the purchaser for the purpose of processing a refund.(5) Until the purchaser is located or the purchaser applies for a refund, any unused monies from the account will remain in the Fund to support the actuarial soundness of the Fund.(6) Once a contract has been terminated automatically, the account will cease to accrue any further net earnings as of the date the contract has been terminated.(d) Refunds for cancellations or terminations will be governed by §7.135 of this title (relating to Refunds).",
            "sourceNote": "Source Note: The provisions of this §7.133 adopted to be effective August 27, 2008, 33 TexReg 6957."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137746&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137746",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "L",
                "label": "PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II"
            },
            "rule": {
                "number": "§7.134",
                "label": "Default and Delinquency Conversion"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137755&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137755",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An account is subject to a late payment penalty for payments not received within 15 days of the payment due date.(b) If no payments are received within 90 days of the first payment due date under a newly established account, the account is in default and will be cancelled.(c) Failure to make any payment within 30, 60, or 90 days of the due date will result in the plan manager sending out a delinquency notice. A late payment penalty will be assessed in each instance, and the failure to make timely payment will be considered a default.(d) If a default has not been cured within 90 days of the outstanding payment default date, the plan manager will send out a default notice advising the purchaser that the contract will be converted in 30 days if not properly cured by the purchaser.(e) A purchaser may cure the default status of its prepaid tuition contract prior to the expiration of 120 days after the payment default date, subject to payment of all the delinquent amounts and any fees specified in the board's fee schedule. A contract that is not cured within 120 days after default shall be converted from an installment plan to a \"Pay-As-You-Go\" contract reflecting the number of tuition units paid for at the time of the conversion, less any outstanding fees. Any future purchases under the contract will reflect the prices in existence at the time of purchase. If the purchaser wishes to establish another installment plan at a later date after a contract has been converted, the purchaser must wait until the next enrollment period to do so.(f) Failure to make timely payments for 6 consecutive or non-consecutive months out of a 12 month period may also result in termination of the installment plan and conversion of the contract to a Pay-As-You-Go contract.(g) Any refund in the event of a default shall be limited to the Reduced Refund Value as governed by the provisions related to contract termination in §7.135 of this title (relating to Refunds).",
            "sourceNote": "Source Note: The provisions of this §7.134 adopted to be effective August 27, 2008, 33 TexReg 6957."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137755&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137755",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "L",
                "label": "PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II"
            },
            "rule": {
                "number": "§7.135",
                "label": "Refunds"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198986&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "198986",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Refunds shall be made in accordance with provisions of this subchapter and the prepaid tuition contract, in a manner that will not adversely affect the tax status of the program under applicable provisions of Internal Revenue Code, §529. Refunds shall be governed by this subchapter as amended and Internal Revenue Code, §529, as in effect on the date the request for refund is submitted to the plan manager.(b) Earnings may be paid with a refund only if the board determines that such payment will not adversely affect the actuarial soundness of the fund to pay the costs of program administration and operations and to meet the obligations of the program, as provided by Education Code, §54.770. It is the board's intent that refund amounts will be based on the definitions of \"Refund Value,\" \"Reduced Refund Value,\" or \"Transfer Value,\" in §7.122 of this title (relating to Definitions), as applicable.(c) The purchaser is entitled to a refund following cancellation or termination of a prepaid tuition contract, subject to any limitations imposed by Internal Revenue Code, §529, this subchapter, and the provisions of the prepaid tuition contract.(d) Refunds shall be made to the purchaser of the prepaid tuition contract or, in the event of the purchaser's death, the person designated in the enrollment contract or other legal document to have the right of survivorship.(e) Should a beneficiary terminate his/her student status on or after the date on which the institution denies refunds to students withdrawing for a particular semester, no refund shall be paid under the prepaid tuition contract for amounts relating to such semester.(f) If the prepaid tuition contract is cancelled due to the death or disability of the beneficiary, or due to the receipt of a scholarship by the beneficiary, the purchaser may elect to change the beneficiary or apply for a refund of the Refund Value of the account, less any fees due and payable to the program under the board's fee schedule. The administrative fee will be retained by the program.(g) If the beneficiary redeems fewer tuition units to pay the cost of tuition and required fees than the number of units purchased on behalf of the beneficiary under a prepaid tuition contract, other than to defer redemption as permitted in accordance with Education Code, §54.758, the purchaser may request a refund of the Refund Value of the account, less any fees due and payable under the contract, or transfer the remaining units to another beneficiary in accordance with this subchapter. The administrative fee will be retained by the board.(h) If the beneficiary decides not to attend an institution of higher education within a reasonable amount of time after graduating from high school, the purchaser may elect to:(1) change the beneficiary to another eligible beneficiary;(2) hold the tuition units in the account until the 10th anniversary of the date the beneficiary was projected to graduate from high school, not counting time spent by the beneficiary as an active duty member of the United States armed services; or(3) cancel the contract and request a refund of the Refund Value of the account, less any fees due and payable to the program. The administrative fee will be retained by the board.(i) If the prepaid tuition contract is terminated due to misrepresentation, failure to provide required information or default, the purchaser may apply for a refund of the Reduced Refund Value of the account, less any fees due and payable to the program under the board's fee schedule. The administrative fee will be retained by the program.(j) If the prepaid tuition contract is terminated automatically due to expiration of the 10 year anniversary period specified in §7.133(c) of this title (related to Contract Termination), the purchaser may apply for a refund of the Refund Value of the account, less any fees due and payable to the program under the board's fee schedule. However, the Refund Value will be limited to include only net earnings that have accrued under the contract up until the date the contract has been terminated automatically.(k) In the event of any other cancellation request not addressed separately in this subchapter:(1) if the cancellation request is received prior to the third anniversary of the first payment due date, the purchaser may apply for a refund of the Reduced Refund Value of the account. The administrative fee will be retained by the board; or(2) if the cancellation request is received on or following the third anniversary of the first payment due date, the purchaser may apply for a refund of the Refund Value of the account (for those tuition units held for three or more years) or the Reduced Refund Value (for tuition units held less than three years). The administrative fee will be retained by the board.(l) A lump sum refund may be made within 60 days of receiving a properly completed signed request for refund from the purchaser on a form promulgated by the plan manager, along with any required supporting documentation. Proof of death, disability or scholarship shall be in a form acceptable to the board.(m) Notwithstanding any other provision of this section, the purchaser may designate in the prepaid tuition contract a person who shall have a right of survivorship with respect to purchaser's rights under a prepaid tuition contract; provided that such designation shall in no way affect the purchaser's ability to modify or terminate the contract and receive a refund without the consent or authorization of the designee. The purchaser may change the designation at any time by properly completing and submitting to the plan manager a right of survivorship form. The purchaser shall provide any other information requested by the board in support of the designation. It is the purchaser's responsibility to provide the plan manager with current information for survivorship rights.(n) Distributions or transfers to another qualified tuition plan are governed by §7.137 of this title (relating to Transfers Among 529 Plans) and Education Code, §54.7671.(o) Refunds or distributions that exceed the qualified higher education expenses incurred by the beneficiary during the year of the distribution, or other nonqualified withdrawals, may subject the distributee to income tax liability on any earnings and a tax penalty, as provided by Internal Revenue Code, §529.(p) The number of refunds per year for a single purchaser shall be limited to twice in a 12 month period and shall be for a minimum of 100% of the purchaser's tuition units or in increments of 25 units, whichever is less.",
            "sourceNote": "Source Note: The provisions of this §7.135 adopted to be effective August 27, 2008, 33 TexReg 6957."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198986&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "198986",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "L",
                "label": "PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II"
            },
            "rule": {
                "number": "§7.136",
                "label": "Transfer to Institutions on Redemptions of Tuition Units"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137757&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137757",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) When a beneficiary enrolls at a general academic teaching institution or two-year institution of higher education and notifies the institution that payment will be made by redeemed tuition units, the comptroller will arrange for the transfer to the institution of the appropriate amount specified under Education Code, §54.765(c), (d) and (e).(b) When a beneficiary enrolls at a private or independent institution of higher education, medical and dental unit, career school, or accredited out-of-state institution of higher education, upon request the comptroller will arrange for the transfer to the institution of the amount specified under Education Code, §54.765(f).",
            "sourceNote": "Source Note: The provisions of this §7.136 adopted to be effective August 27, 2008, 33 TexReg 6957; amended to be effective September 21, 2010, 35 TexReg 8503; amended to be effective April 5, 2020, 45 TexReg 2317."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137757&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137757",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "L",
                "label": "PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II"
            },
            "rule": {
                "number": "§7.137",
                "label": "Transfers Among 529 Plans"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137758&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137758",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A purchaser may transfer money between an account under this subchapter and an account under another plan established by this state or by another state or other authorized entity in accordance with Internal Revenue Code, §529, to the extent and in the manner authorized by that section.(b) The value of the account at the time of transfer is the Transfer Value less any fees due and payable under the contract.(c) To apply for a transfer, the purchaser shall complete and submit a transfer request form promulgated by the board not later than 30 days prior to the desired effective date of the transfer. Upon request by the executive director, plan manager, or other designee, the purchaser shall provide any additional information necessary to properly effectuate the transfer.(d) Any fees that are due and payable to the program under the board's fee schedule must be paid by the purchaser prior to the transfer.(e) Transfers to another qualified tuition program for the benefit of a designated beneficiary are limited to one per 12-month period or as otherwise provided by Internal Revenue Code, §529.",
            "sourceNote": "Source Note: The provisions of this §7.137 adopted to be effective August 27, 2008, 33 TexReg 6957."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137758&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137758",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "L",
                "label": "PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II"
            },
            "rule": {
                "number": "§7.138",
                "label": "Recordkeeping for Certain Rollover Contributions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137759&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137759",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In the case of a rollover contribution from another qualified tuition plan, a Coverdell education savings account, or a qualified U.S. Savings Bond, the purchaser shall provide appropriate documentation and certifications to the plan manager to identify the source of the contribution, confirm that the contribution is a qualified rollover under Internal Revenue Code, §529, and to specify that portion of the contribution that is attributable to the purchaser's contributions or investment in the previous account and that portion of the rollover contribution that is attributable to earnings that were accumulated in the previous account. Rollovers must be completed within 60 days to avoid potential tax consequences.(b) For a purchase of tuition units using a contribution from a direct transfer between 529 programs, such as a trustee-to-trustee rollover, the purchaser must arrange for the distributing program to provide to the plan manager a statement setting forth the earnings portion of the rollover distribution within 30 days after the distribution or by January 10th of the year following the calendar year in which the rollover occurred, whichever is earlier.(c) Upon receipt of the rollover contribution, the plan manager will add the earnings portion of the rollover contribution to the earnings recorded under the prepaid tuition contract to which the rollover contribution is made.(d) Until the plan manager receives appropriate documentation showing the earnings portion of the rollover contribution, the board will treat the entire amount of the contribution as earnings in the prepaid tuition contract receiving the distribution.(e) For the purpose of this section, \"appropriate documentation\" means:(1) in the case of a rollover contribution from a Coverdell education savings account, an account statement issued by the financial institution that acted as trustee or custodian of the education savings account that shows basis and earnings in the account;(2) in the case of a rollover contribution from the redemption of qualified U.S. Savings Bonds, an account statement or Form 1099-INT issued by the financial institution that redeemed the bonds showing interest from the redemption of the bonds;(3) in the case of a rollover contribution from another 529 program, a statement issued by the distributing 529 program that shows the earnings portion of the distribution; or(4) other documentation acceptable to the board supported by the purchaser's certification.",
            "sourceNote": "Source Note: The provisions of this §7.138 adopted to be effective August 27, 2008, 33 TexReg 6957."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137759&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137759",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "L",
                "label": "PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II"
            },
            "rule": {
                "number": "§7.139",
                "label": "Actuarial Soundness of Fund"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137760&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137760",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The board will administer the fund in a manner that is sufficiently actuarially sound to pay the costs of program administration and operations and to meet the obligations of the program.(b) The board will annually evaluate the actuarial soundness of the fund.(c) The board may adjust the terms of subsequent prepaid tuition contracts as necessary to ensure the actuarial soundness of the fund.",
            "sourceNote": "Source Note: The provisions of this §7.139 adopted to be effective August 27, 2008, 33 TexReg 6957."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137760&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137760",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "L",
                "label": "PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II"
            },
            "rule": {
                "number": "§7.140",
                "label": "Suspension of New Enrollment; Program Modification or Termination"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198987&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "198987",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) On the request of the comptroller as the comptroller considers necessary to ensure the actuarial soundness of the fund, the board may temporarily suspend new enrollment in the program.(b) If the comptroller determines that the program is financially infeasible, the comptroller shall notify the governor and the legislature and recommend that the program be modified or terminated.",
            "sourceNote": "Source Note: The provisions of this §7.140 adopted to be effective August 27, 2008, 33 TexReg 6957."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198987&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "198987",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "L",
                "label": "PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II"
            },
            "rule": {
                "number": "§7.141",
                "label": "Effect of Program Termination on Contract"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198988&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "198988",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A prepaid tuition contract remains in effect after the program is terminated if, when the program is terminated, the beneficiary:(1) has been accepted by or is enrolled at a general academic teaching institution, two-year institution of higher education, private or independent institution of higher education, medical and dental unit, career school, or accredited out-of-state institution of higher education; or(2) is projected to graduate from high school not later than the third anniversary of the date the program is terminated.(b) A prepaid tuition contract terminates when the program is terminated if the contract does not remain in effect under subsection (a) of this section.(c) For contracts that are terminated pursuant to subsection (b) of this section, the purchaser is entitled to a refund of the Refund Value, less any fees that are past due and payable to the program under the board's fee schedule.",
            "sourceNote": "Source Note: The provisions of this §7.141 adopted to be effective August 27, 2008, 33 TexReg 6957; amended to be effective September 21, 2010, 35 TexReg 8503; amended to be effective April 5, 2020, 45 TexReg 2317."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198988&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "198988",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "L",
                "label": "PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II"
            },
            "rule": {
                "number": "§7.142",
                "label": "Statement Regarding Status of Prepaid Tuition Contract"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137764&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137764",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Not later than January 31 of each year, the plan manager shall make available online without charge to each purchaser a statement of:(1) the amount paid by the purchaser under the prepaid tuition contract;(2) the total number of each type of tuition unit covered by the contract at any one time;(3) the number of each type of tuition unit remaining under the contract;(4) the number of each type of tuition unit that has met the three-year holding period;(5) the value of the purchasers' tuition units if redeemed at a general academic teaching institution or two-year institution of higher education designated for that year by the purchaser in the time and manner required by the board, not to exceed five institutions, with such information being provided in the tuition unit redemption chart developed pursuant to §7.125(d) of this title (relating to Redemption of Tuition Units); and(6) any other information the board determines is necessary or appropriate.(b) As soon as feasible after the end of the calendar year, the plan manager shall provide a written statement without charge to each purchaser reflecting the information listed in subsection (a) of this section, covering activities in the account through the end of the calendar year.(c) The plan manager shall provide a separate accounting for each designated beneficiary.(d) The plan manager shall also provide a statement if tuition units are redeemed under the contract during the year, and if any other distributions are made under the contract that calendar year.",
            "sourceNote": "Source Note: The provisions of this §7.142 adopted to be effective August 27, 2008, 33 TexReg 6957; amended to be effective April 5, 2020, 45 TexReg 2317."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137764&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137764",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "L",
                "label": "PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II"
            },
            "rule": {
                "number": "§7.144",
                "label": "Gift Contributions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137747&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137747",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A person or entity may purchase tuition units for a beneficiary designated in an existing prepaid tuition contract by paying an amount referred to as a \"gift contribution.\"(b) A gift contribution may purchase additional tuition units or, in the case of a prepaid tuition contract using the installment plan for purchases, the gift contribution may be applied to current or future installment payments covered by the prepaid tuition contract.(c) If the prepaid tuition contract uses an installment plan for purchases, the gift contribution will be applied to the next payment(s) due under the installment plan, unless the plan manager receives other written instructions from the purchaser of the existing prepaid tuition contract. Gift contributions may be used to reduce principal under an installment plan, reduce the amount or number of monthly payments, or to purchase additional lump sum tuition units, at the option of the purchaser.(d) If a gift contribution results in an account balance that exceeds the value equivalent of 600 Type I tuition units or any other limit that might be imposed under Internal Revenue Code, §529, the excess contribution amount will be returned to the contributor.(e) Persons or entities may make gift contributions to an established prepaid tuition account at any time, including outside the enrollment period.(f) The tuition unit price for any lump sum gift contributions will be the tuition unit price in effect for the sales period when the payment is actually received by the plan manager. If the gift contribution is applied to make installment plan purchases that are due under the contract, the gift contribution will be applied at the price established in the prepaid tuition contract for the installment payments.(g) Tuition units purchased by gift contribution and any installment payments made by gift contribution that are credited to an existing prepaid tuition contract account will be owned by, and subject to the direction and control of, the purchaser of the existing prepaid tuition contract. Such tuition units will not be owned by, or under the direction or control of, the person or entity making the gift contribution.(h) A person or entity making a gift contribution and any designated beneficiary may not directly or indirectly direct the investment of any contributions to, or earnings on, the account.",
            "sourceNote": "Source Note: The provisions of this §7.144 adopted to be effective August 27, 2008, 33 TexReg 6957."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137747&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137747",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "L",
                "label": "PREPAID TUITION UNIT UNDERGRADUATE EDUCATION PROGRAM: TEXAS TOMORROW FUND II"
            },
            "rule": {
                "number": "§7.145",
                "label": "Marketing Considerations"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=157067&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "157067",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The program will be marketed in a manner that promotes the participation goals and targets of the most recent revision of \"Closing the Gaps,\" the state's master plan for higher education.(b) The program will seek strategies that promote enrollment in the program by persons likely to qualify for federal earned income tax credits.(c) The executive director may establish workgroups as necessary to identify enrollment barriers, solicit input from key stakeholders, and recommend initiatives to enhance program participation, especially for purchasers and beneficiaries eligible for the Texas Save and Match program. The workgroups may include, without limitation, representatives from such agencies as the Health and Human Services Commission, Texas Workforce Commission, the Texas Higher Education Coordinating Board, other agencies, community organizations, and constituencies interested in promoting higher education.(d) The executive director may use employees of the executive director to conduct or assist in conducting marketing efforts on behalf of the board.",
            "sourceNote": "Source Note: The provisions of this §7.145 adopted to be effective August 27, 2008, 33 TexReg 6957."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=157067&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "157067",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "M",
                "label": "TEXAS SAVE AND MATCH PROGRAM"
            },
            "rule": {
                "number": "§7.161",
                "label": "Purpose"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=157069&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "157069",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The Texas Save and Match Program is created to increase access to higher education by encouraging families to save for higher education expenses.",
            "sourceNote": "Source Note: The provisions of this §7.161 adopted to be effective July 1, 2012, 37 TexReg 4599."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=157069&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "157069",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "M",
                "label": "TEXAS SAVE AND MATCH PROGRAM"
            },
            "rule": {
                "number": "§7.162",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=157070&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "157070",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Accredited out-of-state institution of higher education, career school, general academic teaching institution, private or independent institution of higher education, and two-year institution of higher education have the meanings assigned by Education Code, §54.751.(2) Beneficiary--A beneficiary on whose behalf a purchaser enters into a prepaid tuition contract with the board under Education Code, Chapter 54, Subchapter H or for whom an account owner opens a savings trust account under Education Code, Chapter 54, Subchapter G.(3) Board--Prepaid Higher Education Tuition Board.(4) Fund--Texas Save and Match Trust Fund established under Education Code, §54.808.(5) Match account--An allocation of funds or tuition units from an account, fund, or contract owned and maintained by the board or program entity that has been awarded to a participant on behalf of a designated beneficiary.(6) Nonprofit scholarship organization--An organization described in Internal Revenue Code of 1986, §501(c)(3), and exempt from taxation under §501(a) of that code that operates a scholarship program that benefits beneficiaries who are residents of this state.(7) Participant--A purchaser of a prepaid tuition contract or account owner of a savings trust account who has been awarded a match account under the program.(8) Prepaid tuition contract--A contract entered into under Education Code, Chapter 54, Subchapter H or I. Prepaid tuition contract includes Texas Tuition Promise Fund® contracts or any future higher education prepaid tuition program established by the Texas Prepaid Higher Education Tuition Board under Education Code, Chapter 54, Subchapter H.(9) Program--Texas Save and Match Program established under Education Code, §54.802.(10) Program entity--Texas Match the Promise FoundationSM , a Texas nonprofit corporation, or any future tax-exempt charitable organization established by law to implement the program.(11) Savings trust account--A savings trust account established under Education Code, Chapter 54, Subchapter G or I. Savings trust account includes accounts in the Texas College Savings Plan® and the LoneStar 529 Plan® or any future higher education savings plan established by the Texas Prepaid Higher Education Tuition Board under Education Code, Chapter 54, Subchapter G.",
            "sourceNote": "Source Note: The provisions of this §7.162 adopted to be effective July 1, 2012, 37 TexReg 4599."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=157070&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "157070",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "M",
                "label": "TEXAS SAVE AND MATCH PROGRAM"
            },
            "rule": {
                "number": "§7.163",
                "label": "Texas Save and Match Program Administration"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=157071&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "157071",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The board, in cooperation with the program entity, administers the Texas Save and Match Program, under which money contributed to a savings trust account by an account owner or paid by a purchaser under a prepaid tuition contract on behalf of an eligible beneficiary may be matched with:(1) contributions made by any person to the program entity for use in making additional savings trust account contributions for a beneficiary or in purchasing additional tuition units for a beneficiary under a prepaid tuition contract; or(2) money appropriated by the legislature for the program or received under Education Code, §54.802(a)(7) to be used by the board to make additional savings trust account contributions for a beneficiary or to purchase additional tuition units for a beneficiary under a prepaid tuition contract.(b) The program entity may select recipients of match accounts awarded under subsection (a)(1) of this section. The board may select recipients of match accounts awarded under subsection (a)(2) of this section.",
            "sourceNote": "Source Note: The provisions of this §7.163 adopted to be effective July 1, 2012, 37 TexReg 4599."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=157071&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "157071",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "M",
                "label": "TEXAS SAVE AND MATCH PROGRAM"
            },
            "rule": {
                "number": "§7.164",
                "label": "Certain Exemptions for the Board, Program Entity, and Nonprofit Scholarship Organizations"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=157068&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "157068",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Notwithstanding any of the provisions of this chapter, the board, the program entity, or a nonprofit scholarship organization:(1) is not required to name a designated beneficiary when entering into a prepaid tuition contract or opening a savings trust account;(2) may change the designated beneficiary of a prepaid tuition contract or savings trust account to another beneficiary who is not a family member of the previous beneficiary;(3) may purchase an unlimited number of tuition units for a prepaid tuition contract and may contribute an unlimited amount of funds to a savings trust account, provided that the board, program entity, or nonprofit scholarship organization is the purchaser of the prepaid tuition contract or account owner of the savings trust account and provided that such contributions or purchases do not result in any individual beneficiary's aggregate balance exceeding the limit in §7.103 of this title (relating to Tax Benefits and Securities Laws Exemptions); and(4) may enter into a prepaid tuition contract during the enrollment period established for beneficiaries who are newborn infants under §7.122(6) of this title (relating to Definitions). The three-year holding period begins on the date each unit is paid in full.(b) Notwithstanding any of the provisions of this chapter, the board or the program entity:(1) may designate more than one beneficiary of a prepaid tuition contract by awarding or allocating a portion of tuition units to an eligible designated beneficiary, provided that the board or program entity is the purchaser of the contract; and(2) is exempt from the $25 administrative fee imposed under §7.124(j) of this title (relating to Prepaid Tuition Units: Purchase; Assigned Value; Types; Price).",
            "sourceNote": "Source Note: The provisions of this §7.164 adopted to be effective July 1, 2012, 37 TexReg 4599."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=157068&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "157068",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "M",
                "label": "TEXAS SAVE AND MATCH PROGRAM"
            },
            "rule": {
                "number": "§7.165",
                "label": "Initial Eligibility for Participation in Program Applicable to All Participants"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=157072&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "157072",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "To be initially eligible to participate in the program, a beneficiary, at the time a prepaid tuition contract is entered into on the beneficiary's behalf or a savings trust account is opened on the beneficiary's behalf, as applicable, must be:(1) a resident of this state; and(2) a dependent for purposes of Internal Revenue Code of 1986, §152, of a resident of this state.",
            "sourceNote": "Source Note: The provisions of this §7.165 adopted to be effective July 1, 2012, 37 TexReg 4599."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=157072&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "157072",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "M",
                "label": "TEXAS SAVE AND MATCH PROGRAM"
            },
            "rule": {
                "number": "§7.166",
                "label": "Initial Eligibility for Participation in Program Applicable to Awards Made by the Board"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=157073&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "157073",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) No savings trust account or prepaid tuition contract may be matched as provided in §7.163(a)(2) of this title (relating to Texas Save and Match Program Administration) unless:(1) the participant is the account owner of a savings trust account or the purchaser of a prepaid tuition contract;(2) the designated beneficiary is under 15 years of age; and(3) the designated beneficiary is eligible for free or reduced-price meals under the national free or reduced-price breakfast and lunch program during the current or most recent school year.(b) The board may accept any of the following as proof that a designated beneficiary is eligible for free or reduced price meals under the national free or reduced price breakfast and lunch program:(1) evidence that a designated beneficiary is enrolled in the national free or reduced-price breakfast and lunch program;(2) evidence of the participant's household size and income in a form acceptable to the board; or(3) other evidence of eligibility for the national free or reduced price breakfast and lunch program in a form acceptable to the board.(c) Contracts that are currently delinquent or those with a history of two or more delinquent payments are not eligible.(d) The comptroller's office may enter into an agreement with the appropriate federal, state, or local government entities to confirm eligibility of participants or their designated beneficiaries.(e) This section does not apply to awards made under §7.163(a)(1) of this title.",
            "sourceNote": "Source Note: The provisions of this §7.166 adopted to be effective July 1, 2012, 37 TexReg 4599."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=157073&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "157073",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "M",
                "label": "TEXAS SAVE AND MATCH PROGRAM"
            },
            "rule": {
                "number": "§7.167",
                "label": "Award Process for Awards Made by the Board"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=157074&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "157074",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In any year in which sufficient funds are available, the board may announce the availability and amount of awards and may create a procedure for awarding match accounts.(b) By submitting an application, a participant agrees to all the terms and conditions set forth by the board, Education Code, Chapter 54, and this subchapter.(c) Only prepaid tuition units paid in full or college savings on deposit at the time of the application deadline are eligible for match.(d) The board or executive director may conduct or request investigations to determine initial and continuing eligibility without obtaining additional consent from the participant when considering eligibility for an award and after an award has been made.",
            "sourceNote": "Source Note: The provisions of this §7.167 adopted to be effective July 1, 2012, 37 TexReg 4599."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=157074&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "157074",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "M",
                "label": "TEXAS SAVE AND MATCH PROGRAM"
            },
            "rule": {
                "number": "§7.168",
                "label": "Redemption of Awards Made by the Board"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=157075&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "157075",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Distributions from match accounts will be made directly to the eligible educational institution upon proof of the beneficiary's enrollment and a valid invoice from the institution.(b) A match account that is linked to a prepaid tuition contract may only be used to pay undergraduate tuition and required fees.(c) A match account that is linked to a savings trust account can only be used to pay qualified higher education expenses.",
            "sourceNote": "Source Note: The provisions of this §7.168 adopted to be effective July 1, 2012, 37 TexReg 4599."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=157075&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "157075",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "M",
                "label": "TEXAS SAVE AND MATCH PROGRAM"
            },
            "rule": {
                "number": "§7.169",
                "label": "Limitations Applicable to All Participants"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=157076&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "157076",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A match account is owned by the board or program entity until the funds or tuition units are distributed to an eligible educational institution.(b) Funds or tuition units that are awarded or allocated to a match account, including any net earnings or losses related to that account if applicable, are forfeited and revert to the board or program entity on the occurrence of any of the following:(1) the 10th anniversary of the date the beneficiary is projected to graduate from high school, except that time spent by the beneficiary as an active duty member of the United States armed services tolls this period;(2) a change of beneficiary by the participant;(3) the closing of participant's savings trust account or prepaid tuition contract resulting from a nonqualified withdrawal;(4) a nonqualified withdrawal from participant's prepaid tuition contract that results in the sum of the participant's tuition unit balance plus all prior tuition units redeemed from participant's contract being less than the amount that had been matched;(5) a nonqualified withdrawal from participant's savings trust account that results in the sum of the participant's savings account balance plus all prior qualified distributions from participant's savings trust account being less than the match account balance as adjusted for earnings;(6) the successful completion by the beneficiary of an associate or bachelor's degree program;(7) transfer of funds from the participant's account to another qualified tuition program of any state that meets the requirements of Internal Revenue Code of 1986, §529;(8) fraud or misrepresentation by the participant;(9) the death or permanent disability of the beneficiary (unable to attend eligible educational institution); or(10) any other event the board or program entity determines would be inconsistent with the program's purposes.(c) A participant or beneficiary whose match account is forfeited after the completion of an associate degree and who subsequently enrolls in a bachelor's degree program, may request in writing that the board not forfeit the match account and must provide evidence in a form acceptable to the board.(d) If a participant makes a misrepresentation in an application for a savings trust account or prepaid tuition contract, or in a match account application, the match account associated with the misrepresentation is forfeited. Misrepresentations by participants may be reported to the Comptroller's Office of Criminal Investigation and the Attorney General's Office for prosecution and to recover any distributions.(e) Unless otherwise provided by this subchapter, use of a match account that is linked to a savings trust agreement is governed by the applicable Plan Description and Savings Trust Agreement. Unless otherwise provided by this subchapter, use of a match account that is linked to a prepaid tuition contract is governed by the applicable Plan Description and Master Agreement.",
            "sourceNote": "Source Note: The provisions of this §7.169 adopted to be effective July 1, 2012, 37 TexReg 4599."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=157076&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "157076",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "M",
                "label": "TEXAS SAVE AND MATCH PROGRAM"
            },
            "rule": {
                "number": "§7.170",
                "label": "Match Account Administration by Plan Manager"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=157077&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "157077",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Information about the tuition units or match funds allocated or awarded to an eligible beneficiary by the board or program entity shall be made available to the participant and, to the extent possible, shall be included in the periodic statements for participant accounts.(b) Match account tuition units may not be redeemed until the participant authorizes redemption of the participant's tuition units in writing.(c) Distributions from a match account will be reported to the Internal Revenue Service to the extent required by federal law.",
            "sourceNote": "Source Note: The provisions of this §7.170 adopted to be effective July 1, 2012, 37 TexReg 4599."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=157077&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "157077",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "M",
                "label": "TEXAS SAVE AND MATCH PROGRAM"
            },
            "rule": {
                "number": "§7.171",
                "label": "Texas Save and Match Trust Fund; Agreements between Board and Program Entity Regarding Program Entity Funds"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213982&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "213982",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The Comptroller will present an annual budget to the board and program entity for approval prior to the start of each fiscal year. Operating and marketing expenses will be paid by the board and program entity from appropriated funds or contributions on a pro-rata share based on estimated funds held in each fund at the beginning of the fiscal year. Costs for investment management or consultant services will be allocated to the board and the program entity based on funds invested.",
            "sourceNote": "Source Note: The provisions of this §7.171 adopted to be effective July 1, 2012, 37 TexReg 4599."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213982&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "213982",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "N",
                "label": "TEXAS ACHIEVING A BETTER LIFE EXPERIENCE  (ABLE) PROGRAM"
            },
            "rule": {
                "number": "§7.181",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213983&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "213983",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The following words, terms, and phrases, when used in this subchapter, shall have the following meanings. In addition, definitions set forth in Internal Revenue Code, §529A and Education Code, Chapter 54, Subchapter J are incorporated in these rules.(1) ABLE account or \"account\"--Has the meaning assigned by Internal Revenue Code, §529A and means an account in the Texas ABLE Program.(2) ABLE Program or \"Program\"--The Texas Achieving a Better Life Experience Program created under Education Code, Chapter 54, Subchapter J.(3) Available funds--The balance of funds held in an ABLE account, after deducting any holds, fees or expenses, or pending transactions, including funeral expenses that may be incurred following the death of a designated beneficiary.(4) Board--Prepaid Higher Education Tuition Board established under Education Code, §54.602.(5) Contribution--Amounts paid by contributors to an ABLE account.(6) Contributor--Any person who makes a contribution to an ABLE account.(7) Designated beneficiary--A resident of this state with a disability who is an eligible individual and named as the beneficiary of an ABLE account. The term may also include out-of-state residents to the extent allowed by law.(8) Disability certification--With respect to the individual who is the eligible individual, a certification to the satisfaction of the Secretary of the United States Treasury by the individual or the parent or guardian, or other authorized fiduciary of the individual, that certifies that the individual has a medically determinable physical or mental impairment, which results in marked and severe functional limitations, and which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months, or is blind within the meaning of Social Security Act, §1614(a)(2) and such blindness or disability occurred before the date on which the individual attained age 26, subject to any changes or modifications in eligibility criteria in Internal Revenue Code, §529A or Internal Revenue Service regulations or guidance.(9) Distribution--Any amounts paid by the ABLE Program to or on behalf of an eligible individual.(10) Eligibility certification--The participant's self-certification under penalty of perjury in a format acceptable to the Board or as required by state or federal regulations or guidance that the designated beneficiary of the account is currently an eligible individual as defined by Internal Revenue Code, §529A.(11) Eligible individual--A person who meets the requirements of Internal Revenue Code, §529A or Internal Revenue Service regulations or guidance and is certified by an eligibility certification to the Board as eligible to participate in the ABLE Program.(12) Eligible member of the family--An eligible individual and a member of the family of the former beneficiary to the extent provided by Internal Revenue Code, §529A.(13) Excess contribution--Contributions that would cause:(A) the balance of an ABLE account to exceed the amount established by the Board in accordance with Internal Revenue Code, Title 26, §529(b)(6); or(B) the aggregate contributions from all contributors in a taxable year to exceed the amount in effect under Internal Revenue Code, Title 26, §529A(b)(2)(B) for the calendar year in which the taxable year begins.(14) Financial institution--A bank, a trust company, a depository trust company, an insurance company, a broker-dealer, a registered investment company or investment manager, the Texas Treasury Safekeeping Trust Company, or another similar financial institution authorized to transact business in this state.(15) Internal Revenue Code--The Internal Revenue Code of 1986.(16) Investment options--Investment options offered by the Program for selection by the participant.(17) Participant--A designated beneficiary or the parent or guardian or other fiduciary of the beneficiary who has entered into a participation agreement.(18) Participation agreement--A contract between a participant and the Board under this subchapter that conforms to the requirements prescribed by this subchapter and Internal Revenue Code, §529A and includes the application for enrollment submitted in good order.(19) Plan manager--An entity, including a financial institution, any state or federal agency, contractor or state or multi-state consortium engaged by the Board to carry out certain duties as specified and delegated by the Board for administration of the Program.(20) Qualified disability expenses--Any expenses related to the eligible individual's blindness or disability that are made for the benefit of the eligible individual who is the designated beneficiary, and includes expenses for education, housing, transportation, employment training and support, assistive technology and personal support services, health, prevention and wellness, financial management and administrative services, legal fees, expenses for oversight and monitoring, funeral and burial expenses, and any other expenses that may be identified from time to time in Internal Revenue Service regulations or guidance or by amendments to Internal Revenue Code, §529A.(21) Transfer to state--The reimbursement that may be paid to the state Medicaid program upon the designated beneficiary's death. After timely claim submitted in good order, the reimbursement will be made from any available funds and will be calculated according to Internal Revenue Code, §529A(f).(b) In the event of a conflict in the definitions, the Program definitions shall be governed by Internal Revenue Code, §529A, Education Code, Chapter 54, Subchapter J, and these rules, in that order.",
            "sourceNote": "Source Note: The provisions of this §7.181 adopted to be effective September 12, 2016, 41 TexReg 7111; amended to be effective April 9, 2018, 43 TexReg 2165; amended to be effective June 22, 2023, 48 TexReg 3300."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213983&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "213983",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "N",
                "label": "TEXAS ACHIEVING A BETTER LIFE EXPERIENCE  (ABLE) PROGRAM"
            },
            "rule": {
                "number": "§7.182",
                "label": "Tax Exempt Status Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190459&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "190459",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The provisions of this section are intended to meet the requirements of Internal Revenue Code, §529A.(1) The Board, to the extent allowed by law, may contract with another state, including a state or multi-state consortium, that administers a qualified ABLE program as authorized by Internal Revenue Code, §529A to act as plan manager, provide certain services under a contractual arrangement or provide residents of this state with access to a qualified ABLE program.(2) A contribution to an ABLE account must be made in cash or cash equivalent.(3) The Board will monitor contributions to an ABLE account so that total contributions to an ABLE account for a designated beneficiary do not result in an excess contribution as defined in these rules.(4) The Board will monitor the balance of an ABLE account so that an excess contribution as defined in these rules will not be accepted.(5) The Board shall provide separate accounting for each designated beneficiary.(6) A designated beneficiary is limited to one ABLE account, and each ABLE account may have only one owner, who will be the designated beneficiary. Unless the participant is also the designated beneficiary, the participant may not have and will not acquire a beneficial interest in the ABLE account, and the participant will administer the account for the benefit of the designated beneficiary.(7) A designated beneficiary must be a Texas resident at the time of establishing and maintaining an active account in the Texas ABLE Program. The Board may act to accept out-of-state residents into the Program to the extent allowed by law.(8) A designated beneficiary may, directly or indirectly, direct the investment of any contributions to an ABLE account, only to the extent allowed by Internal Revenue Code, §529A.(9) The Board shall determine the earnings portion of each distribution, if any, in accordance with methods that are consistent with Internal Revenue Code, §529A; any earnings on contributions included in distributions for qualified disability expenses shall not be includible in gross income to the extent provided by Internal Revenue Code, §529A.(10) The Board shall report distributions of the designated beneficiary to the Secretary of the United States Treasury, as required by Internal Revenue Code, §529A.(11) The participant, designated beneficiary, and any other contributor, may not use any interest in or portion of an ABLE account as security for a loan. This paragraph does not prohibit the use of funds in an ABLE account as down payment for a home or vehicle to the extent it is a qualified disability expense.(12) Available funds may be rolled over to the extent allowed by Internal Revenue Code, §529A and United States Treasury regulations as described in §7.189 of this title (relating to Rollovers).(13) A change in the designated beneficiary of an ABLE account during a taxable year shall not be treated as a taxable distribution on Internal Revenue Service Form 1099QA for that taxable year for purposes of paragraph (9) of this section if the new beneficiary is an eligible member of the family.(14) Except as provided by the Secretary of the United States Treasury, and for the purpose of applying Internal Revenue Code, §72, all distributions during a taxable year shall be treated as one distribution and the value of the account shall be computed and reported on Internal Revenue Service Form 1099QA as of the close of the calendar year in which the taxable year begins.(15) The Board shall submit notices, statements, and reports as required to maintain compliance with Internal Revenue Code, §529A and any other state and federal requirements.(16) The Board will make any transfers to state in compliance with Internal Revenue Code, §529A.",
            "sourceNote": "Source Note: The provisions of this §7.182 adopted to be effective September 12, 2016, 41 TexReg 7111; amended to be effective June 22, 2023, 48 TexReg 3300."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190459&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "190459",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "N",
                "label": "TEXAS ACHIEVING A BETTER LIFE EXPERIENCE  (ABLE) PROGRAM"
            },
            "rule": {
                "number": "§7.183",
                "label": "Participation Agreement"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190460&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "190460",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The Board will designate the start date of the Texas ABLE Program. The Board may begin enrolling participants as soon as reasonably practical to allow sufficient time for successful development and implementation of the Program. To enroll in the Program, a participant shall enter into a participation agreement with the Board to establish an ABLE account for an Eligible Individual.(b) The participation agreement may include, but is not limited to, the following terms:(1) the requirements and applicable restrictions for:(A) opening an ABLE account;(B) making contributions to an ABLE account; and(C) limiting the directing of the investment of contributions, earnings, or balance of the account, as provided under Internal Revenue Code, §529A.(2) The eligibility requirements for a participant to enter into a participation agreement and the rights of the participant and designated beneficiary, if other than the participant;(3) administrative and other fees and charges applicable to the ABLE account;(4) the terms and conditions under which an ABLE account or participation agreement may be modified, transferred, or terminated; and(5) any other terms and conditions the Board considers necessary or appropriate, including those necessary to conform the ABLE account to the requirements of Internal Revenue Code, §529A and other applicable state or federal laws or requirements.(c) The participant must provide the following information on the participation agreement:(1) the name, address, social security number or tax identification number, telephone number, relationship to beneficiary, and email, if any, of the participant;(2) the name, address, date of birth, and social security number of the designated beneficiary;(3) an eligibility certification in a format approved by the Board or required by state or federal regulations or guidance to self-certify that the designated beneficiary is an eligible individual;(4) directions related to investment of account contributions and earnings, if any;(5) acceptance of the terms and conditions of the Texas ABLE Program, including any subsequent modifications, transfers, amendments, or terminations;(6) acceptance of any fees and charges applicable to a Texas ABLE account;(7) acceptance of the terms under which another person may be substituted as the designated beneficiary;(8) acceptance of the terms under which another person may be substituted as the participant;(9) acceptance of the calendar year as the taxable year for purposes of the Program;(10) a certification under penalty of perjury that, unless the participant is also the designated beneficiary, the participant does not have and will not acquire a beneficial interest in the ABLE account and that the participant will administer the account for the benefit of the designated beneficiary; and(11) any other information required by the Board.(d) If the Board finds a participant has made a material misrepresentation regarding personal information or eligibility on the participation agreement or in any communication regarding the Texas ABLE Program, the Board may refund the balance of any available funds in the ABLE account subject to any unpaid expenses or fees due the Program and, if applicable, transfer to state following the designated beneficiary's death.(e) The Board may amend a participation agreement throughout the term of the agreement.(f) The participant is responsible for maintaining up-to-date contact information for the ABLE account.(g) The terms of the participation agreement shall be binding on the designated beneficiary and participant.(h) The rights of participants and designated beneficiaries are subject to the provisions of these rules; Education Code, Chapter 54, Subchapter J; Internal Revenue Code, §529A; and the terms and conditions of the participation agreement. To the extent of irreconcilable conflict, the provisions of Internal Revenue Code, §529A; Education Code, Chapter 54, Subchapter J; and these rules prevail over the participation agreement.(i) Any amendment to Internal Revenue Code, §529A; Education Code, Chapter 54, Subchapter J; or these rules that would apply to a participation agreement, will automatically govern over the participation agreement to the extent of any conflict, and the participation agreement will be automatically amended to accommodate such changes. The Board shall provide prompt notification to participants of any such amendments in written or electronic form as determined by the Board.",
            "sourceNote": "Source Note: The provisions of this §7.183 adopted to be effective September 12, 2016, 41 TexReg 7111; amended to be effective April 9, 2018, 43 TexReg 2165."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190460&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "190460",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "N",
                "label": "TEXAS ACHIEVING A BETTER LIFE EXPERIENCE  (ABLE) PROGRAM"
            },
            "rule": {
                "number": "§7.184",
                "label": "Designated Beneficiary and Eligible Individual"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190461&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "190461",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An eligible individual must be a resident of Texas at the time the ABLE account is established. The Board may act to accept out-of-state residents into the Program to the extent allowed by law.(b) If at any time, the Program becomes aware that the eligible individual no longer meets any residency requirements, if applicable, or no longer meets the requirements of Internal Revenue Code, §529A, the individual's ABLE account will be closed and any available funds will be refunded to the participant on behalf of the designated beneficiary. In the event that available funds are refunded by the Program because of failure to meet residency requirements or failure to meet the requirements of Internal Revenue Code, §529A, the Program will provide advance written or electronic notification to the participant of a pending refund within a reasonable time, but not less than thirty (30) days, prior to the refund by the Program.(c) The participant shall recertify that the designated beneficiary is an eligible individual:(1) periodically as required by the Board in a form acceptable to the Board, or(2) upon request to reestablish a closed account.(d) Beginning on the first day of the following calendar year that a beneficiary ceases to be an eligible individual, the Texas ABLE Program will no longer accept contributions to the beneficiary's ABLE account.",
            "sourceNote": "Source Note: The provisions of this §7.184 adopted to be effective September 12, 2016, 41 TexReg 7111; amended to be effective April 9, 2018, 43 TexReg 2165."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190461&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "190461",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "N",
                "label": "TEXAS ACHIEVING A BETTER LIFE EXPERIENCE  (ABLE) PROGRAM"
            },
            "rule": {
                "number": "§7.185",
                "label": "Participant"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=179867&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "179867",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The participant must be the designated beneficiary or a fiduciary authorized by law to act on behalf of the designated beneficiary, including a parent, guardian, or trustee. The Board may limit the types of fiduciaries allowed to be participants.(b) Because a designated beneficiary is limited to one ABLE account, the participant who applies for enrollment must have the legal authority to act on behalf of a beneficiary. The Board may determine who has legal authority to apply for enrollment on behalf of a designated beneficiary, and may require written consent from individuals who have legal authority to act on behalf of a beneficiary.(c) A participant who is not the designated beneficiary may not have or acquire a beneficial interest in an account.(d) A participant who is not the designated beneficiary must administer the account for the benefit of the designated beneficiary.",
            "sourceNote": "Source Note: The provisions of this §7.185 adopted to be effective September 12, 2016, 41 TexReg 7111; amended to be effective April 9, 2018, 43 TexReg 2165."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=179867&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "179867",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "N",
                "label": "TEXAS ACHIEVING A BETTER LIFE EXPERIENCE  (ABLE) PROGRAM"
            },
            "rule": {
                "number": "§7.186",
                "label": "Fees and Other Charges"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213984&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "213984",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) As authorized by Education Code, Subchapter J, §54.9045, the Board may collect, or authorize the collection of, fees and other charges in connection with any agreement, contract, or transaction relating to the Texas ABLE Program in amounts not exceeding the amount necessary to recover the cost of establishing and maintaining the Program.(b) The Board may assess, or authorize the assessment of, fees and other charges to an ABLE account to administer the Program.",
            "sourceNote": "Source Note: The provisions of this §7.186 adopted to be effective September 12, 2016, 41 TexReg 7111."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213984&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "213984",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "N",
                "label": "TEXAS ACHIEVING A BETTER LIFE EXPERIENCE  (ABLE) PROGRAM"
            },
            "rule": {
                "number": "§7.187",
                "label": "Contributions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=179869&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "179869",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Any person may make contributions to an ABLE account for a taxable year, for the benefit of a designated beneficiary who is an eligible individual for such taxable year. Any contributions to an ABLE account, excluding any excess contributions, are an asset of the account for the benefit of the designated beneficiary.(b) No contributions will be accepted for an ABLE account unless:(1) the contribution is in U.S. dollars in the form of a check, money order, cashier's check, automatic contribution plan, ACH, including SSI or SSDI electronic deposits to the extent allowable by law, or payroll deduction;(2) the designated beneficiary is an eligible individual during the taxable year; and(3) such contribution is not an excess contribution as defined in these rules.(c) Any contributions to an ABLE account on behalf of a designated beneficiary may be subject to any applicable Internal Revenue Service gift tax rules in effect at the time of the contribution, as provided by Internal Revenue Code, §529A.(d) Excess contributions to an ABLE account will be rejected and refunded automatically to the contributor making the excess contribution after obtaining the taxpayer identification number of the contributor if required by federal law. In the event that excess contributions are refunded by the Program to the beneficiary or to the participant on behalf of the beneficiary, the Program will provide advance written or electronic notification to the beneficiary or participant of a pending refund within a reasonable time, but not less than thirty (30) days if allowed by state or federal law, prior to the refund by the Program.(e) Any contributions returned for any of the above reasons will not include earnings or interest.(f) Informational materials used in connection with a contribution to an ABLE account must clearly indicate that the account is not insured by this state and that neither the principal deposited nor the investment return is guaranteed by the state.",
            "sourceNote": "Source Note: The provisions of this §7.187 adopted to be effective September 12, 2016, 41 TexReg 7111; amended to be effective April 9, 2018, 43 TexReg 2165; amended to be effective June 22, 2023, 48 TexReg 3300."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=179869&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "179869",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "N",
                "label": "TEXAS ACHIEVING A BETTER LIFE EXPERIENCE  (ABLE) PROGRAM"
            },
            "rule": {
                "number": "§7.188",
                "label": "Distributions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=179870&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "179870",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A request for a distribution may be submitted to the Program in a format approved by the Board. The Program may request additional information as necessary to process a distribution.(b) The participant is responsible for submitting correct information regarding a distribution to a payee.(c) The Program is not responsible for any late fees or other fees or penalties that may be due to a payee related to the distribution.(d) The participant is responsible for maintaining sufficient records regarding the distribution adequate to substantiate to the Internal Revenue Service or the Social Security Administration that a distribution is for a qualified disability expense.(e) Any taxes or penalties due the Internal Revenue Service for distributions that are not qualified disability expenses are the responsibility of the participant.",
            "sourceNote": "Source Note: The provisions of this §7.188 adopted to be effective September 12, 2016, 41 TexReg 7111."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=179870&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "179870",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "N",
                "label": "TEXAS ACHIEVING A BETTER LIFE EXPERIENCE  (ABLE) PROGRAM"
            },
            "rule": {
                "number": "§7.189",
                "label": "Rollovers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=179871&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "179871",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Direct rollovers. To the extent allowed by Internal Revenue Code, §529A, available funds in a Texas ABLE Program account may be rolled over (transferred) to another qualified ABLE program in another state (a rollover) for the same beneficiary, or for another beneficiary who is an eligible member of the family. The Texas ABLE Program will accept rollovers (transfers) of funds from a qualified ABLE program in another state for the same beneficiary, or for another beneficiary who is an eligible member of the family. Available funds from a Texas ABLE account may be rolled over (transferred) to another Texas ABLE account for another beneficiary who is an eligible member of the family.(b) Indirect rollovers. The Program will accept indirect rollovers that are received not later than the 60th day after the date of such payment or distribution by the other qualified ABLE program, for the benefit of an eligible individual if the amount received is accompanied by a statement from the other qualified ABLE program providing:(1) the date the account in the other qualified ABLE program was closed;(2) the amount of contributions to the other qualified ABLE program for the calendar year in which the indirect rollover occurs; and(3) the amount of any earnings included in the amount of the indirect rollover.(c) Indirect rollovers of available funds from the Texas ABLE Program to another qualified ABLE program are subject to the requirements of Internal Revenue Code, §529A and subject to that state's requirements.(d) Rollovers may not result in more than one ABLE account per designated beneficiary.",
            "sourceNote": "Source Note: The provisions of this §7.189 adopted to be effective September 12, 2016, 41 TexReg 7111."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=179871&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "179871",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "N",
                "label": "TEXAS ACHIEVING A BETTER LIFE EXPERIENCE  (ABLE) PROGRAM"
            },
            "rule": {
                "number": "§7.190",
                "label": "Change of Beneficiary"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=179872&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "179872",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A request to change the beneficiary of an ABLE account to another eligible member of the family must be submitted in a format approved by the Board.(b) The Board may charge a fee to process a change of beneficiary for an account.(c) A change of beneficiary that satisfies Internal Revenue Code, §529A will not be treated as a distribution.",
            "sourceNote": "Source Note: The provisions of this §7.190 adopted to be effective September 12, 2016, 41 TexReg 7111."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=179872&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "179872",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "N",
                "label": "TEXAS ACHIEVING A BETTER LIFE EXPERIENCE  (ABLE) PROGRAM"
            },
            "rule": {
                "number": "§7.191",
                "label": "Change of Participant"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=179873&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "179873",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If the participant is not the designated beneficiary, the participant may be changed to another individual that meets the requirements of a participant in accordance with §7.185 of this title (relating to Participant), upon submittal of a request to the Board in a form approved by the Board, or may be changed by operation of law or contract.(b) If the participant is the designated beneficiary, the participant may be changed to another individual that meets the requirements of a participant in accordance with §7.185 of this title, if the beneficiary submits a request to the Board in a form approved by the Board, or upon submission of a court order.(c) The Board may charge a fee to process a change of participant for an account.",
            "sourceNote": "Source Note: The provisions of this §7.191 adopted to be effective September 12, 2016, 41 TexReg 7111."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=179873&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "179873",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "N",
                "label": "TEXAS ACHIEVING A BETTER LIFE EXPERIENCE  (ABLE) PROGRAM"
            },
            "rule": {
                "number": "§7.192",
                "label": "Reporting"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=179874&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "179874",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The Program will provide a periodic statement of account to the participant no less than annually. The statement will include, but not be limited to, the following information related to the account for the period reported:(1) contributions;(2) distributions;(3) fees;(4) value of the account as of the report ending date; and(5) any earnings or losses during the period reported.(b) The Program will report account information to the Internal Revenue Service, Social Security Administration, or other state or federal regulatory bodies as required by Internal Revenue Code, §529A, United States Treasury regulations or guidance, or other state or federal reporting requirements.(c) The Program will issue Internal Revenue Service Forms 1099-QA and 5498-QA and any other forms mandated in accordance with Internal Revenue Service instructions for ABLE programs for the calendar year in which any distribution is made from an account.(d) Participants may request a statement of the balance in their ABLE account at any time subject to any fees that may be charged by the Program or plan manager.",
            "sourceNote": "Source Note: The provisions of this §7.192 adopted to be effective September 12, 2016, 41 TexReg 7111."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=179874&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "179874",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "N",
                "label": "TEXAS ACHIEVING A BETTER LIFE EXPERIENCE  (ABLE) PROGRAM"
            },
            "rule": {
                "number": "§7.193",
                "label": "Account Termination"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190463&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "190463",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Voluntary termination. A participant may voluntarily terminate an ABLE account in accordance with the terms of the participation agreement and by using the procedures approved by the Board.(b) Involuntary termination. If the Board finds a participant has made a material misrepresentation regarding personal information or eligibility on the participation agreement or in any communication regarding the Texas ABLE Program, or if the designated beneficiary is deceased, the Board may involuntarily terminate and refund any available funds of the ABLE account subject to any unpaid expenses or fees due the Program, and, if applicable, for transfer to state following the designated beneficiary's death. A material misrepresentation includes, but is not limited to, providing a false taxpayer identification number or a false certification that an individual is an eligible individual or eligible member of the family.(c) A distribution related to account termination will be reported to the Internal Revenue Service and other state and federal agencies as required and may have adverse tax or benefit consequences to the beneficiary.(d) In the event that available funds are refunded by the Program for involuntary account termination, to include but not limited to material misrepresentation, the Program will provide advance written or electronic notification to the participant of a pending refund within a reasonable time, but not less than thirty (30) days if allowed by state or federal law, prior to the refund by the Program.",
            "sourceNote": "Source Note: The provisions of this §7.193 adopted to be effective September 12, 2016, 41 TexReg 7111."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190463&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "190463",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "N",
                "label": "TEXAS ACHIEVING A BETTER LIFE EXPERIENCE  (ABLE) PROGRAM"
            },
            "rule": {
                "number": "§7.194",
                "label": "Investments"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=179876&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "179876",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The Board shall administer and invest the assets of the Program. The Board shall serve as the trustee of the assets of the Program.(b) The Board may delegate to duly appointed financial institutions or plan manager(s) authority to act on behalf of the Board in the investment and reinvestment of all or part of the assets of the Program and may also delegate to those financial institutions or plan manager(s) the authority to act on behalf of the Board in the holding, purchasing, selling, assigning, transferring, or disposing of any or all of the securities and investments in which the funds in the ABLE account have been invested, as well as the proceeds from the investment of those funds.(c) The Board may select one or more financial institutions to serve as custodian of all or part of the Program's assets.(d) In the Board's discretion, the Board may contract with one or more financial institutions to serve as plan manager and to invest the money in ABLE accounts.(e) In exercising or delegating investment powers and authority, the Board shall exercise ordinary business care and prudence under the facts and circumstances prevailing at the time of actions or decisions related to investment of assets of the Texas ABLE Program. A member of the Board is not liable for any action taken or omitted with respect to the exercise of, or delegation of, those powers and authority if the member discharged the duties of the member's position in good faith and with the degree of diligence, care, and skill that a prudent person acting in a like capacity and familiar with those matters would use in the conduct of an enterprise of a like character and with like aims.(f) As applicable, the Board shall adopt an investment policy statement for the Program, set the asset allocation of the Program, select the underlying investments of the Program, and the Board shall promptly deposit and invest contributions, excluding any excess contributions, and any earnings as directed by the participant. No earnings or interest will accrue to an ABLE account before the funds have been invested.(g) For investment purposes, the Board may pool funds, or authorize the pooling of funds, from ABLE accounts with other funds administered by the Board. If funds from the ABLE accounts are pooled with other funds administered by the Board, the Board shall track, monitor, report, and record separately, all investment activity related to the ABLE accounts, including any earnings, fees, or charges or expenses associated with each ABLE account.(h) A participant may direct the investment of any contributions or any earnings on contributions only to the extent allowed by Internal Revenue Code, §529A.(i) No investment, financial, or benefits advice is offered to participants, eligible individuals, eligible members of the family, parents, designated beneficiaries, or their guardians or fiduciaries acting on their behalf, from the State of Texas, the comptroller, the Board, the Texas ABLE Program, the Texas ABLE Advisory Committee, or from their employees, vendors, or agents, nor do they assume any responsibility for the performance of any investment option. The decision to enroll in the Program, the selection of investment options, and the suitability of such options is entirely the responsibility of the participant.",
            "sourceNote": "Source Note: The provisions of this §7.194 adopted to be effective September 12, 2016, 41 TexReg 7111; amended to be effective April 9, 2018, 43 TexReg 2165."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=179876&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "179876",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "N",
                "label": "TEXAS ACHIEVING A BETTER LIFE EXPERIENCE  (ABLE) PROGRAM"
            },
            "rule": {
                "number": "§7.195",
                "label": "Refunds"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=179877&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "179877",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The participant may cancel a participation agreement at will and request refund of all of the available funds of an ABLE account less any amounts due for transfer to state, if applicable, at any time in a format approved by the Board.(b) The Board shall determine the calculation method of any refunds due for cancellations, excess contributions, transfer to state, or death of the designated beneficiary.(c) Any refunds due to cancellation or termination of an ABLE account, not including any amounts due for transfer to state, if applicable, will be payable to the designated beneficiary or participant on behalf of the designated beneficiary unless the Program is legally directed otherwise.(d) Excess contributions will automatically be refunded to the contributor by the Program without earnings or interest.(e) Distributions, including any earnings included in a refund, will be reported to the Internal Revenue Service, Social Security Administration, and any other state or federal agencies as required by law and may subject the distributee to income tax on any earnings and a tax penalty and could affect benefits or result in legal consequences.",
            "sourceNote": "Source Note: The provisions of this §7.195 adopted to be effective September 12, 2016, 41 TexReg 7111."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=179877&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "179877",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "N",
                "label": "TEXAS ACHIEVING A BETTER LIFE EXPERIENCE  (ABLE) PROGRAM"
            },
            "rule": {
                "number": "§7.196",
                "label": "Termination or Modification of Program"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=179878&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "179878",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The comptroller shall notify the governor and legislature and recommend that the Board not administer such Program or that the Program be modified or terminated if the comptroller determines that the Program is not financially feasible.(b) The Board may adjust the terms of the Program as necessary to ensure the financial feasibility of the Program, to ensure compliance with all applicable laws and regulations, or to facilitate the ability of participants to obtain or maintain federal income tax benefits or treatment provided by Internal Revenue Code, §529A. The Board shall promptly provide notification by any written or electronic communication as authorized and determined by the Board regarding a change in the terms of the Program affecting participants or designated beneficiaries. To the extent provided by state or federal law, the Board may allow up to 60 calendar days from the date of such notice for participants to exit the Program by withdrawing any available funds under the then-current terms. If participants do not opt to exit the Program during the opt-out period, they shall be deemed to have accepted the new terms and their ABLE accounts shall be subject to the new terms on the effective date of the change.(c) If the Program is terminated by the legislature, any available funds in an ABLE account will be paid, to the extent possible, to the designated beneficiary or the participant on behalf of the designated beneficiary, subject to any outstanding fees or charges due the Program and, if applicable, transfer to state following the designated beneficiary's death.(d) In the event that available funds are refunded by the Program due to termination of the Program, the Program will provide advance written or electronic notification to the participant of a pending refund within a reasonable time, but not less than thirty (30) days, prior to the refund by the Program.",
            "sourceNote": "Source Note: The provisions of this §7.196 adopted to be effective September 12, 2016, 41 TexReg 7111."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=179878&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "179878",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "N",
                "label": "TEXAS ACHIEVING A BETTER LIFE EXPERIENCE  (ABLE) PROGRAM"
            },
            "rule": {
                "number": "§7.197",
                "label": "Program Limitations"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=224589&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "224589",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Nothing in this Program or in any participation agreement entered into under this Program may be construed to guarantee that amounts saved under the Program will be sufficient to cover the qualified disability expenses of a designated beneficiary.(b) Nothing in this Program or in any participation agreement entered into under this Program may be construed to create any obligation of the State of Texas, any agency or instrumentality of the State of Texas, financial institution or plan manager to guarantee for the benefit of a participant:(1) the return of any amount contributed to an account;(2) the rate of interest or other return on an account; or(3) the payment of interest or other return on an account.(c) An ABLE account is not insured by the State of Texas. The principal deposited into an ABLE account is not guaranteed by the State of Texas. The investment return of an ABLE account is not guaranteed by the State of Texas.(d) The participant is fully responsible for any impact an ABLE account might have on the designated beneficiary's eligibility for Supplemental Security Income, Medicaid, or other public benefits.(e) The participant is fully responsible for notifying and providing the Program with accurate account information, including current mailing address, necessary for delivery of account statements, notices, or correspondence.",
            "sourceNote": "Source Note: The provisions of this §7.197 adopted to be effective September 12, 2016, 41 TexReg 7111."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=224589&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "224589",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "7",
                "label": "PREPAID HIGHER EDUCATION TUITION PROGRAM"
            },
            "subchapter": {
                "number": "N",
                "label": "TEXAS ACHIEVING A BETTER LIFE EXPERIENCE  (ABLE) PROGRAM"
            },
            "rule": {
                "number": "§7.198",
                "label": "ABLE Program Advisory Committee"
            },
            "nextRule": {
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                "recordId": "153795",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) The ABLE Program Advisory Committee is established to provide to the Board the committee's collective expertise as members, advocates, financial, business, legal, and veteran advisors, or other supporters of the disability community regarding the administration of and experiences with the ABLE Program. The role and responsibility of the advisory committee is to advise and make recommendations to the Board. The goal of the advisory committee is to support the Board in ensuring that the needs of ABLE Program participants are met.(b) The comptroller shall appoint at least five and not more than seven members to the advisory committee, including at least one member from each of the following groups:(1) persons with a disability who qualify for the program;  (2) family members of a person with a disability who qualifies for the program;(3) representatives of disability advocacy organizations or the veteran community; (4) representatives of the financial community; and(5) representatives of the business or legal community.(c) The comptroller shall designate one appointed member to act as the presiding officer of the advisory committee.(d) The initial members appointed to the advisory committee shall serve for staggered terms, starting on the date of their appointment, with the first two appointees serving for a six-year term, the next two appointees serving for a four-year term and the remaining appointees serving for a two-year term. Members appointed to replace the initial appointed members shall serve for six-year terms from the date of their appointment.(e) All advisory committee members are appointed by and serve at the pleasure of the comptroller. Subject to subsection (b) of this section, in the event of a vacancy on the advisory committee, the comptroller may appoint a replacement to serve the remainder of the unexpired term.(f) The advisory committee shall meet as frequently as the presiding officer or comptroller determines is necessary to carry out the responsibilities of the committee. (g) A majority of the appointed members shall constitute a quorum.(h) Members must complete training provided by the comptroller prior to being an active voting member of the committee.(i) A member of the advisory committee is not entitled to compensation or reimbursement for travel expenses.(j) In addition to any requirements provided by law, the advisory committee shall adopt and enforce an ethics and conflicts of interest policy that applies to all members of the advisory committee.  (k) The continuing need for the advisory committee shall be evaluated by the Board at least once every two years; the Board may abolish the advisory committee at any time it determines that the advisory committee is no longer needed.(l) The advisory committee shall adopt a policy to ensure it complies with any applicable provisions of Government Code, Chapter 551 regarding open meetings.",
            "sourceNote": "Source Note: The provisions of this §7.198 adopted to be\r\neffective June 6, 2022, 47 TexReg 3271; amended to be effective April\r\n2, 2025, 50 TexReg 2234."
        },
        {
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            "currentRecordId": "153795",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURE"
            },
            "rule": {
                "number": "§9.101",
                "label": "Conduct of the Property Value Study"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Appraisal--A statement that estimates the market value or other legally required value of property.(2) Appraisal ratio--The ratio of a property's appraised value as determined by the appraisal office or appraisal review board (the County Appraisal District (CAD)) value, as applicable to:(A) the sale price of the property; or(B) an independent appraisal of the property, as applicable.(3) Appraiser--A comptroller employee or contractor who conducts appraisals for the property value study.(4) Assigned value--The value of property determined in the property value study.(5) Coefficient of dispersion--The absolute average deviation of appraisal ratios in a sample from the median appraisal ratio for the sample, expressed as a percentage of the median.(6) Comptroller--The Comptroller of Public Accounts or the Comptroller of Public Accounts' designee.(7) Confirm--A sale is confirmed when the comptroller has documented that the sale price for a property is correct.(8) Documentary evidence--Writings such as letters, memoranda, appraisal records, or deeds.(9) Local property--Property other than utility, industrial, mineral, or 1-d or 1-d-1 qualified agricultural property.(10) Median appraisal ratio--The median level of appraisal is the median appraisal ratio of a sample of properties collected as part of the school district taxable value study in an appraisal district. The median appraisal ratio for a sample of properties is, in a numerically ordered list of the appraisal ratios for the properties:(A) if the sample contains an odd number of properties, the appraisal ratio above and below which there is an equal number of appraisal ratios in the list; or(B) if the sample contains an even number of properties, the average of the two consecutive appraisal ratios above and below which there is an equal number of appraisal ratios in the list.(11) Price related differential--The price related differential is the mean of a property sample divided by the weighted mean of that sample.(12) Property value study--The studies conducted by the comptroller in alternating or consecutive years pursuant to Government Code, §403.302 and Tax Code, §5.10, according to a coordinated schedule that ensures that CAD reviews required by Tax Code, §5.102 are conducted in years in which the studies of school districts within the CAD are not performed, except when consecutive year studies are mandated. The schedule of alternating studies and CAD reviews shall be determined by the comptroller.(13) Random sample--A sample in which each item of the population has an equal chance of being included.(14) Representative sample--Representative means composed of individual properties that collectively reflect the individual characteristics of the population from which they were drawn. A representative sample meets the requirements for operational representativeness set forth in the International Association of Assessing Officers' Standard on Ratio Studies.(15) Sale--A transfer of property for consideration.(16) Sale date--The date on which a deed or other document transferring title to real property by sale is executed.(17) Sample--A group of properties analyzed to determine characteristics of property in a school or appraisal district.(18) School district split--Each portion of a school district located in different counties where properties are appraised by different appraisal districts.(19) Stratification--Stratification divides the range of information for property in a district or property category into intervals and lists the number and CAD value of properties falling into each interval.(20) Stratified weighted mean appraisal ratio--A stratified weighted mean appraisal ratio is calculated by separating the properties in a category sample into subcategories by value range or other property characteristics (strata) and determining the weighted mean appraisal ratio for each of the strata. The value of property in each of the strata is calculated by dividing the total CAD value by the weighted mean appraisal ratio. These individual market value estimates are then added to produce a market value estimate for the total category sample. The total CAD value of property in the category is then divided by the total category market value estimate to produce the stratified weighted mean ratio.(21) Verify--A sale is verified when the comptroller has documented that a sale is a market value transaction as defined by Tax Code, §1.04(7).(22) Weighted mean appraisal ratio--The weighted mean appraisal ratio is a number calculated by dividing the total CAD value of property in a sample by the total of corresponding sale prices or appraised values of property in that sample.(b) General statement of policy. The study constitutes a limited audit of the taxable value of property in the districts. The purpose of this section is to ensure that sufficient competent and relevant evidence affords a reasonable basis for the comptroller's judgments and conclusions regarding the taxable value of property in a school district and the appropriate measures of appraisal level and uniformity in an appraisal district.(c) General standard. Except where inconsistent with these sections, the Standard on Ratio Studies, International Association of Assessing Officers, is adopted by reference as a standard for the conduct of the property value study. For the purposes of ratio study design, including but not limited to stratification and sampling design, the requirements to apply appropriate standard statistical analysis techniques set out in Tax Code, §5.10(a) and to use generally accepted auditing and sampling techniques set out in Government Code, §403.302(a) and (b) are met by complying with the Standard on Ratio Studies.(d) Changing appraisal methods. The comptroller will consult regularly with representatives of property owners, industries, appraisal firms, and other interested parties to keep abreast of changing appraisal methods.(e) Selection of property studied. The accuracy of the estimate of taxable property value for each school district in this state shall be the primary consideration in determining the amount and category of property included in the study sample.(1) The comptroller may determine whether a category or class of property in a school district is a major category or class of property to be included in the study on a case-by-case basis. To maximize accuracy or efficient use of resources, the comptroller may decline to sample or estimate category values or measures. If a category or class of property except land qualified for appraisal based on its productive capacity has an appraised value as determined by the CAD of 5.0% or less of the total appraised value of property in categories sampled in the study, the comptroller may decline to sample or estimate the value of that category or class of property.(2) The comptroller may determine that a school district split does not have enough value to necessitate that a study be conducted in that portion of the school district. Except in cases where the school district has values split among multiple counties, the comptroller will study at least 85% of the total value for the school district in categories deemed to have enough value to sample.(3) If the comptroller does not sample a school district split, a category of property in a school district, or a subcategory of property in a school district, the comptroller may calculate the district's taxable value by using the district's locally reported value to represent the value of the school district split, category, or subcategory not included in the sample.(f) Taxpayer data. Owners of large unique or complex properties should be advised if these properties are included in the property value study. Taxpayers shall have the option of presenting data to the comptroller to verify the CAD value as representative of market value for inclusion in the study. The comptroller shall have the option of accepting the indicated market value for inclusion in the property value study.(g) Determining taxable value. The taxable value of certain classes of property shall be determined according to the following appraisal methods:(1) Agricultural land qualified for productivity appraisal. The comptroller may determine the productivity value of land qualified for productivity appraisal in a school district through direct appraisal. The staff shall estimate an average value per acre for each land class in each school district using information provided by published sources and by individuals knowledgeable concerning local agricultural conditions. The estimated average productivity value per acre shall be developed using the same methods applicable to appraisal districts under §9.4001 of this title (relating to Valuation of Open-Space and Agricultural Lands). The estimated value per acre shall be applied to the total number of acres in each land class reported in the school district report of property value to determine the total value of property in each class. The sum of the values of each class is the total value of agricultural property receiving productivity appraisal in the school district.(2) Timber land qualified for productivity appraisal. The comptroller may determine the productivity value of land qualified for timber appraisal in a school district through direct appraisal. The staff shall estimate an average value per acre for each soil class and type of timber in each school district using information provided by published sources and by individuals knowledgeable concerning local timber production. The estimated average productivity value per acre shall be developed using the same methods applicable to appraisal districts under §9.4011 of this title (relating to Appraisal of Timberlands). The estimated value per acre shall be applied to the total number of acres in each soil class for each type of timber reported in the school district report of property value to determine the total value of property in each class. The sum of the values of each class is the total value of timber property receiving productivity appraisal in the school district.(3) Utility property. Utility samples in a school district are chosen using a method that ensures sampling dominant properties and other properties as appropriate. Utilities shall be valued using recognized unitary valuation methods, that may include one or more of the cost, income, and market (sales comparison or stock and debt) approaches. Utility unit values will be allocated using generally accepted allocation methods based on the best information available. Appraisers shall consider the effects of regulation, if applicable.(4) Industrial property. If the comptroller appraises an industrial property, the property shall be valued using generally accepted appraisal methods. If staff selects an industrial property sample, the property sample shall be selected without regard to whether the appraisal district performs its own industrial property appraisals.(5) Mineral property. Mineral samples in a school district shall be chosen using a method that ensures sampling dominant leases and a sample of other leases as appropriate. Minerals shall be appraised using generally accepted appraisal methods, emphasizing the income approach to value.(6) Local property. The comptroller shall make its determination of local property values on the basis of representative samples of property selected within school districts. Except as provided in this section, the comptroller shall select samples of properties based on the comptroller's judgment of the number and kind of properties required to be sampled to reasonably reflect the taxable value of property in each school district. The comptroller staff is not required to but may employ random sampling or other sampling procedures where feasible and appropriate.(A) Estimated sample sizes shall initially be assigned by supervisory staff. The overall goal in setting the sample size is to obtain school district taxable values that are acceptably accurate and reliable. The sample size assigned for a particular category of property in a particular school district is based on the available comptroller time, the availability of current sales, variability of ratios, and the relative value of the category. A sample may be larger or smaller than the assigned sample if the school district's resulting taxable value is determined by supervisory staff to be acceptably accurate and reliable.(B) Samples may include a combination of sales and appraisals that satisfies both size and representativeness requirements. However, a sample may consist of sales only or appraisals only. All meaningful property characteristics shall be considered in selecting non-random samples. The following guidelines should be followed in non-random selection:(i) the sample should not be weighted in favor of sold properties that are appraised at a different level from unsold properties;(ii) a sample should include properties from each primary geographic area, if the geographic area contains a significant number of the kind of property being tested and the property has significant value;(iii) a sample should include improvements of varying ages;(iv) sample selection should consider other property characteristics such as construction type, size, use, and business type, as required;(v) stratification information should be used to ensure that samples are representative. If stratification data are unavailable, an appraiser should use informed judgment and knowledge of the area in a reasonable effort to ensure that samples are representative.(C) Appraisers shall categorize sample properties as they are categorized by appraisal districts (Category A, B, C, etc.), unless the comptroller determines that a property or portion of property is categorized incorrectly, in which case the comptroller may move the value of the property into the correct category. The comptroller's decision to re-categorize property may be the subject of a protest provided by Government Code, §403.303.(D) Appraisers should develop a sales population to maintain a thorough knowledge of local markets and appraisal practices; and to provide a population of sales from which to select property samples. Appraisers should gather sales that occurred over as broad a time period as practicable and should gather sales from a variety of sources, such as appraisal districts, real estate professionals, title companies, financial institutions, courthouse records, and other reliable sources.(i) As a general rule, if an appraiser's sample size is less than all the sales within a relevant time period, the sales sample will be selected randomly. However, other sample selection methods may be used.(ii) The appraiser must document the source of each sale included in the property value study. The appraiser must use codes to identify the source of each sale entered into the comptroller sale/appraisal system. The appraiser must maintain sufficient written documentation to permit source verification upon request.(iii) The appraiser must confirm and verify at least 20% of the sales included in each category sample for each school district or school district split from sources other than the appraisal district.(iv) Sales included in a sample must be market transactions. Market transactions are consistent with the definition of market value found in Tax Code, §1.04(7). For the purposes of that section, the term \"price\" means the most probable price. As provided in the Standard on Ratio Studies, International Association of Assessing Officers, transactions that may be non-arm's-length sales should be clearly identified and used only if it can be established that they are consistent with the definition of market value.(v) If an appraiser questions whether a transaction selected for use in the study is a market sale, the appraiser should obtain sales agreements, closing statements, statements from parties to the transaction, deed records that disclose full consideration, or other evidence sufficient to determine whether or not the transaction is a market transaction.(vi) The appraiser must exclude sales of properties that change category or significant physical characteristics after the sale but before the assessment date.(vii) The appraiser may not exclude a sale solely because it appears to be inconsistent with other sales in the sample. Such sales should be verified. The inconsistencies may indicate that a sale is not a market transaction, but they also may indicate that information regarding the sale was recorded incorrectly. If further investigation reveals that the sale was indeed a legitimate market transaction, the appraiser may include it in the sample, despite its apparent inconsistency. If the investigation, however, reveals that the sale was not a legitimate market transaction, the sale should be excluded.(viii) Generally, when financing reflects prevailing market practices and interest rates, sales prices require no adjustment. Adjustments should be considered if:(I) the seller and lender are the same party and financing is not at prevailing market rates;(II) the buyer assumes an existing mortgage at a non-market rate of interest; or(III) lenders charge the seller \"points\" (a percentage of the loan amount) for making money available to the purchaser/borrower.(ix) Some forms of mortgage terms also may require adjustment. If these adjustments alter the sales price significantly, the use of the sale as a good indicator of market value may be questionable.(x) The appraiser shall adjust sales samples for the effect of time if there is evidence of a significant value increase or decrease during the period from which sales are drawn. The appraiser must document how the time adjustments were determined. As an alternative to time adjustment, the appraiser may randomly select samples so that the value of properties sold during a specified period before the assessment date roughly approximates the value of properties sold during a similar period after the assessment date. A sample balanced in this manner will negate the effect of changes in the level of market values if those changes occurred uniformly over the study time frame.(xi) The comptroller may use a method of adjusting for financing, time, personal property, or other matters affecting the sales price, that includes an overall adjustment affecting all or any relevant portion of the sales in the sample.(xii) If the comptroller determines that recently sold properties are appraised by the appraisal district at a different level of value than unsold properties, the comptroller may take actions to ensure that the unsold properties are fairly represented in the sample. These actions may include using appraisals in the sample, using sales that occurred after the appraisal district certified the school district tax rolls in the sample, deleting sales from the sample, or other adjustments the comptroller deems necessary to maintain the integrity of the property value study.(E) Appraisals of local property are performed if the comptroller determines they are necessary to ensure the study develops competent evidence of the value of all property in the school district. Appraisals are used to ensure a representative sample of sufficient size and to test whether sold and unsold properties are assessed at the same level. The following guidelines govern the use of appraisals:(i) appraisal samples shall be selected randomly if practicable;(ii) appraisals shall be conducted using generally accepted appraisal practices. The comptroller shall prepare written procedures as needed to conduct appraisals. The written procedures are open records. Supervisory staff shall selectively test appraisals to ensure the consistency and accuracy of data throughout the state;(iii) appraisers should physically inspect each property appraised. If acreage or lots cannot be physically inspected, the appraiser may use appraisal cards, aerial photographs, soil maps, and other relevant information in performing appraisals;(iv) in appraising a particular property, the appraiser may not consider the value placed on that property by the appraisal district. However, the appraiser may consult with appraisal district staff and review appraisal district records to gather information relevant to the appraisal;(v) the market value estimate for a particular property account must include the value of all property associated with that account, e.g., multiple improvements, paving, outbuildings, signs, business vehicles, additional lots, etc. The appraiser may use the appraisal district's value for any item(s) that the appraiser is unable to appraise if the item(s) in question represent an insignificant portion of the appraisal district's total appraised value for the account.(h) Local reports of taxable value. Local reports of taxable value are essential parts of the property value study. Appraisal districts shall submit their annual appraisal roll using the comptroller's Electronic Appraisal Roll Submission record layout according to §9.3059 of this title (relating to Certification of Appraisal Roll). This submission results in a local report of taxable value which the comptroller shall thoroughly review as needed to ensure reliability. The comptroller must document the date of and reasons for each revision.(i) Protest or request for audit. A protest or request for an audit of the Property Value Study findings shall be submitted in accordance with Subchapter L of this chapter (relating to Procedures for Protesting Comptroller Property Value Study and Audit Findings) or §9.103 of this title (relating to Audits of School District Taxable Property Values), as applicable.(j) Determination of school district value. School district taxable values shall be determined in a manner that maximizes the accuracy and reliability of the taxable value in each school district.(1) The taxable value of a category of property in a school district shall be determined by dividing the total locally appraised value of property in that category by the weighted mean or stratified weighted mean ratio for the sample of property selected from that category. However, the taxable value of property in a category may be determined by other methods if it is determined that sufficient competent evidence requires their use.(2) The taxable value of property in a school district shall be determined by adding together the taxable value of property in each category of property in the school district and subtracting from the total the items listed in Government Code, §403.302(d). However, the taxable value of property in a school district may be determined by other methods if it is determined that sufficient competent evidence requires their use.(k) Determination of appraisal district measures. Appraisal district measures shall be determined from the sales and appraisals gathered as a part of the school district taxable value study.(1) The median level of appraisal for each category of property in the appraisal district and for the appraisal district as a whole is determined as provided by Tax Code, §5.10.(2) The coefficient of dispersion for each category of property in the appraisal district and for the appraisal district as a whole is determined as provided by Tax Code, §5.10.(3) The comptroller may determine and report other measures of appraisal accuracy and uniformity it deems useful and informative.(l) Certification of taxable values in school districts in which Government Code, §403.302(d)(9)(B) is applicable. The comptroller will determine separate taxable values to reflect value subject to maintenance and operations tax rates and value subject to interest and sinking fund tax rates in school districts in which Government Code, §403.302(d)(9)(B) is applicable. Such values will be certified to the commissioner of education, published, and delivered as required under Government Code, §403.302.",
            "sourceNote": "Source Note: The provisions of this §9.101 adopted to be effective December 13, 1996, 21 TexReg 11811; amended to be effective March 31, 2010, 35 TexReg 2605; amended to be effective December 4, 2011, 36 TexReg 8037."
        },
        {
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            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
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            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "A",
                "label": "PRACTICE AND PROCEDURE"
            },
            "rule": {
                "number": "§9.103",
                "label": "Audit of Total Taxable Value of Property in a School District"
            },
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            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Agent--A duly authorized individual designated to act as agent on behalf of a school district for the purpose of filing a request for audit pursuant to this section.(2) Commissioner--The Texas Commissioner of Education.(3) Comptroller--The Texas Comptroller of Public Accounts.(4) Director--The director of the Property Tax Assistance Division.(5) Division--The Property Tax Assistance Division of the office of the comptroller.(6) Effective date--A single date designated in a request for audit for which all values and other reported information are submitted for an audit under Government Code, §403.302(h) (Determination of School District Property Values).(7) Property value study or study--A study conducted by the comptroller pursuant to Government Code, §403.302.(8) Request for audit or request--A request for an audit filed with the division pursuant to Government Code, §403.302(h).(9) Study year--A tax year, as defined by Tax Code, §1.04(13) (Definitions), for which the comptroller has conducted a study, or is conducting a study.(10) Taxable value--The \"taxable value\" as defined by Government Code, §403.302(d).(11) Taxable value audit or audit--An examination, inspection and review of the total taxable value of property in a school district conducted pursuant to Government Code, §403.302(h).(b) Requests from school districts.(1) A school district may request an audit of the total taxable value of property in the school district. A school district must make the request for audit by submitting a Request for School District Taxable Value Audit (Form 50-302) to the director, in writing, with a stated effective date and must include the following:(A) School District Report of Property Value (Form 50-108);(B) Report of Value Lost Because of the School Tax Limitation on Homesteads of the Elderly/Disabled (Form 50-253);(C) Report of Value Lost Because of Deferred Tax Collections Under Tax Code, §33.06 and §33.065 (Form 50-851);(D) Report of Value Lost Because of School District Participation in Tax Increment Financing (TIF) (Form 50-755);(E) Report of Value Lost Because of Value Limitations Under Tax Code, Chapter 313 (Form 50-767); and(F) An automated or computer-generated summary of appraisal roll information that:(i) is certified in accordance with Tax Code, §26.01 (Submission of Rolls to Taxing Units) by the chief appraiser who appraises property for the requesting school district;(ii) is produced by the certifying chief appraiser or a taxing unit that collects for the school district; and(iii) reports values with the same effective date as, and matching each value shown as a line item on, the School District Report of Value (Form 50-108).(2) In lieu of the Report of Value Lost Because of Deferred Tax Collections Under Tax Code §33.06 and §33.065 (Form 50-851), or the Report of Value Lost Because of School District Participation in Tax Increment Financing (TIF) (Form 50-755), or the Report of Value Lost Because of Value Limitations Under Tax Code, Chapter 313 (Form 50-767), the school district may provide a written, signed affirmative statement that the school district has $-0- of lost value to report on the form or forms. The statement must list each form by title and be signed by the superintendent of the school district or the school district's properly designated agent.(c) Requests from the commissioner. The commissioner may request an audit of any school district's total taxable value. The commissioner must make the request for audit in writing, with a stated effective date, and submit the request to the director. The request must be signed by the commissioner. A school district subject to a request for audit from the commissioner must submit all documentation required under subsection (b)(1) - (2) of this section within 30 days of notification by the division that an audit has been requested.(d) Deadlines for filing requests.(1) Except as otherwise provided in this subsection, a request for audit must be filed with the division not later than the third anniversary of the date of the final certification of the property value study findings for the study year subject to the request for audit.(2) If the chief appraiser corrects the appraisal roll under Tax Code, §25.25 (Correction of Appraisal Roll) or §42.41 (Correction of Rolls), and the change to the appraisal roll results in a material reduction in the total taxable value of property in the school district, then the request for audit may be filed with the division not later than the first anniversary of the date the chief appraiser certified the change to the appraisal roll under Tax Code, §25.25 or §42.41. For purposes of this subsection, a reduction in the total taxable value of property in a school district is considered a material reduction if the superintendent, or other individual authorized by the school district with specific knowledge of the school district's finances, signs a written statement certifying that the correction to the appraisal roll results in a material reduction in the total taxable value of property in the school district.(e) Number of requests. For the purpose of audits subject to the deadline prescribed by subsection (d)(1) of this section, up to three separate requests for audit pertaining to the same school district and study year may be submitted at any time before the deadline.(f) Methods of delivery for requests. The requestor is responsible for verifying receipt by the division regardless of the method of delivery. A request for audit may be submitted to the division as follows:(1) by personal delivery at 1711 San Jacinto Blvd., Third Floor, Austin, Texas 78701;(2) by United States Postal Service, regular first-class mail, properly addressed with postage prepaid and bearing a post office cancellation mark on or before the applicable deadline for a request under subsection (d) of this section;(3) by common or contract carrier in a properly addressed envelope or package, bearing a receipt mark on or before the applicable deadline for a request for audit under subsection (d) of this section; or(4) electronically, via email sent to and received by ptad.audit@cpa.texas.gov with the title \"AUDIT REQUEST\" in the subject line. A file transfer protocol (\"FTP\") is available if requested in the email.(g) Rejection of requests. The division may reject a request for audit if:(1) the request does not meet the requirements of this section;(2) the request omits or fails to complete any item required in subsection (b) of this section;(3) the request fails to meet the deadlines prescribed by subsection (d) of this section;(4) the request raises an issue previously determined in a protest of preliminary findings of value;(5) the request asks for revisions that duplicate revisions requested in a previous audit for which the comptroller has certified a final audit finding under Government Code, §403.302(h); or(6) the request involves a study year for which the relevant comptroller records do not exist or cannot be retrieved or replicated.(h) Incomplete submissions and resubmissions of requests. A request for an audit submitted to the division which omits a required item listed in subsection (b) of this section is an incomplete submission. A request that is rejected based on an incomplete submission may be brought into compliance and resubmitted before the applicable deadlines prescribed in subsection (d) of this section.(1) A request that is rejected based on an incomplete submission shall be counted as a request for audit for purposes of subsection (e) of this section.(2) A request that is resubmitted shall be counted as a new request for audit for the purposes of subsection (e) of this section.(i) Additional information. The director may require additional information from the school district, its appraisal district, or any other source as needed to complete the taxable value audit. The director shall provide written notice of the requirement for additional information.(1) If the school district or its appraisal district does not provide the additional information requested by the director within 30 days, plus any applicable period of extension, the director may deny any adjustments related to the additional information.(2) Upon the written request of the school district or its appraisal district, the 30 day period may be extended for an additional 15 days if the school district or its appraisal district cannot obtain the information for reasons outside of the school district's or its appraisal district's control, and the school district or its appraisal district reports the reasons in the written request for extension.(j) Conduct of the examination, inspection and review. Division staff may accept numerical documentation with nominal internal inconsistencies, reject numerical documentation that leads to unreasonable results, and otherwise exercise sound judgment in arriving at the most accurate total taxable value for the school district. Division staff may conduct the taxable value audit by examining, inspecting or reviewing the required documentation submitted with the request for audit, or may include an examination, inspection and review of the relevant information in person at the tax office, appraisal office, or any other public office.(k) Withdrawal of request. A request for audit may be withdrawn at any time before the comptroller certifies the audit findings.(l) Certification of findings and protest. After considering all the relevant information submitted by the school district and other reliable sources, division staff shall recalculate the school district's total taxable value. Upon the determination of the findings of the audit, the comptroller shall certify the findings to the commissioner in accordance with Government Code, §403.302(h). A school district, or a property owner whose property is included in the audit under Government Code, §403.302(h) and whose tax liability on the property is $100,000 or more, may protest the audit findings pursuant to Subchapter L of this chapter.(m) Forms for audit request. The forms identified in this section are available on the comptroller's website or may be obtained from the Comptroller of Public Accounts, Property Tax Assistance Division, P.O. Box 13528, Austin, Texas 78711-3528. These forms may be revised at the discretion of the comptroller.",
            "sourceNote": "Source Note: The provisions of this §9.103 adopted to be effective May 26, 2020, 45 TexReg 3518."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=26783&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "26783",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "B",
                "label": "PERFORMANCE AUDIT ADMINISTRATION"
            },
            "rule": {
                "number": "§9.201",
                "label": "Performance Audit Procedures"
            },
            "nextRule": {
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            "ruleBody": "(a) The following parties may request a performance audit of an appraisal district under this section as provided by the Tax Code, §5.12:(1) the governing bodies of a majority of the taxing units participating in an appraisal district;(2) the governing bodies of a majority of the taxing units entitled to vote on the appointment of appraisal district directors;(3) the owners of not less than 10% of the number of accounts or the owners of not less than 10% of the number of parcels of property established by the Comptroller of Public Accounts for purposes of the study conducted under the Government Code, §403.302, if the class constitutes at least 5.0% of the appraised value of taxable property within the district in the preceding year; or(4) the owners of property representing not less than 10% of the appraised value of all property in the district belonging to a class of property established for purposes of the study conducted by the Comptroller of Public Accounts under the Government Code, §403.302, if the class constitutes at least 5.0% of the appraised value of taxable property in the district in the preceding year.(b) A performance audit must be requested in writing on a Comptroller of Public Accounts form. Taxing units must use Comptroller of Public Accounts Form 50-239. Property owners must use Comptroller of Public Accounts Form 50-238. Comptroller of Public Accounts Forms 50-238 and 50-239 are adopted by reference. Copies of the forms can be obtained from the Comptroller of Public Accounts, Property Tax Division, P.O. Box 13528, Austin, Texas 78711-3528.(c) A request for a performance audit must contain the following information:(1) a request from taxing units must include the name and original signature of the presiding officer of each requesting unit and copy of the resolution or other evidence of official action that authorizes the request;(2) a request from property owners must include the name and original signature of each requesting property owner, the account or parcel number(s) of the owner's property, and the appraised value of the property the preceding tax year;(3) the name of the appraisal district that is the subject of the request;(4) information showing that the parties to the request meet all requirements for requesting a performance audit established by the Tax Code, §5.12(b) and (c);(5) whether the performance audit requested is a general audit or is to be limited to one or more specific areas of performances, and identifying the specific areas; and(6) the designation of an individual as the sole representative of all parties to the request for performance audit. All matters pertaining to the audit and requiring communications or transactions between the comptroller and the parties making the request will be directed by the comptroller to the requested parties through the designated representative.(d) A general audit shall consider and report on the following areas of performance:(1) the extent to which the district complies with applicable law or generally accepted standards of appraisal or other relevant practice;(2) the uniformity and level of appraisal of major kinds of property and the cause of any significant deviations from ideal uniformity and equality of appraisal of major kinds of property;(3) duplication of effort and efficiency of operation;(4) the general efficiency, quality of service, and qualification of appraisal district personnel; and(5) except as otherwise provided by subsection (e) of this section, any other matter included in the request for the audit.(e) Parties may not request an audit of:(1) the financial condition of the appraisal district;(2) an appraisal district's tax collections;(3) an appraisal district function that is not required of the appraisal district by the Tax Code, the Education Code, or other laws of the state of Texas;(4) a function the appraisal district performs under interlocal contracts or pursuant to a consolidation election held under the Tax Code, §6.26;(5) an action of an individual not directly related to the performance of the appraisal district;(6) an alleged criminal act or act of official misconduct as defined in the Penal Code;(7) the value of a particular property; the grant or denial of an exemption in a particular case, the grant or denial of special appraisal to a particular property, the situs of a particular property, or similar matters involving individual properties that are properly in the jurisdiction of the appraisal review board;(8) an issue other than the level of appraisal or degree of uniformity of a category of property or of all property in the appraisal district that is directly involved in litigation; or(9) a matter that involves actions or determinations in any year earlier than the year of the request.(f) The comptroller shall approve all requests for performance audits meeting the requirements set forth within this section.(g) The comptroller shall disapprove those requests for performance audits that do not meet the requirements of this section and those portions of requests for performance audits containing requests to audit any of the areas listed within subsection (e) of this section.(h) For purposes of this chapter the property value study conducted by the comptroller under the Government Code, §403.302, and the Tax Code, §5.10, is a performance audit on a matter of uniformity and level of appraisal of property in an appraisal district.(i) The comptroller shall send written notice of an audit request to the presiding officer of the appraisal district board of directors and to the chief appraiser within seven days after receipt of the request.(j) Following approval of an audit request, the comptroller may require a pre-audit conference with the requesting parties or their representative. The purpose of the conference will be to clarify the elements of the audit request and to provide a foundation for an accurate cost estimate.(k) Prior to the start of a performance audit, the comptroller shall prepare and deliver to the requesting parties an estimate of anticipated costs of conducting the audit. Costs include expenses related to salaries, professional fees, travel, reproduction or other printing services, and consumable supplies that are directly attributable to conducting the audit.(l) If at any time during the audit the comptroller finds that additional costs are anticipated above the original cost estimate, the comptroller shall amend the costs.(m) Following completion of a cost estimate, the comptroller shall direct the requesting parties to deposit with the comptroller security in the amount of the cost estimate to secure payment of the costs of conducting the audit.(n) The security required by subsection (m) shall be a cash deposit or other financial security the comptroller determines is adequate to cover the expected costs to the comptroller of conducting the audit.(o) Security shall be deposited in the name of or assigned to the Comptroller of Public Accounts.(p) If the comptroller finds that costs are anticipated above the cost estimate, he may require additional security from the requesting parties.(q) Following the satisfaction of all security requirements, the comptroller shall provide written notice of the commencement date of the audit. Notice shall be made to the authorized representative of the requesting parties, to the presiding officer of the appraisal district board of directors, and to the chief appraiser at least 14 days prior to the beginning of field work on the audit.(r) The comptroller staff shall develop standards and procedures for conducting performance audits under this chapter.(s) Following payment of the costs of conducting the audit and completing the report, the comptroller shall report the results of its audit. The report shall address all elements of the request as approved by the comptroller. If the request is for an audit limited to one or more particular matters, the report shall be limited to those matters. The report shall be in writing to the governing body of each taxing unit that participates in the appraisal district, to the chief appraiser and to the presiding officer of the appraisal district board of directors. If the audit was requested by property owners, a written report shall also be provided to the representative of the property owners who requested the audit.(t) The comptroller may discontinue the audit in whole or in part:(1) if requested to do so by the requesting parties;(2) if any matter within the audit request becomes the subject of litigation or protest or challenge before the appraisal review board in the county; or(3) if any matter within the audit request becomes the subject of a criminal investigation or prosecution.(u) If the audit is discontinued, the comptroller shall make and distribute a report of costs incurred and elements of the request considered by the comptroller, if any.",
            "sourceNote": "Source Note: The provisions of this §9.201 adopted to be effective December 13, 1996, 21 TexReg 11815."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=153796&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "153796",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "B",
                "label": "PERFORMANCE AUDIT ADMINISTRATION"
            },
            "rule": {
                "number": "§9.301",
                "label": "Appraisal District Reviews"
            },
            "nextRule": {
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            "ruleBody": "(a) Definitions. The following words and terms when used in this subchapter shall have the following meanings unless the context indicates otherwise.(1) Comptroller--The Texas Comptroller of Public Accounts or the comptroller's designee.(2) District--A county appraisal district.(3) Division--The Property Tax Assistance Division of the Office of the Comptroller of Public Accounts.(4) Generally accepted appraisal standards, procedures, and methodology--Standards and procedures adopted or recommended by the International Association of Assessing Officers (IAAO) concerning appraisal, contracting, personnel, and administration of ad valorem taxation, and The Appraisal Foundation's Uniform Standards of Professional Appraisal Practice.(5) Review--The comptroller's review of the governance of each appraisal district, taxpayer assistance provided, and the operating and appraisal standards, procedures, and methodology used by each appraisal district as required by Tax Code, §5.102.(6) Score--The measure of performance indicated at the conclusion of a review.(7) Study--The property value studies required by Government Code, §403.302 and Tax Code, §5.10.(8) Remedial action--Activities and decisions made by the board of directors of a district that demonstrate awareness of and concern for implementing the review's recommendations and actions taken which demonstrate significant progress towards implementing the recommendations in a timely manner.(b) Biennial Review. A review of every district shall be conducted once every two years according to a schedule in which approximately one-half of the districts are subject to reviews each year. The comptroller may determine the schedule of reviews and assignments of districts based on considerations which include, but are not limited to, the efficient use of comptroller resources and coordination with the schedule for conducting the study.(c) Scope of Review. The review shall be based on requirements of the Tax Code, comptroller rules, other laws, and generally accepted appraisal standards, procedures and methodology. The division shall develop questions, conduct physical inspections of property and appraisal records, and use other methods that are designed to determine compliance with these requirements and to develop a score. Compliance with §§9.3001, 9.3002, 9.3003, and 9.3004 of this title (relating to Appraisal Cards; Tax Maps; Uniform Tax Records System; and Appraisal Records of All Property) is mandatory and required to obtain a passing score.(d) Scores. The results of a district review shall be scored at the conclusion of the review. Scores shall include pass or fail determinations for compliance requirements deemed mandatory by the comptroller. A district must pass all mandatory compliance requirements in order for a school district to be in compliance with the requirements of Government Code, §403.3011(2)(D). A recommendation shall be made by the division for each indication of non-compliance. Scores for other requirements shall be divided into the following categories:(1) governance;(2) taxpayer assistance;(3) district operations; and(4) appraisal standards, procedures and methodology.(e) Reporting. The division shall provide a draft report of the review findings and recommendations to the district's chief appraiser by September 1 or as soon thereafter as practicable by United States Postal Service first-class mail or by e-mail. The review for each district shall be completed by the division no later than December 31. As soon thereafter as practicable, the division shall publish on the comptroller's website the comptroller's findings and recommendations for improvement resulting from the review. At or reasonably promptly after the findings and recommendations for improvement resulting from the review are published on the comptroller's website, the comptroller shall, by United States Postal Service first-class mail or by e-mail, notify the following that the findings and recommendations have been published: the district's chief appraiser and board of directors and the superintendent and board of trustees of each school district participating in the district.(f) Compliance with review recommendations. The district and its board of directors shall take remedial action reasonably designed to ensure substantial compliance with each recommendation in the review within 12 months from the date that the results of the review were delivered as required by this section. The comptroller shall determine substantial compliance during December of the year following the year of the review. Substantial compliance may be determined if the district has taken remedial action for each recommendation in the review. If the comptroller determines that the district has not achieved substantial compliance, the Texas Department of Licensing and Regulation shall be notified and provided copies of the results and recommendations of the review within 30 days of the comptroller's determination.",
            "sourceNote": "Source Note: The provisions of this §9.301 adopted to be effective February 22, 2010, 35 TexReg 1468; amended to be effective December 4, 2011, 36 TexReg 8038."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=155929&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "155929",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "C",
                "label": "APPRAISAL DISTRICT ADMINISTRATION"
            },
            "rule": {
                "number": "§9.402",
                "label": "Special Use Application Forms"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=221197&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "221197",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In applying for special use valuation under Tax Code, Chapter 23, the applicant shall use a form provided by the appraisal office. The appraisal office shall use the model form adopted by the Comptroller of Public Accounts which is appropriate to the special use type, or use a form containing information which is in substantial compliance with the model form adopted by the comptroller. All forms referenced in this section must include all language required by statute.(b) The comptroller's model forms applicable to this section may be revised at the discretion of the comptroller. Current forms can be obtained from the Comptroller of Public Accounts' Property Tax Assistance Division. The model special use application forms are:(1) Application for 1-d Agricultural Appraisal (Form 50-165);(2) Application for 1-d-1 (Open-Space) Agricultural Use Appraisal (Form 50-129);(3) Application for 1-d-1 (Open-Space) Timber Land Appraisal (Form 50-167);(4) Application for Open Space Land Appraisal for Ecological Laboratories (Form 50-166);(5) Application for Appraisal of Recreational, Park, and Scenic Land (Form 50-168);(6) Application for Appraisal of Public Access Airport Property (Form 50-169); and(7) Application for Restricted-Use Timber Land Appraisal (Form 50-281).",
            "sourceNote": "Source Note: The provisions of this §9.402 adopted to be effective July 17, 1992, 17 TexReg 4807; amended to be effective March 18, 1996, 21 TexReg 1888; amended to be effective February 3, 1998, 23 TexReg 796; amended to be effective March 8, 2000, 25 TexReg 1878; amended to be effective July 14, 2002, 27 TexReg 6045; amended to be effective March 10, 2008, 33 TexReg 2032; amended to be effective April 2, 2012, 37 TexReg 2222."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=221197&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "221197",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "C",
                "label": "APPRAISAL DISTRICT ADMINISTRATION"
            },
            "rule": {
                "number": "§9.415",
                "label": "Applications for Property Tax Exemptions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204952&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "204952",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) With the application for exemption for residence homesteads, the appraisal office shall:(1) provide a list of taxing units served by the appraisal district, together with all residential homestead exemptions each offers; or(2) provide the appraisal district's name and appraisal district's phone number on the form, with an instruction that the property owner may call the appraisal district to determine what homestead exemptions are offered by the property owner's taxing units.(b) The comptroller may prescribe forms for use in the administration of the ad valorem tax exemptions. The prescribed forms will not be adopted by rule unless required by statute. If a form is prescribed for a particular purpose, the content of a form used by the appraisal district must comply with the most recently prescribed form as of the date specified.",
            "sourceNote": "Source Note: The provisions of this §9.415 adopted to be effective December 13, 1996, 21 TexReg 11819; amended to be effective February 2, 1998, 23 TexReg 796; amended to be effective May 4, 1998, 23 TexReg 4319; amended to be effective March 9, 2000, 25 TexReg 1879; amended to be effective April 3, 2002, 27 TexReg 2535; amended to be effective March 28, 2004, 29 TexReg 2921; amended to be effective December 5, 2005, 30 TexReg 8176; amended to be effective February 26, 2008, 33 TexReg 1601; amended to be effective January 3, 2010, 34 TexReg 9473; amended to be effective October 13, 2024, 49 TexReg 8396."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204952&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "204952",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "C",
                "label": "APPRAISAL DISTRICT ADMINISTRATION"
            },
            "rule": {
                "number": "§9.416",
                "label": "Continuation of Residence Homestead Exemption While Replacement Structure is Constructed"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=155930&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "155930",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If a qualified residential structure for which the owner receives an exemption under Tax Code, §11.13, is rendered uninhabitable or unusable in a manner qualifying under Tax Code, §11.135, the owner is entitled to a continuation of the exemption. The exemption's duration shall be limited pursuant to Tax Code, §11.135(a-1).(b) A property owner receiving a continuation of an exemption under Tax Code, §11.135, shall notify the appraisal office within 30 days after the date that eligibility for the continuation ends.",
            "sourceNote": "Source Note: The provisions of this §9.416 adopted to be effective March 1, 2010, 35 TexReg 1759; amended to be effective April 28, 2021, 46 TexReg 2828."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=155930&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "155930",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "C",
                "label": "APPRAISAL DISTRICT ADMINISTRATION"
            },
            "rule": {
                "number": "§9.417",
                "label": "Property Tax Exemption for Organizations Engaged Primarily in Charitable Activities"
            },
            "nextRule": {
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                "recordId": "208688",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Request for Comptroller Determination Submitted to Comptroller. An organization seeking an exemption pursuant to Tax Code, §11.184 shall use the model determination request form prescribed by the comptroller and follow all instructions and guidelines published by the comptroller for requesting a comptroller determination as provided by Tax Code, §11.184.(b) Application for Exemption Submitted to Appraisal District. An organization seeking an exemption pursuant to Tax Code, §11.184 may use the model exemption application form prescribed by the comptroller or another form containing all information included in the comptroller's model form.(c) An organization seeking an exemption pursuant to Tax Code, §11.184 must comply with the filing requirements for application for property tax exemption that are stated in Tax Code, §11.43(d). A request to the comptroller for a determination letter for purposes of compliance with Tax Code, §11.184 does not automatically extend the deadline for filing an application for exemption.(1) If an organization has not received a determination letter from the comptroller, the organization may use the following procedure to request that the chief appraiser extend the filing deadline for an application for exemption.(A) The organization must submit to the chief appraiser a written request for an extension by no later than April 1;(B) The request for extension should state that the organization has submitted a request for a determination letter to the comptroller and should have as an attachment a copy of the request for determination letter that the organization submitted to the comptroller;(C) The chief appraiser shall grant the organization's request for extension for a period of not longer than 60 days if the organization has complied with subparagraphs (A) and (B) of this paragraph;(D) The chief appraiser may verify with the comptroller that a request for a determination letter has been submitted.(2) Notwithstanding paragraph (1) of this subsection, the chief appraiser may extend the deadline for filing an application for exemption at any time under the authority provided by Tax Code, §11.43.(d) If the chief appraiser, upon receipt of the application for tax exemption, disagrees with the comptroller's determination, then the chief appraiser may request a review of the determination by submitting a written request to the comptroller.(1) The written request for reconsideration must be directed to the manager of the Tax Policy Division, must contain specific grounds on which the chief appraiser disagrees with the comptroller's determination, and must be accompanied by specific evidence that supports each ground that the chief appraiser asserts.(2) The comptroller will respond to the written request for reconsideration within 30 calendar days from the date on which the request for reconsideration was received.(3) The comptroller's decision to uphold the determination is conclusive evidence that an organization is engaged primarily in performing charitable function as well as whether the corporation meets the requirements of Tax Code, §11.184(l)(1) and (2), if applicable. The decision is not subject to further appeal.(e) Forms. All comptroller forms applicable to this section may be revised at the discretion of the comptroller. Current forms can be obtained from the Comptroller of Public Accounts' Property Tax Assistance Division.",
            "sourceNote": "Source Note: The provisions of this §9.417 adopted to be effective March 21, 2002, 27 TexReg 2053; amended to be effective March 14, 2004, 29 TexReg 2371; amended to be effective February 22, 2010, 35 TexReg 1469; amended to be effective April 3, 2012, 37 TexReg 2222."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208688&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208688",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "C",
                "label": "APPRAISAL DISTRICT ADMINISTRATION"
            },
            "rule": {
                "number": "§9.419",
                "label": "Property Tax Exemption for Certain Leased Motor Vehicles"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=145591&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "145591",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Lease--An agreement, other than a rental as defined by Tax Code, §152.001(5), whereby an owner of a motor vehicle gives exclusive use of the motor vehicle to another for consideration, for a period that is longer than 180 days.(2) Lessee--A person who enters into a lease for a specific motor vehicle.(3) Lessor-- The owner of a motor vehicle that is subject to a lease.(4) Lessee's Affidavit or Affidavit--A statement, either under oath or by written, unsworn declaration, that a lessee or authorized representative of the lessee if the lessee is an entity described by Tax Code, §11.252(b) executes to attest that the lessee does not hold the leased motor vehicle for the production of income and the leased motor vehicle is used primarily for activities that do not involve the production of income.(5) Motor vehicle--A passenger car or truck with a shipping weight of 9,000 pounds or less.(6) Reasonable date and/or time--A time that is after 10:00 a.m. and before 5:00 p.m., Monday through Friday, excluding holidays, unless the appraisal district and the lessor agree otherwise.(b) The comptroller will make available forms that are adopted by reference in paragraph (1) of this subsection. Copies of the forms can be obtained from the Comptroller of Public Accounts' Property Tax Assistance Division.(1) The comptroller adopts by reference the following forms:(A) Lessee's Affidavit Motor Vehicle Use Other than Production of Income (Form 50-285); and(B) Lessor's Rendition or Property Report Leased Automobiles (Form 50-288).(2) A chief appraiser, lessee and lessor must use the comptroller's forms adopted by reference in paragraph (1) of this subsection, available from the Comptroller of Public Accounts Property Tax Assistance Division unless the form:(A) substantially complies with the corresponding comptroller form by using the same language in the same sequence as the comptroller form;(B) is an electronic version of a comptroller form and preserves the same language in the same sequence as the comptroller form; or(C) is a rendition form approved by the comptroller in writing before the form is used.(3) A lessor shall maintain the affidavit, an electronic image of the affidavit, or a certified copy of the affidavit and must produce the affidavit, electronic image of the affidavit, or certified copy of the affidavit to the chief appraiser for inspection or copying when requested, subject to the conditions of subsection (f)(1) of this section.(4) No provision in this section should be construed as limiting the chief appraiser's authority to enter into an agreement for electronic exchange of information under Tax Code, §1.085.(5) No provision in this section should be construed as limiting the ability to electronically execute a document according to the laws of the State of Texas.(c) The Lessee's Affidavit Motor Vehicle Use Other than Production of Income (Form 50-285) should be completed by lessees and the affidavit, electronic image of the lessee's affidavit, or certified copy of the lessee's affidavit should be maintained by lessors in connection with applying for the exemption available under Tax Code, §11.252.(1) For lessor to qualify for the exemption, the Lessee must not hold the motor vehicle for the production of income and the motor vehicle must be used primarily for activities that do not include the production of income.(2) A motor vehicle is presumed to be used primarily for activities that do not involve the production of income if:(A) 50% or more of the miles the motor vehicle is driven in a year are for non-income producing purposes;(B) the motor vehicle is leased to the State of Texas or a political subdivision of the State of Texas; or(C) the motor vehicle:(i) is leased to an organization that is exempt from federal income taxation under Internal Revenue Code, §501(a), as an organization described by Internal Revenue Code, §501(c)(3); and(ii) would be exempt from taxation if the vehicle were owned by the organization.(d) The Lessor's Rendition or Property Report Leased Automobiles (Form 50-288) shall be used as the property report form required by Tax Code, §11.252(i).(1) To meet the reporting requirements of Tax Code, §11.252(i), the lessor shall list each leased vehicle the lessor owns on January 1, regardless of whether the leased vehicle qualifies for an exemption under Tax Code, §11.252, and provide the following:(A) the year, make, model, and vehicle identification number for each leased vehicle;(B) the name of the lessee and address at which the leased vehicle is kept;(C) whether the lessee has designated the leased vehicle as not held for the production of income and used primarily for activities that do not involve the production of income; and(D) whether the lessor maintains a lessee's affidavit, electronic image of the lessee's affidavit, or a certified copy of the lessee's affidavit for the leased vehicle.(2) To meet the reporting requirements of Tax Code, §11.252(j), the Lessor shall provide the form to the chief appraiser in the manner provided by Subchapter B, Chapter 22, Tax Code.(e) To apply for the exemption allowed under Tax Code, §11.252(a), the lessor shall submit a fully completed and properly executed Lessor's Exemption Application Motor Vehicles Leased for Use Other than Production of Income (Form 50-286) to the chief appraiser pursuant to Tax Code, §11.43 and §11.45, and indicate at the appropriate space on the form that the lessor is applying for the exemption allowed under Tax Code, §11.252(a) for each qualifying leased vehicle.(f) A chief appraiser may inspect and/or obtain copies of lessees' affidavits, electronic images of the affidavits, or certified copies of the affidavits that the lessor maintains. Unless agreed to otherwise, a lessor and a chief appraiser shall use the following procedures when the chief appraiser proposes to inspect and/or copy lessees' affidavits, electronic images of the affidavits, or certified copies of the affidavits on leased motor vehicles for which the lessor seeks an exemption.(1) No less than 10 days prior to the inspection, the chief appraiser shall provide the lessor with notice of the chief appraiser's intention to inspect and/or copy the lessees' affidavits, electronic images of the affidavits, or certified copies of the affidavits in the lessor's possession or control. The notice must state a reasonable time when the chief appraiser proposes to inspect and/or copy the lessees' affidavits, electronic images of the affidavits, or certified copies of the affidavits and shall identify the affidavits, electronic images of the affidavits, or certified copies of the affidavits that will be subject to inspection and/or copy.(2) If the proposed date or time is not convenient, then the lessor may propose an alternate reasonable date or time by notifying the chief appraiser in writing.(3) The lessor shall provide the chief appraiser with reasonable accommodations to inspect and/or copy any of the lessees' affidavits, electronic images of the affidavits, or certified copies of the affidavits or shall permit the chief appraiser to take the affidavits, electronic images of the affidavits, or certified copies of the affidavits off premises for a period of no less than 48 hours to inspect and/or copy.(4) If the lessor is located more than 150 miles from the appraisal district's office, then the chief appraiser may submit a written request that the lessor deliver the identified lessees' affidavits, electronic images of the affidavits, or certified copies of the affidavits to the chief appraiser for at least 14 days for inspection and copying. The chief appraiser and the lessor may determine who should bear the costs of delivery and copying if any.(g) The comptroller-prescribed exemption application form (Lessor's Exemption Application Motor Vehicles Leased for Use Other than Production of Income (Form 50-286)) is not adopted by reference herein and may be revised at the discretion of the comptroller. Current forms can be obtained from the Comptroller of Public Accounts' Property Tax Assistance Division.",
            "sourceNote": "Source Note: The provisions of this §9.419 adopted to be effective March 21, 2002, 27 TexReg 2055; amended to be effective March 25, 2004, 29 TexReg 2922; amended to be effective March 10, 2008, 33 TexReg 2033; amended to be effective October 10, 2010, 35 TexReg 9107; amended to be effective June 21, 2021, 46 TexReg 3736; amended to be effective April 24, 2022, 47 TexReg 2294."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=145591&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "145591",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "D",
                "label": "APPRAISAL REVIEW BOARD"
            },
            "rule": {
                "number": "§9.803",
                "label": "Requirements for Appraisal Review Board Records"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187887&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "187887",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The record kept by each appraisal review board for each proceeding of the board shall contain the following items:(1) names of the board members present and the date of the proceeding;(2) the name of the chief appraiser if the chief appraiser appears at the proceeding or, if a chief appraiser's designee(s) appear(s) instead of the chief appraiser, the name(s) of such designee(s);(3) the names of all other persons appearing on behalf of the appraisal district;(4) the name and resident address of the protesting property owner or the name and address of the challenging taxing unit, as applicable;(5) the names of persons appearing at the proceeding on behalf of the board and any protesting or challenging party, a description of such persons' relationship to the party on whose behalf they appeared at the proceeding (e.g., \"attorney for appraisal review board\" or \"agent for property owner\"), and a copy of any legally required written authorization for such persons' appearance in a representative capacity (e.g., written designation of agent pursuant to Tax Code, §1.111);(6) a description of the property subject to the protest or challenge;(7) the notice of protest, challenge petition, or other document that gave rise to the proceeding and any written motions submitted to the board;(8) all affidavits signed by the appraisal review board members in accordance with Tax Code, §41.66(f)-(g);(9) an audio recording of testimony presented during the proceeding or, if no audio recording is made, a written summary of the testimony presented during the proceeding;(10) all documentary and physical evidence, including all affidavits, offered and/or submitted by the parties to the board for consideration at the proceeding;(11) the name and resident address of every witness and confirmation that each witness testified under oath;(12) a notation of any formal motions made and the rulings made thereon;(13) all written requests for subpoenas, copies of all subpoenas issued, all responses made in response to subpoenas issued, and records indicating compliance with the requirements of Tax Code, §41.61;(14) all records pertaining to service and enforcement pursuant to Tax Code, §41.62;(15) all records pertaining to compensation for subpoenaed witnesses and records indicating compliance with the requirements of Tax Code, §41.63;(16) the final, written orders of the board;(17) notations of the date of the final, written order(s) and the date each notice of issuance of order is placed in the mail; and(18) all notices pertaining to the protest or challenge received by the board pursuant to Tax Code, §42.06.",
            "sourceNote": "Source Note: The provisions of this §9.803 adopted to be effective February 3, 1998, 23 TexReg 798; amended to be effective May 16, 2010, 35 TexReg 3650."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187887&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "187887",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "D",
                "label": "APPRAISAL REVIEW BOARD"
            },
            "rule": {
                "number": "§9.805",
                "label": "Appraisal Review Board Evidence Exchange and Retention and Audiovisual Equipment Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=121691&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "121691",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Exchange of evidence. Before or immediately after an appraisal review board hearing begins, the appraisal district and the property owner or the owner's agent shall each provide the other party with a duplicated set of the evidentiary materials the person intends to offer or submit to the appraisal review board for consideration at the hearing. One set of these materials is to be exchanged with and retained by the other party, and another set of these materials is to be provided to and retained by the appraisal review board as evidence for its records as required under §9.803 of this title (relating to Requirements for Appraisal Review Board Records). The duplicated material sets shall be produced in either paper or electronic form.(b) Evidentiary materials on a portable electronic device. Evidentiary materials produced on a portable electronic device shall be saved in a file format type and downloaded to a small, portable, electronic device. The file format type and small, portable, electronic device must be considered generally accepted technology and must be suitable for retention by the recipient. For security purposes, the electronic files on devices produced pursuant to this section shall be capable of being scanned or reviewed for the presence of any malicious software or computer viruses before acceptance by or exposure to the recipient's computer system.(c) Electronic file format types and devices. The appraisal review board shall determine the types of file formats and devices which meet the requirements of subsection (b) of this section and specify the types of file formats and devices in the appraisal review board hearing procedures. Examples of file format types that may be considered acceptable include but are not limited to the Adobe portable document format (PDF); Microsoft Word, typically used for text documents; Microsoft Excel, typically used for spreadsheets and tables; Microsoft PowerPoint, typically used for presentations or slideshows; and JPEG (.jpg or .jpeg) for photographs. Examples of the general types of small, portable, electronic devices suitable for retention by the recipient that may be considered acceptable include but are not limited to USB flash drives (i.e., thumb or jump drives, USB or memory sticks), and compact discs (i.e., CDs, DVDs) with various characteristics. The appraisal district and the property owner or the owner's agent may agree to exchange evidence in a manner other than provided in appraisal review board hearing procedures so long as a copy of the evidence may be retained in the records of the appraisal review board and satisfies the requirements of subsection (a) of this section.(d) Audiovisual equipment requirements. If the appraisal district uses audiovisual equipment at appraisal review board hearings, the appraisal district shall make available this same equipment or audiovisual equipment of the same general type, kind, and character for use at the hearing by the property owner or the owner's agent. The equipment made available shall be capable of reading and accepting the same types of file formats and devices the appraisal review board has determined are generally accepted under subsection (c) of this section. In the alternative, property owners and their agents may bring their own audiovisual equipment for their presentation of evidentiary materials at appraisal review board hearings. If the operation of audiovisual equipment at the hearing requires access to and connection with the Internet for the presentation, the parties must provide their own Internet connection and access through their own service provider. The property owner and the owner's agent may not access the appraisal district office's network or Internet connection nor any of the appraisal district office's technology or equipment other than that made available under this section and described in the appraisal review board hearing procedures. The appraisal district and the property owner or the owner's agent may use audiovisual equipment with specifications that are different from those in the hearing procedures if the parties agree to do so in writing or verbally agree as shown in the audio recording of the hearing.(e) Appraisal Review Board hearing procedures. The following information regarding the exchange and presentation of evidence at appraisal review board hearings shall be provided in the appraisal review board hearing procedures:(1) identification of the file format types considered acceptable under subsection (c) of this section;(2) description of the types of small, portable, electronic devices suitable for retention by the recipient considered acceptable under subsection (c) of this section;(3) notice that property owners and their agents may bring their own audiovisual equipment for their presentation at appraisal review board hearings but must provide their own Internet access, if needed, through their own service provider;(4) whether the appraisal district uses audiovisual equipment at appraisal review board hearings;(5) if the appraisal district uses audiovisual equipment at appraisal review board hearings, a description of the type, kind, and character of audiovisual equipment the appraisal district makes available for use by property owners or their agents and which meets the requirements of subsection (d) of this section; and(6) notice that property owners and their agents may not access the appraisal district office's network or Internet connection nor any of the appraisal district office's technology or equipment other than that made available under this section and described in the hearing procedures.",
            "sourceNote": "Source Note: The provisions of this §9.805 adopted to be effective March 1, 2018, 43 TexReg 1138."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=121691&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "121691",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "E",
                "label": "TAX OFFICE ADMINISTRATION"
            },
            "rule": {
                "number": "§9.1001",
                "label": "Current and Delinquent Tax Receipts and Temporary Tax Receipts"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=153797&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "153797",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All offices collecting ad valorem taxes shall prepare and issue current and delinquent tax receipts, as well as temporary tax receipts, as applicable, and, as requested, for the payment of current and delinquent taxes.(b) Current tax receipts shall include the following items of information:(1) the name and address of the collecting office and the name of the taxing unit(s) for which that office collects on that property;(2) the name and address of the property owner and/or agent;(3) the description of the property as shown on the tax roll;(4) the tax roll account number of the property and, if different, the appraisal roll account number of the property;(5) the year for which the taxes are paid;(6) the taxable value of the property;(7) the tax rate imposed by each taxing unit taxing the property;(8) the amount of taxes paid, including a breakdown of taxes collected for each taxing unit;(9) the date the taxes are paid;(10) in cases of split payment, indication that the amount paid is a split payment; and(11) a statement that if a request by a property owner or agent is made before the current year taxes have been calculated, no such calculation is available for inclusion on the receipt.(c) Delinquent tax receipts shall include the following items of information:(1) each item of information specified in subsection (b)(1) - (9) of this section, except that the information specified in subsection (b)(6) and (7) of this section shall be shown for each year for which the taxes are paid; and(2) the amount of penalty and interest collected.(d) At the option of the collecting office, more than one year of delinquent taxes paid may appear on one delinquent tax receipt.(e) Temporary tax receipts shall be issued at the request of the taxpayer for the full or partial amount of taxes paid when appraisal review protests or judicial appeals are pending and must state that the receipts are temporary pending the determination of the protests or appeals. Temporary tax receipts shall be issued at the request of the taxpayer if a collector accepts partial payments of taxes as provided by law and must state that the payments are partial without providing the amount of taxes still due. Temporary tax receipts shall be issued to the taxpayer without the necessity of a taxpayer request when conditional tax payments are made pursuant to Tax Code, §31.071.(f) Current, temporary, and delinquent tax receipts substantially equivalent to that required in this section are deemed to be in compliance if challenged by a taxpayer or a governmental entity.",
            "sourceNote": "Source Note: The provisions of this §9.1001 adopted to be effective July 17, 1992, 17 TexReg 4808; amended to be effective November 9, 2005, 30 TexReg 7228."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=153797&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "153797",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "E",
                "label": "TAX OFFICE ADMINISTRATION"
            },
            "rule": {
                "number": "§9.1002",
                "label": "Posting of Tax Rates on County's Internet Website"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198253&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "198253",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The information required to be posted by the county assessor-collector on the county's internet website pursuant to Tax Code, §26.16 shall be posted on the website by means of a prominently featured hyperlink on the home page of the website entitled \"Tax Rate Information\" that links to either a list of all taxing units described in §26.16(b) or a single table that includes all taxing units described in §26.16(b). If the \"Tax Rate Information\" hyperlink links to a list of all taxing units described in §26.16(b), the taxing units shall be presented by individual taxing unit name listed in alphabetical order; each taxing unit name must be a hyperlink that links to the table of information for the taxing unit and text required by §26.16; and within the table for each taxing unit, the information required by §26.16(a) must be set forth by tax year with information for the most recent tax year presented first. If the \"Tax Rate Information\" hyperlink links to a single table that includes the information and text required by §26.16 for all taxing units described in §26.16(b), the taxing units within the table shall be presented by individual taxing unit name in alphabetical order and the information required by §26.16(a) must be set forth by tax year with information for the most recent tax year presented first.(b) A county assessor-collector may present tax rate information in a manner or format other than that set forth in subsection (a) of this section to provide additional resources for taxpayers, but any such presentation shall be in addition to, not in lieu of, the presentation set forth in subsection (a) of this section.",
            "sourceNote": "Source Note: The provisions of this §9.1002 adopted to be effective December 4, 2011, 36 TexReg 8039."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198253&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "198253",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "LIMITATION ON APPRAISED VALUE ON CERTAIN QUALIFIED PROPERTIES"
            },
            "rule": {
                "number": "§9.1051",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208853&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208853",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following phrases, words and terms, when used in this subchapter shall have the following meanings, unless the context clearly indicates otherwise. Words defined in Tax Code, Chapter 313 and not defined in this subchapter shall have the meanings provided by Tax Code, Chapter 313.(1) Agreement--The written agreement between the governing body of a school district and the approved applicant on the form adopted by reference in §9.1052 of this title (relating to Forms) to implement a limitation on the appraised value for school district maintenance and operations ad valorem property tax purposes on an entity's qualified property, required by Tax Code, §313.027(d).(2) Applicant--An entity that has applied for a limitation on appraised value for school district maintenance and operations ad valorem property tax purposes on the entity's property as provided by Tax Code, Chapter 313.(3) Application--An application for limitation of appraised value limitation for school district maintenance and operations ad valorem property tax purposes on an entity's qualified property on the form adopted by reference in §9.1052 of this title, the schedules attached thereto, and the documentation submitted by an entity for the purpose of obtaining an agreement for a limitation on appraised value from a school district.(4) Application amendment--Information submitted by an applicant intended to be considered as part of or in support of the application that amends by replacing information that was previously submitted by applicant.(5) Application supplement--Information submitted by an applicant intended to be considered as part of or in support of the application that has not been previously submitted.(6) Approved applicant--An applicant whose application has been approved by a school district for a limitation on appraised value agreement according to the provisions of Tax Code, Chapter 313, including any assignees of that applicant.(7) Application review start date--The later date of either the date on which the school district issues its written notice that an applicant has submitted a completed application or the date on which the comptroller issues its written notice that an applicant has submitted a completed application.(8) Appraisal district--The county appraisal district that would appraise the property which is the subject of an application.(9) Appraised value--The value of property as defined by Tax Code, §1.04(8).(10) Completed application--An application in the form and number and containing all the information required pursuant to §9.1053 of this title (relating to Entity Requesting Agreement to Limit Appraised Value) that has been determined by the school district and the comptroller to include all minimum requirements for consideration.(11) Comptroller--The Texas Comptroller of Public Accounts or the designated representative of the Texas Comptroller of Public Accounts acting on behalf of the comptroller.(12) Entity--Any entity upon which a tax is imposed by Tax Code, §171.001 including a combined group as defined by Tax Code, §171.0001(7) or members of a combined group, provided however, an entity as defined herein does not include a sole proprietorship, partnership or limited liability partnership.(13) Data Analysis and Transparency Division or DAT--The Data Analysis and Transparency Division of the comptroller's office, or the division of the comptroller's office responsible for the administration of Tax Code, Chapter 313, acting through the designated division director or a representative thereof.(14) Non-qualifying job--A permanent position of employment to perform work:(A) that includes at a minimum the following requirements:(i) that is based on the qualified property;(ii) that is in direct support of activity identified in Tax Code, §313.024(b);(iii) for at least 1,600 hours a year;(iv) over which the applicant has significant degree of control of:(I) the creation of the job;(II) the job description;(III) the job characteristics or performance of the job through either a business, contractual or vendor relationship; and(B) is not a qualifying job as that term is defined in Tax Code, §313.021(3) and these rules.(15) Qualified investment--Property that meets the requirements of Tax Code, §313.021(1).(16) Qualified property--Land, new building, or new improvement erected or affixed to the land after the application review start date, or eligible tangible personal property first placed in service after the application review start date that:(A) meets the requirements of Tax Code, §313.021(2), and that is used either as an integral part, or as a necessary auxiliary part, in manufacturing, research and development, a clean coal project, an advanced clean energy project, renewable energy electric generation, electric power generation using integrated gasification combined cycle technology, nuclear electric power generation, a Texas Priority Project, or a computer center;(B) is clearly distinguished from any existing property and clearly distinguished from any proposed property that is not a new improvement;(C) is separate from, and not a component of, any existing property;(D) if buildings or improvements, did not exist before the application review start date or if tangible personal property, was first placed in service after the application review start date;(E) is not used to renovate, refurbish, upgrade, maintain, modify, improve, or functionally replace existing buildings or existing improvements;(F) does not replace or modify existing buildings other than expansion of an existing building; and(G) is not used solely for the transportation of product prior to the commencement, or subsequent to the completion, of an applicable qualifying activity described in subparagraph (A) of this paragraph.(17) School district--A school district that has received an application for a limitation on appraised value pursuant to Tax Code, Chapter 313 or the designated representative of the school district acting on behalf of the school district.(18) SOAH--State Office of Administrative Hearings.(19) Substantive document--A document or other information or data in electronic media determined by the comptroller to substantially involve or include information or data significant to an application, the evaluation or consideration of an application, or the agreement or implementation of an agreement for limitation of appraised value pursuant to Tax Code, Chapter 313. The term includes, but is not limited to, any application requesting a limitation on appraised value and any amendments or supplements, any economic impact evaluation made in connection with an application, any agreement between applicant and the school district and any subsequent amendments or assignments, any school district written finding or report filed with the comptroller as required under this subchapter, and any completed Annual Eligibility Report (Form 50-772A) submitted to the comptroller. The term shall not include any employee names or other personal identifying information that is submitted to the comptroller. Positions can be described by job type, category, or general title.(20) Agreement holder--An entity that has executed an agreement with a school district.(21) Average weekly wage for manufacturing jobs--Either the average weekly wage:(A) for all jobs primarily engaged in activities described in Sectors 31 - 33 of the 2007 North American Industry Classification System in a county as identified by the Texas Workforce Commission's Quarterly Employment and Wages (QCEW) webpage available on the Texas Workforce Commission's website; or(B) for all manufacturing jobs or if the information for subparagraph (A) of this paragraph is not available, as determined by data published annually by the Texas Workforce Commission for the purposes of Tax Code, Chapter 313 for each Council of Government Region, based on Bureau of Labor Statistics, Texas Occupational Employment and Wages (OES) data, as it is posted on the Texas Workforce Commission's website.(22) Average weekly wage for non-qualifying jobs--The average weekly wage as identified by the Texas Workforce Commission Quarterly Employment and Wages (QCEW) average weekly wages for all private industries for the most recent four quarterly periods for which data is available at the time that an application is deemed complete, as it is posted on the Texas Workforce Commission's website.(23) First placed in service--The first use of the property by the agreement holder.(24) New improvement--A building, structure, or fixture that, after the application review start date:(A) is a discrete unit of property erected on or affixed to land eligible to be qualified property; and(B) is not erected or affixed as part of maintenance, renovation, refurbishment, improvement, modification, or upgrade of existing property, nor is newly added or proposed to be added property functionally replacing existing property, provided however that a proposed improvement may be considered a new improvement if it is an addition to an existing building that will contain new tangible personal property that did not exist before the application review start date.(25) Per capita income--Per capita money income in the past 12 months as determined by the United States Census Bureau and reported at its website http://www.census.gov.(26) Strategic investment area--An area that is:(A) a county within this state with unemployment above the state average and per capita income below the state average;(B) an area within this state that is a federally designated urban enterprise community or an urban enhanced enterprise community; or(C) a defense economic readjustment zone designated under Government Code, Chapter 2310.(27) Texas Economic Development Act Agreement--The form, adopted by reference in §9.1052 of this title, which provides a template for the terms of an agreement to implement a limitation on appraised value on property within a school district and that has the title Agreement For Limitation On Appraised Value Of Property For School District Maintenance And Operations Taxes.(28) Texas Priority Project--A project on which the applicant commits to place in service qualified investment of more than $1 billion during the qualifying time period, based on the comptroller review of the application submitted by the school district.(29) Unemployment--The most recent calendar year unemployment rate, not seasonally adjusted, as determined by the Labor Market & Career Information Department (LMCI) of the Texas Workforce Commission and reported on its website.(30) Qualifying job--A permanent position of employment that includes at a minimum the following requirements:(A) provides work for at least 1600 hours a year;(B) is in direct support of activity identified in Tax Code, §313.024(b);(C) is based on the qualified property;(D) is a job over which the applicant has significant degree of control of:(i) the creation of the job;(ii) the job description;(iii) the job characteristics or performance of the job through either a business, contractual or vendor relationship;(E) is covered by a group health benefit plan for which the applicant offers to pay at least 80% of the premiums or other charges assessed for employee-only coverage under the plan, regardless of whether an employee may voluntarily waive the coverage;(F) pays at least 110% of the county average weekly wage for manufacturing jobs in the county where the job is located;(G) that has not been transferred from another part of the state; and(H) that has not been created to replace a previous employee.",
            "sourceNote": "Source Note: The provisions of this §9.1051 adopted to be effective June 22, 2010, 35 TexReg 5352; amended to be effective June 2, 2014, 39 TexReg 4259; amended to be effective January 24, 2016, 41 TexReg 624; amended to be effective September 11, 2017, 42 TexReg 4652; amended to be effective February 6, 2020, 45 TexReg 764."
        },
        {
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            "currentRecordId": "208853",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "LIMITATION ON APPRAISED VALUE ON CERTAIN QUALIFIED PROPERTIES"
            },
            "rule": {
                "number": "§9.1052",
                "label": "Forms"
            },
            "nextRule": {
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                "recordId": "201506",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) The comptroller adopts by reference the following forms:(1) Application for Appraised Value Limitation on Qualified Property (Form 50-296A);(2) Annual Eligibility Report (Form 50-772A);(3) Job Creation Compliance Report (Form 50-825); and(4) Texas Economic Development Act Agreement (Form 50-826).(b) Agreement holders must complete and submit all reports and online forms including the Biennial Progress Report and the Biennial School District Cost Data Request through the comptroller's online reporting system.(c) Copies of the forms are available for inspection at the office of the Texas Register  or may be obtained from the Comptroller of Public Accounts, P.O. Box 13528, Austin, Texas 78711-3528. The forms may be viewed or downloaded from the comptroller's website, at https://www.comptroller.texas.gov/economy/local/ch313/forms.php. Copies may also be requested by calling our toll-free number, (800) 531-5441, extension 34679.(d) In special circumstances, a school district may obtain prior approval in writing from the comptroller to use an application or agreement form that requires additional information, or sets out the required information in different language or sequence than that which this section requires.(e) The comptroller may periodically update the dates, form version numbers, and/or years in the appropriately marked sections of the forms described in subsection (a) of this section.",
            "sourceNote": "Source Note: The provisions of this §9.1052 adopted to be effective January 9, 2008, 33 TexReg 273; amended to be effective June 22, 2010, 35 TexReg 5354; amended to be effective June 2, 2014, 39 TexReg 4259; amended to be effective January 24, 2016, 41 TexReg 624; amended to be effective September 11, 2017, 42 TexReg 4652; amended to be effective March 22, 2018, 43 TexReg 1646; amended to be effective February 6, 2020, 45 TexReg 764; amended to be effective October 20, 2020, 45 TexReg 7433; amended to be effective January 1, 2023, 47 TexReg 2774."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201506&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201506",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "LIMITATION ON APPRAISED VALUE ON CERTAIN QUALIFIED PROPERTIES"
            },
            "rule": {
                "number": "§9.1053",
                "label": "Entity Requesting Agreement to Limit Appraised Value"
            },
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            "ruleBody": "(a) Initial application contents. To request a limitation on appraised value for school district maintenance and operations ad valorem tax purposes pursuant to Tax Code, Chapter 313, an applicant shall file a completed application with the school district in which the qualified property will be located.(1) A completed application shall consist of, at a minimum, the following items:(A) the comptroller's current application form and Schedules A1, A2, B and C attached to the application form with all information boxes filled in with the information on which applicant intends to rely including but not limited to:(i) a specific and detailed description of the proposed qualified property to which the appraised value limitation will apply sufficient to clearly distinguish the subject property from property to which the limitation does not apply and to establish that the property meets the criteria of qualified property pursuant to these rules and Tax Code, §313.021(2);(ii) a specific and detailed description of the investment described in Tax Code, §313.021(1) that is proposed to be made in the property subject to the appraised value limitation and sound, good faith estimates of the dollar value of intended investment sufficient to establish that the investment meets minimum criteria for qualified investment pursuant to Tax Code, §313.023 or §313.053 if applicable, during the proposed qualifying time period;(iii) if the land upon which the qualified property will be located contains existing improvements or tangible personal property, a specific and detailed description of the tangible personal property, buildings, or permanent, non-removable building components (including any affixed to or incorporated into real property) on the land that is sufficient to distinguish existing property from the proposed new improvements and any proposed property that is not new improvements which may include maps, surveys, appraisal district values and parcel numbers, inventory lists, property lists, model and serial numbers of existing property, or other information of sufficient detail and description to locate all existing property within the boundaries of the real property which is subject to the agreement; provided however, that the date of appraisal shall be within 15 days of the date the application is received by the school district;(iv) the total number of any jobs related to construction or operation of the facility that the applicant chooses to disclose for the purpose of calculating the economic impact of the project;(v) the total number of qualifying jobs the applicant commits to create and maintain during the full term of the agreement and a schedule which identifies the number of qualifying jobs created and maintained in each year of the agreement;(vi) the wages, salaries, and benefits applicant commits to provide for each qualifying job;(vii) the total number of non-qualifying jobs the applicant estimates it will create and maintain during the full term of the agreement and a schedule which identifies the number of non-qualifying jobs created and maintained in each year of the agreement;(viii) the average wages the applicant estimates it will provide for non-qualifying jobs;(ix) a statement:(I) that for the purposes of this statement, \"payments to the school district\" include any and all payments or transfers of things of value made to the school district or to any person or persons in any form if such payment or transfer of thing of value being provided is in recognition of, anticipation of, or consideration for the agreement for limitation on appraised value; and(II) as to whether:(-a-) the amount of any and all payments or transfers made to the school district may result in payments that are or are not in compliance with Tax Code, §313.027(i); or(-b-) as to whether the method for determining the amount may result in payments to the school district that are or are not in compliance with Tax Code, §313.027(i); and(x) a description of the real property on which the intended investment will be made, identified additionally by the county appraisal district parcel number;(B) such other written documents containing information on which applicant relies to qualify for and obtain a limitation on appraised value pursuant to Tax Code, Chapter 313;(C) such other written documents containing information reasonably requested by either the school district or the comptroller which shall be provided within 20 days of the date of the request, provided however the applicant may request up to 10 additional days to provide the requested information;(D) information identifying the applicant, and if applicant is a combined group, identifying each such combined group's members that intend to own a direct interest in the property subject to the proposed agreement, by:(i) official name, street address, city, county, state and mailing address, if different from the street address, of the official place of business of the applicant and, if the applicant is a combined group, of each such combined group's members that intend to own a direct interest in the property subject to the proposed agreement;(ii) designation of an authorized representative for the applicant and, if the applicant is a combined group, for each such combined group's members that intend to own a direct interest in the property subject to the proposed agreement; and(iii) for each authorized representative, and if the applicant is a combined group for each such combined group's members that intend to own a direct interest in the property subject to the proposed agreement, provide telephone number, email address, street address, city, county, state, and mailing address if different from the street address;(E) the signature of applicant's authorized representative(s) by which applicant confirms and attests to the truth and accuracy of the information submitted in the application to the best knowledge and belief of applicant and its representative(s);(F) the total application fee required by the school district with which the application will be filed;(G) a statement as to whether or not the project is an expansion of an existing operation on the land which will become qualified property, and if so, a description of the nature of the existing operation, and the nature of the expansion, including an explanation of how the expansion affects or interacts with current operations;(H) a statement specifying the beginning date of the limitation period, which must be January 1 of the first tax year that begins after one of the following:(i) the date of the completed application;(ii) the date of the end of the qualifying time period, provided however that such date will begin no later than the beginning of the limitation period; or(iii) the date commercial operations are to begin at the site of the project;(I) a statement regarding the location and nature of other facilities that the applicant operates in the state, and a detailed description of any such facilities that will provide inputs to or use outputs from the project that is the subject of the application;(J) a detailed description of any state and local incentives for which the applicant intends to apply; and(K) any information that the applicant requests the comptroller to consider in making the determination under Tax Code, §313.026(c)(2) that the limitation on appraised value is a determining factor in the applicant's decision to invest capital and construct the project in the state, which may include:(i) other locations not in Texas that the applicant considered or is considering for the project;(ii) capital investment and return on investment information in comparison with other alternative investment opportunities; or(iii) information related to the applicant's inputs, transportation and markets.(2) The completed application contents shall include an electronically digitized copy of the completed application formatted in searchable pdf format or other format acceptable to the comptroller; schedules A1, A2, B and C in Microsoft Excel format; and high-resolution maps and graphics (300 dpi or higher).(3) The application shall be submitted in any manner acceptable to the comptroller.(b) Optional application requests. An applicant may include in an application:(1) a request that the school district waive the requirement of Tax Code, §313.021(2)(A)(iv)(b) or §313.051(b), whichever is applicable, to create new jobs. In order for a completed application to include a job waiver request, applicant shall submit:(A) a specific request to waive the job requirement of the applicable Tax Code section included with the application that includes all the minimum requirements set forth in subsection (a) of this section; and(B) separated and clearly marked within the application materials, documentation on which applicant intends to rely that demonstrates that the applicable jobs creation requirement of the applicable Tax Code section exceeds the industry standard for the number of employees reasonably necessary for the operation of the facility of applicant that is described in the application; or(2) a request to begin the qualifying time period on a date that is after the date that the application is approved. In order for a completed application to include a qualifying time period deferral request, applicant shall submit:(A) specific information identifying the requested qualifying time period within an application that includes all the minimum requirements set forth in subsection (a) of this section; and(B) all relevant economic information that is related to the impact of the investment during the proposed qualifying time period, the proposed limitation period, and a period of time after the limitation period considered appropriate by the comptroller.(c) Application changes. At the request of the school district or the comptroller, or with the prior approval of the school district and the comptroller, applicant may submit an application amendment or application supplement at any time after the submission of the initial application. In order to be considered as part of the application, the application amendment or supplement shall:(1) be submitted in the same form or schedule and manner as the information was initially submitted or should have been initially submitted;(2) include a date for the submission and a sequential number identifying the number of submissions made by applicant;(3) have the signature of the authorized representative(s) by which applicant confirms and attests to the truth and accuracy of the information submitted in the application amendment or supplement, as applicable, to the best knowledge and belief of applicant and its representative(s); and(4) be submitted before the 120th day after the application was accepted by the school district or within another time period as provided in writing by the comptroller.(d) Authorized representative(s). The person(s) identified in the application as applicant's authorized representative(s) shall serve as the person(s) to whom all correspondence and notifications from the school district and comptroller shall be sent. Notwithstanding subsection (c) of this section, applicant may change its authorized representative(s) if applicant submits to the school district and the comptroller a letter that provides the name of the new authorized representative(s), street and mailing address, telephone number, and official title, if any.(e) Information confidentiality. At the time that applicant submits its application, application amendment, or application supplement, applicant may request that all or parts of such document not be posted on the internet and not otherwise be publicly released. In order to make such request, applicant shall:(1) submit a written request that:(A) specifically lists each document or portion of document and each entry in any form prescribed by the comptroller that applicant contends is confidential; and(B) identifies specific detailed reasons stating why applicant believes each item listed should be considered confidential and identifies any relevant legal authority in support of the request;(2) segregate the documents which are subject to the request from the other documents submitted with the application, application amendment, or application supplement that are not subject to the request; and(3) adequately designate the documents subject to the request as \"confidential.\"(f) Continued eligibility for value limitation. In order to obtain and continue to receive a limitation on appraised value pursuant to Tax Code, Chapter 313, an applicant shall:(1) have a completed application approved by the governing body of the school district in compliance with §9.1054(f) of this title (relating to School District Application Review and Agreement to Limit Appraised Value);(2) at least 30 days prior to the meeting at which the governing body of the school district is scheduled to consider the application, provide to the school district and the comptroller a Texas Economic Development Act Agreement, as specified in §9.1052(a)(6) of this title, with terms acceptable to the applicant;(3) if the applicant includes a combined group or members of the combined group, have the agreement executed by the authorized representative of each member of the combined group that owns a direct interest in property subject to the proposed agreement by which such members are jointly and severally liable for the performance of the stipulations, provisions, terms, and conditions of the agreement;(4) comply with all stipulations, provisions, terms, and conditions of the agreement for a limitation on appraised value executed with the school district, this subchapter, and Tax Code, Chapter 313;(5) be and remain in good standing under the laws of this state and maintain legal status as an entity, as defined in this subchapter;(6) owe no delinquent taxes to the state;(7) maintain eligibility for limitation on appraised value pursuant to Tax Code, Chapter 313; and(8) provide to the school district, the comptroller, and the appraisal district any change to information provided in the application, including but not limited to:(A) changes of the authorized representative(s);(B) changes to the location and contact information for the approved applicant including all members of the combined group participating in the limitation agreement;(C) copies of any valid assignments of the agreement and contact information for authorized representative(s) of any assignees.(9) Within 30 days after filing a completed application with the school district, the applicant must provide the comptroller with estimates of the gross tax benefit resulting from the requested limitation on appraised value for school district maintenance and operations ad valorem tax and future revenues from the qualified property.",
            "sourceNote": "Source Note: The provisions of this §9.1053 adopted to be effective June 22, 2010, 35 TexReg 5355; amended to be effective June 2, 2014, 39 TexReg 4259; amended to be effective January 24, 2016, 41 TexReg 624; amended to be effective February 6, 2020, 45 TexReg 764; amended to be effective October 20, 2020, 45 TexReg 7433."
        },
        {
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            "currentRecordId": "176097",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "LIMITATION ON APPRAISED VALUE ON CERTAIN QUALIFIED PROPERTIES"
            },
            "rule": {
                "number": "§9.1054",
                "label": "School District Application Review and Agreement to Limit Appraised Value"
            },
            "nextRule": {
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            "ruleBody": "(a) Application fee. Prior to accepting an application for an agreement for limitation on appraised value pursuant to Tax Code, Chapter 313, Subchapter B, the governing body of a school district by official action shall establish a reasonable nonrefundable application fee to be paid by an applicant who applies to the school district for a limitation on the appraised value of applicant's property under such subchapter. The amount of the fee shall not exceed the estimated cost to the district of processing and acting on an application. The total fee shall be paid at time the application is submitted to the school district. Any fees not accompanying the original application shall be considered supplemental payments.(b) Initial review. If a school district receives a completed application, amended application, or supplemental application for property tax limitation within its boundaries, the school district shall submit to the comptroller, not later than 7 days after receiving it, a copy of the following documents:(1) the application;(2) an economic analysis, if any;(3) application amendment;(4) application supplement; and(5) proof of payment of the total filing fee required by the school district.(c) Acting on a completed application. If the governing body of the school district by official action elects to consider an application and determines that the application received is a completed application, the school district shall:(1) provide written notice to the applicant and to the comptroller, with a copy to the appraisal district, that the school district has received and will be considering a completed application. The notice shall include:(A) the date on which the application was received;(B) the date on which the governing body elected to consider the application; and(C) the date on which the school district determined that applicant has submitted a completed application;(2) at the time the school district provides notice of a completed application, deliver to the comptroller:(A) a copy of the completed application including all material required by §9.1053(a) and, if applicable (b), of this title (relating to Entity Requesting Agreement to Limit Appraised Value); and(B) a request to the comptroller to provide an economic impact evaluation;(3) if the school district maintains a generally accessible Internet web site, provide a clear and conspicuous link on its web site to the Internet web site maintained by the comptroller where substantive documents for the value limitation application for such school district are posted;(4) on request of the comptroller, provide such written documents containing information requested by the comptroller as necessary for the consideration of a limitation on appraised value pursuant to Tax Code, Chapter 313 within 20 days of the date of the request; and(5) not later than 151 days after the application review start date, present to the governing body of the school district for its consideration:(A) the completed application that has been submitted by applicant;(B) the economic impact analysis submitted by the comptroller;(C) the comptroller certificate for a limitation or written explanation for not issuing a certificate; and(D) a limitation agreement that includes all stipulations, provisions, terms, and conditions required by subsection (g) of this section that is acceptable to the applicant.(d) Extending time period for action. The governing body of the school district may extend the time period to approve a completed application required by subsection (c)(5) of this section only if:(1) either:(A) an economic impact analysis has not been submitted to the school district by the comptroller; or(B) by agreement with applicant; and(2) notice of the extension is provided to the comptroller within 7 days of the decision to provide the extension.(e) Application changes after the notice of completed application. If a school district receives an amended application or a supplemental application from an applicant after the school district has prepared or sent written notice that the applicant has submitted a completed application, the school district shall either:(1) reject the amended application, supplemental application, or application, in whole or in part, and discontinue consideration of any submission by applicant;(2) with the written concurrence of the comptroller, consider the completed application, as amended or supplemented, before the 151st day from the application review start date; or(3) review the documents submitted by applicant, issue an amended written notice of a completed application, and present the amended application to the governing body of the school district in the manner and time period authorized by subsection (c)(5) of this section.(f) Application with comptroller certificate for a limitation. When presented a completed application pursuant to subsection (c)(5) of this section for which the comptroller has submitted a comptroller certificate for a limitation, the governing body of the school district shall either:(1) by majority vote adopt a written resolution approving the application which shall include:(A) written findings:(i) as to each criterion listed in §9.1055(d)(3)(B) - (D) of this title (relating to Comptroller Application Review and Agreement to Limit Appraised Value);(ii) as to the criteria required by Tax Code, §313.025(f-1) if applicable;(iii) that the information in the application is true and correct; and(iv) that applicant is eligible for the limitation on the appraised value of the entity's qualified property;(B) a determination that granting the application is in the best interest of the school district and this state; and(C) designate and direct a representative of the governing body of the school district to execute the agreement for property tax limitation presented by the approved applicant that complies with this subchapter and Tax Code, Chapter 313;(2) by majority vote disapprove the application; or(3) take no official action and the application shall be considered disapproved on the 151st day after the application review start date.(g) Agreement for limitation on appraised value. Pursuant to the provisions of Tax Code, Chapter 313 and this subchapter, in order to implement a limitation on the appraised value for school district maintenance and operation tax purposes on the approved applicant's qualified property that has been approved by the governing body of the school district, at the time of the approval of the application, the authorized representative of the school district and the approved applicant shall execute a Texas Economic Development Act Agreement, as specified in §9.1052(a)(6) of this title.(h) Limitation agreement with deferred qualifying time period. If an agreement for limitation on appraised value includes a provision in which the qualifying time period starts more than one year after the date that the application is approved, no earlier than 180 days and no later than 90 days prior to the start of the deferred qualifying time period, the school district shall:(1) provide the comptroller:(A) copies of any documents or other information received from the applicant; and(B) after reviewing documents and information provided by the applicant, either:(i) a written acknowledgment of receiving the application amendment or supplement; or(ii) a statement that no such amendment or supplement has been submitted; and(2) if the comptroller provides:(A) a comptroller certificate for a limitation with conditions different from the existing agreement, the governing body shall hold a meeting and determine whether to amend the agreement to include the conditions required by the comptroller or terminate the agreement; or(B) a written explanation of the comptroller's decision not to re-issue a certificate, the school district shall terminate the agreement.(i) Compliance and enforcement.(1) The school district shall provide to the comptroller:(A) any documents that reasonably appear to be substantive documents as defined in this subchapter; and(B) within seven days of executing the agreement, a copy of the executed agreement and any attachments thereto.(2) The school district shall provide a copy of the executed agreement to the appraisal district.(3) The school district shall comply with and enforce the stipulations, provisions, terms, and conditions of the agreement for limitation of the appraised value, this subchapter, and Tax Code, Chapter 313.(4) To determine and obtain compliance with each agreement, for each calendar year during the term of the agreement the school district shall require the approved applicant to submit:(A) either:(i) the information necessary to complete the Annual Eligibility Report, adopted by reference in §9.1052 of this title (relating to Forms); or(ii) a completed Annual Eligibility Report, adopted by reference in §9.1052 of this title;(B) a completed Job Creation Compliance Report (Form 50-825), adopted by reference in §9.1052 of this title; and(C) any information required by the State Auditor Office or its designee.",
            "sourceNote": "Source Note: The provisions of this §9.1054 adopted to be effective June 22, 2010, 35 TexReg 5361; amended to be effective June 2, 2014, 39 TexReg 4259; amended to be effective January 24, 2016, 41 TexReg 624."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201507&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201507",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "LIMITATION ON APPRAISED VALUE ON CERTAIN QUALIFIED PROPERTIES"
            },
            "rule": {
                "number": "§9.1055",
                "label": "Comptroller Application Review and Agreement to Limit Appraised Value"
            },
            "nextRule": {
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            "ruleBody": "(a) Documents submitted to comptroller. Within 15 days of receiving or creating a substantive document, the comptroller shall post such document on the comptroller's Internet website, provided however, the comptroller shall not post any documents determined to be confidential in accordance with Tax Code, §313.028 and this section.(1) The comptroller shall deem information as confidential only if the document:(A) at the time that it is received by the comptroller, the party requesting confidentiality:(i) has segregated the information for which confidentiality is being requested from the other information submitted to the comptroller and clearly and conspicuously labeled it confidential information;(ii) provides a written list specifically identifying each document, portion of document, or entry in the form prescribed by the comptroller that applicant contends is confidential; and(iii) provides in writing specific reasons, including any relevant legal authority, stating why the material is believed to be confidential; and(B) the comptroller determines that the information for which confidentiality is sought describes:(i) specific processes or business activities to be conducted by the applicant; or(ii) specific tangible personal property to be located on real property covered by the application.(2) Substantive documents deemed confidential will not be posted on the internet and will otherwise be withheld from public release unless and until the governing body of the school district acts on the application or the comptroller is directed to release the documents by a ruling from the Attorney General.(3) All applications and parts of applications which are not segregated and marked as confidential as required under this section shall be considered substantive documents and shall be posted on the internet.(4) When the governing body of the school district agrees to consider the application, information in the custody of a school district or the comptroller in connection with the application, including information related to the economic impact of a project or the essential elements of eligibility pursuant to Tax Code, Chapter 313, such as the nature and amount of the projected investment, employment, wages, and benefits, shall not be considered confidential business information.(5) Any documents submitted in an electronic format (including searchable pdfs) to the comptroller must comply with the accessibility standards and specifications described in the 1 TAC Chapters 206 and 213.(b) Application review. Upon receiving an application and accompanying documentation, the comptroller shall review the application to determine if it is complete.(1) If the comptroller determines that the application was not submitted in compliance with or does not have documents or information required pursuant to §9.1053(a) and if applicable (b), of this title (relating to Entity Requesting Agreement to Limit Appraised Value), or does not provide all necessary information the comptroller determines is necessary to make the determinations required by Tax Code, §313.026, and subsection (d) of this section, the comptroller shall provide written notice to the school district, with a copy to applicant, identifying the information that is required or necessary to complete the application.(A) Supplemental application information, amended application information, and additional information requested by the comptroller shall be promptly forwarded to the comptroller within 20 days of the date of the request.(B) On request of the school district or applicant, the comptroller may extend the deadline for providing additional information for a period of not more than 10 working days.(C) Additional information concerning investment, property value, property description, employment, and the qualifying time period that is not provided to the comptroller in a timely manner may or may not be used by the comptroller in making the determinations required by Tax Code, §313.026 or this section.(2) Until the comptroller receives such information as is required and necessary to be submitted by applicant, the comptroller may discontinue further action on the application. The comptroller shall discontinue consideration of an application that remains incomplete for more than 180 days after the date the comptroller first received the application plus the number of days of any extension, notice of which has been provided to the comptroller pursuant to §9.1054(d) of this title (relating to School District Application Review and Agreement to Limit Appraised Value).(3) When the comptroller determines that the documentation submitted in support of an application meets the requirements for an application pursuant to §9.1053(a) and if applicable (b), of this title, and the comptroller has received from the school district a request to provide an economic impact evaluation and all necessary documents for an appropriate evaluation of the requested appraised value limitation from the applicant and the school district, the comptroller shall notify the school district, the Texas Education Agency, and the applicant in writing that the applicant has submitted a completed application.(c) Action on completed application. After issuing a notice of a completed application, and after receipt of the information from the school district required by §9.1054(c)(2) of this title, the comptroller shall determine whether the property meets the requirements of Tax Code, §313.024 for eligibility for a limitation on appraised value pursuant to the provisions of Tax Code, Chapter 313, Subchapter B or C, whichever is applicable.(1) If the comptroller determines that the property is not eligible for a limitation on appraised value, the comptroller shall:(A) notify the governing body of the school district and applicant of the comptroller's determination; and(B) discontinue consideration of the application.(2) If an applicant disagrees with a denial of eligibility for limitation of appraised value under Tax Code, §313.024, applicant may appeal the eligibility determination pursuant to the procedures set forth in Tax Code, Chapter 313 and in §9.1056 of this title (relating to Eligibility Determination Appeal). If an appeal under §9.1056 of this title, results in a determination that the project is eligible, the comptroller shall re-commence review of the application.(d) Action on an eligible completed application. After determining that property identified in an application is eligible for limitation for appraised value and upon receiving a request from the school district to prepare an economic impact analysis, the comptroller shall:(1) review any information available to the comptroller including:(A) the application;(B) public documents or statements by the applicant concerning business operations or site location issues or in which the applicant is a subject;(C) statements by officials of the applicant, public documents or statements by governmental or industry officials concerning business operations or site location issues;(D) existing investment and operations at or near the site or in the state that may impact the proposed project;(E) announced real estate transactions, utility records, permit requests, industry publications or other sources that may provide information helpful in making the determination; and(F) market information, raw materials or other production inputs, availability, existing facility locations, committed incentives, infrastructure issues, utility issues, location of buyers, nature of market, supply chains, other known sites under consideration, or any other information;(2) prepare an economic impact analysis on the investment proposed by the application as required by Tax Code, §313.025 which may include:(A) estimates of the maintenance and operations taxes for the 25 year period after the beginning of the limitation period;(B) estimated tax revenue to the state generated by expenditures by the project, including wages, construction and operational expenditures, or other expenditures; and(C) tax impacts, positive or negative, to the state based on indirect effects of the project, as estimated by the agency and using publicly available economic modeling systems;(3) make the following determinations whether:(A) it is reasonable to conclude from all the information available that the application is true and correct;(B) the applicant is eligible for the limitation on the appraised value of the applicant's qualified property;(C) the project proposed by the applicant is reasonably likely to generate tax revenue in an amount sufficient to offset the school district maintenance and operations ad valorem tax revenue lost as a result of the agreement before the 25th anniversary of the beginning of the limitation period; and(D) the limitation on appraised value is a determining factor in the applicant's decision to invest capital and construct the project in this state;(4) not later than 90 days after written notice that the school district and the comptroller have determined that applicant has submitted a completed application that is eligible for a limitation of appraised value under Tax Code, §313.025(b), provide to the school district:(A) an economic impact evaluation as required pursuant to Tax Code, §313.025(b);(B) the comptroller's conclusion for each made pursuant to paragraph (3) of this subsection; and(C) one of the three following:(i) a comptroller certificate for a limitation;(ii) a comptroller certificate for a limitation, subject to:(I) conditions identified in the comptroller certificate for a limitation being completed prior to execution of the agreement; or(II) the agreement including additional provisions as identified in the comptroller certificate for a limitation; or(iii) a written explanation of the comptroller's decision not to issue a certificate.(e) Action after agreement review. No later than 20 business days after receiving an agreement for limitation on appraised value acceptable to an applicant, the comptroller:(1) shall review the agreement for:(A) compliance with Tax Code, Chapter 313, and this subchapter; and(B) consistency with the application submitted to the comptroller and as amended or supplemented;(2) may amend or withdraw the comptroller certificate for a limitation if the comptroller determines that the agreement as submitted by the applicant does not comply with Tax Code, Chapter 313 or this subchapter or that the agreement contains provisions that are not consistent with or represents information significantly different from that presented in the application as submitted to the comptroller; and(3) provide written notification to the school district of the actions taken under this subsection.(f) Application changes after the notice of completed application. If the comptroller receives an amended application or a supplemental application by an applicant after the comptroller has prepared or sent written notice that applicant has submitted a completed application, the comptroller shall:(1) reject the amended application, supplemental application, or application, in whole or in part, and discontinue consideration of any submission by applicant;(2) with the written concurrence of the school district, consider the completed application, as amended or supplemented, before the 91st day from application review start date; or(3) review the documents submitted by applicant and complete the requirements according to subsection (d) of this section.(g) Applications and agreements for deferred qualifying time period. When an eligible completed application for an agreement for limitation on appraised value requests to begin the qualifying time period after the date that the application is approved, the comptroller:(1) to the extent possible, shall prepare the economic impact analysis for an estimated impact of the qualified investment during the proposed qualifying time period;(2) if an appraised value limitation agreement which defers the time at which the qualifying time period starts for more than one year is executed, may request at any time prior to the commencement of the qualifying time period additional information to revise the economic impact analysis for the qualified investment; and(3) based on the revised economic impact analysis, may revise the comptroller certificate for a limitation that was previously submitted, or determine to not issue such a certificate; and(4) if a revised comptroller certificate for a limitation is prepared, or a determination is made not to issue such a certificate, shall provide the revised comptroller certificate for a limitation, or a written explanation of the decision not to issue such certificate, and revised economic impact analysis to the school district and approved applicant.",
            "sourceNote": "Source Note: The provisions of this §9.1055 adopted to be effective June 22, 2010, 35 TexReg 5367; amended to be effective June 2, 2014, 39 TexReg 4259; amended to be effective September 11, 2017, 42 TexReg 4652; amended to be effective February 6, 2020, 45 TexReg 764; amended to be effective October 20, 2020, 45 TexReg 7433."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=146563&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "146563",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "LIMITATION ON APPRAISED VALUE ON CERTAIN QUALIFIED PROPERTIES"
            },
            "rule": {
                "number": "§9.1056",
                "label": "Eligibility Determination Appeal"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=167524&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "167524",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Eligibility appeal to the State Office of Administrative Hearings (SOAH). If an applicant disagrees with the comptroller's denial of eligibility for limitation of appraised value under Tax Code, §313.024, the applicant may request an eligibility determination hearing before SOAH. To request an eligibility determination hearing before SOAH, the applicant shall timely file with Local Government Assistance Division (LGA) a written request for an eligibility determination hearing that satisfies all of the requirements of this section.(b) Hearing Request. A written request for an eligibility determination hearing shall:(1) include a Statement of Grounds that states fully and in detail each reason or ground on which the basis of eligibility is claimed and citing the specific subsection of Tax Code, §313.024 that applies to each reason or ground;(2) include all documentary evidence, placed in order by category and item number, necessary to support the factual and legal contentions made in the hearing request;(3) include a statement of whether the applicant requests:(A) a written submission hearing before a SOAH administrative law judge; or(B) an oral hearing before a SOAH administrative law judge;(4) be filed within 30 days after the date of the notice of the comptroller's determination; and(5) contain a statement by the person signing the hearing request that, to the best of the person's knowledge, the evidence contained in the hearing request is true and correct.(c) Hearing request time extension. If the hearing request with the Statement of Grounds cannot be filed within the applicable time limit, the applicant may request an extension as provided by §1.6 of this title (relating to Extensions of Time for Initiating Hearing Process). A request for an eligibility determination hearing that is not submitted to the comptroller within the original time limit or before the expiration of an extended time limit will not be granted and the request will be denied.(d) Filing a hearing request. All hearing requests and other documents related to an Eligibility Determination Appeal shall be filed with the LGA manager. No document or hearing request is filed until actually received. However, any hearing request including contemporaneously filed supporting evidence is timely filed if it is sent to the LGA manager by:(1) first-class United States mail in a properly addressed and stamped envelope or wrapper, and the envelope or wrapper exhibits a legible postmark affixed by the United States Postal Service showing that the hearing request including supporting evidence was mailed on or before the last day for filing;(2) an express mail corporation in a properly addressed envelope or wrapper, and the envelope or wrapper exhibits a legible date showing that the petition including supporting evidence was delivered to the express mail corporation for delivery on or before the last day for filing;(3) fax received on or before the last day for filing if the petition including supporting evidence, is under ten pages in content, the original is mailed within three days of the fax and all procedures for submitting a hearing request have been followed; or(4) electronic transmission, if applicant obtains written permission from the LGA manager before the hearing request, evidence, or both are filed or the LGA manager has approved the file format and form of transmission before the hearing request is filed.(e) Position letter. An assistant general counsel of the comptroller's office will review a timely submitted Statement of Grounds together with all the application material submitted by the applicant as of the date of the eligibility determination by the comptroller. The assistant general counsel shall timely prepare and submit to LGA a Position Letter that will accept or reject, in whole or in part, each contention of the applicant, and state the basis or bases for the determination that the property does not meet the requirements of Tax Code, §313.024 for eligibility for a limitation on appraised value pursuant to Tax Code, Chapter 313.(f) LGA review. After reviewing the applicant's Statement of Grounds, the assistant general counsel's Position Letter, and such other information it deems appropriate, the LGA shall:(1) within 10 days, or other date to which the parties have agreed, either:(A) issue a redetermination accepting the eligibility of the property under the application; or(B) adopt the Position Letter and file a Request to Docket Case form with SOAH; and(2) provide a copy of either the redetermination or the Request to Docket Case form to the applicant and the school district.(g) Request to docket case. In accordance with the provisions of SOAH Rules of Procedure, 1 TAC §155.53, at the time the Request to Docket Case form is filed with SOAH, the LGA shall file with SOAH a copy of:(1) the applicant's application, forms, schedules and attachments that were submitted to the comptroller by the school district as of the date of the comptroller's eligibility determination;(2) the applicant's Request for Hearing and Statement of Grounds together with any contemporaneously filed supporting evidence; and(3) the LGA's Position Letter.(h) SOAH Rules of Procedure. Upon the filing of the Request to Docket Case form with SOAH, the SOAH Rules of Procedure, 1 TAC Chapter 155, shall apply through the issuance of a proposal for decision and rulings on any exceptions that may be filed.(i) Comptroller decision. Upon receipt of the proposal for decision from SOAH and review of any exceptions filed by the applicant and the assistant general counsel, the comptroller shall issue a decision. Notification of the comptroller's decision will be mailed to the applicant's authorized representative(s) and to the school district by first class mail. The authorized representative(s) is presumed to have been notified of the comptroller's decision on the third day after notice of the decision is mailed.(j) Judicial review. Pursuant to Tax Code, §313.025(h), the applicant may seek judicial review of the comptroller's eligibility determination in a Travis County district court.(1) The timely filing of a motion for rehearing is a prerequisite to judicial review. A motion for rehearing shall be filed by the applicant not later than the 20th day after the date on which the applicant or the applicant's attorney of record is notified of the decision.(2) In the absence of a timely filed motion for rehearing, a decision is final on the expiration of the period for filing a motion for rehearing as described in paragraph (1) of this subsection. The final decision is not appealable.(3) If a timely motion for rehearing is filed as described in paragraph (1) of this subsection, the deputy comptroller shall act on a motion for rehearing not later than the 45th day after the date on which the applicant or the applicant's attorney of record is notified of the decision. The deputy comptroller may by written order extend the time for taking action, but may not extend the time beyond the 90th day after the date on which the applicant or the applicant's attorney of record is notified of the decision. The decision is final and appealable on the date an order overruling a motion for rehearing is signed or on the date the motion is overruled by operation of law.(4) If the applicant elects to exercise its ability to seek judicial review, the applicant is required to pay all of the cost of preparation of the original and certified copy of the record of the agency proceeding that is required to be sent to the reviewing court including any cost of providing copies of the record to the parties. The cost of preparation of the record includes, but is not limited to, the cost of any transcript.(k) Time computation. Time periods identified in this section shall be computed as provided by §1.31 of this title (relating to Computation of Time).",
            "sourceNote": "Source Note: The provisions of this §9.1056 adopted to be effective June 22, 2010, 35 TexReg 5368."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=167524&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "167524",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "LIMITATION ON APPRAISED VALUE ON CERTAIN QUALIFIED PROPERTIES"
            },
            "rule": {
                "number": "§9.1057",
                "label": "Reports by Comptroller"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198257&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "198257",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In order to fulfill the comptroller's statutory obligation under Tax Code, Chapter 313, the comptroller may request information from:(1) approved applicants;(2) school districts;(3) appraisal districts; or(4) any other relevant source.(b) The entities receiving a request from the comptroller under this section shall provide the information requested in the form and in the manner designated by the comptroller.",
            "sourceNote": "Source Note: The provisions of this §9.1057 adopted to be effective June 22, 2010, 35 TexReg 5370; amended to be effective June 2, 2014, 39 TexReg 4259."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198257&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "198257",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "LIMITATION ON APPRAISED VALUE ON CERTAIN QUALIFIED PROPERTIES"
            },
            "rule": {
                "number": "§9.1058",
                "label": "Miscellaneous Provisions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=176098&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "176098",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A recipient of limited value under Tax Code, Chapter 313 shall notify immediately the comptroller, school district, and appraisal district in writing of any change in address or other contact information for the owner of the property subject to the limitation agreement for the purposes of Tax Code, §313.032. An assignee's or its reporting entity's Texas Taxpayer Identification Number shall be included in the notification.(b) Changes in property values, population data, or strategic investment area designations that occur after an agreement is executed do not affect the job requirements or value limitation in the agreement.(c) The comptroller may promulgate guidelines for the administration of Tax Code, Chapter 313.(d) The comptroller shall provide information for determining the category in which a school district is classified pursuant to either Tax Code, §313.022 or §313.052 using the following procedure:(1) No later than October 1 of each year, the comptroller shall publish on its website a list and map of the areas that qualify as a strategic investment area using the most recently completed full calendar year data available as of September 1 of that year.(2) The school district and the comptroller shall apply the information from this list and property tax values published by the comptroller's Property Tax Assistance Division to determine school district categories applicable to applications for agreements for value limitation for the succeeding calendar year starting on January 1 of such year.(e) Unless expressly stated otherwise, applications and the agreements executed for such application are governed by the statutes and applicable rules and guidelines in effect at the time the application is determined to be complete.(f) To qualify as a series of agreements under Tax Code, §313.027(h), all agreements in the series must be submitted concurrently at application and all agreements in the series must be held by the same agreement holder on closely related projects in which the first year of limitation for each agreement begins in different years. Additionally, the application must clearly state the agreement will be part of a series of agreements under Tax Code, §313.027(h) and set forth the other agreements that are intended to be included as part of such series.",
            "sourceNote": "Source Note: The provisions of this §9.1058 adopted to be effective January 9, 2008, 33 TexReg 273; amended to be effective June 22, 2010, 35 TexReg 5370; amended to be effective June 2, 2014, 39 TexReg 4259; amended to be effective September 11, 2017, 42 TexReg 4652; amended to be effective February 6, 2020, 45 TexReg 764."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=176098&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "176098",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "LIMITATION ON APPRAISED VALUE ON CERTAIN QUALIFIED PROPERTIES"
            },
            "rule": {
                "number": "§9.1059",
                "label": "Annual Compliance Review for Qualifying Jobs and Penalties"
            },
            "nextRule": {
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                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The comptroller shall conduct an annual review of new qualifying jobs for each agreement holder to determine whether the agreement holder has created the number of new qualifying jobs required in the agreement and Tax Code, Chapter 313.(b) To make the determination, the comptroller may:(1) review any Job Creation Compliance Report (Form 50-825) submitted by the agreement holder;(2) request additional information from the agreement holder and inspect the facilities of the agreement holder at which the jobs were to be created, subject to 3 day advance notice to the agreement holder and a mutually agreeable time during regular business hours; or(3) consider any other information that is available to the comptroller.(c) The comptroller may issue a determination that a job created by the agreement holder is not a new qualifying job if the job is identified as a qualifying job by the agreement holder:(1) does not provide 1,440 hours of work or more for that year;(2) was transferred from a facility of the agreement holder from one area of the state to the property covered by the agreement;(3) was created to replace a previous employee of the agreement holder;(4) is not covered by a group health benefit plan for which the business offers to pay at least 72% of the premiums or other charges assessed for employee-only coverage under the plan, regardless of whether an employee may voluntarily waive the coverage; or(5) does not pay an amount equal to at least 99% of the average weekly wage for manufacturing jobs in the county where the jobs are located and calculated pursuant to the method prescribed by Tax Code, §313.021(5) that is elected by the agreement holder in the application.(d) If the comptroller makes a determination that the agreement holder did not create the required number of qualifying jobs pursuant to subsection (c) of this section, the comptroller shall provide notice to the agreement holder which shall include:(1) the cause of the adverse determination; and(2) corrective measures necessary to remedy the non-compliance.(e) If the comptroller finds that an agreement holder who received an adverse determination in the previous year has failed to remedy the non-compliance following notification of the determination and the comptroller makes an adverse determination with respect to the agreement holder's compliance in the succeeding year:(1) the comptroller shall provide notice to the agreement holder as required by subsection (d) of this section; and(2) the agreement holder shall submit to the comptroller a plan to remedy the non-compliance and certify the agreement holder's intent to fully implement the plan not later than December 31 of the year in which the determination is made.(f) If the comptroller finds that an agreement holder who received an initial adverse determination under subsection (d) of this section and a second adverse determination under subsection (e) of this section, and has failed to remedy the non-compliance following notification of both determinations and the comptroller makes a third adverse determination with respect to the agreement holder's compliance in the year following the second adverse determination under subsection (e) of this section, the comptroller shall impose a penalty on the agreement holder in an amount equal to the amount computed by:(1) subtracting from the number of qualifying jobs required to be created the number of qualifying jobs actually created as determined in the third adverse determination under this subsection; and(2) multiplying the amount computed under paragraph (1) of this subsection, by the average annual wage for all jobs in the county during the most recent four quarters for which data is available.(g) Notwithstanding subsection (f) of this section, if the comptroller finds that an agreement holder has received an adverse determination and the comptroller has previously imposed a penalty on the agreement holder under this section one or more times for the same agreement, the comptroller shall impose a penalty on the agreement holder in an amount equal to the amount computed by multiplying the amount computed under subsection (f) of this section, by an amount equal to twice the average annual wage for all jobs in the county during the most recent four quarters for which data is available.(h) In no event shall a penalty assessed under this section exceed an amount equal to the difference between the amount of the ad valorem tax benefit received by the agreement holder under the agreement in the preceding year and the amount of any supplemental payments made to the school district in that year.(i) If the comptroller imposes a penalty on an agreement holder under this section three times, the comptroller may rescind the agreement between the agreement holder and the school district under this chapter.(j) An adverse determination made under this subsection is subject to the provisions applicable to a deficiency determination under, and subject to the provisions to, Tax Code, §§111.008, 111.0081, and 111.009. A penalty imposed under this subsection is an amount the comptroller is required to collect, receive, administer, or enforce, and the determination is subject to the payment and redetermination requirements of Tax Code, §111.0081 and §111.009. A redetermination under Tax Code, §111.009 of an adverse determination under this section is a contested case as defined by Government Code, §2001.003.(k) The comptroller shall deposit a penalty collected under this section, including any interest and penalty applicable to the penalty, to the credit of the foundation school fund.(l) The penalties and procedures set out in this section do not affect the enforcement of any provisions in an agreement for value limitation between the school district and an agreement holder.",
            "sourceNote": "Source Note: The provisions of this §9.1059 adopted to be effective June 2, 2014, 39 TexReg 4259; amended to be effective January 24, 2016, 41 TexReg 624."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=176099&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "176099",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "F",
                "label": "LIMITATION ON APPRAISED VALUE ON CERTAIN QUALIFIED PROPERTIES"
            },
            "rule": {
                "number": "§9.1060",
                "label": "Agreement for Limitation on Appraised Value"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=139016&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "139016",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Pursuant to the provisions of Tax Code, Chapter 313 and this subchapter, in order to implement a limitation on the appraised value for school district maintenance and operation tax purposes on the approved applicant's qualified property that has been approved by the governing body of the school district, at the time of the approval of the application, the authorized representative of the school district and the approved applicant shall execute a Texas Economic Development Act Agreement, as specified in §9.1052(a)(6) of this title (relating to Forms).",
            "sourceNote": "Source Note: The provisions of this §9.1060 adopted to be effective January 24, 2016, 41 TexReg 624."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=139016&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "139016",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "G",
                "label": "SPECIAL APPRAISAL"
            },
            "rule": {
                "number": "§9.2001",
                "label": "Purpose and Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=139017&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "139017",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The purpose of this section is to implement the intent of Tax Code, §23.51(1) and (7) and §23.251 as follows: (1) to encourage the preservation of open space for wildlife management and conservation of the state's natural heritage in all areas of the state; (2) to create definitive standards for tax appraisers to follow in determining the qualification of property for appraisal on the basis of wildlife management use; (3) to create a mechanism in addition to traditional agricultural use to allow ranchers, farmers, and land managers to conserve open space; (4) to affirm local control of property taxation; (5) to preserve revenue neutrality for all concerned parties; and (6) to allow each property currently qualified in wildlife management use to continue being appraised as open space land. (b) The following words and terms, when used in this subchapter, shall have the following meanings: (1) Manual for the Appraisal of Agricultural Land --a publication of the Comptroller of Public Accounts. A copy of this publication may be obtained by contacting Texas Comptroller of Public Accounts, Property Tax Division, P.O. Box 13528, Austin, Texas 78711-3528, or online through www.window.state.tx.us.  (2) Guidelines for Qualification of Agricultural Land in Wildlife Management Use --a publication of the Comptroller of Public Accounts. A copy of this publication may be obtained by contacting Texas Comptroller of Public Accounts, Property Tax Division, P.O. Box 13528, Austin, Texas 78711-3528, or online through www.window.state.tx.us. (3) Comprehensive Wildlife Management Planning Guidelines --a series of publications of the Texas Parks and Wildlife Department. Copies of these publications may be obtained by contacting Texas Parks and Wildlife Department, 4200 Smith School Road, Austin, Texas 78744-3291 or online through www.tpwd.state.tx.us. There is a separate publication for the following ecoregions or groups of ecoregions: (A) Edwards Plateau and Cross Timbers and Prairies; (B) Gulf Prairies and Marshes; (C) High Plains and Rolling Plains; (D) Pineywoods; (E) Post Oak Savannah and Blackland Prairie; (F) South Texas Plains; and (G) Trans-Pecos. (4) Wildlife management practices--the management categories listed in Tax Code, §23.51(7)(A)(i) - (vii), habitat control, erosion control, predator control, providing supplemental supplies of water, providing supplemental supplies of food, providing shelters, and making of census counts to determine population. (5) Wildlife management activities--the method of implementation of wildlife management practices through the specific activities described in Guidelines for Qualification of Agricultural Land in Wildlife Management Use  and the Comprehensive Wildlife Management Planning Guidelines  for the ecoregion in which the tract of land is located. (6) Tract of land--the entire area of a parcel or contiguous parcels of land as reflected in appraisal district records, under common ownership. The presence of public roads and bodies of water does not affect the contiguity of the parcels of land. (7) Wildlife management property association--a group of landowners whose tracts of land: (A) are contiguous (the presence of public roads and bodies of water does not affect the contiguity of the tracts of land); (B) are subject to the wildlife use requirements set forth in §9.2005 of this title (relating to Wildlife Use Requirement);  (C) are appraised as qualified open space land under Tax Code, Chapter 23, Subchapter D; and (D) are subject to a written agreement that legally obligates the owner of each tract of land to perform the management practices and activities necessary for each tract of land to qualify under this subchapter for appraisal based on wildlife management use. (8) Indigenous wildlife--all native animals that originated in or naturally migrate into or through an area, and that are capable of living naturally in that area, but does not include exotic livestock as defined by Agriculture Code, §142.001(4). (9) Breeding population--a group or population of indigenous wildlife that is capable of perpetuating itself through natural breeding.  (10) Migrating population--indigenous wildlife that moves between seasonal ranges. (11) Wintering population--indigenous wildlife that occupies an area during the winter as a consequence of natural migratory behavior. (12) Human use--the use of indigenous wildlife or habitat for food, medicine, or recreation by humans. (13) Recreation--an active or passive activity for pleasure or sport. (14) Wildlife use requirement--the number calculated in the manner required by §9.2005(a), as specified by §9.2005(c)(1) - (12) of this title (relating to Wildlife Use Requirement), for each wildlife use appraisal region.",
            "sourceNote": "Source Note: The provisions of this §9.2001 adopted to be effective December 11, 2008, 33 TexReg 10042."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=139017&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "139017",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "G",
                "label": "SPECIAL APPRAISAL"
            },
            "rule": {
                "number": "§9.2002",
                "label": "Wildlife Use Appraisal Regions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=139018&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "139018",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Wildlife use appraisal regions are designated by Texas Parks and Wildlife Department as follows:(1) Trans Pecos Region--Brewster, Crane, Culberson, El Paso, Hudspeth, Jeff Davis, Loving, Pecos, Presidio, Reeves, Terrell, Ward, and Winkler counties.(2) High Plains Region--Andrews, Armstrong, Bailey, Carson, Castro, Cochran, Crosby, Dallam, Dawson, Deaf Smith, Ector, Floyd, Gaines, Glasscock, Hale, Hansford, Hartley, Howard, Hutchinson, Hockley, Lamb, Lubbock, Lynn, Martin, Midland, Moore, Ochiltree, Oldham, Parmer, Potter, Randall, Sherman, Swisher, Terry, Upton, and Yoakum counties.(3) Rolling Plains Region--Archer, Baylor, Borden, Briscoe, Callahan, Childress, Clay, Coke, Coleman, Collingsworth, Concho, Cottle, Dickens, Donley, Fisher, Foard, Garza, Gray, Hall, Hardeman, Haskell, Hemphill, Jones, Kent, King, Knox, Lipscomb, McCulloch, Mitchell, Motley, Nolan, Roberts, Runnels, Scurry, Shackelford, Stonewall, Taylor, Throckmorton, Tom Green, Wheeler, Wichita, and Wilbarger counties.(4) Edwards Plateau (Western) Region--Crockett, Edwards, Irion, Kimble, Menard, Reagan, Real, Schleicher, Sterling, Sutton, and Val Verde counties.(5) Edwards Plateau (Eastern) Region--Bandera, Bexar, Blanco, Burnet, Comal, Gillespie, Hays, Kendall, Kerr, Llano, Mason, San Saba, Travis, and Williamson counties.(6) Cross Timbers and Prairies Region--Bell, Bosque, Brown, Comanche, Cooke, Coryell, Denton, Eastland, Erath, Hamilton, Hood, Jack, Johnson, Lampasas, Mills, Montague, Palo Pinto, Parker, Somervell, Stephens, Tarrant, Wise, and Young counties.(7) Gulf Prairies and Marshes Region (Upper Coast)--Austin, Brazoria, Calhoun, Chambers, Colorado, Fort Bend, Galveston, Harris, Jackson, Jefferson, Matagorda, Orange, Victoria, Waller, and Wharton counties.(8) Gulf Prairies and Marshes Region (Lower Coast)--Aransas, Brooks, Cameron, Hidalgo, Jim Wells, Kenedy, Kleberg, Nueces, Refugio, San Patricio, and Willacy counties.(9) Post Oak Savannah Region--Bastrop, Bee, Brazos, Burleson, Caldwell, Dewitt, Fayette, Franklin, Freestone, Goliad, Gonzales, Grimes, Guadalupe, Henderson, Hopkins, Karnes, Lavaca, Lee, Leon, Madison, Rains, Red River, Robertson, Titus, Van Zandt, Washington, and Wilson counties.(10) Blackland Prairie Region--Collin, Dallas, Delta, Ellis, Falls, Fannin, Grayson, Hill, Hunt, Kaufman, Lamar, Limestone, McLennan, Milam, Navarro, and Rockwall counties.(11) Pineywoods Region--Anderson, Angelina, Bowie, Camp, Cass, Cherokee, Gregg, Hardin, Harrison, Houston, Jasper, Liberty, Marion, Montgomery, Morris, Nacogdoches, Newton, Panola, Polk, Rusk, Sabine, San Augustine, San Jacinto, Shelby, Smith, Trinity, Tyler, Upshur, Walker, and Wood counties.(12) South Texas Plains Region--Atascosa, Dimmit, Duval, Frio, Kinney, LaSalle, Live Oak, Jim Hogg, McMullen, Maverick, Medina, Starr, Uvalde, Webb, Zavala, and Zapata counties.",
            "sourceNote": "Source Note: The provisions of this §9.2002 adopted to be effective December 11, 2008, 33 TexReg 10042."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=139018&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "139018",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "G",
                "label": "SPECIAL APPRAISAL"
            },
            "rule": {
                "number": "§9.2003",
                "label": "Wildlife Management Plan"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=139019&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "139019",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A wildlife management plan shall be completed on the form prescribed by Texas Parks and Wildlife Department (TPWD) for each tract of land for which qualification for agricultural appraisal is sought based on wildlife management use. A copy of this wildlife management plan form may be obtained by contacting Texas Parks and Wildlife Department, 4200 Smith School Road, Austin, Texas 78744-3291 or online through www.tpwd.state.tx.us. A chief appraiser may accept, but may not require, a wildlife management plan that is not on the form prescribed by TPWD if the wildlife management plan contains all of the information required by this section. (b) The wildlife management plan shall be provided to the appraisal district in which the tract of land is located. (c) The wildlife management plan must include: (1) ownership information, property description and current use; (2) the landowner's goals and objectives for the tract of land; (3) the specific indigenous wildlife species targeted for management; and (4) the specific management practices and activities to be implemented in support of the specific indigenous wildlife species targeted for management. (d) The specific management practices and activities in the wildlife management plan shall be intended to benefit the specific indigenous wildlife species targeted for management, and shall be consistent with the practices and activities recommended in Guidelines for Qualification of Agricultural Land in Wildlife Management Use  and the Comprehensive Wildlife Management Planning Guidelines  for the ecoregion in which the tract of land is located, and the landowner's goals and objectives. (e) If the tract of land provides habitat for species federally listed as endangered, threatened, or a candidate for listing as endangered or threatened, the wildlife management plan shall ensure that the specific management practices and activities do not harm the listed endangered, threatened, or candidate for listing as endangered or threatened species. (f) A wildlife property association may prepare a single wildlife management plan, provided all required information is included for each tract of land in the wildlife management property association and the plan is signed by each landowner or an agent of the landowner designated in the manner required by Tax Code, §1.111 and §9.3044 of this title (relating to Appointment of Agents for Property Tax). (g) An appraisal district may require, for each tract of land qualified for agricultural appraisal based on wildlife management use, that an annual report be filed showing how the wildlife management plan was implemented in any given year. A wildlife management property association may file a single annual report, if the report shows how the wildlife management plan was implemented on each tract of land in the wildlife management property association. If the report is required, it shall be completed on the form prescribed by TPWD and shall be signed by the landowner or an agent of the landowner designated in the manner required by Tax Code, §1.111 and §9.3044 of this title. If a single report is filed by a wildlife management property association, the report shall be signed by each landowner or an agent for each landowner designated in the manner required by Tax Code, §1.111 and §9.3044 of this title. A copy of the annual report form may be obtained by contacting Texas Parks and Wildlife Department, 4200 Smith School Road, Austin, Texas 78744-3291 or online through www.tpwd.state.tx.us.",
            "sourceNote": "Source Note: The provisions of this §9.2003 adopted to be effective December 11, 2008, 33 TexReg 10042."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=139019&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "139019",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "G",
                "label": "SPECIAL APPRAISAL"
            },
            "rule": {
                "number": "§9.2004",
                "label": "Qualification for Agricultural Appraisal Based on Wildlife Management Use"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=140369&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "140369",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The chief appraiser shall determine if land qualifies for agricultural appraisal based on wildlife management use in compliance with, and in a manner consistent with, §9.2005 of this title (relating to Wildlife Use Requirement), the Manual for the Appraisal of Agricultural Land, the Guidelines for Qualification of Land in Wildlife Management Use,  and the Comprehensive Wildlife Planning Guidelines  for the ecoregion in which the tract of land is located. (b) A tract of land qualifies for agricultural appraisal based on wildlife management use if: (1) the tract of land is appraised as qualified open space land under Tax Code, Chapter 23, Subchapter D; (2) the landowner's primary use of the tract of land is wildlife management; (3) the tract of land is actively being managed to sustain a breeding, migrating, or wintering population of indigenous wildlife through implementation of a wildlife management plan that meets the requirements of §9.2003 of this title (relating to Wildlife Management Plan); (4) in each tax year for which the owner seeks to qualify the tract of land for agricultural appraisal based on wildlife management use, the landowner has selected at least three wildlife management practices and, using wildlife management activities, has implemented each of the selected practices to the degree of intensity that is consistent with the Guidelines for Qualification of Agricultural Land in Wildlife Management Use  and the Comprehensive Wildlife Management Planning Guidelines  for the ecoregion in which the tract of land is located and for the specific indigenous wildlife species targeted for management; (5) the landowner manages indigenous wildlife for human use; and (6) the tract of land meets the specified wildlife use requirements set forth in §9.2005 of this title, if applicable.  (c) In the first year in which the owner seeks to qualify the tract of land for agricultural appraisal based on wildlife management use, the chief appraiser is required to approve the application if the facts stated on the application, the management plan, and any additional evidence presented by the owner indicate that the land will meet the requirements of subsection (b)(1) of this section and that the owner will devote the land primarily to wildlife management in the manner required by subsection (b)(2) - (3), (5) - (6) of this section, to a degree of intensity that complies with subsection (b)(4) of this section. If in the first year the owner's actual use of the land did not meet these requirements and was otherwise ineligible for appraisal as open-space land, Tax Code, §23.54(j) requires the chief appraiser to appraise the property at market value for the year that it was erroneously appraised. (d) The following factors indicate that the primary use of the land is wildlife management, and the chief appraiser shall take each factor into consideration when determining if the land is primarily used for wildlife management as required by subsection (b) of this section: (1) the tract of land is actively being managed under a wildlife management plan as required by this section; (2) the landowner gives the wildlife management practices and activities priority over other uses and activities that take place on the tract of land; and (3) secondary uses of the property do not significantly and demonstrably interfere with the wildlife management practices and activities being conducted on the tract of land or are not detrimental to the indigenous wildlife targeted for management. (e) For purposes of this subchapter, the Manual for the Appraisal of Agricultural Land,  and the Guidelines for Qualification of Agricultural Land in Wildlife Management Use,  \"primary use\" has the same meaning as \"principal use.\"",
            "sourceNote": "Source Note: The provisions of this §9.2004 adopted to be effective December 11, 2008, 33 TexReg 10042."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=140369&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "140369",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "G",
                "label": "SPECIAL APPRAISAL"
            },
            "rule": {
                "number": "§9.2005",
                "label": "Wildlife Use Requirement"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=32342&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "32342",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A tract of land's wildlife use requirement is a number expressed as a percentage and calculated by subtracting one from the total number of acres in the tract of land and dividing the result by the total number of acres in the tract of land. The following formula expresses the calculation, with \"x\" representing the tract of land's total acreage: (x-1) ÷ x = wildlife use requirement.(b) If the number of acres in the tract of land is equal to or greater than the number of acres in the tract of land on January 1 of the preceding tax year, the tract of land is not subject to the wildlife use requirement.(c) If the number of acres in the tract of land is fewer than the number of acres in the tract of land on January 1 of the preceding tax year, the wildlife use requirement the tract of land must meet to qualify for agricultural appraisal based on wildlife management use shall be selected by the chief appraiser, with the advice and consent of the Appraisal District Board of Directors, from the wildlife use requirement ranges specified for the wildlife use appraisal region in which the tract of land is located as follows:(1) Trans Pecos Region--at least 97% but not more than 99%.(2) High Plains Region--at least 96% but not more than 98%.(3) Rolling Plains Region--at least 96% but not more than 98%.(4) Edwards Plateau (Western) Region--at least 96% but not more than 98%.(5) Edwards Plateau (Eastern) Region--at least 93% but not more than 95%.(6) Cross Timbers and Prairies Region--at least 93% but not more than 95%.(7) Gulf Prairies and Marshes (Upper Coast) Region--at least 92% but not more than 94%.(8) Gulf Prairies and Marshes (Lower Coast) Region--at least 96% but not more than 98%.(9) Post Oak Savannah Region--at least 92% but not more than 94%.(10) Blackland Prairie Region--at least 92% but not more than 94%.(11) Pineywoods Region--at least 92% but not more than 94%.(12) South Texas Plains Region--at least 96% but not more than 98%.(d) The wildlife management use requirement that applies to a tract of land located in a wildlife management property association shall be selected by the chief appraiser, with the advice and consent of the Appraisal District Board of Directors, for the wildlife use appraisal region in which the tract of land is located as follows:(1) Trans Pecos Region--at least 95% but not more than 96%.(2) High Plains Region--at least 94% but not more than 96%.(3) Rolling Plains Region--at least 94% but not more than 95%.(4) Edwards Plateau (Western) Region--at least 94% but not more than 95%.(5) Edwards Plateau (Eastern) Region--at least 91% but not more than 92%.(6) Cross Timbers and Prairies Region--at least 91% but not more than 92%.(7) Gulf Prairies and Marshes (Upper Coast) Region--at least 90% but not more than 91%.(8) Gulf Prairies and Marshes (Lower Coast) Region--at least 94% but not more than 95%.(9) Post Oak Savannah Region--at least 90% but not more than 91%.(10) Blackland Prairie--at least 90% but not more than 91%.(11) Pineywoods Region--at least 90% but not more than 91%.(12) South Texas Plains Region--at least 94% but not more than 95%.(e) If the tract of land is located in an area designated by Texas Parks and Wildlife Department as habitat for endangered species, a threatened species, or a candidate species for listing as threatened or endangered, the wildlife use requirement for a tract of land to qualify for agricultural appraisal based on wildlife management use shall be selected by the chief appraiser, with the advice and consent of the Appraisal District Board of Directors, from the wildlife use requirement ranges specified for the wildlife use appraisal region in which the tract of land is located as follows:(1) Trans Pecos Region--at least 95% but not more than 96%.(2) High Plains Region--at least 94% but not more than 96%.(3) Rolling Plains Region--at least 94% but not more than 95%.(4) Edwards Plateau (Western) Region--at least 94% but not more than 95%.(5) Edwards Plateau (Eastern) Region--at least 91% but not more than 92%.(6) Cross Timbers and Prairies Region--at least 91% but not more than 92%.(7) Gulf Prairies and Marshes (Upper Coast) Region--at least 90% but not more than 91%.(8) Gulf Prairies and Marshes (Lower Coast) Region--at least 94% but not more than 95%.(9) Post Oak Savannah Region--at least 90% but not more than 91%.(10) Blackland Prairie Region--at least 90% but not more than 91%.(11) Pineywoods Region--at least 90% but not more than 91%.(12) South Texas Plains Region--at least 94% but not more than 95%.(f) The wildlife management use requirements made by this section do not apply to a tract of land if:(1) beginning with the tax year that began on January 1, 2002, the tract of land has continuously and without interruption qualified for agricultural appraisal based on wildlife management use; and(2) the size of the tract of land, when measured in acres, is equal to or greater than, the size of the tract on January 1, 2009.(g) The wildlife management use requirements set by this section do not apply to a tract of land located in Clay, McCulloch, or Terrell County that was qualified for agricultural appraisal based on wildlife management use in the tax year that began on January 1, 2008, if the size of the tract, when measured in acres, is equal to or greater than the size of the tract on January 1, 2008.",
            "sourceNote": "Source Note: The provisions of this §9.2005 adopted to be effective December 11, 2008, 33 TexReg 10042; amended to be effective April 14, 2009, 34 TexReg 2395."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=32342&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "32342",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3001",
                "label": "Appraisal Cards"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19849&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19849",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All appraisal district offices appraising property for purposes of ad valorem taxation shall develop and maintain a system of appraisal cards for all parcels of real estate which each office is required to appraise.(b) On each parcel of residential or commercial real estate, a separate appraisal card shall be developed and maintained which contains the following items of information related to the land:(1) the legal description of the land (this provision shall not be interpreted to require field note descriptions);(2) the account number of the property;(3) a section indicating zoning classification (if any);(4) a section indicating street improvements (e.g.: unimproved, graveled, paved);(5) a section indicating utilities available (e.g., water, sewer, electricity, gas);(6) a section indicating basic measurements of the land (e.g., frontage, depth, acreage);(7) a section for computation of the land value;(8) a section for any remarks by the appraiser relevant to the parcel;(9) the identification of each taxing unit in which the property is taxable.(c) On each parcel of residential or commercial real estate the appraisal card shall contain the following items of information related to the improvements on the parcel:(1) a diagram of all improvements on the parcel indicating perimeter measurements;(2) separate sections indicating the type of construction for the foundation, floor, exterior walls, and roof;(3) a section indicating the date of appraisal and the initials of the appraiser;(4) a section indicating the use type of the improvements (e.g., single-family, duplex, apartment, store, warehouse, factory, etc.);(5) a section indicating additional details of construction (e.g., porches, garages, storage buildings, fireplaces, etc.);(6) a section indicating depreciation calculation related to the improvements;(7) a section for the computation of the improvement value;(8) a section for any remarks or comments by the appraiser relevant to the improvements on the parcel;(9) in addition to all the information listed in this subsection, each appraisal card shall indicate the amount of appraised value of property included in the parcel for each category classification required by the annual school district report of property value.(d) On each parcel of rural or acreage real estate, an appraisal card shall be maintained which shall contain the following items of information related to the parcel:(1) all information required under subsection (c)(1)-(9) of this section for each improvement located on the parcel;(2) all information required under subsection (b)(1), (2), (3), (8), and (9) of this section related to the land;(3) a section indicating the size of the parcel and the number of acres in each of the following use categories:(A) irrigated;(B) dry cropland;(C) improved pasture;(D) native pasture;(E) orchard;(F) timber; and(G) barren or waste;(4) a section indicating road access (e.g., paved, gravel, dirt, unimproved, none);(5) a section indicating utility availability (electricity, gas, sewer, etc.);(6) in districts with irrigated land, a section indicating the number and capacity of irrigation wells or the number of acres covered by irrigation permits;(7) in addition to the information listed in this subsection, each appraisal card shall indicate the amount of appraised value of property included in the parcel for each category classification required by the annual school district report of property value.(e) Any information required by these sections may be maintained in electronic data processing records rather than in physical documents.(f) Appraisal district offices failing to establish an appraisal card system as required in this section may be judged to be in compliance upon a showing to the board that an appraisal card system substantially equivalent to that required in this section has been established.",
            "sourceNote": "Source Note: The provisions of this §9.3001 adopted to be effective August 10, 1979, 4 TexReg 2679; amended to be effective April 30, 1981, 6 TexReg 1441; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19849&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19849",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3002",
                "label": "Tax Maps"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19850&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19850",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All appraisal offices and all tax offices appraising property for purposes of ad valorem taxation shall develop and maintain a system of tax maps covering the entire area of the taxing units for whom each office appraises property.(b) Each tax map system shall be drawn to scale and delineated for lot lines or property lines or both, with dimensions or areas and identifying numbers, letters, or names for all delineated lots or parcels.(c) Each tax map shall be divided into sections drawn at a scale large enough to serve the purposes of property assessment. Developed or subdivided areas may be drawn at a different scale than undeveloped or unsubdivided tracts.(d) The tax map, each section thereof, and each parcel thereon shall be assigned numbers in accordance with a parcel identification numbering system. Such numbers shall be recorded on the tax map, section, and parcel. The identifying number for each parcel as recorded on the tax map shall also be recorded on the appraisal card maintained for that parcel.(e) The tax map system shall be annually updated to incorporate any new subdivisions or property transfers as indicated by the filing of subdivision plats or deeds with the county clerk's office of the county or counties in which the taxing units for whom each office appraises property are located.(f) Any information required by these sections may be maintained in electronic data processing records rather than physical documents.(g) Development of tax map systems (or substantial progress toward development) shall be completed by January 1, 1983.(h) Appraisal offices and tax offices failing to establish a tax map system as required in this section may be judged to be in compliance upon a showing to the board that a tax map system substantially equivalent to that required in this section has been established.",
            "sourceNote": "Source Note: The provisions of this §9.3002 adopted to be effective August 10, 1979, 4 TexReg 2679; amended to be effective September 1, 1981, 6 TexReg 3270; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19850&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19850",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3003",
                "label": "Uniform Tax Records System"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148394&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148394",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All tax offices appraising property for purposes of ad valorem taxation shall develop and maintain a uniform tax records system.(b) The uniform tax records system shall be composed of the following items of information:(1) appraisal cards;(2) maps;(3) rendition forms;(4) report of decreased value forms;(5) appraisal records of all property;(6) tax roll of any taxing jurisdiction for whom the office assesses or collects;(7) delinquent tax roll of any taxing jurisdiction for whom the office assesses and collects taxes;(8) alphabetical index;(9) partial exemption lists;(10) absolute exemption lists for property for which an exemption application is required; and(11) open-space land valuation; agricultural use valuation; timber use valuation; recreational, park, and scenic land valuation; and public access airport property lists.(c) Each item required in the uniform tax records system shall be developed and maintained as required by subsequent rules of the board.(d) Any item required by these sections may be maintained in electronic data processing records rather than in physical documents. However, a physical document for the appraisal roll for the appraisal district or for a taxing unit and the tax rolls for a taxing unit must be prepared and made readily available to the public, as required by Texas Property Tax Code, §1.10.(e) Appraisal district offices failing to establish a uniform tax records system as required in this section may be judged to be in compliance upon a showing to the board that a uniform tax records system substantially equivalent to that required in this section has been established.",
            "sourceNote": "Source Note: The provisions of this §9.3003 adopted to be effective April 30, 1981, 6 TexReg 1441; amended to be effective October 30, 1981, 6 TexReg 3873; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148394&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148394",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3004",
                "label": "Appraisal Records of All Property"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19851&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19851",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All appraisal district offices appraising property for purposes of ad valorem taxation shall develop and maintain appraisal records of all property which each office is required to appraise.(b) The appraisal records of all property shall be two lists--one list for real property and one list for personal property--and shall contain the following items of information as applicable:(1) the name and address of the owner or, if the name or address is unknown, a statement that it is unknown;(2) the legal description of the real property of the owner (this provision shall not be interpreted to require field note descriptions);(3) the separately taxable estates or interests in real property, including taxable possessory interests in exempt real property;(4) the general description of taxable personal property and location thereof, if available;(5) if the property is a manufactured home, as defined in Occupations Code, §1201.003, the permanent identification number(s) or serial number(s) attached to the home, together with the make and model of the home, its approximate age, general physical condition, and any characteristics that distinguish the home from other manufactured homes;(6) the appraised value of land and, if the land is appraised as provided by Tax Code, Chapter 23, Subchapter C, D, or H, the market value of the land;(7) the appraised value of improvements to land;(8) the appraised value of a separately taxable estate or interest in land;(9) the appraised value of personal property;(10) the kind of any partial exemption the owner is entitled to receive, whether the exemption applies to appraised value, and in the case of an exemption authorized by Tax Code, §11.23, the amount of the exemption;(11) whether the property qualifies for an extension of the school tax ceiling as the residence homestead of an over-55 surviving spouse of a person who qualified the homestead for a tax ceiling before his or her death;(12) the tax year to which the appraisal applies;(13) an identification of each taxing unit in which the property is taxable;(14) whether the property qualifies for appraisal at its value as of September 1 of the year preceding the tax year;(15) the name and address of an agent for notices, if any;(16) whether the property is a special inventory, as defined by Tax Code, §23.12A;(17) whether the property is subject to a limitation of school taxes as provided by Tax Code, §11.26, and whether and when the limitation was transferred to the homestead as provided by Tax Code, §11.26(g);(18) whether the property is subject to a limitation on the appraised value of a residence homestead as provided by Tax Code, §23.23; and(19) whether the property is subject to the deferred collection of taxes on an appreciating homestead as provided by Tax Code, §33.065.(c) The entry for each real property parcel that is appraised as part of a residential real property inventory shall indicate that the property is appraised as inventory and identify the inventory of which it is a part.(d) Any item required by these sections may be maintained in electronic data processing records rather than in physical documents. However, a physical document for the appraisal roll for the appraisal district or for a taxing unit must be prepared and made readily available to the public, as required by Tax Code, §1.10.(e) An appraisal district may maintain its appraisal records in any form that substantially complies with the provisions of this section.",
            "sourceNote": "Source Note: The provisions of this §9.3004 adopted to be effective April 30, 1981, 6 TexReg 1441; amended to be effective October 30, 1981, 6 TexReg 3873; amended to be effective January 21, 1986, 11 TexReg 93; amended to be effective May 18, 1988, 13 TexReg 2165; amended to be effective August 22, 1988, 13 TexReg 3876; amended to be effective June 22, 1990, 15 TexReg 3350; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481; amended to be effective March 24, 1994, 19 TexReg 1831; amended to be effective July 30, 1998, 23 TexReg 7591; amended to be effective September 30, 2010, 35 TexReg 8770."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19851&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19851",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3005",
                "label": "Tax Roll for Any Taxing Unit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=221240&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "221240",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All offices assessing or collecting or both for purposes of ad valorem taxation shall develop and maintain a tax roll of any taxing jurisdiction for whom that office performs these functions.(b) The tax roll of any taxing jurisdiction shall contain the following items of information on each parcel of property:(1) the name and address of the owner of the property;(2) the legal description of the property;(3) the account number of the property;(4) the value of the property which is certified by the Appraisal Review Board;(5) the kind and amount of any partial exemptions applied against the value of the property, if any; and(6) the amount of the tax levied on the property.(c) Any item required by these sections may be maintained in electronic data processing records rather than in physical documents. However, a physical document for the tax roll for a taxing unit must be prepared and made readily available to the public, as required by Texas Property Tax Code, §1.10.(d) No provisions of these sections are to be construed as prohibiting the consolidation of rolls.(e) Offices failing to establish a tax roll of any taxing jurisdiction as required in this section may be judged to be in compliance upon a showing to the board that a tax roll of any taxing unit substantially equivalent to that required in this section has been established.",
            "sourceNote": "Source Note: The provisions of this §9.3005 adopted to be effective April 30, 1981, 6 TexReg 1441; amended to be effective October 30, 1981, 6 TexReg 3873; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=221240&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "221240",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3006",
                "label": "Notice of Estimated Taxes Required to be Posted by County Appraisal Districts and Taxing Unit Assessors"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19852&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19852",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The chief appraiser and assessor collector for each taxing unit participating in the appraisal district shall include the following information in a notice of estimated taxes required under Tax Code, §26.04(e-2):(1) A statement directing the property owner to an Internet website from which the owner may access information related to the actions taken or proposed to be taken by each taxing unit in which the property is located that may affect the taxes imposed on the owner's property. The statement must include a heading that is in bold, capital letters in type larger than that used in the other provisions of the notice;(2) A statement that the property owner may request from the county assessor-collector for the county in which the property is located, or if the county assessor-collector does not assess taxes for the county, the person who assess taxes for the county under Tax Code, §6.24(b), contact information for the assessor for each taxing unit which the property is located who must provide the information described in this subsection to the owner on request;(3) The name, address, and telephone number of the county assessor-collector for the county in which the property is located or, if the county assessor-collector does not assess taxes for the county, the person who assesses taxes for the county under Tax Code, §6.24(b); and(4) Instructions describing how a property owner may register on the appraisal district's Internet website to have notifications regarding updates to the property tax database delivered to the owner by e-mail.(b) The chief appraiser and assessor collector for each taxing unit participating in the appraisal district may use the comptroller prescribed model form applicable to this section or use a different form that sets out the information listed in subsection (a) of this section.(c) The chief appraiser of each appraisal district and the assessor collector for each taxing unit participating in the appraisal district may determine the format, posting, and publication of notice under this section, as long as the format, posting, and publication comply with Tax Code, §26.04(e-2), (e-3), and (e-6).",
            "sourceNote": "Source Note: The provisions of this §9.3006 adopted to be effective September 21, 2020, 45 TexReg 6595; amended to be effective October 23, 2024, 49 TexReg 8473."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19852&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19852",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3008",
                "label": "Delinquent Tax Roll of Any Taxing Unit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=27235&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "27235",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All offices collecting for purposes of ad valorem taxation shall develop and maintain a delinquent tax roll of any taxing unit for whom that office performs this function.(b) The delinquent tax roll of any taxing jurisdiction shall contain the following items of information on each parcel of property which has delinquent taxes:(1) the year for which the taxes on the property are delinquent;(2) the name and address of the current owner of the property;(3) the legal description of the property as listed on the tax roll;(4) the account number of the property; and(5) the amount of the tax levied.(c) Any information required by these sections may be maintained in electronic data processing records rather than in physical documents.(d) No provisions of these sections are to be construed as prohibiting the consolidation of rolls.(e) Offices failing to establish a delinquent tax roll of any taxing unit as required in this section may be judged to be in compliance upon a showing to the board that a delinquent tax roll of any taxing unit substantially equivalent to that required has been established.",
            "sourceNote": "Source Note: The provisions of this §9.3008 adopted to be effective July 22, 1976, 1 TexReg 1894; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=27235&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "27235",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3009",
                "label": "Alphabetical Index"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19853&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19853",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All appraisal district offices appraising property for purposes of ad valorem taxation shall develop and maintain an alphabetical index of property owners.(b) The alphabetical index of property owners shall contain the following items of information:(1) the name of the owner (listed alphabetically); and(2) the account number of the property.(c) Any information required by these sections may be maintained in electronic data processing records rather than in physical documents.(d) Appraisal district offices failing to establish an alphabetical index as required in this section may be judged to be in compliance upon a showing to the board that an alphabetical index substantially equivalent to that required has been established.",
            "sourceNote": "Source Note: The provisions of this §9.3009 adopted to be effective July 22, 1976, 1 TexReg 1894; amended to be effective April 30, 1981, 6 TexReg 1445; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19853&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19853",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3010",
                "label": "Partial Exemption Lists"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19854&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19854",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All appraisal district offices appraising property for purposes of ad valorem taxation shall develop and maintain partial exemption lists.(b) The partial exemption lists shall contain the following two items of information for the state-mandated homestead exemption, the state-mandated over-65 homestead exemption, the state-mandated disability homestead exemption, the local-option percentage homestead exemption, the optional over-65 or disability homestead exemption, and the disabled veteran's exemption: the total number of each kind of partial exemption for each taxing unit and total value that is exempted by each kind of partial exemption for each taxing unit. A list showing this information for each kind of partial exemption shall be made available to the public.(c) Any item required by these sections may be maintained in electronic data processing records rather than in physical documents.(d) No provisions in these sections are to be construed as prohibiting the consolidation of lists.(e) Appraisal district offices failing to establish partial exemption lists as required in this section may be judged to be in compliance upon a showing to the board that partial exemption lists substantially equivalent to that required have been established.",
            "sourceNote": "Source Note: The provisions of this §9.3010 adopted to be effective April 30, 1981, 6 TexReg 1441; amended to be effective October 30, 1981, 6 TexReg 3873; amended to be effective January 6, 1984, 8 TexReg 5413; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19854&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19854",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3011",
                "label": "Absolute Exemption Lists"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=32468&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "32468",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as provided by subsection (f) of this section, each appraisal office appraising property for purposes of ad valorem taxation shall develop and maintain absolute exemption lists of property for which an exemption application is required.(b) The absolute exemption lists, categorized by the type of absolute exemption granted, shall contain the following items of information:(1) the name and address of the owner as of January 1 of the tax year; and(2) the account number of the property, if any.(c) Any information required by these sections may be maintained in electronic data processing records rather than in physical documents.(d) No provisions in these sections are to be construed as prohibiting the consolidation of lists.(e) An appraisal district office failing to establish absolute exemption lists as required in this section may be judged to be in compliance on a showing to the Comptroller of Public Accounts that absolute exemption lists substantially equivalent to that required by this section have been established.(f) Each appraisal district office shall not be required to develop and maintain absolute exemption lists of:(1) income-producing tangible personal property used to produce income and having a value of less than $500; and(2) mineral interests having a value of less than $500.",
            "sourceNote": "Source Note: The provisions of this §9.3011 adopted to be effective July 22, 1976, 1 TexReg 1894; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481; amended to be effective March 18, 1996, 21 TexReg 1889."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=32468&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "32468",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3012",
                "label": "Open-Space Land Valuation; Agricultural Use Valuation; Timber Use Valuation; Recreational, Park, and Scenic Land Valuation; and Public Access Airport Property Lists"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19855&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19855",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All appraisal district offices appraising property for purposes of ad valorem taxation shall develop and tax offices collecting ad valorem taxes shall maintain open-space land valuation; agricultural-use valuation; timber-use valuation; recreational, park, and scenic land valuation; and public access airport property lists. These lists shall be made available to the public.(b) These five lists, categorized by the type of valuation granted, shall contain the following items of information for each 12-month period beginning June 1:(1) the name of at least one owner (kept in alphabetical order) of the property as of January 1 of the tax year;(2) the account number of the property;(3) the legal description of the real property; and(4) the acreage of the property.(c) Any information required by these sections may be maintained in electronic data processing records rather than in physical documents.(d) No provisions in these sections are to be construed as prohibiting the consolidation of lists.(e) Offices failing to establish open-space land valuation; agricultural use valuation; timber use valuation; recreational, park, and scenic land valuation; and public access airport property lists as required in this section may be judged to be in compliance upon a showing to the board that such lists substantially equivalent to that have been established.",
            "sourceNote": "Source Note: The provisions of this §9.3012 adopted to be effective April 30, 1981, 6 TexReg 1441; amended to be effective October 30, 1981, 6 TexReg 3873; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19855&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19855",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3014",
                "label": "Property Identification System"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=71717&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "71717",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All appraisal district offices appraising property for purposes of ad valorem taxation shall develop and maintain a system of property identification and description.(b) The system of property identification developed should provide a one-to-one relationship between a parcel of property and its identification.(c) The system of property identification developed should provide that each property identification changes when the physical boundaries of a parcel of property changes to which it is assigned.(d) A system of property identification developed should provide for an easily generated property identification that is achieved through a minimum of steps.(e) A system of property identification developed should provide for easy maintenance and updating.(f) A system of property identification developed should be convenient to use by the appraisal district office.(g) Any information required by these sections may be maintained in electronic data processing records rather than in physical documents.(h) Appraisal district offices failing to establish a system of property identification and description as required in this section may be judged to be in compliance upon a showing to the board that a system of property identification and description substantially equivalent to that required has been established.",
            "sourceNote": "Source Note: The provisions of this §9.3014 adopted to be effective July 22, 1976, 1 TexReg 1894; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=71717&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "71717",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3015",
                "label": "Report of Decreased Value Forms"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223923&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223923",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All appraisal offices shall prepare and make available forms for the report of decreased value by any property owner.(b) All forms for the report of decreased value by any property owner shall provide for the following information:(1) a statement indicating that the report form is to be filed by the property owner after January 1 and not later than April 15;(2) the year for which the report of decreased value is filed;(3) the name of any taxing units to which the report of decreased value is filed;(4) the identification of the property owner filing the report of decreased value (name and address);(5) the legal description of the property involved in the filing of the report of decreased value and its location;(6) the name and address of a person to contact for additional information;(7) the date of the report of decreased value;(8) the signature of the property owner, or the authorized officer or agent, filing the report of decreased value; and(9) a statement that the report of decreased value is confidential and not open to public inspection, except for those instances set forth in the Tax Code, §22.27(b).(c) In order to determine the appraised value of property that is the subject of a completed and timely filed report of decreased value, the report form will provide for the following necessary information:(1) a statement indicating the nature and cause of decreased value of the property subject to the report; and(2) a statement indicating that the property owner may state his or her opinion about the market value of the property subject to the report.(d) All forms for the report of decreased value by any property owner shall require the property owner to state that the information contained in the form is true and correct to the best of the property owner's knowledge and belief. If the report is filed by someone other than the property owner, an employee of the property owner, or an employee of a property owner on behalf of an affiliated entity of the property owner, the report must be sworn before an officer authorized by law to administer an oath.(e) All forms for the report of decreased value by any property owner shall make provision for the following information on the back of the form:(1) the name of the person from the appraisal office who reviews the property to verify any change in value;(2) the date the person from the appraisal office views the property subject to the report or, in the case of an oil and gas property, reviews the appraisal of the property; and(3) the determination of any decrease in appraised value and its cause and nature by the person from the appraisal office who views the property to verify any change in value.(f) Appraisal offices failing to establish a form for the report of decreased value as required in this section may be judged to be in compliance upon a showing to the board that a form for the report of decreased value substantially equivalent to that required in this section has been established.",
            "sourceNote": "Source Note: The provisions of this §9.3015 adopted to be effective April 30, 1981, 6 TexReg 1441; amended to be effective October 30, 1981, 6 TexReg 3873; amended to be effective December 22, 1988, 13 TexReg 6094; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481; amended to be effective March 16, 1994, 19 TexReg 1467; amended to be effective February 3, 1998, 23 TexReg 798; amended to be effective January 10, 2000, 25 TexReg 211."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223923&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223923",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3031",
                "label": "Rendition Forms"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148393&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148393",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All appraisal offices and all tax offices appraising property for purposes of ad valorem taxation shall prepare and make available at no charge, printed or electronic forms for the rendering of property. (b) A person rendering property shall use the model form adopted by the Comptroller of Public Accounts or a form containing information which is in substantial compliance with the model form if approved by the comptroller. (c) Nothing in this section shall be construed to prohibit the combination of the information contained on two or more model forms into a single form in order to use a single form to achieve substantial compliance with two or more model forms. (d) The comptroller's model forms applicable to this section may be revised at the discretion of the comptroller. Current forms can be obtained from the Comptroller of Public Accounts' Property Tax Assistance Division. The model rendition forms are: (1) General Real Property Rendition of Taxable Property (Form 50-141); (2) General Personal Property Rendition of Taxable Property (Form 50-142); (3) Rendition of Residential Real Property Inventory (Form 50-143); (4) Business Personal Property Rendition of Taxable Property (Form 50-144);(5) Report of Leased Space for Storage of Personal Property (Form 50-148); (6) Real Property Rendition of Taxable Property (Form 50-149); (7) Oil and Gas Property Rendition of Taxable Property (Form 50-150); (8) Mine and Quarry Rendition of Taxable Property (Form 50-151); (9) Utility Rendition of Taxable Property (Form 50-152); (10) Railroad Rendition of Taxable Property (Form 50-156);  (11) Pipeline and Right-of-Way Rendition of Taxable Property (Form 50-157); (12) Watercraft Rendition of Taxable Property (Form 50-158); and (13) Aircraft Rendition of Taxable Property (50-159).",
            "sourceNote": "Source Note: The provisions of this §9.3031 adopted\r\nto be effective October 30, 1981, 6 TexReg 3878; amended to be effective\r\nJanuary 6, 1984, 8 TexReg 5414; amended to be effective March 1, 1985,\r\n10 TexReg 588; amended to be effective August 22, 1988, 13 TexReg\r\n3876; transferred effective November 26, 1991, as published in the\r\nTexas Register September 18, 1992, 17 TexReg 6481; amended to be effective\r\nFebruary 2, 1998, 23 TexReg 799; amended to be effective January 10,\r\n2000, 25 TexReg 211; amended to be effective December 24, 2003, 28\r\nTexReg 11338; amended to be effective March 10, 2008, 33 TexReg 2033;\r\namended to be effective March 1, 2011, 36 TexReg 1338; amended to\r\nbe effective February 16, 2012, 37 TexReg 710; amended to be effective\r\nFebruary 11, 2025, 50 TexReg 787."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148393&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148393",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3034",
                "label": "Notice of Exemption Application Requirement"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=121696&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "121696",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Notice of explanation to accompany all application forms for exemptions that must be applied for annually.(1) Before February 1 of each year, the chief appraiser shall deliver an appropriate exemption application form to each person who in the preceding year was allowed an exemption that must be applied for annually.(2) The exemptions which require an annual application are set forth in Tax Code, Chapter 11.(b) With each of these exemption applications, a brief explanation containing the following information shall be included:(1) a statement that the exemption claimed in the previous year must be applied for annually;(2) except as provided by subsection (c) of this section, a statement that the applicant must file the application before May 1 of the tax year and must furnish the information required on the application for the application to be valid;(3) a statement that the chief appraiser, for good cause, may extend the deadline once for a period up to 60 days;(4) a statement that, except in limited circumstances set forth in the Tax Code, if the application is not timely filed the exemption must be denied;(5) a statement that the chief appraiser is required to cancel a granted exemption if he discovers any reason that the exemption should not have been granted, and in such an event, the chief appraiser will deliver a written notice to the taxpayer within five days after the date he makes the cancellation.(c) An organization that acquires property that qualifies for an exemption under Tax Code, §11.181(a) or §11.1825 may apply for the exemption for the year of acquisition not later than the 30th day after the date the organization acquires the property in order to claim an exemption for the remaining portion of that tax year.",
            "sourceNote": "Source Note: The provisions of this §9.3034 adopted to be effective January 6, 1982, 6 TexReg 4813; amended to be effective January 6, 1984, 8 TexReg 5415; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481; amended to be effective March 18, 1996, 21 TexReg 1890; amended to be effective September 30, 2010, 35 TexReg 8770."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=121696&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "121696",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3038",
                "label": "Current, Delinquent, and Special Valuation Rollback Tax Bills or Statements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=74296&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "74296",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All offices assessing and collecting taxes for purposes of ad valorem taxation shall prepare and issue current, delinquent, and special valuation rollback tax bills or statements, as applicable and required by the Tax Code.(b) Current tax bills or statements shall be prepared as follows:(1) Current tax bills shall be issued to each person in whose name the property is listed, and to his authorized agent, by October 1, or as soon thereafter as practicable. In the case of mortgaged property where taxes are paid from an escrow account controlled by the mortgagee (mortgage holder), the notice requirements shall be satisfied by sending the tax bill to the mortgagee. Written authorization by the property owner is not required in order to deliver the tax bill to the mortgage company when the mortgage company acknowledges that it has authority for payment of taxes on the property.(2) The items of information to be included on the current tax bill are those set forth in Tax Code, §31.01(c), (c-1), and (d); Tax Code, §33.045; the amount of the penalty authorized by Tax Code, §22.28 and §22.29; and any other information required by interlocal agreement between taxing units and their collectors.(3) Current tax bills prepared for owners of special inventory shall separately itemize the taxes levied against the special inventory pursuant to Tax Code, §§23.122, 23.12, 23.1242, and 23.128.(c) Delinquent tax bills or statements shall be prepared as follows:(1) As outlined in Tax Code, §33.04, delinquent tax bills shall be delivered to each person whose name appears on the current and cumulative delinquent tax rolls.(2) The following items of information shall be included on each delinquent tax bill:(A) the name, address, and telephone number of the collecting office, the name of the taxing unit(s) for which delinquent taxes are due on the specified property for which that office collects, and the name and telephone number of the assessor for the taxing unit(s) if different from the collector;(B) the name and address of the property owner and/or agent;(C) the description of the property;(D) the account number of the property;(E) the year(s) for which the taxes are delinquent;(F) the amount(s) of delinquent taxes, penalties, and interest due, indicating the amount due each taxing unit;(G) the date by which the taxes delinquent should be paid before additional penalties and interest are applied;(H) if applicable, a statement that a protest or request for correction is pending before an appraisal review board or that an appeal to district court or binding arbitration is pending; and(I) if applicable, a statement that a tax deferral or abatement applies to the account.(3) Delinquent tax bills prepared for owners of special inventory shall separately itemize the taxes levied against special inventory pursuant to Tax Code, §§23.122, 23.12, 23.1241, and 23.128, and must include the name and telephone number of the assessor for the taxing unit and, if different, of the collector for the unit.(d) Special valuation rollback tax bills shall be prepared as follows:(1) Special valuation rollback tax bills shall be issued as provided in Tax Code, Chapter 23, specifically §23.46(c) for the rollback taxes under agricultural-use valuation; §23.55(e) for the rollback taxes under open-space agricultural land valuation; §23.76(e) for the rollback taxes under open-space timber land valuation; §23.86(c) for the rollback taxes for recreational, park, and scenic land valuation; and §23.96(c) for the rollback taxes for public access airport property.(2) The following minimum items of information shall be included on the special valuation rollback tax bills:(A) the description of the property subject to the rollback tax;(B) the account number of the property;(C) the year(s) for which the rollback tax is imposed;(D) the amount of taxes which would have been imposed on the property for the year(s) based on the market value of the property;(E) the amount of taxes that were imposed on the property for the year(s) based on the productivity value of the property;(F) the difference of taxes between market and productivity values for the year(s) on the property;(G) the amount of interest imposed on the property for the year(s);(H) the total amount of tax and interest due and the due date;(I) the rates of penalty and interest imposed for delinquent payment of the taxes and interest;(J) a statement indicating that the taxes due are for rollback tax purposes; and(K) the name and telephone number of the assessor for the taxing unit and if different, of the collector for the unit.(e) Offices assessing and collecting taxes for purposes of ad valorem taxation that fail to prepare and issue current, delinquent, and special valuation rollback tax bills as required in this section will be deemed to be in compliance if the bills or statements have substantially the same information as required by this section.(f) At the option of the collecting office, more than one year of delinquent taxes may be included on one delinquent tax bill.",
            "sourceNote": "Source Note: The provisions of this §9.3038 adopted to be effective March 24, 1982, 7 TexReg 1056; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481; amended to be effective March 16, 1994, 19 TexReg 1467; amended to be effective February 3, 1998, 23 TexReg 799; amended to be effective November 9, 2005, 30 TexReg 7228."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=74296&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "74296",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3039",
                "label": "Tax Refund Form"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=121692&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "121692",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All offices collecting taxes for purposes of ad valorem taxation shall prepare and make available forms for use by taxpayers in applying for a tax refund for an overpayment or erroneous payment of taxes, as provided in Texas Property Tax Code, §31.11.(b) The tax refund form shall make provision for the following items of information to be filed by the taxpayer who believes that an overpayment or erroneous payment of taxes has been made:(1) the name and address of the property owner and/or agent;(2) the description of the property and its location;(3) the account number of the property on the tax roll and/or tax receipt of the property;(4) the name of the taxing unit(s) from which the refund is requested;(5) the year for which the refund is requested;(6) the date of the payment of taxes;(7) the amount of taxes paid by the taxpayer;(8) the amount of refund requested by the taxpayer;(9) the reason that the taxpayer believes that the payment was an overpayment or erroneous payment and support documentation;(10) the signature of the applicant;(11) the date of the application for tax refund.(c) The office collecting taxes for purposes of ad valorem taxation shall provide the following items of information on the tax refund form:(1) the name and address of the collecting office and the name of the taxing unit(s) for which that office collects;(2) an indication of the approval or disapproval of the application by a taxpayer for a tax refund;(3) the signature of the authorized officer charged with the authority to approve or disapprove tax refunds and the date of the approval or disapproval;(4) the signature of the tax assessor collector of the taxing unit, if the signature is required by the Tax Code, §31.11, and the date of the approval or disapproval.(d) The application form for tax refund shall contain the following affirmation above the signature of the applicant: \"I hereby apply for the refund of the above described taxes and certify that the information I have given on this form is true and correct.\"(e) The tax refund application shall also contain the following statement: \"If you make a false statement on this application, you could be found guilty of a Class A misdemeanor or a state jail felony under the Texas Penal Code, §37.10.\"(f) Collecting offices failing to prepare a tax refund form as required in subsection (a) of this section may be judged to be in compliance upon a showing to the comptroller that a tax refund form substantially equivalent to that required in subsection (a) of this section has been prepared.",
            "sourceNote": "Source Note: The provisions of this §9.3039 adopted to be effective March 24, 1982, 7 TexReg 1057; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481; amended to be effective February 24, 2000, 25 TexReg 1393."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=121692&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "121692",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3040",
                "label": "Tax Certificates"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148472&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148472",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All offices collecting ad valorem taxes shall prepare and issue tax certificates, upon the request of any person, as provided by Tax Code, §31.08.(b) The tax certificate shall include the following items of information:(1) the name and address of the collecting office and the name of the taxing unit(s) for which that office collects on the specified property;(2) the name and address of the property owner;(3) the description of the property for which the tax certificate is issued;(4) the account number of the property for which the tax certificate is issued;(5) the year for which delinquent taxes, penalties, and interest are due;(6) if the specified property has received or is receiving special valuation based on its use, a statement that additional rollback taxes may become due as provided by Tax Code, Chapter 23;(7) the amount of delinquent taxes, penalties, interest, and any known costs and expenses as provided by Tax Code, §33.48, due for each taxing unit;(8) the date of the tax certificate; and(9) the signature of the authorized officer of the collecting office.(c) The tax certificate shall include an affirmation by the authorized officer of the collecting office that a careful check of the tax records of the office has been made on the specified property and the tax certificate indicates the amount of delinquent taxes. The tax certificate shall also include a statement that property omitted from the appraisal roll as described under Tax Code, §25.21 is not included in the certificate and that a purchaser is absolved of liability for the taxes based on omitted property.(d) A tax certificate form must substantially comply with the requirements of this section.",
            "sourceNote": "Source Note: The provisions of this §9.3040 adopted to be effective March 24, 1982, 7 TexReg 1057; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481; amended to be effective November 9, 2005, 30 TexReg 7229."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148472&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148472",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3042",
                "label": "Request Forms for Separate or Joint Taxation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=163853&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "163853",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Separate taxation of standing timber.(1) All appraisal offices and tax offices appraising property for purposes of ad valorem taxation shall prepare and make available forms for use by taxpayers to request separate taxation of standing timber from the land on which the timber is located, as provided in Tax Code, §25.10(c). The request filed with the appraisal office shall apply to all taxing units in which the specified property is located for which the office appraises.(2) The request form for separate taxation of timber shall make provision for the following items of information:(A) a statement indicating that the request must be filed annually between January 1 and before May 1;(B) the year for which the request is made;(C) the name and address of the property owner filing the request or his agent, if applicable, and an indication whether the person owns an interest in the timber or the land;(D) the name(s) and address(es) of all owners and whether their ownership is in the land or the timber involved;(E) the description of the land which contains the standing timber and its location;(F) a statement of what documents will be required to prove separate ownership of the standing timber and the land;(G) the signature of the property owner or agent; and(H) the date of the request.(3) The request for separate taxation form shall include the following affirmations.(A) \"I hereby affirm that the standing timber is separately owned from the land on which it is located, each being owned by the persons identified in this request.\"(B) \"I hereby request that the standing timber located on the land described in this request be listed on the appraisal records of the appraisal office separately from the land on which the timber is located.\"(C) \"I certify that the information given on this form is true and correct.\"(b) Separate taxation of undivided interests.(1) All appraisal offices and tax offices appraising property for purposes of ad valorem taxation shall prepare and make available forms for use by taxpayers to request separate taxation of an undivided interest as provided in Tax Code, §25.11(b). The request filed with the appraisal office shall apply to all taxing units in which the specified property is located for which the office appraises.(2) The request form for separate taxation of an undivided interest shall make provisions for the following items of information:(A) a statement indicating that the request must be filed between January 1 and before May 1;(B) the name and address of the property owner requesting the separate listing and his agent, if applicable;(C) the name(s) and address(es) of all other owners of the property involved;(D) a description of the property involved;(E) the property owner's proportionate interest in the property;(F) a statement of what documents will be required to prove ownership in the property and the proportion the owner's interest bears to the whole;(G) the signature of the property owner or agent; and(H) the date of the request.(3) The request for separate taxation form shall include the following affirmations.(A) \"I hereby affirm that I own an undivided interest in the herein described property in the proportion stated in this request.\"(B) \"I hereby request that my undivided interest in the specified property be listed on the appraisal records of the appraisal office separately from any remaining undivided interest.\"(C) \"I certify that the information given on this form is true and correct.\"(c) Joint taxation of mineral interests.(1) All appraisal offices and tax offices appraising property for purposes of ad valorem taxation shall prepare and make available forms for use by taxpayers to request joint taxation of separate interests in minerals, other than interests having a taxable value of less than $500, as provided in Tax Code, §25.12(b). The request filed with the appraisal office shall apply to all taxing units in which the specified property is located for which that office appraises.(2) The request form for joint taxation of separate interests in minerals shall make provisions for the following items of information:(A) a statement indicating that the request must be filed between January 1 and before May 1;(B) the name and address of the designated operator requesting the separate listing and his agent, if applicable;(C) an identification of the property involved;(D) the type and amount of interest expressed in decimal form to be listed jointly in the name of the designated operator;(E) if a portion of the nonroyalty mineral interest(s) is not intended to be listed jointly in the name of the designated operator, the name and address of the owner(s) of such interest(s) shall be listed;(F) the signature of the designated operator or his agent;(G) the date of the request; and(H) a statement that a request for joint taxation may not be filed if the taxable value of the interest is less than $500.(3) The request for joint taxation of mineral interests form shall include the affirmations found in subparagraphs (A) and (B) of this paragraph.(A) \"I hereby request that the separate mineral interests in the property described in this form be listed jointly in the manner specified herein.\"(B) \"I certify the information given on this form is true and correct to the best of my knowledge and belief.\"(d) Compliance by appraisal offices. Offices appraising property for purposes of ad valorem taxation that fail to prepare and make available request forms for separate taxation of timber, separate taxation of undivided interests, and joint taxation of mineral interests as required in subsections (a) - (c) of this section may be judged to be in compliance upon a showing to the comptroller that such forms substantially equivalent to those required in subsections (a) - (c) of this section have been prepared and made available.(e) The comptroller may provide model forms applicable to this section. Such forms may be revised at the discretion of the comptroller. Current forms can be obtained from the Comptroller of Public Accounts' Property Tax Assistance Division.",
            "sourceNote": "Source Note: The provisions of this §9.3042 adopted to be effective May 11, 1982, 7 TexReg 1697; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481; amended to be effective February 3, 1998, 23 TexReg 799; amended to be effective October 3, 2010, 35 TexReg 8974."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=163853&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "163853",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3044",
                "label": "Appointment of Agents for Property Tax Matters"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148473&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148473",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as otherwise provided by existing court order, law, or other comptroller rule, a property owner shall use comptroller form 50-162 to designate an agent for property tax matters pursuant to Tax Code, §1.111(a). Except as provided in subsection (b) of this section, forms required to be used by this section shall be used as adopted by the comptroller, without changes in form or substance including, but not limited to, content, font size, and pagination. For the purposes of this section, the term \"property owner\" includes a person who claims a legal interest in the property.(b) All appraisal districts shall prepare and make available copies of comptroller form 50-162 for property owners to use in designating agents for property tax matters. An appraisal district may pre-print the appraisal district's name and address in the spaces designated for such information on form 50-162; however, no other changes or modifications may be made. An appraisal district may, if approved in advance in writing by the comptroller, make non-substantive modifications to form 50-162 for purposes of facilitating electronic delivery.(c) Designation of an agent to receive notices or other communications is not effective for any notice or other communication about a property that is mailed or sent by electronic means before the property owner's written notice is filed with the appraisal district in accordance with Tax Code, §1.111(f). A written statement filed pursuant to Tax Code, §1.111(j) is not effective for any notice or other communication about a property that is mailed or sent by electronic means before the written statement is filed with the protest in accordance with Tax Code, §1.111(j). No written designation or request for delivery of tax bills pursuant to Tax Code, §1.111(f) is required for a mortgage lender who is authorized by a deed of trust executed by the property owner to pay taxes on the property.(d) For the purposes of the prohibition against designating more than one agent for a single item of property in Tax Code, §1.111(d), an item of property means the property included under a single appraisal district account number. Unless the appraisal district has separately listed an improvement or the property owner presents documentation to the appraisal district showing separate ownership of land and improvements, a property owner may not designate separate agents to represent land and improvements. A property owner may, however, designate a different agent for purposes of Tax Code, Chapter 41A, or any other matter as provided by law or other comptroller rule.(e) If a property owner directs delivery of tax bills or notices to an agent after the date appraisal records are certified, the chief appraiser, as soon as practicable after the designation is filed, shall notify the affected taxing unit of the property owner's name, the account number of the property, and the name and address of the agent designated for notice.(f) A property owner is not required to file a written designation of agent for a person who:(1) acts as a courier for the property owner;(2) prepares documents in a clerical capacity for the property owner;(3) is an employee of the owner or of a corporate parent, affiliate, or subsidiary of the owner and is authorized by the owner to represent him; or(4) is an attorney licensed to practice law in the State of Texas and retained by a property owner to represent him before the appraisal district or appraisal review board.(g) A person who owns property in more than one county may file a reproduction of the original signed appointment form with each appraisal district. If the chief appraiser has reason to question the authenticity of the document, the chief appraiser may require the property owner or the agent to provide the original for inspection.(h) Forms adopted by reference. The Comptroller of Public Accounts adopts by reference Appointment of Agent for Property Tax Matters (Form 50-162) and, for purposes of use as required by court order existing as of the date of amendment of this section, Appointment of Agent for Single-Family Residential Property Tax Matters (Form 50-241). Copies of the forms can be obtained from the Comptroller of Public Accounts, Property Tax Assistance Division, P.O. Box 13528, Austin, Texas 78711-3528.(i) Other forms. The comptroller may also prescribe additional forms applicable to this section. Any such forms may be revised at the discretion of the comptroller. Copies of the forms can be obtained from the Comptroller of Public Accounts, Property Tax Assistance Division, P.O. Box 13528, Austin, Texas 78711-3528.(j) Designations signed and filed with an appraisal district prior to the effective date of amendment of this section, until revoked as provided by law, continue in effect to the extent that such designations are consistent with existing law or, as applicable, court order.",
            "sourceNote": "Source Note: The provisions of this §9.3044 adopted to be effective May 18, 1988, 13 TexReg 2165; amended to be effective February 3, 1989, 14 TexReg 454; amended to be effective January 29, 1990, 15 TexReg 263; amended to be effective June 22, 1990, 15 TexReg 3350; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481; amended to be effective March 24, 1994, 19 TexReg 1831; amended to be effective October 31, 2006, 31 TexReg 8844; amended to be effective February 24, 2008, 33 TexReg 1603; amended to be effective January 3, 2010, 34 TexReg 9473; amended to be effective October 3, 2013,38 TexReg 6602."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148473&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148473",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3045",
                "label": "Application for September 1 Inventory Appraisal"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148474&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148474",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All appraisal districts shall prepare and make available forms for taxpayers to use in requesting September 1 inventory appraisal pursuant to Tax Code, §23.12(f).(b) An appraisal district may, in lieu of creating a form, use a comptroller-prescribed, model form.(c) The comptroller may provide model forms applicable to this section. Such forms may be revised at the discretion of the comptroller. Current forms can be obtained from the Comptroller of Public Accounts' Property Tax Assistance Division.",
            "sourceNote": "Source Note: The provisions of this §9.3045 adopted to be effective June 22, 1990, 15 TexReg 3350; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481; amended to be effective October 3, 2010, 35 TexReg 8975."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148474&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148474",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3048",
                "label": "Publication of Budget"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148466&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148466",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In publishing the notice summarizing the appraisal district budget under the Tax Code, §6.062, the chief appraiser shall include the following:(1) the time, date, and place of the public hearing on the proposed budget;(2) the total amount of the proposed budget;(3) the amount of increase proposed from the budget adopted for the current year;(4) the number of employees compensated under the current budget and the number of employees to be compensated under the proposed budget, provided that the number of employees shall be expressed as the number of full-time equivalent employees;(5) the name, address, and telephone number of the appraisal district; and(6) at the chief appraiser's option, a statement explaining any significant differences between the current and the proposed appraisal district budget.(b) The chief appraiser may use the comptroller-prescribed, model form applicable to this section or use a different form that sets out the information listed in subsection (a) of this section in the same language and sequence as the model form.(c) In special circumstances the chief appraiser may use a form that provides additional information, deletes information required by this section, or sets out the required information in different language or sequence than that required by this section if the form has been previously approved by the comptroller.(d) The comptroller's model form applicable to this section may be revised at the discretion of the comptroller. Current forms can be obtained from the Comptroller of Public Accounts' Property Tax Assistance Division.",
            "sourceNote": "Source Note: The provisions of this §9.3048 adopted to be effective January 29, 1990, 15 TexReg 264; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481; amended to be effective October 3, 2010, 35 TexReg 8975."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148466&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148466",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3049",
                "label": "Change of Use Determination"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=157423&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "157423",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The chief appraiser shall include the following information in a notice of a change of use determination required under Tax Code, §§23.46, 23.55, 23.76, or 23.9807:(1) the name, street address, mailing address (if different), and telephone number of the appraisal district office;(2) the property owner's name and a description of the affected property;(3) a statement specifying the determination that has been made by the chief appraiser and identifying the statutory provision(s) under which such determination has been made;(4) the year the property will begin to be taxed at its market value;(5) a statement that the taxpayer may protest the decision to the appraisal review board;(6) a statement that the deadline for filing a written protest is not later than 30 days after the date of the notice;(7) a statement that if the property owner does not protest or the protest is denied, additional taxes and interest will be billed and subject to penalties and additional interest and a statement that a tax lien has already attached to the property to secure payment of the additional taxes, interest, and penalties;(8) the number of years for which the additional taxes are being imposed; and(9) a statement that the taxpayer may contact each taxing unit's tax assessor to determine the amount of additional taxes, interest, and penalties.(b) The chief appraiser may use the comptroller-prescribed, model form applicable to this section or use a different form that sets out the information listed in subsection (a) of this section in the same language and sequence as the model form.(c) In special circumstances the chief appraiser may use a form that provides additional information, deletes information required by this section, or sets out the required information in different language or sequence than that required by this section if the form has been previously approved by the comptroller.(d) The comptroller's model form applicable to this section may be revised at the discretion of the comptroller. Current forms can be obtained from the Comptroller of Public Accounts' Property Tax Assistance Division.",
            "sourceNote": "Source Note: The provisions of this §9.3049 adopted to be effective January 29, 1990, 15 TexReg 264; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481; amended to be effective October 5, 2010, 35 TexReg 8975."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=157423&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "157423",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3052",
                "label": "Request Form for Separate Taxation of Stockholders' Interest in Cooperative Housing"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148467&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148467",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All appraisal offices shall prepare and make available a form for use by a cooperative housing cooperation in requesting separate taxation of stockholders' interests as provided in Texas Property Tax Code, §23.19.(b) The form shall contain spaces for the corporation to provide the following information:(1) the name and address of the cooperative housing corporation;(2) the property description and street address of the property for which separate appraisal is requested;(3) the name and address of the corporation's agent;(4) a statement that the corporation must attach to the form the following documents:(A) a list of names, addresses, and proportionate share of all stockholders in the corporation, and those stockholders that reside at the designated property;(B) a resolution from the corporation's board of directors certifying that the stockholders have approved the request for separate appraisal;(C) a diagrammatic floor plan of the improvements on the property; and(D) a survey plot map of the land showing location of the improvements on the land;(5) the signature of the corporation's agent; and(6) the date of the request.(c) The form for separate appraisal shall contain a statement indicating that by signing the form the applicant states that he/she is qualified to sign for the corporation, and must include the following statement in bold type: \"If you make a false statement on this form, you could be found guilty of a Class A misdemeanor or a state jail felony under Penal Code, §37.10.\"(d) The form shall contain statements to indicate:(1) that the corporation need not request separate appraisal annually;(2) that the applicant must file the initial request for separate appraisal in writing before March 1; and(3) that the chief appraiser may require the corporation to submit or verify a list of stockholders, their interests, and residency at least annually.(e) Where the appraisal office requests additional information, the appraisal office shall note the type(s) of information requested on the form. Otherwise, the form shall be prepared as a separate form from any other form.(f) The appraisal office shall note on the form the amount of fee, if any, that the office will charge for separately appraising the interests in a cooperative housing corporation.",
            "sourceNote": "Source Note: The provisions of this §9.3052 adopted to be effective December 3, 1987, 12 TexReg 4368; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481; amended to be effective July 15, 2012, 37 TexReg 5135."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148467&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148467",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3054",
                "label": "Request to Postpone Tax Bill"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=145140&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "145140",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Each collecting office shall prepare and make available to the public forms for requesting the tax office to postpone issuing a tax bill until the amount of unpaid tax reaches $15. The form shall require the taxpayer to provide the following:(1) the property owner's name, current mailing address, and telephone number;(2) a description of the property, the property account number, or a copy of tax or appraisal office correspondence that identifies the property; and(3) the title or capacity of the person who signs the form.(b) The collector shall include on the form:(1) instructions that state that if the property owner files the form, no penalty or interest will accrue on taxes until the total amount of tax owed to all units for which the collector collects taxes reaches $15 or more; and(2) the name, street address, mailing address if different, and telephone number of the collector's office.(c) The collector may use the comptroller-prescribed, model form applicable to this section or use a different form that requires the information and sets out the instructions required by this section in the same language and sequence as the model form.(d) In special circumstances the collector may use a form that provides additional information, deletes information required by this section, or sets out the required information in different language or sequence than that required by this section if the form has been previously approved by the comptroller.(e) The comptroller's model form applicable to this section may be revised at the discretion of the comptroller. Current forms can be obtained from the Comptroller of Public Accounts' Property Tax Assistance Division.",
            "sourceNote": "Source Note: The provisions of this §9.3054 adopted to be effective January 29, 1990, 15 TexReg 265; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481; amended to be effective October 5, 2010, 35 TexReg 8976."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=145140&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "145140",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3059",
                "label": "Certification of Appraisal Roll"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=153798&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "153798",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The chief appraiser shall certify a copy of the annual appraisal roll for the appraisal district to the Comptroller of Public Accounts. The appraisal roll shall be submitted to the comptroller by the deadlines and in the form and manner provided in the Electronic Appraisal Roll Submission Record Layout and Instructions Manual published by the comptroller.(b) If requested in writing to the director of the comptroller's property tax assistance division by the chief appraiser at least 30 days before the applicable deadline for submission of an appraisal roll, the deadlines may be waived, but only if the appraisal district can show good cause for late submission.(c) The director of the comptroller's property tax assistance division shall deliver a written determination of the request for waiver provided in subsection (b) of this section, by e-mail, facsimile transmission or regular first-class mail. An appraisal district may appeal the denial of a waiver to the comptroller. The comptroller shall decide each appeal by written order and shall deliver a copy of the order to the chief appraiser by e-mail, facsimile transmission or regular first class mail.(d) The Comptroller of Public Accounts will periodically revise the Electronic Appraisal Roll Submission Record Layout and Instructions Manual. Copies of this publication can be obtained from the Comptroller of Public Accounts, Property Tax Assistance Division, P.O. Box 13528, Austin, Texas 78711-3528. Copies may also be requested by calling the toll-free number 1-800-252-9121. In Austin, call (512) 305-9999. E-mail requests may be directed to ptad.ears@cpa.state.tx.us.",
            "sourceNote": "Source Note: The provisions of this §9.3059 adopted to be effective September 5, 2005, 30 TexReg 5375; amended to be effective April 11, 2010, 35 TexReg 2857."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=153798&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "153798",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3060",
                "label": "Installment Payment of Taxes on Property Located Within a Disaster Area"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209749&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "209749",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Any notice under Tax Code, §31.032(b) shall be in writing.(b) The limit on gross receipts under Tax Code, §31.032(a)(1)(A)(ii) as provided by Tax Code, §31.032(h) will be published on the comptroller's website.",
            "sourceNote": "Source Note: The provisions of this §9.3060 adopted to be effective March 18, 1996, 21 TexReg 1890; amended to be effective December 4, 2011, 36 TexReg 8040."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209749&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "209749",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3061",
                "label": "Installment Payments of Taxes on Property Not Directly Damaged in a Disaster or Emergency Area"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148471&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148471",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In this section, \"disaster\", \"disaster area\", \"emergency\", and \"emergency area\" have the meanings assigned by Tax Code, §31.032(g).(b) This section only applies to:(1) Real property that is owned or leased by a business entity that is located in a disaster or emergency area, has not been damaged as a direct result of the disaster or emergency, and that had gross receipts in the entity's most recent federal income tax year or state franchise tax annual period that were not more than the amount calculated as provided by Tax Code, §31.032(h);(2) tangible personal property that is owned or leased by a business entity described in paragraph (1) of this subsection; and(3) taxes imposed by the taxing unit before the first anniversary of the disaster or emergency.(c) For a taxing unit that has adopted an installment-payment plan under Tax Code, §31.033, Tax Code, §31.032(b), (b-1), (c), and (d) apply to the payment by a person of that taxing unit's taxes imposed on property that the person owns.",
            "sourceNote": "Source Note: The provisions of this §9.3061 adopted to be effective August 4, 2022, 47 TexReg 4557."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148471&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148471",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "H",
                "label": "TAX RECORD REQUIREMENTS"
            },
            "rule": {
                "number": "§9.3064",
                "label": "Public Notice of Protest and Appeal Forms"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=222399&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "222399",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The comptroller will make available to appraisal districts a model form of the notice required by Tax Code, §41.70. A chief appraiser may use the comptroller's model form in complying with Tax Code, §41.70. The comptroller's model form will include, at a minimum:(1) general identification of grounds on which a property owner may protest under Tax Code, Chapter 41;(2) a description of the appraisal district's informal review process, if any;(3) a description of the appraisal review board and the process of appeal to the appraisal review board;(4) a description of the appraisal review board hearing process;(5) information regarding deadlines for filing protests with the appraisal review board;(6) information regarding methods of appealing an appraisal review board order;(7) information regarding the payment of taxes pending an appeal of an appraisal review board order;(8) identification of the appraisal district's contact information; and(9) a statement that additional information can be obtained from the comptroller's office.(b) The chief appraiser may duplicate the comptroller's model form or use a different form that sets out the information listed in the model form in the same language and sequence as the model form. Without prior approval from the comptroller, the appraisal district may:(1) add additional language that more fully describes its protest procedures;(2) substitute the actual dates on which deadlines for the year fall for the deadlines set out in the model form;(3) add the deadline for filing a protest concerning property omitted from the appraisal roll; and(4) modify the form as necessary to correctly set out its name, address, and telephone number.(c) In special circumstances, if approved by the comptroller in writing prior to publication, the chief appraiser may use a form that provides additional information other than that contained in the model form, deletes information required by the model form, or sets out the required information in different language or sequence than that required by the model form.(d) The headline of the published notice shall be in 18-point type or larger. Body copy for the notice shall be in 10-point type or larger.(e) The comptroller's model form applicable to this section may be revised at the discretion of the comptroller. Current forms can be obtained from the Comptroller of Public Accounts' Property Tax Assistance Division.",
            "sourceNote": "Source Note: The provisions of this §9.3064 adopted to be effective February 3, 1998, 23 TexReg 800; amended to be effective October 6, 2010, 35 TexReg 8976."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=222399&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "222399",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "I",
                "label": "VALUATION PROCEDURES"
            },
            "rule": {
                "number": "§9.4001",
                "label": "Valuation of Open-Space and Agricultural Lands"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19847&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19847",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Adoption of the \"Manual for the Appraisal of Agricultural Land.\" This manual specifies the methods to apply and the procedures to use in qualifying and appraising land used for agriculture and open-space land under Tax Code, Chapter 23, Subchapters C and D. Appraisal districts are required to use this manual in qualifying and appraising open-space land. The Comptroller of Public Accounts adopts by reference the Manual for the Appraisal of Agricultural Land dated October 2024. The manual is accessible on the Property Tax Assistance Division website. Copies of the manual can be obtained from the Comptroller of Public Accounts, Property Tax Assistance Division, P.O. Box 13528, Austin, Texas 78711-3528. Copies also may be requested by calling our toll-free number 1-800-252-9121. In Austin, call (512) 305-9999.",
            "sourceNote": "Source Note: The provisions of this §9.4001 adopted to be effective April 30, 1980, 5 TexReg 1491; amended to be effective February 10, 1982, 7 TexReg 359; amended to be effective March 27, 1982, 7 TexReg 1059; amended to be effective April 26, 1983, 8 TexReg 1218; amended to be effective January 21, 1986, 11 TexReg 93; amended to be effective April 19, 1988, 13 TexReg 1611; amended to be effective February 21, 1990, 15 TexReg 658; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481; amended to be effective August 15, 2017, 42 TexReg 3981; amended to be effective May 22, 2019, 44 TexReg2463; amended to be effective November 4, 2020, 45 TexReg 7715; amended to be effective October 31, 2022, 47 TexReg 7286; amended to be effective December 2, 2024, 49 TexReg 9766."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19847&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19847",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "I",
                "label": "VALUATION PROCEDURES"
            },
            "rule": {
                "number": "§9.4005",
                "label": "Formulas for Interstate Allocation of the Tax Value of Railroad Rolling Stock"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=211883&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "211883",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The value of railroad stock will be allocated to this state in the proportion of the total market value of the rolling stock that fairly reflects its uses in this state during the preceding tax year by ascertaining the average number of cars found to be habitually within the borders of the state or the average amount of the property habitually used or employed in the state; or, when such method will produce a more just, fair, equitable, and lawful result, by ascertaining the proportion of the total distance in miles of main line track, branch line tract, and side, yard, and spur track located in the state which the railroad company operates in comparison with the total distance in miles of such tract which the railroad company operates.",
            "sourceNote": "Source Note: The provisions of this §9.4005 adopted to be effective May 26, 1980, 5 TexReg 1852; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=211883&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "211883",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "I",
                "label": "VALUATION PROCEDURES"
            },
            "rule": {
                "number": "§9.4009",
                "label": "Appraisal of Recreational, Park, and Scenic Land"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=211884&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "211884",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Adoption of the \"Guidelines for the Appraisal of Recreational, Park, and Scenic Land.\" These guidelines specify the methods to apply and the procedures to use in appraising land that qualifies for special appraisal as recreational, park, and scenic land. Appraisal districts are required to follow the procedures and methods set out in these guidelines. The Comptroller of Public Accounts adopts by reference the Guidelines for the Appraisal of Recreational, Park, and Scenic Land dated June 2022. The guidelines are accessible on our website. Copies of the guidelines can be obtained from the Comptroller of Public Accounts, Property Tax Assistance Division, P.O. Box 13528, Austin, Texas 78711-3528. Copies also may be requested by calling our toll-free number 1-800-252-9121. In Austin, call (512) 305-9999.",
            "sourceNote": "Source Note: The provisions of this §9.4009 adopted to be effective August 2, 1982, 7 TexReg 2709; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481; amended to be effective August 28, 2016, 41 TexReg 6215; amended to be effective January 2, 2023, 47 TexReg 9034."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=211884&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "211884",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "I",
                "label": "VALUATION PROCEDURES"
            },
            "rule": {
                "number": "§9.4010",
                "label": "Appraisal of Public Access Airport Property"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=222400&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "222400",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Adoption of the \"Guidelines for the Valuation of Public Access Airport Property.\" These guidelines specify the methods to apply and the procedures to use in appraising property that qualifies for special appraisal as public access airport property. Appraisal districts are required to follow the procedures and methods set out in these guidelines. The Comptroller of Public Accounts adopts by reference the Guidelines for the Valuation of Public Access Airport Property dated June 2022. The guidelines are accessible on our website. Copies of the guidelines can be obtained from the Comptroller of Public Accounts, Property Tax Assistance Division, P.O. Box 13528, Austin, Texas 78711-3528. Copies also may be requested by calling our toll-free number 1-800-252-9121. In Austin, call (512) 305-9999.",
            "sourceNote": "Source Note: The provisions of this §9.4010 adopted to be effective January 4, 1983, 7 TexReg 4463; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481; amended to be effective August 28, 2016, 41 TexReg 6216; amended to be effective January 2, 2023, 47 TexReg 9035."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=222400&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "222400",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "I",
                "label": "VALUATION PROCEDURES"
            },
            "rule": {
                "number": "§9.4011",
                "label": "Appraisal of Timberlands"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19871&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19871",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Adoption of the Manual for the Appraisal of Timberland. This manual sets out both the eligibility requirements for timberland to qualify for productivity appraisal and the methodology for appraising qualified timberland and restricted use timberland. Appraisal districts are required by law to follow the procedures and methodology set out in this manual. The Comptroller of Public Accounts adopts by reference the Manual for the Appraisal of Timberland dated October 2024. Copies of this manual can be obtained from the Comptroller of Public Accounts, Property Tax Assistance Division, P.O. Box 13528, Austin, Texas 78711-3528 or from the Property Tax Assistance Division website. Copies may also be requested by calling our toll-free number 1-800-252-9121. In Austin, call (512) 305-9999. From a Telecommunications Device for the Deaf (TDD), call 1-800-248-4099, toll free. In Austin, the local TDD number is (512) 463-4621. This manual and those that have been superseded are available from the Comptroller's office as well as the State Archives.",
            "sourceNote": "Source Note: The provisions of this §9.4011 adopted to be effective May 9, 1983, 8 TexReg 1410; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481; amended to be effective August 6, 1996, 21 TexReg 7046; amended to be effective May 3, 2004, 29 TexReg 4229; amended to be effective October 27, 2020, 45 TexReg 7608; amended to be effective October 31, 2022, 47 TexReg 7287; amended to be effective December 2, 2024, 49 TexReg 9767."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19871&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19871",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "I",
                "label": "VALUATION PROCEDURES"
            },
            "rule": {
                "number": "§9.4013",
                "label": "Residential Real Property Inventory Appraisal"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208075&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208075",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A residential real property inventory is one or more platted lots or tracts, and improvements, if any, meeting the following criteria:(1) they are under the same ownership;(2) they are contiguous to one another or are located in the same subdivision of development;(3) they are held for sale in the ordinary course of business;(4) they are subject to zoning restrictions limiting them to residential use, or, if not subject to zoning, they are:(A) subject to enforceable deed restrictions limiting them to residential use; or(B) their highest and best use is as residential property;(5) they have never been occupied for residential purpose; and(6) they are not presently leased or producing income.(b) A residential real property inventory shall be appraised as a unit at the price for which it would transfer to another person continuing the business, using generally accepted techniques for the appraisal of subdivisions and similar properties.",
            "sourceNote": "Source Note: The provisions of this §9.4013 adopted to be effective August 22, 1988, 13 TexReg 3877; transferred effective November 26, 1991, as published in the Texas Register September 18, 1992, 17 TexReg 6481."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208075&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208075",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "I",
                "label": "VALUATION PROCEDURES"
            },
            "rule": {
                "number": "§9.4031",
                "label": "Manual for Discounting Oil and Gas Income"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148582&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148582",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Adoption of the \"Manual for Discounting Oil and Gas Income.\" This manual specifies the methods and procedures to calculate the present value of oil and gas properties using discounted future income under Tax Code, Chapter 23.175, and directs each appraisal district to use the specified methods and procedures. The Comptroller of Public Accounts adopts by reference the Manual for Discounting Oil and Gas Income dated June 2021. The manual is accessible on the Property Tax Assistance Division website. Copies of the manual can be obtained from the Comptroller of Public Accounts, Property Tax Assistance Division, P.O. Box 13528, Austin, Texas 78711-3528. Copies also may be requested by calling our toll-free number 1-800-252-9121. In Austin, call (512) 305-9999.",
            "sourceNote": "Source Note: The provisions of this §9.4031 adopted to be effective March 10, 2022, 47 TexReg 1105."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148582&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148582",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "I",
                "label": "VALUATION PROCEDURES"
            },
            "rule": {
                "number": "§9.4033",
                "label": "Allocation of Value"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=156366&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "156366",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Commercial instrument or commercial equipment--Tangible personal property used for a business purpose, which includes, but is not limited to, commercial and business aircraft, rolling stock not owned or leased by a railroad, motor vehicle, shipping containers, vessels and watercraft (except for special purpose vessels and watercraft used as an instrumentality of commerce as defined in Tax Code, §21.031), mobile construction or drilling equipment, and mobile equipment of any other sort. The term does not include goods, wares, ores, or merchandise held for sale or resale, stored, warehoused, or in the process of assembly, manufacture, or refinement on January 1.(2) Jurisdiction to tax--The legal power to levy a property tax on a property, regardless of whether the power to tax is exercised.(3) Situs jurisdiction--A taxing unit, state, or nation that has jurisdiction to tax a property because of the property's location or use, or because of the owner's domicile or principal place of business.(4) Used continually--Used several times on regular routes or for several tasks in close succession throughout the year.(b) A property owner may apply for the allocation of total market value of a vessel, special-purpose vessel, or other watercraft.(1) The allocation of taxable value of vessels and other watercraft used outside this state shall be determined according to the provisions of Tax Code, §21.021 and §21.031.(2) To receive an allocation of value for vessels and other watercraft, a property owner must apply for the allocation on the comptroller-prescribed, model form Application for Interstate Allocation of Vessels or Other Watercraft or a form containing information which is in substantial compliance with the model form if approved by the comptroller. A person filing an allocation application form must include all information required by the form. The application must be filed with the chief appraiser for the district in which the property is taxable and must be filed prior to the approval of appraisal records by the appraisal board.(3) If the chief appraiser determines that he needs information in addition to that furnished on the application, he may request additional information by written notice delivered to the property owner. A taxpayer shall furnish any additional information required within 15 days after the date the notice is mailed.(c) The guidelines for determination of jurisdiction to tax are as follows.(1) The chief appraiser shall determine whether property is within the taxing jurisdiction of another state or nation from the evidence supplied by the property owner. The burden of proof in establishing such jurisdiction is upon the property owner.(2) The State of Texas has jurisdiction to tax property if:(A) it is physically present within the State of Texas on January 1 for more than a temporary period;(B) it has been used continually in Texas during the 12 months preceding January 1, regardless of its location on January 1; or(C) its owner resides or does business in Texas and the property is outside Texas for a temporary period on January 1.(3) Property is within the jurisdiction to tax of another state or nation if:(A) it is physically present within that state or nation's boundaries on the state or nation's property tax lien date for more than a temporary period;(B) it has been used continually in the state or nation during the 12 months preceding January 1, regardless of its location on January 1;(C) its owner resides or does business in that state or nation and the property is outside that state or nation for temporary period on January 1; or(D) the state or nation has in fact assessed a property tax against the property.(4) Property is neither physically present nor used in a jurisdiction when it flies over the jurisdiction without landing.(5) Property that leaves the boundaries of this state, and returns without being exposed to the taxing jurisdiction of another state or nation, remains within this state's taxing jurisdiction for the duration of the trip.(6) Property is not within the jurisdiction to tax of this state or any other state of the United States if:(A) it is an instrumentality of commerce;(B) it is owned by a foreign domiciliary;(C) it is taxed in the nation where its owner is domiciled;(D) it is used exclusively in foreign commerce; and(E) it is not present in this state for more than a temporary period on January 1.(7) The chief appraiser may consider the following evidence in determining where a property has taxable situs:(A) published schedules, if the property carries passengers and/or cargo on regular routes at regular times;(B) records kept in the normal course of business, such as mileage, flight, or vessel logs, that indicate where the property has traveled, how long it was located at each destination, and the purpose of its location at each destination;(C) reports filed with state or national agencies that indicate where the property has traveled, how long it was located at destination, and the purpose of its location at each destination; and(D) actual tax bills or notices of appraisal or assessment from other jurisdictions.(d) The chief appraiser shall allocate the market value of that property used in interstate or foreign commerce that qualifies for allocation under this subsection.(1) Property qualifies for allocation if it:(A) constitutes a commercial instrument or commercial equipment;(B) is used for a business purpose;(C) has taxable situs in a taxing unit within the appraisal district as provided by Tax Code, §21.02 or §21.021; and(D) is used continually outside Texas in interstate or foreign commerce, whether regularly or irregularly.(2) A commercial instrument or item of business equipment is present in the state for more than a temporary period if:(A) its owner maintains one or more places of business in this state and the property is present in this state on January 1 or at any time during the 12 months preceding January 1; and(B) the property has contact with this state of a character that would permit this state to tax it under applicable federal law.(e) A property owner who is entitled to an allocation of property must file a rendition form that provides enough information necessary to prove the entitlement to allocation and permit the chief appraiser to apply an allocation formula appropriate to the subject property. An appraisal district shall use the comptroller-prescribed, model form Rendition of Property Qualified for Allocation of Value or a form containing information which is in substantial compliance with the model form if approved by the comptroller. Each form shall require the property owner to identify the property that is the subject of the rendition and provide information measuring the use of the property within Texas and within other states or nations. The form must permit the property owner to state an opinion of the total market value of the property and the amount of value that should be allocated to each taxing unit in which the property has situs.(f) If the chief appraiser determines that the property was within the taxing jurisdiction of this state and within the taxing jurisdiction of another state or nation for the same calendar year, he shall allocate to each taxing unit in which the property has situs the portion of the property's market value that fairly reflects its use in this state. If an allocation formula specified in this subsection does not fairly reflect the use of the property in this state and other situs jurisdictions, the chief appraiser may use another formula that more adequately reflects use. Such alternate formulas may include revenue-ton miles, equipment load factors, or other measures of property use.(1) For commercial aircraft property, as defined by Tax Code, §21.055, the chief appraiser shall use the following allocation formula: the fair market value of the aircraft multiplied by a fraction, the numerator of which is the product of 1.5 and the number of revenue departures by the aircraft from Texas during the preceding tax year and the denominator of which is the greater of:(A) the number of hours in a year (8,760); or(B) the numerator.(2) For vessels, the chief appraiser will normally use an allocation formula based on port days. The ratio of the days the vessel spends in port in Texas to total days spent in port in all situs jurisdictions is the allocation ratio.(3) For motor vehicles and rolling stock, not including vessels or aircraft, the chief appraiser will normally use an allocation formula based on mileage. The ratio of total miles traveled in Texas during the year to the total miles traveled in all situs jurisdictions during the year is the allocation ratio.(4) For business aircraft property as defined by Tax Code, §21.055, the chief appraiser shall use the following allocation formula: the fair market value of the aircraft multiplied by a fraction, the numerator of which is the number departures by the aircraft from a location in Texas during the preceding tax year and the denominator of which is the number departures by the aircraft from all locations during the preceding tax year.(5) For other equipment, the chief appraiser will normally use an allocation formula based on time. The ratio of time spent in Texas during the year to the total time spent in all situs jurisdictions during the year is the allocation ratio.(g) If the appraisal office allocates the value of property in a given year:(1) the chief appraiser shall note on the property's appraisal record for the year:(A) that the allocation has been granted;(B) the market value of the property;(C) the allocation formula factor; and(D) the appraised value of the property after allocation.(2) the chief appraiser shall retain a record of the allocation for three years after it is granted, including:(A) the rendition form requesting allocation;(B) supporting documents filed by the property owner; and(C) the formula chosen and calculations used in making the allocations.(h) The comptroller's forms applicable to this section may be revised at the discretion of the comptroller. Current forms can be obtained from the Comptroller of Public Accounts' Property Tax Assistance Division.",
            "sourceNote": "Source Note: The provisions of this §9.4033 adopted to be effective December 13, 1996, 21 TexReg 11816; amended to be effective February 3, 1998, 23 TexReg 800; amended to be effective March 14, 2004, 29 TexReg 2371; amended to be effective October 10, 2010, 35 TexReg 9107."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=156366&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "156366",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "I",
                "label": "VALUATION PROCEDURES"
            },
            "rule": {
                "number": "§9.4035",
                "label": "Special Types of Personal Property Inventory"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=222328&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "222328",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as provided in this section, a property owner subject to Tax Code, §§23.121, 23.122, 23.124, 23.1241, 23.1242, 23.125, 23.127, and 23.128 shall use the comptroller's model forms to file declarations and statements pursuant to Tax Code, §§23.121, 23.122, 23.124, 23.1241, 23.1242, 23.125, 23.127, and 23.128.(b) If not otherwise prohibited by law, with prior, written approval by the comptroller, a property owner may use customized forms to file declarations applicable to this section that set forth the information in the same language and sequence as the comptroller's model forms.(c) A chief appraiser shall make available to a property owner the comptroller's model forms to file declarations applicable to this section. If not otherwise prohibited by law, with prior, written approval by the comptroller, a chief appraiser may make available different forms to file declarations applicable to this section that set forth the information in the same language and sequence as the comptroller's model forms.(d) If not otherwise prohibited by law and with prior, written approval by the comptroller, in special circumstances, the chief appraiser may use declaration forms that provide additional information, delete information required by this section, or set out the required information in different language or sequence than that required by this section.(e) Notwithstanding subsections (b) - (d) of this section, as provided by Tax Code, §§23.122, 23.1242, 23.125, and 23.128, only the comptroller's model forms may be used to comply with Tax Code, §§23.122, 23.1242, 23.125, and 23.128.(f) Forms adopted by reference. The Comptroller of Public Accounts adopts by reference the Retail Manufactured Housing Inventory Declaration form (Form 50-267), the Retail Manufactured Housing Inventory Tax Statement form (Form 50-268), the Dealer's Heavy Equipment Inventory Declaration form (Form 50-265), and the Dealer's Heavy Equipment Inventory Tax Statement form (Form 50-266). Copies of these forms can be obtained from the Comptroller of Public Accounts, Property Tax Assistance Division, P.O. Box 13528, Austin, Texas 78711-3528.(g) Other Forms. The following comptroller-prescribed, model forms are not adopted by reference herein and may be revised at the discretion of the comptroller. The comptroller may also prescribe additional forms applicable to this section. Such forms are also not adopted by reference herein and may be revised at the discretion of the comptroller. Current forms can be obtained from the Comptroller of Public Accounts' Property Tax Assistance Division.(1) Dealer's Motor Vehicle Inventory Declaration (Form 50-244);(2) Dealer's Motor Vehicle Inventory Tax Statement (Form 50-246);(3) Dealer's Vessel and Outboard Motor Inventory Declaration (Form 50-259); and(4) Dealer's Vessel and Outboard Motor Inventory Tax Statement (Form 50-260).",
            "sourceNote": "Source Note: The provisions of this §9.4035 adopted to be effective December 1, 1997, 22 TexReg 11397; amended to be effective January 10, 2000, 25 TexReg 212; amended to be effective September 19, 2010, 35 TexReg 8381; amended to be effective May 8, 2012, 37 TexReg 3417."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=222328&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "222328",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "I",
                "label": "VALUATION PROCEDURES"
            },
            "rule": {
                "number": "§9.4037",
                "label": "Electronic Delivery of Communications between Tax Officials and Property Owners"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216459&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "216459",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Electronic Delivery of Communications. A communication that is required or permitted by Tax Code, Title 1 (Property Tax Code) to be delivered between a tax official and a property owner or a person designated by a property owner under Tax Code, §1.111(f) shall be delivered electronically if the property owner or person designated by the owner elects to exchange communications with the tax official electronically under Tax Code, §1.085.(b) Media, Formats, Content and Methods. The tax official shall implement a process for the receipt and delivery of electronic communications with property owners or persons designated by property owners using any electronic format, which may include the use of electronic mail (email), Internet access, Instant Messaging (IM), Short Message Service (SMS), and other paperless means of communication.(c) Request for Electronic Delivery. A property owner or person designated by a property owner under Tax Code, §1.111(f) must make the election by submitting the form prescribed by the comptroller to the applicable tax official(s) in the county where the property is located. A tax official must post on their website method(s) property owners can use to submit the form. The election remains in effect until rescinded in writing by the property owner or the person designated by the owner under Tax Code, §1.111(f).(d) Guidelines. The Comptroller of Public Accounts will publish and periodically revise the Guidelines for Electronic Communications. Current guidelines can be obtained from the Comptroller of Public Accounts, Property Tax Assistance Division website at https://comptroller.texas.gov/taxes/property-tax/rules/index.php.",
            "sourceNote": "Source Note: The provisions of this §9.4037 adopted to be effective November 27, 2024, 49 TexReg 9567."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216459&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "216459",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "I",
                "label": "VALUATION PROCEDURES"
            },
            "rule": {
                "number": "§9.4038",
                "label": "Definition of Petroleum Products"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217852&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217852",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "For the purposes of administration and operation of appraisal districts, the term \"liquid or gaseous materials that are the immediate derivatives of the refining of oil or natural gas,\" as used in the Tax Code, §11.251, means the following products:(1) ethane;(2) propane;(3) butane;(4) normal butane;(5) isobutane;(6) butane-propane;(7) motor gasoline;(8) natural gasoline;(9) kerosene;(10) home heating oil;(11) diesel fuel;(12) other middle distillates;(13) aviation gasoline;(14) kerosene-type jet fuel;(15) naphtha-type jet fuel;(16) fuel oil #4 for utility use;(17) fuel oils #5, #6 for utility use;(18) fuel oil #4 for nonutility use;(19) fuel oils #5, #6 for nonutility use;(20) bunker C;(21) navy special;(22) lubricants;(23) special naphtha;(24) solvent products; and(25) crude oil.",
            "sourceNote": "Source Note: The provisions of this §9.4038 adopted to be effective February 1, 2024, 49 TexReg 421."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217852&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217852",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4201",
                "label": "Scope and Construction of Rules; Computation of Time"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217853&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217853",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Scope of rules. The rules in this subchapter shall govern:(1) the procedures concerning regular binding arbitration to appeal values determined by local appraisal review boards under Tax Code, §41A.01;(2) the procedures concerning limited binding arbitration for certain alleged procedural violations during the local protest process under Tax Code, §41A.015; and(3) the comptroller's registry of arbitrators.(b) Construction of rules. Unless otherwise provided, this subchapter shall be construed in accordance with the Code Construction Act, Government Code, Chapter 311.(c) Computation of time. Computation of time shall be consistent with the Code Construction Act, Government Code, §311.014, and Tax Code, §1.06.",
            "sourceNote": "Source Note: The provisions of this §9.4201 adopted to be\r\neffective April 16, 2024, 49 TexReg 2302"
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217853&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217853",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4202",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217854&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217854",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following phrases, words, and terms, when used in this subchapter shall have the following meanings, unless the context clearly indicates otherwise.(1) Agent--An individual, authorized under Tax Code, §41A.08(b) or §41A.015(h), and §9.4205 of this title, as applicable, to represent a party in arbitration.(2) Appraisal district--A political subdivision established in each county responsible for appraising property in the county for ad valorem tax purposes for each taxing unit that imposes such taxes on property in the county.(3) Appraisal review board (ARB)--The board established in a county's appraisal district pursuant to Tax Code, §6.41, authorized to hear and resolve disputes between property owners and the appraisal district.(4) Appraised value--The value of property determined under the appraisal methods and requirements of Tax Code, Chapter 23.(5) Arbitration--A form of conflict resolution in which all parties agree that an arbitrator will consider the evidence and render a binding decision. This term includes the two types of arbitration governed by this subchapter: regular binding arbitration and limited binding arbitration. The terms \"arbitration,\" \"binding arbitration,\" and \"arbitration proceeding\" are synonymous as used in this subchapter and include the term \"arbitration hearing,\" the specific event at which evidence is presented to an arbitrator.(6) ARB order--An ARB's written decision issued under Tax Code, §41.47.(7) Authorized individual--An individual with the legal authority to act on behalf of the property owner, a legal guardian, or one who holds a valid power of attorney. Where the property owner is a business entity, this term includes the designated employee of that entity. This term does not include an individual appointed as an agent for binding arbitration under §9.4205 of this title or under Tax Code, §1.111.(8) Chief Appraiser--The chief administrator of the appraisal district.(9) Comptroller--The Texas Comptroller of Public Accounts and employees and designees of the comptroller.(10) Division director--The director of the Property Tax Assistance Division of the Texas Comptroller of Public Accounts or the division director's designee.(11) Individual--A single human being.(12) Limited Binding Arbitration (LBA)--A process that allows a property owner through binding arbitration to request that an arbitrator compel the ARB or the chief appraiser to take certain procedural actions under Tax Code, §41A.015.(13) LBA award--A final decision rendered by an arbitrator resolving the matter submitted for their consideration in an LBA case.(14) Market value--Has the meaning assigned by Tax Code, §1.04(7).(15) Online arbitration system--A web-based software application designed to electronically administer the binding arbitration program consistent with this subchapter.(16) Party--The property owner, property owner's agent, ARB, or appraisal district.(17) Property owner--The authorized individual or a person having legal title to property. The term does not include lessees who have the right to protest property valuations before ARBs.(18) Regular Binding Arbitration (RBA)--A process under Tax Code, §41A.01, that allows a property owner to contest an ARB order determining a protest through binding arbitration.(19) RBA award--A final decision rendered by an arbitrator resolving the matter submitted for their consideration in an RBA case.",
            "sourceNote": "Source Note: The provisions of this §9.4202 adopted\r\nto be effective April 16, 2024, 49 TexReg 2302"
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217854&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217854",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4203",
                "label": "Prohibited Communications Regarding Pending Arbitrations"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217855&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217855",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Prohibited communications. Parties to an arbitration and arbitrators assigned to an arbitration shall not seek the comptroller's advice or direction on a matter relating to a pending arbitration under Tax Code, Chapter 41A.(b) Pending arbitration. An arbitration is pending from the date a request for binding arbitration is filed until the date of delivery of the LBA or RBA award pursuant to Tax Code, §41A.09. (c) Exception. The prohibition in subsection (a) of this section shall not apply to the comptroller's processing and curing of requests for binding arbitration and deposits or other administrative matters.",
            "sourceNote": "Source Note: The provisions of this §9.4203 adopted to be\r\neffective April 16, 2024, 49 TexReg 2302"
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217855&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217855",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4204",
                "label": "Filing Requests for Binding Arbitration and Deposit Payments"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217856&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217856",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Electronic filing.(1) This subsection applies to requests for binding arbitration filed on or after the later of January 1, 2024, or the first day the comptroller makes the online arbitration system available for the administration of the binding arbitration program. Requests for binding arbitration filed before the later of January 1, 2024, or the first day the comptroller makes the online arbitration system available, must use paper-based filing under subsection (b) of this section.(2) Arbitrators, appraisal districts, ARBs, agents, and property owners who are working with an agent are required to register with the online arbitration system and use the online arbitration system to complete required forms referenced in this subchapter, pay required arbitration deposits online, and receive notifications by email under this subchapter.(3) A property owner who does not appoint an agent may:(A) register with the online arbitration system and use the online arbitration system to complete required forms referenced in this subchapter, pay required arbitration deposits online, and receive notifications by email under this subchapter; or(B) use the paper-based filing method described in subsection (b) of this section.(4) Use of an email address or other information to access the online arbitration system is a voluntary disclosure constituting consent to the collection and disclosure of the information for the purposes for which it was requested. This information may be subject to disclosure under the Texas Public Information Act.(b) Paper-based filing. The following parties must mail the applicable request form pursuant to the instructions provided on the form and include a check or money order for the required arbitration deposit payable to the comptroller:(1) a property owner or property owner's agent, if the request for binding arbitration is filed before the later of January 1, 2024, or the first day the comptroller makes the online arbitration system available; and(2) a property owner who does not appoint an agent and who chooses not to use the online arbitration system.(c) Deposit payments. A request for binding arbitration is not officially submitted until the required deposit is paid. If the request is filed using electronic filing under subsection (a) of this section, the deposit must be paid through the online arbitration system. If the request is filed using paper-based filing under subsection (b) of this section, the deposit must be paid by including a check or money order with the request for binding arbitration form.(d) Requirements for refund recipient.(1) Except as provided in paragraphs (2) and (3) of this subsection, the property owner shall designate the refund recipient on the request for binding arbitration.(2) If the property owner appoints an agent under §9.4205 of this title, the agent may designate the refund recipient on the request for binding arbitration by designating the refund recipient that the property owner designated in the appointment of agent for binding arbitration form.(3) The refund recipient's name, mailing address, phone number, and one of the following Internal Revenue Service identification numbers for the refund recipient, must be provided on the request for binding arbitration:(A) Social Security Number (SSN);(B) Individual Taxpayer Identification Number (ITIN) issued by the Internal Revenue Service to individuals not eligible to obtain an SSN; or(C) Federal Employer Identification Number (FEIN).(4) To protect the confidentiality of the refund recipient's identification number, the comptroller shall assign a Texas Identification Number (TIN) to serve as the payee account number on any warrants issued by the comptroller.",
            "sourceNote": "Source Note: The provisions of this §9.4204 adopted\r\nto be effective April 16, 2024, 49 TexReg 2302"
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217856&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217856",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4205",
                "label": "Agent Representation in Binding Arbitration"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217857&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217857",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Professional qualifications. Property owners may represent themselves or choose to be represented by an agent. An agent must hold a current and active license, certification, or registration in one of the following fields:(1) an attorney licensed to practice in Texas;(2) a real estate broker or sales agent licensed under Occupations Code, Chapter 1101;(3) a real estate appraiser licensed under Occupations Code, Chapter 1103;(4) a property tax consultant registered under Occupations Code, Chapter 1152; or(5) a certified public accountant licensed under Occupations Code, Chapter 901.(b) Required documentation.(1) The property owner must complete and sign the appointment of agent for binding arbitration form. No other agent appointment, authorization form, or document will be accepted.(2) Neither the individual being appointed as an agent under this subsection, nor an agent appointed under Tax Code, §1.111, may sign the form described in paragraph (1) of this subsection on behalf of the property owner.(3) For requests for binding arbitration filed with the comptroller on or after January 1, 2024, the agent shall retain the form and shall produce the form immediately upon request from the property owner, appraisal district, ARB, arbitrator assigned to the arbitration, or comptroller under Tax Code, §41A.08(d).(4) Failure of the agent to produce the form immediately upon request as required by Tax Code, §41A.08(d), or production of an invalid form, shall result in dismissal of the request for binding arbitration and may result in loss of the arbitration deposit.(c) Agent responsibilities. Authorized agents may take the following actions in an arbitration on a property owner's behalf:(1) file online requests for binding arbitration and pay the required arbitration deposit through the online arbitration system;(2) receive a potential refund of an arbitration deposit, if the agent is designated as a refund recipient under §9.4204(d) of this title;(3) send and receive communications regarding the arbitration; (4) negotiate with the appraisal district to try to settle the case before the arbitration hearing;(5) execute a settlement agreement with the appraisal district to resolve the case;(6) withdraw a request for binding arbitration; and(7) appear and represent the property owner at the arbitration hearing.(d) Designation of specific individual.(1) The property owner must identify on the appointment of agent for binding arbitration form a specific individual to act as an agent and provide the agent's license number for the specific type of license, certification, or registration that qualifies the individual to act as an agent under subsection (a) of this section.(2) The property owner may also appoint an alternate agent on the appointment of agent for binding arbitration form. Unless the alternate agent is with the same organization as the first agent, the alternate agent shall not be authorized to act on a property owner's behalf unless the alternate agent provides written notice to the appraisal district and the appointed arbitrator that the first agent is not available. For LBA, a copy of the notice must also be provided to the ARB.(3) A company or business entity does not qualify to act as an agent.(e) Agent representation at arbitration hearing. Only the individual(s) identified on the appointment of agent for binding arbitration form may undertake representation of the property owner in the arbitration for which the request for binding arbitration was submitted. No other individual, including a licensed attorney, may act on the property owner's behalf in that proceeding unless another subsequently executed appointment of agent for binding arbitration form is completed and signed.(f) Agents for non-individual property owners. The property owner's name, current mailing address, phone number, and email address, if available, must be provided on the appointment of agent for binding arbitration form. If the property owner is not an individual, an authorized individual shall complete and sign the form on behalf of the property owner. The authorized individual's name and contact information must be provided on the form, as well as the basis for the authorized individual's authority.(g) Duration of agent appointment. The appointment of agent for binding arbitration form is valid for three years from the date of execution, unless revoked. The property owner may revoke the appointment of an agent or alternate agent at any time by delivery of written notice to the agent, and all alternate agents, if any are appointed, to the address provided on the form or the agent's last known address. A copy of the revocation notice must also be provided to the comptroller, appraisal district, and the arbitrator assigned to the case, if an arbitrator is assigned. For LBA, a copy of the revocation notice must also be provided to the ARB.(h) Agent certifications. In undertaking representation of the property owner pursuant to Tax Code, §41A.08(b), each agent must certify that:(1) they are acting as a fiduciary on behalf of the property owner in the specific arbitration proceeding for which the request for binding arbitration was filed and agree to undertake the responsibilities specified in subsection (c) of this section; and(2) the property owner knowingly authorized the agent's filing of the request for binding arbitration and the agent's representation of the property owner in the arbitration.",
            "sourceNote": "Source Note: The provisions of this §9.4205 adopted\r\nto be effective April 16, 2024, 49 TexReg 2302"
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217857&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217857",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4206",
                "label": "Appraisal District Responsibility for Processing Request"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217858&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217858",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Appraisal district responsibilities.(1) If a request for RBA is filed before the later of January 1, 2024, or the first day the comptroller makes the online arbitration system available, within 10 calendar days of receipt of each request for binding arbitration under Tax Code, §41A, the appraisal district shall:(A) assign a unique arbitration number to each request for RBA;(B) complete and sign that portion of the request for RBA form applicable to the appraisal district, based on examination of the documentation submitted;(C) deliver each request for RBA form, the accompanying deposit, the ARB order (as well as the appointment of agent for binding arbitration form, if provided), and supporting documentation for any items not checked in the appraisal district portion of the request for RBA form, if applicable, to the comptroller's office by certified first-class mail, and simultaneously deliver a copy of the submission to the property owner or property owner's agent, as appropriate, by regular first-class mail or email; and(D) provide promptly any additional information the comptroller's office requests to process the request for binding arbitration submission.(2) If a request for RBA or LBA is filed on or after the later of January 1, 2024, or the first day the comptroller makes the online system available, within 10 calendar days of notification by the comptroller of each request for binding arbitration under Tax Code, §41A, the appraisal district shall, using the online arbitration system:(A) review each request for binding arbitration;(B) verify property account details;(C) assign an appraisal district contact for the arbitration hearing;(D) enter the contact information for an ARB contact for LBA cases;(E) indicate any potential defects, including any discrepancies or jurisdictional issues, that affect the deposit amount or the eligibility of a property to be included on the request for binding arbitration; and(F) upload supporting documentation for any potential defects, including any discrepancies or jurisdictional issues, identified in the review process.(b) Comptroller's request for additional information. The appraisal district shall provide to the comptroller any additional information the comptroller requests to process the request for binding arbitration within 15 calendar days of the comptroller's request.(c) Notification if new ARB hearing is mandated. Where an LBA award mandates a new ARB hearing associated with a pending request for RBA, the appraisal district shall promptly notify the comptroller.",
            "sourceNote": "Source Note: The provisions of this §9.4206 adopted to be\r\neffective April 16, 2024, 49 TexReg 2302"
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217858&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217858",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4207",
                "label": "Comptroller Processing of Request"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217859&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217859",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) No defects identified. If no defects are identified by the comptroller or by the appraisal district under §9.4206(a)(2)(E) of this title, the comptroller shall notify the appraisal district and the property owner or the property owner's agent that the request for binding arbitration has been processed and provide the arbitration number assigned by the comptroller. For LBA, a copy of the notice must also be provided to the ARB.(b) Defects identified. If the appraisal district or the comptroller identifies defects on the request for binding arbitration that affect the deposit or property eligibility, the comptroller shall review the request to determine whether it can be processed or requires a cure under subsection (d) of this section.(c) Deposit not honored or insufficient. If a property owner using paper-based filing under §9.4204(b) of this title pays the deposit with a check that is not honored, the property owner shall submit to the comptroller a check issued and guaranteed by a banking institution (i.e., a cashier's or teller's check) or money order. If a property owner using paper-based filing under §9.4204(b) of this title pays the deposit with a check or money order that is for less than the required deposit amount under §9.4221 or §9.4241 of this title, the property owner shall submit to the comptroller a supplemental check or money order sufficient to pay the full deposit. If a property owner or the property owner's agent using the online arbitration system pays the deposit with a credit card or electronic funds transfer (eCheck) that is not honored, the property owner or the property owner's agent shall submit another electronic payment to the comptroller. Such payments must be received no later than 15 calendar days after the notice of the defect is delivered under subsection (d) of this section.(d) Cure period. If a request for binding arbitration is defective, the comptroller shall notify the property owner or the property owner's agent of the defect, the process to file a cure for the defect, and the date the cure is due. Mailed notices are deemed delivered when deposited in the mail. If notified by email or on the online arbitration system, the notification is deemed delivered on the date the comptroller transmits the email or notice.(e) Cure resolution. If the property owner or the property owner's agent provides documentation, payment, or information that cures the defect within 15 calendar days of the comptroller's notice, the comptroller shall process the request for binding arbitration and notify the appraisal district and property owner or the property owner's agent. For LBA, a copy of the notice must also be provided to the ARB.(f) Failure to cure. If the property owner or the property owner's agent fails to cure any defect that the comptroller determines to be curable within 15 calendar days of the comptroller's notice, the request for binding arbitration shall not be processed any further and shall be closed, the comptroller shall notify the parties of the comptroller's action, and the comptroller shall refund the deposit pursuant to §9.4209 of this title.(g) Processing is not certification of requirements. The comptroller's processing of a request does not certify that the request meets all statutory requirements and requests may still be dismissed by an arbitrator for lack of jurisdiction.(h) Dispute. If there is a dispute regarding whether there is jurisdiction for an arbitration under §9.4223 or §9.4244 of this title, the request for binding arbitration shall be forwarded to the arbitrator and the arbitrator shall render a determination on jurisdiction. Arbitrators shall determine whether a request meets all statutory criteria and shall dismiss the request if it satisfies the criteria for dismissal under §9.4223 or §9.4244 of this title. Dismissal of the request may result in the loss of the requestor's deposit.",
            "sourceNote": "Source Note: The provisions of this §9.4207 adopted to be\r\neffective April 16, 2024, 49 TexReg 2302"
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217859&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217859",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4208",
                "label": "Withdrawing a Request"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217860&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217860",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Notice of withdrawal. A property owner or the property owner's agent using the online arbitration system under §9.4204(a) of this title must withdraw a request for binding arbitration using the online arbitration system. A property owner or the property owner's agent using paper-based filing under §9.4204(b) of this title must deliver a written notice of the withdrawal to all parties and the comptroller.(b) Timely withdrawal. If the comptroller receives the notice of withdrawal before an arbitrator accepts the case, the notice is considered timely, and the deposit will be refunded pursuant to §9.4209 of this title.(c) Untimely withdrawal. If the comptroller receives the notice of withdrawal after an arbitrator accepts the case, the notice is considered untimely and the arbitrator is entitled to charge a fee, up to the amount allowed in §9.4226 or §9.4247 of this title, as applicable, out of the deposit.",
            "sourceNote": "Source Note: The provisions of this §9.4208 adopted to be\r\neffective April 16, 2024, 49 TexReg 2302"
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217860&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217860",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4209",
                "label": "Refund and Arbitrator Fee Processing"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217861&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217861",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Administrative costs. The comptroller shall retain $50 of every arbitration deposit to cover the comptroller's administrative costs.(b) Refund recipients. Any deposit refunds will be issued to the refund recipient designated on the request for binding arbitration.(c) Refund amounts.(1) A deposit refund shall be issued to the property owner or property owner's agent in the amount of the deposit less the $50 comptroller administrative fee if:(A) the request for binding arbitration is closed due to a defect that could not be cured or due to a defect that was not cured;(B) the request for binding arbitration is timely withdrawn; (C) the arbitration is dismissed in its entirety due to delinquent property taxes;(D) the LBA award found a procedural violation in accordance with §9.4226 of this title; or(E) the RBA award is in favor of the property owner in accordance with §9.4247(b) of this title.(2) A deposit refund, if any, shall be issued in the amount of the deposit less the arbitrator's fee and the $50 comptroller administrative fee if:(A) the request for binding arbitration is not timely withdrawn;(B) the arbitration is dismissed in its entirety for lack of jurisdiction under §9.4223(a)(2)-(9) or §9.4244(a)(2)-(8) of this title;(C) the LBA award did not find a procedural violation in accordance with §9.4226 of this title; or(D) the RBA award is not in favor of the property owner in accordance with §9.4247(b) of this title.",
            "sourceNote": "Source Note: The provisions of this §9.4209 adopted\r\nto be effective April 16, 2024, 49 TexReg 2302"
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217861&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217861",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4210",
                "label": "Forms"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217862&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217862",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Adoption by reference. The comptroller adopts by reference:(1) the request for RBA form; and(2) the RBA award form.(b) Revision and addition of forms. Except as provided by subsection (a) of this section, all comptroller forms regarding binding arbitration under Tax Code, Chapter 41A, may be revised at the discretion of the comptroller. The comptroller may also prescribe additional forms for the administration of binding arbitration.",
            "sourceNote": "Source Note: The provisions of this §9.4210 adopted to be\r\neffective April 16, 2024, 49 TexReg 2302"
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217862&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217862",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4211",
                "label": "Communication with Property Owner, Property Owner's Agent, ARB,  Appraisal District, and Arbitrator"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217863&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217863",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Except as otherwise provided in Tax Code, §41A.015(b)(1) or §41A.015(i), these rules, or other law, as applicable, the property owner, property owner's agent, ARB, appraisal district, and arbitrator, as applicable, may provide written communications, notifications, and materials to each other using email, first-class mail, or any other method acceptable to the intended recipient of the communication, notification, or materials. Any written communications, notifications, and materials provided to the arbitrator shall also be provided to all other parties to the arbitration.",
            "sourceNote": "Source Note: The provisions of this §9.4211 adopted to be\r\neffective April 16, 2024, 49 TexReg 2302"
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217863&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217863",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4212",
                "label": "Arbitration Proceedings"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217864&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217864",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Necessary Parties. Necessary parties to LBA under Tax Code, §41A.015, include the property owner or the property owner's agent, the chief appraiser, and the ARB. Necessary parties to RBA under Tax Code, §41A.01, include the property owner or the property owner's agent and the appraisal district.(b) Requirements. An arbitrator who accepts an appointment shall conduct each arbitration proceeding pursuant to the terms of Tax Code, Chapter 41A, and this subchapter, and for a fee that is not more than the applicable amount stated in Tax Code, §41A.015(p)(2) or §41A.06(b)(4), as applicable.(c) Arbitrator professionalism. The arbitrator shall determine the level of formality or informality of arbitration proceedings; however, the arbitrator must behave professionally while rendering arbitration services. The arbitrator shall not engage in conduct that creates a conflict of interest.(d) Arbitration hearing types. Arbitrations may be conducted in person or by telephone or video conference call. The arbitrator may decide the manner of the arbitration hearing unless the property owner or the property owner's agent selects a specific format on the request for binding arbitration.(e) In-person arbitration hearing requirements. Unless all necessary parties agree otherwise, if the arbitration is conducted in person, the arbitrator and all necessary parties shall appear in person for the arbitration hearing. If the arbitration is in person, the arbitration hearing must be held in the county where the subject property is located, unless all necessary parties agree to another location. The selected location must be in an office-like setting generally open to the public or to the arbitrator. The arbitrator is responsible for identifying and reserving the arbitration hearing location and is responsible for any location costs incurred. Neither the property owner, the appraisal district, nor the ARB, may be charged an additional fee or requested to provide additional monies to participate in an in-person arbitration.(f) Arbitrator initiation of arbitration hearing. Promptly upon acceptance of an appointment, the arbitrator shall contact all necessary parties by telephone or email to notify the parties of the arbitrator's appointment, propose one or more dates for the arbitration hearing, and request alternate arbitration hearing dates from the parties if the date(s) proposed is not acceptable. The arbitrator should cooperate with all necessary parties in scheduling the arbitration hearing.(g) Notice of arbitration hearing. The arbitrator shall set the arbitration hearing date and serve written notice of the arbitration hearing under subsection (h) of this section as follows:(1) where the arbitrator received written agreement from all necessary parties on an arbitration hearing date, the arbitrator shall serve the written notice of arbitration hearing to all necessary parties in the method acceptable to each party; or(2) where written agreement from all necessary parties is not obtained after 14 calendar days of the arbitrator's initial contact attempt under subsection (f) of this section, the arbitrator shall set the arbitration hearing date, providing a minimum of 21 calendar days' notice before the arbitration hearing, and shall serve the notice of arbitration hearing by:(A) serving a copy of the notice to all necessary parties by email, if available; and(B) providing a paper copy of the notice to the property owner through the U.S. Postal Service or a private third-party service such as FedEx or United Parcel Service (UPS) as long as proof of delivery is provided.(h) Contents of arbitration hearing notice. The arbitrator shall include the following information in the written notice of arbitration hearing:(1) the arbitration number;(2) the date and time of the arbitration hearing;(3) the physical address of the arbitration hearing location if the arbitration hearing is in person, or instructions concerning how to participate in the arbitration hearing if the hearing is by telephone or video conference call;(4) the date by which the parties must exchange evidence before the arbitration hearing;(5) the arbitrator's contact information, including email address, phone number, and mailing address, as well as a fax number, if available;(6) a copy of the arbitrator's written procedures for the arbitration hearing;(7) the methods by which the parties are to communicate and exchange materials, including by electronic means, U.S. first-class mail, or overnight or personal delivery; and(8) any other matter about which the arbitrator wishes to advise the parties before the arbitration hearing.(i) Continuance. The arbitrator may continue an arbitration hearing:(1) for reasonable cause; or(2) if all necessary parties agree to the continuance.(j) Failure to appear and waiver of defective notice. The arbitrator may hear and determine the controversy on the evidence produced at the arbitration hearing as long as notice was provided pursuant to subsection (g) of this section. Appearance at the arbitration hearing waives any defect in the notice.(k) Evidence. Each party at the arbitration hearing is entitled to be heard, present evidence material to the controversy, and cross-examine witnesses. The arbitrator shall ask each witness testifying to swear or affirm that the testimony they are about to give shall be the truth, the whole truth, and nothing but the truth. The arbitrator's decision is required to be based solely on the evidence provided at the arbitration hearing.(l) Availability of arbitration hearing procedures. The arbitrator shall have a written copy of the arbitrator's hearing procedures available at the arbitration hearing.(m) Recording proceedings. The parties shall be allowed to record audio of the proceedings. Video recordings require the consent of the arbitrator.(n) Confidentiality. Information provided to an arbitrator that is made confidential by law may not be disclosed except as provided by law. That portion of the materials considered confidential must be designated as such to protect it from disclosure.(o) Ex parte communications. The arbitrator shall not initiate, permit, or consider an ex parte communication made to the arbitrator by a party outside the presence of the other parties at any time before the LBA or RBA award is issued, concerning specific evidence, argument, facts, or the merits of the arbitration. Such ex parte communications may be grounds for the removal of the arbitrator from the comptroller's registry of arbitrators.(p) Processing time. The arbitrator must complete an arbitration proceeding in a timely manner and must make every effort to complete the proceeding within 120 calendar days after the arbitrator's acceptance of the appointment. Failure to timely complete arbitration proceedings may constitute good cause for removal from the comptroller's registry of arbitrators.",
            "sourceNote": "Source Note: The provisions of this §9.4212 adopted to be\r\neffective April 16, 2024, 49 TexReg 2302"
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217864&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217864",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4213",
                "label": "Substitution of Arbitrator Assigned to Arbitration Hearing"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217865&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217865",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Substitution prior to arbitration hearing. The comptroller shall remove an arbitrator from an arbitration and substitute a different arbitrator prior to the arbitration hearing taking place if the division director determines by clear and convincing evidence there is good cause for such removal.(b) Substitution prior to award. After an arbitration hearing is held and prior to issuance of the award, an arbitrator may be removed from an arbitration and a substitute arbitrator appointed where a disaster or emergency, as defined by Government Code, §418.004 or §433.001, impacts the arbitrator's ability to complete the arbitration in compliance with this subchapter. Substitution may also take place if, as determined by the division director in the exercise of the division director's discretion, the arbitrator experiences a personal emergency, rendering them incapable of completing the arbitration in compliance with this subchapter. The substitute arbitrator appointed under this subsection shall comply with Subchapter K of this chapter in facilitating and completing a new hearing.(c) Good cause for substitution. Good cause for substitution under subsection (a) of this section includes the following:(1) the individual is not eligible or becomes ineligible under the terms of §9.4260 or §9.4263 of this title, as applicable;(2) the individual violates one or more provisions of this subchapter;(3) there is a pending request for the arbitrator's removal from the registry of arbitrators and the division director, in the exercise of the division director's discretion, believes the request could impact the arbitrator's ability to conduct a fair and impartial arbitration hearing; or(4) the division director determines, in the exercise of the division director's discretion, that substitution is in the interests of providing for a fair, impartial arbitration hearing.(d) Clear and convincing evidence. For purposes of this section, clear and convincing evidence means the measure or degree of proof that produces a firm belief or conviction of the truth of the allegations.(e) Filing of substitution request. A party to an arbitration may request the substitution of an arbitrator by filing a written request with the division director. Requests must be received with sufficient time to process and investigate the request prior to the arbitration hearing if filed under subsection (a) of this section or prior to the award being issued if filed under subsection (b) of this section. If the arbitration hearing is held prior to resolution of a request under subsection (a) of this section, or an award is issued prior to resolution of a request under subsection (b) of this section, the request will be dismissed. All requests must contain the following:(1) a letter, addressed to the division director and signed by the requestor, that identifies the arbitration, arbitrator, and the grounds for substitution under subsection (b) or (c) of this section; and(2) copies of all available communications exchanged between the arbitrator and the parties, as applicable, that support the request.(f) Confidentiality. Information reviewed under this section that is made confidential by law may not be disclosed except as provided by law. That portion of the materials considered confidential must be designated as such to protect it from disclosure.(g) Dismissals. Requests for substitution shall be dismissed if:(1) the conduct complained of does not meet the requirements of subsection (b) or (c) of this section; or(2) the complaint is not timely or otherwise fails to meet the requirements of subsection (e) of this section.(h) Processing time. The comptroller shall examine the request for substitution in a timely manner.(i) Cure period. If good cause for substitution is found, the arbitrator shall be notified by the comptroller and, where applicable, given the chance to cure the violation by the deadline established in the comptroller's notice. If the arbitrator does not cure the violation by the deadline established in the comptroller's notice, the arbitrator shall be removed and a new arbitrator substituted. The comptroller shall keep a record of any removals under subsection (a) of this section in the arbitrator's file.(j) No appeal. The determination of a request for substitution, including dismissal of the request, or the removal of an arbitrator under this section is final and may not be appealed.",
            "sourceNote": "Source Note: The provisions of this §9.4213 adopted to be\r\neffective April 16, 2024, 49 TexReg 2302"
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217865&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217865",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4220",
                "label": "Request for LBA"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217866&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217866",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Actions reviewable in LBA. A property owner who has filed a notice of protest under Tax Code, Chapter 41, may file a request for LBA to compel the ARB or the chief appraiser to take certain actions under Tax Code, §41A.015(a).(b) Waiver of right to seek LBA. A property owner waives their right to seek LBA under Tax Code, §41A.015, if:(1) under Tax Code, §41A.015(a)(5), there was no request that the ARB hearing be postponed, or the property owner or the property owner's agent was offered a postponement and chose to proceed with the ARB protest; or(2) under Tax Code, §41A.015(a)(7), there was an offer to postpone the ARB hearing upon the objected-to evidence being provided and the property owner or the property owner's agent chose to proceed with the ARB protest.(c) Requirements for processing. A request for LBA that meets the following terms and conditions will be processed by the comptroller:(1) The request was submitted in accordance with Tax Code, §41A.015, §9.4204 of this title, and this section.(2) The request includes a deposit that meets the requirements of §9.4204 and §9.4221 of this title.(d) Multiple alleged violations or properties. LBA requests are confined to a single tax year and a single property owner. The property owner may file for multiple alleged procedural violations for a single property or for multiple properties owned by a single property owner. If the request involves multiple alleged procedural violations or multiple properties, each individual allegation and property must separately meet the requirements of this section, except that a single deposit is required.",
            "sourceNote": "Source Note: The provisions of this §9.4220 adopted to be effective April 16, 2024, 49 TexReg 2311."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217866&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217866",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4221",
                "label": "LBA Deposit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217867&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217867",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Deposit amount. A deposit shall be submitted with each request for LBA in the following amount, as applicable:(1) $450 if the property qualifies as the property owner's residence homestead under Tax Code, §11.13, and the appraised or market value, as applicable, is $500,000 or less as determined by the appraisal district for the most recent tax year.(2) $550 for all property not subject to paragraph (1) of this subsection.(b) Multiple properties. Where the property owner has appealed multiple properties, with one or more qualifying under subsection (a)(1) of this section and one or more qualifying under subsection (a)(2) of this section; the deposit must be made in the amount of subsection (a)(2) of this section.",
            "sourceNote": "Source Note: The provisions of this §9.4221 adopted to be effective April 16, 2024, 49 TexReg 2311."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217867&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217867",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4222",
                "label": "Comptroller Appointment of Arbitrators for LBA"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=221200&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "221200",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Qualifications. The comptroller shall appoint to a pending request for LBA an individual who meets the requirements of Tax Code, §41A.015(p) and is included in the registry of arbitrators under §9.4260 of this title.(b) Use of computer system for appointment. The comptroller shall use a computer system that distributes the arbitration appointments as evenly as possible among qualified and eligible arbitrators included in the registry of arbitrators.",
            "sourceNote": "Source Note: The provisions of this §9.4222 adopted to be effective April 16, 2024, 49 TexReg 2311."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=221200&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "221200",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4223",
                "label": "Dismissal for Lack of Jurisdiction"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217869&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217869",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Reasons for dismissal. The arbitrator shall dismiss a pending request for LBA with prejudice, for lack of jurisdiction, if:(1) except as allowed by Tax Code, §41A.10, taxes on the property subject to the appeal are delinquent because, for any prior year, all property taxes due have not been paid or because, for the year at issue, the undisputed tax amount was not paid before the delinquency date set by the applicable section of Tax Code, Chapter 31;(2) no notice of protest under Tax Code, Chapter 41, was filed prior to the request for LBA being filed under Tax Code, §41A.015(a);(3) the requestor seeks to compel the ARB or chief appraiser to take an action that is not authorized by Tax Code, §41A.015(a);(4) the requestor failed to timely provide written notice to the chair of the ARB, the chief appraiser, and the taxpayer liaison officer for the applicable appraisal district by certified mail, return receipt requested, of the procedural requirement(s) with which the property owner alleges the ARB or chief appraiser was required to comply under Tax Code, §41A.015(b)(1);(5) the requestor failed to timely file the request for LBA under Tax Code, §41A.015(d), which requires filing it no earlier than the 11th day and no later than the 30th day after the date the property owner delivered the notice required by Tax Code, §41A.015(b)(1);(6) the chief appraiser or ARB chair delivered a written statement to the property owner on or before the 10th day after the notice described by Tax Code, §41A.015(b)(1), was delivered confirming that the ARB or chief appraiser would comply with the requirement or cure a failure to comply with the requirement;(7) a lawsuit was filed in district court regarding the same issues, for the same properties, and for the same tax year for which the request was filed;(8) the property owner or the property owner's agent and the appraisal district have executed a written agreement resolving the matter; or(9) the request for LBA was not filed by the property owner or was filed by an agent without proper authority as described by Tax Code, §41A.08 and §9.4205 of this title.(b) An arbitrator shall dismiss any individual properties for which subsection (a) of this section applies and the case will move forward with only the remaining properties.",
            "sourceNote": "Source Note: The provisions of this §9.4223 adopted to be effective April 16, 2024, 49 TexReg 2311; amended to be effective October 14, 2024, 49 TexReg 8396."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217869&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217869",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4224",
                "label": "LBA Award"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217870&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217870",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Questions of jurisdiction. In all arbitrations, the arbitrator shall first determine any questions of jurisdiction.(b) Arbitrator's determination. If jurisdiction exists, the arbitrator shall render a determination on whether there was a violation of the procedural requirements submitted for review. A separate determination must be made for each individual alleged procedural violation and each individual property. If a violation is found, the arbitrator shall direct the ARB or chief appraiser, as applicable, to either comply with the procedural requirement or, if the ARB determination has been issued, to rescind the ARB order and hold a new ARB hearing that complies with the procedural requirements.(c) Arbitrator's award. Within 20 calendar days of the conclusion of the arbitration hearing, the arbitrator shall render and issue an LBA award in the online arbitration system. The arbitrator shall deliver a copy of the LBA award by first class mail to any property owner not participating in the online arbitration system.(d) No appeal of LBA award. An LBA award is final and may not be appealed.",
            "sourceNote": "Source Note: The provisions of this §9.4224 adopted to be effective April 16, 2024, 49 TexReg 2311."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217870&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217870",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4225",
                "label": "Correction of Procedural Violations"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217871&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217871",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Upon receipt of the LBA award, the chief appraiser or ARB, as applicable, shall:(1) Take any action required to comply with the requirements of the LBA award;(2) Rescind the ARB order and schedule and conduct a new ARB hearing, as applicable; and(3) Notify the comptroller if there is a pending request for RBA under Tax Code, §41A.01, involving the same tax year, property owner, and properties.",
            "sourceNote": "Source Note: The provisions of this §9.4225 adopted to be effective April 16, 2024, 49 TexReg 2311."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217871&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217871",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4226",
                "label": "Payment of Arbitrator Fees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217872&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217872",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Amount of arbitrator fee. The arbitrator fee for LBA shall not exceed the applicable amount specified in Tax Code, §41A.015(p)(2).(b) Multiple properties. Where the property owner has appealed multiple properties, some qualifying under Tax Code, §41A.015(p)(2)(A) and some qualifying under Tax Code, §41A.015(p)(2)(B), the fee shall not exceed the amount specified in Tax Code, §41A.015(p)(2)(B).(c) Processing of arbitrator fees. Payment of arbitrator fees shall be processed in accordance with Tax Code, §41A.015(k) and (l), and §9.4209 of this title. For payments of arbitrator's fees by appraisal districts under Tax Code, §41A.015(k), the payment shall be made outside of the online arbitration system.(d) Multiple ARB hearing procedural violations. Where the property owner alleges more than one ARB hearing procedural violation or alleges the same violation on more than one property, the arbitrator fee shall be paid in accordance with Tax Code, §41A.015(k), unless the arbitrator found no violations of any of the ARB hearing procedural requirements submitted for review.",
            "sourceNote": "Source Note: The provisions of this §9.4226 adopted to be effective April 16, 2024, 49 TexReg 2311."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217872&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217872",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4240",
                "label": "Request for RBA"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217873&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217873",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Right of appeal in RBA. A property owner or the property owner's agent may appeal an ARB order determining a protest of property value through RBA under the terms and conditions of this section. A single ARB order may be appealed to RBA by only one property owner, even if multiple property owners are listed.(b) Requirements for processing. A request for RBA will be processed for arbitration under Tax Code, §41A.01, if:(1) The request for RBA concerns a property with an appraised or market value of $5 million or less as determined by the ARB order, or the property qualifies as the property owner's residence homestead under Tax Code, §11.13;(2) The only matter in dispute is the determination of a protest filed under either Tax Code, §41.41(a)(1), concerning the property's appraised or market value, or under Tax Code, §41.41(a)(2) concerning unequal appraisal of the property;(3) The deposit meets the requirements of Tax Code, §41A.03(a)(2), and §9.4204 and §9.4241 of this title;(4) Except as allowed by Tax Code, §41A.10, taxes on the property subject to the appeal are not delinquent because, for any prior year, all property taxes due have not been paid or because, for the year at issue, the undisputed tax amount was not paid before the delinquency date set by the applicable section of Tax Code, Chapter 31;(5) No lawsuit has been filed in district court regarding the property for the same issue for the same tax year; and(6) The request for RBA is timely filed pursuant to Tax Code, §41A.03, using the comptroller-prescribed form.(c) Contiguous tracts. If the request for RBA involves contiguous tracts of land pursuant to Tax Code, §41A.03(a-1), each tract of land and ARB order must separately meet the requirements of subsection (b) of this section, except that a single arbitration deposit is required. The combined total value of all ARB orders appealed may exceed the $5 million threshold requirement in subsection (b)(1) of this section as long as each individual tract is valued at $5 million or less or has a residence homestead exemption. If the appraisal district indicates two or more tracts are not contiguous during its review of the property accounts subject to the request, the property owner may select the single or contiguous tracts that will be arbitrated during the 45-day settlement period. Otherwise, the arbitrator that accepts the appointment will move forward with the single or contiguous tracts that contain the property with the highest appraised or market value.(d) Requests for in-county or out-of-county arbitrators. A property owner or the property owner's agent may request that the comptroller appoint an arbitrator for RBA who resides in the county in which the property that is the subject of the appeal is located or an arbitrator who resides outside that county. In appointing an initial arbitrator, the comptroller shall comply with the request of the property owner unless there is not an available arbitrator who resides in the county in which the property that is the subject of the request is located. In appointing a substitute arbitrator, the comptroller shall consider but is not required to comply with the request. This does not authorize a property owner to request the appointment of a specific individual as an arbitrator.(e) Impact of LBA award on RBA request. If a property owner is granted a new ARB hearing as a result of an LBA award and the property owner has a pending request for RBA based on the same ARB proceedings that were at issue in the LBA, the property owner and appraisal district shall promptly notify the comptroller. The pending request for RBA will be considered withdrawn or dismissed for lack of jurisdiction, depending on its current status. The deposit shall be either paid to the arbitrator or refunded according to §9.4209 or §9.4244 of this title. This shall not impact the property owner's ability to file a new request for RBA based on a subsequent ARB order.",
            "sourceNote": "Source Note: The provisions of this §9.4240 adopted to be effective April 16, 2024, 49 TexReg 2313."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217873&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217873",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4241",
                "label": "RBA Deposit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217874&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217874",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Amount of deposit. A deposit shall be submitted with each request for RBA in the applicable amount specified in Tax Code, §41A.03(a)(2).(b) Deposit amount for contiguous tracts. The deposit amount required for arbitration of contiguous tracts of land must correspond with the tract on which subsection (a) of this section would require the largest deposit, if filed separately.",
            "sourceNote": "Source Note: The provisions of this §9.4241 adopted to be effective April 16, 2024, 49 TexReg 2313."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217874&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217874",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4242",
                "label": "RBA 45-Day Settlement Period"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217878&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217878",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Notice of processing. The parties shall have 45 calendar days after the date that the comptroller provides notice that the request for RBA has been processed under §9.4207 of this title in which to try to settle the case or determine that the request for RBA should be withdrawn timely before an arbitrator is appointed. A notice of withdrawal must be provided in accordance with §9.4208 of this title.(b) Waiver of 45-day settlement period. A property owner or the property owner's agent may request to waive the 45-day settlement period. If the appraisal district agrees to the waiver, the comptroller shall appoint an arbitrator to the request for RBA pursuant to §9.4243 of this title.",
            "sourceNote": "Source Note: The provisions of this §9.4242 adopted to be effective April 16, 2024, 49 TexReg 2313."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217878&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217878",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4243",
                "label": "Comptroller Appointment of Arbitrators for RBA"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=221199&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "221199",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Appointment of arbitrator. After the conclusion of the 45-day settlement period or waiver of the 45-day settlement period, the comptroller shall appoint an individual included in the comptroller's registry of arbitrators who is both qualified and eligible for the particular appointment under §§9.4240(d), 9.4260, and 9.4263 of this title.(b) Use of computer system for appointment. The comptroller shall use a computer system that distributes the arbitration appointments as evenly as possible among qualified and eligible arbitrators included in the comptroller's registry of arbitrators.",
            "sourceNote": "Source Note: The provisions of this §9.4243 adopted to be effective April 16, 2024, 49 TexReg 2313."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=221199&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "221199",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4244",
                "label": "Dismissal for Lack of Jurisdiction"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217875&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217875",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Reasons for dismissal. For requests for RBA filed under Tax Code, §41A.01, the arbitrator shall dismiss with prejudice a pending request for RBA for lack of jurisdiction, if:(1) except as allowed by Tax Code, §41A.10, taxes on the property subject to the appeal are delinquent because for any prior year, all property taxes due have not been paid or because, for the year at issue, the undisputed tax amount was not paid before the delinquency date set by the applicable section of Tax Code, Chapter 31;(2) the ARB order(s) appealed did not determine a protest filed pursuant to Tax Code, §41.41(a)(1), concerning the appraised or market value, or Tax Code, §41.41(a)(2), concerning unequal appraisal of the property;(3) the appraised or market value of the property as determined in the ARB order was either more than $5 million or the property did not qualify as the property owner's residence homestead under Tax Code, §11.13;(4) the request for RBA was filed after the deadline established in Tax Code, §41A.03, which requires submission by not later than the 60th calendar day after the date the property owner or the property owner's agent receives the ARB order determining the protest;(5) the property owner or the property owner's agent filed an appeal with the district court under Tax Code, Chapter 42, concerning the value of the same property in the same tax year that is at issue in the pending RBA;(6) the property owner or the property owner's agent and appraisal district have executed a written agreement resolving the matter;(7) the request for RBA was not filed by the property owner or was filed by an agent without proper authority as described by Tax Code, §41A.08 and §9.4205 of this title; or(8) an LBA award rescinded the ARB order(s) under Tax Code, §41A.015(j)(2)(B).(b) Contiguous tracts. When an RBA proceeding is brought pursuant to Tax Code, §41A.03(a-1), involving two or more contiguous tracts of land, the arbitrator shall dismiss from the proceeding any tract of land for which subsection (a) of this section applies. If, after dismissal, two or more tracts are not contiguous, the property owner may select the single or contiguous tracts that will be arbitrated. Otherwise, the arbitrator will determine the single or contiguous tracts that contain the property with the highest appraised or market value.",
            "sourceNote": "Source Note: The provisions of this §9.4244 adopted to be effective April 16, 2024, 49 TexReg 2313; amended to be effective October 14, 2024, 49 TexReg 8397."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217875&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217875",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4245",
                "label": "RBA Award"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217876&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217876",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Questions of jurisdiction. In all arbitrations, the arbitrator shall first determine any questions of jurisdiction.(b) Arbitrator's determination. If jurisdiction exists, the arbitrator shall determine the appraised or market value of the property that is the subject of the RBA.(c) Special appraisal. If the arbitrator determines the property qualifies for special appraisal under Tax Code, Chapter 23, Subchapter B, C, D, E, or H, the statutory provisions regarding special appraisal, and the comptroller's rules and policies, including the comptroller's special appraisal manuals, must be followed in making the appraised value determination.(d) Determination of value of residential homestead. If the arbitrator determines that a residence homestead's appraised value is less than its market value due to the appraised value limitation required by Tax Code, §23.23, the appraised value may not be changed unless:(1) the arbitrator determines that the formula for calculating the appraised value of the property under Tax Code, §23.23 was incorrectly applied, and the change correctly applies the formula;(2) the calculation of the appraised value of the property reflected in the ARB order includes an amount attributable to new improvements, and the change reflects the arbitrator's determination of the value contributed by the new improvements; or(3) the arbitrator determines that the market value of the property is less than the appraised value indicated on the ARB order, and the change reduces the appraised value to the market value determined by the arbitrator.(e) Arbitrator's award. Within 20 calendar days after the conclusion of the arbitration hearing, the arbitrator shall render a determination and issue the RBA award on the online arbitration system. The arbitrator shall deliver a copy of the RBA award by regular first-class mail to any property owner not participating in the online arbitration system.(f) No appeal of RBA award. An RBA award is final and may not be appealed except as permitted under Civil Practice and Remedies Code, §171.088, and may be enforced in the manner provided by Civil Practice and Remedies Code, Chapter 171, Subchapter D.",
            "sourceNote": "Source Note: The provisions of this §9.4245 adopted to be effective April 16, 2024, 49 TexReg 2313."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217876&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217876",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4246",
                "label": "Correction of Appraisal Roll"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217877&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217877",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The chief appraiser shall correct the appraised or market value, as applicable, of the property as shown on the appraisal roll to reflect the RBA award only where the arbitrator's value is lower than the value determined by the ARB.",
            "sourceNote": "Source Note: The provisions of this §9.4246 adopted to be effective April 16, 2024, 49 TexReg 2313."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217877&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217877",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4247",
                "label": "Payment of Arbitrator Fees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217882&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217882",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Amount of arbitrator fee. The arbitrator fee for RBA shall not exceed the applicable amount specified in Tax Code, §41A.06(b)(4).(b) Processing of arbitrator fees. Payment of arbitrator fees shall be processed in accordance with §9.4209 of this title and as follows:(1) If the arbitrator determines that the appraised or market value, as applicable, of the property that is the subject of the appeal is nearer to the property owner's opinion of value as stated in the request for RBA than the value reflected in the ARB order, the comptroller shall refund the property owner's arbitration deposit. In this case, the appraisal district, on receipt of a copy of the RBA award, shall pay the arbitrator fee. Payments shall be made outside of the online arbitration system.(2) If the arbitrator determines that the appraised or market value, as applicable, of the property that is the subject of the appeal is not nearer to the property owner's opinion of value as stated in the request for RBA than the value reflected in the ARB order, the comptroller shall pay the arbitrator fee out of the property owner's deposit.(3) If the arbitrator determines that the appraised or market value, as applicable, of the property that is the subject of the appeal is exactly one-half of the difference in value between the property owner's opinion of value of the property as stated in the request for RBA and the ARB order, the comptroller shall process payment of the arbitrator fee and arbitration deposit pursuant to paragraph (2) of this subsection.",
            "sourceNote": "Source Note: The provisions of this §9.4247 adopted to be effective April 16, 2024, 49 TexReg 2313."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217882&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217882",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4260",
                "label": "Qualification for Inclusion in Comptroller's Registry of Arbitrators"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217880&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217880",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Inclusion in the registry. To qualify for inclusion in the registry of arbitrators and continue to be included in the registry, an individual must meet the requirements of this section.(b) Residency requirement.(1) An individual must reside in the state of Texas. An individual who has been granted a residence homestead exemption on property they own and occupy in Texas satisfies the residency requirement.(2) An individual does not qualify for inclusion in the registry of arbitrators if the individual has been granted a residence homestead exemption in another state or has been granted more than one such exemption.(3) If an individual owns no property for which a residence homestead exemption has been granted in any state, the individual's residence will be considered the state of Texas if the individual lives in a residential property in Texas more than 50 percent of the individual's time.(4) Falsely claiming to reside in Texas will result in the immediate removal of the individual from the registry and the reporting of this misconduct to the individual's professional licensing or certification board or regulatory authority.(c) Professional qualifications. To qualify to serve as an arbitrator, an individual must meet the requirements described in Tax Code, §41A.06(b), including the following requirements:(1) The individual must have completed the comptroller's courses for training and education of ARB members established under Tax Code, §5.041(a) and (e-1), and for the training and education of arbitrators established under Tax Code, §5.043, and be issued a certificate indicating completion of each course prior to applying to the registry.(2) Individuals in any one of the occupations specified in Tax Code, §41A.06(b)(1)(B)(ii), must:(A) have completed at least 30 hours of training described in Tax Code, §41A.06(B)(i), of which no more than three hours may be self-study or homework; and(B) hold a current and continually active license in one of the occupations specified in Tax Code, §41A.06(b)(1)(B)(ii), during the five years preceding the application submission date.(d) Disqualifying Employment. An individual does not qualify for inclusion in the registry of arbitrators during any period in which the individual holds any one of the following positions in this state:(1) member of a board of directors of any appraisal district;(2) member of any appraisal review board;(3) employee, contractor, or officer of any appraisal district;(4) employee of the comptroller; or(5) member of a governing body, officer, or supervisory or managerial employee of any taxing unit.",
            "sourceNote": "Source Note: The provisions of this §9.4260 adopted to be effective April 16, 2024, 49 TexReg 2317."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217880&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217880",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4261",
                "label": "Application Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217881&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217881",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Application submission. Individuals who wish to be included in the registry of arbitrators shall submit their applications through the online arbitration system or, if the online arbitration system is not available, by mailing or emailing the application form to the address specified by the comptroller.(b) Attestation. By submitting the application and documentation required, the applicant attests that the applicant:(1) principally resides in the state of Texas in the county identified;(2) meets all of the qualifications required under §9.4260 of this title;(3) has read and understands the provisions of this subchapter and Tax Code, Title 1 (Property Tax Code);(4) will conduct all arbitrations under the terms of Tax Code, Chapter 41A, and this subchapter, as applicable;(5) will perform these arbitration services for the applicable fee specified in Tax Code, §41A.015(p)(2) or §41A.06(b)(4), as applicable; and(6) will update the arbitrator's registry profile on the online arbitration system to notify the comptroller of any change in the arbitrator's registry profile, including any change in qualifications, eligibility, contact information, or any material change regarding information provided in the application, within 10 calendar days of the change.(c) Denial of application. The comptroller shall deny an application if the applicant does not meet all of the requirements of §9.4260 of this title or if the division director, in the exercise of the division director's discretion, determines inclusion of the applicant in the registry would not be in the interest of impartial arbitration proceedings.(d) Approval of application. If the application is approved, the applicant's name, county of residence in Texas, and other pertinent information will be added to the registry.(e) Notification to applicant. The comptroller must notify the applicant of the approval or denial of the application as soon as practicable and, for a denial, must provide a brief explanation of the reason(s) for the denial.(f) Update of registry. The registry will be updated within 30 calendar days of the date the comptroller approves and processes the application.(g) Registry disclaimers. Inclusion of an arbitrator in the registry is not and shall not be construed as a representation by the comptroller that all information provided by the applicant is true and correct and shall not be construed or represented as a professional endorsement.",
            "sourceNote": "Source Note: The provisions of this §9.4261 adopted to be effective April 16, 2024, 49 TexReg 2317."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217881&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217881",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4262",
                "label": "Renewal Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217884&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217884",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "For an arbitrator to continue to qualify for inclusion in the registry, the arbitrator must:(1) complete and submit the renewal form through the online arbitration system or, if the online arbitration system is not available, by mailing or emailing the renewal form to the address specified by the comptroller, on or before:(A) each renewal date of the applicant's license or certification under which the applicant was qualified previously under §9.4260 of this title; or(B) the second anniversary of the date the arbitrator was initially added to the registry or the arbitrator's listing on the registry was renewed;(2) continue to meet the requirements in §9.4260 of this title;(3) have no history of failure to comply with this subchapter;(4) have completed during the preceding two years at least eight hours of continuing education in arbitration and alternative dispute resolution procedures offered by a university, college, or legal or real estate trade association. This continuing education requirement may be satisfied by submission of documentation that the arbitrator attended or taught personally at least eight hours of one or more training courses that meet the requirements of this paragraph;(5) complete a revised comptroller training program on property tax law for the training and education of arbitrators established under Tax Code, §5.043, not later than the 120th day after the date the program is available to be taken if the comptroller:(A) revises the program after the individual is included in the registry; and(B) determines that the program is substantially revised.",
            "sourceNote": "Source Note: The provisions of this §9.4262 adopted to be effective April 16, 2024, 49 TexReg 2317."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217884&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217884",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4263",
                "label": "Arbitrator Eligibility for Appointment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217885&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217885",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Eligibility for appointment. To be eligible for appointment as an arbitrator to a particular arbitration proceeding, an arbitrator must satisfy the requirements of this section.(b) Engaging in activities in county's appraisal district. An arbitrator is ineligible for and shall not accept any appointment in a county in which the property that is the subject of the arbitration is located, if at any time during the two years preceding the appointment at issue, the arbitrator has engaged in the following activities in that county's appraisal district:(1) represented any person or entity for compensation, or served as an officer or employee of any firm, company, or other organization that has represented another person or entity for compensation, in any proceeding under Tax Code, Title 1 (Property Tax Code);(2) served as an officer or employee of the appraisal district; or(3) served as a member of the appraisal review board for the appraisal district.(c) Duration of proceeding. For purposes of subsection (b)(1) of this section, a proceeding under Tax Code, Title 1 (Property Tax Code), begins with the filing of a notice of protest and includes communications with appraisal district employees regarding a matter under protest, protest settlement negotiations, any appearance at an ARB hearing, any involvement in a binding arbitration under Tax Code, Chapter 41A, and any involvement at either the district court or appellate court level of an appeal pursued under Tax Code, Chapter 42.(d) Family relationships. An arbitrator is ineligible for and shall not accept an appointment to any arbitration in which the arbitrator is related by affinity within the second degree or by consanguinity within the third degree as determined under Government Code, Chapter 573, to any of the following individuals:(1) the property owner or the property owner's agent;(2) an officer, employee, or contractor of the appraisal district responsible for appraising the property at issue;(3) a member of the board of directors of the appraisal district responsible for appraising the property at issue; or(4) a member of the ARB in the area in which the property at issue is located.(e) Business relationships. An arbitrator is ineligible for and shall not accept an appointment to any arbitration in which the arbitrator currently or during the previous two years has had a business relationship with the property owner, the property owner's agent, the ARB, or the appraisal district involved in that particular arbitration.(f) Other conflicts of interest. An arbitrator is ineligible for and shall not accept an appointment to any arbitration in which the arbitrator knows of any other conflict of interest that has not been previously described above.",
            "sourceNote": "Source Note: The provisions of this §9.4263 adopted to be effective April 16, 2024, 49 TexReg 2317."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217885&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217885",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4264",
                "label": "Arbitrator Responsibility for Registry Profile"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217883&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217883",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Registry profile updates. Each arbitrator included in the registry of arbitrators is required to update the arbitrator's registry profile on the online arbitration system to notify the comptroller of any changes in contact information, including address, phone number, and email address, and any material change in the information provided in the arbitrator's application, qualifications, or eligibility for appointment, within 10 calendar days of the change. A material change includes loss of required licensure, incapacity, ineligibility, a change in county of residence. or other conditions that would prevent the individual from lawfully and professionally performing the arbitrator's arbitration duties. Once the arbitrator has submitted registry profile updates, the arbitrator will be notified that, pending review, the arbitrator will not be able to modify active cases on the online arbitration system or receive new appointments.(b) Eligible to resume active status. If the information provided in the profile updates do not cause the arbitrator to be disqualified, the comptroller will return the arbitrator to active status, and the arbitrator will be able to access arbitration functions in the online arbitration system and receive new appointments.(c) Ineligible to complete active cases. If any of the information provided in profile updates causes the arbitrator to be ineligible to act as an arbitrator in one or more of the arbitrator's active cases, the comptroller will reassign affected cases to an eligible arbitrator.(d) Request for additional information. If the comptroller requires additional information, the comptroller shall notify the arbitrator of the information needed. Once the arbitrator submits the information needed, the comptroller will complete the review.(e) Removal of arbitrator. Failure of the arbitrator to report a material change in the arbitrator's registry profile, or information provided in profile updates that cause the arbitrator to be disqualified, may result in the removal of the arbitrator from the registry upon its discovery and the denial of future applications for inclusion in the registry. An arbitrator's failure to report a material change as required by this section shall not affect the determinations and awards made by the arbitrator during the period that the arbitrator is listed in active status in the registry.",
            "sourceNote": "Source Note: The provisions of this §9.4264 adopted to be effective April 16, 2024, 49 TexReg 2317."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217883&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217883",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "K",
                "label": "ARBITRATION OF APPRAISAL REVIEW BOARD DETERMINATIONS"
            },
            "rule": {
                "number": "§9.4265",
                "label": "Disciplinary Action"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205581&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "205581",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Disciplinary action generally. The comptroller is authorized to remove an arbitrator from the registry or, in the comptroller's discretion, to render lesser disciplinary actions including warnings, restriction of arbitrator eligibility for certain counties, or removal from individual arbitrations.(b) Disciplinary history. The determination to discipline may be based solely on the information or complaint at issue or on a combination of the information or complaint and the arbitrator's disciplinary history.(c) Good cause for removal. Good cause for removal includes the following grounds:(1) the individual engaged in repeated instances of bias or misconduct while acting as an arbitrator;(2) the individual engaged in fraudulent conduct;(3) the individual is disqualified or becomes disqualified under §9.4260 of this title;(4) the individual accepts a case in violation of §9.4263 of this title;(5) the individual violates §9.4212 or §9.4264 of this title while acting as an arbitrator;(6) the individual fails or declines to renew the agreement to serve as an arbitrator in the manner required under §9.4262 of this title; or(7) the comptroller finds that inclusion of the applicant in the arbitration registry would not be in the interest of impartial arbitration proceedings.(d) Disciplinary discretion. The comptroller may take appropriate disciplinary action where the comptroller finds clear and convincing evidence of a violation, even if that violation does not rise to the level of good cause to justify removal under subsection (c) of this section. In determining the level of discipline, the comptroller may consider not only the complaint at issue, but any disciplinary history in the arbitrator's file. Good cause for disciplinary action includes the following grounds:(1) the individual is disqualified or becomes disqualified under §9.4262 of this title;(2) the individual fails to respond to or refuses to comply with communications and requests for information from the comptroller's office by the deadline established in the communication; or(3) the individual has violated one or more provisions of this subchapter.(e) Clear and convincing evidence. For purposes of this section, clear and convincing evidence means the measure or degree of proof that produces a firm belief or conviction of the truth of the allegations regarding the arbitrator.(f) Filing a complaint. An individual may file a complaint concerning an arbitrator with the comptroller within 60 calendar days of the last incident giving rise to the complaint. The complaint must contain the following items:(1) a letter, addressed to the division director and signed by the requestor, that identifies the arbitrator complained of and the alleged grounds for removal or discipline;(2) for grounds for removal under subsection (c) of this section, at least one affidavit or unsworn declaration meeting the requirements of Civil Practice and Remedies Code, §132.001, from an individual with first-hand knowledge of the alleged conduct that supports the complaint; and(3) as applicable, copies of all available communications exchanged between the arbitrator and the parties, including emails, documents, and any other materials, such as video or audio recordings, that support the complaint.(g) Confidentiality. Information reviewed under this section that is made confidential by law may not be disclosed except as provided by law. That portion of the materials considered confidential must be designated as such to protect it from disclosure.(h) Dismissal. Complaints shall be dismissed under the following conditions:(1) the conduct complained of does not meet the requirements of this section;(2) the complaint is not timely or otherwise fails to meet the requirements of subsection (f) of this section; or(3) the complaint is based on one or more substantive arbitration issues, including evidentiary considerations and the resulting award.(i) Initial review of complaints. Within 30 calendar days after submission of a complaint under this section, the comptroller shall notify the complainant whether the complaint is under review or dismissed. The dismissal of a complaint is final and may not be appealed. If the complaint is under review, all materials the complainant submitted will be forwarded electronically, by U.S. Postal Service, or by a private third-party service such as FedEx or United Parcel Service (UPS), as long as proof of delivery is provided, to the arbitrator who is the subject of the complaint for a response.(j) Arbitrator response. The arbitrator has 30 calendar days from delivery of the materials to respond to the comptroller, explaining why a finding of good cause should not be made.(k) Post-response review and determination. Within 30 calendar days after receipt of the arbitrator's response, the comptroller shall determine whether clear and convincing evidence supports a finding of good cause for removal of the arbitrator from the registry or disciplinary action. The comptroller shall promptly notify the complainant and the arbitrator of the comptroller's determination.(l) Removal or disciplinary action. If good cause for removal of the arbitrator from the registry under subsection (c) of this section is found, the arbitrator shall be removed from the registry for a period of two years from the date of the determination. If, in the comptroller's discretion, clear and convincing evidence of a violation is established, however, after reviewing the violation and the arbitrator's file, the comptroller does not find it rises to the level of good cause for removal, the comptroller may issue disciplinary action. Prior disciplinary action may be considered in future complaints. If there is neither good cause for removal nor clear and convincing evidence of a violation, no disciplinary action will be taken.(m) No appeal. The comptroller's determination and a removal or disciplinary action is final and may not be appealed. An arbitrator removed from the registry under subsection (c) of this section may reapply for inclusion in the registry two years after the date of the removal determination. The circumstances giving rise to the removal under this section may be considered in evaluating the reapplication.(n) No effect on determinations and awards. Any disciplinary action taken shall not affect the determinations and awards made by the arbitrator during the period that the arbitrator is listed in active status in the registry.",
            "sourceNote": "Source Note: The provisions of this §9.4265 adopted to be effective April 16, 2024, 49 TexReg 2317."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205581&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "205581",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "L",
                "label": "PROCEDURES FOR PROTESTING COMPTROLLER PROPERTY VALUE STUDY AND AUDIT FINDINGS"
            },
            "rule": {
                "number": "§9.4301",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205582&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "205582",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Agent--A duly authorized individual designated to act as agent on behalf of the petitioner in a protest of the comptroller's findings in compliance with this subchapter.(2) ALJ--An Administrative Law Judge employed by the State Office of Administrative Hearings.(3) Clerical error--A numerical error, specific to a school district, that is or results from a mistake or failure in writing, copying, transcribing, entering or retrieving computer data, computing, or calculating. In this subchapter, \"clerical error\" does not include an error that is or results from a mistake in judgment or reasoning. In this subchapter, \"clerical error\" does not include any claim regarding the conduct of the study as prescribed by §9.101 of this title (relating to Conduct of the Property Value Study).(4) Comptroller--The Texas Comptroller of Public Accounts and employees and designees of the Comptroller.(5) Division--The Property Tax Assistance Division of the Texas Comptroller of Public Accounts.(6) Division director--The director of the Property Tax Assistance Division or their designee.(7) Eligible property owner--A property owner in a school district or school district split whose property is included in the study conducted by the comptroller under Government Code, §403.302 and whose tax liability on such property is $100,000 or more.(8) Findings--The preliminary findings certified to the commissioner of education under Government Code, §403.302(g) or the findings of an audit certified to the commissioner of education under Government Code, §403.302(h).(9) Petition--The documents consisting of three parts, Part A (Form 50-210-a), Part B (Form 50-210-b) and Part C (Form 50-210-c), submitted by a petitioner in accordance with this subchapter to initiate a protest of the comptroller's findings under Government Code, §403.302(g) or (h).(10) Petitioner--A school district or eligible property owner who submits a petition in accordance with this subchapter to protest the comptroller's findings certified under Government Code, §403.302(g) or (h).(11) School district split--The portion of a school district located within the jurisdictional boundaries of a single appraisal district if the school district boundaries overlap the jurisdictional boundaries of two or more appraisal districts. As used in this subchapter, unless the context clearly indicates otherwise, \"school district\" means an applicable school district split for a school district with boundaries overlapping the jurisdictional boundaries of two or more appraisal districts.(12) SOAH--The State Office of Administrative Hearings.(13) Value determination--A determination made by the division and utilized by the division to reach a finding of market value for an individual property, or in the case of property in Category J an individual company, or in the case of property in category D the land's productivity value.",
            "sourceNote": "Source Note: The provisions of this §9.4301 adopted to be effective July 19, 2021, 46 TexReg 4358."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205582&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "205582",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "L",
                "label": "PROCEDURES FOR PROTESTING COMPTROLLER PROPERTY VALUE STUDY AND AUDIT FINDINGS"
            },
            "rule": {
                "number": "§9.4302",
                "label": "General Provisions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205583&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "205583",
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            "ruleBody": "(a) Scope of rules. The rules in this subchapter shall govern the procedures for submitting a petition initiating a protest of the comptroller's findings under Government Code, §403.302(g) or (h) and the conduct of protest hearings and the filing of exceptions and replies to exceptions for proposals for decision. The Texas Administrative Procedures Act, the Texas Rules of Civil Procedure, the Texas Rules of Evidence, and the State Office of Administrative Hearings (SOAH) procedural rules do not apply to protests of the comptroller's findings conducted pursuant to Government Code, §403.303. Nothing in this subsection shall preclude general application by a SOAH Administrative Law Judge of evidentiary principles addressed in the Texas Rules of Evidence as an advisory tool in making evidentiary determinations in protests of the comptroller's findings conducted pursuant to Government Code, §403.303.(b) Construction. Unless otherwise provided, this subchapter shall be construed as provided by the Code Construction Act, Government Code, Chapter 311.(c) Computation of time. In computing a period of time prescribed or allowed by the rules in this subchapter, the first day is excluded and the last day is included. If the last day of any period is a Saturday, Sunday, or Texas state or federal holiday on which the comptroller's office is closed, the period is extended to include the next day that is not a Saturday, Sunday, or Texas state or federal holiday on which the comptroller's office is closed.(d) Submitting and serving documents.(1) Unless otherwise provided, every document relating to a protest including, but not limited to, a petition, shall be delivered to the division director by one of the following methods:(A) Hand delivery to the attention of the Director, Property Tax Assistance Division, delivered to 1711 San Jacinto, 3rd Floor, Austin, Texas 78701.(i) A petition delivered to the division director by hand delivery is timely submitted only if it is physically received by the division director on or before 5:00 p.m. CST on the 40th day after the date on which the comptroller's preliminary findings are certified to the commissioner of education.(ii) Division reserves the right to require delivery by a method other than hand delivery if physical receipt by the division is not practicable.(B) United States Postal Service regular first-class mail or common or contract carrier, in a properly addressed and sufficiently stamped envelope or package, addressed to Director, Property Tax Assistance Division, 1711 San Jacinto, 3rd Floor, Austin, Texas 78701.(i) A petition delivered to the division director by regular first class mail is timely submitted if it bears a post office cancellation mark indicting a date not later than the 40th day after the date on which the comptroller's preliminary findings are certified to the commissioner of education and is physically received by the division director not later than the 47th day after the date the comptroller's preliminary findings are certified to the commissioner of education.(ii) A petition delivered to the division director by common or contract carrier is timely submitted if it bears a receipt mark indicating a date not later than the 40th day after the date on which the comptroller's preliminary findings are certified to the commissioner of education and is physically received by the division director not later than the 47th day after the date the comptroller's preliminary findings are certified to the commissioner of education.(C) Electronic mail (email) sent to PTAD.Appeals@cpa.texas.gov. Delivery by email will only be accepted if all documents being delivered by email are attached in Microsoft Word® or portable document format (pdf) compatible with the latest version of Adobe Acrobat® in a file size that can be accommodated by the division's computer system at the time of delivery. A petition delivered to the division director by electronic mail is timely submitted if all emails and documents attached to emails, including the petition, are received by the division not later than the 40th day after the date on which the comptroller's preliminary findings are certified to the commissioner of education.(D) Electronic files sent by comptroller file transfer protocol (FTP) or ad hoc reporting website. Delivery by FTP or ad hoc reporting website will only be accepted if requested by email sent to PTAD.Appeals@cpa.texas.gov before 4:00 p.m. CST on the 40th day after the date on which the comptroller's preliminary findings are certified to the commissioner of education. All documents being delivered by FTP or ad hoc reporting website must be in Microsoft Word® or portable document format (pdf) compatible with the latest version of Adobe Acrobat® in a file size that can be accommodated by the division's system at the time of delivery. A petition delivered to the division director by FTP or ad hoc reporting website is timely submitted if all documents, including the petition, are received by the division not later than the 40th day after the date on which the comptroller's preliminary findings are certified to the commissioner of education.(2) The petitioner is responsible for verifying receipt by the division of all documents delivered regardless of the method of delivery. A petitioner shall have the burden to prove a document was timely filed.(3) All documents delivered to the division director, regardless of method of service, must be legible.(4) Except as otherwise expressly provided in this subchapter, the division may deliver written correspondence and other documents to a petitioner by hand delivery, United States Postal Service regular first-class mail, common or contract carrier, or email.(5) All information contained in documents submitted to the division that is confidential by law must be marked as confidential. Multi-page documents that are confidential in their entirety must be marked as confidential on each page. By filing a protest, the petitioner certifies that all confidential information submitted to the division has been clearly identified as confidential.(e) Designation and Authority of Agents. By signing the petition, the superintendent of a protesting school district, or a protesting eligible property owner, represents to the division that the agent designated in the petition is duly authorized under the laws of the State of Texas to act on behalf of the petitioner. Except as otherwise provided in this subsection, a petitioner may designate only one agent per protest.(1) The agent must be authorized to perform the following activities on behalf of petitioner:(A) receive all notices, orders, decisions, exceptions, replies to exceptions, and any other communications regarding the petitioner's protest;(B) resolve any matter raised in petitioner's protest; and(C) argue and present evidence at any hearing on petitioner's protest.(2) A chief appraiser or other employee of an appraisal district that appraises property for a school district protesting the comptroller's property value study findings may not be designated as the agent for the protesting school district unless:(A) the governing body of the appraisal district authorizes the chief appraiser or other employee of the appraisal district to act as agent for the protesting school district;(B) the governing body of the protesting school district authorizes the chief appraiser or other employee of the appraisal district to act as agent for the school district; and(C) the superintendent of the protesting school district signs the petition representing that the chief appraiser or other employee of the appraisal district has been properly authorized pursuant to this subchapter and the laws of the State of Texas to act as agent for the school district.(3) The designation of a new agent will automatically revoke the agency of the prior agent for purposes of protesting the comptroller's findings pursuant to Government Code, §403.303.(4) Nothing in this subchapter shall be construed to prevent the chief appraiser or other employee of the appraisal district that appraises property for a school district protesting the study from acting as a witness or consultant for the protesting school district.(5) Nothing in this subchapter shall be construed to prevent or limit a petitioner from being represented by an attorney or attorneys admitted to practice law in the State of Texas.(f) Limitations on Number of Petitions. A petitioner is limited to one petition to protest property value study findings, except that a petitioner may file a separate petition solely to address self-report corrections pursuant to §9.4308(i) of this title (relating to Contents of Petition).(1) If a petitioner files one petition to protest property value study findings and a separate petition to address self-report corrections pursuant to §9.4308(i) of this title, the petitioner may designate different agents for each petition.(2) If a petitioner files one petition to protest both property value study findings and to address self-report corrections pursuant to §9.4308(i) of this title, the petitioner may designate only one agent for the petition.(g) Except as otherwise provided in this subchapter, the division director has independent discretion to impose deadlines and schedule hearing dates as reasonable or necessary to timely and efficiently manage the protest process.",
            "sourceNote": "Source Note: The provisions of this §9.4302 adopted to be effective July 19, 2021, 46 TexReg 4358."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205583&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "205583",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "L",
                "label": "PROCEDURES FOR PROTESTING COMPTROLLER PROPERTY VALUE STUDY AND AUDIT FINDINGS"
            },
            "rule": {
                "number": "§9.4303",
                "label": "Changes in Preliminary Certification of Findings"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205584&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "205584",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) At any time before the date on which the final taxable value of each school district is certified to the commissioner of education under Government Code, §403.302(j), the comptroller may certify amended preliminary findings to the commissioner of education under Government Code, §403.302(g).(b) If the comptroller amends preliminary findings for all school districts in a study, eligible school districts and eligible property owners may protest the amended preliminary findings in the manner required by this subchapter. A petition protesting the comptroller's amended preliminary findings must be filed within 40 calendar days after the date the comptroller certifies the amended preliminary findings to the commissioner of education.(c) If the comptroller amends preliminary findings for a singular school district in a study, the affected school district and eligible property owners within that school district may protest the amended preliminary findings in the manner required by this subchapter. A petition protesting the comptroller's amended preliminary findings pursuant to this subsection must be filed within 40 calendar days after the date the comptroller certifies the amended preliminary findings to the commissioner of education.(d) In addition to the restrictions stated in this section, all provisions in this subchapter relating to standing apply to protests of amended preliminary findings.",
            "sourceNote": "Source Note: The provisions of this §9.4303 adopted to be effective July 19, 2021, 46 TexReg 4358."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205584&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
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            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "L",
                "label": "PROCEDURES FOR PROTESTING COMPTROLLER PROPERTY VALUE STUDY AND AUDIT FINDINGS"
            },
            "rule": {
                "number": "§9.4304",
                "label": "Extensions of Time"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205585&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "205585",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) At any time before a referral to SOAH, a petitioner may request an extension of time for any deadline, except the deadline to file a petition, by submitting a request for extension to the division director.(b) A request for an extension of time must be submitted in writing and received by the division director at least five calendar days in advance of the original deadline for which the extension is requested. If requested in writing by the petitioner and for good cause shown, the division director may waive the requirement that the request for the extension be made five calendar days in advance of the deadline.(c) A request for an extension of time must be for good cause shown. Good cause does not include petitioner's neglect, indifference, or lack of diligence. Good cause does not include a claim that the time periods established in this subchapter are insufficient.(d) An extension of time under this section may not extend the deadline for more than ten calendar days.",
            "sourceNote": "Source Note: The provisions of this §9.4304 adopted to be effective July 19, 2021, 46 TexReg 4358."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205585&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "205585",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "L",
                "label": "PROCEDURES FOR PROTESTING COMPTROLLER PROPERTY VALUE STUDY AND AUDIT FINDINGS"
            },
            "rule": {
                "number": "§9.4305",
                "label": "Who May Protest"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205586&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "205586",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A school district may protest the comptroller's preliminary findings certified under Government Code, §403.302(g).(b) A school district may protest the comptroller's certified findings of an audit conducted under Government Code, §403.302(h).(c) A property owner eligible under Government Code, §403.303(a) may protest the comptroller's preliminary findings certified under Government Code, §403.302(g).(d) An eligible property owner in a school district may protest the comptroller's certified findings of an audit conducted under Government Code, §403.302(h).(e) A petition submitted by a property owner will not be considered for any purposes to be a protest filed by a school district.(f) Self-report corrections. A school district may seek correction of an error in the comptroller's preliminary findings certified under Government Code, §403.302(g) caused by an error in the school district's annual report of property value, by a clerical error in a district's local value made by the division, or by a correction or change in a school district's appraisal roll that occurred before the preliminary certification of the study findings by timely filing a self-report correction pursuant to §9.4308(i) of this title (relating to Contents of Petition).(g) No petition initiating a protest of the comptroller's preliminary findings published under Government Code, §403.302(g), other than self-report corrections submitted pursuant to §9.4308(i) of this title, may be filed by any party in a school district in a year in which a study is not conducted.",
            "sourceNote": "Source Note: The provisions of this §9.4305 adopted to be effective July 19, 2021, 46 TexReg 4358."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205586&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "205586",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "L",
                "label": "PROCEDURES FOR PROTESTING COMPTROLLER PROPERTY VALUE STUDY AND AUDIT FINDINGS"
            },
            "rule": {
                "number": "§9.4306",
                "label": "Filing a Petition Initiating a Protest"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205587&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "205587",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A protest under Government Code, §403.303(a) shall be initiated by timely filing a petition with the division.(1) A petition initiating a protest of the comptroller's preliminary findings must be submitted not later than the 40th day after the date on which the comptroller's findings are certified to the commissioner of education under Government Code, §403.302(g).(2) A petition initiating a protest of the comptroller's findings under Government Code, §403.302(h) must be filed not later than the 40th day after the date on which the comptroller's findings are certified to the commissioner of education under Government Code, §403.302(h).(b) A petition must be signed by:(1) the superintendent of the school district, if it is a petition filed by a school district, and the school district's duly authorized designated agent, if the school district designates an agent; or(2) the property owner, if it is a petition filed by a property owner and the property owner's duly authorized designated agent, if the property owner designates an agent.",
            "sourceNote": "Source Note: The provisions of this §9.4306 adopted to be effective July 19, 2021, 46 TexReg 4358."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205587&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "205587",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "L",
                "label": "PROCEDURES FOR PROTESTING COMPTROLLER PROPERTY VALUE STUDY AND AUDIT FINDINGS"
            },
            "rule": {
                "number": "§9.4307",
                "label": "Dismissal"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205588&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "205588",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A protest shall be dismissed if there is any jurisdictional defect in submission of the petition. If a petition is filed and there is a jurisdictional defect, the division may file a motion to dismiss with the State Office of Administrative Hearings (SOAH) and a request to docket. Following receipt of the request to docket, SOAH shall assign the case a docket number and assign an Administrative Law Judge (ALJ). On the same date as the date the division files the motion to dismiss with SOAH, the division shall serve a copy of the motion to dismiss with the petitioner via hand delivery, overnight delivery service, facsimile, email or an electronic filing and service system utilized by SOAH.(b) The petitioner may file a response with SOAH no later than seven calendar days from the date the motion to dismiss is filed. On the same date the petitioner files a response to the division's motion to dismiss, petitioner shall serve a copy of the response to the division director and legal counsel for the division via hand delivery, overnight delivery service, facsimile, email or an electronic filing and service system utilized by SOAH.(c) The division will have seven calendar days from the date petitioner files a response to file a reply to the response with SOAH. On the same date the division files its reply to petitioner's response, the division shall serve a copy of the reply to the petitioner via hand delivery, overnight delivery service, facsimile, email or an electronic filing and service system utilized by SOAH.(d) Arguments shall be limited to the jurisdictional issues presented in the motion to dismiss filed with SOAH. Neither the division nor the petitioner shall be permitted to submit any additional information or evidence for consideration by the ALJ.(1) No oral hearing will be held, except upon a ruling by an ALJ pursuant to §9.4314(c) of this title (relating to Administrative Law Judge's Powers).(2) Motions for oral hearing shall be decided solely upon the written motions for oral hearing and responses, if any, submitted to the ALJ for ruling pursuant to §9.4314(c) of this title.(e) After time for the division to file a reply has expired, the assigned ALJ shall consider the motion, any timely filed response, and any timely filed reply, and no later than 14 calendar days after time for the division to file a reply has expired, issue a proposal for decision to the deputy comptroller stating the ALJ's recommendation for a final decision on the motion and the reasons for the proposed decision.(1) The ALJ's proposal for decision shall be issued to the deputy comptroller by filing the proposal for decision with the comptroller's Special Counsel for Tax Hearings via hand delivery, overnight delivery service, facsimile, email or an electronic filing and service system utilized by SOAH.(2) On the same date the ALJ issues the proposal for decision to the deputy comptroller, the ALJ shall serve a copy of the proposal for decision on all other parties via hand delivery, overnight delivery service, facsimile, email or an electronic filing and service system utilized by SOAH(f) A party to the protest may, within seven calendar days after the date the proposed final decision is served, file with the deputy comptroller exceptions to the proposal for decision.(1) Exceptions to the proposal for decision, if any, shall be filed with the deputy comptroller by filing the exceptions with the comptroller's Special Counsel for Tax Hearings via hand delivery, overnight delivery service, facsimile, or email.(2) On the same date as the date exceptions to the proposal for decision are filed, the excepting party shall serve a copy of the exceptions on all other parties via hand delivery, overnight delivery service, facsimile, or email.(g) Within seven calendar days after the exceptions are filed and served in accordance with subsection (f) of this section, all parties not filing exceptions may file replies to the exceptions with the deputy comptroller.(1) Replies to the exceptions to the proposal for decision, if any, shall be filed with the deputy comptroller by filing the replies with the comptroller's Special Counsel for Tax Hearings via hand delivery, overnight delivery service, facsimile, or email.(2) On the same date the replies to exceptions to the proposal for decision are filed with the deputy comptroller, the party filing the replies shall serve a copy of the replies to all other parties via hand delivery, overnight delivery service, facsimile, or email.(h) After considering all timely filed exceptions and timely filed replies to exceptions, the deputy comptroller shall issue a final order and, in doing so, may adopt, amend, or reject the ALJ's proposal for decision. A decision is final on the date signed by the deputy comptroller. The deputy comptroller shall deliver written notice of the final decision to each party to the protest via hand delivery, overnight delivery service, facsimile, or email.(i) The petitioner bears the burden of proof on all jurisdictional matters.(j) If a motion to dismiss is denied, the petition will be otherwise processed in accordance with this subchapter.",
            "sourceNote": "Source Note: The provisions of this §9.4307 adopted to be effective July 19, 2021, 46 TexReg 4358."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205588&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "205588",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "L",
                "label": "PROCEDURES FOR PROTESTING COMPTROLLER PROPERTY VALUE STUDY AND AUDIT FINDINGS"
            },
            "rule": {
                "number": "§9.4308",
                "label": "Contents of Petition"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205589&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "205589",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A petition shall contain the following:(1) the petitioner's name;(2) the designated agent of the petitioner, if any;(3) the mailing address of the petitioner and any designated agent for the petitioner;(4) the physical address of the petitioner and any designated agent for the petitioner;(5) the email address of the petitioner and any designated agent for the petitioner;(6) the facsimile number of the petitioner and any designated agent for the petitioner;(7) the petitioner's grounds for objection, stated with specificity on Part B of the petition and as required by this subchapter;(8) the petitioner's value claimed to be correct for each objection, stated with specificity on Part B of the petition and as required by this subchapter;(9) documentary evidence provided in Part C of the petition, organized and identified for each objection stated on Part B of the petition and as required by this subchapter;(10) the property identification stated with specificity on Part B of the petition for each objection and as required by this subchapter; and(11) all other information required to be reported on Part B of the petition.(b) To protest the comptroller's findings, a petitioner must identify inaccuracies in value determinations made by the division in the course of arriving at a value for a property, or in the case of property in Category J, a value for a company, or in the case of property in Category D, the productivity value.(1) On Part B of the petition, the petitioner shall separately list each ground for objection the petitioner contends resulted in an inaccuracy in a value determination. The grounds for objection shall be listed numerically and sequentially per property category.(2) On Part B of the petition, for each separately and sequentially listed ground for objection, the petitioner shall separately identify the property for which the petitioner asserts the ground for objection. Each property shall be separately identified by property identification number, or in the case of Category J property by company identification number, or in the case of category D property by land class.(3) On Part B of the petition, for each objection listed, the petitioner shall state the following:(A) the change sought by the objection;(B) the value determination alleged by petitioner to be inaccurate;(C) the basis of the allegation that the value determination is inaccurate;(D) the valued claimed by petitioner to be correct; and(E) the documentary evidence provided in Part C of the petition, identified by title or description, that supports the objection.(c) For purposes of this section, a value determination may include, but is not limited to:(1) a sale utilized in the study;(2) the sale's price of a property included in the study;(3) construction quality;(4) effective age;(5) percent of depreciation;(6) capitalization rate;(7) market rent;(8) expenses;(9) gross rent multiplier;(10) land value;(11) land value per acre;(12) type of lease;(13) fencing expense, and other components; or(14) other elements of an appraisal.(d) For purposes of this section, a value determination does not include:(1) the resulting ratio for a property, category or company reported by the comptroller as a finding; or(2) the final market value for a property or company, or productivity value reported by the comptroller as a finding without identifying the specific basis or underlying inaccuracy in the appraisal that causes the value to be inaccurate.(e) Multiple claims of inaccuracies in value determinations regarding the same property, company, or land class cannot be combined in the same ground for objection, but must be stated and listed as separate objections pursuant to this section.(f) Multiple properties, companies or land classes cannot be combined for the same claim of an inaccuracy in a value determination, but must be stated and listed in separate objections.(g) For each ground for objection identified on Part B of the petition, the petitioner must state on Part B of the petition, the relief sought with sufficient specificity such that the comptroller or an ALJ can grant the relief requested by making the change requested based solely on the petition.(h) All documentary evidence submitted by petitioner shall be filed in Part C of the petition, organized and separated by cover sheets, with each cover sheet clearly identifying the property category, numbered ground for objection, and the property, company or land class as reported on Part B of the petition to which the evidence corresponds. If documents are included as evidence for more than one ground for objection, the documents may be submitted only once, but all property categories, grounds for objections, and properties, companies or land classes to which the documents correspond must be identified on the cover sheet. Separate documents must be labeled as separate exhibits.(i) Self-report corrections. Self-report corrections are limited to changes in the comptroller's preliminary findings under Government Code, §403.302(g) that were caused by an error in a district's annual report of property value, by a clerical error in a district's local value made by the division, or by a correction or change in a school district's appraisal roll that occurred before the preliminary certification of the study findings. All self-report corrections must be asserted in sequentially numbered grounds for objection. Grounds for objection must be set forth by written requests and be supported by documentation as identified in this subsection.(1) To seek a self-report correction regarding changes of values reflected in the School District Report of Property Value (Form 50-108), a petitioner must identify \"SR\" as the category identification, include a written request that the preliminary findings be revised in accordance with an updated School District Report of Property Value (Form 50-108), and identify and include with the protest the following documentation: School District Report of Property Value (Form 50-108) or documentation that provides substantially the same information set forth in School District Report of Property Value (Form 50-108) with a recap that includes a breakdown of value by category, a breakdown of exemptions and other value deductions, and a breakdown by land class of agricultural and timber land acreage and value. All values reflected on the documentation that differ from the division's preliminary findings will be considered to be changes sought by way of the protest.(2) To seek a self-report correction regarding value lost due to school tax limitations, a petitioner must identify \"SR\" as the category identification, include a written request that the preliminary findings be revised in accordance with an updated Report on Value Lost Because of the School Tax Limitation on Homesteads of the Elderly/Disabled (Form 50-253), and identify and include with the protest the documentation listed in subparagraphs (A) and (B) of this paragraph. All values reflected on the documentation that differ from the division's preliminary findings will be considered to be changes sought by way of the protest.(A) Report on Value Lost Because of the School Tax Limitation on Homesteads of the Elderly/Disabled (Form 50-253) or documentation that provides substantially the same information set forth in Report on Value Lost Because of the School Tax Limitation on Homesteads of the Elderly/Disabled (Form 50-253) and with a recap, if available, showing the total appraised value of residential homesteads subject to a tax ceiling, the total dollar amount of mandatory exemptions on residence homesteads subject to a tax ceiling, the total dollar amount of local optional exemptions on residence homesteads subject to a tax ceiling, the total taxable value of residence homesteads subject to a tax ceiling, and the total actual levy on residence homesteads subject to a tax ceiling; and(B) a listing by account number in Excel®-compatible format of tax ceilings created in 2006 or a prior year and that still existed in the property value study (PVS) year, if a change or correction to such information is requested, including the year the ceiling was established, the ceiling in 2007, and the ceiling in the PVS year, if the total loss of all such combined accounts is different than that reported in the division's preliminary findings. If the total loss of all such combined accounts is not different than that reported in the division's preliminary findings, the listing identified in this subparagraph need not be submitted. This information is only required if a change or correction to such information is requested.(3) To seek a self-report correction concerning value limitations provided by Tax Code, Chapter 313, a petitioner must identify \"SR\" as the category identification, include a written request that the preliminary findings be revised in accordance with an updated Report on Value Lost Because of Value Limitations Under Tax Code, Chapter 313 (Form 50-767), and identify and include with the protest the following documentation: Report on Value Lost Because of Value Limitations Under Tax Code, Chapter 313 (Form 50-767) with a listing by account number of the market value, exemptions, and taxable value of the property subject to the value limitation. All values reflected on the documentation that differ from the division's preliminary findings will be considered to be changes sought by way of the protest.(4) To seek a self-report correction concerning value lost due to participation in tax increment financing, a petitioner must identify \"SR\" as the category identification, include a written request that the preliminary findings be revised in accordance with an updated Report on Value Lost Because of School District Participation in Tax Increment Financing (Form 50-755), and include with the protest the following documentation: Report on Value Lost Because of School District Participation in Tax Increment Financing (Form 50-755) with a listing of each property in the TIF zone identified by account number and showing the appraised and taxable value for the PVS year and appraised and taxable value for the zone's base year. All values reflected on the documentation that differ from the division's preliminary findings will be considered to be changes sought by way of the protest.(5) To seek a self-report correction concerning a change or correction in deferred taxes pursuant to Tax Code, §33.06 or §33.065, if not otherwise included in a self-report correction under paragraph (1) of this subsection, a petitioner must identify \"SR\" as the category identification, include a written request that the preliminary findings be revised in accordance with an updated listing of deferred taxes, and include with the protest a listing by account of the unpaid deferred taxes that does not include penalties or interest. All values reflected on the documentation that differ from the division's preliminary findings will be considered to be changes sought by way of the protest.(6) Notwithstanding paragraphs (1), (2), (3), (4), and (5) of this subsection, a petitioner may seek a self-report correction by identifying \"SR\" as the category identification, including a written request identifying findings sought to be revised, and identifying and including with the protest information necessary to support the requested corrections.(j) The petition must contain a statement by the school district's or property owner's authorized agent or, if no agent has been designated, by the school district superintendent or the property owner as applicable, that, to the best of the person's knowledge, the statements contained in the petition and the evidence attached to the petition are true and correct.",
            "sourceNote": "Source Note: The provisions of this §9.4308 adopted to be effective July 19, 2021, 46 TexReg 4358."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205589&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "205589",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "L",
                "label": "PROCEDURES FOR PROTESTING COMPTROLLER PROPERTY VALUE STUDY AND AUDIT FINDINGS"
            },
            "rule": {
                "number": "§9.4309",
                "label": "Insufficient Grounds for Objection"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=150398&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "150398",
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            "ruleBody": "(a) Any ground for objection that does not comply with §9.4308 of this title (relating to Contents of Petition) does not adequately specify the grounds for objection as required by Government Code, §403.303(a) and shall be rejected by the division director without further review.(b) If the division director determines that a ground for objection asserted in a petition does not comply with §9.4308 of this title, the division will notify the petitioner that the ground for objection has been rejected pursuant to this section. No additional information or evidence may be submitted by a petitioner after a determination of rejection has been made by the division director.(c) If all grounds for objection in a petition are rejected resulting in the petition being rejected in its entirety, the petitioner may request referral of the petition to SOAH for a hearing on the rejections.(1) The petitioner must request the referral to SOAH within 15 calendar days of the date the division sends petitioner notice of the rejections.(2) Upon a timely written request for referral from the petitioner, the division will file a request to docket with SOAH together with a copy of the division's notice to the petitioner that the petition has been rejected in its entirety pursuant to this subchapter.(3) Following receipt of the request to docket, SOAH shall assign the case a docket number and assign an ALJ.(A) Arguments before the ALJ shall be limited to the reasons for the rejections reported by the division to the petitioner, and the petitioner shall not be permitted to submit any additional information or evidence for consideration by the ALJ.(B) No oral hearing on the rejections shall be held, except upon a ruling by the ALJ pursuant to §9.4314(c) of this title (relating to Administrative Law Judge's Powers). Motions for oral hearing shall be decided based solely upon the written motions and replies, if any, submitted to the ALJ for ruling pursuant to §9.4314(c) of this title.(4) The ALJ shall consider the petition and make a determination as to whether each ground for objection included in the petition complies with §9.4308 of this title. A ground for objection that does not comply with §9.4308 of this title will not provide the ALJ with sufficient information to identify a specific change to the study findings.(A) If the ALJ determines that a ground for objection does not comply with §9.4308 of this title, the ALJ shall, within 14 calendar days after referral, issue a proposal for decision to reject that ground for objection.(B) If the ALJ determines that a ground for objection complies with §9.4308 of this title, the ALJ shall, within 30 calendar days after referral, issue a proposal for decision stating the ALJ's recommendation for specific changes to the study findings as to that ground for objection.(5) The ALJ shall issue a proposal for decision, stating the ALJ's reasons for the proposed decision, under this section to the deputy comptroller by filing the proposal for decision with the comptroller's Special Counsel for Tax Hearings via hand delivery, overnight delivery service, facsimile, email or an electronic filing and service system utilized by SOAH. On the same date the ALJ issues the proposal for decision to the deputy comptroller, the ALJ shall serve a copy of the proposal for decision on all other parties via hand delivery, overnight delivery service, facsimile, email or an electronic filing and service system utilized by SOAH.(6) A party to the protest that is adversely affected by the proposal for decision may, within seven calendar days after the date the proposed final decision is served, file with the deputy comptroller exceptions to the proposal for decision. To file with the deputy comptroller, exceptions must be filed with the comptroller's Special Counsel for Tax Hearings via hand delivery, overnight delivery service, facsimile, or email. On the same date as the exceptions to the proposal for decision are filed, the excepting party shall serve a copy of the exceptions with all other parties via hand delivery, overnight delivery service, facsimile, or email.(7) Within seven calendar days after the exceptions are filed and served in accordance with this subsection, all other parties may file replies to the exceptions with the deputy comptroller. To file with the deputy comptroller, replies must be filed with the comptroller's Special Counsel for Tax Hearings via hand delivery, overnight delivery service, facsimile, or email. On the same date as the replies to exceptions to the proposal for decision are filed with the deputy comptroller, the party filing the replies shall serve a copy of the replies with all other parties via hand delivery, overnight delivery service, facsimile, or email.(8) The deputy comptroller shall issue a final order and, in doing so, may adopt, amend, or reject the ALJ's proposal for decision. A decision is final on the date signed by the deputy comptroller. The deputy comptroller shall deliver written notice of the final decision to each party to the protest via hand delivery, overnight delivery service, facsimile, or email.(d) If one or more, but not all, of the grounds for objection included in the petition are rejected as set forth in this section, the grounds for objection that have not been rejected will be processed as otherwise set forth in this subchapter. After conclusion of the informal conference required in §9.4311(g) of this title (relating to Prehearing Exchanges and Informal Conference Regarding Petition), the petitioner may request referral of the rejected grounds for objections as set forth in §9.4311(i) and (j) of this title.(e) If all grounds for objection in a petition other than those that have been rejected have been finally resolved by agreement, the petitioner may request referral of rejected objections in accordance with the provisions of subsection (c) of this section applicable to a petition rejected in its entirety.",
            "sourceNote": "Source Note: The provisions of this §9.4309 adopted to be effective July 19, 2021, 46 TexReg 4358."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=150398&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "150398",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "L",
                "label": "PROCEDURES FOR PROTESTING COMPTROLLER PROPERTY VALUE STUDY AND AUDIT FINDINGS"
            },
            "rule": {
                "number": "§9.4310",
                "label": "Study and Audit Documents"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205590&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "205590",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The documents created, obtained, and utilized by the division in conducting the study or performing the audit, as applicable, are considered the initial evidence in a protest of the comptroller's findings under Government Code, §403.302(g) or (h). Except as provided in subsection (b) of this section, all such documents are deemed admissible evidence for purposes of any hearing referred to the State Office of Administrative Hearings (SOAH) under this subchapter.(b) Any documents created, obtained, and utilized by the division in conducting the study or performing the audit, as applicable, that are not made available in response to a proper request in accordance with the Texas Public Information Act are deemed, as to the division, inadmissible for purposes of any hearing referred to SOAH under this subchapter. This subsection does not restrict a petitioner's right to file such documents in support of a ground of objection as provided under this subchapter. If a petitioner does elect to file such documents, the documents will be deemed admissible evidence on each ground of protest in support of which the documents are filed for purposes of any hearing referred to SOAH under this subchapter.(c) Any claim by a petitioner that documents created, obtained, or utilized by the division in conducting the study or performing the audit, as applicable, were not made available in response to a proper request in accordance with the Texas Public Information Act shall be made by written notice to the division director within seven calendar days of delivery by the division of such documents pursuant to §9.4311(c) of this title (relating to Prehearing Exchange and Informal Conference). Petitioner's notice must include a copy of petitioner's request for documents, any response received from the division (although such response(s) need not include copies of the documents produced therewith), and identification of the specific documents petitioner claims were not made available. If petitioner fails to timely provide such written notice to the division director, the claim shall be deemed waived for purposes of the protest.(d) After receipt of timely written notice under subsection (c) of this section and consideration of petitioner's claim, the division director shall deliver to petitioner written notice as to whether or not the documents at issue will be withdrawn as evidence. If the documents at issue are not withdrawn as evidence, the matter will be determined at the SOAH hearing, if any, on the ground of protest at issue. The division director's notice will include all documentary evidence that the division will introduce and identification of all witnesses who may testify at the time of the SOAH hearing, if any, relating to petitioner's claim under subsection (c) of this section. The petitioner shall, within five calendar days of delivery of the division director's notice, deliver to the division director all documentary evidence that the petitioner will introduce and identification of all witnesses who may testify at the time of the hearing, if any, relating to petitioner's claim under subsection (c) of this section. At any SOAH hearing on petitioner's claim, both parties shall be limited to the documentary evidence delivered and witnesses disclosed under this subsection.(e) SOAH shall have jurisdiction to determine a petitioner's claim asserted under subsection (c) of this section only if the ground of protest for which the documents at issue were submitted is referred to SOAH as otherwise provided under this subchapter. The Administrative Law Judge's (ALJ's) determination shall be limited to whether or not the documents at issue are admissible.",
            "sourceNote": "Source Note: The provisions of this §9.4310 adopted to be effective January 26, 2011, 36 TexReg 268."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205590&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "205590",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "L",
                "label": "PROCEDURES FOR PROTESTING COMPTROLLER PROPERTY VALUE STUDY AND AUDIT FINDINGS"
            },
            "rule": {
                "number": "§9.4311",
                "label": "Prehearing Exchanges and Informal Conference Regarding Petition"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205591&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "205591",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) After reviewing the petition, the division will send petitioner responses to each of the petitioner's grounds for objection. The division's responses may include agreement, disagreement, disagreement with modification, or rejection as set forth in this subchapter.(1) An agreement by the division to the relief requested or the amount claimed to be correct in a ground for objection is a final resolution as to that ground for objection.(2) If at any time a response by the division results in a valid finding for a school district, the protest shall be finally resolved for the protesting school district and all eligible property owners protesting property in the school district, and there shall be no further consideration of the petitions.(b) Not later than 15 calendar days after the division delivers its responses to the petitioner, the petitioner must reply to the division utilizing Part B of the petition.(1) The petitioner's reply must either agree to all of the division's responses, thereby waiving further consideration of the petition, or notify the division as to each ground for objection the petitioner disagrees and will continue to protest.(2) A petitioner's failure to timely reply as provided in this subsection will be deemed agreement to the division's responses and will constitute final resolution of the petitioner's protest.(3) In an otherwise timely-filed reply, a petitioner's failure to indicate on Part B of the petition an agreement or disagreement to the division's response will be deemed agreement to the division's response as to the ground for objection and will constitute final resolution as to the ground for objection.(4) The petitioner may not reply to a rejection of a ground for objection. The petitioner may only request referral of the petition to SOAH for a hearing on the rejection pursuant to §9.4309 of this title (relating to Insufficient Grounds for Objection).(c) For each ground for objection with which petitioner does not agree with the division's response, petitioner must file with the division director:(1) any supplemental evidence not already submitted at the time the petition was filed, with any such supplemental evidence organized, separated and identified pursuant to §9.4308(h) of this title (relating to Contents of Petition); and(2) a written designation of witnesses who may testify at the hearing on each unresolved ground for objection with witnesses identified by name and with the professional qualifications of each identified witness.(d) All documents required pursuant to subsection (c) of this section must be filed with, and at the same time as, petitioner's reply submitted under subsection (b) of this section.(e) Within 15 calendar days after receipt of petitioner's reply and supplemental evidence, if any, the division shall:(1) supplement the documents created, collected, and utilized by the division in conducting the study or performing the audit, as applicable, including any rebuttal evidence regarding each ground for objection to which petitioner has not agreed; and(2) provide a written designation of witnesses who may testify at the hearing on each unresolved ground for objection, with witnesses identified by name and with the professional qualifications of each witness identified.(f) For purposes of this subchapter, employees of the division and the chief appraiser of the appraisal district that appraised property for a protesting school district, as well as employees of the chief appraiser appraising property for the protesting school district employed pursuant to Tax Code, § 6.05(d), are deemed qualified to testify as witnesses.(g) The division will either provide notice of the date, time, and place of an informal conference regarding the petition to be held for consideration of petitioner's remaining grounds for objection, or the division may provide the petitioner with revised recommendations to the division's initial responses for any unresolved grounds for objections.(1) No later than seven calendar days after being provided the division's revised recommendations, a petitioner may agree to the division's revised recommendations, and waive further consideration of the petition, thereby finally disposing of the protest, or request an informal conference be held for consideration of petitioner's remaining grounds for objection.(2) Notwithstanding the referral of rejections to SOAH under §9.4309 of this title, appearance and participation in an informal conference regarding the petition is a jurisdictional prerequisite for referral of grounds for objection to SOAH for hearing.(3) Failure to appear in the scheduled informal conference will be deemed agreement by the petitioner to the division's recommendations or revised recommendations, constitute final resolution and waive further consideration of petitioner's petition, thereby finally disposing of the protest.(4) Notice under this subsection will be made by U.S. first class mail, overnight delivery service, facsimile, or email.(h) If the division has identified any failure of petitioner to properly comply with the requirements of labeling and organizing evidence, at the time of the informal conference the petitioner will be notified of such failure and given the opportunity to correct such failure through identification of evidence that was intended to correspond to grounds for objection that remain unresolved and subject to referral to SOAH. This subsection does not permit a petitioner to submit any additional information, documentation, or evidence.(i) After completing the informal conference, the petitioner may request a referral for a hearing before a SOAH Administrative Law Judge (ALJ) for all remaining unresolved grounds for objection submitted on Part B of the petition.(j) A petitioner's request for a referral to SOAH for a hearing on the unresolved grounds for objection shall be made by filing a written request with the division director no later than seven calendar days after the informal conference.(1) The petitioner's written request must specifically identify each ground for objection for which the referral is requested by numbered objection as reported on Part B of the petition.(2) The petitioner's written request must identify the individuals who will present argument and introduce evidence on behalf of the petitioner before SOAH.",
            "sourceNote": "Source Note: The provisions of this §9.4311 adopted to be effective July 19, 2021, 46 TexReg 4358."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205591&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "205591",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "L",
                "label": "PROCEDURES FOR PROTESTING COMPTROLLER PROPERTY VALUE STUDY AND AUDIT FINDINGS"
            },
            "rule": {
                "number": "§9.4312",
                "label": "Scheduling a Protest Hearing"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205592&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "205592",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Referral of any matter to SOAH may only be made by the division.(b) Subsequent to receiving a valid request for a referral from a petitioner under §9.4311 of this title (relating to Prehearing Exchanges and Informal Conference Regarding Petition), the division may file a request to docket a hearing with SOAH. At the time a request to docket is filed, the division shall also provide to SOAH:(1) a list of the grounds for objection being referred;(2) a copy of the documents delivered by the division pursuant to §9.4311(e) of this title;(3) a copy of the portions of the petition relating to the grounds for objection being referred;(4) a copy of any documentary evidence and supplemental documentary evidence timely submitted by petitioner pursuant to this subchapter for grounds for objections being referred; and(5) a copy of witness designations and identifications timely submitted by petitioner pursuant to this subchapter for grounds for objections being referred.(c) The documents submitted pursuant to subsection (b)(1) - (5) of this section will be submitted in an organized manner to facilitate reference to such documents by the ALJ.(d) At the discretion of the division director, the director may join matters referred to SOAH pursuant to this section for purposes of the hearing.(e) Following receipt of the request to docket pursuant to this section, SOAH shall:(1) assign the case a docket number;(2) assign an ALJ;(3) schedule the protest for hearing to be held not later than 45 calendar days after the date of the referral; and(4) no later than 14 calendar days before the scheduled hearing, deliver notice of the date, time, and location of the hearing to the parties identified in the request to docket. Hearings scheduled pursuant to this section shall be held at a location designated by SOAH. Notice under this subsection will be made by U.S. first class mail, facsimile, email, or via an electronic filing and service system utilized by SOAH.(f) Following receipt of the notice of the hearing date, time, and location from SOAH pursuant to this section, the division shall deliver to petitioner a copy of all documents that were submitted to SOAH pursuant to subsection (a) of this section. Such copies of documents submitted to SOAH must be delivered, unless otherwise agreed by the parties, not later than ten calendar days before the date of the hearing. Service under this subsection will be made by U.S. first class mail, facsimile, email or via an electronic filing and service system utilized by SOAH.",
            "sourceNote": "Source Note: The provisions of this §9.4312 adopted to be effective July 19, 2021, 46 TexReg 4358."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205592&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "205592",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "L",
                "label": "PROCEDURES FOR PROTESTING COMPTROLLER PROPERTY VALUE STUDY AND AUDIT FINDINGS"
            },
            "rule": {
                "number": "§9.4313",
                "label": "Conduct of Oral Hearing"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205593&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "205593",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as otherwise provided in this subchapter, the ALJ shall convene a hearing for a protest.(b) All oral hearings under this subchapter shall be recorded. The comptroller or petitioner will be provided a copy of the recording after a written request and payment of a cost-based fee to SOAH. Upon written notice provided to the ALJ and comptroller, and at least ten calendar days prior to a scheduled hearing, a petitioner may make arrangements for and bear the cost of having a hearing recorded and transcribed by a court reporter.(c) Oral hearings are generally open to the public and shall be held in Austin. The ALJ may close a hearing on the ALJ's own motion or on the motion of a party to the protest if confidential information will be disclosed during the hearing.(d) Hearings shall be conducted in accordance with this subchapter. The Texas Administrative Procedures Act, the Texas Rules of Civil Procedure, the Texas Rules of Evidence, and the SOAH procedural rules do not apply. Nothing in this subsection shall preclude general application by an ALJ of evidentiary principles addressed in the Texas Rules of Evidence as an advisory tool in making evidentiary determinations in protests of the comptroller's findings under Government Code, §403.302(g) and (h).(e) Except as otherwise provided by this subchapter, the comptroller shall present its evidence and argument prior to each petitioner. After each petitioner has presented its evidence and argument, the comptroller shall be given the opportunity to present rebuttal evidence and argument. The ALJ may otherwise establish the order of proceeding and is responsible for closing the record.(f) No party may offer documentary evidence at the hearing that was not filed and served in accordance with the requirements of this subchapter. No evidence may be submitted to SOAH on any ground for objection of a protest of the comptroller's findings under Government Code, §403.302(g) and (h) except as identified and submitted by the comptroller.(g) Testimony of witnesses shall be confined to the documentary evidence that has been timely submitted pursuant to the terms of this subchapter and identified and submitted to SOAH according to subsection (f) of this section.(h) The following individuals are considered qualified to testify in a hearing before SOAH conducted pursuant to this subchapter: comptroller employees, chief appraisers, and individuals registered as Class IV Appraisers with the Texas Department of Licensing and Regulation.(i) Argument shall be confined to the evidence for the grounds for objection identified and submitted by the comptroller and to the arguments of the other parties.(j) Admissions, proposals, offers, or agreements made or reached in the compromise of disputed issues prior to referral to SOAH may not be admitted in a hearing. Admissions, proposals, offers, or agreements made or reached in the compromise of disputed issues regarding other protests or prior study years may not be admitted in a hearing.(k) Unless permitted by the ALJ, no more than two representatives for each party shall present argument and introduce evidence at a hearing.(l) An attorney, agent or other representative who appears at a protest hearing to argue and present evidence on behalf of a petitioner shall not testify at the hearing.",
            "sourceNote": "Source Note: The provisions of this §9.4313 adopted to be effective July 19, 2021, 46 TexReg 4358."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205593&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "205593",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "L",
                "label": "PROCEDURES FOR PROTESTING COMPTROLLER PROPERTY VALUE STUDY AND AUDIT FINDINGS"
            },
            "rule": {
                "number": "§9.4314",
                "label": "Administrative Law Judge's Powers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205594&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "205594",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The ALJ shall conduct a hearing on a protest of the comptroller's findings under Government Code, §403.302 (g) or (h) in a manner ensuring fairness, the reliability of evidence, and the timely completion of the hearing. The ALJ shall have the authority necessary to receive and consider evidence as provided under this subchapter and propose decisions only on the grounds for objection identified and referred by the comptroller.(b) The comptroller has the burden to prove the accuracy of the comptroller's findings under Government Code, §403.302(g) or (h).(c) The ALJ's authority includes, but is not limited to, the following:(1) rule on motions and the admissibility of evidence;(2) conduct oral hearings in an orderly manner and expel from any proceeding any individuals who, after an appropriate warning, fail to comport themselves in a manner befitting the proceeding and continue with the proceeding, hear evidence, and render a decision on the protest;(3) administer oaths to all persons presenting testimony;(4) examine witnesses and comment on the evidence;(5) ensure that evidence, argument, and testimony are introduced and presented expeditiously;(6) refuse to hear arguments that are repetitious, not confined to grounds for objection identified and submitted by the comptroller to SOAH pursuant to this subchapter, or not related to the evidence;(7) accept and record any waiver of any right prescribed in this subchapter;(8) limit each oral hearing to two hours for presentation of evidence and argument or extend the two-hour time limit in the interest of a full and fair hearing; and(9) exercise any other powers necessary or convenient to carry out the ALJ's responsibilities and to ensure timely certification of changes in preliminary findings to the commissioner of education.(d) The ALJ shall take official notice of the written policies and procedures of the comptroller pertaining to the property value study and may take official notice of any statutes, codes and administrative rules of the State of Texas.(e) The ALJ may entertain motions for dismissal at any time as requested by the comptroller. Grounds for dismissal shall include, but are not limited to, the following:(1) failure to prosecute;(2) unnecessary duplication of proceedings or res judicata;(3) withdrawal of protest;(4) moot questions or obsolete petition; or(5) the comptroller has certified amended preliminary findings pursuant to this subchapter.(f) The ALJ may grant a request to postpone an oral protest hearing if good cause is shown and doing so would not prevent timely certification of changes in preliminary findings to the commissioner of education. A request to postpone must be in writing, show good cause for the postponement, and be delivered five calendar days before the date the protest hearing is scheduled to begin. Good cause does not include a claim that the time periods established in Government Code, §403.303(a) or in this subchapter are insufficient. If requested in writing by the petitioner and for good cause shown, the ALJ may waive the requirement that the request for postponement be made five calendar days in advance of the deadline.(g) Except as otherwise provided in this subchapter, the ALJ assigned to a protest may not communicate outside of the protest hearing, directly or indirectly, with any agency, person, petitioner, petitioner's witness or petitioner's agent regarding any issue of fact or law relating to the protest unless all parties to the protest have notice and opportunity to participate.",
            "sourceNote": "Source Note: The provisions of this §9.4314 adopted to be effective July 19, 2021, 46 TexReg 4358."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205594&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "205594",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "L",
                "label": "PROCEDURES FOR PROTESTING COMPTROLLER PROPERTY VALUE STUDY AND AUDIT FINDINGS"
            },
            "rule": {
                "number": "§9.4315",
                "label": "Proposal for Decision After Oral Hearing"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205595&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "205595",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The ALJ shall prepare a proposal for decision that includes the ALJ's recommendations for a final decision and the reasons for the proposed decision.(1) The ALJ shall issue the proposal for decision to the deputy comptroller within 30 calendar days of the date the hearing is conducted.(2) The ALJ's proposal for decision shall be issued to the deputy comptroller by filing the proposal for decision with the comptroller's Special Counsel for Tax Hearings via hand delivery, overnight delivery service, facsimile, email or an electronic filing and service system utilized by SOAH.(3) On the same date the ALJ issues the proposal for decision to the deputy comptroller, the ALJ shall serve a copy of the proposal for decision on all other parties via hand delivery, overnight delivery service, facsimile, email, or an electronic filing and service system utilized by SOAH(b) A party to the protest that is adversely affected by the proposal for decision may, within seven calendar days after the date the proposed final decision is served, file with the deputy comptroller exceptions to the proposal for decision.(1) Exceptions to the proposal for decision, if any, shall be filed with the deputy comptroller by filing the exceptions with the comptroller's Special Counsel for Tax Hearings via hand delivery, overnight delivery service, facsimile, or email.(2) On the same date the exceptions to the proposal for decision are filed, the excepting party shall serve a copy of the exceptions to all other parties via hand delivery, overnight delivery service, facsimile, or email.(c) Within seven calendar days after the exceptions are filed and served in accordance with subsection (b) of this section, all other parties not filing exceptions may file replies to the exceptions with the deputy comptroller.(1) The replies to the exceptions, if any, shall be filed with the deputy comptroller by filing the replies with the comptroller's Special Counsel for Tax Hearings via hand delivery, overnight delivery service, facsimile, or email.(2) On the same date the replies to exceptions are filed with the deputy comptroller, the party filing the replies shall serve a copy of the replies with all other parties via hand delivery, overnight delivery service, facsimile, or email.(d) The deputy comptroller shall issue a final order and, in doing so, may adopt, amend, or reject the ALJ's proposal for decision. A decision is final on the date signed by the deputy comptroller. The deputy comptroller shall deliver written notice of the final decision to each party to the protest via hand delivery, overnight delivery service, facsimile, or email.",
            "sourceNote": "Source Note: The provisions of this §9.4315 adopted to be effective July 19, 2021, 46 TexReg 4358."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=205595&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "205595",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "L",
                "label": "PROCEDURES FOR PROTESTING COMPTROLLER PROPERTY VALUE STUDY AND AUDIT FINDINGS"
            },
            "rule": {
                "number": "§9.4317",
                "label": "Effect of Final Decision and Certification of Changes"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=176572&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "176572",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A final decision ordering changes to findings made as a result of a school district's protest or other final resolution of the protest under this subchapter resulting in changes to preliminary findings arising from a school district's protest will change findings pursuant to Government Code, §403.302 for the school district regarding which the protest was filed.(b) A final decision ordering changes to findings made as a result of a property owner's protest or other final resolution of the protest under this subchapter resulting in changes to preliminary findings arising from a property owner's protest will change findings pursuant to Government Code, §403.302 for the school district(s) regarding which the protest was filed.(c) Certification of changes to preliminary findings. Unless the comptroller determines that circumstances require otherwise, the comptroller shall certify to the commissioner of education all changes to Government Code, §403.302(g) preliminary findings by August 31 of the year following the year of the study or as soon thereafter as practicable.",
            "sourceNote": "Source Note: The provisions of this §9.4317 adopted to be effective July 19, 2021, 46 TexReg 4358."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=176572&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "176572",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "M",
                "label": "LOCAL GOVERNMENT RELIEF FOR DISABLED VETERANS EXEMPTION"
            },
            "rule": {
                "number": "§9.4321",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=222650&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "222650",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following phrases, words, and terms, when used in this subchapter shall have the following meanings, unless the context clearly indicates otherwise.(1) Account--The account created by Local Government Code, §140.011(h) from which disabled veteran assistance payments are made.(2) Adjacent--Having a common endpoint or border. The fact that a road separates a city and a United States military installation does not prevent a city and military installation from being considered adjacent.(3) Applicant--A local government that has applied for a payment.(4) Comptroller--The Comptroller of Public Accounts for the State of Texas.(5) Exemption amount--The total appraised value of all property located in the local government that is granted an exemption from taxation under Tax Code, §11.131 for the tax year in which the fiscal year begins and for which the applicant is requesting payment.(6) Fiscal year--The fiscal year of the applicant unless otherwise indicated.(7) General fund revenue--Revenue generated by a local government from the following sources during a fiscal year and deposited in the dedicated general operating fund of the local government during that fiscal year:(A) ad valorem taxes;(B) sales and use taxes;(C) franchise taxes, fees, or assessments charged for use of the local government's right-of-way;(D) building and development fees, including permit and inspection fees;(E) court fines and fees;(F) other fees, assessments, and charges; and(G) interest earned by the local government.(8) Independent audit--An audit required by law to be prepared for the applicant for the fiscal year for which the applicant is requesting payment which verifies amounts of general fund revenue by source.(9) Local government--(A) a municipality adjacent to a United States military installation; or(B) a county in which a United States military installation is wholly or partly located.(10) Lost ad valorem tax revenue or lost property tax revenue--For a fiscal year for which the applicant is requesting payment, the product of the property tax rate adopted by the applicant for the tax year in which that fiscal year begins and the exemption amount.(11) Payment--A disabled veteran assistance payment paid to a qualified local government from the account in an amount calculated by subtracting 1.0% of the local government's general fund revenue for a fiscal year from the local government's lost property tax revenue for that fiscal year.(12) Qualified local government--A local government entitled to a disabled veteran assistance payment under Local Government Code, §140.011. A local government is a qualified local government for a fiscal year if the amount of lost property tax revenue is equal to or greater than 2.0% of the applicant's general fund revenue for that fiscal year.",
            "sourceNote": "Source Note: The provisions of this §9.4321 adopted to be effective February 22, 2016, 41 TexReg 1260."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=222650&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "222650",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "M",
                "label": "LOCAL GOVERNMENT RELIEF FOR DISABLED VETERANS EXEMPTION"
            },
            "rule": {
                "number": "§9.4323",
                "label": "Application"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=176574&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "176574",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In order to receive payment under this subchapter, an applicant must submit a completed application. The completed application must be received no earlier than February 1 nor later than April 1 of the year following the end of a fiscal year for which the applicant is seeking a payment under this subchapter.(b) A completed application must include the following items:(1) A map showing that:(A) if the applicant is a municipality, the municipality is adjacent to a United States military installation; or(B) if the applicant is a county, a United States military installation is wholly or partly located within that county.(2) Documentation to substantiate the sources and amounts of general fund revenues listed on the application. That documentation must be:(A) an independent audit covering the fiscal year for which the applicant is requesting payment;(B) a comprehensive annual financial report covering the fiscal year for which the applicant is requesting payment; or(C) documentation from the applicant's internal auditor or financial officer certifying that the information submitted is true and correct to the best of their knowledge.(3) If the documentation listed in paragraph (2) of this subsection does not substantiate all of the sources and amounts of general fund revenues listed on the application, the applicant must submit additional documentation to substantiate the sources and amounts of general fund revenue which is certified by a city, county or independent auditor.(4) Documentation to substantiate the exemption amount.(5) Documentation to substantiate the property tax rate adopted by the applicant for the tax year in which the fiscal year for which the applicant is requesting payment begins.(c) Documentation submitted with the application under subsection (b)(2) - (5) of this section must be highlighted for easy identification of the following values:(1) the specific total for each general fund revenue source;(2) the adopted property tax rate; and(3) the total exemption amount.(d) The application must be submitted on the comptroller prescribed form. The method in which the application is submitted must conform to the instructions in the comptroller prescribed form.(e) The application must be signed by an official of the local government that is authorized to bind the local government. The local official must certify that all information in the application is true and correct.(f) The applicant is responsible for verifying receipt by the comptroller of the completed application and any information requested under §9.4325 of this title (relating to Review by Comptroller).",
            "sourceNote": "Source Note: The provisions of this §9.4323 adopted to be effective February 22, 2016, 41 TexReg 1260; amended to be effective December 16, 2024, 49 TexReg 10117."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=176574&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "176574",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "M",
                "label": "LOCAL GOVERNMENT RELIEF FOR DISABLED VETERANS EXEMPTION"
            },
            "rule": {
                "number": "§9.4325",
                "label": "Review by Comptroller"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=176575&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "176575",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Upon receipt of an application, the comptroller shall review the application to ensure that it is complete. If the application is incomplete, including if any information is not substantiated as required by §9.4323 of this title (relating to Application) as determined by the comptroller, the comptroller may contact the applicant and request any required information. Any required information requested by the comptroller must be submitted by the applicant within 14 calendar days of the request.(b) An application is not considered complete until the documentation identified in §9.4323 of this title is submitted to the comptroller and any requested information is submitted within the deadline provided in subsection (a) of this section.(c) An application shall be rejected by the comptroller if the application is submitted:(1) before February 1 of the year following the end of a fiscal year for which the applicant is seeking a payment;(2) after April 1 of the year following the end of a fiscal year for which the applicant is seeking a payment;(3) on a form other than the most updated version of the comptroller prescribed form;(4) by a method not outlined in the comptroller prescribed form; or(5) without being complete as prescribed under subsection (b) of this section by April 1 of the year following the fiscal year for which the applicant is seeking payment.(d) The comptroller may reject an application if the applicant or the application does not adhere to Local Government Code, §140.011 or to this subchapter.",
            "sourceNote": "Source Note: The provisions of this §9.4325 adopted to be effective February 22, 2016, 41 TexReg 1260."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=176575&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "176575",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "M",
                "label": "LOCAL GOVERNMENT RELIEF FOR DISABLED VETERANS EXEMPTION"
            },
            "rule": {
                "number": "§9.4327",
                "label": "Payment to Qualified Local Government"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216267&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "216267",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The comptroller must issue payment to a qualified local government not later than the 30th calendar day after a completed application is submitted to the comptroller as prescribed by §9.4323 of this title (relating to Application) and approved.(b) In the event the comptroller determines through the application review process that there is a likelihood that the relevant appropriation amount may be exceeded for the applicable state fiscal year by the total amount of approved applications, the comptroller may take reasonable steps to ensure that the appropriation amount will not be exceeded, including by making pro-rata reductions in award amounts to qualified local governments.(c) In the event that steps are necessary to prevent the relevant appropriation from being exceeded under subsection (b) of this section, the 30 day period described in subsection (a) of this section does not begin until the comptroller has finally determined the exact amounts to be paid to the qualified local governments.(d) Payments are made subject to Government Code, §403.055 and §403.0551.",
            "sourceNote": "Source Note: The provisions of this §9.4327 adopted to be effective February 22, 2016, 41 TexReg 1260."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216267&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "216267",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "TEXAS JOBS, ENERGY, TECHNOLOGY AND INNOVATION  PROGRAM"
            },
            "rule": {
                "number": "§9.5000",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226801&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "226801",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "As used in this subchapter, the following words and terms shall have the following meanings, unless the context clearly indicates otherwise:(1) Agreement holder--A person that is subject to an executed agreement under Government Code, §403.612.(2) Construction job--A job that is temporary in nature, typically performed on a full-time basis and occurs before the commencement of the eligible project's incentive period. The purpose of the job is to perform construction, maintenance, remodeling or repair work for an applicant's project.(3) Eligible project--The construction of a project, or the expansion of an existing facility that is:(A) a manufacturing facility, classified in NAICS 31-33;(B) a facility related to the provision of utility services, including an electric generation facility that is considered to be dispatchable because the facility's output can be controlled primarily by forces under human control, classified in NAICS 2211;(C) a facility related to the development of natural resources, defined as the following Goods-Producing Industries subsector groups as identified by the U.S. Bureau of Labor Statistics:(i) Agriculture, Forestry, Fishing and Hunting, classified in NAICS 11; and(ii) Mining, Quarrying, and Oil and Gas Extraction, classified in NAICS 21;(D) a facility engaged in research and development, classified in NAICS 5417, or manufacture of high-tech equipment or technology; or(E) related to critical infrastructure such as:(i) a water intake structure, water treatment facility, wastewater treatment plant, or pump station, classified in NAICS 2213;(ii) a liquid natural gas terminal or storage facility, classified in NAICS 424710;(iii) pipelines and pipeline appurtenances or facilities, including pipes, valves, meters, pumps, compressors, treating and processing facilities, cathodic protection facilities, and any other equipment, facilities, devices, structures, and buildings used or intended for use in the gathering, transportation, treating, storage, or processing of CO2, oil, gas, or other minerals, and the liquefied or gaseous substances, constituents, products, or mixtures derived from those minerals through refining, processing, or other methods, classified in NAICS 486; and(iv) utility-scale water or wastewater storage, treatment, or transmission facilities, classified in NAICS 2213.(4) Eligible property--Property that is used in connection with an eligible project and is either wholly owned by an applicant or leased by an applicant through a capitalized lease. To be eligible, the property must be:(A) a new building or expansion of an existing building, including a permanent and nonremovable part of a building that is:(i) constructed after the execution of the agreement; and(ii) located in an area that is, at the time the agreement is executed, designated as a contiguous reinvestment zone under Tax Code, Chapter 311 or 312, or as an enterprise zone under Government Code, Chapter 2303; or(B) tangible personal property, excluding inventory, that is initially placed in a zone described in subparagraph(A)(ii) of this paragraph after the agreement execution.(5) Full-time job--A permanent position of employment, other than a construction job, requiring a minimum of 1,600 hours of work per year in connection with an eligible project.(6) Investment--Capital that is expended on the construction or acquisition of eligible property for an eligible project with the exclusion of expenses related to land and inventory for the project.(7) NAICS--North American Industry Classification System, developed by the U.S. Office of Management and Budget as the standard for use in classifying business establishments.(8) Performance bond--A surety bond with an amount determined by the comptroller.(9) Required job--A job, other than construction jobs, that an applicant commits to create or demonstrate for an eligible project that meets the following requirements:(A) must be a new full-time job in this state;(B) must be performed by an employee hired by the applicant (including a Texans Work Program trainee under Labor Code, Chapter 308), or by an independent contractor or independent contractor's employee, primarily at the designated project site, allowing for hybrid work schedules but excluding 100% remote work;(C) must require at least 1,600 hours of work a year;(D) may not be transferred by the applicant from an existing facility or location in this state unless the applicant fills the vacancy caused by the transfer;(E) may not create a job to replace an existing job, unless the applicant fills the vacancy caused by the replacement;(F) must offer and contribute to a group health benefit plan for each full-time employee of the applicant; and(G) must meet the wage requirement.(10) Trainee--An individual enrolled in the Texans Work Program who fulfills the following eligibility criteria:(A) receives a minimum monthly payment of $300;(B) is engaged for a duration of at least 6 months but not exceeding one year;(C) contributes at least 30 hours weekly; and(D) constitutes no more than 20% of the employer's total workforce.(11) Wage Requirement-- For all jobs in the applicable industry sector as computed by the Texas Workforce Commission in the Quarterly Census of Employment and Wages and as described in the executed agreement under Government Code, §403.612, a wage for a job in a specified sector is determined by considering the average annual wage data available during the most recent four quarters. If county level data exists, the wage in a specified industry must exceed 110% of the county average annual wage, giving priority to 6-digit NAICS level, followed by 5-digit NAICS level, and then 4-digit NAICS level. If county data is unavailable, the same evaluation is performed on regional data. In the absence of both county and regional data, statewide average annual wage must be utilized.",
            "sourceNote": "Source Note: The provisions of this §9.5000 adopted to be effective January 16, 2024, 49 TexReg 134."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226801&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "226801",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "TEXAS JOBS, ENERGY, TECHNOLOGY AND INNOVATION  PROGRAM"
            },
            "rule": {
                "number": "§9.5001",
                "label": "Applicant Eligibility Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216269&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "216269",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An applicant that is listed as ineligible to receive a state contract or investment or is otherwise ineligible to contract with a state governmental entity under Government Code, Chapters 808, 809, 2270, 2271, 2274, 2275 or 2276, is ineligible to apply for an agreement for limitation on taxable value of eligible property under Government Code, Chapter 403.(b) The comptroller may reject an application based on an applicant's ineligibility under subsection (a) of this section.(c) The comptroller shall send notice of the rejection described in subsection (b) of this section to the applicant.(d) An applicant may not submit an administrative appeal to the comptroller for reconsideration of an application that has been rejected under subsection (b) of this section.",
            "sourceNote": "Source Note: The provisions of this §9.5001 adopted to be\r\neffective January 16, 2024, 49 TexReg 134; amended to be effective\r\nNovember 16, 2025, 50 TexReg 7427."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216269&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "216269",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "TEXAS JOBS, ENERGY, TECHNOLOGY AND INNOVATION  PROGRAM"
            },
            "rule": {
                "number": "§9.5002",
                "label": "Application Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216270&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "216270",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Each application shall include:(1) a completed application form;(2) proof of a $30,000 payment as a nonrefundable application fee, payable to the applicable school district;(3) a sworn affidavit by an agent authorized to bind an applicant attesting that the applicant is not ineligible under Government Code, §403.606;(4) a map of the proposed project site;(5) an economic benefit statement for the proposed project as described in Government Code, §403.608; and(6) any additional information requested by the comptroller to complete its evaluation of the application.(b) Applicants must segregate confidential information described by Government Code, §403.621, or information that is confidential as a matter of law from other information in their application, amended application or supplement to an application. A cover sheet marked \"Confidential\" with the legal justification for confidential treatment must accompany all information that is considered confidential.(c) If an applicant proposes to place an eligible property in a qualified opportunity zone, the entire project including its boundaries must fall within that qualified opportunity zone in order to be subject to the taxable value prescribed in Government Code, §403.605(a)(2).",
            "sourceNote": "Source Note: The provisions of this §9.5002 adopted to be effective January 16, 2024, 49 TexReg 134."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216270&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "216270",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "TEXAS JOBS, ENERGY, TECHNOLOGY AND INNOVATION  PROGRAM"
            },
            "rule": {
                "number": "§9.5003",
                "label": "Economic Benefit Statement Criteria"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226802&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "226802",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The economic benefit statement must include the information described in Government Code, §403.608(b), including the sources relied upon.(b) The comptroller may require an applicant to supplement or modify the economic benefit statement to provide further clarity or if there are changes to project-related information.(c) Information provided as an estimate of the associated economic benefits that may be reasonably attributed to the project may be generated from standard economic estimation techniques and multipliers. This information shall be used to obtain a generalized estimation of the economic benefits to be associated with the proposed project. Any economic estimation modeling software used and all modifiers that were incorporated in the calculations must be disclosed.(d) The economic benefit statement must include the project's associated economic benefits that, at minimum, consist of the following:(1) the impact on the gross revenues and employment levels of local businesses that provide goods or services in connection with the project or to an applicant's employees;(2) the amount of state and local taxes that will be generated as a result of the indirect economic impact of the project;(3) the development of complementary businesses or industries that locate in this state as a direct consequence of the project;(4) the total impact of the project on the gross domestic product of this state;(5) the total impact of the project on personal income in this state; and(6) the total impact of the project on state and local taxes.(e) The comptroller may reject an economic benefit statement that is determined to be unreasonable or relies on unrealistic assumptions of economic conditions.(f) If the economic benefit statement is rejected, then the comptroller may recommend not to approve the application.",
            "sourceNote": "Source Note: The provisions of this §9.5003 adopted to be effective January 16, 2024, 49 TexReg 134."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226802&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "226802",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "TEXAS JOBS, ENERGY, TECHNOLOGY AND INNOVATION  PROGRAM"
            },
            "rule": {
                "number": "§9.5004",
                "label": "Application Process"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216272&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "216272",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An applicant must submit an application for a limitation on taxable value of eligible property in the form and manner prescribed by the comptroller. The comptroller may require applications to be submitted electronically.(b) After the eligibility of the applicant is assessed in §9.5001 of this chapter, the comptroller shall review an application to determine if it is administratively complete. An application is considered administratively complete when it includes all the information requested by the comptroller.(c) The comptroller shall provide notice of an administratively complete application to the applicant, the governor and the applicable school district. The comptroller may provide notice electronically.(d) If an application is not administratively complete, the comptroller may require an applicant to submit the necessary information by a deadline.(e) To assess whether a project proposed in an application is an eligible project, the comptroller must find that:(1) an applicant satisfies the application requirements;(2) the proposed project meets the definition of eligible project in §9.5000 of this title and Government Code, §403.602(8); and(3) The applicant is willing to agree and accept the terms described in Government Code, §403.604, and the agreement terms.(f) To assess whether an agreement is a compelling factor and whether the applicant would make the proposed investment in the absence of the agreement under Government Code, §403.609(b)(3), the comptroller may consider:(1) any public documents and statements relating to the applicant, the proposed project or the proposed eligible property that is subject to the application;(2) official statements by the applicant, government officials or industry officials concerning the proposed project;(3) alternative sites and prospects explored including any specific incentive information;(4) any information concerning the proposed project's impact on the Texas economy;(5) previous applications for and subsequent granting of economic development incentives;(6) documents pertaining to the proposed project's financials, real estate transactions, utilities, infrastructure, transportation, regulatory environment, permits, workforce, marketing, existing facilities, nature of market conditions, and raw materials that demonstrate whether the incentive is a compelling factor in a competitive site selection process to locate the proposed project in Texas; and(7) any other information that may aid the comptroller in its determination.(g) Upon request, the comptroller may require that an applicant provides additional documents to demonstrate a compelling factor in a competitive site selection process to locate the proposed project in Texas. Failure to provide these documents may result in the comptroller being unable to make a recommendation under Government Code, §403.609.(h) Within 60 days of an application being deemed complete, the comptroller shall examine and determine whether the application should be recommended or not recommended for approval based on the criteria in Government Code, §403.609(b).(i) The comptroller shall provide written notice of action under Government Code, §403.609(a), to the applicant, the governor and the applicable school district.(1) The notice shall indicate the comptroller's recommendation either for approval or non-approval of the application along with a copy of the application, and all documents or information relied upon to make the findings prescribed by Government Code, §403.609(b). (2) A recommendation for approval shall specify a performance bond amount that is 10% of the estimated gross tax benefit to the applicant.(j) An applicant may submit an amended or supplemental application to the comptroller at any time after the submission of the original application. If an applicant modifies an application that previously received a positive comptroller recommendation prior to the execution of the agreement, the applicant must submit said modifications to the comptroller to make a recommendation pursuant to Government Code, §403.609, before the agreement can be executed.",
            "sourceNote": "Source Note: The provisions of this §9.5004 adopted to be\r\neffective January 16, 2024, 49 TexReg 134; amended to be effective\r\nJuly 29, 2024, 49 TexReg 5536; amended to be effective November 16,\r\n2025, 50 TexReg 7427."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216272&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "216272",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "TEXAS JOBS, ENERGY, TECHNOLOGY AND INNOVATION  PROGRAM"
            },
            "rule": {
                "number": "§9.5005",
                "label": "Agreement for Limitation on Taxable Value of Eligible Property"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216273&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "216273",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An applicant, the governor and the governing body of the applicable school district must mutually agree to enter into an agreement for limitation on taxable value of eligible property that includes the requisite terms in Government Code, §403.604 and §403.612.(b) An applicant must satisfy the criteria required to enter in a contract with the state of Texas.(c) The agreement must be based on information from an application that was recommended for approval by the comptroller.(d) The agreement must comply with all applicable rules, regulations and statutes.",
            "sourceNote": "Source Note: The provisions of this §9.5005 adopted to be effective January 16, 2024, 49 TexReg 134."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216273&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "216273",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "TEXAS JOBS, ENERGY, TECHNOLOGY AND INNOVATION  PROGRAM"
            },
            "rule": {
                "number": "§9.5006",
                "label": "Agreement Process"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216274&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "216274",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Both the governor and the governing body of the applicable school district must decide under Government Code, §403.610(a) and §403.611(a), that they are agreeable to entering into an agreement with the applicant for a limitation on taxable value of eligible property.(b) The governor and the governing body of the applicable school district must provide written notice of their determination in compliance with Government Code, §403.610(b) and §403.611(d).(c) The agreement must be written in the manner and form prescribed by the governor.",
            "sourceNote": "Source Note: The provisions of this §9.5006 adopted to be effective January 16, 2024, 49 TexReg 134."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216274&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "216274",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "TEXAS JOBS, ENERGY, TECHNOLOGY AND INNOVATION  PROGRAM"
            },
            "rule": {
                "number": "§9.5007",
                "label": "Amendment Process"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216275&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "216275",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An agreement holder may propose to modify the beginning and ending dates of the incentive period. Notice of the proposed modification must be provided to the comptroller, the governor, and the applicable school district not later than the 90th day before the first day of the incentive period specified in Government Code, §403.612(b)(3), or not later than the 90th day before the first day of the proposed incentive period, whichever is earlier.(b) Failure to provide notice of a proposed modification in a timely manner could lead to a denial of the modification request.(c) To change the beginning and ending dates of the incentive period, the agreement holder must update the most recent schedules and economic benefit statement as necessary to reflect the proposed change to the incentive period. The agreement holder must include the revised schedules and economic benefit statement with the notice provided to the comptroller, the governor, and the applicable school district under this section.(d) The comptroller shall make the finding required by Government Code, §403.609(b)(2), regarding the project as proposed to be modified or determine that the finding cannot be made.(e) The comptroller shall notify the agreement holder, the governor and the applicable school district of the comptroller's finding not later than the 60th day after the date the comptroller receives the notice and revised economic benefit statement from the agreement holder of the proposed modification.(f) The incentive period for the project may not be modified if the comptroller determines that the finding required by Government Code, §403.609(b)(2), regarding the project as proposed to be modified cannot be made or if the governor or the applicable school district objects to the proposed modification.",
            "sourceNote": "Source Note: The provisions of this §9.5007 adopted to be effective January 16, 2024, 49 TexReg 134."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216275&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "216275",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "TEXAS JOBS, ENERGY, TECHNOLOGY AND INNOVATION  PROGRAM"
            },
            "rule": {
                "number": "§9.5008",
                "label": "Job and Wage Requirements; Penalty for Failing to Comply with Job or Wage Requirement"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216276&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "216276",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as otherwise provided in Government Code, §403.604(a), the number of required jobs may not be waived.(b) The wage requirement applies to required jobs and additional jobs, as the terms are defined in §9.5000 of this title and Government Code, §403.602. The wage requirement may not be waived.(c) The comptroller shall conduct a biennial review of the periods covered by two consecutive reports submitted by an agreement holder to determine whether the agreement holder has created the number of required jobs and has met the wage requirement under Government Code, Chapter 403.(d) To make the determination, the comptroller may:(1) review the Biennial Compliance Report submitted by the agreement holder;(2) request additional information from the agreement holder to substantiate the number of required jobs and the wage requirement and/or inspect the eligible property with a 3-day advance notice to the agreement holder in order to perform the inspection at a mutually agreeable time during regular business hours; or(3) consider any other information that is available to the comptroller.(e) The comptroller may issue a determination that a job created by the agreement holder is not a required job if the job as identified by the agreement holder:(1) does not provide 1,600 hours or more of work for that year;(2) is not a new job but rather a position that was transferred from a facility of the agreement holder from one area of the state to the project covered by the agreement, unless the agreement holder fills the vacancy caused by the transfer;(3) is not a new job but rather a position that replaced an existing job of the agreement holder, unless the agreement holder filled the vacancy caused by the replacement;(4) is not covered by a group health benefit plan for which the agreement holder contributes; or(5) does not meet the wage requirement.(f) If the comptroller makes a determination that the agreement holder did not create the required number of jobs or meet the wage requirement, the comptroller shall provide notice to the agreement holder, which shall include an explanation for the adverse determination.(g) If the comptroller finds that an agreement holder received two consecutive adverse determinations for failing to meet the wage requirement prescribed by the agreement, the comptroller shall impose a penalty on the agreement holder in an amount equal to two times the difference between:(1) the product of:(A) the actual average annual wage paid to all persons employed by the agreement holder in connection with the project that is the subject of the agreement as computed under Government Code, §403.612(b)(6); and(B) the number of required jobs prescribed by the agreement; and(2) the product of:(A) the average annual wage prescribed by the agreement; and(B) the number of required jobs prescribed by the agreement.(h) If the comptroller finds that an agreement holder received two consecutive adverse determinations for failing to maintain at least the number of required jobs prescribed by the agreement, the comptroller shall impose a penalty on the agreement holder in an amount equal to two times the difference between:(1) the product of:(A) the number of required jobs prescribed by the agreement; and(B) the number of required jobs actually created as stated in the most recent report submitted by the agreement holder under Government Code, §403.616; and(2) the average annual wage prescribed by the agreement during the most recent four quarters for which data is available, as computed by the Texas Workforce Commission.(i) A determination by the comptroller under subsection (f) of this section is a deficiency determination under Tax Code, §111.008. A penalty imposed under this section is an amount the comptroller is required to collect, receive, administer, or enforce and is subject to the payment and redetermination requirements of Tax Code, §111.0081 and §111.009. A redetermination under Tax Code, §111.009, of a determination under this section is a contested case as defined by Government Code, §2001.003.(j) In no event shall a penalty imposed under this section exceed the amount of the ad valorem tax benefit received by the agreement holder under the agreement.(k) The comptroller shall deposit a penalty collected under this section and any interest on the penalty to the credit of the foundation school fund.",
            "sourceNote": "Source Note: The provisions of this §9.5008 adopted to be effective January 16, 2024, 49 TexReg 134."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216276&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "216276",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "TEXAS JOBS, ENERGY, TECHNOLOGY AND INNOVATION  PROGRAM"
            },
            "rule": {
                "number": "§9.5009",
                "label": "Biennial Compliance Report"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216277&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "216277",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Each agreement holder must submit a biennial compliance report with the supportive documents required by Government Code, §403.616 in the manner and form prescribed by the comptroller. The comptroller may require the report to be submitted electronically.(b) The report must be submitted by June 1 of every even numbered year from the start to the conclusion of the incentive period.(c) The report must include the minimum number of required jobs described in Government Code, §403.604(b) for every tax year throughout the duration of the incentive period.(d) The report must include the signature of agreement holder's authorized representative(s) by which the representative confirms and attests to the truth and accuracy of the information submitted in the form to the best knowledge and belief of the agreement holder and its representative(s).(e) Agreement holders must segregate confidential information described by Government Code, §403.621(b) or information that is confidential as a matter of law from other information within the biennial report. A cover sheet marked \"Confidential\" with the legal justification for confidential treatment must accompany all information that is considered confidential.(f) For trainees identified in the report, the agreement holder must also submit documentation confirming its approval to take part in the Texans Work Program as set forth in Labor Code, §308.003, along with proof of the trainee's participation in the program including the beginning and ending dates of the trainee's participation.",
            "sourceNote": "Source Note: The provisions of this §9.5009 adopted to be effective January 16, 2024, 49 TexReg 134."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216277&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "216277",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "TEXAS JOBS, ENERGY, TECHNOLOGY AND INNOVATION  PROGRAM"
            },
            "rule": {
                "number": "§9.5010",
                "label": "Biennial Report to Legislature"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216278&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "216278",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Each agreement holder must submit information for the report described in Government Code, §403.617(b), in the form and manner prescribed by the comptroller.(b) Not later than December 1 of each even year, the comptroller may electronically submit the report under Government Code, §403.617(b), to the lieutenant governor, the speaker of the house of representatives, and each other member of the legislature.",
            "sourceNote": "Source Note: The provisions of this §9.5010 adopted to be effective January 16, 2024, 49 TexReg 134."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216278&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "216278",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "TEXAS JOBS, ENERGY, TECHNOLOGY AND INNOVATION  PROGRAM"
            },
            "rule": {
                "number": "§9.5011",
                "label": "Conflicts"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216279&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "216279",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "To comply with Government Code, §403.619, both applicant and applicable school district must disclose any potential conflicts of interest related to a submitted application or an agreement, as mandated by state and federal laws, before executing the same agreement.",
            "sourceNote": "Source Note: The provisions of this §9.5011 adopted to be effective January 16, 2024, 49 TexReg 134."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216279&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "216279",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "TEXAS JOBS, ENERGY, TECHNOLOGY AND INNOVATION  PROGRAM"
            },
            "rule": {
                "number": "§9.5012",
                "label": "Electronic Submission; Notices"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=219857&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "219857",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Unless otherwise required by law, the comptroller may require forms, notices and other documents to be submitted electronically (including via web form).",
            "sourceNote": "Source Note: The provisions of this §9.5012 adopted to be effective January 16, 2024, 49 TexReg 134."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=219857&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "219857",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "9",
                "label": "PROPERTY TAX ADMINISTRATION"
            },
            "subchapter": {
                "number": "O",
                "label": "TEXAS JOBS, ENERGY, TECHNOLOGY AND INNOVATION  PROGRAM"
            },
            "rule": {
                "number": "§9.5013",
                "label": "Hearings"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198969&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "198969",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The comptroller's rules of practice and procedure, set forth in Chapter 1, Subchapter A, Division 1 of this title, apply to contested case proceedings under Government Code, §403.614(e).",
            "sourceNote": "Source Note: The provisions of this §9.5013 adopted to be effective July 29, 2024, 49 TexReg 5536."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198969&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "198969",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "10",
                "label": "TRANSPARENCY"
            },
            "subchapter": {
                "number": "A",
                "label": "ANNUAL REPORT OF FINANCIAL INFORMATION BY POLITICAL SUBDIVISION"
            },
            "rule": {
                "number": "§10.1",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198970&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "198970",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following phrases, words and terms, when used in this subchapter shall have the following meanings, unless the context clearly indicates otherwise.(1) Affidavit of financial dormancy--The affidavit described by Water Code, §49.197, that may be submitted by a district under §10.5 of this title (relating to Alternative Form of Financial Information for Report; Alternative Reporting Option Available for Certain Types of Districts) when the district has less than $500 in receipts or disbursements during the calendar year, no bonds or long-term liabilities outstanding during the calendar year, and no cash or investments exceeding $5,000 in a calendar year, or when the district is otherwise considered a financially dormant district in accordance with the requirements of Water Code, Chapter 49, Subchapter G.(2) Authorized--With respect to a public security, authorized means allowed or directed by a resolution, order, or ordinance that is approved or adopted in a proceeding by the governing body of an issuer in authorizing the issuance of a public security.(3) Combined principal and interest required to pay all outstanding debt obligations on time and in full--Total amount borrowed (par) that has yet to be repaid plus the cost of interest.(4) Combined principal and interest required to pay all outstanding debt obligations secured by ad valorem taxation on time and in full--Total amount borrowed (par) of all property tax-secured obligations that has yet to be repaid plus the cost of interest.(5) Combined principal and interest required to pay all outstanding debt obligations secured by ad valorem taxation on time and in full as a per capita amount--Total debt obligations secured by a pledge of property taxes plus the cost of debt service on these obligations divided by the population of the political subdivision.(6) Combined principal and interest required to pay each outstanding debt obligations on time and in full--Total amount borrowed (par) plus the cost of interest for each individual debt obligation or bond series.(7) Current credit rating--Existing rating given by any nationally recognized credit rating organization to debt obligations.(8) Final maturity date--Final payment date of individual debt obligation at which point all principal and interest will be paid off.(9) Issuance or issued--The process of authorizing, selling, and delivering public debt.(10) Official stated purpose for which a debt obligation was authorized--The reason for the debt issuance as described in ballot language if applicable or the official statement.(11) Outstanding debt obligation--An issued public security that has yet to be repaid.(12) Outstanding principal--Total amount borrowed that has yet to be repaid.(13) Political subdivision--A county, municipality, school district, junior college district, other special district, or other subdivision of state government subject to the reporting requirements set forth under Local Government Code, §140.008. The term does not include a special purpose district described by Government Code, §403.0241(b).(14) Principal issued--The total amount borrowed.(15) Proceeds spent--The portion of total proceeds received that have been spent.(16) Proceeds unspent--The portion of total proceeds received that are remaining to be spent.(17) Secured in any way by ad valorem taxes--Indicates which individual debt obligations are in part or entirely pledged with property taxes.(18) Total authorized debt obligations--Debt obligations are defined as public securities which are instruments, including bonds, certificates, notes, or other types of obligations authorized to be issued by an issuer under a statute, a municipal home-rule charter, or the constitution of this state.(19) Total authorized debt obligations secured by ad valorem taxation--Total debt obligations secured by a pledge of property taxes.(20) Total authorized debt obligations secured by ad valorem taxation expressed as a per capita amount--Total authorized debt obligations secured by a pledge of property taxes divided by the population of the political subdivision.(21) Total principal of all outstanding debt obligations--Total amount borrowed (par) of all obligations that have yet to be repaid.(22) Total principal of all outstanding debt obligations secured by ad valorem taxation--Total amount borrowed (par) of obligations secured by a pledge of property taxes that have yet to be repaid.(23) Total principal of outstanding debt obligations secured by ad valorem taxation as a per capita amount--Total amount borrowed (par) secured by a pledge of property taxes divided by the population of the political subdivision.(24) Total proceeds received--Total assets received from the sale of a new issue of public securities.",
            "sourceNote": "Source Note: The provisions of this §10.1 adopted to be effective January 3, 2018, 42 TexReg 7718; amended to be effective April 5, 2020, 45 TexReg 2207."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198970&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "198970",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "10",
                "label": "TRANSPARENCY"
            },
            "subchapter": {
                "number": "A",
                "label": "ANNUAL REPORT OF FINANCIAL INFORMATION BY POLITICAL SUBDIVISION"
            },
            "rule": {
                "number": "§10.2",
                "label": "Annual Local Debt Report Required from Political Subdivision"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198971&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "198971",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A political subdivision shall annually compile and report certain financial information (\"Annual Local Debt Report\") in the manner prescribed by this subchapter.(b) The Annual Local Debt Report to be compiled and reported by a political subdivision must include the following financial information:(1) Regarding total authorized debt obligations:(A) the amount of all authorized debt obligations;(B) the principal of all outstanding debt obligations;(C) the combined principal and interest required to pay all outstanding debt obligations on time and in full;(D) the amount of all authorized debt obligations secured by property taxes;(E) the principal of all outstanding debt obligations secured by property taxes;(F) the combined principal and interest required to pay all outstanding debt obligations secured by property taxes on time and in full;(G) the amount of all authorized debt obligations secured by property taxes for municipalities, counties or school districts expressed as a per capita amount;(H) the principal of all outstanding debt obligations secured by property taxes for municipalities, counties or school districts expressed as a per capita amount;(I) the combined principal and interest required to pay all outstanding debt obligations on time and in full for all obligations secured by property taxes expressed as a per capita amount; and(J) the current credit rating on total debt obligations given by any nationally recognized credit rating organization.(2) Regarding each authorized debt obligation:(A) the principal of each outstanding debt;(B) the principal of each outstanding debt obligation secured by property taxes for municipalities, counties or school districts expressed as a per capita amount;(C) the combined principal and interest required to pay each outstanding debt obligation on time and in full;(D) the combined principal and interest required to pay each outstanding debt obligation on time and in full for municipalities, counties or school districts expressed as a per capita amount;(E) the issued and unissued amounts, the spent and unspent amounts, the maturity date and the stated purpose for which each debt obligation was authorized; and(F) the current credit rating on each debt obligation given by any nationally recognized credit rating organization.(3) Any other information considered relevant or necessary to explain the above required data elements, such as explanations of payment sources for different kinds of debt or projections of per capita amounts of ad valorem taxation-secured obligations as of the last day of the maximum term of the most recent debt obligation issued by the political subdivision.",
            "sourceNote": "Source Note: The provisions of this §10.2 adopted to be effective January 3, 2018, 42 TexReg 7718; amended to be effective April 5, 2020, 45 TexReg 2207."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198971&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "198971",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "10",
                "label": "TRANSPARENCY"
            },
            "subchapter": {
                "number": "A",
                "label": "ANNUAL REPORT OF FINANCIAL INFORMATION BY POLITICAL SUBDIVISION"
            },
            "rule": {
                "number": "§10.3",
                "label": "Submission of Annual Local Debt Report to Comptroller"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198972&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "198972",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The comptroller shall provide a location on the comptroller's Internet website where a political subdivision may submit the financial information described in §10.2 of this title (relating to Annual Local Debt Report Required from Political Subdivision) and any other related information required or requested by the comptroller for the Annual Local Debt Report.(b) The comptroller shall prescribe the form and manner in which financial information, financial documents, and related information must be submitted under this subchapter. These instructions and other information related to local government debt reporting will be provided on the comptroller's Internet website at https://comptroller.texas.gov/transparency/.",
            "sourceNote": "Source Note: The provisions of this §10.3 adopted to be effective January 3, 2018, 42 TexReg 7718; amended to be effective April 5, 2020, 45 TexReg 2207."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198972&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "198972",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "10",
                "label": "TRANSPARENCY"
            },
            "subchapter": {
                "number": "A",
                "label": "ANNUAL REPORT OF FINANCIAL INFORMATION BY POLITICAL SUBDIVISION"
            },
            "rule": {
                "number": "§10.4",
                "label": "Reporting Options Available to Political Subdivisions Generally"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198973&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "198973",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In order to comply with §10.2 of this title (relating to Annual Local Debt Report Required from Political Subdivision), on an annual basis, and within 180 days of the end of the most recently completed fiscal year, a political subdivision shall, in accordance with the reporting requirements set forth under Local Government Code, §140.008, either:(1) submit an Annual Local Debt Report to the comptroller as described in §10.3 of this title (relating to Submission of Annual Local Debt Report to Comptroller), in the form and in the manner prescribed by the comptroller and, if the political subdivision maintains an Internet website, continually maintain a link from its website to the location on the comptroller's website where the political subdivision's financial information may be viewed; or(2) post its contact information and the information required in an Annual Local Debt Report on the political subdivision's own Internet website and make the report available for inspection by any person in accordance with other law.(b) For Fiscal Year 2019 and Fiscal Year 2020, a political subdivision shall submit to the comptroller or post the annual debt information described in subsection (a) of this section by the later of 180 days after the end of the respective fiscal year or 180 days after the effective date of this rule, as amended.(c) A political subdivision that elects to post a report of its financial information on its own Internet website as described in subsection (a)(2) of this section shall provide upon request an electronic link to the location on the political subdivision's website where the information can be viewed to facilitate compliance with the requirements of this subsection and to enable the comptroller to maintain a searchable database of local debt information that is comprehensive, accurate, and complete.",
            "sourceNote": "Source Note: The provisions of this §10.4 adopted to be effective January 3, 2018, 42 TexReg 7718; amended to be effective April 5, 2020, 45 TexReg 2207."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198973&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "198973",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "10",
                "label": "TRANSPARENCY"
            },
            "subchapter": {
                "number": "A",
                "label": "ANNUAL REPORT OF FINANCIAL INFORMATION BY POLITICAL SUBDIVISION"
            },
            "rule": {
                "number": "§10.5",
                "label": "Alternative Form of Financial Information for Report; Alternative Reporting Option Available for Certain Types of Districts"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198974&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "198974",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A political subdivision that is a district as defined by Water Code, §49.001, complies with the requirements of this subchapter if the district, on an annual basis, complies with the requirements of Water Code, Chapter 49, Subchapter G, regarding audit reports, affidavits of financial dormancy, and annual financial reports, and:(1) submits the financial documents described in this subsection to the comptroller in the form and manner prescribed by the comptroller, on an annual basis and within 180 days of the end of the most recently completed fiscal year; or(2) ensures that such documents are made available at a regular office of the district for inspection by any person and, if the district maintains an Internet website, that the documents are posted continuously for public viewing on the district's Internet website.(b) For Fiscal Year 2019 and Fiscal Year 2020, a district shall submit to the comptroller, or post on the district's website and make available for public inspection, as applicable, the information described in subsection (a) of this section in accordance with the requirements of this section by the later of 180 days after the end of the respective fiscal year or 180 days after the effective date of this rule, as amended.(c) A district that is eligible for and that elects to avail itself of the alternative reporting method described in subsection (a)(2) of this section shall provide upon request confirmation to the comptroller of the district's compliance with that section by: providing an electronic link to the location on the district's website where the pertinent financial documents have been posted for public viewing, if applicable; or by otherwise affirming and acknowledging to the comptroller that the district has made the documents available for public inspection at a regular office of the district.",
            "sourceNote": "Source Note: The provisions of this §10.5 adopted to be effective January 3, 2018, 42 TexReg 7718; amended to be effective April 5, 2020, 45 TexReg 2207."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198974&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "198974",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "10",
                "label": "TRANSPARENCY"
            },
            "subchapter": {
                "number": "A",
                "label": "ANNUAL REPORT OF FINANCIAL INFORMATION BY POLITICAL SUBDIVISION"
            },
            "rule": {
                "number": "§10.6",
                "label": "Comptroller Procedures"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=185825&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "185825",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The comptroller shall post on the comptroller's Internet website financial information and documents submitted under this subchapter, and any other information the comptroller considers relevant or necessary to fulfill its obligations under Local Government Code, §140.008, in the format that the comptroller determines to be appropriate and feasible subject to any limitations on the availability of such information to the comptroller, any limitations on format compatibility, and ability to comply with applicable technical accessibility standards and specifications set forth in the comptroller's electronic and information resources accessibility policy, which can be viewed on the comptroller's website at: https://comptroller.texas.gov/about/policies/accessibility.php.(b) The comptroller is committed to making its website and all electronic and information resources accessible to persons with disabilities by applying principles of accessibility and usability design to its information collection and publication practices. Accordingly, the comptroller shall require documents and other information submitted to it under this subchapter to comply with the accessibility standards and specifications described in 1 TAC Chapters 206 and 213, and reserves the right to reject non-compliant submissions. Moreover, the comptroller shall post information and documents submitted to it under this subchapter to the comptroller's Internet website to the extent that doing so complies with applicable technical accessibility standards and specifications established in the electronic and information resources accessibility policy adopted by the comptroller under other law.",
            "sourceNote": "Source Note: The provisions of this §10.6 adopted to be effective January 3, 2018, 42 TexReg 7718; amended to be effective April 5, 2020, 45 TexReg 2207."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=185825&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "185825",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "11",
                "label": "GOVERNMENT GROWTH IMPACT STATEMENT"
            },
            "rule": {
                "number": "§11.1",
                "label": "Government Growth Impact Statements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=142858&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "142858",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Regulation--A rule.(2) Rule--(A) a state agency statement of general applicability that:(i) implements, interprets, or prescribes law or policy; or(ii) describes the procedure or practice requirements of a state agency;(B) includes the amendment or repeal of a prior rule; and(C) does not include a statement regarding only the internal management or organization of a state agency and not affecting private rights or procedures.(3) State agency--A state officer, board, commission, or department with statewide jurisdiction that makes rules or determines contested cases. The term includes the State Office of Administrative Hearings for the purpose of determining contested cases, and, to the extent provided by Labor Code, Title 5 (Workers' Compensation), the Texas Department of Insurance, as regards proceedings and activities under Labor Code, Title 5, of the department, the commissioner of insurance, or the commissioner of workers' compensation. The term does not include:(A) a state agency wholly financed by federal money;(B) the legislature;(C) the courts; or(D) an institution of higher education.(b) A state agency shall prepare a government growth impact statement for each rule that is proposed for adoption in a formal rulemaking proceeding under Government Code, Chapter 2001, Subchapter B (Rulemaking).(c) A state agency shall incorporate the government growth impact statement into the notice required by Government Code, §2001.024 (Content of Notice).(d) A state agency shall reasonably describe in the government growth impact statement whether, during the first five years that the proposed rule would be in effect:(1) the proposed rule creates or eliminates a government program;(2) implementation of the proposed rule requires the creation of new employee positions or the elimination of existing employee positions;(3) implementation of the proposed rule requires an increase or decrease in future legislative appropriations to the agency;(4) the proposed rule requires an increase or decrease in fees paid to the agency;(5) the proposed rule creates a new regulation;(6) the proposed rule expands, limits, or repeals an existing regulation;(7) the proposed rule increases or decreases the number of individuals subject to the rule's applicability; and(8) the proposed rule positively or adversely affects this state's economy.(e) The state agency must write the government growth impact statement in plain language.(f) In preparing the government growth impact statement, a state agency shall utilize information that is readily available to the state agency.",
            "sourceNote": "Source Note: The provisions of this §11.1 adopted to be effective October 1, 2017, 42 TexReg 5146."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=142858&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "142858",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "12",
                "label": "ECONOMIC GROWTH"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL DEFINITIONS"
            },
            "rule": {
                "number": "§12.1",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=142859&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "142859",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this chapter shall have the following meanings, unless the context clearly indicates otherwise.(1) \"Comptroller\" means the Comptroller of Public Accounts, and any division or entity within the Office of the Comptroller or managed by the comptroller.(2) \"Person\" means an individual or corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity.(3) \"Staff\" means employees of the comptroller selected by the comptroller to serve on behalf of the comptroller or assist in the performance of duties delegated to the comptroller.",
            "sourceNote": "Source Note: The provisions of this §12.1 adopted to be effective October 18, 2009, 34 TexReg 7205."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=142859&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "142859",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "12",
                "label": "ECONOMIC GROWTH"
            },
            "subchapter": {
                "number": "B",
                "label": "ADVISORY COMMITTEES"
            },
            "rule": {
                "number": "§12.51",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=142860&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "142860",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this subchapter shall have the following meanings, unless the context clearly indicates otherwise.(1) \"Act\" means Government Code, Chapter 490E, as adopted by Senate Bill 2534, 81st Legislature, 2009.(2) \"Advisory committee\" means an advisory committee created pursuant to the Act.(3) \"Representatives of affected landowners\" means a person:(A) that owns a significant interest in real property within the geographic area that is the focus of the advisory committee;(B) an individual designated as a representative by a person identified in subparagraph (A) of this paragraph; or(C) an individual or individuals designated by an association or organization that is known to represent the interests of persons identified in subparagraph (A) of this paragraph.(4) \"Representatives of conservation interests\" means individuals with a significant interest in the preservation of natural resources within the geographic area that is the focus of the advisory committee.(5) \"Representatives of municipalities or other affected jurisdictions\" means individuals identified with or designated by municipalities or other governmental entities any part of which is within or contiguous to the geographic area that is the focus of the advisory committee.(6) \"Task Force\" means the interagency task force on economic growth and endangered species created under the Act.",
            "sourceNote": "Source Note: The provisions of this §12.51 adopted to be effective October 18, 2009, 34 TexReg 7205."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=142860&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "142860",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "12",
                "label": "ECONOMIC GROWTH"
            },
            "subchapter": {
                "number": "B",
                "label": "ADVISORY COMMITTEES"
            },
            "rule": {
                "number": "§12.52",
                "label": "Advisory Board Creation, Purpose and Composition"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=142861&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "142861",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) With the advice of the task force, the comptroller may create advisory committees to assist the task force with its work. The comptroller may prepare and provide to the task force an advisory committee framework statement that identifies:(1) the purpose and task of the advisory committee;(2) the geographic area which will be the focus of an advisory committee;(3) proposed members to the advisory committee in accord with subsection (b) of this section, identifying one of such members to serve as interim presiding officer;(4) the method and time for the advisory committee to submit its recommendations to the comptroller and task force;(5) timelines for the completion of work of the committee; and(6) any other matter that the comptroller determines to be necessary or appropriate.(b) The comptroller shall propose members for the advisory committee that provide the balance necessary to address economic, environmental, and policy issues related to the specific issue or action under consideration by selecting of the total number of committee members:(1) one-third of the members to be representatives of affected landowners;(2) one-third of the members to be representatives of conservation interests; and(3) one-third of the members to be representatives of municipalities or other affected jurisdictions.(c) The comptroller may prepare an advisory committee framework with such amendments as deemed appropriate and send the framework to each selected committee member as an appointment to serve on the committee. The comptroller may amend the advisory committee framework at any time.(d) In the event of a permanent vacancy occurring on the committee at any time, the comptroller may appoint a replacement consistent with subsection (b) of this section.",
            "sourceNote": "Source Note: The provisions of this §12.52 adopted to be effective October 18, 2009, 34 TexReg 7205."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=142861&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "142861",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "12",
                "label": "ECONOMIC GROWTH"
            },
            "subchapter": {
                "number": "B",
                "label": "ADVISORY COMMITTEES"
            },
            "rule": {
                "number": "§12.53",
                "label": "Meetings"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=142862&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "142862",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The advisory committee is required to meet as often as necessary to complete the work of the committee.(b) Meetings shall be called by the advisory committee's presiding officer.(c) Meetings shall be subject to the requirements of the Open Meetings Act.",
            "sourceNote": "Source Note: The provisions of this §12.53 adopted to be effective October 18, 2009, 34 TexReg 7205."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=142862&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "142862",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "12",
                "label": "ECONOMIC GROWTH"
            },
            "subchapter": {
                "number": "B",
                "label": "ADVISORY COMMITTEES"
            },
            "rule": {
                "number": "§12.54",
                "label": "General Advisory Board Responsibilities"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19875&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19875",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An advisory committee shall provide advice and recommendations to the task force by identifying cost-efficient and effective recommendations for economic development and Endangered Species Act compliance in the geographic area designated in its framework.(b) An advisory committee may provide advice and recommendations to the task force regarding such other matters as designated in its framework.",
            "sourceNote": "Source Note: The provisions of this §12.54 adopted to be effective October 18, 2009, 34 TexReg 7205."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19875&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19875",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "13",
                "label": "UNCLAIMED PROPERTY REPORTING AND COMPLIANCE"
            },
            "rule": {
                "number": "§13.3",
                "label": "Knowledge of Owner"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199195&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "199195",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A holder of unclaimed property may establish its knowledge of the existence or whereabouts of the owner of that property by recording any owner-generated activity relating to that property. The mailing of a statement, confirmation, or other correspondence by a holder of unclaimed property to the last-known address of the owner of that property and the nonreturn of such mail to the holder is insufficient to establish that the holder has knowledge of the existence or whereabouts of the owner.",
            "sourceNote": "Source Note: The provisions of this §13.3 adopted to be effective February 10, 1984, 9 TexReg 487; transferred effective September 1, 1996, as published in the Texas Register October 16, 1998, 23 TexReg 10655."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199195&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "199195",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "13",
                "label": "UNCLAIMED PROPERTY REPORTING AND COMPLIANCE"
            },
            "rule": {
                "number": "§13.4",
                "label": "Report and Delivery of Certain Tangible Personal Property"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207544&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207544",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Tangible personal property shall be reported in the manner prescribed in the current Comptroller's Unclaimed Property Reporting Instructions. For tangible personal property other than the contents of a safety deposit box, a holder shall, at the time of making a property report, separately provide to the comptroller an inventory of the property that:(1) clearly describes the property being reported; and(2) identifies whether the property is contaminated by biohazardous or other medical waste.(b) The comptroller may require a holder to provide additional information about the property that is reportable under this section.(c) A holder shall not deliver property reported under this section to the comptroller until the earlier of January 1 or the date the comptroller requests a holder deliver the property.(d) The comptroller may determine that property reported under this section has insubstantial commercial value and may require that a holder dispose of any such property.",
            "sourceNote": "Source Note: The provisions of this §13.4 adopted to be effective May 11, 2020, 45 TexReg 3135."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207544&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207544",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "13",
                "label": "UNCLAIMED PROPERTY REPORTING AND COMPLIANCE"
            },
            "rule": {
                "number": "§13.5",
                "label": "Reportability of Worthless and Non-freely Transferable Securities"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199193&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "199193",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Non-freely transferable security--A security that cannot be delivered to the comptroller by a custodian of securities providing post-trade clearing and settlement services to financial markets, a security that cannot be delivered to the comptroller because there is no agent to effect transfer, or a security that the comptroller may not purchase or hold as an investment under any applicable law. The term includes a worthless security.(2) Worthless security--A security with a market value of zero or whose cost of liquidation and delivery to the comptroller would exceed the value of the security on the date a report is due under Property Code, Chapter 74. A worthless security includes a warrant, right or other option whose expiration dates have passed.(b) A holder shall not report or deliver a worthless or non-freely transferable security to the comptroller as unclaimed property.(c) The comptroller may provide annual guidance to holders of securities regarding the reportability of non-freely transferable or worthless securities under this section. For the purposes of this section, a holder may rely on the guidance of the comptroller in determining whether a security is reportable under Property Code, Chapter 74.",
            "sourceNote": "Source Note: The provisions of this §13.5 adopted to be effective January 27, 2022, 47 TexReg 155."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199193&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "199193",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "13",
                "label": "UNCLAIMED PROPERTY REPORTING AND COMPLIANCE"
            },
            "rule": {
                "number": "§13.6",
                "label": "Minimum Requirements for a Claim"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199194&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "199194",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A claim under Property Code, Chapter 74, Subchapter F, must identify:(1) the name of each claimant;(2) the mailing address for each claimant;(3) the social security number or employer identification number of each claimant, or a statement that a claimant does not have such a number; and(4) each specific property in the possession of the comptroller that is being claimed by reference to the unique property identification number assigned to each claimed property by the comptroller.",
            "sourceNote": "Source Note: The provisions of this §13.6 adopted to be effective May 11, 2020, 45 TexReg 3135."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199194&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "199194",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "13",
                "label": "UNCLAIMED PROPERTY REPORTING AND COMPLIANCE"
            },
            "rule": {
                "number": "§13.7",
                "label": "Identification of Claimed Property; Burden"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199196&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "199196",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A person making a claim for property under Property Code, Title 6, has the burden to identify each specific property or properties in the possession of the comptroller to which the person is making a claim.",
            "sourceNote": "Source Note: The provisions of this §13.7 adopted to be effective May 11, 2020, 45 TexReg 3135."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199196&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "199196",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "13",
                "label": "UNCLAIMED PROPERTY REPORTING AND COMPLIANCE"
            },
            "rule": {
                "number": "§13.8",
                "label": "Certain Mineral Proceeds; Supporting Documentation Required"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207545&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207545",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) For mineral proceeds reported to the comptroller as having an unknown or unidentified owner, a person making a claim for the mineral proceeds must, in addition to the requirements of §13.6, of this title (relating to Minimum Requirements for a Claim) include documentation demonstrating that the claimant either:(1) was the owner of the underlying mineral interest or had an interest, whether possessory or non-possessory, in the mineral proceeds at the time the minerals were produced; or(2) is the legal heir or successor in title of the person who was the owner of the underlying mineral interest, whether possessory or non-possessory, or who had an interest in the mineral proceeds at the time the minerals were produced.(b) The comptroller may require a person claiming mineral proceeds under this section to provide a final judgment in an action to quiet title, as to all potential owners or claimants of the underlying mineral interest, issued by a court of competent jurisdiction in the county in which each mineral interest is located.(c) For a claim made under this section, the comptroller may require additional documentation as may be appropriate under the circumstances, including information about heirship and transfer of property by probate proceedings, deed, or other method of conveyance.",
            "sourceNote": "Source Note: The provisions of this §13.8 adopted to be effective May 11, 2020, 45 TexReg 3135."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207545&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207545",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "13",
                "label": "UNCLAIMED PROPERTY REPORTING AND COMPLIANCE"
            },
            "rule": {
                "number": "§13.9",
                "label": "Documentation Requirements to Establish Heirship"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207546&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207546",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A person making a claim for unclaimed property reported to the comptroller as a legal heir of a reported owner or of the reported owner's heirs or devisees must submit the following documentation:(1) for claims equal to or less than $5,000, a copy of an affidavit of heirship from two disinterested witnesses attesting to the family history of each deceased owner, heir, or devisee, through whom the claimant is claiming legal heirship;(2) for claims greater than $5,000 but equal to or less than $10,000, a copy of an affidavit of heirship from two disinterested witnesses attesting to the family history of each deceased owner, heir, or devisee, through whom the claimant is claiming legal heirship that has been recorded in the county in which the decedent died or was residing at the time of the decedent's death;(3) for claims greater than $10,000 but equal to or less than $75,000, a small estate affidavit that substantially complies with the requirements of Estates Code, Chapter 205; or(4) for claims greater than $75,000, a judicial determination of heirship.(b) The comptroller may waive the documentation requirements of subsection (a) of this section and may request other documentation as may be appropriate under the circumstances to demonstrate the claimant is a legal heir of the reported owner.",
            "sourceNote": "Source Note: The provisions of this §13.9 adopted to be effective January 27, 2022, 47 TexReg 155."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207546&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207546",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "13",
                "label": "UNCLAIMED PROPERTY REPORTING AND COMPLIANCE"
            },
            "rule": {
                "number": "§13.10",
                "label": "Durable Powers of Attorney"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=143431&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "143431",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A person holding a durable power of attorney who makes a claim on behalf of a reported owner or other person must, in addition to presenting a copy of the durable power of attorney, provide the comptroller with a statement from a physician attending the principal that states that the claimant is presently disabled or incapacitated.(b) Before accepting a durable power of attorney the comptroller may require the agent presenting the power of attorney to provide an agent's certification that substantially complies with Estates Code, §751.203.",
            "sourceNote": "Source Note: The provisions of this §13.10 adopted to be effective January 27, 2022, 47 TexReg 155."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=143431&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "143431",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "13",
                "label": "UNCLAIMED PROPERTY REPORTING AND COMPLIANCE"
            },
            "rule": {
                "number": "§13.16",
                "label": "Applicability"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=143432&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "143432",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Pursuant to Texas Government Code, Chapters 411, 811, and 821, and Texas Labor Code, Chapter 301, §§13.17, 13.18 and 13.19 of this title (relating to Definitions, Provisions of Information to the Comptroller, and Limitations) apply to all state agencies for the purpose of assisting the comptroller in the identification of persons entitled to unclaimed property reported to the comptroller.",
            "sourceNote": "Source Note: The provisions of this §13.16 adopted to be effective December 7, 2009, 34 TexReg 8783."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=143432&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "143432",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "13",
                "label": "UNCLAIMED PROPERTY REPORTING AND COMPLIANCE"
            },
            "rule": {
                "number": "§13.17",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=143433&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "143433",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) \"Agency\" means the Department of Public Safety, Employees Retirement System, Teacher Retirement System, and the Texas Workforce Commission.(2) \"Comptroller\" means the Comptroller of Public Accounts.(3) \"Information\" means the name, address, social security number, date of birth, driver's license or state identification number, and any other information the comptroller believes will aid its efforts to locate persons with unclaimed property reported to the comptroller.(4) \"Transfer\" means transferred electronically over secure format.",
            "sourceNote": "Source Note: The provisions of this §13.17 adopted to be effective December 7, 2009, 34 TexReg 8783."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=143433&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "143433",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "13",
                "label": "UNCLAIMED PROPERTY REPORTING AND COMPLIANCE"
            },
            "rule": {
                "number": "§13.18",
                "label": "Provisions of Information to the Comptroller"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=143434&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "143434",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Each state agency shall transfer to the comptroller all information not later than June 1. A state agency may transfer information to the comptroller more often than one time per year. A state agency may periodically update previously transferred information as often as the comptroller and state agency deem necessary.(b) A state agency shall transfer information in a format that recognizes the security concerns of transmitting the information. The comptroller and state agencies shall take precautions to protect the confidentiality of the information transferred. The comptroller and state agencies shall work collaboratively to develop the means and processes to securely transfer information from the state agencies to the comptroller.(c) After using the information provided by the state agencies to identify persons that may have claims to unclaimed property held by the comptroller, the comptroller may purge the information from its systems provided that the purging of the information takes into account the security, sensitivity and confidentiality of the information to be purged.",
            "sourceNote": "Source Note: The provisions of this §13.18 adopted to be effective December 7, 2009, 34 TexReg 8783."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=143434&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "143434",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "13",
                "label": "UNCLAIMED PROPERTY REPORTING AND COMPLIANCE"
            },
            "rule": {
                "number": "§13.19",
                "label": "Limitations"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199197&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "199197",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Nothing in §§13.16, 13.17, 13.18 and 13.19 of this title (relating to Applicability, Definitions, Provisions of Information to the Comptroller, and Limitations) requires a state agency to search for or transfer information held outside its normal course of business.(b) Information provided to the comptroller is confidential and may not be disclosed to the public.(c) The comptroller shall use the information provided by the state agencies exclusively for the purposes of identifying persons entitled to unclaimed property reported to the comptroller.",
            "sourceNote": "Source Note: The provisions of this §13.19 adopted to be effective December 7, 2009, 34 TexReg 8783."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199197&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "199197",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "13",
                "label": "UNCLAIMED PROPERTY REPORTING AND COMPLIANCE"
            },
            "rule": {
                "number": "§13.21",
                "label": "Property Report Format"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209335&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "209335",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Property report(s) filed by a holder pursuant to Property Code, Chapters 72-75 and 77, shall be submitted to the comptroller in the NAUPA Standard Electronic File format prescribed in the Comptroller's Unclaimed Property Reporting Instructions. A property report filed under this title must be filed electronically via one of the online submission methods specified in the Comptroller's Unclaimed Property Reporting Instructions.(b) Information contained in property report(s) shall comply with the data entry standards for property type, securities delivery and country codes, owner name and property description fields, and abbreviations of owner title and common terms as specified in the Unclaimed Property Reporting Instructions.(c) Incomplete reports and reports not meeting the format specifications described above will be rejected by the comptroller and returned to the holder for correction. The comptroller will keep a copy of any report that is returned for correction.(d) Information shall be submitted in a format that is accessible by the comptroller's office. Reports that are encrypted, corrupted, or otherwise inaccessible will be rejected by the comptroller and returned to the holder for correction. The comptroller will keep a copy of any report that is returned for correction.(e) When a report is rejected, the responsible holder shall submit a revised, complete, accessible and properly formatted report to the comptroller no later than 30 calendar days after notification of the rejection.(f) If a complete, accessible, and properly formatted report is not resubmitted within 30 calendar days after notification of the rejection, the holder will be considered delinquent and subject to interest and civil penalties and criminal charges in Property Code, Chapter 74, Subchapter H, until a complete and properly formatted report is submitted to the comptroller.",
            "sourceNote": "Source Note: The provisions of this §13.21 adopted to be effective December 30, 2013, 38 TexReg 9603; amended to be effective May 11, 2020, 45 TexReg 3135."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209335&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "209335",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "14",
                "label": "TEXAS BULLION DEPOSITORY"
            },
            "rule": {
                "number": "§14.1",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187123&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "187123",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "As used in this chapter and in these rules, the following words and terms shall have the following meanings, unless the context clearly indicates otherwise:(1) Account services--Are those services and transactions performed by a depository agent that are made in connection with creating, transferring, clearing, settling, or liquidating the rights and interests of a depository account holder in a depository account.(A) Account services include:(i) assisting retail customers in opening or creating a depository account;(ii) accepting deposits from depository account holders on behalf of the depository;(iii) processing withdrawal requests;(iv) assisting retail customers in transferring depository account balances;(v) assisting retail customers in closing a depository account; and(vi) otherwise accessing the depository account of a depository account holder to help manage the account on behalf of the depository account holder.(B) For the purposes of this chapter account services do not include:(i) participation as a party or counterparty to a purchase or sale of bullion or specie, if the purchase or sale is an independent transaction and the bullion or specie is not being purchased or sold on behalf of the depository; or(ii) arranging the shipment, delivery or transport of precious metals, bullion or specie to the depository, if the transaction is made or provided by a person who is not authorized to act on behalf of the depository and the transaction does not involve accessing the account of a depository account holder.(2) Administrator--The bullion depository administrator appointed by the comptroller to administer, supervise, and direct the operations and affairs of the depository or the administrator's designee.(3) Bullion--Precious metals that are formed into uniform shapes and quantities such as ingots, bars, or plates, with uniform content and purity, as are suitable for or customarily used in the purchase, sale, storage, transfer, and delivery of bulk or wholesale transactions in precious metals.(4) Business day--A day other than a Saturday, Sunday, or banking holiday for a bank chartered under the laws of this state.(5) Deposit--The establishment of an executory obligation of the depository to deliver to the order of the person establishing with the depository the obligation, on demand, a quantity of a specified precious metal, in bullion or specie, or a combination of bullion and specie, equal to the quantity of the same precious metal delivered by or on behalf of the depositor into the custody of the depository or a depository agent, subject to the terms of the depository account agreement.(6) Depositor--A person who makes a deposit.(7) Depository--The Texas Bullion Depository, a state agency, created by Government Code, §2116.002.(8) Depository account--The business arrangement between the depository and a depositor through which the depository provides services to a depositor and records transactions that evidence the rights, interests, and entitlements established in favor of a depositor with respect to a deposit of bullion or specie.(9) Depository account holder--The original depositor for a depository account, or the successor or assignee of the original depositor.(10) Depository agent-- A financial institution that has entered into an agreement with the depository to provide a retail location for the provision of depository services to the general public for or on behalf of the depository.(11) Fees--The fees, service charges, penalties or other amounts charged to a depository account holder for services or activities regarding a depository account.(12) Financial Institution--Has the meaning assigned by Finance Code, §201.101.(13) For or on behalf of the depository--Pursuant to express authorization by the depository. A service or transaction is not made for or on behalf of the depository unless the person providing the service or transaction has entered into an agreement with the depository to act as a depository agent and the person acts only within the scope of authority conferred by the agreement or the depository is a party to the transaction. The depository is not a party to a transaction involving the shipment, transport, or delivery of precious metals, bullion or specie merely by virtue of the fact that the depository is the destination for such shipment, transport, or delivery.(14) Precious metal--A metal, including gold, silver, platinum, palladium, and rhodium, that:(A) bears a high value-to-weight ratio relative to common industrial metals; and(B) customarily is formed into bullion or specie.(15) Specie--A precious metal stamped into coins of uniform shape, size, design, content, and purity, suitable for or customarily used as currency, as a medium of exchange, or as the medium for purchase, sale, storage, transfer, or delivery of precious metals in retail or wholesale transactions.",
            "sourceNote": "Source Note: The provisions of this §14.1 adopted to be effective December 27, 2017, 42 TexReg 7411; amended to be effective June 29, 2022, 47 TexReg 3694."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187123&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "187123",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "14",
                "label": "TEXAS BULLION DEPOSITORY"
            },
            "rule": {
                "number": "§14.2",
                "label": "Standards for Deposit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209336&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "209336",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If the depository determines that doing so is necessary to ensure compliance with the law, prevent fraud, or otherwise protect the interests of the depository, this state, its agencies, or political subdivisions of this state, the depository may:(1) refuse to open a depository account for any person, whether acting in the person's own right, as trustee, or in another fiduciary capacity;(2) deny, refuse, or return any deposit of bullion or specie;(3) close or otherwise terminate without notice the depository account of any person; or(4) refuse to honor a request for the transfer of an account or account balance.(b) To protect the security and integrity of the depository, the depository need not provide a reason for the refusal, denial, or closure or an account under subsection (a) of this section.(c) Deposits of bullion and specie, regardless of form, will be recorded in units of troy ounces pure and will specify the type and quantity of each precious metal that is deposited.(d) Deposits of bullion and specie that are credited to a depository account may be further classified by reference to:(1) the particular form in which the metals were deposited;(2) the mint at which the metals were produced;(3) denomination;(4) assay mark; or(5) any other indicator as applicable.(e) The depository may restrict the types and sources of precious metals, bullion, or specie that may be deposited with the depository.(f) The depository may restrict the forms in which deposits of precious metals may be made to those forms that conveniently lend themselves to measurement and accounting in units of troy ounces and standardized fractions of troy ounces.(g) The depository shall publish on its website the types, sources, forms, and weights and measures of precious metals, bullion, or specie that may be deposited with the depository.",
            "sourceNote": "Source Note: The provisions of this §14.2 adopted to be effective December 27, 2017, 42 TexReg 7411."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209336&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "209336",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "14",
                "label": "TEXAS BULLION DEPOSITORY"
            },
            "rule": {
                "number": "§14.3",
                "label": "Written Demand for Withdrawal or Delivery"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209337&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "209337",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) As provided by the depository account agreement, a depository account holder may request a withdrawal from the depository of a quantity of precious metal as is available in the depository account holder's depository account. A withdrawal request must be made using a form or format prescribed by the depository. The form or format prescribed by the depository may be electronic and must be submitted either on the depository website or in person to the depository or a depository agent as provided in the account agreement and in accordance with policies established by the depository. All requests for withdrawals must be made in units of troy ounces pure or other applicable weights and measures as established by the depository.(b) Upon receipt of a withdrawal request by either the depository or depository agent, the depository shall make a delivery of the precious metals to the depository account holder within ten business days.(c) The depository may deliver precious metals to the address the depository account holder designated as their address of record, the facility of the depository agent at which presentment was made, or at a facility designated by the depository.(d) For the purposes of this chapter, the requirement to make a delivery of precious metals upon presentment of a suitable written demand within ten business days shall be considered met if the precious metals are shipped to the depository account holder's address of record or are otherwise made available for pick-up at the facility of the depository at which presentment was made or a facility designated by the depository on or before the tenth business day after the written demand is received by the depository.(e) For the purposes of this section, if a withdrawal demand is made by a depository account holder whose withdrawal privileges have been suspended for non-payment of fees or is made in connection with the closure of a depository account, the obligation of the depository to make delivery of precious metals within ten business days shall only commence after all depository fees have been paid and any existing liens or pledges have been released.(f) If a withdrawal demand made under this chapter would result in the value of precious metals held in the account to be less than the fees that have accrued as of the date of the withdrawal demand, the depository may request payment for the accrued fees and the obligation of the depository to make delivery of precious metals within ten business days shall only commence after all accrued depository fees and other charges have been paid. If the depository account holder does not pay the fees within ten business days, the depository may withhold from delivery an amount of precious metals sufficient to secure payment of any fees owed by the depository account holder as of the date of the withdrawal.",
            "sourceNote": "Source Note: The provisions of this §14.3 adopted to be effective December 27, 2017, 42 TexReg 7411; amended to be effective June 29, 2022, 47 TexReg 3694."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209337&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "209337",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "14",
                "label": "TEXAS BULLION DEPOSITORY"
            },
            "rule": {
                "number": "§14.4",
                "label": "Transfer of Depository Account Balances"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187124&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "187124",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) As provided by the depository account agreement, a depository account holder may transfer any portion of a precious metal as is available in the depository account holder's depository account to another depository account or any other person. A transfer request must be made using a form prescribed by the depository. The form prescribed by the depository may be electronic and must be submitted either on the depository website or in person to the depository or a depository agent as provided in the account agreement and in accordance with policies established by the depository. All transfers must be made in units of troy ounces pure or other applicable weights and measures as established by the depository.(b) If a payee under this section is a depository account holder, the depository shall adjust the depository account balances to reflect the transfer by reducing the payor's depository account balance and increasing the depository account balance of the payee accordingly.(c) If a payee under this section is not a depository account holder, upon receipt of a valid transfer request, the depository shall at the option of the payee:(1) deliver to the payee the amount of precious metals transferred by the transfer request, minus any applicable fees; or(2) if the payee is otherwise eligible to open a depository account under applicable laws and regulations, allow the payee to establish a depository account and credit the balance of the payee's account accordingly.(d) The depository may require a non-account holder to provide information as is reasonably necessary to ensure that a delivery of precious metals to a non-account holder under this section is made in accordance with applicable law and policies established by the depository. Notwithstanding any other provision in these rules, the depository is not obligated to honor a transfer request if doing so violates any applicable law or depository policy. A delivery made to a non-account holder payee under this subsection may only be made in person to the payee at a facility designated by the depository.(e) As provided by the depository account agreement or depository policy, precious metals transferred under this section are subject to a settlement period for up to ten business days and may not be sold, withdrawn or otherwise transferred during that period unless approved by the depository.",
            "sourceNote": "Source Note: The provisions of this §14.4 adopted to be effective December 27, 2017, 42 TexReg 7411; amended to be effective June 29, 2022, 47 TexReg 3694."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187124&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "187124",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "14",
                "label": "TEXAS BULLION DEPOSITORY"
            },
            "rule": {
                "number": "§14.5",
                "label": "Establishment of Depository Accounts"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187125&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "187125",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "To establish a depository account, a depositor must complete an account application form and provide the documentation necessary to establish that the depositor is eligible to open a depository account under applicable law and depository written policy. Submission of a signed application constitutes acceptance of the terms applicable to the depository account, and the depository shall not be required to execute the contract in order for the contract to be effective.",
            "sourceNote": "Source Note: The provisions of this §14.5 adopted to be effective December 27, 2017, 42 TexReg 7411."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187125&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "187125",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "14",
                "label": "TEXAS BULLION DEPOSITORY"
            },
            "rule": {
                "number": "§14.6",
                "label": "Electronic and Digital Signatures"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187126&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "187126",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The execution of a contract for a depository account may be made by electronic or digital transmission in a manner prescribed by the depository.",
            "sourceNote": "Source Note: The provisions of this §14.6 adopted to be effective December 27, 2017, 42 TexReg 7411."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187126&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "187126",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "14",
                "label": "TEXAS BULLION DEPOSITORY"
            },
            "rule": {
                "number": "§14.7",
                "label": "Amendment of Account Agreement; Notices"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187129&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "187129",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The depository and the depository account holder may amend the account agreement by mutual consent, or the depository may amend the deposit contract by providing thirty days written notice of the amendment to the account holder. The depository may provide the required notice by sending the notice by e-mail or via its website.",
            "sourceNote": "Source Note: The provisions of this §14.7 adopted to be effective December 27, 2017, 42 TexReg 7411."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187129&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "187129",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "14",
                "label": "TEXAS BULLION DEPOSITORY"
            },
            "rule": {
                "number": "§14.8",
                "label": "Account Statements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209338&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "209338",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The depository may provide periodic account statements to depository account holders. As provided in the depository account agreement, upon receipt of an account statement the depository account holder is responsible for:(1) promptly examining each account statement received from the depository; and(2) giving notice of any discrepancy in the account statement to the depository within thirty days of the date of the account statement.(b) Provision of a periodic account statement constitutes notice of denial of liability for any transaction that is not reflected on the account statement.",
            "sourceNote": "Source Note: The provisions of this §14.8 adopted to be effective December 27, 2017, 42 TexReg 7411."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209338&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "209338",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "14",
                "label": "TEXAS BULLION DEPOSITORY"
            },
            "rule": {
                "number": "§14.9",
                "label": "Fees; Service Charges; Penalties"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187131&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "187131",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The comptroller may set fees, service charges, and penalties to be charged a depository account holder for services or activities regarding a depository account, including fees for an overdraft, an insufficient fund check or draft, or a stop payment order. The comptroller may set or change the fees established under this rule by publishing the applicable fees on the depository website and by sending a notice of any change in fees to depository account holders. The notice may be sent electronically.(b) The depository may without notice to or consent of the depository account holder suspend withdrawal privileges for a depository account or liquidate all or any portion of a depository account to the extent necessary to satisfy any unpaid fees, service charges or penalties as outlined in the depository account agreement or as provided in §14.12 of this title (relating to Applicability of Estates Code).",
            "sourceNote": "Source Note: The provisions of this §14.9 adopted to be effective December 27, 2017, 42 TexReg 7411; amended to be effective June 29, 2022, 47 TexReg 3694."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187131&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "187131",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "14",
                "label": "TEXAS BULLION DEPOSITORY"
            },
            "rule": {
                "number": "§14.10",
                "label": "Transfer of Depository Account"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187132&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "187132",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A depository account may be transferred to another person only on presentation to the depository of:(1) evidence of transfer satisfactory to the depository; and(2) an application for the transfer submitted by the person to whom the depository account is to be transferred.(b) A person to whom a depository account is to be transferred must accept the transferred account subject to the terms of the depository account agreement and must otherwise be eligible to open an account under applicable laws and regulations. If a person to whom a depository account is to be transferred is not eligible to open an account under applicable law and these rules, the depository may close the account and take all steps that are reasonably necessary to deliver to the transferee the balance of the depository account, minus any applicable fees.(c) The depository may require the transferee to provide information as is reasonably necessary to ensure that a delivery of precious metals under this section is made in accordance with applicable law and policies established by the depository.",
            "sourceNote": "Source Note: The provisions of this §14.10 adopted to be effective December 27, 2017, 42 TexReg 7411."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187132&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "187132",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "14",
                "label": "TEXAS BULLION DEPOSITORY"
            },
            "rule": {
                "number": "§14.11",
                "label": "Lien on Depository Account"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187133&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "187133",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Without the need of any further agreement or pledge, the depository has a lien on each depository account owned by a depository account holder to secure any fees, charges, or other obligations owed or that may become owed to the depository in connection with any of the depository account holder's depository accounts.(b) On default in the payment or in the satisfaction of a depository account holder's obligation, the depository, without notice to or consent of the depository account holder, may, to the extent necessary to pay or satisfy the obligation, plus any applicable fees:(1) transfer on the depository's books all or part of the balance of a depository account;(2) liquidate all or part of the balance of a depository account; or(3) suspend withdrawal privileges for all or part of a depository account.(c) To be recognized by the depository, a pledge to a third party by a depository account holder of the holder's rights, interest, and entitlements in and to a depository account must be made on a form prescribed by the depository. A pledge made to a third party in this manner is subject to any lien of the depository on a depository account for unpaid fees, charges, or other obligations of the depository account holder, irrespective of whether the depository's lien was created before or after the pledge to a third party was made or perfected.(d) On the satisfaction of other requirements of law with respect to the perfection and enforcement of a pledge of that type, and subject to a lien of the depository and any applicable fees, the depository may liquidate all or part of the balance of a depository account to the extent necessary to pay or satisfy the pledge, plus any applicable fees.(e) If the depository liquidates all or part of a depository account to pay or satisfy a lien of the depository or a pledge under this section, the depository shall only liquidate the minimum amount of precious metal as is available in the depository account to pay or satisfy the lien or pledge, as determined by reference to the exchange rates applicable at the time of the liquidation. Upon liquidation, the depository shall apply the proceeds to satisfy the lien or pledge and shall refund to the depository account holder any amount in excess of the amount required to pay or satisfy the lien or pledge. The depository shall not be obligated to a depository account holder for any difference between the official exchange rate at the time a request for liquidation was received and the proceeds actually received upon liquidation after satisfaction of any unpaid fees.(f) The depository may require that a secured party seeking to enforce a pledge under this section provide information as is reasonably necessary to ensure that a delivery of precious metals under this section is made in accordance with applicable law and policies established by the depository.",
            "sourceNote": "Source Note: The provisions of this §14.11 adopted to be effective December 27, 2017, 42 TexReg 7411."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187133&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "187133",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "14",
                "label": "TEXAS BULLION DEPOSITORY"
            },
            "rule": {
                "number": "§14.12",
                "label": "Applicability of Estates Code"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187134&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "187134",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The applicable provisions of Estates Code, Chapters 111, 112, and 113, govern a depository account. To be effective, the designation or revocation of rights of survivorship, payment on death, or transfer on death, must be on forms prescribed by the depository unless otherwise provided by law.",
            "sourceNote": "Source Note: The provisions of this §14.12 adopted to be effective December 27, 2017, 42 TexReg 7411."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187134&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "187134",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "14",
                "label": "TEXAS BULLION DEPOSITORY"
            },
            "rule": {
                "number": "§14.13",
                "label": "Powers of Attorney"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187135&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "187135",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "To be effective, a power of attorney by a depository account holder to manage or withdraw precious metals from the depository account holder's depository account must be notarized. Powers of attorney shall be effective for the length of time designated on the form unless earlier revoked by the depository account holder in writing or upon written notice of the death or adjudication of incompetency of the depository account holder.",
            "sourceNote": "Source Note: The provisions of this §14.13 adopted to be effective December 27, 2017, 42 TexReg 7411."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187135&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "187135",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "14",
                "label": "TEXAS BULLION DEPOSITORY"
            },
            "rule": {
                "number": "§14.14",
                "label": "Confiscations, Requisitions, Seizures, and Certain Other Actions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187136&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "187136",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "On receipt of notice of any transaction described by Government Code, §2116.023(a), with respect to all or any portion of the balance of a depository account, the depository shall refer the matter to the appropriate agency for resolution. Until the matter is resolved, the depository shall suspend withdrawal privileges associated with the balances of the depository account. The depository may prescribe procedures to allow voluntary transfers of depository account balances among depository account holders to continue to take place unaffected by the suspension as authorized by this chapter or other applicable law.",
            "sourceNote": "Source Note: The provisions of this §14.14 adopted to be effective December 27, 2017, 42 TexReg 7411."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187136&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "187136",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "14",
                "label": "TEXAS BULLION DEPOSITORY"
            },
            "rule": {
                "number": "§14.15",
                "label": "Official Exchange Rates"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187137&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "187137",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The comptroller shall publish on the depository website the official exchange rate for pricing precious metals transactions in terms of United States dollars or other currencies.",
            "sourceNote": "Source Note: The provisions of this §14.15 adopted to be effective December 27, 2017, 42 TexReg 7411."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187137&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "187137",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "14",
                "label": "TEXAS BULLION DEPOSITORY"
            },
            "rule": {
                "number": "§14.16",
                "label": "Accounting and Reporting of Taxable Gains"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187138&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "187138",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The comptroller shall provide depository account holders with statements or other required documentation needed to report taxable gains and losses arising from depository transactions in a manner that complies with federal law or as prescribed by the Internal Revenue Service. To the extent permitted by law, any statement or other documentation required under this section may be provided electronically.",
            "sourceNote": "Source Note: The provisions of this §14.16 adopted to be effective December 27, 2017, 42 TexReg 7411."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187138&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "187138",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "14",
                "label": "TEXAS BULLION DEPOSITORY"
            },
            "rule": {
                "number": "§14.17",
                "label": "Electronic Information Sharing Systems and Processes"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187139&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "187139",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Depository agents must maintain suitable systems and processes as the comptroller may prescribe for electronic information sharing and communication. All reportable transactions effected on behalf of the depository by depository agents must be reported to the depository and integrated into the depository's records not later than 11:59:59 p.m. on the date of each transaction.(b) The comptroller may prescribe in a depository agent agreement the transactions that are reportable under this rule.",
            "sourceNote": "Source Note: The provisions of this §14.17 adopted to be effective December 27, 2017, 42 TexReg 7411."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187139&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "187139",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "14",
                "label": "TEXAS BULLION DEPOSITORY"
            },
            "rule": {
                "number": "§14.18",
                "label": "Periodic Reports"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187140&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "187140",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A depository agent shall submit monthly, quarterly, and annual reports of all depository transactions not later than the 15th day of the month following the expiration of the period with respect to which such report is submitted. The comptroller may specify the forms or formats of the reports required by this section and may require the reports to be filed electronically.(b) The periodic reports required under this section are in addition to the reports required to be submitted in accordance with Finance Code, Chapter 151.",
            "sourceNote": "Source Note: The provisions of this §14.18 adopted to be effective December 27, 2017, 42 TexReg 7411."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187140&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "187140",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "14",
                "label": "TEXAS BULLION DEPOSITORY"
            },
            "rule": {
                "number": "§14.19",
                "label": "Forms; Notices"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161692&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "161692",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Unless otherwise required by law, the depository may prescribe all forms or other documents required to implement this chapter and may require that the forms be submitted electronically.(b) To the extent applicable and permitted by law, any notices, statements, or other documents required to be provided to a depository account holder by this chapter, these rules, or under the depository account agreement, as amended, may be provided electronically by e-mail or via the depository website.",
            "sourceNote": "Source Note: The provisions of this §14.19 adopted to be effective December 27, 2017, 42 TexReg 7411."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161692&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "161692",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "15",
                "label": "ELECTRONIC TRANSFER OF CERTAIN PAYMENTS TO STATE AGENCIES"
            },
            "subchapter": {
                "number": "A",
                "label": "APPLICABILITY, DEFINITIONS AND PAYMENT CATEGORIES"
            },
            "rule": {
                "number": "§15.1",
                "label": "Applicability and Additional Information"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161693&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "161693",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Any and all payments subject to Government Code, §404.095, must be made in accordance with this chapter.(b) Pursuant to Government Code, §404.095, a person must electronically transfer certain payments to a state agency by one of the means of EFT approved by the comptroller if the following apply:(1) the payment is to a state agency that collected or received more than $50 million in payments during the preceding state fiscal year in fees, fines, penalties, taxes, charges, gifts, grants, donations, and other funds, excluding federal grants and interest and dividend income; and(2) the person paid the state agency a total of $500,000 or more in the preceding state fiscal year in a category of payment listed in §15.4 of this title (relating to Applicable Payment Categories and Voluntary Payments), and the state agency reasonably anticipates that during the current state fiscal year the person will pay the agency $500,000 or more in the same category of payment.(c) The state agencies that typically collect or receive more than $50 million in payments in a state fiscal year are:(1) Comptroller of Public Accounts;(2) Employees Retirement System;(3) General Land Office;(4) Teacher Retirement System;(5) Texas Alcoholic Beverage Commission;(6) Health and Human Services Commission;(7) Texas Department of Motor Vehicles;(8) Texas Department of Public Safety;(9) Texas Department of Transportation;(10) Texas Workforce Commission;(11) Texas Commission on Environmental Quality;(12) Texas Parks and Wildlife Department; and(13) University of Texas System.(d) Pursuant to Government Code, §404.095, a state agency may adopt rules under this chapter that require a person to make payments by EFT using TexNet. The rules under this chapter also apply to all persons who are subject to such adopted state agency rules.(e) For additional information regarding the EFT of certain payments to state agencies under Government Code, §404.095, consult the comptroller's website at http://www.window.state.tx.us/treasops/texnet/.",
            "sourceNote": "Source Note: The provisions of this §15.1 adopted to be effective May 2, 2013, 38 TexReg 2640."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161693&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "161693",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "15",
                "label": "ELECTRONIC TRANSFER OF CERTAIN PAYMENTS TO STATE AGENCIES"
            },
            "subchapter": {
                "number": "A",
                "label": "APPLICABILITY, DEFINITIONS AND PAYMENT CATEGORIES"
            },
            "rule": {
                "number": "§15.2",
                "label": "Approved Means of Electronic Funds Transfer"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161694&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "161694",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Pursuant to Government Code, §404.095(e), the comptroller must adopt rules specifying the approved means of EFT for the payments required under Government Code, §404.095.(b) A person must use TexNet, the State of Texas Financial Network, to make an EFT payment required under Government Code, §404.095. A person may choose any of the following TexNet payment options as an approved means of EFT:(1) ACH debit/direct entry;(2) ACH debit/indirect entry; or(3) ACH credit with addenda record(s) in CCD+ or CTX format.(c) Wire transfer is not an approved means of making payment by EFT under Government Code, §404.095. However, wire transfer may be used in limited circumstances as permitted by §15.41 of this title (relating to Missed Payment Deadline Procedures).",
            "sourceNote": "Source Note: The provisions of this §15.2 adopted to be effective May 2, 2013, 38 TexReg 2640."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161694&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "161694",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "15",
                "label": "ELECTRONIC TRANSFER OF CERTAIN PAYMENTS TO STATE AGENCIES"
            },
            "subchapter": {
                "number": "A",
                "label": "APPLICABILITY, DEFINITIONS AND PAYMENT CATEGORIES"
            },
            "rule": {
                "number": "§15.3",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161695&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "161695",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Access code--A unique and confidential series of numbers assigned to a person by TexNet that allows the person to communicate payment information to the TexNet data collection system.(2) ACH (Automated Clearing House)--A central distribution and settlement point for the electronic clearing of debits and credits between financial institutions subject to regulation under rules of an automated clearinghouse association and applicable regulatory law.(3) ACH credit with addenda record(s)--An ACH transaction in CCD+ or CTX format which is initiated by the person to make an EFT payment.(4) ACH debit/direct entry--An ACH transaction initiated by the comptroller using payment information entered directly into the TexNet data collection system by the person to make an EFT payment.(5) ACH debit/indirect entry--An ACH transaction to make an EFT payment that is initiated by the comptroller, which is based upon payment information entered into the TexNet payment processing system by the person's state agency in a specified manner approved by the comptroller.(6) ACH transaction--An electronic transaction which is cleared through the ACH.(7) Addenda record--A separate record transmitted with an ACH credit which contains payment information in the approved State of Texas addenda record format.(8) Banking holiday--Any holiday observed by the Federal Reserve Bank of Dallas and its member institutions.(9) Business day--Any day when financial transactions are processed through the banking system; normally not a Saturday, Sunday, or a banking holiday.(10) Categories of payments--Those types of payments to a state agency that may trigger a requirement to transfer payment electronically under Government Code, §404.095, as set out in §15.4 of this title (relating to Applicable Payment Categories and Voluntary Payments).(11) CCD+ format (cash concentration or disbursement with one addenda record)--A standard ACH transaction format which includes one addenda record.(12) Comptroller--The Comptroller of Public Accounts and its successors.(13) Comptroller's bank--A financial institution, which is a member of the Federal Reserve System, that the comptroller has contracted with to originate ACH debits or receive ACH credits.(14) CTX format (corporate trade exchange format)--A standard ACH transaction format which includes up to 9,999 addenda records.(15) Due date--Date on which a payment to a state agency by a person is due. If the due date is a Saturday, Sunday, or a banking holiday, the next business day shall be the due date.(16) Electronic Funds Transfer (EFT)--A transfer of funds, other than a transaction originated by check, draft, warrant or similar paper instrument, which is initiated through an electronic terminal, or computer so as to order, instruct, or authorize a financial institution to debit or credit an account in accordance with this chapter.(17) Payment information--The specific information required by the state agency from a person making an EFT payment to ensure accurate credit of the payment.(18) Payor identification number--A unique number assigned by a state agency to a person who makes payments to that state agency.(19) Person--A payor, including, but not limited to an individual, corporation, partnership, association, legal representative, trustee in bankruptcy, receiver, municipality, county, district, or political subdivision, who makes payments to a state agency in any of the separate categories of payments listed in Government Code, §404.095.(20) Person's bank--The financial institution at which the person maintains an account from which electronic transactions will occur.(21) Recurring surcharges--A recurring surcharge that is considered a separate category of payment under the category of other payments to a state agency, as set out in §15.4 of this title.(22) Settlement date--The business day on which funds are electronically transferred from the person's bank account to the appropriate account at the comptroller's bank.(23) State agency--Any agency of the state that during the preceding state fiscal year collected or received more than $50 million in fees, fines, penalties, taxes, charges, gifts, grants, donations, and other funds, excluding federal grants and interest and dividend income. A list of state agencies that typically collect or receive more than $50 million in a state fiscal year is set out in §15.1 of this title (relating to Applicability and Additional Information).(24) State fiscal year--The twelve month period beginning on September 1 of each year and ending on August 31 of the following calendar year.(25) TexNet--The State of Texas Financial Network. TexNet is the exclusive system designed and maintained by the comptroller to facilitate and process the electronic transfer of funds from a person making certain EFT payments to a state agency under Government Code, §404.095.(26) TexNet data collection system--The system designed and maintained by the comptroller to collect payment data to initiate an EFT payment under Government Code, §404.095.(27) TexNet payment processing system--The system designed and maintained by the comptroller to process payment data to facilitate the electronic transfer of funds and related information.(28) Trace number--A number provided to a person by the TexNet data collection system upon receipt of all payment information that uniquely identifies the completed communication.(29) Wire transfer--An unconditional order to a bank to pay a fixed or determinable amount of money to a beneficiary upon receipt or on a day stated in the order that is transmitted by electronic means. Wire transfer is not an approved means of electronic fund transfer as set out in §15.2 of this title (relating to Approved Means of Electronic Funds Transfer), but may be used as permitted by §15.41 of this title (relating to Missed Payment Deadline Procedures).",
            "sourceNote": "Source Note: The provisions of this §15.3 adopted to be effective May 2, 2013, 38 TexReg 2640."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161695&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "161695",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "15",
                "label": "ELECTRONIC TRANSFER OF CERTAIN PAYMENTS TO STATE AGENCIES"
            },
            "subchapter": {
                "number": "A",
                "label": "APPLICABILITY, DEFINITIONS AND PAYMENT CATEGORIES"
            },
            "rule": {
                "number": "§15.4",
                "label": "Applicable Payment Categories and Voluntary Payments"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161697&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "161697",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Each of the following is a separate category of payments to a state agency:(1) fees, with each type of fee listed in §15.5 of this title (relating to Payment Category: Fees) considered a separate category of payment;(2) fines;(3) civil penalties;(4) taxes, with each type of tax listed in §15.6 of this title (relating to Payment Category: Taxes) being considered a separate category; and(5) other payments to a state agency excluding extraordinary payments such as gifts, grants, donations, interest, and dividend income, and one-time surcharges; and listed in §15.7 of this title (relating to Payment Category: Other Payments).(b) A person making payments to a state agency in a particular category of payment who is not required to electronically transfer payments may do so voluntarily, as described in §15.8 of this title (relating to Voluntary Payments by Electronic Funds Transfer).(c) For additional information regarding payment categories and voluntary payments under Government Code, §404.095, consult the state agency and the comptroller's website at http://www.window.state.tx.us/treasops/texnet/.",
            "sourceNote": "Source Note: The provisions of this §15.4 adopted to be effective May 2, 2013, 38 TexReg 2640."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161697&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "161697",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "15",
                "label": "ELECTRONIC TRANSFER OF CERTAIN PAYMENTS TO STATE AGENCIES"
            },
            "subchapter": {
                "number": "A",
                "label": "APPLICABILITY, DEFINITIONS AND PAYMENT CATEGORIES"
            },
            "rule": {
                "number": "§15.5",
                "label": "Payment Category: Fees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161696&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "161696",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "For purposes of making payments to a state agency by EFT under Government Code, §404.095, and this chapter, each of the following fees shall be considered a separate category of payment. Subject to amendment, the categories of fees include, but are not limited to:(1) automotive oil sales fees;(2) battery sales fees;(3) civil fees;(4) coastal protection fees;(5) criminal cost and fees;(6) driver record fees;(7) drug court program fees;(8) hunting and fishing license fees;(9) motor vehicle title application fees;(10) petroleum products delivery fees;(11) photo enforcement fees;(12) registration fees;(13) sexual assault/substance abuse fees;(14) sexual oriented business fees;(15) title application fees;(16) 911 emergency service fees;(17) 911 prepaid wireless emergency service fees; and(18) 911 wireless service fees.",
            "sourceNote": "Source Note: The provisions of this §15.5 adopted to be effective May 2, 2013, 38 TexReg 2640."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161696&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "161696",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "15",
                "label": "ELECTRONIC TRANSFER OF CERTAIN PAYMENTS TO STATE AGENCIES"
            },
            "subchapter": {
                "number": "A",
                "label": "APPLICABILITY, DEFINITIONS AND PAYMENT CATEGORIES"
            },
            "rule": {
                "number": "§15.6",
                "label": "Payment Category: Taxes"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161698&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "161698",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) For purposes of making payments to a state agency by EFT under Government Code, §404.095 and this chapter, each of the following taxes shall be considered a separate category of payment. Subject to amendment, the categories of taxes include, but are not limited to:(1) automobile theft prevention authority assessment tax;(2) bank tax;(3) beer reporting system tax;(4) Bexar county sports venue project tax;(5) boat and boat motor sales tax;(6) cement production tax;(7) cigarette tax;(8) crude oil production tax;(9) diesel fuel tax;(10) direct pay sales tax;(11) Euless city sports venue tax;(12) fireworks sales tax;(13) franchise tax;(14) gasoline tax;(15) gross receipts tax;(16) hotel occupancy tax;(17) insurance maintenance, assessment, and retaliatory tax;(18) insurance premium tax;(19) interest earned on sales tax;(20) international fuel tax agreement (IFTA);(21) interstate trucker fuel tax--diesel/gasoline/liquefied gas;(22) liquefied gas tax;(23) liquor reporting system tax;(24) malt liquor reporting system tax;(25) manufactured housing sales and use tax;(26) mixed beverage gross receipts tax;(27) motor vehicle rental tax;(28) motor vehicle sales tax;(29) natural gas production tax;(30) oil and gas well servicing tax;(31) public utilities gross receipts assessment tax;(32) sales and use tax;(33) seller financed motor vehicle sales tax;(34) sports venue tax;(35) sulphur tax;(36) tobacco products tax;(37) unemployment compensation tax; and(38) volunteer fire department insurance tax.(b) A state agency may not require a person to electronically transfer a protested tax payment. However, a person may voluntarily submit a protested tax payment by EFT. For more information on voluntary protest tax payments consult §3.9 of this title (relating to Electronic Filing of Returns and Reports; Electronic Transfer of Certain Payments by Certain Taxpayers).(c) For more information regarding the procedures to pay taxes by EFT, consult the applicable state agency, §3.9 of this title, and the comptroller's website http://www.window.state.tx.us/treasops/texnet/.",
            "sourceNote": "Source Note: The provisions of this §15.6 adopted to be effective May 2, 2013, 38 TexReg 2640."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161698&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "161698",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "15",
                "label": "ELECTRONIC TRANSFER OF CERTAIN PAYMENTS TO STATE AGENCIES"
            },
            "subchapter": {
                "number": "A",
                "label": "APPLICABILITY, DEFINITIONS AND PAYMENT CATEGORIES"
            },
            "rule": {
                "number": "§15.7",
                "label": "Payment Category: Other Payments"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161699&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "161699",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) For purposes of making payments to a state agency by EFT under Government Code, §404.095 and this chapter, other payments to a state agency include assessments and recurring surcharges, as listed in this section.(b) Assessments shall be considered a separate category of payment.(c) Each of the following recurring surcharges shall be considered a separate category of payment. Subject to amendment, the categories of surcharges include, but are not limited to:(1) motor vehicle registration surcharge;(2) motor vehicle sales surcharge;(3) off-road diesel equipment surcharge;(4) motor vehicle seller financed sales tax surcharge; and(5) 911 equalization surcharge.(d) Other payments to a state agency do not include extraordinary payments such as gifts, grants, donations, interest and dividend income, and one-time surcharges. Subject to amendment, other payments include, but are not limited to:(1) oil royalties;(2) gas royalties;(3) Employee Retirement System contributions;(4) Teacher Retirement System contributions;(5) unclaimed property; and(6) intergovernmental transfers.",
            "sourceNote": "Source Note: The provisions of this §15.7 adopted to be effective May 2, 2013, 38 TexReg 2640."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161699&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "161699",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "15",
                "label": "ELECTRONIC TRANSFER OF CERTAIN PAYMENTS TO STATE AGENCIES"
            },
            "subchapter": {
                "number": "A",
                "label": "APPLICABILITY, DEFINITIONS AND PAYMENT CATEGORIES"
            },
            "rule": {
                "number": "§15.8",
                "label": "Voluntary Payments by Electronic Funds Transfer"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161700&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "161700",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A person who is not required to electronically transfer a particular category of payments to a state agency may do so voluntarily. A person who makes voluntary EFT payments is responsible for:(1) contacting the state agency to which payments are due to obtain the information set out in §15.22(b) of this title (relating to State Agency Applicability Determination and Notification Procedures);(2) enrolling in TexNet as described in §15.31 of this title (relating to TexNet Enrollment); and(3) transferring payments as provided in §15.32 of this title (relating to Transmission of TexNet Payment Information).(b) A person who was previously required to make EFT payments to a state agency who no longer meets the applicable payment threshold may continue to make EFT payments as a voluntary payor without notification to the state agency.(c) A person shall notify the state agency if the person elects to discontinue making voluntary EFT payments.",
            "sourceNote": "Source Note: The provisions of this §15.8 adopted to be effective May 2, 2013, 38 TexReg 2640."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161700&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "161700",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "15",
                "label": "ELECTRONIC TRANSFER OF CERTAIN PAYMENTS TO STATE AGENCIES"
            },
            "subchapter": {
                "number": "B",
                "label": "STATE AGENCY PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§15.21",
                "label": "State Agency Rules Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161701&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "161701",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A state agency which has adopted rules requiring EFT payments pursuant to Government Code, §404.095(c) and §15.1(d) of this title (relating to Applicability and Additional Information) shall notify each person to whom the rules apply. The notice shall include the information set out in §15.22(b) of this title (relating to State Agency Applicability Determination and Notification Procedures) and shall be provided at least 60 days before the first payment is due, but not later than November 1 of each year.(b) All persons to whom state agency rules apply shall be required to electronically transfer payments to the state agency beginning on the date set forth in the notification and thereafter until said person is no longer subject to the state agency's rules.(c) A state agency may not require a person to electronically transfer a protested tax payment, however, a person may choose to pay such payments voluntarily as set out in §15.8 of this title (relating to Voluntary Payments by Electronic Funds Transfer).(d) For additional information on state agency rules and payment instructions, consult the state agency in question and the comptroller's website at: http://www.window.state.tx.us/treasops/texnet/.",
            "sourceNote": "Source Note: The provisions of this §15.21 adopted to be effective May 2, 2013, 38 TexReg 2641."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161701&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "161701",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "15",
                "label": "ELECTRONIC TRANSFER OF CERTAIN PAYMENTS TO STATE AGENCIES"
            },
            "subchapter": {
                "number": "B",
                "label": "STATE AGENCY PRACTICE AND PROCEDURES"
            },
            "rule": {
                "number": "§15.22",
                "label": "State Agency Applicability Determination and Notification Procedures"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161702&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "161702",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) By October 15 of each year, each state agency shall determine which persons are required to make EFT payments to the state agency.(b) By November 1 of each year, each state agency shall notify and send the following information to all persons who are required to make EFT payments, except as provided by subsection (c) of this section:(1) guidelines on payment transfers;(2) guidelines on enrollment in TexNet;(3) the contact information for the personnel at the state agency with whom a person may communicate in the event of questions or problems; and(4) such other information the state agency or the comptroller deems necessary.(c) State agencies shall not be required to notify persons who are currently making EFT payments, nor shall state agencies be required to notify persons who are no longer required to make EFT payments. Persons who are no longer required to make EFT payments shall be considered voluntary payors as set out in §15.8 of this title (relating to Voluntary Payments by Electronic Funds Transfer).(d) Following the determination and notification dates listed in subsections (a) and (b) of this section, all persons required to make EFT payments to a state agency shall do so for the period of one year, beginning January 1 and ending December 31, and each year thereafter until the person no longer meets the payment thresholds set out in §15.1 of this title (relating to Applicability and Additional Information) and does not wish to participate as a voluntary payor as set out in §15.8 of this title.(e) A person may contact the state agency to which payments are due for a determination of whether the person is required to make EFT payments at any time.",
            "sourceNote": "Source Note: The provisions of this §15.22 adopted to be effective May 2, 2013, 38 TexReg 2641."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161702&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "161702",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "15",
                "label": "ELECTRONIC TRANSFER OF CERTAIN PAYMENTS TO STATE AGENCIES"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXNET: GENERAL PAYMENT PROCEDURES"
            },
            "rule": {
                "number": "§15.31",
                "label": "TexNet Enrollment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=194115&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "194115",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The person must complete TexNet enrollment according to the guidelines provided (see §15.22(b) of this title (relating to State Agency Applicability Determination and Notification Procedures)). Upon completion of the TexNet enrollment, and based upon the person's chosen TexNet payment option, the person will be provided with:(1) the access code and instructions for entering payment information into the TexNet data collection system by the chosen method of entry described in §15.32(b) of this title (relating to Transmission of TexNet Payment Information) if the person has chosen ACH debit/direct entry;(2) the instructions for entering payment information in the manner established by the person's state agency and approved by the comptroller if the person has chosen ACH debit/indirect entry; or(3) the routing and account number to which the person shall transfer payment and the approved State of Texas addenda record format if the person has chosen ACH credit with addenda record(s).(b) A person must notify the comptroller (see §15.35 of this title (relating to Notification to the Comptroller)) of any change of information from that given during the TexNet enrollment process or thereafter.(1) A change in the person's bank routing number or account number, or a change to or from the ACH debit/direct entry means of EFT, may be communicated to the comptroller in writing, entered into the TexNet data collection system by the person, or entered into the TexNet payment processing system by the person's state agency in the manner established by the state agency and approved by the comptroller. The change will be effective upon acceptance, unless the change is communicated in writing. If communicated in writing, the change will be effective upon notification to the person by the comptroller of acceptance of the change.(2) A person may communicate any other changes of information from that given in the TexNet enrollment process to the comptroller in writing, by telephone, or by entering it into the TexNet data collection system. Changes are effective immediately, unless the communication is in writing. A written change is effective when the person receives the comptroller's notification of acceptance of the change.",
            "sourceNote": "Source Note: The provisions of this §15.31 adopted to be effective May 2, 2013, 38 TexReg 2641."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=194115&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "194115",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "15",
                "label": "ELECTRONIC TRANSFER OF CERTAIN PAYMENTS TO STATE AGENCIES"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXNET: GENERAL PAYMENT PROCEDURES"
            },
            "rule": {
                "number": "§15.32",
                "label": "Transmission of TexNet Payment Information"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=194116&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "194116",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A person must transmit accurate payment information to ensure proper credit of the payment to the state agency receiving payment.(b) A person's chosen TexNet payment option for EFT (see §15.2(b) of this title (relating to Approved Means of Electronic Funds Transfer)) will determine the method of transmitting payment information.(1) Persons choosing ACH debit/direct entry as the TexNet payment option for EFT shall:(A) enter payment information directly into the TexNet data collection system using either the Internet or a touch-tone telephone in accordance with the instructions established by the state agency and approved by the comptroller;(B) record the trace number provided by the TexNet data collection system once all payment information has been entered by the person;(C) enter any change, correction, or cancellation in the payment information to the TexNet data collection system in accordance with the instructions established by the state agency and approved by the comptroller; and(D) contact the comptroller at the telephone number listed in §15.35 of this title (relating to Notification to the Comptroller) if the person experiences difficulty entering information into the TexNet data collection system.(2) Persons choosing ACH debit/indirect entry as the TexNet payment option for EFT shall enter payment information in the manner and by the deadline established by the state agency to which payment is due and approved by the comptroller.(3) Persons choosing ACH credit with addenda record(s) as the TexNet payment option for EFT shall transmit payment information in the addenda record(s) of the ACH credit in the approved State of Texas addenda record format, as set out in the TexNet instruction booklet for the state agency, which is posted at http://www.window.state.tx.us/treasops/texnet/. A person who does not have access to the Internet may consult with the state agency for further information and TexNet payment instructions.",
            "sourceNote": "Source Note: The provisions of this §15.32 adopted to be effective May 2, 2013, 38 TexReg 2641; amended to be effective February 18, 2019, 44 TexReg 711."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=194116&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "194116",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "15",
                "label": "ELECTRONIC TRANSFER OF CERTAIN PAYMENTS TO STATE AGENCIES"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXNET: GENERAL PAYMENT PROCEDURES"
            },
            "rule": {
                "number": "§15.33",
                "label": "Determination of Settlement Date"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161705&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "161705",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Persons choosing ACH debit/direct entry as the TexNet payment option for EFT may either accept the settlement date offered by the TexNet data collection system or enter a settlement date up to 30 days in the future.(1) If the person accepts the settlement date offered by the TexNet data collection system, it will debit the person's bank account on that date.(2) If the person chooses to enter a settlement date up to 30 days in the future, the person's bank account will be debited on the designated settlement date.(b) For persons choosing ACH debit/indirect entry as the TexNet payment option for EFT, the settlement date will be the date designated in accordance with the instructions established by the state agency and approved by the comptroller.(c) Persons choosing ACH credit with addenda as the TexNet payment option for EFT transfer must initiate payment through the person's bank before the settlement date and the funds must be in the comptroller's bank on the settlement date.(d) A person who misses a payment deadline may use wire transfer to transmit the payment as set out in §15.41 of this title (relating to Missed Payment Deadline Procedures).",
            "sourceNote": "Source Note: The provisions of this §15.33 adopted to be effective May 2, 2013, 38 TexReg 2641; amended to be effective February 18, 2019, 44 TexReg 711."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161705&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "161705",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "15",
                "label": "ELECTRONIC TRANSFER OF CERTAIN PAYMENTS TO STATE AGENCIES"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXNET: GENERAL PAYMENT PROCEDURES"
            },
            "rule": {
                "number": "§15.34",
                "label": "Transfer of Funds to the Comptroller"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161706&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "161706",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Transfer of funds to the comptroller shall occur as follows:(1) For persons choosing ACH debit/direct entry as the TexNet payment option for EFT, the payment amount entered into the TexNet data collection system by the person will be automatically withdrawn from the person's bank account on the designated settlement date as set out in §15.33 of this title (relating to Determination of Settlement Date), and no further action is required.(2) For persons choosing ACH debit/indirect entry as the TexNet payment option for EFT, the payment amount entered into the TexNet payment processing system by the state agency to which payment is due will be automatically withdrawn from the person's bank account on the settlement date and no further action is required.(3) Persons choosing ACH credit with addenda record(s) as the TexNet payment option for EFT must send the ACH credit to the comptroller for settlement on or before the due date. The addenda record(s) must be transmitted in the approved State of Texas addenda record format(s).",
            "sourceNote": "Source Note: The provisions of this §15.34 adopted to be effective May 2, 2013, 38 TexReg 2641."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161706&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "161706",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "15",
                "label": "ELECTRONIC TRANSFER OF CERTAIN PAYMENTS TO STATE AGENCIES"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXNET: GENERAL PAYMENT PROCEDURES"
            },
            "rule": {
                "number": "§15.35",
                "label": "Notification to the Comptroller"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=194117&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "194117",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Any notification to the comptroller regarding EFT payments by mail, telephone, or fax must be directed to: Comptroller of Public Accounts, Treasury Operations, P.O. Box 12608, Austin, Texas 78711, phone number (800) 531-5441, extension 3-3010 and fax (512) 463-1364.",
            "sourceNote": "Source Note: The provisions of this §15.35 adopted to be effective May 2, 2013, 38 TexReg 2641."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=194117&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "194117",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "15",
                "label": "ELECTRONIC TRANSFER OF CERTAIN PAYMENTS TO STATE AGENCIES"
            },
            "subchapter": {
                "number": "D",
                "label": "TEXNET: SPECIAL PAYMENT PROCEDURES"
            },
            "rule": {
                "number": "§15.41",
                "label": "Missed Payment Deadline Procedures"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161709&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "161709",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A person must use the procedures set out in subsections (b) and (c) of this section to ensure timely credit of a payment if a person is making an EFT payment using:(1) ACH debit/direct entry and is unable to enter payment information into the TexNet data collection system in accordance with the instructions established by the state agency and approved by the comptroller;(2) ACH debit/indirect entry and is unable to enter payment information by the deadline specified to transfer the payment information to the TexNet payment processing system; or(3) ACH credit with addenda record(s) and is unable to affect such transfer for credit to the comptroller on the due date.(b) If one of the conditions under subsection (a) of this section applies, then the person must wire transfer the payment to the comptroller by noon central time on the due date, and include the payor identification number and a contact name and telephone number in the wire transfer.(c) The person must also communicate payment information to the comptroller by noon central time on the due date using one of the following means:(1) report the payment information to a comptroller employee by calling the toll-free number listed in §15.35 of this title (relating to Notification to the Comptroller); or(2) enter payment information directly into the TexNet data collection system, if the system accepts wire transfer information for the person's type of payment.",
            "sourceNote": "Source Note: The provisions of this §15.41 adopted to be effective May 2, 2013, 38 TexReg 2642; amended to be effective February 18, 2019, 44 TexReg 712."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161709&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "161709",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "15",
                "label": "ELECTRONIC TRANSFER OF CERTAIN PAYMENTS TO STATE AGENCIES"
            },
            "subchapter": {
                "number": "D",
                "label": "TEXNET: SPECIAL PAYMENT PROCEDURES"
            },
            "rule": {
                "number": "§15.42",
                "label": "Late Payment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161710&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "161710",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) To ensure credit of the payment to the proper state agency and to the correct category of payment, a person must provide correct and timely payment information as described in §15.32 of this title (relating to Transmission of TexNet Payment Information).(b) The state agency to which the payment is due shall make any late payment determination if:(1) the payment is not credited to the proper state agency or to the correct category of payment due to insufficient or incomplete payment information; or(2) as a result of circumstances within the control of the person or the person's bank, the transfer of payment to the appropriate comptroller account fails and the payment is received after the due date.",
            "sourceNote": "Source Note: The provisions of this §15.42 adopted to be effective May 2, 2013, 38 TexReg 2642."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161710&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "161710",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "15",
                "label": "ELECTRONIC TRANSFER OF CERTAIN PAYMENTS TO STATE AGENCIES"
            },
            "subchapter": {
                "number": "D",
                "label": "TEXNET: SPECIAL PAYMENT PROCEDURES"
            },
            "rule": {
                "number": "§15.43",
                "label": "Penalties"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161711&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "161711",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A state agency may assess a penalty of 5.0% of the payment amount due if:(1) a person subject to Government Code, §404.095 and §15.1(a) of this title (relating to Applicability and Additional Information) fails to transfer payment by EFT;(2) a person fails to comply with this chapter; or(3) a person fails to comply with those rules adopted by a state agency under Government Code, §404.095(c).(b) The comptroller will assist state agencies in identifying persons who are not complying with this chapter.",
            "sourceNote": "Source Note: The provisions of this §15.43 adopted to be effective May 2, 2013, 38 TexReg 2642."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161711&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "161711",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "15",
                "label": "ELECTRONIC TRANSFER OF CERTAIN PAYMENTS TO STATE AGENCIES"
            },
            "subchapter": {
                "number": "D",
                "label": "TEXNET: SPECIAL PAYMENT PROCEDURES"
            },
            "rule": {
                "number": "§15.44",
                "label": "Proof of Payment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161707&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "161707",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If a person follows the procedures set out to electronically transfer payment to a state agency, but the payment is not received by the comptroller, a person must produce proof of an attempt to timely transfer payment within 30 days following the attempted payment.(b) A person may rely upon the following information as proof of an attempt to timely transfer payment:(1) the trace number provided by the TexNet data collection system if ACH debit/direct entry is the chosen TexNet payment option for EFT;(2) the trace number provided by the person's state agency if ACH debit/indirect entry is the chosen TexNet payment option for EFT;(3) the trace number assigned by the person's bank if ACH credit with addenda record(s) is the chosen TexNet payment option for EFT; or(4) the Federal Reserve Bank reference number if wire transfer is used as permitted under §15.41 of this title (relating to Missed Payment Deadline Procedures).(c) Upon a determination by the comptroller that the person and the person's bank did timely and correctly attempt to transfer payment, the state agency will correct the applicable payment records upon receipt of the funds from the person.",
            "sourceNote": "Source Note: The provisions of this §15.44 adopted to be effective May 2, 2013, 38 TexReg 2642."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161707&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "161707",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "15",
                "label": "ELECTRONIC TRANSFER OF CERTAIN PAYMENTS TO STATE AGENCIES"
            },
            "subchapter": {
                "number": "D",
                "label": "TEXNET: SPECIAL PAYMENT PROCEDURES"
            },
            "rule": {
                "number": "§15.45",
                "label": "Refunds"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=219648&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "219648",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "If a state agency determines that a person has mistakenly made a payment or overpayment by EFT, the state agency shall return the payment or the amount of the overpayment to the person in the manner established by the state agency.",
            "sourceNote": "Source Note: The provisions of this §15.45 adopted to be effective May 2, 2013, 38 TexReg 2642."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=219648&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "219648",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "BROADBAND POLE REPLACEMENT PROGRAM"
            },
            "rule": {
                "number": "§16.1",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208437&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208437",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Applicant--A person that has submitted an application for a reimbursement award under this subchapter.(2) Broadband serviceable location--A business or residential location in this state at which qualifying broadband service is, or can be, installed, including a community anchor institution.(3) CCPF--The Coronavirus Capital Projects Fund (42 U.S.C. §804), established by §604 of the Social Security Act, as added by §9901 of the American Rescue Plan Act of 2021, Pub. L. No. 117-2.(4) Eligible broadband facility--Has the meaning assigned by Government Code, §403.553(a)(1).(5) Eligible pole replacement cost--Has the meaning assigned by Government Code, §403.553(a)(2).(6) Grant recipient or Grantee--An applicant that receives a reimbursement award under this subchapter.(7) Grant funds--Monies in the pole replacement fund.(8) NOFA--Notice of Funding Availability.(9) Office--The Broadband Development Office established within the comptroller's office under Government Code, Chapter 490I.(10) Pole--Has the meaning assigned by Government Code, §403.553(a)(5).(11) Pole owner--Has the meaning assigned by Government Code, §403.553(a)(6).(12) Pole replacement fund--Has the meaning assigned by Government Code, §403.551(1).(13) Pole replacement program--Has the meaning assigned by Government Code, §403.551(2).(14) Qualifying broadband service--Has the meaning assigned by Government Code, §403.553(a)(3).(15) Unserved area--Has the meaning assigned by Government Code, §403.553(a)(4).",
            "sourceNote": "Source Note: The provisions of this §16.1 adopted to be effective March 17, 2022, 47 TexReg 1294; amended to be effective July 28, 2024, 49 TexReg 5349."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208437&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208437",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "BROADBAND POLE REPLACEMENT PROGRAM"
            },
            "rule": {
                "number": "§16.2",
                "label": "Grant Funds Distribution Method"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=219649&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "219649",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "To ensure that grant funds are used to maximize the deployment of broadband services to the greatest number of unserved areas, the office may:(1) distribute the funds by geographic location; and(2) issue a NOFA for less than the amount available in the pole replacement fund.",
            "sourceNote": "Source Note: The provisions of this §16.2 adopted to be effective March 17, 2022, 47 TexReg 1294."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=219649&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "219649",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "BROADBAND POLE REPLACEMENT PROGRAM"
            },
            "rule": {
                "number": "§16.3",
                "label": "Notice and Applications"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=219650&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "219650",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The office shall use one or more methods as necessary to provide notice of the availability of funds for award under this subchapter including publication in the Texas Register  or on the Electronic State Business Daily  website. The comptroller may make available a copy of the NOFA on the comptroller's website.(b) The NOFA published under subsection (a) of this section may include:(1) the total amount of grant funds available for reimbursement awards;(2) the minimum and maximum amount of grant funds available for each application;(3) limitations on the geographic distribution of grant funds;(4) eligibility requirements;(5) application requirements;(6) reimbursement award and evaluation criteria;(7) the date by which applications must be submitted to the office;(8) the anticipated date of reimbursement awards; and(9) any other information the office determines is necessary for award.(c) All applications for a reimbursement award submitted under this subchapter must comply with the requirements of Government Code, §403.553(g), and any requirements contained in a NOFA published by the office.(d) An application for funding under this subchapter shall be submitted on the forms and in the manner prescribed by the office. The office may require that applications be submitted electronically. (e) The office may require applicants to submit preliminary information to the office prior to submitting a completed application for a reimbursement award to enable the office to determine each applicant's eligibility to apply for a reimbursement award and to compile aggregate information that applicants may use in determining whether to complete the application process.(f) During the review of an application, an applicant may be instructed to submit to the office additional information necessary to complete the review. Such requests for information do not serve as notice that the office intends to fund an application.",
            "sourceNote": "Source Note: The provisions of this §16.3 adopted to be effective March 17, 2022, 47 TexReg 1294; amended to be effective July 28, 2024, 49 TexReg 5349."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=219650&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "219650",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "BROADBAND POLE REPLACEMENT PROGRAM"
            },
            "rule": {
                "number": "§16.4",
                "label": "Program Eligibility Requirements; Eligible Applicants; Costs"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208440&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208440",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The office may award grant funds for actual and reasonable costs paid or incurred by an eligible applicant to remove and replace a pole in an unserved area.(b) An applicant is eligible to apply to the office for a reimbursement award under this subchapter if the applicant:(1) is a pole owner or a provider of qualifying broadband service;(2) pays or incurs eligible pole replacement costs of removing and replacing an existing pole in an unserved area for the purpose of accommodating the attachment of an eligible broadband facility; and(3) otherwise meets eligibility criteria in a NOFA published under §16.3 of this subchapter.(c) Eligible costs include the amount of any expenditures to remove and dispose of the existing pole, purchase and install a replacement pole, and transfer any existing facilities to the new pole.(d) Costs that an applicant incurs that have been or will be reimbursed to the applicant by another party ultimately responsible for the costs are not eligible for reimbursement under this subchapter.(e) An award under this subchapter may not exceed:(1) The lesser of 50% of the eligible pole replacement costs paid or incurred by the applicant or $5,000, whichever is less, for the pole replaced; plus(2) the documented and reasonable administrative expenses incurred by the applicant in preparing and submitting the reimbursement application.(f) The amount reimbursed under subsection (e)(2) of this section may not exceed 5.0% of the eligible pole replacement costs in the application.",
            "sourceNote": "Source Note: The provisions of this §16.4 adopted to be effective March 17, 2022, 47 TexReg 1294; amended to be effective July 28, 2024, 49 TexReg 5349."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208440&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208440",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "BROADBAND POLE REPLACEMENT PROGRAM"
            },
            "rule": {
                "number": "§16.5",
                "label": "Authorized Officials"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208441&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208441",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Each applicant/grantee must designate an authorized official to act on its behalf and the applicant/grantee must provide the office with:(1) the authorized official's name, title, mailing address, telephone number, and email address; and(2) the applicant's/grantee's physical address.(b) An applicant/grantee shall notify the office as soon as practicable of any change in the information provided by it under subsection (a) of this section.",
            "sourceNote": "Source Note: The provisions of this §16.5 adopted to be effective March 17, 2022, 47 TexReg 1294."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208441&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208441",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "BROADBAND POLE REPLACEMENT PROGRAM"
            },
            "rule": {
                "number": "§16.6",
                "label": "Federal Funding"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208442&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208442",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "If CCPF or any other federal funding is used to make a reimbursement award, the office may establish eligibility and program requirements and preferences, and make award decisions, based upon any criteria required by federal law, regulation, or guidance applicable to the type of funding used to make the reimbursement award.",
            "sourceNote": "Source Note: The provisions of this §16.6 adopted to be effective March 17, 2022, 47 TexReg 1294."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208442&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208442",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "BROADBAND POLE REPLACEMENT PROGRAM"
            },
            "rule": {
                "number": "§16.7",
                "label": "Preferences"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=219651&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "219651",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The office may give preference to applications and make awards decisions based upon the following factors:(1) cost effectiveness and overall impact;(2) geographic location;(3) the latest state or federal broadband data;(4) the number of households or businesses that will be served due to the reimbursement being requested;(5) involvement of broadband networks owned, operated by, or affiliated with local governments, non-profits, or cooperatives;(6) completion of the pole replacement and payment of all costs of the pole replacement;(7) investments in fiber-optic infrastructure;(8) affordability of broadband services in a target area;(9) participation in federal programs that provide low-income consumers with subsidies for broadband internet access services;(10) documentation of existing broadband internet service performance;(11) download speeds and upload speeds, including user speed tests resulting from completion of the pole replacement;(12) community involvement in the pole replacement planning process, including feedback from community members, community organizations, and business owners;(13) business practices and workforce information, including the following:(A) the applicant's workforce meets high safety and training standards;(B) the applicant prioritizes the hiring of local workers or workers from historically disadvantaged communities;(C) the applicant ensures that its contractors and subcontractors meet high labor standards; and(D) the applicant has no recent violations of federal and state labor and employment laws; and(14) any additional factors listed in a NOFA published by the office.",
            "sourceNote": "Source Note: The provisions of this §16.7 adopted to be effective March 17, 2022, 47 TexReg 1294."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=219651&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "219651",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "BROADBAND POLE REPLACEMENT PROGRAM"
            },
            "rule": {
                "number": "§16.8",
                "label": "Reimbursement Awards"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=219652&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "219652",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The office shall make a determination and provide notice of a reimbursement award or a notice of denial to an applicant not later than 60 calendar days after the date that the office receives a completed application from the applicant. An application will not be considered complete for purposes of this section unless an applicant has provided all the information necessary for the office to review the application, including any additional information requested by the office to complete the review.(b) The office shall prioritize, and may give preference to, applications for pole replacement costs for poles located in rural areas.(c) All grant funding decisions made by the office are final and are not subject to appeal.(d) The approval of a reimbursement award shall not obligate the office to make any additional, supplemental, or other reimbursement award.(e) The office shall provide notice of award to a successful applicant and, as applicable, the pole owner and the retail broadband service provider attaching the eligible broadband facility.(f) After receiving notice of award, a grant recipient shall have 30 calendar days from receiving the notice of award to negotiate the terms of the grant agreement between the grant recipient and the office and to sign the grant agreement. The comptroller may extend the deadline to fully execute the grant agreement upon a showing of good cause by a grant recipient. If the grant agreement is not signed by the grant recipient and received by the office by the later of the 30th day after the award of the grant agreement or the extended deadline date, the office may rescind the award.(g) The office shall issue the award after the grant agreement is fully executed by the grant recipient and the office.",
            "sourceNote": "Source Note: The provisions of this §16.8 adopted to be effective March 17, 2022, 47 TexReg 1294; amended to be effective July 28, 2024, 49 TexReg 5349."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=219652&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "219652",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "BROADBAND POLE REPLACEMENT PROGRAM"
            },
            "rule": {
                "number": "§16.9",
                "label": "Payment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=219653&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "219653",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A reimbursement award must be paid to a grant recipient not later than 30 calendar days after the date the office issues an award under §16.8(g) of this subchapter.",
            "sourceNote": "Source Note: The provisions of this §16.9 adopted to be effective March 17, 2022, 47 TexReg 1294; amended to be effective July 28, 2024, 49 TexReg 5349."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=219653&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "219653",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "BROADBAND POLE REPLACEMENT PROGRAM"
            },
            "rule": {
                "number": "§16.10",
                "label": "Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208446&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208446",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The administration and use of a reimbursement award are subject to:(1) the terms and conditions of the reimbursement award;(2) the requirements of Government Code, Chapter 403, Subchapter S; and(3) any other state or federal law, rule, regulation, or guidance applicable to the type of funding used to make the reimbursement award.(b) Grant funds may be used only for the purpose of supporting the pole replacement program, including the costs of program administration and operation.(c) A grantee is the entity legally and financially responsible for compliance with state and federal laws, rules, regulations, and guidance applicable to the reimbursement award.(d) Grant funds shall not be used for costs that will be reimbursed by any other federal or state funding source. The office may require an applicant/grantee to demonstrate through accounting records that funds received from another funding source are not used for costs that will be reimbursed by the pole replacement program.",
            "sourceNote": "Source Note: The provisions of this §16.10 adopted to be effective March 17, 2022, 47 TexReg 1294; amended to be effective July 28, 2024, 49 TexReg 5349."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208446&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208446",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "BROADBAND POLE REPLACEMENT PROGRAM"
            },
            "rule": {
                "number": "§16.11",
                "label": "Reports"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=219654&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "219654",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A grantee shall submit reports and documentation as may be required by the office to substantiate that grant funds awarded were used for the intended purpose of the reimbursement award and that the grantee has complied with the terms, conditions, and requirements set forth in §16.10 of this subchapter.(b) A grantee must submit reports and documentation to the office in the office-prescribed format no later than the office-designated deadlines for their submission.",
            "sourceNote": "Source Note: The provisions of this §16.11 adopted to be effective March 17, 2022, 47 TexReg 1294."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=219654&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "219654",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "BROADBAND POLE REPLACEMENT PROGRAM"
            },
            "rule": {
                "number": "§16.12",
                "label": "Noncompliance"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208447&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208447",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If the office has reason to believe that a grantee has violated any term or condition of a reimbursement award or any applicable laws, rules, regulations, or guidance relating to the reimbursement award, the office shall provide written notice of the allegations to the grantee and provide the grantee with an opportunity to respond to the allegations.(b) If the office finds on substantial evidence that a grantee has materially violated the requirements of Government Code, §403.553, with respect to reimbursements or portions of reimbursements, the office may direct the grantee to refund the reimbursement or a portion of the reimbursement with interest at the applicable federal funds rate as specified by Business and Commerce Code, §4A.506(b).(c) If the office finds that a grantee has failed to comply with any term or condition of a reimbursement award, or any applicable laws, rules, regulations, or guidance relating to the reimbursement award, other than the requirements described in subsection (b) of this section, the office may:(1) direct the grantee to refund the reimbursement award or a portion of the reimbursement award;(2) withhold reimbursement award amounts to a grantee under this subchapter pending correction of the deficiency;(3) disallow all or part of the cost of the activity or action that is not in compliance;(4) terminate the reimbursement award in whole or in part;(5) prohibit the grantee from being eligible for future reimbursement awards under the pole replacement program; or(6) exercise any other legal remedies available at law.",
            "sourceNote": "Source Note: The provisions of this §16.12 adopted to be effective March 17, 2022, 47 TexReg 1294; amended to be effective July 28, 2024, 49 TexReg 5349."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208447&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208447",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "BROADBAND POLE REPLACEMENT PROGRAM"
            },
            "rule": {
                "number": "§16.13",
                "label": "Grant Reduction or Termination"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208449&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208449",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If a grantee seeks to terminate any approved reimbursement award, it must notify the office immediately.(b) The office may reduce or terminate any reimbursement award when circumstances require reduction or termination, including when:(1) a grantee is found to be noncompliant under §16.12(c) of this subchapter;(2) the grantee and the office agree to the reduction or termination of a reimbursement award;(3) grant funds are no longer available to the office; or(4) conditions exist that make it unlikely that objectives of the reimbursement award will be accomplished.(c) If a reimbursement award is reduced or terminated by the office, the office shall notify the grantee in writing.",
            "sourceNote": "Source Note: The provisions of this §16.13 adopted to be effective March 17, 2022, 47 TexReg 1294."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208449&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208449",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "BROADBAND POLE REPLACEMENT PROGRAM"
            },
            "rule": {
                "number": "§16.14",
                "label": "Records Retention"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208450&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208450",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A grantee must maintain all financial records, supporting documents, and all other records pertinent to the reimbursement award for at least four years following the submission of a final report.(b) If any litigation, claim, or audit is started, or any open records request is received, before the expiration of the four-year records retention period, a grantee must retain the records related to the litigation, claim, audit, or open records request until the completion of the litigation, claim, audit, or open records request and resolution of all issues which arise from it or until the end of the regular four-year records retention period, whichever is later.(c) A grantee may retain records in an electronic format.",
            "sourceNote": "Source Note: The provisions of this §16.14 adopted to be effective March 17, 2022, 47 TexReg 1294."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208450&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208450",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "BROADBAND POLE REPLACEMENT PROGRAM"
            },
            "rule": {
                "number": "§16.15",
                "label": "Request for Records and Audit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208451&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208451",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A grantee shall, upon written request from the office or its designee, provide any records, documentation, or other information required by the office to verify that the grantee has complied with the terms, conditions, and requirements set forth in §16.10 of this subchapter. The office or its designee may make such a written request at any time before the end of the four-year records retention period set forth in §16.14 of this subchapter. If the office or its designee requests records, documentation, or other information from the grantee in writing, the grantee must submit the requested information within 30 calendar days.(b) The office or its designee may, before the end of the four-year records retention period set forth in §16.14 of this subchapter, audit a grantee to ensure that grant funds are used for the intended purpose of the reimbursement award and that the grantee has complied with the terms, conditions, and requirements set forth in §16.10 of this subchapter.",
            "sourceNote": "Source Note: The provisions of this §16.15 adopted to be effective March 17, 2022, 47 TexReg 1294."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208451&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208451",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "BROADBAND POLE REPLACEMENT PROGRAM"
            },
            "rule": {
                "number": "§16.16",
                "label": "Conflict with Laws, Rules, Regulations, or Guidance"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208452&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208452",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "If a state or federal law, rule, regulation, or guidance applicable to the type of funding used to make the reimbursement award conflicts with this subchapter, the state or federal law, rule, regulation, or guidance applicable to the type of funding used to make the reimbursement award prevails over this subchapter to the extent necessary to avoid the conflict.",
            "sourceNote": "Source Note: The provisions of this §16.16 adopted to be effective March 17, 2022, 47 TexReg 1294."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208452&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208452",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "BROADBAND POLE REPLACEMENT PROGRAM"
            },
            "rule": {
                "number": "§16.17",
                "label": "References"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217174&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217174",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "All references in this subchapter to statutory provisions in Government Code, Chapter 403, Subchapter R, refer to the provisions added by 87th Legislature, 2021, R.S., Chapter 659 (House Bill 1505), §1.",
            "sourceNote": "Source Note: The provisions of this §16.17 adopted to be effective March 17, 2022, 47 TexReg 1294."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217174&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217174",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "B",
                "label": "TEXAS BROADBAND DEVELOPMENT OFFICE"
            },
            "rule": {
                "number": "§16.21",
                "label": "Broadband Development Map"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217175&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217175",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The comptroller shall create, update annually, and publish on the comptroller's website a broadband development map depicting the availability of broadband service for each broadband serviceable location in this state. The office shall use the best available information, including information available from the Federal Communications Commission, political subdivisions, and broadband service providers, to create or update the map.(b) Except as provided by subsection (c) of this section, for the purpose of developing the broadband development map, the scope of a designated area in this state shall consist of a county.(c) If the comptroller determines that developing the broadband development map at the county level is not technically feasible or practical, the comptroller may develop the map using a smaller geographic unit for which information is available from the Federal Communications Commission.(d) The comptroller shall, at a minimum, display for each designated area on the broadband development map:(1) each unserved, underserved, and served broadband serviceable location;(2) an indication of whether each broadband serviceable location is ineligible to receive funding on account of an existing federal commitment to deploy qualifying broadband service;(3) the number of broadband service providers that serve the designated area;(4) an indication of whether the designated area has access to internet service that is not broadband service, regardless of the technology used to provide the service;(5) each public school campus with an indication of whether the public school campus has access to broadband service; and(6) the number and percentage of unserved, underserved, and served broadband serviceable locations within the designated area.",
            "sourceNote": "Source Note: The provisions of this §16.21 adopted to be effective March 24, 2024, 49 TexReg 1949."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217175&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217175",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "B",
                "label": "TEXAS BROADBAND DEVELOPMENT OFFICE"
            },
            "rule": {
                "number": "§16.22",
                "label": "Map Challenges; Criteria"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217176&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217176",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Subject to subsection (c) of this section, a broadband service provider or a political subdivision of this state may challenge the designation of a broadband serviceable location located in this state and petition the office to reclassify the location on the broadband development map.(b) A challenge submitted under this section must be submitted on forms and contain the information prescribed by the office. The office shall publish on its website the requirements and criteria for submitting a challenge under this section.(c) A challenge seeking reclassification of a broadband serviceable location may only be made on the following basis:(1) that reliable broadband service at the location is or is not available within 10 business days of a request for service;(2) that the actual speed of the fastest available service tier at the location does or does not meet the broadband service speed thresholds as established by Government Code, §490I.0105(a);(3) that the actual round-trip latency of broadband service at the location exceeds 100 milliseconds;(4) that the availability of reliable broadband service at the location is subject to a data cap that results in actual speeds of the fastest available service tier falling below the broadband service speed thresholds as established by Government Code, §490I.0105(a); or(5) that the location is or is not subject to an existing federal commitment to deploy qualifying broadband service to the location.(d) If the comptroller adopts a map produced by the Federal Communications Commission as provided under Government Code, §490I.0105(q), a challenge may only be submitted under this section if the person or entity submitting the challenge provides evidence that the person or entity previously submitted a successful challenge to the Federal Communications Commission for the broadband serviceable locations for which the entity is seeking a reclassification.",
            "sourceNote": "Source Note: The provisions of this §16.22 adopted to be effective March 24, 2024, 49 TexReg 1949."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217176&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217176",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "B",
                "label": "TEXAS BROADBAND DEVELOPMENT OFFICE"
            },
            "rule": {
                "number": "§16.23",
                "label": "Challenge Process; Deadlines"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217177&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217177",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A challenge under this subchapter must be submitted to the office not later than the 60th day after the broadband development map is published or updated on the comptroller's website. If the comptroller adopts a map produced by the Federal Communications Commission as provided under Government Code, §490I.0105(q), a challenge under this subchapter must be submitted not later than the 30th day after the entity seeking to challenge a location submitted a successful challenge to the Federal Communications Commission.(b) The office may reject a challenge without further action if the challenge is not submitted on forms prescribed by the office or does not otherwise comply with this division or any criteria established by the office as provided by this subchapter.(c) The office shall provide notice of an accepted challenge to each affected political subdivision and broadband service provider by posting notice of the challenge on the comptroller's website. For the purposes of this section, an affected political subdivision or broadband service provider shall be deemed to have received notice on the date the notice is posted on the comptroller's website.(d) Not later than the 45th day after the date that the office posts the notice required under subsection (c) of this section, an impacted political subdivision or a broadband service provider may provide information to the office showing whether the broadband serviceable locations that have been challenged should or should not be reclassified.(e) Not later than the 75th day after the date that the office posts the notice required under subsection (c) of this section, the office shall determine whether to reclassify the challenged broadband serviceable locations and shall update the map as necessary.(f) In addition to the notice required under subsection (c) of this section, the office shall send written notice of the challenges that have been received under this subchapter to each political subdivision and broadband service provider that subscribes to an email distribution list managed by the office for the purpose of receiving notices from the office. Notwithstanding this subsection, the date the notice is received shall be deemed to be the date a notice issued under subsection (c) of this section is posted on the comptroller's website.",
            "sourceNote": "Source Note: The provisions of this §16.23 adopted to be effective March 24, 2024, 49 TexReg 1949."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217177&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217177",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "B",
                "label": "TEXAS BROADBAND DEVELOPMENT OFFICE"
            },
            "rule": {
                "number": "§16.24",
                "label": "Challenge Determinations"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=220413&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "220413",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The office shall consider the following in making a determination of whether to reclassify a broadband serviceable location:(1) the availability of reliable broadband service;(2) an evaluation of actual Internet speed test and reliability data;(3) the existence or non-existence of an existing federal commitment to deploy qualifying broadband service to a location; and(4) any other information the office determines may be useful in determining whether a location should be reclassified.(b) A broadband serviceable location that is classified as a served location solely because the location is subject to an existing federal commitment to deploy qualifying broadband service may be reclassified if:(1) federal funding is forfeited or the recipient of the funding is disqualified from receiving the funding; and(2) the location is otherwise eligible to receive funding under the program.(c) A determination made by the office under this subsection is not a contested case for purposes of Government Code, Chapter 2001.(d) If within one year after making an award the office determines that at the time of making the award a broadband serviceable location was not eligible to receive funding under this subchapter, the office may proportionately reduce the amount of the award and the grant recipient shall be required to return any grant funds that were awarded as a result of the classification error. Prior to making a decision to reduce the amount of the award, the office shall provide an opportunity to the award recipient to demonstrate cause for why the award should not be reduced. The office shall reduce the amount required to be returned under this subsection if the office determines, in its sole discretion, that the grant funds or any portion thereof were expended in good faith.",
            "sourceNote": "Source Note: The provisions of this §16.24 adopted to be effective March 24, 2024, 49 TexReg 1949."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=220413&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "220413",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "B",
                "label": "TEXAS BROADBAND DEVELOPMENT OFFICE"
            },
            "rule": {
                "number": "§16.30",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217184&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217184",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "As used in this subchapter and in these rules, the following words and terms shall have the following meanings, unless the context clearly indicates otherwise:(1) Applicant--A person that has submitted an application for an award under this subchapter.(2) Application protest period--A period of at least thirty days beginning on the first day after an application is posted under §16.36(d) of this subchapter.(3) Broadband development map--The map adopted or created under Government Code, §490I.0105.(4) Broadband service--Internet service that delivers transmission speeds capable of providing:(A) a download speed of not less than 100 Mbps; or(B) an upload speed of not less than 20 Mbps; and(C) network round-trip latency of less than or equal to 100 milliseconds based on the 95th percentile of speed measurements.(5) Broadband serviceable location--A business or residential location in this state at which broadband service is, or can be, installed, including a community anchor institution.(6) Census block--The smallest geographic area for which the U.S. Bureau of the Census collects and tabulates decennial census data as shown on the most recent on Census Bureau maps.(7) Commercial broadband service provider--A broadband service provider engaged in business intended for profit, a telephone cooperative, an electric cooperative, or an electric utility that offers broadband service or middle-mile broadband service for a fare, fee, rate, charge, or other consideration.(8) Community anchor institution--An entity such as a school, library, health clinic, health center, hospital or other medical provider, public safety entity, institution of higher education, public housing organization, or community support organization that facilitates greater use of broadband service by vulnerable populations, including, but not limited to, low-income individuals, unemployed individuals, children, the incarcerated, and aged individuals.(9) Designated area--A census block or other area as determined under §16.21 of this subchapter.(10) Grant funds--Grants, low-interest loans, and other financial incentives awarded to applicants under this subchapter for the purpose of expanding access to and adoption of broadband service.(11) Grant recipient--An applicant who has been awarded grant funds under this subchapter.(12) Mbps--Megabits per second.(13) Middle mile infrastructure--Any broadband infrastructure that does not connect directly to an end-user location, including a community anchor institution. The term includes:(A) leased dark fiber, interoffice transport, backhaul, carrier-neutral internet exchange facilities, carrier-neutral submarine cable landing stations, undersea cables, transport connectivity to data centers, special access transport, and other similar services; and(B) wired or private wireless broadband infrastructure, including microwave capacity, radio tower access, and other services or infrastructure for a private wireless broadband network, such as towers, fiber, and microwave links.(C) The term does not include provision of Internet service to end-use customers on a retail basis.(14) Non-commercial broadband service provider--A broadband service provider that is not a commercial broadband service provider.(15) Office--The Broadband Development Office created under Government Code, §490I.0102.(16) Project area--The area, consisting of one or more broadband serviceable locations, identified by an applicant in which the applicant proposes to deploy broadband service or middle mile infrastructure.(17) Public school--A school that offers a course of instruction for students in one or more grades from prekindergarten through grade 12 and is operated by a governmental entity.(18) Qualifying broadband service--Broadband service that meets the minimum speed, latency and reliability thresholds prescribed by the office in each applicable notice of funds availability.(19) Reliable broadband service--Broadband service that is accessible to a location via:(A) fiber-optic technology;(B) Cable Modem/ Hybrid fiber-coaxial technology;(C) digital subscriber line (DSL) technology; or(D) terrestrial fixed wireless technology utilizing entirely licensed spectrum or using a hybrid of licensed and unlicensed spectrum.(20) Served location--A broadband serviceable location that has access to reliable broadband service that exceeds the minimum threshold for an underserved location or a location that is subject to an existing federal commitment to deploy qualifying broadband service.(21) Underserved location--A broadband serviceable location that has access to reliable broadband service but does not have access to reliable broadband service with the capability of providing:(A) a download speed of not less than 100 Mbps;(B) an upload speed of not less than 20 Mbps; and(C) a network round-trip latency of less than or equal to 100 milliseconds based on the 95th percentile of speed measurements as established under Government Code, §490I.0101.(22) Unserved location--A broadband serviceable location that does not have access to reliable broadband service.",
            "sourceNote": "Source Note: The provisions of this §16.30 adopted to be effective February 19, 2023, 48 TexReg 685; amended to be effective March 24, 2024, 49 TexReg 1956; amended to be effective August 26, 2024, 49 TexReg 6462."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217184&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217184",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "B",
                "label": "TEXAS BROADBAND DEVELOPMENT OFFICE"
            },
            "rule": {
                "number": "§16.31",
                "label": "Notice of Funds Availability"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217185&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217185",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The office shall use one or more methods as necessary to provide notice of the availability of funds for competitive grant awards, including publication in the Texas Register  or Electronic State Business Daily  website. The comptroller may make available a copy of the notice of funds availability on the comptroller's website. For the purposes of these rules, the date the notice of funds availability is issued is the earlier of the first day the notice is published in the Texas Register  or on the Electronic State Business Daily  website.(b) The notice of funds availability published under subsection (a) of this section shall include:(1) the total amount of grant funds available for award;(2) the minimum and maximum amount of grant funds available for each application;(3) eligibility requirements;(4) application requirements;(5) award and evaluation criteria; and(6) the date by which applications must be submitted to the office;(c) The notice may include:(1) limitations on the geographic distribution of grant funds;(2) the anticipated date of award; and(3) any other information the office determines is necessary for award.",
            "sourceNote": "Source Note: The provisions of this §16.31 adopted to be effective February 19, 2023, 48 TexReg 685; amended to be effective March 24, 2024, 49 TexReg 1956."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217185&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217185",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "B",
                "label": "TEXAS BROADBAND DEVELOPMENT OFFICE"
            },
            "rule": {
                "number": "§16.32",
                "label": "Federal Funding; Conflict with Laws, Rules, Regulations, or Guidance"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217186&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217186",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If federal funding is used to make an award, the office may establish eligibility and program requirements and preferences, and make award decisions, based upon any criteria required by federal law, regulation, or guidance applicable to the type of funding used to make the award.(b) If a state or federal law, rule, regulation, or guidance applicable to the type of funding used to make the reimbursement award conflicts with this subchapter, the state or federal law, rule, regulation, or guidance applicable to the type of funding used to make the reimbursement award prevails over this subchapter to the extent necessary to avoid the conflict.",
            "sourceNote": "Source Note: The provisions of this §16.32 adopted to be effective February 19, 2023, 48 TexReg 685."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217186&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217186",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "B",
                "label": "TEXAS BROADBAND DEVELOPMENT OFFICE"
            },
            "rule": {
                "number": "§16.35",
                "label": "Program Eligibility Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217179&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217179",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Eligible participants of the program include:(1) political subdivisions of this state;(2) commercial broadband service providers;(3) non-commercial broadband service providers; and(4) partnerships between political subdivisions of this state, commercial broadband service providers, noncommercial broadband service providers, or any combination thereof.(b) The office may not award grant funds for a broadband serviceable location to an otherwise eligible participant under subsection (a)(3) of this section if a commercial broadband service provider has submitted an eligible application for the same location.(c) For the purposes of this subchapter, a joint application submitted by any combination of a political subdivision, commercial broadband service provider, or a non-commercial broadband service provider that includes at least one commercial broadband service provider shall be deemed to be an application submitted by a commercial broadband service provider.",
            "sourceNote": "Source Note: The provisions of this §16.35 adopted to be effective February 19, 2023, 48 TexReg 685; amended to be effective March 24, 2024, 49 TexReg 1956."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217179&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217179",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "B",
                "label": "TEXAS BROADBAND DEVELOPMENT OFFICE"
            },
            "rule": {
                "number": "§16.36",
                "label": "Application Process Generally"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217180&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217180",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) No award for competitive grant funding will be disbursed by the office except pursuant to an application submitted in accordance with this subchapter.(b) An application for funding under this subchapter shall be submitted on the forms and in the manner prescribed by the office. The office may require that applications be submitted electronically.(c) Prior to publication of application information pursuant to Government Code, §490I.0106(e), the office may undertake an examination to determine whether the application appears on its face to comply with applicable program requirements. The office may reject and take no further action on an application that does not appear to comply with applicable program requirements on its face.(d) The office shall for a period of at least 30 days publish on its website information from each accepted application, including the applicant's name, the project area targeted for expanded broadband service access or adoption by the application, and any other information the office considers relevant or necessary. The information will remain on the website for a period of at least 30 days before the office makes a decision on the application.(e) During the 30-day application protest period described by subsection (d) of this section for an application, the office shall accept from any interested party a written protest of the application relating to whether the applicant or project is eligible for an award or should not receive an award based on the criteria prescribed by the office. A protest of an application must be submitted as provided under §16.41 of this subchapter.(f) Notwithstanding any deadline for submitting an application, if the office upholds a protest on the grounds that one or more of the broadband serviceable locations in a project area is not eligible to receive funding, the applicant may resubmit an amended application as provided under §16.41 of this subchapter without the challenged broadband serviceable locations not later than 30 days after the date that the office upheld the protest. An amended application may not include additional areas or broadband serviceable locations not already included in the original application.(g) If the office upholds a protest and the applicant resubmits an application in accordance with subsection (f) of this section, the resubmitted application is not subject to further protest.(h) For the purposes of this section \"interested party\" means a person, including an individual, corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, or any other legal entity, that resides, is located, or conducts business in the project area subject to protest and also includes a broadband service provider that is not located in the project area but who proposes to provide broadband service in the project area.(i) Notwithstanding subsection (e) of this section, a broadband service provider who has not provided information requested by the office under Government Code, §490I.0105 or §490I.01061, may not submit a protest of an application made under this subchapter.",
            "sourceNote": "Source Note: The provisions of this §16.36 adopted to be effective February 19, 2023, 48 TexReg 685; amended to be effective March 24, 2024, 49 TexReg 1956."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217180&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217180",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "B",
                "label": "TEXAS BROADBAND DEVELOPMENT OFFICE"
            },
            "rule": {
                "number": "§16.37",
                "label": "Overlapping Applications or Project Areas"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217181&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217181",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as provided under §16.38 of this subchapter, if at the close of the application period the office has received multiple applications that propose to provide broadband service to the same broadband serviceable locations, the office shall, prior to publishing information regarding the applications as required by §16.36 of this subchapter, resolve the overlapping areas to ensure that the award of grant funds are not duplicated for a broadband serviceable location.(b) The office shall resolve overlapping applications; by evaluating each impacted application independently; and the office shall:(1) score each impacted application and the application receiving the highest score shall proceed to grant funding consideration with its project area locations intact; and(2) remove the overlapping project locations from the lower scored applications and provide notice to the impacted applicants that the overlapping project locations have been removed from the application.(c) The office shall provide notice of a determination made by the office under subsection (b) of this section to each affected applicant including notice of the right, if any, to submit an amended application under subsection (e) of this section.(d) If removing overlapping project locations as provided under subsection (b) of this section results in the application retaining less than 50% of the broadband serviceable locations originally proposed for the project area, the office shall contact the applicant to determine whether the applicant wants to proceed with a substantially reduced application and the office shall take into account this preference when determining whether to remove the application from further consideration. The office may, notwithstanding the preference of an applicant to proceed with a substantially reduced application, at its sole direction, remove the application from grant funding consideration.(e) If the office removes an overlapping location from an application, an applicant may amend and resubmit an application without the overlapping location if:(1) The remaining number of broadband serviceable locations in the project area is greater than 50% of the broadband serviceable locations originally proposed for the project area; or(2) The remaining number of locations in the application is less than 50% of the broadband serviceable locations originally proposed for the project area and the application has not been removed from grant funding consideration under subsection (d) of this section.(f) If an amended application without the overlapping locations is not received by the office by the 10th business day after an applicant receives notice that it may amend its application under subsection (c)(2) of this section, the office may remove the application from grant funding consideration.",
            "sourceNote": "Source Note: The provisions of this §16.37 adopted to be effective February 19, 2023, 48 TexReg 685; amended to be effective March 24, 2024, 49 TexReg 1956."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217181&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217181",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "B",
                "label": "TEXAS BROADBAND DEVELOPMENT OFFICE"
            },
            "rule": {
                "number": "§16.38",
                "label": "Special Rule for Overlapping Project Areas in Noncommercial Applications"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217182&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217182",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If both a commercial and noncommercial broadband service provider submit an eligible application to provide broadband service access to the same broadband serviceable locations, the office shall inform the noncommercial provider of the overlap and the noncommercial provider shall be required to submit an amended application eliminating the overlapping locations for which the commercial provider proposes to provide expanded broadband service access.(b) If a noncommercial broadband service provider required to amend its application under subsection (a) of this section does not submit an amended application to the office by the 10th business day after receiving notice of the overlapping areas, the office may remove the application from grant funding consideration.",
            "sourceNote": "Source Note: The provisions of this §16.38 adopted to be effective February 19, 2023, 48 TexReg 685; amended to be effective March 24, 2024, 49 TexReg 1956."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217182&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217182",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "B",
                "label": "TEXAS BROADBAND DEVELOPMENT OFFICE"
            },
            "rule": {
                "number": "§16.39",
                "label": "Application Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217187&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217187",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) As set forth in greater detail in the notice of funds availability or the application instructions prescribed by the office, each application shall include:(1) applicant information, statement of qualifications, and partnerships;(2) maps of the project area and locations to be served;(3) a technical description of the project;(4) project budget(s), matching funds, costs, and proof of funding availability;(5) proposed services, marketing, adoption, and community support;(6) information required by the notice of funds availability; and(7) any other information or documentation  that the office may require.(b) During the application process, the office may require an applicant to submit additional information the office determines is necessary to make an award determination.",
            "sourceNote": "Source Note: The provisions of this §16.39 adopted to be effective February 19, 2023, 48 TexReg 685."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217187&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217187",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "B",
                "label": "TEXAS BROADBAND DEVELOPMENT OFFICE"
            },
            "rule": {
                "number": "§16.40",
                "label": "Evaluation Criteria"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217188&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217188",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The office shall establish the eligibility and award criteria applicable for each round of competitive grant funding by publishing the criteria in a notice of funds availability as provided by §16.31 of this subchapter. In establishing eligibility and award criteria, the office shall:(1) prioritize applications that expand access to and adoption of broadband service in designated areas in which the highest percentage of broadband serviceable locations are unserved or underserved locations;(2) prioritize applications that expand access to broadband service in public and private primary and secondary schools and institutions of higher education;(3) prioritize applications that connect end-user locations with end-to-end fiber optic facilities that meet speed, latency, reliability, consistency, scalability, and related criteria as the office shall determine;(4) give preference to applicants that provide the information requested by the office under Government Code, §490I.0105 and §490I.01061; and(5) take into consideration whether an applicant has forfeited federal funding for defaulting on a project to deploy qualifying broadband service.(b) In addition to the evaluation criteria provided under subsection (a) of this section, the office may include and provide preferences for the following evaluation criteria in the notice of funds availability:(1) application participant(s) experience;(2) technical specifications including broadband transmission speeds (Mbps upload and download) that will be deployed as a result of the project;(3) estimated project completion date;(4) the availability of matching funds including amount, percentage, and source of matching funds;(5) cost effectiveness and overall impact as measured by the total project cost, the total number of prospective broadband service locations to be served by the project, the proportion of unserved and underserved locations to be served by the project compared to the number of serviceable locations within the designated area(s) the project is located, the proportion of recipients to be served by the project compared to the population of the designated area(s) in which the project is located, and the project cost per prospective broadband service recipient;(6) geographic location including, but not limited to, rural areas where because of population density the cost of broadband expansion is characterized by disproportionately high capital and operational costs;(7) community, non-profit, or cooperative support or participation in the project;(8) affordability of broadband services in the areas in which the proposed project is located prior to the deployment of broadband services as a result of the project;(9) consumer price of broadband services that applicant proposes to deploy as a result of the project;(10) participation in federal programs that provide low-income consumers with subsidies for broadband services;(11) small business and historically underutilized business involvement or subcontracting participation; and(12) any additional factors the office may determine are necessary to further the expansion and adoption of broadband service.(c) Notwithstanding subsection (a)(3) of this section, the office may consider an application for a broadband infrastructure project that does not employ end-to-end fiber optic facilities if the use of an alternative technology:(1) is proposed for a high-cost area;(2) may be deployed at a lower cost than deploying fiber optic technology; or(3) meets the speed, latency, reliability, consistency, scalability, and related criteria as the office shall determine for each applicable notice of funds availability.",
            "sourceNote": "Source Note: The provisions of this §16.40 adopted to be effective February 19, 2023, 48 TexReg 685; amended to be effective March 24, 2024, 49 TexReg 1956."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217188&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217188",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "B",
                "label": "TEXAS BROADBAND DEVELOPMENT OFFICE"
            },
            "rule": {
                "number": "§16.41",
                "label": "Application Protest Process"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217189&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217189",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The office shall publish on the office's website criteria and requirements for submitting a challenge under this section. An application protest may only be made on the following basis:(1) the applicant is ineligible to receive an award;(2) the application contains broadband serviceable locations that are not eligible to receive funding because of an existing federal commitment to deploy qualifying broadband service to the location; or(3) the project is ineligible to receive or should not receive an award based on the criteria prescribed by the office as provided by §16.40(a) of this subchapter.(b) A protest submitted under this section shall be submitted electronically in the manner and on the forms prescribed by the office and shall be accompanied by all relevant supporting documentation. The protesting party bears the burden to establish that an applicant or project should not receive or is ineligible for an award based on the criteria prescribed by the office.(c) The office shall review the protest and make a determination as to whether the protest should be upheld. The office shall provide notice of its determination to each affected applicant, including the right, if any, to submit an amended application under subsection (d) of this section.(d) If the office upholds a protest on the basis that one or more broadband serviceable locations are not eligible to receive funding under the criteria prescribed by the office, an applicant may amend and resubmit an application without the challenged locations and re-scope the application or project area if, after the protest is upheld:(1) the remaining number of broadband serviceable locations in the project area is greater than 50% of the original number of locations in the project area; or(2) the remaining number of broadband serviceable locations in the project area is less than 50% of the original number of locations in the project area and the office permits, at its sole discretion, the applicant to amend the application.(e) If an amended application without the challenged locations is not received by the office by the 30th day after receiving notice of the determination under subsection (c) of this section, the office may remove the application from grant funding consideration.(f) A determination made by the office under this section is not a contested case for purposes of Government Code, Chapter 2001.",
            "sourceNote": "Source Note: The provisions of this §16.41 adopted to be effective February 19, 2023, 48 TexReg 685; amended to be effective March 24, 2024, 49 TexReg 1956."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217189&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217189",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "B",
                "label": "TEXAS BROADBAND DEVELOPMENT OFFICE"
            },
            "rule": {
                "number": "§16.42",
                "label": "Awards; Grant Agreement"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217190&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217190",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All award decisions shall be made at the sole discretion of the office and are not appealable or subject to protest.(b) Grants for the deployment of broadband infrastructure awarded under this subchapter may only be used for capital expenses, purchase or lease of property, and other expenses, including backhaul and transport, that will facilitate the provision or adoption of broadband service.(c) A grant recipient shall have 30 days from the date of award to negotiate and sign the grant agreement. The comptroller may extend the deadline to fully execute the grant agreement upon a showing of good cause by the grant recipient(s). If the grant agreement is not signed by the grant recipient and received by the office by the later of the 30th day after the award of the grant agreement or the extended deadline date, the office may rescind the award.",
            "sourceNote": "Source Note: The provisions of this §16.42 adopted to be effective February 19, 2023, 48 TexReg 685; amended to be effective March 24, 2024, 49 TexReg 1956."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217190&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217190",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "B",
                "label": "TEXAS BROADBAND DEVELOPMENT OFFICE"
            },
            "rule": {
                "number": "§16.43",
                "label": "Reporting"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217191&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217191",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Grant recipients shall submit to the office periodic reports for each funded project for the duration of the grant agreement. The frequency, format and requirements of the reports shall be determined at the discretion of the office.(b) Grant recipients, upon request from the office, shall provide:(1) project and expenditure reports, including but not limited to, expenditures, project status, subawards, civil rights compliance, equity indicators, community engagement efforts, geospatial data, workforce plans and practices, and information about subcontracted entities; and(2) performance reports, including but not limited to project outputs and outcomes.(c) The office, at its sole discretion and at any time, upon reasonable notice, may request any additional data and reporting information that the office deems necessary to substantiate that grant funds are being used for the intended purpose and that the grant recipient has complied with the terms, conditions, and requirements of the grant agreement.",
            "sourceNote": "Source Note: The provisions of this §16.43 adopted to be effective February 19, 2023, 48 TexReg 685."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217191&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217191",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "B",
                "label": "TEXAS BROADBAND DEVELOPMENT OFFICE"
            },
            "rule": {
                "number": "§16.44",
                "label": "Records Retention; Audit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217192&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217192",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Grant recipients must maintain all financial records, supporting documents, and all other records pertinent to the project or award for the later of:(1) five years following the submission of a final report;(2) if any litigation, claim, or audit is started, or any open records request is received, before the expiration of the five-year records retention period, one year after the completion of the litigation, claim, audit, or open records request and resolution of all issues which arise from it; or(3) the period required by the specific federal funding source applicable to the grant.(b) At any time during the grant agreement and for a period of five  years after the project has been completed, the office or its designee may, upon reasonable notice, request any records from or audit the books and records of a grant recipient to verify that the grant recipient has complied with the terms, conditions, and requirements of the grant agreement and this subchapter. Grant recipients shall provide the requested records or information to the office not later than 30 days after a written request is made by the office.",
            "sourceNote": "Source Note: The provisions of this §16.44 adopted to be effective February 19, 2023, 48 TexReg 685."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217192&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217192",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "B",
                "label": "TEXAS BROADBAND DEVELOPMENT OFFICE"
            },
            "rule": {
                "number": "§16.45",
                "label": "Failure to Perform"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217178&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217178",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A grant recipient shall forfeit up to the amount of the grant funds received if the office determines the grant recipient has failed to perform, in material respect, the obligations established in the grant agreement. The office may make such a determination at any time during the grant agreement. The amount forfeited shall be determined at the sole discretion of the office taking into account factors including, but not limited to, the amount of the project that was timely completed, excusable delays or other force majeure events, and the materiality of default(s).(b) A grant recipient shall not be required to forfeit the amount of the grant funds received if it fails to perform due to acts of war, terrorism, natural disaster  declared by the governor of this state, an act of God, force majeure, a catastrophe, or such other occurrence over which the grant recipient has no control.(c) A failure to perform resulting in forfeiture of grant funds may be cause for the office to bar an applicant from future consideration for grant funds under this program.",
            "sourceNote": "Source Note: The provisions of this §16.45 adopted to be effective February 19, 2023, 48 TexReg 685."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217178&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217178",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "B",
                "label": "TEXAS BROADBAND DEVELOPMENT OFFICE"
            },
            "rule": {
                "number": "§16.46",
                "label": "Forms; Notices"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226080&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "226080",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Unless otherwise required by law, the office may prescribe all forms or other documents required to implement this subchapter and may require that the forms or other documents be submitted electronically.(b) Any notice required by these rules to be sent by the office may be provided electronically and the office is entitled to rely on an email address provided by an applicant, grant recipient or other person, including a political subdivision or broadband service provider, for all purposes relating to notification. Applicants and grant recipients must provide an email address that is designated for receipt of notices from the office.(c) If notice cannot be sent electronically, the office shall provide  notice by regular U.S. Mail and the office is entitled to rely on the mailing address currently on file for all purposes relating to notification.(d) Service of notice by the office is complete and receipt is presumed on:(1) the date the notice is sent, if sent before 5:00 p.m. by electronic mail;(2) the date after the notice is sent, if sent after 5:00 p.m. by electronic mail; or(3) three business days after the date it is placed in the mail, if sent by regular U.S. Mail.(e) When multiple recipients receive notice under §16.34(a) of this subchapter resulting in more than one date of service as determined under subsection (d) of this section,  the date that a broadband provider receives notice for the purpose of §16.34 of this subchapter is the latest service date for that notice.",
            "sourceNote": "Source Note: The provisions of this §16.46 adopted to be effective February 19, 2023, 48 TexReg 685."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226080&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "226080",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS OPIOID ABATEMENT FUND PROGRAM"
            },
            "rule": {
                "number": "§16.200",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214220&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214220",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Authorized official--The individual, including designated alternates, named by a grant applicant or grant recipient, who is authorized to act for the grant applicant or grant recipient in submitting the grant application and executing the grant agreement and associated documents or requests.(2) Comptroller--The Texas Comptroller of Public Accounts. (3) Council--The Texas Opioid Abatement Fund Council established by Government Code, §403.503, to manage the distribution of money allocated to the council from the Opioid Abatement Trust Fund, established by Government Code, §403.506 in accordance with a statewide opioid settlement agreement. A reference in this subchapter to the council includes the director and program staff members unless the provision indicates otherwise.(4) Council member--An appointed member of the council.(5) Director--The program staff member designated by the comptroller to serve as the director for the council who performs duties as necessary to manage the day-to-day operations of the council. This term includes the director's designees.(6) Grant agreement--A legal agreement executed by a grant recipient and the director, on behalf of the council, setting forth the terms and conditions for a grant award approved by the council. (7) Grant applicant--A person or entity that has submitted through an authorized official an application for a grant award under this subchapter.(8) Grant application--A written proposal submitted by a grant applicant to the director in the form required by the council that, if successful, will result in a grant award.(9) Grant award--Funding awarded by the council pursuant to a grant agreement providing money to the grant recipient to carry out a grant project in accordance with statutes, rules, regulations, and guidance provided by the council.(10) Grant recipient--A grant applicant that receives a grant award under this subchapter.(11) NOFA--Notice of funding availability.(12) Peer review--The review process performed by the peer review panel and used to provide guidance and recommendations to the council in making decisions for grant awards. The process involves the consistent application of standards and procedures to produce a fair, equitable, and objective evaluation of grant applications, based on the evidence-based opioid abatement strategies developed by the council under Government Code, §403.509, as well as other relevant requirements of the NOFA and the grant application.(13) Peer review panel--A group of experts in the field of opioid abatement who are selected to conduct peer review of grant applications. A peer review panel may consist of one or more members as determined by the council.(14) Peer review panel member--A member of the peer review panel.(15) Program staff member--A member of the comptroller's staff assigned by the comptroller to provide assistance to the council. This term includes the director.(16) Statewide opioid settlement agreement--A settlement agreement and related documents entered into by this state through the attorney general, political subdivisions that have brought a civil action for an opioid-related harm claim against an opioid manufacturer, distributor, or retailer, and opioid manufacturers, distributors, or retailers relating to illegal conduct in the marketing, promotion, sale, distribution, and dispensation of opioids that provide relief for this state and political subdivisions of this state.",
            "sourceNote": "Source Note: The provisions of this §16.200 adopted\r\nto be effective July 10, 2023, 48 TexReg 3700; amended to be effective\r\nOctober 1, 2025, 50 TexReg 6330."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214220&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214220",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS OPIOID ABATEMENT FUND PROGRAM"
            },
            "rule": {
                "number": "§16.201",
                "label": "Opioid Abatement Strategies"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214221&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214221",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The council shall determine and approve one or more evidence-based opioid abatement strategies that are eligible for grant funding. To be approved as eligible for funding, a strategy must be:(1) an opioid abatement strategy provided in the opioid abatement settlement agreements;(2) supported with evidence-based data; and(3) in compliance with all applicable state and federal law.(b) For each strategy approved as an eligible strategy, the council shall categorize the strategy as:(1) treatment and coordination of care;(2) prevention and public safety;(3) recovery support services; or(4) workforce development and training.(c) Within each category, the council shall rank each strategy in order of priority for grant funding.(d) The council may, from time to time, review and amend the list of eligible strategies, the categorization of strategies, or the ranking of strategies within each category.",
            "sourceNote": "Source Note: The provisions of this §16.201 adopted to be effective July 10, 2023, 48 TexReg 3700."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214221&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214221",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS OPIOID ABATEMENT FUND PROGRAM"
            },
            "rule": {
                "number": "§16.202",
                "label": "Grant Issuance Plan"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214222&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214222",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The council shall adopt a grant issuance plan that allocates grant funds among one or more grant cycles.(b) The grant issuance plan shall include:(1) the number and order of grant cycles;(2) the category or categories, and one or more eligible strategies within each category, that will be eligible for grant funding during each grant cycle;(3) the amount of grant funds allocated to each grant cycle;(4) the parameters for the regional component of each grant cycle;(5) the parameters for the targeted intervention component of each grant cycle; and(6) any other information necessary to implement the grant issuance plan, such as any matching or volunteer requirements, any limitations to the types of eligible applicants, or other requirements.(c) Grant awards made each grant cycle will include one or more of the categories listed in §16.201(b) of this subchapter.(d) The council shall designate one or more eligible strategies within each category for each grant cycle in accordance with the priority ranking adopted under §16.201(c) of this subchapter.(e) Each grant cycle will be divided into two main funding components:(1) Of the funds allocated to a grant cycle, 75% shall be allocated among the regional healthcare partnership regions using the following regional allocations:(A) Each region's allocation will be determined using the following regional allocations:(i) 5.515633% allocated to region 1.(ii) 7.813739% allocated to region 2.(iii) 17.455365% allocated to region 3.(iv) 3.902955% allocated to region 4.(v) 2.542550% allocated to region 5.(vi) 9.845317% allocated to region 6.(vii) 7.285670% allocated to region 7.(viii) 3.495025% allocated to region 8.(ix) 9.594819% allocated to region 9.(x) 9.457202% allocated to region 10.(xi) 1.372268% allocated to region 11.(xii) 3.390769% allocated to region 12.(xiii) 0.749727% allocated to region 13.(xiv) 1.749546% allocated to region 14.(xv) 2.596578% allocated to region 15.(xvi) 1.363928% allocated to region 16.(xvii) 3.325101% allocated to region 17.(xviii) 5.741368% allocated to region 18.(xix) 1.827600% allocated to region 19.(xx) 0.974842% allocated to region 20.(B) Within each region and provided there are a sufficient number of eligible grant applicants, no single grant recipient will receive 100% of the funds allocated to a respective region.(2) Of the funds allocated to a grant cycle, 25% shall be allocated for targeted interventions. The council shall establish parameters for the authorized uses of the targeted intervention component of each grant cycle.(A) The parameters may include:(i) a limitation to one or more geographic areas based on opioid incidence information; and(ii) a limitation to one or more eligible strategies based on opioid incidence information.(B) The council shall rank the parameters relating to geographic areas and eligible strategies in order of priority for grant funding. For example, if the council limits targeted intervention grants to, in order of priority, locations A, B, C, and D and to, in order of priority, strategies X and Y, the council shall also specify whether a grant application from location A for strategy Y is a higher priority than a grant application from location B for strategy X.(f) The council may, from time to time, review and amend the grant issuance plan.",
            "sourceNote": "Source Note: The provisions of this §16.202 adopted to be effective July 10, 2023, 48 TexReg 3700."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214222&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214222",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS OPIOID ABATEMENT FUND PROGRAM"
            },
            "rule": {
                "number": "§16.203",
                "label": "Notice and Applications"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214223&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214223",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) For each grant cycle in the grant issuance plan adopted under §16.202 of this subchapter, the council shall, as necessary, publish a NOFA on the Texas.gov eGrants  website and the comptroller's website.(b) The NOFA may include:(1) the amount of grant funds available for grant awards for each regional healthcare partnership region under the regional component;(2) the amount of grant funds available for grant awards and any limitations on the number of grant awards under the targeted intervention component;(3) the strategy or strategies that are eligible for grant funding and the order of priority for grant funding;(4) the minimum and maximum amount of grant funds available for each grant application;(5) limitations on the geographic distribution of grant funds under the regional component and under the targeted intervention component;(6) eligibility requirements;(7) grant application requirements;(8) grant award and evaluation criteria;(9) the date by which grant applications must be submitted to the council;(10) the anticipated date of grant awards;(11) any preferred criteria relevant to the grant application; (12) parameters for allowable costs reimbursable under the grant awards; and(13) any other necessary information.(c) All grant applications submitted under this subchapter must comply with the requirements contained in this subchapter and in the relevant NOFA published by the council.(d) Grant applicants must apply for a grant award using the procedures, forms, and certifications prescribed by the council.(e) During the review of a grant application, a program staff member may require a grant applicant to submit additional information necessary to complete the review. Such requests for information do not serve as notice that the council intends to fund a grant application; however, failure to respond to requests for additional information may impact the ability to review and evaluate the grant application.(f) Grant applications shall:(1) seek to remediate the opioid crisis in this state by using efficient and cost-effective methods that are directed to regions of this state experiencing opioid-related harms; and (2) satisfy the requirements set forth in this subchapter; Government Code, Chapter 403, Subchapter R; and the relevant NOFA published by the council.",
            "sourceNote": "Source Note: The provisions of this §16.203 adopted to be effective July 10, 2023, 48 TexReg 3700."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214223&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214223",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS OPIOID ABATEMENT FUND PROGRAM"
            },
            "rule": {
                "number": "§16.204",
                "label": "Availability of Funds"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214224&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214224",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "All grant funding is contingent upon the availability of funds and upon approval of a grant application by the council. Neither this subsection nor a grant agreement creates any entitlement or right to grant funds by a grant applicant.",
            "sourceNote": "Source Note: The provisions of this §16.204 adopted to be effective July 10, 2023, 48 TexReg 3700."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214224&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214224",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS OPIOID ABATEMENT FUND PROGRAM"
            },
            "rule": {
                "number": "§16.205",
                "label": "Engage in Business in Texas"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214225&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214225",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as addressed by a NOFA, to be eligible to receive a grant award, a grant applicant must engage in business in the state of Texas by:(1) maintaining employees in the state of Texas;(2) having a fixed place of business in the state of Texas; or(3) providing any service in the state of Texas, whether or not the individuals performing the service are residents of the state.(b) Grant applicants responding to a NOFA may be located outside the state of Texas when the grant application is submitted and reviewed; however, the grant applicant must demonstrate that it engages in business in the state of Texas as a condition of the grant award.(c) A grant recipient's failure to engage in business in the state of Texas is a violation of these rules for the purpose of §16.218 of this subchapter.",
            "sourceNote": "Source Note: The provisions of this §16.205 adopted to be effective July 10, 2023, 48 TexReg 3700."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214225&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214225",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS OPIOID ABATEMENT FUND PROGRAM"
            },
            "rule": {
                "number": "§16.206",
                "label": "Peer Review Panel Members"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214226&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214226",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) To minimize the potential for conflicts of interest in the peer review of grant applications, the council may select and compensate individuals who live and work outside of the state of Texas to serve as peer review panel members, unless a special need justifies selecting one or more individuals living or working in Texas.(b) If an individual who lives or works in Texas is selected to serve as a peer review panel member, the director must provide an explanation of the special need and how any potential for conflict of interest will be mitigated to the council at the time the peer review panel member is selected.(c) A peer review panel member shall immediately disclose to the director a present relationship with a grant applicant or any benefit the peer review panel member has received or knows the member will receive from a grant applicant.(d) A peer review panel member who has a present relationship with a grant applicant, or has received or knows the member will receive any benefit from a grant applicant, may not review that grant application.",
            "sourceNote": "Source Note: The provisions of this §16.206 adopted to be effective July 10, 2023, 48 TexReg 3700."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214226&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214226",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS OPIOID ABATEMENT FUND PROGRAM"
            },
            "rule": {
                "number": "§16.207",
                "label": "Authorized Officials"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226081&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "226081",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Each grant applicant must designate an authorized official and must submit to the director:(1) a resolution from the grant applicant's governing body that, at a minimum, designates an authorized official to act on the grant applicant's behalf and authorizes the authorized official to submit a grant application;(2) the authorized official's title, mailing address, telephone number, and email address; and(3) the grant applicant's physical address.(b) A grant applicant or grant recipient must notify the director as soon as practicable of any change in the information provided under subsection (a) of this section. If there is a change of authorized official, a grant applicant or grant recipient must also submit to the director a new resolution from the grant applicant's governing body that, at a minimum, designates an authorized official to act on the grant applicant's behalf.",
            "sourceNote": "Source Note: The provisions of this §16.207 adopted to be effective July 10, 2023, 48 TexReg 3700."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226081&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "226081",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS OPIOID ABATEMENT FUND PROGRAM"
            },
            "rule": {
                "number": "§16.208",
                "label": "Grant Application Review"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214228&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214228",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The grant application review process shall consist of the following:(1) initial screening;(2) director review or, if required, peer review; and(3) council review and approval.(b) Initial screening.(1) The director shall review each grant application to determine whether the grant application complies with the requirements contained in this subchapter and the relevant NOFA published by the council. Grant applications that do not meet these requirements may not be eligible for a grant award and will not be submitted for further review under this section. The council may participate in the initial screening of any grant application.(2) Following the initial screening, the director shall submit each grant application that meets the requirements described in subsection (b)(1) of this section for review under subsection (c) of this section.(c) Director review or peer review.(1) Each grant application that is submitted for review under subsection (b)(2) of this section shall be reviewed by the director or a peer review panel.(A) If the total amount of the grant is greater than $750,000, the grant application shall be reviewed by a peer review panel.(B) If the total amount of the grant is $750,000 or less, the grant application may be reviewed by the director or a peer review panel.(2) Applications shall be scored based on the application's merit and the criteria in the relevant NOFA published by the council. The reviewer shall submit this information to the director.(3) Scores, rankings and other information submitted for the council's consideration are recommendations and are advisory only.(4) For each NOFA, the council will determine the number of members that will serve on the peer review panels for any grant applications subject to peer review.(d) Council review and approval.(1) Upon completion of the evaluation described in subsection (c) of this section, the director shall compile a ranked order list of grant applications and submit it to the council for consideration. If an application is reviewed by more than one person, the final evaluation score is determined by averaging together all reviewers' scores.(2) For each application, the director shall submit to council members:(A) the grant application's final overall evaluation score;(B) the grant application's ranking;(C) a summary of the grant application;(D) other information submitted by the reviewers for the council's consideration; and(E) any other information required for the council's consideration of the grant application.(3) In making grant award decisions, the council:(A) shall ensure that grant funds are allocated fairly and spent to remediate the opioid crisis in this state by using efficient and cost-effective methods in accordance with the opioid strategies approved by the council under Government Code, §403.509(a)(1) and §16.201 of this subchapter, and the grant issuance plan adopted by the council under §16.202 of this subchapter; and(B) may consider factors including:(i) a grant applicant's experience;(ii) a grant project's estimated timeline;(iii) matching funds or sustainability plan, if any;(iv) cost effectiveness, efficacy and overall impact of the grant project;(v) geographic location of the grant project;(vi) community partnerships; and(vii) any additional factors listed in the relevant NOFA published by the council.(4) The council shall vote on grant applications in accordance with Government Code, Chapter 403, Subchapter R. The council may determine the voting procedures for grant applications and may vote on multiple grant applications at one time.(5) All grant funding decisions are final and are not subject to appeal.(6) The approval of a grant award shall not obligate the council to make any additional, supplemental, or other grant award.",
            "sourceNote": "Source Note: The provisions of this §16.208 adopted\r\nto be effective July 10, 2023, 48 TexReg 3700; amended to be effective\r\nOctober 1, 2025, 50 TexReg 6330."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214228&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214228",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS OPIOID ABATEMENT FUND PROGRAM"
            },
            "rule": {
                "number": "§16.209",
                "label": "Amount of Grant Award"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214229&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214229",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The amount of a grant award is determined solely by the council.(b) The council is not obligated to fund a grant at the amount requested by the grant applicant.",
            "sourceNote": "Source Note: The provisions of this §16.209 adopted to be effective July 10, 2023, 48 TexReg 3700."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214229&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214229",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS OPIOID ABATEMENT FUND PROGRAM"
            },
            "rule": {
                "number": "§16.210",
                "label": "Financial Responsibility"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226082&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "226082",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The grant recipient is responsible for managing the day-to-day operations and activities supported by the grant agreement and is accountable to the council for the performance of the grant agreement, including the appropriate expenditure of grant award funds and all other obligations of the grant recipient.(b) The grant recipient must maintain a sound financial management system that provides appropriate fiscal controls and accounting procedures to ensure accurate preparation of reports required by the grant agreement and adequate identification of the source and application of grant funds awarded to the grant recipient.",
            "sourceNote": "Source Note: The provisions of this §16.210 adopted to be effective July 10, 2023, 48 TexReg 3700."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226082&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "226082",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS OPIOID ABATEMENT FUND PROGRAM"
            },
            "rule": {
                "number": "§16.211",
                "label": "Allowable Costs; Disbursement of Grant Funds"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214231&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214231",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Allowable costs are costs that are reasonable and necessary for the proper and efficient performance and administration of the grant project, and allocable to the grant project.(b) The council disburses grant funds on a reimbursement or as needed basis unless otherwise determined by the council to be necessary for the purposes of the grant.(c) The relevant NOFA published by the council may provide additional information on allowable costs by grant project and a schedule for disbursement of grant funds.",
            "sourceNote": "Source Note: The provisions of this §16.211 adopted to be\r\neffective July 10, 2023, 48 TexReg 3700; amended to be effective October\r\n1, 2025, 50 TexReg 6330."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214231&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214231",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS OPIOID ABATEMENT FUND PROGRAM"
            },
            "rule": {
                "number": "§16.212",
                "label": "Grant Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214232&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214232",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Grant recipients must comply with:(1) the terms and conditions of the grant agreement;(2) the requirements of Government Code, Chapter 403, Subchapter R;(3) the relevant provisions of the Texas Grant Management Standards and the State of Texas Procurement and Contract Management Guide, or their successors, adopted in accordance with Texas law; and(4) all applicable state or federal statutes, rules, regulations, or guidance applicable to the grant award.(b) A grant recipient is the entity legally and financially responsible for compliance with the grant agreement, and state and federal laws, rules, regulations, and guidance applicable to the grant award.(c) Grant funds may not be used for costs that will be reimbursed by another funding source. The director may require a grant applicant or grant recipient to demonstrate through accounting records that funds received from another funding source are not used for costs that will be reimbursed by the council.",
            "sourceNote": "Source Note: The provisions of this §16.212 adopted to be effective July 10, 2023, 48 TexReg 3700."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214232&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214232",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS OPIOID ABATEMENT FUND PROGRAM"
            },
            "rule": {
                "number": "§16.213",
                "label": "Use of Council's Grant Management System"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214233&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214233",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "By utilizing the council's electronic grant management system to create, exchange, execute, submit, and verify legally binding grant agreement documents, grant award reports, and other grant information, a grant applicant or grant recipient:(1) certifies that all information submitted is true and correct;(2) agrees that the authorized official's electronic signature is the legal equivalent of the authorized official's manual signature;(3) agrees that the council may rely upon the authorized official's electronic signature as evidence that the grant recipient consents to be legally bound by the terms and conditions of the grant agreement or related form as if the document was manually signed; and(4) agrees to provide prompt written notification to the director of any changes regarding the status or authority of the individual(s) designated by the grant applicant or grant recipient to be the grant applicant's or grant recipient's authorized official.",
            "sourceNote": "Source Note: The provisions of this §16.213 adopted to be effective July 10, 2023, 48 TexReg 3700."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214233&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214233",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS OPIOID ABATEMENT FUND PROGRAM"
            },
            "rule": {
                "number": "§16.214",
                "label": "Code of Ethics"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214234&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214234",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All council members, peer review panel members, and program staff members shall avoid acts which are improper or give the appearance of impropriety in the disposition of funds administered by the council.(b) The council shall adopt a code of ethics to provide guidance related to the ethical conduct required of council members, peer review panel members, and program staff members.(c) The code of ethics shall be distributed to each council member, peer review panel member, and program staff member.",
            "sourceNote": "Source Note: The provisions of this §16.214 adopted to be effective July 10, 2023, 48 TexReg 3700."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214234&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214234",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS OPIOID ABATEMENT FUND PROGRAM"
            },
            "rule": {
                "number": "§16.215",
                "label": "Reporting"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214235&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214235",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Grant recipients must submit to a program staff member designated by the director periodic reports for each funded grant project for the duration of the grant agreement. The frequency, format and requirements of the reports shall be determined at the discretion of the director at the direction of the council.(b) At the director's sole discretion and at any time, the director, upon reasonable notice, may request any additional data and reporting information that the director deems necessary to substantiate that grant funds are being used for the intended purpose and that the grant recipient has complied with the terms, conditions, and requirements of the grant agreement.",
            "sourceNote": "Source Note: The provisions of this §16.215 adopted to be effective July 10, 2023, 48 TexReg 3700."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214235&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214235",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS OPIOID ABATEMENT FUND PROGRAM"
            },
            "rule": {
                "number": "§16.216",
                "label": "Grant Reduction or Termination"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214236&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214236",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If a grant recipient seeks to terminate any grant award before the termination date listed in the grant agreement, the grant recipient must notify the director in writing immediately.(b) The council may reduce or terminate any grant award when circumstances require reduction or termination, including when:(1) the grant recipient is found to be noncompliant under §16.218 of this subchapter;(2) the grant recipient and the council agree to the reduction or termination of a grant award;(3) grant funds are no longer available to the council; or(4) conditions exist that make it unlikely that objectives of the grant award will be accomplished.(c) If a grant award is reduced or terminated by the council, the director must notify the grant recipient in writing.",
            "sourceNote": "Source Note: The provisions of this §16.216 adopted to be effective July 10, 2023, 48 TexReg 3700."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214236&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214236",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS OPIOID ABATEMENT FUND PROGRAM"
            },
            "rule": {
                "number": "§16.217",
                "label": "Extensions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214237&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214237",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The director may approve a grant recipient's written request for a no cost time extension of the termination date of the grant agreement to permit the grant recipient additional time to complete the work of the grant project if the grant recipient is in good fiscal and programmatic standing.(b) A written request for a no cost time extension must include:(1) a timeline of events beginning on the date of grant award;(2) a detailed explanation why the grant project is not expected to be completed within the grant term; and(3) if applicable, supporting documentation demonstrating extenuating circumstances.(c) The director may approve one or more no cost time extensions. The duration of each no cost time extension may be no longer than six months from the termination date of the grant agreement, unless the director finds that special circumstances justify authorizing additional time to complete the work of the grant project.(d) Approval of a no cost time extension request must be supported by a finding of good cause and the grant agreement shall be amended to reflect the change.(e) The director's decision to grant or deny a no cost time extension request is final and is not subject to appeal.",
            "sourceNote": "Source Note: The provisions of this §16.217 adopted to be effective July 10, 2023, 48 TexReg 3700."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214237&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214237",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS OPIOID ABATEMENT FUND PROGRAM"
            },
            "rule": {
                "number": "§16.218",
                "label": "Noncompliance"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214238&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214238",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If the council has reason to believe that a grant recipient has violated any term or condition of the grant recipient's grant agreement or any applicable laws, rules, regulations, or guidance relating to the grant award, the director shall provide written notice of the allegations to the grant recipient and provide the grant recipient with an opportunity to respond to the allegations.(b) If the council finds that a grant recipient has failed to comply with any term or condition of a grant agreement, or any applicable laws, rules, regulations, or guidance relating to the grant award, the council may:(1) require the grant recipient to refund the grant award or a portion of the grant award;(2) withhold grant award amounts to a grant recipient pending correction of the deficiency;(3) disallow all or part of the cost of the activity or action that is not in compliance;(4) terminate the grant award in whole or in part;(5) bar the grant recipient from future consideration for grant funds under this subchapter; or(6) exercise any other legal remedies available at law.(c) A grant recipient shall not be required to forfeit grant funds received if it fails to perform due to acts of war, terrorism, natural disaster declared by the governor of this state, an act of God, force majeure, a catastrophe, or such other occurrence over which the grant recipient has no control.",
            "sourceNote": "Source Note: The provisions of this §16.218 adopted to be effective July 10, 2023, 48 TexReg 3700."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214238&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214238",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS OPIOID ABATEMENT FUND PROGRAM"
            },
            "rule": {
                "number": "§16.219",
                "label": "Monitoring Grant Award Performance and Expenditures"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214239&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214239",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The council shall monitor grant awards to ensure that grant recipients comply with applicable financial, administrative, and programmatic terms and conditions and exercise proper stewardship over grant award funds. Such terms and conditions include requirements set forth in the grant agreement, and applicable laws, rules, regulations, or guidance relating to the grant award.",
            "sourceNote": "Source Note: The provisions of this §16.219 adopted to be effective July 10, 2023, 48 TexReg 3700."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214239&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214239",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS OPIOID ABATEMENT FUND PROGRAM"
            },
            "rule": {
                "number": "§16.220",
                "label": "Records Retention; Audit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214240&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214240",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Grant recipients must maintain all financial records, supporting documents, and all other records pertinent to the grant project or grant award for the later of:(1) five years following the submission of a final report; or(2) if any litigation, claim, or audit is started, or any open records request is received, before the expiration of the five-year records retention period, one year after the completion of the litigation, claim, audit, or open records request and resolution of all issues which arise from it.(b) At any time during the grant agreement and during the retention period described in subsection (a) of this section, the director or the director's designee may, upon reasonable notice, request any records from or audit the books and records of a grant recipient or conduct an on-site review at a grant recipient's location to verify that the grant recipient has complied with the terms, conditions, and requirements of the grant agreement, and any applicable laws, rules, regulations, or guidance relating to the grant award.(c) During an on-site review, a grant recipient must provide the director or the director's designee with access to all records, information, and assets that the director or the director's designee determines are reasonably relevant to the scope of the on-site review.(d) If the director or the director's designee requests records or information from the grant recipient, the grant recipient must provide the requested records or information to the director or the director's designee not later than 30 days after a written request is made by the director or the director's designee.",
            "sourceNote": "Source Note: The provisions of this §16.220 adopted to be effective July 10, 2023, 48 TexReg 3700."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214240&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214240",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS OPIOID ABATEMENT FUND PROGRAM"
            },
            "rule": {
                "number": "§16.221",
                "label": "Forms and Other Documents"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217054&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "217054",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Unless otherwise required by law, the council may prescribe all forms or other documents required to implement this subchapter and may require that the forms or other documents be submitted electronically.",
            "sourceNote": "Source Note: The provisions of this §16.221 adopted to be effective July 10, 2023, 48 TexReg 3700."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=217054&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "217054",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS OPIOID ABATEMENT FUND PROGRAM"
            },
            "rule": {
                "number": "§16.222",
                "label": "Hospital District Allocations"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226409&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "226409",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The council shall make periodic distributions of money allocated to hospital districts under Government Code, §403.508(a)(2). (b) The council shall distribute money under subsection (a) of this section when, based on the total amount of money to be distributed, the smallest amount of the money that would be allocated to an individual hospital district equals at least $1,000. Additionally, the council may, at the council's discretion, distribute money under subsection (a) of this section when, based on the total amount of money to be distributed, an individual hospital district would receive less than $1000.(c) The total amount of each distribution of money under subsection (a) of this section shall be determined by the council.(d) The initial distribution of money under subsection (a) of this section shall be allocated as follows:(1) to the hospital districts listed in subsection (f) of this section in the dollar amounts listed in that subsection; and(2) the remainder to the hospital districts listed in subsection (g) of this section in amounts determined by multiplying the percentages listed in that subsection by the remaining amount to be distributed.(e) Any subsequent distributions of money under subsection (a) of this section shall be allocated to the hospital districts listed in subsection (g) of this section in amounts determined by multiplying the percentages listed in that subsection by the amount to be distributed. (f) Group One:Attached Graphic(g) Group Two:Attached Graphic(h) Amounts allocated under subsections (d)(2) and (e) of this section may be rounded down to the nearest whole dollar. Any remaining money caused by rounding shall be retained for future allocation to hospital districts under this section.(i) Prior to, and as a condition of, receiving a distribution of money under subsection (a) of this section, a hospital district listed in subsection (f) or (g) of this section must, for each distribution: (1) submit to the director a resolution from the hospital district's governing body that:(A) designates, by name and title, an authorized official who has the authority to act on behalf of the hospital district in all matters related to the distribution, including the authority to sign all official documents related to the distribution;(B) affirms that the hospital district will use all money received by the hospital district under this section:(i) to remediate the opioid crisis, including providing assistance in one or more of the categories described in §16.201(b) of this subchapter; or(ii) if a court order or settlement agreement requires the money to be used for one or more specific purposes, for a permissible use provided by that court order or settlement agreement; and(C) affirms that, in the event of loss or misuse of grant funds, the hospital district shall return all funds to the council; (2) submit to the director in a form acceptable to the director:(A) the authorized official's title, mailing address, telephone number, and email address;(B) the hospital district's physical address; and(C) any other documents or information required by the director, including any documents or information required for the secure transfer of money to the hospital district or required by a court order or settlement agreement that applies to all or a portion of the money being distributed;(3) if there is a change of authorized official, submit to the director a new resolution from the hospital district's governing body that contains the information required under paragraph (1) of this subsection;(4) notify the director as soon as practicable of any change in the information provided under paragraph (2) of this subsection; (5) be in compliance with subsection (j) of this section for any prior distributions; and(6) be in compliance with the reporting requirements in subsection (l) of this section for any prior distributions.(j) Money received by a hospital district under this section must be used by the hospital district for the purposes described in subsection (i)(1)(B) of this section.(k) If a hospital district does not satisfy the requirements to receive a distribution under subsection (i) of this section, the distribution to that hospital district may be cancelled and, if cancelled, the money shall be retained by the council for future allocation to hospital districts under this section.(l) A hospital district that receives a distribution of money under this section must submit periodic reports to the director to ensure that the hospital district complies with subsection (j) of this section. The frequency, format, and requirements of the reports shall be determined at the discretion of the director.(m) The council may monitor a hospital district that receives money under this section to ensure that the hospital district complies with subsection (j) of this section.(n) If the council finds that a hospital district has failed to comply with the requirements of subsection (j) of this section, the council may do one or more of the following:(1) instruct the director to provide the hospital district written notice of the alleged failure to comply;(2) provide the hospital district with an opportunity to respond;(3) require the hospital district to cure the failure to comply to the satisfaction of the council;(4) require the hospital district to refund to the council all or a portion of the money received by the hospital district under this section; and(5) exercise any other legal remedies available at law.(o) Money refunded to the council under subsection (n) of this section shall be retained by the council for future allocation to hospital districts under this section.(p) Except as otherwise provided in this section, this section and §16.200 of this subchapter are the only provisions in this subchapter that apply to the allocation of money to hospital districts under Government Code, §403.508(a)(2).",
            "sourceNote": "Source Note: The provisions of this §16.222 adopted to be effective March 18, 2024, 49 TexReg 1735."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226409&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "226409",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "D",
                "label": "RURAL LAW ENFORCEMENT SALARY ASSISTANCE  PROGRAM"
            },
            "rule": {
                "number": "§16.300",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216447&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "216447",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:(1) Applicant--For an entity that applies for a grant under Local Government Code, §130.911 or §130.912, a qualified county, or, for an entity that applies for a grant under Local Government Code, §130.913, a qualified prosecutor's office.(2) County sheriff--A person elected or appointed as the county sheriff and who performs the duties of the office after complying with Local Government Code, §85.001.(3) Deputy sheriff--A person appointed as deputy sheriff pursuant to Local Government Code, §85.003 who performs motor vehicle stops in the routine performance of their duties.(4) Fiscal year--The twelve consecutive calendar months during which an applicant tracks its finances for budget and accounting purposes.(5) Grant--A grant awarded under this subchapter that is a rural sheriff's office salary assistance grant under Local Government Code, §130.911 and as provided by the General Appropriation Act, a rural constable's office salary assistance grant under Local Government Code, §130.912, or a rural prosecutor's office salary assistance grant under Local Government Code, §130.913. (6) Grant agreement--An agreement between the comptroller and a grant recipient that governs the terms of a grant.(7) Grant recipient--A qualified county or a qualified prosecutor's office that receives a grant under this subchapter.(8) Investigator--A person employed by and appointed by the prosecutor's office as an investigator under Government Code, §41.102 and §41.109, and who is licensed under Occupations Code, §1701.301.(9) Jailer--A person employed by the county sheriff as a jailer under Local Government Code, §85.005, who is licensed with a permanent or temporary county jailer license issued under Occupations Code, §1701.301 and §1701.307, or Government Code, §511.00905, and whose duties include the safekeeping of prisoners and the security of a jail operated by the county.(10) Population--The population shown by the most recent federal decennial census.(11) Qualified constable--A constable who meets the following standards:(A) is elected to, and currently holds, an office created on or before January 1, 2023;(B) performs motor vehicle stops in the routine performance of their duties for the majority of their time on duty; and(C) meets all eligibility requirements to serve under Local Government Code, §86.0021, and Code of Criminal Procedure, article 2.12(2).(12) Qualified county--A county with a population of 300,000 or less.(13) Qualified prosecutor's office--An office of a district attorney, criminal district attorney, or county attorney with criminal prosecution duties whose jurisdiction has a population of 300,000 or less.(14) Safety equipment--Any tangible equipment used by a sheriff's office that is necessary to protect the health and physical safety of a county sheriff or deputy sheriff or county jailer while performing their duties, and may include radio equipment or in-car camera systems added to previously owned vehicles, ballistic helmets, ballistic plates, ballistic shields, entry tools, body armor, medical gear & masks, outer carriers, pepper spray, plate carriers, personal alarm, riot batons, riot helmets, riot shields, body cameras, and miscellaneous safety gear which consists of door jams, disposable cuffs and knee pads. The term does not include software unless it is purchased in connection with the purchase of tangible safety equipment and is necessary for that safety equipment to be functional.(15) Victim Assistance Coordinator--The person designated to serve as victim assistance coordinator under Code of Criminal Procedure, article 56A.201, by a district attorney, criminal district attorney, or county attorney who prosecutes criminal cases and who is responsible for the duties listed in Code of Criminal Procedure, article 56A.202.(16) Vehicle--A law enforcement vehicle used by a sheriff's office for transportation while performing duties of the office such as patrols, responses to calls for service, and transport of persons in custody, and includes equipment affixed to the vehicle for law enforcement purposes.",
            "sourceNote": "Source Note: The provisions of this §16.300 adopted\r\nto be effective January 11, 2024, 49 TexReg 141; amended to be effective\r\nJanuary 30, 2025, 50 TexReg 564; amended to be effective October 28,\r\n2025, 50 TexReg 7085."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216447&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "216447",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "D",
                "label": "RURAL LAW ENFORCEMENT SALARY ASSISTANCE  PROGRAM"
            },
            "rule": {
                "number": "§16.301",
                "label": "Applications"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226410&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "226410",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In order to receive payment under this subchapter, an applicant must submit a completed application.(b) An application for funding under this subchapter shall be submitted electronically. The electronic form may require information the comptroller determines is necessary to make an award determination including a certification that the county has not and will not reduce the amount of funds provided to the sheriff's office, constable's office or prosecutor's office, as applicable, because of the award of grant funds under this subchapter. The electronic application process may require a signed grant agreement contingent on approval of a grant award by the comptroller.(c) An application under this subchapter must be submitted during the period that begins 60 days prior to the first day of the applicant's fiscal year and ends on the 30th day of the applicant's fiscal year.(d) The application must be electronically signed by an official of the applicant that is authorized to bind the applicant. The authorized official must certify that all information in the application is true and correct.",
            "sourceNote": "Source Note: The provisions of this §16.301 adopted to be effective January 11, 2024, 49 TexReg 141."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226410&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "226410",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "D",
                "label": "RURAL LAW ENFORCEMENT SALARY ASSISTANCE  PROGRAM"
            },
            "rule": {
                "number": "§16.302",
                "label": "Review by Comptroller"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223702&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223702",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Upon receipt of an application, the comptroller shall review the application to ensure that it is complete. If the application is incomplete, as determined by the comptroller, the comptroller may contact the applicant and request any required information. Any required information requested by the comptroller must be submitted by the applicant within 14 calendar days of the request.(b) An application shall be rejected by the comptroller if the application is submitted:(1) by an applicant that does not meet the definition of a qualified county or qualified prosecutor's office;(2) before 60 days prior to the first day of the applicant's fiscal year for which the applicant is seeking a grant;(3) after the 30th day of a fiscal year for which the applicant is seeking a grant; or(4) on a form other than the electronic form prescribed by the comptroller.(c) The comptroller may reject an application if the applicant or the application does not comply with this subchapter, or does not comply with Local Government Code, §§130.911, 130.912, 130.913, or other state law, as applicable.(d) The comptroller shall make a determination of award not later than 90 days after the date the application is received.",
            "sourceNote": "Source Note: The provisions of this §16.302 adopted to be\r\neffective January 11, 2024, 49 TexReg 141; amended to be effective\r\nOctober 28, 2025, 50 TexReg 7085."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223702&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223702",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "D",
                "label": "RURAL LAW ENFORCEMENT SALARY ASSISTANCE  PROGRAM"
            },
            "rule": {
                "number": "§16.303",
                "label": "Awards; Grant Agreement"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226411&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "226411",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All funding is contingent upon the appropriation of funds by the Texas Legislature and upon approval of a grant application by the comptroller.(b) If the comptroller makes an award, the comptroller shall notify the applicant of the award decision and shall provide a grant agreement to the applicant for signature if the grant agreement was not already submitted as part of the application.(c) All award decisions shall be made at the sole discretion of the comptroller and are not appealable or subject to protest.(d) A grant agreement shall require the comptroller to disburse funds as soon as practicable and shall require funds to be expended during the grant period except the agreement may provide for the reimbursement of certain pre-award costs. Funds for purchases are considered expended when the grant recipient is legally obligated to expend the funds. A legal obligation to expend funds requires an effective, binding contract. Anticipated contracts, contracts under negotiation, and the earmarking or budgeting of funds for a specified purpose do not satisfy the requirement for a legal obligation.(e) Grant award payments are subject to Government Code, §403.055 and §403.0551.(f) A grant agreement must be electronically signed by an official of the grant recipient who is authorized to bind the grant recipient.(g) A qualified county may receive grants for their sheriff's office, constable's office and prosecutor's office. A qualified county with more than one qualified prosecutor's office may receive more than one prosecutor's grant.",
            "sourceNote": "Source Note: The provisions of this §16.303 adopted to be\r\neffective January 11, 2024, 49 TexReg 141; amended to be effective\r\nJanuary 30, 2025, 50 TexReg 564."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226411&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "226411",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "D",
                "label": "RURAL LAW ENFORCEMENT SALARY ASSISTANCE  PROGRAM"
            },
            "rule": {
                "number": "§16.304",
                "label": "Authorized Uses of Grant Funds; Limitations"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223704&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223704",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A rural sheriff's office salary assistance grant awarded under this subchapter may only be used:(1) to provide a minimum annual salary of at least:(A) $75,000 for the county sheriff;(B) $45,000 for each deputy sheriff; and(C) $40,000 for each jailer; and(2) provided that each county sheriff that meets the definition in §16.300(2) of this title, each deputy sheriff that meets the definition in §16.300(3) of this title, and jailer that meets the definition in §16.300(9) of this title that is employed by the county sheriff, regardless of hiring date, receives the minimum salary described by paragraph (1) of this subsection:(A) to increase the salary of a person described by paragraph (1) of this subsection;(B) to hire additional deputies or staff for the sheriff's office; or(C) to purchase vehicles, firearms, and safety equipment for the sheriff's office.(b) A rural constable's office salary assistance grant awarded under this subchapter:(1) may only be used to provide a minimum annual salary of $45,000 to a qualified constable; and(2) for each qualified constable whose salary is funded in part by the grant awarded under this subchapter, the county must contribute at least 75% of the money required to meet the minimum annual salary requirement.(c) A rural prosecutor's office salary assistance grant awarded under this subchapter may only be used:(1) to increase the salary of an assistant attorney, an investigator, or a victim assistance coordinator employed at the prosecutor's office; or(2) to hire additional staff for the prosecutor's office.(d) Grant funds may not be used for indirect costs or direct administrative costs of a grant recipient. Unallowable direct administrative costs include software, trainings, licenses and expenses for the business functions of the office. Grant funds may not be used for contract labor, but a grant recipient may hire an employee with a predetermined termination date.(e) For the purpose of subsection (a)(1) of this section, if a grant recipient does not have sufficient grant funding to fund the minimum annual salaries required by this subsection, the grant recipient may use grant funds to increase the salaries of the persons described in that subsection on a pro-rata basis.(f) If a person described by subsection (a)(1) or (b)(1) of this section is a part-time or hourly employee, or holds a dual office or otherwise divides work hours between a position described in this section and another position, the minimum annual salary required by this section may be converted to a minimum hourly wage and will apply only to the hours of work performed for a position described in this section.(1) For an employee with a 40-hour work week, the minimum hourly wage shall be the product of:(A) the minimum annual salary described in this section; and(B) a quotient:(i) the numerator of which is equal to the number of hours the employee normally works performing duties for a position described in this section each week, not to exceed 40; and(ii) the denominator of which is equal to 40; and(2) for an employee with a county adopted work period as authorized by the Fair Labor Standards Act, 29 U.S.C.A. § 207(k), the minimum hourly wage shall be the product of:(A) the minimum annual salary described in this section; and(B) a quotient:(i) the numerator of which is equal to the number of hours the employee normally works performing duties for a position described in this section each period, not to exceed the number of hours that are nonovertime as determined under the Fair Labor Standards Act; and(ii) the denominator of which is equal to the number of hours that are nonovertime as determined under the Fair Labor Standards Act.(g) For grants awarded under this subchapter: (1) Grant funds described by subsection (a) and (b) of this section may only be used for the state purpose of ensuring professional law enforcement throughout the state; and(2) Grant funds described by subsection (c) of this section may only be used for the state purpose of ensuring professional legal representation of the people's interests throughout the state.(h) A person whose salary increase may be paid with grant funds under subsections (a)(2)(A) or (c)(1) of this section may be paid an increase in hourly wages if they are paid an hourly wage rather than an annual salary.(i) For salary increases required to bring a salary to the minimum annual salary as described by subsections (a)(1) and (b)(1) of this section, and salary increases described by subsections (a)(2)(A) and (c)(1) of this section:(1) the cost of providing a salary increase includes:(A) the amount by which the salary increases;(B) excluding benefits and taxes paid for overtime pay, the amount by which the legally required nonmonetary benefits and taxes for that employee increases as a result of the salary increase, including:(i) the increase in the employers share of payroll taxes; and(ii) if applicable, any increase in the employers share of retirement contributions.(2) The cost of providing a salary increase does not include:(A) overtime pay;(B) compensatory time pay that is paid out;(C) longevity pay; or(D) any legally required nonmonetary benefit that is not calculated as a percentage of salary or wages.(3) The increase in a salary is measured based on the salary provided on the last day of the entity's fiscal year ending prior to the first year the entity received grant funds.(4) A county may only use grant funds for the legally required nonmonetary benefits and taxes for a salary if the county provides the minimum annual salary required by subsections (a)(1) and (b)(1) of this section, if applicable. A county may not reduce a salary below a minimum salary required by subsection (a)(1) or (b)(1) of this section in order to use grant funds for legally required nonmonetary benefits and taxes for that salary.(5) For example, in Fiscal Year 2023, a county sheriff's minimum annual salary is $50,000 and the county pays $3,825 for the employers share of payroll taxes, pays $2,500 to Texas County and District Retirement System (TCDRS) for an employers matching retirement contribution, and $2,500 for health insurance premiums. In Fiscal Year 2024, because of the grant, the annual salary is $75,000, the employers share of payroll taxes is $5,737.50, the employers matching contribution to TCDRS is $3,750, and health insurance premiums are $2,500. The county may use grant funds to increase the sheriff's annual budget by $25,000 + $1,912.50 + $1,250 = $28,162.50. In Fiscal Year 2025, because of the grant, the county may use grant funds to continue to fund the increase to the sheriff's annual budget for the annual salary increase by $25,000 + $1,912.50 + $1,250 = $28,162.50. (j) For additional employees hired under subsections (a)(2)(B) or (c)(2) of this section:(1) the cost of hiring the additional employees includes:(A) the salary, which, if applicable, must meet the minimum annual salary required by subsections (a)(1) and (b)(1) of this section; and(B) the legally required nonmonetary benefits and taxes for that employee, including:(i) the employers share of payroll taxes;(ii) if applicable, the employers share of retirement contributions; and(iii) if applicable, the employers share of health insurance premiums.(2) The cost of hiring the additional employees does not include:(A) overtime pay;(B) compensatory time pay that is paid out; or(C) longevity pay.(3) Determination of whether an employee is an additional employee is based on whether the position existed on the last day of the entity's fiscal year ending prior to the first year the entity received grant funds.(4) For the additional position to be eligible for salary increases funded by the grant, it must be an eligible salary increase under subsection (a)(2)(A) or (c)(1) of this section.(5) For example, in Fiscal Year 2024, a county hires a new deputy sheriff with the following costs: a salary of $50,000, $3,825 for the employers share of payroll taxes, $2,500 to Texas County and District Retirement System (TCDRS) for an employers matching retirement contribution, and $2,500 for health insurance premiums. Total Fiscal Year 2024 allowable costs are $58,825. In Fiscal Year 2025, the county continues to employ this deputy sheriff and provides a salary increase of $2,500 resulting in an $192 increase in the employers share of payroll taxes, an $192 increase in the employers matching retirement contribution, and no increase in health insurance premiums. This position is eligible for a salary increase under subsection (a)(2)(A) of this section. Total Fiscal Year 2025 allowable costs for this position are $61,709, which include the same amount of $58,825 that it cost to create the position in FY 2024 plus the cost of $2,884 to increase the salary.(k) For vehicle leases to be considered a purchase as described in subsection (a)(2)(C) of this section, the grant recipient must:(1) have the right to purchase the vehicle on performing conditions stated in the agreement; and(2) have an immediate right to possess the vehicle.",
            "sourceNote": "Source Note: The provisions of this §16.304 adopted\r\nto be effective January 11, 2024, 49 TexReg 141; amended to be effective\r\nJanuary 30, 2025, 50 TexReg 564; amended to be effective October 28,\r\n2025, 50 TexReg 7085."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223704&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223704",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "D",
                "label": "RURAL LAW ENFORCEMENT SALARY ASSISTANCE  PROGRAM"
            },
            "rule": {
                "number": "§16.305",
                "label": "Reporting and Compliance"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226992&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "226992",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A grant recipient shall submit a compliance report certifying compliance and detailing expenditures of grant funds using the comptroller's electronic form. The comptroller may request supporting documentation regarding expenditures and any other information required to substantiate that grant funds are being used for the intended purpose and that the grant recipient has complied with the terms, conditions, and requirements of the applicable statute, the grant agreement and this subchapter. Any information requested by the comptroller must be submitted by the grant recipient within 14 calendar days of the request.(b) Grant recipients must comply with:(1) the terms and conditions of the grant agreement;(2) the requirements of Local Government Code, §§130.911, 130.912, or 130.913, as applicable;(3) the relevant provisions of the Texas Grant Management Standards and the State of Texas Procurement and Contract Management Guide, or their successors, adopted in accordance with Texas law; and(4) all applicable state or federal statutes, rules, regulations, or guidance applicable to the grant award, including this subchapter.(c) If the comptroller finds that a grant recipient has failed to comply with any requirement described in subsection (b) of this section, the comptroller may:(1) require the grant recipient to cure the failure to comply to the satisfaction of the comptroller;(2) require the grant recipient to return the grant award or a portion of the grant award;(3) withhold grant award amounts from the current grant or future grants to be received by a grant recipient pending correction of the deficiency;(4) disallow all or part of the cost of the activity or action that is not in compliance;(5) terminate the grant award in whole or in part;(6) bar the grant recipient from future consideration for grant funds under this subchapter; or(7) exercise any other legal remedies available at law.(d) The compliance report must be electronically signed by an official of the grant recipient who is authorized to bind the grant recipient. The authorized official must certify that all information in the compliance report is true and correct and will be responsible for providing any additional documents requested by the comptroller.",
            "sourceNote": "Source Note: The provisions of this §16.305 adopted to be\r\neffective January 11, 2024, 49 TexReg 141; amended to be effective\r\nJanuary 30, 2025, 50 TexReg 564."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226992&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "226992",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "E",
                "label": "EDUCATION SAVINGS ACCOUNT PROGRAM"
            },
            "rule": {
                "number": "§16.401",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226993&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "226993",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Agency--The Texas Education Agency.(2) Application period--The period that the program is open to receive applications.(3) Assessment instrument or academic assessment--A nationally norm-referenced test evaluating academic aptitude or a test consistent with the requirements under Education Code, Chapter 39, Subchapter B, including an alternative assessment administered to a child with a disability. For this subchapter, a \"nationally norm-referenced test\" requires that the test compare a child's performance to the performance of comparable children throughout the United States.(4) Campus--A building, set of buildings, or other property owned or controlled by a private school, including a virtual campus, and used by the institution in direct support of, or in a manner directly related to, the provision of educational instruction.(5) Certified educational assistance organization--As defined by Education Code, §29.351(2), an organization certified under Education Code, §29.354, to support the administration of the program.(6) Child with a disability--As defined by Education Code, §29.351(3), a child who is eligible to participate in a school district's special education program under Education Code, §29.003.(7) Comptroller--The Texas Comptroller of Public Accounts. (8) Education service provider or provider--An approved private school, or an approved private provider of a prekindergarten or kindergarten program.(9) Educational therapies--Treatment provided to a participating child by or at the direction of a licensed physician or licensed therapist to address the academic performance of a participating child.(10) Good standing--A participating parent, participating child, education service provider, or vendor of educational products or services shall be considered in good standing with the program by complying with all applicable program requirements and applicable law.(11) Higher education provider--As defined by Education Code, §29.351(4), an institution of higher education or a private or independent institution of higher education, as those terms are defined by Education Code, §61.003.(12) Industry-based credential--A credential listed on the agency's most recently published Industry-Based Certification List for Public School Accountability. (13) Instructional materials--Printed or digital materials, supplies, or equipment that convey educational information to a student, assists another in conveying educational information to a student, or otherwise contributes to a student's learning process.(14) Located in this state--A physical location in the state of Texas, whether a campus or administrative office, where the private school or private provider of a prekindergarten or kindergarten program employs one or more Texas residents sufficient to enable the program's operations and enforcement, including compliance with the program's audit requirements.(15) Online educational course or program--A subject-specific instructional offering in which instruction and content are delivered synchronously or asynchronously primarily over the Internet.(16) Parent--As defined by Education Code, §29.351(5), a resident of this state who is a natural or adoptive parent, managing or possessory conservator, legal guardian, custodian, or other person with legal authority to act on behalf of a child.(17) Participating child--As defined by Education Code, §29.351(6), a child enrolled in the program.(18) Participating parent--The parent who applied to participate in the program under Education Code, §29.356, on behalf of their child.(19) Program--As defined by Education Code, §39.351(8), the program established under Education Code, Chapter 29, Subchapter J.(20) Program participant--As defined by Education Code, §29.351(9), a participating child or a participating parent.(21) Program year--The period from July 1 of one year through June 30 of the next year.(22) Secretary--The Texas Secretary of State.(23) Sibling--A brother, sister, stepbrother, stepsister, half-brother, half-sister, or a foster brother or sister who is a dependent of the participating parent and has been placed with the participating parent by an authorized placement agency or by judgment, decree, or other order of a court of competent jurisdiction.(24) Total annual income--The adjusted gross income for federal income tax purposes or its estimated equivalent of the child's parents or, if only one parent qualifies to claim the child as a dependent, the adjusted gross income for federal income tax purposes or its estimated equivalent of the parent who qualifies to claim the child as a dependent. (25) Tuition and fees--The standard amount imposed on all students under §16.406(1) of this subchapter for teaching and instruction, including application fees, registration fees, and course specific fees to the extent related to educational instruction.(26) Vendor of educational products or services or vendor--A vendor approved to receive money from the program for providing products or services that are approved education related expenses. The term excludes an approved private school or an approved private provider of a prekindergarten or kindergarten program.",
            "sourceNote": "Source Note: The provisions of this §16.401 adopted\r\nto be effective December 15, 2025, 50 TexReg 8046."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226993&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "226993",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "E",
                "label": "EDUCATION SAVINGS ACCOUNT PROGRAM"
            },
            "rule": {
                "number": "§16.402",
                "label": "Certified Educational Assistance Organizations"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226994&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "226994",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) To be selected as a certified educational assistance organization by the comptroller, an organization must:(1) be registered with the secretary to do business in this state;(2) have the right to transact business in this state and comply with all tax filing, collection, and payment requirements imposed by the state of Texas;(3) comply with the audit requirements under Education Code, §29.363, by providing to a private entity under contract with the comptroller or to the state auditor, as applicable:(A) the organization's internal controls over program transactions;(B) confirmation that residency documentation specified under Education Code, §29.355(a-1), for each child admitted to the program and served by the organization during the applicable program year was verified by the organization; and(C) any other information or documentation related to a program transaction;(4) establish and maintain cybersecurity controls and processes satisfactory to the comptroller, including best practices developed under Government Code, §2054.5181;(5) comply with all applicable state and federal confidentiality and privacy laws, including the Family Educational Rights Privacy Act of 1974 (20 U.S.C. §1232g); and(6) comply with all program requirements under Education Code, Chapter 29, Subchapter J.(b) A certified educational assistance organization must have the ability to perform one or more of the services listed in Education Code, §29.354.(c) On or before every October 1 and February 1, or as additionally requested by the comptroller, each certified educational assistance organization shall comply with the requirements under §29.362(d), Education Code, for each participating child served by the organization.",
            "sourceNote": "Source Note: The provisions of this §16.402 adopted to be\r\neffective December 15, 2025, 50 TexReg 8046."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226994&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "226994",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "E",
                "label": "EDUCATION SAVINGS ACCOUNT PROGRAM"
            },
            "rule": {
                "number": "§16.403",
                "label": "Program Participation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226995&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "226995",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A child is eligible to participate in the program if, during program participation:(1) the child is eligible to either attend a public school, including an open-enrollment charter school, under Education Code, §25.001, or a free prekindergarten program offered by a public school or open-enrollment charter school to certain children under Education Code, §29.153;(2) the child is not enrolled in a public school, including an open-enrollment charter school, or a prekindergarten program of a public school, including an open-enrollment charter school;(3) the child is a citizen or national of the United States or has been lawfully admitted to the United States;(4) the child has not been declared ineligible for the program under Education Code, §29.364; and(5) the child has not graduated from high school.(b) To apply for participation in the program, the child's parent must submit a comptroller-approved application to the designated certified educational assistance organization during the application period. The application must be accompanied by:(1) authorization to allow electronic verification that, or documentary proof that the child is a citizen or national of the United States or was lawfully admitted into the United States, including being a legal permanent resident, in a format acceptable to the comptroller and subject to verification by the comptroller, such as a copy of one of the following for the child: a birth certificate issued in the United States or one of its territories, a certificate of United States naturalization, a certificate of United States citizenship, a United States Consular Report of Birth Abroad, a United States passport, a Legal Permanent Resident Card, an order or judicial decision issued from the Executive Office of Immigration Review, or other documentation issued by the Department of Homeland Security affirming lawful admission; (2) authorization to allow electronic verification of, or documentary proof of the child's current residency in this state as established by one of the following documents specified under Education Code, §29.355(a-1): a utility bill, lease or mortgage statement, driver's license or state identification card, voter registration card, letter from a government agency in the United States, or notarized affidavit of residency;(3) authorization to allow electronic verification of, or documentary proof of, total annual income, such as an Internal Revenue Service transcript of a federal tax return, Texas Workforce Commission data, the most recently filed federal tax returns or other documentation requested by the program to determine and verify total annual income;(4) an agreement and certification under penalty of perjury by the participating parent that they will:(A) only request the payment of program money for approved education-related expenses under Education Code, §29.359;(B) not attempt to withdraw cash or seek reimbursement from the child's account; (C) refrain from selling items purchased with program money;(D) for a participating child in grades 3 through 12 enrolled in a private school that is an approved education service provider, provide or authorize and instruct the administrator of assessment instrument administered to a child under Education Code, §29.358, to provide the results of such assessment to the certified educational assistance organization responsible for that child by the end of the program year during which the assessment is administered;(E) comply with the audits requirements under Education Code, §29.363, by providing to a private entity under contract with the comptroller or to the state auditor any information or documentation related to a program transaction; and(F) no later than 30 calendar days from the date the child enrolls in a public school, including an open-enrollment charter school, or otherwise becomes ineligible to participate in the program, provide written notification to the program in a comptroller-approved format and will cease requesting distributions from the child's account for any expense incurred on and after the date the child is no longer eligible to participate in the program; (5) for a child to be considered a child with a disability for purposes of prioritization under Education Code, §29.356:(A) proof of eligibility to participate in a school district's special education program under Education Code, §29.003, by meeting an eligibility definition described by 19 TAC §89.1040 that is submitted in a comptroller-prescribed format and signed by one or more licensed professionals qualified to attest that the child meets the applicable eligibility definition, for a child moving to this state from another state, submitted in the form of an individualized education program created by a school district in another state for that child and verified by that state or school district, or submitted in the form of a full individual and initial evaluation of the child conducted by a school district under Education Code §29.004; or(B) authorization to verify with the agency that an individualized education program has been issued by a school district or open-enrollment charter school for the child; and(6) for a child to be considered eligible to enroll in a school district's or open-enrollment charter school's prekindergarten program under Education Code, §29.153, authorization to allow electronic verification that, or documentary proof that, the child will be between 3 and 5 years of age on September 1 of the following school year and:(A) is unable to speak and comprehend the English language; (B) is educationally disadvantaged as defined by Education Code, §5.001(4);(C) is homeless, regardless of the residence of the child, of either parent of the child, or of the child's guardian or other person having lawful control of the child;(D) is the child of an active-duty member of the armed forces of the United States, including the state military forces or a reserve component of the armed forces, who is ordered to active duty by proper authority;(E) is the child of a member of the armed forces of the United States, including the state military forces or a reserve component of the armed forces, who was injured or killed while serving on active duty;(F) is or ever has been in the conservatorship of the Department of Family and Protective Services following an adversary hearing held as provided by Family Code, §262.201, or foster care in another state or territory, if the child resides in this state;(G) is the child of a person eligible for the Star of Texas Award as a peace officer under Government Code, §3106.002, a firefighter under Government Code, §3106.003, or an emergency medical first responder under Government Code, §3106.004; or(H) is the child of a person employed as a classroom teacher at a public primary or secondary school in the school district that offers a prekindergarten class under Education Code, §29.153.(c) For the purpose of calculating the amount to be transferred to the account of a child with a disability under Education Code, §29.361, the applicant must submit authorization to verify with the agency that an individualized education program has been issued by a school district for the child. The program may establish a deadline for verification of an individualized education program with the agency for the purpose of calculating funding under Education Code, §29.361(a)(2), and the deadline may be as early as practicable to efficiently determine funding amounts for children accepted into the program. (d) A participating parent is not required to reapply, but must be in good standing and provide notice in a comptroller-approved format to a designated certified educational assistance organization during the application period if the parent intends for their participating child to continue to participate in the program the following program year. To the extent there are available positions, such a child shall be admitted to the program for the following program year prior to the approval of applications under subsection (f) of this section.(e) Information shared with a certified educational assistance organization by the agency, a school district, or an open-enrollment charter school to determine a child's eligibility to participate in the program, including a child's public school enrollment status and whether the child can be counted toward a public school's average daily attendance for purposes of the allocation of funding under the foundation school program, shall be held consistent with all applicable federal and state confidentiality and privacy requirements, shall not be sold or otherwise distributed, and shall not be retained beyond the period necessary to determine a child's eligibility.(f) Acceptable applications for admission to the program received during an application period shall, at the direction of the comptroller, be:(1) separated into the following categories:(A) siblings of participating children;(B) children to whom subparagraph (C) of this paragraph does not apply; and(C) children who previously ceased participation in the program by enrolling in a public school, including an open-enrollment charter school;(2) separated within each group established under paragraph (1) of this subsection into the following subcategories as described by Education Code, §29.356(b)(2):(A) children with a disability who are members of a household with a total annual income that is at or below 500% of the federal poverty guidelines;(B) children who are members of a household with a total annual income that is at or below 200% of the federal poverty guidelines;(C) children who are members of a household with a total annual income that is above 200% of the federal poverty guidelines and below 500 percent of the federal poverty guidelines; and(D) children who are members of a household with a total annual income that is at or above 500% of the federal poverty guidelines;(3) sequentially ordered by lottery within each resulting subcategory if more eligible applications are received than available slots during an application period, with siblings applying during the same application period being considered together in the first subcategory for which one of the siblings qualifies;(4) subject to Education Code, §29.3521(d), which limits admission of children under paragraph (2)(D) of this subsection to 20% of the amount appropriated for the school year, approved for admission to the program in the order established under paragraph (3) of this subsection until available funds calculated under §16.407(a) of this subchapter have been exhausted based on the total annual amount calculated under Education Code, §29.361, for each child admitted; and(5) to the extent not approved for admission under paragraph (4) of this subsection, placed on a waiting list in the order established under paragraph (3) of this subsection.(g) Subject to Education Code, §29.3521(d), which limits admission of children under subsection (f)(2)(D) of this section to 20% of the amount appropriated for the school year, if additional funds become available, applications for children on the waiting list may be approved for admission to the program in the order established under subsection (f)(5) of this section, with funding of the child's account to be prorated for the remaining months of the program year beginning on the first day of the month following the month of approval. When implementing waiting list admissions, and after considering relevant factors including enabling program participation, administrative complexity, costs, and delays, the program may:(1) determine time periods for waiting list admissions; (2) provide reasonable deadlines for applicant response and enrollment; and(3) for each new application period, determine what information from the previously-submitted application must be updated and confirmed.(h) As soon as practicable after making a waiting list implementation determination under subsection (g) of this section, the program must post the determination on the program's internet website and add the information to the next handbook publication.",
            "sourceNote": "Source Note: The provisions of this §16.403 adopted to be\r\neffective December 15, 2025, 50 TexReg 8046."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226995&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "226995",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "E",
                "label": "EDUCATION SAVINGS ACCOUNT PROGRAM"
            },
            "rule": {
                "number": "§16.404",
                "label": "Education Service Providers and Vendors of Educational Products"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226996&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "226996",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) To be approved as an education service provider or vendor of educational products or services by the comptroller, a provider or vendor must submit a comptroller-approved application and:(1) if an education service provider, be located in this state;(2) if a vendor of products or services, be registered with the secretary to do business in this state;(3) have the right to transact business in this state by complying with all tax filing, collection, and payment requirements imposed by the state of Texas; and(4) agree and certify under penalty of perjury that the provider or vendor will:(A) accept orders and money from the program only for education-related expenses approved under Education Code, §29.359;(B) subject to subsection (b) of this section, not charge a program participant for services or products paid for by the program, including tuition and fees, in an amount greater than or in addition to the established standard amount charged to all others for that service or product by the provider or vendor;(C) not accept program money for a service or product to the extent the service or product is not provided;(D) not rebate, refund, or credit to or share program money with a program participant or any person on behalf of a program participant;(E) promptly return any money received in violation of program rules or other relevant law to the comptroller or designated certified educational assistance organization for deposit into the program fund;(F) ensure that each person who will interact with a participating child by reason of their employment with the provider or vendor, including in person, online, or electronic interactions, is not identified as having engaged in misconduct described by Education Code, §22A.051(a)(2)(A), (B), (C), or (D), by:(i) using the interagency reportable conduct search engine established under Health and Safety Code, Chapter 810; or(ii) if the interagency reportable conduct search engine established under Health and Safety Code, Chapter 810, has not been established, using the registry established under Education Code, §22A.051;(G) comply with the audits requirements under Education Code, §29.363, by providing to a private entity under contract with the comptroller or to the state auditor information or documentation related to a program transaction;(H) notify the comptroller or designated certified educational assistance organization not later than the 30th calendar day after the date that the provider or vendor no longer meets the program requirements; and(I) abide by all other program requirements.(b) A private school may charge different standard amounts of tuition and fees for categories of students if those categories are unrelated to program participation.(c) An approved provider of supplemental special education services under Education Code, Chapter 29, Subchapter A-1, in good standing with the agency shall be approved as a vendor of educational products or services for the program.(d) A private school shall be approved as a provider by permitting electronic verification of, if available, or submitting proof of:(1) accreditation by an organization recognized by the Texas Private School Accreditation Commission or agency;(2) annual administration of an assessment instrument to participating children in grades 3 through 12; (3) continuous operation of a campus, regardless of whether located in this state, for at least two school years preceding the date the school seeks approval; and(4) that the school is located in this state.(e) For a private school that operates more than one campus in this state, including a virtual campus, approval to participate extends only to a campus that is:(1) operated by that school; and (2) covered by the accreditation that the school submitted under subsection (d)(1) of this section or covered by another accreditation by an organization recognized by the Texas Private School Accreditation Commission or agency. (f) A public school or open-enrollment charter school shall be approved as a vendor of educational products or services by permitting electronic verification of, if available, or submitting proof of accreditation by the agency and demonstrating the ability to provide services or products to participating children in a manner such that the children are not counted toward the district's or school's average daily attendance.(g) A higher education provider shall be approved as a vendor of educational products or services by permitting electronic verification of, if available, or submitting proof of a nationally recognized postsecondary accreditation.(h) A private provider of a prekindergarten or kindergarten program shall be approved as an education service provider by permitting electronic verification of, if available, or submitting proof that the provider meets the requirements of Education Code, §29.171 and is located in this state;(i) A private tutor, therapist, or employee of a teaching service shall be approved as a vendor of educational products or services by permitting electronic verification of, if available, or submitting proof that:(1) the individual providing the service to the child is not required to be discharged or refused to be hired by a school district under Education Code, §22A.157, and has not engaged in misconduct described by Education Code, §22A.052(b)(1), by obtaining a complete national criminal history record review in an acceptable format and dated within 30 days of the application;(2) the individual providing the service to the child is not included in the registry under Education Code, §22A.151;(3) if a tutor or employee of a teaching service:(A) is an educator employed by or a retired educator formerly employed by a school accredited by the agency, an organization recognized by the agency, or an organization recognized by the Texas Private School Accreditation Commission;(B) holds a relevant license or accreditation issued by a state, regional, or national certification or accreditation organization; or(C) is employed in or retired from a teaching or tutoring capacity at a higher education provider; and(4) if a therapist, the individual providing the service possesses a current, relevant license or accreditation issued by a state, regional, or national certification or accreditation organization. (j) To be approved as a vendor of products or services under Education Code, §29.358(b-1), a vendor must comply with subsection (a) of this section and must:(1) if a vendor of an online educational course or program under Education Code, §29.359(A)(1)(C), permit electronic verification of, if available, or submit proof that each person who will interact with a participating child by reason of their employment with the vendor, including in person, online, or electronic interactions, is not required to be discharged or refused to be hired by a school district under Education Code, §22A.157, and has not engaged in misconduct described by Education Code, §22A.052(b)(1), by obtaining a complete national criminal history record review in an acceptable format and dated within 30 days of the application;(2) if a vendor of an academic assessment under Education Code, §29.359(4), comply with Education Code, §29.357(b); or(3) if a vendor of transportation services under Education Code, §29.359(6), permit electronic verification of, if available, or submit proof that: (A) each person who will interact with a participating child by reason of their employment with the vendor, including in person, online, or electronic interactions, is not required to be discharged or refused to be hired by a school district under Education Code, §22A.157, and has not engaged in misconduct described by Education Code, §22A.052(b)(1), by obtaining a complete national criminal history record review in an acceptable format and dated within 30 days of the application; and (B) each person providing such transportation services holds a valid Texas driver's license required for the transportation service provided.(k) Money transferred by the program to a participating child's account may not be used to pay any individual related to the participating child within the third degree by consanguinity or affinity, as determined under Government Code, Chapter 573. For the purpose of this subsection, a payment to an entity, other than a sole proprietorship owned by the individual or a partnership of which the individual is a partner, is not a payment to an individual related to the participating child.",
            "sourceNote": "Source Note: The provisions of this §16.404 adopted to be\r\neffective December 15, 2025, 50 TexReg 8046."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226996&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "226996",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "E",
                "label": "EDUCATION SAVINGS ACCOUNT PROGRAM"
            },
            "rule": {
                "number": "§16.405",
                "label": "Suspension of Program Participation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226997&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "226997",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A program participant's account shall be suspended from use any time the participant fails to comply with any program requirement or other applicable law. An education service provider or vendor of educational products or services shall immediately be suspended from participating in the program at any time the provider or vendor fails to meet the eligibility requirements or fails to comply with any program requirement or other applicable law.(b) On suspension under subsection (a) of this section, the comptroller or a designated certified educational assistance organization shall notify the participating parent, education service provider, or vendor of educational products or services in writing both by first-class mail and email that the participant's ability to use their account, or provider's or vendor's right to participate in the program, has been suspended and that no purchases or payments may be made on or after the date of suspension. The notification must specify the grounds for the suspension, any corrective action required, and notice that the participant, provider, or vendor has 30 calendar days from the date of the notification to respond and comply with any corrective actions required. (c) On the expiration of the 30-calendar-day period under subsection (b) of this section, or earlier if a response has been received and any corrective action completed, based on the severity of the violation, the response and actions taken by the program participant, education service provider, or vendor of educational products or services, and the risks to the integrity of the program, at the comptroller's discretion:(1) the comptroller may permanently close the participant's account thereby removing the participant from the program or permanently remove the education service provider or vendor of educational products or services from the program if the participant, provider, or vendor has failed to respond or fully comply with the required corrective action by the deadline specified under subsection (b) of this section;(2) the comptroller or a designated certified educational assistance organization may temporarily reinstate the participant's account, or temporarily reinstate the provider or vendor for 30 calendar days and allow purchases or payments to resume, conditioned on successful performance of additional corrective action; or(3) the comptroller or a designated certified educational assistance organization may reinstate the participant's account, or reinstate the provider or vendor for participation in the program if the participant, provider, or vendor has fully complied with the required corrective action.(d) On the expiration of the 30-calendar-day period under subsection (c)(2) of this section, based on the severity of the violation, the response and actions taken by the program participant, education service provider, or vendor of educational products or services, and the risks to the integrity of the program, and at the comptroller's discretion:(1) the comptroller may permanently close the participant's account thereby removing the participant from the program or permanently remove the provider or vendor from the program if the participant, provider, or vendor has failed to fully comply with the required corrective action; or(2) the comptroller or a designated certified educational assistance organization may reinstate the participant's account, or reinstate the provider or vendor for participation in the program if the participant, provider, or vendor has fully complied with the required corrective action.(e) On removal under this section, the comptroller shall notify the program participant, education service provider, or vendor of educational products or services and each certified educational assistance organization that facilitates program purchases that the participant, provider, or vendor may no longer participate in the program. If the comptroller has evidence of fraud or any other violation of law by a participant, provider, or vendor, the comptroller shall notify the appropriate local county or district attorney with jurisdiction over the participant, provider, or vendor.(f) A decision to permanently close a participant's account under this section thereby removing them from participation in the program is appealable under §16.409 of this subchapter. All other decisions made under this section are final and not subject to appeal.",
            "sourceNote": "Source Note: The provisions of this §16.405 adopted to be\r\neffective December 15, 2025, 50 TexReg 8046."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226997&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "226997",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "E",
                "label": "EDUCATION SAVINGS ACCOUNT PROGRAM"
            },
            "rule": {
                "number": "§16.406",
                "label": "Approved Education-Related Expenses"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226998&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "226998",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Program money may be used only at an approved provider for the following education-related expenses of a participating child:(1) tuition and fees paid to a private school, higher education provider, online educational course, or industry-based training program that provides credit towards a high school diploma or industry-based credential;(2) uniforms required by a private school, higher education provider, or industry-based training program in which the child is enrolled;(3) textbooks and instructional materials;(4) fees for classes or other educational services provided by a public school, including an open-enrollment charter school, if the classes or services do not qualify the child to be included in the district's or school's average daily attendance; (5) costs related to assessment instruments for the child; (6) fees for educational services provided by a private tutor or teaching service to the child;(7) fees for educational therapies or services provided to the child to the extent not covered by government benefits or by private insurance or provided by a public school, including an open-enrollment charter school;(8) costs related to transportation provided to the child by a commercial, fee-for-service provider for travel to and from an education service provider or vendor of educational products or services;(9) the cost of computer hardware and software and other technological devices required by an education service provider or vendor of educational products or services or prescribed by a physician to facilitate the child's education, not to exceed in any year 10% of the total amount allocated to the participating child's account for the program year; and(10) the cost of breakfast or lunch provided by a private school to the child during the school day.",
            "sourceNote": "Source Note: The provisions of this §16.406 adopted\r\nto be effective December 15, 2025, 50 TexReg 8046."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226998&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "226998",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "E",
                "label": "EDUCATION SAVINGS ACCOUNT PROGRAM"
            },
            "rule": {
                "number": "§16.407",
                "label": "Program Administration"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226999&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "226999",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Each program year, the comptroller shall calculate the amount available to fund accounts of participating children based on amounts appropriated and other available program funds.(b) Each school year that a child participates in the program, as directed by Education Code, §29.361(a)(1), a total amount shall be transferred to the child's program account equal to 85% of the estimated statewide average amount of state and local funding per student in average daily attendance for the most recent school year for which that information is available. Subject to the $30,000 limitation under Education Code, §29.361(b), an additional amount shall be transferred to the account of a child with a disability equal to the amount a school district in which the child would otherwise be enrolled would be entitled to receive for the child calculated based on the child's individualized education program and the provisions of Education Code, Chapter 48, that provide funding based on a child's participation in a school district's special education program under Education Code, Chapter 29, Subchapter A, applicable for the school year preceding the school year in which the child initially enrolls in the program. The amount transferred to the account of a participating child who is not enrolled in a private school or a private provider of a prekindergarten or kindergarten program that is an approved education service provider may not exceed the $2,000 limitation specified under Education Code, §29.361(b-1). Any award of additional program funds based on changes in participant status during a school year is subject to the availability of program funds.(c) No later than July 1 of each program year or as soon thereafter as appropriated funds become available, the comptroller shall make payments to a certified educational assistance organization for each participating child served by the organization equal to at least one-quarter of the total annual amount calculated under subsection (b) of this section for that child. Subject to subsection (f) of this section, the organization shall immediately deposit the amount received for each child under this subsection into the account established for that child.(d) No later than October 1 of each program year or as soon thereafter as appropriated funds become available, the comptroller shall make additional payments to a certified educational assistance organization for each participating child served by the organization to the extent necessary to ensure payments for that program year equal at least one-half of the total annual amount calculated under subsection (b) of this section for that child. The organization shall immediately deposit the amount received for each child under this subsection into the account established for that child.(e) No later than April 1 of each program year or as soon thereafter as appropriated funds become available, the comptroller shall make additional payments to a certified educational assistance organization for each participating child served by the organization to the extent necessary to ensure payments for that program year equal the total annual amount calculated under subsection (b) of this section for that child. The organization shall immediately deposit the amount received for each child under this subsection into the account established for that child.(f) A certified educational assistance organization shall not make any amount available to a child's program account prior to:(1) verifying that the child remains eligible for the program under Education Code, §29.355; and(2) confirming enrollment at an approved education service provider that is a private school or a private provider of a prekindergarten or kindergarten program, if applicable.(g) Program participants shall purchase approved education-related expenses for a participating child using a comptroller-approved payment system accessible through the program's Internet website. To the extent a purchase request is verified to be for an approved education-related expense from a provider in good standing for a participating child in good standing and the total amount of the purchase does not exceed the child's account balance, the certified educational assistance organization serving the child shall approve the purchase and deduct the total amount of the purchase from the child's account. (h) An approved education service provider or vendor of educational products or services shall refund to the certified educational assistance organization any payment received for services that are not provided in full or for products that are returned for a refund. Any refund received by the program from a provider or vendor shall be deposited into the account of the participating child to be available for future purchases of approved education-related expenses. (i) Money remaining in a participating child's account at the end of a program year shall be carried forward to the next program year, provided:(1) the child remains eligible for the program under Education Code, §29.355;(2) the participating parent has provided notice under Education Code, §29.356(i)(1), that the child will continue participation in the program for the next program year; and(3) the program participant has not been declared ineligible for participation in the program under Education Code, §29.364.(j) On the date a participating child is no longer eligible to participate in the program and any pending payments for approved education-related expenses have been completed, the certified educational assistance organization responsible for the participating child's account shall close the account and any money remaining in the account shall be returned to the comptroller for deposit into the program fund for purposes of the program.",
            "sourceNote": "Source Note: The provisions of this §16.407 adopted to be\r\neffective December 15, 2025, 50 TexReg 8046."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=226999&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "226999",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "E",
                "label": "EDUCATION SAVINGS ACCOUNT PROGRAM"
            },
            "rule": {
                "number": "§16.408",
                "label": "Program Participant, Provider, and Vendor Autonomy"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227000&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227000",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An education service provider or vendor of educational products or services that receives money distributed under the program is not a recipient of federal financial assistance on the basis of receiving that money, and may not be considered to be a state actor on the basis of receiving that money.(b) state agency or state official may not adopt a rule or take other governmental action related to the program and a certified educational assistance organization may not take action that:(1) limits or imposes requirements that are contrary to the religious or institutional values or practices of an education service provider, vendor of educational products or services, or program participant; or(2) limits an education service provider, vendor of educational products or services, or program participant from freely:(A) determining the methods or curriculum to educate students;(B) determining admissions and enrollment practices, policies, and standards;(C) modifying or refusing to modify the provider's, vendor's, or participant's religious or institutional values or practices, operations, conduct, policies, standards, assessments, or employment practices based on the provider's, vendor's, or participant's religious values or practices; or(D) exercising the provider's, vendor's, or participant's religious or institutional practices as the provider, vendor, or participant determines.",
            "sourceNote": "Source Note: The provisions of this §16.408 adopted\r\nto be effective December 15, 2025, 50 TexReg 8046."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227000&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227000",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "E",
                "label": "EDUCATION SAVINGS ACCOUNT PROGRAM"
            },
            "rule": {
                "number": "§16.409",
                "label": "Appeals"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227001&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227001",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The participating parent of a participating child may appeal decisions made by the program related to that child.(b) The participating parent must provide the comptroller written notice of appeal under subsection (a) of this section by email or at the physical address for such appeals listed on the program's Internet website within 30 calendar days of the date of the notice of decision to be appealed. (c) The notice of appeal under subsection (b) of this section must be in a comptroller approved format and must include:(1) the name of the participating child;(2) a brief statement of the facts; and(3) the basis for overturning the decision.(d) The comptroller may request additional information if needed, and shall respond to the notice of appeal within 30 calendar days after the date the notice and any additional requested information was received by the comptroller with a final decision explaining the basis for the decision. An appeal under this section is not a contested case and a decision of the comptroller under this section is final and not subject to further appeal.",
            "sourceNote": "Source Note: The provisions of this §16.409 adopted to be\r\neffective December 15, 2025, 50 TexReg 8046."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227001&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227001",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "16",
                "label": "COMPTROLLER GRANT PROGRAMS"
            },
            "subchapter": {
                "number": "E",
                "label": "EDUCATION SAVINGS ACCOUNT PROGRAM"
            },
            "rule": {
                "number": "§16.410",
                "label": "Notice"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=87187&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "87187",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as otherwise provided in this subchapter, any notice to a program participant required under this subchapter may be provided electronically to the email address provided by the program participant. If notice cannot be sent electronically, the comptroller or certified educational assistance organization shall provide notice by regular United States mail to the mailing address on file for the program participant. It is the responsibility of the participant to maintain up-to-date contact information with the program.(b) Service of notice required under this subchapter by the comptroller or certified educational assistance organization to a program participant, education service provider, or vendor of educational products or services is deemed complete and received upon:(1) the date the notice is sent, if sent by email before 5:00 p.m. Central Standard Time;(2) the date after the notice is sent, if sent by email after 5:00 p.m. Central Standard Time; or(3) three business days after the date it is postmarked, if sent by regular United States mail.",
            "sourceNote": "Source Note: The provisions of this §16.410 adopted\r\nto be effective December 15, 2025, 50 TexReg 8046."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=87187&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "87187",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "17",
                "label": "PAYMENT OF FEES, TAXES, AND OTHER CHARGES TO STATE AGENCIES BY CREDIT, CHARGE, AND DEBIT CARDS"
            },
            "rule": {
                "number": "§17.1",
                "label": "Intent, Purpose, and Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=87188&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "87188",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Intent. The comptroller has been granted authority by Government Code, §403.023(a)(1), to authorize a state agency to accept credit, charge and debit cards for the payment of fees, taxes and other charges assessed by the state agency if the comptroller determines that the best interest of the state will be promoted.(b) Purpose.(1) The purpose of these rules is to provide a uniform procedure through which the comptroller may authorize a state agency to accept credit, charge and debit cards for the payment of fees, taxes and other charges assessed by the state agency.(2) These rules do not apply to a particular state agency's authority to accept credit, charge and debit cards if:(A) another law specifically authorizes, requires, prohibits, or otherwise regulates the acceptance of credit, charge and debit cards;(B) acceptance of credit or charge cards would affect a contract that the state agency has entered into that is in effect on September 1, 1993; or(C) acceptance of charge or debit cards would affect a contract that the state agency has entered into that is in effect on September 1, 1999.(3) The comptroller may authorize a state agency to contract directly with vendors or with the comptroller. A state agency may not contract directly with vendors without prior approval of the comptroller.(4) The comptroller will act as an information resource to state agencies authorized by the comptroller to accept credit, charge and debit cards.(c) Definitions. The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Chargeback--The return of a transaction when a consumer, bank, or vendor determines that a transaction is not valid resulting in the vendor's debit of the comptroller's designated account for the amount in question.(2) Coding block--The state agency's USAS information that will be submitted with each transaction. This information should consist of a transaction code, fund number, program cost account and comptroller object or state agency object.(3) Merchant number--The unique identification number(s) assigned by the vendor to each state agency or each state agency location, if requested by the state agency.(4) State agency--The meaning assigned by Government Code, §403.023(e).(5) State treasury--The meaning assigned by Government Code, §404.001(8).(6) USAS--The state's uniform statewide accounting system.(7) Vendor--A company or financial institution that provides a variety of merchant services including credit, charge and debit card billing, reporting, customer service, authorization and settlement services.",
            "sourceNote": "Source Note: The provisions of this §17.1 adopted to be effective June 11, 2001, 26 TexReg 4214."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=87188&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "87188",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "17",
                "label": "PAYMENT OF FEES, TAXES, AND OTHER CHARGES TO STATE AGENCIES BY CREDIT, CHARGE, AND DEBIT CARDS"
            },
            "rule": {
                "number": "§17.2",
                "label": "Agency Contracts with Vendors or the Comptroller"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=87189&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "87189",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Administration by comptroller. A state agency interested in accepting credit, charge, and debit cards will contact the comptroller's office. The comptroller's office will determine whether it is in the best interest of the state for the state agency to accept credit, charge, and debit cards and whether the state agency should contract with the comptroller or with a selected vendor. The comptroller will contract with selected vendors to provide credit, charge, and debit card services to state agencies that contract with the comptroller.(b) State agency contracts with comptroller. A state agency will enter into an interagency contract with the comptroller to obtain access to the services provided by selected vendors pursuant to terms established by the comptroller in the interagency contract.(c) State agency contracts with vendors. In lieu of contracting with the comptroller, a state agency, with the comptroller's approval, may directly contract with vendors, provided the criteria in paragraphs (1)-(8) of this subsection are met.(1) The state agency shall provide the comptroller's office with a draft copy of its Request for Proposal prior to issuance and a draft copy of its vendor contract prior to execution. The comptroller shall review the drafts for compliance with these rules, state law, and other comptroller processes relevant to the deposit of funds into the state treasury. The comptroller will notify the state agency whether the drafts are accepted or rejected.(2) The state agency will provide the comptroller's office with the merchant numbers assigned and the USAS coding block information at least two weeks prior to the acceptance of the first credit, charge, or debit card transaction.(3) The state agency must provide in its contract with the vendor that the vendor will credit the comptroller's designated bank account for the total amount of credit, charge, and debit card sales, less any credits issued. The comptroller will enter the deposit into USAS, crediting the appropriate coding block on the same day the vendor credits the comptroller's designated bank account.(4) In order to insure the accuracy of information and credit, charge, and debit card payments transmitted to the comptroller by state agencies, the comptroller shall determine the method by which the information and credit, charge, and debit card payments will be transmitted by state agencies.(5) The state agency's contract with the vendor must further provide that:(A) the vendor shall debit the comptroller's designated account for chargebacks;(B) the state agency will have sole responsibility for resolving chargebacks; and(C) the vendor may debit the comptroller's designated account for the fees or the vendor may invoice the state agency directly for the fees.(6) The state agency shall be responsible for reviewing the fees for validity. The comptroller will enter the fee charges into USAS.(7) The state agency will have sole responsibility for the security of the information captured in each transaction.(8) The state agency will ensure that the vendor:(A) makes funds available on a timeframe that is equal to or better than what is provided in the comptroller's contract with selected vendors; and(B) complies with state law and all comptroller policies with respect to deposits into the state treasury.(d) Subject to any contracts between the state agency and any vendors or subject to any interagency contracts between the state agency and the comptroller, a state agency that accepts a credit, charge, or debit card for the payment of fees, taxes, or other charges may assess a processing fee for the payment of such fees, taxes, or other charges.",
            "sourceNote": "Source Note: The provisions of this §17.2 adopted to be effective June 11, 2001, 26 TexReg 4214."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=87189&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "87189",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "17",
                "label": "PAYMENT OF FEES, TAXES, AND OTHER CHARGES TO STATE AGENCIES BY CREDIT, CHARGE, AND DEBIT CARDS"
            },
            "rule": {
                "number": "§17.3",
                "label": "Agency Non-Compliance"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=181561&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "181561",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The comptroller may suspend or terminate a state agency's authority to accept payments by credit, charge and debit card if the comptroller determines that the state agency or an officer or employee of the state agency has violated this chapter or Government Code, §403.023.",
            "sourceNote": "Source Note: The provisions of this §17.3 adopted to be effective June 11, 2001, 26 TexReg 4214."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=181561&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "181561",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "18",
                "label": "TOBACCO SETTLEMENT PERMANENT TRUST ACCOUNT"
            },
            "rule": {
                "number": "§18.1",
                "label": "Purpose and Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=181562&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "181562",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Purpose. The comptroller is required by Government Code, §403.1041, to administer the Tobacco Settlement Permanent Trust Account (trust account) and manage the assets of the trust account with the advice of and in consultation with the Tobacco Settlement Permanent Trust Account Investment Advisory Committee (investment advisory committee). The comptroller is also required to adopt rules necessary to implement the comptroller's duties under Government Code, §403.1041, including rules distinguishing the net earnings of the trust account that may be distributed from earnings used for investment expenses and from the money and assets that are the corpus of the trust account. A rule adopted by the comptroller under this subsection must be submitted to the investment advisory committee and may not become effective before the investment advisory committee approves the rule. If the investment advisory committee disapproves a proposed rule, the investment advisory committee is required to provide the comptroller the specific reasons that the rule was disapproved.(b) Definitions. The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Actual distribution amount--The amount determined pursuant to §18.2 of this title (relating to Trust Account Distributions).(2) Adjusted current earnings--Current earnings less investment expenses.(3) Average market value of the trust account--Calculated using the most recent twenty (20) calendar quarter end market values.(4) Corpus--The cumulative value of all contributions to the trust account.(5) Current earnings--The sum of interest and dividend income, income from real estate and private equity investments, and total returns produced by investments designated by the governing investment policy as substitutes for fixed income earned by the trust account during the calendar year.(6) Investment advisory committee--The Tobacco Settlement Permanent Trust Account Investment Advisory Committee as defined by Government Code, §403.1041.(7) Investment expenses--Investment related expenses, not to exceed amounts established by the Texas Legislature, including, but not limited to, custodial fees, and fees for investment management, administration, investment consultants, or auditors.(8) Investment Policy Statement--The Investment Policy Statement - Texas Endowment Funds adopted by the Comptroller of Public Accounts for endowments managed by the Texas Treasury Safekeeping Trust Company.(9) Net earnings--All appreciation and income generated by the trust account.(10) Political subdivision--The meaning assigned by Government Code, §403.1041.(11) Trust account--The Tobacco Settlement Permanent Trust Account as defined by Government Code, §403.1041.",
            "sourceNote": "Source Note: The provisions of this §18.1 adopted to be effective November 16, 2000, 25 TexReg 11292; amended to be effective March 27, 2003, 28 TexReg 2618; amended to be effective March 6, 2006, 31 TexReg 1454; amended to be effective December 21, 2016, 41 TexReg 9939."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=181562&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "181562",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "18",
                "label": "TOBACCO SETTLEMENT PERMANENT TRUST ACCOUNT"
            },
            "rule": {
                "number": "§18.2",
                "label": "Trust Account Distributions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=123601&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "123601",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The trust account shall balance the present needs and interests of the political subdivisions with those of the future. The trust account distribution objectives shall be to:(1) provide a predictable, stable stream of distributions over time;(2) ensure that the inflation-adjusted value of distributions is maintained over the long-term; and(3) ensure that the inflation-adjusted value of the corpus after distributions is maintained over the long-term.(b) Subject to subsection (c) of this section, the actual distribution amount shall be determined as set forth in the Investment Policy Statement.(c) If the calendar year-end market value of the trust account is equal to or less than the corpus value, the actual distribution amount shall be limited to no more than adjusted current earnings.",
            "sourceNote": "Source Note: The provisions of this §18.2 adopted to be effective November 16, 2000, 25 TexReg 11292; amended to be effective March 27, 2003, 28 TexReg 2618; amended to be effective March 6, 2006, 31 TexReg 1454; amended to be effective March 24, 2011, 36 TexReg 1827; amended to be effective December 21, 2016, 41 TexReg 9939."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=123601&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "123601",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "18",
                "label": "TOBACCO SETTLEMENT PERMANENT TRUST ACCOUNT"
            },
            "rule": {
                "number": "§18.3",
                "label": "Annual Meeting of Investment Advisory Committee"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=123602&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "123602",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "An annual meeting of the investment advisory committee shall be held on or before April 1st of each calendar year. The comptroller shall report to the investment advisory committee the performance of the trust account for the preceding calendar year. The investment advisory committee shall adopt the actual distribution amount to be used by the comptroller to make the distributions from the trust account to the political subdivisions and to the distribution stabilization account.",
            "sourceNote": "Source Note: The provisions of this §18.3 adopted to be effective November 16, 2000, 25 TexReg 11292; amended to be effective March 27, 2003, 28 TexReg 2618; amended to be effective March 6, 2006, 31 TexReg 1454."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=123602&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "123602",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "18",
                "label": "TOBACCO SETTLEMENT PERMANENT TRUST ACCOUNT"
            },
            "rule": {
                "number": "§18.4",
                "label": "Other Meetings of the Investment Advisory Committee"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=101199&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "101199",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Meetings of the investment advisory committee may be called by the chair of such committee, or by the comptroller or the comptroller's designee.",
            "sourceNote": "Source Note: The provisions of this §18.4 adopted to be effective November 16, 2000, 25 TexReg 11292; amended to be effective March 27, 2003, 28 TexReg 2618; amended to be effective March 6, 2006, 31 TexReg 1454."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=101199&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "101199",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "18",
                "label": "TOBACCO SETTLEMENT PERMANENT TRUST ACCOUNT"
            },
            "rule": {
                "number": "§18.5",
                "label": "Annual Distributions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=101200&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "101200",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Distributions from the trust account to the beneficiaries shall be made annually as soon as practicable after the Texas Department of Health makes the certification to the comptroller required under Health & Safety Code, Chapter 12, Subchapter J, including the percentage of each annual distribution to be paid to each political subdivision.",
            "sourceNote": "Source Note: The provisions of this §18.5 adopted to be effective November 16, 2000, 25 TexReg 11292; amended to be effective March 27, 2003, 28 TexReg 2618."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=101200&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "101200",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "18",
                "label": "TOBACCO SETTLEMENT PERMANENT TRUST ACCOUNT"
            },
            "rule": {
                "number": "§18.6",
                "label": "Administration and Management of the Trust Account"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=101201&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "101201",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The comptroller's administration of the trust account and management of the assets of the trust account, including revisions to the comptroller's investment policy statement, shall be with the advice of and in consultation with the investment advisory committee.",
            "sourceNote": "Source Note: The provisions of this §18.6 adopted to be effective November 16, 2000, 25 TexReg 11292; amended to be effective March 27, 2003, 28 TexReg 2618."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=101201&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "101201",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "18",
                "label": "TOBACCO SETTLEMENT PERMANENT TRUST ACCOUNT"
            },
            "rule": {
                "number": "§18.7",
                "label": "Compliance Audits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=101202&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "101202",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The investment advisory committee shall order an annual audit of compliance with these rules and the investment policy statement.",
            "sourceNote": "Source Note: The provisions of this §18.7 adopted to be effective November 16, 2000, 25 TexReg 11292; amended to be effective March 27, 2003, 28 TexReg 2618."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=101202&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "101202",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "18",
                "label": "TOBACCO SETTLEMENT PERMANENT TRUST ACCOUNT"
            },
            "rule": {
                "number": "§18.8",
                "label": "Annual Review"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95972&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "95972",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The rules under Texas Administrative Code, Title 34, Part 1, Chapter 18, shall be reviewed annually by the comptroller.",
            "sourceNote": "Source Note: The provisions of this §18.8 adopted to be effective November 16, 2000, 25 TexReg 11292; amended to be effective March 27, 2003, 28 TexReg 2618."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95972&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "95972",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "19",
                "label": "STATE ENERGY CONSERVATION OFFICE"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL PROVISIONS"
            },
            "rule": {
                "number": "§19.1",
                "label": "Purpose of the State Energy Conservation Office"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177183&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "177183",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The State Energy Conservation Office (SECO) is the designated successor to the Energy Management Center that was originally established in 1987 in the governor's office and reestablished in 1995 in the General Services Commission. SECO is now under the direction and control of the comptroller. Pursuant to Government Code, Chapter 447, SECO was created to develop and provide energy and water conservation information for the state and to implement energy and water conservation programs that apply to state buildings and facilities. Pursuant to Government Code, Chapter 2305, SECO was created to manage the programs that relate to the Oil Overcharge Restitutionary Act.",
            "sourceNote": "Source Note: The provisions of this §19.1 adopted to be effective August 13, 2002, 27 TexReg 7167."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177183&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "177183",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "19",
                "label": "STATE ENERGY CONSERVATION OFFICE"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL PROVISIONS"
            },
            "rule": {
                "number": "§19.2",
                "label": "State Energy Conservation Office Business Location and Mailing Address"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95974&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "95974",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The business office of the State Energy Conservation Office (SECO) is located at Lyndon Baines Johnson (LBJ) State Office Building, 111 E. 17th Street, Austin, Texas 78774. The mailing address for SECO is: State Energy Conservation Office, Comptroller of Public Accounts, P.O. Box 13528, Austin, Texas 78711-3528.",
            "sourceNote": "Source Note: The provisions of this §19.2 adopted to be effective August 13, 2002, 27 TexReg 7167; amended to be effective April 7, 2016, 41 TexReg 2493."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=95974&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "95974",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "19",
                "label": "STATE ENERGY CONSERVATION OFFICE"
            },
            "subchapter": {
                "number": "B",
                "label": "STATE FACILITY ENERGY AND WATER MANAGEMENT"
            },
            "rule": {
                "number": "§19.11",
                "label": "Purpose of Rules"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177184&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "177184",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The purpose of the rules that pertain to state facility energy and water management is to achieve all measurable cost effective utility and related operational efficiency improvements, and to reduce unnecessary consumption of natural resources by state agencies and institutions of higher education.",
            "sourceNote": "Source Note: The provisions of this §19.11 adopted to be effective August 13, 2002, 27 TexReg 7168."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177184&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "177184",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "19",
                "label": "STATE ENERGY CONSERVATION OFFICE"
            },
            "subchapter": {
                "number": "B",
                "label": "STATE FACILITY ENERGY AND WATER MANAGEMENT"
            },
            "rule": {
                "number": "§19.12",
                "label": "Application"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177185&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "177185",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) These rules apply to all state agencies and institutions of higher education.(b) Providing agency reporting requirements. A state agency or institution of higher education that occupies or manages a state-owned building and is responsible for the provision of utilities shall:(1) have the primary responsibility for development and implementation of an Energy and Water Management Plan;(2) develop a Long Range Utility Services Plan; and(3) report utility consumption data to SECO.(c) Tenant agency reporting requirements. A state agency or institution of higher education that occupies a building managed by another party and is not responsible for building renovation projects shall:(1) develop an Energy and Water Management Plan;(2) if the tenant agency occupies space of a providing agency, provide assistance in developing the Energy and Water Management Plan of the providing agency; and(3) if the tenant agency has access to utility consumption data, report the utility consumption data to SECO.",
            "sourceNote": "Source Note: The provisions of this §19.12 adopted to be effective August 13, 2002, 27 TexReg 7168; amended to be effective April 7, 2016, 41 TexReg 2494."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177185&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "177185",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "19",
                "label": "STATE ENERGY CONSERVATION OFFICE"
            },
            "subchapter": {
                "number": "B",
                "label": "STATE FACILITY ENERGY AND WATER MANAGEMENT"
            },
            "rule": {
                "number": "§19.13",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177186&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "177186",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this chapter shall have the following meanings, unless the context clearly indicates otherwise.(1) Energy and Water Management Plan--A comprehensive plan prepared by a state agency or institution of higher education that includes a progress report of utility energy and water use reduction measures, goals for reducing utility consumption, a strategy and implementation schedule, a description of methods of financing improvements, and an employee awareness plan.(2) Institution of higher education--Has the meaning that is assigned by Education Code, §61.003.(3) Long Range Utility Services Plan--A long range plan for the delivery of reliable, cost-effective utility services for a state agency or institution of higher education, including any on-site generation, energy storage or demand response.(4) Providing agency--A state agency or institution of higher education that occupies or manages a state-owned building and is responsible for paying utility bills.(5) SECO--The Comptroller of Public Accounts State Energy Conservation Office or legally designated successor.(6) State agency--Any department, commission, board, office, or other agency in the executive, judicial, or legislative branch of state government that exists under the constitution or a statute of this state and that has authority that is not limited to a geographical portion of the state.(7) Tenant agency--A state agency or institution of higher education that occupies a building managed by another party and is not responsible for building renovation projects. A tenant agency may or may not be responsible for directly paying utility bills.(8) Utility--Electricity, gas, thermal, or other energy resource, water, and wastewater.(9) Utility consumption data--The measured amount of the agency's or institution's water, electricity, gasoline, or natural gas usage.",
            "sourceNote": "Source Note: The provisions of this §19.13 adopted to be effective August 13, 2002, 27 TexReg 7168; amended to be effective April 7, 2016, 41 TexReg 2494."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177186&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "177186",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "19",
                "label": "STATE ENERGY CONSERVATION OFFICE"
            },
            "subchapter": {
                "number": "B",
                "label": "STATE FACILITY ENERGY AND WATER MANAGEMENT"
            },
            "rule": {
                "number": "§19.14",
                "label": "Energy and Water Management Plan"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177187&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "177187",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Requirements. The head of a state agency or an institution of higher education shall prepare an Energy and Water Management Plan and submit the plan to SECO.(b) Guidelines. The Energy and Water Management Plan shall be prepared in accordance with the guidelines located on the SECO website, which are herein adopted by reference.(c) Submission. The Energy and Water Management Plan shall be updated and submitted by October 31 of each year to SECO.Reporting@cpa.texas.gov.(d) Implementation. A state agency or institution of higher education shall implement the cost effective utility conservation measures in accordance with the timelines and recommendations that are contained in the agency's or institution's Energy and Water Management Plan. To the extent feasible, utility and utility-related operational improvements that are made to each building or facility shall be implemented through comprehensive projects.",
            "sourceNote": "Source Note: The provisions of this §19.14 adopted to be effective August 13, 2002, 27 TexReg 7168; amended to be effective April 7, 2016, 41 TexReg 2494."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177187&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "177187",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "19",
                "label": "STATE ENERGY CONSERVATION OFFICE"
            },
            "subchapter": {
                "number": "B",
                "label": "STATE FACILITY ENERGY AND WATER MANAGEMENT"
            },
            "rule": {
                "number": "§19.16",
                "label": "Long Range Utility Services Plan"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177188&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "177188",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Requirement. A state agency or institution of higher education that purchases utilities shall prepare a long range plan for the delivery of reliable, cost-effective utility services for the agency or institution.(b) Guidelines. SECO shall post guidelines for the Long Range Utility Services Plan on its website.(c) Frequency. The agency or institution shall update the Long Range Utility Services Plan at least every five years to support five-year construction and major renovation planning.(d) Posting/Submission. The plan shall be:(1) posted on a publicly available website; and(2) submitted to SECO upon request.",
            "sourceNote": "Source Note: The provisions of this §19.16 adopted to be effective August 13, 2002, 27 TexReg 7168; amended to be effective April 7, 2016, 41 TexReg 2494."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177188&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "177188",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "19",
                "label": "STATE ENERGY CONSERVATION OFFICE"
            },
            "subchapter": {
                "number": "B",
                "label": "STATE FACILITY ENERGY AND WATER MANAGEMENT"
            },
            "rule": {
                "number": "§19.17",
                "label": "Utility Consumption Data Reporting"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177189&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "177189",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Requirement. Each state agency or institution of higher education shall submit utility consumption data to SECO.(b) Guidelines. SECO shall post guidelines for the submission of utility consumption data on its website.(c) Frequency. Utility consumption data shall be submitted no later than October 31 of each year.",
            "sourceNote": "Source Note: The provisions of this §19.17 adopted to be effective August 13, 2002, 27 TexReg 7168; amended to be effective April 7, 2016, 41 TexReg 2494."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177189&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "177189",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "19",
                "label": "STATE ENERGY CONSERVATION OFFICE"
            },
            "subchapter": {
                "number": "C",
                "label": "ENERGY CONSERVATION DESIGN STANDARDS"
            },
            "rule": {
                "number": "§19.31",
                "label": "Requirement to Use Design Standards"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200454&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "200454",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Pursuant to Government Code, §447.004, state agencies and institutions of higher education shall use the energy and water conservation design standards that SECO has adopted under this chapter, when constructing new state buildings or conducting major renovations of existing state buildings.",
            "sourceNote": "Source Note: The provisions of this §19.31 adopted to be effective August 13, 2002, 27 TexReg 7174; amended to be effective September 28, 2011, 36 TexReg 6303; amended to be effective April 7, 2016, 41 TexReg 2495."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200454&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "200454",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "19",
                "label": "STATE ENERGY CONSERVATION OFFICE"
            },
            "subchapter": {
                "number": "C",
                "label": "ENERGY CONSERVATION DESIGN STANDARDS"
            },
            "rule": {
                "number": "§19.32",
                "label": "Energy and Water Conservation Design Standards"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177191&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "177191",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) SECO adopts by reference the following minimum energy standards for state agencies and institutions of higher education:(1) for any new construction or major renovation project, except low-rise residential buildings, with a design assignment made on or after January 1, 2021, the energy conservation design standard of the American National Standards Institute (ANSI)/American Society of Heating, Refrigerating and Air Conditioning Engineers (ASHRAE)/Illuminating Engineering Society (IES) Standard 90.1-2016 Energy Standard for Buildings Except Low-Rise Residential Buildings, and any errata sheet for 90.1-2016 that is published by the ASHRAE Standards Committee or the 2018 International Energy Conservation Code (IECC) as published by the International Code Council (ICC), provided however the following buildings or structures are exempt from compliance with this section:(A) a building or structure that is listed in the State or National Register of Historic Places;(B) a building or structure that is designated as a historic property under local or state designation law or survey;(C) a building or structure that is certified as a contributing resource with a National Register listed or locally designated historic district; or(D) with an opinion or certification by the State Historic Preservation Officer or Keeper of the National Register of Historic Places, a building or structure that is eligible to be listed on the National or State Registers of Historic Places either individually or as a contributing building to a historic district;(2) for any new construction or major renovation project of a low-rise residential building with a design assignment made on or after January 1, 2021, the residential chapter of the 2018 International Energy Conservation Code as published by the International Code Council.(b) Effective January 1, 2021, SECO adopts by reference the \"Water Conservation Design Standards for State Buildings and Institutions of Higher Education Facilities\" prepared by SECO, dated April 2020, as the water conservation design standards for any new construction or major renovation project.",
            "sourceNote": "Source Note: The provisions of this §19.32 adopted to be effective August 13, 2002, 27 TexReg 7174; amended to be effective September 28, 2011, 36 TexReg 6303; amended to be effective April 7, 2016, 41 TexReg 2495; amended to be effective July 20, 2020, 45 TexReg 5013."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177191&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "177191",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "19",
                "label": "STATE ENERGY CONSERVATION OFFICE"
            },
            "subchapter": {
                "number": "C",
                "label": "ENERGY CONSERVATION DESIGN STANDARDS"
            },
            "rule": {
                "number": "§19.33",
                "label": "Major Renovation Projects"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177192&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "177192",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "For the purposes of this subchapter, a major renovation project is a building renovation or improvement where the implementation cost associated with energy or water efficiency improvements is $2 million or more, based on the initial engineering cost estimate.",
            "sourceNote": "Source Note: The provisions of this §19.33 adopted to be effective August 13, 2002, 27 TexReg 7174; amended to be effective September 28, 2011, 36 TexReg 6303; amended to be effective April 7, 2016, 41 TexReg 2495."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177192&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "177192",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "19",
                "label": "STATE ENERGY CONSERVATION OFFICE"
            },
            "subchapter": {
                "number": "C",
                "label": "ENERGY CONSERVATION DESIGN STANDARDS"
            },
            "rule": {
                "number": "§19.34",
                "label": "Submission of Certification and Compliance Documentation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177193&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "177193",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Before beginning construction of a new state building or a major renovation project including a new building or major renovation project of a state-supported institution of higher education, a state agency or an institution of higher education shall submit to SECO a copy of the certification by the design architect or engineer that verifies to the agency or institution that the construction or renovation complies with the standards that are established under this chapter, including engineering documentation. The certification must be completed using the certification form located on the SECO website, which is herein adopted by reference.",
            "sourceNote": "Source Note: The provisions of this §19.34 adopted to be effective August 13, 2002, 27 TexReg 7174; amended to be effective September 28, 2011, 36 TexReg 6303; amended to be effective April 7, 2016, 41 TexReg 2495."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177193&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "177193",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "19",
                "label": "STATE ENERGY CONSERVATION OFFICE"
            },
            "subchapter": {
                "number": "D",
                "label": "LOAN PROGRAM FOR ENERGY RETROFITS"
            },
            "rule": {
                "number": "§19.41",
                "label": "Description of Program"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177194&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "177194",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Under Government Code, §2305.032, SECO administers a revolving loan program that provides loans to eligible applicants for energy and water efficiency measures. The loan program is called the Texas LoanSTAR (Saving Taxes and Resources) Program for Public Sector Institutions.",
            "sourceNote": "Source Note: The provisions of this §19.41 adopted to be effective August 13, 2002, 27 TexReg 7175; amended to be effective April 7, 2016, 41 TexReg 2497."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177194&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "177194",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "19",
                "label": "STATE ENERGY CONSERVATION OFFICE"
            },
            "subchapter": {
                "number": "D",
                "label": "LOAN PROGRAM FOR ENERGY RETROFITS"
            },
            "rule": {
                "number": "§19.42",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177195&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "177195",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Building--A structure and its associated site where energy or water consumption takes place.(2) Estimated simple payback period--The estimated number of years necessary for the savings from the utility cost reduction measure (UCRM) improvements to equal the cost of installing the improvements. The formula used in this determination is the total estimated UCRM costs (including audit, metering, installation, equipment, and engineering design, but excluding interest) divided by the annual estimated utility cost savings. For Energy Savings Performance Contracts only, the formula used in this determination is the total estimated UCRM costs (including audit, metering, installation, equipment, engineering design, and interest) divided by the annual estimated utility cost savings.(3) Facility--Any major energy or water using group of buildings in geographic proximity to each other or a major energy or water using system that one or more public sector institutions own and occupy.(4) Interest rate--The percentage of the loan amount charged on an annual basis by SECO to a borrower for the use of the LoanSTAR program proceeds.(5) Loan agreement--The written agreement between an applicant and SECO that details all terms and requirements under which the loan is issued, including the intended use of the loan proceeds.(6) LoanSTAR Program--The state Revolving Loan Program that SECO administers and which funds Utility Cost Reduction Projects. The program is comprised of five elements: energy and water audits, energy and water efficiency retrofits or enhancements, a revolving loan financing mechanism, program monitoring, and evaluation.(7) Project cost--All costs that SECO determines to be directly related to the identification, design, implementation, metering, and monitoring of UCRM.(8) Public sector institution--Any state agency; community college; institution of higher education as defined in Education Code, §61.003; unit of local government including a county, city, town, or public hospital; a public school; or political subdivision of the state.(9) Utility Assessment Report (UAR)--A technical report which identifies and documents energy, water, and other cost saving measures. This report must be submitted to SECO by potential LoanSTAR borrowers for financing approval. The UAR is prepared by a State of Texas licensed professional engineer.(10) Utility Cost Reduction Measure (UCRM)--A commercially available energy efficient device, technique, or technology that is designed to reduce energy consumption, peak energy demand, water consumption or utility costs at an existing facility that a public sector institution owns and occupies, and that is permanently affixed to the building or is permanently installed on the site. Retrofit measures that result from renewable energy resources are eligible UCRMs.(11) Utility Cost Reduction Project--The identification, design, installation, monitoring, and evaluation of one or more energy and water efficient measures that are designed to reduce energy consumption, peak energy demand, water consumption, or utility cost.",
            "sourceNote": "Source Note: The provisions of this §19.42 adopted to be effective August 13, 2002, 27 TexReg 7175; amended to be effective March 11, 2010, 35 TexReg 2017; amended to be effective April 7, 2016, 41 TexReg 2497."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177195&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "177195",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "19",
                "label": "STATE ENERGY CONSERVATION OFFICE"
            },
            "subchapter": {
                "number": "D",
                "label": "LOAN PROGRAM FOR ENERGY RETROFITS"
            },
            "rule": {
                "number": "§19.43",
                "label": "Eligibility"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177196&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "177196",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Utility Cost Reduction Projects that loan candidates propose must comply with the following program and eligibility requirements.(1) Loan candidates must own and occupy the buildings where the proposed projects will take place.(2) Eligible projects may include one or more of the following Utility Cost Reduction Measures:(A) indoor and outdoor lighting projects;(B) heating, ventilation, and air conditioning equipment (HVAC);(C) electrical distribution equipment;(D) building shell improvements;(E) energy management systems;(F) energy recovery systems, including systems that generate electricity on-site;(G) alternate/renewable energy systems;(H) load management devices;(I) water systems and waste water systems energy conservation measures;(J) geothermal equipment;(K) indoor and outdoor water conservation projects;(L) commissioning; and(M) other cost-effective energy efficiency or water conservation enhancements, demand, or rate-based measures that the LoanSTAR Program has approved.(3) Eligible Utility Cost Reduction Measures must:(A) be permanently affixed to the building or permanently installed on the site;(B) have a demonstrated track record of cost-effectiveness;(C) be commercially available. Experimental or research-related technologies that are not commercially available are ineligible; and(D) be recommended in a Utility Assessment Report that is prepared by a State of Texas licensed professional engineer.",
            "sourceNote": "Source Note: The provisions of this §19.43 adopted to be effective August 13, 2002, 27 TexReg 7175; amended to be effective April 7, 2016, 41 TexReg 2497."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177196&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "177196",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "19",
                "label": "STATE ENERGY CONSERVATION OFFICE"
            },
            "subchapter": {
                "number": "D",
                "label": "LOAN PROGRAM FOR ENERGY RETROFITS"
            },
            "rule": {
                "number": "§19.44",
                "label": "Fund Availability"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177197&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "177197",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Fund Availability. From time to time, SECO may publish a Notice of Loan Fund Availability (NOLFA) regarding the availability of LoanSTAR loans under this subchapter. The notice shall be published in the Texas Register  or the  Electronic Business Daily,  and on the SECO website.",
            "sourceNote": "Source Note: The provisions of this §19.44 adopted to be effective August 13, 2002, 27 TexReg 7175; amended to be effective March 11, 2010, 35 TexReg 2017; amended to be effective April 7, 2016, 41 TexReg 2497."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=177197&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "177197",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "19",
                "label": "STATE ENERGY CONSERVATION OFFICE"
            },
            "subchapter": {
                "number": "D",
                "label": "LOAN PROGRAM FOR ENERGY RETROFITS"
            },
            "rule": {
                "number": "§19.45",
                "label": "Project Funding and Repayment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=134955&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "134955",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The term of the loan shall be determined by SECO based on the calculated simple payback period of the overall project from the Utility Assessment Report.(b) SECO shall set the interest rates in an amount sufficient to recover the cost of administering the program.(c) Loan payout and repayment.(1) Loan proceeds may be used to pay for the entire cost of the retrofit project, including the cost of the energy assessment report, engineering design, construction, equipment acquisition and installation, maintenance, and metering and monitoring.(2) Loan funds shall be disbursed on a reimbursement basis after the borrower provides acceptable supporting documentation that SECO requires.(3) A state agency may use general revenue funds that are appropriated for utilities to make loan payments as stipulated in Government Code, Chapter 2305.(4) The borrower shall repay the principal of and interest on the loan in accordance with the Loan Repayment Schedule that the borrower will receive upon project completion and acceptance by SECO.(5) Frequency of payments shall be no greater than quarterly, with quarterly payment dates based on the state fiscal year.(6) The borrower may repay loans early without penalty.(7) No loans will be forgiven.(d) Loan recipient responsibilities (project monitoring).(1) Loan recipients shall provide the LoanSTAR Program with the access and information that is necessary to monitor the performance of the retrofits, as stated in the loan agreement.(2) Loan recipients shall be responsible for submission of all reports that the LoanSTAR Program requests as outlined in the loan agreement.(3) Compliance with applicable local, state, and federal procurement guidelines and procedures is the responsibility of the loan recipient.(e) Title to equipment.(1) Title to all equipment that is acquired under this program will vest in the borrower, in accordance with applicable state statutes.(2) Disposition and inventory of any equipment shall be done in accordance with state statutes and regulations.",
            "sourceNote": "Source Note: The provisions of this §19.45 adopted to be effective August 13, 2002, 27 TexReg 7175; amended to be effective March 11, 2010, 35 TexReg 2017; amended to be effective April 7, 2016, 41 TexReg 2497."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=134955&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "134955",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "19",
                "label": "STATE ENERGY CONSERVATION OFFICE"
            },
            "subchapter": {
                "number": "E",
                "label": "TEXAS BUILDING ENERGY PERFORMANCE STANDARDS"
            },
            "rule": {
                "number": "§19.51",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175828&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175828",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this subchapter shall have the following meanings, unless the context clearly indicates otherwise.(1) \"Codes\" means the International Energy Conservation Code and the International Residential Code.(2) \"International Energy Conservation Code\" means the International Energy Conservation Code as developed, maintained and promulgated by the International Code Council.(3) \"International Residential Code\" means the International Residential Code for One- and Two-Family Dwellings as developed, maintained and promulgated by the International Code Council.(4) \"Laboratory\" means the Energy Systems Laboratory at the Texas Engineering Experiment Station of The Texas A&M University System.",
            "sourceNote": "Source Note: The provisions of this §19.51 adopted to be effective February 4, 2008, 33 TexReg 946."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175828&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175828",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "19",
                "label": "STATE ENERGY CONSERVATION OFFICE"
            },
            "subchapter": {
                "number": "E",
                "label": "TEXAS BUILDING ENERGY PERFORMANCE STANDARDS"
            },
            "rule": {
                "number": "§19.52",
                "label": "Public Comment on Building Energy Efficiency Performance Standards"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175829&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175829",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Pursuant to Health and Safety Code, §388.003(a), following publication of a new edition of the International Residential Code, and not more often than every six years, SECO will publish notice in the Texas Register  and on the SECO website informing interested persons that they may provide written comments to SECO regarding new editions of the Codes.(b) Pursuant to Health and Safety Code, §388.003(b), following publication of a new edition of the International Energy Conservation Code, SECO will publish notice in the Texas Register  and on the SECO website informing interested persons that they may provide written comments to SECO regarding the new editions of the Code.(c) Comments are encouraged from any interested persons, including without limitation: commercial and residential builders; architects and engineers; municipal, county, and other local government authorities; environmental groups; and manufacturers of building materials and products.(d) Comments will be accepted for a minimum of 30 days after publication of the notice in the Texas Register  or for a longer period as specified in the request for comments.(e) Written comments should be submitted to SECO's business or mailing address specified in §19.2 of this title (relating to State Energy Conservation Office Business Location and Mailing Address), or the comments may be submitted electronically to SECO's email address specified on the SECO website.(f) SECO will forward any written comments received on the Codes pursuant to this section to the Laboratory for the Laboratory to consider in developing their written findings on the stringency of the energy efficiency chapter of the International Residential Code or the International Energy Conservation Code.",
            "sourceNote": "Source Note: The provisions of this §19.52 adopted to be effective February 4, 2008, 33 TexReg 946; amended to be effective January 5, 2016, 41 TexReg 269."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175829&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175829",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "19",
                "label": "STATE ENERGY CONSERVATION OFFICE"
            },
            "subchapter": {
                "number": "E",
                "label": "TEXAS BUILDING ENERGY PERFORMANCE STANDARDS"
            },
            "rule": {
                "number": "§19.53",
                "label": "Building Energy Efficiency Performance Standards"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182489&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182489",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Single-family residential construction. Effective September 1, 2016, the energy efficiency chapter of the International Residential Code, as it existed on May 1, 2015, and as supplemented by Health and Safety Code, §388.003(i) and (j), is adopted as the energy code in this state for single-family residential construction as it is defined in Health and Safety Code, §388.002(12).(b) All other residential, commercial, and industrial construction. Effective November 1, 2016, the International Energy Conservation Code, as it existed on May 1, 2015, is adopted as the energy code for use in this state for all residential, commercial, and industrial construction that is not single-family residential construction under subsection (a) of this section.",
            "sourceNote": "Source Note: The provisions of this §19.53 adopted to be effective April 1, 2011, 35 TexReg 4727; amended to be effective January 5, 2016, 41 TexReg 269."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182489&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182489",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL PROVISIONS"
            },
            "rule": {
                "number": "§20.1",
                "label": "Interpretation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182490&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182490",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "These rules shall be construed and applied to promote its underlying purposes and policies.",
            "sourceNote": "Source Note: The provisions of this §20.1 adopted to be effective January 24, 2017, 42 TexReg 228."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182490&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182490",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL PROVISIONS"
            },
            "rule": {
                "number": "§20.2",
                "label": "Purposes and Policies"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182491&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182491",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The underlying purposes and policies of these rules are to:(1) provide confidence in the procedures followed in public procurement to the public, the legislature, state agencies and vendors;(2) provide for consistent and uniform management of procurement processes and contracts, irrespective of the procurement method used;(3) obtain in a cost-effective and responsive manner the goods and services required by state agencies in order for those agencies to better serve Texas residents and businesses;(4) provide safeguards for the maintenance of a procurement system of quality and integrity;(5) provide increased economy in Texas procurement activities and to maximize to the fullest extent practicable the purchasing value of public funds of the Texas;(6) simplify, clarify, and modernize the law governing procurement by this state; and(7) permit the continued development of procurement policies and practices.",
            "sourceNote": "Source Note: The provisions of this §20.2 adopted to be effective January 24, 2017, 42 TexReg 228."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182491&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182491",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL PROVISIONS"
            },
            "rule": {
                "number": "§20.3",
                "label": "Signed or Executed Documents"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204170&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "204170",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In this section the following terms shall have the meaning set forth herein.(1) Digital signature--A signature that:(A) is created as an electronic identifier by cryptographic means involving the use of two mathematically related keys (i.e., a public and private key pair, often referred to as Public Key Infrastructure or PKI);(B) complies with the requirements of 1 TAC Chapter 203; and(C) is not a photographic digital facsimile of a hand-made signature.(2) Electronic signature--A signature that is an image of a hand-made signature such as on a transmitted facsimile, an electronic document created by scanning the original physical document, or an electronic document (such as one created in a PDF) where a separate image of a hand-made signature has been overlaid onto the electronic document in place of a physical hand-made signature.(3) Hand-made signature (also known as a wet ink or manual signature)--A signature created when a person physically marks a paper document.(4) PDF or portable document format--A file format that provides an electronic image of text or text and graphics that looks like a printed document and can be viewed, printed, and electronically transmitted.(5) Signature--Any symbol executed or adopted by a person with present intention to authenticate a writing.(b) Whenever the comptroller requires a document to be signed or executed pursuant to these rules or a process created pursuant to these rules, the comptroller will accept:(1) hand-made signatures;(2) electronic signatures; or(3) digital signatures.(c) Hand-made signatures shall comply with the following requirements.(1) A paper document must bear the valid hand-made signature of the offeror's or contractor's authorized representative.(2) A hand-made signature is valid if the authorized representative submitting the hand-made signature is an individual who is authorized to sign the document by virtue of his or her legal status or his or her relationship to the entity on whose behalf the signature is executed.(3) The offeror or contractor agrees that the presence of a hand-made signature on a paper document submitted to the comptroller establishes that the signatory:(A) is in fact the authorized representative of the entity on whose behalf the signature has been executed and shall provide sufficient evidence to prove the authority to execute the document to the satisfaction of the comptroller if requested; and(B) intended to sign the paper document and to submit it to the comptroller to fulfill the purpose of the paper document.(d) Electronic signatures shall comply with the following requirements.(1) An electronic document must bear the valid electronic signature of the offeror's or contractor's authorized representative if that authorized representative is required to sign the paper document for which the electronic document substitutes.(2) An electronic signature on an electronic document is valid if it has been created through means such as facsimile transmittal, scanning of the original signed physical document, or electronic manipulation where a separate image of a hand-made signature has been overlaid onto the electronic document in place of a physical hand-made signature and the authorized representative submitting the electronic signature is an individual who is authorized to sign the document by virtue of his or her legal status or his or her relationship to the entity on whose behalf the signature is executed.(3) The offeror or contractor agrees that its electronic signature is the legal equivalent of the offeror's or contractor's authorized representative's hand-made signature. The presence of an electronic signature on an electronic document submitted to the comptroller establishes that the signatory:(A) is the authorized representative of the entity on whose behalf the signature has been executed and shall provide sufficient evidence to prove the authority to execute the document to the satisfaction of the comptroller if requested; and(B) intended to sign the electronic document and to submit it to the comptroller to fulfill the purpose of the electronic document.(4) The comptroller intends to follow the guidance of the Department of Information Resources as given by 1 TAC Chapter 203 unless otherwise noted in these rules.(e) Digital signatures shall comply with the following requirements.(1) When a digital signature device is used to create the offeror's or contractor's authorized representative's digital signature, the code or mechanism must be unique to that authorized representative at the time the signature is created and the authorized representative must be uniquely entitled to use it. Authorized representatives shall:(A) protect the digital signature device from compromise; and(B) report to the comptroller any evidence that the device has been compromised, within one calendar day of the discovery.(2) A digital signature device is compromised if the code or mechanism is available for use by any individual other than the authorized representative.(3) An electronic document must bear the valid digital signature of the offeror's or contractor's authorized representative if that authorized representative is required to sign the paper document for which the electronic document substitutes.(4) A digital signature on an electronic document is valid if it has been created with an electronic signature device that the identified authorized representative is uniquely entitled to use for signing that document; the device has not been compromised; and the authorized representative is an individual who is authorized to sign the document by virtue of his or her legal status or his or her relationship to the entity on whose behalf the signature is executed.(5) The offeror or contractor agrees that its digital signature is the legal equivalent of the offeror's or contractor's authorized representative's hand-made signature. The presence of a digital signature on an electronic document submitted to the comptroller establishes that the authorized representative intended to sign the electronic document and to submit it to the comptroller to fulfill the purpose of the electronic document.(6) Contractor shall use an approved provider on the list maintained by the Department of Information Resources Digital Signatures and Public Key Infrastructure (PKI) Approved Service Providers found on the DIR website.(7) The comptroller intends to follow the guidance of the Department of Information Resources as given by 1 TAC Chapter 203 unless otherwise noted in these rules.",
            "sourceNote": "Source Note: The provisions of this §20.3 adopted to be effective January 24, 2017, 42 TexReg 228."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204170&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "204170",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL PROVISIONS"
            },
            "rule": {
                "number": "§20.25",
                "label": "Definitions"
            },
            "nextRule": {
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            "ruleBody": "(a) As used throughout this chapter, words and terms defined in the State Purchasing and General Services Act, Government Code, Title 10, Subtitle D, and the Code Construction Act, Government Code, Chapter 311 shall have the same meaning as defined therein, and each word or term listed in this chapter shall have the meaning set forth herein, unless:(1) its use clearly requires a different meaning; or(2) a different definition is prescribed for a particular chapter or portion thereof.(b) The following words and terms, when used in this chapter, shall have the following meaning unless the context clearly indicates otherwise.(1) Act--The State Purchasing and General Services Act, Government Code, Title 10, Subtitle D, Chapter 2151, et seq, including any amendments thereto that may be made from time to time.(2) Advisory groups--A group that advises and assists the standards and specification program in establishing specifications. The advisory group may include representatives from federal, state and local governments, user groups, manufacturers, vendors and distributors, bidders, associations, colleges, universities, testing laboratories, and others with expertise and specialization in particular product area.(3) Agent of record--An employee or official designated by a qualified cooperative entity as the individual responsible to represent the qualified entity in all matters relating to the program.(4) Approved products list--The list is also referred to as the approved brands list or qualified products list. It is a specification developed by evaluation of brands and models of various manufacturers and listing those determined to be acceptable to meet the minimum level of quality. Testing is completed in advance of procurement to determine which products comply with the specifications and standards requirements.(5) Award--The act of accepting a bid, thereby forming a contract between the state and a bidder.(6) Bid--An offer to contract with the state, submitted in response to a bid invitation issued by the comptroller.(7) Bid deposit--A deposit required of bidders to protect the state in the event a low bidder attempts to withdraw its bid or otherwise fails to enter into a contract with the state. Acceptable forms of bid deposits are limited to: cashier's check, certified check, or irrevocable letter of credit issued by a financial institution subject to the laws of Texas and entered on the United States Department of the Treasury's listing of approved sureties; a surety or blanket bond from a company chartered or authorized to do business in Texas.(8) Bidder--An individual or entity that submits a bid. The term includes anyone acting on behalf of the individual or other entity that submits a bid, such as agents, employees, and representatives.(9) Blanket bond--A surety bond which provides assurance of a bidder's performance on two or more contracts in lieu of separate bonds for each contract. The amount for a blanket bond shall be established by the comptroller based on the bidder's annual level of participation in the state purchasing program.(10) Brand name--A trade name or product name which identifies a product as having been made by a particular manufacturer.(11) Centralized master bidders list (CMBL)--A list maintained by the comptroller containing the names and addresses of prospective bidders and catalog information systems vendors.(12) Comptroller--The Comptroller of Public Accounts of the State of Texas or the designated and authorized representative of the Comptroller of Public Accounts of the State of Texas.(13) Contract value or the value of a contract--The estimated dollar amount that a state agency may be obligated to pay pursuant to the contract and all executed and proposed amendments, extensions and renewals of the contract.(14) Contractor--A vendor that contracts to provide goods or services to the state under the Act and all successors-in-interest to that contractor.(15) Cooperative purchasing program--A program to provide purchasing services to qualified cooperative entities, as defined herein.(16) Customer choice--Customer choice as the term is defined under Utilities Code, §31.002(4).(17) Debarment--An exclusion from contracting or subcontracting with state agencies on the basis of any cause set forth in the Act or these rules, commensurate with the seriousness of the offense, performance failure, or inadequacy to perform.(18) Director--The director of the division.(19) Distributor purchase--Purchase of repair parts for a unit of major equipment that are needed immediately or as maintenance contracts for laboratory/medical equipment.(20) Division--The organizational division within the office of the Comptroller of Public Accounts for the State of Texas performing the responsibilities identified in the Act for and under the direction of the comptroller.(21) Emergency procurement--A situation requiring the state agency to make the procurement more quickly to prevent a hazard to life, health, safety, welfare, or property or to avoid undue additional cost to the state.(22) Environmentally sensitive products--Products that protect or enhance the environment, or provide less risk to the environment than traditionally available products.(23) Equivalent product--A product that is comparable in performance and quality to the specified product.(24) Electronic State Business Daily (ESBD)--A business daily made available on the Internet at an electronic procurement marketplace to which state agencies post contract opportunities that will exceed $25,000 in value.(25) Formal bid--A written bid submitted in a sealed envelope in accordance with a prescribed format, or an electronic data interchange transmitted to the comptroller in accordance with procedures established by the comptroller.(26) Group purchasing program--A purchasing program that offers discount prices to two or more state agencies, which is formed as a result of interagency or interlocal cooperation and follows all applicable statutory standards for purchases.(27) Historically Underutilized Business or HUB--A historically underutilized business as defined by Government Code, Chapter 2161 and Subchapter D, Division 1 of these rules.(28) Informal bid--An unsealed, competitive bid submitted by letter, telephone, or other means.(29) Invitation for bids (IFB)--A written request for submission of a bid; also referred to as a bid invitation.(30) Invoice--A document presented by a contractor for payment, which includes information necessary for payment processing, and is received by mail, hand delivery, electronically, or by facsimile transmission.(31) Late bid--A bid that is received at the place designated in the bid invitation after the time set for bid opening.(32) Level of quality--The ranking of an item, article, or product in regard to its properties, performance, and purity.(33) Local government--A county, municipality, special district, school district, junior college district, regional planning commission, or other political subdivision of the state pursuant to Local Government Code, §271.101.(34) Manufacturer's price list--A price list published in some form by the manufacturer and available to and recognized by the trade. The term does not include a price list prepared especially for a given bid.(35) Multiple award contract (as it applies to Multiple Award Schedule Contracts)--An award of a contract for an indefinite amount of one or more similar goods or services from a vendor.(36) Multiple award contract procedure--A purchasing procedure by which the comptroller establishes one or more levels of quality and performance and makes more than one award at each level.(37) Non-competitive purchase--A purchase of goods or services (also referred to as \"spot purchase\") that does not exceed the amount stated in §20.82 of this title (relating to Delegated Purchases).(38) Notice of award--A letter signed by the comptroller or the designee which awards and creates a term contract.(39) Open market purchase--A purchase of goods, usually of a specified quantity, made by buying from any available source in response to an open market requisition.(40) Performance bond--A surety bond which provides assurance of a bidder's performance of a certain contract. The amount for the performance bond shall be based on the bidder's annual level of potential monetary volume in the state purchasing program. Acceptable forms of bonds are those described in the definition for \"bid deposit.\"(41) Perishable goods--Goods that are subject to spoilage within a relatively short time and that may be purchased by agencies under delegated authority.(42) Post-consumer materials--Finished products, packages, or materials generated by a business entity or consumer that have served their intended end uses, and that have been recovered or otherwise diverted from the waste stream for the purpose of recycling.(43) Pre-consumer materials--Materials or by-products that have not reached a business entity or consumer for an intended end use, including industrial scrap material, and overstock or obsolete inventories from distributors, wholesalers, and other companies. The term does not include materials and by-products generated from, and commonly reused within, an original manufacturing process or separate operation within the same or a parent company.(44) Prescribed form--The entry screens available in the ESBD.(45) Proprietary--Products or services manufactured or offered under exclusive rights of ownership, including rights under patent, copyright, or trade secret law. A product or service is proprietary if it has a distinctive feature or characteristic which is not shared or provided by competing or similar products or services.(46) Public utility or utility--A public utility or utility as the term is defined under Utilities Code, §11.004.(47) Purchase orders--A document issued by a qualified ordering entity to make a purchase under a term contract issued by the comptroller by these rules.(48) Purchasing functions--The development of specifications, receipt and processing of requisitions, review of specifications, advertising for bids, bid evaluation, award of contracts, and inspection of merchandise received. The term does not include invoice, audit, or contract administration functions.(49) Qualified cooperative entity--An entity that qualifies for participation in the cooperative purchasing program and includes:(A) a local government;(B) a mental health and mental retardation community center identified in Government Code, §2155.202, that receive grants-in-aid under the provisions of Health and Safety Code, Chapter 534, Subchapter B;(C) an assistance organization as defined in Government Code, §2175.001, that receive any state funds; and(D) a political subdivision, as defined by Government Code, Chapter 791.(50) Qualified Ordering Entity--An entity that is either:(A) a state agency; or(B) a qualified cooperative entity that has registered with the comptroller to participate in the cooperative purchasing program as defined in Local Government Code, Subchapter D, §271.081.(51) Recycled material content--The portion of a product made with recycled materials consisting of pre-consumer materials (waste), post-consumer materials (waste), or both.(52) Recycled materials--Materials, goods, or products that contain recyclable material, industrial waste, or hazardous waste that may be used in place of raw or virgin materials in manufacturing a new product.(53) Recycled product--A product, including recycled steel that meets the requirements for recycled material content as prescribed by the rules established by the Texas Commission on Environmental Quality in consultation with the comptroller.(54) Registered agent--A representative designated by each state agency responsible for posting eligible procurement opportunities in the ESB.(55) Remanufactured product--A product that has been repaired, rebuilt, or otherwise restored to meet or exceed the original equipment manufacturer's (OEM) performance specifications; provided, however, the warranty period for a remanufactured product may differ from the OEM warranty period.(56) Request for proposal--A written request for offers concerning goods or services the state intends to acquire by means of the competitive sealed proposal procedure.(57) Requisition--(A) Open market purchase requisition. An initiating request from an agency describing needs and requesting the comptroller to purchase goods or services to satisfy those needs.(B) Term contract purchase requisition. A request from a qualified ordering entity for delivery of goods under an existing term contract.(58) Resolution--Document of legal intent adopted by the governing body of a qualified cooperative entity that evidences the qualified cooperative entity's participation in the cooperative purchasing program.(59) Respondent--A person that submits a response to a solicitation.(60) Retail electric provider--A retail electric provider as the term is defined under Utilities Code, §31.002(17).(61) Reverse auction--A real time bidding procedure that is Internet dependent and which is conducted at a pre-scheduled time and Internet location in which multiple suppliers, anonymous to each other, submit bids for designated goods or services.(62) Schedule--A list of multiple award contracts from which agencies may purchase goods and services.(63) Sealed bid--A formal written bid.(64) Solicitation--An invitation for bids or a request for proposals or any other document issued by a state agency for the purpose of soliciting offers in any form from a vendor to sell goods or services to the state and that includes at a minimum the information identified in Government Code, §2155.083(g).(65) Specification--A concise statement of a set of requirements to be satisfied by a product, material or service, indicating whenever appropriate the procedures to determine whether the requirements are satisfied.(66) Standard specification--A description of what the purchaser requires and what a bidder or proposer must offer.(67) State agency--A state agency as the term is defined under Government Code, Title 10, §2151.002.(68) Successor-in-interest--Any business entity that acquires or otherwise obtains the controlling ownership of a business entity.(69) Tabulation of bids--The recording of bids and bidding data for purposes of bid evaluation and recordkeeping.(70) Term contract purchase--A purchase by a qualified ordering entity under a term contract, which established a source of supply for particular goods at a given price for a specified period of time.(71) Testing--An element of inspection involving the determination, by technical means, of the properties or elements of item(s) or component(s), including function operation.(72) Texas uniform standards and specifications--Standards and specifications prepared and published by the standards and specifications program of the comptroller.(73) Unit price--The price of a selected unit of a good or service, e.g., price per ton, per labor hour, or per foot.(74) Using agency--An agency of government that requisitions goods or services through the comptroller.(75) Vendor--A person that offers goods and services in the state.",
            "sourceNote": "Source Note: The provisions of this §20.25 adopted to be effective January 24, 2017, 42 TexReg 228; amended to be effective August 2, 2020, 45 TexReg 5203; amended to be effective March 14, 2021, 46 TexReg 1508."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204171&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "204171",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "B",
                "label": "PUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION"
            },
            "rule": {
                "number": "§20.81",
                "label": "General Purchasing Provisions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208758&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
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            "ruleBody": "(a) Chapter 20 of this title applies to purchases of goods and services by the comptroller pursuant to the authority of the Act.(b) Chapter 20 of this title applies to any state agency delegated the authority to purchase goods and services pursuant to the Act and these rules.(c) A retail electric provider serving an area with customer choice is not a public utility. The purchase of retail electric service in an area with customer choice is subject to procurement requirements under the Act and Chapter 20 of this title.(d) A purchase of goods or services from a gift or grant in support of research is not subject to the comptroller's purchasing authority.",
            "sourceNote": "Source Note: The provisions of this §20.81 adopted to be effective January 24, 2017, 42 TexReg 229; amended to be effective August 2, 2020, 45 TexReg 5204; amended to be effective March 14, 2021, 46 TexReg 1508."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208758&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208758",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "B",
                "label": "PUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION"
            },
            "rule": {
                "number": "§20.82",
                "label": "Delegated Purchases"
            },
            "nextRule": {
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            "ruleBody": "(a) General delegation. The purchase of the following goods and services is delegated to state agencies:(1) one-time purchases of goods, including goods for resale, the estimated cost of which does not exceed $50,000;(2) emergency purchases;(3) purchases of perishable goods;(4) purchases of services, including services for resale, the estimated cost of which does not exceed $100,000;(5) purchases of publications directly from the publisher;(6) fuel, oil, and grease purchases;(7) distributor purchases; and(8) professional memberships.(b) Provisions generally applicable to delegated purchases.(1) Competitive bidding is not required for purchases of $10,000 or less.(2) All required solicitations of informal bids must be directed to vendors which normally offer for sale the goods and services being purchased.(3) Items purchased under delegated authority may not include items available under a term or cooperative contract (unless purchased in quantities less than minimum ordering quantities of the contract) or any item required by law to be purchased from a particular source.(4) The state agency must solicit formal bids from all eligible vendors on the centralized master bidders list (CMBL) when making purchases in excess of $25,000.(5) The state agency must maintain documentation justifying a proprietary purchase in excess of $10,000. A solicitation for a proprietary purchase must indicate that it is proprietary and products or services other than those specified will not be considered.(6) An agency's cost estimate must be developed in good faith using a method that is reasonable under the circumstances.(c) Withdrawal of delegated purchase authority. The comptroller will monitor compliance with established procedures for delegated purchases and may withdraw delegated purchase authority in whole or part from a state agency for continued violations after giving adequate warning. The comptroller will report to the governor, lieutenant governor, speaker of the house of representatives, and Legislative Budget Board the findings that a state agency has not followed the comptroller's rules or the laws related to the delegated purchases.(d) Provisions applicable to particular delegated purchases.(1) Goods and services purchases. Purchases of goods and services may be made in accordance with the following provisions.(A) State agencies must solicit at least three informal bids, including at least two bids from historically underutilized businesses (HUBs), on all purchases of goods and services exceeding $10,000 and not exceeding $25,000. State agencies must, to the extent possible, solicit bids from vendors on the CMBL and vendors in the HUB Directory. If a state agency is unable to locate two HUBs, it must make a note in the contract file.(B) For delegated purchases of goods and services estimated to cost more than $25,000, state agencies shall post a solicitation or notice of solicitation on the ESBD and, at a minimum, solicit formal bids from all eligible vendors within the NIGP classes and items designated for the procurement that are active on the CMBL. See §20.207 of this title (relating to Competitive Sealed Bidding), and §20.208 of this title (relating to Competitive Sealed Proposals).(2) Emergency purchases. State agencies shall make emergency purchases in accordance with the following provisions.(A) At least three informal bids should be obtained whenever possible.(B) For an emergency purchase of goods or services exceeding $25,000, a state agency must retain a full written explanation of the emergency along with other documentation required by the comptroller in the contract file.(C) A state agency may contact the comptroller for advice and assistance in the handling of emergency purchases.(3) Perishable goods. Purchases of perishable goods must be obtained through competitive bids, and appropriate documentation must be retained in the contract file.(4) Publications. A state agency may purchase publications directly from the publisher when such publications are not available through statewide contract or through competitive bidding. Direct publication orders shall be made by following guidelines established by the comptroller. Examples of direct publications include, but are not limited to:(A) foreign publications;(B) out-of-print or rare publications;(C) back issues of magazines, journals, and newspapers;(D) publications of professional societies;(E) prepared films, tapes, and discs (audio, visual, or both);(F) computer software;(G) collections of any of the foregoing items, and microfilm or microfiche copies of any of the foregoing items; and(H) Library of Congress cards.(5) Fuel, oil, and grease. A state agency may make fuel, oil, and grease purchases at service stations or in bulk. Fuel, oil, and grease purchases shall be made by following guidelines suggested by the comptroller. Non-competitive and emergency purchase procedures apply to purchases at service stations.(6) Distributor purchases. A state agency may make distributor purchases by following guidelines established by the comptroller. A state agency may not purchase any of the following on a distributor purchase basis: consumable items; labor of any kind (see \"service\"); \"will fit\" parts (non-OEM); parts for stock; contract items; electrical parts for electric motors; electrical switch panel boards; electrical accessories.(7) Professional memberships. A state agency may purchase professional memberships as described in Government Code, §2113.104 directly from a professional organization when such memberships are not available through competitive bidding, the administrative head of the agency, or that person's designee, has approved the purchase, the purchase will serve a public purpose, and the agency will receive adequate consideration in exchange for the purchase.(e) Specific delegations.(1) The authority to grant specific delegations resides with the director. Upon request of a state agency, the director shall determine whether to delegate a procurement to a state agency or to carry out the procurement.(2) A state agency seeking a specific delegation shall submit its proposed specifications for goods and services and evaluation criteria to the division using a procedure specified by the division. Alternately, a state agency may request for the division to develop specifications and evaluation criteria.(3) At a minimum, state agencies granted specific delegations shall meet the following criteria:(A) procurement audit standards set forth in §20.510 of this title (relating to Auditing of Purchase Related Documentation);(B) minimum training and certification standards established in §20.133 of this title (relating to Training and Certification Program); and(C) approved processes and procedures for the specific type of delegation being requested. All processes and procedures are subject to the prior review, revision and approval of the director.",
            "sourceNote": "Source Note: The provisions of this §20.82 adopted to be effective January 24, 2017, 42 TexReg 229; amended to be effective May 1, 2022, 47 TexReg 2553."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182495&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182495",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "B",
                "label": "PUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION"
            },
            "rule": {
                "number": "§20.83",
                "label": "Assistance with Delegated Purchasing"
            },
            "nextRule": {
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                "recordId": "208759",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "If a state agency desires to use the comptroller's services for a delegated or exempt purchase, a written request shall be made in a manner and form determined by the director and containing information the director deems relevant to the purchase and processing of the request. Such service shall be by cost recovery and the director shall determine and include all relevant factors related to providing the service on a cost basis. In no event shall non-delegated purchases be placed in jeopardy by the processing of delegated or exempt purchases.",
            "sourceNote": "Source Note: The provisions of this §20.83 adopted to be effective January 24, 2017, 42 TexReg 229."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208759&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208759",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "B",
                "label": "PUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION"
            },
            "rule": {
                "number": "§20.84",
                "label": "Advisory Committees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182497&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182497",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The Advisory Committee on Procurement established under Government Code, §2155.080; and the Vendor Advisory Committee established under Government Code, §2155.081 have been automatically abolished by operation of Government Code,§2110.008(b)(2).(b) The comptroller may, from time to time, solicit input related to procurement matters from representatives of vendors or vendor associations, state agencies or state agency committees, customer entities, or other stakeholders, either individually or in groups. An invitation to provide input, individually or as a group, shall not establish an advisory committee within the meaning of Government Code, Chapter 2110.",
            "sourceNote": "Source Note: The provisions of this §20.84 adopted to be effective January 24, 2017, 42 TexReg 229; amended to be effective May 1, 2022, 47 TexReg 2556."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182497&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182497",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "B",
                "label": "PUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION"
            },
            "rule": {
                "number": "§20.106",
                "label": "Electronic Purchasing System"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182498&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182498",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The comptroller may use electronic services to improve the efficiency and effectiveness of the purchasing system. Such services are provided on a cost recovery basis to those who choose to use them. Examples of such services include electronic delivery of purchase orders, electronic receipt of bids and proposals, and electronic bulletin boards.",
            "sourceNote": "Source Note: The provisions of this §20.106 adopted to be effective January 24, 2017, 42 TexReg 229."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182498&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182498",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "B",
                "label": "PUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION"
            },
            "rule": {
                "number": "§20.107",
                "label": "Centralized Master Bidders List"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182499&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182499",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The comptroller maintains the Centralized Master Bidders List (CMBL) of the names and addresses of vendors which have registered for inclusion on the CMBL. The CMBL is maintained for the state's use in procuring goods and services through open and fair competition. Solicitations shall be transmitted to vendors on the CMBL for the solicited good and/or service designated by the vendor for open market, term contracts, competitive sealed proposal acquisitions and delegated purchases in excess of the non-competitive bid limit.(b) Registration for the Centralized Master Bidders List is an on-line process with a vendor managed web based system. There is a $70.00 annual fee to remain registered on the CMBL.(c) It is the vendor's responsibility to maintain their CMBL profile to ensure correct information for receipt of bids based on products or services which can be provided for selected districts for the State of Texas.(d) A vendor may be administratively removed from the CMBL for one or more of the following reasons:(1) failing to pay or unnecessarily delaying payment of damages assessed by the comptroller;(2) failing to remit the required CMBL fee; or(3) any factor set forth in Government Code, §2155.070 and §2155.077.(e) A vendor which has been removed from the CMBL shall not be reinstated until expiration of the period for which the vendor was removed and approval is granted.(f) An error in addressing a bid invitation or request for proposal or a failure of the post office to deliver the solicitation will not be sufficient reason to require the comptroller to reject all solicitation responses.(g) State agencies shall use the CMBL to select bidders for competitive bids or proposals and to the fullest extent possible for purchases exempt from the comptroller's purchasing authority. This requirement does not apply to the Texas Department of Transportation or to an institution of higher education as defined by Education Code, §61.003, but an institution of higher education should use the CMBL when possible.(h) As authorized by Government Code, §2155.269, a state agency may waive the requirement to solicit only from bidders listed on the Centralized Master Bidders List (CMBL) by obtaining approval from its agency head or designee to add non-CMBL bidders to the final bid list. Non-CMBL bidders can be added to the final bid list for specific solicitations where the requirement to solicit only CMBL bidders is not warranted, such as to increase competition.",
            "sourceNote": "Source Note: The provisions of this §20.107 adopted to be effective January 24, 2017, 42 TexReg 229."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182499&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182499",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "B",
                "label": "PUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION"
            },
            "rule": {
                "number": "§20.108",
                "label": "Authority"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182500&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182500",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Pursuant to the authority granted by Government Code, §2155.083, the comptroller sets forth the following rules regarding procedures and practice for posting procurement opportunities in the Electronic State Business Daily (ESBD).",
            "sourceNote": "Source Note: The provisions of this §20.108 adopted to be effective January 24, 2017, 42 TexReg 229."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182500&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182500",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "B",
                "label": "PUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION"
            },
            "rule": {
                "number": "§20.109",
                "label": "Purpose"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182501&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182501",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The ESBD is established as a means for all state agencies to post notice directly and electronically in an electronic procurement marketplace on the Internet before making a procurement with a value that exceeds $25,000.(b) The requirements of this subchapter are in addition to the requirements of other laws relating to the solicitation of bids, proposals, or other applicable expressions of interest for a procurement by a state agency. This subchapter does not affect whether a state agency is required to award a contract for procurement through competitive bidding, competitive sealed proposals, or another purchasing method.(c) This section applies to each state agency making a procurement that will exceed $25,000.00 in value, without regard to the source of funds the agency will use for the procurement, including a procurement that:(1) is otherwise exempt from the comptroller's purchasing authority;(2) is made under delegated purchasing authority;(3) is related to a construction project; or(4) is a procurement of professional or consulting services.(d) A solicitation does not include an agreement between a state agency and a state agency, local government, or another government entity under Government Code, Chapters 771, 791, 792, or other law.",
            "sourceNote": "Source Note: The provisions of this §20.109 adopted to be effective January 24, 2017, 42 TexReg 229."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182501&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182501",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "B",
                "label": "PUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION"
            },
            "rule": {
                "number": "§20.110",
                "label": "Notice and Information Posting Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182502&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182502",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The comptroller shall make the ESBD available on the Internet through an electronic procurement marketplace maintained by the comptroller.(b) The comptroller shall post in the ESBD other information relating to the business activity of the state that the comptroller considers to be of interest to the public. The comptroller may develop a means for each state agency to post relevant information electronically. This information will also be accessible on the comptroller's web site.(c) The comptroller will electronically transfer to the ESBD all procurements in excess of $25,000 that the comptroller has processed on behalf of state agencies.",
            "sourceNote": "Source Note: The provisions of this §20.110 adopted to be effective January 24, 2017, 42 TexReg 229."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182502&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182502",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "B",
                "label": "PUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION"
            },
            "rule": {
                "number": "§20.111",
                "label": "Internet Access"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182503&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182503",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) It is the responsibility of each state agency to coordinate with the Department of Information Resources (DIR) to secure Internet service and computer hardware and software necessary for each registered agent to have daily access to the ESBD.(b) To accommodate businesses seeking to become potential bidders or respondents that do not have the technical means to access the ESBD, governmental and non-governmental entities such as public libraries, chambers of commerce, trade associations, small business development centers, economic development departments of local governments, and state agencies may provide public access to the ESBD.",
            "sourceNote": "Source Note: The provisions of this §20.111 adopted to be effective January 24, 2017, 42 TexReg 229."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182503&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182503",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "B",
                "label": "PUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION"
            },
            "rule": {
                "number": "§20.112",
                "label": "Fees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182504&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182504",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A government agency may recover the direct cost of providing the public access only by charging a fee for downloading procurement notices and bid or proposal solicitation packages posted on the ESBD. For state agencies, these fees may not exceed the state agency's published rate for open records requests.(b) The comptroller and other state agencies may not charge a fee designed to recover the cost of preparing and gathering the information that is published in the ESBD. These costs are considered part of a procuring agency's responsibility to publicly inform potential bidders or respondents of its procurement contract opportunities.(c) A non-governmental entity may use information posted in the ESBD in providing a service that is more than only the downloading of information from the business daily, including a service by which appropriate bidders or respondents are matched with information that is relevant to those bidders or respondents, and may charge a lawful fee that the entity considers appropriate for the service.",
            "sourceNote": "Source Note: The provisions of this §20.112 adopted to be effective January 24, 2017, 42 TexReg 229."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182504&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182504",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "B",
                "label": "PUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION"
            },
            "rule": {
                "number": "§20.113",
                "label": "Registered Agent Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208760&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208760",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Each state agency must designate a minimum of one person to be the registered agent for posting all solicitations to the ESBD. State agencies with field or satellite offices may establish a registered agent at those offices or require that procurement contract opportunities be sent to the main office for posting in compliance with this chapter.(b) To add a new state agency account, a written request signed by the agency head or designee must be submitted to the comptroller to create a superuser account for the agency. All other registered users for that agency will be registered through the superuser account.(c) The user/registered agent information will automatically be entered by the ESBD each time the registered agent accesses the ESBD to post new procurement opportunities.",
            "sourceNote": "Source Note: The provisions of this §20.113 adopted to be effective January 24, 2017, 42 TexReg 229."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208760&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208760",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "B",
                "label": "PUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION"
            },
            "rule": {
                "number": "§20.114",
                "label": "Electronic State Business Daily Posting Procedures"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201945&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201945",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Each state agency must comply with the procedures established by the comptroller when posting solicitation notices on the ESBD. The comptroller will provide an ESBD User's Manual online with instructions for posting solicitations and awards on the ESBD.(b) Information for each solicitation must be entered on the ESBD, using the prescribed electronic format in compliance with §20.214 of this title (relating to Notice and Information Posting Requirement).",
            "sourceNote": "Source Note: The provisions of this §20.114 adopted to be effective January 24, 2017, 42 TexReg 229; amended to be effective May 1, 2022, 47 TexReg 2556."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201945&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201945",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "B",
                "label": "PUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION"
            },
            "rule": {
                "number": "§20.115",
                "label": "Vendor Performance Tracking System"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208761&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208761",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The comptroller's statewide procurement division shall maintain a vendor performance tracking system on the comptroller's web page on which vendor performance reports and vendor grades submitted by state agencies are published. Vendor performance reports and vendor grades shall be submitted to the vendor performance tracking system as stated in §20.509 of this title (relating to Vendor Performance Reporting).(b) The comptroller shall provide a copy of a state agency's vendor performance report and grade to the vendor identified in the report. When a state agency assigns a grade lower than \"C,\" the vendor may provide to the comptroller a response to the performance report and grade. When a response is received by the comptroller within 30 days of the comptroller providing a copy of the performance report and grade to the vendor, the comptroller:(1) shall provide the state agency a copy of the vendor response; and(2) shall review the performance report and grade, response, and any other relevant information available to the comptroller about the purchase order or contract that is the subject of the performance report and grade.(c) Based upon the review provided for in subsection (b) of this section, the comptroller may revise the performance report or grade.(d) Using vendor grades provided by state agencies, the vendor performance tracking system will generate one overall vendor performance letter grade for each vendor in the following manner:(1) Each vendor grade assigned by a state agency will be designated a numerical value based on the following scale: A=4, B=3, C=2, D=1, F=0.(2) On or before February 4, 2021, the system numerical score for the vendor is the sum of all numerical values for each letter grade assigned to a vendor after February 4, 2017. After February 5, 2021, the system numerical score for a vendor will be the sum of all numerical values for each letter grade assigned to a vendor for the most recent 48 months.(3) The system numerical average score for the vendor is the system numerical score determined in paragraph (2) of this subsection divided by the number of letter grades included in the calculation of the system numerical score. The system numerical average score is rounded to the nearest tenth.(4) Using the system numerical average score determined under paragraph (3) of this subsection, the system will assign a single system numerical average score letter grade for the contractor based on the following scale: A=3.5-4.0; B=2.5-3.4; C=1.5-2.4; D=0.5-1.4; and F=0.4 or below.(e) Except for a grade that was revised in the vendor's favor under subsection (c) of this section, the executive head of a state agency may, within 48 months of submission of a vendor performance report and grade, request to revise the report and grade for a particular purchase order or contract by submitting a written justification for the grade revision to the comptroller. The written justification for the grade revision must contain the following information:(1) contract number or purchase order number;(2) vendor name;(3) date the state agency entered into the vendor performance tracking system the grade that the state agency is requesting to revise; and(4) a revised vendor performance report, including the reason for the grade revision request.(f) Upon receiving a request under subsection (e) of this section, the comptroller shall publish the grade revision and revised performance report in the vendor performance tracking system maintained on the comptroller's website unless the requested grade revision will result in a grade lower than \"C,\" in which case subsection (b) of this section will apply. The comptroller shall recalculate the system numerical score and system numerical average score using the revised grade.(g) A vendor that receives a grade lower than a \"C\" from a state agency may file a protest to the grade according to the protest procedures in §20.534 of this title (relating to Protests).",
            "sourceNote": "Source Note: The provisions of this §20.115 adopted to be effective January 24, 2017, 42 TexReg 229; amended to be effective November 30, 2020, 45 TexReg 8526."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208761&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208761",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "B",
                "label": "PUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION"
            },
            "rule": {
                "number": "§20.131",
                "label": "Procurement Manual and Contract Management Guide"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182507&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182507",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The comptroller shall develop and periodically update a procurement manual and contract management guide for use by state agencies.(b) To prepare the guide, the comptroller shall consult with the attorney general and the Department of Information Resources. The comptroller may consult with the state auditor, state agencies, or other stakeholders. State agencies may submit, and the comptroller may consider, recommendations for improving the guide.",
            "sourceNote": "Source Note: The provisions of this §20.131 adopted to be effective January 24, 2017, 42 TexReg 231; amended to be effective May 1, 2022, 47 TexReg 2557."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182507&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182507",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "B",
                "label": "PUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION"
            },
            "rule": {
                "number": "§20.132",
                "label": "Compliance"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=219858&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "219858",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Each state agency shall comply with the state procurement manual and contract management guide.(b) Procurement plan. State agencies shall formulate an agency procurement plan that identifies an agency's management controls and purchasing oversight authority in accordance with the policy guidance contained in the comptroller's procurement manual and contract management guide. A state agency must submit a copy of the procurement plan during the comptroller's audit of the state agency's purchasing documents or upon request by the comptroller.",
            "sourceNote": "Source Note: The provisions of this §20.132 adopted to be effective January 24, 2017, 42 TexReg 231."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=219858&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "219858",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "B",
                "label": "PUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION"
            },
            "rule": {
                "number": "§20.133",
                "label": "Training and Certification Program"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=219859&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "219859",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Purpose. The purpose of these rules is to provide a uniform procedure through which the division will train and certify individuals who conduct government procurement functions.(b) Definitions. The following words and terms when used in this section shall have the following meanings.(1) Purchasing--The receipt and processing of requisitions, development of specifications, development of scope of work, the issuance of purchase orders against existing cooperative or agency contracts, and the verification of the inspection of merchandise or receipt of services by the agency. The term does not include the development of solicitations and contract awards that must be posted to the Electronic State Business Daily or in the Texas Register.  (2) Contract development--The term applies to actions taken prior to contract execution, including the receipt and processing of requisitions, assessment of need, development and review of specifications, development and review of scopes of work, identification and selection of procurement methods, identification and preparation of evaluation criteria, preparation of and advertising solicitation documents, tabulation of respondent bids, evaluation of respondent proposals, negotiation of proposals, and the preparation and completion of contract award documents. The term does not include invoice or audit functions.(3) Contract management--The term applies to actions taken following contract execution, including the assessment of risk, verification of contractor performance, monitoring compliance with deliverable and reporting requirements, enforcement of contract terms, monitoring and reporting of vendor performance, and ensuring that contract performance and practices are consistent with applicable rules, laws and the State of Texas Procurement Manual and Contract Management Guide.(4) Procurement--The performance of any purchasing, contract development, or contract management functions.(5) Contractor--For purposes of this section, a person other than a state agency employee retained by a state agency to perform purchasing or contract development functions.(c) Training required.(1) Purchasing requirements. A state agency employee or contractor must complete the division's Texas Purchasing Course to engage in purchasing functions on behalf of a state agency if the employee or contractor:(A) has the job title of \"purchaser\";(B) performs purchasing functions as 15% or more of their job functions; or(C) makes a purchase in excess of $10,000.(2) Certified Texas Contract Developer requirements.(A) A state agency employee or contractor must be certified as a Certified Texas Contract Developer to engage in contract development functions on behalf of a state agency and to issue a solicitation or contract award required to be posted to the Electronic State Business Daily or in the Texas Register.  (B) A Certified Texas Contract Developer may conduct purchasing functions.(3) Certified Texas Contract Manager requirements. A state agency employee must be certified as a Certified Texas Contract Manager to engage in contract management functions on behalf of a state agency if the employee:(A) has the job title of \"contract manager\" or \"contract administration manager\" or \"contract technician\"; (B) performs contract management functions as 50% or more of their job functions; or(C) manages any contract in excess of $5,000,000.(4) Certified Texas Contract Manager exemption. In accordance with Government Code, §656.052(h)(2), a contract manager whose contract management duties primarily relate to contracts described by Government Code, §2262.002(b) is exempt from the contract management certification requirements of this section.(5) Licensed attorneys exemption. A licensed attorney employed by a state agency performing procurement or contract management functions described by this section is exempt from the certification requirements of this section.(d) Eligible applicants. To be eligible to apply for and receive a certification, an applicant must be:(1) a current Texas state or local government employee; (2) at the sole discretion of the director, a contractor as defined in subsection (b)(5) of this section; or(3) at the sole discretion of the director, a student:(A) currently enrolled in an accredited Texas university or community college; or(B) who has graduated within the last three years from an accredited Texas university or community college.(e) Requirements to receive certification.(1) To be a Certified Texas Contract Developer, an eligible applicant must:(A) complete the Texas Contract Developer Certification training course provided by the division;(B) complete the division approved Texas Contract Developer Certification examination with a score of 80% or higher;(C) have completed payment for the course and the examination; and(D) be issued a Texas Contract Developer Certification.(2) To be a Certified Texas Contract Manager, an eligible applicant must:(A) complete the Texas Contract Manager Certification training course provided by the division;(B) complete the division approved Texas Contract Manager Certification examination with a score of 80% or higher;(C) have completed payment for the course and the examination; and(D) be issued a Texas Contract Manager Certification.(f) Training completion. To complete any training required in this section, an eligible applicant must:(1) register for the applicable training using the electronic registration provided by the division on the official comptroller website;(2) provide documentation of eligibility acceptable to the director;(3) attend the applicable training course; and(4) receive confirmation of course completion from the director.(g) Certification examinations.(1) To take any certification examination required in this section, an eligible applicant must register to take the examination using the electronic registration provided by the division on the official comptroller website within:(A) three months of confirmation of completion of the applicable course by the director; or(B) the time period determined at the sole discretion of the director with documented extenuating circumstances not to exceed twelve months from confirmation of completion of the applicable course.(2) If an applicant receives a score of less than 80% following completion of the course, the applicant shall have two additional attempts to obtain a score of 80% or higher during a time period not to exceed six months following completion of the course.(3) If the applicant does not obtain a score of 80% or higher after three attempts, the applicant must retake the applicable training course prior to retaking the examination.(h) Certification issuance.(1) To be issued any certification in this section, eligible applicants must within three months of the issuance of examination completion with a score of 80% or higher, submit:(A) an application provided by the division on the official comptroller website; and(B) any other documents required by the director.(2) If the director determines that all applicable requirements have been satisfied, a certification will be issued to the applicant.(i) Continuing education.(1) A procurement professional certified in this section must complete twenty-four hours of in-person or online continuing education every three years, one hour of which must be ethics, to maintain certification. Twenty-three hours of the required hours must be division-sponsored training and one hour may be an elective selected by the professional, subject to division approval. The ethics requirement must be satisfied by division-sponsored training.(2) A procurement professional dual certified in this section must complete thirty-six hours of in-person or online continuing education every three years, one hour of which must be ethics, to maintain dual certification. Thirty-four hours of the required hours must be division-sponsored training and two hours may be elective courses selected by the professional, subject to division approval. The ethics requirement must be satisfied by division-sponsored training.(3) A procurement professional certified in this section is required to take the Renewal Refresher course offered by division once every three years in order to maintain certification. The Renewal Refresher course does not count towards continuing education hours.(4) The Renewal Refresher course must be completed no earlier than two years following the date of initial certification or last renewal. Renewal Refresher courses completed prior to two years following the date of initial certification or last renewal will not be considered applicable to the Renewal Refresher requirement.(5) Division-sponsored or elective course continuing education will be counted as credit with the completion of the course and approval of the continuing education course credit application. The division will email a certificate of completion to the certified procurement professional upon approval of the continuing education course credit application. The same course may not be taken more than once per renewal period for credit.(j) Certification renewal.(1) Certifications issued in this section expire three years following the date of issuance.(2) Procurement professionals certified in this section must submit an application for certification renewal at least thirty calendar days prior to the expiration date of their certification.(3) The application must include a certificate of completion of the applicable Renewal Refresher course, and certificates of completion of the division sponsored continuing education required under this rule.(4) If a certified procurement professional allows the certification to expire, an extension may be requested within thirty calendar days from the date of expiration. If the division approves the extension, the certified procurement professional has sixty calendar days from the date of extension approval to complete the requirements for renewal. If the certified procurement professional does not complete the requirements during the extension period, the initial certification requirements must be completed to receive a new certification.(5) Certifications awarded or renewed under previous requirements are valid until the date of first renewal.",
            "sourceNote": "Source Note: The provisions of this §20.133 adopted to be effective June 27, 2018, 43 TexReg 4209; amended to be effective March 14, 2021, 46 TexReg 1508; amended to be effective May 1, 2022, 47 TexReg 2557; amended to be effective July 30, 2024, 49 TexReg 5536."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=219859&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "219859",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "B",
                "label": "PUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION"
            },
            "rule": {
                "number": "§20.157",
                "label": "Adherence to Ethical Standards"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182512&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182512",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Employees of agencies, and contractors as defined in §20.133 of this title, who perform purchasing functions under delegated authority shall adhere to the same ethical standards required of comptroller employees, and shall avoid all conflicts of interest in their purchasing activities.",
            "sourceNote": "Source Note: The provisions of this §20.157 adopted to be effective January 24, 2017, 42 TexReg 232; amended to be effective July 30, 2024, 49 TexReg 5537."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182512&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182512",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "B",
                "label": "PUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION"
            },
            "rule": {
                "number": "§20.158",
                "label": "Disclosure of Potential Conflicts of Interest; Certain Contracts Prohibited"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200807&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "200807",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Each state agency employee or official who is involved in procurement or in contract management for a state agency shall disclose to the agency any potential conflict of interest specified by state law or agency policy that is known by the employee or official with respect to any contract with a private vendor or bid for the purchase of goods or services from a private vendor by the agency.(b) A state agency may not enter into a contract for the purchase of goods or services with a private vendor with whom any of the following agency employees or officials have a financial interest:(1) a member of the agency's governing body;(2) the governing official, executive director, general counsel, chief procurement officer, or procurement director of the agency; or(3) a family member related to an employee or official described by paragraph (1) or (2) of this subsection within the second degree by affinity or consanguinity.(c) A state agency employee or official has a financial interest in a person if the employee or official:(1) owns or controls, directly or indirectly, an ownership interest of at least one percent in the person, including the right to share in profits, proceeds, or capital gains; or(2) could reasonably foresee that a contract with the person could result in a financial benefit to the employee or official.(d) A financial interest prohibited by this section does not include a retirement plan, a blind trust, insurance coverage, or an ownership interest of less than one percent in a corporation.(e) This section shall not apply to contracts of the Employees Retirement System of Texas or the Teacher Retirement System of Texas, except for a contract with a nongovernmental entity for claims administration of a group health benefit plan under Insurance Code, Title 8, Subtitle H. Notwithstanding Government Code, §2261.001, this section applies to the Texas Department of Transportation and to an institution of higher education acquiring goods or services under Education Code, §51.9335 or §73.115.",
            "sourceNote": "Source Note: The provisions of this §20.158 adopted to be effective January 24, 2017, 42 TexReg 232."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200807&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "200807",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "B",
                "label": "PUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION"
            },
            "rule": {
                "number": "§20.160",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200808&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "200808",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this division, shall have the following meaning unless the context clearly indicates otherwise.(1) CAT--The Contract Advisory Team established in Government Code, Chapter 2262, Subchapter C.(2) Key terms--Deliverables, duration, performance standards, amount of compensation or method of computing compensation to the contractor, specification or limitation of remedies, and any other term identified as a \"key term\" in the procurement manual and contract management guide developed under §20.131 of this chapter (relating to Procurement Manual and Contract Management Guide).",
            "sourceNote": "Source Note: The provisions of this §20.160 adopted to be effective August 27, 2020, 45 TexReg 5927."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200808&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "200808",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "B",
                "label": "PUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION"
            },
            "rule": {
                "number": "§20.161",
                "label": "Scope"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200809&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "200809",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) This division applies only to solicitations and contracts subject to monitoring by CAT.(b) Major information resources projects and any associated contracts, as defined in Government Code, Chapter 2054, are subject to monitoring by the Quality Assurance Team under the rules of the Department of Information Resources.",
            "sourceNote": "Source Note: The provisions of this §20.161 adopted to be effective August 27, 2020, 45 TexReg 5927."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200809&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "200809",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "B",
                "label": "PUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION"
            },
            "rule": {
                "number": "§20.162",
                "label": "Solicitation Review"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200810&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "200810",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An agency may not publish a solicitation on the ESBD or in the Texas Register  until it obtains a CAT review of the solicitation and either complies with each recommendation or submits a written explanation regarding why the recommendation is not applicable to the solicitation.(b) To obtain CAT review of a solicitation, an agency must submit all solicitation documents, including the solicitation, any documents that are incorporated by reference into the solicitation, and essential supporting documents such as the proprietary purchase justification.(c) After obtaining CAT review of a solicitation, if an agency substantially revises the solicitation, it may not publish the revised solicitation until it meets the prerequisites in subsections (a) and (b) of this section.(d) If an agency cannot obtain CAT review within the amount of time it has to complete a procurement to prevent a hazard to life, health, safety, welfare, or property in an emergency, the requirement to obtain CAT review in this section does not apply. An agency shall justify its reliance on this subsection in the procurement file for each procurement that would otherwise require CAT review. A justification submitted in accordance with §20.82(d)(2)(B) of this title and maintained in the procurement file may be sufficient if it demonstrates that CAT review is not required.",
            "sourceNote": "Source Note: The provisions of this §20.162 adopted to be effective August 27, 2020, 45 TexReg 5927."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200810&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "200810",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "B",
                "label": "PUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION"
            },
            "rule": {
                "number": "§20.163",
                "label": "Expedited Solicitation Review"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200811&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "200811",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Low-risk solicitations. If a solicitation qualifies as low-risk according to this section, an agency may designate it as low-risk when submitting it for CAT review. CAT may review a solicitation that has been designated as low-risk using an expedited process that focuses on key terms, or request additional documentation to determine which level of review to perform.(b) Template solicitations. An agency may request CAT review of a solicitation template, which must include all key terms for a contemplated contract. For one year after a template has been reviewed, the agency may designate a solicitation following that template without substantial revision as low-risk.(c) Risk analysis procedure. An agency that has developed a risk analysis procedure as described in Government Code, §2261.256(a), may designate a solicitation as low-risk if it submits its analysis and conclusion that the contractor selection process, contract provisions, and payment and reimbursement rates for the types of goods and services to be solicited present a low risk of fraud, abuse, or waste.(d) Reduced monitoring. An agency that is currently reported by the State Auditor's Office as requiring reduced monitoring during contract solicitation and development may designate a solicitation as low-risk without submitting an analysis to CAT.(e) Additional monitoring. An agency that is currently reported by the State Auditor's Office as requiring additional monitoring during contract solicitation and development may not designate any solicitation as low-risk, even if the solicitation would otherwise qualify under this section.",
            "sourceNote": "Source Note: The provisions of this §20.163 adopted to be effective August 27, 2020, 45 TexReg 5927."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200811&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "200811",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "B",
                "label": "PUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION"
            },
            "rule": {
                "number": "§20.164",
                "label": "Enhanced Solicitation Review"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200812&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "200812",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "To obtain CAT review of a solicitation, an agency that is currently reported by the State Auditor's Office as requiring additional monitoring during contract solicitation and development must additionally submit the needs assessment, acquisition plan, and risk assessment for the solicitation.",
            "sourceNote": "Source Note: The provisions of this §20.164 adopted to be effective August 27, 2020, 45 TexReg 5927."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200812&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "200812",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "B",
                "label": "PUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION"
            },
            "rule": {
                "number": "§20.165",
                "label": "Contract Formation and Award"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200813&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "200813",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Recommendations and assistance. An agency may request recommendations and assistance from CAT regarding contract formation and award.(b) Additional monitoring. An agency that is currently reported by the State Auditor's Office as requiring additional monitoring during contract formation and award shall provide to CAT upon request:(1) descriptive information specified by CAT on all contracts it has awarded from solicitations that were reviewed by CAT; and(2) copies of all contract documents requested by CAT for the purpose of providing recommendations and assistance to the agency.",
            "sourceNote": "Source Note: The provisions of this §20.165 adopted to be effective August 27, 2020, 45 TexReg 5927."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200813&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "200813",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "B",
                "label": "PUBLIC PROCUREMENT AUTHORITY AND ORGANIZATION"
            },
            "rule": {
                "number": "§20.166",
                "label": "Contract Management and Termination"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182513&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182513",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Recommendations and assistance. An agency may request recommendations and assistance from CAT regarding contract management and termination.(b) Additional monitoring - training requirement. An agency that is reported by the State Auditor's Office as requiring additional monitoring during contract management and termination shall ensure that each of its contract managers has received additional training specified by and provided by the comptroller before December 31st of the year it is reported, or before another date agreed between the agency and the comptroller.(c) Additional monitoring - submission of procedures. An agency that is reported by the State Auditor's Office as requiring additional monitoring during contract management and termination shall submit to CAT before November 30th of the year it is reported, or before another date agreed between the agency and the comptroller:(1) the procedure by which it will identify each contract that requires enhanced contract or performance monitoring; and(2) its handbook of policies and practices for contract management and termination.(d) Additional Monitoring - Closeout Report. An agency that is currently reported by the State Auditor's Office as requiring additional monitoring during contract management and termination shall, within 30 days of the closeout of a contract it has identified as one that requires enhanced contract or performance monitoring, place the following information in the contract file, and provide it to the State Auditor, the comptroller, or CAT upon request:(1) each of its performance expectations for the contract;(2) the performance indicators it monitored during the contract;(3) the methods it used to monitor performance indicators;(4) whether the contractor met its performance expectations;(5) a summary of corrective action plans and corrective actions taken by the contractor;(6) any liquidated damages assessed or collected from the contractor; and(7) a summary of lessons learned during management of the contract that the agency will apply to future procurements.",
            "sourceNote": "Source Note: The provisions of this §20.166 adopted to be effective August 27, 2020, 45 TexReg 5927."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182513&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182513",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.181",
                "label": "State Agency compliance and Documentation Responsibilities"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182514&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182514",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) State agencies shall plan and document procurement transactions subject to this chapter in a manner consistent with requirements and guidelines set forth in the state procurement manual and contract management guide, including at a minimum:(1) actions or documentation related to the agency's assessment of need for the specific commodity or service;(2) its selection of the method of procurement to be used;(3) the development of specifications;(4) identification of evaluation criteria to determine the best value of the good or service;(5) the process by which the procurement transaction is conducted; and(6) the management of any resulting contract.(b) State agencies shall plan and document procurement transactions in a manner that will ensure the agency's ability to comply with the requirements of §20.509 of this title (relating to Performance Reporting) relative to the evaluation of the awarded vendor's performance based on:(1) information prepared by the agency in planning the procurement that assessed the need for the purchase together with the specifications for the good or service and the criteria to evaluate the responses resulting in an award and contract;(2) compliance with the material terms of the contract;(3) ability to correct instances of contractual non-compliance; and(4) other evaluation criteria presented in the on-line vendor performance tracking system.(c) It is the responsibility of state agencies to document the basis for agency decisions to depart from the requirements in the state procurement manual or contract management guide.",
            "sourceNote": "Source Note: The provisions of this §20.181 adopted to be effective January 24, 2017, 42 TexReg 232."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182514&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182514",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.182",
                "label": "Selection of Items for Development of Texas Uniform Standards and Specifications"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182515&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182515",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Items are selected for specification development by or through one or more of the following methods.(1) Required by statute.(A) School buses. Pursuant to Education Code, §34.002, the Texas Department of Public Safety, with advice from the Texas Education Agency, establishes safety standards for school buses used to transport students. Pursuant to Education Code, §34.001, specifications developed by the Texas Department of Public Safety in compliance with Transportation Code, §547.7015, shall be referenced in solicitations and made a part of any contract awarded by the comptroller as result of a requisition received from a school district pursuant to Local Government Code, §271.083. For the convenience of qualified purchasing entities the specifications shall be posted on the division's website.(B) Prison-made products and raw materials. Pursuant to Government Code, Subtitle G, Subchapter B, §497.027, an article or product produced under Subchapter B must meet specifications established by the comptroller that are in effect when the article or product is produced.(2) Requests from using agencies. If a using agency finds that it is having difficulty in obtaining a certain item to meet a particular requirement, then the agency can communicate this need to the division.(3) Requests from purchasers. If a state agency purchaser is having difficulty in securing bids on a particular item in the absence of adequate uniform standards and specifications, the purchaser may request the division to investigate the feasibility of developing a uniform standard and specification to cover the purchase of this item.",
            "sourceNote": "Source Note: The provisions of this §20.182 adopted to be effective January 24, 2017, 42 TexReg 232."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182515&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182515",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.183",
                "label": "Development of Texas Uniform Standards and Specifications"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182516&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182516",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Preparation of Texas Uniform Standards and Specifications.(1) The procedure used in developing uniform standards and specifications includes consultation, research, collection, and evaluation of data, and preparation of the specification. The division consults with knowledgeable people in various state agencies, user advisory groups, purchasers, vendors, manufacturers, distributors, bidders, governmental and trade associations, colleges and universities, testing laboratories, and other experts.(2) Uniform standards and specifications from federal, state, and local governments and standards agencies, such as ASTM, SAE, and others, and product literature from manufacturers, distributors, etc., are obtained, studied, and their contents evaluated.(3) A proposed specification is then prepared by stipulating minimum requirements necessary to provide products of the level of quality required by various state agencies.(4) This draft specification is then distributed to the individuals and groups initially contacted as well as other interested parties for their review, comments, and suggestions.(5) Comments and suggestions received are reviewed, analyzed, and evaluated, and the proposed specification modified accordingly.(6) If, as a result of this analysis and evaluation, major changes in the proposed specification are made, then a second proposed specification is prepared and distributed and the process outlined in paragraphs (4) and (5) of this subsection is followed.(7) If no major change in the proposed specification is made, then the uniform standard and specification is finalized and distributed.(8) Comments and suggestions received from the distribution of a second proposed specification are reviewed, analyzed, evaluated, and the process outlined in paragraphs (4) - (7) of this subsection is followed.(9) This process is continued until a uniform standard and specification is developed that will provide the level of quality required by the state and that will provide competitive bidding.(10) The agency user advisory groups provide the division with their individual requirements and otherwise assist in the preparation and development of specifications.(b) Distribution of Texas Uniform Standards and Specifications. The initial distribution of newly adopted or prepared uniform standards and specifications is to state agencies, vendors/distributors and manufacturers contacted during the development phase of the uniform standard and specification and subsequently to others upon request.(c) Approved products list.(1) A manufacturer, vendor, or distributor may submit a product for inclusion in an established approved product list to the division, along with technical literature and product specifications. The product may then be tested and the results evaluated and compared with the minimum level of quality for the approved products list.(2) A product can be removed from the approved products list if:(A) the quality of a given product is decreased; or(B) the minimum level of quality for the approved products list is increased in order to provide the quality of products required by state agencies.",
            "sourceNote": "Source Note: The provisions of this §20.183 adopted to be effective January 24, 2017, 42 TexReg 232."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182516&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182516",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.184",
                "label": "Requisitions and Specifications"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182517&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182517",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Requisitions.(1) A purchase is initiated by a state agency's submission of a requisition containing desired specifications and evaluation criteria either electronically or on a form provided or approved by the comptroller. The requisition must also include the agency's certification that funds are available for the purchase.(2) Following receipt of a requisition and supporting documentation, the comptroller shall review the materials submitted, and shall advise the state agency of any additional documentation required in order for the comptroller to begin the procurement solicitation process. When the comptroller has received all required documentation from the state agency, the comptroller will verify same to the state agency, and will endeavor to complete the requested procurement within 90 days thereafter.(3) The state agency is responsible for determining its need for a purchase and the comptroller may not question the agency's determination of need. However, the comptroller may require clarification of the specifications to foster open competition. If the agency's specifications unreasonably limit competition, the comptroller may require an additional written explanation.(4) If the good or service for which the state agency has identified a need has been previously procured by any state agency, the state agency shall include in the documentation submitted to the comptroller a certification that it has reviewed and considered in its development of specifications and evaluation criteria, all vendor performance reports previously submitted by user agencies for all previous contractors who have provided such good or service to state agencies.(b) Specifications.(1) The comptroller develops standard specifications for a number of goods purchased by the state and provides agencies with a list of the goods covered by the standard specifications. If an agency submits a requisition with non-standard specifications when an applicable standard specification exists, it must include an explanation as to why the standard specification is not being used.(2) If a state agency submits a requisition for the purchase of a product on the open market when an equivalent product is available for purchase under a term contract, it must include an acceptable explanation as to why the term contract product is not satisfactory.(3) The comptroller will review the specifications and evaluation criteria submitted by a state agency. The comptroller will not significantly change specifications or evaluation criteria without written approval from the agency, but it may correct typographical errors if doing so will not significantly change the specifications. Incorrect, inadequate, or incomplete requisitions may be returned to the agency, with a written explanation for the return and the requirements for acceptable re-submission.(4) The comptroller will normally specify delivery times that are standard in the industry. If a state agency requires shorter than standard delivery times, it must state the requirement in its requisition. If the delivery requirement can only be met by one vendor, written justification will be required. If an agency does not require early delivery but wishes to take advantage of it if available, the comptroller will state in the bid invitation that the ability to make early delivery may be a factor in making the award. In such cases, when it is to the state's advantage, the comptroller may award a contract to a bid other than the lowest priced bid after consulting with the agency. If the bid invitation contains no statement regarding early delivery, the comptroller may not consider early delivery in making an award.",
            "sourceNote": "Source Note: The provisions of this §20.184 adopted to be effective January 24, 2017, 42 TexReg 232."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182517&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182517",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.206",
                "label": "Procurement Methods"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208763&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208763",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) To procure goods or services, a state agency may use the following procurement methods as further prescribed by this subchapter:(1) competitive sealed bidding;(2) competitive sealed proposals;(3) proprietary purchases;(4) emergency procurements;(5) small purchases;(6) requests for offers; or(7) purchases by means of special contracting methods as otherwise specified in this subchapter.(b) In addition to the methods described in subsection (a) of this section, a state agency may use any other method of procurement authorized by statute.(c) Whenever possible, purchases are based on competitive bids.(d) Negotiation of contracts, including price, is permitted for:(1) purchases by means of competitive sealed proposals;(2) proprietary purchases or purchases of items for which there is only one source of supply;(3) emergency purchases when there is insufficient time to solicit bids;(4) purchases by means of requests for offers; and(5) proposed purchases in circumstances where the competitive solicitation has been advertised but the state agency has received only one acceptable bid, or no acceptable bids; provided, however, such negotiation may not result in a material change to the advertised specifications.",
            "sourceNote": "Source Note: The provisions of this §20.206 adopted to be effective January 24, 2017, 42 TexReg 233."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208763&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208763",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.207",
                "label": "Competitive Sealed Bidding"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208764&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208764",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Bid submission.(1) A state agency shall:(A) solicit proposals under this subchapter by making available an invitation for bids that contains all the information needed to make a responsive bid, the factors other than price that will be used to determine best value for the state, and the criteria that will be used to evaluate factors other than price; and(B) give public notice of the invitation for bids on the ESBD and distribute notice to the CMBL in the manner provided in this subchapter.(2) A bidder may withdraw its bid by written request at any time prior to the bid due date and time.(3) A bid received after the bid due date and time established by the bid invitation is a late bid and will not be considered.(4) A bid received which does not contain adequate bid identification information on the outside of the envelope will be opened to obtain such information and will then be processed as any other bid. If the incorrect information on the envelope causes the bid not to be considered in making an award, the bid will be considered invalid and rejected.(5) Bids by facsimile are not allowed except under exceptional circumstances and with the written approval of the purchasing agency prior to the bid due date and time.(6) An unsigned bid is not valid and will be disqualified.(7) When formal bids are required, bids may not be taken or accepted by telephone.(8) To claim a preference identified in Subchapter D, Division 2, of this chapter, a bidder shall mark the appropriate box on the preference form and provide sufficient documentation to demonstrate a determination that the bidder may receive the preference. If the appropriate box is not marked, a preference will not be granted unless other documents included in the bid sufficiently demonstrate that the bidder may receive the preference and is requesting the preference.(9) Bids will not be rejected for failure to return an addendum with the bid, if the change is noted on the bid or the product or service specification would not be changed by the addendum. It is the agency's discretion to determine whether the failure to attach an addendum renders the bid nonresponsive.(10) By signing and submitting a bid to a state agency, a bidder affirms that it has not given or offered any economic opportunity, employment, gift, loan, gratuity, special discount, trip, favor, or service to a public servant in connection with the bid, and that it does not intend to give or offer any of the foregoing in the future. Signing a bid with a false statement shall void the bid and any resulting contract.(b) Bid evaluation.(1) A state agency may accept or reject any bid or any part of a bid or waive minor technicalities in a bid, if doing so would be in the state's best interest.(2) A bid price may not be altered or amended after the bid due date and time except to correct mathematical errors in extension.(3) No increase in price will be considered after the bid due date and time. A bidder may reduce its price provided it is the lowest and best bidder and is otherwise entitled to the award.(4) Bid prices are considered firm for acceptance for 30 days from the bid due date and time for open market purchases and 60 days for term contracts, unless otherwise specified in the invitation for bids.(5) A bid containing a self-evident error may be withdrawn by the bidder prior to an award.(6) Bid prices which are subject to unlimited escalation will not be considered. A bidder may offer a predetermined limit of escalation in its bid and the bid will be evaluated on the basis of the full amount of the escalation.(7) A bid containing a material failure to comply with the advertised specifications shall be rejected.(8) All bids must be based on \"F.O.B. destination\" delivery terms unless otherwise specified.(9) If requested in the invitation for bids, samples must be submitted or the bid will be rejected. A state agency may require samples when essential to the assessment of product quality during bid evaluation. A state agency is not required to return samples.(10) When brand names are specified, bids on alternate brands will be considered if they otherwise meet specification requirements, unless the solicitation is designated as proprietary.(11) Expedited payment discounts are acceptable but are not considered in making an award. All cash discounts offered will be taken if they are earned by the agency.(12) No electrical item may be purchased unless the item meets applicable safety standards of federal and state law.(c) Contract Award.(1) All awards shall be made to the bidder that offers best value to the state, in compliance with the best value criteria in the invitation for bids while conforming to the advertised specifications.(2) In case of tie bids that cannot be resolved by application of one or more preferences described in §20.306 of this title (relating to Preferences), an award may be made by drawing lots.(3) A state agency shall document and retain the reasons for making an award in the contract file.",
            "sourceNote": "Source Note: The provisions of this §20.207 adopted to be effective January 24, 2017, 42 TexReg 233; amended to be effective May 1, 2022, 47 TexReg 2557."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208764&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208764",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.208",
                "label": "Competitive Sealed Proposals"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182520&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182520",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Availability of method. A state agency may follow the competitive sealed proposals procurement method to acquire goods or services if it determines that competitive sealed bidding and informal competitive bidding are not practical or are disadvantageous to the state.(b) Solicitation of proposals. A state agency shall:(1) solicit proposals under this subchapter by making available a request for proposals that contains all the information needed to submit a responsive proposal, the factors other than price that will be used to determine best value for the state, and the criteria that will be used to evaluate factors other than price; and(2) give public notice of the request for proposals on the ESBD and distribute notice to the CMBL in the manner provided in this subchapter.(c) Opening of proposals; respondent list. A state agency may not open proposals until the published deadline for submitting a proposal has passed, and shall maintain a list of respondents that submitted a proposal in response to each request for proposal.(d) Negotiation of proposals.(1) A state agency may discuss acceptable or potentially acceptable proposals with a respondent to assess its ability to meet the specifications of the solicitation. A potentially acceptable offer is any offer which the state agency determines to be reasonably considered for award selection. When the division is carrying out a request for proposals, it may invite a state agency to participate in discussions with respondents.(2) After receiving a proposal but before making an award, a state agency may permit the respondent to revise its proposal one or more times to obtain the best and final offer.(3) A state agency may not disclose information derived from proposals or discussions with a respondent to any competing respondent prior to award or cancellation of the solicitation.(4) A state agency shall provide each respondent that submitted an acceptable or potentially acceptable proposal an equal opportunity to discuss and revise proposals.(e) Contract award.(1) A state agency may award a contract to the respondent whose proposal offers the best value for the state.(2) A state agency shall refuse all offers if none is acceptable, and may refuse any offer that is not in the best interest of the state.(3) A state agency shall determine which proposal offers the best value for the state in accordance with Government Code, §§2155.074, 2155.075 and 2156.125, as applicable.(4) A state agency shall document and retain the reasons for making an award in the contract file.",
            "sourceNote": "Source Note: The provisions of this §20.208 adopted to be effective January 24, 2017, 42 TexReg 233; amended to be effective May 1, 2022, 47 TexReg 2558."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182520&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182520",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.209",
                "label": "Proprietary Purchases"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182521&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182521",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If the division finds that a state agency has submitted specifications or conditions of purchase which are proprietary to one vendor and do not permit an equivalent good or service to be supplied, the division may require the state agency to provide written justification before processing the procurement. Within 10 days thereafter, it will notify the agency of the need for a written justification. An agency may submit a written justification along with its requisition if it chooses to do so.(b) A written justification for the use of proprietary specifications or conditions shall:(1) contain an explanation of the need for the specifications or conditions;(2) state the reasons why any competing or equivalent products identified by the division are not satisfactory, addressing each such product individually;(3) contain any other information requested by the division; and(4) be signed by the agency head, the chairman of its governing body, or a person to whom such signature authority has been properly delegated in the agency's procurement plan, or in the case of an institution of higher education, by a person properly designated as a purchasing officer for the institution.(c) When a state agency submits a written justification meeting the requirements of subsection (b) of this section, the division shall make the requested purchase.(d) If a review of the state agency's proposed specifications or conditions by the division shows that competition will be unduly limited and are not proprietary to one vendor, the division shall inform the state agency of the limiting effect caused by the specification or condition and its possible economic effect.",
            "sourceNote": "Source Note: The provisions of this §20.209 adopted to be effective January 24, 2017, 42 TexReg 233."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182521&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182521",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.210",
                "label": "Emergency Procurements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208765&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208765",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Emergency procurement requirements over $25,000 must be posted to the ESBD, but the minimum posting times in this subchapter do not apply.(b) In addition to the posting requirements for emergency procurements set forth in this subchapter, all other comptroller procedures governing emergency procurement requirements in §20.82 of this title (relating to Delegated Purchases) apply.",
            "sourceNote": "Source Note: The provisions of this §20.210 adopted to be effective January 24, 2017, 42 TexReg 233."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208765&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208765",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.211",
                "label": "Small Purchases"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182523&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182523",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "For purchases of goods which the purchasing agency estimates to be of a total value of $10,000 or less, the purchasing agency shall conduct such procurements in compliance with the processes outlined in the state procurement manual and contract management guide described in §20.131 of this title (relating to Procurement Manual and Contract Management Guide).",
            "sourceNote": "Source Note: The provisions of this §20.211 adopted to be effective January 24, 2017, 42 TexReg 233; amended to be effective May 1, 2022, 47 TexReg 2559."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182523&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182523",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.212",
                "label": "Reverse Auction"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182524&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182524",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Pursuant to Government Code, §2155.062(a)(4) and (d), the comptroller may use the reverse auction procedure as a method of purchasing goods and services. In this competitive method of purchasing, bidding is a real time process lasting for a specified period of time, during which multiple suppliers anonymous to each other submit bids to provide the designated goods or services to an internet location.",
            "sourceNote": "Source Note: The provisions of this §20.212 adopted to be effective January 24, 2017, 42 TexReg 233."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182524&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182524",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.213",
                "label": "Internal Repair Procurements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208766&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208766",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "An internal repair is defined as a repair where the extent of the work cannot be determined until the equipment is disassembled. An internal repair must contain labor and may also include parts. Internal repairs over $25,000 must be posted to the ESBD, but the minimum posting times in this subchapter do not apply.",
            "sourceNote": "Source Note: The provisions of this §20.213 adopted to be effective January 24, 2017, 42 TexReg 233."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208766&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208766",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.214",
                "label": "Notice and Information Posting and Distribution"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208767&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208767",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Each state agency shall post its own notices or solicitations on the ESBD.(b) Each state agency that issues a solicitation estimated to exceed $25,000 shall post on the ESBD and issue to all bidders in the relevant categories and regions that were listed on the Centralized Master Bidders List at the time of the solicitation:(1) either the entire solicitation or a notice that includes all information necessary to make a responsive response, including the following minimum information required for each procurement as outlined in Government Code, §2155.083(g) and §2155.075:(A) a brief description of the goods or services to be procured and any applicable NIGP class and item code for the goods and services;(B) the last date and time on which responses will be accepted;(C) the estimated quantity of goods or services to be procured;(D) the estimated date on which the goods or services to be procured will be needed; and(E) the name, business mailing address, e-mail address, and business telephone number of the state agency employee a person may contact to inquire about all necessary information related to making a response; or(2) a notice when the state agency has either awarded or decided to not award a contract resulting from the solicitation; and(3) notice of each addendum to the solicitation.(c) At least two months before a state agency issues a solicitation estimated to exceed $20 million in value, it shall post a notice of intent to procure the goods and services to be solicited on the ESBD, including applicable NIGP class and item codes. The notice must appear on the ESBD for at least two months. This subsection does not apply to a solicitation issued by the comptroller under Government Code, §2155.061.(d) Posting notices or information on the ESBD does not fulfill a requirement to distribute the posted material to vendors on the CMBL. A state agency that is required to distribute notices or information to vendors on the CMBL must do so by mail or email even if it posts the same notices or information on the ESBD.",
            "sourceNote": "Source Note: The provisions of this §20.214 adopted to be effective January 24, 2017, 42 TexReg 233; amended to be effective May 1, 2022, 47 TexReg 2559."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208767&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208767",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.215",
                "label": "Posting Time Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182527&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182527",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Entire solicitation. If the state agency posts the entire solicitation package, including attachments, the solicitation must be posted until the latest of:(1) 14 calendar days after the date the solicitation package is first posted; or(2) the date the state agency will no longer accept responses, which must be at least 14 calendar days after the date the solicitation package is first posted.(b) Notice of solicitation. If documents or attachments related to the solicitation must be obtained from another source, a notice of solicitation must be posted until the latest of:(1) 21 calendar days after the date the notice is first posted; or(2) the date the state agency will no longer accept responses, which must be at least 21 calendar days after the date the notice is first posted.(c) Notice of award or cancellation. If the state agency awards the contract or decides not to make the procurement, the state agency must post a notice to indicate the effective date of the cancellation or award within two business days of canceling or awarding the solicitation.(d) Addenda or notices of addenda. Each addendum to a solicitation must be posted no later than the next business day after it was released to any potential bidder. If in the state agency's judgment, a bidder may need to adjust its response to account for information contained in an addendum, the state agency shall reasonably extend the time and date after which it will no longer accept responses.",
            "sourceNote": "Source Note: The provisions of this §20.215 adopted to be effective January 24, 2017, 42 TexReg 233; amended to be effective May 1, 2022, 47 TexReg 2560."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182527&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182527",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.216",
                "label": "Posting Follow-up and Record Keeping"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182528&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182528",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A copy of the solicitation posting will automatically be sent electronically to the registered agent's e-mail address, if an e-mail address was provided on the user registration form. If the registered agent does not have e-mail access, it is the responsibility of the registered agent to use the print features of the Internet browser software to produce a hard copy of the posting for permanent record keeping as part of the contract file.(b) The ESBD will automatically purge postings according to the bid opening date entered by the registered agent. Each state agency is responsible for ensuring the procurement contract solicitation remains posted for the minimum number of days, as set forth in Government Code, §2155.083 and these rules.",
            "sourceNote": "Source Note: The provisions of this §20.216 adopted to be effective January 24, 2017, 42 TexReg 233."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182528&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182528",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.217",
                "label": "Verification of Use of Best Value Standards"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182529&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182529",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The contract manager or procurement director of each state agency shall:(1) approve each state agency contract for which the agency is required to purchase goods or services using the best value standard;(2) ensure that, for each contract, the agency documents the best value standard used for the contract;(3) acknowledge in writing that the agency complied with the agency's and comptroller's contract management guide and the state procurement manual in the purchase; and(4) ensure that the state agency shall evaluate the contractor's performance based on:(A) information prepared by the agency in planning the procurement that assessed the need for the purchase together with the specifications for the good or service and the criteria to evaluate the responses resulting in an award and contract;(B) compliance with the material terms of the contract;(C) ability to correct instances of contractual non-compliance; and(D) other evaluation criteria presented in the on-line vendor performance tracking system.(b) In determining which bidder is offering the best value, in addition to price, the state agency may consider and evaluate the factors set out in Government Code, Title 10, Subtitle D, Subchapter A, §§2155.074, 2155.075, 2156.007, 2157.003 and 2157.125, and all other factors comprising the best value criteria as may be set forth in the solicitation.",
            "sourceNote": "Source Note: The provisions of this §20.217 adopted to be effective January 24, 2017, 42 TexReg 233."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182529&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182529",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.218",
                "label": "Contract With Value Exceeding $5 Million"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182530&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182530",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "For each state agency contract for the purchase of goods or services that has a value exceeding $5 million, the contract management office or procurement director of the agency must:(1) verify in writing that the solicitation and purchasing methods and contractor selection process comply with state law and agency policy; and(2) submit to the governing body of the agency, or governing official of the agency if the agency is not governed by a multimember governing body, information on any potential issue that may arise in the solicitation, purchasing, or contractor selection process.",
            "sourceNote": "Source Note: The provisions of this §20.218 adopted to be effective January 24, 2017, 42 TexReg 233."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182530&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182530",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.219",
                "label": "Award Notification"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182531&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182531",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Each state agency's registered agent must record the action resulting from the posting of each procurement contract solicitation into the ESBD using the prescribed form or electronic file transfer. This includes contracts awarded and procurement contract opportunities canceled by the state agency.(b) The procurement contract award notice shall include the following minimum information:(1) agency name, mailing and physical address, and contact name;(2) purchase requisition number for procurement contract solicitation;(3) contract award recipient information to include company name, mailing address, and the comptroller's historically underutilized business certification status, if applicable; and(4) dollar amount of award.(c) Cancellation notices will include the following minimum information:(1) agency name, business address, and contact name;(2) purchase requisition number; and(3) reason for cancellation.(d) Upon posting of the contract award notification information in the form, the registered agent will receive an e-mail notification of the posting.",
            "sourceNote": "Source Note: The provisions of this §20.219 adopted to be effective January 24, 2017, 42 TexReg 233."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182531&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182531",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.220",
                "label": "Term Contracts"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182532&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182532",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The comptroller enters into term contracts for the purchase or lease of goods or services used in large quantities by several state agencies. The term of the contract is determined by the comptroller.(1) Bid invitations.(A) The comptroller maintains records of the quantities and/or dollar volumes purchased under term contracts during the previous year, and includes this information in bid invitations. Term contracts are established for estimated quantities only, however, and do not guarantee that the state will order any given amount during the contract period.(B) Term contracts may be either firm price or firm fixed price contracts with escalation and de-escalation.(2) Awards.(A) The comptroller will notify a successful bidder of the acceptance of its bid by issuing a notice of award. The successful bidder must review the notice of award and notify the comptroller in writing within 5 days of any error requiring correction.(B) Performance bonds may be required for each award exceeding $100,000.(3) Delivery requirements.(A) All items shipped by a contractor must be new (unless otherwise specified in a purchase document) and received by the agency in first-class condition within the specified time.(B) All merchandise shipped against the contract order during the term of the contract must be as the contractor originally quoted. If items become unavailable during the term of a contract, the comptroller may require the contractor to furnish acceptable substitutes.",
            "sourceNote": "Source Note: The provisions of this §20.220 adopted to be effective January 24, 2017, 42 TexReg 233."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182532&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182532",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.221",
                "label": "Special Rules for Contract Awards Requiring an Open Meeting"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=211360&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "211360",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The purpose of this section is to provide for the efficient and effective administration of the provisions of the Government Code relating to certain contract awards by the division in compliance with Government Code, §2155.086.(b) Except as otherwise provided, this section applies to the award of a contract by the division that:(1) relates to the powers and duties transferred to the comptroller under Government Code, §2151.004(d);(2) is reasonably expected by the division at the time of the award to have a value of $100,000 or more over the life of the contract; and(3) is evaluated based wholly or partly on best value factors other than cost.(c) This section does not apply to:(1) the award of a contract by the chief clerk on behalf of divisions of the comptroller other than the division, or for multiple divisions of the comptroller that also include the division, that do not relate to the powers and duties transferred to the comptroller under Government Code, §2151.004(d);(2) the award of a contract by any state agency, local government or any other authorized entity under a statewide or master contract established by the division, including without limitation, a state term contract or Texas multiple award schedule contract;(3) any part of the contracting process other than the award, including without limitation planning, budgeting, solicitation, pre-response conference, respondent presentation, evaluation, development of staff or evaluation committee recommendations, negotiation, and signature;(4) a renewal, extension, or amendment of a contract provided for in the written solicitation for the original contract;(5) an emergency purchase or other contract award for which delay would create a hazard to life, health, safety, welfare, or property or would cause undue additional cost to the state;(6) the award of a contract by any state agency, local government or any other authorized entity under a contract that is not subject to or otherwise exempt from submission to, delegation by or other authority of the division; or(7) reverse auctions or any other purchase method that does not involve consideration and evaluation, prior to contract award, by the division on best value evaluation factors other than cost.(d) As used in this section, the chief clerk of the comptroller includes the chief clerk or his or her designee.(e) To award a contract to which this section applies, the chief clerk shall chair and conduct a public meeting to make the contract award. The chief clerk shall determine the time and location for the meeting. The meeting must comply with the applicable provisions of Government Code, Chapter 551, including requirements relating to posting notice of the meeting. The division shall post notice of the meeting on its website and in the state business daily. The office of the attorney general shall advise the chief clerk and the division on the applicable provisions of Chapter 551 upon request.(f) Before the open meeting, the chief clerk may review any written recommendations for the proposed contract award submitted by the staff of the division or by an evaluation committee established by the division for the proposed contract. The chief clerk may discuss and review these written recommendations for proposed contract award with the staff or evaluation committee prior to the open meeting and may request that additional or clarifying written information be obtained for presentation in the public meeting. The chief clerk shall make the staff's or committee's final written recommendations available to the public at the meeting.(g) A contract awarded by the chief clerk under this section is not considered final and does not bind the state until all negotiations are completed, if applicable, and all parties to the contract have signed the final contract.(h) The division shall post notice of a contract award made in an open meeting under this section on its website and in the state business daily.(i) The division shall post the text of a contract awarded in an open meeting under this section on its website and in the state business daily, except for information in a contract that is not subject to disclosure under Government Code, Chapter 552. Information that is not subject to disclosure under Chapter 552 shall be referenced in an appendix that generally describes the information without disclosing the specific content of the information.(j) In making the determination of whether a contract is reasonably expected to have a value of $100,000 over the life of the contract, the division may review all available information, including available renewals or extensions, pricing or quantity options, purchase requisitions, estimated budgets, legislative appropriations, market research, previous similar contracts, total previous agency purchase orders under a statewide contract and other pertinent information. For open market awards where the division is requested to evaluate and award a purchase order for an agency or other authorized entity, the division may consider an agency's expectation of contract value along with other available information.(k) The emergency standard is a purchase or other contract award for which delay would create a hazard to life, health, safety, welfare, or property or would cause undue additional cost to the state. An agency's or other authorized entity's documentation to support a request for an emergency contract award by the division is the same documentation as that which would reasonably support an agency's own emergency purchase.",
            "sourceNote": "Source Note: The provisions of this §20.221 adopted to be effective January 24, 2017, 42 TexReg 233."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=211360&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "211360",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.222",
                "label": "Methods for Procuring Automated Information Systems, including Request for Offers Method"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182535&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182535",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as provided for in subsection (b) of this section, state agencies must purchase from Department of Information Resources (DIR) cooperative contracts those automated information systems that are designated as commodity items by Government Code, §2157.068.(b) A state agency is not required to use DIR cooperative contracts to purchase a commodity item if:(1) the state agency has obtained an exemption from DIR for the purchase of the commodity item;(2) DIR has certified in writing that the commodity item is not available for purchase under an existing DIR cooperative contract;(3) the state agency has obtained approval from the Legislative Budget Board under Government Code, §2157.068(f), for the purchase of the commodity item;(4) the contract for the commodity item is valued at more than $5 million; or(5) the state agency is otherwise exempt from Government Code, §2157.068.(c) The comptroller designates the request for offers method as the primary purchasing method for procuring automated information systems, including commodity items not procured through DIR. However, in addition to the request for offers method, state agencies may purchase automated information systems using a purchasing method designated by the comptroller to obtain best value for the state.(d) The procurement of automated information systems must comply with the procurement manual and contract management guide described in §20.131 of this title (relating to Procurement Manual and Contract Management Guide).(e) The determination of best value for the purchase of an automated information system is governed by Government Code, §2157.003.(f) The request for offers method is a direct purchase or lease method that contains, at a minimum, the following:(1) publication of an open and competitive solicitation, in writing, seeking request for offers for the needed automated information system;(2) evaluation of written offers received from qualified vendors as defined in subsection (g) of this section;(3) disqualification of offers from vendors that do not meet the minimum requirements of the request for offer or that are not capable of providing the needed automated information system; and(4) award to the qualified vendor or vendors providing best value to the state.(g) A qualified vendor for purposes of this section is a vendor that meets the minimum requirements of the request for offers and is capable, as determined by the state agency, of providing the needed automated information system.(h) If a state agency believes that the needed automated information system may be proprietary to one vendor under Government Code, §2155.067, it shall include the following statement in bold and prominent type at the beginning of the request for offer: \"Although the requested items in this request for offers appear to be proprietary to one vendor under Government Code, §2155.067, all qualified respondents that may be able to provide the requested items are encouraged to submit offers.\"(i) A state agency does not need approval or delegation of authority from the comptroller to use the request for offers method.(j) The request for offers method permits negotiation of contracts, including negotiation of price.",
            "sourceNote": "Source Note: The provisions of this §20.222 adopted to be effective December 19, 2022, 47 TexReg 8279."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182535&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182535",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.231",
                "label": "Multiple Award Contracts Procedure"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182536&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182536",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The comptroller or a state agency may use the multiple award contract procedure only after the director or the agency's purchasing director has made a written determination that its use is in the best interest of the state. In arriving at a determination, the director or the agency will consider the following factors:(1) the quality, availability, and reliability of the supplies, materials, equipment, or service and their adaptability to the particular use required;(2) the ability, capacity, and skill of the bidder;(3) the sufficiency of the bidder's financial resources;(4) the bidder's ability to provide maintenance, repair parts, and service;(5) the compatibility with existing equipment;(6) the need for flexibility in evaluating new products on a large scale before becoming contractually committed for all use; and(7) any other relevant factors.(b) When the director or procuring state agency's purchasing director finds that one or more of the above factors is important to the contract and that objective specifications for those factors cannot be prepared, the director or agency's purchasing director may determine that the multiple award contract procedure will serve the best interest of the state.(c) Bids on multiple award invitations will be evaluated as are other bids under §20.207(b) of this title (relating to Competitive Sealed Bidding), except that more than one award may be made. The basis for determining awards shall be reasonably related to the factors relied upon in using the multiple award contract procedure and shall be disclosed in the bid invitation.",
            "sourceNote": "Source Note: The provisions of this §20.231 adopted to be effective January 24, 2017, 42 TexReg 234."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182536&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182536",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.232",
                "label": "Multiple Award Schedule"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182537&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182537",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Pursuant to Government Code, §2155.502, the comptroller will develop a schedule of multiple award contracts.(b) All contracts on schedule shall meet the following standards:(1) have been previously awarded using a competitive process by the federal government or any other governmental entity in any state;(2) have agreed to the State of Texas General Terms and Conditions, including rules adopted by the comptroller;(3) comply with all applicable state and federal procurement requirements; and(4) any other applicable federal requirements.(c) The director is authorized to take actions necessary to implement this section.(d) Information on how to register for or use this schedule is to be listed on the comptroller website.(e) The comptroller may collect a sales rebate from a vendor under a contract developed as a multiple award schedule. The rebate shall be based on a percentage of a vendor's quarterly sales and shall not exceed the current Industrial Fund Fee (IFF) assessed by the Federal General Services Administration (GSA).(f) If a purchase resulting from the rebate is made in whole or in part with federal funds, the appropriate portion of the rebate is to be reported to the purchasing agency for reporting and reconciliation purposes with the appropriate federal funding agency.",
            "sourceNote": "Source Note: The provisions of this §20.232 adopted to be effective January 24, 2017, 42 TexReg 234."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182537&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182537",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.233",
                "label": "Multiple Award Schedule Contract Purchases Exceeding $25,000"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182538&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182538",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "All multiple award schedule contract purchases with a total value exceeding $25,000 must be posted on the ESBD after the purchase order has been placed. The minimum posting times in this subchapter do not apply.",
            "sourceNote": "Source Note: The provisions of this §20.233 adopted to be effective January 24, 2017, 42 TexReg 234."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182538&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182538",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.234",
                "label": "Lease-Purchase Contracts"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182539&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182539",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An agency may acquire capital equipment by lease-purchase if it is cost effective.(b) If a proposed lease purchase is for information resources technologies, as defined in Government Code, Title 10, Chapter 2054, Subchapter A, the requisition must include written evidence that the Department of Information Resources has approved the agency's biennial operating plan. For other items, the division will determine the cost effectiveness of a lease purchase. To establish cost effectiveness, the requisitioning agency should submit the following information:(1) anticipated interest charges over the life of the contract;(2) anticipated cost savings which would result from outright purchase;(3) an affirmative statement that the agency reasonably expects to be able to make payments beyond the current biennium without requiring an increase in appropriations;(4) any information requested by the comptroller; and(5) any other information the agency considers relevant.",
            "sourceNote": "Source Note: The provisions of this §20.234 adopted to be effective January 24, 2017, 42 TexReg 234."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182539&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182539",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.235",
                "label": "Purchase of Motor Vehicles"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182540&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182540",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A state agency may not purchase or lease a vehicle designed or used primarily for the transportation of persons, including a station wagon, that has a wheel base longer than 113 inches or that has more than 160 SAE net horsepower, except that the vehicle may have a wheel base of up to 116 inches or SAE net horsepower of up to 280 if the vehicle will be converted so that it is capable of using compressed natural gas or another alternative fuel that results in comparably lower emissions of oxides of nitrogen, volatile organic compounds, carbon monoxide, or particulates. The wheel base and horsepower limitations prescribed by this subsection do not apply to the purchase or lease of a vehicle to be used primarily for criminal law enforcement or a bus, motorcycle, pickup, van, truck, three-wheel vehicle, tractor, or ambulance.(b) Except as provided in subsections (c) and (d) of this section, after September 1, 1991, no motor vehicle may be purchased or leased for a state agency operating a fleet of more than 15 vehicles, excluding law enforcement and emergency vehicles, unless that vehicle is an alternative fuel vehicle.(c) Requisitions for purchase or lease of vehicles after September 1, 1991, to a state agency operating a fleet of more than 15 vehicles, excluding law enforcement or emergency vehicles, will not be processed by the comptroller unless the requisition specifies an alternative fuel vehicle, or is accompanied by a request for waiver in accordance with §20.438 of this title (relating to Effective Waiver), or a current and valid waiver issued under that section is on file with the comptroller. If the requisition specifies an alternative fuel vehicle as a result of a conversion, it must contain certification as to the anticipated time after delivery that the conversion will be completed. The conversion must be completed prior to the vehicle being placed in service, unless hardship would result. In the case of potential undue hardship, the comptroller may approve use of the vehicle for one or more periods of 90 days following delivery before it is converted. A request for waiver submitted with a requisition will be referred to the division travel and transportation staff and will be granted or denied in accordance with §20.438 of this title.(d) If a waiver is granted or is on file, the comptroller will process the purchase requisition without undue delay. If a waiver request is denied, the comptroller will return the requisition to the agency without further processing.(e) In accordance with Government Code, §2158.0031, a state agency authorized to purchase passenger vehicles or other ground transportation vehicles for general use shall purchase economical, fuel-efficient vehicles assembled in the United States unless such a purchase would have a significant detrimental effect on the use to which the vehicles will be put.",
            "sourceNote": "Source Note: The provisions of this §20.235 adopted to be effective January 24, 2017, 42 TexReg 234."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182540&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182540",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.236",
                "label": "Buying Under Contract Established by an Agency other Than Comptroller"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182533&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182533",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A state agency may purchase goods or services under a contract made by another state agency other than the comptroller by complying with this rule.(b) Before making a particular purchase from a contract made by another state agency, the requesting state agency must notify the division in writing that the purchase is being considered. The notification must be signed by the agency's purchasing director and include a confirmation that a comptroller contract does not exist for similar goods or services. The agency notification should also disclose the terms of the other agency contract and capabilities of the vendor. The agency notification should include a justification that addresses how using the other agency contract will be more advantageous than creating a new contract. Relevant factors that may be considered in the justification are reduced administrative costs, increased responsiveness, and aggregate purchasing power, among others.(c) The authority to authorize a purchase under a contract made by another state agency other than the comptroller resides with the director. If the director determines that a lower price and overall best value is available through the comptroller or the goods or services are already available through a contract administered by the comptroller, it will so inform the requesting agency after receipt of the notification. Upon approval to use the other contract, the requesting agency shall utilize established purchasing procedures for the procurement.(d) When a contract created by another agency fulfills an unmet need for more than one agency, the director may endorse the contract of the other agency as a comptroller contract, and make it generally available to state agencies and other qualified ordering entities as appropriate.",
            "sourceNote": "Source Note: The provisions of this §20.236 adopted to be effective January 24, 2017, 42 TexReg 234."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182533&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182533",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.237",
                "label": "Purchasing from Interstate Compacts and Cooperative Agreements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182534&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182534",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Pursuant to Government Code, §2156.181, the comptroller may enter into compacts or cooperative purchasing agreements directly with one or more state governments, agencies of other states, or other governmental entities, or may participate in, sponsor, or administer a cooperative purchasing agreement through an entity that facilitates those agreements for the purchase of goods or services if the comptroller determines that the agreement would be in the best interest of the state.(b) In order for a compact or cooperative purchasing agreement to be considered for execution by the comptroller, a state agency shall submit a request to the comptroller that includes:(1) a copy of the compact or the agreement;(2) documentation identifying the procurement process for the requested contract;(3) a needs assessment by the state agency identifying the goods or services that the state agency intends to purchase; and(4) the evaluation criteria supporting the determination that the agreement provides the best value to the state or state agency for the needed goods and services.(c) Before submitting the compact or cooperative purchasing agreement to the comptroller, the director shall review the agreement and prepare a recommendation after considering:(1) the level of competition in the procurement process for the agreement;(2) the benefits and advantages to the state agency and the state by executing the agreement;(3) the costs imposed by the agreement including any fees imposed by the agreement; and(4) whether the agreement provides the best value to the state compared to other procurement options available to the state.(d) Before entering into such compacts or cooperative purchasing agreements, the director shall present the proposal and recommendation to the comptroller for approval.",
            "sourceNote": "Source Note: The provisions of this §20.237 adopted to be effective January 24, 2017, 42 TexReg 234."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182534&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182534",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "C",
                "label": "PROCUREMENT METHODS AND CONTRACT FORMATION"
            },
            "rule": {
                "number": "§20.238",
                "label": "Texas Department of Criminal Justice Purchases"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214407&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214407",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Pursuant to Government Code, §2155.065, the comptroller is authorized to make contracts for the purchase of goods and services from the Texas Department of Criminal Justice (TDCJ) for use by other qualified ordering entities. The commission may notify agencies of the availability of TDCJ-produced goods and services by issuing catalog pages listing the approved items in a manner suited to the product available for purchase.(b) State agencies must purchase such items from TDCJ unless a written waiver has been secured from TDCJ.(c) Orders for such items will be placed with TDCJ in a manner mutually agreed upon. For purchases within an agency's delegated authority, items not on contract may be ordered directly from TDCJ based on formal or informal quotations as appropriate for the value of the purchase.",
            "sourceNote": "Source Note: The provisions of this §20.238 adopted to be effective January 24, 2017, 42 TexReg 234."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214407&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214407",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "D",
                "label": "SOCIO-ECONOMIC PROGRAM"
            },
            "rule": {
                "number": "§20.281",
                "label": "Policy and Purpose"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214408&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214408",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "It is the policy of the comptroller to encourage the use of historically underutilized businesses (HUBs) by state agencies and to assist agencies in the implementation of this policy through race, ethnic, and gender-neutral means. The purpose of the HUB program is to promote full and equal business opportunities for all businesses in an effort to remedy disparity in state procurement and contracting in accordance with the HUB utilization goals specified in the State of Texas Disparity Study.",
            "sourceNote": "Source Note: The provisions of this §20.281 adopted to be effective January 24, 2017, 42 TexReg 235; amended to be effective August 9, 2023, 48 TexReg 4268."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214408&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214408",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "D",
                "label": "SOCIO-ECONOMIC PROGRAM"
            },
            "rule": {
                "number": "§20.282",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214409&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214409",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this division, shall have the following meanings, unless the context clearly indicates otherwise. Additional applicable definitions are located in §20.25 of this title.(1) Applicant--A corporation, sole proprietorship, partnership, joint venture, limited liability company, or other business organization that applies to the comptroller for certification as a historically underutilized business.(2) Application--The information, documents, and representations submitted by an applicant that constitute its request for certification as a historically underutilized business.(3) Commodities--Any tangible goods.(4) Disparity study--The State of Texas Disparity Study - 2009, conducted by MGT of America, Inc., dated March 30, 2010, or any updates of the study that are prepared on behalf of the state as provided by Government Code, §2161.002(c).(5) Economically disadvantaged person--Has the meaning assigned by Government Code, §2161.001(3).(6) Graduation--When a certified HUB exceeds the size standards and becomes ineligible for continued certification as a result.(7) Historically underutilized business (HUB)--A business organization described in subparagraphs (A) - (F) of this paragraph that is certified by the comptroller because it has not exceeded the size standards established by §20.294 of this title, maintains its principal place of business in Texas, and is:(A) a corporation formed for the purpose of making a profit in which at least 51% of all classes of the shares of stock or other equitable securities are owned by one or more qualifying owners;(B) a sole proprietorship created for the purpose of making a profit that is 100% owned, operated, and controlled by a qualifying owner;(C) a partnership formed for the purpose of making a profit in which 51% of the assets and interest in the partnership is owned by one or more qualifying owners;(D) a joint venture in which each entity is a HUB;(E) a supplier contract between a HUB and a prime contractor under which the HUB is directly involved in the manufacture or distribution of the supplies or materials or otherwise warehouses and ships the supplies; or(F) a business other than described in subparagraphs (B), (C), (D), and (E) of this paragraph, which is formed for the purpose of making a profit and is otherwise a legally recognized business organization under the laws of the State of Texas, provided that at least 51% of the assets and 51% of any classes of stock and equitable securities are owned by one or more qualifying owners.(8) Historically underutilized business (HUB) coordinator--The staff member designated by a state agency to be primarily responsible for overseeing the implementation of HUB laws and monitoring attainment of HUB utilization goals.(9) HUB directory--The Historically Underutilized Business Directory published on the comptroller's website.(10) HUB subcontracting plan--Written plan identifying whether a contract will be self-performed or include the use of subcontractors, which subcontractors will be used, how much of the contract each subcontractor will receive, and how subcontractors were selected.(11) Mentor-Protégé Program--A program designed by the comptroller to encourage agencies to work with prime contractors and HUBs to foster long-term relationships.(12) Non-treasury funds--Funds that are not state funds subject to the custody and control of the comptroller and available for appropriation by the legislature.(13) Other services--All services other than construction and professional services, including consulting services subject to Government Code, Chapter 2254, Subchapter B.(14) Person--A human being.(15) Principal place of business--The location where the qualifying owner or owners of the business direct, control, and coordinate the business's daily operations and activities.(16) Professional services--Services of certain licensed or registered professions that must be purchased by state agencies under Government Code, Chapter 2254, Subchapter A.(17) Qualifying owner--A person who:(A) is a resident of the State of Texas;(B) has a proportionate interest and demonstrates active participation in the control, operation, and management of an applicant;(C) is a member of one of the following groups:(i) Black Americans, which includes persons having origins in any of the Black racial groups of Africa;(ii) Hispanic Americans, which includes persons of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish or Portuguese culture or origin, regardless of race;(iii) American Women, which includes all women of any ethnicity except those specified in clauses (i), (ii), (iv), and (v) of this subparagraph;(iv) Asian Pacific Americans, which includes persons whose origins are from Japan, China, Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Samoa, Guam, the U.S. Trust Territories of the Pacific, the Northern Marianas, and Subcontinent Asian Americans which includes persons whose origins are from India, Pakistan, Bangladesh, Sri Lanka, Bhutan or Nepal;(v) Native Americans, which includes persons who are American Indians, Eskimos, Aleuts, or Native Hawaiians; and(vi) Service-disabled Veterans, which includes veterans as defined by 38 U.S.C. §101(2) who have suffered at least a 20% service-connected disability as defined by 38 U.S.C. §101(16) who are not Black Americans, Hispanic Americans, American Women, Asian Pacific Americans, or Native Americans; and(D) is a U.S. citizen, born or naturalized, or a service-disabled veteran as defined by 38 U.S.C., §101(2) who has suffered at least a 20% service-connected disability as defined by 38 U.S.C., §101(16).(18) Resident of the State of Texas-- An individual who:(A) physically resides in the state for a period of not less than six consecutive months prior to submitting an application for HUB certification, and lists Texas as their residency in their most recent tax return submitted to the U.S. Internal Revenue Service, or;(B) has established, to the satisfaction of the comptroller, a Texas domicile for a period of time sufficient to demonstrate their intention to permanently reside in the state consistently over a substantial period of time.(19) Response--A submission made in answer to an invitation for bid, request for proposal, or other purchase solicitation document, which may take the form of a bid, proposal, offer, or other applicable expression of interest.(20) Subcontractor--An entity that contracts with a prime contractor to work or contribute toward completing work under a purchase order or other contract. The term does not include employees of the contractor but includes contracted workers who will work on the contract.(21) Size standards--Graduation and eligibility thresholds established by the comptroller under §20.294 (relating to Graduation Procedures).(22) Term contract--A statewide contract established by the comptroller as a supply source for user entities for specific commodities or services.(23) Vendor Identification Number (VID)--A 13-digit identification number used in state government to identify the bidder or business for payment or award of contracts, certification as a HUB, and on the bidders list.(24) Work--Providing goods or performing services pursuant to a contract.(25) Working day--Normal business day of a state agency, not including weekends, federal or state holidays.",
            "sourceNote": "Source Note: The provisions of this §20.282 adopted to be effective January 24, 2017, 42 TexReg 235; amended to be effective August 9, 2023, 48 TexReg 4268."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214409&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214409",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "D",
                "label": "SOCIO-ECONOMIC PROGRAM"
            },
            "rule": {
                "number": "§20.283",
                "label": "Evaluation of Active Participation in the Control, Operation, and Management of Entities"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214410&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214410",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In determining the extent of active participation in the control, operation and management necessary for qualification as a HUB, the comptroller may consider all relevant evidence. In considering and applying the factors set forth in this subsection, the comptroller will consider actual roles and responsibilities of the qualifying owners, rather than titles or statements of intention regarding the owners' role. Factors which may be considered include, but are not limited to:(1) appearance and relative scope of responsibility of qualifying owners in articles of incorporation or partnership formation documents;(2) duties and rights of shareholders or partners relative to operational decisions affecting the short term and long term goals of the business;(3) any restrictive language in articles of incorporation or partnership agreements applicable to qualifying owner;(4) whether any licenses, certificates, or permits required to operate the business are held by or in the name of the qualifying owner, and whether the qualifying owner is qualified to hold such licenses or permits pursuant to applicable laws and regulations;(5) the percentages of profit and risk available to the qualifying owner under the corporate or partnership agreements;(6) ability of other owners or partners to dilute either the ownership percentage or operational powers of the qualifying owner;(7) whether the qualifying owner has full time employment elsewhere that might conflict with full participation in operation of the business;(8) the percentage of government versus non-government contracts performed by the business where the qualifying owner actively participates in the bidding of the contract or the performance of the work;(9) the period of time a qualifying owner participated in the active management and operation of the business prior to the business seeking HUB status; and(10) whether and to what extent the HUB business shares management, board members, partners, employees, or other resources with another business in amounts or ways which might indicate that they are related or affiliated businesses.(b) The comptroller may request any additional information it considers necessary to evaluate an applicant as a HUB.(c) Qualifying owners must be able to make independent and unilateral business decisions which guide the future and destiny of the business, and must be proportionately responsible for the direction and management of the business. Absentee or titular ownership by qualifying owners who do not take an active role in controlling and participating in the business is not consistent with the definition of a HUB.",
            "sourceNote": "Source Note: The provisions of this §20.283 adopted to be effective January 24, 2017, 42 TexReg 235; amended to be effective August 9, 2023, 48 TexReg 4268."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214410&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214410",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "D",
                "label": "SOCIO-ECONOMIC PROGRAM"
            },
            "rule": {
                "number": "§20.284",
                "label": "Statewide Annual HUB Utilization Goals"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214411&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214411",
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            "ruleBody": "(a) In accordance with §20.281 of this title (relating to Policy and Purpose) and Government Code, §2161.181 and §2161.182, each state agency shall make a good faith effort to utilize HUBs in contracts for construction, services (including professional and consulting services) and commodities purchases. Each state agency may achieve the statewide and the annual HUB utilization goals specified in the state agency's Legislative Appropriations Request by contracting directly with HUBs or indirectly through subcontracting opportunities.(b) The statewide HUB utilization goals are:(1) 11.2% for heavy construction other than building contracts;(2) 21.1% for all building construction, including general contractors and operative builders contracts;(3) 32.9% for all special trade construction contracts;(4) 23.7% for professional services contracts;(5) 26.0% for all other services contracts; and(6) 21.1% for commodities contracts.(c) State agencies shall establish HUB utilization goals for each procurement category identified in subsection (b) of this section. Agencies may set their HUB utilization goals higher or lower than the statewide utilization goals. However, the statewide HUB utilization goals shall be the starting point for establishing state agency-specific goals. State agency-specific HUB utilization goals shall be based on:(1) a state agency's fiscal year expenditures and total contract expenditures;(2) the availability to a state agency of HUBs in each procurement category;(3) the state agency's historic utilization of HUBs; and(4) other relevant factors.(d) Each state agency shall make a good faith effort to assist HUBs in receiving a portion of the total value of all contracts that the state agency expects to award in a fiscal year. Factors in determining a state agency's good faith shall include:(1) the state agency's performance in meeting or exceeding their HUB utilization goals or the statewide HUB utilization goals as they included as part of their legislative appropriations request in accordance with Government Code, §2161.127; and(2) the state agency's adoption and implementation of the following procedures:(A) prepare and distribute information on procurement procedures in a manner that encourages participation in state contracts by all businesses;(B) divide proposed requisitions into reasonable lots in keeping with industry standards and competitive bid requirements;(C) where feasible, assess bond and insurance requirements and design requirements that reasonably permit more than one business to perform the work;(D) specify reasonable, realistic delivery schedules consistent with a state agency's actual requirements;(E) ensure that specifications, terms, and conditions reflect a state agency's actual requirements, are clearly stated, and do not impose unreasonable or unnecessary contract requirements;(F) provide potential bidders with referenced list of certified HUBs for subcontracting;(G) develop and apply a written methodology to determine whether their HUB utilization goals are appropriate under the Disparity Study, or whether the statewide HUB utilization goals from the Disparity Study are appropriate for the state agency, and taking into account the provisions of Government Code, §2161.002(d);(H) identify potential subcontracting opportunities in all contracts and require a HUB subcontracting plan for contracts of $100,000 or more over the life of the contract (including any renewals), where such opportunities exist, in accordance with Government Code, §2161.251;(I) seek HUB subcontracting in contracts that are less than $100,000 whenever possible;(J) provide, at a state agency's option, courtesy reviews of respondents' HUB subcontracting plans required to be submitted with responses pursuant to Government Code, §2161.252; and(K) provide, at a state agency's option, HUB-subcontracting-plan-compliance training to potential respondents during pre-bid, pre-offer, and pre-proposal conferences, or at agency HUB forums.(e) A state agency may also demonstrate good faith under this section by submitting a supplemental letter with documentation to the comptroller with their HUB report or legislative appropriations request including other relevant information, such as:(1) identifying the percentage of contracts (prime and subcontracts) awarded to businesses that are not HUBs, but that are owned by economically disadvantaged persons as defined in Government Code, §2161.001;(2) demonstrating that a different goal from that identified in subsection (b) of this section was appropriate given the state agency's types of purchases;(3) demonstrating that a different goal was appropriate given the particular qualifications required by a state agency for its contracts;(4) demonstrating that a different goal was appropriate given that graduated HUBs cannot be counted toward the goal; or(5) demonstrating assistance to business entities in obtaining HUB certification.",
            "sourceNote": "Source Note: The provisions of this §20.284 adopted to be effective January 24, 2017, 42 TexReg 235; amended to be effective August 9, 2023, 48 TexReg 4268."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214411&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214411",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "D",
                "label": "SOCIO-ECONOMIC PROGRAM"
            },
            "rule": {
                "number": "§20.285",
                "label": "Subcontracts"
            },
            "nextRule": {
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                "recordId": "214412",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Analyzing potential contracts of $100,000 or more. In accordance with Government Code, Chapter 2161, Subchapter F, each state agency that considers entering into a contract with an expected value of $100,000 or more shall, before it solicits responses, determine whether subcontracting opportunities are probable under the contract.(1) State agencies shall use the following steps to determine if subcontracting opportunities are probable under the contract:(A) examine the scope of work to be performed under the proposed contract and determine if it is likely that some of the work may be performed by a subcontractor;(B) check the HUB directory for HUBs that may be available to perform the contract work; and(C) consider whether subcontracting is probable for only a subset of the work expected to be performed or the funds to be expended under the contract.(2) State agencies may consider additional sources of information regarding the probability of subcontracting, including:(A) information from other state agencies and local governments; and(B) information about past state contracts with similar scopes of work.(b) Requiring HUB subcontracting plans.(1) If a state agency determines that subcontracting opportunities are probable, the solicitation shall state that probability and explicitly require that any response include a completed HUB subcontracting plan to be considered responsive. The solicitation shall state the applicable HUB utilization goal, and provide information on where to find and how to complete the comptroller's HUB subcontracting plan form.(2) A state agency shall require HUB subcontracting plans to be submitted with each response. If a state agency permits responses to be submitted in parts, with deadlines for each part, the solicitation shall specify which deadline applies to the HUB subcontracting plan and shall not open responses until after the HUB subcontracting plan is due.(3) A state agency shall reject any response that does not include a completed and timely HUB subcontracting plan due to material failure to comply with Government Code, §2161.252(b).(4) If a properly submitted HUB subcontracting plan contains minor deficiencies, such as failure to sign or date the plan or failure to submit already-existing evidence that a good faith effort was completed, the state agency may allow the respondent to cure the minor deficiency. A state agency may not allow a respondent to cure material deficiencies, including completion of a good faith effort after the response deadline (such as contacting minority trade organizations or producing the statement of how the respondent intends to self-perform the work that is required by subsection (d)(4) of this section).(c) Completing a HUB subcontracting plan. The HUB subcontracting plan shall consist of a completed form prescribed by the comptroller, with attachments as appropriate.(d) Demonstrating good faith in the development of a HUB subcontracting plan. The HUB subcontracting plan must demonstrate that the respondent developed it in good faith. For each part of the work that the solicitation identified as a probable subcontracting opportunity and each part of the work that the respondent actually intends to subcontract, the respondent must demonstrate its good faith development of a HUB subcontracting plan by a method described in paragraphs (1)-(4) of this subsection.(1) Solicitation Method. To complete the solicitation method, the respondent shall comply with all requirements of this clause.(A) The respondent shall divide the work into reasonable lots or portions consistent with prudent industry practices.(B) The respondent shall notify, in writing, at least two trade organizations or development centers that serve economically disadvantaged persons, of the subcontracting opportunities that the respondent intends to subcontract.(C) The respondent shall notify, in writing, at least three HUBs of the subcontracting opportunities that the respondent intends to subcontract. The respondent shall provide the notice described in this subclause to three or more HUBs per subcontracting opportunity that provide the type of work required.(D) The notices required by subparagraphs (B) and (C) of this paragraph shall include the scope of work, information regarding location to review plans and specifications, information about bonding and insurance requirements, required qualifications, and other contract requirements and identify a contact person.(E) The respondent shall provide the notices required by subparagraphs (B) and (C) of this paragraph at least seven working days prior to submission of the response. Neither the day on which the notice is sent nor the day on which the respondent submits its response count as one of the required seven working days. A state agency may determine that circumstances require a different time period than seven working days but must notify potential vendors of the requirement and document the justification in the contract file.(F) The respondent shall submit documentation of having provided the notices required by subparagraphs (B) and (C) of this paragraph, including copies of relevant correspondence with the recipients, with its HUB subcontracting plan.(G) If the respondent selects a non-HUB business to perform a subcontract instead of a HUB that bid for the same subcontract work, the respondent shall include a written justification for the selection in its HUB subcontracting plan.(H) The respondent shall retain documentation of its compliance with each aspect of the solicitation method and submit it to the state agency upon request.(2) All-HUB-Subcontractors Method. The respondent may use the all-HUB-subcontractors method to demonstrate a good faith effort for any subcontracting opportunity by submitting documentation that 100% of subcontracting opportunities will be performed by HUBs.(3) Meeting-or-Exceeding-HUB-Goal Method. The respondent may use the meeting-or-exceeding-HUB-goal method to demonstrate a good faith effort for any subcontracting opportunity by submitting documentation that it will utilize one or more HUBs to perform subcontracts with a total value that will meet or exceed the HUB utilization goal identified by the procuring state agency in the solicitation.(4) Self-performing Method. The respondent may use the self-performing method to demonstrate a good faith effort for any subcontracting opportunity by providing a statement of how it intends to fulfill the entire contract, including each subcontracting opportunity, with its own equipment, supplies, materials, and employees. The respondent shall provide the following if requested by the procuring state agency:(A) evidence of existing staffing to meet contract objectives;(B) monthly payroll records showing employees engaged in the contract;(C) on-site reviews of company headquarters or work site where services are to be performed; and(D) documentation proving employment of qualified personnel holding the necessary licenses and certificates required to perform the work.(5) Subcontracting to a HUB Protégé. If the respondent is a mentor in a mentor-protégé agreement that is registered with the comptroller under §20.298 of this title (relating to Mentor-Protégé Program), the respondent may demonstrate a good faith effort for any subcontracting opportunity by subcontracting the work to its protégé.(6) The respondent shall use the HUB directory to identify HUBs. If the respondent uses any alternate source, it accepts the risk that its HUB subcontracting plan may be noncompliant due to inaccurate HUB certification information.(e) Accepting or rejecting the HUB subcontracting plan. The state agency shall review the respondent's HUB subcontracting plan prior to award. The HUB subcontracting plan shall become a provision of the state agency's contract. The agency and contractor may agree to revise the submitted HUB subcontracting plan in accordance with subsection (b)(4) of this section. State agencies shall review the documentation submitted by the respondent to determine if the respondent made a good faith effort. If the state agency determines that a HUB subcontracting plan was not developed in good faith or the good faith effort was incomplete, the state agency shall reject the response. The state agency shall document the reasons for rejection in the contract file.(f) Contractor records. The contractor shall maintain records documenting its compliance with the HUB subcontracting plan.(g) Progress assessment reports. The contractor shall submit a progress assessment report to the state agency with each invoice, in the format required by the comptroller. A state agency may, at its option, allow electronic submissions of the compliance report required by this subsection so long as the electronically-submitted compliance reports are in the format and contain all information required by the comptroller. The progress assessment report shall be a condition for payment.(h) Monitoring HUB subcontracting plan compliance.(1) During the term of the contract, the state agency shall monitor the contractor's subcontracting by reviewing each HUB progress assessment report to determine whether it complies with the HUB subcontracting plan. The state agency shall perform monitoring at intervals corresponding to invoice submissions. The state agency shall determine if the value of the payments to HUBs meets or exceeds the HUB subcontracting plan, and whether the contractor is utilizing only subcontractors named in the HUB subcontracting plan. The state agency shall document the contractor's performance in the contract file.(2) To determine if the contractor is complying with the HUB subcontracting plan, the state agency may consider the following:(A) whether the contractor gave timely notice to the subcontractor regarding the time and place of the subcontracted work;(B) whether the contractor facilitated access to the resources needed to complete the work; and(C) any other information the state agency considers relevant.(3) If the contractor fails to comply with the HUB subcontracting plan, the state agency shall notify the contractor of the deficiencies and give the contractor an opportunity to submit documentation and explain why its failure to fulfill the HUB subcontracting plan should not be attributed to a lack of good faith effort by the contractor. Any deficiencies identified by the state agency must be rectified by the contractor prior to the next reporting period.(4) The state agency shall report failure to comply with the HUB subcontracting plan to the comptroller in accordance with §20.509 of this title (relating to Vendor Performance Reporting). If the state agency determines that the contractor failed to implement the HUB subcontracting plan in good faith, the state agency may, in addition to any other remedies, bar the contractor from further contracting opportunities with the agency. The state agency may also report nonperformance to the comptroller for consideration for possible debarment pursuant to Government Code, §2155.077. A debarment for failure to implement the HUB subcontracting plan may be for a period of no more than five years.(i) Amending the HUB subcontracting plan.(1) Before the contractor performs or subcontracts any part of the contract in a manner that is not consistent with its HUB subcontracting plan, it shall submit an amended HUB subcontracting plan to the state agency for its review and approval. The contractor shall demonstrate good faith by complying with the requirements of subsection (d) of this section in the development of the amended HUB subcontracting plan. Failure to comply with this section may be deemed a breach of the contract subject to any remedies provided by Government Code, Chapter 2161 and other applicable law.(2) The state agency may approve requested changes to the HUB subcontracting plan by amending the contract. The reasons for amending the HUB subcontracting plan shall be recorded in the contract file.(3) If a state agency expands the scope of work through a change order or contract amendment, including a renewal that expands the scope of work, it shall determine if the additional scope of work contains additional probable subcontracting opportunities. If the state agency determines probable subcontracting opportunities exist, the state agency shall require the contractor to submit for its review and approval an amended HUB subcontracting plan for the additional probable subcontracting opportunities. The contractor shall demonstrate good faith by complying with the requirements of subsection (d) of this section in the development of the amended HUB subcontracting plan.",
            "sourceNote": "Source Note: The provisions of this §20.285 adopted to be effective January 24, 2017, 42 TexReg 235; amended to be effective August 9, 2023, 48 TexReg 4268."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214412&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214412",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "D",
                "label": "SOCIO-ECONOMIC PROGRAM"
            },
            "rule": {
                "number": "§20.286",
                "label": "State Agency Planning Responsibilities"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214413&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214413",
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            "ruleBody": "(a) Agencies are required to prepare a written HUB business plan, which shall provide for increasing the utilization of HUBs in purchasing, and in public works contracts in accordance with Government Code, §2161.123.(b) Pursuant to Government Code, §2161.003, state agencies shall adopt the comptroller's rules related to administering Government Code, Chapter 2161, Subchapters B and C.(c) Agencies must include a detailed report with their legislative appropriations request that shows the extent to which the agency complied with Government Code, Chapter 2161, and the rules of the comptroller relating to HUBs. The report should include the state agency's effort to identify HUBs for contracts and subcontracts, the agency's utilization of HUBs, and the agency's successes and shortfalls at increasing HUB participation.",
            "sourceNote": "Source Note: The provisions of this §20.286 adopted to be effective January 24, 2017, 42 TexReg 235; amended to be effective August 9, 2023, 48 TexReg 4268."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214413&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214413",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "D",
                "label": "SOCIO-ECONOMIC PROGRAM"
            },
            "rule": {
                "number": "§20.287",
                "label": "State Agency Reporting Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214414&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214414",
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            "ruleBody": "(a) Non-treasury funds. State agencies will report to the comptroller, not later than March 15 of each year regarding the previous six-month period and on September 15 of each year regarding the preceding fiscal year, the payments made for the purchase of goods and services awarded and actually paid from non-treasury funds by the state agency. The report shall include information requested by the comptroller and shall be in a form prescribed by the comptroller. State agencies' purchases from state term contracts or group purchases which are paid from non-treasury funds must be identified on the report as such so that they may be reflected on the comptroller's report of its own purchases.(b) Monthly information. State agencies shall maintain and compile monthly information relating to the use of HUBs by the agency and each of their operating divisions, including information regarding subcontractors and suppliers.(c) Spending totals. State agencies will report to the comptroller, not later than March 15 of each year regarding the previous six-month period and on September 15 of each year regarding the preceding fiscal year, the total dollar amount of HUB and non-HUB contracting and subcontracting participation in all of the agencies' contracts for the purchase of goods, services and public works. State agencies must include contracting and subcontracting participation paid from treasury and non-treasury funds.(d) Group purchasing report. State agencies that participate in a group purchasing program under Government Code, §2155.144 shall submit a separate report to the comptroller, not later than March 15 of each year regarding the previous six-month period and September 15 of each year regarding the preceding fiscal year, of purchases that are made through the group purchasing program and shall report the dollar amount of each purchase that is allocated to the reporting state agency.(e) Consolidated report. The comptroller shall prepare a consolidated report based on a compilation and analysis of the reports submitted by each state agency and other information available to the comptroller. These reports of HUB purchasing and contracts shall form a record of each state agency's purchases in which the state agency selected the contractor. If the contractor was selected by the comptroller as part of its state term contract program, the purchase will be reflected on the comptroller's report of its own purchases. The comptroller report will contain the following information:(1) the total dollar amount of payments made by each state agency;(2) the total number of HUBs paid by each state agency;(3) the total number of contracts awarded to HUBs by each state agency;(4) the number of responses received from HUBs by each state agency; and(5) the graduation rate of HUBs as defined in §20.294 of this title (relating to Graduation Procedures).(f) Report to legislature. On May 15 of each year, the comptroller shall submit the consolidated report regarding the previous six-month period and on November 15 of each year regarding the preceding fiscal year to the presiding officer of each house of the legislature, the members of the legislature and the joint select committee.(g) Determination of HUB expenditures. State agencies shall report as HUB expenditures the total payments made directly to certified prime and subcontractor HUBs under the Vendor Identification Number in the comptroller's HUB directory as follows:(1) A state agency shall report as HUB expenditures payments made to prime and subcontractor HUBs who were certified for at least one day during the reporting period.(2) When the prime contractor is a HUB, it must perform at least 25% of the total value of the contract with its own or leased employees, as defined by the Internal Revenue Service, in order for the state agency to report all payments to the prime contractor for the contract as HUB expenditures. If a HUB prime contractor performs less than 25% of the total value of contract with its employees or leased employees, the state agency shall only report as HUB expenditures the value of the contract that was actually performed by the contractor and its HUB subcontractors.",
            "sourceNote": "Source Note: The provisions of this §20.287 adopted to be effective January 24, 2017, 42 TexReg 235; amended to be effective August 9, 2023, 48 TexReg 4268."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214414&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214414",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "D",
                "label": "SOCIO-ECONOMIC PROGRAM"
            },
            "rule": {
                "number": "§20.288",
                "label": "Certification Process"
            },
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                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A business seeking certification as a HUB must submit an application through the online HUB certification system, affirming under penalty of perjury that the business qualifies as a HUB.(b) If requested by the comptroller, the applicant must provide any and all materials and information necessary to demonstrate a qualifying active participation in the control, operation, and management of the HUB.(c) A person claiming Texas residency must prove residency status by submitting:(1) a current valid Texas driver's license or I.D. card; and(2) additional evidence of residency satisfactory to the comptroller, such as an appraisal statement for Texas real property (including whether a homestead exemption was claimed for that real property) or most recent paid utility statements.(d) The comptroller shall certify the applicant as a HUB or provide the applicant with written justification of its denial of certification within 90 days after the date the comptroller receives an application.(e) The comptroller may reject an application based on one or more of the following:(1) the application is not satisfactorily completed;(2) the applicant does not meet the requirements of the definition of HUB;(3) the application contains false information;(4) the applicant does not provide required information in connection with the certification review conducted by the comptroller; or(5) the applicant has an unfavorable record of performance on prior contracts with the state.(f) The comptroller may approve the existing certification program of one or more local governments or nonprofit organizations in this state that certify historically underutilized businesses, minority business enterprises, women's business enterprises, or disadvantaged business enterprises that substantially fall under the same definition, to the extent applicable for HUBs found in Government Code, §2161.001, and maintain them on the comptroller's HUB directory, if the local government or nonprofit organization:(1) meets or exceeds the standards established by the comptroller and(2) agrees to the terms and conditions as required by statute relative to the agreement between the local government or nonprofits for the purpose of certification of HUBs.(g) The agreement in subsection (f) of this section must take effect immediately and contain conditions as follows:(1) allow for automatic certification of businesses certified by the local government or nonprofit organization as prescribed by the comptroller;(2) provide for the efficient updating of the HUB directory;(3) provide for a method by which the comptroller may efficiently communicate with businesses certified by the local government or nonprofit organization;(4) provide those businesses with information about the state's Historically Underutilized Business Program; and(5) require that a local government or nonprofit organization that enters into an agreement under subsection (f) of this section, complete the certification of an applicant with written justification of its certification denial within the period established by the comptroller in its rules for certification.(h) The comptroller will not accept the certification of a local government or nonprofit organization that charges money for the certification of businesses to be listed on the HUB directory.(i) The comptroller may terminate an agreement made under this section if a local government or nonprofit organization fails to meet the standards established by the comptroller for certifying HUBs. In the event of the termination of an agreement, those HUBs that were certified as a result of the agreement will maintain their HUB status during the fiscal year in which the agreement was in effect. Businesses which are removed from the HUB directory as a result of the termination of an agreement with a local government or nonprofit organization may apply to the comptroller for certification.(j) The certification is valid for a four-year period beginning on the date the comptroller certifies the applicant as a HUB. If the certification was granted by an organization other than the comptroller under subsections (f) and (g) of this section, it is valid for the period granted by that organization.",
            "sourceNote": "Source Note: The provisions of this §20.288 adopted to be effective January 24, 2017, 42 TexReg 235; amended to be effective August 9, 2023, 48 TexReg 4268."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214415&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214415",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "D",
                "label": "SOCIO-ECONOMIC PROGRAM"
            },
            "rule": {
                "number": "§20.289",
                "label": "Protests"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214416&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214416",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "An applicant may protest the comptroller's denial or revocation of certification by filing a protest through the online HUB certification system within 30 days after the date the comptroller sent notice of the denial or revocation to the applicant. The director will consider the protest and issue a final decision. The director's decision shall be the final administrative action of the comptroller.",
            "sourceNote": "Source Note: The provisions of this §20.289 adopted to be effective January 24, 2017, 42 TexReg 235; amended to be effective August 9, 2023, 48 TexReg 4268."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214416&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214416",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "D",
                "label": "SOCIO-ECONOMIC PROGRAM"
            },
            "rule": {
                "number": "§20.290",
                "label": "Recertification"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214417&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214417",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Upon expiration of the four-year period, a HUB that desires recertification must:(1) submit an application through the online HUB certification system; and(2) comply with the requirements specified in §20.288 of this title (relating to the Certification Process) which apply to the recertification process.",
            "sourceNote": "Source Note: The provisions of this §20.290 adopted to be effective January 24, 2017, 42 TexReg 235; amended to be effective August 9, 2023, 48 TexReg 4268."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214417&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214417",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "D",
                "label": "SOCIO-ECONOMIC PROGRAM"
            },
            "rule": {
                "number": "§20.291",
                "label": "Revocation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214418&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214418",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The comptroller shall revoke the certification of a HUB if the comptroller determines that a business does not meet the definition of HUB or that the business fails to provide requested information in connection with a certification review conducted by the comptroller. The comptroller shall provide the business with written notice of the proposed revocation. A HUB shall have 30 days from receipt of the written notice to provide written documentation through the online HUB certification system stating the basis for disputing the revocation. The comptroller shall evaluate the documentation to determine the HUB's eligibility, and provide the applicant with written notification of the decision.(b) If a HUB is barred from participating in state contracts in accordance with Government Code, §2155.077, the comptroller shall revoke the certification of that business for a period commensurate with the debarment period.(c) Businesses that have had their HUB status revoked may not be included in meeting statewide or state agency HUB utilization goals after the end of the last reporting period in which they held certification for at least one day.",
            "sourceNote": "Source Note: The provisions of this §20.291 adopted to be effective January 24, 2017, 42 TexReg 235; amended to be effective August 9, 2023, 48 TexReg 4268."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214418&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214418",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "D",
                "label": "SOCIO-ECONOMIC PROGRAM"
            },
            "rule": {
                "number": "§20.292",
                "label": "Certification and Compliance Reviews"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214419&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214419",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The comptroller will conduct certification reviews of applicants and compliance reviews of certified HUBs. The comptroller may perform random or targeted compliance desk, virtual, or in-person, onsite reviews. The comptroller may verify the information submitted by a business is accurate, and the business continues to meet all HUB eligibility requirements after certification has been granted. Certification and compliance reviews of any business may be conducted upon determining a review is warranted.(b) Businesses subject to certification and compliance reviews must provide the comptroller with any information requested to verify the eligibility of the business.(c) The applicant's business documentation shall be reviewed to substantiate the required level of participation and control, and must demonstrate responsibility in the critical areas of the business' operation as set forth in §20.283 of the title (relating to Evaluation of Active Participation in the Control, Operation, and Management of Entities).(d) If a business does not meet all eligibility requirements or does not provide requested information within the timeframe specified by the comptroller, the business will be denied certification or have its certification revoked.",
            "sourceNote": "Source Note: The provisions of this §20.292 adopted to be effective January 24, 2017, 42 TexReg 235; amended to be effective August 9, 2023, 48 TexReg 4268."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214419&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214419",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "D",
                "label": "SOCIO-ECONOMIC PROGRAM"
            },
            "rule": {
                "number": "§20.293",
                "label": "Historically Underutilized Business Directory"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214420&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214420",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The comptroller provides an online HUB directory that is updated daily to indicate current certification status. Access to the HUB directory is free and open to the public.",
            "sourceNote": "Source Note: The provisions of this §20.293 adopted to be effective January 24, 2017, 42 TexReg 235; amended to be effective August 9, 2023, 48 TexReg 4268."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214420&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214420",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "D",
                "label": "SOCIO-ECONOMIC PROGRAM"
            },
            "rule": {
                "number": "§20.294",
                "label": "Graduation Procedures"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182555&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182555",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Size Standards. A HUB shall graduate from being eligible for HUB certification when it has maintained gross receipts or total employment levels during four consecutive years which, including all affiliates, exceed the U.S. Small Business Administration size standards set forth in 13 CFR Part 121.(b) Graduation. Businesses that achieve the size standards identified in subsection (a) of this section have reached a competitive status in overcoming the effects of discrimination. The comptroller shall review, as part of the certification or recertification process, the financial revenue or relevant data of a business to determine whether the size standards identified in subsection (a) of this section have been achieved. When the comptroller determines that the business exceeds the applicable size standard, the comptroller shall inform the business that it has graduated and is no longer certified as a HUB, and shall remove the business from the HUB directory.(c) Effects of Graduation.(1) Businesses that have graduated from the HUB program may not be included in meeting statewide or state agency HUB utilization goals after the end of last reporting period in which they held certification for at least one day.(2) A business that has graduated or does not qualify as a HUB under this title, shall be eligible to reapply for HUB certification only after demonstrating that it meets the qualifications for HUB, including the size standards.(3) A business is considered a successor in interest if it has acquired substantially all of the assets and liabilities of another business. The application of the successor in interest to a HUB that has graduated will be treated as a reapplication of the HUB. The successor in interest applicant must show that it meets the size standards before it is considered eligible to apply.",
            "sourceNote": "Source Note: The provisions of this §20.294 adopted to be effective January 24, 2017, 42 TexReg 235; amended to be effective August 9, 2023, 48 TexReg 4268."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182555&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182555",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "D",
                "label": "SOCIO-ECONOMIC PROGRAM"
            },
            "rule": {
                "number": "§20.295",
                "label": "Program Review"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182556&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182556",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The comptroller shall revise the HUB rules based on updates of disparity studies conducted and prepared on behalf of the State of Texas. The comptroller may determine the need to reassess the HUB rules upon receipt of new disparity study information.",
            "sourceNote": "Source Note: The provisions of this §20.295 adopted to be effective January 24, 2017, 42 TexReg 235."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182556&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182556",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "D",
                "label": "SOCIO-ECONOMIC PROGRAM"
            },
            "rule": {
                "number": "§20.296",
                "label": "HUB Coordinator Responsibilities"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214421&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214421",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In accordance with Government Code, §2161.062(e), state agencies with biennial budgets that exceed $10 million shall designate a staff member to serve as the Historically Underutilized Business (HUB) Coordinator for the state agency during the fiscal year. The HUB coordinator will advise and assist state agency executive directors and staff in complying with the requirements of this division, Government Code, §321.013, and §2101.011, and Government Code, Chapter 2161.(b) To demonstrate good faith effort, a state agency shall provide the HUB coordinator with necessary and sufficient resources from its current operations and budget to effectively promote the achievement of all the responsibilities of the HUB coordinator. The HUB coordinator will assist its state agency in the development of the state agency's procurement specifications, HUB subcontracting plans, and evaluation of contracts for compliance. The HUB coordinator should be in a position that reports, communicates, and provides information directly to the state agency's executive director. To assist state agencies and the comptroller with HUB compliance, the duties and responsibilities of HUB coordinators include, but are not limited to, facilitating compliance with the state agency's good faith effort criteria, HUB reporting, contract administration, and marketing and outreach efforts for HUB participation. The comptroller may assist agencies, upon request, to identify other responsibilities of a HUB coordinator for compliance.",
            "sourceNote": "Source Note: The provisions of this §20.296 adopted to be effective January 24, 2017, 42 TexReg 235."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214421&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214421",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "D",
                "label": "SOCIO-ECONOMIC PROGRAM"
            },
            "rule": {
                "number": "§20.297",
                "label": "HUB Forum Programs for State Agencies"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214422&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214422",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In accordance with Government Code, §2161.066, the comptroller shall design a program of forums in which HUBs are invited by state agencies to deliver technical and business presentations that demonstrate their capability to do business with the state agency:(1) to senior managers and procurement personnel at state agencies that acquire goods and services of a type supplied by the HUBs; and(2) to prime contractors or vendors with the state who may be subcontracting for goods and services of a type supplied by the HUBs.(b) Each state agency with a biennial appropriation exceeding $10 million shall participate in the forums by sending senior managers and procurement personnel to attend relevant presentations. The state agency will inform their prime contractors or vendors about presentations relevant to subcontracting opportunities for HUBs and small businesses. The comptroller and each agency that has a HUB coordinator shall:(1) design its own forum program and model the program, to the extent appropriate, following the format established by the comptroller;(2) sponsor presentations by HUBs at the state agency offices unless state agency facilities will not accommodate forum participants as determined and documented by the HUB Coordinator; and(3) identify and invite HUBs to make marketing presentations on the types of goods and services they provide.(c) Agencies may elect to implement forums individually or cooperatively with other agencies. The state agency's forum programs may include, but are not limited to, the following initiatives:(1) providing marketing information that will direct HUBs to key staff within the agency;(2) requesting other state agencies to assist in the preparation and planning of the forum when necessary;(3) informing HUBs about potential contract opportunities and future awards; and(4) preparing an annual report of each sponsored and cosponsored forum.",
            "sourceNote": "Source Note: The provisions of this §20.297 adopted to be effective January 24, 2017, 42 TexReg 235; amended to be effective August 9, 2023, 48 TexReg 4268."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214422&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214422",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "D",
                "label": "SOCIO-ECONOMIC PROGRAM"
            },
            "rule": {
                "number": "§20.298",
                "label": "Mentor-Protégé Program"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182559&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182559",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The Mentor-Protégé Program is a program  administered by the comptroller in accordance with Government Code, §2161.065,  and implemented by state agencies. The purpose of the Mentor-Protégé  Program is to foster long-term relationships between experienced contractors  and HUBs and to increase the ability of HUBs to obtain and perform  contracts and subcontracts for state agency business. Each state agency  with a biennial appropriation that exceeds $10 million shall implement  the Mentor-Protégé Program.(b) Each state agency that implements the Mentor-Protégé  program shall consider:(1) the needs of protégé businesses requesting  to be mentored;(2) the availability of mentors who possess unique  skills, talents, and experience related to the mission of the state  agency's program; and(3) the state agency's staff and other resources.(c) Agencies may elect to implement the Mentor-Protégé  Program individually or in cooperation with other agencies, public  entities, or private organizations. Agencies are encouraged to implement  a Mentor-Protégé Program to address the needs of protégé  businesses in the following areas:(1) construction;(2) commodities; and(3) services.(d) State agencies may consider, but are not limited  to, the following factors in developing their Mentor-Protégé  Program:(1) internal procedures, including an application process,  regarding the Mentor-Protégé Program which identifies  the eligibility criteria and the selection criteria for mentors and  potential HUB protégé businesses;(2) recruitment of contractor mentors and protégés; (3) documentation of the roles and expectations of  the state agency, the mentor and the protégé;(4) monitoring progress of mentor-protégé  relationships;(5) key agency resources including senior managers  and procurement personnel to assist with the implementation of the  program;(6) partnerships with local governmental and nonprofit  entities;(7) the appropriate length of time for mentor-protégé  relationships to continue (generally limited to four years);(8) guidance related to the Mentor-Protégé  Program in the Disparity Study; and(9) assessment of the effectiveness of their Mentor-Protégé  Program by conducting periodic surveys and interviews of mentors and  protégés.(e) A state agency's Mentor-Protégé Program  implementation must include mentor eligibility and selection criteria.  In determining the eligibility and selection of a mentor, state agencies  shall require each mentor to be registered on the Centralized Master  Bidders List (CMBL); and may additionally consider the following criteria:(1) whether the mentor has extensive work experience  and can provide developmental guidance in areas that meet the needs  of the protégé, including but not limited to, business,  financial, and personnel management; technical matters such as production,  inventory control and quality assurance; marketing; insurance; equipment  and facilities; and other related resources;(2) whether the mentor is in \"good standing\" with the  State of Texas and is not in violation of any state statutes, rules  or governing policies;(3) whether the mentor has mentoring experience;(4) the number of protégés that a mentor  can appropriately assist;(5) whether the mentor has a successful past work history  with the state agency;(6) the amount of time a HUB has participated as a  mentor in the program, or in other agencies' programs; and(7) whether and to what extent the mentor and protégé  businesses share management, board members, partners, current or former  employees, or other resources that might indicate that they are related  or affiliated businesses.(f) A state agency's Mentor-Protégé Program  implementation must include protégé eligibility and  selection criteria. In determining the eligibility and selection of  HUB protégés, state agencies may use the following criteria:(1) whether the protégé is eligible and  willing to become certified as a HUB;(2) whether the protégé's business has  been operational for at least one year;(3) whether the protégé is willing to  participate with a mentor and will identify the type of guidance that  is needed for its development;(4) whether the protégé is in \"good standing\"  with the State of Texas and is not in violation of any state statutes,  rules, or governing policies;(5) whether the protégé is involved in  a mentoring relationship with another contractor;(6) the amount of time a HUB has participated as a  protégé in the program, or in other agencies' programs;  and(7) whether and to what extent the mentor and protégé  businesses share management, board members, partners, employees, or  other resources that might indicate that they are related or affiliated  businesses.(g) The mentor and the protégé should  agree on the nature of their involvement under the state agency's  Mentor-Protégé Program. The state agency will monitor  the progress of the relationship. The mentor and protégé  relationship should be reduced to writing and may include, but is  not limited to, the following:(1) identification of the developmental areas in which  the protégé needs guidance;(2) the time period which the developmental guidance  will be provided by the mentor;(3) points of contact that will oversee the agreement  of the mentor and protégé;(4) procedure for a mentor to notify the protégé  in advance if it intends to withdraw from the program or terminate  the mentor-protégé relationship;(5) procedure for a protégé to notify  the mentor in advance if it intends to terminate the mentor-protégé  relationship; and(6) a mutually agreed upon timeline to report the progress  of the mentor-protégé relationship to the state agency.(h) The protégé must maintain its HUB  certification status for the duration of the agreement.(i) Each state agency must notify its mentors and protégés  that participation is voluntary. The notice must include written documentation  that participation in the state agency's Mentor-Protégé  Program implementation is neither a guarantee of a contract opportunity  nor a promise of business; but the program's intent is to foster positive  long-term business relationships.(j) State agencies may demonstrate their good faith  under this section by submitting a supplemental letter with documentation  to the comptroller with their HUB report or legislative appropriations  request identifying the progress and testimonials of mentors and protégés  that participate in the state agency's program.(k) Each state agency that implements the Mentor-Protégé  Program must report that information to the comptroller upon completion  of a signed agreement by both parties. Information regarding the Mentor-Protégé  Agreement shall be reported in a form prescribed by the comptroller  within 21 calendar days after the agreement has been signed. The comptroller  will register that agreement on the approved list of mentors and protégés.  Approved Mentor-Protégé Agreements are valid for all  state agencies in determining good faith effort for the particular  area of subcontracting to be performed by the protégé  as identified in the HUB subcontracting plan.(l) The comptroller shall retain and make available  to state agencies all registered Mentor-Protégé Agreements.  The sponsoring state agency shall monitor and report the termination  of an existing Mentor-Protégé Agreement that has been  registered with the comptroller within 21 calendar days.",
            "sourceNote": "Source Note: The provisions of this §20.298 adopted to be\r\neffective January 24, 2017, 42 TexReg 235; amended to be effective\r\nAugust 9, 2023, 48 TexReg 4268."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182559&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182559",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "D",
                "label": "SOCIO-ECONOMIC PROGRAM"
            },
            "rule": {
                "number": "§20.306",
                "label": "Preferences"
            },
            "nextRule": {
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                "recordId": "182560",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Texas and United States products and Texas services. The terms used in this section are as defined by Government Code, §2155.444(c).(1) If goods, including agricultural products, produced or grown in this state or offered by Texas bidders are not equal in cost and quality to other products, then goods, including agricultural products, produced or grown in other states of the United States shall be given preference over foreign products if the cost to the state and quality are equal. However, a preference shall be given to those goods produced or grown in this state or offered by Texas bidders as follows:(A) goods produced or offered by a Texas bidder that is owned by a service-disabled veteran who is a Texas resident shall be given a first preference and goods produced in this state or offered by other Texas bidders shall be given second preference, if the cost to the state and quality are equal; and(B) agricultural products grown in this state shall be given first preference and agricultural products offered by Texas bidders shall be given second preference, if the cost to the state and quality are equal.(2) A preference shall be given for purchases of Texas vegetation native to the region for landscaping purposes, including plants, if the cost to the state is not greater and the quality is not inferior.(3) A first preference shall be given to services offered by a Texas bidder that is owned by a service-disabled veteran who is a Texas resident and a second preference shall be given to services offered by other Texas bidders if:(A) the services meet state requirements regarding the service to be performed and expected quality; and(B) the cost of the service does not exceed the cost of other similar services of similar expected quality that are offered by a bidder that is not entitled to a preference under this subsection.(4) When an agency conducts an advertising campaign that involves the creation or production of a commercial, in accordance with any additional guidance or rules from the Music, Film, Television, and Multimedia Office within the office of the governor, a preference shall be given to a commercial production company and advertising agency located in this state if:(A) the services meet state requirements regarding the service to be performed and regarding expected quality; and(B) the cost of the service does not exceed the cost of other similar services of similar expected quality that are offered by a bidder that is not entitled to a preference.(b) Products of persons with mental or physical disabilities. A preference shall be given to manufactured products of workshops, organizations, or corporations whose primary purpose is training and employing persons with mental or physical disabilities, if the products meet state specifications as to quantity, quality, and price. Competitive bids are not required for purchases of blind-made goods or services offered as a result of efforts by the Texas Council on Purchasing from People with Disabilities, if the goods or services meet state specifications as to quantity, quality, price, delivery, life cycle costs, and costs no more than the fair market price of similar items.(c) Recycled, remanufactured or environmentally sensitive products. A preference shall be given to recycled, remanufactured or environmentally sensitive products, including recycled steel products, if the products meet state specifications as to quantity and quality and the average price of the product is not more than 10 percent greater than the price of comparable non-recycled products. The preference for recycled steel products applies also to products purchased in connection with projects described in Government Code, §2166.003.(d) Covered television equipment. In accordance with Health & Safety Code, §361.991, and 30 TAC Chapter 328, Subchapter J, and in addition to any other preferences under other Texas laws, a preference shall be given to a television manufacturer that:(1) through its recovery plan collects more than its market share allocation; or(2) provides collection sites or recycling events in any county located in a council of governments region in which there are fewer than six permanent collection sites open at least twice each month.(e) Energy efficient products. A preference shall be given to energy efficient products if they meet state requirements as to quantity and quality, and are equal to or less than the cost of other products offered. This preference shall be applied by evaluating the energy use of the products offered and considering the costs of such energy use over the expected life of the equipment. The methodology for evaluating energy use and costs shall be included in the bid invitation.(f) Rubberized asphalt paving material. A preference shall be given to rubberized asphalt paving material made from scrap tires by a facility in this state if the cost, as determined by life-cycle cost benefit analysis, does not exceed the bid cost of alternative paving materials by more than 15%.(g) Recycled motor oil and lubricants. In the purchase of motor oil and other automotive lubricants for state-owned vehicles, a preference shall be given to motor oils and lubricants that contain at least 25% recycled oil if the quality is comparable and the cost is equal to or less than new oil and lubricants.(h) Products and services from economically depressed or blighted areas as defined in Government Code, §2306.004 or that meet the definition of a historically underutilized business zone as defined by 15 U.S.C. §632(p). Preference shall be given to goods and services produced in economically depressed or blighted areas if they meet state requirements as to quantity and quality, and are equal to or less than the cost of other similar goods or services offered that are not produced in an economically depressed or blighted area.(i) Products of facilities on formerly contaminated property. A preference shall be given to goods produced at a facility located on property for which the owner has received a certificate of completion under Health and Safety Code, §361.609, if the goods meet state specifications regarding quantity, quality, delivery, life cycle costs, and price.(j) Vendors that meet or exceed air quality standards.(1) For contracts to be performed, in whole or in part, in a designated nonattainment area or an affected county, as those terms are defined by Health and Safety Code, §386.001, the comptroller and state agencies procuring goods and services may:(A) give preference to goods or services of a vendor that demonstrates that the vendor meets or exceeds any state or federal environmental standards, including voluntary standards, relating to air quality; or(B) require that a vendor demonstrate that the vendor meets or exceeds any state or federal environmental standards, including voluntary standards, relating to air quality.(2) The preference may be given only if the cost to the state for the goods and services would not exceed 105% of the cost of the goods or services provided by a vendor who does not meet the standards.(3) When this preference is made available, the methodology for claiming, evaluating and granting the preference shall be included in the comptroller's and other state agencies' solicitations. The application of the preference should encourage vendor innovation to achieve the clean air objectives as described in the solicitation.(k) Paper containing recycled fibers. In accordance with Government Code, §2155.446, a preference shall be given to paper containing the highest proportion of recycled fibers for all purposes for which paper with recycled fibers may be used and to the extent that the paper is available at a reasonable price through normal commercial sources to supply the state's needs. The preference does not apply if the average price of paper with recycled fibers exceeds by more than 10 percent the price of comparable non-recycled paper.(l) Recycled computer equipment of other manufacturers. In accordance with Health and Safety Code, §361.965(d), a preference shall be given to a manufacturer that has a program to recycle the computer equipment of other manufacturers, including collection events, recycling grants, and manufacturer initiatives to accept computer equipment labeled with another manufacturer's brand.(m) Foods of higher nutritional value. In accordance with Government Code, §2155.442 and the Department of Agriculture's nutrition standards, a preference may be given for contractors who provide foods of higher nutritional value without trans fatty acids for consumption in a public cafeteria.(n) Travel agents residing in Texas. In accordance with Government Code, §2171.052, the comptroller may make contracts with travel agents that meet certain reasonable requirements prescribed by the central travel office, with preference given to resident entities of this state.",
            "sourceNote": "Source Note: The provisions of this §20.306 adopted to be effective January 24, 2017, 42 TexReg 236."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182560&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182560",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "D",
                "label": "SOCIO-ECONOMIC PROGRAM"
            },
            "rule": {
                "number": "§20.307",
                "label": "State Agency Procurements of Recycled, Remanufactured or Environmentally Sensitive Commodities or Services"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210447&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "210447",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The comptroller may designate as \"First Choice\" certain recycled, remanufactured or environmentally sensitive commodities or services.(b) First Choice items are designated recycled, remanufactured, and environmentally sensitive commodities or services that state agencies shall give a preference for when purchasing. These items include, but are not limited to:(1) re-refined oils and lubricants;(2) recycled content toilet paper;(3) recycled content toilet seat covers and paper towels;(4) recycled content printing, computer and copier paper, and business envelopes;(5) recycled content plastic trash bags;(6) recycled content plastic covered binders;(7) recycled content recycling containers; and(8) Energy Star labeled photocopiers.(c) Commodities or services that are designated as First Choice items will be reflected in the State Procurement Manual. The State Procurement Manual will be revised as new commodities or services are designated as First Choice items.(d) A state agency that intends to purchase a commodity or service that accomplishes the same purpose as a commodity or service identified in Government Code, §2155.448(a) that does not meet the definition of a recycled product or that is not remanufactured or environmentally sensitive shall include with the procurement file a written justification signed by the executive head of the state agency stating the reasons for the determination that the commodity or service identified by the comptroller will not meet the requirements of the state agency.",
            "sourceNote": "Source Note: The provisions of this §20.307 adopted to be effective January 24, 2017, 42 TexReg 236."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210447&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "210447",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "E",
                "label": "SPECIAL CATEGORIES OF CONTRACTING"
            },
            "rule": {
                "number": "§20.381",
                "label": "Mail and Messenger Services"
            },
            "nextRule": {
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                "recordId": "182562",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) The comptroller provides and operates an interagency mail and messenger service to deliver unstamped or non-metered written communications and packages between the legislature, state agencies and legislative agencies located in Travis County.(b) No personal mail will be carried by the mail and messenger service. No package that exceeds 70 pounds will be delivered by the mail and messenger service.(c) State warrants may be delivered by the mail and messenger service upon agreement by the state comptroller and the agency concerned.(d) Mail may be delivered to and from the United States Post Office upon the agreement of the state agency and the comptroller.(e) The mail and messenger service may process and meter outgoing mail for state agencies upon agreement of the state agency and the comptroller. Each state agency must furnish funds to cover amounts of postage to be metered.(1) No mail shall be metered for a state agency in excess of funds provided by the agency, unless approved by the comptroller so as to avoid undue delays in processing mail. Any deficit in an agency's postage account shall be promptly reimbursed to the comptroller.(2) The mail and messenger service will provide each state agency utilizing the metered mail service with a monthly report showing the amounts of postage used and volume of mail metered.(3) State agencies who use the comptroller's outgoing mail service for the purpose of postage meter rental requirements and cost effective mailing requirements will be considered to be in compliance with Government Code, Chapter 2176 and Government Code, §2113.103.(f) A state agency located in Travis County is required to consult with the comptroller before renting, purchasing, upgrading, or selling mail processing equipment; contracting with a private entity for mail processing services; or taking any action that will significantly affect the agency's first class mail practices.(1) For mail equipment or private entity service contracts $10,000 and under, a state agency shall submit a written justification to the comptroller stating why the equipment or service is needed and what benefits are expected to be received.(2) For mail equipment or private service contracts over $10,000, a state agency shall submit a detailed life-cycle cost benefit analysis to the comptroller that includes all expected costs and benefits over the life of the equipment or service. The analysis shall be in a format prescribed by the comptroller.(3) For any action that will significantly affect its first class mail practices, a state agency shall provide a written statement of the need for the action and anticipated benefits. Significant actions affecting the first class mail practices of an agency include, but are not limited to, the following:(A) creation or elimination of internal mail processing functions, organization, or staff; and(B) addition or elimination of any specific mail processing activities such as metering, presorting, folding/inserting, or labeling.(4) The comptroller shall provide a written response to the state agency indicating whether or not it agrees with the intended action and any suggested alternatives.(g) The comptroller establishes statewide term contracts for postage meter machine rentals when in the best interest of the state. Postage for statewide term contracts is purchased separately by state agencies and cooperative purchasing members. State agencies may pay for postage in accordance with the requirements of United States Postal Service Domestic Mail Manual.",
            "sourceNote": "Source Note: The provisions of this §20.381 adopted to be effective January 24, 2017, 42 TexReg 237; amended to be effective October 25, 2022, 47 TexReg 7068."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182562&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182562",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "E",
                "label": "SPECIAL CATEGORIES OF CONTRACTING"
            },
            "rule": {
                "number": "§20.382",
                "label": "Printing"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208768&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208768",
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            "ruleBody": "(a) Pursuant to Government Code, §2172.003, the comptroller may provide assistance to any state agency regarding their printing activities. Assistance can be provided by telephone, fax, letter, e-mail or in person.(b) The comptroller assesses and evaluates printing activities to ensure the best interests of the State of Texas are met. The comptroller may make recommendations to state agencies that will increase the productivity and cost-effectiveness of their printing operations. The assessment may include but is not limited to an appraisal of equipment, customer base, sales, printing volume, costs, and personnel.(c) The comptroller adopted the Council on Competitive Government's (CCG) Cost Methodology as a baseline for evaluating and comparing cost of state agency printing operations. All state agency print shops in Travis County (except higher education) operate under a Franchise Agreement (\"Agreement\") with the comptroller, which allows state agencies currently operating a print shop to maintain direct control with general oversight provided by the comptroller through Franchise Agreements. Failure to sign the Agreement will eliminate the authority for a state agency to operate a print shop. The Agreement requires each print shop to utilize the CCG Cost Methodology in determining the cost of printing. Each print shop shall provide quarterly data to the comptroller, which will summarize this information in quarterly and annual reports.(d) The comptroller reviews state agency requisitions for new print shop equipment, including copiers/duplicators and other printing devices used in quick copy operations. To complete the review, the state agency must provide written documentation to the comptroller. This documentation may include but is not limited to:(1) a summary narrative justifying the proposed purchase, rent or lease of equipment;(2) a description of the method of finance;(3) a detailing of the model(s) of printing equipment the agency currently has that it plans to replace (if applicable);(4) a detailing of the model(s) of printing equipment the agency plans to acquire;(5) a detailing of current annual costs for equipment to be replaced (if applicable);(6) a detailing of the estimated annual cost for the proposed equipment;(7) the cost benefit of proposed equipment;(8) the estimated volume of work which may be processed through the proposed equipment;(9) a summary of the equipment(s) enhanced features;(10) the number of hours per day the proposed equipment will run;(11) the number of shifts the proposed equipment will be operated on a daily basis; and(12) miscellaneous information that may be pertinent as a consequence of other information supplied by the agency.(e) The comptroller shall assist state agencies with expediting the production of printing and graphic arts by serving as a source of information, facilitating disputes, hosting meetings, or performing other services.(f) A roster of franchised print shops is maintained by the comptroller. This roster includes print shop equipment, facilities, special capabilities, and staffing. The roster will be provided to requesting entities.(g) The comptroller will work with state agencies to ensure that printing services and supplies are purchased in the most economical manner possible. A vendor listing by commodity and services is maintained to maximize information regarding private sector suppliers. A summary vendor listing will be provided to requesting entities.(h) The comptroller will work with state agencies to coordinate the consolidation of print shops when the agencies involved determine a consolidation is appropriate.",
            "sourceNote": "Source Note: The provisions of this §20.382 adopted to be effective January 24, 2017, 42 TexReg 237."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208768&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208768",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "E",
                "label": "SPECIAL CATEGORIES OF CONTRACTING"
            },
            "rule": {
                "number": "§20.406",
                "label": "Purpose and Applicability"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199377&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "199377",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Purpose. This subchapter governs the use of contract travel services and state travel credit cards by state officials and employees and other eligible persons. Contract travel services may include state credit cards, travel agencies, airlines, vehicles, internet-based reservation and ticketing, lodging and other modes and necessities of state business related travel. The purpose of this subchapter is to encourage travelers to obtain the lowest overall cost of travel services. These rules do not alter, amend or affect the requirements in Government Code, Chapter 660 relating to travel or the comptroller's statutes and rules.(b) Applicability. This subsection defines the persons and entities eligible to use contract travel services.(1) State agencies. State agency officials and employees, in the executive branch, shall use the contract travel services as required by this subchapter whenever those services provide the most efficient travel resulting in the total lowest cost. State agencies may and are encouraged to purchase travel services at rates lower than the contract travel services rates.(2) Other governmental entities. Officers and employees of the following entities may, but are not required to, participate in the travel services pursuant to this subchapter. These entities may use contract travel services upon approval by the comptroller of their application for the use of contract travel services:(A) an institution of higher education as defined in Education Code, §61.003 when the entity uses travel agency services or when the services are purchased from funds other than general revenue or education or general funds as defined by Education Code, §51.009;(B) Employees Retirement System when the travel is paid from other than general revenue funds;(C) counties;(D) municipalities;(E) public junior colleges;(F) school districts;(G) emergency communication districts;(H) qualified cooperative entity as the term is defined under Government Code, § 2171.055; and(I) the supreme court, the court of criminal appeals, the courts of appeals, and other entities in the judicial branch.(c) Official government business. Contract travel services shall be used only for official governmental business, unless the travel services contractor offers the same services for personal use. No contractor is required to allow the use of contract travel services for other than official governmental business.",
            "sourceNote": "Source Note: The provisions of this §20.406 adopted to be effective January 24, 2017, 42 TexReg 237; amended to be effective May 1, 2022, 47 TexReg 2561."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199377&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "199377",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "E",
                "label": "SPECIAL CATEGORIES OF CONTRACTING"
            },
            "rule": {
                "number": "§20.407",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199378&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "199378",
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            },
            "ruleBody": "The following words and terms used in this division are defined as follows unless the context clearly indicates otherwise.(1) Contractor--An individual or entity under contract with comptroller for the provision of travel services.(2) Contract travel services--The travel services provided pursuant to comptroller contracts that guarantee prices and levels of services for all eligible entities and individuals.(3) Force majeure event--Any acts of God, war, riot, strike, or other event beyond the control of a contractor and that could not reasonably have been anticipated or avoided and which, by the exercise of all reasonable due diligence, such contractor is unable to overcome.(4) Official government business--Business required in the scope and course of the traveler's employment that is properly authorized by the employing governmental entity.(5) Overall cost of travel--May include the actual costs to the state for travel, including flight or other mode of transport to the duty station, mileage, rental car, taxi, parking, tolls, lodging, meals in amounts less than or equal to the allowed per diem, and in some instances may also include travel time to duty station or other relevant factors directly related to the travel that are significant in the context of the overall cost of the travel event.(6) State agency--Any department, commission, board, office, council, or other agency in the executive branch of state government created by the constitution or by statute that is required to use contract travel services pursuant to Government Code, §2171.055.(7) State employee--Any person employed by a state agency, or an elected or appointed official.(8) State travel credit card--A credit card issued to an individual or a governmental entity by a contract travel credit card contractor.(9) State travel directory--A comptroller publication that lists current available contract travel services.(10) Traveler--Any person eligible to use contract travel services, including those eligible pursuant to the comptroller's travel allowance guide.",
            "sourceNote": "Source Note: The provisions of this §20.407 adopted to be effective January 24, 2017, 42 TexReg 237; amended to be effective May 20, 2020, 45 TexReg 3333."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199378&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "199378",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "E",
                "label": "SPECIAL CATEGORIES OF CONTRACTING"
            },
            "rule": {
                "number": "§20.408",
                "label": "Exceptions to the Use of Contract Travel Services and Higher Cost of Travel"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182566&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182566",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Exceptions to use of contract travel services. In accordance with these rules and applicable statutes, state agencies may allow their employees to use travel services other than contract travel services only if one or more of the exceptions in subsections (b) through (i) of this section apply. Nothing in this section affects or alters the authority of the comptroller regarding travel reimbursement or audit of travel transactions.(b) Lower overall cost of travel. The state agency obtains lower priced travel services through the use of fourteen day or other advanced reservations programs, promotional price reductions, or any method that provides a lower overall cost of travel. When a state agency uses any travel services obtained at a lower overall cost than the contract travel services price, the exception must be documented by the agency. The agency should document and follow a consistent cost comparison methodology.(c) Unavailability of contract travel services. The contract travel services are not available during the time or at the location necessary for the business purpose; or the contract travel service does not provide for the service required; or because the contractor is unable to provide the contract services due to a force majeure event.(d) Special needs. The traveler's health, safety, physical condition, or disability requires accommodations, including medical emergency or other necessary services, not available from contract travel service contractors.(e) Custodians of persons. The traveler has custody of a person pursuant to statute or court order and the traveler is required to provide a degree of security and safety that is not available from contract travel service contractors.(f) In travel status. The traveler is in the course of travel and changes in scheduling render the use of contract travel services impractical or the appropriate travel services are not available. The traveler shall make reasonable efforts to secure rates equal to or lower than the contract travel service rates.(g) Group program. The traveler is using a group program wherein reservations were made through a required source to obtain a particular rate or service.(h) Emergency response. The traveler is responding to a public health or safety emergency situation and the use of contract travel services is not available or would result in an unacceptable delay.(i) Legally required attendance. The traveler is required by a court, administrative tribunal, or other entity to appear at a particular time and place without sufficient notice to obtain contract travel services.(j) Lodging reimbursement exceeding General Services Administration rates. Except when a state employee may claim less than the maximum meal reimbursement rate for a duty point and use the amount of the reduction to increase the maximum lodging reimbursement rate for the duty point, if a state agency reimburses lodging at a rate exceeding the maximum set in the regulations issued by the United States General Services Administration for a particular location, the agency must document its determination that local conditions necessitate the higher rate for that location.",
            "sourceNote": "Source Note: The provisions of this §20.408 adopted to be effective January 24, 2017, 42 TexReg 237; amended to be effective May 20, 2020, 45 TexReg 3333."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182566&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182566",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "E",
                "label": "SPECIAL CATEGORIES OF CONTRACTING"
            },
            "rule": {
                "number": "§20.409",
                "label": "State Agency Contracts and Requests for Exceptions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182568&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182568",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Other contracts. A state agency, required to participate in contract travel services, shall not enter into a contract for travel services without prior approval of the comptroller. The comptroller shall consider whether the proposed contract offers the best value for the State and the impact of the proposed contract on existing travel service contracts. A state agency may request the comptroller to establish contract services with a particular contractor.(b) Requests for additional exceptions. A state agency shall make a written request to the comptroller for additional exceptions, not provided in §20.408 of this title (relating to Exceptions to the Use of Contract Travel Services) when the agency offers a reasonable justification for the need for the exception. Additional exceptions may not be granted for longer than the term of existing contracts.",
            "sourceNote": "Source Note: The provisions of this §20.409 adopted to be effective January 24, 2017, 42 TexReg 237."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182568&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182568",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "E",
                "label": "SPECIAL CATEGORIES OF CONTRACTING"
            },
            "rule": {
                "number": "§20.410",
                "label": "State Agency Travel Coordinators"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=215906&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "215906",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) State agencies shall designate an employee as the travel coordinator, who shall serve as the single point of contact between the comptroller travel management program and the agency for disseminating and collecting travel data and information. State agencies shall provide the comptroller with the travel coordinator's name, telephone number, e-mail address, mobile telephone number, and other requested and relevant contact information.(b) State agencies, in cooperation with the comptroller, shall provide training to travel coordinators to ensure that:(1) agency employees receive current travel information;(2) contract travel services are used in accordance with this subchapter;(3) travel data reports are submitted in compliance with this subchapter;(4) agency travel activity is monitored for compliance with this subchapter and other applicable laws and rules; and(5) complaints, concerns or other information relevant to achieving the efficient and economical travel services for the state are reported to the comptroller.(c) State agencies shall cooperate with the comptroller by allowing travel coordinators to participate in travel advisory, proposal evaluation, education, and any other groups needed to assist the comptroller in contracting for the most economical, efficient, and useful travel services.",
            "sourceNote": "Source Note: The provisions of this §20.410 adopted to be effective January 24, 2017, 42 TexReg 237."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=215906&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "215906",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "E",
                "label": "SPECIAL CATEGORIES OF CONTRACTING"
            },
            "rule": {
                "number": "§20.411",
                "label": "State Agency Reimbursement and Reporting"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182569&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182569",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) State agency officials and employees shall adhere to applicable laws and the regulations and guidelines of the comptroller governing travel vouchers.(b) Reimbursement for Travel Expenses. State agencies shall not approve and the comptroller shall not pay travel vouchers for services at rates higher than contract rates, unless an exception in §20.408 of this title (relating to Exceptions to the Use of Contract Travel Services) or §20.409 of this title (relating to State Agency Contracts and Requests for Exceptions) applies. Travel vouchers submitted for reimbursement shall indicate the claimed exception in a manner prescribed by the comptroller.(c) Audits. The comptroller may conduct pre-payment and post-payment audits of travel reimbursement requests; the audits may include a review of the propriety of claimed exceptions from the use of contract travel services.(d) False claims for reimbursement. All claims for travel reimbursement are subject to Government Code, §403.071 relating to claims and available money. Any person who knowingly makes a false claim against the state is subject to the penalties in Government Code, §403.071(f) and other applicable laws.",
            "sourceNote": "Source Note: The provisions of this §20.411 adopted to be effective January 24, 2017, 42 TexReg 237; amended to be effective December 20, 2023, 48 TexReg 7615."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182569&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182569",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "E",
                "label": "SPECIAL CATEGORIES OF CONTRACTING"
            },
            "rule": {
                "number": "§20.412",
                "label": "Procuring Travel Agency and Other Travel Related Services"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=215905&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "215905",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) This section describes the authorized methods of procurement for travel services and the specific methods for travel agency contracts.(b) Travel agency contract structure. The comptroller's travel agency contracts shall contain a clear statement of the services provided and the cost associated with each service. The contracts shall also contain descriptions of other ancillary services and any other provisions necessary for the convenience of the state.(c) Solicitation and evaluation procedures for travel agency contracts.(1) The comptroller is not required to competitively bid travel agency contracts.(2) The comptroller may negotiate contracts for travel agency services.(3) The comptroller shall solicit private sector entities to participate in negotiated contracts through effective and efficient means that ensure the best value for the state.(4) The comptroller shall consider the following criteria when evaluating proposed travel agency services:(A) quantity of services;(B) quality of services;(C) price; and(D) any other terms or conditions required to provide the overall best value for the state.(d) Other contracts. The comptroller may use authorized competitive or negotiated procedures for procuring travel services. The comptroller shall solicit, evaluate and award contracts for travel services in a manner that achieves the best overall value for the state.",
            "sourceNote": "Source Note: The provisions of this §20.412 adopted to be effective January 24, 2017, 42 TexReg 237."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=215905&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "215905",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "E",
                "label": "SPECIAL CATEGORIES OF CONTRACTING"
            },
            "rule": {
                "number": "§20.413",
                "label": "State Travel Credit Cards"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182571&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182571",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) State travel credit card. State agencies, officials, and employees shall use state travel credit cards to purchase contract and non-contract travel services. Travel services for airfare shall be charged to state travel credit cards. Travel services for lodging, rental vehicles and other necessary travel expenses shall be charged to state travel credit cards, when feasible.(b) Eligibility. Any entity eligible to use contract travel services is also eligible to obtain state travel credit cards. State travel credit cards may be used only for official state business and may be issued to individuals and state agencies.(c) State travel credit cards issued to individuals. State agencies shall encourage an employee to obtain a state travel credit card when the employee is expected to spend at least $1000 per fiscal year for official state travel. State agencies may, at their discretion, approve the issuance of the cards to any employee.(d) State agencies shall ensure that:(1) state travel credit cards are cancelled upon the employee's termination of employment;(2) state travel credit cards are cancelled when the employee fails to timely pay the charges, uses the card for personal transactions, or any other misuse of the credit card; and(3) individuals who are issued state travel credit cards understand that payment of charges on state travel credit cards is the sole responsibility of the individual and that the state shall not be responsible for the charges or for nonpayment by the employee.(e) Individual billing. State travel credit cards issued to individuals shall be billed directly to the individual who may obtain reimbursement through properly submitted state travel vouchers that comply with this subchapter and the rules and guidelines of the comptroller. Other individuals eligible to use state travel credit cards shall comply with the reimbursement rules and procedures of their governing entity.(f) Centralized billing. A state travel credit card issued to an eligible entity shall be billed to that entity which may receive reimbursement pursuant to applicable statutes and rules.",
            "sourceNote": "Source Note: The provisions of this §20.413 adopted to be effective January 24, 2017, 42 TexReg 237; amended to be effective December 20, 2023, 48 TexReg 7615."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182571&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182571",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "E",
                "label": "SPECIAL CATEGORIES OF CONTRACTING"
            },
            "rule": {
                "number": "§20.431",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182572&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182572",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Alternative fuel--Compressed natural gas, liquefied natural gas, liquefied petroleum gas, electricity, methanol (or M85), or ethanol (or E85).(2) Alternative fuel vehicle--A motor vehicle capable of using alternative fuel in the original equipment manufactured engine, or in a converted traditional gasoline or diesel engine.(3) Assigned vehicle--A state vehicle normally driven by the same employee or small specific group of employees.(4) Capitalized value--The original cost of a vehicle, plus later adjustments for major additions or improvements.(5) Direct labor--The cost of labor associated with repairing or servicing vehicles, whether performed by a contractor or state employee.(6) Disposal date--The date on which a state vehicle is no longer included in a state agency's property inventory.(7) Downtime--The total number of working hours a state vehicle, otherwise eligible for assignment, is out of service for repair or maintenance.(8) Field employee--A state employee whose regular duties require work in locations other than agency headquarters or regional offices and who regularly require a vehicle for ongoing daily duties.(9) Fleet officer--The individual designated by each state agency who is responsible for the timely and accurate submission of all required information utilized by the vehicle fleet management system.(10) Gross vehicle weight (GVW)--The greatest weight of vehicle and load which the manufacturer recommends that a vehicle accommodate. The GVW includes the total weight of chassis, cab, body, special equipment, oil, water, gasoline, driver, and the maximum payload.(11) Indirect labor--The labor cost of vehicle fleet related employees whose time cannot be identified with repairing or servicing individual vehicles.(12) OVFM--The comptroller's office of vehicle fleet management.(13) Pooled vehicle--A vehicle normally garaged in a central location for use by any authorized employee of the state agency.(14) Special purpose vehicle (SPV)--A motor vehicle commercially designed to be used primarily for purposes other than to provide transportation service for personnel, supplies, or equipment.(15) State agency--(A) any department, commission, board, office, council, or other agency in the executive branch of state government created by the constitution or by a statute of this state;(B) the Supreme Court of Texas, the Court of Criminal Appeals of Texas, a court of civil appeals, or the Texas Judicial Council; and(C) an institution of higher education as defined in Education Code, §61.003.(16) State employee--A person employed by a state agency, or an elected or appointed state official.(17) State vehicle--Any state-owned vehicle which is propelled by a self-contained engine and is licensed to operate on public highways.(18) Transfer date--The date a vehicle is transferred from one state agency to another.(19) Vehicle Fleet Management System--A computerized data retrieval system to assist each state agency in the management of its vehicle fleet.(20) Vehicle inventory--A list of state agency vehicles by type and class which is utilized to determine their average cost of operation.",
            "sourceNote": "Source Note: The provisions of this §20.431 adopted to be effective January 24, 2017, 42 TexReg 238."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182572&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182572",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "E",
                "label": "SPECIAL CATEGORIES OF CONTRACTING"
            },
            "rule": {
                "number": "§20.432",
                "label": "Office of Vehicle Fleet Management"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182573&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182573",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Through the Office of Vehicle Fleet Management, the comptroller administers the state vehicle fleet management program which consists of the State Vehicle Fleet Management Plan and a computerized Vehicle Fleet Management System.(b) The comptroller will implement and monitor, at the direction of the Council on Competitive Government (CCG), the State Vehicle Fleet Management Plan, approved and adopted by CCG. A current Plan is available for viewing at the comptroller's Website. The Plan delineates the responsibilities of each state agency, institution of higher education and OVFM to develop, implement, maintain, and monitor current vehicle fleet data as required by the Plan.(c) The comptroller may, for a fee, offer vehicle fleet maintenance services to all state agencies in Travis County on a full cost recovery basis. The services include preventive maintenance and routine mechanical repair work. The comptroller may negotiate contracts or service arrangements for major overhauls and extensive mechanical work.(d) The computerized Vehicle Fleet Management System is a database that contains information on vehicle inventories, maintenance and repair history, mileage, fuel usage, and expenses incurred for all state agencies.(e) The comptroller may sponsor an annual fleet management conference to consider:(1) adjustments to the Vehicle Fleet Management System;(2) current fleet management issues; and(3) the improvement of fleet management expertise among state agencies.",
            "sourceNote": "Source Note: The provisions of this §20.432 adopted to be effective January 24, 2017, 42 TexReg 238."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182573&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182573",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "E",
                "label": "SPECIAL CATEGORIES OF CONTRACTING"
            },
            "rule": {
                "number": "§20.433",
                "label": "State Vehicle Fleet Management Plan"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182574&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182574",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "In accordance with the Plan, developed by OVFM under the direction of CCG, the comptroller will adhere to all requirements detailed in the Plan, including, but not limited to the requirements in the following paragraphs of this section.(1) The disposal of any vehicles declared excess through the routine review of vehicle use. The comptroller will:(A) follow the Surplus Property Division process for the disposal of vehicles; and(B) submit proper documentation to certify successful disposal of vehicles declared excess.(2) The adoption of all detailed policies, procedures and goals related to vehicle replacement, state fuel contracts, alternative fuel use, minimum use criteria, interagency agreements, and fleet consolidation.(3) The submission of all fleet data required for vehicle inventory, fuel, mileage, repairs and preventive maintenance on an internet-based technology fleet data system.(4) The review of internal fleet policies and procedures to determine if the fleet management \"Best Practices\", as determined by OVFM under the direction of CCG, are appropriate and feasible for use by the fleet.(5) The adherence to the fleet size and vehicle purchasing restrictions established by the Plan adopted on October 11, 2000, and any further fleet size reduction resulting from the ongoing review of vehicle use.",
            "sourceNote": "Source Note: The provisions of this §20.433 adopted to be effective January 24, 2017, 42 TexReg 238."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182574&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182574",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "E",
                "label": "SPECIAL CATEGORIES OF CONTRACTING"
            },
            "rule": {
                "number": "§20.434",
                "label": "Assignment and Use of Pooled Vehicles"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182575&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182575",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Each vehicle in the comptroller's vehicle fleet pool, with the exception of vehicles assigned to field employees, is assigned to the state agency motor pool and is available for checkout as needed. Some vehicles, because of mission critical status, may be permanently assigned to sub-pools within divisions and available only to employees within those divisions.(b) Comptroller employees must present a valid Texas driver's license each time a pooled vehicle is checked out.(c) Pooled vehicle assignments will be made by designated comptroller personnel to ensure that all comptroller vehicles are used and rotated to balance mileage and time usage among all pooled vehicles.(d) Pooled vehicles assigned on a regular or daily basis to individual administrative or executive employees, require written documentation that the assignment is critical to comptroller's needs and mission of the agency. Documentation for all assigned comptroller vehicles will be kept on file with designated comptroller personnel.",
            "sourceNote": "Source Note: The provisions of this §20.434 adopted to be effective January 24, 2017, 42 TexReg 238."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182575&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182575",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "E",
                "label": "SPECIAL CATEGORIES OF CONTRACTING"
            },
            "rule": {
                "number": "§20.435",
                "label": "Vehicle Fleet Management System"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182576&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182576",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The Vehicle Fleet Management System is the responsibility of the Office of Vehicle Fleet Management. The comptroller maintains the main repository and database for all vehicle information submitted by each state agency in accordance with this subsection. The comptroller is responsible for developing the form, format, and composition of all data submitted electronically or otherwise to the vehicle fleet management system to assure system continuity.(b) Each state agency fleet officer is responsible for establishing, maintaining, and submitting to the comptroller on a monthly basis accurate vehicle information in the form and format established by the comptroller.(1) Information to be recorded in each agency's fleet management system for submission to the comptroller's repository and database includes, but is not limited to:(A) acquisition date, vehicle make, model, type, class, year, gross vehicle weight rating, exempt license plate number, manufacturer, vehicle identification number, whether a special purpose vehicle, and whether a pool or assigned vehicle;(B) acquisition cost, capitalized value, repair and maintenance expenses, direct and indirect labor expense, replacement policy, current mileage, vehicle disposal date, and disposal price or salvage value;(C) type, and quantity of all fuels and lubricants used, including their cost and type, vehicle lifetime odometer reading, and miles traveled per month;(D) insurance and accident related expense;(E) downtime, transfer date, disposal date, and any other information necessary to compute the average cost of operation, per month, of the various classes and types of vehicles; and(F) vehicle location by city and county.(2) The Vehicle Fleet Management System maintained by the comptroller constitutes the primary instrument used to provide fleet management assistance. Fleet management reports detailing operating trends, cost analysis, and special exception reports listing agencies with unusually high operating expenses will be generated and made available to agency fleet officers.",
            "sourceNote": "Source Note: The provisions of this §20.435 adopted to be effective January 24, 2017, 42 TexReg 238."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182576&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182576",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "E",
                "label": "SPECIAL CATEGORIES OF CONTRACTING"
            },
            "rule": {
                "number": "§20.436",
                "label": "Assistance to State Agencies and School Districts"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182859&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182859",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The Office of Vehicle Fleet Management of the comptroller facilitates, encourages, and expedites alternative fuels use by state agencies and school districts.(b) The Office of Vehicle Fleet Management of the comptroller provides informational materials regarding alternative fuels, presents state of the art data at fleet management conferences, provides state vehicle operational data, locates facilities to convert state vehicles to alternative fuels, helps identify vehicles that are appropriate for conversion, and provides technical assistance.(c) To assist with vehicle conversion, the Office of Vehicle Fleet Management of the comptroller works with state agency fleet operators, vehicle manufacturers and converters, fuel distributors, and any other necessary entities.(d) The Office of Vehicle Fleet Management provides information to the Texas Commission on Environmental Quality for its determination of air quality benefits associated with the use of alternative fuels.",
            "sourceNote": "Source Note: The provisions of this §20.436 adopted to be effective January 24, 2017, 42 TexReg 238."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182859&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182859",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "E",
                "label": "SPECIAL CATEGORIES OF CONTRACTING"
            },
            "rule": {
                "number": "§20.437",
                "label": "Waiver of Vehicles to Meet Required Fleet Percentages"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182578&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182578",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Any state agency operating a fleet of more than 15 motor vehicles, excluding law enforcement and emergency vehicles, shall have a fleet percentage of alternative fuel vehicles equal to or greater than 30% of the total number of such vehicles operated by September 1, 1994, and a percent equal to or greater than 50% by September 1, 1996.(b) A state agency desiring a waiver from subsection (a) of this section shall submit a certification to the Office of Vehicle Fleet Management of the comptroller that meets one or more of the following conditions:(1) the vehicles will be operating primarily in an area in which neither the agency nor a supplier has or can reasonably be expected to establish a central refueling station for alternative fuels;(2) the agency is unable to acquire or be provided equipment or refueling facilities necessary to operate vehicles using an alternative fuel at a projected cost that is reasonably expected to result in no greater net costs than the continued use of traditional gasoline or diesel fuels measured over the expected useful life of the equipment or facilities supplied; or(3) the agency is unable to acquire or be provided any alternative fuel vehicles or equipment necessary for such vehicles.(c) The subsection (b) of this section certification must be sent to the Office of Vehicle Fleet Management of the comptroller and must be accompanied by the information described in either subsection (d) or (e) of this section.(d) A subsection (b)(1) of this section certification shall also contain the:(1) total number of vehicles in the fleet subject to these rules;(2) total number of vehicles currently operating on an approved alternative fuel;(3) percentage of the fleet subject to these rules that is impacted by the requested waiver;(4) vehicle license plate number of each vehicle to be waived;(5) city or town nearest to where each vehicle identified in paragraph (4) of this subsection is normally garaged;(6) name of any alternative fuels vendor or supplier with a stationary supply of fuel within a 10-mile radius, or mobile fuel suppliers within a 30-mile radius of where each vehicle identified in paragraph (4) of this subsection is normally garaged; and(7) correspondence or other documentation relevant to the request for waiver or reduction.(e) A subsection (b)(2) of this section certification must be accompanied and supported by a state agency prepared cost benefit analysis for each alternative fuel which includes the following:(1) total initial cost of providing the entire alternative fuel facility, or a portion thereof, including, but not limited to, the following (if the equipment is provided at no initial cost to the agency and the fuel vendor plans to recoup the initial cost through increased fuel costs, then only those items furnished by the agency such as land shall be included in the total initial cost):(A) cost of land at current market value, on which to install any compressor station, tanks, and refueling facilities;(B) cost of compressor and related facilities, including cost of providing operating power, if not already available at the site, any engineering work for site preparation;(C) cost of refueling and related facilities, including fast and slow refueling stations, refueling tanks;(D) cost of providing alternative fuel to the site such as gas pipeline;(E) cost of engine conversion kits and fuel cylinders and/or tanks, including installation costs;(F) cost of initial training and certification of mechanics, and training of drivers to operate alternative fuel vehicles, if required; (G) cost of future major overhauls of the compressor system according to the compressor manufacturer's recommended major overhaul schedule (see paragraph (7) of this subsection);(H) cost of future major overhauls or replacement of the refueling stations if the expected life is less than 30 years;(I) costs of future replacement of fuel conversion kits (see paragraph (7) of this subsection); and(J) any other costs or expenditures necessary to provide a complete, turnkey facility;(2) total annual mileage expected for the vehicle fleet or for those vehicles covered by the cost study;(3) total annual fuel savings calculated from the difference between the fuel costs using gasoline/diesel and using alternative fuel for the total annual mileage in paragraph (2) of this subsection;(4) an estimate of any additional savings such as reduced maintenance costs (e.g., extended oil change intervals, longer spark plug life, and other savings in maintenance);(5) an estimate of the total annual operating costs, including, but not limited to, the following:(A) compressor and refueling station maintenance, not replacement cost or cost of major overhaul (see paragraph (1) of this subsection);(B) cost of labor for removing, testing, and reinstalling alternative fuel cylinders/tanks for inspection and testing;(C) cost of maintenance and repair of engine conversion kits;(D) cost of testing fuel cylinders/tanks;(E) cost of training additional mechanics and labor cost differential, if any, for mechanics and other personnel servicing alternative fuel equipment;(F) cost of electrical power to operate the compressors and refueling stations; and(G) other annual costs uniquely associated with the operation of the alternative fuel program;(6) determine the total annual savings from the difference between the total savings (sum of paragraphs (3) and (4) of this subsection), and the total annual operating costs, paragraph (5) of this subsection;(7) estimate the expected life of the various components of the system. If accurate lifetimes are not available, the following shall be used:(A) conversion kits = 15 years (if removed from old and reinstalled on new vehicles; if not reinstalled, use six years for conversion kits for automobiles and small buses, and 10 years for light and medium-duty trucks and large buses);(B) fuel cylinders/tanks = 30 years (or less if lifetimes are not 30 years); and(C) compressors = 30 years (or replacement at the time recommended by the compressor manufacturer for the third major overhaul. If not known or not listed by the manufacturer, use 10 years):(8) determine the capitalized costs of the various components in subsection (e) of this section and then calculate the payback period by using the total capitalized costs; total annual savings, paragraph (6) of this subsection; and 10% cost of money (or the actual interest rate applicable at the time the calculation is made) in standard life cycle cost benefit analysis formulae; and(9) the comptroller may assist state agencies and school districts in making these calculations.(f) The director will review the request for waiver or reduction of the requirements of subsection (a) of this section and issue a written waiver or reduction to the state agency or school district. A waiver or reduction may be issued under this section for a period of up to two years, at the discretion of the director. A waiver will be granted on a certification under subsection (b)(2) of this section if the total capitalized cost, P, max. is more than 9.43 times the total annual savings, A, for an expected compressor or system lifetime of 30 years. If the compressor lifetime is less than 30 years, or if a compressor is not used, and the component in subsection (e)(1) of this section with the longest expected lifetime is less than 30 years, a waiver will be granted if the total capitalized costs are more than the following values (if other than 10% interest is used, adjust accordingly).Attached Graphic(g) The comptroller keeps these waivers for up to two years for use in waiving the purchasing restrictions for state agencies in §20.235 of this title (relating to Purchase of Motor Vehicles).",
            "sourceNote": "Source Note: The provisions of this §20.437 adopted to be effective January 24, 2017, 42 TexReg 238."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182578&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182578",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "E",
                "label": "SPECIAL CATEGORIES OF CONTRACTING"
            },
            "rule": {
                "number": "§20.438",
                "label": "Effect of Waiver"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182579&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182579",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A waiver issued under section §20.437 of this title (relating to Waiver of Vehicles to Meet Required Fleet Percentages) shall be kept on file by the comptroller for two years from date of issuance. A valid, current waiver on file for a state agency shall be deemed sufficient basis for a waiver of the purchasing restrictions for state agencies which are set forth in §20.235 of this title (relating to Purchase of Motor Vehicles).",
            "sourceNote": "Source Note: The provisions of this §20.438 adopted to be effective January 24, 2017, 42 TexReg 238."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182579&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182579",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "E",
                "label": "SPECIAL CATEGORIES OF CONTRACTING"
            },
            "rule": {
                "number": "§20.439",
                "label": "Alternative Fuel Usage"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182592&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182592",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Pursuant to Government Code, §2171.103, the comptroller shall take all steps necessary to encourage the use of alternative fuels.(1) Each state vehicle equipped from the manufacturer or modified by a conversion facility to be capable of operating on an alternative fuel shall operate exclusively on the alternative fuel except in cases:(A) where and when the alternative fuel is not available;(B) the range of the alternative fuel is insufficient to complete a round trip, in which case the alternative fuel shall be used until exhausted, with conventional gasoline or diesel fuel used only as a last resort to complete the trip when the alternative fuel is unavailable;(C) when the alternative fuel costs more than conventional gasoline or diesel;(D) when the conversion equipment is not in working order or is deemed unsafe to operate, in which case timely repairs or inspections shall be made so that the vehicle may continue to operate on the alternative fuel; or(E) when operating exclusively on an alternative fuel is contrary to the vehicle manufacturer's or alternative fuel conversion equipment vendor's recommendations.(2) Each state agency will be required to provide fuel usage data semi-annually in accordance with §20.435(b)(2) of this title (relating to Vehicle Fleet Management System) on every vehicle capable of using alternative fuels through the Vehicle Fleet Management System.",
            "sourceNote": "Source Note: The provisions of this §20.439 adopted to be effective January 24, 2017, 42 TexReg 238."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182592&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182592",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "E",
                "label": "SPECIAL CATEGORIES OF CONTRACTING"
            },
            "rule": {
                "number": "§20.475",
                "label": "Purchase Price of Commemorative Items"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182593&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182593",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Pursuant to Government Code, §2172.006, the purchase price of an official state lapel pin, and an official state ring for purchase by members and former members of the Texas House of Representatives and the Texas Senate is established in this section. Price may be adjusted periodically by written approval of the director based on changes to the cost of precious metals or labor. The initial prices for the items are as follows:(1) Lapel pin in 14k yellow gold and platinum is $1197.25. (2) Lapel pin in 18k yellow gold and platinum is $1245.82. (A) Lapel pin for Texas House of Representatives.Attached Graphic(B) Lapel pin for Texas Senate.Attached Graphic(3) Large 14k yellow gold and platinum ring is $1221.25.(4) Large 18k yellow gold and platinum ring is $1323.22.(5) Small 14k yellow gold and platinum ring is $1109.06.(6) Small 18k yellow gold and platinum ring is $1183.68.(7) Texas House of Representative ring.Attached Graphic(8) Texas Senate ring.Attached Graphic",
            "sourceNote": "Source Note: The provisions of this §20.475 adopted to be effective January 24, 2017, 42 TexReg 239."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182593&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182593",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.481",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182594&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182594",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this division, shall have the following meanings, unless the context clearly indicates otherwise.(1) Bona fide dispute--A difference of opinion held in good faith by a vendor and a governmental entity.(2) Disputed invoice--Includes, but is not limited to, an invoice presented for payment which is:(A) not in compliance with the invoicing standards in this chapter;(B) for nonconforming goods and services under the related purchase order or contract; or(C) not presented in the time frame authorized by the related purchase order or contract.",
            "sourceNote": "Source Note: The provisions of this §20.481 adopted to be effective January 24, 2017, 42 TexReg 240."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182594&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182594",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.482",
                "label": "Quality Assurance; General"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182595&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182595",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Pursuant to Government Code, §2155.069, the comptroller may establish and maintain a program of testing and inspecting purchases pursuant to a contract administered by the comptroller at the request of state agencies to insure that the materials, supplies, services, and equipment meet specifications.",
            "sourceNote": "Source Note: The provisions of this §20.482 adopted to be effective January 24, 2017, 42 TexReg 240."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182595&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182595",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.483",
                "label": "Inspection and/or Testing"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182596&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182596",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Items are selected for inspection and/or testing under the following conditions:(1) Notice from a using qualified ordering entity. If a using qualified ordering entity determines that any supplies, materials, services, or equipment received do not meet specifications, it is the responsibility of the qualified ordering entity to notify the division in writing detailing the reasons why the item received does not meet the specifications of the contract.(2) Notice from purchaser. The various purchasers within the division may \"flag\" purchase orders at time of issue with a request for inspection and/or testing of the items purchased after their arrival at the receiving qualified ordering entity.(3) Previous experience with products and/or vendors. The comptroller's inspector may direct inspections and/or testing of products based on previous experience of deficiency of the products or of vendors delivering products other than those specified on the purchase order.(4) Items selected at random. The comptroller's inspector may direct inspections and/or testing of items selected from purchase orders at random for spot checking.(5) Request from contractor. A contractor may request the inspection of items purchased prior to or after delivery of the items to the qualified ordering entity. Such inspections are made only upon the approval of the director.(6) Certificate and/or test report from independent testing laboratory. When deemed necessary, the division may require a respondent and/or the contractor to supply a certificate and/or a test report from an independent testing laboratory showing that the product offered or delivered meets or exceeds the requirements of the specification and/or contract.(7) In-plant inspection. When approved by the director, certain items may be inspected by comptroller personnel or the comptroller's designated agent in the plant of the manufacturer during the process of manufacture. Examples of the type of items so inspected include school buses, paint, retreating rubber for tires, etc. Products not meeting specifications may be rejected prior to shipment.(b) Qualified ordering entities shall be responsible for the initial inspection and testing of all purchases. Inspection and testing will be done in accordance with instructions issued by the division. Appropriate forms may be devised to assist the qualified ordering entities in carrying out this duty.(c) In addition to random inspections, the director may direct that follow-up inspections be conducted of purchases which fail initial agency inspections to verify if specifications are met. The director will coordinate with the purchaser as required to carry out these duties.(d) Reports of findings on inspections and/or tests of materials, supplies, services, and equipment are filed with the division for recording and/or proper action to eliminate the problem.",
            "sourceNote": "Source Note: The provisions of this §20.483 adopted to be effective January 24, 2017, 42 TexReg 240."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182596&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182596",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.484",
                "label": "Testing Facilities and/or Laboratories"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182597&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182597",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Testing may be performed by any of the following facilities or laboratories:(1) comptroller laboratory;(2) laboratories of other state agencies, universities, institutions, etc. (interagency contracts);(3) independent commercial testing laboratories; or(4) any other testing facility or laboratory which the comptroller may deem qualified to test the product in question.",
            "sourceNote": "Source Note: The provisions of this §20.484 adopted to be effective January 24, 2017, 42 TexReg 240."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182597&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182597",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.485",
                "label": "Cost of Testing"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182598&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182598",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In the event the product tested fails to meet or exceed all conditions and requirements of the specification and/or contract, the cost of the sample used and the cost of the testing shall be borne by the supplier.(b) In the event the product tested meets and/or exceeds all conditions and requirements of the specification and/or contract, but the item and/or test sample is destroyed in the testing process, then the cost of the item or test sample used shall be borne by the supplier.",
            "sourceNote": "Source Note: The provisions of this §20.485 adopted to be effective January 24, 2017, 42 TexReg 240."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182598&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182598",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.486",
                "label": "Contract Administration"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208769&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208769",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Inspection of merchandise.(1) Qualified ordering entities must inspect all shipments received against orders and report any discrepancies to the comptroller immediately.(2) If unlisted shortages are discovered, the contractor and the comptroller must be notified immediately. Unless shipments are checked immediately upon arrival and such shortage reports are made within 15 days, the contractor cannot be held responsible for shortages.(3) A contractor may be required to pick up any merchandise not conforming to specifications and replace the merchandise immediately.(b) Substitutions. Substitution of items called for in a contract is not permitted without the prior approval of the director. No such approval will be granted unless substituted items are of equal quality and are offered at the same or lower price.(c) Cancellations.(1) Cancellations on orders issued by the comptroller's statewide procurement division, either on the part of the vendor or a qualified ordering entity, are not permitted without the prior written approval of the comptroller's statewide procurement division.(2) Orders may be canceled without the contractor's consent due to unsatisfactory performance or nonperformance by the contractor.(3) Orders may not be canceled without first obtaining the consent of the contractor if the reason for cancellation is not the fault of the contractor.(4) A contract or a portion of a contract may be canceled on request of the contractor if the contractor is unable to perform due to circumstances beyond its control. In these instances, the comptroller's statewide procurement division will consider such requests when presented in writing with proper documentation.(d) Damages for failure to perform.(1) A vendor who fails to perform as required under a contract shall be liable for actual damages and costs incurred by the state.(2) If any merchandise delivered under a contract has been used or consumed by an agency and on testing is found not to comply with specifications, no payment may be approved by the comptroller's statewide procurement division for such merchandise until the amount of actual damages incurred has been determined.(3) The comptroller shall seek to collect damages by following the procedures established by the Office of the Attorney General for the collection of delinquent obligations.",
            "sourceNote": "Source Note: The provisions of this §20.486 adopted to be effective January 24, 2017, 42 TexReg 240."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208769&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208769",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.487",
                "label": "Invoicing Standards"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182600&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182600",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) To receive payment, a contractor must submit an invoice to the state agency receiving the goods or services. The invoice must include any information required by the customer agency, in addition to the following minimum information:(1) the contractor's mailing and e-mail (if applicable) address;(2) the contractor's telephone number;(3) the name and telephone number of a person designated by the contractor to answer questions regarding the invoice;(4) the state agency's name, agency number, and delivery address;(5) the state agency's purchase order number, if applicable;(6) the contract number or other reference number, if applicable;(7) a valid Texas identification number (TIN) issued by the comptroller;(8) a description of the goods or services, in sufficient detail to identify the order which relates to the invoice;(9) unit numbers corresponding to the amount of the invoice;(10) if submitting an invoice after receiving an assignment of a contract, the TIN of the original contractor and the TIN of the successor vendor;(11) other relevant information supporting and explaining the payment requested.(b) A state agency must notify a vendor of an error or disputed amount in an invoice submitted for payment no later than the 21st day after the agency receives the invoice, and shall include in such notice a detailed statement of the amount of the invoice which is disputed. A state agency may withhold from payments no more than 110% of the disputed amount. When an invoice is received by the state agency, the state agency shall date stamp the invoice and maintain it with the other contract documents. A state agency may accept a partial delivery of goods or services and an invoice for payment of the portion of the goods or services delivered.(c) A state agency may request payment for an invoice from the comptroller only after the state agency has:(1) received, inspected, and accepted delivery of the goods or services covered by the invoice; and(2) received and accepted a complete and accurate invoice.(d) In order to request payment from the comptroller, the state agency shall submit the data or information to the comptroller for payment through and according to the requirements of the statewide accounting system administered by the comptroller. A state agency submitting a payment request to the comptroller certifies that:(1) the goods or services were received in accordance with the purchase order; and(2) the invoice is correct and properly payable.",
            "sourceNote": "Source Note: The provisions of this §20.487 adopted to be effective January 24, 2017, 42 TexReg 240; amended to be effective May 1, 2022, 47 TexReg 2562."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182600&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182600",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.488",
                "label": "Payments"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182601&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182601",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If the payment request has been submitted according to the statewide accounting system requirements and these rules, the comptroller shall initiate payment to the state agency for the amount identified in the payment request by:(1) electronic funds transfer; or(2) warrant.(b) A payment is not overdue if the payment is made by the comptroller by the distribution date as defined in Government Code, §2251.001.(c) Any payment owed by an agency must be mailed or transmitted electronically to the contractor no later than 30 days after the later of the day:(1) on which the agency received the goods;(2) the performance of the service under the contract is completed; or(3) on which the agency received the invoice for goods or services.(d) Overdue payments, or the unpaid balance of a partially paid invoice amount, will accrue interest at the interest rate in effect on September 1 of the fiscal year in which the payment becomes overdue. The rate in effect on September 1 is equal to the sum of:(1) one percent; and(2) the prime rate as published in the Wall Street Journal on the first day of July of the preceding fiscal year that does not fall on a Saturday or Sunday.(e) The unpaid balance of a partial payment made within the 30 day period provided by this section accrues interest as provided by subsection (c) of this section unless the balance is in dispute.(f) If the state agency has returned a disputed invoice to the contractor and the state agency and the contractor resolve the dispute in favor of the vendor, the vendor is entitled to receive interest on the unpaid balance of the invoice submitted by the vendor in accordance with this subsection.(g) If the state agency returned a disputed invoice to the contractor and the state agency and the contractor resolve the dispute in favor of the agency, the contractor shall submit a corrected invoice. The invoice shall be reviewed according to this division starting from the date of the corrected invoice.",
            "sourceNote": "Source Note: The provisions of this §20.488 adopted to be effective January 24, 2017, 42 TexReg 240."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182601&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182601",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.506",
                "label": "State Agency Reporting of Contracting Information"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182602&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182602",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A state agency using the centralized accounting, payroll, and personnel system (CAPPS), or any successor system used to implement the enterprise resource planning component of the uniform statewide accounting project developed under Government Code, §2101.035 and §2101.036, shall use CAPPS to provide to the comptroller the contract and purchasing information required pursuant to §5.302 of this title (relating to State Agency Reporting of Contracting Information).(b) State agencies shall report contract information as required by the Legislative Budget Board Detailed Contract Reporting Requirements provided on the Legislative Budget Board web site.",
            "sourceNote": "Source Note: The provisions of this §20.506 adopted to be effective January 24, 2017, 42 TexReg 240."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182602&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182602",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.507",
                "label": "Required Posting of Certain Contracts; Enhanced Contract and Performance Monitoring"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182603&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182603",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) For each contract for the purchase of goods or services from a private vendor, each state agency shall post on its Internet website:(1) each contract the agency enters into, including contracts entered into without inviting, advertising for, or otherwise requiring competitive bidding before selection of the contractor, until the contract expires or is completed;(2) the statutory or other authority under which a contract that is not competitively bid under paragraph (1) of this subsection is entered into without compliance with competitive bidding procedures; and(3) the request for proposals related to a competitively bid contract included under paragraph (1) of this subsection until the contract expires or is completed.(b) A state agency may post contracts described by subsection (a) of this section that are valued at less than $15,000 once a month.(c) Each state agency by rule shall establish a procedure to identify each contract that requires enhanced contract or performance monitoring and submit information on the contract to the agency's governing body or, if the agency is not governed by a multimember governing body, the officer who governs the agency. The agency's contract management office or procurement director shall immediately notify the agency's governing body or governing official, as appropriate, of any serious issue or risk that is identified with respect to a contract monitored under this subsection.(d) This section does not apply to a memorandum of understanding, interagency contract, interlocal agreement, or contract for which there is not a cost.",
            "sourceNote": "Source Note: The provisions of this §20.507 adopted to be effective January 24, 2017, 42 TexReg 240."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182603&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182603",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.508",
                "label": "Retention of Contract and Related Documents by State Agencies"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=215907&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "215907",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In compliance with Government Code, §441.1855 and the Act, a state agency shall maintain sufficient records and reports to verify compliance with Government Code, §2155.083, the Act and these rules, including:(1) each contract entered into by the state agency by the agency pursuant to the Act and these rules;(2) all contract solicitation documents related to the contract;(3) all documents that reflect and identify the basis for any agency decisions relating to a procurement, including actions taken which deviate from requirements or recommendations in the state procurement manual or contract management guide;(4) all purchase orders, change orders, and invoices associated with the contract;(5) all contract amendments, renewals, or extensions executed by the agency; and(6) all other documents necessary to record the full execution and completion of the each contract.(b) Pursuant to Government Code, §441.1855, a state agency may only destroy the contract and documents only after the seventh anniversary of the date:(1) the contract is completed or expires; or(2) all issues that arise from any litigation, claim, negotiation, audit, open records request, administrative review, or other action involving the contract or documents are resolved.",
            "sourceNote": "Source Note: The provisions of this §20.508 adopted to be effective January 24, 2017, 42 TexReg 240."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=215907&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "215907",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.509",
                "label": "Vendor Performance Reporting"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182605&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182605",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A state agency shall submit a report and grade of a vendor's performance to the vendor performance tracking system as stated in §20.115 of this title (relating to Vendor Performance Tracking System) for:(1) each purchase exceeding $25,000 from contracts administered by the comptroller or the Department of Information Resources; and(2) each agency contract, except as provided by subsection (f) of this section.(b) In addition, if the value of a contract exceeds $5 million, a state agency must submit a report and grade of a vendor's performance to the vendor performance tracking system as stated in §20.115 of this title upon the completion of a key milestone identified in the contract and at least once each year during the term of the contract.(c) If a state agency does not submit a vendor performance report and grade within 30 days of the completion or termination of a purchase order or contract and, for a contract with a value that exceeds $5 million, the completion of a key milestone identified in the contract, it shall document the reason in its contract file.(d) A state agency shall:(1) evaluate the vendor's performance based on:(A) information prepared by the state agency in planning the procurement that assessed the need for the purchase together with the specifications for the good or service and the criteria to evaluate the responses resulting in an award and contract;(B) compliance with the material terms of the contract;(C) ability to correct instances of contractual non-compliance; and(D) other relevant evaluation criteria presented in the online vendor performance tracking system; and(2) assign the vendor a letter grade.(e) State agencies shall independently evaluate the contract performance and use the following grading scale when assigning a letter grade to a vendor:(1) A state agency shall assign an \"A\" when it determines that the vendor significantly exceeded the requirements of the purchase order or contract to the state's benefit, that any problems with the purchase order or contract were minor, and that corrective actions taken by the vendor to address such problems were highly effective. If the best value standard was used to award the purchase order or contract, an \"A\" means that the vendor satisfied that standard.(2) A state agency shall assign a \"B\" when it determines that the vendor exceeded some requirements of the purchase order or contract to the state's benefit, that any problems with the purchase order or contract were minor, and that corrective actions taken by the vendor to address such problems were effective. If the best value standard was used to award the purchase order or contract, a \"B\" means that the vendor satisfied that standard.(3) A state agency shall assign a \"C\" when it determines that the vendor met the requirements of the purchase order or contract and that corrective actions taken by the vendor to address minor problems were satisfactory. If the best value standard was used to award the purchase order or contract, a \"C\" means that the vendor satisfied that standard but that the vendor's performance did not merit an \"A\" or \"B.\"(4) A state agency shall assign a \"D\" when it determines that the vendor did not meet some of the requirements of the purchase order or contract, that problems with the purchase order or contract were serious, and that corrective actions taken by the vendor to address such problems were only marginally effective or not fully implemented. If the best value standard was used to award the purchase order or contract, a \"D\" means that the vendor did not satisfy that standard.(5) A state agency shall assign an \"F\" when it determines that the vendor did not meet the requirements of the purchase order or contract, that problems with the purchase order or contract were serious, and that corrective actions taken by the vendor to address such problems were ineffective. If the best value standard was used to award the purchase order or contract, an \"F\" means that the vendor did not satisfy that standard.(f) A state agency is not required to report or grade vendor performance for:(1) contracts exempt from vendor reporting under Government Code, §2155.089(c) or another statutory provision;(2) purchases for which competitive bidding is not required under §20.82(b)(1) of this title; or(3) purchases procured through informal bids under §20.82(d)(1)(A) of this title.",
            "sourceNote": "Source Note: The provisions of this §20.509 adopted to be effective January 24, 2017, 42 TexReg 240; amended to be effective November 30, 2020, 45 TexReg 8526; amended to be effective December 20, 2023, 48 TexReg 7616."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182605&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182605",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.510",
                "label": "Auditing of Purchase Related Documentation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182606&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182606",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) General. The comptroller audits payment vouchers and the associated purchasing documents which establish the basis for the claim for payment from state appropriated funds in accordance with Government Code, Title 10, Subtitle D, §2155.324.(b) Auditing procedure. The comptroller audits purchasing data for compliance with applicable statutes and rules of the comptroller. The comptroller may determine the extent and method of audits to be performed. Agencies will be required to furnish documentation of both delegated and non-delegated purchases to the comptroller for these audits as needed. Audit fieldwork may be performed at the agency site or remotely.(c) Agency notification. The comptroller will communicate audit results to the agency head, agency's directors of purchasing, and fiscal and/or business manager. If the results are determined by the comptroller to be unacceptable then delegation of authority for some or all purchase categories may be suspended.",
            "sourceNote": "Source Note: The provisions of this §20.510 adopted to be effective January 24, 2017, 42 TexReg 240."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182606&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182606",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.511",
                "label": "Contracts with Value Exceeding $1 Million"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182607&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182607",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) For each contract for the purchase of goods or services that has a value exceeding $1 million, a state agency shall develop and implement contract reporting requirements that provide information on:(1) compliance with financial provisions and delivery schedules under the contract;(2) corrective action plans required under the contract and the status of any active corrective action plan; and(3) any liquidated damages assessed or collected under the contract.(b) Each state agency shall verify:(1) the accuracy of any information reported under subsection (a) of this section that is based on information provided by a contractor; and(2) the delivery time of goods or services scheduled for delivery under the contract.(c) Except as provided by subsection (d) of this section, a state agency may enter into a contract for the purchase of goods or services that has a value exceeding $1 million only if:(1) the governing body of the state agency approves the contract and the approved contract is signed by the presiding officer of the governing body; or(2) for a state agency that is not governed by a multimember governing body, the officer who governs the agency approves and signs the contract.(d) The governing body or governing official of a state agency, as appropriate, may delegate to the executive director of the agency the approval and signature authority under subsection (c) of this section.(e) A highway construction, engineering services, or maintenance contract that is in compliance with all applicable laws related to procuring engineering services or construction bidding and that is awarded by the Texas Department of Transportation under Transportation Code, Chapter 223, Subchapter A, is not required to be signed by a member of the Texas Transportation Commission or the executive director of the department. This exception does not apply to expedited highway improvement contracts under Transportation Code, Chapter 223, Subchapter C, a comprehensive development agreement entered into under Transportation Code, Chapter 223, Subchapter E, a design-build contract entered into under Transportation Code, Subchapter F, Chapter 223, or any other contract entered into by the Texas Department of Transportation.",
            "sourceNote": "Source Note: The provisions of this §20.511 adopted to be effective January 24, 2017, 42 TexReg 240."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182607&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182607",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.512",
                "label": "Applicability; Exclusions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182616&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182616",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Notwithstanding Government Code, §§2261.001, 20.511 and 20.512 apply to the Texas Department of Transportation and to an institution of higher education acquiring goods or services under Education Code, §51.9335 or §73.115.(b) This section and §20.511 of this title (relating to Contracts with Value Exceeding $1 Million) do not apply to a contract of the Employees Retirement System of Texas or the Teacher Retirement System of Texas except for a contract with a nongovernmental entity for claims administration of a group health benefit plan under Insurance Code, Title 8, Subtitle H.",
            "sourceNote": "Source Note: The provisions of this §20.512 adopted to be effective January 24, 2017, 42 TexReg 240."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182616&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182616",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.531",
                "label": "Purpose"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182617&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182617",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "This division sets forth protest procedures for resolving protests relating to purchasing issues under Government Code, §2155.076.",
            "sourceNote": "Source Note: The provisions of this §20.531 adopted to be effective January 24, 2017, 42 TexReg 242."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182617&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182617",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.532",
                "label": "Protest Procedures"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182618&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182618",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Except as otherwise provided by law, a state agency's protest procedures must be consistent with comptroller's rules. State agencies shall submit a copy of the agency's adopted protest procedures to the comptroller during the post-payment audit of the agency's purchasing documents or upon request by the comptroller.",
            "sourceNote": "Source Note: The provisions of this §20.532 adopted to be effective January 24, 2017, 42 TexReg 242."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182618&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182618",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.533",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182619&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182619",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this section, shall have the following meaning unless the context clearly indicates otherwise.(1) Chief clerk--Deputy comptroller of the comptroller.(2) General counsel--General counsel of the comptroller.(3) Interested parties--Vendors who submit bids, proposals or other written expressions of interest in response to a specific solicitation for goods or services.(4) Using agency--A state agency, governmental entity, or other entity involved in the contract.",
            "sourceNote": "Source Note: The provisions of this §20.533 adopted to be effective January 24, 2017, 42 TexReg 242."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182619&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182619",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.534",
                "label": "Protests"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208770&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208770",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A vendor who submitted a written response to a solicitation may file a protest with the director for actions taken by the comptroller on the following:(1) the solicitation documents or actions associated with the publication of solicitation documents;(2) the evaluation or method of evaluation for a solicitation; or(3) the award of a contract.(b) Under Government Code, §2262.055, any vendor who receives a grade lower than a C in the vendor performance tracking system may file a protest with the director according the protest procedures identified in this division regarding the lower grade assigned to the vendor in the system.",
            "sourceNote": "Source Note: The provisions of this §20.534 adopted to be effective January 24, 2017, 42 TexReg 242."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208770&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208770",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.535",
                "label": "Filing Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182621&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182621",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) To be considered by the comptroller, a protest must be:(1) in writing and contain:(A) the specific rule, statute or regulation the protesting vendor alleges the solicitation, contract award or tentative award violated;(B) a specific description of each action by the division that the protesting vendor alleges is a violation of the statutory or regulatory provision the protesting vendor identified in subparagraph (A) of this paragraph;(C) a precise statement of the relevant facts including:(i) sufficient documentation to establish that the protest has been timely filed;(ii) a description of the adverse impact to the comptroller and the state; and(iii) a description of the resulting adverse impact to the protesting vendor;(D) a statement of the argument and authorities that the protesting vendor offers in support of the protest;(E) an explanation of the subsequent action the vendor is requesting; and(F) a statement confirming that copies of the protest have been mailed or delivered to the using agency;(2) signed by an authorized representative and the signature notarized;(3) filed in the time period specified in this section; and(4) mailed or delivered to:(A) the comptroller; and(B) the using agency.(b) To be considered timely, the protest must be filed:(1) by the end of the posted solicitation period, if the protest concerns the solicitation documents or actions associated with the publication of solicitation documents;(2) by the day of the award of a contract resulting from the solicitation, if the protest concerns the evaluation or method of evaluation for a solicitation;(3) no later than 10 days after the notice of award, if the protest concerns the award; or(4) no later than 10 days after a vendor grade of lower than a C is posted in the system, if the protest involves a grade assigned to a contractor in the vendor performance tracking system.",
            "sourceNote": "Source Note: The provisions of this §20.535 adopted to be effective January 24, 2017, 42 TexReg 242; amended to be effective May 1, 2022, 47 TexReg 2562."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182621&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182621",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.536",
                "label": "Delay of Solicitation or Award"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201947&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201947",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "If a timely protest of a solicitation or contract award is filed under this section, the director may, after consultation with the using agency, delay the solicitation or award of the contract if the director makes a determination that the contract must be awarded without delay, to protect the best interests of the state.",
            "sourceNote": "Source Note: The provisions of this §20.536 adopted to be effective January 24, 2017, 42 TexReg 242."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201947&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201947",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.537",
                "label": "Action by Director"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182623&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182623",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Upon receipt of a protest, the director may:(1) dismiss the protest if:(A) it is not timely; or(B) does not meet the requirements of §20.535 of this title (relating to Filing Requirements); or(2) solicit written responses to the protest from using agencies or other affected vendors and attempt to settle and resolve the protest by mutual agreement.(b) If a protest concerning a solicitation is not resolved by mutual agreement, the director shall issue a written determination that resolves the protest.(c) If a protest concerning a contractor grade is not resolved by mutual agreement, the director shall make the final determination in writing. The director's determination shall be the final administrative action of the comptroller.",
            "sourceNote": "Source Note: The provisions of this §20.537 adopted to be effective January 24, 2017, 42 TexReg 242; amended to be effective November 30, 2020, 45 TexReg 8527."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182623&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182623",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.538",
                "label": "Appeal"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182624&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182624",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If a protest is based on a solicitation or contract award, the protesting party may appeal a determination of a protest by the director to the general counsel. An appeal of the director's determination must be in writing and received in the office of the general counsel not later than 10 days after the date the director sent written notice of the director's determination. The scope of the appeal shall be limited to review of the director's determination. The protesting party must mail or deliver to the using agency and all other interested parties a copy of the appeal, which must contain a certified statement that such copies have been provided.(b) The general counsel may refer the matter to the associate deputy comptroller or chief clerk for consideration or may issue a written decision that resolves the protest.(c) If the general counsel refers the protest to the associate deputy comptroller or chief clerk, the general counsel shall deliver the information the associate deputy comptroller or chief clerk determines necessary.(d) A protest or appeal that is not filed timely shall not be considered unless good cause for delay is shown or the chief clerk determines that an appeal raises issues that are significant to agency procurement practices or procedures in general.(e) A written decision issued by the chief clerk, associate deputy comptroller or the general counsel shall be the final administrative action of the comptroller.",
            "sourceNote": "Source Note: The provisions of this §20.538 adopted to be effective January 24, 2017, 42 TexReg 242."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182624&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182624",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.556",
                "label": "Assessing and Collecting Damages and Testing Costs"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182625&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182625",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The comptroller's statewide procurement division shall assess all damages and shall collect damages and recover testing costs on behalf of the using qualified ordering entity.(b) Failure on the part of the supplier to pay an assessed damage or testing cost may be cause for suspension from the state bid list.(c) If the director identifies repeated complaints on any vendor, that vendor may be removed by the director from the comptroller's bid lists through the debarment process as set forth in Subchapter G of this chapter.",
            "sourceNote": "Source Note: The provisions of this §20.556 adopted to be effective January 24, 2017, 42 TexReg 242."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182625&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182625",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.557",
                "label": "Negotiation and Mediation of Contract Disputes"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182626&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182626",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The negotiation and mediation of breach of contract claims asserted by contractors against the comptroller shall be governed by Chapter 1, Subchapter F of this title (Negotiation and Mediation of Contract Disputes).",
            "sourceNote": "Source Note: The provisions of this §20.557 adopted to be effective January 24, 2017, 42 TexReg 242."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182626&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182626",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.558",
                "label": "Collection of Debts"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199106&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "199106",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The comptroller adopts by reference the rule of the Office of the Attorney General, Title 1, Part 3, Texas Administrative Code relating to Collections. The Office of the Attorney General rules are located at the Office of the Secretary of State's web site.(b) The rules set forth a process for collection of delinquent obligations owed to the comptroller in accordance with Government Code, Chapter 2107, §2107.002.",
            "sourceNote": "Source Note: The provisions of this §20.558 adopted to be effective January 24, 2017, 42 TexReg 242."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199106&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "199106",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.560",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199107&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "199107",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this section, shall have the following meaning unless the context clearly indicates otherwise.(1) Contract manager--Has the meaning assigned by Government Code, §2262.001.(2) Procurement director--The employee designated by a state agency to oversee and be primarily responsible for the procurement of goods and services for the agency.",
            "sourceNote": "Source Note: The provisions of this §20.560 adopted to be effective April 26, 2020, 45 TexReg 2566."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199107&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "199107",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.561",
                "label": "Certification of Contract File"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199108&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "199108",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Each state agency shall include in the contract file for each of its contracts with a value exceeding $50,000 a checklist to ensure the agency's compliance with state laws and rules relating to the acquisition of goods and services by the agency.(b) A state agency's procurement director may delegate to a person in the agency's procurement division the authority to certify the contract file checklist under Government Code, §2262.053(f) under the following conditions:(1) the agency has developed a checklist of documents required by state law or applicable agency rules to be maintained in the contract file;(2) the agency's procurement division has a documented system for ensuring that contract files include complete copies of all documents required by the checklist, and that the contract file is retained by the agency as required by law; and(3) the delegation is in writing.",
            "sourceNote": "Source Note: The provisions of this §20.561 adopted to be effective April 26, 2020, 45 TexReg 2566."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199108&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "199108",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "F",
                "label": "CONTRACT MANAGEMENT"
            },
            "rule": {
                "number": "§20.562",
                "label": "Certification of Vendor Assessment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182627&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182627",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Before a state agency may award a contract to a vendor, the agency's procurement director must review the process and all documents used by the agency to assess each vendor who responded to the solicitation. This requirement applies only to a procurement of goods and services to which Government Code, §2261.0525 applies.(b) A state agency's procurement director may delegate to a person in the agency's procurement office the authority to review and certify the assessment process and documents under Government Code, §2261.0525(a) under the following conditions:(1) the agency's procurement division has a documented system for ensuring the quality of the vendor assessment process, including the quality of documents used to calculate and record the scoring of vendors;(2) the delegation is in writing; and(3) the delegated person:(A) is not the primary contract manager or contract developer for the contract;(B) is in a position in the agency's procurement office that is at least equal to the position of contract manager;(C) is a Certified Texas Contract Manager or Certified Texas Contract Developer under §20.133 of this title (relating to Training and Certification Program), holds a predecessor certification under a previous version of that rule, or is an attorney or certified public accountant licensed to practice in Texas; and(D) has signed all conflict of interest or nepotism forms required for a contract developer for the particular contract.",
            "sourceNote": "Source Note: The provisions of this §20.562 adopted to be effective April 26, 2020, 45 TexReg 2566."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182627&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182627",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "G",
                "label": "DEBARMENT"
            },
            "rule": {
                "number": "§20.581",
                "label": "Purpose and Applicability"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182628&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182628",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The purpose of this subchapter is to protect the interests of the state and to ensure public confidence in the integrity of the state's procurement laws, policies and practices. Debarment is a discretionary action and shall be undertaken only for the reasons in, and under the procedures of, this subchapter.(b) This subchapter applies to all contractors who sell goods and services to the state through any purchasing method authorized by Government Code, Title 10, Subtitle D, Chapters 2155 - 2177. This subchapter applies to vendors and contractors who sell goods or services to a governmental entity whether that entity has been delegated authority by the comptroller or is exempt from the comptroller's procurement rules and procedures.",
            "sourceNote": "Source Note: The provisions of this §20.581 adopted to be effective January 24, 2017, 42 TexReg 243."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182628&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182628",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "G",
                "label": "DEBARMENT"
            },
            "rule": {
                "number": "§20.582",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182629&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182629",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "In this division, bidders lists means the centralized master bidders list maintained by the comptroller and all other state bidders lists.",
            "sourceNote": "Source Note: The provisions of this §20.582 adopted to be effective January 24, 2017, 42 TexReg 243."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182629&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182629",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "G",
                "label": "DEBARMENT"
            },
            "rule": {
                "number": "§20.583",
                "label": "Protecting the State's Interest: Failure to Meet Specifications"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182630&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182630",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) When a contractor's goods or services fail to meet contract specifications, the comptroller shall consider:(1) the degree and nature of the variation between the contract specifications and the specifications of the goods or services actually delivered or offered for delivery;(2) whether the variation creates a hazard to life, health, safety, welfare or property;(3) whether the contractor knew of the variation when the bid was submitted or when the goods were delivered;(4) whether the failure to meet specifications adversely impacts the use of other goods or services;(5) the ability of the contractor to provide the goods or services that do comply with the required specifications;(6) the amount of economic loss to the state; economic loss includes, but is not limited to, costs arising from delay, training of employees, lost productivity, procuring substitute goods or services and any other cost, direct or indirect, arising out of the failure to meet specifications; and(7) any other factors the comptroller determines are relevant to ensure protection of the state's interest; the comptroller shall specify such other factors in a finding made pursuant to §20.586 of this title (relating to Procedures for Investigations and Debarment).(b) In addition to the comptroller, any state agency, including an institution of higher education, may determine that goods and services fail to meet specifications. Where that determination is made by an entity other than the comptroller, the comptroller is authorized to act against the contractor without further testing and inspection of the goods and services.",
            "sourceNote": "Source Note: The provisions of this §20.583 adopted to be effective January 24, 2017, 42 TexReg 243."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182630&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182630",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "G",
                "label": "DEBARMENT"
            },
            "rule": {
                "number": "§20.584",
                "label": "Protecting the State's Interest: Failure to Meet Contract Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182631&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182631",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) When a contractor's goods or services fail to meet contract requirements, the comptroller shall consider whether the failure was:(1) a complete failure to deliver the goods and services or failure to deliver:(A) in the time period specified in the contract;(B) to the location specified in the contract; and(C) in the manner specified in the contract:(2) a failure to deliver goods:(A) in the specified quantity;(B) with the specified invoices or other necessary documentation;(C) in specified packaging;(D) in good and usable condition;(E) without unauthorized substitutions; and(F) with specified installation including specified repair and replacement parts:(3) a failure to deliver services:(A) within the time period specified in the contract;(B) in the manner or at the level specified in the contract considering:(i) unsuitability of the final product for the purpose intended;(ii) lack of integration into or compatibility with other pre-existing systems or processes;(iii) repeated failure of the final product to reliably operate;(iv) repeated cost overruns due to circumstances within the control of the vendor;(v) failure to adhere to contract schedules or ensure timely completion;(vi) failure to provide specified employee training;(vii) failure to provide specified reports;(viii) misrepresentation of qualifications of assigned personnel; and(ix) any other failure to perform that materially affects the quantity or quality of the service:(C) in conformance with:(i) professional standards of care and codes of conduct;(ii) generally accepted principles of the business or profession; and(iii) laws and regulations governing the service, including any proper and necessary licenses, permits, certifications, or other approvals required for the vendor to lawfully perform the services.(b) The comptroller also may evaluate the contractor's performance by considering whether the contractor:(1) provided accurate and timely invoices;(2) provided and maintained proof of insurance, bonds, guarantees, letters of credit or other required documents;(3) provided timely notice of unanticipated factors that may cause delay;(4) responded appropriately to emergencies;(5) maintained sufficient financial responsibility; and(6) any other factors the comptroller determines are relevant to ensure protection of the state's interest; the comptroller shall specify such other factors in a finding made pursuant to this subchapter.",
            "sourceNote": "Source Note: The provisions of this §20.584 adopted to be effective January 24, 2017, 42 TexReg 243."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182631&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182631",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "G",
                "label": "DEBARMENT"
            },
            "rule": {
                "number": "§20.585",
                "label": "Debarment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182632&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182632",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Director actions. Under this subchapter, the director may, in order to protect the interests of the state:(1) conduct an investigation upon a complaint regarding a contractor's acts and omissions in procurement or performance of that contract where the complaint may constitute cause for debarment;(2) cancel one or more of the contractor's active or pending contracts upon a complaint regarding the contractor's acts and omissions in procurement or performance of that contract where the complaint may constitute cause for debarment;(3) assess actual damages and costs incurred due to contractor's failure to perform as specified in the contract;(4) debar a contractor for a specified period of time; and(5) take any other action authorized by law.(b) Any action under subsection (a) of this section shall occur upon notice as required under this subchapter. The director may, in its sole discretion, find that more than one of the actions in subsection (a) of this section is appropriate and necessary to protect the state's interests.(c) Damages for failure to perform. The director may assess actual damages and costs incurred by the state when a contractor fails to perform as specified under a contract. The damages and costs may be assessed whether or not the contractor received notice of investigation or debarment under this subchapter. The director shall consider a failure to pay assessed damages in determining whether to debar a contractor under this subchapter.(d) The director may debar a contractor for a period of no more than five years upon a finding that:(1) continued acceptance of goods or services or contractor performance under the contract may constitute a hazard to health, safety, welfare or property;(2) the contractor committed fraud in the procurement or performance of the contract, including submission of falsified documents by the contractor or any person under the direction or control of the contractor;(3) there was financial participation by a person who received compensation from the governmental entity to participate in preparing the specifications or request for proposals on which the contract is based or there was any other violation of state ethics laws;(4) the contractor has been debarred by another state or by the federal government;(5) the contractor has been convicted of a crime related to fraud in the procurement or performance of any governmental contract including, but not limited to, a conviction for violation of antitrust, collusion, conspiracy, larceny, theft of services, bribery, coercion laws or any other criminal act based on an intent to defraud any governmental entity in the provision of goods or services; and(6) the contractor has publicly indicated an unwillingness to honor a bid award.(e) The director may debar a vendor for a period of no more than five years upon a finding that the contractor's performance was substandard. The comptroller shall consider:(1) the accumulated scoring measured by the Vendor Performance Tracking System and:(A) the number and severity of the contractor's performance failures in relation to the volume of goods and services provided;(B) the effectiveness of remedial measures taken by the contractor; and(C) the age and relevance of past performance information:(2) the contractor's breach of contract where the breach results in:(A) significant economic loss to the state; significant economic loss includes, but is not limited to, costs of delay, procurement from a different vendor, costs of initial procurement, contract administration and any other cost, direct or indirect, arising from or attributable to the breach;(B) a hazard to health, safety, welfare or property; or(C) damage to the state's reputation for integrity in procurement or honest, efficient administration.(f) The director may debar a vendor for a period of no more than five years upon a finding that the contractor's performance has resulted in repeated unfavorable performance reviews under Government Code, §2155.089, or repeated unfavorable classifications received by the vendor under Government Code, §2262.055, after considering the following factors:(1) the severity of the substandard performance by the vendor;(2) the impact to the state of the substandard performance;(3) any recommendations by a contracting state agency that provides an unfavorable performance review; and(4) whether debarment of the vendor is in the best interest of the state.(g) The director may bar a vendor from participating in state contracts that are subject to Chapter 2155, including contracts for which purchasing authority is delegated to a state agency, if more than two contracts between the vendor and the state have been terminated by the state for unsatisfactory vendor performance during the preceding three years.(h) Failure to meet specifications: general. The director shall remove a vendor's name from all bidders lists and prohibit the contractor from responding to solicitations on and receiving any contracts from the state when the contractor's goods or services fail to meet specifications. The period of removal shall be less than one year. The period of time for removal shall be determined by evaluating the factors listed in §20.583 of this title (relating to Protecting the State's Interest: Failure to Meet Specifications).(i) Failure to meet specifications: repeated complaints. If after the period of removal determined under subsection (h) of this section, the director determines that the same contractor or a successor in interest to the contractor has again responded to a contract with goods or services that do not meet specifications, the director shall remove the contractor's name and the contractor's goods and services from all bidders lists for a period of one year.(j) Failure to meet specifications: debarment. If after the expiration of the one year removal under subsection (h) of this section, the director determines that the same contractor or a successor in interest to the contractor has again responded to a contract with goods or services that do not meet specifications, the director shall debar the vendor for a period of no more than five years.",
            "sourceNote": "Source Note: The provisions of this §20.585 adopted to be effective January 24, 2017, 42 TexReg 243."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182632&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182632",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "G",
                "label": "DEBARMENT"
            },
            "rule": {
                "number": "§20.586",
                "label": "Procedures for Investigations and Debarment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182633&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "182633",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Method and content of notice. The director shall notify the contractor by the most expeditious method available, including but not limited to telephone, e-mail, and fax, of an action under this subchapter. In addition to the most expeditious method, the director shall also notify the contractor in writing, via certified mail, return receipt requested. The notice shall be in terms sufficient to apprise the contractor of the conduct or transactions upon which it is based. The director shall notify a contractor when:(1) a contractor is being investigated for potential debarment;(2) a contractor's contracts have been cancelled; or(3) a contractor will be disbarred.(b) Investigation. The director shall investigate a complaint that a contractor has failed to perform under the contract for any of the reasons in this subchapter.(1) The director shall complete its investigation within 120 days of the receipt of the complaint. The director may, upon receipt of a complaint, cancel the contractor's contracts or cease payments under the contractor's contracts during the period the vendor is under investigation.(2) Participation of receiving state agency. The director, in conjunction with the receiving agency, shall decide whether to cancel the contractor's contracts by considering:(A) the effects of a work stoppage on the state agency;(B) the seriousness of the breach of contract;(C) any hazard to health, safety, welfare or property; and(D) any other reason the director and the state agency determine is relevant to the particular circumstances.(c) Contractor response. A contractor shall submit a written response to the director within ten (10) days of receipt of the notice received under subsection (a) of this section. The contractor is presumed to have received the notice upon the director's receipt of fax confirmation or receipt returned by U.S. mail, whichever period is shorter. The director may, for good cause shown, allow the contractor one ten (10) day extension of time to provide the contractor's response.(d) Contents of contractor response. The contractor shall respond to each reason the director cites in the notice and shall include all facts the contractor believes are relevant, including any applicable mitigating circumstances and remedial measures.(e) Director finding. Upon completion of its investigation or upon receipt of the contractor's response, the director shall determine whether the contractor should be debarred. The director shall consider the seriousness of the contractor's acts or omissions and any mitigating factors or remedial measures. The director shall inform the contractor of its finding within ninety (90) days of the original notice provided in subsection (a) of this section. If the director is conducting an investigation under subsection (b) of this section, then the time periods in this subsection are extended by the length of the investigation.(f) Mitigating circumstances. The director shall consider whether the contractor's failure to perform was caused, in whole or in part, by:(1) an act of God or force majeure; the director shall review whether the contractor provided the director with timely notification of the event and the reasonableness of the duration of the contractor's failure to perform after the event;(2) mutual mistake;(3) legal impossibility; or(4) significant economic disruption affecting a particular industry.(g) Remedial measures. The director may consider whether the contractor:(1) immediately identified and remedied the cause of the failure to perform;(2) brought the offending conduct to the attention of the comptroller and fully investigated the circumstances surrounding that conduct;(3) cooperated fully in the director's investigation;(4) recognizes and understands the seriousness of the misconduct giving rise to the cause for debarment; and(5) any other remedial measures, including implementation of control procedures, ethics training, or other disciplinary actions against responsible individuals, that the contractor has instituted.",
            "sourceNote": "Source Note: The provisions of this §20.586 adopted to be effective January 24, 2017, 42 TexReg 243."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=182633&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "182633",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "G",
                "label": "DEBARMENT"
            },
            "rule": {
                "number": "§20.587",
                "label": "Request for Review"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208771&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208771",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The contractor may request a review of the director's finding. To obtain a review, the contractor shall submit a written request for that review within ten (10) days of receipt of the director's finding. Upon timely written request from the affected contractor, a finding that a contractor should be debarred may be reviewed by the Associate Deputy Comptroller responsible for the comptroller's statewide procurement division, or other executive in the comptroller's office designated by the comptroller.(b) The Associate Deputy Comptroller performing the review pursuant to contractor request may reinstate the contractor to the bidders list; reduce the period of debarment; affirm the finding of the director; or reinstate the contractor to a particular contract. The Associate Deputy Comptroller performing the review may take one or more of the actions listed herein and shall specify the results of the decision in writing.(c) The Associate Deputy Comptroller performing the review shall issue the decision on the request for review within sixty (60) days of the receipt of the contractor' request for review.(d) No person who has an interest in the outcome of the reviewing Associate Deputy Comptroller's review may communicate directly or indirectly upon the merits of an investigation or debarment with any division employees prior to the Associate Deputy Comptroller's decision unless that Associate Deputy Comptroller specifically authorizes such communication.",
            "sourceNote": "Source Note: The provisions of this §20.587 adopted to be effective January 24, 2017, 42 TexReg 243."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208771&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208771",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "G",
                "label": "DEBARMENT"
            },
            "rule": {
                "number": "§20.588",
                "label": "Effect of Debarment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208772&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "208772",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "State agencies shall ensure that vendors currently debarred by the comptroller do not participate in state contracting. Each agency shall establish procedures to ensure contracts are not awarded to, and purchases are not made from, debarred vendors. When a vendor is debarred, a state agency shall terminate its contracts with the debarred vendor as soon as practicable, considering such factors as a need to procure replacement goods and services from an alternate vendor.",
            "sourceNote": "Source Note: The provisions of this §20.588 adopted to be effective May 1, 2022, 47 TexReg 2562."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=208772&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "208772",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "1",
                "label": "COMPTROLLER OF PUBLIC ACCOUNTS"
            },
            "chapter": {
                "number": "20",
                "label": "STATEWIDE PROCUREMENT AND SUPPORT SERVICES"
            },
            "subchapter": {
                "number": "I",
                "label": "STATE GRANT FUNDS MANAGEMENT"
            },
            "rule": {
                "number": "§20.600",
                "label": "Denial of State Grant Funds for Local Entities that Prohibit or Discourage Enforcement of Public Camping Ban"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100711&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100711",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) This section implements Local Government Code, §364.004 (Denial of State Grant Funds).(b) This section applies to local entities applying for state grant funds and state agencies awarding state grant funds to local entities.(c) The terms \"local entity,\" \"policy,\" and \"public camping ban\" in this section are defined as they are in Local Government Code, Title 11, §364.001.(d) A local entity may not receive state grant funds, and state grant funds for the local entity must be denied, for the state fiscal year following the year in which a final judicial determination in an action brought by the Attorney General under Local Government Code, §364.003 is made that the entity has intentionally adopted or enforced a policy that prohibited or discouraged the enforcement of a public camping ban.(e) A local entity applying for state grant funds must affirm in its application that it is not prohibited from receiving state grant funds under Local Government Code, §364.004.(f) A local entity applying for state grant funds must disclose in its application whether the local entity has been sued by the Attorney General under Local Government Code, §364.003, and if so, the current posture of the lawsuit.(g) In the event that a local entity receiving state grant funds is sued by the Attorney General under Local Government Code, §364.003 or such a case reaches a final judicial determination, the local entity must immediately disclose the lawsuit or judicial determination to all state agencies that oversee programs from which the entity currently receives state grant funds.(h) A state agency that awards state grant funds must include appropriate assurances in grant applications and grant agreements to ensure that local entities comply with the provisions contained in this section. A state agency must document that the local entity has made such assurances before initiating any payment of state grant funds to the local entity.",
            "sourceNote": "Source Note: The provisions of this §20.600 adopted to be effective May 1, 2022, 47 TexReg 2563."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100711&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100711",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "21",
                "label": "PURPOSE AND SCOPE"
            },
            "rule": {
                "number": "§21.1",
                "label": "Statement of Policy"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100717&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100717",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The rules of the Teacher Retirement System of Texas (TRS) have been arranged generally according to subject matter and placed in numbered sections. Many of the rules are pertinent to and affect more than one of the subjects listed in the section headings. No attempt has been made to include under each heading all of the policies or rules which might be pertinent to that heading. The fact that a rule is included under one heading shall not in any manner limit its application to subjects treated under other headings.(b) These rules are statements of policies in matters over which the board is given authority by applicable statutes and of interpretations in matters where the meaning of the law is not readily apparent. They do not include matters in which the board considered the intent of the law to be unmistakably clear. For this reason, these rules should be used in conjunction with other applicable provisions of law.",
            "sourceNote": "Source Note: The provisions of this §21.1 adopted to be effective January 1, 1976; amended to be effective October 4, 1989, 14 TexReg 4919; amended to be effective June 6, 1999, 24 TexReg 4245; amended to be effective March 12, 2003, 28 TexReg 2091."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100717&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100717",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "23",
                "label": "ADMINISTRATIVE PROCEDURES"
            },
            "rule": {
                "number": "§23.1",
                "label": "Complaints"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=129374&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "129374",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Any person with a complaint regarding the delivery of services by the Teacher Retirement System of Texas (TRS) which cannot be settled by correspondence or informal conference may submit the complaint to the designated TRS Complaint Officer. The Complaint Officer insures that a timely response is provided to the complainant. Information on how to submit a complaint is available upon request from TRS and is also found on the TRS Web site, www.trs.state.tx.us, in the information regarding the TRS Compact With Texans.",
            "sourceNote": "Source Note: The provisions of this §23.1 adopted to be effective January 1, 1976; amended to be effective June 6, 1999, 24 TexReg 4246; amended to be effective March 12, 2003, 28 TexReg 2091."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=129374&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "129374",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "23",
                "label": "ADMINISTRATIVE PROCEDURES"
            },
            "rule": {
                "number": "§23.4",
                "label": "Public Participation in Adoption of Rules"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199208&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "199208",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) \"Interested person\" means any member of the Teacher Retirement System of Texas (TRS); any beneficiary of a member; any retiree of TRS; any guardian, administrator, or executor of a member, retiree, or beneficiary; or any public school. (b) Any interested person may informally request adoption of a rule by correspondence or conference with TRS staff members. If satisfactory results cannot be achieved in this manner, any interested person may petition TRS to adopt, amend, or repeal a rule by filing a clear, written request to initiate rulemaking procedures with the executive director. The petition shall set forth the exact text of the proposed rule and the petitioner's name and address, and the name, business address, and telephone number of petitioner's counsel, if any. The petition may also include written documents in support of the petition. (c) The executive director shall grant or deny the petition within 60 days of its receipt. The executive director may consult informally with staff members and the petitioner in reaching a decision. The petition may be amended with consent of the petitioner at any time before a final decision is rendered. (1) Upon granting the petition in writing, the executive director shall initiate rulemaking proceedings pursuant to the Administrative Procedure Act and the rules and regulations of TRS. (2) Denial of the petition by the executive director, and reasons therefore, shall be in writing. The petitioner may appeal this decision to the board of trustees provided that a written notice of appeal is filed with the executive director within 10 days after the decision of the executive director is issued. If no such notice of appeal is timely filed, or if the next regularly scheduled meeting of the board of trustees will occur more than 60 days after receipt of the petition by the executive director, and the petitioner is unwilling to waive the deadline for a final decision until that meeting, the decision of the executive director shall be a final decision of TRS. The final decision of the board shall be based on the written petition and written decision of the executive director unless the board orders a hearing on the petition. If the board approves the petition, the executive director shall initiate rulemaking proceedings pursuant to the Administrative Procedure Act and the rules and regulations of TRS. (d) All interested persons shall be given a reasonable opportunity to submit oral or written data, views, or arguments on a proposed rule to TRS after publication of notice of the proposed rule in the  Texas Register.  (e) A written request for a public hearing on a proposed substantive rule may be submitted to the executive director within 10 days after publication of notice of the proposed substantive rule in the  Texas Register,  provided that the request is made by 25 persons, a governmental subdivision or agency, or an association having at least 25 members. The request shall contain the name and address of each person requesting the hearing and shall clearly specify the proposed rule for which a hearing is requested. (f) The executive director shall schedule the proposed rule for hearing within a reasonable time but in no event shall the hearing be scheduled earlier than seven days after notice of the hearing date is published. The executive director or the board of trustees may reschedule the hearing in the interest of justice or administrative necessity or for good cause; however, the proposed rule shall not be adopted prior to the requested hearing.  (g) The executive director shall designate himself, a TRS employee, or a specially appointed person as hearing officer to take the testimony of any interested person in support of or in opposition to the rule. The hearing officer shall designate the order of taking testimony and may establish reasonable time limits on oral testimony, provided that reasonable opportunity is given to amplify oral testimony in writing. All hearings will be held in the offices of TRS in Austin, Texas, unless for good cause TRS shall designate another place of hearing.",
            "sourceNote": "Source Note: The provisions of this §23.4 adopted to be effective September 11, 1977, 2 TexReg 3277; amended to be effective June 6, 1999, 24 TexReg 4246; amended to be effective March 12, 2003, 28 TexReg 2091; amended to be effective March 8, 2007, 32 TexReg 1078."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=199208&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "199208",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "23",
                "label": "ADMINISTRATIVE PROCEDURES"
            },
            "rule": {
                "number": "§23.5",
                "label": "Nomination for Appointment to the Board of Trustees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=181766&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "181766",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The following words and terms, when used in this section, have the following meanings, unless context clearly indicates otherwise:(1) Retiree - a former member who has retired under Chapter 824, Government Code and is currently entitled to receive service retirement benefits or disability retirement benefits, disregarding any forfeiture of benefits under Government Code §824.601.(2) Member - A TRS member whose membership has not terminated and who has not elected to participate in the Optional Retirement Program.(3) TRS - the Teacher Retirement System of Texas(4) Board of trustees - the Board of Trustees of TRS(b) During any calendar year in which the term of office expires for one of the four trustees of TRS for which an election is required, TRS will conduct the required election between March 15 and May 5 of that calendar year to select the nominees to be considered by the governor for appointment to the position. To be a nominee, an individual must first either qualify as a candidate in a nominee election in accordance with subsection (d) of this section or be elected as a nominee as a write-in candidate under subsection (k) of this section.(c) TRS may designate an agent to implement or monitor any procedure under this section.(d) An individual may qualify as a candidate on the ballot for a nominee election under this section if the individual meets the applicable nomination eligibility requirement under subsection (e) of this section and submits an official petition that meets the requirements of subsection (f) of this section. If more than one position is open during the same election period, an individual may be a candidate for only one of the positions.(e) To be eligible for nomination under this section, an individual must meet the following requirements:(1) To be a public school district nominee, the individual must be a member currently employed by a public school district, a charter school, or a regional education service center in a position eligible for TRS membership.(2) To be an at-large nominee, the individual must be either a retiree or a member currently employed by an institution of higher education, a public school district, a charter school, or a regional education service center in a position eligible for TRS membership.(3) To be a retiree nominee, the individual must be a retiree.(f) Official petitions must be on a form prescribed by TRS and include the following:(1) the name and expiration date of the appointment sought;(2) the signature of 250 individuals who meet the requirements to vote in the election for the nomination sought by the petitioner at the time the individual signed the petition;(3) the date each individual signed the petition;(4) the printed or typed name of each individual who signed the petition and the first five digits of each individual's current residential zip code; and(5) any additional information required to identify the individuals signing the petition.(g) An individual may sign more than one candidate's petition in any election in which the individual is eligible to vote. The signature of an individual shall not be counted on a petition for a candidate in an election in which the individual is ineligible to vote.(h) Official petition forms, as required under subsection (f) of this section, shall be available from the Teacher Retirement System of Texas, 1000 Red River Street, Austin, Texas 78701-2698. Official petitions must be received by TRS by January 25 of the calendar year in which the election is to be held. If January 25 is a Saturday, Sunday or legal holiday, the filing period is extended to include the next day that is not a Saturday, Sunday or legal holiday.(i) An individual may vote in any election under this section if the individual meets the following requirements at the time of voting:(1) For elections for public school district nominees, individuals must be members whose most recent credited service is or was performed for a public school district, a charter school, or a regional education service center.(2) For elections for retiree nominees, individuals must be retirees.(3) For elections for at-large nominees, individuals must be either a retiree or a member whose most recent credited service is or was performed for an institution of higher education, a public school district, a charter school, or a regional education service center.(j) Upon verification of petitions by TRS or its designated agent, the names of qualified candidates shall be represented on the ballot. Voting may be conducted by paper ballot or in another manner established by the board of trustees under subsection (l) of this section. Voting instructions shall be sent on or before March 15 of the year in which the election is held to the last known home address of each member or retiree or to an electronic mail address designated by the member or retiree. To be counted, a completed ballot must be received by TRS or its designated agent by May 5 of the year in which the election is held and in accordance with the provided voting instructions. If May 5 is a Saturday, Sunday or legal holiday, the voting period is extended to include the next day that is not a Saturday, Sunday or legal holiday. The executive director shall cause the votes to be counted. Names of the candidates for each position receiving the three highest number of votes shall be certified by the executive director as the nominees to be considered by the governor for appointment.(k) TRS or its designated agent shall provide the voter the means to vote for a candidate who is not represented on the ballot. A candidate not represented on the ballot must be eligible for the nomination under subsection (e) of this section and receive a minimum of 250 votes to be considered as one of the three candidates who received the highest number of votes.(l) The board of trustees may establish the manner by which TRS or its designated agent conducts the election, provided that the manner of voting is secure, effective, verifiable, and is conducted using:(1) paper ballot;(2) telephone or other electronic means; or(3) a combination of paper ballot and one or more of the means authorized under this subsection.(m) When a vacancy in a public school district position, at-large position, or retiree position occurs for a reason other than the expiration of a term of office, the board of trustees may conduct an election at any time it determines appropriate.(n) In conducting an election under subsection (m) of this section, the board of trustees shall establish deadlines for filing petitions, the date of mailing ballots, the date for returning ballots, and any other necessary details related to the election process, and the executive director or a designee shall ensure that each candidate has met the requirements of subsection (d) of this section to qualify to be on the ballot for nomination.(o) Terms of board members run for six years and expire August 31. Terms expire on the following dates and every six years thereafter:(1) Public school district appointment, Place One, August 31, 2025.(2) Gubernatorial appointment, Place One, August 31, 2025.(3) State Board of Education appointment, Place One, August 31, 2025.(4) Public School district appointment, Place Two, August 31, 2021.(5) Gubernatorial appointment, Place Two, August 31, 2021.(6) State Board of Education appointment, Place Two, August 31, 2021.(7) At-large appointment, August 31, 2023.(8) Retiree appointment, August 31, 2023.(9) Gubernatorial appointment, Place Three, August 31, 2023.",
            "sourceNote": "Source Note: The provisions of this §23.5 adopted to be effective June 30, 1977, 2 TexReg 2496; amended to be effective April 2, 1979, 4 TexReg 954; amended to be effective April 3, 1981, 6 TexReg 1001; amended to be effective December 1, 1989, 14 TexReg 4919; amended to be effective October 19, 1994, 19 TexReg 8040; amended to be effective June 6, 1999, 24 TexReg 4246; amended to be effective March 12, 2003, 28 TexReg 2091; amended to be effective April 26, 2006, 31 TexReg 3387; amended to be effective March 8, 2007, 32 TexReg 1078; amended to be effective January 17, 2011, 36 TexReg 145; amended to be effective January 5, 2012, 36 TexReg 9339; amended to be effective July 17, 2014, 39 TexReg 5429; amended to be effective May 12, 2020, 45 TexReg 3136."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=181766&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "181766",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "23",
                "label": "ADMINISTRATIVE PROCEDURES"
            },
            "rule": {
                "number": "§23.7",
                "label": "Code of Ethics for Contractors"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=181767&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "181767",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The Code of Ethics for Contractors (the Code) sets forth the ethical responsibilities and requirements of Contractors, as that term is defined in the Code, in performing services for the Teacher Retirement System of Texas (TRS). The Board of Trustees of TRS adopts by reference the Code as most recently revised and adopted to be effective June 16, 2016. A copy of the most recently revised Code has been filed with the Office of the Secretary of State in Austin. Copies of the Code are available from TRS at 1000 Red River Street, Austin, Texas 78701-2698, (512) 542-6400. Also, a copy of the Code can be found on and printed from the TRS website, www.trs.texas.gov, in the information regarding TRS Ethics.",
            "sourceNote": "Source Note: The provisions of this §23.7 adopted to be effective January 11, 1995, 19 TexReg 10552; amended to be effective June 6, 1999, 24 TexReg 4246; amended to be effective March 12, 2003, 28 TexReg 2091; amended to be effective April 29, 2004, 29 TexReg 3967; amended to be effective March 8, 2007, 32 TexReg 1078; amended to be effective March 23, 2011, 36 TexReg 1827; amended to be effective June 20, 2013, 38 TexReg 3797; amended to be effective December 29, 2016, 41 TexReg 10389."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=181767&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "181767",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "23",
                "label": "ADMINISTRATIVE PROCEDURES"
            },
            "rule": {
                "number": "§23.8",
                "label": "Expenditure Reporting by Certain Contractors"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=186589&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "186589",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Under §23.7 of this title (relating to Code of Ethics for Contractors) and the Code of Ethics for Contractors (the Code) adopted by the Board of Trustees of the Teacher Retirement System of Texas (TRS), each Contractor, as that term is defined in the Code, must annually file an expenditure report on the prescribed TRS form. The Contractor must include in the report itemized, reasonably detailed lists of expenditures of more than $50 per day made by or on behalf of the Contractor with respect to or for the benefit of each TRS Trustee or Employee. Each Contractor must comply with TRS rules governing the filing of and requirements for the expenditure reporting form promulgated by TRS, including the Code, Expenditure Reporting Memorandum (reporting memorandum), and Expenditure Reporting Form for Contractors (reporting form) as promulgated and applicable under the Code and revised from time to time. TRS adopts by reference the reporting memorandum as most recently revised February 10, 2016 and the reporting form as most recently revised June 16, 2016. Capitalized words appearing in this section have the same meaning assigned to them in the Code, as revised from time to time. Copies of the most recently revised reporting memorandum and reporting form have been filed with the Office of the Secretary of State in Austin. Copies of the reporting memorandum and the reporting form are available from TRS at 1000 Red River Street, Austin, Texas 78701-2698, (512) 542-6400. Also, copies of the reporting memorandum and the reporting form can be found on and printed from the TRS website, www.trs.texas.gov, in the information regarding TRS Ethics.",
            "sourceNote": "Source Note: The provisions of this §23.8 adopted to be effective January 11, 1995, 19 TexReg 10552; amended to be effective June 6, 1999, 24 TexReg 4246; amended to be effective March 12, 2003, 28 TexReg 2091; amended to be effective April 29, 2004, 29 TexReg 3967; amended to be effective March 8, 2007, 32 TexReg 1078; amended to be effective March 23, 2011, 36 TexReg 1827; amended to be effective June 20, 2013, 38 TexReg 3797; amended to be effective December 29, 2016, 41 TexReg 10389."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=186589&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "186589",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "23",
                "label": "ADMINISTRATIVE PROCEDURES"
            },
            "rule": {
                "number": "§23.9",
                "label": "Communicating Information Electronically"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175635&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175635",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The Teacher Retirement System of Texas (TRS) may provide a summary of the benefits administered by TRS, the procedures for claiming the benefits, notice of and information related to changes in the benefits or programs administered by TRS, and any other non-confidential information required by §802.106, Government Code, or determined by TRS to be beneficial for distribution by sending the information to a work email address provided by the member's or retiree's employer or by directing the member or retiree through a work email provided by that individual's employer to an internet website to access non-confidential information. Confidential information related to a specific member or retiree may be provided by TRS electronically to the email address provided by the member, retiree, or authorized requestor or to the member's or retiree's TRS web self-service account, provided the confidential information is encrypted or TRS has otherwise taken reasonable steps to protect the confidential information from unauthorized disclosure.",
            "sourceNote": "Source Note: The provisions of this §23.9 adopted to be effective November 14, 2017, 42 TexReg 6370."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175635&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175635",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "A",
                "label": "SERVICE ELIGIBLE FOR MEMBERSHIP"
            },
            "rule": {
                "number": "§25.1",
                "label": "Full-time Service"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100754&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100754",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Employment of a person by a single TRS covered employer for one-half or more of the standard full-time work load at a rate comparable to the rate of compensation for other persons employed in similar positions is regular, full-time service eligible for membership.(b) Any employee of a public state-supported educational institution in Texas shall be considered to meet the requirements of subsection (a) of this section if his or her customary employment with a single employer is for 20 hours or more for each week and for four and one-half months or more.(c) Membership eligibility for positions requiring a varied work schedule is based on the average of the number of hours worked per week in a calendar month and the average number of hours worked must equal or exceed one-half of the hours required for a similar full-time position.(d) For purposes of subsection (a) of this section, full-time service is employment that is usually 40 clock hours per week. If the TRS-covered employer has established a lesser requirement for full-time employment for specified positions that is not substantially less than 40 hours per week, full-time service includes employment in those positions. In no event may full-time employment require less than 30 hours per week.(e) Beginning on the first day of the 2011-2012 school year and thereafter:(1) Except as provided in subsection (j) of this section regarding adjunct faculty, if there is no equivalent full-time position of a given position, the minimum number of hours required per week that will qualify the position for TRS membership is 15.(2) The requirement in this subsection applies to all positions, including bus drivers.(f) For school years prior to the 2011-2012 school year:(1) If there is no equivalent full-time position of a given non-certified position, the minimum number of hours required per week that will qualify the position for TRS membership is 15.(2) If there is no equivalent full-time position of a given certified position, the minimum number of hours required per week that will qualify the position for TRS membership is 20.(3) Persons regularly employed as bus drivers for routes approved by the Transportation Department of the Texas Education Agency are eligible for membership. A person will be considered regularly employed as a bus driver if his or her customary employment requires driving at least one such route per day.(g) For purposes of subsection (a) of this section, regular employment is employment that is expected to continue for four and one-half months or more. Employment with an institution of higher education (including community and junior colleges) is regular employment if it is expected to continue for more than one full semester or continues for more than one full semester in the same school year. Employment that is expected to continue for less than four and one-half months or for no more than one full semester in a school year is temporary employment and is not eligible for membership.(h) For purposes of subsection (a) of this section, a rate of compensation is comparable to other persons employed in similar positions if the rate of compensation is within the range of pay established by the Board of Trustees for other similarly situated employees or is the customary rate of pay for persons employed by that employer in similar positions.(i) For purposes of this section, employment in institutions of higher education (including community and junior colleges) as an instructor of classes taken by students for college credit or classes that are taken to prepare students for college level work, that are measured or expressed in terms of the number of courses; semester or course hours/credits; instructional units; or other units of time representing class or instructional time must be converted to clock hours and counted as a minimum of two clock hours for each clock hour of instruction or time in the classroom or lab in order to reflect instructional time as well as preparation, grading, and other time typically associated with one hour of instruction. If the employer has established a greater amount of preparation time for each hour in the classroom or lab, the employer's standard will be used to determine the number of clock hours scheduled for work. Employment as an instructor of an on-line class taken by students for college credit that is measured or expressed in terms of the number of courses; semester or course hours/credits; instructional units; or other units of time representing class or instructional time must be counted as a minimum of two clock hours for each course hour or semester hour. Employment as an instructor of continuing education, adult education, and/or classes offered to employers or businesses for employee training, that is not measured or expressed in terms of the number of courses; semester or course hours/credits; or instructional units or other units of time rather than clock hours and for which the students/participants do not receive college credit must be considered for membership based on the number of clock hours worked.(j) Beginning on the first day of the 2013-2014 school year, the minimum number of hours required per week that will qualify an adjunct faculty position for TRS membership is 20. Effective with the beginning of the 2015-2016 school year, the minimum number of hours per week that will qualify an adjunct faculty position as eligible for membership in TRS must be served with a single employer or must meet the requirements of §25.6 of this title (relating to Part-time or Temporary Employment). For purposes of this section, an adjunct faculty position is an instructor position that is filled on a semester-by-semester basis, compensated on a per class basis, and the duties include only those directly related to instruction of students in a class taken by students for college credit or taken to prepare students for college level work. If a person combines work as an adjunct faculty instructor and any other type of employment, the minimum number of hours worked per week that will qualify the person for membership is 20.(k) A person employed by an open enrollment charter school authorized under Subchapter D, Chapter 12, Education Code, or the open enrollment charter holder is eligible for membership in TRS if the person is performing services on behalf of the Texas open enrollment charter school and the employment otherwise meets the requirements of this section. A person employed by a management company or other entity retained by the charter school or charter holder to provide management or other services on behalf of the open enrollment charter school is not eligible for membership in TRS.(l) A person employed by a Texas public school district and performing services on behalf of a campus or program charter school authorized under Subchapter C, Chapter 12, Education Code, is eligible for membership in TRS if the employment otherwise meets the requirements of this section. An employee of an open enrollment charter holder that is contracted to provide services to a campus or program charter school is eligible for membership in TRS if the person is performing services on behalf of the campus or program charter school and the employment otherwise meets the requirements of this section. An employee of a management company or other entity retained to provide management or other services on behalf of the campus or program charter school is not eligible for membership in TRS.(m) Beginning on September 1, 2015, if an employee is employed in two or more part-time positions with a single employer, the minimum number of hours the employee must work in all positions in order to establish eligibility for membership in TRS must equal or exceed one-half of the hours required for the full-time equivalent position requiring the greater number of hours per week.",
            "sourceNote": "Source Note: The provisions of this §25.1 adopted to be effective January 1, 1976; amended to be effective June 1, 1995, 20 TexReg 3733; amended to be effective June 15, 1999, 24 TexReg 4454; amended to be effective March 12, 2003, 28 TexReg 2093; amended to be effective October 25, 2006, 31 TexReg 8728; amended to be effective March 8, 2007, 32 TexReg 1078; amended to be effective April 1, 2011, 36 TexReg 1828; amended to be effective June 3, 2013, 38 TexReg 3652; amended to be effective August 15, 2013, 38 TexReg 5110; amended to be effective July 17, 2014, 39 TexReg 5430; amended to be effective December 22, 2014, 39 TexReg 10021; amended to be effective January 1,2016, 40 TexReg 9724."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100754&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100754",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "A",
                "label": "SERVICE ELIGIBLE FOR MEMBERSHIP"
            },
            "rule": {
                "number": "§25.3",
                "label": "Independent or Third-Party Contractors"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213722&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "213722",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Except as provided in laws and rules regarding retirement with reduction for early-age, persons who perform services in a public school as employees of third parties which are not employers under §821.001 of the Government Code and independent contractors who perform services in a public school are not eligible for TRS membership.",
            "sourceNote": "Source Note: The provisions of this §25.3 adopted to be effective January 1, 1976; amended to be effective March 12, 2003, 28 TexReg 2093."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213722&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "213722",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "A",
                "label": "SERVICE ELIGIBLE FOR MEMBERSHIP"
            },
            "rule": {
                "number": "§25.4",
                "label": "Substitutes"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213723&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "213723",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Persons who serve as substitutes in positions otherwise eligible for membership may qualify for membership provided that they serve for at least 90 days in one school year and purchase the service credit.(b) For purposes of this title, a substitute is a person who serves on a temporary basis in the place of a current employee. A substitute may be paid no more than the daily rate of pay set by the employer.(c) Membership may be established and credit received by verifying the number of days worked as a substitute and salary earned and paying the actuarial cost required under §25.43 of this title (relating to Cost for Unreported Service or Compensation). Verification must be made in a form prescribed by the retirement system and is subject to the deadlines for verification of unreported service under §25.47 of this title (relating to Deadline for Verification).(d) In no event shall verification of substitute service be accepted after a member has retired from the system and his or her first monthly annuity payment has been issued or after the effective date of a member's participation in the Deferred Retirement Option Plan (DROP).(e) Required actuarial costs must be paid before any benefits based on the verified substitute service are paid by TRS on behalf of the member or before the verified service is used to determine eligibility for benefits. Members claiming credit for such service will be assessed a fee for delinquent deposits, if applicable, as provided in §25.43 of this title.(f) Payment for substitute service required in subsection (e) of this section will be accepted and credit granted only as permissible under the Internal Revenue Code.(g) Substitute service purchased as provided in this section shall be included in the school year in which it was rendered in counting the amount of service provided in order to receive a year of service credit under §25.131 of this title (relating to Required Service).",
            "sourceNote": "Source Note: The provisions of this §25.4 adopted to be effective January 1, 1976; amended to be effective January 1, 1979, 3 TexReg 4439; amended to be effective March 12, 2003, 28 TexReg 2093; amended to be effective April 4, 2006, 31 TexReg 2868; amended to be effective April 1, 2011, 36 TexReg 1828; amended to be effective January 1, 2016, 40 TexReg 9724; amended to be effective June 8, 2023, 48 TexReg 2859."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213723&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "213723",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "A",
                "label": "SERVICE ELIGIBLE FOR MEMBERSHIP"
            },
            "rule": {
                "number": "§25.6",
                "label": "Part-time or Temporary Employment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=186590&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "186590",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Part-time (employment that is less than one-half the standard work load), irregular, seasonal, or temporary employment (employment for a definite period of less than four and 1/2 months or, for employment with an institution of higher education, the employment is for no more than one semester in a school year) is eligible only if combined with other employment with the same employer so that the combined employment qualifies as service eligible for membership, or if other employment with the same or another TRS-covered employer in itself qualifies as service eligible for membership.",
            "sourceNote": "Source Note: The provisions of this §25.6 adopted to be effective January 1, 1976; amended to be effective September 26, 1979, 4 TexReg 330; amended to be effective April 1, 2011, 36 TexReg 1828; amended to be effective June 3, 2013, 38 TexReg 3652; amended to be effective January 1, 2016, 40 TexReg 9724; amended to be effective June 8, 2023, 48 TexReg 2859."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=186590&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "186590",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "A",
                "label": "SERVICE ELIGIBLE FOR MEMBERSHIP"
            },
            "rule": {
                "number": "§25.10",
                "label": "Student Employment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196323&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "196323",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Effective with the beginning of the 2017-18 school year, a person employed in a Texas public college or university is not eligible for membership, service credit, or compensation credit based on employment that is conditioned upon enrollment as a student and compensation paid to the person for work performed as a student employee is not compensation subject to report and deduction for member contributions. For school years prior to the 2017-18 school year, a person employed in a Texas public college or university is not eligible for membership if that employment is conditioned upon enrollment as a student and the person has no other eligible employment during the same payroll period. No person may establish or reinstate credit for previously reported student employment.(b) A person who accepts employment conditioned upon enrollment as a student does not lose any rights from service established as a member when student enrollment was or is not an issue.",
            "sourceNote": "Source Note: The provisions of this §25.10 adopted to be effective January 1, 1976; amended to be effective September 11, 1977, 2 TexReg 3277; amended to be effective June 15, 1999, 24 TexReg 4454; amended to be effective November 14, 2017, 42 TexReg 6371."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196323&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "196323",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "A",
                "label": "SERVICE ELIGIBLE FOR MEMBERSHIP"
            },
            "rule": {
                "number": "§25.11",
                "label": "Employees of Foreign TRS Subsidiaries"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227120&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227120",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A person is not eligible for membership, service credit, or compensation credit based on employment by a subsidiary of the Teacher Retirement System of Texas (TRS) that has its principal office located in a jurisdiction other than the United States.",
            "sourceNote": "Source Note: The provisions of this §25.11 adopted to be effective August 22, 2019, 44 TexReg 4324."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227120&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227120",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "B",
                "label": "COMPENSATION"
            },
            "rule": {
                "number": "§25.21",
                "label": "Compensation Subject to Deposit and Credit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100756&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100756",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The contributions required from a member to the Teacher Retirement System of Texas are generally based upon the member's annual compensation. Benefits paid by the retirement system are also generally based in whole or in part upon the annual compensation credited to a member for certain school years. A member's annual compensation for any particular school year has the meaning given by the law and rules applicable for that year. Beginning with the 1981-1982 school year, and for school years thereafter, annual compensation consists of the salary and wages that are paid or payable to a member for employment which is eligible for membership in the retirement system during that school year.(b) Some payments made by an employer to a member are not salary or wages, even though the payments may be otherwise considered as compensation under the employment contract or federal tax laws. In general salary and wages creditable and subject to deposit are those types of monetary compensation that are recurring base pay for periods of employment and that:(1) are earned or accrue proportionally as the work is performed, so that a member terminating employment between pay periods is entitled to a proportional amount of the compensation based on either length of employment or amount of work performed;(2) are paid or payable at fixed intervals, generally at the end of each pay period; and(3) are not specifically excluded under subsection (d) of this section.(c) The following types of monetary compensation are to be included in annual compensation:(1) amounts deducted from regular pay for the state-deferred compensation program, for a tax-sheltered annuity, or for a deferred compensation arrangement qualifying under the United States Internal Revenue Code, §401(k);(2) normal payroll deductions which are not tax-exempt or tax-deferred;(3) additional compensation paid for additional duties, for longevity, for overtime worked as required by law, or for service in a particular location or specialty the employer determines requires additional compensation compared to other employees of that employer, provided that these payments clearly meet the requirements of subsection (b) of this section;(4) delayed payments of lump-sum amounts which by law or contract should have been paid at fixed intervals and which otherwise meet the requirements of subsection (b) of this section provided the amounts are credited to the payroll period in which they were earned;(5) amounts withheld from regular pay under a cafeteria plan as provided by §25.22 of this title (relating to Contributions to Cafeteria Plans and Deferred Compensation);(6) performance pay provided it meets the requirements of §822.201(b)(4), Government Code and §25.24 of this title (relating to Performance Pay);(7) compensation received under the relevant parts of the educator excellence awards program under Subchapter O, Chapter 21, Education Code, or a mentoring program under §21.458, Education Code, that authorize compensation for service, and compensation earned under the awards for student achievement program under Subchapter N of Chapter 21, Education Code, prior to the repeal of statutory provisions authorizing that program;(8) a merit salary increase made under §51.962, Education Code;(9) amounts deducted from regular pay for a qualified transportation benefit under §659.202, Government Code;(10) compensation designated as health care supplementation by an employee under Subchapter D, Chapter 22, Education Code;(11) workers' compensation paid as temporary wage replacement pay and reported or verified to TRS and with member contributions paid on the amount of workers' compensation, by the end of the school year following the year in which it was paid. Workers' compensation paid as temporary wage replacement pay and not reported or verified to TRS with member contributions paid on the workers' compensation in the time period provided may be verified and purchased as provided in §25.45 of this title (relating to Verification of Unreported Compensation or Service) and §25.43 of this title (relating to Cost for Unreported Service or Compensation) no later than the end of the fifth year following the school year in which it may be reported or verified under this paragraph; and(12) increased compensation paid by a school district using funds received by the district under:(A) the teacher incentive allotment under §48.112, Education Code;(B) the teacher retention allotment under §48.158, Education Code; or(C) the support staff retention allotment under §48.1581. (d) The following are excluded from annual compensation:(1) allowances, including housing, car, cell phone, and expense allowances;(2) reimbursements for expenses;(3) payments for accrued compensatory time for overtime worked or for accrued sick leave or vacation, except that continued payments of normal compensation when vacation, sick, administrative, or emergency leave or compensatory time is actually taken by an employee will be included in annual compensation to the extent otherwise permitted by this section;(4) benefits, except as provided in subsection (c)(1) of this section, which either are not subject to federal income tax or which will be subject to federal income tax in a future year;(5) bonus and incentive payments, including signing or retention bonuses that are offered to entice a person to enter into an employment arrangement or to stay for a period of time in an employment arrangement, whether paid under Subchapter O, Chapter 21, the Education Code, or other authority, unless state law expressly provides that a type of bonus or incentive payment is to be considered TRS-creditable compensation;(6) employer payments for fringe benefits, including direct cash payments in lieu of fringe benefits, except as provided in §25.22 of this title (relating to Contributions to Cafeteria Plans and Deferred Compensation);(7) payments, except as provided in subsection (c)(1), (2), (5), and (9) of this section, made to third parties for the benefit of a member;(8) payments for work as an independent contractor or consultant;(9) all nonmonetary compensation;(10) active employee health coverage or compensation supplementation or any other amount received by an employee under former Article 3.50-8, Insurance Code; former Chapter 1580, Insurance Code; Subchapter D, Chapter 22, Education Code, as that subchapter existed on January 1, 2006; or Rider 9, page III-39, Chapter 1330, Acts of the 78th Legislature, Regular Session, 2003 (the General Appropriations Act), regardless of whether the employee receives the amount in cash, uses it for payment of health care coverage, or uses it for any other option available by law;(11) any other fringe benefit;(12) payments that an employer intentionally does not include in salary and wages because they are not expected to be permanently recurring in each pay period of employment or because they are not considered base pay and that, for the protection of the actuarial soundness of the retirement system, the type of payment should not be included in the calculation of a lifetime retirement benefit intended to replace a percentage of the member's base pay at retirement;(13) payments for terminating employment or paid as an incentive to terminate employment. Examples of such payments include payments for contract buy-outs, amounts paid pursuant to an agreement in which the employee agrees to terminate employment or to waive or release rights to future employment, and amounts paid pursuant to early retirement incentive programs or other programs intended to increase the compensation paid to the employee upon receipt of the resignation of the employee or the waiver or release of rights to future employment. Increased compensation paid in the final year of employment prior to retirement that exceeds increases approved by the employer for all employees or classes of employees is presumed to be payment for terminating employment;(14) payments received under relevant parts of the educator excellence awards program under Subchapter O, Chapter 21, Education Code that do not represent payments for service rendered by the member;(15) except as provided in §25.28(e) of this title (relating to Payroll Report Dates), amounts paid pursuant to a settlement agreement except that compensation paid to an employee while on paid leave of any type, including paid administrative or emergency leave under the terms of a settlement agreement is creditable under paragraph (3) of this subsection; and(16) differential pay that is less than 50% of the compensation for service in a full-time position. Differential pay is pay by an employer to a member who leaves membership eligible employment to serve in the military and the pay represents all or some of the difference between what the member earned in the TRS covered employment and what he or she is earning in the military job. Differential pay that is at least 50% of the compensation for full-time service in the membership eligible position may be reported to TRS and deposits submitted at the discretion of the employer.(e) The maximum amount of compensation of any member that may be taken into account under the retirement system shall not exceed $150,000 for plan years commencing on or after September 1, 1996. For plan years commencing on or after January 1, 2002, the maximum amount of compensation shall not exceed the limit contained in the Internal Revenue Code §401(a)(17)(A), 26 United States Code §401(a)(17)(A). For plan years beginning before January 1, 1997, in determining the compensation of any member for any year, the family aggregation rules of the Internal Revenue Code §414(q)(6), 26 United States Code §414(q)(6) shall apply except the term \"family\" shall include only the spouse of the member and any lineal descendants of the member who have not attained age 19 before the end of the year. The limits set forth in the first two sentences of this subsection shall be increased from time to time, to reflect cost of living increases, in accordance with the Internal Revenue Code §401(a)(17), 26 United States Code §401(a)(17). The dollar limitation prescribed in the first two sentences of this subsection shall not apply to limit the compensation of any person who first becomes a member before September 1, 1996. Furthermore, that limitation shall not apply for any period during which such limitation is repealed or is not enforced by the Internal Revenue Service with regard to governmental plans. In applying the limits described in this section, a plan year is September 1 through August 31.(f) TRS may rely upon employer certifications in determining creditable compensation or may conduct an investigation to determine whether any ineligible compensation has been reported. At the request of TRS, employers will provide copies of any records or information the retirement system requests. Such records may include, but are not limited to, copies of contracts, work agreements, salary schedules or addenda, board minutes, payroll records, or other materials that will assist the retirement system in making a determination.",
            "sourceNote": "Source Note: The provisions of this §25.21 adopted to be\r\neffective September 26, 1979, 4 TexReg 3303; amended to be effective\r\nSeptember 4, 1981, 6 TexReg 3097; amended to be effective December\r\n4, 1985, 10 TexReg 4534; amended to be effective September 1, 1989,\r\n14 TexReg 4133; amended to be effective June 1, 1995, 20 TexReg 3733;\r\namended to be effective March 12, 2003, 28 TexReg 2094; amended to\r\nbe effective July 22, 2003, 28 TexReg 5659; amended to be effective\r\nOctober 18, 2006, 31 TexReg 8563; amended to be effective March 8,\r\n2007, 32 TexReg 1079; amended to be effective May 22, 2008, 33 TexReg\r\n4003; amended to be effective January 24, 2010, 35 TexReg 502; amended\r\nto be effective April 1, 2011, 36 TexReg 1830; amended to be effective\r\nJune 20, 2013, 38 TexReg 3798; amended to be  effective December 15,\r\n2014, 39 TexReg 9705; amended to be effective May 25, 2022, 47 TexReg\r\n3060; amended to be effective December 30, 2025, 50 TexReg 8616."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100756&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100756",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "B",
                "label": "COMPENSATION"
            },
            "rule": {
                "number": "§25.22",
                "label": "Contributions to Cafeteria Plans and Deferred Compensation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=181758&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "181758",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In this section:(1) \"deferred compensation plan\" means a plan qualifying under the United States Internal Revenue Code, §§401(k), 403(b), or 457; and(2) \"cafeteria plan\" means a compensation plan in which employees are given a choice of cash or fringe benefits in a manner that qualifies under the United States Internal Revenue Code, §125.(b) The contributions to a deferred compensation plan or cafeteria plan that are withheld from the salary and wages of an employee will be included in annual compensation if:(1) the contributions were originally included in the employee's salary;(2) the contributions are withheld from the employee's salary under a voluntary written salary reduction agreement;(3) the benefit plan and each option in the plan, if options are offered, are available to all Teacher Retirement System (TRS) members employed; and(4) with respect to contributions to a cafeteria plan, the benefit options in the plan are limited to one or more of the following:(A) group health insurance;(B) disability payments;(C) health care reimbursements;(D) group term life insurance;(E) dependent care assistance;(F) group legal services;(G) a deferred compensation arrangement qualifying under §401(k).(c) The following contributions to deferred compensation or cafeteria plans are not includable in annual compensation:(1) contributions obtained from mandatory deductions or withholdings from employee salaries;(2) direct employer contributions as described in subsection (f) of this section;(3) any contributions to a cafeteria plan if the plan contains options (other than cash) in addition to those listed in subsection (b)(4) of this section;(4) any contribution to a deferred compensation or cafeteria plan if the plan or any options within the plan are not available to all TRS members employed by the employer;(5) any contributions to a cafeteria plan if the plan offers employees not desiring benefits to receive cash in lieu of the employer's direct contributions to the plan as described in subsection (f) of this section;(6) any contributions to a retirement plan in which the contributions are picked up by an employer;(7) any employee contributions made by salary reduction to a fringe benefit or deferred compensation plan that does not qualify under the United States Internal Revenue Code, §§125, 401(k), 403(b), or 457; or(8) any contribution made as active employee health coverage or compensation supplementation under Article 3.50-8, Insurance Code, regardless of whether the employee uses it for payment of health care coverage or for any other option available by law. Payment of the compensation supplementation is not includable in annual compensation.(d) To be considered an acceptable voluntary salary reduction agreement for the purposes of subsection (b)(2) of this section, the agreement must be in writing and each employee must have a bona fide option whether or not to sign it.(e) A contribution as used in this section is either a direct contribution to a benefit program made by an employer or a contribution to a benefit program that is made by an employee through a voluntary salary reduction agreement. Nothing in this section should be interpreted to exclude amounts from annual compensation that are simply deductions from an employee's normal salary (without a salary reduction agreement) for payment to a benefit program, such as group insurance.(f) Direct employer contributions are the payments made by the employer to an employee benefit program that were not obtained as a result of an employee's voluntary salary reduction agreement. The existence of direct employer contributions to deferred compensation or cafeteria plans does not in itself disqualify employee contributions to the same plan from being considered as annual compensation. However, direct employer contributions are not in themselves ever to be included in annual compensation. Further, if employees are given the option in a cafeteria plan of taking the direct employer contribution as cash, then no employee contributions to the plan are includable in annual compensation.(g) Contributions from voluntary salary reduction agreements to deferred compensation plans that qualify under the United States Internal Revenue Code, §401(k), and to cafeteria plans are includable in annual compensation beginning September 1, 1985. Employee contributions to tax sheltered annuities qualifying under the United States Internal Revenue Code, §403(b), and to the state deferred compensation program have always been includable in annual compensation.",
            "sourceNote": "Source Note: The provisions of this §25.22 adopted to be effective December 4, 1985, 10 TexReg 4536; amended to be effective March 12, 2003, 28 TexReg 2094."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=181758&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "181758",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "B",
                "label": "COMPENSATION"
            },
            "rule": {
                "number": "§25.24",
                "label": "Performance Pay"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213727&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "213727",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Annual compensation includes performance pay earned under a total compensation plan specifically approved by vote of the governing board of an employer. Such approval must be reflected in the minutes of the governing board. Any employer reporting to the retirement system is considered a school district for the purposes of this section.(b) For purposes of including performance pay as a part of annual compensation under this rule, a total compensation plan must describe all elements of compensation received by all employees of the employer.(c) Performance pay is compensation for service as an employee in a Texas public educational institution that is paid under a valid employment agreement based upon a performance standard published in written documents adopted by the employer. The performance standard may be based on evaluations or goal achievement of the individual employee or of the group in which the individual belongs. Beginning on the first day of the 2011-2012 school year and thereafter, specific amounts of performance pay will be credited to the year in which the performance pay is paid. For school years prior to the 2011-2012 school year, specific amounts of performance pay will be credited to the year in which the standards establishing the right to the performance pay are met or in which the service occurred, whichever is earlier. Performance pay paid in the 2011-2012 school year that is based on service rendered prior to the 2011-2012 school year will be credited to the school year in which the standards establishing the right to the performance pay are met or the school year in which the service occurred, whichever is earlier.(d) An employer shall certify each year to the retirement system, by a date specified by the system on a form prescribed by TRS, whether it is providing performance pay under this section. A district that has properly made this certification shall report all qualifying performance pay as compensation and make appropriate deductions for member contributions unless the retirement system advises the employer that such pay does not qualify as performance pay under this rule. Employer shall maintain records that show it provides such pay for a period not less than 7 years after such pay is reported to the retirement system.(e) Beginning on the first day of the 2011-2012 school year and thereafter, performance pay earned during the school year in which the member retires or any previous school year and paid after the member has begun receiving retirement benefits is not creditable by TRS and will not be used in any benefit calculation. For school years prior to the 2011-2012 school year, if performance pay earned during the school year in which the member retires is paid after the member has begun receiving retirement benefits, any benefit adjustment needed will be made effective the month following the month in which TRS receives the deposits for the performance pay, subject to any applicable limits under 26 United States Code §415.",
            "sourceNote": "Source Note: The provisions of this §25.24 adopted to be effective October 28, 1999, 24 TexReg 9298; amended to be effective March 12, 2003, 28 TexReg 2094; amended to be effective April 1, 2011, 36 TexReg 1830; amended to be effective December 29, 2016, 41 TexReg 10390."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213727&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "213727",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "B",
                "label": "COMPENSATION"
            },
            "rule": {
                "number": "§25.25",
                "label": "Required Deposits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=192662&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "192662",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Members shall deposit with the Teacher Retirement System of Texas the applicable percentage under §825.402, Government Code of their compensation received each pay period, including compensation received for part-time, irregular, seasonal, or temporary employment in a school year in which the member rendered service eligible for membership and the part-time, irregular, seasonal, or temporary employment is concurrent with other employment or rendered in a school year in which the member has already rendered sufficient service in an eligible position or combination of positions to earn a year of service credit.(b) Deposits due for a pay period must be deducted by the employer from the member's salary for that pay period.(c) The employer must submit the deposits with each regular payroll report to TRS.(d) A member employed in an eligible position or in a combination of positions that together qualifies as service eligible for membership, as defined in TRS laws and rules, must make contributions on all eligible compensation received from all TRS-covered employers.",
            "sourceNote": "Source Note: The provisions of this §25.25 adopted to be effective September 26, 1979, 4 TexReg 3303; amended to be effective September 4, 1981, 6 TexReg 3097; amended to be effective January 7, 1986, 10 TexReg 4950; amended to be effective March 12, 2003, 28 TexReg 2094; amended to be effective April 1, 2011, 36 TexReg 1830; amended to be effective July 17, 2014, 39 TexReg 5430; amended to be effective December 15, 2014, 39 TexReg 9705; amended to be effective June 8, 2023, 48 TexReg 2859."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=192662&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "192662",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "B",
                "label": "COMPENSATION"
            },
            "rule": {
                "number": "§25.26",
                "label": "Annual Compensation Creditable for Benefit Calculation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=186591&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "186591",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as provided in subsections (b), (g) and (h) of this section, for the purpose of computing the amount of a retirement benefit or a death benefit under §824.402, Government Code, annual compensation means creditable compensation for service paid to a member of the retirement system during a 12-month period beginning September 1 and ending August 31 of the next calendar year for service rendered during no more than a 12-month period.(b) For the purpose of computing the amount of a retirement benefit or a death benefit under §824.402, Government Code, for retirements or deaths before April 1, 2015, annual compensation paid prior to September 1, 2012 is the greater of:(1) the amount of creditable compensation for service paid to a member of the retirement system during a 12-month school year as defined in §25.133(a) of this title (relating to School Year); or(2) the amount of creditable compensation paid to the member during a 12-month period beginning September 1 and ending August 31 of the next calendar year.(c) Unless otherwise provided by law or this chapter, a member shall receive credit only for annual compensation actually received.(d) Compensation from which deductions for an Optional Retirement Program annuity were made shall not be included in annual compensation for benefit calculation purposes.(e) If an employer changes their payroll reporting to comply with §25.28(c) of this title (relating to Payroll Report Dates) and, as a result of this payroll reporting change, a member has only 11 months of salary credited by TRS in a school year, then TRS will attribute an additional month of salary for purposes of benefit calculation if that school year of compensation would have been used in calculating the member's highest average salary for benefit calculation purposes. The amount of compensation that TRS will attribute for the additional month is equal to the amount that would have been reported for the month that was excluded as a result of the payroll reporting change.(f) For the purpose of computing the amount of retirement benefit or a death benefit under §824.402, Government Code, for retirements or deaths after March 31, 2015, annual compensation shall be calculated as follows:(1) for the 2013-2014 school year and thereafter, annual compensation is the amount of creditable compensation for service paid to a member of the retirement system during a 12-month period beginning September 1 and ending August 31 of the next calendar year;(2) for the 2012-2013 school year, annual compensation is the greater of:(A) the amount of creditable compensation for service paid to a member of the retirement system during the 12-month school year as defined in §25.133(a) of this title (relating to School Year); or(B) the amount of creditable compensation paid to the member during a 12-month period beginning September 1, 2012 and ending August 31, 2013.(3) for school years prior to the 2012-2013 school year annual compensation shall be the amount of creditable compensation for service paid to a member of the retirement system during the 12-month school year as defined in §25.133(a) of this title (relating to School Year).(g) Effective with the 2015-2016 school year, annual compensation for the school year in which the member retires is the highest total of compensation received during a 12 consecutive month period that occurs during a 14 consecutive month period provided:(1) the member completes the full contract period for the final year;(2) the 14 consecutive month period includes the months of September through August of the school year in which the member retires;(3) the 14 consecutive month period does not include months prior to the month in which the member's contract for the final year began;(4) the annual compensation under this subsection does not include compensation earned after retirement, except that as provided in §25.24(e) of this title (relating to Performance Pay), creditable annual compensation earned by the date of retirement but not yet paid at the date of retirement is included in the annual compensation for that year;(5) the annual compensation under this subsection does not include performance pay credited by TRS as annual compensation in a prior school year;(6) the annual compensation for the school year in which the member retires is subject to all applicable Internal Revenue Code limits for that school year;(7) the member does not receive credit for more than 12 months of compensation in the annual compensation for the final school year; and(8) the member's compensation in the final year before retirement is not paid out in fewer than 12 months.(h) If due to an error of the employer, compensation earned by the retiree in the final school year before retirement is not paid and/or not reported before the first annuity payment is issued, upon notice to TRS and the submission of all required corrected reports and member and employer contributions on the compensation, TRS shall adjust its records. If the additional compensation results in increased benefits payable on behalf of the retiree, the adjusted benefit shall be paid beginning in the month TRS receives the additional contributions and the corrected reports. In no event may an error be corrected under this subsection after the end of the school year following the school year in which the member retired.",
            "sourceNote": "Source Note: The provisions of this §25.26 adopted to be effective September 26, 1979, 4 TexReg 3303; amended to be effective January 5, 2012, 36 TexReg 9340; amended to be effective December 15, 2014, 39 TexReg 9705; amended to be effective March 5, 2015, 40 TexReg 937; amended to be effective January 1, 2016, 40 TexReg 9725; amended to be effective October 17, 2018, 43 TexReg 6844."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=186591&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "186591",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "B",
                "label": "COMPENSATION"
            },
            "rule": {
                "number": "§25.28",
                "label": "Payroll Report Dates"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=152440&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "152440",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as provided under §31.2 of Chapter 31, Subchapter A, Part 3 of this Title, payroll reports and all member and employer deposits for a report month are due before the seventh day after the last day of the month. If the sixth day of the month falls on a weekend or federal holiday, the payroll reports and all member and employer deposits are due on the last business day before the sixth day of the month. The executive director shall establish the form and method to be used in reporting information regarding compensation and employment and such member and employer deposits as are due to the Teacher Retirement System of Texas (TRS). School officials shall be notified of such regulations. Each employer that fails to remit all required member and employer contributions to TRS before the seventh day after the last day of the month shall pay to TRS penalty interest on the unpaid amounts in the amount provided in Section 825.408, Government Code. Effective with the employer reports due for the report month of January 2018, each employer that fails to attain a completed status on all required reports or fails to submit all documentation required by TRS before the seventh day after the last day of the month shall pay, in addition to any deposits and penalty interest owed, the late fee established in subsection (j) of this section for each business day that the report fails to attain a completed status.(b) Each employer must report each month in a form prescribed by TRS information on the total amount of salary paid to employees eligible to participate in TRS from federal funds and/or private grants. Reporting districts must transmit to TRS the current state contribution rate of the monies paid as salary for those employees covered by TRS in addition to the amount transmitted for member contributions. If the maximum percentage legally provided for retirement purposes from the funds is less than the current state contribution rate, the employer shall transmit the amount provided and indicate by letter the name of the grant and the rate.(c) Effective September 1, 2015, each employer must report each calendar month in a form prescribed by TRS, information regarding the persons it employs, the positions held, the time worked and the compensation paid, including the number of days and/or hours worked and the amount and type of salary paid to employees during that calendar month, including salary paid from federal funds and/or private grants. Employers must transmit to TRS the current state contribution rate of the monies paid as salary from federal funds and/or private grants for those employees covered by TRS in addition to the amount transmitted for member contributions and contributions required by §§825.405, 825.4034 and 825.4071, Government Code. If the maximum percentage legally provided for retirement purposes from the federal funds and/or private grants is less than the current state contribution rate, the employer shall transmit the amount provided and indicate by letter the name of the grant and the rate.(d) Employees who have a qualified contract or an oral or written work agreement shall have information about the contract reported by each school district in a form prescribed by TRS.(1) A qualified contract is an employment agreement which meets the following criteria.(A) Service under the agreement must begin on or after July 1, but not later than August 31, of the same calendar year.(B) Service contemplated by the agreement must be for a definite period extending past August 31 of the same calendar year in which service under the agreement began, as evidenced by an enforceable legal obligation on the part of the employer to employ and to compensate the employee for such period.(C) Employees who can be terminated by the employer without the employer being obligated to pay a fixed amount stated in a contract are not included in the report.(2) Reports on contracts and oral or written work agreements with a beginning date in July should be submitted to TRS in the July report. Reports on contracts and oral or written work agreements with a beginning date in August should be filed with the August or September report.(e) Any employer may ask the retirement system for a written statement on whether a particular form of compensation is salary and wages subject to member deposits under the law and rules governing the system. A request for such a statement should be submitted in writing to the retirement system together with any contracts, board minutes, briefs, memoranda, or other material relevant to the request.(f) An employer paying amounts to a member pursuant to a settlement agreement must obtain a written determination from TRS that the amounts are creditable compensation before reporting such amounts to TRS as compensation. In the absence of the written determination from TRS, amounts paid pursuant to a settlement agreement are not creditable compensation for TRS purposes and will not be included in determining the amount of benefits payable by TRS. The requirement in this subsection to obtain a written determination from TRS before reporting amounts to TRS that are paid pursuant to a settlement agreement does not apply to normal amounts of compensation paid to the employee while the employee is on paid leave of any type, including paid administrative or emergency leave, pursuant to a settlement agreement.(g) If due to a technological error, an employer does not report all service rendered and/or salary paid as required in subsection (a) of this section and the error regards service rendered and/or salary paid in the immediately preceding school year, the error may be corrected if the following requirements are met:(1) the person for whom contributions were due is currently employed by the employer and compensation for the current year remains due to the employee;(2) the employer requests a waiver of the reporting requirements under §825.408(a), Government Code and the request is granted by TRS;(3) the employer submits member contributions on the unreported amounts pursuant to §825.409, Government Code, from any remaining compensation due and any employer contributions due on the compensation are paid by the employer;(4) the employer pays the interest required by §825.408, Government Code and corrects the records for the report months in which the compensation was paid as directed by TRS; and(5) the error is corrected by the end of the school year following the school year in which the service was rendered and/or the compensation was paid. Upon receipt of the member and employer contributions and the corrected report(s), the service credit and/or compensation credit will be credited to the member. In no event may service or compensation credit be granted under this subsection for service rendered or compensation received in a school year prior to the immediately preceding school year.(h) An employer must report each calendar month only compensation paid in that calendar month in accordance with normal pay periods for all employees. In no event may an employer include salary paid in a prior month or may an employer delay payment of salary that should have been paid in a prior month for the purpose of increasing the employee's annual compensation for benefit calculation purposes. If compensation should have been paid in a prior month but due to a technological or accounting error, the compensation was not reported in the report month that it was paid and the error occurred in the current school year, or if the employer is required by law to correct an error in payment that occurred during the current school year, the monthly report shall be adjusted in the manner prescribed by TRS.(i) An employer may not pay an employee less than the amount owed in a calendar month for the purpose of extending the employee on payroll in order to receive a year of service credit or to establish eligibility for participation in health care benefits as provided in Chapter 1579, Insurance Code, Title 8, Subtitle H.(j) Effective with the employer reports due for the report month of January 2018, employers that fail to remit all required reports and documentation or fail to attain a completed status for the report(s) as required in this section shall pay to TRS, in addition to the required deposits and any applicable penalty interest on unpaid amounts, the late fee established in this subsection for each business day that the report fails to attain a completed status. The late fees required to be paid are as follows:(1) For employers with fewer than 100 employees eligible for membership in TRS, the late fee for the first business day after the due date that the report fails to attain a completed status is $100. For each subsequent business day that the report fails to attain a completed status, the employer shall pay an additional $10.(2) For employers with at least 100 employees eligible for membership in TRS but fewer than 500 eligible employees, the late fee for the first business day after the due date that the report fails to attain a completed status is $250. For each subsequent business day that the report fails to attain a completed status, the employer shall pay an additional $25.(3) For employers with at least 500 employees eligible for membership in TRS but no more than 1,000 eligible employees, the late fee for the first business day after the due date that the report fails to attain a completed status is $500. For each subsequent business day that the report fails to attain a completed status, the employer shall pay an additional $50.(4) For employers with more than 1,000 employees eligible for membership in TRS, the late fee for the first business day after the due date that the report fails to attain a completed status is $1,000. For each subsequent business day that the report fails to attain a completed status, the employer shall pay an additional $100.(k) In determining the number of employees eligible for membership in TRS for purposes of assessing the late fees in subsection (j) of this section, TRS shall base the amount of the late fee on the number of eligible employees reflected on the employer's report for May of the preceding school year. New employers will pay late fees for the first school year as provided in subsection (j)(1) of this section.",
            "sourceNote": "Source Note: The provisions of this §25.28 amended to be effective September 26, 1979, 4 TexReg 3303; amended to be effective January 8, 1980, 4 TexReg 4717; amended to be effective September 4, 1981, 6 TexReg 3098; amended to be effective January 7, 1986, 10 TexReg 4950; amended to be effective September 17, 1997, 22 TexReg 9255; amended to be effective March 12, 2003, 28 TexReg 2094; amended to be effective April 1, 2011, 36 TexReg 1830; amended to be effective December 15, 2014, 39 TexReg 9705; amended to be effective November 14, 2017, 42 TexReg 6371."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=152440&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "152440",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "B",
                "label": "COMPENSATION"
            },
            "rule": {
                "number": "§25.30",
                "label": "Conversion of Noncreditable Compensation to Salary"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213724&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "213724",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) For members who on or before August 31, 2005 had attained the age of 50, had at least 25 years of service credit, or whose combined age and service credit equaled 70 or greater, TRS excludes from creditable compensation any amount of otherwise eligible compensation that represents amounts converted into salary and wages from noncreditable compensation to be received in any of the last three school years prior to retirement. Amounts excluded under this subsection are excluded in the year of conversion and each subsequent year until retirement.(b) For members who on or before August 31, 2005 did not meet the requirements of subsection (a) of this section, TRS excludes from creditable compensation any amount of otherwise eligible compensation that represents amounts converted into salary and wages from noncreditable compensation to be received in any of the last five school years prior to retirement. Amounts excluded under this subsection are excluded in the year of conversion and each subsequent year until retirement.(c) For purposes of this section, conversion occurs when an employer agrees to pay a member with creditable compensation for services performed in the future that in the past were paid by that employer with noncreditable compensation. Compensation in the form of accrued paid leave or accrued compensatory time for overtime worked cannot be converted to eligible compensation and is expressly excluded from creditable compensation at any time.(d) The employer certifies whether compensation was converted in the last three school years prior to retirement for those members meeting the requirements of subsection (a) of this section and whether compensation was converted in the last five school years prior to retirement for those members who do not meet the requirements of subsection (a) of this section.(e) Only compensation converted after the 2005-2006 school or contract year will be excluded under this section.(f) TRS will adjust a member's annual compensation at the time of retirement to comply with the requirements of subsection (a) of this section and refund the member contributions on excluded amounts. The refund will be made after the date on which TRS makes the first annuity payment.(g) If compensation is excluded under subsection (a) or (b) of this section, the member may provide additional information in the form of written documentation to demonstrate that the compensation should not be excluded. TRS makes the final determination regarding the characterization of compensation as creditable or noncreditable.(h) Upon the request of TRS, the employer shall provide documents or records evidencing characterization of the compensation.",
            "sourceNote": "Source Note: The provisions of this §25.30 adopted to be effective January 31, 2006, 31 TexReg 553; amended to be effective September 1, 2011, 36 TexReg 5369."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213724&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "213724",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "B",
                "label": "COMPENSATION"
            },
            "rule": {
                "number": "§25.31",
                "label": "Percentage Limits on Compensation Increases"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=129378&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "129378",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) For members who on or before August 31, 2005 had attained the age of 50, had at least 25 years of service credit, or whose combined age and service credit equals 70 or greater, the amount of compensation credited by TRS in each of the last three school years prior to retirement may not exceed the amount of compensation allowed for the preceding school year by more than 10% or $10,000, whichever is greater.(b) For members who on or before August 31, 2005 did not meet requirements of subsection (a) of this section, the amount of compensation credited by TRS in each of the last five school years prior to retirement may not exceed the amount of compensation allowed for the preceding school year by more than 10% or $10,000, whichever is greater.(c) For members meeting the requirements of subsection (a) of this section, the base line amount used to determine the amount of allowable compensation in the third school year prior to retirement is the greater of either the amount of compensation for the fourth school year prior to retirement or the amount of compensation for the fifth school year prior to retirement, provided the member received service credit in the base year. If the member did not receive service credit in either the fourth or fifth school year prior to retirement, the base amount is the earliest salary credited in the three school years prior to retirement, provided the member received service credit in the base year. If the member does not have service credit in at least three school years during the last five school years prior to retirement, the limit in subsection (a) of this section does not apply.(d) For members who do not meet the requirements of subsection (a) of this section and who are subject to the restriction in subsection (b) of this section, the base line amount used to determine the amount of allowable compensation in the fifth school year prior to retirement is the greater of either the amount of compensation for the sixth school year prior to retirement or the amount of compensation for the seventh school year prior to retirement, provided the member received service credit in the base year. If the member did not receive service credit in either the sixth or seventh school year prior to retirement, the base amount is the earliest salary credited in the five school years prior to retirement, provided the member received service credit in the base year. If the member does not have service credit in at least five school years during the last seven school years prior to retirement, the limit in subsection (b) of this section does not apply.(e) The amount of allowable compensation is the greater of 110% of the base line amount or the amount of compensation in the base year plus $10,000. The amount of allowable compensation for each subsequent year is the greater of 110% of the allowable amount for the previous year or the allowable amount for the previous year plus $10,000.(f) Beginning on the first day of the 2011-2012 school year and thereafter, all increases in compensation without regard to the reason for the increase, are subject to the limits in subsections (a) and (b) of this section.(g) TRS will adjust a member's annual compensation at the time of retirement to comply with the limit on creditable compensation in subsections (a) or (b) of this section and refund the member contributions on the amount that exceeds the limits described in this section. The refund will be made after the date on which TRS makes the first annuity payment.(h) No adjustment in compensation will be made if the limit on compensation increases would not affect the calculation of the member's retirement benefit.(i) Upon the request of TRS, the employer shall provide documents or records evidencing the amount and nature of the increased compensation reported to TRS.",
            "sourceNote": "Source Note: The provisions of this §25.31 adopted to be effective January 31, 2006, 31 TexReg 553; amended to be effective April 1, 2011, 36 TexReg 1830; amended to be effective December 29, 2016, 41 TexReg 10390; amended to be effective June 8, 2023, 48 TexReg 2859."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=129378&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "129378",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "B",
                "label": "COMPENSATION"
            },
            "rule": {
                "number": "§25.33",
                "label": "Contribution Limitation Based on Compensation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170689&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170689",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Contributions and other additions with respect to a participant, including payments for the purchase of TRS service credit, may not exceed the limitations of 26 United States Code §415. Payments for the purchase of TRS service credit may be limited under §415 to a percentage of compensation of the participant from the employer for the plan year in which the payments are sought to be made. Payments made by a beneficiary in order to purchase service credit after the death of a member are subject to the same limitations as if the payments were made by the member. For a plan year in which no compensation is received by a member from a TRS-covered employer, the member or the member's beneficiary may not make deposits for service credit, unless such deposits specifically would be permitted under §415. TRS shall administer the requirements for limitations on contributions and other additions in a manner necessary to comply with federal tax laws relating to plan qualification.",
            "sourceNote": "Source Note: The provisions of this §25.33 amended to be effective March 12, 2003, 28 TexReg 2094; amended to be effective March 8, 2007, 32 TexReg 1079."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170689&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170689",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "B",
                "label": "COMPENSATION"
            },
            "rule": {
                "number": "§25.34",
                "label": "Membership Waiting Period"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213725&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "213725",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "An employee subject to the 90-day waiting period in effect from September 1, 2003, through August 31, 2005, may be eligible to receive a year of TRS service credit if the employee was employed in a TRS-covered position and participated as a contributing member of TRS for the amount of time in a school year required by this title, including §25.1 of this title (relating to Full-Time Service) and §25.131 of this title (relating to Required Service). Employment service prior to the date on which a person is eligible for TRS membership may not be used to meet the minimum requirements for service creditable in a school year unless a member purchases it in accordance with applicable requirements. A member may not establish a membership start date earlier than the end of the 90-day waiting period by purchasing the service credit described in this section.",
            "sourceNote": "Source Note: The provisions of this §25.34 adopted to be effective October 22, 2003, 28 TexReg 9086; amended to be effective Februay 9, 2006, 31 TexReg 708; amended to be effective December 15, 2014, 39 TexReg 9705."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213725&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "213725",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "B",
                "label": "COMPENSATION"
            },
            "rule": {
                "number": "§25.35",
                "label": "Employer Payments for New Members"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213726&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "213726",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The employer of a new member as defined by §825.4041, Government Code, shall pay the retirement system the required amount during the first 90 days of employment of the new member. When used in this section, \"employer\" has the meaning given it in §821.001(7), Government Code.(b) In determining the period of employment subject to employer payments, the following provisions apply:(1) An employer shall count the date of employment of a new member as the first day of the 90-day payment period.(2) An employer shall count calendar days of an employment period on or after September 1, 2005, towards the payment period, regardless of whether the days are in different school years.(3) An employer shall count calendar days on or after September 1, 2005, during which an individual previously served as an employee with another TRS reporting entity towards the payment period.(4) An employer shall not count any calendar days between periods of employment towards the payment period.(5) Service provided by an employee on one calendar day to more than one employer that is a TRS reporting entity shall count as only one calendar day in the payment period. Each employer shall include such an employee's compensation in the aggregate compensation on which employer payment is required.(6) A person who was hired before September 1, 2005, and who did not complete the 90-day waiting period before that date becomes eligible to participate in the retirement system starting September 1, 2005. The employer shall treat the member as a new member for the purpose of employer payments during the remainder of the 90-day period.(c) For the purpose of administering this section, the date of employment means the date on which an employee begins to perform service for an employer that is a TRS reporting entity and the service is of a type that would otherwise qualify the employee for membership in the TRS pension plan, as provided under Subchapter A of this chapter (relating to Service Eligible for Membership). If the date of employment is a holiday or another type of day on which the employer does not normally require actual service to be performed by an employee, the employer may nevertheless count the day as the date of employment if the employer considers the individual to be an employee on that day.(d) An employer shall submit employer payments and member and other required contributions to TRS on compensation paid to an employee for the entire pay period that contains the first date of the employee's eligibility for membership. An employer also shall submit such payments to TRS on compensation paid to an employee for the entire pay period that contains the 90th day of employment. For the purpose of this section, a pay period is the normal, established period of employment for which the employer regularly pays compensation to the employee, regardless of the date on which the employer actually pays the compensation. Effective September 1, 2015, an employer shall submit employer payments under this section beginning with the entire report month that contains the first date of the employee's eligibility for membership and continuing through the entire report month that contains the 90th day of employment.(e) An employer required by law to pay the state contribution from certain funds for its employees who are TRS members is not required to make additional payment to TRS under this section during the first 90 days of employment of a new member.(f) An employer shall submit reports in a form required by TRS. Upon request by TRS, an employer or an employee shall provide copies of, or otherwise make available, any records that TRS determines are necessary to administer this section.(g) An employer shall notify TRS immediately if it has failed to report an employee who was eligible for TRS membership and shall begin to report the employee as a member no later than the month immediately following the month in which the employer discovered the error. The employer shall correct any previous reports filed with TRS and make payments as required by this title.(h) An election to participate in ORP must be made before the deadlines provided by §830.102, Government Code, but may not be made before the date on which an employee is eligible for TRS membership.",
            "sourceNote": "Source Note: The provisions of this §25.35 adopted to be effective December 27, 2005, 30 TexReg 8697; amended to be effective April 1, 2011, 36 TexReg 1830; amended to be effective December 15, 2014, 39 TexReg 9705; amended to be effective June 8, 2023, 48 TexReg 2859."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213726&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "213726",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "B",
                "label": "COMPENSATION"
            },
            "rule": {
                "number": "§25.36",
                "label": "Employer Payments for Certain Employed Members"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=167956&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "167956",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An employer required to make contributions under §825.4035, Government Code, shall submit the contributions and reports related to the contributions in a form required by TRS along with the regular payroll report required monthly by TRS. Upon request by TRS, an employer or an employee shall provide copies of, or otherwise make available, any records that TRS determines are necessary to administer this section.(b) Employer contributions required under §825.4035, Government Code, shall be made based on compensation paid by the employer that is reportable to TRS.",
            "sourceNote": "Source Note: The provisions of this §25.36 adopted to be effective July 17, 2014, 39 TexReg 5430; amended to be effective June 8, 2023, 48 TexReg 2859."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=167956&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "167956",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "B",
                "label": "COMPENSATION"
            },
            "rule": {
                "number": "§25.37",
                "label": "Employer Payments from Public Junior Colleges and Public Junior College Districts"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170772&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170772",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A public junior college or public junior college district required to make contributions under §825.4071, Government Code, shall submit the contributions and reports related to the contributions in a form required by TRS along with the regular payroll report required monthly by TRS. Upon request by TRS, an employer or an employee shall provide copies of, or otherwise make available, any records that TRS determines are necessary to administer this section.(b) Employer contributions required under §825.4071, Government Code, shall be made based on compensation paid by the employer that is reportable to TRS.",
            "sourceNote": "Source Note: The provisions of this §25.37 adopted to be effective July 17, 2014, 39 TexReg 5430."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170772&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170772",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "C",
                "label": "UNREPORTED SERVICE OR COMPENSATION"
            },
            "rule": {
                "number": "§25.41",
                "label": "Deposits for Unreported Service or Compensation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170773&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170773",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Persons who have been required by law to be members of the Teacher Retirement System of Texas (TRS) or who have service or compensation on which contributions were required but who have not made the required deposits shall start making deposits immediately for current service and in addition shall make required contributions on any service rendered or compensation received earlier in the current school year. If the service was rendered and/or compensation was received in a prior school year, except as provided in §25.28(g) of this title (relating to Payroll Report Dates), the member may make payment of the actuarial cost to establish the previous service or compensation under §25.43 of this title (relating to Cost for Unreported Service or Compensation).",
            "sourceNote": "Source Note: The provisions of this §25.41 adopted to be effective January 1, 1976; amended to be effective March 12, 2003, 28 TexReg 2095; amended to be effective March 8, 2007, 32 TexReg 1079; amended to be effective April 1, 2011, 36 TexReg 1832; amended to be effective September 1, 2011, 36 TexReg 5370; amended to be effective December 22, 2014, 39 TexReg 10021."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170773&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170773",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "C",
                "label": "UNREPORTED SERVICE OR COMPENSATION"
            },
            "rule": {
                "number": "§25.42",
                "label": "Payment of Benefits Contingent on Deposits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170774&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170774",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "No benefits will be paid until all required deposits have been received or the compensation and deposits have been certified to TRS as due and payable.",
            "sourceNote": "Source Note: The provisions of this §25.42 adopted to be effective January 1, 1976; amended to be effective March 8, 2007, 32 TexReg 1079; amended to be effective December 22, 2014, 39 TexReg 10021."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170774&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170774",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "C",
                "label": "UNREPORTED SERVICE OR COMPENSATION"
            },
            "rule": {
                "number": "§25.43",
                "label": "Cost for Unreported Service or Compensation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170775&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170775",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as provided by §25.28(g) of this title (relating to Payroll Report Dates) and subsections (e), (f), and (g) of this section, the cost of establishing unreported service or compensation credit is the actuarial cost, as determined by TRS, of the additional standard annuity retirement benefits that would be attributable to the unreported service or compensation credit purchased under this subchapter.(b) To calculate the actuarial cost of purchasing a year of unreported service credit, TRS will use the cost factors and method described in §25.302 of this title (relating to Calculation of Actuarial Costs of Service Credit). To calculate the actuarial cost of purchasing unreported compensation credit, TRS will use the factors and method as set forth in §25.303 of this title (relating to the Calculation of Actuarial Cost for Purchase of Compensation Credit).(c) The purchase cost described in this section assumes a lump-sum deposit will be made. If deposits are made under an installment agreement, a non-refundable installment fee of 9 percent applies.(d) If a member has membership service and contributions in the same school year as the year in which the unreported service was rendered, TRS shall adjust the actuarial cost as calculated under subsection (b) of this section proportionately by applying a ratio, the numerator of which is the number of TRS-covered service days rendered by the member and the denominator of which is 90 days of service required for a year of membership service credit.(e) A member may establish unreported service or compensation credit by paying the deposits and fees required in subsection (f) of this section if the member meets all applicable requirements to purchase unreported service or compensation credit and if:(1) the person otherwise meets all eligibility requirements of §825.403, Government Code;(2) the service for which credit is sought to be established was rendered, or the compensation for which credit is sought was paid, before September 1, 2011; and(3) the person makes payment for the credit, or enters into an installment agreement for payment, not later than August 31, 2013.(f) The cost of establishing unreported service or compensation credit under subsection (e) of this section is the amount of deposits previously required but not paid plus a fee computed at the rate of 5 percent per annum of the deposits due from the end of the school year in which the deposits were due or the end of the 1974-1975 school year, whichever is later, until the date of payment.(g) For purposes of this section, workers' compensation paid as temporary wage replacement pay may be reported or verified to TRS until the end of the school year following the school year in which it is paid. If the workers' compensation is reported or verified to TRS no later than the end of the school year following the school year in which it is paid, member contributions on the workers' compensation paid are required to establish the compensation and service credit associated with the workers' compensation. The member contributions on the worker's compensation must be paid in full in a lump sum by the end of the school year following the year in which the workers' compensation was paid. If the workers' compensation is not reported or verified and member contributions are not paid by the end of the school year following the year in which the workers' compensation is paid, the member may establish the service and compensation as unreported compensation as provided in this section.",
            "sourceNote": "Source Note: The provisions of this §25.43 adopted to be effective January 1, 1976; amended to be effective September 26, 1979, 4 TexReg 3304; amended to be effective January 24, 1992, 17 TexReg 251; amended to be effective March 8, 2007, 32 TexReg 1079; amended to be effective September 1, 2011, 36 TexReg 5370; amended to be effective June 20, 2013, 38 TexReg 3798; amended to be effective December 22, 2014, 39 TexReg 10021."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170775&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170775",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "C",
                "label": "UNREPORTED SERVICE OR COMPENSATION"
            },
            "rule": {
                "number": "§25.45",
                "label": "Verification of Unreported Compensation or Service"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175639&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175639",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Members who claim unreported service or compensation after the school year in which it was received and for whom the employer has not requested a waiver as provided in §25.28(g) of this title (relating to Payroll Report Dates), must verify the claim on a form prescribed by the Teacher Retirement System and must present such evidence as the staff of the system may require to provide clear and convincing proof of the existence and amount of such service or compensation, such as a copy of the minutes of the governing board of the employing institution, copies of any written contracts between the member and the employer, a verified statement by the employer of the reasons why such service or compensation was not reported earlier, and copies of income tax documents showing that the compensation was reported as income for the member. Except as provided in §25.26(a) of this title (relating to Annual Compensation Creditable for Benefit Calculation) for the calculation of a member's annual compensation in the school year in which the member retires, in no event shall verification, salary reports, or member contributions for additional compensation or service credit be accepted after a member has retired from the system and the first monthly annuity payment has been issued, after the effective date of a member's participation in the Deferred Retirement Option Plan, or after the payment of a death benefit. The cost for unreported service or compensation shall be as provided in §25.43 of this title (relating to Cost for Unreported Service or Compensation).",
            "sourceNote": "Source Note: The provisions of this §25.45 adopted to be effective January 1, 1976; amended to be effective September 26, 1979, 4 TexReg 3304; amended to be effective January 24, 1992, 17 TexReg 251; amended to be effective March 12, 2003, 28 TexReg 2095; amended to be effective March 8, 2007, 32 TexReg 1079; amended to be effective April 1, 2011, 36 TexReg 1832; amended to be effective September 1, 2011, 36 TexReg 5370; amended to be effective December 22, 2014, 39 TexReg 10021."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175639&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175639",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "C",
                "label": "UNREPORTED SERVICE OR COMPENSATION"
            },
            "rule": {
                "number": "§25.46",
                "label": "Determination of Compensation Subject to Deposit and Credit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=162291&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "162291",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The amount of deposits due for unreported service rendered or compensation paid in the current school year or for unreported service rendered or compensation paid in the immediately preceding school year and corrected as provided in §25.28(g) of this title (relating to Payroll Report Dates) will be calculated at the member contribution rate in effect for the year in which the service was rendered or compensation was paid but for which no deposits or insufficient deposits were made. Contributions will be based on creditable compensation as determined under the laws and rules applicable at the time of the service.(b) Beginning with the 2015-2016 school year, compensation paid to a member by an employer to correct an error of underpayment occurring in a prior school year or school years will be credited by TRS in the school year in which the compensation is paid. The amount of contributions owed on creditable compensation is determined under the laws and rules applicable at the time of the corrective payment and must be paid in a lump sum pursuant to Government Code, §825.409 from any compensation due to the employee.",
            "sourceNote": "Source Note: The provisions of this §25.46 adopted to be effective September 4, 1981, 6 TexReg 3098; amended to be effective January 24, 1992, 17 TexReg 251; amended to be effective June 15, 1999, 24 TexReg 4455; amended to be effective March 12, 2003, 28 TexReg 2095; amended to be effective March 8, 2007, 32 TexReg 1079; amended to be effective December 22, 2014, 39 TexReg 10021; amended to be effective January 1, 2016, 40 TexReg 9725."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=162291&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "162291",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "C",
                "label": "UNREPORTED SERVICE OR COMPENSATION"
            },
            "rule": {
                "number": "§25.47",
                "label": "Deadline for Verification"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170777&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170777",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) For unreported service or unreported compensation paid after August 31, 2011, TRS must receive the required verification not later than five years after the end of the school year in which the service was rendered or compensation was paid in order for it to be creditable with TRS.(b) For unreported service rendered or unreported compensation paid before September 1, 2011, TRS must receive the required verification not later than August 31, 2016, in order for it to be creditable with TRS.(c) The person seeking credit must obtain the required verification from the employer and submit it to TRS before the applicable deadline.(d) For purposes of this section, workers' compensation paid as temporary wage replacement pay is not unreported compensation until after the end of the school year following the school year in which the compensation was paid.",
            "sourceNote": "Source Note: The provisions of this §25.47 adopted to be effective September 1, 2011, 36 TexReg 5370; amended to be effective June 20, 2013, 38 TexReg 3798."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170777&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170777",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "E",
                "label": "MILITARY SERVICE"
            },
            "rule": {
                "number": "§25.61",
                "label": "Service Credit for Eligible Military Duty"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170778&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170778",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A member with five years of credit for service in the public schools of Texas may receive additional retirement credit for active military duty.(b) Credit for military duty under this section is limited to a maximum of five years. Eligible military duty will be evaluated for crediting only in the school year in which it was rendered. In order to obtain military service credit for that year, a member must have served an equivalent amount of  military duty to the amount of service required for a member to receive a year of service credit in that school year. No credit may be given for any school year of military duty which duplicates any other credit already granted or in which a year of creditable service is available for service in the public schools of Texas. If a member establishes military service credit but TRS determines that credit already has been given for the military service in another Texas public retirement system, TRS shall refund the amount paid for the military credit duplicated in TRS, less fees that are not refundable, and shall cancel the TRS credit and, if applicable, adjust the calculation of benefits. In accordance with §25.113(m)(3) of this title (relating to Transfer of Credit Between TRS and ERS), a person retiring from the Employees Retirement System of Texas (ERS) under Government Code, Chapter 805, and returning to work in a TRS-eligible position may not establish more than a total of five years of military service credit, including any military service established before retirement under either TRS or ERS.(c) To obtain each school year of military credit, the member must make a deposit based upon the full annual compensation rate for the last school year of membership service preceding the school year of military duty, if the member was a member while the duty was being rendered, or upon the full annual compensation rate for the first school year of membership service occurring after the duty. Membership service does not include service as a substitute. The deposit shall be a percentage of the applicable full annual compensation rate equal to that in effect for deductions from member salaries for the school year in which the military duty was rendered.",
            "sourceNote": "Source Note: The provisions of this §25.61 adopted to be effective September 11, 1977, 2 TexReg 3279; amended to be effective January 8, 1980, 4 TexReg 4717; amended to be effective January 24, 1992, 17 TexReg 252; amended to be effective September 1, 1992, 17 TexReg 5119; amended to be effective June 15, 1999, 24 TexReg 4455; amended to be effective March 12, 2003, 28 TexReg 2095; amended to be effective April 1, 2011, 36 TexReg 1833; amended to be effective December 22, 2014, 39 TexReg 10022."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170778&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170778",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "E",
                "label": "MILITARY SERVICE"
            },
            "rule": {
                "number": "§25.64",
                "label": "Crediting Fee"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151074&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "151074",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A crediting fee of 8 percent compounded annually shall be charged for the purchase of credit from the end of the year in which the member was first eligible to purchase the credit until payment for the credit is received. The date of first eligibility to purchase credit shall be the latest of the following:(1) the date the member obtains 5 years' credit for service in the public schools of Texas;(2) the date the Teacher Retirement Law made the military service available for credit;(3) the date the member completed military service to qualify for each year of credit.(b) Service credit purchased under §25.61 of this title (relating to Service Credit for Eligible Military Duty) shall be purchased in the order in which the service was rendered, with the earliest years of military service being purchased first.",
            "sourceNote": "Source Note: The provisions of this §25.64 adopted to be effective January 1, 1976; amended to be effective September 11, 1977, 2 TexReg 3279; amended to be effective October 1, 1982, 7 TexReg 3366; amended to be effective June 15, 1999, 24 TexReg 4455; amended to be effective December 22, 2014, 39 TexReg 10022."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151074&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "151074",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "E",
                "label": "MILITARY SERVICE"
            },
            "rule": {
                "number": "§25.66",
                "label": "Application for Military Credit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151075&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "151075",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Members desiring to make deposits for military credit should request in writing to be billed for the cost of the credit. Requests should be addressed to Teacher Retirement System of Texas, 1000 Red River Street, Austin, Texas 78701-2698. Included with the request should be a certified or legible unaltered copy or copies of the member's military service record showing the dates and nature of the member's active duty. The system may require the member to make available to it such other evidence as may be required to establish the member's eligibility for service credit and the amount of deposits due. When the system determines the duty eligible for credit, it shall bill members for the total amounts of deposits and fees due for the credit at the last address of the member of which the system has record. The member must return the bill to the system with the total amount due for the military duty credit or with an installment payment agreement and all subsequent installment payments due. Deposits for military duty credit will not be accepted after date of death, except to the extent permitted under the laws and rules governing installment payments, or date of service retirement of a member.",
            "sourceNote": "Source Note: The provisions of this §25.66 adopted to be effective September 11, 1977, 2 TexReg 3279; amended to be effective December 1, 1989, 14 TexReg 4919; amended to be effective January 24, 1992, 17 TexReg 252; amended to be effective September 1, 1992, 17 TexReg 5119; amended to be effective June 15, 1999, 24 TexReg 4455; amended to be effective April 1, 2011, 36 TexReg 1833."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151075&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "151075",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "F",
                "label": "VETERAN'S (USERRA) SERVICE CREDIT"
            },
            "rule": {
                "number": "§25.71",
                "label": "Service Credit for Eligible Active Military Duty under the Uniformed Services Employment and Re-Employment Rights Act"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100738&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100738",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A member may obtain service credit for active military duty in lieu of or in addition to military service credit under §25.61 of this title (relating to Service Credit for Eligible Military Duty) if the member is eligible to obtain such service credit under the Uniformed Services Employment and Re-Employment Rights Act (USERRA), 38 United States Code §4301 et seq.(b) A member who leaves a position in the employ of a Teacher Retirement System of Texas (TRS) covered employer to perform duty, on a voluntary or involuntary basis, in the uniformed services, as defined in the USERRA, is eligible to obtain service or compensation credit under this section if the member separates from uniformed service under honorable conditions or as otherwise provided by USERRA and returns to or applies for re-employment with the TRS covered employer within ninety (90) days of discharge or release from active military service. TRS shall consider the provisions of USERRA or regulations adopted pursuant to USERRA in determining eligibility of members who apply for or return to re-employment later than this period of time, due to illness or injury incurred in, or aggravated during, uniformed service.(c) Notwithstanding any provisions of this section to the contrary, contributions, benefits, and service credit with respect to qualified military service shall be provided in accordance with the Internal Revenue Code §414(u) and as required by USERRA.",
            "sourceNote": "Source Note: The provisions of this §25.71 adopted to be effective January 24, 1992, 17 TexReg 252; amended to be effective March 12, 2003, 28 TexReg 2096; amended to be effective May 22, 2008, 33 TexReg 4005; amended to be effective April 1, 2011, 36 TexReg 1833."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100738&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100738",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "F",
                "label": "VETERAN'S (USERRA) SERVICE CREDIT"
            },
            "rule": {
                "number": "§25.72",
                "label": "Limitations on Eligible Service"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151076&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "151076",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Under this section, a member whose military service was as an enlistee or draftee and whose service is entitled to coverage under the Veteran's Reemployment Rights Act (VRRA) (effective for re-employments initiated before the end of the 60-day period beginning on October 13, 1994) can only claim service credit in the amount of:(1) four years, if the service was performed between June 24, 1948, and August 1, 1961; or(2) five years if the service was performed after August 1, 1961.(b) A member whose military service was as a reservist and whose service is entitled to coverage under the VRRA can only claim credit for four years of such service under this section.(c) A member who leaves Teacher Retirement System of Texas covered employment for active duty training or inactive duty training has no limitation on eligible service under the VRRA for the period of active duty training or inactive duty training.(d) Under this section, a member whose military service is entitled to coverage under the Uniformed Services Employment and Re-Employment Rights Act (USERRA) may claim service credit for up to five (5) years of military service, subject to any additional period of time as provided in USERRA §4312(c), 38 United States Code §4312(c).",
            "sourceNote": "Source Note: The provisions of this §25.72 adopted to be effective January 24, 1992, 17 TexReg 252; amended to be effective March 12, 2003, 28 TexReg 2096."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151076&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "151076",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "F",
                "label": "VETERAN'S (USERRA) SERVICE CREDIT"
            },
            "rule": {
                "number": "§25.73",
                "label": "Ineligible Military Service"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175640&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175640",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A member who establishes service credit under §25.71 of this title (relating to Service Credit for Eligible Active Military Duty under the Uniformed Services Employment and Re-Employment Rights Act) cannot use the same military service to establish military service credit under §25.61 of this title (relating to Service Credit for Eligible Military Duty). No additional service credit may be given for any school years of military duty eligible for service credit already granted for service in the public schools of Texas.",
            "sourceNote": "Source Note: The provisions of this §25.73 adopted to be effective January 24, 1992, 17 TexReg 252; amended to be effective March 12, 2003, 28 TexReg 2096; amended to be effective April 1, 2011, 36 TexReg 1833."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175640&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175640",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "F",
                "label": "VETERAN'S (USERRA) SERVICE CREDIT"
            },
            "rule": {
                "number": "§25.74",
                "label": "Cost"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151078&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "151078",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) To obtain service credit for active military duty under the Uniformed Services Employment and Re-Employment Rights Act (USERRA) and §25.71 of this title (relating to Service Credit for Eligible Active Duty under the Uniformed Services Employment and Re-Employment Rights Act), the member must deposit with the retirement system for each school year of service claimed an amount equal to member contributions based on the following:(1) the percentage of the applicable full annual compensation rate equal to that in effect for deductions from member salaries for the school year in which the military duty was rendered; and(2) the full annual compensation rate for each school year of membership service in which the member was on active military duty eligible under the USERRA and §25.71 of this title. Membership service does not include service as a substitute. For purposes of determining the full annual compensation rate under this section, the Teacher Retirement System (TRS) will use the amount of wages and salary the member would have received had he continued to be employed in his former TRS covered position from which he left for active military duty. The member must submit a certification by the employer whose employ he left to enter into active military duty of the wages and salary he would have received had he remained in the TRS covered position.(b) To obtain credit for member compensation for active military duty under the USERRA and §25.71 of this title, the member must deposit with the retirement system for each school year of salary credit claimed an amount equal to member contributions based on the following:(1) the percentage of the applicable full annual compensation rate equal to that in effect for deductions from member salaries for the school year in which the military duty was rendered; and(2) the full annual compensation rate for each school year of membership service in which the member was on active military duty eligible under the USERRA and §25.71 of this title. Membership service does not include service as a substitute. For purposes of determining the full annual compensation rate under this section, TRS will use the amount of wages and salary the member would have received had he continued to be employed in his former TRS covered position from which he left for active military duty. The member must submit a certification by the employer whose employ he left to enter into active military duty of the wages and salary he would have received had he remained in the TRS covered position.(c) Credit for member compensation may be established for any school year of active military duty eligible under the USERRA and §25.71 of this title, even if service credit has already been granted for the school year for service in the public schools of Texas.(d) Establishment of compensation credit does not entitle a member to service credit for a school year unless no service credit has been granted for the school year through sufficient service in the public schools of Texas.(e) A member is first eligible to establish credit under §25.71 of this title on the date of application for reemployment in a TRS covered position or on November 12, 1991, whichever is later.(f) Service credit purchased under this section shall be purchased in the order in which the service was rendered, with the earliest years of military service being purchased first.(g) The amount required to establish service credit under subsection (a) of this section and the amount required to establish compensation credit under subsection (b) of this section must be submitted in a lump sum equal to the cost to purchase at least one year of service or compensation credit and may not be submitted using the installment method of payment.",
            "sourceNote": "Source Note: The provisions of this §25.74 adopted to be effective January 24, 1992, 17 TexReg 252; amended to be effective March 12, 2003, 28 TexReg 2096; amended to be effective April 1, 2011, 36 TexReg 1833; amended to be effective December 22, 2014, 39 TexReg 10023; amended to be effective January 1, 2016, 40 TexReg 9726."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151078&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "151078",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "F",
                "label": "VETERAN'S (USERRA) SERVICE CREDIT"
            },
            "rule": {
                "number": "§25.75",
                "label": "Application for Eligible Active Military Duty under the Uniformed Services Employment and Re-Employment Rights Act"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100748&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100748",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Members desiring to make deposits for service or compensation credit for eligible military duty under the Uniformed Services Employment and Re-Employment Rights Act (USERRA) should request in writing to be billed for the cost of the credit. Requests should be addressed to Teacher Retirement System of Texas, 1000 Red River Street, Austin, Texas 78701-2698. Included with the request should be a certified or legible unaltered copy or copies of the member's military service record showing the dates and nature of the member's military duty. Also included with the request should be a certification of the date of the member's application for reemployment with a Teacher Retirement System of Texas (TRS) covered employer or other proof of the date of employment with a TRS covered employer. The system may also require the member to make available to it such other evidence as may be required to establish the member's eligibility under the USERRA and §25.71 of this title (relating to Service Credit for Eligible Active Military Duty under the Uniformed Services Employment and Re-Employment Rights Act) for service credit and the amount of the deposits due. When the system determines the duty is eligible for credit, it shall bill the member for the total amounts of deposits and fees due for the credit at the last address of the member of which the system has record. The member must return the bill to the system with the total amount due for the eligible credit or with an installment payment agreement and all subsequent installment payments due. Deposits for military duty eligible for credit under the USERRA and §25.71 of this title must be made no later than five years after the date of re-employment or application for re-employment, subject to any additional period available under USERRA.",
            "sourceNote": "Source Note: The provisions of this §25.75 adopted to be effective January 24, 1992, 17 TexReg 252; amended to be effective September 1, 1992, 17 TexReg 5119; amended to be effective June 15, 1999, 24 TexReg 4456; amended to be effective February 2, 2000, 25 TexReg 598; amended to be effective March 12, 2003, 28 TexReg 2096; amended to be effective March 8, 2007, 32 TexReg 1079; amended to be effective April 1, 2011, 36 TexReg 1833."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100748&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100748",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "F",
                "label": "VETERAN'S (USERRA) SERVICE CREDIT"
            },
            "rule": {
                "number": "§25.76",
                "label": "Eligibility of Retiree"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=167957&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "167957",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A retiree may establish credit under §25.71 of this title (relating to Service Credit for Eligible Active Duty under the Uniformed Services Employment and Re-Employment Rights Act), if eligible. The requirements of §§25.71-25.75 of this title (relating to Service Credit for Eligible Active Duty under the Uniformed Services Employment and Re-Employment Rights Act; Limitations on Eligible Service; Ineligible Military Service; Cost; and Application for Eligible Active Military Duty under the Uniformed Services Employment and Re-Employment Rights Act) apply equally to a retiree establishing such credit. A retiree who establishes service credit under §25.71 may receive an adjusted benefit on a prospective basis only after such credit has been established.",
            "sourceNote": "Source Note: The provisions of this §25.76 adopted to be effective January 24, 1992, 17 TexReg 252; amended to be effective March 12, 2003, 28 TexReg 2096."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=167957&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "167957",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "F",
                "label": "VETERAN'S (USERRA) SERVICE CREDIT"
            },
            "rule": {
                "number": "§25.77",
                "label": "USERRA Service Creditable but not Established"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170780&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170780",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A member who performs USERRA service creditable in the retirement system but who does not establish credit for the service by making the deposits required by this subchapter is entitled to have the USERRA service considered as if it were credited in TRS to the extent required by USERRA. To use USERRA service in this manner, the member must submit a written request to TRS before the later of the date of application for retirement or the effective date of retirement. With respect to benefits payable after the death of a member, a beneficiary must submit a written request to TRS before any part of a death benefit is paid by TRS. To use USERRA service to meet other provisions of the TRS retirement plan that are conditioned on years of TRS service credit, the member must submit a written request to TRS before action is taken under that plan provision.(b) The USERRA service described in subsection (a) of this section is usable only in determining eligibility for, but not the amount of, service or disability retirement benefits or death benefits, and eligibility for other retirement plan features conditioned on years of service credit, but in no event shall such service be used to calculate the amount due to the member under such plan features.(c) The USERRA service described in subsection (a) of this section is usable in determining eligibility for TRS-Care and is applicable to other provisions of TRS-Care that are based on years of TRS service credit. To use USERRA service in this manner, the member must submit a written request to TRS before the later of the date of application for retirement or the effective date of retirement.(d) USERRA service described in subsection (a) of this section shall not be eligible for use in the manner described in this section if the member has established military service credit under §25.61 of this title (relating to Service Credit for Eligible Military Duty) for the same service or has established military service credit or USERRA credit under any other Texas public retirement system for the same service.(e) A person who is a member on August 31, 2014 and who rendered USERRA service before September 1, 2014 may use the USERRA service in determining if the member has accrued the five years of service credit by August 31, 2014 necessary to establish eligibility to retire under the terms of the plan existing on that date, provided the person maintains membership in TRS until retirement and the USERRA service is verified before retirement.",
            "sourceNote": "Source Note: The provisions of this §25.77 adopted to be effective April 1, 2011, 36 TexReg 1833; amended to be effective July 17, 2014, 39 TexReg 5431."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170780&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170780",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "G",
                "label": "PURCHASE OF CREDIT FOR OUT-OF-STATE SERVICE"
            },
            "rule": {
                "number": "§25.81",
                "label": "Out-of-State Service Eligible for Credit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=152441&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "152441",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A member may obtain out-of-state service credit for qualified employment in public educational institutions which are maintained in whole or in part by one of the states in the United States of America; by a commonwealth, territory, or possession of the United States of America; or by the United States government. Public educational institutions of the United States government must have been maintained for the primary purpose of educating the children of United States citizens either in foreign countries or in locations within the United States where state and local government have not provided public educational facilities. The service in eligible institutions must satisfy the requirements for membership in the Teacher Retirement System of Texas, except for the requirement that the employment be in Texas. Further, the service must have been for at least 4 1/2 months of the school year, or for at least a full semester of more than four calendar months, or for at least 90 days of a school year as a substitute in a position otherwise eligible for out-of-state service. For service rendered in the 2011-2012 school year and after, a member must have worked or received paid leave in a position otherwise eligible for out-of-state service credit for at least the minimum amount of time required of a member to receive service credit in that school year or worked for at least 90 days in a school year as a substitute in a position otherwise eligible for out-of-state service credit. A member may satisfy any of these requirements by combining the out-of-state service with employment in the Texas public schools that occurred in the same school year and for which deposits are maintained in the member's account. A member eligible to establish normal membership service credit for a school year may not obtain out-of-state service credit for that year.",
            "sourceNote": "Source Note: The provisions of this §25.81 adopted to be effective January 1, 1976; amended to be effective April 10, 1978, 3 TexReg 1115; amended to be effective October 20, 1986, 11 TexReg 4215; amended to be effective June 20, 2013, 38 TexReg 3799; amended to be effective December 23, 2014, 39 TexReg 10023."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=152441&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "152441",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "G",
                "label": "PURCHASE OF CREDIT FOR OUT-OF-STATE SERVICE"
            },
            "rule": {
                "number": "§25.82",
                "label": "Cost"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=124207&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "124207",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as provided by subsections (g) and (h) of this section, the cost of establishing out-of-state service credit is the actuarial cost, as determined by TRS, of the additional standard annuity retirement benefits that would be attributable to the out-of-state service credit purchased under this section.(b) To calculate the actuarial cost, TRS will use the cost factors and method described in §25.302 of this title (relating to Calculation of Actuarial Cost).(c) The purchase cost described in this section assumes a lump-sum deposit will be made. If deposits are made under an installment agreement, a non-refundable installment fee of 9% applies.(d) No credit will be applied to the cost of a year of out-of-state service credit for any TRS contributions made in the same school year.(e) The date of first eligibility to purchase credit for any year of out-of-state service shall be the latest of the following dates:(1) the date the member received 5 years' credit for service in the public schools of Texas;(2) the date state law made the out-of-state service available for TRS service credit;(3) the date in which the member qualified to deposit payment for each year of out-of-state service under the one for two rule in effect until March 20, 1975;(4) the date the member completed one year of creditable service in the public schools of Texas after relevant out-of-state service.(f) No deposits for out-of-state service credit may be made before the member accumulates 5 years of credit for service in the public schools of Texas.(g) A member may establish out-of-state service credit by paying the deposits and fees required in subsection (h) of this section if the member meets all applicable requirements to purchase out-of-state service credit and if:(1) the person was a member of TRS on December 31, 2005;(2) the out-of-state service was performed before January 1, 2006, including service in the 2005-2006 school year that began before January 1, 2006; and(3) the member makes payment for the out-of-state service credit, or enters into an installment agreement for payment, not later than August 31, 2013.(h) The cost of establishing out-of-state service credit under subsection (g) of this section is 12% per year of the full annual salary rate for the first year of service in Texas which is both after the out-of-state service and after September 1, 1956. Annual salary is limited to $8,400 for years prior to September 1, 1969, and $25,000 for years after September 1969 but before September 1, 1979. For years starting on or after September 1, 1979, TRS will apply any relevant creditable compensation limitations to determine the full salary rate. Cost will not be based on years granted for substitute service. In addition a crediting fee of 8.0% compounded annually of the amount of deposits due and paid shall be charged from the end of the school year in which the member was first eligible to purchase credit for such service until payment for the credit is received.",
            "sourceNote": "Source Note: The provisions of this §25.82 adopted to be effective January 1, 1976; amended to be effective September 26, 1979, 4 TexReg 3305; amended to be effective October 1, 1982, 7 TexReg 3367; amended to be effective June 15, 1999, 24 TexReg 4457; amended to be effective April 3, 2006, 31 TexReg 2869; amended to be effective March 8, 2007, 32 TexReg 1085; amended to be effective April 1, 2011, 36 TexReg 1834; amended to be effective September 1, 2011, 36 TexReg 5371."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=124207&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "124207",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "G",
                "label": "PURCHASE OF CREDIT FOR OUT-OF-STATE SERVICE"
            },
            "rule": {
                "number": "§25.84",
                "label": "Crediting Fees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175641&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175641",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The crediting fees for out-of-state service credit, when applicable, will be credited to the state contribution account.",
            "sourceNote": "Source Note: The provisions of this §25.84 adopted to be effective January 1, 1976; amended to be effective June 15, 1999, 24 TexReg 4457; amended to be effective April 3, 2006, 31 TexReg 2869."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175641&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175641",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "G",
                "label": "PURCHASE OF CREDIT FOR OUT-OF-STATE SERVICE"
            },
            "rule": {
                "number": "§25.85",
                "label": "Amount of Out-of-State Service Which Can Be Purchased"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=124208&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "124208",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Credit is limited to one year of out-of-state service for each year in Texas.(b) No out-of-state service can be used to compute any benefit for any person with less than 5 years service in Texas.(c) Not more than 15 years out-of-state service can be purchased in accordance with Government Code, §823.401, provided that if any of the years of out-of-state service is considered nonqualified service, no more than five years of nonqualified service credit can be purchased. For purposes of this section, nonqualified service means the member's out-of-state service is currently maintained in another public retirement system from which the member has a right to receive a distribution, including a refund of contributions.(d) Any purchase is subject to applicable plan qualification requirements, including applicable plan limitations on member contributions.",
            "sourceNote": "Source Note: The provisions of this §25.85 adopted to be effective January 1, 1976; amended to be effective June 15, 1999, 24 TexReg 4457; amended to be effective January 9, 2002, 27 TexReg 271; amended to be effective March 12, 2003, 28 TexReg 2097; amended to be effective April 1, 2011, 36 TexReg 1834; amended to be effective January 1, 2016, 40 TexReg 9726."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=124208&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "124208",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "G",
                "label": "PURCHASE OF CREDIT FOR OUT-OF-STATE SERVICE"
            },
            "rule": {
                "number": "§25.86",
                "label": "Computing Average Compensation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100716&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100716",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Neither compensation for out-of-state service nor the annual salary rate used to compute the cost of out-of-state service credit is used in computing the average compensation used in the determination of retirement or death benefits or for any other TRS purpose.",
            "sourceNote": "Source Note: The provisions of this §25.86 adopted to be effective January 1, 1976; amended to be effective October 1, 1982; amended to be effective April 3, 2006, 31 TexReg 2869."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100716&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100716",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "G",
                "label": "PURCHASE OF CREDIT FOR OUT-OF-STATE SERVICE"
            },
            "rule": {
                "number": "§25.87",
                "label": "Effective Date of Out-of-State Service Credit and Time for Payment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213728&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "213728",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If all other conditions and requirements are met, credit for service will be given immediately upon payment.(b) Payment may be made for whole years. No smaller payment or payment for part of a year can be accepted except as permitted under the laws and rules authorizing installment payments.",
            "sourceNote": "Source Note: The provisions of this §25.87 adopted to be effective January 1, 1976; amended to be effective September 1, 1992, 17 TexReg 5120.; amended to be effective June 15, 1999, 24 TexReg 4457; amended to be effective March 12, 2003, 28 TexReg 2097."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213728&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "213728",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "H",
                "label": "JOINT SERVICE WITH EMPLOYEES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§25.113",
                "label": "Transfer of Credit between TRS and ERS"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175642&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175642",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Purpose. These rules are intended to implement the provisions of the Government Code, Chapter 805, concerning the transfer of credit between the Teachers Retirement System of Texas and the Employees Retirement System of Texas and to provide a systematic method of funding the actuarial value of the annuity resulting from transferred service.(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.(1) Receiving system--The system which will pay benefits based upon service credit transferred from the other system.(2) Transferring system--The system from which service credit is transferred for the purpose of obtaining additional benefits from the other system.(3) TRS--The Teacher Retirement System of Texas.(4) ERS--The Employees Retirement System of Texas.(5) Crediting system--means the system in which service credit is established prior to any transfer.(6) ORP--The Optional Retirement Program described in Government Code, Chapter 830.(7) Cash Balance Group Member--a member of ERS receiving or eligible to receive a retirement benefit under Government Code, Chapter 820.(c) Cash Balance Group Members. Cash balance group members are not eligible to transfer TRS service credit to ERS nor ERS service credit to TRS.(d) Forms.(1) Applicants for transfer must use forms prescribed by the receiving system.(2) Applicants for the establishment of any service credit must use the forms prescribed by the crediting system.(3) The systems will cooperate in adopting forms necessary to facilitate the exchange of information between the systems.(e) Notice.(1) A person electing to transfer service credit pursuant to this section must file the appropriate form with the receiving system not later than the person's intended effective date of retirement or the last day of the month in which their retirement application is filed, whichever is later.(2) A beneficiary eligible to transfer service to the receiving system for the payment of death benefits shall make the election on an application form not later than 90 days after the date of death of the member, unless both systems agree to extend the deadline for an election, but in any event the beneficiary shall make the election before either system has paid the death benefit.(3) The receiving system will notify the transferring system of the pending transfer not later than 30 days following date of receipt of an application form.(f) Manner of Transfer.(1) Service credit and funds will be transferred through electronic and hard copy documentation pursuant to this section, and the receiving system will maintain records of such transfers permanently.(2) The transferring system shall provide documentation of years of credit, periods of service, military service credit, average salary, method of calculation of service credit and average salary, information necessary to comply with all federal tax regulations, interest credited, fees and interest paid, and any other dollar amount which will be a part of the transfer.(g) Transfer of funds. The ERS and the TRS agree on the following method of transferring funds. Each system shall certify on a monthly basis the total dollar amount of annuities paid by the system which are based on service credit transferred pursuant to Government Code, Chapter 805. The amount certified shall exclude any portion of annuities paid consisting of post-retirement increases. Each system shall remit to the other system the amount certified within thirty days of receipt of such certification. It is recognized that adjustments will be made from month-to-month as a result of such things as administrative errors, the death of the annuitant or a beneficiary, return-to-work, and recovery from disability by an annuitant. The systems will jointly agree on the administrative and accounting procedures to be established in order to ensure the transfer of funds pursuant to this section.(h) Reinstatement of withdrawn service credit.(1) An ERS member with at least 36 months service credit in ERS may reinstate service credit in TRS that was canceled by the person's withdrawal of a TRS membership account.(2) Such reinstatement of TRS credit shall be in the amounts and rates applicable to TRS members eligible to repurchase such credit.(3) A TRS member with three years' service credit may reinstate, through ERS, service credit canceled by withdrawal of an ERS membership account if the TRS member is also current member of ERS but is not a cash balance group member.(4) No service credit may be transferred based in whole or in part upon reinstated credit under this section unless the applicant meets all conditions for membership, amount of service credit, and payments required for the reinstatement of the credit.(5) Any TRS membership service credit reinstated under this subsection may be applied toward the service credit requirements of TRS laws and rules for the purchase of out-of-state, military or other special service credit.(i) Termination of membership. The transfer of TRS service credit to ERS will terminate TRS membership and cancel all rights to benefits from TRS based on that service.(j) Service in the month following retirement. Both TRS and ERS laws require a separation from employment with any employer covered by the respective system for a period following a member's effective retirement date as a condition for retirement with a benefit from the respective system. A member retiring under TRS whose last place of employment is with an ERS-covered employer shall provide a certification of termination of employment to TRS in the manner directed by the retirement system, specifying the last date of employment. With respect to a service or disability retirement by persons using credit transferred between the systems, the following provisions apply:(1) An ERS retiree whose last place of employment is with a TRS-covered employer must be off the payroll of any TRS-covered employer for the first full calendar month following retirement under ERS, or the ERS retirement will be canceled. A TRS retiree whose last place of employment is with an ERS-covered employer must be off the payroll of any ERS-covered employer for the first full calendar month following retirement under the TRS, or the TRS retirement will be canceled.(2) An ERS retiree whose last place of employment is with an ERS-covered employer may begin work for a TRS-covered employer after retirement under ERS without a one month break in service. A retiree from the TRS whose last place of employment is with a TRS-covered employer may begin work for an ERS-covered employer after retirement under TRS without a one month break in service.(k) Average salary.(1) In determining average salary used in computing benefits available to a person transferring credit under this section, the receiving system will use the higher of the average salary derived solely from the service originally established in each system respectively. In comparing average salaries and determining benefits payable, the receiving system shall accept the transferring system's determination of its average salary, applying all laws and policies of the transferring system in the calculation of that system's average salary.(2) Each system will be responsible for determining its respective average salary. The transferring system will certify its average salary to the receiving system.(3) If there is less service than is required in the applicable formula to compute the average salary in TRS under the laws and rules applicable to that system, the average salary will be computed using salaries for the service for which credit was established. This average salary shall be used in the comparison of average salaries to determine which system's average salary is higher.(l) Transfer of Certain State Employees to ERS.(1) Certain state employees have been transferred to ERS membership as a result of legislation enacted by the 73rd Texas Legislature, Regular Session. Among these are employees of the Texas Education Agency, employees of the Texas Surplus Property Agency transferred to the General Services Commission, some employees of the Texas Rehabilitation Commission, the Texas School for the Deaf, the Texas School for the Blind, the Higher Education Coordinating Board, and the Texas Youth Commission. Such employees are eligible to transfer TRS credit to ERS for benefit purposes under the Government Code, Chapter 805 subject to the modifications contained in this section.(2) Employees whose agencies have been transferred to ERS coverage, including the Texas Education Agency and the Texas Rehabilitation Commission, the Texas School for the Deaf, the Texas School for the Blind, the Higher Education Coordinating Board, and the Texas Youth Commission, may not retire under TRS after the effective date of the transfer, unless they again become TRS members based on other employment and subsequently obtain TRS service credit qualifying them for TRS retirement, except as provided for in Government Code, §805.002(a).(3) Employees described in paragraph (1) of this subsection are not eligible for TRS death benefits other than a return of accumulated contributions.(4) Notwithstanding subsection (k) of this section, the average compensation of employees described in paragraph (1) of this subsection qualifying for ERS benefits may be determined by combining monthly rates of pay while a TRS member with ERS credited monthly salary to obtain the highest 36 months of pay.(m) Death benefits. Service credit of a person may not be transferred between systems if:(1) one of the systems has paid or begun to pay death benefits based on the person's account; or(2) the beneficiaries for death benefits in each system are not identical. However, when only reinstated service is being transferred and no beneficiary designation was made at or after the time of reinstatement, a transfer will be allowed.(n) Service credit.(1) TRS will make and accept transfers of service credit in whole plan year increments based upon TRS rules for crediting service. No partial years will be transferred.(2) TRS and ERS service in a plan year will not be combined to obtain a year of TRS service credit.(3) A person who transfers credit to TRS or ERS may not receive more than a total of five years of service credit for military service. The retirement system from which credit is transferred may refund contributions made for military service, other than any amount that represents a fee, that exceeds the maximum amount creditable. A person who retires under Government Code, Chapter 805, who returns to work under TRS or ERS may not purchase additional military service credit if the purchase would cause the total of all military service credit to exceed five years.(4) A person who purchased out of state service credit before retirement under Government Code, Chapter 805, may not purchase additional out of state service credit upon return to work under TRS if the purchase would cause the total of all out of state service credit to exceed fifteen years.(o) ORP participants. A person who has elected to participate in ORP but who is an ERS member may repurchase TRS service credit canceled by the election of ORP for purpose of transferring it to ERS under the Government Code, Chapter 805, provided TRS will not transfer or pay benefits for such service credit if the member actively participates in ORP between the date the TRS service credit is purchased and the date of the member's retirement or death. TRS will refund without interest any amounts deposited for such credit in the event the person returns to active ORP participation. The person must agree to refund the amount of any benefits erroneously paid to the person as a result of any such return to ORP.(p) Return to TRS covered employment.(1) A person who transferred service to ERS and retired under Government Code, Chapter 805, and who returns to employment in a position eligible for TRS membership continues to be governed by the provisions of state law as described under §51.12(a) of this title (relating to Applicability of Certain Laws in Effect Before September 1, 2005) upon resumption of TRS membership, if, while a member of TRS, the person met at least one of the requirements of §51.12(a) of this title by August 31, 2005.(2) Regardless of status under paragraph (1) of this subsection, a person who transferred service to ERS and retired under Government Code, Chapter 805, and who returns to employment in a position eligible for TRS membership after August 31, 2007, is subject to the provisions of Government Code §824.202(a-1) and (d-1) and §29.1(a) of this title (relating to Eligibility for Service Retirement) for eligibility for retirement under TRS.(3) A person who has at least five years of TRS service credit on August 31, 2014 and transfers that service credit to ERS, retires from ERS under Government Code, Chapter 805, and returns after September 1, 2014 to employment in a position eligible for TRS membership is subject to the provisions of Government Code §824.202(a-2), (b-2), and (d-2) and §29.1(e) of this title (relating to Eligibility for Service Retirement).",
            "sourceNote": "Source Note: The provisions of this §25.113 adopted to be effective January 12, 1994, 19 TexReg 86; amended to be effective April 22, 1994, 19 TexReg 2549; amended to be effective June 15, 1999, 24 TexReg 4458; amended to be effective February 15, 2000, 25 TexReg 1124; amended to be effective March 12, 2003, 28 TexReg 2097; amended to be effective April 28, 2004, 29 TexReg 3968; amended to be effective March 8, 2007, 32 TexReg 1079; amended to be effective April 1, 2011, 36 TexReg 1834; amended to be effective July 17, 2014, 39 TexReg 5431; amended to be effective June 8, 2023, 48 TexReg 2859."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175642&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175642",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "I",
                "label": "VERIFICATION OF SERVICE OR COMPENSATION"
            },
            "rule": {
                "number": "§25.121",
                "label": "Employer Verification"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100725&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100725",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Verification of service or compensation that was not reported to TRS or that was reported but requires further documentation in order to be creditable must be made by the employer in a form prescribed by TRS. At the request of TRS, employers shall provide copies of any records or information regarding service or compensation, including but not limited to contracts, work agreements, salary schedules or addenda, board minutes, payroll records, employment records, or other materials that will assist TRS in making a determination. TRS may rely upon employer verifications of service or compensation or may conduct an investigation to determine whether verified service or compensation is eligible.",
            "sourceNote": "Source Note: The provisions of this §25.121 adopted to be effective January 1, 1976; amended to be effective June 15, 1999, 24 TexReg 4458; amended to be effective March 12, 2003, 28 TexReg 2098; amended to be effective March 8, 2007, 32 TexReg 1079; amended to be effective April 1, 2011, 36 TexReg 1835; amended to be effective January 1, 2016, 40 TexReg 9726."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100725&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100725",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "I",
                "label": "VERIFICATION OF SERVICE OR COMPENSATION"
            },
            "rule": {
                "number": "§25.122",
                "label": "Affidavit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213729&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "213729",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "For unreported service, the employer must certify the service and compensation paid and the member must sign the affidavit to show the service was rendered.",
            "sourceNote": "Source Note: The provisions of this §25.122 adopted to be effective January 1, 1976; amended to be effective June 15, 1999, 24 TexReg 4458; amended to be effective March 12, 2003, 28 TexReg 2098."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213729&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "213729",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "I",
                "label": "VERIFICATION OF SERVICE OR COMPENSATION"
            },
            "rule": {
                "number": "§25.123",
                "label": "Certification"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=225886&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "225886",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The correctness of this affidavit must be certified by an official of the employer where the service was rendered. This can be done by the superintendent, business manager, certified reporting official, secretary of the school board, or treasurer of the school board at the time the certification is made. The certification must be based upon the existing records maintained by the employer and must be in the form prescribed by TRS for this purpose. TRS shall determine whether the verified service or compensation is eligible for TRS purposes. For a charter holder or charter school that is no longer in operation, verification shall be made by the Texas Commissioner of Education or the custodian designated under 19 TAC §100.1203(b) (relating to Records Management).",
            "sourceNote": "Source Note: The provisions of this §25.123 adopted to be effective January 1, 1976; amended to be effective June 15, 1999, 24 TexReg 4458; amended to be effective March 8, 2007, 32 TexReg 1079; amended to be effective April 1, 2011, 36 TexReg 1835; amended to be effective June 8, 2023, 48 TexReg 2859."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=225886&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "225886",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "J",
                "label": "CREDITABLE TIME AND SCHOOL YEAR"
            },
            "rule": {
                "number": "§25.131",
                "label": "Required Service"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151091&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "151091",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Beginning on the first day of the 2011-2012 school year and thereafter:(1) Except as provided in paragraph (3) of this subsection, a member must work in a TRS eligible position and be paid or receive paid leave from a TRS eligible position at least 90 days during the school year to receive a year of service credit.(2) A substitute as defined in §25.4 of this title (relating to Substitutes) will be qualified for membership and granted a full year of service credit by working 90 or more days as a substitute in a school year, receiving pay for that work, and verifying the work as provided in §25.121 of this title (relating to Employer Verification) and §25.47 of this title (relating to Deadline for Verification) and paying the actuarial cost for the work as provided in §25.43 of this title (relating to Cost for Unreported Service or Compensation).(3) In the last school year of service before retirement, a member serving in an eligible position, other than a position described by subsection (c) of this section, who worked and was paid for that work or received paid leave for less than 90 days in the school year but worked and was paid for that work or received paid leave for a full fall semester in accordance with the employer's calendar will receive a year of service credit. If the employer's calendar does not provide for semesters, a member must work and be paid for work in an eligible position or receive paid leave from an eligible position for at least 90 days in order to receive a year of service credit for the school year before retirement.(4) Days that the employer is scheduled to be closed for business are not included in the 90 days of work required to receive a year of service credit unless the day(s) are paid holidays by the employer or the employee was charged with paid leave during the closing. Holidays that are not included in the required number of work days for an employee are not counted as paid holidays or days of paid leave.(b) For school years prior to the 2011-2012 school year:(1) Except as provided in paragraph (2), (3), or (4) of this subsection, a member must serve at least 4 1/2 months in an eligible position during the school year to receive credit for a year of service.(2) A member who served less than four and one-half months in a school year but served a full semester of more than four calendar months will receive credit for a year of service.(3) A substitute as defined in §25.4 of this title will be qualified for membership and granted a full year of service credit by rendering 90 or more days of service as a substitute in a school year and verifying the service as provided in §25.121 of this title and §25.47 of this title and paying deposits and fees for the service as provided in §25.43 of this title.(4) An employee who enters into an employment contract or oral or written work agreement for a period which would qualify the employee for a year of service credit under the other provisions of this section but who actually renders only the amount of service specified in §25.4 of this title will receive credit for a year of service credit.(c) Beginning on the first day of the 2025-2026 school year, a member who is serving in a membership eligible position and who, under the member's contract or work agreement, is regularly scheduled to work fewer than five days per week for at least two weeks per month may, in lieu of the requirements in subsection (a) of this section and except as provided by subsection (e) of this section, establish a year of service credit by working and receiving pay for that work or using paid leave for four and one-half months. (d) Except as provided by subsection (e) of this section, the four and one-half month period described by subsection (c) of this section must include four full calendar months in which the member renders service and is paid or the member uses paid leave, for at least eight days and an additional five days of service rendered and for which the member is paid or paid leave used in another calendar month or months that do not include the four full calendar months.(e) Beginning on the first day of the 2025-2026 school year, a member who is serving in a membership-eligible position described by subsection (c) of this section for an employer that provides for semesters in its calendar may, in the last school year before retirement, receive a year of service credit if the member worked and was paid for that work or received paid leave for a full fall semester in accordance with the employer's calendar.(f) For the purposes of subsection (e) of this section, a member who is regularly scheduled to work fewer than five days per week for at least two weeks per month and otherwise meets the requirements of subsection (e) will be considered to have worked a full fall semester in accordance with the employer's calendar if the member works and is paid for that work or receives paid leave for each day the member was required to work during that semester even if the employer's calendar includes additional workdays on which the member was not required to work.(g) Beginning on the first day of the 2015-2016 school year and ending on the last day of the 2024-2025 school year, in lieu of the requirements in subsection (a) of this section, a member who is serving in a membership-eligible position and who is regularly scheduled to work fewer than five days per week, may establish a year of service credit by working and receiving pay for that work or using paid leave, for four and one-half months. The four and one-half month period must include four full calendar months in which the member renders service and is paid or the member uses paid leave, for at least eight days and an additional five days of service rendered and for which the member is paid or paid leave used in another calendar month or months but not to include the four full calendar months.(h) Except as otherwise provided in this section regarding service credit granted in the school year in which the member retires, in no event may a member receive a year of service credit earlier than December 31.",
            "sourceNote": "Source Note: The provisions of this §25.131 adopted to be\r\neffective January 1, 1976; amended to be effective June 15, 1999,\r\n24 TexReg 4459; amended to be effective March 12, 2003, 28 TexReg\r\n2099; amended to be effective March 8, 2007, 32 TexReg 1079; amended\r\nto be effective April 1, 2011, 36 TexReg 1835; amended to be effective\r\nDecember 23, 2014, 39 TexReg 10023; amended to be effective January\r\n1, 2016, 40 TexReg 9727; amended to be effective June 8, 2023, 48\r\nTexReg 2859; amended to be effective September 1, 2025, 50 TexReg\r\n5343."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151091&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "151091",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "J",
                "label": "CREDITABLE TIME AND SCHOOL YEAR"
            },
            "rule": {
                "number": "§25.132",
                "label": "Paid Leave Time"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175644&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175644",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Paid leave time, including vacation, sick, and administrative leave, used during the normal course of business and for which a member is paid shall be considered as service in determining a creditable year. This ruling does not include summer months between school terms when no service is rendered even though the member may be paid in 12 monthly payments or days in which the employer is closed for business and the days are not included in the employee's required number of work days. Certification of payment and copies of the employer's policy must be provided to TRS on request.",
            "sourceNote": "Source Note: The provisions of this §25.132 adopted to be effective January 1, 1976; amended to be effective June 15, 1999, 24 TexReg 4459; amended to be effective April 1, 2011, 36 TexReg 1835."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175644&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175644",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "J",
                "label": "CREDITABLE TIME AND SCHOOL YEAR"
            },
            "rule": {
                "number": "§25.133",
                "label": "School Year"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19934&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19934",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) For the purpose of granting creditable time toward retirement and determining a member's annual compensation, for school years prior to the 2012-2013 school year a \"school year\" shall be one of the following:(1) a period extending from the beginning of the school term (but not earlier than August 23) through August 31 of the following calendar year for service rendered prior to the 1970-1971 school year;(2) a period extending from the beginning of the school term (but not earlier than August 2) through August 31 of the following calendar year for service rendered for the 1970-1971 school year and thereafter; or(3) a period not to include more than 12 months, extending from the beginning date of a \"qualified contract\" or an oral or written work agreement year through August 31 of the following calendar year or to the beginning date of a subsequent qualified contract or oral or written work agreement year, whichever is earlier. Use of this \"qualified contract year\" is optional for school years 1970-1971 through 1974-1975 but shall be mandatory for all persons under a qualified contract after the 1974-1975 school year. Use of a written or oral work agreement that is not a qualified contract is optional for school years 1970-1971 through 1994-1995, but shall be mandatory for all persons employed under a written or oral work agreement after the 1994-1995 school year. A \"qualified contract\" or \"work agreement\" is any employment agreement in which service each year under the agreement is to begin on or after July 1 and is to extend past August 31 of the same calendar year. A \"qualified contract\" further imposes upon the employing school district a legal obligation to employ and compensate the employee for the entire duration of the agreed employment period.(b) Except as provided in §25.26(g) of this title (relating to Annual Compensation Creditable for Benefit Calculation) regarding determining a member's annual compensation in the year of retirement, for the purpose of granting creditable time toward retirement and determining a member's annual compensation, beginning with the 2012-2013 school year and thereafter a \"school year\" shall be a 12 month period beginning September 1 and ending August 31 of the next calendar year.",
            "sourceNote": "Source Note: The provisions of this §25.133 adopted to be effective January 1, 1976; amended to be effective June 15, 1999, 24 TexReg 4459; amended to be effective January 5, 2012, 36 TexReg 9340; amended to be effective January 1, 2016, 40 TexReg 9727."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19934&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19934",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "J",
                "label": "CREDITABLE TIME AND SCHOOL YEAR"
            },
            "rule": {
                "number": "§25.134",
                "label": "Credit Limit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170782&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170782",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "No member can receive credit for more than one year of service in any school year.",
            "sourceNote": "Source Note: The provisions of this §25.134 adopted to be effective January 1, 1976."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170782&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170782",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "J",
                "label": "CREDITABLE TIME AND SCHOOL YEAR"
            },
            "rule": {
                "number": "§25.135",
                "label": "Service Credit Missing from Annual Statement"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=152443&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "152443",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If membership service has not been credited by TRS on a member's annual statement, the member must notify TRS in writing of the service that the member requests to be credited. If an error on the annual statement regards either service rendered or compensation paid in the immediately preceding school year and the error may be corrected as provided in §25.28(g) of this title (relating to Payroll Report Dates), the member must notify TRS in writing of the error by May 31 of the school year following the school year in which the error occurred.(b) Except as provided in subsection (a) of this section, for service rendered after August 31, 2011, in order for service missing from an annual statement to be creditable, TRS must receive the written notification on or before the last day of the fifth school year after the end of the school year in which the service was rendered.(c) For service rendered on or before August 31, 2011, in order for service missing from an annual statement to be creditable, TRS must receive the written notification on or before the last day of the fifth school year after the end of the school year in which the service was rendered or August 31, 2016, whichever is later.(d) The notification deadline is applicable to any membership service that has not been properly credited on a member's annual statement, including service not reported by an employer or service reported but for which TRS did not grant credit to the member.(e) Failure to receive an annual statement in one or more years, including years in which the person is not a member of TRS, does not extend the notification deadline.(f) Required deposits deducted and paid to TRS are not refundable to a member if service is not creditable, unless a member terminates membership by withdrawal of all contributions in accordance with applicable law.(g) After making timely notification to TRS, a member must provide verification and make deposits as required by TRS before service may be credited. Verification must be made in the form and within the time period specified by applicable laws and rules, including §25.47 of this title (relating to Deadline for Verification). Service shall be creditable only if TRS determines that the verified service is sufficient to establish the credit being sought.",
            "sourceNote": "Source Note: The provisions of this §25.135 adopted to be effective September 1, 2011, 36 TexReg 5372; amended to be effective December 23, 2014, 39 TexReg 10023."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=152443&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "152443",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "K",
                "label": "DEVELOPMENTAL LEAVE"
            },
            "rule": {
                "number": "§25.151",
                "label": "Application for Developmental Leave"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213731&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "213731",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An eligible member with five years of membership service before the developmental leave occurs may receive retirement service credit for up to two years of developmental leave if the leave was approved as developmental leave in advance by the member's employer and notice of intent to take the leave was filed with the retirement system on or before the date a member began the leave.(b) The member's employer is responsible for determining whether a member's leave meets the definition of \"developmental leave\" in Texas Government Code, §823.402(b).(c) Application for developmental leave credit must be made on or before the leave begins on a form available from the Teacher Retirement System of Texas entitled \"Notice of Intent to Take Developmental Leave.\"(d) A member desiring developmental leave credit must submit the completed application form, including certification by the member's employer, to the Teacher Retirement System of Texas on or before the date the leave begins. The member must sign a statement on the form that he or she intends to take developmental leave for which credit is desired and must indicate the beginning and ending dates of the leave that has been granted. To be creditable, developmental leave must cover at least 90 days during a school year determined in accordance with the method set forth in §25.131 of this title (relating to Required Service) and in TRS policies implementing that section. After completing the form, the member must submit it to his or her employer for certification.(e) The employer must certify in the space provided on the application form that the leave satisfies the statutory requirements for developmental leave.(f) The completed and certified form must be received by the Teacher Retirement System of Texas not later than the date the member's developmental leave begins. The Teacher Retirement System of Texas will acknowledge receipt of the form.(g) To obtain service credit for the leave after it has been completed, the member must meet the eligibility requirements and pay the required deposits.",
            "sourceNote": "Source Note: The provisions of this §25.151 adopted to be effective September 11, 1977, 2 TexReg 3280; amended to be effective September 26, 1979, 4 TexReg 3305; amended to be effective October 16, 1984, 9 TexReg 5092; amended to be effective January 7, 1986, 10 TexReg 4950; amended to be effective September 1, 1992, 17 TexReg 5120; amended to be effective June 15, 1999, 24 TexReg 4459; amended to be effective March 12, 2003, 28 TexReg 2099; amended to be effective September 1, 2011, 36 TexReg 5373."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213731&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "213731",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "K",
                "label": "DEVELOPMENTAL LEAVE"
            },
            "rule": {
                "number": "§25.152",
                "label": "Eligibility, Cost, and Payment for Developmental Leave Credit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151093&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "151093",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A cost statement for developmental leave may be obtained from the retirement system on request by an eligible member after completion of the leave.(b) To be eligible to establish developmental leave credit, a member must:(1) have at least five years of service credited in the retirement system before the developmental leave occurs;(2) have, at the time the required deposits for credit are paid, at least one year of membership service credit in the retirement system following the developmental leave; and(3) have at least five years of service credited in the retirement system at the time the required deposits for the credit are paid.(c) Credit will be granted to the member upon receipt of the full amount of the required deposits.(d) The cost of establishing developmental service credit is the actuarial cost, as determined by TRS, of the additional standard annuity retirement benefits that would be attributable to the developmental leave service credit purchased under this section.(e) To calculate the actuarial cost, TRS will use the cost factors and method described in §25.302 of this title (relating to Calculation of Actuarial Cost).(f) The purchase cost described in this section assumes a lump-sum deposit will be made. If deposits are made under an installment agreement, a non-refundable installment fee of 9% applies.(g) If a member has membership service and contributions in the same school year as the year in which the developmental leave was taken, TRS shall adjust the actuarial cost as calculated under subsection (e) of this section proportionately by applying a ratio, the numerator of which is the number of TRS-covered service days rendered by the member and the denominator of which is 90 days of service required for a year of membership service credit.",
            "sourceNote": "Source Note: The provisions of this §25.152 adopted to be effective September 11, 1977, 2 TexReg 3280; amended to be effective September 26, 1979, 4 TexReg 3305; amended to be effective March 12, 2003, 28 TexReg 2099; amended to be effective April 1, 2011, 36 TexReg 1837; amended to be effective September 1, 2011, 36 TexReg 5373; amended to be effective June 8, 2023, 48 TexReg 2859."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151093&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "151093",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "L",
                "label": "OTHER SPECIAL SERVICE CREDIT"
            },
            "rule": {
                "number": "§25.161",
                "label": "Work Experience Service Credit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214457&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214457",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An eligible member may purchase one or two years of equivalent membership service credit in the Teacher Retirement System of Texas (\"TRS\") for eligible work experience in accordance with Government Code, §823.404 and subject to the approval of TRS. A member is eligible to establish up to two years of equivalent membership service credit for eligible work experience if, at the time of the purchase, the member has at least five years of membership service credit in TRS, the member is a certified career or technology education teacher, and the work experience was required for certification in a career or technological field.(b) Equivalent membership service credit for eligible work experience may be established by depositing with TRS the amounts described in subsection (c) of this section and by submitting certification, in the form and manner prescribed by TRS, that the member is entitled to salary step credit under Education Code, §21.403(b) and is eligible to purchase the service credit.(c) For each year of equivalent membership service credit described in this section and approved by TRS, the eligible member must deposit the actuarial present value, at the time of deposit, of the additional standard retirement annuity benefits that would be attributable to the work experience service credit to be purchased under this section. Upon receipt by TRS of the required amount, the member will be credited with the additional year(s) of service credit purchased up to the maximum years of service credit allowed under Government Code, §823.404.(d) To calculate these amounts, TRS will use the cost factors and method described in §25.302 of this title (relating to Calculation of Actuarial Cost).(e) No credit will be applied to the cost of a year of work experience service credit for any TRS contributions made in the same school year.(f) The purchase cost described in subsection (d) of this section assumes a lump-sum deposit will be made. If deposits are made under an installment agreement, a non-refundable installment fee of 9% applies.",
            "sourceNote": "Source Note: The provisions of this §25.161 adopted to be effective February 4, 2000, 25 TexReg 598; amended to be effective December 9, 2001, 26 TexReg 8545; amended to be effective March 12, 2003, 28 TexReg 2100; amended to be effective April 3, 2006, 31 TexReg 2870; amended to be effective March 8, 2007, 32 TexReg 1085; amended to be effective April 1, 2011, 36 TexReg 1838."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214457&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214457",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "L",
                "label": "OTHER SPECIAL SERVICE CREDIT"
            },
            "rule": {
                "number": "§25.162",
                "label": "State Personal or Sick Leave Credit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151095&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "151095",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An eligible member may purchase one year of service credit in the Teacher Retirement System of Texas (\"TRS\") for accumulated state personal or sick leave in accordance with Government Code §823.403 and subject to approval of TRS. (b) A member is eligible to purchase one year of service credit if the member has at least ten years of TRS service credit for actual service with one or more employers defined by Government Code §821.001(7), retires from such an employer, and has at least 50 days or 400 hours of accumulated state personal or sick leave on the last day of employment before retirement. Not more than an aggregate of five days of unused state personal or sick leave may be accumulated per year. State personal and sick leave may be combined, if needed, for the purpose of calculating the necessary 50 days or 400 hours. No more than one year of service credit may be purchased even if more time has been accumulated. (c) Credit purchased under this section may be used only for the purpose of calculating the amount of a retirement plan benefits but may not be used to determine eligibility for retirement plan benefits. (d) To establish service credit under this section, an eligible member must submit an employer certification in the form and manner prescribed by TRS. Additionally, the eligible member must deposit with TRS, in the manner prescribed by TRS, the actuarial present value of the additional standard retirement annuity benefits that would be attributable to the conversion of the unused state personal or sick leave into the service credit, as described in subsection (e) of this section. (e) To compute these amounts, TRS will use the State Personal or Sick Leave Conversion Factor Tables furnished by the TRS actuary of record. Specifically, TRS will select the applicable conversion factor from the table based on the age of the member in full years and months at the effective date of retirement. To obtain the cost of the service credit, the conversion factor will be multiplied by the increase in the monthly standard retirement annuity resulting from the conversion of state personal or sick leave to an additional one year of service credit. The increase in the annuity will be determined using the standard retirement annuity without an adjustment for an optional service retirement annuity plan selected by the member because any optional plan selected by the member is required by Government Code §824.204(b) to be the actuarial equivalent of the member's standard retirement annuity. Attached Graphic",
            "sourceNote": "Source Note: The provisions of this §25.162 adopted to be effective February 4, 2000, 25 TexReg 598; amended to be effective January 30, 2002, 27 TexReg 272; amended to be effective March 12, 2003, 28 TexReg 2100; amended to be effective April 1, 2011, 36 TexReg 1838; amended to be effective September 1, 2019, 44 TexReg 4185; amended to be effective September 1, 2023, 48 TexReg 4519."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151095&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "151095",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "L",
                "label": "OTHER SPECIAL SERVICE CREDIT"
            },
            "rule": {
                "number": "§25.163",
                "label": "Service Credit Purchase"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151096&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "151096",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Service credit purchased under the former provisions of Government Code §823.405, repealed effective January 1, 2006, may be used for retirement benefit purposes to the extent allowed by law.",
            "sourceNote": "Source Note: The provisions of this §25.163 adopted to be effective December 9, 2001, 26 TexReg 8545; amended to be effective March 12, 2003, 28 TexReg 2100; amended to be effective February 9, 2006, 31 TexReg 709; amended to be effective January 24, 2010, 35 TexReg 503; amended to be effective April 1, 2011, 36 TexReg 1838."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151096&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "151096",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "L",
                "label": "OTHER SPECIAL SERVICE CREDIT"
            },
            "rule": {
                "number": "§25.164",
                "label": "Credit for Service During School Year With Membership Waiting Period"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19940&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19940",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A member of the Teacher Retirement System of Texas (TRS) who was subject to a membership waiting period during a period of employment that was between September 1, 2003, and August 31, 2005, pursuant to Government Code §822.001, as amended by Ch. 201, 78th Leg., R.S. 2003, may purchase one year of equivalent membership service credit in TRS in accordance with Government Code §823.406 and this section.(b) A member is eligible to purchase one year of service credit under this section if the following requirements are met:(1) the individual served at least 4 1/2 months in an eligible position during the school year in which the waiting period ended or, in the alternative, the individual served a full semester of more than four calendar months in an eligible position during the school year in which the waiting period ended or the individual entered into an employment contract or oral or written work agreement for a period which would qualify the individual for a year of service credit but who actually renders only 90 working days of service, and(2) any portion of that service was performed during the membership waiting period, and(3) the individual did not serve a sufficient length of time during the school year after becoming eligible for TRS membership to earn a year of membership service credit in the retirement system.(c) A member may not purchase service credit under this section until after the end of the school year in which the waiting period ended. If requested by TRS, in order to purchase service credit under this section, a member shall provide verification of service and salary during the school year in which the waiting period service was performed. The verification must be in a form that TRS finds acceptable to determine that the member meets the requirements of this section.(d) Equivalent membership service credit may be established under this section by depositing with TRS the amount described in this subsection. To establish service credit for the year, the eligible member must deposit the actuarial present value, at the time of deposit, of the additional standard retirement annuity benefits that would be attributable to the service credit to be purchased under this section.(e) Upon receipt by TRS of the required amount, the member will be credited with the year of service credit. A member may not receive more than one year of service credit for the service performed in a school year.(f) To calculate the amount required by this section, TRS will use the cost factors and method described in §25.302 of this title (relating to Calculation of Actuarial Cost).(g) No credit will be applied to the cost of a year of membership waiting period service credit for any TRS contributions made in the same school year.(h) The purchase cost described in subsection (f) of this section is based on a lump-sum deposit. If deposits are made by installment payments, the purchase cost will be adjusted to reflect a non-refundable installment fee of 9%.",
            "sourceNote": "Source Note: The provisions of this §25.164 adopted to be effective April 28, 2004, 29 TexReg 3968; amended to be effective April 3, 2006, 31 TexReg 2870; amended to be effective March 8, 2007, 32 TexReg 1085; amended to be effective April 1, 2011, 36 TexReg 1838."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19940&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19940",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "M",
                "label": "OPTIONAL RETIREMENT PROGRAM"
            },
            "rule": {
                "number": "§25.171",
                "label": "Election of ORP"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213732&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "213732",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Members of the retirement system (TRS) may elect to participate in the optional retirement program (ORP) if:(1) the member is employed in a position in a Texas public institution of higher education eligible for ORP participation;(2) the time limit for electing to participate in ORP has not expired; and(3) the person has never exercised an election between TRS and ORP participation.(b) Persons who elect to participate in ORP must do so in writing on a form provided by the Teacher Retirement System of Texas to employing institutions for use by their eligible employees. A copy of the election to participate in ORP must be submitted to the Teacher Retirement System of Texas by the employer.",
            "sourceNote": "Source Note: The provisions of this §25.171 amended to be effective September 26, 1979, 4 TexReg 3306."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=213732&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "213732",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "M",
                "label": "OPTIONAL RETIREMENT PROGRAM"
            },
            "rule": {
                "number": "§25.172",
                "label": "ORP and TRS"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=186592&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "186592",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as provided in subsection (c) of this section, a person who has elected ORP participation must become a member of TRS if the person later becomes an employee of any Texas public educational institution other than in a ORP-eligible position with an institution of higher education. The following persons are generally required to become TRS members under this subsection:(1) ORP participants who become employed in a public school in a position eligible for TRS membership; and(2) ORP participants with less than one year's participation in ORP who become employed in a TRS-eligible position in an institution of higher education that is not ORP-eligible.(b) A person who has elected ORP participation but who is later required to become a member of TRS under subsection (a) of this section is ineligible for further active ORP participation even if that person again becomes employed in an ORP-eligible position with a Texas public institution of higher education.(c) Subsection (a) of this section does not apply when:(1) an ORP participant is simultaneously employed both in an ORP-eligible position with a Texas public institution of higher education and in a position in a Texas public educational institution otherwise eligible only for TRS membership;(2) a person, after a valid ORP election, becomes employed in an institution of higher education in a position that is not ORP-eligible if the person:(A) participated in ORP for one year in an ORP-eligible position with a Texas public institution of higher education; and(B) had no intervening employment that required TRS membership; or(3) a person, after a valid ORP election, becomes employed in a state agency that is not a TRS-covered employer and later becomes employed in an institution of higher education.(d) A person, including a person described in subsection (c) of this section, will not be eligible for TRS membership or credit for any employment that occurred while the person was an ORP participant, even if the person later returns to TRS membership as required by subsection (a) of this section. A person described in subsection (c)(1) of this section is not eligible for state ORP retirement contributions for simultaneous employment in institutions covered by TRS that are not institutions of higher education.(e) A person who elects ORP participation chooses ORP in lieu of TRS membership and benefits. Upon election of ORP, a member of TRS loses all benefit rights in TRS other than a right to the return of annual contributions, even if the member has five or more years of creditable service under TRS. However, a member who returns to TRS membership under the provisions of law is entitled to any TRS benefits which may accrue thereafter in addition to any ORP benefits to which he may have become entitled. ORP participants returning to TRS membership may establish service credit, under applicable rules governing reinstatement of accounts, for all years of service in public educational institutions except for those years when the person participated in ORP.(f) A person who fails to elect ORP participation during the statutory election eligibility period may not subsequently elect participation.",
            "sourceNote": "Source Note: The provisions of this §25.172 adopted to be effective September 26, 1976, 4 TexReg 3306; amended to be effective October 20, 1986, 11 TexReg 4215; amended to be effective October 4, 1989, 14 TexReg 4920; amended to be effective April 1, 2011, 36 TexReg 1838; amended to be effective June 8, 2023, 48 TexReg 2859."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=186592&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "186592",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "M",
                "label": "OPTIONAL RETIREMENT PROGRAM"
            },
            "rule": {
                "number": "§25.173",
                "label": "Correction of Ineligible Participation in TRS"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175645&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175645",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as provided in subsection (e) of this section, a person who elected to participate in ORP and participated in ORP for at least one year and who was reported to TRS in error as described in §830.108, Government Code, must be restored to participation in ORP and may not receive a distribution of benefits from TRS based on the ineligible participation.(b) Each employer that reported the person in error to TRS must, within 30 calendar days of receiving the request from TRS, certify on a form prescribed by TRS that the person was reported in error to TRS; the amount of the person's compensation that was creditable for ORP purposes and the amount of participant contributions that should have been contributed to ORP for each school year that the person was employed by that employer and reported in error to TRS; and the amount, if any, of employer contributions made to TRS under §§825.4041, 825.406, 825.407, or 825.4071, Government Code, based on the employment of the person reported to TRS in error.(c) The person reported to TRS in error must provide information required by TRS to make a direct trustee-to-trustee transfer to the trustee of the person's ORP plan account of authorized amounts and complete any forms prescribed and required by TRS to make the direct trustee-to-trustee transfer of funds, including the agreement of the trustee of the person's ORP plan account to accept the transfer in accordance with §830.108(d)(2)(B), Government Code. The trustee must also agree to separately account for any after-tax funds that are part of the direct trustee-to-trustee transfer. Authorized amounts include the amount of participant contributions that should have been made to ORP plus an amount representing earnings authorized by §830.108. If the amount of ineligible member contributions received by TRS is less than the amount of participant contributions that should have been made to ORP, then TRS may only make a direct trustee-to-trustee transfer of an amount equal to the amount of ineligible TRS member contributions plus authorized earnings. TRS may not pay or transfer any amount of required ORP participant contributions that exceed the amount of ineligible member contributions received by TRS.(d) Each employer that reported the person in error to TRS and that made employer contributions in error to TRS under §§825.4041, 825.406, 825.407, or 825.4071, Government Code, must provide the certification required in subsection (b) and receive the approval of TRS before taking a credit for the employer contributions through the TRS employer reporting system. Earnings on the employer contributions paid in error to TRS are not authorized for payment by TRS and may not be taken as a credit through the employer reporting system.(e) If within 180 days of notice by TRS of the reporting error, the person does not have or cannot establish an ORP account; cannot obtain the required certification from the employer(s) that reported the person in error to TRS; cannot obtain the approval of the trustee of the person's ORP plan account to receive the direct trustee-to-trustee transfer of funds from TRS; or does not provide the forms required for TRS to make the direct trustee-to-trustee transfer of funds to the person's ORP plan account, TRS is authorized to pay directly to the person reported in error to TRS the ineligible TRS member contributions equal to the amount of ORP member contributions received by TRS that should have been contributed to ORP plus the amount representing earnings on amounts authorized by §830.108.(f) TRS must make a direct payment to the person of the amount of ineligible TRS member contributions deposited in error with TRS that exceed the amount of ORP participant contributions that should have been paid to the person's ORP account and any amounts paid by the person to purchase TRS service credit while ineligible to participate in TRS. The amount of direct payment to the person reported in error to TRS under this subsection does not include earnings that are authorized on amounts transferred to the person's ORP account by §830.108 or paid directly to the person pursuant to subsection (e).(g) An employer of a person who elected ORP but was reported in error to TRS may not take a credit through the TRS employer reporting system of any member or employer contributions authorized in §830.108(c)(2) without the knowledge and express approval of TRS.",
            "sourceNote": "Source Note: The provisions of this §25.173 adopted to be effective November 14, 2017, 42 TexReg 6371."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175645&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175645",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "N",
                "label": "INSTALLMENT PAYMENTS"
            },
            "rule": {
                "number": "§25.181",
                "label": "Minimum Monthly Payment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175646&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175646",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Installment payments to establish special service credit, except USERRA service credit which may not be purchased using installment payments, including payments by cash, check, or similar methods, payments by bank draft, or payments by payroll deduction shall be no less than $25 per month.",
            "sourceNote": "Source Note: The provisions of this §25.181 adopted to be effective September 1, 1992, 17 TexReg 5120; amended to be effective September 17, 1997, 22 TexReg 9255; amended to be effective January 1, 2016, 40 TexReg 9727."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175646&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175646",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "N",
                "label": "INSTALLMENT PAYMENTS"
            },
            "rule": {
                "number": "§25.182",
                "label": "Yearly Increments of Credit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151103&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "151103",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) For out-of-state service credit, military service credit, work experience service credit purchased under Government Code §823.404, USERRA service credit, developmental leave service credit, and unreported service credit, a member may choose to purchase fewer years of service credit than the total years of service credit which the member is eligible to purchase. The years of credit shall be purchased and credited in the order in which they appear on the TRS bill for the purchase.(b) For military service and work experience service credit purchased under Government Code §823.404, the member must complete payment for the number of years of credit that the member has chosen to purchase before purchasing additional years of the same kind of service credit by either lump sum payment or by additional installment payments. A member purchasing USERRA service credit must purchase the service credit by paying the cost of the additional year(s) in a lump sum payment and may not purchase the service credit using the installment payment method. Until August 31, 2013, a member purchasing out-of-state service credit, developmental leave service credit, or unreported service credit under an installment purchase agreement may enter into a second installment purchase agreement for the same type of service credit or may pay the lump sum cost of the additional service credit before completing the purchase of the same type of service credit under the initial installment purchase agreement.(c) A member must purchase all withdrawn service credit and may not choose to purchase this type of service credit in yearly increments. A member will not receive any credit for withdrawn service until the entire balance due and all fees have been paid.",
            "sourceNote": "Source Note: The provisions of this §25.182 adopted to be effective September 1, 1992, 17 TexReg 5120; amended to be effective June 1, 1995, 20 TexReg 3733; amended to be effective March 12, 2003, 28 TexReg 2100; amended to be effective April 1, 2011, 36 TexReg 1839; amended to be effective January 5, 2012, 36 TexReg 9341; amended to be effective January 1, 2016, 40 TexReg 9727."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151103&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "151103",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "N",
                "label": "INSTALLMENT PAYMENTS"
            },
            "rule": {
                "number": "§25.183",
                "label": "Nonpayment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170783&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170783",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following occurrences shall be treated as nonpayment of installment payments that are due:(1) a check returned for any reason;(2) any bank draft which is not honored;(3) payroll deductions not received by the retirement system; or(4) a payment made by payroll deduction for which an employer making the deduction subsequently takes credit.",
            "sourceNote": "Source Note: The provisions of this §25.183 adopted to be effective September 1, 1992, 17 TexReg 5120; amended to be effective September 17, 1997, 22 TexReg 9255; amended to be effective June 15, 1999, 24 TexReg 4460; amended to be effective April 1, 2011, 36 TexReg 1839."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170783&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170783",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "N",
                "label": "INSTALLMENT PAYMENTS"
            },
            "rule": {
                "number": "§25.184",
                "label": "Refund for Nonpayment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=64456&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "64456",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The Teacher Retirement System of Texas (TRS) may refund installment payments already made, but not credited towards service, if:(1) an installment payment is not made in full within 60 days after the due date;(2) two or more consecutive monthly payments have been made through a check on an account with insufficient funds or a closed account or through an automatic bank draft for which insufficient funds were available;(3) a member notifies TRS in writing that he will no longer make payments pursuant to the installment schedule and requests a refund of amounts previously paid; or(4) the number of partial payments becomes excessive.(b) If TRS refunds payments to a member pursuant to this section and the member later makes payment by lump sum payment or by the installment method for the same service credit for which the refund was made, any fees required by law or rule will be calculated using the new date of payment rather than the date of initial participation in the installment payment method.",
            "sourceNote": "Source Note: The provisions of this §25.184 adopted to be effective September 1, 1992, 17 TexReg 5120; amended to be effective September 17, 1997, 22 TexReg 9255; amended to be effective March 8, 2007, 32 TexReg 1079; amended to be effective April 1, 2011, 36 TexReg 1839; amended to be effective December 23, 2014, 39 TexReg 10024."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=64456&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "64456",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "N",
                "label": "INSTALLMENT PAYMENTS"
            },
            "rule": {
                "number": "§25.185",
                "label": "Amounts Not Refundable"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=28680&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "28680",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The 9.0% per annum fee required by the Government Code, §825.410(g), is not refundable to either a member or beneficiary for any reason.(b) Installment payments that have already established service credit are not refundable to a member or beneficiary unless a refund of total accumulated contributions is made to a member or beneficiary.(c) The following amounts are not refundable to a member or beneficiary unless a refund of total accumulated contributions is made to a member or beneficiary:(1) amounts paid for unreported service deposits, less fees; or(2) amounts paid for ineligible withdrawn service deposits, less fees.",
            "sourceNote": "Source Note: The provisions of this §25.185 adopted to be effective September 1, 1992, 17 TexReg 5120; amended to be effective June 15, 1999, 24 TexReg 4460."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=28680&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "28680",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "N",
                "label": "INSTALLMENT PAYMENTS"
            },
            "rule": {
                "number": "§25.186",
                "label": "Automatic Bank Draft"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151105&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "151105",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The Teacher Retirement System of Texas (TRS) may accept installment payments by automatic bank draft authorized by a member in writing on a form prescribed by TRS.",
            "sourceNote": "Source Note: The provisions of this §25.186 adopted to be effective September 1, 1992, 17 TexReg 5120."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151105&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "151105",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "N",
                "label": "INSTALLMENT PAYMENTS"
            },
            "rule": {
                "number": "§25.188",
                "label": "Payment by Beneficiary"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100763&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100763",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A beneficiary who elects to complete installment payments under the Government Code, §825.410(d)(2), may complete payment only for the same type of service credit for which the member had made at least one payment prior to the member's death. If the member had elected to make installment payments on fewer years of service credit than he was eligible to purchase, the beneficiary may complete the installment payments only for the years of credit elected by the member and for which the member had made at least one payment. A beneficiary who elects to complete installment payments must do so in a single lump sum payment received by TRS no later than 12 months after the date of death of the member. Payments for TRS service credit shall be paid in a manner consistent with any applicable limitations on contributions under 26 United States Code §415, including any applicable limitations on payments as a percentage of compensation of the participant from the employer for the school year in which the payments are sought to be made by a beneficiary. A beneficiary may not purchase TRS service credit under this section if payments exceed applicable limitations on contributions.",
            "sourceNote": "Source Note: The provisions of this §25.188 adopted to be effective September 1, 1992, 17 TexReg 5120; amended to be effective March 12, 2003, 28 TexReg 2100; amended to be effective April 1, 2011, 36 TexReg 1839."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100763&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100763",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "N",
                "label": "INSTALLMENT PAYMENTS"
            },
            "rule": {
                "number": "§25.189",
                "label": "Fees Set at the Time of First Payment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=186593&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "186593",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "For purposes of a statute or rule which provides that a fee is to be charged from the date of eligibility until the date payment for the credit is received or until date of redeposit, payment may be considered received or redeposited when a member makes the first installment payment. If the installment payments are refunded and if the same credit is purchased at a later time, the member may no longer claim the first payment date as the date on which payment for the credit is received for the purpose of calculating the fees due.",
            "sourceNote": "Source Note: The provisions of this §25.189 adopted to be effective September 1, 1992, 17 TexReg 5120; amended to be effective March 12, 2003, 28 TexReg 2100."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=186593&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "186593",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "N",
                "label": "INSTALLMENT PAYMENTS"
            },
            "rule": {
                "number": "§25.191",
                "label": "Time Period at Retirement to Complete Purchase of Service Credit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=129393&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "129393",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Payment for service credit other than service credit for accumulated state personal or sick leave must be received not later than two calendar months after the later of the member's effective retirement date or the last day of the month in which the member submits a retirement application and before the later of the due date for the member's first monthly annuity payment or the date on which the Teacher Retirement System of Texas (TRS) issues the first monthly annuity payment to the member. If the service credit other than service credit for accumulated state personal or sick leave must be purchased in order to establish eligibility to retire, the purchase must be completed by the effective date of retirement. If the purchase of the service credit other than service credit for accumulated state personal or sick leave cannot be completed within the time period provided in this section, the member may decline to purchase the service credit and maintain the member's effective retirement date or may revoke the member's effective retirement date and select a later effective retirement date that provides sufficient time to complete the purchase of the service credit.(b) Payment for accumulated state personal or sick leave service credit must be received by TRS not later than the 90th day after the date TRS issues a cost statement for the purchase of the service credit. If the purchase is being made by a rollover distribution from another eligible retirement plan or a direct trustee-to-trustee transfer of funds from an eligible plan as described in §823.403(d), Government Code, TRS may grant the member a one-time 30 day extension to complete the purchase. If the member cannot complete the purchase within the time period provided, the member may decline to purchase the accumulated state personal or sick leave service credit and maintain the member's effective retirement date or may revoke the member's effective retirement date and select a later effective retirement date that provides sufficient time to complete the purchase. Accumulated state personal or sick leave credit may not be purchased in order to establish eligibility for retirement benefits.",
            "sourceNote": "Source Note: The provisions of this §25.191 adopted to be effective November 14, 2017, 42 TexReg 6371."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=129393&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "129393",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "O",
                "label": "ROLLOVER DISTRIBUTIONS AND TRANSFERS TO TRS"
            },
            "rule": {
                "number": "§25.201",
                "label": "Acceptance of Rollovers and Transfers for Purchase of TRS Credit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=129394&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "129394",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In addition to funds required to be accepted under Government Code §823.005, the Teacher Retirement System of Texas (TRS) may accept the funds described in subsections (b) and (c) of this section, subject to the restrictions of this section.(b) If permitted under and subject to the provisions of federal law, TRS may accept an eligible rollover distribution from another eligible retirement plan in payment of all or a portion of any deposit a member is permitted under applicable law to make with the system for TRS credit.(1) An \"eligible rollover distribution\" is any distribution of all or any portion of the balance to the credit of the member from an eligible retirement plan. An eligible rollover distribution does not include the following:(A) any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the member or the joint lives (or joint life expectancies) of the member and the member's designated beneficiary, or for a specified period of ten (10) years or more;(B) any distribution to the extent such distribution is required under Internal Revenue Code §401(a)(9);(C) any distribution which is made upon hardship of the member; or(D) the portion of any distribution that is not includible in gross income, except to the extent permitted under federal tax law .(2) An \"eligible retirement plan\" is any program defined in Internal Revenue Code §§401(a)(31) and 402(c)(8)(B), from which the member has a right to an eligible rollover distribution, as follows:(A) an individual retirement account under Internal Revenue Code §408(a);(B) an individual retirement annuity under Internal Revenue Code §408(b) (other than an endowment contract);(C) a qualified trust;(D) an annuity plan under Internal Revenue Code §403(a);(E) an eligible deferred compensation plan under Internal Revenue Code §457(b) which is maintained by an eligible employer under Internal Revenue Code §457(e)(1)(A); and(F) an annuity contract under Internal Revenue Code §403(b).(c) If permitted under and subject to the provisions of federal law, TRS may accept a direct trustee-to-trustee transfer of funds from a plan described under §403(b) or 457(b) of the Internal Revenue Code in payment of all or a portion of any deposit a member is permitted to make with TRS for permissive service credit (as defined in Internal Revenue Code §415(n)(3)(A)) in TRS.(d) In order to authorize the rollover or transfer of funds described in this section, a member shall provide or cause to be provided to TRS information sufficient for TRS to reasonably conclude that the contribution is a valid rollover or direct trustee-to-trustee transfer as permitted under federal tax law. If TRS later determines that a contribution was an invalid rollover or direct trustee-to-trustee transfer or otherwise not permitted under federal tax law, TRS may take any action appropriate or required by the Internal Revenue Code or regulations issued thereunder, including return of the invalid contribution to the member within a reasonable time after the determination and cancellation of any credit purchased with the returned amounts.(e) TRS shall construe and administer this section in a manner such that the TRS plan will be considered a qualified plan under §401(a) of the Internal Revenue Code of 1986, (United States Code, Title 26, §401).",
            "sourceNote": "Source Note: The provisions of this §25.201 adopted to be effective January 3, 2002, 26 TexReg 11034; amended to be effective March 12, 2003, 28 TexReg 2101; amended to be effective March 8, 2007, 32 TexReg 1079."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=129394&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "129394",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "P",
                "label": "CALCULATION OF FEES AND COSTS"
            },
            "rule": {
                "number": "§25.301",
                "label": "Calculation of Fees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214458&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214458",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "All calculations of fees for service or compensation credit required by law shall be made by applying the annual percentage rate for each whole year from the ending date of the school year containing the date from which the fee is to be calculated to the beginning date of the school year in which payment in full is received by the retirement system or installment payments commence. In this section, \"school year\" means September 1 through August 31.",
            "sourceNote": "Source Note: The provisions of this §25.301 adopted to be effective March 12, 2003, 28 TexReg 2102; amended to be effective March 8, 2007, 32 TexReg 1079."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214458&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214458",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "P",
                "label": "CALCULATION OF FEES AND COSTS"
            },
            "rule": {
                "number": "§25.302",
                "label": "Calculation of Actuarial Costs of Service Credit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214459&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214459",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) When a member is purchasing TRS service credit for which the law requires that the actuarial cost or actuarial present value be deposited and for which the method in this section is referenced by another section of this title, TRS will calculate the cost using the cost factors obtained from the Actuarial Cost Tables adopted and method described in this section. For purposes of this section, TRS will use the age of the member and the service credit established by the member on September 1 of the school year in which the cost of the purchase is established. (b) The factors for individuals whose membership was established before September 1, 2007 and who have five years of service credit on August 31, 2014, and maintain membership in TRS until the time of purchase, are shown in the tables adopted as part of this subsection. Within each set of tables, the number of years of service credit to be purchased will determine which specific table will be used. Each of the tables cross-references the member's age in rows with years of credited service (before purchase) in columns. The intersection of the participant's age and service is the cost per $1,000 of salary. The cost factor for a participant with more years of service credit than shown on the table is the same as the factor shown for the highest number of years of service credit on the table for the participant. TRS will calculate the cost to purchase service credit under this section by dividing the participant's salary by 1000 and multiplying the resulting quotient by the appropriate cost factor obtained from the table. The tables set forth the cost, per $1,000 of salary, to purchase from one year to fifteen years of service credit. The number of years of service credit available for purchase is determined by the laws and rules applicable to the type of service credit to be purchased. For the purpose of calculating the required amount for a member who is not grandfathered to use a three-year salary average under §51.12 of this title (relating to Applicability of Certain Laws in Effect Before September 1, 2005), the term \"salary\" is defined as follows: (1) For the upper region of the table (where the factors appear above the line), salary is the greater of the annual salary for the last year of credited service or the average of the member's highest years of compensation calculated on September 1 of the school year in which the cost of the service credit is established. The fewer of five years of compensation or all of the member's years of compensation shall be used for the average; or (2) For the lower region of the table (where the factors appear below the line), salary is the average of the member's highest five years of compensation calculated on September 1 of the school year in which the cost of the service credit is established. A member's highest five years of compensation shall be calculated as if the member were retiring at the time the service credit is purchased. The lower region of the table (where the factors appear below the line) reflects those age and service combinations where the purchase of service credit results in immediate eligibility of the member for unreduced retirement benefits. Attached Graphic(c) For the purpose of calculation of actuarial cost for service credit for a member described in subsection (b) of this section who is grandfathered to use a three-year salary average, the term \"salary\" shall have the same meaning as in subsection (b) of this section except that a three-year salary average shall be used instead of a five-year salary average. Additionally, the cost shall be 103.5 percent of the cost as calculated under subsection (b) of this section. (d) For individuals whose membership was established on or after September 1, 2007 and who have five years of service credit on August 31, 2014, and maintain membership in TRS until the time of purchase, the methodology described in subsection (b) of this section shall be used to determine cost of additional service credit, but TRS shall use the factors in the tables adopted as part of this subsection. If the member is not grandfathered to use a three-year salary average, the term \"salary\" shall have the same meaning as in subsection (b) of this section. Attached Graphic(e) If an individual established membership on or after September 1, 2007 and has five years of service credit on August 31, 2014, and maintains membership in TRS until the time of purchase, but is grandfathered to use a three-year salary average, the term \"salary\" shall have the same meaning as in subsection (b) of this section except that a three-year salary average shall be used instead of a five-year salary average. The cost of establishing additional service credit for a grandfathered member described in this subsection, shall be 1.035 times the cost as calculated under subsection (d) of this section. (f) An individual who first was a member of TRS before September 1, 2007, but who terminated membership through withdrawal of accumulated contributions and then again joined TRS on or after September 1, 2007, and has five years of service credit on August 31, 2014 and maintains membership in TRS until the time of purchase, is subject to the calculation of cost for additional service credit under subsections (d) and (e) of this section. (g) For members who do not have five years of service credit on August 31, 2014 or whose current membership began after August 31, 2014, the methodology described in subsections (b) and (c) of this section shall be used to determine the cost of additional service credit, but TRS shall use the factors in the tables adopted as a part of this subsection. Attached Graphic(h) For the purpose of calculation of actuarial cost for service credit for a member described in subsection (g) of this section who is not grandfathered to use a three-year salary average, the term \"salary\" shall have the same meaning as in subsection (b) of this section. (i) If the individual did not have five years of service credit on August 31, 2014 or whose current membership began after August 31, 2014, but is grandfathered to use a three-year salary average, the term \"salary\" shall have the same meaning as in subsection (b) of this section except that a three-year salary average shall be used instead of a five-year salary average. The cost of establishing additional service credit for a grandfathered member described in this subsection shall be 1.035 times the cost as calculated under subsection (g) of this section.(j) The tables adopted in this section shall be used when the service credit cost is paid on or after September 1, 2023, or an installment agreement is entered into on or after September 1, 2023.",
            "sourceNote": "Source Note: The provisions of this §25.302 adopted to be effective March 8, 2007, 32 TexReg 1079; amended to be effective November 1, 2007, 32 TexReg 7693; amended to be effective January 5, 2012, 36 TexReg 9342; amended to be effective July 17, 2014, 39 TexReg 5432; amended to be effective December 23, 2014, 39 TexReg 10025; amended to be effective September 1, 2019, 44 TexReg 4185; amended to be effective September 1, 2023, 48 TexReg 4519."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214459&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214459",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "25",
                "label": "MEMBERSHIP CREDIT"
            },
            "subchapter": {
                "number": "P",
                "label": "CALCULATION OF FEES AND COSTS"
            },
            "rule": {
                "number": "§25.303",
                "label": "Calculation of Actuarial Cost for Purchase of Compensation Credit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=129405&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "129405",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) When a member is purchasing TRS compensation credit for which the law requires that the actuarial cost or actuarial present value be deposited and for which the method in this section is referenced by another section of this title, TRS will calculate the cost using the cost factors obtained from the Actuarial Cost Tables adopted and the method described in this section. TRS will use the age of the member and the service credit established by the member on September 1 of the school year in which the cost of the purchase is established. (b) Each of the tables cross-references the member's age in rows with years of credited service in columns. The intersection of the participant's age and service is the cost factor that shall be applied in determining the cost to purchase compensation credit. TRS will calculate the cost to purchase compensation credit under this section by dividing the difference between participant's final average salary before and after the purchase by 1,000 and multiplying the quotient by the appropriate cost factor obtained from the table. The eligibility of additional compensation credit available for purchase is determined by the laws and rules applicable to the type of compensation sought to be credited. (c) For individuals whose membership was established before September 1, 2007 and who have five years of service credit on August 31, 2014, and maintain membership in TRS until the time of purchase, the methodology described in subsection (b) of this section shall be used to determine cost of additional compensation credit, but TRS shall use the factors in the tables adopted as part of this subsection. Attached Graphic(d) For individuals whose membership was established on or after September 1, 2007 and who have five years of service credit on August 31, 2014, and maintain membership in TRS until the time of purchase, the methodology described in subsection (b) of this section shall be used to determine cost of additional compensation credit, but TRS shall use the factors in the tables adopted as part of this subsection. Attached Graphic(e) For members who do not have five years of service credit on August 31, 2014 or whose current membership began after August 31, 2014, the methodology described in subsection (b) of this section shall be used to determine the cost of additional compensation credit, but TRS shall use the factors in the tables adopted as a part of this subsection. Attached Graphic",
            "sourceNote": "Source Note: The provisions of this §25.303 adopted to be effective July 17, 2014, 39 TexReg 5432; amended to be effective December 23, 2014, 39 TexReg 10025; amended to be effective December 29, 2016, TexReg 41 10390; amended to be effective September 1, 2019, 44 TexReg 4185; amended to be effective September 1, 2023, 48 TexReg 4519."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=129405&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "129405",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "27",
                "label": "TERMINATION OF MEMBERSHIP AND REFUNDS"
            },
            "rule": {
                "number": "§27.2",
                "label": "Eligibility for Withdrawal of Member Contributions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=152445&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "152445",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Member contributions, including contributions picked-up by the employer pursuant to Government Code §825.409 and contributions for the purchase or re-instatement of service credit, may not be withdrawn prior to the time the member terminates employment in all positions with a TRS-covered employer, except as otherwise provided by this section.(b) A member who is serving as a substitute as described under §25.4 of this title (relating to Substitutes) and who is not employed in any other capacity with the same or another TRS-covered employer may withdraw member contributions.(c) Except as provided in subsection (b) of this section, a member employed by a TRS-covered employer may not terminate TRS membership and may not withdraw member contributions, including when the employment is ineligible for TRS membership.(d) Any withdrawal must be a complete withdrawal. No partial withdrawals are allowed.",
            "sourceNote": "Source Note: The provisions of this §27.2 adopted to be effective January 1, 1976; amended to be effective June 1, 1995, 20 TexReg 3734; amended to be effective March 12, 2003, 28 TexReg 2102; amended to be effective March 8, 2007, 32 TexReg 1086."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=152445&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "152445",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "27",
                "label": "TERMINATION OF MEMBERSHIP AND REFUNDS"
            },
            "rule": {
                "number": "§27.3",
                "label": "False Affidavit and Ineligible Refunds"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170786&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170786",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A member who makes affidavit that he or she has permanently terminated employment with any TRS-covered employer but who is so employed or who contracts for such employment before TRS mails the refund shall not be entitled to the refund.",
            "sourceNote": "Source Note: The provisions of this §27.3 adopted to be effective January 1, 1976; amended to be effective June 6, 1999, 24 TexReg 4247; amended to be effective March 12, 2003, 28 TexReg 2102; amended to be effective March 8, 2007, 32 TexReg 1086; amended to be effective September 1, 2011, 36 TexReg 5374."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170786&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170786",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "27",
                "label": "TERMINATION OF MEMBERSHIP AND REFUNDS"
            },
            "rule": {
                "number": "§27.4",
                "label": "Refunds"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=167961&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "167961",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Refunds to members who are terminating accounts will not be made until required application forms have been filed and termination of the member's employment is confirmed or the final deposit of the withdrawing member is received and posted to his account.",
            "sourceNote": "Source Note: The provisions of this §27.4 adopted to be effective January 1, 1976; amended to be effective December 23, 2014, 39 TexReg 10025."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=167961&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "167961",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "27",
                "label": "TERMINATION OF MEMBERSHIP AND REFUNDS"
            },
            "rule": {
                "number": "§27.5",
                "label": "Termination of Right to Benefits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227121&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227121",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Withdrawal of an account terminates the right to benefits for all service prior to the date of withdrawal, unless credit is reinstated as provided by the retirement law. However, if a member has five years of service credit on or before August 31, 2014 but terminates membership by withdrawal and resumes membership on or after September 1, 2014 and reinstates the withdrawn service credit, the member is subject to the provisions of Government Code §824.202(a-2), (b-2), and (d-2) and §29.1(e) of this title (relating to Eligibility for Service Retirement).",
            "sourceNote": "Source Note: The provisions of this §27.5 adopted to be effective January 1, 1976; amended to be effective March 12, 2003, 28 TexReg 2102; amended to be effective July 17, 2014, 39 TexReg 5433."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227121&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227121",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "27",
                "label": "TERMINATION OF MEMBERSHIP AND REFUNDS"
            },
            "rule": {
                "number": "§27.6",
                "label": "Reinstatement of an Account"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=129404&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "129404",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as provided in subsection (c) of this section, any member who has withdrawn an account resulting in the cancellation of service credit may reinstate this account and receive credit for the canceled service by meeting the following requirements:(1) resume membership service in the retirement system or establish eligibility under Government Code, Chapter 803 or 805;(2) redeposit the amount withdrawn for the years during which the membership was terminated;(3) pay a reinstatement fee of 8 percent compounded annually in whole year increments from August 31st of the plan year in which the withdrawal occurred to the date of redeposit;(4) reinstate all withdrawn accounts which resulted in the cancellation of service credit. A withdrawn account representing less than a creditable year of service must be reinstated only when it is necessary to combine the canceled service in the account with all other canceled service or with other eligible membership service or equivalent membership service performed in the same year to constitute a creditable year of service.(b) Membership service credit and the accumulated contributions associated with the membership terminated by not qualifying for service credit for five consecutive years as provided in §822.003(a)(4), Government Code, may be restored by TRS when the person returns to TRS covered employment provided the accumulated contributions in the member account have not been withdrawn. If the accumulated contributions have been withdrawn, the member may reinstate the withdrawn account as provided in this section.(c) A person who terminated membership in TRS by electing participation in the Optional Retirement Program (ORP) may not reinstate the years of terminated service credit in TRS for the purpose of establishing eligibility for retirement benefits under the Proportionate Retirement Program except as provided in §25.172(a) of this title (relating to ORP and TRS).",
            "sourceNote": "Source Note: The provisions of this §27.6 adopted to be\r\neffective January 1, 1976; amended to be effective October 1, 1982,\r\n7 TexReg 3367; amended to be effective December 1, 1994, 19 TexReg\r\n9183; amended to be effective June 6, 1999, 24 TexReg 4247; amended\r\nto be effective March 12, 2003, 28 TexReg 2102; amended to be effective\r\nMarch 8, 2007, 32 TexReg 1086; amended to be effective September 1,\r\n2011, 36 TexReg 5374; amended to be effective December 23, 2014, 39\r\nTexReg 10025; amended to be effective January 1, 2016, 40 TexReg 9728;\r\namended to be effective December 30, 2025, 50 TexReg 8616."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=129404&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "129404",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "27",
                "label": "TERMINATION OF MEMBERSHIP AND REFUNDS"
            },
            "rule": {
                "number": "§27.8",
                "label": "Reinstatement of Membership and Service Credit by ORP Participants"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3889&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "3889",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A person who was participating in the Optional Retirement Program (ORP) on September 1, 1979, was eligible to elect to become a member of the Teacher Retirement System of Texas (TRS) between September 1, 1979, and September 1, 1980. Any such election was effective on the first day of the month following the month in which it was received by the employer.(b) ORP participants who elected to return to TRS membership between September 1, 1979, and September 1, 1980, under subsection (a) of this section, are eligible to reinstate all previously held TRS credit, except student employment credit, under the provisions of this section only. Reinstatement may occur at any time after resumption of membership in TRS. All eligible credit must be reinstated at one time. If the member's account was withdrawn, the member must pay the accumulated contributions plus a reinstatement fee of 10% per year of the amount due compounded annually from the date of withdrawal to the date of repayment. Reinstatement fees will be credited to the state contribution account. Credit will be reinstated upon application by the member on a form prescribed by TRS and the deposit of all required payments. No credit may be established for service in public education while an ORP participant.(c) Former ORP participants who return or have returned to TRS membership in the retirement system other than by an election under this section must make reinstatement under §27.6 of this title (relating to Reinstatement of an Account).",
            "sourceNote": "Source Note: The provisions of this §27.8 adopted to be effective September 26, 1979, 4 TexReg 3307; amended to be effective March 12, 2003, 28 TexReg 2102; amended to be effective March 8, 2007, 32 TexReg 1086."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3889&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "3889",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "27",
                "label": "TERMINATION OF MEMBERSHIP AND REFUNDS"
            },
            "rule": {
                "number": "§27.10",
                "label": "Forfeitures May Not Increase Benefits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=167962&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "167962",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Forfeitures resulting from a termination of a right to benefits as described in §27.5 of this title (relating to Termination of Right to Benefits) may not be used to increase benefits to remaining members. This section shall not preclude an increase in benefits by amendment to the benefit formula of the plan made possible by favorable investment results or for any other reason.",
            "sourceNote": "Source Note: The provisions of this §27.10 adopted to be effective June 1, 1995, 20 TexReg 3734."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=167962&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "167962",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREMENT"
            },
            "rule": {
                "number": "§29.1",
                "label": "Eligibility for Service Retirement"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=122508&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "122508",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The provisions of subsections (a-1) and (b-1) of §824.202, Texas Government Code, apply only to a person who becomes a member of the retirement system on or after September 1, 2007 and before September 1, 2014 and who has at least five years of service credit in TRS on or before August 31, 2014 and maintains that service credit in TRS until retirement.(b) A member who met at least one of the requirements of §51.12(a) of this title (relating to Applicability of Certain Laws in Effect Before September 1, 2005) on or before August 31, 2005, while a member of the Teacher Retirement System before termination of membership through withdrawal of member contributions or absence from service shall be considered as continuing to be eligible to be governed by provisions of state law as described under §51.12(a) of this title upon resumption of membership on or after September 1, 2007.(c) A person who was a member of the retirement system before September 1, 2007, but who terminates membership through withdrawal of accumulated contributions, then resumes membership on or after September 1, 2007 and before September 1, 2014 and who has at least five years of service credit in TRS on or before August 31, 2014 and maintains that service credit in TRS until retirement, is subject to the provisions of subsections (a-1), (b-1), and (d-1) of §824.202, Texas Government Code, regardless of whether the withdrawn service credit is reinstated.(d) The eligibility for service retirement of a member who terminates membership due to absence from service without withdrawal of contributions and reactivates the account under §823.501(f), Texas Government Code, on or after September 1, 2007, shall be determined based on the earliest date of service associated with the account.(e) A member who does not have at least five years of service credit in TRS on or before August 31, 2014 is eligible for retirement under the provisions of §824.202 (a-2), (b-2), and (d-2), Texas Government Code. A member who has at least five years of service credit in TRS on or before August 31, 2014 but terminates membership in TRS by withdrawal of accumulated contributions after August 31, 2014 and later resumes membership in TRS on or after September 1, 2014 is also subject to §824.202 (a-2), (b-2), and (d-2), Texas Government Code, regardless of whether the withdrawn service credit is reinstated.",
            "sourceNote": "Source Note: The provisions of this §29.1 adopted to be effective May 22, 2008, 33 TexReg 4006; amended to be effective April 1, 2011, 36 TexReg 1993; amended to be effective September 1, 2011, 36 TexReg 5374; amended to be effective July 17, 2014, 39 TexReg 5433."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=122508&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "122508",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREMENT"
            },
            "rule": {
                "number": "§29.4",
                "label": "Actual Compensation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100791&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100791",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Actual compensation paid to a member is used in computing the highest five-years' average compensation. The computation of average compensation for members with credit transferred from the Employees Retirement System of Texas (\"ERS\") may not include compensation for any month which was credited or should have been credited by the ERS if the member received compensation for service the same month covered by the Teacher Retirement System of Texas.(b) A member eligible under §51.12 of this title (relating to Applicability of Certain Laws in Effect Before September 1, 2005) is eligible for computation of average compensation using a three-year salary average instead of a five-year salary average, as provided by §824.203(a), Government Code, prior to its amendment effective September 1, 2005, by Senate Bill 1691, 79th Legislature, Regular Session (2005).",
            "sourceNote": "Source Note: The provisions of this §29.4 adopted to be effective January 1, 1976; amended to be effective September 26, 1979, 4 TexReg 3308; amended to be effective October 1, 1982, 7 TexReg 3368; amended to be effective December 29, 2005, 30 TexReg 8697."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100791&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100791",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREMENT"
            },
            "rule": {
                "number": "§29.5",
                "label": "Computation of Retirement Benefits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151228&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "151228",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Computation of retirement benefits will be based upon attained age on the effective date of retirement.",
            "sourceNote": "Source Note: The provisions of this §29.5 adopted to be effective January 1, 1976; amended to be effective March 12, 2003, 28 TexReg 2103."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151228&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "151228",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREMENT"
            },
            "rule": {
                "number": "§29.7",
                "label": "Completion of Retirement Application Process"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=92044&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "92044",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "An application for service or disability retirement is void if the member does not complete the application process as prescribed by the retirement system, including the submission of all required forms and information, within 12 months from the date that would be the effective date of retirement as specified in Government Code §824.002(a), if the retirement process were completed. An eligible member may submit a new application with a new effective date of retirement, but benefits are not payable for the months in which the previous application was pending but incomplete.",
            "sourceNote": "Source Note: The provisions of this §29.7 adopted to be effective April 1, 2011, 36 TexReg 1993."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=92044&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "92044",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREMENT"
            },
            "rule": {
                "number": "§29.8",
                "label": "Retirement Payment Plans"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227122&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227122",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The standard annuity benefit is payable throughout life for service retirees or for the duration of the disability for disability retirees with at least 10 years of service, with payments ceasing the month following the death of the retired member. If the retired member did not receive annuity payments equal to his accumulated contributions, there shall be paid to his beneficiary an amount equal to the retired member's accumulated contributions less the total amount of retirement benefits paid to the retired member.(b) An option which permits the retiree to reduce his own annuity with monthly benefits continuing to a beneficiary after his death may be selected in lieu of the standard annuity. The options are:(1) a reduced allowance payable throughout life with the provision that upon the death of the retired member, the reduced allowance shall be continued throughout the life of, and paid to, the person designated as beneficiary of the optional annuity. Upon the death of a retired member's beneficiary who was receiving an Option 1 annuity, if the total payment of benefits to the retired member and his beneficiary under this option was less than the accumulated contributions of the retired member, then the estate or heirs of the beneficiary shall be refunded an amount equal to the retired member's accumulated contributions less the total amount of Option 1 benefits which has been paid to both annuitants;(2) a reduced allowance payment throughout life with the provision that, upon the death of the retired member, one-half of the reduced allowance shall be continued throughout the life of, and paid to, the person designated as beneficiary of the optional annuity. Upon the death of a retired member's beneficiary who was receiving an Option 2 annuity, if the total payment of benefits to the retired member and his beneficiary under this option was less than the accumulated contributions of the retired member, then the estate or heirs of the beneficiary shall be refunded an amount equal to the retired member's accumulated contributions less the total amount of Option 2 benefits that had been paid to both annuitants;(3) a reduced allowance payable for guaranteed period of five years and as long thereafter as the retired member shall live;(4) a reduced allowance payable for guaranteed period of 10 years and as long thereafter as the retired member shall live;(5) a reduced allowance payable throughout life with the provision that upon the death of the retired member, three-fourths of the reduced allowance shall be continued throughout the life of, and paid to, the person designated as beneficiary of the optional annuity. Upon the death of the retired member's beneficiary who was receiving an Option 5 annuity, if the total payment of benefits to the retired member and his beneficiary under this option was less than the accumulated contributions of the retired member, then the estate or heirs of the beneficiary shall be refunded an amount equal to the retired member's accumulated contributions less the total amount of Option 5 benefits that had been paid to both annuitants.(c) For Option 1, Option 2, and Option 5, if the beneficiary predeceases the retiree, the retiree's annuity will be increased (pop-up) to the standard service annuity that the retiree would otherwise be entitled to receive if the retiree had not selected Option 1 or 2 or 5 but had selected the standard annuity. The standard annuity shall be adjusted by the early age reduction factor in effect at the time of retirement if the member retired under the early age service retirement provisions. The standard annuity shall also be adjusted for any post-retirement increases in retirement benefits authorized by law for the standard annuity after the date of retirement.(1) The increased annuity will begin with the first monthly payment that should have been made to the retiree following the month in which the beneficiary's death occurs.(2) The retiree shall promptly notify the TRS of the death of the beneficiary and submit a certified copy of the beneficiary's death certificate or other adequate proof of death to TRS. In the event that the retiree fails to notify TRS promptly of the death of the beneficiary, TRS shall continue to pay the reduced annuity to the retiree until properly notified of the beneficiary's death. Any payment for past months in which the retiree could have been receiving the standard annuity shall be made in a lump sum with the first monthly payment after the month in which notice is received. No interest shall be paid with any lump sum payment.",
            "sourceNote": "Source Note: The provisions of this §29.8 adopted to be effective January 1, 1976; amended to be effective September 29, 1989, 14 TexReg 4784; amended to be effective September 1, 1992, 17 TexReg 5120; amended to be effective June 6, 1999, 24 TexReg 4247; amended to be effective January 9, 2002, 27 TexReg 272."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227122&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227122",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREMENT"
            },
            "rule": {
                "number": "§29.9",
                "label": "Survivor Benefits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100793&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100793",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The person designated by a retiree to receive survivor benefits payable after the retiree's death is eligible to receive benefits as stated in Government Code §824.501. When multiple beneficiaries are named and two or more beneficiaries are eligible for monthly payments, the monthly payment will be split in equal portions. When only one beneficiary named is eligible for monthly payments, the entire monthly payment will be made to that beneficiary.",
            "sourceNote": "Source Note: The provisions of this §29.9 adopted to be\r\neffective January 1, 1976; amended to be effective September 11, 1977,\r\n2 TexReg 3282; amended to be effective April 2, 1979, 4 TexReg 954;\r\namended to be effective September 4, 1981, 6 TexReg 3098; amended\r\nto be effective January 14, 1986, 10 TexReg 4950; amended to be effective\r\nSeptember 29, 1989, 14 TexReg 4784; amended to be effective June 6,\r\n1999, 24 TexReg 4247; amended to be effective February 15, 2000, 25\r\nTexReg 1124; amended to be effective March 12, 2003, 28 TexReg 2103;\r\namended to be effective December 30, 2025, 50 TexReg 8617."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100793&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100793",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREMENT"
            },
            "rule": {
                "number": "§29.10",
                "label": "Retirement under Options 3 and 4"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214460&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214460",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Retirees who selected Options 3 and 4 who return to employment by a TRS covered employer and forfeit their annuities during the period of employment, which exceeds the period permitted by law do not thereby increase the length of the period for which payments are guaranteed.",
            "sourceNote": "Source Note: The provisions of this §29.10 adopted to be effective January 1, 1976; amended to be effective March 12, 2003, 28 TexReg 2103."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214460&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214460",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREMENT"
            },
            "rule": {
                "number": "§29.11",
                "label": "Actuarial Tables"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=122509&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "122509",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Actuarial tables furnished by the TRS actuary of record will be used for computation of benefits. Factors for ages or types of annuities not included in the tables will be computed from the same data by the same general formulas.(b) The Teacher Retirement System adopts the actuary's early age reduction factors. The factor tables are as follows: Attached Graphic(c) The Teacher Retirement System adopts the actuary's factors for service retirement options. The factor tables are as follows: Attached Graphic(d) The Teacher Retirement System adopts the actuary's factors for disabled member retirement options. The factor tables are as follows:Attached Graphic(e) The Teacher Retirement System adopts the actuary's reserve transfer factors. The reserve transfer factor tables are as follows:Attached Graphic(f) The board of trustees may change the tables or adopt new tables from time to time by amending this section; provided, however, that any such change does not result in any retiree or member eligible for service retirement with an unreduced annuity as of the date of the change receiving a smaller benefit than the benefit computed immediately before the change.",
            "sourceNote": "Source Note: The provisions of this §29.11 adopted to be effective January 1, 1976; amended to be effective December 30, 1976, 1 TexReg 3659; amended to be effective September 1, 1979, 4 TexReg 2198; amended to be effective January 2, 1981, 5 TexReg 4992; amended to be effective September 1, 1982, 7 TexReg 2487; amended to be effective September 1, 1984, 9 TexReg 3471; amended to be effective October 20, 1986, 11 TexReg 4216; amended to be effective September 1, 1989, 14 TexReg 4133; amended to be effective September 1, 1991, 16 TexReg 3943; amended to be effective September 1, 1992, 17 TexReg 2242; amended to be effective June 1, 1995, 20 TexReg 3734; amended to be effective October 13, 1995, 20TexReg 7994; amended to be effective September 17, 1997, 22 TexReg 9257; amended to be   effective March 12, 2003, 28 TexReg 2103; amended to be effective December 29, 2005, 30 TexReg 8698; amended to be effective April 1, 2011, 36 TexReg 1993; amended to be effective July 17, 2014, 39 TexReg 5433; amended to be effective September 1, 2019, 44 TexReg 4187; amended to be effective September 1, 2023, 48 TexReg 4520."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=122509&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "122509",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREMENT"
            },
            "rule": {
                "number": "§29.12",
                "label": "Early Age Retirement Benefit Calculated on Law in Effect Before September 1, 2005"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175648&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175648",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If a member eligible under §51.12 of this title (relating to Applicability of Certain Laws in Effect Before September 1, 2005) is at least 55 years old and has at least 20 years of service credit in the retirement system, the member is eligible to retire and receive a service retirement annuity reduced from the standard service retirement annuity available under §824.202(a)(2), Government Code, to a percentage derived from the following table, as provided by §824.202(c), Government Code, prior to its repeal effective September 1, 2005, by Senate Bill 1691, 79th Legislature, Regular Session (2005): Attached Graphic(b) Actuarial tables adopted under §29.11 of this title for early age retirement reduction factors using age in years and months derived from the table in subsection (a) of this section using age in whole years remain in effect for retirement after September 1, 2005 for members eligible under §51.12 of this title.",
            "sourceNote": "Source Note: The provisions of this §29.12 adopted to be effective December 29, 2005, 30 TexReg 8697."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175648&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175648",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREMENT"
            },
            "rule": {
                "number": "§29.13",
                "label": "Changing Beneficiary for Survivor Benefits and Changing Retirement Plans"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100784&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100784",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A retiree may change the designation of beneficiary for survivor benefits at any time.(b) A retiree who retired before June 26, 2015 and is receiving a standard service or disability retirement annuity under Government Code, §824.203 or §824.304(b), who was not permitted to name a same-sex spouse as the beneficiary of an optional annuity at retirement because of the Internal Revenue Code restriction on adjusted minimum age difference between the retiree and the beneficiary, or who married after retirement but before June 26, 2015 and was not permitted to name the retiree's same-sex spouse as the beneficiary of an optional annuity under Government Code, §824.1011, may no later than December 31, 2017 replace the standard annuity under §824.1011 and select an optional annuity under Government Code, §824.204(c)(1), (c)(2), or (c)(5), or under Government Code, §824.308(c)(1), (c)(2), or (c)(5), on a form prescribed by TRS and designate the retiree's spouse as the beneficiary as if the retiree had married after retirement. The selection of the optional annuity and the designation of the beneficiary of the optional annuity do not take effect until the first annuity payment that becomes due two years after the date the selection and designation are received by TRS.",
            "sourceNote": "Source Note: The provisions of this §29.13 adopted to be effective January 1, 1976; amended to be effective September 29, 1989, 14 TexReg 4784; amended to be effective September 17, 1997, 22 TexReg 9257; amended to be effective January 1, 2016, 40 TexReg 9728."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100784&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100784",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREMENT"
            },
            "rule": {
                "number": "§29.14",
                "label": "Eligibility for Retirement at the End of May"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170788&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170788",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "For retirement effective for May only, any member who completes all service for a TRS covered employer by the 15th of June, terminates all employment in public education in Texas by the 15th of June, and satisfies all other requirements for retirement before the 31st of May shall be eligible for retirement on the last day of May. In other circumstances, the retirement date shall be the last day of the month in which the member is last employed and satisfies all conditions for retirement. No member who has accumulated 12 months of service in the final year before retirement may use this rule to add compensation for any additional period of service to his annual compensation.",
            "sourceNote": "Source Note: The provisions of this §29.14 adopted to be effective January 1, 1976; amended to be effective September 26, 1979, 4 TexReg 3308; amended to be effective December 4, 1985, 10 TexReg 4538; amended to be effective January 24, 1992, 17 TexReg 253; amended to be effective March 12, 2003, 28 TexReg 2103."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170788&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170788",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREMENT"
            },
            "rule": {
                "number": "§29.15",
                "label": "Termination of Employment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100789&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100789",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Employment in any position, including as a substitute, by a TRS-covered employer, regardless of compensation, during the first month following a person's effective date of retirement, or during the first two months following a person's effective date of retirement if the retirement was established by using §824.002(d), Government Code, revokes the retirement and requires a return of any benefits received under retirement.(b) A member who is eligible for normal age retirement and who has a contract or agreement for future employment that does not qualify for one of the exceptions in §824.602, Government Code, has not ended all employment with a TRS covered employer and may not retire and receive any benefits. Contracts or work agreements for employment that do not qualify for one of the exceptions in that section must be negotiated after the break in service required in §824.005, Government Code.(c) A member who is eligible for early age retirement may not have a contract or promise of future employment with any TRS covered employer until after the required break in service referenced in subsection (a) of this section. A person who enters into such an agreement has not ended all employment with a TRS covered employer and may not retire and receive any benefits.",
            "sourceNote": "Source Note: The provisions of this §29.15 adopted to be effective March 12, 2003, 28 TexReg 2103; amended to be effective March 8, 2007, 32 TexReg 1087; amended to be effective April 1, 2011, 36 TexReg 1993; amended to be effective December 23, 2014, 39 TexReg 10026."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100789&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100789",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREMENT"
            },
            "rule": {
                "number": "§29.16",
                "label": "Unpaid Benefits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214461&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214461",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If the Teacher Retirement System of Texas (TRS) determines that amounts payable to an annuitant were not received by the annuitant before the annuitant's death, TRS may pay the amounts to the annuitant's designated beneficiary for benefits payable under the Government Code, §824.501. Before paying the designated beneficiary, TRS shall make the following determinations:(1) the amount payable is no greater than $20,000;(2) the designated beneficiary has survived the annuitant; and(3) TRS has received no notice of a probate or similar proceeding in which payment could be made to the annuitant's estate.(b) TRS may require proof from the designated beneficiary necessary to make the determinations.(c) TRS may determine that payment should not be made to the designated beneficiary if doing so would violate the Internal Revenue Code of 1986, §401(a) (26 United States Code §401).",
            "sourceNote": "Source Note: The provisions of this §29.16 adopted to be effective January 24, 1992, 17 TexReg 253; amended to be effective March 12, 2003, 28 TexReg 2103."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214461&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214461",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREMENT"
            },
            "rule": {
                "number": "§29.21",
                "label": "Beneficiary Tables"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=64469&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "64469",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Tables for Unisex Joint Beneficiary Life furnished by the TRS actuary of record (actuary) will be used in calculating a life expectancy under §824.1013 of the Government Code. A fraction of a year shall be converted to whole months with any partial month being rounded upward to a full month. Life expectancy shall be determined as of the date of the retirement in question and the age of the original beneficiary at that time. The Teacher Retirement System of Texas adopts the actuary's Tables for Unisex Joint Beneficiary Life.Attached Graphic",
            "sourceNote": "Source Note: The provisions of this §29.21 adopted to be effective April 14, 1998, 23 TexReg 3697; amended to be effective March 12, 2003, 28 TexReg 2103; amended to be effective April 1, 2011, 36 TexReg 1993; amended to be effective September 1, 2019, 44 TexReg 4187; amended to be effective September 1, 2023, 48 TexReg 4520."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=64469&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "64469",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREMENT"
            },
            "rule": {
                "number": "§29.22",
                "label": "Approval of Disability Retirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19959&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "19959",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The executive director is authorized to approve disability retirements after they have been approved by a majority of the medical board.",
            "sourceNote": "Source Note: The provisions of this §29.22 adopted to be effective January 1, 1976; amended to be effective June 6, 1999, 24 TexReg 4247."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=19959&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "19959",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREMENT"
            },
            "rule": {
                "number": "§29.23",
                "label": "Disability Retirement with Less Than 10 Years of Creditable Service"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151232&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "151232",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A member with less than 10 years of creditable service who is approved for disability benefits shall be entitled to receive disability payments for a full school year for each year of creditable service plus the exact number of months of employment in any school year in which he did not render a creditable year of service. Full payment will be made for service of one-half month or more and no payment for service of less than a half month.",
            "sourceNote": "Source Note: The provisions of this §29.23 adopted to be effective January 1, 1976; amended to be effective September 1, 1992, 17 TexReg 5120."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151232&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "151232",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREMENT"
            },
            "rule": {
                "number": "§29.24",
                "label": "Purchase of Credit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151233&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "151233",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Members who are notified of their approval for disability benefits shall have 30 days from the date of the letter notifying them of their approval in which to purchase credit for withdrawn or any other applicable special service credit.",
            "sourceNote": "Source Note: The provisions of this §29.24 adopted to be effective January 1, 1976; amended to be effective September 1, 1992, 17 TexReg 5120; amended to be effective March 12, 2003, 28 TexReg 2103; amended to be effective April 1, 2011, 36 TexReg 1993."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151233&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "151233",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREMENT"
            },
            "rule": {
                "number": "§29.26",
                "label": "Discontinuance of Disability Benefits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175649&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175649",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A disability retiree who is restored to active service shall immediately have benefits discontinued and the retiree shall again become a member of the retirement system. TRS shall notify the member in writing when benefits are discontinued.(b) A disability retiree is restored to active service in one of the following ways:(1) by certification of the medical board as provided in Government Code §824.307(a);(2) by notifying TRS in writing of the retiree's intention to return to active service and actually returning to a position eligible for TRS membership;(3) by working longer than allowed under the one-time trial period allowed in Government Code §824.602(g); or(4) by refusing to submit to a required medical examination or provide documents relating to a required examination for more than one year.(c) A person who retired under Government Code §824.304(a) and returns to active service after receiving the maximum amount of benefits provided in subsection (a)(2) of that section begins a new membership in TRS. Service credit used to establish eligibility to retire and receive disability benefits is terminated and may not be re-established. Accumulated contributions in the disability retiree's member account at the time of retirement and attributable to service performed prior to disability retirement are forfeited.(d) A person who retired under Government Code §824.304(a) and returns to active service before receiving the maximum amount of benefits provided in subsection (a)(2) of that section shall return to active membership in TRS and service credit used to establish eligibility to retire and receive disability benefits is restored. The accumulated contributions in the member account at the time of the disability retirement are reduced by the amount of benefits paid to the disability retiree and the member may again make member contributions on all eligible compensation received after membership is restored.(e) A person who retired under Government Code §824.304(b) and returns to active service shall return to active membership in TRS and service credit used to establish eligibility to retire and receive disability benefits is restored. The accumulated contributions in the member account at the time of the disability retirement are reduced by the amount of benefits paid to the disability retiree and the member shall again make member contributions on all eligible compensation received after membership is restored.",
            "sourceNote": "Source Note: The provisions of this §29.26 adopted to be effective April 25, 1986, 11 TexReg 1746; amended to be effective September 1, 1992, 17 TexReg 5120; amended to be effective March 8, 2007, 32 TexReg 1087; amended to be effective April 1, 2011, 36 TexReg 1993."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175649&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175649",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "B",
                "label": "DEATH BEFORE RETIREMENT"
            },
            "rule": {
                "number": "§29.33",
                "label": "Absence from Service"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151234&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "151234",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If a member is absent from service at the time of death and the absence does not meet the description in §824.403 of the Government Code, the beneficiary is eligible to receive only the accumulated deposits of the member. For this purpose, absence from service begins September 1 following the last eligible reported membership service.(b) Eligibility for receipt of death benefits authorized by Government Code §824.402 shall be determined by TRS staff.(c) For purposes of this section, absent from service means that the member was not an employee of a TRS-covered employer during the school year in which the member died.",
            "sourceNote": "Source Note: The provisions of this §29.33 adopted to be effective January 1, 1976; amended to be effective June 6, 1999, 24 TexReg 4248; amended to be effective March 12, 2003, 28 TexReg 2104; amended to be effective January 1, 2016, 40 TexReg 9729."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151234&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "151234",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "B",
                "label": "DEATH BEFORE RETIREMENT"
            },
            "rule": {
                "number": "§29.34",
                "label": "Events Affecting Payment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137697&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137697",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A person who lives any part of a day shall be considered to live throughout the entire day. Subject to this limitation, the effective date for death and survivor benefit annuities is the last day of the month preceding the month in which the death of the member occurs, with the first payment due at the end of the month in which the death occurs.(b) Final payment of any annuity will be made at the end of the month in which there occurs the event which terminates the annuity.(c) An eligible member who has applied for service or disability retirement and dies on or after the retirement date will be considered to be \"retired\" for the computation of death or survivor benefits.(d) Payments of death benefits to multiple beneficiaries named to \"share and share alike\" will be made according to the recommendations of the consulting actuary retained by the retirement system. Survivor benefits are an alternative to death benefits.(1) If one or more joint beneficiaries are eligible and elect to receive monthly survivor benefits but one or more joint beneficiaries elect to receive death benefits, the payments to all beneficiaries, including the monthly portion of survivor benefits, will be proportionately reduced to the beneficiary's proportionate interest in the benefits payable.(2) If all joint beneficiaries elect payment of survivor benefits, the lump-sum portion of the benefits shall be divided equally among the beneficiaries, but the monthly payment may be paid only to beneficiaries eligible to receive such payment. If there are two or more beneficiaries eligible for monthly survivor payments, the entire monthly payment authorized by law will be split in equal portions among the eligible beneficiaries. When only one named beneficiary is eligible for monthly payments, the entire monthly payment authorized by law will be made to that beneficiary.(e) A beneficiary may change a selection of payment before the issuance of any warrant or electronic payment to the beneficiary in full or partial payment of death or survivor benefits pursuant to the selection.",
            "sourceNote": "Source Note: The provisions of this §29.34 adopted to be effective January 1, 1976; amended to be effective June 1, 1995, 20 TexReg 3734; amended to be effective June 6, 1999, 24 TexReg 4248; amended to be effective March 12, 2003, 28 TexReg 2104; amended to be effective May 3, 2007, 32 TexReg 2368; amended to be effective April 1, 2011, 36 TexReg 1994."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137697&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137697",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "D",
                "label": "PLAN LIMITATIONS"
            },
            "rule": {
                "number": "§29.50",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137698&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137698",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in the sections under this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Annual additions--The sum of the following amounts credited to a member's account under any defined contribution plan (or a portion of a defined benefit plan treated as a defined contribution plan) maintained by the employer for the plan year:(A) employer contributions;(B) member contributions, including member contributions to a qualified defined benefit plan that have not been picked up under §414(h) of the Internal Revenue Code of 1986 but not including rollover contributions;(C) forfeitures; and(D) amounts allocated after March 31, 1984, to an individual medical benefit account, as defined in §415(1)(2) of the Internal Revenue Code, that is part of a pension or annuity plan maintained by the employer. Annual additions do not include amounts described in §415(1)(2) of that code for the purpose of computing the percentage limitation described in §415(c)(1)(B) of that code. For any plan year beginning before January 1, 1987, only that portion of the member contributions equal to the lesser of those member contributions in excess of 6.0% of annual compensation or one-half of the member's contributions to any qualified plan maintained by the employer is treated as annual additions.(2) Annual benefit--A service retirement, disability retirement, or pre-retirement member death benefit calculated on the basis of service and average compensation under Tex. Gov't Code §824.203 or §824.204, whether paid to a retiree or to a beneficiary, and payable annually in the form of a straight life annuity (ignoring that portion of any joint and survivor annuity which constitutes a qualified joint and survivor annuity, as defined in §417 of the Internal Revenue Code) with no ancillary or incidental benefits or rollover contributions and exclusive of any portion of the benefit derived from post-tax member contributions or other contributions that are treated as a separate defined contribution plan under §417 of the Internal Revenue Code (but inclusive of any such contributions that are picked up by the employer pursuant to §414(h)(2) of the Internal Revenue Code, or that otherwise are not treated as a separate defined contribution plan). A lump sum incidental death benefit is not part of the annual benefit. If the benefit is payable in any other form, the determination as to whether the limitation described in §29.51 of this title (relating to Plan Limitations on Annual Benefits and Member Contributions) or §29.52 of this title (relating to Adjustment to Annual Benefit Limit) has been satisfied shall be made by adjusting such benefit so that it is actuarially equivalent to the annual benefit described in this section in accordance with the regulations issued by the U.S. secretary of the treasury.(3) Annual compensation--For purposes of only applying plan limitations and not for computing benefits under Tex. Gov't Code §822.201 or 34 Tex. Admin. Code ch. 25, subch's B (relating to Compensation) and C (relating to Unreported Service or Compensation), all wages within the meaning of §3401(a) of the Internal Revenue Code relating to income tax withholding at source, but determined without regard to any rules that limit the remuneration included in wages based on the nature or location of the services performed and without regard to whether such wages are treated as compensation under any other provision of this chapter. For purposes of applying plan limitations, the definition of compensation where applicable will be compensation defined in Treasury Regulation §1.415(c)-2(d)(3), or successor regulations; provided, however, that the definition of compensation will exclude member contributions picked up under §414(h)(2) of the Internal Revenue Code, and for plan years beginning after December 31, 1997, compensation will include the amount of any elective deferrals, as defined in §402(g)(3) of the Internal Revenue Code and any amounts contributed or deferred by the employer at the election of the member and which is not includible in the gross income of the member by reason of §125 or §457 of the Internal Revenue Code, and for plan years beginning on and after January 1, 2001, §132(f)(4) of that code. Back pay, within the meaning of Treasury Regulation §1.415(c)-2(g)(8) shall be treated as compensation for the limitation year to which the back pay relates to the extent the back pay represents wages and compensation that would otherwise be included under this definition. For a limitation year beginning after January 1, 2007, compensation for the limitation year will also include compensation paid by the later of 2 1/2 months after an employee's severance from employment or the end of the limitation year that includes the date of the employee's severance from employment if(A) the payment is regular compensation for services during the employee's regular working hours, or compensation for services outside the employee's regular working hours (such as overtime or shift differential), commissions, bonuses, or other similar payments, and absent a severance from employment the payments would have been paid to the employee while the employee continued in employment with the employer; or(B) the payment is for unused accrued bona fide sick leave, vacation, or other leave that the employee would have been able to use if employment had continued.(4) Code--The Internal Revenue Code of 1986, as amended.(5) Defined contribution plan--A plan described in §414(i) of the Internal Revenue Code and, solely for purposes of this subchapter, employee contributions to any other qualified plan maintained by the employer, other than any picked-up contributions.(6) Employer--The agents, agencies or political subdivisions of the State responsible for education, including the governing board of any school district created under the laws of the State, any county school board, the board of trustees, the State Board of Education, the Texas Education Agency, the board of regents of any college or university, or any other legally constituted board or agency of any public school.(7) Limitation year--The limitation year for purposes of §415 of the Internal Revenue Code beginning on September 1 of each year and ending on the following August 31.(8) Member contributions--Those contributions within the meaning of §411(c)(2)(C) of the Internal Revenue Code, but not any contributions picked up by the employer within the meaning of §414(h)(2) of that code.(9) Plan year--The plan's accounting year beginning on September 1 of each year and ending on the following August 31.",
            "sourceNote": "Source Note: The provisions of this §29.50 adopted to be effective April 20, 1988, 13 TexReg 1672; amended to be effective June 1, 1995, 20 TexReg 3734; amended to be effective March 12, 2003, 28 TexReg 2105; amended to be effective March 8, 2007, 32 TexReg 1087; amended to be effective August 25, 2008, 33 TexReg 6970."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137698&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137698",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "D",
                "label": "PLAN LIMITATIONS"
            },
            "rule": {
                "number": "§29.51",
                "label": "Plan Limitations on Annual Benefits and Member Contributions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137699&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "137699",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Effective as of July 1, 1989, and notwithstanding any other plan provision in statute or rule, member contributions paid to, and annual benefits paid from, TRS may not exceed the annual limits on contributions and benefits, respectively, allowed by §415 of the Internal Revenue Code.(b) Benefits provided to a member under this plan and under any other defined benefit plan or plans maintained by the member's employer under this plan shall be aggregated for purposes of determining whether the limitations in subsection (a) of this section are met. Annual additions with respect to a member under this plan and under any other defined contribution plan maintained by the member's employer under this plan shall be aggregated for purposes of determining whether the limitations of subsection (a) of this section are met. If the aggregate benefits otherwise payable to any member from this plan and any other defined benefit plan or plans maintained by the employer would otherwise exceed the limitations of subsection (a) of this section, reductions in benefits and contributions are required to be made to the other plan to the extent necessary to enable each plan or plans to satisfy those limitations.(c) A repayment of contributions, including interest, and payment of applicable reinstatement fees to the retirement system with respect to an amount previously refunded upon a cancellation of service credit under the retirement system shall not be taken into account for purposes of §415 of the Internal Revenue Code, in accordance with applicable Treasury regulations.",
            "sourceNote": "Source Note: The provisions of this §29.51 adopted to be effective April 20, 1988, 13 TexReg 1672; amended to be effective September 1, 1992, 17 TexReg 5121; amended to be effective June 1, 1995, 20 TexReg 3734; amended to be effective March 12, 2003, 28 TexReg 2105; amended to be effective March 8, 2007, 32 TexReg 1087; amended to be effective August 25, 2008, 33 TexReg 6970."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=137699&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "137699",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "D",
                "label": "PLAN LIMITATIONS"
            },
            "rule": {
                "number": "§29.52",
                "label": "Adjustment to Annual Benefit Limit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170789&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170789",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Before July 1, 1995, a member may not receive an annual benefit that exceeds the dollar amount and salary limits specified in §415(b) of the Internal Revenue Code, subject to the applicable adjustments in that section. On or after July 1, 1995, a member may not receive an annual benefit that exceeds the dollar amount specified in §415(b)(1)(A) of that code, subject to the applicable adjustments in §415(b) of that code.(1) If the annual benefit begins before the member attains age 62, the Internal Revenue Code §415(b)(1)(A) limitation, as adjusted, shall be reduced in a manner prescribed by the U.S. secretary of the treasury pursuant to the provisions of §415 of the Internal Revenue Code, so that such limit (as so reduced) equals an annual straight life benefit (when such retirement income benefit begins) which is equivalent to a $160,000 (as adjusted) annual benefit beginning at age 62.(2) The portion of a member's benefit that is attributable to the member's own contributions (other than picked-up contributions) is not part of the annual benefit subject to the limitations of this section. Instead, the amount of those member contributions is treated as an annual addition to a qualified defined contribution plan maintained by the employer.(b) The dollar limitation on annual benefits provided by this section shall be adjusted annually as provided by §415(d) of the Internal Revenue Code and the regulations prescribed by the U.S. secretary of the treasury to reflect cost of living adjustments. The adjusted limitation is effective for TRS benefits for the TRS plan year that begins on or after the earliest allowable effective date of the changes under federal regulations.(c) The limitation provided by this section for a member who has separated from service with a vested right to a pension shall be adjusted annually as provided by §415(d) of the Internal Revenue Code and the regulations prescribed by the U.S. secretary of the treasury. On and after July 1, 1995, in no event shall a member's annual benefit payable from TRS in any limitation year be greater than the limit applicable at the annuity starting date, as increased in subsequent years pursuant to §415(d) of that code and the regulations thereunder.(d) If the form of benefit is not a straight life (standard annuity) or qualified joint and survivor annuity (Option 1, 2, or 5 with a spousal beneficiary), then the applicable limit described in subsection (c) of this section shall be determined by either reducing the §415(b) of the Internal Revenue Code limit applicable at the annuity starting date or adjusting the form of benefit to an actuarially equivalent straight life annuity benefit determined using the following assumptions that take into account the death benefits under the form of benefit:(1) For a benefit paid in a form to which §417(e)(3) of the Internal Revenue Code does not apply (Option 1, 2, or 5 with a non-spouse beneficiary, or Option 3 or 4), the actuarially equivalent straight life annuity benefit which is the greater of (or the reduced §415(b) of that code limit applicable at the annuity starting date which is the lesser of when adjusted in accordance with the following assumptions):(A) The annual amount of the straight life annuity (if any) payable to the participant under the plan commencing at the same annuity starting date as the form of benefit payable to the participant; or(B) The annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the form of benefit payable to the participant, computed using a 5 percent interest assumption (or the applicable statutory interest assumption) and the applicable mortality table described in §1.417(e)-1(d)(2) of the Income Tax Regulations (the mortality table specified in Revenue Ruling 98-1 (prior to 2003) or Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Ruling 2001-62); or(2) For a benefit paid in a form to which §417(e)(3) of the Internal Revenue Code applies (the deferred retirement option plan (DROP) or partial lump sum option (PLSO) portion of the benefit), the actuarially equivalent straight life annuity benefit which is the greatest of (or the reduced §415(b) of that code limit applicable at the annuity starting date which is the least of when adjusted in accordance with the following assumptions):(A) The annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable, computed using the interest rate and mortality table, or tabular factor, specified in the plan for actuarial experience;(B) The annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable, computed using a 5.5 percent interest assumption (or the applicable statutory interest assumption) and the applicable mortality table for the distribution under §1.417(e)-1(d)(2) of the Income Tax Regulations (the mortality table specified in Revenue Ruling 98-1 (prior to 2003) or Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Ruling 2001-62); or(C) The annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable (computed using the applicable interest rate for the distribution under §1.417(e)-1(d)(3) of the Income Tax Regulations (the 30-year Treasury rate (prior to July 1, 2007, using the rate in effect for the month prior to retirement, and on and after July 1, 2007, using the rate in effect for the first day of the plan year with a one-year stabilization period)) and the applicable mortality table for the distribution under §1.417(e)-1(d)(2) of the regulations (the mortality table specified in Revenue Ruling 98-1 (prior to 2003) or Revenue Ruling 2001-62 or any subsequent Revenue Ruling modifying the applicable provisions of Revenue Ruling 2001-62), divided by 1.05.(e) The following interest rate assumptions shall be used in computing the limitations under this section. For the purpose of determining the portion of the annual benefit that is attributable to member contributions, the factors described in §411(c)(2)(B) and (C) of the Internal Revenue Code and the regulations thereunder shall be used even though §411 of that code does not otherwise apply to the retirement system.(f) An adjustment under §415(d) of that code may not be taken into account before the year for which that adjustment first takes effect.(g) No adjustment is required for the value of qualified joint and survivor annuity benefits, disability retirement benefits, pre-retirement death benefits, post retirement medical benefits, or any other benefit not required under §415(b)(2) of the Internal Revenue Code and regulations thereunder to be taken into account for purposes of the limitation of §415(b)(1) of that Code.(h) This plan may still pay an annual benefit to any member in excess of the member's maximum annual benefit otherwise allowed if:(1) the member's annual benefit derived from the employer's contributions under all defined benefit plans of the employer subject to the limitations of §25.51 and §415 of the Internal Revenue Code does not in the aggregate exceed $10,000 for the limitation year or for any prior limitation year; and(2) the member has not at any time participated in a defined contribution plan maintained by the employer. For purposes of this subsection, member contributions to the plan are not considered a separate defined contribution plan maintained by the employer.(i) If a member has fewer than ten years of actual membership service credit in the plan at the time the member begins to receive benefits under the plan, the Internal Revenue Code §415(b)(1)(A) limitation, as adjusted, shall be reduced by multiplying the limitation by a fraction in which the numerator is the number of years of service credit and the denominator is 10; provided, however, that the fraction may not be less than one-tenth. If the member has fewer than ten years of employment with the employer, the $10,000 limitation of subsection (h) of this section shall be reduced in the same manner as provided in the preceding sentence, except the numerator shall be the number of actual years of employment with the employer rather than number of years of service credit.(j) For a disability retirement benefit or a pre-retirement death benefit, the adjustment in subsection (a)(1) of this section is not required for payment made with respect to a member before the member reaches or would have reached age 62, and the adjustment in subsection (i) of this section is not required for payment made with respect to a member with fewer than ten years of service credit under TRS.",
            "sourceNote": "Source Note: The provisions of this §29.52 adopted to be effective June 1, 1995, 20 TexReg 3734; amended to be effective March 12, 2003, 28 TexReg 2105; amended to be effective March 8, 2007, 32 TexReg 1087; amended to be effective August 25, 2008, 33 TexReg 6970."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170789&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170789",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "D",
                "label": "PLAN LIMITATIONS"
            },
            "rule": {
                "number": "§29.55",
                "label": "Limitation on Contributions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227123&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227123",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Notwithstanding any other provision of law to the contrary, and in accordance with §823.006, Government Code, this rule describes application of the federal limits on service purchases. TRS may refuse a request by a member to make a contribution to the retirement system for the purchase of service credit if the amount of the contribution would exceed the limits provided in §415 of the Internal Revenue Code.(b) A member may use an installment payment plan to the extent permitted under applicable law to avoid making a contribution in excess of the limits under §415(c) or §415(n) of the Internal Revenue Code.(c) Effective for permissive service credit contributions made in limitation years beginning after December 31, 1997, if a member makes one or more contributions to purchase permissive service credit under TRS, then the requirements of §415 of the Internal Revenue Code will be treated as met only if:(1) the requirements of §415(b) of the Internal Revenue Code are met, determined by treating the accrued benefit derived from all such contributions as an annual benefit for purposes of §415(b) of that code; or(2) the requirements of §415(c) of the Internal Revenue Code are met, determined by treating all such contributions as annual additions for purposes of §415(c) of that code.(d) For purposes of applying subsection (c)(1) of this section, the retirement system will not fail to meet the reduced limit under §415(b)(2)(C) of the Internal Revenue Code solely by reason of this section, and for purposes of applying subsection (c)(2) of this section, the system will not fail to meet the percentage limitation under §415(c)(1)(B) of that code solely by reason of this section.(e) For purposes of subsection (c) of this section the term \"permissive service credit\" means service credit:(1) specifically authorized by state law and recognized by the retirement system for purposes of calculating a member's benefit under the system;(2) which such member has not received under the system, prior to the purchase of such service credit; and(3) which such member may receive only by making a voluntary additional contribution, in an amount determined under the System, which does not exceed the amount necessary to fund the benefit attributable to such service credit.(f) Effective for permissive service credit contributions made in years beginning after December 31, 1997, such term may include service credit for periods for which there is no performance of service, and, notwithstanding subsection (e)(2) of this section, may include service credited in order to provide an increased benefit for service credit which a member is receiving under the System. Permissive service credit shall include:(1) military service credit under §823.302, Government Code;(2) developmental leave service credit under §823.402, Government Code;(3) membership waiting period service credit under §823.406, Government Code;(4) substitute service credit under §25.4 of this title (relating to Substitutes);(5) out-of-state service credit under §823.401, Government Code;(6) unused leave service credit under §823.403, Government Code;(7) service credit for work experience by a career or technology teacher; and(8) \"additional service credit\" under the service credit purchase option authorized by §823.405, Government Code.(g) For the retirement system to meet the requirements of subsection (c) of this section:(1) more than five years of nonqualified service credit shall not be taken into account for purposes of subsection (c) of this section; and(2) no nonqualified service credit shall be taken into account under subsection (c) of this section before the member has at least five years of participation under the system.(h) For purposes of subsection (g) of this section, effective for permissive service credit contributions made in years beginning after December 31, 1997, the term \"nonqualified service credit\" means permissive service credit other than that allowed with respect to:(1) service (including parental, medical, sabbatical, and similar leave) as an employee of the government of the United States, any state or political subdivision thereof, or any agency or instrumentality of any of the foregoing (other than military service or service for credit which was obtained as a result of a repayment described in §415(k)(3) of the Internal Revenue Code);(2) service (including parental, medical, sabbatical, and similar leave) as an employee (other than as an employee described in paragraph (1) of this subsection of an education organization described in §170(b)(1)(A)(ii) of the Internal Revenue Code which is a public, private, or sectarian school which provides elementary or secondary education (through grade 12), or a comparable level of education, as determined under the applicable law of the jurisdiction in which the service was performed;(3) service as an employee of an association of employees who are described in paragraph (1) of this subsection; or(4) military service (other than qualified military service under §414(u) of the Internal Revenue Code) recognized by TRS.(i) In the case of service described in subsection (h)(1) - (3) of this section, such service will be nonqualified service if recognition of such service would cause a member to receive a retirement benefit for the same service under more than one plan. The Internal Revenue Code standards for qualified permissive service credit as reflected in subsection (h)(1) - (4) of this section do not expand the authorized types of service credit available to be purchased under the TRS plan.(j) In the case of a trustee-to-trustee transfer after December 31, 2001, to which §403(b)(13)(A) or §457(e)(17)(A) of the Internal Revenue Code applies (without regard to whether the transfer is made between plans maintained by the same employer):(1) the limitations of subsection (g) of this section will not apply in determining whether the transfer is for the purchase of permissive service credit; and(2) the distribution rules applicable under federal law to TRS will apply to such amounts and any benefits attributable to such amounts.(k) For an eligible member, the limitation of §415(c)(1) of the Internal Revenue Code shall not be applied to reduce the amount of permissive service credit which may be purchased to an amount less than the amount which was allowed to be purchased under the terms of the statutes and rules applicable to TRS as in effect on August 5, 1997. For purposes of this subsection, an eligible member is an individual who first became a member of TRS before September 1, 2000.",
            "sourceNote": "Source Note: The provisions of this §29.55 adopted to be effective March 12, 2003, 28 TexReg 2105; amended to be effective March 8, 2007, 32 TexReg 1087; amended to be effective August 25, 2008, 33 TexReg 6970; amended to be effective December 23, 2014, 39 TexReg 10026."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227123&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227123",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "D",
                "label": "PLAN LIMITATIONS"
            },
            "rule": {
                "number": "§29.56",
                "label": "Minimum Distribution Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=129413&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "129413",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) General Rules and Definitions.(1) Intent. This rule is intended to comply with a reasonable and good faith interpretation of the requirements of 26 U.S.C. §401(a)(9), as applicable to a governmental plan within the meaning of 26 U.S.C. §414(d).(2) Plan Qualification and §401(a)(9) compliance. Pursuant to Tex. Gov't Code §825.506(a) and (c), this section modifies the TRS retirement plan to the extent necessary for the plan to be a qualified plan and comply with 26 U.S.C. §401(a)(9) and prevails over any inconsistent provision of the plan.(3) Requirements of Treasury Regulations Incorporated. All distributions required under this section will be determined in accordance with 26 C.F.R. §§1.401(a)(9)-1 through 1.401(a)(9)-9 of the Internal Revenue Service, U.S. Department of Treasury regulations. (4) Definition of Participant. In this section, a TRS member or TRS retiree.(5) Definition of Designated Beneficiary. In accordance with 26 U.S.C. § 401(a)(9)(E) and §1.401(a)(9)-4(a)&(b) of the Treasury regulations, the individual who is designated as the beneficiary under applicable plan provisions or by the participant's affirmative election.(6) Definition of Distribution Calendar Year. A calendar year for which a minimum distribution is required. For distributions beginning before a participant's death, the first distribution calendar year is the calendar year immediately preceding the calendar year that contains the participant's required beginning date. For distributions beginning after a participant's death, the first distribution calendar year is the calendar year in which distributions are required to begin pursuant to subsection (b)(3) of this section.(7) Definition of Life Expectancy. For purposes of this rule, life expectancy means life expectancy as computed by use of the Single Life Table in §1.401(a)(9)-9(b) of the Treasury regulations.(8) Definition of Required Beginning Date. The date specified in subsection (b)(1) of this section.(b) Time and Manner of Distribution.(1) Required Beginning Date.(A) Required beginning date means April 1 of the calendar year following the later of:(i) the calendar year in which the participant attains the applicable age within the meaning of 26 U.S.C. § 401(a)(9)(C)(v), or(ii) the calendar year in which the participant terminates employment with a TRS-covered employer.(B) A participant is required to take distribution of the participant's entire interest, or to begin to take a distribution of the entire interest, no later than the participant's required beginning date.(2) Applicable Age. (A) In the case of a participant born before July 1, 1949, the applicable age is 70 1/2;(B) In the case of a participant born on or after July 1, 1949, and before January 1, 1951, the applicable age is 72;(C) In the case of a participant born on or after January 1, 1951, and before January 1, 1960, the applicable age is 73;(D) In the case of a participant born on or after January 1, 1960, the applicable age is 75; or(E) The age set forth in 26 U.S.C. §401(a)(9)(C)(v), as amended from time-to-time.(3) Death of Participant Before Distributions Begin. If a participant dies before distributions begin, the participant's entire interest is required to be distributed, or begin to be distributed, no later than described in subparagraphs (A)-(D) of this paragraph. For purposes of this paragraph and subsection (e) of this section, distributions are considered to begin on the participant's required beginning date (or, if subparagraph (D) of this paragraph applies, the date distributions are required to begin to the surviving spouse under subparagraph (A) of this paragraph). If annuity payments irrevocably commence to the participant before the participant's required beginning date (or to the participant's surviving spouse before the date distributions are required to begin to the surviving spouse under subparagraph (A) of this paragraph), the date distributions are considered to begin is the date distributions actually commence.(A) If the sole designated beneficiary is the participant's surviving spouse, then distributions after the participant's death to the surviving spouse are required to begin by December 31 of the calendar year immediately following the later of: (i) the calendar year in which the participant died; or (ii) the calendar year in which the deceased participant would have attained the applicable age.(B) If the designated beneficiary is not the participant's surviving spouse, then distributions after the participant's death to the designated beneficiary must either: (i) begin to be distributed no later than December 31 of the calendar year immediately following the year of the participant's death, payable over a period not to exceed the beneficiary's life expectancy; or (ii) be distributed no later than December 31 of the calendar year containing the fifth anniversary of the participant's death.(C) If there is no designated beneficiary as of September 30 of the year following the year of the participant's death, the participant's entire interest is required to be distributed by December 31 of the calendar year containing the fifth anniversary of the participant's death.(D) If the participant's surviving spouse is the participant's sole designated beneficiary and the surviving spouse dies after the participant but before distributions to the surviving spouse begin, this paragraph, other than subparagraph (A) of this paragraph, will apply as if the surviving spouse were the participant, as described in §1.401(a)(9)-3(b)(3), (d) of the Treasury regulations. (4) Form of Distribution. As of the first distribution calendar year, distributions are required be made in accordance with subsections (c), (d), (e), (f), and (g) of this section.(c) Determination of Amount to be Distributed Each Year.(1) General Annuity Requirements. If the participant's interest is paid in the form of annuity distributions to the participant after retirement or to the participant's beneficiary before or after retirement of the participant, payments under the annuity will satisfy the following requirements:(A) the annuity distributions will be paid in periodic payments made at monthly intervals;(B) the distribution period will be over a life (or lives) or over a period certain not longer than the period described in the Treasury regulations;(C) once payments have begun over a period certain, the period certain will not be changed even if the period certain is shorter than the maximum permitted; and(D) payments will either be non-increasing or will increase only as permitted in the Treasury regulations.(2) Amount Required to be Distributed by Required Beginning Date.(A) The amount that is required to be distributed on or before the participant's required beginning date (or, if the participant dies before distributions begin, the date distributions are required to begin to a beneficiary under subparagraph (A) or (B) of subsection (b)(3) of this section) is the payment that is required for one month. The second payment need not be made until the end of the next payment interval even if that payment interval ends in the next calendar year. All of the participant's benefit accruals as of the last day of the first distribution calendar year will be included in the calculation of the amount of the annuity payments for months ending on or after the participant's required beginning date. For a retiree receiving a distribution of a partial lump sum option (PLSO) payment or a deferred retirement option plan (DROP) payment in conjunction with a monthly annuity payment due for a month beginning on or before the participant's required beginning date, the minimum distribution requirement of this section is satisfied by the annuity payment required to be made for that month.(B) In the case of a refund to a participant of the participant's entire accumulated contributions, the amount that is the required minimum distribution for the distribution calendar year (and thus is not eligible for rollover under 26 U.S.C. §402(c)) is determined by treating the single sum distribution as a distribution from an individual account plan and treating the amount of the single sum distribution as the participant's account balance as of the end of the relevant valuation calendar year. The minimum amount required to be distributed for each distribution calendar year is equal to the quotient obtained by dividing the account by the applicable distribution period using the Uniform Lifetime Table in A-2 of Treasury regulation §1.401(a)(9)-9. If the refund is being made in the calendar year containing the required beginning date and the required minimum distribution for the participant's first distribution calendar year has not been distributed, the portion of the single sum distribution that represents the required minimum distribution for the participant's first and second distribution calendar year is not eligible for rollover.(d) Requirements For Distributions of Retirement Annuity Payments(1) Option 1 or 5 Retirement Payment Plan With Non-spousal Beneficiary. If the participant's interest is to be distributed in the form of an Option 1 or 5 annuity and the participant designated a nonspouse beneficiary, annuity payments to the designated beneficiary after the participant's death must not at any time exceed the applicable percentage of the annuity payment for such period that would have been payable to the participant using the table set forth in §1.401(a)(9)-6(b)(2)(iii) of the Treasury regulations. An Option 1 or 5 payment plan that would result in a payment to a designated nonspouse beneficiary above the applicable percentage shall not be available to the participant.(2) Option 3 and 4 Retirement Payment Plans.(A) If the participant's spouse is not the sole designated beneficiary, the participant may not select an Option 3 or 4 retirement payment plan if the period certain for an annuity distribution commencing during the participant's lifetime would exceed the applicable distribution period for the participant under the Uniform Lifetime Table set forth in §1.401(a)(9)-9 of the Treasury regulations for the calendar year that contains the annuity starting date. If the annuity starting date precedes the year in which the participant reaches age 70, the applicable distribution period for the participant is the distribution period for age 70 under the Uniform Lifetime Table set forth in §1.401(a)(9)-9 of the Treasury regulations plus the excess of 70 over the age of the participant as of the participant's birthday in the year that contains the annuity starting date.(B) If the participant's spouse is the sole designated beneficiary, the participant may not select an Option 3 or 4 retirement payment plan if the period certain would exceed the longer of the participant's applicable distribution period, as determined under this paragraph, or the joint life and last survivor expectancy of the participant and the participant's spouse as determined under the Joint and Last Survivor Table set forth in §1.401(a)(9)-9 of the Treasury regulations, using the participant's and spouse's attained ages as of the participant's and spouse's birthdays in the calendar year that contains the annuity starting date.(e) Requirements for Minimum Distributions Where Participant Dies Before Date Distributions Begin.(1) Participant Survived by Designated Beneficiary. If the participant dies before the date that distribution of his or her interest begins (as described in subsection (b)(3) of this section) and there is a designated beneficiary, the entire interest payable with respect to the participant is required to be distributed, beginning no later than the time described in subparagraph (A) or (B) of subsection (b)(3) of this section, over the life of the designated beneficiary or over a period certain not exceeding:(A) unless the annuity starting date is before the first distribution calendar year, the life expectancy of the designated beneficiary determined using the beneficiary's age as of the beneficiary's birthday in the calendar year immediately following the calendar year of the participant's death; or(B) if the annuity starting date is before the first distribution calendar year, the life expectancy of the designated beneficiary determined using the beneficiary's age as of the beneficiary's birthday in the calendar year that contains the annuity starting date.(2) No Designated Beneficiary. If the participant dies before the date distributions begin and there is no designated beneficiary as of September 30 of the year following the year of the participant's death, distribution of the participant's entire interest is required to be completed by December 31 of the calendar year containing the fifth anniversary of the participant's death.(3) Death of Surviving Spouse Before Distributions to Surviving Spouse Begin. If the participant dies before the date distribution of his or her interest begins, the participant's surviving spouse is the participant's sole designated beneficiary, and the surviving spouse dies before distributions to the surviving spouse begin, this subsection will apply as if the surviving spouse were the member, as described in §1.401(a)(9)-3(b)(3), (d) of the Treasury regulations, except that the time by which distributions must begin will be determined without regard to subsection (b)(3)(A) of this section.(f) Election To Apply 5-Year Rule to Distributions to Designated Beneficiaries. Notwithstanding subsection (e) of this section, if the participant dies before distributions begin and there is a designated beneficiary entitled to a lump sum distribution, distribution of the lump sum to the designated beneficiary is not required to begin by the date specified in subsection (e)(1) of this section, if the participant's entire interest is distributed to the designated beneficiary by December 31 of the calendar year containing the fifth anniversary of the participant's death. If the participant's surviving spouse is the participant's sole designated beneficiary and the surviving spouse dies after the member but before distributions to either the participant or the surviving spouse begin, this provision will apply as if the surviving spouse were the participant, as described in §1.401(a)(9)-3(b)(3), (d) of the Treasury regulations.(g) Requirements for Minimum Distributions Where Participant Dies After Distributions Begin. If a participant dies after retirement benefits have commenced, benefits must continue to be distributed to the beneficiary at least as rapidly as provided for under the option elected by the participant pursuant to §29.8 of this title (relating to Retirement Payment Plans).(h) An eligible participant who has applied for service or disability retirement and who dies on or after the retirement date will be considered to have retired and commenced distributions.(i) A participant or beneficiary is required to initiate and complete appropriate TRS processes to take distributions in accordance with this section. A participant or beneficiary who fails to take distributions in accordance with this section is subject to federal tax law establishing an additional tax on minimum distributions that are required but not taken.(j) Grandfather Provisions. Notwithstanding any provision of this section to the contrary, with respect to any annuity option or other plan provision as in effect on April 17, 2002, TRS will apply a reasonable and good faith interpretation of the requirement of Internal Revenue Code §401(a)(9). TRS is exercising the authority granted to governmental plans in the Pension Protection Act of 2006 in establishing this section as its good faith interpretation of the requirements of Internal Revenue Code §401(a)(9). The provisions of this section, including subsections (d) and (e) of this section, affecting payment options otherwise available under the TRS plan are applicable to retirements with an effective date after December 31, 2007, or to a benefit payable as a result of the death of a participant after December 31, 2007.",
            "sourceNote": "Source Note: The provisions of this §29.56 adopted to be\r\neffective May 3, 2007, 32 TexReg 2368; amended to be effective December\r\n30, 2025, 50 TexReg 8617."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=129413&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "129413",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "E",
                "label": "DEFERRED RETIREMENT OPTION PLAN"
            },
            "rule": {
                "number": "§29.61",
                "label": "Distribution"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100776&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100776",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) When a member who has participated in the Deferred Retirement Option Plan (DROP) retires, the system shall distribute the accumulated amount in the member's DROP account in one of the following manners:(1) in a lump sum;(2) in yearly or monthly increments over a five-year period;(3) in yearly or monthly increments over a ten-year period; or(4) a roll-over as authorized by law.(b) Interest shall be credited to the DROP account until final distribution is made. The initial DROP distribution shall be due and payable at the same time as the first annuity payment. Thereafter, monthly payments shall be payable on the first of each succeeding month until the payment period has expired. Yearly distributions, after the initial yearly distribution, shall be due on the anniversary of the date the initial distribution was due and payable.(c) A member must elect the form of distribution at the time of retirement. No distribution shall be made until all necessary documents for payment of retirement or death benefits are received by TRS.(d) Payment of DROP installments selected by a retiree under subsection (a) of this section will continue to the beneficiary upon the death of the annuitant for the remainder of the payment period. A retiree or beneficiary of a retiree receiving a DROP distribution may make a one-time election to accelerate installment payments to a lump sum amount representing the remaining DROP account balance at the time of final distribution.(e) In the event of the death of a member participating in the DROP, the accumulated amount in the DROP account including credited interest shall be paid to the DROP beneficiary or in the absence of a DROP beneficiary as indicated in subsection (f) of this section. Payment may be eligible for rollover to the extent provided by law.(f) A member participating in the DROP or a DROP annuitant shall separately designate one or more beneficiaries to receive any DROP benefits due in the event of death. DROP beneficiaries need not be the same persons named to receive other payments from the retirement system upon the death of the member or annuitant. At the death of a member participating in DROP and in the absence of a designated DROP beneficiary the payment of any DROP distribution will be made to the beneficiary eligible to receive any death benefits. At the death of a DROP annuitant and in the absence of a designated DROP beneficiary the payment of any DROP distribution will be made to the beneficiary designated to receive any retirement benefits. If there is no designated beneficiary for retirement benefits, payment of any DROP distribution will be made to the beneficiary eligible to receive any survivor benefits.",
            "sourceNote": "Source Note: The provisions of this §29.61 adopted to be effective January 29, 1998, 23 TexReg 559; amended to be effective March 12, 2003, 28 TexReg 2106; amended to be effective March 8, 2007, 32 TexReg 1087."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100776&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100776",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "E",
                "label": "DEFERRED RETIREMENT OPTION PLAN"
            },
            "rule": {
                "number": "§29.62",
                "label": "Unemployment during Deferred Retirement Option Plan"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151235&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "151235",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "When a participant in the Deferred Retirement Option Plan (DROP) is not an employee for whatever reason, the participant may continue to participate in DROP. Deposits to DROP will continue to be made on the part of the plan to the person's DROP account during any period of continued participation. Interest will continue to be credited during all periods until final distribution by the plan. Periods of unemployment do not extend the period of participation originally elected.",
            "sourceNote": "Source Note: The provisions of this §29.62 adopted to be effective September 17, 1997, 22 TexReg 9257; amended to be effective March 12, 2003, 28 TexReg 2106."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151235&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "151235",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "E",
                "label": "DEFERRED RETIREMENT OPTION PLAN"
            },
            "rule": {
                "number": "§29.63",
                "label": "Deadline for Purchase of Special Service Credit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151238&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "151238",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as provided in subsection (b) of this section, a member who elects to participate in the Deferred Retirement Option Plan (DROP) but also desires to purchase special service credit must purchase all special service credit eligible for purchase on or before the effective date of the member's DROP participation. Special service credit that a member would otherwise become eligible to purchase during DROP participation may not be purchased after the effective date of DROP participation. Also, an election to participate in DROP disqualifies any state personal or sick leave accumulated at the time of the effective date of the member's DROP participation as well as such leave accumulated during participation in DROP from being used in calculating the number of days or hours required to purchase state personal or sick leave at the time of actual retirement.(b) A member participating in DROP on September 1, 2001, was permitted to elect, before December 31, 2001, to discontinue participation in DROP on a form prescribed by and filed with TRS. Additionally, a member participating in DROP on September 1, 2005, or whose period of participation in the plan expired on or before September 1, 2005, but who has not retired on or before that date may, before December 31, 2005, elect to discontinue participation in DROP on a form prescribed by and filed with TRS. If a member discontinued participation in DROP as described in this subsection, this rule shall not be deemed to bar the member from purchasing special service credit for which the requirements have been earned or met before or during the member's participation in DROP.(c) A member who completes the period of participation in DROP and who returns to employment with a TRS-covered employer without having retired may purchase prior to retirement any special service credit for which the member is eligible and for which the requirements have been earned or met entirely after the member's participation in DROP.",
            "sourceNote": "Source Note: The provisions of this §29.63 adopted to be effective May 10, 2000, 25 TexReg 4188; amended to be effective March 12, 2003, 28 TexReg 2106; amended to be effective December 29, 2005, 30 TexReg 8699; amended to be effective April 1, 2011, 36 TexReg 1995."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151238&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "151238",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "F",
                "label": "PARTIAL LUMP-SUM PAYMENT"
            },
            "rule": {
                "number": "§29.70",
                "label": "Distribution"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214462&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214462",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The election of the partial lump-sum option, including the selection of the amount of the lump-sum distribution, or an application for retirement without an election of the partial lump-sum option under §824.2045, Government Code, may not be changed after the later of the date on which the retirement system makes the first annuity payment or the date the first payment becomes due. The partial lump-sum option payment shall be made at the same time as the initial retirement annuity payment is made. For those retirees selecting two or three annual lump-sum payments, the second and third payment shall be made on the appropriate anniversary date of the due date of the initial lump-sum payment. No interest will be paid on any lump-sum amounts paid in the second year, third year, or at any other time.(b) A retiree who selected two or three annual lump-sum payments may receive all remaining money due at any time they elect in writing to do so.(c) A retiree will be permitted to roll-over any amounts as authorized by law.(d) In the event a retiree dies prior to receiving all payments due from the partial lump-sum option plan, the retirement system will pay any partial lump-sum benefits due in a single lump sum payment to the beneficiary eligible to receive the retirement benefits except in the circumstances where subsection (e) of this section applies. If there is no beneficiary designated under subsection (e) of this section and there is no beneficiary eligible to receive the retirement benefits, the retirement system will pay any partial lump-sum benefits due in a single lump sum payment to the beneficiary eligible to receive any death and survivor benefits.(e) A retiree has the option of designating a beneficiary specifically for any unpaid lump-sum payments due under this section upon the death of the retiree. Any such designation must be done on a form prescribed by and filed with the retirement system. The designation would be superior to subsection (d) of this section and would control the payment of a single lump sum payment of any money due upon the death of the retiree under the partial lump-sum option plan. In the event that the designated beneficiary named under this subsection dies prior to distribution, TRS will pay the lump sum benefit under subsection (d) of this section.",
            "sourceNote": "Source Note: The provisions of this §29.70 adopted to be effective October 28, 1999, 24 TexReg 9298; amended to be effective March 12, 2003, 28 TexReg 2107; amended to be effective March 8, 2007, 32 TexReg 1087; amended to be effective April 1, 2011, 36 TexReg 1995."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214462&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214462",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "F",
                "label": "PARTIAL LUMP-SUM PAYMENT"
            },
            "rule": {
                "number": "§29.71",
                "label": "Tables"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=122521&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "122521",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Any eligible retiree who selects a partial lump-sum option will receive an actuarially reduced annuity to reflect the selection of the lump-sum option. TRS will use Factor Tables for Partial Lump-Sum Option Payments furnished by the TRS actuary of record.Attached Graphic(b) The member's age in whole years will be used from column one and the percentage of standard annuity factor from column three, four, or five depending on the number of months of lump-sum selected, will be used to determine the percentage of standard annuity that will be paid to a person who elects to participate in the partial lump-sum option plan.",
            "sourceNote": "Source Note: The provisions of this §29.71 adopted to be effective October 28, 1999, 24 TexReg 9298; amended to be effective September 1, 2019, 44 TexReg 4187; amended to be effective September 1, 2023, 48 TexReg 4520."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=122521&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "122521",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "F",
                "label": "PARTIAL LUMP-SUM PAYMENT"
            },
            "rule": {
                "number": "§29.72",
                "label": "Eligibility to Select PLSO"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=92046&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "92046",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as provided in subsection (b) of this section, effective September 1, 2005, a member is eligible to select a partial lump-sum distribution only if the member's age and years of service credit total at least 90 at the time of retirement and the member meets the other requirements of §824.2045, Government Code, as amended by Senate Bill 1691, 79th Legislature, Regular Session (2005).(b) A member eligible under §51.12 of this title (relating to Applicability of Certain Laws in Effect Before September 1, 2005) is eligible to select a partial lump-sum distribution as provided by §824.2045, Government Code, prior to its amendment effective September 1, 2005, by Senate Bill 1691, 79th Legislature, Regular Session (2005). Under §824.2045 prior to amendment, to be eligible to select a partial lump-sum distribution, a member must be eligible for an unreduced service retirement annuity under §824.202(a), Government Code, as it existed prior to amendment effective September 1, 2005, and must not be participating in the deferred retirement option plan under Subchapter E of this chapter.",
            "sourceNote": "Source Note: The provisions of this §29.72 adopted to be effective December 29, 2005, 30 TexReg 8699."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=92046&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "92046",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "G",
                "label": "PROPORTIONATE RETIREMENT"
            },
            "rule": {
                "number": "§29.80",
                "label": "Eligibility for Normal Age Retirement"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151239&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "151239",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Retirees with an effective date of retirement on or after January 31, 2002, and who retire under Chapter 803, Proportionate Retirement Program, Government Code, and whose combined service credit under this program establishes eligibility for retirement under Government Code, Chapter 824, §824.202(a), shall receive a normal-age retirement annuity based only on the actual TRS service credit.",
            "sourceNote": "Source Note: The provisions of this §29.80 adopted to be effective January 9, 2002, 27 TexReg 272."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151239&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "151239",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "G",
                "label": "PROPORTIONATE RETIREMENT"
            },
            "rule": {
                "number": "§29.81",
                "label": "Eligibility of Member"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151240&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "151240",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A member may use combined service under Chapter 803, Government Code, to meet TRS service retirement eligibility if the member is eligible for retirement in each of the other systems in which any of the combined service is credited, even if the member does not actually retire from any other system simultaneously with the retirement under TRS.",
            "sourceNote": "Source Note: The provisions of this §29.81 adopted to be effective April 1, 2011, 36 TexReg 1996."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151240&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "151240",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "G",
                "label": "PROPORTIONATE RETIREMENT"
            },
            "rule": {
                "number": "§29.82",
                "label": "Calculation of Salary Average"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=181762&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "181762",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "When a member is eligible to retire from TRS under the Proportionate Retirement Program but has less TRS service credit than is required in the applicable formula to compute the final average salary, the final average salary will be computed using the salaries for the years of service credited in TRS.",
            "sourceNote": "Source Note: The provisions of this §29.82 adopted to be effective April 1, 2011, 36 TexReg 1996."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=181762&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "181762",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "G",
                "label": "PROPORTIONATE RETIREMENT"
            },
            "rule": {
                "number": "§29.83",
                "label": "Calculation of Amount of Retirement Benefit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187281&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "187281",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "For retirements after September 1, 2016, when a member is eligible to retire from TRS under the Proportionate Retirement Program but has fewer years of combined service credit than is required for normal age retirement, the years of combined service credit shall be used in determining the applicable reduction for an early age service retirement annuity that is calculated using only actual TRS service credit.",
            "sourceNote": "Source Note: The provisions of this §29.83 adopted to be effective December 29, 2016, 41 TexReg 10391."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187281&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "187281",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "H",
                "label": "FORFEITURES OF ACCRUED BENEFITS"
            },
            "rule": {
                "number": "§29.90",
                "label": "Forfeiture of Certain Benefits Due to Criminal Offense"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187280&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "187280",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Upon receipt of a notice of judgment prescribed in subsection (b) of this section from a state or federal district court, state district or U.S. attorney, or the defendant's employer related to a qualifying felony described in §824.009, Government Code, that was committed by a member or retiree and in which each and every element of the offense occurred after the effective date of this rule, the Teacher Retirement System of Texas (TRS) shall make only the disbursements described in this section on behalf of the defendant. Disability retirement benefits payable on behalf of a defendant are not affected by this section.(b) A notice of judgment must include the following:(1) the name and social security number of the defendant or other identifying information sufficient for TRS to correctly identify the defendant as a member or retiree of TRS;(2) a statement or sufficient information for TRS to conclude that the crime was a felony described in §824.009(a) or (a-1), Government Code;(3) an affirmative statement that each and every element of the crime occurred after the effective date of this rule;(4) a statement that the defendant was a member or service retiree of TRS when the crime was committed;(5) a statement that the defendant was an employee of a TRS-covered employer at the time the crime was committed and that the crime related to the defendant's employment; and(6) a statement that the victim of the crime was a student at the time the qualifying felony occurred.(c) If the defendant is a member of TRS but has not retired under service retirement at the time TRS receives the prescribed notice of judgment required in subsection (a) of this section, TRS shall terminate the defendant's membership and issue a refund of the accumulated contributions in the member account, and in the event the defendant participated in the Deferred Retirement Option Plan (DROP) the refund shall include amounts in the defendant's DROP account, subject to the following:(1) The defendant or a person authorized to act on the behalf of the defendant must complete the documents required by TRS to effectuate the refund;(2) The refund of the defendant's accumulated contributions and any DROP balance is subject to the terms of any domestic relations order (DRO) determined by TRS to be a qualified domestic relations order (QDRO) that is in effect before September 1, 2017 and is subject to the terms of any QDRO entered on or after September 1, 2017 except as provided in paragraph (3) of this subsection;(3) Upon receipt of a certified copy of a DRO related to a division of retirement plan benefits entered on or after September 1, 2017 pursuant to §824.009(i), Government Code, and a determination by TRS that the DRO is a qualified order under Chapter 804, Government Code, TRS shall apply the QDRO to the accumulated contributions in the member account and in any DROP account at the time notice is received by TRS and issue a refund to the defendant of any accumulated contribution amounts or DROP account balance not awarded to the alternate payee in the QDRO. In addition:(A) If the member has fewer than five years of service credit at the time the notice of judgment is received by TRS, TRS shall distribute to the alternate payee the portion of the accumulated contributions awarded to alternate payee, and TRS shall have no further obligation for the payment of benefits to the alternate payee;(B) If the member has five or more years of service credit at the time the notice of judgment is received by TRS, TRS shall maintain the portion of the accumulated contributions and any portion of a DROP account awarded to the alternate payee under the terms of the QDRO until the earliest month the defendant would have been eligible for service retirement benefits, including a benefit reduced for early age, and at that time shall commence distribution to the alternate payee of the alternate payee's portion of a standard annuity benefit, reduced for early age if applicable, based on the defendant's annual compensation and service credit maintained by TRS at the time of the refund to the defendant under this subsection. In addition to a portion of the standard annuity, TRS shall also distribute to the alternate payee in the form of a lump sum any portion of the balance remaining in a DROP account awarded to the alternate payee under the QDRO plus applicable interest; and(C) If the defendant dies before reaching the earliest age eligible for retirement, TRS shall distribute to the alternate payee the portion of the accumulated contributions plus applicable interest awarded to the alternate payee under the QDRO in the form of a lump sum payment, and TRS shall have no further obligation for payments of benefits to the alternate payee;(4) The alternate payee's interest in the standard annuity benefits payable by TRS under paragraph (3) of this subsection terminates at the earlier of the death of the defendant or the alternate payee as required in §804.101, Government Code. If there are any unpaid accumulated contributions or amounts in the defendant's DROP account awarded to the alternate payee under the terms of the QDRO remaining at the time of the alternate payee's death, the unpaid accumulated contributions, unpaid amounts in the DROP account, and any excess unpaid accumulated contributions remaining if monthly annuity payments have commenced to the alternate payee, are payable to the defendant; and(5) The refund of accumulated contributions to an alternate payee under the terms of a QDRO pursuant to this subsection terminates the interest of the alternate payee in any future benefits payable by TRS on behalf of the defendant.(d) If the defendant is a service retiree at the time TRS receives the prescribed notice of judgment required in subsection (a) of this section, TRS shall cease distributions to the defendant of any future service retirement benefits, including any partial lump sum option (PLSO) payments, and any remaining DROP account balance, effective with the annuity for the month following the month in which TRS receives notice of judgment required in this section and shall, in lieu of future service retirement benefits, issue a refund of the accumulated contributions in the member account at the time of retirement and any balance remaining in the defendant's DROP account at the time of the refund, subject to the following:(1) The refund of accumulated contributions and payment of any unpaid DROP account balance is subject to the terms of any DRO determined by TRS to be a qualified order that is in effect on or after September 1, 2017 that is not entered pursuant to §824.009(i), Government Code and the alternate payee shall receive the share of the accumulated contributions and any remaining DROP account balance awarded by the QDRO;(2) The refund of accumulated contributions and any DROP account balance pursuant to this subsection to an alternate payee under the terms of a QDRO entered on or after September 1, 2017 but not entered pursuant to §824.009(i), Government Code terminates the interest of the alternate payee in any future benefits payable by TRS on behalf of the defendant;(3) The defendant shall receive the portion of a refund of accumulated contributions and any unpaid DROP balance awarded to the defendant pursuant to a DRO approved by TRS as a QDRO before September 1, 2017; however payments to the alternate payee of the portion of the service retirement annuity awarded to the alternate payee shall continue under the terms of the QDRO and the pension plan as set forth in paragraph 4 of this subsection. The alternate payee of a QDRO approved before September 1, 2017 shall not receive any portion of the refund of the accumulated contributions to the member required in this subsection;(4) Upon receipt of a certified copy of a DRO related to a division of property made pursuant to §824.009(i), Government Code, entered on or after September 1, 2017, and a determination by TRS that the DRO is a qualified order under Chapter 804, Government Code, TRS shall apply the QDRO to the service retirement annuity amount and shall pay the alternate payee the portion of each service retirement annuity payment, including a portion of any PLSO payments remaining, and any remaining DROP amount ordered in the QDRO. The QDRO award shall also be applied to the amount of accumulated contributions in the defendant's account at the time of retirement and any balance remaining in the defendant's DROP account at the time the notice of judgment is implemented by TRS and TRS shall issue a refund to the defendant of the amount of accumulated contributions in the member's account at the time of retirement that is not awarded to the alternate payee in the QDRO and the portion of any remaining balance in a DROP account after distributions due to service retirement that were not awarded to the alternate payee. The alternate payee under a QDRO entered pursuant to §824.009(i), Government Code, shall not receive any portion of the refund of the account balance; and(5) The alternate payee's interest in the benefits payable by TRS on behalf of the defendant, established in a QDRO approved by TRS before September 1, 2017 or entered pursuant to §824.009(i), Government Code, terminates at the earlier of the death of the defendant or the alternate payee. In the event the defendant elected an optional annuity retirement plan, the alternate payee shall receive the portion awarded in the QDRO of the benefit amount payable to the beneficiary of the optional annuity but benefits shall not be paid to the beneficiary. The alternate payee's interest in the benefits payable by TRS under an optional annuity retirement plan terminates at the earlier of the death of the beneficiary or the expiration period, or the alternate payee as required in §804.101, Government Code. If there are any remaining unpaid excess accumulated contributions or any DROP account balance awarded to the alternate payee under the terms of the QDRO remaining at the time of the alternate payee's death, the unpaid excess accumulated contributions and unpaid remaining DROP balance are payable to the defendant or the defendant's estate.",
            "sourceNote": "Source Note: The provisions of this §29.90 adopted to be effective January 4, 2018, 42 TexReg 7719."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187280&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "187280",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "29",
                "label": "BENEFITS"
            },
            "subchapter": {
                "number": "H",
                "label": "FORFEITURES OF ACCRUED BENEFITS"
            },
            "rule": {
                "number": "§29.91",
                "label": "Restoring Forfeited Benefits After Conviction is Overturned"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206389&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "206389",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Upon receipt of a notice of a judgment overturning the conviction of a former TRS member or service retiree for a qualifying felony that resulted in the termination of membership in TRS or the forfeiture of service retirement benefits required in §824.009, Government Code, or upon receipt of a notice of judgment that the person whose membership in TRS was terminated or who forfeited service retirement benefits as required in §824.009, Government Code meets the requirements for innocence under §103.001 (a)(2), Civil Practice and Remedies Code, TRS shall restore the person to membership or distribute service retirement benefits to the person as provided in this section.(b) A person whose membership in TRS was terminated as provided in §29.90 of this subchapter before the distribution of service retirement benefits commenced shall be restored to membership in TRS as follows:(1) If there was a qualified domestic relations order (QDRO) in effect before September 1, 2017, membership shall be restored upon receipt from the former member of an amount equal to the total accumulated contributions paid on behalf of the member under §29.90 of this subchapter, including any accumulated contributions paid to an alternate payee under the terms of a QDRO. However, TRS shall not pay to the alternate payee any portion of any benefits restored under this section under the terms of a QDRO in effect before September 1, 2017, even if the benefits result in part from the reinstatement of service credit initially credited during the marriage.(2) If a QDRO was entered on or after September 1, 2017 under the authority provided in §824.009 (i), Government Code, the person shall repay all of the accumulated contributions distributed under §29.90, and:(A) If a distribution of service retirement benefits has not yet commenced to the alternate payee, the amount of accumulated contributions held under §29.90(c)(3) for the benefit of the alternate payee shall be restored to the member account. Any future distribution of benefits on behalf of the member shall be subject to the terms of the QDRO entered under the authority of §824.009, Government Code; or(B) If a distribution of service retirement benefits has commenced to the alternate payee, the former member shall pay the amount of accumulated contributions refunded on his or her behalf less the portion of accumulated contributions retained by TRS under the terms of the QDRO and TRS shall commence distributing to the member the portion of the retirement benefits elected by the member and not awarded to the alternate payee. The alternate payee shall continue to receive the portion of the standard service retirement annuity awarded under the terms of the QDRO until the earlier of the death of the alternate payee or the member.(3) If a QDRO was entered on or after September 1, 2017 but not under the authority provided in §824.009(i), membership shall be restored upon receipt from the person of an amount equal to the total accumulated contributions paid on behalf of the member under §29.90, including any accumulated contributions paid to an alternate payee. However, TRS shall not pay to the alternate payee any portion of any benefits restored under this section under the terms of a QDRO in effect before September 1, 2017, even if the benefits result in part from the reinstatement of service credit initially credited during the marriage.(4) If there was no QDRO in effect with respect to the member, membership is restored upon receipt by TRS of an amount equal to all accumulated contributions refunded to the member.(c) A person whose membership in TRS was terminated as provided in §29.90 after the commencement of service retirement benefits shall be restored to TRS membership as follows:(1) If there was a QDRO in effect before September 1, 2017 or on or after September 1, 2017 under the authority provided in §824.009(i), Government Code:(A) the member shall receive an amount equal to the accrued total of annuity payments, including any PLSO payments, previously forfeited due to the conviction through the calendar month of notice of the judgement overturning the conviction to TRS plus interest, less any amounts paid to the alternate payee under the terms of a QDRO;(B) the member shall repay to TRS an amount equal to the portion of the accumulated contributions refunded to the member. A distribution of service retirement annuities, less any amount distributed to the alternate payee under the terms of the QDRO, may resume to the member effective with the annuity payable for the calendar month in which TRS receives the member's payment of the amount refunded under this section;(2) If there was a QDRO in effect after September 1, 2017 and not under the authority of provided in §824.009(i), Government Code:(A) the member shall receive an amount equal to the accrued total of annuity payments, including any PLSO payments, previously forfeited due to the conviction through the calendar month of notice of the judgement overturning the conviction to TRS plus interest;(B) the member shall repay to TRS an amount equal to all accumulated contributions refunded by TRS, including any accumulated contributions paid to an alternate payee pursuant to the QDRO. A distribution of service retirement annuities may resume to the member effective with the annuity payable for the calendar month in which TRS receives the member's payment of the amount of refunded accumulated contributions. TRS shall not pay to the alternate payee any portion of any benefits restored under this section under the terms of the QDRO, even if the benefits result in part from the reinstatement of service credit initially credited during the marriage.(3) If there was no QDRO in effect with respect to the member, the member shall receive an amount equal to the accrued total of annuity payments, including any PLSO payments, previously forfeited due to the conviction through the calendar month of notice of the judgement overturning the conviction to TRS plus interest. A distribution of service retirement annuities may resume to the member effective with the annuity payable for the calendar month in which TRS receives the member's payment of the total amount accumulated contributions refunded to the member.(d) The amount of interest payable under subsection (c) of this section is the amount of interest provided for member contributions in §825.307, Government Code, for the time period that the service retirement benefits were previously forfeited.",
            "sourceNote": "Source Note: The provisions of this §29.91 adopted to be effective January 4, 2018, 42 TexReg 7719."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206389&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206389",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "31",
                "label": "EMPLOYMENT AFTER RETIREMENT"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL PROVISIONS AND PROCEDURES"
            },
            "rule": {
                "number": "§31.1",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206390&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "206390",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "In this chapter, the following words and terms shall have the following meanings:(1) Disability retiree--A TRS retiree receiving a disability annuity payment under Subchapter D of Chapter 824, Government Code.(2) EAR--Employment after retirement.(3) Employer--Any employer required to report the employment of active members or TRS retirees to TRS in accordance with Subtitle C of Title 8 of the Government Code.(4) Employer surcharge--the return-to-work employer pension surcharge described under Section §31.3 of this title (relating to Return-to-Work Employer Pension Surcharge) and Government Code §825.4092.(5) Employment--Any work arrangement between a Texas public educational institution and a TRS retiree that qualifies as employment under Government Code §824.601, including any work by a TRS retiree who is:(A) employed by a third-party entity unless the retiree does not perform duties or provide services on behalf of or for the benefit of the institution; or(B) performing duties or providing services for or on behalf of the institution in the first 12 full, consecutive calendar months after the retiree's effective date of retirement that an employee of the institution would otherwise perform or provide, and:(i) waiving, deferring, or foregoing compensation for the services or duties;(ii) performing the duties or providing the services as an independent contractor; or(iii) serving as a volunteer without compensation and performing the same duties or providing the same services for the institution that the retiree performed or provided immediately before retiring and the retiree has an agreement to perform those duties or provide those services after the first 12 full, consecutive calendar months after the retiree's effective date of retirement.(6) Report month--the calendar month to which a monthly certified statement under §31.2 of this title (relating to Monthly Certified Statement) applies, rather than the month in which it is submitted to TRS.(7) Retiree--a service retiree or disability retiree.(8) School year--For purposes of employment after retirement, a twelve-month period beginning on September 1 and ending on August 31 of the calendar year.(9) Service retiree--a retiree receiving a service annuity payment under Subchapter C of Chapter 824, Government Code.(10) Third-party entity--an entity retained by a Texas public educational institution to provide personnel to the institution who perform duties or provide services that employees of that institution would otherwise perform or provide.(11) TRS--the Teacher Retirement System of Texas.",
            "sourceNote": "Source Note: The provisions of this §31.1 adopted to be effective November 1, 2021, 46 TexReg 6940."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206390&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206390",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "31",
                "label": "EMPLOYMENT AFTER RETIREMENT"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL PROVISIONS AND PROCEDURES"
            },
            "rule": {
                "number": "§31.2",
                "label": "Monthly Certified Statement"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227124&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227124",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In accordance with the requirements of Government Code § 824.6022, an employer shall submit to TRS a monthly certified statement of employment for all retirees employed by the employer during each month of a school year.(b) Employers must submit the monthly certified statement and all required employer surcharges under §31.3 of this title (relating to Return-to-Work Employer Pension Surcharges) for each report month from September through July before the eleventh day of the month following the applicable report month. For the monthly certified statement for the report month of August, the employer shall submit the monthly certified statement and all required employer surcharges before the seventh day of September.(c) If the due date for submission of a monthly certified statement and required employer surcharges under subsection (b) of this section falls on a weekend or federal holiday, an employer shall submit the monthly certified statement and required employer surcharges on the last business day prior to the due date.(d) An employer that fails to timely submit a monthly certified statement and all required employer surcharges must also pay all applicable interest and late fees provided in subsections (f) and (g) of this section.(e) A monthly certified statement is not considered submitted to TRS until it is completed. To be complete, the monthly certified statement must include all the following information regarding a retiree employed by the employer during the report month:(1) the number of hours and days worked by the retiree;(2) whether the retiree's employment qualifies as one or more of the following types:(A) substitute employment;(B) one-half time or less employment;(C) employment as a tutor under Section 33.913 of the Education Code;(D) employment in a federally-funded COVID-19 personnel position that meets the requirements of Section 824.6021 of the Government Code and §31.16 of this title (relating to Federally-funded COVID-19 Personnel);(E) full-time employment;(F) trial employment of a disability retiree for up to three months; or(G) any combination of these types;(3) the amount of gross compensation paid to the retiree during the report month;(4) the total amount due under §41.4 of this title (relating to Employer Health Benefit Surcharge); and(5) any other information requested by TRS to administer this chapter.(f) Employers that fail to timely submit a monthly certified statement, any required employer surcharges, or interest on unpaid amounts as required in this section shall pay to TRS the late fee established in this subsection for each business day that the monthly certified statement is past due. The late fees required to be paid are as follows:(1) For employers with fewer than 100 employees, the late fee for the first business day the monthly certified statement is past due is $100. For each subsequent business day that the monthly certified statement is past due, the employer shall pay an additional $10.(2) For employers with at least 100 employees but no more than 500 employees, the late fee for the first business day the monthly certified statement is past due is $250. For each subsequent business day that the monthly certified statement is past due, the employer shall pay an additional $25.(3) For employers with more than 500 employees but no more than 1,000 employees, the late fee for the first business day the report or documentation is past due is $500. For each subsequent business day that the monthly certified statement is past due, the employer shall pay an additional $50.(4) For employers with more than 1,000 employees, the late fee for the first business day the monthly certified statement is past due is $1,000. For each subsequent business day that the monthly certified statement is pat due, the employer shall pay an additional $100.(g) In determining the number of employees for purposes of assessing the late fee in subsection (f) of this section, TRS shall base the fee on the number of employees reflected on the employer's monthly certified statement for May of the preceding school year. New employers will pay late fees for the first school year as provided in subsection (f)(1) of this section.",
            "sourceNote": "Source Note: The provisions of this §31.2 adopted to be effective November 1, 2021, 46 TexReg 6940."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227124&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227124",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "31",
                "label": "EMPLOYMENT AFTER RETIREMENT"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL PROVISIONS AND PROCEDURES"
            },
            "rule": {
                "number": "§31.3",
                "label": "Return-to-Work Employer Pension Surcharge"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206392&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "206392",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) For each report month a retiree is employed by an employer for more than 92 hours in a calendar month and that retiree is not exempt from surcharge under subsection (b) of this section, the employer shall pay to TRS a surcharge based on the compensation paid to the retiree during that report month. The criteria used to determine if a retiree is working more than 92 hours in a calendar month are the same as the criteria for determining one-half time employment under §31.13 of this title (relating to One-half Time Employment) even if the retiree's employment also qualifies for an exception under §31.14 of this title (relating to Full-time Employment after 12 Consecutive Month Break in Service), or §31.15 of this title (relating to Tutors under Education Code §33.913).(b) Employers are not required to submit employer surcharges based on the employment of a retiree during a calendar month if:(1) the retiree works 92 hours or less during the applicable report month;(2) the retiree retired prior to September 1, 2005;(3) the retiree is employed solely as a substitute and that employment meets all the requirements §31.12 of this title (relating to Substitute Service) even if the retiree's substitute employment also qualifies for another exception under Subchapter B of this chapter (relating to Employment After Retirement Exceptions);(4) the retiree is employed in multiple positions during the calendar month and does not exceed the limits for such combined employment under §31.19 of this title (relating to Combining EAR Exceptions and Employer Surcharges); or(5) the retiree's employment is in a position that qualifies as a federally-funded COVID-19 position under §31.16 of this title (relating to Federally-funded COVID-19 Personnel) and Government Code §824.6021.(c) The amount of the employer surcharge that an employer must contribute to TRS for each retiree subject to surcharge under this section is equal to the sum of the compensation paid to the retiree during the report month multiplied by the member contribution rate in effect for the report month plus the compensation paid to the retiree during the report month multiplied by the state contribution rate in effect for that report month.(d) If a retiree is employed concurrently in more than one position, the employer surcharge is owed if the combined employment exceeds the monthly limits described by §31.19 of this title. If the employment is with more than one employer, the employer surcharge is owed by each employer.",
            "sourceNote": "Source Note: The provisions of this §31.3 adopted to be\r\neffective November 1, 2021, 46 TexReg 6940; amended to be effective\r\nDecember 30, 2025, 50 TexReg 8617."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206392&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206392",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "31",
                "label": "EMPLOYMENT AFTER RETIREMENT"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL PROVISIONS AND PROCEDURES"
            },
            "rule": {
                "number": "§31.4",
                "label": "Employment Resulting in Forfeiture of Retirement Annuity"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216438&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "216438",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A service retiree with an effective date of retirement prior to January 1, 2021, may be employed in any capacity in Texas public education without forfeiture of benefits for the months of employment.(b) A service retiree with an effective date of retirement after January 1, 2021, is subject to the forfeiture requirements of §31.5 of this title (relating to Notice and Forfeiture Requirements for Certain Service Retirees) for any month in which the retiree is employed by a Texas public educational institution unless the employment qualifies for an exception under Subchapter B of this chapter (relating to Employment After Retirement Exceptions).(c) Disability retirees, regardless of their effective date of retirement, are not entitled to an annuity payment for any month in which the retiree is employed by a Texas public educational institution unless the employment qualifies for an exception under Subchapter B of this chapter.(d) A retiree may be employed in private schools, public schools in other states, in private business, or in other entities that are not TRS-covered employers without forfeiting their annuities unless any of these entities also qualify as a third-party entities for the purposes of this chapter.(e) This chapter applies only to persons retired under TRS. It does not apply to persons retired under other retirement or pension systems.",
            "sourceNote": "Source Note: The provisions of this §31.4 adopted to be effective November 1, 2021, 46 TexReg 6940."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216438&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "216438",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "31",
                "label": "EMPLOYMENT AFTER RETIREMENT"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL PROVISIONS AND PROCEDURES"
            },
            "rule": {
                "number": "§31.5",
                "label": "Notice and Forfeiture Requirements for Certain Service Retirees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216439&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "216439",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A service retiree with an effective date of retirement after January 1, 2021, shall only forfeit the service retiree's monthly annuity payment based on the service retiree's employment by a Texas public educational institution during a calendar month if TRS has previously issued the warnings required by subsections (b) and (c) of this section to the retiree.(b) If TRS determines that a service retiree's employment by a Texas public educational institution does not qualify for an exception under Subchapter B of this chapter (relating to Employment after Retirement Exceptions), TRS shall issue a written EAR warning to the service retiree notifying the retiree of this fact. The EAR warning under this subsection may address multiple months of the service retiree's employment.(c) If TRS determines that a service retiree's employment by a Texas public educational institution does not qualify for an exception under Subchapter B of this chapter and that employment occurs in a month after the month TRS issued to the service retiree the warning under subsection (b) of this section, then TRS shall issue a second EAR warning to the service retiree that:(1) notifies the service retiree of this fact; and(2) requires the service retiree to pay TRS an amount equal to the lesser of the total amount of either:(A) the service retiree's gross monthly annuity payments for the months addressed by this warning; or(B) the total gross amount of compensation earned by the service retiree during the months addressed by this warning as described by §31.6 of this title (relating to Second EAR Warning Payments).(d) The EAR warning under subsection (c) of this section may address multiple months of the service retiree's employment.(e) If TRS determines that a service retiree's employment by a Texas public educational institution does not qualify for an exception under Subchapter B of this chapter and that employment occurs in a month after the month TRS issued to the retiree the second EAR warning under subsection (c) of this section, the service retiree is not entitled to receive a monthly annuity payment for any such month and TRS shall collect any annuity payments the service retiree received to which the service retiree was not entitled.(f) If TRS determines after issuing an EAR warning under subsections (b) or (c) of this section that the service retiree's employment by a Texas public educational institution did not qualify for an exception under Subchapter B of this chapter and that employment occurred in a month prior to or during the month TRS issued such a warning but was not included in the warning, then TRS shall:(1) issue an EAR warning in accordance with subsection (b) of this section if the excluded month was the month TRS issued the EAR warning under that subsection or an earlier month; or(2) issue an EAR warning and request for payment under subsection (c) of this section if the excluded month was the month TRS issued the EAR warning under that subsection or in an earlier month that was also after the month TRS issued the EAR warning under subsection (b) of this section.(g) If a service retiree appeals a TRS determination regarding the service retiree's employment with a Texas public educational institution during a month or months that TRS included in an EAR warning under subsection (b) or (c) of this section, the EAR warning shall still be considered to have been issued by TRS unless the service retiree's appeal contests every month addressed by the applicable warning. If the service retiree contests the TRS determination for every month included in an EAR warning, that EAR warning shall not be considered to have been issued during the pendency of the service retiree's appeal.(h) If a service retiree prevails on an appeal of every month included in an EAR warning under subsection (b) or (c) of this section, then TRS shall rescind the EAR warning. If the service retiree's appeal does not prevail on any month included in an EAR warning under subsection (b) or (c) of this section, then the EAR warning shall be reinstated and TRS shall adjust the amounts owed by the service retiree to TRS, if any, for months after the issuance of the reinstated EAR warning in which TRS determined the service retiree's employment by a Texas public educational institution did not qualify for an exception to the limits on EAR as provided by Subchapter B of this chapter.(i) TRS shall consider an EAR warning under this section to have been issued on the date TRS sends the warning to the service retiree.",
            "sourceNote": "Source Note: The provisions of this §31.5 adopted to be effective November 1, 2021, 46 TexReg 6940; amended to be effective February 1, 2024, 49 TexReg 280."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216439&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "216439",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "31",
                "label": "EMPLOYMENT AFTER RETIREMENT"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL PROVISIONS AND PROCEDURES"
            },
            "rule": {
                "number": "§31.6",
                "label": "Second EAR Warning Payments"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206401&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "206401",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If TRS issues a second EAR warning as provided in §31.5 of this title (relating to Notice and Repayment Requirements for Certain Service Retirees) to a service retiree, the service retiree shall pay to TRS an amount equal to the lesser of either:(1) the service retiree's gross monthly annuity payments for the months addressed by this warning; or(2) the total gross amount of compensation earned by the service retiree during the months addressed by this warning as described by this section.(b) The amount in subsection (a)(2) of this section shall only include all compensation earned by the service retiree based on the service retiree's employment with a Texas public educational institution during a month subject to the second EAR warning regardless of when such an amount is paid to the service retiree. The amount shall not include:(1) compensation paid to the service retiree during the applicable months unless the service retiree also earned the compensation based on the service retiree's employment with a Texas public educational institution during a month subject to the second warning;(2) compensation earned by the service retiree in a position that qualifies for the exception under §31.16 of this title (relating to Federally-funded COVID-19 Personnel); and(3) compensation paid to the service retiree that would not qualify as creditable compensation if paid to an active member by an employer for the same services.(c) A service retiree may elect to pay the greater of the two amounts described by subsection (a) of this section. If a retiree elects to pay the greater amount, the retiree must notify TRS of this election in writing.(d) If an employer adjusts the compensation earned by a service retiree in a month subject to a second EAR warning payment under this section but does not adjust the hours or days worked by the retiree relating to that compensation, the amount due shall be adjusted for that payment, and TRS shall request or return any amounts necessary to correct the payment so long as the adjustment is received no later than 12 months after the end of the school year in which the compensation was earned.",
            "sourceNote": "Source Note: The provisions of this §31.6 adopted to be effective November 1, 2021, 46 TexReg 6940; amended to be effective February 1, 2024, 49 TexReg 280."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206401&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206401",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "31",
                "label": "EMPLOYMENT AFTER RETIREMENT"
            },
            "subchapter": {
                "number": "B",
                "label": "EMPLOYMENT AFTER RETIREMENT EXCEPTIONS"
            },
            "rule": {
                "number": "§31.11",
                "label": "Exceptions to Forfeiture of Retirement Annuity"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206395&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "206395",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Service retirees who retired after January 1, 2021, and all disability retirees are subject to the forfeiture requirements in §31.4 of this title (relating to Employment Resulting in Forfeiture of Retirement Annuity) for any month in which the retiree is employed by a public educational institution covered by TRS unless the employment qualifies for an exception under this subchapter.(b) The exceptions to forfeiture of annuities provided in this chapter apply only to retirees who have effectively retired by ending all employment as described in Government Code §824.002 and §29.15 of this title (relating to Termination of Employment) and who do not revoke retirement by becoming employed in any position by Texas public educational institutions in the month immediately following the retiree's effective date of retirement (or in the two months immediately following the person's effective date of retirement if the effective date of retirement is May 31 under §29.14 of this title (relating to Eligibility for Retirement at the End of May)).",
            "sourceNote": "Source Note: The provisions of this §31.11 adopted to be effective November 1, 2021, 46 TexReg 6940."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206395&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206395",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "31",
                "label": "EMPLOYMENT AFTER RETIREMENT"
            },
            "subchapter": {
                "number": "B",
                "label": "EMPLOYMENT AFTER RETIREMENT EXCEPTIONS"
            },
            "rule": {
                "number": "§31.12",
                "label": "Substitute Service"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206396&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "206396",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In this section, \"substitute' means a retiree employed by a Texas public educational institution and paid no more than the daily rate of pay for substitutes as set by the employer to work:(1) on a temporary basis in the place of a current employee(s);(2) in a vacant position for no more than 20 days if the retiree was not the last person to hold the vacant position and the retiree has not previously been employed in that vacant position during the same school year; or(3) on a temporary basis to monitor an in-person class while the classroom teacher temporarily instructs the class virtually.(b) A retiree may be employed in a month solely as a substitute in a public educational institution without forfeiting the annuity payment for that month.(c) A retiree who reports for duty as a daily substitute during any day and works any portion of that day shall be considered to have worked one day.(d) A disability retiree may not be employed as a substitute under this section for more than 90 days in a school year. A disability retiree who works more than 90 days in a substitute position shall forfeit the disability retiree's annuity for the month during which the disability retiree exceeded 90 days and in each subsequent month during the same school year that the disability retiree is employed by a Texas public educational institution.",
            "sourceNote": "Source Note: The provisions of this §31.12 adopted to be effective November 1, 2021, 46 TexReg 6940."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206396&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206396",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "31",
                "label": "EMPLOYMENT AFTER RETIREMENT"
            },
            "subchapter": {
                "number": "B",
                "label": "EMPLOYMENT AFTER RETIREMENT EXCEPTIONS"
            },
            "rule": {
                "number": "§31.13",
                "label": "One-half Time Employment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206397&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "206397",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A retiree may be employed by a Texas public educational institution in any position, other than as a substitute, on as much as a one-half time basis without forfeiting annuity payments for the applicable months of employment. In this section, one-half time basis means no more than 92 hours in a calendar month. The total number of hours allowed for that month may be worked in any arrangement or schedule.(b) Paid time-off, including sick leave, vacation leave, administrative leave, and compensatory time for overtime worked, is employment for purposes of this section and must be included in determining the total amount of time worked in a calendar month and reported to TRS as employment for the calendar month in which it is taken.(c) For the purpose of this section, employment as an instructor for actual course or lab instruction with an institution of higher education (including community and junior colleges and online coursework) in classes taken by students for college credit or classes that are taken to prepare students for college level work shall be counted as a minimum of two clock hours for each clock hour of instruction or time in the classroom or lab in order to reflect instructional time as well as preparation, grading, and other time typically associated with one hour of instruction. If the employer has established a greater amount of preparation time for each hour in the classroom or lab, the employer's established standard will be used to determine the number of courses or labs a retiree may teach under the exception to loss of annuity provided by this section. The equivalent clock hours computed under this subsection must be equal to or less than the number of work hours authorized in subsection (a) of this section for the retiree to be considered as working on a one-half time basis.(d) Employment as an instructor of continuing education, adult education, or classes offered to employers or businesses for employee training, that is not measured or expressed in terms of the number of courses; semester or course hours/credits; or instructional units or other units of time rather than clock hours and for which the students or participants do not receive college credit, must be counted based on the number of clock hours worked.(e) A disability retiree may not be employed on as much as a one-half time basis under this section for more than 90 days in a school year. A disability retiree who works more than 90 days on as much as one-half time basis under this section shall forfeit the disability retiree's annuity for the month during which the disability retiree exceeded 90 days and in each subsequent month during the same school year that the disability retiree is employed by a Texas public educational.(f) For the purposes of calculating the number of days worked by a disability retiree has worked during a school year under this section, working any part of a day counts as working the entire day.",
            "sourceNote": "Source Note: The provisions of this §31.13 adopted to be effective November 1, 2021, 46 TexReg 6940."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206397&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206397",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "31",
                "label": "EMPLOYMENT AFTER RETIREMENT"
            },
            "subchapter": {
                "number": "B",
                "label": "EMPLOYMENT AFTER RETIREMENT EXCEPTIONS"
            },
            "rule": {
                "number": "§31.14",
                "label": "Full-time Employment after 12 Consecutive Month Break in Service"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206398&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "206398",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A service retiree may be employed in any capacity in Texas public education, including as much as full-time, if the service retiree has been separated from service with all Texas public educational institutions for at least 12 full, consecutive calendar months after the retiree's effective date of retirement. The 12-month separation period may be any 12 consecutive calendar months following the month of retirement.(b) During the separation period described by subsection (a) of this section, the service retiree may not be employed in any position or capacity by a public educational institution covered by TRS, including in any position or capacity that would qualify for an exception provided for in this subchapter. Paid time off, including sick leave, vacation leave, administrative leave, and compensatory time for overtime worked, is considered employment for purposes of this subsection.(c) A service retiree who is employed more than one-half time for a Texas public educational institution will be subject to the forfeiture requirements of §31.4 of this title (relating to Employment Resulting in Forfeiture of Retirement Annuity) if the retiree does not meet the separation requirements of this section and the employment does not otherwise qualify for an exception under this subchapter that permits the retiree to work full-time.(d) The exception under this section does not apply to disability retirees.",
            "sourceNote": "Source Note: The provisions of this §31.14 adopted to be effective November 1, 2021, 46 TexReg 6940."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206398&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206398",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "31",
                "label": "EMPLOYMENT AFTER RETIREMENT"
            },
            "subchapter": {
                "number": "B",
                "label": "EMPLOYMENT AFTER RETIREMENT EXCEPTIONS"
            },
            "rule": {
                "number": "§31.15",
                "label": "Tutors under Education Code §33.913"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206399&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "206399",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as provided by §31.18 of this title (relating to Combining EAR Exceptions) and subsection (b) of this section, a retiree may be employed by a Texas public educational institution in a tutoring position that meets the requirements of Section 33.913 of the Education Code for any number of hours or days during a month without being subject to the forfeiture requirements of §31.4 of this title (relating to Employment Resulting in Forfeiture of Retirement Annuity).(b) A disability retiree may not be employed on as a tutor under this section for more than 90 days in a school year. A disability retiree who works more than 90 days on as a tutor under this section shall forfeit the disability retiree's annuity for the month during which the disability retiree exceeded 90 days and in each subsequent month during the same school year that the disability retiree is employed by a Texas public educational.(c) For the purposes of calculating the number of days worked by a disability retiree has worked during a school year under this section, working any part of a day counts as working the entire day.",
            "sourceNote": "Source Note: The provisions of this §31.15 adopted to be effective November 1, 2021, 46 TexReg 6940."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206399&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206399",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "31",
                "label": "EMPLOYMENT AFTER RETIREMENT"
            },
            "subchapter": {
                "number": "B",
                "label": "EMPLOYMENT AFTER RETIREMENT EXCEPTIONS"
            },
            "rule": {
                "number": "§31.16",
                "label": "Federally-funded COVID-19 Personnel"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206400&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "206400",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A service retiree is not subject to the warning, payment, and forfeiture requirements of §31.4 of this title (relating to Employment Resulting in the Forfeiture of Retirement Annuity) if the service retiree is employed by a Texas public educational institution, other than an institution of higher education, in a position performing duties related to the mitigation of student learning loss attributable to the coronavirus disease (COVID-19) pandemic, if the position:(1) is in addition to the normal staffing level at the Texas public educational institution;(2) is funded wholly by federal funds provided under federal law enacted for the purpose of providing relief related to the coronavirus disease (COVID-19) pandemic, including the Coronavirus Aid, Relief, and Economic Security (CARES) Act (15 U.S.C. Section 9001 et seq.), Coronavirus Response and Relief Supplemental Appropriations Act, 2021 (Div. M, Pub. L. No. 116-260), or American Rescue Plan Act of 2021 (Pub. L. No. 117-2); and(3) ends on or before December 31, 2024.(b) A position ends on or before December 31, 2024, if the position no longer exists after that date or if the position is no longer funded with the above-described federal funds after that date.(c) This exception does not apply to disability retirees.",
            "sourceNote": "Source Note: The provisions of this §31.16 adopted to be effective November 1, 2021, 46 TexReg 6940."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206400&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206400",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "31",
                "label": "EMPLOYMENT AFTER RETIREMENT"
            },
            "subchapter": {
                "number": "B",
                "label": "EMPLOYMENT AFTER RETIREMENT EXCEPTIONS"
            },
            "rule": {
                "number": "§31.17",
                "label": "Employment Up to Three Months on a One-time Trial Basis"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206402&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "206402",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A disability retiree may, without forfeiting payment of the retiree's monthly annuity, be employed on a one-time only trial basis on as much as full-time for a period of no more than three consecutive months if the work meets the requirements in subsection (b) of this section and the person complies with the requirements of subsection (c) of this section.(b) The work must occur:(1) in a period, designated by the employee, of no more than three consecutive months; and(2) in a school year that begins after the retiree's effective date of retirement or no earlier than October 1 if the effective date of retirement is August 31.(c) TRS must receive written notice of the retiree's election to take advantage of the exception described by this section. The notice must be made on a form prescribed by TRS and filed with TRS prior to the end of the three-month trial period.(d) Working any portion of a month counts as working a full month for purposes of this section.(e) The three-month exception permitted under this section is in addition to the 90 days of work allowed in §31.12 of this title (relating to Substitute Service) or §31.13 of this title (relating to One-half Time Employment) for a disability retiree.(f) The trial work period may occur in one school year or may occur in more than one school year provided the total amount of time in the trial period does not exceed three months and the months are consecutive.(g) A disability retiree may elect to work on a one-time only trial basis for as much as full time for a period of no more than three consecutive months for each period of disability retirement subject to the requirements of this section.",
            "sourceNote": "Source Note: The provisions of this §31.17 adopted to be effective November 1, 2021, 46 TexReg 6940."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206402&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206402",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "31",
                "label": "EMPLOYMENT AFTER RETIREMENT"
            },
            "subchapter": {
                "number": "B",
                "label": "EMPLOYMENT AFTER RETIREMENT EXCEPTIONS"
            },
            "rule": {
                "number": "§31.18",
                "label": "Combining EAR Exceptions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206403&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "206403",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If, during a calendar month, a retiree works in a position subject to more than one exception under this subchapter or in multiple positions subject to different exceptions under this subchapter and the retiree does not qualify for the twelve-month separation exception under §31.14 of this title (relating to Full-time Employment after 12 Consecutive Month Break in Service), TRS shall use the following standards to determine whether the retiree's employment still meets the requirements of each applicable exception or if the retiree is subject to §31.4 of this title (Employment Resulting in Forfeiture of Retirement Annuity) based on that employment.(b) If a retiree combines substitute service under §31.12 of this title (relating to Substitute Service) with one-half time employment under §31.13 of this title (relating to One-half Time Employment) in a calendar month and the retiree's employment in either position does not qualify for any other exceptions under this subchapter, then the retiree may not work more than 11 days combined during that month in the two or more positions.(c) If, during a calendar month, a retiree works in more than one position and each qualifies as one-half time employment under §31.13 of this title and the retiree's employment in either position does not qualify for any other exceptions under this subchapter, then the retiree may not work more than 92 total hours in the combined positions.(d) If a disability retiree combines substitute service under §31.12 of this title, one-half time employment under §31.13 of this title, or employment as a tutor under §31.15 of this title (relating to Tutors under Education Code §33.913) in a school year, each day worked under any of those three exceptions counts toward the maximum of 90 days that a disability retiree may work under any of the exceptions so that a disability retiree may never work more than a total of 90 days combined under the three exceptions.(e) If, during a calendar month, a retiree works more than one-half time in a position that qualifies for the tutor exception under §31.15 of this title, then the retiree may not work in any other position for a Texas public educational institution without being subject to the forfeiture requirements of §31.4 of this title unless:(1) the other position qualifies as substitute service and all the retiree's employment under the tutor exception under §31.15 of this title also qualifies as substitute service; or(2) the other position qualifies for the tutor exception under §31.15 of this title or the COVID-19 position exception under §31.16 of this title (relating to Federally-funded COVID-19 Personnel).(f) If, during a calendar month, a retiree works in a position that qualifies as substitute or as one-half time or less employment and that position also qualifies for the tutor exception under §31.15 of this title, then the retiree may combine work in that position with any other work that qualifies under the substitute exception under §31.12 of this title and one-half time employment under §31.13 of this title provided the retiree's combined work during the calendar month does not exceed the limits provided by subsection (b) and (c) of this section, as applicable.(g) If, during a calendar month, a service retiree combines the federally-funded COVID-19 position exception under §31.16 of this title with employment under any other exception under this subchapter, then the service retiree's employment under the federally-funded COVID-19 position exception shall be accounted for separately from the service retiree's employment under any other exception under this subchapter. Hours or days worked under the federally-funded COVID-19 exception do not count toward or impact a retiree's employment under any other exception under this subchapter.(h) A service retiree employed under the twelve-month separation exception under §31.14 of this title may be employed up to full-time by one or more Texas public educational institutions in one or more positions without limit under this section.(i) If, during a calendar month, a retiree's position qualifies for more than one exception under this subchapter other than the federally-funded COVID-19 exception under §31.16 of this title, the retiree's position shall be subject to all monthly limits on that position under all applicable exceptions. If the limit under the applicable exceptions conflict or if one exception is more restrictive than the other, the least restrictive exception on a retiree's employment after retirement shall apply. If a service retiree's employment qualifies for the federally-funded COVID-19 exception under §31.16 of this title, it shall only be subject to the requirements of that section.(j) For the purposes of this section, a retiree who works part of a day is considered to have worked the entire day.",
            "sourceNote": "Source Note: The provisions of this §31.18 adopted to be effective November 1, 2021, 46 TexReg 6940."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206403&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206403",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "31",
                "label": "EMPLOYMENT AFTER RETIREMENT"
            },
            "subchapter": {
                "number": "B",
                "label": "EMPLOYMENT AFTER RETIREMENT EXCEPTIONS"
            },
            "rule": {
                "number": "§31.19",
                "label": "Combining EAR Exceptions and Employer Surcharges"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206406&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "206406",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If, during a calendar month, a retiree works in a position subject to more than one exception under this subchapter or in multiple positions subject to different exceptions under this subchapter, TRS shall use the following standards to determine whether the retiree's employment requires an employer to pay the return-to-work pension surcharge under §31.3 of this title (relating to Return-to-Work Employer Pension Surcharges).(b) If a retiree combines substitute service under §31.12 of this title (relating to Substitute Service) with one-half time employment under §31.13 of this title (relating to One-half Time Employment) in a calendar month, then the employer employing the retiree must remit the employer surcharge to TRS if the retiree works more than 11 total days in both positions combined.(c) If, during a calendar month, a retiree combines substitute service under §31.12 of this title with work that qualifies for the tutor exception under §31.15 of this title (relating to Tutors under Education Code §33.913), then the employer must remit the employer surcharge to TRS based on that combined employment unless:(1) all of the retiree's employment under the tutor exception also qualifies as substitute service; or(2) the retiree's non-substitute employment under the tutor exception does not exceed 92 hours in the calendar month when not combined with the retiree's substitute service and the retiree's total employment does not exceed 11 total days worked under both exceptions during the month.(d) If, during a calendar month, a retiree combines one-half time employment under §31.13 of this title with non-substitute work under the tutor exception under §31.15 of this title, the employer must remit the employer surcharge to TRS if the retiree works more than 92 combined hours in all positions. If the retiree's employment under the tutor exception also qualifies as substitute service, then the employer must remit the employer surcharge if the retiree works more than 11 total days during the month in the combined tutor position and the non-tutor one-half time position.(e) If, during a calendar month, a service retiree combines the federally-funded COVID-19 position exception under §31.16 of this title (relating to Federally-funded COVID-19 Personnel) solely with employment that qualifies as substitute service under §31.12 of this title, then an employer is not required to remit an employer surcharge to TRS for that retiree.(f) If, during a calendar month, a service retiree combines the federally-funded COVID-19 position exception under §31.16 of this title with one-half time employment under §31.13 of this title, any hours worked by a retiree under the federally-funded COVID-19 exception will not count toward the 92 hours under the one-half time employment exception that a retiree may work before the employer must remit the employer surcharge.(g) If, during a calendar month, a service retiree combines the federally-funded COVID-19 position exception under §31.16 of this title with work under the full-time employment after a twelve-month separation exception under §31.14 of this title (relating to Full-time Employment after 12 Consecutive Month Break in Service), any hours or days worked by a retiree under the federally-funded COVID-19 exception will not count toward the determination of whether the retiree worked more than 92 total hours during that month and the employer surcharge is due for that month.(h) If, during a calendar month, a service retiree combines non-substitute work under either the tutor exception under §31.15 of this title with work under the federally-funded COVID-19 position exception under §31.16 of this title, any hours or days the retiree works under the federally-funded COVID-19 position exception shall not be counted in determining whether the retiree's worked more than 92 hours during the month and the employer surcharge is due for that month.(i) If, during a calendar month, a retiree's employment in a position qualifies for the federally-funded COVID-19 position exception under §31.16 of this title and another exception under this subchapter that is subject to surcharge, work performed in that position is not subject to surcharge so long as the work continues to qualify for the federally-funded COVID-19 position exception.(j) If, during a calendar month, a retiree's employment in a position that qualifies for as substitute service under §31.12 of this title and another exception under this subchapter that is subject to surcharge, work performed in that position is not subject to surcharge so long as the work continues to qualify as substitute service and is not combined with work in another position that is subject to surcharge during the same month.(k) For the purposes of this section, a retiree who works part of a day is considered to have worked the entire day.",
            "sourceNote": "Source Note: The provisions of this §31.19 adopted to be effective November 1, 2021, 46 TexReg 6940."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206406&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206406",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "31",
                "label": "EMPLOYMENT AFTER RETIREMENT"
            },
            "subchapter": {
                "number": "C",
                "label": "DISABILITY RETIREE COMPENSATION LIMITS"
            },
            "rule": {
                "number": "§31.31",
                "label": "Disability Retiree Report of Excess Compensation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206404&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "206404",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A disability retiree who applies for disability retirement after August 31, 2007, and whose effective date of retirement is after August 31, 2007, shall report to TRS compensation earned for work performed during disability retirement in accordance with this section.(b) A disability retiree is not subject to the reporting requirement for compensation earned in a calendar year in which the disability retiree's annual gross disability retirement annuity payments from TRS total $2,000 or less.(c) Unless excluded under subsection (a) or (b) of this section, a disability retiree is required to report to TRS compensation earned in a calendar year when the compensation exceeds the greater of the disability retiree's highest salary in any school year before disability retirement or $40,000.(d) The reporting requirement applies to compensation earned in the first full calendar year that begins following the effective date of disability retirement and to compensation earned in each subsequent calendar year of disability retirement.(e) Compensation that is required to be reported to TRS is payment, earnings, or net income for employment, work, labor, or services, whether performed for a Texas public education institution or another employer or entity. Compensation includes but is not limited to the following:(1) \"Wages\" as defined under §3121 of the Internal Revenue Code of 1986 that are subject to Federal Insurance Contributions Act (\"FICA\") Social Security or Medicare employment taxes;(2) Salary and wages, even if not subject to FICA taxes because of a technical exclusion of a type of employer or type of employment;(3) Self-employment earnings, including net income from a trade or business;(4) Compensation for work performed as an independent contractor;(5) Net income earned as a sole proprietor or partner in a business; and(6) Net income earned as an S corporation shareholder.(f) A disability retiree shall submit a report required by this section to TRS after the end of the calendar year in which the compensation was earned but no later than May 1 of the calendar year following the year for which the report is due. A disability retiree shall submit all required information in the format designated by TRS.(g) TRS may audit the compensation report of a disability retiree and require the disability retiree to provide supporting documentation, including copies of tax returns, W-2 forms, 1099 forms, and employment payroll records as necessary to verify the accuracy of a compensation report.(h) TRS may obtain information from other sources with regard to the compensation earned by a disability retiree in order to administer applicable requirements.(i) A report is due under this section for a calendar year in which one or more annuities have been forfeited pursuant to §31.32 of this title (relating to Forfeiture of Disability Retirement Annuity Payments Due to Excess Compensation).",
            "sourceNote": "Source Note: The provisions of this §31.31 adopted to be effective November 1, 2021, 46 TexReg 6940."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206404&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206404",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "31",
                "label": "EMPLOYMENT AFTER RETIREMENT"
            },
            "subchapter": {
                "number": "C",
                "label": "DISABILITY RETIREE COMPENSATION LIMITS"
            },
            "rule": {
                "number": "§31.32",
                "label": "Forfeiture of Disability Retirement Annuity Payments Due to Excess Compensation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206405&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "206405",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If a disability retiree earned compensation in excess of the applicable limit in §31.31(c) of this title (relating to Disability Retiree Report of Excess Compensation) in a calendar year for which a report is due, the disability retiree's annuities shall be forfeited in accordance with this section, beginning with the annuity payable for May of the calendar year following the year for which the report is due.(b) A forfeiture of annuity payments under this section shall continue until the disability retiree submits a new report to TRS showing that the compensation has ceased or decreased sufficiently that it will no longer exceed the applicable limit. TRS will resume annuity payments following the receipt of the retiree's new report. Annuity payments shall be resumed no earlier than the payment for the calendar month following the month in which the compensation ceased or decreased. An annuity payment is not due for a month in which a disability retiree earns compensation that caused the annuity for the month to be forfeited prior to the retiree's new report, even if the total compensation for the calendar year is below the applicable limit in §31.31(c) of this title.(c) A disability retiree who forfeits one or more annuities from TRS is also required to pay the total monthly cost of TRS-Care coverage as described in §41.5(f) of this title (relating to Payment of Contributions).(d) Annuity payments are forfeited for a disability retiree who is required to file a report but fails to do so or for a disability retiree who fails to report all compensation required to be reported, beginning with annuity payments for the month following the month in which TRS discovers the failure.(e) Nothing in this section shall be construed to prevent TRS from collecting the gross amount of ineligible annuity payments if TRS determines that a disability retiree knowingly failed to report compensation as required and the failure resulted in payment of annuities by TRS that the disability retiree was not eligible to receive.(f) Forfeiture of annuity payments under this section shall not extend the guaranteed period of annuity payments, if the disability retiree elected a payment option described under Government Code §824.308(c)(3) or (4).",
            "sourceNote": "Source Note: The provisions of this §31.32 adopted to be effective November 1, 2021, 46 TexReg 6940."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206405&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206405",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "31",
                "label": "EMPLOYMENT AFTER RETIREMENT"
            },
            "subchapter": {
                "number": "C",
                "label": "DISABILITY RETIREE COMPENSATION LIMITS"
            },
            "rule": {
                "number": "§31.33",
                "label": "Applicability of Excess Compensation Provisions to Employment in Texas Public Educational Institutions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100927&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100927",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A disability retiree who earns compensation for employment by a public educational institution covered by TRS is subject to §31.31 of this title (relating to Disability Retiree Report of Excess Compensation), §31.32 of this title (relating to Forfeiture of Disability Retirement Annuity Payments Due to Excess Compensation), and §41.5 of this title (relating to Payment of Contributions), regardless of whether the employment results in the forfeiture of the annuity in the month in which the employment occurs, as provided for in §31.4 of this title (relating to Employer Resulting in the Forfeiture of Retirement Annuity).",
            "sourceNote": "Source Note: The provisions of this §31.33 adopted to be effective November 1, 2021, 46 TexReg 6940."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100927&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100927",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "33",
                "label": "LEGAL CAPACITY"
            },
            "rule": {
                "number": "§33.1",
                "label": "Selection of Plan for Payment of Death Claim for a Minor Child"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=129424&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "129424",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Any selection of a plan for payment of a death claim in favor of a minor child who has not had the disabilities of minority removed must be made by the guardian of the estate of the child, by a person authorized in a court order, or as otherwise provided by the law.",
            "sourceNote": "Source Note: The provisions of this §33.1 adopted to be effective January 1, 1976; amended to be effective June 8, 1999, 24 TexReg 4249; amended to be effective March 12, 2003, 28 TexReg 2110."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=129424&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "129424",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "33",
                "label": "LEGAL CAPACITY"
            },
            "rule": {
                "number": "§33.2",
                "label": "Transactions on Behalf of a Minor Child or Incapacitated Person"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100922&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100922",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Retirement plan transactions on behalf of a minor child who has not had the disabilities of minority removed must be directed by the guardian of the estate of the child, by a person authorized in a court order, or as otherwise provided by the law.(b) Retirement plan transactions on behalf of a person who is legally incapacitated must be made as directed by the guardian of the estate of the incapacitated person or as otherwise provided by the law.",
            "sourceNote": "Source Note: The provisions of this §33.2 adopted to be effective January 1, 1976; amended to be effective June 8, 1999, 24 TexReg 4249; amended to be effective March 12, 2003, 28 TexReg 2110; amended to be effective March 8, 2007, 32 TexReg 1091."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100922&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100922",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "33",
                "label": "LEGAL CAPACITY"
            },
            "rule": {
                "number": "§33.3",
                "label": "Selection of Plan for Payment of Death Claim for an Incapacitated Person"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100923&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100923",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Any selection of a plan for payment of a death claim for a person who is legally incapacitated must be made by the guardian of the estate of the incapacitated person or as otherwise provided by the law.",
            "sourceNote": "Source Note: The provisions of this §33.3 adopted to be effective January 1, 1976; amended to be effective March 12, 2003, 28 TexReg 2110."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100923&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100923",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "33",
                "label": "LEGAL CAPACITY"
            },
            "rule": {
                "number": "§33.4",
                "label": "Selection of Retirement Plan for an Incapacitated Person"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=129425&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "129425",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Any selection of a retirement plan for a person who is legally incapacitated must be made by the guardian of the estate of the incapacitated person or as otherwise provided by the law.",
            "sourceNote": "Source Note: The provisions of this §33.4 adopted to be effective January 1, 1976; amended to be effective March 12, 2003, 28 TexReg 2110."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=129425&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "129425",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "33",
                "label": "LEGAL CAPACITY"
            },
            "rule": {
                "number": "§33.5",
                "label": "Approval of Designated Beneficiary"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100925&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100925",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Any designation of beneficiary for any purpose on behalf of a person who is legally incapacitated must be approved or authorized by a court of competent jurisdiction or as otherwise provided by the law.",
            "sourceNote": "Source Note: The provisions of this §33.5 adopted to be effective January 1, 1976; amended to be effective March 12, 2003, 28 TexReg 2110; amended to be effective March 8, 2007, 32 TexReg 1091."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100925&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100925",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "33",
                "label": "LEGAL CAPACITY"
            },
            "rule": {
                "number": "§33.6",
                "label": "Power of Attorney"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100926&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100926",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Teacher Retirement System of Texas (TRS) acknowledges the authority of an attorney in fact under a power of attorney that is durable and meets the requirements of the laws and rules in effect at the time the power of attorney was executed.(b) A power of attorney is considered durable if it contains a statement showing the principal's intent that the authority of the attorney in fact may be exercised in the event of the principal's subsequent incapacity or disability.(c) The authority of an attorney in fact under a durable power of attorney or a statutory durable power of attorney is acknowledged by TRS to the extent the authority is granted in the power of attorney.",
            "sourceNote": "Source Note: The provisions of this §33.6 adopted to be effective January 1, 1976; amended to be effective March 12, 2003, 28 TexReg 2110."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100926&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100926",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "33",
                "label": "LEGAL CAPACITY"
            },
            "rule": {
                "number": "§33.7",
                "label": "Acceptable Signatures"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151252&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "151252",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A person who has legal capacity but is physically unable to sign or make a mark may be assisted by a disinterested witness. For forms which require notarization, the notary attesting to the signature should make a statement on the document that assistance was requested and should include the name of the person assisting or signing the document. If no notary attestation is required on the form, a disinterested witness to the signing should make a statement on the document that assistance was requested, include the name of the person assisting, and sign the statement.(b) A notary may sign the name of a person who has legal capacity but is physically unable to sign or make a mark if directed to do so by the individual, in the presence of a disinterested witness. The notary who signs the document should make a statement on the document that assistance was requested and that the signature was affixed by the notary in the presence of a disinterested witness whose name should be provided.",
            "sourceNote": "Source Note: The provisions of this §33.7 adopted to be effective March 12, 2003, 28 TexReg 2110."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151252&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "151252",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "35",
                "label": "PAYMENTS BY TRS"
            },
            "rule": {
                "number": "§35.1",
                "label": "Payment Error"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151251&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "151251",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If any error in the records, including errors caused by the administrative process, results in any member, retiree, beneficiary, or alternate payee, as that term is defined under Chapter 804 of the Government Code, including an alternate payee under §804.005 of the Government Code, receiving more or less than the recipient would have been entitled to receive had the records been correct, the Teacher Retirement System of Texas (TRS) shall correct such error and so far as practicable shall adjust any future payment in such a manner that the actuarial equivalent of the benefit to which the recipient was correctly entitled will be paid. The adjustment may be made to one or more future payments or to payments for as long as the life of the recipient, at the discretion of TRS.(b) If no future payments are due, TRS may recover an overpayment in any manner that would be permitted for the collection of any other debt.(c) TRS may correct an overpayment of benefits to a person entitled to receive payments from TRS by the method described in subsection (a) of this section only for an overpayment made during the three years preceding the date TRS discovers or discovered the overpayment.(d) TRS may not recover from a person entitled to receive payments from TRS any overpayment made more than three years before the discovery of the overpayment.(e) The limitations in subsections (c) and (d) of this section do not apply to an overpayment that a reasonable person should know the person is not entitled to receive.(f) This section and §802.1024 and §802.1025 of the Government Code do not apply to the collection of any payment made after the death of an annuitant if such payment was not due because of the death of the annuitant but was paid because TRS did not discover or receive notice of the annuitant's death.",
            "sourceNote": "Source Note: The provisions of this §35.1 adopted to be effective January 1, 1976; amended to be effective March 12, 2003, 28 TexReg 2110; amended to be effective April 28, 2004, 29 TexReg 3969; amended to be effective March 8, 2007, 32 TexReg 1091; amended to be effective April 1, 2011, 36 TexReg 2000."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151251&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "151251",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "35",
                "label": "PAYMENTS BY TRS"
            },
            "rule": {
                "number": "§35.2",
                "label": "Direct Rollovers from TRS"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170794&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170794",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Notwithstanding any provision of the retirement plan to the contrary that would otherwise limit a distributee's election under this section, an eligible distributee of an eligible rollover distribution from the Teacher Retirement System of Texas (TRS) may elect, at the time and in the manner prescribed by TRS, to have any portion of the distribution paid directly to an eligible retirement plan or a Roth IRA specified by the distributee in a direct rollover, to the extent permitted by Internal Revenue Code of 1986 (IRC), as amended, and guidance issued thereunder.(b) To the extent permitted under the IRC, as amended, an individual beneficiary of a TRS participant, other than a surviving spouse or alternate payee, who is an eligible distributee of an eligible rollover distribution from TRS may elect, at the time and in the manner prescribed by TRS, to have any portion of the distribution paid directly to a traditional or Roth individual retirement account (IRA) or individual retirement annuity established for the purpose of receiving the distribution, specified by the distributee in a direct rollover, that shall be treated as an inherited IRA or annuity. A trust that is a beneficiary may be treated as a beneficiary eligible to make such an election only to the extent permitted under the IRC, as amended.(c) An eligible rollover distribution may generally only be transferred in a direct rollover to an \"eligible retirement plan.\" An \"eligible retirement plan\" must use a trust established within the United States of America (\"U.S.\") and maintained as a U.S. domestic trust, a custodial account that satisfies IRC Section 401(f)(2) (generally requiring a U.S. entity), or an annuity contract issued by an insurance company licensed to do business in the U.S.(1) Notwithstanding the requirement of this subsection, a direct rollover may be made to a foreign trust that is part of a stock bonus, pension, or profit-sharing plan established outside the U.S. if the receiving foreign trust would qualify for exemption from tax under IRC §401(a) and §501(a), except for the fact that it is a trust created or organized outside the U.S. To claim this exemption, in addition to any other information required by TRS, the distributee must furnish a written statement by an authorized official of the foreign trust stating that the foreign trust is a trust described under IRC §402(d). TRS will not make a transfer to the foreign trust without this statement.(2) For a rollover distribution to an IRA, the IRA must be a trust created or organized in the U.S. and must be maintained at all times as a domestic trust in the U.S., the trustee of which must be a U.S. bank as defined in IRC §408(n) and the regulations thereunder, or who is listed as an approved non-bank trustee or custodian under Announcement 2007-47 or any successor publication of the IRS thereto.(3) For a rollover distribution to a 403(b) custodial account or a 401(a) or 457(b) plan, the assets of which are held in a custodial account, the trustee must be a U.S. bank as defined in IRC §408(n) and the regulations thereunder, or a non-bank trustee or custodian who is listed as an approved non-bank trustee or custodian under Announcement 2007-47 or any successor publication of the IRS thereto.(d) TRS shall develop procedures to implement this section in accordance with the IRC, §401(a)(31), as amended, and related regulations. Terms used in this section, including eligible rollover distribution, eligible retirement plan, distributee, and direct rollover, shall have the meaning assigned in the IRC, as amended, and guidance issued thereunder.",
            "sourceNote": "Source Note: The provisions of this §35.2 adopted to be effective March 12, 2003, 28 TexReg 211; amended to be effective May 22, 2008, 33 TexReg 4007; amended to be effective April 1, 2011, 36 TexReg 2000."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170794&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170794",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "39",
                "label": "PROOF OF AGE"
            },
            "rule": {
                "number": "§39.1",
                "label": "Establishment of Date of Birth"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196247&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "196247",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Date of birth may be established by any one of the following:(1) an original birth certificate or a legible unaltered copy thereof;(2) a delayed birth certificate in accordance with Chapter 192, Subchapter B, Health and Safety Code, or a legible unaltered copy provided by the Bureau of Vital Statistics;(3) a delayed birth certificate issued by the state in which birth occurred or a legible unaltered copy provided by the registration agency;(4) an original baptismal record or parish record wherein the age of the individual at the time of baptism is given, or a legible unaltered copy of such record;(5) a family Bible record when properly abstracted or copied and accompanied by the prescribed affidavit forms issued by the Teacher Retirement System of Texas (TRS);(6) a report from the Bureau of Census stating the age of the individual at a census year when the individual was less than 20 years of age;(7) a signed letter from the Social Security Administration indicating a date of birth which has been accepted by Social Security Administration;(8) naturalization or citizenship papers showing the individual's date of birth;(9) for a member, an original birth certificate or a legible unaltered copy thereof when there is no given name listed for the infant as long as it is consistent with other birth information in the TRS file;(10) an alien registration card;(11) a hospital birth record signed by the administrator or custodian of records of the hospital;(12) a U.S. passport;(13) a state issued driver license or state issued ID card;(14) a U.S. or state issued military ID; or(15) any other evidence of age as may be approved by TRS.(b) If there is any question concerning a copy of the documents listed in this section, a certified copy of the document may be required.",
            "sourceNote": "Source Note: The provisions of this §39.1 adopted to be effective January 1, 1976; amended to be effective July 6, 1981, 6 TexReg 2222; amended to be effective January 24, 1992, 17 TexReg 255; amended to be effective March 12, 2003, 28 TexReg 2111; amended to be effective April 1, 2011, 36 TexReg 2000; amended to be effective December 23, 2014, 39 TexReg 10028."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196247&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "196247",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREE HEALTH CARE BENEFITS (TRS-CARE)"
            },
            "rule": {
                "number": "§41.1",
                "label": "Initial Enrollment Periods for the Health Benefit Program under the Texas Public School Retired Employees Group Benefits Act (TRS-Care)"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196248&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "196248",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The initial enrollment period in TRS-Care for eligible TRS retirees who take a service retirement and who are eligible to enroll in TRS-Care at the time of retirement expires at the end of the later of:(1) the last day of the month that is 3 consecutive calendar months, but in no event less than 90 days, after their effective retirement date; or(2) the last day of the month that is 3 consecutive calendar months, but in no event less than 90 days, following the last day of the month in which their election to retire is received by TRS.(b) The initial enrollment period in TRS-Care for eligible TRS disability retirees expires at the end of the last day of the month that is 3 consecutive calendar months, but in no event less than 90 days, after the date that the disability retirement is approved by the TRS Medical Board.(c) The initial enrollment period in TRS-Care for an eligible surviving spouse of a deceased retiree and for an eligible surviving dependent child of a deceased retiree expires on the last day of the month that is 3 consecutive calendar months, but in no event less than 90 days, after the retiree died.(d) The initial enrollment period in TRS-Care for an eligible surviving spouse of a deceased active member and for an eligible surviving dependent child of a deceased active member expires on the last day of the month that is 3 consecutive calendar months, but in no event less than 90 days, after the active member died.(e) Notwithstanding the other provisions of this section, a participant shall be entitled to enroll in TRS-Care:(1) under the additional enrollment opportunities found in Rule 41.2 of this title; and(2) under applicable law, including all applicable COBRA rights under the Federal Public Health Service Act.(f) If a retiree fails to enroll a newly eligible spouse or dependent child or if a surviving spouse fails to enroll a newly eligible dependent child within the time periods set out in subsection (e) of this section, the retiree or surviving spouse will not be able to enroll the spouse or dependent child in TRS-Care until a subsequent enrollment period.",
            "sourceNote": "Source Note: The provisions of this §41.1 adopted to be effective April 7, 1987, 12 TexReg 1000; amended to be effective November 6, 1987, 12 TexReg 3926; amended to be effective June 15, 1999, 24 TexReg 4460; amended to be effective March 12, 2003, 28 TexReg 2112; amended to be effective August 25, 2004, 29 TexReg 8128; amended to be effective February 9, 2006, 31 TexReg 709; amended to be effective September 10, 2009, 34 TexReg 6121; amended to be effective December 22, 2014, 39 TexReg 10028; amended to be effective January4,2018, 42 TexReg 7720; amended to be effective August 15, 2019, 44 TexReg 4189."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196248&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "196248",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREE HEALTH CARE BENEFITS (TRS-CARE)"
            },
            "rule": {
                "number": "§41.2",
                "label": "Additional Enrollment Opportunities"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196249&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "196249",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Age 65 Enrollment Opportunity.(1) Upon reaching 65 years of age, a retiree or surviving spouse is eligible to be enrolled in TRS-Care under terms, conditions and limitations established by the trustee unless expelled from the program under provisions of Chapter 1575, Insurance Code (the \"Age 65 Enrollment Opportunity\"). The retiree or surviving spouse may select any coverage provided under TRS-Care for which the individual or a dependent is otherwise eligible.(2) The enrollment period for an individual who becomes eligible for coverage under paragraph (1) of this subsection shall begin on the date the individual reaches 65 years of age and ends 31 calendar days from the end of the month in which the individual reaches 65 years of age. To make an effective election, a completed TRS-Care application must be received by TRS no later than the end of this enrollment period.(b) Special Enrollment Opportunity under the Health Insurance Portability and Accountability Act (HIPAA).(1) An individual who becomes eligible for coverage under the special enrollment provisions of HIPAA may elect to enroll in TRS-Care.(2) The enrollment period for an individual who becomes eligible for coverage due to a special enrollment event under paragraph (1) of this subsection shall be the 31 calendar days immediately after the date of the special enrollment event. To make an effective election, a completed TRS-Care application must be received by TRS within this 31-day period.(c) Enrollment Opportunity Established by TRS. An eligible individual may enroll in TRS-Care during an enrollment period established by TRS.(d) This section does not affect the right of a TRS service retiree or surviving spouse enrolled in a TRS-Care plan to drop coverage or drop dependents at any time.",
            "sourceNote": "Source Note: The provisions of this §41.2 adopted to be effective August 25, 2004, 29 TexReg 8128; amended to be effective February 9, 2006, 31 TexReg 709; amended to be effective March 25, 2008, 33 TexReg 2553; amended to be effective September 1, 2011, 36 TexReg 5378; amended to be effective January 6, 2013, 37 TexReg 10248; amended to be effective December 22, 2014, 39 TexReg 10028; amended to be effective November 14, 2017, 42 TexReg 6378; amended to be effective August 15, 2019, 44 TexReg 4189."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196249&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "196249",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREE HEALTH CARE BENEFITS (TRS-CARE)"
            },
            "rule": {
                "number": "§41.3",
                "label": "Retirees Advisory Committee"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227125&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227125",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The task and purpose of the Retirees Advisory Committee (Committee) is to:(1) hold public hearings on group insurance benefits;(2) recommend to the Board of Trustees of TRS (Board) minimum standards and features of the plan or plans that it considers appropriate; and(3) recommend to the Board desirable changes in rules and legislation affecting the program.(b) The Board will appoint members and officers of the Committee.(c) A majority of the Committee will constitute a quorum.(d) The executive director of TRS will provide a secretary to the Committee to prepare minutes of the Committee's meetings. The executive director shall be custodian of the records of the Committee.(e) The executive director may designate the time, dates, and place of the meetings of the Committee. The Committee shall meet at least twice per year, and at the call of the Board.(f) In the event of an emergency, a majority of the Committee's members may call a meeting by notifying the executive director in writing at least 10 days before the meeting.(g) The executive director shall file all meeting notices for the Committee as required by the Texas Open Meetings law.(h) The Committee will report to the Benefits Committee of the Board or directly to the Board as appropriate.",
            "sourceNote": "Source Note: The provisions of this §41.3 adopted to be effective April 6, 1987, 12 TexReg 1000; amended to be effective June 15, 1999, 24 TexReg 4460; amended to be effective March 12, 2003, 28 TexReg 2112; amended to be effective August 15, 2019, 44 TexReg 4189."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227125&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227125",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREE HEALTH CARE BENEFITS (TRS-CARE)"
            },
            "rule": {
                "number": "§41.4",
                "label": "Employer Health Benefit Surcharge"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187283&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "187283",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) When used in this section, the term \"employer\" has the meaning given in §821.001(7), Government Code.(b) For each report month a retiree is enrolled in TRS-Care and working for an employer for more than 92 hours in that calendar month, the employer that reports the employment of the retiree on the Employment of Retired Members Report to TRS shall pay monthly to the Retired School Employees Group Insurance Fund (the Fund) a surcharge established by the Board of Trustees of TRS.(c) The criteria used to determine if the retiree is working more than 92 hours in that calendar month are the same as the criteria for determining one-half time employment under §31.13 of this title (relating to One-half Time Employment) even if the retiree's employment also qualifies for an exception under §31.14 of this title (relating to Full-time Employment after 12 Consecutive Month Break in Service) or §31.15 of this title (relating to Tutors under Education Code §33.913).(d) The surcharge is also owed by the employer on any retiree who is enrolled in TRS-Care, is working for a third party entity but is working for more than 92 hours in that calendar month and who is considered an employee of that employer under §824.601(d) of the Government Code.(e) The surcharge under this section is not owed:(1) by an employer for any retiree who retired from TRS before September 1, 2005; or(2) by an employer for a retiree reported as working under the exception for substitute service as provided in §31.12 of this title (relating to Substitute Service) unless that retiree combines substitute service under §31.12 of this title with other non-substitute employment with the same or another employer or third party entity in the same calendar month;(3) by an employer for any retiree that is employed in multiple positions during a calendar month and does not exceed the limits for such combined employment under §31.19 of this title (relating to Combining EAR Exceptions and Employer Surcharges); or(4) by an employer for any service retiree that is employed in a position that qualifies as a federally-funded COVID-19 position under §31.16 of this title (relating to Federally-funded COVID-19 Personnel) and Government Code §824.6021.(f) If more than one employer reports the employment of a retiree who is enrolled in TRS-Care to TRS during any part of a month, the surcharge under this section required to be paid into the Fund by each reporting employer for that month is the total amount of the surcharge due that month divided by the number of reporting employers. The pro rata share owed by each employer is not based on the number of hours respectively worked by the retiree for each employer, nor is it based on the number of days respectively worked during the month by the retiree for each employer.(g) If a retiree who is enrolled in TRS-Care is employed concurrently by one or more employers in more than one position, the surcharge is owed if the combined employment exceeds the limits for such combined employment under §31.19 of this title.(h) The employer shall maintain the confidentiality of any information provided to the employer under this section and shall use the information only as needed to carry out the purposes stated in this section and related applicable rules or statutes.",
            "sourceNote": "Source Note: The provisions of this §41.4 adopted to be\r\neffective January 10, 2006, 31 TexReg 166; amended to be effective\r\nJune 8, 2008, 33 TexReg 4331; amended to be effective June 28, 2012,\r\n37 TexReg 4601; amended to be effective June 20, 2013, 38 TexReg 3801;\r\namended to be effective August 15, 2019, 44 TexReg 4189; amended to\r\nbe effective November 1, 2021, 46 TexReg 6943; amended to be effective\r\nDecember 30, 2025, 50 TexReg 8618."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187283&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "187283",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREE HEALTH CARE BENEFITS (TRS-CARE)"
            },
            "rule": {
                "number": "§41.5",
                "label": "Payments of Contributions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=186606&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "186606",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Retirees, surviving spouses, and surviving dependent children or their representative (collectively, \"participants\") shall pay monthly contributions as set by the trustee for their and their dependents' participation in TRS-Care.(b) To be eligible for TRS-Care coverage, a participant must authorize the trustee in writing to deduct the contribution amount from the annuity payment. After such authorization, the trustee may deduct the amount of the contribution from the annuity payment.(c) If the amount of the contribution is more than the amount of the annuity payment, the participant will be billed directly by TRS or the TRS-Care administrator for the entire contribution amount.(d) Failure to timely pay the full amount of a required contribution for coverage of a dependent or a surviving dependent child will result in termination of coverage for the dependent or surviving dependent child at the end of the month for which the last contribution was made.(e) Failure to timely pay the full amount of a required contribution for coverage of a retiree or a surviving spouse will result in termination of coverage for the retiree or surviving spouse at the end of the month for which the last contribution was made.(f) A disability retiree whose annuity payments are forfeited under §31.36 of this title (Relating to Forfeiture of Disability Retirement Annuity Payments Due to Excess Compensation) shall pay the total monthly cost of coverage, as determined by the trustee, attributable to the participation of that disability retiree and the dependents of that disability retiree during the months for which the disability retiree's annuity payments are forfeited. A disability retiree shall pay the total monthly cost of coverage starting with the calendar month for which the first annuity payment is forfeited. The disability retiree shall continue to pay the total monthly cost of coverage for each month of coverage in which the annuity payment for that month is forfeited in accordance with §31.36 of this title. Nothing in this section shall be construed to prevent TRS from collecting the total monthly cost of coverage for months in which annuities should have been but were not forfeited if TRS determines that a disability retiree knowingly failed to report compensation as required and the failure resulted in payment of annuities by TRS that the disability retiree was not eligible to receive.(g) Notwithstanding subsections (d) and (e) of this section, a disability retiree whose annuity payments are forfeited under §31.36 of this title who fails to timely pay the full amount of a required contribution for coverage attributable to his participation or that of his dependents, including but not limited to amounts found due and owing pursuant to a TRS determination that a disability retiree knowingly failed to report compensation as required and the failure resulted in payment of annuities by TRS that the disability retiree was not eligible to receive, shall have coverage under TRS-Care for himself and his dependents suspended unless TRS-Care receives full payment of all costs of coverage currently due and owing within thirty-one (31) days after TRS-Care mails written notice to the disability retiree of the current amount due and owing. Under such circumstances, the suspension of coverage will be effective at midnight of the last day of the month in which TRS-Care mailed the above written notice to the disability retiree of the current amount due and owing. During such a suspension, coverage under TRS-Care will cease and the costs of coverage for TRS-Care will no longer accrue.(h) If TRS resumes payment of an annuity to a disability retiree whose coverage has been suspended as described in subsection (g) of this section, the following shall apply:(1) Such disability retiree shall pay, no later than the last day of the month in which TRS resumes annuity payments to the disability retiree, all costs of coverage due and owing attributable to the participation of that disability retiree and the dependents of that disability retiree, including past due amounts for coverage prior to the suspension and the costs of coverage for all months during which the disability retiree's annuity payments are resumed, if any.(2) Upon payment, reinstatement of TRS-Care coverage shall be effective the first day of the earliest month for which the disability retiree's annuity payments are resumed.(3) If payment in full of all required contributions then due and owing is not timely received by TRS-Care, then:(A) TRS-Care coverage for the dependents of that disability retiree shall be terminated effective the last day of the month in which the dependents' coverage was suspended under subsection (g) of this section;(B) TRS-Care coverage for the disability retiree shall be terminated effective the last day of the last month in which the disability retiree's coverage was suspended under subsection (g) of this section.",
            "sourceNote": "Source Note: The provisions of this §41.5 adopted to be effective April 7, 1987, 12 TexReg 1000; amended to be effective November 6, 1987, 12 TexReg 3926; amended to be effective March 12, 2003, 28 TexReg 2112; amended to be effective February 9, 2006, 31 TexReg 709; amended to be effective March 27, 2008, 33 TexReg 2554; amended to be effective January 6, 2013, 37 TexReg 10248; amended to be effective January 4, 2018, 42 TexReg 7720."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=186606&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "186606",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREE HEALTH CARE BENEFITS (TRS-CARE)"
            },
            "rule": {
                "number": "§41.6",
                "label": "Required Contributions from Public Schools"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196251&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "196251",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) On a monthly basis, each public school shall contribute the then-applicable required amount under§1575.204(a), Insurance Code, of the salary of each active employee to TRS for deposit in the Retired School Employees Group Insurance Fund. The public school shall make the contribution at the same time and in the same manner in which the public school delivers retirement contributions. Any waiver granted to a public school under Government Code §825.408(a) does not apply to the contribution under this section.(b) For purposes of this section, \"active employee\" means a contributing member of TRS who is employed by a public school and is not entitled to coverage under a plan provided under Chapter 1551 or Chapter 1601, Insurance Code.(c) For purposes of this section, \"public school\" means a school district; another educational district whose employees are TRS members; a regional education service center established under Chapter 8, Education Code; or an open-enrollment charter school established under Subchapter D, Chapter 12, Education Code.(d) TRS may take corrective action against a public school that fails to make the required contribution in accordance with the requirements of this section, including but not limited to placement of a warrant hold with the Comptroller of Public Accounts.",
            "sourceNote": "Source Note: The provisions of this §41.6 adopted to be effective February 29, 2004, 29 TexReg 1669; amended to be effective February 9, 2006, 31 TexReg 709; amended to be effective November 14, 2017, 42 TexReg 6378."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196251&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "196251",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREE HEALTH CARE BENEFITS (TRS-CARE)"
            },
            "rule": {
                "number": "§41.7",
                "label": "Effective Date of Coverage"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196252&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "196252",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as allowed by subsection (c) of this section, for TRS members who take a service or disability retirement and enroll in coverage during their initial enrollment period as described in §41.1 of this title (relating to Initial Enrollment Periods for the Health Benefits Program Under the Texas Public School Retired Employees Group Benefits Act (TRS-Care)), the effective date of coverage is:(1) the first day of the month following the effective date of retirement if the application for coverage is received by TRS-Care on or before the effective retirement date; or(2) the first day of the month following the receipt of the application for coverage by TRS-Care if the application is received after the effective retirement date but within the initial enrollment period.(b) A TRS member who takes a service or disability retirement and enrolls in coverage during his or her initial enrollment period may, at any time during his or her initial enrollment period, make changes to his or her coverage elections. The effective date of coverage for the new elections is the first day of the month following receipt by TRS-Care of the application requesting the change in coverage.(c) Regardless of the date a TRS member submits his application for retirement, if a TRS member enrolls in coverage during his initial enrollment period as described in §41.1 of this title, the TRS member may defer the effective date of coverage described in subsection (a) of this section for himself and his eligible dependents to the first day of any of the three (3) months immediately following the month after the effective date of retirement. This deferment period runs concurrent with, and does not extend, the enrollment period as described in §41.1 of this title. In no event may a TRS member defer the effective date of TRS-Care coverage to a date prior to the date upon which TRS-Care receives the application for coverage from the TRS member.(d) Surviving spouses and surviving dependent child(ren) who are currently enrolled with the retiree at the time of the retiree's death will continue to be enrolled in the same coverage plan, subject to the applicable eligibility requirements of that coverage plan.(e) If the surviving spouse or the surviving dependent child was not enrolled in TRS-Care immediately preceding his or her becoming eligible for coverage, the effective date of coverage will be, at the election of the surviving spouse or the surviving dependent child, either the first day of the month following:(1) TRS-Care's receipt of an application during the initial enrollment period as described in §41.1 of this title; or(2) the month of the death of the deceased TRS service or disability retiree or deceased active TRS member, provided TRS-Care receives an application during the initial enrollment period as described in §41.1 of this title.(f) The effective date of coverage for an eligible dependent who is enrolled under a retiree's or surviving spouse's TRS-Care coverage during the initial enrollment period is the same date as the retiree or surviving spouse's effective date of coverage unless the dependent is enrolled after the retiree's effective retirement date and after the retiree has enrolled but within the initial enrollment period, in which case the dependent's effective date of coverage will be the first day of the month following TRS-Care's receipt of the application to enroll the dependent.(g) The effective date of coverage for an eligible individual who is enrolled in TRS-Care as a result of a special enrollment event, as described in §41.2(b) of this title (concerning Additional Enrollment Opportunities), is the date specified under the provisions of the Health Insurance Portability and Accountability Act of 1996 (Pub. L. No. 104-191, 110 Stat. 1936 (1996)).(h) The effective date of coverage for an eligible individual who is enrolled in TRS-Care as a result of the Age 65 enrollment opportunity, as described in §41.2(a) of this title is:(1) the first day of the month following the month of the retiree's or surviving spouse's 65th birthday if the application for coverage is received by TRS-Care before or during the month of the retiree's or surviving spouse's 65th birthday; or(2) the first day of the month following the receipt of the application by TRS-Care if the application for coverage is received after the month of the retiree's or surviving spouse's 65th birthday but within the enrollment period.(i) Except as provided in subsections (k), (l), and (m) of this section, the effective date of changes in coverage due to the acquisition of Medicare Part A and/or Medicare Part B is the first of the month following the date of TRS-Care's receipt of proof, satisfactory to TRS-Care, of the participant's or dependent's Medicare Part A and/or Medicare Part B coverage.(j) A retiree, surviving spouse, or surviving dependent child may cancel any coverage by submitting the appropriate notice of cancellation form to TRS-Care. Cancellations will be effective on the later of:(1) the first day of the month following TRS-Care's receipt of the completed notice of cancellation form; or(2) the date requested by the retiree, surviving spouse, or surviving dependent child on the completed notice of cancellation form received by TRS-Care.(k) Where a participant has Medicare Part A coverage and TRS-Care has been paying primary to Medicare on Medicare Part A claims, TRS-Care may seek the recovery of funds and may make the effective date of the correct coverage retroactive to the first day of the earliest month for which recovery of such overpaid funds is possible under Medicare rules.(l) Where a participant has Medicare Part A coverage and TRS-Care has been paying primary to Medicare on Medicare Part A claims, TRS-Care may make the effective date of the correct coverage retroactive to when the participant was first enrolled in both Medicare and TRS-Care to a maximum retroactive period of twelve months, including the month in which proof, satisfactory to TRS-Care, of Medicare Part A coverage is received by TRS-Care, and based thereon, TRS-Care may refund or credit the amount due to the participant.(m) Upon TRS-Care's discovery that a participant does not have Medicare Part A coverage, in contrast to TRS-Care records indicating the participant has Medicare Part A coverage, TRS-Care will contact the participant and advise the participant that the cost of coverage and the coverage will be adjusted prospectively effective the first day of the next month unless proof, satisfactory to TRS-Care, of Medicare Part A coverage is received by TRS-Care prior to that date. Claims will be paid based upon the coverage in effect at the time the services were provided. Any claims already paid as if Medicare Part A were in effect will not be adjusted.(n) Notwithstanding any other provision of this section to the contrary, the effective date of coverage of individuals who enroll in a Medicare plan associated with TRS-Care is subject to the federal laws, regulations, policies and procedures that control the Medicare program.",
            "sourceNote": "Source Note: The provisions of this §41.7 adopted to be effective November 6, 1987, 12 TexReg 3965; amended to be effective February 1, 1989, 14 TexReg 317; amended to be effective March 12, 2003, 28 TexReg 2112; amended to be effective August 25, 2004, 29 TexReg 8132; amended to be effective February 9, 2006, 31 TexReg 709; amended to be effective March 25, 2008, 33 TexReg 2555; amended to be effective March 15, 2009, 34 TexReg 1712; amended to be effective September 10, 2009, 34 TexReg 6121; amended to be effective September 1, 2011, 36 TexReg 5378; amended to be effective January 6, 2013, 37 TexReg 10248; amended to be effectiveDecember 22, 2014, 39 TexReg 10028; amended to be effective January 4, 2018, 42 TexReg 7720; amended to be effective August 15, 2019, 44 TexReg 4189."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196252&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "196252",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREE HEALTH CARE BENEFITS (TRS-CARE)"
            },
            "rule": {
                "number": "§41.8",
                "label": "Eligible Bidders"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196253&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "196253",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) TRS-Care may include separate contracts for:(1) health benefit plans;(2) prescription drug plans;(3) utilization review services;(4) administrative services; and(5) ancillary services.(b) To be eligible to bid on any of the contracts in subsection (a) of this section, a bidder must comply with the minimum qualification standards contained in the applicable solicitation from TRS.",
            "sourceNote": "Source Note: The provisions of this §41.8 adopted to be effective April 5, 1991, 16 TexReg 1754; amended to be effective August 31, 1998, 23 TexReg 8842; amended to be effective March 12, 2003, 28 TexReg 2112; amended to be effective August 15, 2019, 44 TexReg 4189."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196253&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "196253",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREE HEALTH CARE BENEFITS (TRS-CARE)"
            },
            "rule": {
                "number": "§41.9",
                "label": "Bid Procedure"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=186607&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "186607",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All bids for contracts under TRS-Care must be submitted in compliance with the bid requirements provided by TRS.(b) The bid opening shall take place at a date and time set by TRS.(c) In determining the quality of the bids, TRS may consider such factors and criteria as it deems relevant and appropriate under the circumstances.(d) TRS shall not provide compensation to bidders for any expenses incurred by the bidder for bids preparation or for any demonstrations that may be made. Bidders submit bids at their own risk and expense.",
            "sourceNote": "Source Note: The provisions of this §41.9 adopted to be effective April 5, 1991, 16 TexReg 1754; amended to be effective March 12, 2003, 28 TexReg 2112; amended to be effective August 15, 2019, 44 TexReg 4189."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=186607&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "186607",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREE HEALTH CARE BENEFITS (TRS-CARE)"
            },
            "rule": {
                "number": "§41.10",
                "label": "Eligibility to Enroll in the Health Benefits Program Under the Texas Public School Retired Employees Group Benefits Act (TRS-Care)"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196254&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "196254",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If they meet the applicable requirements set out in this section, the following persons are eligible to enroll in the health benefits program under the Texas Public School Retired Employees Group Benefits Act (TRS-Care):(1) service retirees of the Teacher Retirement System of Texas (TRS) who are not eligible to enroll as an employee or retiree in a plan provided under the Texas Employees Group Benefits Act (Insurance Code, Chapter 1551), or under the State University Employees Uniform Insurance Benefits Act (Insurance Code, Chapter 1601);(2) disability retirees of TRS;(3) surviving spouses of deceased service or disability retirees of TRS or of certain deceased active TRS members; and(4) surviving dependent children of deceased service or disability retirees of TRS or of certain deceased active TRS members.(b) To be eligible to enroll in TRS-Care under this section, a service retiree of TRS who retires before September 1, 2004 must have 10 years of service credit for actual service in the public schools of Texas, which can include only the following types of service credit:(1) service credit for actual service in Texas public schools;(2) service credit transferred to TRS from the Employees Retirement System of Texas (ERS);(3) withdrawn service credit that the member has purchased and that has been credited to the member's account;(4) service credit for unreported service that the member has purchased and that has been credited to the member's account;(5) service credit for substitute service that the member has purchased and that has been credited to the member's account; and(6) up to five years of out-of-state service credit that the member has purchased and that has been credited to the member's account.(c) To be eligible to enroll in TRS-Care under this section, a service retiree of TRS who retires after September 1, 2005 must meet the following requirements:(1) at the time of retirement, a member has at least 10 years of service credit in the system, which can include only the following types of service credit:(A) service credit for actual service in Texas public schools;(B) service credit transferred to TRS from ERS;(C) withdrawn service credit that the member has purchased and that has been credited to the member's account;(D) service credit for unreported service that the member has purchased and that has been credited to the member's account;(E) service credit for substitute service that the member has purchased and that has been credited to the member's account;(F) up to five years of military service credit that the member has purchased and that has been credited to the member's account, or up to five years of re-employed veteran's (USERRA) service credit, whether purchased or not, evidence of which is provided by the service retiree to the satisfaction of TRS; and(2) at the time of retirement, a member either:(A) meets the Rule of 80, which is determined by having the sum of the individual's age and the amount of service credit in the system noted in subparagraph(C) of this paragraph, equal or exceed 80, regardless of whether the member had a reduction in the retirement annuity for early age retirement; or(B) has 30 or more years of service credit in the system noted in subparagraph (C) of this paragraph.(C) for purposes of this paragraph (2) of this subsection, service credit in the system includes the following:(i) the types of service credit in the system listed in paragraph (1) of this subsection;(ii) out-of-state service credit under §25.81 of this title (relating to Out-of-State Service Eligible for Credit);(iii) credit for developmental leave under §25.151 of this title (relating to Developmental Leave, Eligibility, Cost);(iv) work experience service credit under §25.161 of this title (relating to Work Experience Service Credit);(v) state personal or sick leave credit under §25.162 of this title (relating to State Personal or Sick Leave Credit);(vi) credit under the service credit purchase option under §25.163 of this title (relating to Service Credit Purchase);(vii) credit for service during a school year with a membership waiting period under §25.164 of this title (relating to Credit for Service During School Year With Membership Waiting Period); and(viii) any other type of service credit purchased for equivalent or special service credit allowed by law or by rule adopted by TRS.(d) To be eligible to enroll in TRS-Care under this section, a service retiree of TRS who retires after September 1, 2004, but on or before August 31, 2005, must meet, on September 1, 2005, either of the following requirements:(1) the 10-year service credit requirement of subsection (b) of this section; or(2) the 10-year service credit requirement of subsection (c)(1) of this section and one of the requirements of subsection (c)(2) of this section.(e) Any service retiree of TRS who is enrolled in TRS-Care on August 31, 2005, maintains eligibility for TRS-Care on or after September 1, 2005, unless and until an applicable rule or law prohibits continued enrollment in TRS-Care.(f) For purposes of this section, \"public school\" is an educational institution or organization in this state that is entitled by law to be supported in whole or in part by state, county, school district, or other municipal corporation funds.(g) A disability retiree with less than 10 years of service credit will not be eligible for coverage under TRS-Care when disability retirement benefits terminate.(h) A surviving spouse of a deceased TRS service or disability retiree is eligible to enroll in TRS-Care if the deceased TRS service or disability retiree was enrolled, eligible to enroll, or would have been eligible to enroll in TRS-Care at the time of the retiree's death.(i) A surviving spouse of a deceased active TRS member is eligible to enroll in TRS-Care if the deceased active member:(1) died on or after September 1, 1986;(2) had 10 or more years of actual service credit in TRS; and(3) made contributions to TRS-Care at the member's last place of employment in public education in Texas.(j) A surviving dependent child of a deceased TRS retiree or deceased active TRS member is eligible to enroll in TRS-Care if the deceased retiree met the conditions of subsection (h) of this section or the deceased active member met the conditions of subsection (i) of this section. A surviving dependent child must also meet the following conditions:(1) the child must be a natural or adopted child of or a child who was lawfully placed for legal adoption with the deceased retiree or member or must be a foster child, stepchild, or other child who lived in a parent-child relationship with the retiree or member; and(2) the child must be under age 26, or if 26 years of age or older, must be unmarried and have a mental disability or is physically incapacitated to such an extent as to have been dependent upon the deceased retiree or active member for support at the time of the retiree's or active member's death, as determined by TRS as trustee and as described by Insurance Code, §1575.003.(k) Combined service credit under the Proportionate Retirement Program may not be used to establish eligibility for TRS-Care.",
            "sourceNote": "Source Note: The provisions of this §41.10 adopted to be effective January 24, 1992, 17 TexReg 255; amended to be effective March 12, 2003, 28 TexReg 2112; amended to be effective August 25, 2004, 29 TexReg 8128; amended to be effective February 9, 2006, 31 TexReg 709; amended to be effective May 28, 2006, 31 TexReg 4235; amended to be effective April 1, 2011, 36 TexReg 2000; amended to be effective December 22, 2014, 39 TexReg 10028; amended to be effective November 14, 2017, 42 TexReg 6378."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196254&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "196254",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREE HEALTH CARE BENEFITS (TRS-CARE)"
            },
            "rule": {
                "number": "§41.11",
                "label": "Years of Service Credit Used to Determine Premiums"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=225839&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "225839",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In addition to other criteria that TRS may use to determine premiums, pursuant to section 1575.212, Insurance Code, TRS may use years of service credit to determine applicable premium rates.(b) If TRS uses years of service credit to determine applicable premium rates, then to determine the applicable premium for a retiree, regardless of the retiree's effective date of retirement, TRS will use the retiree's years of service credit to which the retiree is entitled under the Chapter 823, Government Code, at the time of the TRS retirement.(c) If TRS uses years of service credit to determine applicable premium rates, then to determine the applicable premium for surviving spouses and divorced spouses who elect COBRA coverage, TRS will use the retiree's years of service credit as determined by subsection (b) of this section.",
            "sourceNote": "Source Note: The provisions of this §41.11 adopted to be effective August 25, 2004, 29 TexReg 8132; amended to be effective February 9, 2006, 31 TexReg 709; amended to be effective August 15, 2019, 44 TexReg 4189."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=225839&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "225839",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREE HEALTH CARE BENEFITS (TRS-CARE)"
            },
            "rule": {
                "number": "§41.12",
                "label": "Relating to the Alternative Plan for Medicare-Eligible Participants  and Medicare Part B Requirement"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207318&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207318",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Enrollment in the Alternative Plan. Up to and including December 31, 2025, an individual is eligible to enroll in the Alternative Plan offered under TRS-Care if:(1) the individual is eligible to enroll in TRS-Care; and(2) the individual is eligible for Medicare and either:(A) does not have reasonable access to a particular provider, as determined by TRS; or(B) as of January 1, 2018, does not have Medicare Part B coverage and the individual's ability to obtain Medicare Part B coverage is cost prohibitive, as determined by TRS.(b) Closing Enrollment in the Alternative Plan. Effective January 1, 2026, new enrollees under TRS-Care will no longer be eligible for the Alternative Plan described under subsection (a) of this section.  (c) Medicare Part B Requirement. Effective January 1, 2026, retirees, dependents, surviving spouses, and surviving dependent children who are eligible to enroll in Medicare and desire to enroll in or stay in a TRS-Care plan must have and maintain Medicare Part B coverage. (1) High Deductible Health Plan Transition. Effective January 1, 2026, retirees, dependents, surviving spouses, and surviving dependent children enrolled in the high deductible health plan offered under TRS-Care who turn age 65 and are eligible to enroll in Medicare must have and maintain Medicare Part B coverage to transition into the Medicare Advantage plan and the Medicare prescription drug plan offered under TRS-Care. These enrollees have until the end of their Medicare Initial Enrollment Eligibility Period (IEP) to secure Medicare Part B coverage in order to transition into the Medicare Advantage plan and the Medicare prescription drug plan offered under TRS-Care. Enrollees that fail to secure Medicare Part B coverage within this period shall be terminated from the TRS-Care program. (2) Continued Enrollment in the TRS-Care Medicare Advantage Plan. Effective January 1, 2026, retirees, dependents, surviving spouses, and surviving dependent children enrolled in the Medicare Advantage Plan offered under TRS-Care who terminate or lose their Medicare Part B coverage no longer meet TRS-Care eligibility criteria and shall be terminated from the TRS-Care program as soon as TRS is notified of the Part B coverage loss by CMS.",
            "sourceNote": "Source Note: The provisions of this §41.12 adopted\r\nto be effective January 4, 2018, 42 TexReg 7720; amended to be effective\r\nAugust 11, 2025, 50 TexReg 5231."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207318&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207318",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREE HEALTH CARE BENEFITS (TRS-CARE)"
            },
            "rule": {
                "number": "§41.13",
                "label": "One-Time Reenrollment Opportunity"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170798&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170798",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A retiree who was enrolled in TRS-Care and voluntarily terminated the retiree's enrollment between January 1, 2017, and December 31, 2019, will have a one-time opportunity to reenroll in TRS-Care if the retiree is otherwise eligible and meets the following requirements:(1) The retiree is eligible to enroll in Medicare at the time the retiree applies for reenrollment in TRS-Care; and(2) The retiree applies for reenrollment into TRS-Care no later than December 31, 2023.(b) A retiree will be considered eligible to enroll in Medicare for purposes of subsection (a)(1) above if at the time the retiree applies for reenrollment into TRS-Care, the retiree is eligible to enroll in the Medicare Advantage plan offered under TRS-Care, according to Section 1575.1582(b) of the Insurance Code.(c) If the retiree's application to reenroll under this section is approved, the retiree will be able to enroll in TRS-Care any eligible dependents.(d) If the retiree who was enrolled in TRS-Care and voluntarily terminated the retiree's enrollment between January 1, 2017 and December 31, 2019 has since passed away, the retiree's surviving spouse or the retiree's surviving dependent child will be eligible to enroll under this section, as long as:(1) The surviving spouse or surviving dependent child qualifies as such under Section 1575.003 of the Insurance Code,(2) The surviving spouse or surviving dependent child is eligible to enroll in Medicare at the time the person applies for enrollment, according to subsection (b) of this section, and(3) The surviving spouse or surviving dependent child applies for enrollment into TRS-Care no later than December 31, 2023. If a surviving spouse's application for enrollment under this subsection is approved, the surviving spouse will be able to elect to enroll any eligible surviving dependent child as a dependent.(e) The effective date of coverage in the TRS-Care plan under this section will be the first day of the month after TRS receives the written request from the eligible person to enroll.(f) This section will expire on September 1, 2024, unless the one-time reenrollment opportunity is extended by legislative action, in which case this section will remain in place until such one-time reenrollment opportunity expires according to such legislative action.",
            "sourceNote": "Source Note: The provisions of this §41.13 adopted to be effective December 30, 2021, 46 TexReg 9058."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170798&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170798",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREE HEALTH CARE BENEFITS (TRS-CARE)"
            },
            "rule": {
                "number": "§41.14",
                "label": "Expulsion from TRS-Care for Fraud"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=218279&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "218279",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The trustee, acting through the executive director, may expel from participation in TRS-Care a person who has engaged in, caused, or attempted to engage in fraudulent activity relating to the program or any benefits offered under the program.(b) Upon receipt of a complaint or upon its own motion, the TRS staff may file a petition for expulsion with the executive director. The executive director may docket the petition and refer the matter for an adjudicative hearing before the State Office of Administrative Hearings or otherwise as authorized by law. If a petition is docketed, the provisions of Chapter 43 of this title (relating to Contested Cases) shall apply to the proceeding.(c) Following a hearing, the executive director may expel a person from participation in TRS-Care for a period of time not to exceed five years. Pursuant to the delegation of authority through this section, the order of the executive director is the final decision of TRS.",
            "sourceNote": "Source Note: The provisions of this §41.14 adopted to be effective March 12, 2003, 28 TexReg 2112; amended to be effective December 22, 2014, 39 TexReg 10028."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=218279&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "218279",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREE HEALTH CARE BENEFITS (TRS-CARE)"
            },
            "rule": {
                "number": "§41.15",
                "label": "Optional Dental Benefits Plan"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=218280&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "218280",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Establishment.(1) In accordance with Section 1575.1601, Insurance Code, TRS makes available to individuals under the TRS-Care program an optional plan that provides coverage for dental care (hereinafter referred to as an \"optional dental benefits plan\").(2) TRS may offer an optional dental benefits plan through an insurance carrier or the optional dental benefits plan may be self-funded.(3) An optional dental benefits plan may have one or more benefit designs for participants to choose from, as determined by TRS.(b) Eligibility.(1) Only retirees, dependents, surviving spouses, and surviving dependent children, as defined under Chapter 1575, Insurance Code, are eligible to enroll in an optional dental benefits plan (hereinafter referred to as \"eligible members\").(2) Individuals shall be eligible for an optional dental benefits plan under the same requirements as described in §41.10 of this title (relating to Eligibility to Enroll in the Health Benefit Program under the Texas Public School Retired Employees Group Benefits Act (TRS-Care)).(3) Eligible members may enroll in an optional dental benefits plan even if they are not enrolled or applying for enrollment in any other TRS-Care plan at the time of enrollment in an optional dental benefits plan.(4) If an eligible member is eligible for an optional dental benefits plan as a retiree and also as a dependent of another retiree, the retiree may elect to participate in an optional dental benefits plan as a retiree or as a dependent but cannot participate as both. An eligible member must choose to participate as a retiree or as a dependent.(c) Plan Year. The plan year for an optional dental benefits plan is from January 1 to December 31 (hereinafter referred to as \"plan year\").(d) Enrollment and Disenrollment.(1) Enrollment. Eligible members desiring to enroll in an optional dental benefits plan must do so within the open enrollment period or during an additional enrollment opportunity.(A) Open Enrollment.(i) An eligible member may enroll in an optional dental benefits plan during an open enrollment period established by TRS.(ii) On behalf of the trustee, the executive director or a designee may prescribe open enrollment periods and the conditions under which eligible members may enroll during an open enrollment period.(B) Additional Enrollment Opportunities. Individuals shall have the same additional enrollment opportunities for an optional dental benefits plan as those provided under §41.2(a) - (c) of this title (relating to Additional Enrollment Opportunities).(2) Disenrollment. Eligible members may only disenroll from an optional dental benefits plan during the open enrollment period, with the exception that an eligible member may disenroll during a special enrollment opportunity as described by §41.2(b) of this title.(3) Enrollment and Disenrollment Process. Eligible members must follow the enrollment and disenrollment processes established by TRS.(e) Payment of Contributions.(1) Retirees, surviving spouses, and surviving dependent children, or their representatives (collectively \"participants\") shall pay monthly contributions, as set by TRS, for their and their dependents' participation in an optional dental benefits plan and may, at TRS' sole discretion, be required to do so through deductions from the participant's TRS annuity payment or through direct payments to TRS or its designee.(A) In accordance with Section 1575.153, Insurance Code, the participant must, in writing, authorize the trustee to deduct the entirety of the participant's contributions for the participant's coverage under the TRS-Care plan(s) from the participant's TRS annuity payment.(B) If the amount of the participant's TRS annuity payment is not enough to cover all of the participant's contributions for coverage under the participants TRS-Care plan(s), the participant shall be directly billed by TRS or its designee.(2) If a participant is required to pay their contributions for an optional dental benefits plan directly to TRS or its designee, failure to timely pay the full amount of a required contribution for coverage will result in termination of the optional dental benefits plan. Participants or eligible members that have lost their coverage due to lack of payment of contribution for coverage may be subject to recoupment by TRS of outstanding contribution amounts, penalties, and be subject to reenrollment conditions prior to reenrollment.(f) Effective Date of Coverage.(1) An optional dental benefits plan shall follow the same effective dates of coverage that apply under §41.7(a) - (h) and (j) of this title (relating to Effective Date of Coverage).(2) In addition, if an eligible member enrolls during a TRS open enrollment period as described in subsection (d)(1)(A) of this section, the effective date of coverage shall be the first day of the plan year following the end of the open enrollment period.(g) Expulsion for fraud. Expulsion for fraud from an optional dental benefits plan shall follow the same process as described in §41.14 of this title (relating to Expulsion from TRS-Care for Fraud).(h) Competitive Bidding.(1) Bid procedures for an optional dental benefits plan shall follow the same process as described in §41.9 of this title (relating to Bid Procedure).(2) TRS may award separate contracts for different aspects in the administration of an optional dental benefits plan, such as insurance coverage, claims administration, utilization review services, administrative services, and ancillary services.(3) Each bidder must comply with the minimum qualifications contained in the applicable solicitation from TRS.",
            "sourceNote": "Source Note: The provisions of this §41.15 adopted to be effective May 26, 2024, 49 TexReg 3581."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=218280&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "218280",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREE HEALTH CARE BENEFITS (TRS-CARE)"
            },
            "rule": {
                "number": "§41.16",
                "label": "Optional Vision Benefits Plan"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=219943&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "219943",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Establishment.(1) In accordance with Section 1575.1601, Insurance Code, TRS makes available to individuals under the TRS-Care program an optional plan that provides coverage for vision care (hereinafter referred to as an \"optional vision benefits plan\").(2) TRS may offer an optional vision benefits plan through an insurance carrier or the optional vision benefits plan may be self-funded.(3) An optional vision benefits plan may have one or more benefit designs for participants to choose from, as determined by TRS.(b) Eligibility.(1) Only retirees, dependents, surviving spouses, and surviving dependent children, as defined under Chapter 1575, Insurance Code, are eligible to enroll in an optional vision benefits plan (hereinafter referred to as \"eligible members\").(2) Individuals shall be eligible for an optional vision benefits plan under the same requirements as described in §41.10 of this title (relating to Eligibility to Enroll in the Health Benefit Program under the Texas Public School Retired Employees Group Benefits Act (TRS-Care)).(3) Eligible members may enroll in an optional vision benefits plan even if they are not enrolled or applying for enrollment in any other TRS-Care plan at the time of enrollment in an optional vision benefits plan.(4) If an eligible member is eligible for an optional vision benefits plan as a retiree and also as a dependent of another retiree, the retiree may elect to participate in an optional vision benefits plan as a retiree or as a dependent but cannot participate as both. An eligible member must choose to participate as a retiree or as a dependent.(c) Plan Year. The plan year for an optional vision benefits plan is from January 1 to December 31 (hereinafter referred to as \"plan year\").(d) Enrollment and Disenrollment.(1) Enrollment. Eligible members desiring to enroll in an optional vision benefits plan must do so within the open enrollment period or during an additional enrollment opportunity.(A) Open Enrollment.(i) An eligible member may enroll in an optional vision benefits plan during an open enrollment period established by TRS.(ii) On behalf of the trustee, the executive director or a designee may prescribe open enrollment periods and the conditions under which eligible members may enroll during an open enrollment period.(B) Additional Enrollment Opportunities. Individuals shall have the same additional enrollment opportunities for an optional vision benefits plan as those provided under §41.2(a)-(c) of this title (relating to Additional Enrollment Opportunities).(2) Disenrollment. Eligible members may only disenroll from an optional vision benefits plan during the open enrollment period, with the exception that an eligible member may disenroll during a special enrollment opportunity as described by §41.2(b) of this title.(3) Enrollment and Disenrollment Process. Eligible members must follow the enrollment and disenrollment processes established by TRS.(e) Payment of Contributions.(1) Retirees, surviving spouses, and surviving dependent children, or their representatives (collectively, \"participants\") shall pay monthly contributions, as set by TRS, for their and their dependents' participation in an optional vision benefits plan and may, at TRS' sole discretion, be required to do so through deductions from the participant's TRS annuity payment or through direct payments to TRS or its designee.(A) In accordance with Section 1575.153, Insurance Code, the participant must, in writing, authorize the trustee to deduct the entirety of the participant's contributions for the participant's coverage under the TRS-Care plan(s) from the participant's TRS annuity payment.(B) If the amount of the participant's TRS annuity payment is not enough to cover all of the participant's contributions for coverage under the participants TRS-Care plan(s), the participant shall be directly billed by TRS or its designee.(2) If a participant is required to pay their contributions for an optional vision benefits plan directly to TRS or its designee, failure to timely pay the full amount of a required contribution for coverage will result in termination of the optional vision benefits plan. Participants or eligible members that have lost their coverage due to lack of payment of contribution for coverage may be subject to recoupment by TRS of outstanding contribution amounts, penalties, and be subject to reenrollment conditions prior to reenrollment.(f) Effective Date of Coverage.(1) An optional vision benefits plan shall follow the same effective dates of coverage that apply under §41.7(a)-(h) and (j) of this title (relating to Effective Date of Coverage).(2) In addition, if an eligible member enrolls during a TRS open enrollment period as described in subsection (d)(1)(A) of this section, the effective date of coverage shall be the first day of the plan year following the end of the open enrollment period.(g) Expulsion for fraud. Expulsion for fraud from an optional vision benefits plan shall follow the same process as described in §41.14 of this title (relating to Expulsion from TRS-Care for Fraud).(h) Competitive Bidding.(1) Bid procedures for an optional vision benefits plan shall follow the same process as described in §41.9 of this title (relating to Bid Procedure).(2) TRS may award separate contracts for different aspects in the administration of an optional vision benefits plan, such as insurance coverage, claims administration, utilization review services, administrative services, and ancillary services.(3) Each bidder must comply with the minimum qualifications contained in the applicable solicitation from TRS.",
            "sourceNote": "Source Note: The provisions of this §41.16 adopted to be effective May 26, 2024, 49 TexReg 3581."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=219943&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "219943",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "A",
                "label": "RETIREE HEALTH CARE BENEFITS (TRS-CARE)"
            },
            "rule": {
                "number": "§41.17",
                "label": "Limited-time Enrollment Opportunity for Medicare-eligible Retirees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206409&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "206409",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Eligibility.(1) Retiree. A retiree who is eligible to enroll in the Medicare Advantage plan offered under TRS-Care in accordance with Section 1575.1582(b), Insurance Code (hereinafter referred to as \"MA plan\") and who is not currently enrolled in the MA plan, may enroll in the MA plan if the retiree applies for enrollment during the limited-time enrollment period. For the purpose of this section, the limited-time enrollment period is the period that begins on October 1, 2024, and extends through March 31, 2026.(2) Surviving spouses or surviving dependent children. If a retiree has passed away, the retiree's surviving spouse or the retiree's surviving dependent child may enroll under this section, as long as:(A) The surviving spouse or surviving dependent child qualifies as such under Section 1575.003, Insurance Code, and(B) The surviving spouse or surviving dependent child is eligible for Medicare and is eligible to enroll in the MA plan offered under TRS-Care in accordance with Section1575.1582(b), Insurance Code.(3) Dependents. If the retiree's or surviving spouse's application to enroll under this section is approved, the retiree or surviving spouse may also enroll any eligible dependents.(4) Single enrollment opportunity. A retiree, surviving spouse, or surviving dependent child may only enroll one time during the limited-time enrollment period.(b) Effective Date of Coverage.(1) January 1, 2025. For those applications received and approved before January 1, 2025, coverage shall be effective on January 1, 2025.(2) After January 1, 2025. For those applications received after January 1, 2025, the effective date of coverage shall be the first day of the month after TRS receives and approves the request to enroll.(3) Range. In no event shall the effective date be prior to January 1, 2025, or after April 1, 2026.",
            "sourceNote": "Source Note: The provisions of this §41.17 adopted to be effective August 11, 2024, 49 TexReg 5780."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206409&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206409",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS SCHOOL EMPLOYEES GROUP HEALTH (TRS-ACTIVECARE)"
            },
            "rule": {
                "number": "§41.30",
                "label": "Participation in the Health Benefits Program under the Texas School Employees Uniform Group Health Coverage Act by School Districts, Other Educational Districts, Charter Schools, and Regional Education Service Centers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196258&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "196258",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Applicability. This section is applicable to the election to participate in TRS-ActiveCare by eligible entities such as school districts, other educational districts, charter schools, and regional education service centers, as these terms are defined in Chapter 1579, Insurance Code.(b) Manner, form and effect of election.(1) Form of the notice of election. All elections to participate or discontinue participation in the health benefits program, referred to as \"TRS-ActiveCare,\" under the Texas School Employees Uniform Group Health Coverage Act (the \"Act\"), Chapter 1579, Insurance Code, shall be in writing, in a form prescribed by the Teacher Retirement System of Texas (TRS), as trustee of TRS-ActiveCare.(2) Incomplete notice of election. An incomplete or unsigned notice of election will not be deemed received by TRS for purposes of determining whether a valid election has been exercised. Written notice of election to participate in TRS-ActiveCare under this section submitted without the information required under §41.45 of this title (relating to Required Information from School Districts, Other Educational Districts, Charter Schools, and Regional Education Service Centers Electing to Participate in TRS-ActiveCare) will be considered incomplete and will be denied by TRS. In order to reduce the possibility of submitting an incomplete form, entities should reach out to TRS before the election deadline referenced in this section to ask questions and address issues.(3) Timing of the receipt of the notice of election. A notice of election to participate or discontinue participation that is otherwise valid must be received by TRS no later than December 31 of the year preceding the first day of the plan year in which the election will be effective.(4) Mandatory Participation and Exclusion Timeframes. Each time an entity submits a notice of election to participate in TRS-ActiveCare in accordance with subsection (b)(1) - (3) of this section, the entity is committing to participate for a minimum of five plan years, after which the entity may choose to submit a notice to discontinue participation. In the same manner, each time an entity submits a notice to discontinue participation in TRS-ActiveCare in accordance with subsection (b)(1) - (3) of this section, the entity is committing to leave the program for a minimum of five plan years, after which the entity may choose to submit a notice of election to participate. Mandatory participation and mandatory exclusion periods will be strictly enforced.(c) Charter schools. Pursuant to §1579.154(a), Insurance Code, to be eligible, a charter school must agree to inspection of all records of the school relating to its participation in TRS-ActiveCare by TRS, by the administering firm as defined in §1579.002(1), Insurance Code, by the commissioner of education, or by a designee of any of those entities, and further must agree to have its accounts relating to participation in TRS-ActiveCare annually audited by a certified public accountant at the school's expense. The agreement of the charter school shall be evidenced in writing and shall constitute a part of a notice of election in a form prescribed by TRS pursuant to subsection (b) of this section.(d) Effective Date of Participation or Discontinuation of Participation. An entity will become a participating entity or discontinue to be a participating entity in TRS-ActiveCare on the first day of the plan year following the December 31st date on which TRS receives the entity's notice of election to become a participating entity or discontinue being a participating entity referenced in subsection (b) of this section.(e) Alternative group health coverage prohibition. In accordance with Section 1579.1045, Insurance Code, a participating entity is prohibited from offering or making available group health coverage other than that provided under the TRS-ActiveCare program to the entity's employees or their employees' dependents.(f) Remedies for failure to comply. If, contrary to subsection (e) of this section and Section 1579.1045 of the Insurance Code, a participating entity offers alternative group health coverage, TRS may pursue remedies for noncompliance, including but not limited to removal from or denial of entry into TRS-ActiveCare. TRS may impose or pursue one or more remedies. The pursuit of one remedy does not constitute a waiver of any other remedy that TRS may have at law or equity. If TRS discovers that a participating entity is in violation of subsection (e) after the beginning of a plan year, in addition to any other available remedy, TRS will remove the entity from the program effective at the end of the month in which TRS discovers the situation; and it will be the entity's liability to procure alternative coverage or provide other remedies for the employees and their dependents that lose coverage under these circumstances.",
            "sourceNote": "Source Note: The provisions of this §41.30 adopted to be effective January 1, 2002, 26 TexReg 11035; amended to be effective March 12, 2003, 28 TexReg 2114; amended to be effective June 18, 2003, 28 TexReg 4560; amended to be effective March 8, 2007, 32 TexReg 1092; amended to be effective April 1, 2011, 36 TexReg 2001; amended to be effective December 22, 2014, 39 TexReg 10029; amended to be effective October 17, 2021, 46 TexReg 6944."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196258&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "196258",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS SCHOOL EMPLOYEES GROUP HEALTH (TRS-ACTIVECARE)"
            },
            "rule": {
                "number": "§41.31",
                "label": "Eligible Bidders"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196256&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "196256",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) TRS-ActiveCare may include separate contracts for:(1) health benefit plans;(2) prescription drug plans;(3) utilization review services;(4) administrative services; and(5) ancillary services.(b) Except for health maintenance organizations, which must meet other requirements in this section, to be eligible to bid on any of the contracts in subsection (a) of this section, a bidder must comply with the minimum qualification standards contained in the applicable solicitation from TRS.(c) TRS may approve a health maintenance organization (HMO) to offer a health benefit plan to participants in TRS-ActiveCare in areas of the state determined by TRS. TRS may establish, for different areas of the state, different criteria for HMOs to qualify to offer a health benefit plan. TRS may at any time establish or change the number, if any, of HMOs approved to offer a health benefit plan in each area of the state. In order to be approved, an HMO must satisfy all of the following conditions:(1) The HMO must hold a valid certificate of authority issued by the Texas Department of Insurance to operate in the State of Texas.(2) The HMO must demonstrate the capacity to provide adequate services, as determined by TRS, to the participants in TRS-ActiveCare.(3) Once adopted by TRS, the rates and benefits submitted by an HMO may not be modified during a plan year without the prior written approval of TRS.(4) A request for expansion of a service area shall require a separate responsive bid and approval by TRS.(5) The HMO must comply with the other minimum qualification standards contained in the applicable solicitation from TRS.",
            "sourceNote": "Source Note: The provisions of this §41.31 adopted to be effective November 5, 2001, 26 TexReg 8850; amended to be effective January 28, 2003, 28 TexReg 743; amended to be effective March 8, 2007, 32 TexReg 1092; amended to be effective August 15, 2019, 44 TexReg 4189."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196256&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "196256",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS SCHOOL EMPLOYEES GROUP HEALTH (TRS-ACTIVECARE)"
            },
            "rule": {
                "number": "§41.32",
                "label": "Bid Procedure"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209818&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "209818",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All bids for contracts under TRS-ActiveCare must be submitted in compliance with the bid requirements provided by TRS.(b) The bid opening shall take place at a date and time set by TRS.(c) In determining the quality of the bids, TRS may consider such factors and criteria as it deems relevant and appropriate under the circumstances.(d) TRS shall not provide compensation to bidders for any expenses incurred by the bidder for bids preparation or for any demonstrations that may be made. Bidders submit bids at their own risk and expense.",
            "sourceNote": "Source Note: The provisions of this §41.32 adopted to be effective November 5, 2001, 26 TexReg 8850; amended to be effective March 12, 2003, 28 TexReg 2114; amended to be effective March 8, 2007, 32 TexReg 1092; amended to be effective August 15, 2019, 44 TexReg 4189."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209818&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "209818",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS SCHOOL EMPLOYEES GROUP HEALTH (TRS-ACTIVECARE)"
            },
            "rule": {
                "number": "§41.33",
                "label": "Definitions Applicable to the Texas School Employees Uniform Group Health Coverage Program"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206410&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "206410",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms when used in this subchapter or in connection with the administration of Chapter 1579, Insurance Code, shall have the following meanings unless the context clearly indicates otherwise:(1) Dependent--Only those individuals described by §1579.004, Insurance Code, and an individual under 26 years of age (\"child\") who is described by any one of the following subparagraphs (A), (B), or (C) at all times during which the child is receiving coverage under TRS-ActiveCare.(A) A child under the legal guardianship of a full-time or part-time employee;(B) A full-time or part-time employee's grandchild whose primary residence is the household of that full-time or part-time employee if the grandchild is a dependent of the full-time or part-time employee for federal income tax purposes for the reporting year in which coverage of the grandchild is in effect; or(C) A child in a regular parent-child relationship with a full-time or part-time employee, meaning that the child's primary residence is the household of that full-time or part-time employee, the full-time or part-time employee provides at least 50% of the child's support, neither of the child's natural parents reside in that household, and the full-time or part-time employee has the legal right to make decisions regarding the child's medical care.(D) For clarification and without intending to identify all persons who are not a Dependent for purposes of coverage, even though the individual may be in a dependent relationship with a full-time or part-time employee, the following are not included in the definition of Dependent in this section:(i) Other than the spouse of a full-time or part-time employee, a Dependent does not include an individual who is a \"participating member\" as defined in paragraph (5) of this section.(ii) A Dependent does not include a parent or grandparent of a full-time or part-time employee.(iii) A Dependent does not include a brother or a sister of a full-time or part-time employee unless the brother or sister is an unmarried individual under 26 years of age who is either:(I) under the legal guardianship of a full-time or part-time employee; or(II) in a regular parent-child relationship with a full-time or part-time employee, meaning that the brother or sister's primary residence is the household of that full-time or part-time employee, the full-time or part-time employee provides at least 50% of the brother or sister's support, neither of the brother or sister's natural parents reside in that household, and the full-time or part-time employee has the legal right to make decisions regarding the brother or sister's medical care.(2) Full-time employee--A participating member who:(A) is currently employed by a participating entity;(B) is employed in a position that is eligible for membership in the Teacher Retirement System of Texas; and(C) is not receiving coverage as an employee or retiree from a uniform group insurance or health benefits program under the Texas Employees Group Benefits Act (Chapter 1551, Insurance Code), or the State University Employees Uniform Insurance Benefits Act (Chapter 1601, Insurance Code) or the Texas Public School Retired Employees Group Benefits Act (Chapter 1575, Insurance Code, also known as TRS-Care). Notwithstanding this paragraph, an individual who is eligible to Medicare, and meets the criteria in subparagraphs (A) and (B) of this paragraph will be considered a full-time employee.(3) HMO--A health maintenance organization holding a valid certificate of authority issued by the Texas Department of Insurance and approved by TRS to provide health care benefits to eligible full-time and part-time employees and their eligible dependents.(4) Participating entity--An entity participating in TRS-ActiveCare including a school district; another educational district whose employees are members of the retirement system; a regional education service center; and a charter school that meets the requirements of Chapter 1579, Insurance Code. An entity is considered to be participating in TRS-ActiveCare on and after the first date coverage becomes effective for its employees.(5) Participating member--A person defined by §822.001 and §822.002, Government Code, whose membership in the retirement system has not been terminated as described by §§822.003 - 822.006, Government Code, and who is required to contribute to the Teacher Retirement System of Texas pension trust fund in accordance with §825.403, Government Code.(6) Part-time employee--An individual who:(A) is currently employed by a participating entity for 10 hours or more each week;(B) is employed in a position that is not eligible for membership in the Teacher Retirement System of Texas or is not eligible for membership in the Teacher Retirement System of Texas because of a service or disability retirement; and(C) is not receiving coverage as an employee or retiree from a uniform group insurance or health benefits program under the Texas Employees Group Benefits Act (Chapter 1551, Insurance Code) or the State University Employees Uniform Insurance Benefits Act (Chapter 1601, Insurance Code) or the Texas Public School Retired Employees Group Benefits Act (Chapter 1575, Insurance Code, also known as TRS-Care). Notwithstanding this paragraph, an individual who is eligible to Medicare, and meets the criteria in subparagraphs (A) and (B) of this paragraph will be considered a part-time employee.(7) Plan year--A plan year begins on the first day of September and ends on the last day of the following August.(8) TRS-ActiveCare--The health benefits program under the Texas School Employees Uniform Group Health Coverage Act, Chapter 1579, Insurance Code.(9) Trustee or TRS--The Teacher Retirement System of Texas acting in its capacity as trustee under Chapter 1579, Insurance Code.",
            "sourceNote": "Source Note: The provisions of this §41.33 adopted to be effective August 26, 2002, 27 TexReg 7970; amended to be effective January 28, 2003, 28 TexReg 743; amended to be effective March 8, 2007, 32 TexReg 1092; amended to be effective April 1, 2011, 36 TexReg 2001; amended to be effective December 22, 2014, 39 TexReg 10029; amended to be effective November 14, 2017, 42 TexReg 6378; amended to be effective August 18, 2022, 47 TexReg 4856."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206410&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206410",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS SCHOOL EMPLOYEES GROUP HEALTH (TRS-ACTIVECARE)"
            },
            "rule": {
                "number": "§41.34",
                "label": "Eligibility for Coverage under the Texas School Employees Uniform Group Health Coverage Program"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206414&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
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                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following persons are eligible to be enrolled in TRS-ActiveCare under terms, conditions and limitations established by the trustees unless expelled from the program under provisions of Chapter 1579, Insurance Code:(1) A full-time employee as defined in §41.33 of this title (relating to Definitions Applicable to the Texas School Employees Uniform Group Health Coverage Program).(2) A part-time employee as defined in §41.33 of this title.(3) Dependents, as defined in §41.33 of this title pursuant to §1579.004, Insurance Code. A child defined in §1579.004(3), Insurance Code, who is 26 years of age or older, is eligible for coverage only if, and only for so long as, such child's mental disability or physical incapacity is a medically determinable condition that prevents the child from engaging in self-sustaining employment as determined by TRS.(4) Individuals employed or formerly employed by a participating entity, and their dependents, who are eligible for, or participating in, continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (Pub. L. 99-272), through a group health benefit plan sponsored by the individual's employer on the first day that employer first becomes a participating entity if such individuals or their dependents would have met the requirements for eligibility in paragraphs (1), (2), or (3) of this section on the individual's last day of employment with the participating entity. Notwithstanding the foregoing, the individual is eligible to participate in TRS-ActiveCare only for the rest of the duration of the individual's eligibility for COBRA continuation coverage. This subsection will not apply to individuals that receive COBRA continuation coverage offered through an alternative group health plan coverage offered by a participating entity at the same time that the entity is offering coverage through TRS-ActiveCare, and the participating entity terminates the alternative group health plan coverage, or the participating entity is terminated from the program by TRS for violating Section 1579.1045, Insurance Code, and §41.30(e) of this title (relating to Participation in the Health Benefits Program under the Texas School Employees Uniform Group Health Coverage Act by School Districts, Other Educational Districts, Charter Schools, and Regional Education Service Centers).(5) An individual who qualifies for coverage pursuant to §41.38(b) of this title (relating to Termination Date of Coverage), and their dependents.(6) Full-time or part-time employees as defined in §41.33 of this title and their eligible dependents may participate in an approved HMO if they reside, live, or work in the approved service area of the HMO and are otherwise eligible to participate in the HMO under the terms of the TRS contract with the HMO.(7) Individuals who become eligible as determined by TRS for continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (Pub. L. No. 99-272), through their participation in TRS-ActiveCare.(8) Individuals who become eligible for coverage under the special enrollment provisions of the Health Insurance Portability and Accountability Act of 1996 (Pub. L. No. 104-191, 110 Stat. 1936 (1996)).(9) Any other individuals who are required to be covered under applicable law.",
            "sourceNote": "Source Note: The provisions of this §41.34 adopted to be effective August 26, 2002, 27 TexReg 7970; amended to be effective January 28, 2003, 28 TexReg 743; amended to be effective October 27, 2003, 28 TexReg 9289; amended to be effective March 8, 2007, 32 TexReg 1092; amended to be effective April 9, 2008, 33 TexReg 2825; amended to be effective April 1, 2011, 36 TexReg 2001; amended to be effective September 1, 2011, 36 TexReg 5380; amended to be effective December 22, 2014, 39 TexReg 10029; amended to be effective August 15, 2019, 44 TexReg 4189;amended to be effective October 17, 2021, 46 TexReg 6944."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206414&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206414",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS SCHOOL EMPLOYEES GROUP HEALTH (TRS-ACTIVECARE)"
            },
            "rule": {
                "number": "§41.35",
                "label": "Coverage Plans"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206411&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "206411",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) TRS-ActiveCare shall include at least two coverage plans, including a catastrophic care coverage plan and a primary care coverage plan, in accordance with Chapter 1579, Insurance Code. The coverages provided for eligible persons under the plans offered will include, but are not limited to, basic medical expense coverage and prescription drug coverage, in accordance with terms, conditions, and limitations adopted by resolution of the trustee.(b) TRS-ActiveCare may also include additional plans for health-care coverage under terms, conditions and limitations adopted by resolution of the trustee.(c) The coverage plans offered under TRS-ActiveCare will each include at least two of the following rating tiers:(1) Employee only;(2) Employee and spouse;(3) Employee and children;(4) Employee and family.(d) TRS may not offer optional coverages, other than optional permanent life insurance, optional long-term care insurance, and optional disability insurance to employees participating in TRS-ActiveCare in accordance with terms, conditions and limitations adopted by resolution of the trustee.(e) TRS may determine different rates and premiums applicable to different participating entities or potential participating entities under the TRS-ActiveCare program based on certain risks, regional factors, and other underwriting considerations.",
            "sourceNote": "Source Note: The provisions of this §41.35 adopted to be effective August 26, 2002, 27 TexReg 7970; amended to be effective March 8, 2007, 32 TexReg 1092; amended to be effective October 17, 2021, 46 TexReg 6945."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206411&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206411",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS SCHOOL EMPLOYEES GROUP HEALTH (TRS-ACTIVECARE)"
            },
            "rule": {
                "number": "§41.36",
                "label": "Enrollment Periods for TRS-ActiveCare"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206412&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "206412",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An individual who becomes an eligible full-time or eligible part-time employee has an initial enrollment period, for both himself or herself as well as for his or her eligible dependents, beginning on the first day that the individual becomes an eligible employee and ending at 11:59:59 p.m. Austin Time on the 31st day thereafter.(b) If a current employee of a participating entity was an eligible part-time employee during an enrollment opportunity for the current plan year, and, later during the current plan year, this employee becomes an eligible full-time employee, then this employee has an enrollment period, for both himself or herself as well as for his or her eligible dependents, beginning on the first day that this individual becomes an eligible full-time employee and ending at 11:59:59 p.m. Austin Time on the 31st day thereafter. This enrollment opportunity exists even if this employee previously declined enrollment in TRS-ActiveCare during the current plan year.(c) An eligible full-time or part-time employee whose employer becomes a participating entity has an initial enrollment period, for both himself or herself as well as for his or her eligible dependents, beginning at least 31 days prior to the date that the annual enrollment period ends for the first plan year in which the employer becomes a participating entity.(d) A full-time or part-time employee's eligible dependents, if covered, must be enrolled in the same coverage plan as the full-time or part-time employee under whom they qualify as a dependent. Except as otherwise provided under applicable state or federal law, an eligible full-time or part-time employee may not change coverage plans or add dependents during a plan year.(e) The enrollment period for an individual who becomes eligible for coverage due to a special enrollment event, as described in §41.34(8) of this chapter (relating to Eligibility for Coverage under the Texas School Employees Uniform Group Health Coverage Program), shall be the 31 calendar days immediately after the date of the special enrollment event. To make an effective election, a completed enrollment form must be received by a participating entity or the health plan administrator of TRS-ActiveCare within this 31-day period.(f) Eligible full-time and part-time employees and their eligible dependents who are enrolled in an HMO with a TRS contract that is not renewed for the next plan year may make one of the elections provided under this subsection. To make an effective election, a completed enrollment form must be received by a participating entity or the health plan administrator of TRS-ActiveCare during the plan enrollment period. Coverage under the elected option becomes effective on September 1 of the next plan year. One of the following elections may be made under this subsection:(1) change to another approved HMO for which the full-time or part-time employee is eligible; or(2) enroll in the TRS-ActiveCare preferred provider organization coverage plan, without preexisting condition exclusions.(g) Eligible full-time or part-time employees and their eligible dependents who are enrolled in an HMO with a TRS contract that is terminated during the plan year may make one of the elections provided under this subsection. To make an effective election, a completed enrollment form must be received by a participating entity or the health plan administrator of TRS-ActiveCare within 31 calendar days after notice of the contract termination is sent to the eligible full-time or part-time employee by TRS or its designee. Coverage under the elected option becomes effective on a date determined by TRS. One of the following elections may be made under this subsection:(1) change to another approved HMO for which the full-time or part-time employees and their eligible dependents are eligible; or(2) enroll in the TRS-ActiveCare preferred provider organization coverage plan, without preexisting condition exclusions.(h) Eligible full-time or part-time employees and their eligible dependents enrolled in an approved HMO whose eligibility status changes because the eligible full-time or part-time employee no longer resides, lives, or works in the HMO service area may make one of the elections provided under this subsection. To make an effective election, a completed enrollment form must be received by a participating entity or the health plan administrator of TRS-ActiveCare within 31 calendar days after the employee's change in eligibility status. Coverage under the elected option becomes effective on the first day of the month following the date the employee's eligibility status changed. One of the following elections may be made under this subsection:(1) enroll in another approved HMO for which the full-time or part-time employee is eligible; or(2) enroll in the TRS-ActiveCare preferred provider organization coverage plan, subject to applicable preexisting condition limitations.(i) On behalf of the trustee, the executive director or a designee may prescribe open-enrollment periods and the conditions under which an eligible full-time or part-time employee and his eligible dependents may enroll during an open-enrollment period.",
            "sourceNote": "Source Note: The provisions of this §41.36 adopted to be effective August 26, 2002, 27 TexReg 7970; amended to be effective January 28, 2003, 28 TexReg 743; amended to be effective June 18, 2003, 28 TexReg 4560; amended to be effective August 18, 2003, 28 TexReg 6553; amended to be effective March 8, 2007, 32 TexReg 1092; amended to be effective April 9, 2008, 33 TexReg 2825; amended to be effective April 1, 2011, 36 TexReg 2001; amended to be effective September 1, 2011, 36 TexReg 5380; amended to be effective December 22, 2014, 39 TexReg 10029; amended to be effective October 20, 2016, 41 TexReg 8204; amendedto be effective October 17, 2021, 46 TexReg 6944."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206412&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206412",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS SCHOOL EMPLOYEES GROUP HEALTH (TRS-ACTIVECARE)"
            },
            "rule": {
                "number": "§41.37",
                "label": "Effective Date of Coverage"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170803&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170803",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as otherwise provided by §41.39 of this title (relating to Coverage for Individuals Changing Employers) coverage shall become effective as described in this subsection for eligible full-time employees and eligible part-time employees whose employer first becomes a participating entity and who enroll during the annual enrollment period immediately preceding the date their employer first becomes a participating entity. Coverage shall become effective for such individuals and their eligible dependents on the first day of the plan year the employer first became a participating entity.(b) Except as otherwise provided by §41.39 of this title (relating to Coverage for Individuals Changing Employers) coverage shall become effective as described in this subsection for eligible full-time employees and eligible part-time employees who begin working for a participating entity in an eligible capacity and who enroll no later than the 31st day after the first date they become eligible to enroll, (\"Individuals\"). Coverage shall become effective for such Individuals and their eligible dependents on one of the following dates as specified by the Individual on the application for coverage:(1) The first day the Individual is employed in an eligible capacity with the participating entity; or(2) The first day of the calendar month following the month in which the Individual is employed in an eligible capacity with the participating entity.(c) For eligible full-time employees, eligible part-time employees and their eligible dependents who enroll during an open-enrollment period as prescribed by the trustee, coverage shall become effective on the date specified by resolution of the trustee.",
            "sourceNote": "Source Note: The provisions of this §41.37 adopted to be effective August 26, 2002, 27 TexReg 7970; amended to be effective June 18, 2003, 28 TexReg 4560; amended to be effective August 18, 2003, 28 TexReg 6553; amended to be effective February 29, 2004, 29 TexReg 1670; amended to be effective March 8, 2007, 32 TexReg 1092; amended to be effective December 22, 2014, 39 TexReg 10029; amended to be effective October 17, 2021, 46 TexReg 6944."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170803&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170803",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS SCHOOL EMPLOYEES GROUP HEALTH (TRS-ACTIVECARE)"
            },
            "rule": {
                "number": "§41.38",
                "label": "Termination Date of Coverage"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196259&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "196259",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Unless otherwise required by law or this section, coverage shall terminate at the earliest of:(1) 11:59 p.m. Austin Time on the last calendar day of the month in which the covered individual's employer, or the employer of the individual under whom a dependent qualified for coverage, ceases to be a participating entity;(2) 11:59 p.m. Austin Time on the last calendar day of the month in which a covered individual, or the individual under whom a dependent qualified for coverage, terminates employment as determined by the participating entity, except as otherwise provided under §41.39 of this title (relating to Coverage for Individuals Changing Employers);(3) 11:59 p.m. Austin Time on the last calendar day of the month in which a covered individual, or the individual under whom a dependent qualified for coverage, is no longer eligible for coverage under TRS-ActiveCare under §41.34 of this title (relating to Eligibility for Coverage under the Texas School Employees Uniform Group Health Coverage Program);(4) 11:59 p.m. Austin Time on the date specified by the trustee if the covered individual, or the individual under whom a dependent qualified for coverage, is expelled from the program;(5) 11:59 p.m. Austin Time on the last calendar day of the month immediately preceding the month in which TRS receives a notification from a participating entity, in the form prescribed by TRS, that a covered individual failed to make a required monthly premium payment to the participating entity;(6) 11:59 p.m. Austin Time on the last calendar day of the month in which a covered individual enters into active, full-time military, naval, or air service, except as provided under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) or other applicable law;(7) 11:59 p.m. Austin Time on the last calendar day of the month in which the administering firm or TRS receives notice, in a form acceptable to TRS, that a covered individual, or the individual under whom a dependent qualified for coverage, has chosen to voluntarily drop coverage under TRS-ActiveCare;(8) 11:59 p.m. Austin Time on the last day of the month for which TRS-ActiveCare received payment if the participating entity employing the covered individual, or the individual under whom a dependent qualified for coverage, has failed to make all premium payments due for a period of 90 days or longer; or(9) the termination date and time that a health maintenance organization participating in TRS-ActiveCare provides for in its Evidence of Coverage for the reasons listed in that Evidence of Coverage.(b) Notwithstanding subsection (a) of this section, a covered individual who resigns his employment position with a participating entity effective after the last day of an instructional year and who is in \"good standing\" with TRS-ActiveCare at the time of the effective date of resignation, is entitled to automatically remain enrolled in TRS-ActiveCare, through the earlier of (1) the first anniversary of the date participation in or coverage under TRS-ActiveCare was first made available to employees of that participating entity for the last instructional year in which the covered individual was employed by the participating entity, or (2) the last calendar day before the first day of the instructional year immediately following the last instructional year in which the employee was employed by the participating entity, provided none of the events described in provisions of subsection (a) of this section occur after the effective date of the covered individual's resignation. Consequently, if the employer of the covered individual became a participating entity in TRS-ActiveCare on or before the September 1st that immediately preceded the effective date of resignation by the covered individual, then the covered individual may automatically be entitled to coverage through the August 31st that immediately follows the effective date of resignation, assuming termination does not sooner occur due to the occurrence of an event described in provisions of subsection (a) of this section after the effective date of the covered individual's resignation. Alternatively, if the employer of the covered individual became a participating entity in TRS-ActiveCare after the September 1st that immediately preceded the effective date of resignation by the covered individual, then the covered individual may automatically be entitled to coverage through the end of the 12th month of that participating entity's participation in TRS-ActiveCare, assuming termination does not sooner occur due to the occurrence of an event described in provisions of subsection (a) of this section after the effective date of the covered individual's resignation. A dependent enrolled in TRS-ActiveCare under a covered individual who qualifies for continued coverage pursuant to this subsection is also automatically entitled to remain enrolled in TRS-ActiveCare only for such time as the covered individual remains enrolled in TRS-ActiveCare. For purposes of this subsection only, the following applies:(1) A covered individual is in \"good standing\" with TRS-ActiveCare if, on the effective date of the individual's resignation:(A) the covered individual has not been expelled from TRS-ActiveCare;(B) TRS has not received a notification from the participating entity that employed the covered individual, in the form prescribed by TRS, that the covered individual failed to make a required monthly TRS-ActiveCare premium payment to the participating entity; and(C) neither the participating entity that employed the covered individual, nor the covered individual under whom a dependent qualified for coverage, failed to make all premium payments due for a period of 90 days or longer.(2) For each participating entity that provides instruction to students, the term \"instructional year\" shall be the locally established calendar period during which that participating entity holds classes, exclusive of summer school. In no event may this \"instructional year\" extend beyond June 30th.(3) For each participating entity that does not provide instruction to students, the participating entity may establish an \"instructional year\" that begins no earlier than August 1st and does not extend beyond June 30th.(4) If a participating entity does not establish an \"instructional year,\" the \"instructional year\" shall be deemed to begin on September 1st and to extend through May 31st.(5) Each participating entity shall have only one \"instructional year,\" which shall be applicable to all covered individuals employed by the participating entity.(c) For individuals receiving continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (Pub. L. 99-272) (\"COBRA\"), coverage shall terminate the earlier of:(1) 11:59 p.m. Austin Time on the last calendar day of the month immediately preceding the date on which TRS fails to receive a timely and complete monthly premium payment from an individual receiving COBRA continuation coverage; or(2) 11:59 p.m. Austin Time on the last calendar day of the month in which an individual's eligibility for COBRA continuation coverage expires or otherwise terminates.",
            "sourceNote": "Source Note: The provisions of this §41.38 adopted to be effective August 26, 2002, 27 TexReg 7970; amended to be effective December 26, 2002, 27 TexReg 12003; amended to be effective August 25, 2004, 29 TexReg 8134; amended to be effective March 8, 2007, 32 TexReg 1092; amended to be effective April 9, 2008, 33 TexReg 2825; amended to be effective April 1, 2011, 36 TexReg 2001; amended to be effective December 22, 2014, 39 TexReg 10029."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196259&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "196259",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS SCHOOL EMPLOYEES GROUP HEALTH (TRS-ACTIVECARE)"
            },
            "rule": {
                "number": "§41.39",
                "label": "Coverage for Individuals Changing Employers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=129464&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "129464",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A full-time or part-time employee enrolled in TRS-ActiveCare who, on or after September 1, 2011, changes employment from one participating entity to another participating entity within the same plan year may not change coverage plans or add dependents unless:(1) changes to add dependents are authorized due to a special enrollment event under provisions of the Health Insurance Portability and Accountability Act of 1996 (Pub. L. No. 104-191, 110 Stat. 1936 (1996));(2) an open-enrollment period exists on the first day of the new employment and the full-time or part-time employee makes such changes in compliance with open-enrollment conditions prescribed by the trustee; or(3) the new employment is with a participating entity that does not make available the option under which the individual was covered on the last date of previous employment, provided that options are offered under TRS-ActiveCare that are not applicable to all participating entities.(b) A full-time or part-time employee enrolled in TRS-ActiveCare who, on or before August 31, 2011, changes employment from one participating entity to another participating entity within the same plan year may not change coverage plans or add dependents unless:(1) changes to add dependents are authorized due to a special enrollment event under special enrollment provisions of TRS-ActiveCare;(2) an open-enrollment period exists on the first day of the new employment and the full-time or part-time employee makes such changes in compliance with open-enrollment conditions prescribed by the trustee; or(3) the new employment is with a participating entity that does not make available the option under which the individual was covered on the last date of previous employment, provided that options are offered under TRS-ActiveCare that are not applicable to all participating entities.(c) No break in coverage will occur for a full-time or part-time employee enrolled in TRS-ActiveCare who changes employment from one participating entity to another participating entity within the same plan year if all the criteria set forth in paragraphs (1) - (3) of this subsection are met. The former employer participating entity shall determine the last date of employment for purposes of this subsection.(1) The new employer makes available the same coverage option under which the full-time or part-time employee was enrolled on the last day of employment with the former employer;(2) The individual is employed by the new participating entity no later than the last day of the next calendar month after the last date of employment with the former participating entity employer; and(3) The individual promptly files an election to continue coverage with the new participating entity employer with coverage to be effective in the calendar month in which the individual is first employed with the new participating entity.(d) Full-time or part-time employees who initially waive coverage under TRS-ActiveCare may enroll during any open-enrollment period as prescribed by the trustee; however, they may not enroll due to a change in employment from one participating entity to another during the same plan year unless the change occurs during a concurrent open enrollment or the employee satisfies the requirements for an enrollment opportunity provided under Rule 41.36(b) of this title.",
            "sourceNote": "Source Note: The provisions of this §41.39 adopted to be effective August 26, 2002, 27 TexReg 7970; amended to be effective March 8, 2007, 32 TexReg 1092; amended to be effective April 9, 2008, 33 TexReg 2825; amended to be effective April 1, 2011, 36 TexReg 2001; amended to be effective September 1, 2011, 36 TexReg 5380; amended to be effective December 22, 2014, 39 TexReg 10029; amended to be effective August 15, 2019, 44 TexReg 4189."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=129464&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "129464",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS SCHOOL EMPLOYEES GROUP HEALTH (TRS-ACTIVECARE)"
            },
            "rule": {
                "number": "§41.40",
                "label": "Coverage Continuation While on Leave Without Pay"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196260&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "196260",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Full-time and part-time employees covered under TRS-ActiveCare who are placed on leave-without-pay-status by a participating entity in accordance with that entity's personnel policies, and their eligible covered dependents, may continue participation in TRS-ActiveCare in accordance with this section under the coverage plan in effect the day before leave without pay begins. For purposes of this section, \"leave-without-pay status\" includes unpaid leave taken in accordance with the Family and Medical Leave Act of 1993 or other applicable law.(b) Individuals who were placed on leave-without-pay status by a participating entity in accordance with that employer's personnel policies or applicable law prior to the date the employer became a participating entity may enroll in TRS-ActiveCare in accordance with §41.36 of this title (relating to Enrollment Periods for TRS-ActiveCare) if they were covered by the participating entity's health coverage plan on the day before the employer became a participating entity and provided they would meet eligibility requirements under §41.34 of this title (relating to Eligibility for Coverage under the Texas School Employees Uniform Group Health Coverage Program) but for their leave-without-pay status.(c) Individuals who were placed on leave-without-pay status by a participating entity in accordance with that employer's personnel policies or applicable law prior to the date the employer became a participating entity, but who were not covered by the participating entity's health coverage plan on the day before the employer became a participating entity, may enroll in TRS-ActiveCare in accordance with §41.36 of this title when they return to work and provided they meet eligibility requirements under §41.34 of this title.(d) Unless otherwise required by applicable law, continued coverage for an individual described in subsection (a) or (b) of this section shall terminate the earlier of:(1) 11:59 p.m. Austin Time on the last calendar day of the month for which premiums are paid;(2) 11:59 p.m. Austin Time on the last calendar day of the month in which the employment of the covered individual, or the individual under whom a dependent qualified for coverage, terminates as determined by the participating entity, except as otherwise provided under §41.39 of this title (relating to Coverage for Individuals Changing Employers);(3) 11:59 p.m. Austin Time on the last calendar day of the month in which a covered individual, or the individual under whom a dependent qualified for coverage, is no longer eligible for coverage under TRS-ActiveCare under §41.34 of this title due to requirements unrelated to leave-without-pay status; or(4) 11:59 p.m. Austin Time on the last calendar day of the sixth month following the month in which coverage continuation under this section began for either the covered individual, or for the individual under whom a dependent qualified for coverage.",
            "sourceNote": "Source Note: The provisions of this §41.40 adopted to be effective December 26, 2002, 27 TexReg 12003; amended to be effective March 8, 2007, 32 TexReg 1092."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196260&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "196260",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS SCHOOL EMPLOYEES GROUP HEALTH (TRS-ACTIVECARE)"
            },
            "rule": {
                "number": "§41.41",
                "label": "Premium Payments"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206413&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "206413",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Each participating entity shall remit to TRS the amount on each bill directed to the participating entity by TRS or the administering firm. The participating entity shall remit payment on or before the fifteenth day of each month in which TRS or the administering firm issued a bill. Payment shall be delivered in the same manner (e.g., currently, TEXNET) in which the participating entity delivers retirement contributions. Any waiver granted to a participating entity under §825.408(a), Government Code, does not apply to amounts billed under this section or to amounts otherwise owed to TRS for TRS-ActiveCare.(b) A participating entity will be billed for all full-time and part-time employees enrolled in TRS-ActiveCare who were employed by the participating entity on the date that TRS or its designee generates the bill for that billing month as reported by the participating entity. In addition, a participating entity will be billed retroactively for all full-time and part-time employees who enroll after the date on which the bill is generated for that month and choose coverage for that month. A participating entity will also be billed for any individual covered in accordance with §41.40 of this title (relating to Coverage Continuation While on Leave Without Pay). Participating entities are responsible for collecting all applicable premiums and other costs that are required to be paid by its full-time employees, part-time employees, and any individuals covered in accordance with §41.40 of this title. A participating entity shall remit the full amount billed each month.(c) Participating entities shall not modify the amount of any bill or remit any amount different from the amount billed. A participating entity shall report adopted adjustments, including those seeking credit for terminated employees, to the administering firm no later than the 45th day after the billing date. TRS may reject any adopted adjustments that are inappropriate or untimely, including those adjustments seeking credit for terminated employees reported later than 45 days after the billing date on which the employee was first incorrectly reported as eligible for coverage. Approved adjustments will be reflected on a subsequent bill.(d) TRS may take corrective action against a participating entity that fails to remit payment in accordance with the timelines and other requirements of this section, including but not limited to placement of a warrant hold with the Comptroller of Public Accounts.",
            "sourceNote": "Source Note: The provisions of this §41.41 adopted to be effective August 26, 2002, 27 TexReg 7970; amended to be effective October 27, 2003, 28 TexReg 9289; amended to be effective March 8, 2007, 32 TexReg 1092; amended to be effective October 10, 2013, 38 TexReg 6921; amended to be effective August 15, 2019, 44 TexReg 4189."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206413&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206413",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS SCHOOL EMPLOYEES GROUP HEALTH (TRS-ACTIVECARE)"
            },
            "rule": {
                "number": "§41.45",
                "label": "Required Information from School Districts, Other Educational Districts, Charter Schools, and Regional Education Service Centers Electing to Participate in TRS-ActiveCare"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196261&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "196261",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An eligible entity that submits a written election to participate in TRS-ActiveCare under §41.30 must include with the notice of election the information listed below for each medical and prescription drug plan that the entity offered to its employees during the designated time period. The entity must include this information for the year to date for the plan year in which the entity submits its notice of election (current year) and for the two complete plan years immediately preceding the current year. The required information is:(1) Plan type (PPO, POS, HMO, etc.), including the effective date of each plan;(2) Average number of employees participating in each plan;(3) Average number of covered lives in each plan;(4) Description of all medical and prescription drug benefits, including effective dates of any changes in each plan;(5) Total premium rates by family tier for each insured plan, including effective dates of any changes;(6) Total COBRA rates by family tier for each self-funded plan, including effective dates of any changes;(7) Required employee contribution rates by family tier for each plan, including effective dates of any changes;(8) Funding arrangement (fully insured, self-funded, etc.) for each plan;(9) Total premiums paid by year for each plan, if insured;(10) Total claims paid by year for each plan;(11) Employee counts by age, gender, and participation status;(12) A high cost claimant report; and(13) Any other summary health information that TRS may require.(b) Written notices of election to participate in TRS-ActiveCare under §41.30 without the information required under this section will be considered incomplete and will be denied by TRS. Entitles should reach out to TRS before the election deadline in §41.30 to ask questions and address issues related to the information that is required under this section.(c) TRS will not deny an entity's request to participate in TRS-ActiveCare based on any information provided to TRS in accordance with the requirements of this section.(d) TRS may prescribe the form in which entities must submit the information required by this section.",
            "sourceNote": "Source Note: The provisions of this §41.45 adopted to be effective June 18, 2003, 28 TexReg 4561; amended to be effective April 1, 2011, 36 TexReg 2001; amended to be effective October 17, 2021, 46 TexReg 6944."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196261&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "196261",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS SCHOOL EMPLOYEES GROUP HEALTH (TRS-ACTIVECARE)"
            },
            "rule": {
                "number": "§41.50",
                "label": "Appeals Relating to Claims or Other Benefits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198776&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "198776",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) For appeals that relate to claims or other benefits, the following procedures apply:(1) A person enrolled in TRS-ActiveCare, other than a person enrolled in a health maintenance organization (HMO) participating in TRS-ActiveCare, who is denied payment of a claim or other benefit (\"Claimant\") may appeal the denial through a written request filed with the administering firm in accordance with procedures established by the administering firm.(2) The final decision by the administering firm or by any external review organization, whichever occurs later, shall be the final decision on the appeal.(b) For appeals that relate to claims or other benefits, persons enrolled in an HMO under contract with TRS-ActiveCare shall follow the appeal procedures set out by the HMO.",
            "sourceNote": "Source Note: The provisions of this §41.50 adopted to be effective December 26, 2002, 27 TexReg 12004; amended to be effective October 27, 2003, 28 TexReg 9289; amended to be effective April 28, 2004, 29 TexReg 3969; amended to be effective August 25, 2004, 29 TexReg 8134; amended to be effective March 8, 2007, 32 TexReg 1092; amended to be effective March 25, 2008, 33 TexReg 2556; amended to be effective April 1, 2011, 36 TexReg 2001; amended to be effective September 1, 2011, 36 TexReg 5380; amended to be effective December 22, 2014, 39 TexReg 10029; amended to be effective August 15, 2019, 44 TexReg4189."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=198776&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "198776",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS SCHOOL EMPLOYEES GROUP HEALTH (TRS-ACTIVECARE)"
            },
            "rule": {
                "number": "§41.51",
                "label": "Appeals Relating to Eligibility"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170809&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170809",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A full-time or part-time employee (\"Petitioner\") whose application to enroll themselves and/or their dependents in TRS-ActiveCare is denied by either TRS, the administering firm, or a participating entity may appeal the denial to TRS.(b) An appeal made pursuant to subsection (a) of this section shall be made in writing and must be received by TRS no later than 45 days after the date of denial. The appeal shall be directed to the TRS-ActiveCare Grievance Administrator. TRS may, at its sole discretion, provide a copy of the appeal to the administering firm or the participating entity that denied enrollment.(c) An appeal made pursuant to subsection (a) of this section shall state the basis for appeal and shall include all relevant documents and correspondence that were considered by TRS, the administering firm, or a participating entity when the enrollment was denied. The administering firm or participating entity is required, upon request by TRS, to participate in the process.(d) The TRS Appeal Committee (\"Committee\") is responsible for the review and determination of appeals made pursuant to subsection (a) of this section. The Committee shall be appointed by the TRS Deputy Director or, if the position of the Deputy Director is vacant, the TRS Chief Financial Officer and shall serve at the discretion of the Deputy Director or, if the position of the Deputy Director is vacant, the Chief Financial Officer.(e) In determining eligibility for enrollment, the Committee shall apply the TRS-ActiveCare plan design and rules in effect for the plan year in which the Petitioner is seeking enrollment. If TRS finds that extraordinary circumstances constituting \"good cause\" prevented the Petitioner from complying fully with a deadline established by TRS under the TRS-ActiveCare plan design or rules, the appeal may be granted. For purposes of this subsection, \"good cause\" means that a person's failure to act was not because of a lack of due diligence the exercise of which would have caused a reasonable person to take prompt and timely action. A failure to act based on ignorance of the law or facts reasonably discoverable through the exercise of due diligence does not constitute good cause. If a person was reasonably prevented from complying with a deadline as a result of an unexpected natural disaster or sudden catastrophic event, that event may constitute \"good cause\" even though the event occurs on or near a deadline and arguably Petitioner could have met the deadline if Petitioner had acted sooner. Misinformation concerning a deadline provided to Petitioner by either TRS, the health plan administrator of TRS-ActiveCare, or a participating entity, and relied upon by Petitioner, may be grounds for \"good cause\" if the act of providing misinformation to Petitioner is documented or substantiated and a reasonable person would have relied on the information provided to Petitioner and reasonably would not have known the information provided to Petitioner was inaccurate.(f) The Committee shall notify the Petitioner, the administering firm, and the participating entity of its decision in writing.(g) If the Committee determines that the enrollment should be allowed, it shall inform the Petitioner, the administering firm, and the participating entity of the manner and effective date of enrollment by the Petitioner.(h) The Petitioner may appeal the written decision of the Committee relating to eligibility to the executive director.(1) A request for an appeal to the executive director must be submitted by the Petitioner in writing and must be received by TRS by the later of:(A) 30 days after the date the initial written decision by the Committee is mailed; or(B) a number of days after the decision of the Committee is mailed equal to the number of days it took the Committee to issue its decision.(2) The number of days it took the Committee to issue its decision is calculated from the date TRS received the Petitioner's appeal made pursuant to subsection (a) of this section to the date TRS mailed the Committee's decision.(3) The request for an appeal to the executive director shall be directed to the attention of the TRS-ActiveCare Grievance Administrator.(4) Subject to subsection (i) of this section and pursuant to the delegation of authority through this section, the decision of the executive director is the final decision of TRS.(i) The Committee shall review an appeal made pursuant to subsection (a) or (h) of this section for timeliness and may deny an appeal that is not timely received by TRS. An appeal made pursuant to subsection (a) or (h) of this section that is denied because TRS did not timely receive the appeal is a final decision by TRS.",
            "sourceNote": "Source Note: The provisions of this §41.51 adopted to be effective December 26, 2002, 27 TexReg 12004; amended to be effective March 8, 2007, 32 TexReg 1092; amended to be effective March 25, 2008, 33 TexReg 2556; amended to be effective April 1, 2011, 36 TexReg 2001; amended to be effective December 22, 2014, 39 TexReg 10029; amended to be effective March 19, 2020, 45 TexReg 1862."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170809&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170809",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS SCHOOL EMPLOYEES GROUP HEALTH (TRS-ACTIVECARE)"
            },
            "rule": {
                "number": "§41.52",
                "label": "Expulsion from TRS-ActiveCare"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=215246&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "215246",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The trustee, acting through the executive director, may expel from participation in TRS-ActiveCare a participant who submits or causes to be submitted a false or fraudulent claim or enrollment application, or who has defrauded or attempted to defraud, any health benefits plan or pharmacy benefits plan offered under TRS-ActiveCare.(b) Upon receipt of a complaint or upon its own motion, the TRS staff may file a petition for expulsion with the executive director. The executive director may docket the petition and refer the matter for an adjudicative hearing before the State Office of Administrative Hearings or otherwise as authorized by law. If a petition is docketed, the provisions of Chapter 43 of this title (relating to Contested Cases) shall apply to the proceeding.(c) Following a hearing, the executive director may expel a person from participation in TRS-ActiveCare for a period of time not to exceed five years if the executive director finds that the person submitted or caused to be submitted a false or fraudulent claim or enrollment application or has defrauded or attempted to defraud any health benefits plan or pharmacy benefits plan offered under TRS-ActiveCare. Pursuant to the delegation of authority through this section, the order of the executive director is the final decision of TRS.",
            "sourceNote": "Source Note: The provisions of this §41.52 adopted to be effective December 26, 2002, 27 TexReg 12004; amended to be effective March 8, 2007, 32 TexReg 1092; amended to be effective December 22, 2014, 39 TexReg 10029."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=215246&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "215246",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "41",
                "label": "HEALTH CARE AND INSURANCE PROGRAMS"
            },
            "subchapter": {
                "number": "C",
                "label": "TEXAS SCHOOL EMPLOYEES GROUP HEALTH (TRS-ACTIVECARE)"
            },
            "rule": {
                "number": "§41.53",
                "label": "Special Transitional Plan"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223187&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223187",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Special Transitional Plan. In order to transition an entity into the TRS-ActiveCare plan year, TRS may establish a short duration Special Transitional Plan for an otherwise eligible entity that has an existing group health plan year that does not terminate the day preceding the beginning of the regular TRS-ActiveCare plan year. The purpose of the Special Transitional Plan is to assist an entity to transition into the TRS-ActiveCare plan year by covering the gap period between the end of the entity's existing coverage and the beginning of the regular TRS-ActiveCare plan year coverage.(b) Notice of election and required information. An entity applying to a Special Transitional Plan (\"applicant entity\") must:(1) Submit to TRS the information required under §41.45 of this title (relating to Required Information from School Districts, Other Educational Districts, Charter Schools, and Regional Education Service Centers Electing to Participate in TRS-ActiveCare) at least 180 days in advance of the first day of the month in which the Special Transitional Plan is to be effective; and(2) Submit an application to the Special Transitional Plan and a notice of election to participate in the regular TRS-ActiveCare plan under §41.30 of this title (relating to Participation in the Health Benefits Program under the Texas School Employees Uniform Group Health Coverage Act by School Districts, Other Educational Districts, Charter Schools, and Regional Education Service Centers) at the same time. Such application and election to participate must be submitted no later than 90 days in advance of the first day of the month in which the Special Transitional Plan is to be effective and never later than December 31 of the year before the plan year in which the election to participate in TRS-ActiveCare is to be made effective.(c) Manner, form, and effect of election.(1) Application for the Special Transitional Plan. All applications for a Special Transitional Plan under this section shall be in writing, in a form prescribed by TRS.(2) Incomplete or untimely applications. An incomplete or untimely filed application to a Special Transitional Plan will be denied.(3) Duration. A Special Transitional Plan issued by TRS under this section shall have a duration of less than a year, shall begin on the TRS approved date, and shall end on the day before the regular TRS-ActiveCare plan year begins.(d) Coverage. The Special Transitional Plan shall have the same benefits and coverage as one or more of the TRS-ActiveCare plan options being offered to similar participating entities in the applicant entity's region on the day that the applicant entity begins the Special Transitional Plan, except for any fully insured HMO plan options. Such terms shall include those of §41.33 of this title (relating to Definitions Applicable to the Texas School Employees Uniform Group Health Coverage Program) through §41.40 of this title (relating to Coverage Continuation While on Leave Without Pay), except as modified by TRS to adjust them to the limited-time nature and effective dates of the Special Transitional Plan.(e) Eligibility. Individuals shall be eligible for the Special Transitional Plan under the same eligibility requirements as the TRS-ActiveCare Plan, as described in §41.34 of this title (relating to Eligibility for Coverage under the Texas School Employees Uniform Group Health Coverage Program).(f) Rates and Premiums. The Special Transitional Plan may have rates that differ from the rates that apply to other similar entities participating in the TRS-ActiveCare Plan in the applicant entity's region. The applicant entity shall pay its premiums for the Special Transitional Plan in the same way that participating entities pay the premiums for the TRS-ActiveCare Plan under §41.41 of this title (relating to Premium Payments) and be subject to the same corrective actions.(g) Enrollment periods. The applicant entity must participate in two different open enrollments after the date of their application: one enrollment period for the Special Transitional Plan, which will begin at least 31 days prior to the beginning of the Special Transitional Plan; and another enrollment period for the regular TRS-ActiveCare Plan, in accordance with §41.36 of this title (relating to Enrollment Periods for TRS-ActiveCare).(h) Appeals. The appeals processes for claims, benefits, and eligibility under the Special Transitional Plan shall be the same as those that apply to the regular TRS-ActiveCare Plan.(i) Expulsion. The Special Transitional Plan shall follow the same expulsion process as the regular TRS-ActiveCare Plan, as described in §41.52 of this title (relating to Expulsion from TRS-ActiveCare).(j) Responsibility for notices, disclosures, and administrative adjustments. It is the applicant entity's responsibility to give to its employees, eligible dependents, agents, contractors, and administrators all necessary notices and disclosures about any short-term and long-term implications of joining TRS-ActiveCare on a different date than the applicant entity's plan year through the Special Transitional Plan, and to conduct any necessary administrative adjustments.",
            "sourceNote": "Source Note: The provisions of this §41.53 adopted to be effective October 5, 2023, 48 TexReg 5740."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223187&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223187",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL ADMINISTRATION"
            },
            "rule": {
                "number": "§43.1",
                "label": "Applicability"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223188&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223188",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The procedures of this chapter apply only to administrative decisions, appeals, and adjudicative hearings relating to the TRS pension plan, unless rules relating to other programs specifically adopt by reference the provisions of this chapter.(b) The procedures of this chapter do not apply to determinations of whether a domestic relations order is a qualified domestic relations order (QDRO) under Chapter 47 of this title (relating to Qualified Domestic Relations Orders). Appeals relating to QDROs are subject to the requirements of Chapter 47.(c) If a contested case under this chapter is referred to the State Office of Administrative Hearings (SOAH) for adjudicative hearing, then during the period of time the case is before SOAH, the procedural rules for SOAH (1 TAC Chapter 155) shall apply unless inconsistent with applicable statutes or constitutional provisions. If a matter is referred for an adjudicative hearing to a hearing official not affiliated with SOAH, then the rules of Subchapter C of this chapter (relating to Hearings Not Docketed at SOAH) shall apply to the conduct of the hearing while pending before the hearing official.",
            "sourceNote": "Source Note: The provisions of this §43.1 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223188&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223188",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL ADMINISTRATION"
            },
            "rule": {
                "number": "§43.2",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223189&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223189",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise:(1) Administrative law judge--An individual appointed to conduct the adjudicative hearing in a contested case. The deputy director may refer an appeal to be heard by an administrative law judge employed by the State Office of Administrative Hearings or may employ, select, or contract for the services of another administrative law judge or hearing examiner to conduct a hearing.(2) Appeal--A formal request to the executive director or board, as applicable under this chapter, to reverse or modify a final administrative decision by the chief benefit officer or the Medical Board on a matter over which TRS has jurisdiction and authority to grant relief.(3) Board--The Board of Trustees of TRS.(4) Chief Benefit Officer--The Chief Benefit Officer of TRS or person acting in that position.(5) Contested case--A proceeding in which the legal rights, duties, or privileges of a party are to be determined by TRS after an opportunity for adjudicative hearing on a matter over which TRS has jurisdiction and authority to grant relief and the relief sought does not conflict with the terms of the pension plan.(6) Deputy Director--The Deputy Director of TRS or person acting in that position.(7) Executive director--The executive director of TRS or person acting in that position; when the executive director determines that a need exists, the executive director at his or her discretion may designate a person to accomplish the duties assigned in this chapter to the executive director.(8) Final administrative decision--An action, determination, or decision by the chief benefit officer or the Medical Board, as applicable, based on review of a person's request on an administrative basis (i.e., without an adjudicative hearing).(9) Final decision of TRS--A decision that may not be appealed further within TRS, either because of exhaustion of all opportunities for appeal within TRS or because of a failure to appeal the decision further within TRS in the manner provided for in this chapter.(10) Medical board--The medical board appointed by the TRS board of trustees under Government Code §825.204.(11) Member--A person who is a member, retiree, or beneficiary of TRS.(12) Order--The whole or a part of the final disposition of an appeal, whether affirmative, negative, injunctive, or declaratory in form, of the executive director, deputy director, or the board in a contested case.(13) Party--Each person named or admitted in a contested case.(14) Person--Any natural person or other legal entity.(15) Pleading--A written document that is submitted by a party, by TRS staff, or by a person seeking to participate in a case as a party and that requests procedural or substantive relief, makes claims or allegations, presents legal arguments, or otherwise addresses matters involved in a contested case.(16) SOAH--The State Office of Administrative Hearings.(17) State Office of Administrative Hearings--The state agency established by Chapter 2003, Government Code, which may serve as the forum for the conduct of an adjudicative hearing upon referral of an appeal by TRS.(18) Third party respondent or petitioner--A person joined as an additional party to a proceeding; a party shall be designated as either a third party respondent or third party petitioner based on whether the person opposes the action requested in the petition or supports it or whether the person's interests are aligned with petitioner or respondent.(19) TRS--The Teacher Retirement System of Texas.(20) Trustee--One of the members of the board.(21) With prejudice--Barring a subsequent contested case on the same claim, allegation, or cause of action.",
            "sourceNote": "Source Note: The provisions of this §43.2 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223189&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223189",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL ADMINISTRATION"
            },
            "rule": {
                "number": "§43.3",
                "label": "Filing of Documents"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223190&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223190",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All documents relating to any appeal of a final administrative decision shall be filed with the deputy director at TRS, 1000 Red River Street, Austin, Texas 78701-2698. A document may be filed with TRS by hand-delivery, courier-receipted delivery, facsimile transmission, or regular, certified, or registered mail. A document is deemed filed when mailed if it is received by TRS within a timely manner under Rule 5 of the Texas Rules of Civil Procedure and the sender provides adequate proof of the mailing date.(b) If the deputy director has docketed an appeal and referred it for adjudicative hearing at SOAH, documents shall be filed in accordance with the procedural rules of SOAH and served upon TRS in accordance with those rules.(c) If the deputy director has docketed an appeal and referred it to an administrative law judge or other hearing official not affiliated with SOAH, documents shall be filed with the administrative law judge and a copy provided to the TRS docket clerk during the time the matter is pending before the administrative law judge.",
            "sourceNote": "Source Note: The provisions of this §43.3 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223190&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223190",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL ADMINISTRATION"
            },
            "rule": {
                "number": "§43.4",
                "label": "Computation of Time"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223191&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223191",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "In computing any period of time prescribed or allowed by this chapter, by order of the deputy director, executive director, or board, or by any applicable statute, the period shall begin on the day after the act, event, or default in question, and it shall conclude on the last day of that designated period, unless the last day is a Saturday, Sunday, or legal holiday, in which event the period runs until the end of the next day that is not a Saturday, Sunday, or a legal holiday.",
            "sourceNote": "Source Note: The provisions of this §43.4 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223191&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223191",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL ADMINISTRATION"
            },
            "rule": {
                "number": "§43.5",
                "label": "Extensions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223192&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223192",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Unless otherwise provided by statute, the time for filing pleadings or other documents may be extended, upon the filing of a motion, prior to the expiration of the applicable period of time, showing that there is good cause for such extension of time and that the need for the extension is not caused by the neglect, indifference, or lack of diligence of the party making the motion.(b) A copy of any such motion shall be served upon all other parties of record to the proceeding contemporaneously with its filing.(c) In the case of filings that initiate a proceeding or that are made before an appeal has been referred for an adjudicative hearing, the deputy director will determine whether good cause exists and whether an extension should be granted.(d) In the case of filings made in a proceeding after TRS has referred the appeal for an adjudicative hearing, rules governing hearings before SOAH will control so long as the matter is before SOAH.(e) If a matter is referred for an adjudicative hearing to a hearing official not affiliated with SOAH, then the rules of this chapter shall apply to the conduct of the hearing while pending before the hearing official.(f) For matters returned by an administrative law judge or hearing examiner to TRS, either through dismissal from the adjudicative hearing docket or through issuance of a proposal for decision, the executive director may determine whether good cause exists and whether an extension should be granted.(g) The executive director is authorized to rule on motions for extensions on matters directed to the Board if no Board meeting is scheduled before the expiration of the applicable period of time.",
            "sourceNote": "Source Note: The provisions of this §43.5 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223192&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223192",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL ADMINISTRATION"
            },
            "rule": {
                "number": "§43.6",
                "label": "Ex Parte Consultations"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223193&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223193",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Unless required for the disposition of ex parte matters authorized by law, the executive director, the administrative law judge, and any member of the board who may render a decision that may become final under this chapter or make findings of fact and conclusions of law in a contested case may not communicate, directly or indirectly, in connection with any issue of fact or law with any agency, person, party, or their representatives, except on notice and opportunity for all parties to participate. To the extent permitted by law, the executive director, the administrative law judge, and any member of the board who may render a decision that may become final under this chapter or make findings of fact and conclusions of law in a contested case, may communicate ex parte with employees of TRS who have not participated in any hearing in the case for the purpose of utilizing the special skills or knowledge of TRS and its staff in evaluating the evidence.",
            "sourceNote": "Source Note: The provisions of this §43.6 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223193&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223193",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "A",
                "label": "GENERAL ADMINISTRATION"
            },
            "rule": {
                "number": "§43.7",
                "label": "Procedures Not Otherwise Provided"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223194&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223194",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "If, in connection with any hearing, the board of trustees, the executive director, the deputy director, or the administrative law judge, as applicable, determines that there are no statutes or other applicable rules resolving particular procedural questions in the proceedings, the parties shall follow procedures consistent with the purpose of this chapter.",
            "sourceNote": "Source Note: The provisions of this §43.7 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223194&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223194",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "B",
                "label": "REQUESTS FOR ADJUDICATIVE HEARING"
            },
            "rule": {
                "number": "§43.101",
                "label": "Administrative Review of Individual Requests"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223195&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223195",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) TRS is divided into administrative divisions, which are further divided into departments, for the efficient implementation of its duties. Any person who desires any action from TRS must consult with the proper department within TRS and comply with all proper requirements for completing forms and providing information to that department.(b) In the event that a person is adversely affected by a determination, decision, or action of department personnel, the person may appeal the determination, decision, or action to the appropriate manager within the department, and then to the chief benefit officer of TRS. The chief benefit officer shall mail a final written administrative decision, which shall include:(1) the chief benefit officer's determination regarding the person's appeal and reasons for denying the appeal, if applicable; and(2) a statement that if the person is adversely affected by the decision, the person may request an adjudicative hearing to appeal the decision and the deadline for doing so.(c) An appeal to the chief benefit officer as described by subsection (b) of this section must be submitted by the later of:(1) 45 days after the date the decision of the department manager is mailed; or(2) the number of days after the date the decision of the department manager is mailed equal to the number of days it took TRS to issue the decision of the department manager.(d) The number of days it took TRS to issue the decision of the department manager is calculated from the date TRS received the person's appeal of the determination, decision, or action of department personnel to the date TRS mailed the decision of the department manager.(e) A person adversely affected by a decision of the chief benefit officer may request an adjudicative hearing to appeal the decision of the chief benefit officer as provided in §43.104 of this chapter (relating to Request for Adjudicative Hearing). The deputy director shall determine whether the appeal should be docketed and set for a contested case hearing pursuant to §43.105 of this chapter (relating to Docketing of Petition for Adjudicative Hearing and Dismissal for Failure to Obtain Setting).",
            "sourceNote": "Source Note: The provisions of this §43.101 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223195&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223195",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "B",
                "label": "REQUESTS FOR ADJUDICATIVE HEARING"
            },
            "rule": {
                "number": "§43.102",
                "label": "Administrative Review of Disability Determinations"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223196&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223196",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In the event that the Medical Board does not certify disability of a member under Government Code §824.303(b), or the Medical Board certifies that a disability retiree is no longer mentally or physically incapacitated for the performance of duty under Government Code §824.307(a), the member or retiree may request reconsideration and submit additional information to the Medical Board.(b) The Medical Board shall consider a request for reconsideration and additional information and make a determination on the disability of the member or retiree. If a request for reconsideration has been denied, a member or retiree may appeal the decision by requesting an adjudicative hearing as provided in §43.104 of this chapter (relating to Request for Adjudicative Hearing).(c) The deputy director shall determine whether the petition should be docketed and set for a contested case hearing pursuant to §43.105 of this chapter (relating to Docketing of Petition for Adjudicative Hearing and Dismissal for Failure to Obtain Setting).(d) A party who requests to adjudicative hearing pursuant to this section consents to the public discussion by the board of trustees of all relevant facts, including information in the member's file that may otherwise be confidential by law, when the board considers the proposal of decision of an administrative law judge in the party's appeal.",
            "sourceNote": "Source Note: The provisions of this §43.102 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223196&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223196",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "B",
                "label": "REQUESTS FOR ADJUDICATIVE HEARING"
            },
            "rule": {
                "number": "§43.103",
                "label": "Administrative Review of Option Beneficiary or Optional Retirement Annuity Plan Changes"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223197&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223197",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A determination by the executive director or the executive director's designee regarding whether a court with jurisdiction over the marriage of a retiree and the beneficiary of an optional annuity selected by the retiree under Government Code §824.204(c)(1), (c)(2), or (c)(5) or an optional disability annuity selected by the retiree under Government Code §824.308(c)(1), (c)(2), or (c)(5) has approved or ordered a change in retirement plan under Government Code §824.1012, or a change in beneficiary under Government Code §824.1013, is a final decision by TRS. No appeal to the board of trustees of TRS is authorized. A party adversely affected by a determination of the executive director or the designee must file a motion for reconsideration with the executive director no later than 25 days after the date such a determination is rendered if the party wishes to contest the determination.",
            "sourceNote": "Source Note: The provisions of this §43.103 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223197&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223197",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "B",
                "label": "REQUESTS FOR ADJUDICATIVE HEARING"
            },
            "rule": {
                "number": "§43.104",
                "label": "Request for Adjudicative Hearing"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223198&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223198",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) On a matter over which TRS has jurisdiction and authority to grant relief that does not conflict with the terms of the pension plan, a person may appeal a final administrative decision by filing a petition for adjudicative hearing with the deputy director.(b) A petition for adjudicative hearing must be filed by the later of:(1) 45 days after the date the final administrative decision is mailed; or(2) a number of days after the final administrative decision is mailed equal to the number of days it took TRS to issue the final administrative decision.(c) The number of days it took TRS to issue the final administrative decision is calculated from the date TRS received the person's appeal of the department manager's decision to the date TRS mailed the final administrative decision.(d) The original petition for an adjudicative hearing should be styled: \"Petition of (Name of Petitioner)\" and must be filed with TRS, directed to the attention of the deputy director. The petition must include:(1) the name, address, telephone number, and email address of petitioner;(2) the name, address, telephone number, email address, and, if known, the tax number of any member whose interest or whose beneficiary's interest may be involved in the case. In lieu of the tax number, the petition may include other information sufficient to identify the member or beneficiary whose interest may be involved in the case;(3) the identity of other all persons who may have a material interest in the outcome of the case, the basis for that interest, and such person's last known address, telephone number, and email address; and(4) a concise statement of the facts supporting the petition and a statement of the specific relief requested from TRS.",
            "sourceNote": "Source Note: The provisions of this §43.104 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223198&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223198",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "B",
                "label": "REQUESTS FOR ADJUDICATIVE HEARING"
            },
            "rule": {
                "number": "§43.105",
                "label": "Docketing of Petition for Adjudicative Hearing and Dismissal for Failure to Obtain Setting"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223199&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223199",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Subject to subsection (b) of this section, the deputy director shall assign a petition for adjudicative hearing a TRS docket number, provide all parties notice of the docket number, and refer the matter for an adjudicative hearing before SOAH or otherwise as authorized by law if the petition regards the following:(1) any matter related to a member's service or disability retirement, death or survivor benefits, or request for refund of accumulated contributions;(2) the eligibility of a person for membership in TRS;(3) the amount of annual compensation credited by TRS;(4) the amount of deposits or fees required of a member;(5) any matter involving the granting, purchase, transfer, or establishment of service credit;(6) any application for correction of error in the file of a member, beneficiary, or alternate payee, other than a determination of whether an order is a QDRO;(7) the cancellation or suspension of retirement, survivor, or death benefits; or(8) any other matter affecting eligibility for retirement and related disability and death benefits or the amount of such benefits payable under the laws governing TRS.(b) Notwithstanding subsection (a) of this section, the deputy director may decline to docket an appeal for the following reasons:(1) TRS has no jurisdiction over the subject matter of the petition;(2) TRS does not have the authority to grant the relief requested by the petition;(3) the petition is not timely filed; or(4) the petition otherwise fails to comply with this chapter.(c) The deputy director's decision declining to docket an appeal is the final decision of TRS when the circumstances described in Government Code §2001.144, are met. A person may not appeal such decision to the executive director or the board. A person may file a motion for rehearing with the deputy director in accordance with §43.306 of this chapter (relating to Rehearings).(d) Prior to docketing a petition, the deputy director may review the request filed with TRS to determine whether it meets the requirements of §43.104 of this chapter (relating to Request for Adjudicative Hearing). If the petition does not materially comply with §43.104 of this chapter, the deputy director shall return the petition to the person who filed it, along with reasons for the return. The person shall be given 60 days from the date the deputy director sends the notice to file a corrected petition. If the petition is not corrected to substantially comply with §43.104 of this chapter within the time given, the deputy director may decline to docket the appeal.(e) A party that files an appeal and causes a matter to be docketed and referred to for adjudicative hearing shall have the responsibility of prosecuting the appeal within a reasonable time period. TRS may seek dismissal with prejudice of an appeal if a responsible party fails to obtain a setting for a hearing on the merits within two years of referral of the matter for an adjudicative hearing.",
            "sourceNote": "Source Note: The provisions of this §43.105 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223199&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223199",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "B",
                "label": "REQUESTS FOR ADJUDICATIVE HEARING"
            },
            "rule": {
                "number": "§43.106",
                "label": "Authority to Grant Relief"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223200&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223200",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) At any time before an appeal is referred for adjudicative hearing, the chief benefit officer or, in the matter of certification for disability retirement, the Medical Board may grant the relief sought by the petitioner and dismiss the appeal, provided that the interests of other individual parties are not adversely affected and the relief does not conflict with the terms of the pension plan.(b) If the granted appeal has been referred to SOAH, the parties shall request that the SOAH administrative law judge dismiss the case from the SOAH docket in accordance with SOAH rules. If the granted appeal was referred for an adjudicative hearing to a hearing official not affiliated with SOAH, then the rules of Subchapter C of this chapter (relating to Hearings Not Docketed at SOAH) shall apply to the dismissal of the case.",
            "sourceNote": "Source Note: The provisions of this §43.106 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223200&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223200",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "B",
                "label": "REQUESTS FOR ADJUDICATIVE HEARING"
            },
            "rule": {
                "number": "§43.107",
                "label": "Subpoenas and Commissions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223201&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223201",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as provided in subsection (d) of this section, the issuance of a subpoena in any proceeding under this chapter shall be governed by the Administrative Procedure Act, Government Code §2001.089. Upon a written request by a party showing good cause and payment of required fees, or upon the request of the administrative law judge, the deputy director may issue a subpoena addressed to the sheriff or a constable to require the attendance of witnesses or the production of books, records, papers, or other objects as may be necessary and proper for the purposes of a hearing.(b) The issuance of a commission in any proceeding under this subchapter shall be governed by the Administrative Procedure Act, Government Code §2001.094. Upon a written motion of a party and payment of required fees, or on the request of the administrative law judge, the deputy director may issue a commission addressed to the officers authorized by statute to take a deposition, requiring that the deposition of a witness be taken.(c) Subpoenas and commissions shall be issued by the deputy director only after a deposit of sums sufficient to ensure payment of expenses incident to the subpoenas. Payment of witness fees shall be made in the manner prescribed in the Administrative Procedure Act, Government Code §2001.103.(d) Members of the Medical Board may not be the subject of a subpoena regarding findings or determinations made in assisting the deputy director or the board of trustees in all matters referred to it.",
            "sourceNote": "Source Note: The provisions of this §43.107 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223201&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223201",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.201",
                "label": "Applicability"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223202&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223202",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The provisions of this subchapter only apply to an adjudicative hearing referred to a hearing official not affiliated with SOAH.",
            "sourceNote": "Source Note: The provisions of this §43.201 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223202&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223202",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.202",
                "label": "Form of Pleadings"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223203&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223203",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Briefs and other pleadings shall be typed or printed on paper not to exceed 8 1/2 inches by 11 inches with an inside margin of at least one inch width. Annexed exhibits shall be folded to the same size. Only one side of the paper shall be used. Copies may be used, provided they are clear and permanently legible.(b) The pleadings shall state their object and shall contain a concise statement of the supporting facts.(c) The original of any pleading filed with TRS shall be signed by the party filing it or by his or her authorized representative. Pleadings shall contain the address, telephone number, and email address of the party filing the documents or the name, business address, telephone number, email address, and fax number of counsel.(d) If a TRS or other adjudicative hearing docket number has been assigned, pleadings shall contain the docket number.(e) All pleadings shall contain the following:(1) the name of the party filing the pleading;(2) a concise statement of the facts relied upon by the party;(3) a request stating the type of relief, action, or order desired by the party;(4) a certificate of service conforming to subsection (f) of this section; and(5) any other matter required by statute.(f) Written pleadings may be served by hand-delivery, courier-receipted delivery, fax, or regular, certified, or registered mail upon all other known parties of record, and a certification of such service should be submitted with the original copy of the pleading filed with TRS. If a party is represented by an attorney, service may be made upon a party by serving the attorney of record. The following form of certification will be sufficient: \"I hereby certify that I have this _____ day of ____________________, 20__, served copies of the foregoing pleading upon all other parties to this proceeding, by (state the manner of service). Signature.\"(g) A party may object to the form or sufficiency of a pleading by filing the objections in writing at least 15 days before the hearing date. If the objections are sustained, the administrative law judge shall allow a reasonable time for amendment.",
            "sourceNote": "Source Note: The provisions of this §43.202 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223203&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223203",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.203",
                "label": "Filing of Pleadings and Amendments"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223204&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223204",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Any party to a case may file answers, amendments to pleadings (as permitted by this subchapter), and motions that conform to the requirements of this subchapter. Any amendment that operates as a surprise to any other party may be allowed only upon a written motion showing no harm will result. Failure to file an answer shall in no case result in a default judgment.(b) The filing of motions, answers, amended pleadings, and corrected pleadings shall not be permitted to delay any hearing unless the executive director, board of trustees, or administrative law judge determines that such delay is necessary in order to prevent injustice or to protect the public interest and welfare.",
            "sourceNote": "Source Note: The provisions of this §43.203 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223204&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223204",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.204",
                "label": "Briefs"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223205&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223205",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Briefs shall conform, where practicable, to the form requirements of pleadings set out in this subchapter. The points involved shall be concisely stated, the allegations in support of each point shall be summarized, and the argument and authorities shall be organized and directed to each point in a concise and logical manner.",
            "sourceNote": "Source Note: The provisions of this §43.204 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223205&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223205",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.205",
                "label": "Motions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223206&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223206",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A motion, unless made during a hearing, shall be made in writing, set forth the relief or order sought, state the grounds for such relief, and be timely filed with TRS, and the administrative law judge. A copy shall be served by the movant on each party of record. Any reply to the motion shall be timely filed with TRS or the administrative law judge, as applicable, with a copy served on the movant and other parties of record. Failure to serve copies may be grounds for withholding consideration of the motions or replies. Unless otherwise directed by the administrative law judge, executive director, or board, motions based on matters which do not appear of record must be supported by affidavit. When necessary, a hearing will be held to consider any motion.",
            "sourceNote": "Source Note: The provisions of this §43.205 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223206&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223206",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.206",
                "label": "Discovery"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223207&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223207",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "If a matter was referred for an adjudicative hearing to a hearing official not affiliated with SOAH, parties may obtain discovery under this subchapter or under SOAH's relevant procedural rules (1 TAC §§155.251-155.259 (relating to Discovery)) to the extent those rules do not conflict with this subchapter.",
            "sourceNote": "Source Note: The provisions of this §43.206 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223207&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223207",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.207",
                "label": "Notice of Hearing and Other Action"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223208&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223208",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Notices of hearing, proposals for decision, and all other rulings, orders, and actions by TRS, or an administrative law judge, as applicable, shall be served upon all parties or their attorneys of record in person or at their last known address by mail. Service by mail is complete upon deposit in the mail, properly addressed, with postage prepaid if it is received by TRS within a timely manner under Rule 5 of the Texas Rules of Civil Procedure and the sender provides adequate proof of the mailing date. Service may also be accomplished by electronic mail or facsimile transmission if all parties agree. In that case, the sender shall retain the original of the document and file it upon request with the administrative law judge or the executive director, as applicable. Upon request, the sender has the burden of proving the date and time of receipt of the document served by facsimile transmission or electronic mail. Electronic mail may not be used with documents produced pursuant to a discovery request. On motion by any party or on its own motion, TRS may serve notice of a hearing on any person whose interest in the subject matter will be directly affected by the final decision in the case.(b) All initial hearing notices shall include the following:(1) a statement of time, place, and nature of the hearing;(2) a statement of the legal authority and jurisdiction under which the hearing is to be held;(3) a reference to the particular sections of the statutes and rules involved;(4) a short, plain statement of the factual matters asserted. If TRS or a party is unable to state the matters in detail at the time the notice is served, the initial notice may be limited to a statement of the issues involved. Thereafter, upon written application filed not less than ten days before the date set for hearing, a more definite and detailed statement must be furnished not less than seven days prior to the date set for the hearing; and(5) a statement that failure to appear at the prehearing conference or any scheduled hearing may result in the following: the facts alleged by TRS may be admitted as true; the relief requested by TRS may be granted; petitioner's appeal may be denied; or petitioner's appeal may be dismissed with prejudice for failure to prosecute the claim; or any or all of the foregoing actions.(c) After service of the initial notice, any party wishing to raise issues or matters not set forth in the initial notice must do so by filing a motion which sets forth such issues or matters not less than 30 days before the date set for hearing. If the motion is granted, the administrative law judge shall give notice, not less than 20 days before the date of hearing, of the additional issues and matters to be decided in the contested case.(d) All other notices in a contested case shall set forth only the additional issues and matters to be decided.",
            "sourceNote": "Source Note: The provisions of this §43.207 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223208&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223208",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.208",
                "label": "Agreements to be in Writing"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223209&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223209",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "No stipulation or agreement between the parties, their attorneys, or representatives, with regard to any matter involved in any proceeding governed by this subchapter, shall be enforced unless it shall have been reduced to writing and signed by the parties or the representatives authorized by this subchapter to appear for them, or unless it shall have been dictated into the record by them during the course of a hearing or incorporated into an order bearing their written approval. This section does not limit a party's ability to waive, modify, or stipulate any right or privilege afforded by this subchapter, unless precluded by law.",
            "sourceNote": "Source Note: The provisions of this §43.208 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223209&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223209",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.209",
                "label": "Motion for Consolidation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223210&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223210",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A motion for consolidation of two or more appeals, applications, petitions, or other proceedings shall be in writing, signed by the movant or the movant's attorney, and filed with SOAH, TRS, or the administrative law judge, as applicable, prior to the date set for hearing. The motion shall state the number and style of all proceedings sought to be consolidated, and the movant shall file a copy of the motion in each proceeding. No two or more appeals, applications, petitions, or other proceedings shall be consolidated or heard jointly without the consent of all parties to all such proceedings unless the administrative law judge or executive director shall find that the two or more appeals, applications, petitions, or other proceedings involve common questions of law or fact, or both, and shall further find that separate hearings would result in unwarranted expense, delay, or substantial injustice. Special hearings on separate issues may also be allowed.",
            "sourceNote": "Source Note: The provisions of this §43.209 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223210&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223210",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.210",
                "label": "Additional Parties"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223211&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223211",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A person who may be affected by a decision of TRS in the proceeding may file a written motion to intervene at least 15 days in advance of the hearing date. The person may request an opportunity to present any relevant, material, and proper testimony and evidence bearing upon the request to intervene.(b) A party may move to join other persons as parties to the proceeding if they may be affected by a final decision of TRS. A motion to join other parties shall identify the person by name, address, and telephone number; shall state the nature of the other person's relationship to the proceeding or potential interest in the proceeding; and shall state why the person is needed for the just adjudication of the appeal or other grounds for the motion. The motion shall also state whether joinder of the person is feasible. If the motion is granted, the person shall be a party to the proceeding.",
            "sourceNote": "Source Note: The provisions of this §43.210 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223211&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223211",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.211",
                "label": "Appearance and Representation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223212&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223212",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A party or person seeking to be admitted as a party may appear at a hearing or prehearing conference in person or by an attorney. A natural person may not be represented by another person who is not an attorney. An entity other than a natural person that is a party or that seeks to be admitted as a party may appear through a person with legal authority to act on behalf of the entity, such as an officer, director, or trustee, or may be represented by an attorney.(b) An attorney representing a person or party in a proceeding must be authorized to practice law in the court of highest jurisdiction of any state of the United States or the District of Columbia. The attorney of record of any party shall be the attorney who signs the first pleading filed on behalf of the party or who files with TRS or the administrative law judge, as applicable, a written notice signed by the party designating the attorney as attorney of record in the case. An attorney appearing on behalf of a party may be required to show authority to act for the party. Nothing in this subchapter shall be interpreted to require a party to the hearing to be represented by counsel.",
            "sourceNote": "Source Note: The provisions of this §43.211 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223212&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223212",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.212",
                "label": "Lead Counsel"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223213&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223213",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A party represented by more than one attorney in a proceeding may be required to designate a lead counsel who shall have control in the management of the matter. The administrative law judge, executive director, or board may limit the number of counsel heard on any matter.",
            "sourceNote": "Source Note: The provisions of this §43.212 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223213&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223213",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.213",
                "label": "Powers of the Administrative Law Judge"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223214&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223214",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The presiding administrative law judge shall have the authority established by applicable statutes and the rules of this subchapter. Additionally, the administrative law judge may:(1) determine the jurisdiction of TRS concerning the matter under consideration;(2) determine the scope of the matter referred to the administrative law judge; and(3) limit testimony to matters under TRS's jurisdiction and to matters referred to the administrative law judge by TRS.",
            "sourceNote": "Source Note: The provisions of this §43.213 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223214&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223214",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.214",
                "label": "Prehearing Conference and Orders"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223215&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223215",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The administrative law judge may hold a prehearing conference prior to any adjudicative hearing.(b) At the prehearing conference or by prehearing conference order, the administrative law judge may require parties to file and serve the following in order to expedite the hearing:(1) a list of witnesses the party intends to have testify, with a brief narrative summary of their expected testimony;(2) a written statement of the disputed issues; or(3) a copy of any documentary evidence the party intends to use at the hearing.(c) Witnesses and proposed documentary evidence may be added and narrative summaries of expected testimony amended at the hearing only upon a finding of the administrative law judge that good cause existed for failure to serve the additional or amended material by the established date.(d) At any prehearing conference, or in a prehearing conference order, the administrative law judge:(1) may obtain stipulations and admissions, and otherwise identify matters on which there is agreement;(2) shall identify disputed issues for consideration at the hearing;(3) may consider and rule prospectively upon objections to the introduction into evidence at the hearing on the merits of any written testimony, documents, papers, exhibits, or other materials;(4) may identify matters of which official notice may be taken;(5) may strike issues not material or not relevant, including issues not within the scope of the matter referred by TRS; and(6) may consider any other matter that may expedite the hearing or aid in the disposition of the matter.(e) A prehearing conference may be held by means of a conference telephone call.(f) Rulings or decisions made at a prehearing conference shall be summarized in a written order by the administrative law judge and made part of the record.",
            "sourceNote": "Source Note: The provisions of this §43.214 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223215&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223215",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.215",
                "label": "Conduct of Hearing"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223216&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223216",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A hearing shall be confidential to ensure the information of a member's file is not disclosed. The member may expressly waive the member's right to maintain confidentiality of the information before the proceedings will be opened to the public.(b) All hearings will be held in Austin, Texas unless all parties agree to another site.(c) The petitioner has the burden of proving by a preponderance of the evidence that the relief sought in the petition should be granted. The petitioner shall present his or her direct case first at hearing.(d) Where the proceeding is initiated at the executive director's or the board's own call, or where several proceedings are heard on a consolidated record, the administrative law judge shall designate who shall open and close and at what stage intervenors or other parties shall be permitted to offer evidence.(e) The administrative law judge may call upon any party or staff of TRS for further material or relevant evidence upon any issue before the issuance of a proposal for decision; however, no such evidence shall be allowed into the record without an opportunity for inspection, cross-examination, and rebuttal by the other interested parties.(f) At the request of a party, the administrative law judge shall order the witnesses excluded so that they cannot hear the testimony of other witnesses. This section does not authorize exclusion of a party.(g) During the hearing, formal exceptions to rulings of the administrative law judge are not required. It shall be sufficient that a party, at the time of any ruling is made or sought, shall make known to the administrative law judge the action sought.",
            "sourceNote": "Source Note: The provisions of this §43.215 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223216&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223216",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.216",
                "label": "General Admissibility"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223217&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223217",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Irrelevant, immaterial, or unduly repetitious evidence shall be excluded. The rules of evidence as applied in nonjury civil cases in the district courts of Texas shall be followed. When necessary to ascertain facts not reasonably susceptible of proof under those rules, evidence not admissible thereunder may be admitted, except where precluded by statute, if it is of a type commonly relied upon by a reasonably prudent person in the conduct of the person's affairs. The administrative law judge shall give effect to the rules of privilege recognized by law.(b) When testimony is excluded by ruling of the administrative law judge, the party offering such evidence shall be permitted to make an offer of proof by dictating or submitting in writing the substance of the proposed testimony prior to the conclusion of the hearing. Such offer of proof shall be sufficient to preserve the point for review. The administrative law judge may ask questions of the witness as he or she deems necessary to satisfy himself or herself that the witness would testify as presented in the offer of proof.",
            "sourceNote": "Source Note: The provisions of this §43.216 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223217&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223217",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.217",
                "label": "Exhibits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223218&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223218",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Exhibits of documentary character shall be of a size which will not unduly encumber the files and records of TRS and whenever practicable, shall conform to the requirements set forth in §43.202 of this chapter (relating to Form of Pleadings).(b) The original of each exhibit offered shall be tendered to the court reporter or administrative law judge for identification; one copy shall be furnished to the administrative law judge and one copy to each other party of record or his or her attorney of record.(c) In the event an exhibit has been identified, objected to, and excluded, the administrative law judge shall determine whether the party offering the exhibit withdraws the offer, and if so, permit the return of the exhibit to that party. If the excluded exhibit is not withdrawn, it shall be given an exhibit number for identification, shall be endorsed by the administrative law judge with the ruling, and shall be included in the record for the purpose only of preserving the exception.(d) Unless specifically permitted by the administrative law judge, no exhibit will be permitted to be filed in any proceeding under this subchapter after the conclusion of the hearing. In the event the administrative law judge allows an exhibit to be filed after the conclusion of a hearing, copies of the late-filed exhibit shall be served on all parties of record.",
            "sourceNote": "Source Note: The provisions of this §43.217 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223218&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223218",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.218",
                "label": "Pre-filed Direct Testimony in Disability Appeal Proceedings"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223219&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223219",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In a contested case concerning Medical Board denial of certification of disability or a finding that a disability retiree is no longer mentally or physically incapacitated from the performance of duty, all testimony and other evidence, including medical or employment records, that the petitioner intends to offer in petitioner's direct case shall be pre-filed at least 90 days before the date of the hearing on the merits. Testimony shall include all expert and fact witnesses, including that of a petitioner who intends to testify. In order to avoid any unnecessary expense and time associated with adjudicative hearings and in accordance with Government Code §824.303, which requires Medical Board certification in order for a person to be retired, TRS staff shall be given adequate opportunity to present such information to the Medical Board for consideration before the hearing on the merits. If, upon consideration of the information petitioner intends to offer at hearing, the Medical Board certifies the person as disabled, TRS staff or petitioner may move for dismissal of the appeal. If, however, the Medical Board does not certify the person as disabled, the petitioner may continue to prosecute the appeal as previously docketed and referred for an adjudicative hearing. The petitioner shall not be permitted to introduce direct testimony and evidence that has not been pre-filed and made available to the Medical Board for consideration.(b) The pre-filed testimony of a witness upon direct examination shall be in question and answer form. The qualifications of an expert witness shall be described in question and answer testimony or by attachment of a resume as an exhibit to the testimony. Pre-filed testimony of a witness may be offered into the record by a party during its direct case. The testimony shall not be admitted into the hearing record in whole or in part unless the witness is available at the hearing on the merits and, upon being sworn, identifies the pre-filed testimony as a true and accurate record of what his or her testimony would be if the witness were testifying orally. A witness may be given an opportunity to correct errors. After calling the witness and authenticating the testimony in this manner, a party may offer the testimony into the record. Pre-filed testimony is subject to the rules of evidence, including objections or motions to strike when such testimony is offered, as if the testimony were presented orally at a hearing. Such testimony, if admitted, may be incorporated in the record as if read or received as an exhibit. The witness shall be subject to cross-examination by other parties after the admission of the pre-filed testimony in whole or in part, and the party offering the testimony may conduct re-direct examination of the witness at the conclusion of cross-examination.(c) Pre-filed documentary evidence other than testimony of witnesses may be offered into the record by a party during its direct case. All pre-filed documentary evidence is subject to the rules of evidence.",
            "sourceNote": "Source Note: The provisions of this §43.218 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223219&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223219",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.219",
                "label": "Limit on Number of Witnesses"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223220&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223220",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The administrative law judge shall have the right in any proceeding under this subchapter to limit the number of witnesses whose testimony is merely cumulative.",
            "sourceNote": "Source Note: The provisions of this §43.219 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223220&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223220",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.220",
                "label": "Failure to Appear"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223221&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223221",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The petitioner or the petitioner's attorney shall appear at the hearing. Failure to so appear may be grounds for withholding consideration of a matter, denial of the appeal with or without prejudice, or dismissal of the appeal. However, no default judgment may be taken against a third party petitioner or respondent for failure to appear.",
            "sourceNote": "Source Note: The provisions of this §43.220 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223221&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223221",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.221",
                "label": "Conduct and Decorum at Hearing"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223222&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223222",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Every participant in the proceedings shall conduct himself with proper dignity, courtesy, and respect for TRS, the administrative law judge, all other participants, and all other persons attending the proceedings. TRS or the administrative law judge may take such action as appropriate and necessary to enforce this rule.",
            "sourceNote": "Source Note: The provisions of this §43.221 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223222&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223222",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.222",
                "label": "Official Notice"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223223&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223223",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Official notice may be taken of all facts judicially cognizable. In addition, official notice may be taken of generally recognizable facts within the specialized knowledge of TRS. All parties shall be notified either before or during the hearing, or by reference in preliminary reports, drafts of orders, or otherwise, of any material officially noticed, including any staff memoranda or data. All parties will be afforded an opportunity to contest the material so noticed.",
            "sourceNote": "Source Note: The provisions of this §43.222 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223223&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223223",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.223",
                "label": "Recording of the Hearing; Certified Language Interpreter"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223224&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223224",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A record of a hearing or prehearing conference shall be made in a manner consistent with the purpose of 1 TAC §155.423 (relating to Making a Record of Proceeding). Because of the nature of TRS proceedings and the expense of stenographic recordings and transcripts, it is the policy of TRS to rely on an audio or video recording as the official record of the proceeding, regardless of the anticipated length of the hearing.(b) TRS may assess the cost of preparation of a stenographic recording or transcript against a party requesting such, or against other parties as appropriate. Cost of a transcript copy ordered by a party shall be paid by that party. TRS may require a deposit or full payment of the estimated costs by a party against whom costs have been assessed in advance of arranging for a court reporter to be present at the hearing or in advance of preparation of the transcript. If no party requests stenographic recording of a proceeding or preparation of a transcript by a court reporter but the administrative law judge so requires, TRS may assess the cost to one or more parties or may request that TRS not be required to bear the costs.(c) In the alternative to a stenographic recording or transcript prepared by a court reporter, TRS may prepare a transcript from a video or audio tape of the proceeding. The transcript prepared by TRS may be considered the official record of the proceeding. TRS may obtain the official audio or video recording from the administrative law judge for purposes of preparing the transcript. A party who objects to a TRS-prepared transcript and requests that proceedings be stenographically recorded or transcribed by a court reporter may be required to pay the costs of such recording and transcription.(d) A stenographic reporter shall recognize that TRS may print and distribute additional copies of the transcript as necessary to conduct its business and shall maintain the confidentiality of information presented at hearing.(e) A party who desires the services of a certified language interpreter for any part of the contested case proceedings is responsible for arranging for the interpreter and paying for the services.",
            "sourceNote": "Source Note: The provisions of this §43.223 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223224&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223224",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.224",
                "label": "Dismissal without Hearing"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223225&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223225",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The administrative law judge may consider motions for dismissal from the adjudicative hearing docket without a hearing and recommend dismissal with or without prejudice for any of the following reasons:(1) failure to prosecute a claim;(2) unnecessary duplication of proceedings or res judicata;(3) withdrawal or voluntary dismissal of appeal;(4) moot questions, obsolete petitions, or laches;(5) lack of jurisdiction; or(6) failure to comply with §43.104 of this chapter (relating to Request for Adjudicative Hearing) or other applicable sections.(b) The administrative law judge shall dismiss from the adjudicative hearing docket and recommend dismissal by TRS of the appeal of a petitioner who has defaulted by:(1) failing to appear at the hearing; or(2) failing to request a hearing or take some other action specified by the administrative law judge within 30 days after notice is mailed of intention to dismiss the claim.(c) For good cause, the executive director may permit reinstatement of a dismissed appeal.",
            "sourceNote": "Source Note: The provisions of this §43.224 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223225&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223225",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.225",
                "label": "Summary Disposition"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223226&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223226",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A party may move with or without supporting affidavits for a summary disposition any time after an appeal has been referred for an adjudicative hearing. The motion for summary disposition shall specify the grounds for resolving the appeal without an evidentiary hearing. The motion and any supporting affidavits shall be filed and served at least 30 days before the time specified for the hearing. The motion may be granted if the pleadings, discovery, affidavits, stipulation of the parties, and authenticated or certified public records submitted in support of the motion show that there is no genuine issue as to any material fact and the moving party is entitled to summary disposition as a matter of law on the issues expressly set out in the motion.(b) A proposal for decision by the administrative law judge recommending summary disposition is subject to exceptions in the same manner as a proposal for decision issued after an evidentiary hearing.",
            "sourceNote": "Source Note: The provisions of this §43.225 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223226&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223226",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.226",
                "label": "The Record"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223227&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223227",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The record in a contested case shall include the items identified in Government Code §2001.060.",
            "sourceNote": "Source Note: The provisions of this §43.226 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223227&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223227",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.227",
                "label": "Findings of Fact"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223228&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223228",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Findings of fact shall be based exclusively on the evidence admitted in accordance with applicable rules and statutes and on matters officially noticed.",
            "sourceNote": "Source Note: The provisions of this §43.227 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223228&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223228",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "C",
                "label": "HEARINGS NOT DOCKETED AT SOAH"
            },
            "rule": {
                "number": "§43.228",
                "label": "Reopening of Hearing"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223229&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223229",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Upon motion of any party or upon the order of the administrative law judge the hearing may be reopened for good cause at any time before the proposal for decision is issued.",
            "sourceNote": "Source Note: The provisions of this §43.228 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223229&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223229",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "D",
                "label": "FINAL DECISIONS OF TRS"
            },
            "rule": {
                "number": "§43.301",
                "label": "Proposals for Decision and Exceptions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223230&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223230",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The administrative law judge shall issue a proposal for decision with proposed conclusions of law and findings of fact in accordance with Government Code, Chapter 2001 and other applicable law.(b) Exceptions to the proposal for decision, if any, shall be filed with the SOAH administrative law judge or the administrative law judge in accordance with 1 TAC §155.507 (relating to Proposals for Decision; Exceptions and Replies). The exceptions shall also be filed with TRS, directed to the attention of the executive director.(c) The administrative law judge shall notify TRS and the parties whether the administrative law judge made any changes to the proposal for decision based on the exceptions and replies of the parties.",
            "sourceNote": "Source Note: The provisions of this §43.301 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223230&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223230",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "D",
                "label": "FINAL DECISIONS OF TRS"
            },
            "rule": {
                "number": "§43.302",
                "label": "Decision of Executive Director"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223231&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223231",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) After TRS receives notice from the administrative law judge under §43.301(c) of this chapter (relating to Proposals for Decision and Exceptions), the executive director shall review the proposal for decision of the administrative law judge and render a decision in the proceeding, except as provided by §43.303 of this title (relating to Proposals for Decision and Exceptions regarding Eligibility for Disability Retirement).The executive director may accept or modify the proposed conclusions of law or proposed findings of fact or may vacate or modify an order issued by an administrative law judge in the manner set forth in subsection (c) of this section. If changes are made, the decision shall state in writing the specific reason and legal basis for each change. A copy of the decision shall be served on the parties.(b) The executive director's decision shall be based upon the existing record in the case, including any exceptions and replies to exceptions filed with the administrative law judge.(c) The executive director, in the executive director's sole discretion may take the following actions:(1) modify, refuse to accept, or delete any proposed finding of fact or conclusion of law made by the administrative law judge;(2) make alternative findings of fact and conclusions of law;(3) vacate or modify an order issued by the administrative law judge and remand to the administrative law judge, if necessary; and(4) make a final decision on a contested case.(d) In exercising the director's discretion, the executive director, may consider but is not limited to the following grounds for changing a finding of fact or conclusion of law or for making a final decision in a contested case that is contrary to the recommendation of the administrative law judge:(1) the administrative law judge did not properly apply or interpret applicable law, retirement system rules, written policies provided to the administrative law judge, or prior administrative decisions;(2) a prior administrative decision on which the administrative law judge relied is incorrect or should be changed;(3) a technical error in a finding of fact should be changed;(4) a finding of fact of the administrative law judge is against the weight of the evidence;(5) a finding or conclusion or other action of the administrative law judge would alter the terms of the plan; or(6) the change is pursuant to a fiduciary responsibility.(e) The executive director may delegate any of the authority under this subchapter to the deputy director or another TRS employee for any appeal.",
            "sourceNote": "Source Note: The provisions of this §43.302 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223231&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223231",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "D",
                "label": "FINAL DECISIONS OF TRS"
            },
            "rule": {
                "number": "§43.303",
                "label": "Proposals for Decision and Exceptions regarding Eligibility for Disability Retirement"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223232&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223232",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In a proceeding relating to a member's eligibility for disability retirement, an administrative law judge's proposal for decision shall be reviewed by the board of trustees.(b) After TRS receives notice from the administrative law judge under §43.301(c) of this chapter (relating to Proposals for Decision and Exceptions), the board of trustees shall review the proposal for decision of the administrative law judge and render a decision in the proceeding. The board of trustees may accept or modify the proposed conclusions of law or proposed findings of fact or may vacate or modify an order issued by an administrative law judge in the manner set forth in subsection (d) of this section. If changes are made, the decision shall state in writing the specific reason and legal basis for each change. A copy of the decision shall be served on the parties.(c) The decision of the board of trustees shall be based upon the existing record in the case, including any exceptions and replies to exceptions filed with the administrative law judge.(d) The board of trustees, in the board's sole discretion may take the following actions:(1) modify, refuse to accept, or delete any proposed finding of fact or conclusion of law made by the administrative law judge;(2) make alternative findings of fact and conclusions of law;(3) vacate or modify an order issued by the administrative law judge and remand to the administrative law judge, if necessary; and(4) make a final decision on a contested case.(e) In exercising the board's discretion, the board of trustees may consider but is not limited to the following grounds for changing a finding of fact or conclusion of law or for making a final decision in a contested case that is contrary to the recommendation of the administrative law judge:(1) the administrative law judge did not properly apply or interpret applicable law, retirement system rules, written policies provided to the administrative law judge, or prior administrative decisions;(2) a prior administrative decision on which the administrative law judge relied is incorrect or should be changed;(3) a technical error in a finding of fact should be changed;(4) a finding of fact of the administrative law judge is against the weight of the evidence;(5) a finding or conclusion or other action of the administrative law judge would alter the terms of the plan; or(6) the change is pursuant to a fiduciary responsibility.(f) The board of trustees shall consider a proposal for decision under this section in open meeting to the extent required by law. The board in its sole discretion may determine whether to hear oral argument from the parties when considering a proposal for decision under this section.",
            "sourceNote": "Source Note: The provisions of this §43.303 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223232&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223232",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "D",
                "label": "FINAL DECISIONS OF TRS"
            },
            "rule": {
                "number": "§43.304",
                "label": "Appeals to the Board of Trustees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223233&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223233",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Any party adversely affected by a decision of the executive director in a docketed appeal may appeal the decision to the board of trustees, unless by statute or other rule the decision of the executive director is the final decision of TRS. Written notice of appeal and any associated exceptions or briefing under subsection (d) of this section must be filed with the executive director by the later of:(1) 20 days after the decision of the executive director is mailed; or(2) the number of days after the date the decision of the executive director is mailed equal to the number of days it took the executive director to render the decision in the proceeding.(b) The number of days it took the executive director to render the decision in a proceeding is calculated from:(1) if exceptions to a proposal for decision are not filed, the date of the deadline to file exceptions to a proposal for decision in the proceeding under §43.301(b) of this chapter (relating to Proposals for Decisions and Exceptions) to the date the decision of the executive director is mailed; or,(2) if exceptions to a proposal for decision are filed, the date the administrative law judge takes action on the filed exceptions to the date the decision of the executive director is mailed.(c) If notice of appeal is timely filed, the decision of the executive director shall serve as a proposal for decision to the board.(d) If a decision of the executive director is appealed, the parties may file additional exceptions or briefs and replies. Additional exceptions or briefs must be filed and served at the same time as the notice of appeal. Replies shall be filed and served within 15 days of the filing of the notice of appeal and exceptions or briefs. The executive director may modify the filing deadlines. Briefs and replies filed under this section may not include additional evidence not previously admitted into the administrative record of the proceeding.(e) A notice of appeal to the Board of Trustees must also include a statement whether the appealing party is requesting oral argument before the board of trustees and, if oral argument is set, whether the party prefers to appear in person or virtually. A notice of appeal that does not include a statement regarding oral argument shall be deemed as not requesting oral argument. A notice of appeal that does not include how the party requests to appear for oral argument shall be deemed as a request to appear in person.(f) A nonappealing party may also request oral argument before the board of trustees or request that oral argument not be granted in the party's reply to the appealing party's notice of appeal. The nonappealing party may also state whether the party requests to appear in person or virtually for oral argument.(g) The executive director, in the executive director's sole discretion, shall determine whether to grant oral argument in a given appeal and how the parties shall appear for oral argument, if granted. The executive director shall consult with the chairman of the board of trustees in making a determination under this subsection and shall make the determination by order no later than 30 days prior to the date of the hearing. The order shall be provided to all parties to the appeal.(h) The final decision in an appeal shall be based upon the existing record in the case, including any exceptions, oral argument, or briefing filed with the board of trustees under this section. In its sole discretion, the board of trustees may take the following actions:(1) modify, refuse to accept, or delete any proposed finding of fact or conclusion of law made by the administrative law judge;(2) make alternative findings of fact and conclusions of law;(3) vacate or modify an order issued by the administrative law judge and remand to the administrative law judge, if necessary; and(4) make a final decision on a contested case.(i) In exercising its discretion, the board of trustees may consider but is not limited to the following grounds for changing a finding of fact or conclusion of law or for making a final decision in a contested case that is contrary to the recommendation of the administrative law judge:(1) the administrative law judge did not properly apply or interpret applicable law, retirement system rules, written policies provided to the administrative law judge, or prior administrative decisions;(2) a prior administrative decision on which the administrative law judge relied is incorrect or should be changed;(3) a technical error in a finding of fact should be changed;(4) a finding of fact of the administrative law judge is against the weight of the evidence;(5) a finding or conclusion or other action of the administrative law judge would alter the terms of the plan; or(6) the change is pursuant to a fiduciary responsibility.(j) An appeal to the board of trustees shall be considered in open meeting to the extent required by law.",
            "sourceNote": "Source Note: The provisions of this §43.304 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223233&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223233",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "D",
                "label": "FINAL DECISIONS OF TRS"
            },
            "rule": {
                "number": "§43.305",
                "label": "Final Decision of TRS"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223234&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223234",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "An administrative decision of TRS staff, a decision by the Medical Board, or a decision by the executive director is the final decision of TRS unless a party exhausts any right to appeal a matter to the board of trustees, if applicable.",
            "sourceNote": "Source Note: The provisions of this §43.305 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223234&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223234",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "D",
                "label": "FINAL DECISIONS OF TRS"
            },
            "rule": {
                "number": "§43.306",
                "label": "Rehearings"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223235&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "223235",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A decision of the executive director or deputy director is the final decision of TRS when, under applicable law or rule, the decision is not subject to appeal to the board and when the circumstances described in Government Code §2001.144, are met.(b) A decision by the board of trustees in a contested case is the final decision of TRS when the circumstances described in Government Code §2001.144, are met.(c) A party adversely affected by a decision that may be the final decision of TRS may file a motion for rehearing with TRS, not later than the 25th day after the date on which the decision or order that is the subject of the motion is signed, unless the time for filing the motion has been extended under Government Code §2001.142, by an agreement under Government Code §2001.147, or by written order of the executive director or deputy director under subsection (g) of this section. A timely motion for rehearing is a prerequisite to an appeal in a contested case under Government Code §2001.145, if an appeal is otherwise permitted by law.(d) A reply to the motion for rehearing must be filed with TRS not later than the 40th day after the date on which the decision or order that is the subject of the motion is signed, or not later than the 10th day after the date a motion for rehearing is filed if the time for filing the motion for rehearing has been extended by an agreement under Government Code §2001.147 or by a written order of the executive director or deputy director under subsection (g) of this section.(e) The board of trustees, the executive director, or the deputy director, as applicable, shall act on a motion for rehearing not later than the 55th day after the date on which the decision or order that is the subject of the motion is signed. If the motion is not acted on within the time specified, the motion is overruled by operation of law.(f) The board of trustees may rule on a motion for rehearing in the manner provided for in Government Code §2001.146. A subsequent motion for rehearing is not required after the board of trustees rules on a motion for rehearing unless a motion is required under Government Code §2001.146(h).(g) The executive director or the deputy director if the motion for rehearing concerns a decision of the deputy director may by written order extend the time for filing a motion or reply or for TRS to act on a motion for rehearing, in accordance with Government Code §2001.146.(h) A motion for rehearing under this section must identify with particularity findings of fact or conclusions of law that are the subject of the complaint and any evidentiary or legal ruling claimed to be erroneous. The motion must also state the legal and factual basis for the claimed error.",
            "sourceNote": "Source Note: The provisions of this §43.306 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=223235&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "223235",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "43",
                "label": "CONTESTED CASES"
            },
            "subchapter": {
                "number": "D",
                "label": "FINAL DECISIONS OF TRS"
            },
            "rule": {
                "number": "§43.307",
                "label": "Cost of Preparing Administrative Record"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100855&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100855",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "In the event an appeal of the Final Decision of the Board of Trustees is authorized by law, any cost associated with pursuing the appeal is the responsibility of the appealing party, including the cost of the record of the administrative proceedings and the transcription of any video or audio recordings of administrative proceedings.",
            "sourceNote": "Source Note: The provisions of this §43.307 adopted to be effective January 2, 2025, 49 TexReg 10651."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100855&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100855",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "47",
                "label": "QUALIFIED DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§47.1",
                "label": "Payments by TRS"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100856&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100856",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The Teacher Retirement System of Texas (TRS) will make payment of retirement or survivor benefits or of refunded contributions only as directed by statute or by a qualified domestic relations order (QDRO). After TRS determines that an order is a QDRO, TRS shall make payments to the alternate payee as directed by the QDRO, unless TRS receives a certified copy of an order from a court of competent jurisdiction that withdraws or supercedes the previous order.",
            "sourceNote": "Source Note: The provisions of this §47.1 adopted to be effective September 29, 1989, 14 TexReg 4785; amended to be effective March 12, 2003, 28 TexReg 2118."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100856&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100856",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "47",
                "label": "QUALIFIED DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§47.2",
                "label": "Submission of Orders"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=64505&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "64505",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A person who wishes to have TRS review a domestic relations order to determine whether it is a QDRO for the purpose of receiving TRS benefits or payments shall submit a copy of a signed domestic relations order to TRS. The copy shall be certified by the clerk of the court that entered the order. TRS shall not make a determination for orders not yet entered by the court.",
            "sourceNote": "Source Note: The provisions of this §47.2 adopted to be effective September 29, 1989, 14 TexReg 4785; amended to be effective January 24, 1992, 17 TexReg 256; amended to be effective March 12, 2003, 28 TexReg 2118."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=64505&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "64505",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "47",
                "label": "QUALIFIED DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§47.3",
                "label": "Review of Orders"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151279&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "151279",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The executive director of TRS or the executive director's designee shall review the order for compliance with requirements imposed by statute or rule. Upon completion of the review, the executive director or the designee shall notify the member or retiree and each alternate payee in writing of the determination.",
            "sourceNote": "Source Note: The provisions of this §47.3 adopted to be effective September 29, 1989, 14 TexReg 4785; amended to be effective June 9, 1999, 24 TexReg 4250."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151279&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "151279",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "47",
                "label": "QUALIFIED DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§47.4",
                "label": "Payment Pursuant to Qualified Orders"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100860&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100860",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "If the order is determined to be a QDRO, TRS shall, subject to the limitations of this chapter, pay benefits in accordance with the order at the time of distribution of benefits or withdrawn contributions to a member or prior to a distribution to the member as provided in §47.17 of this title (relating to Calculation for Alternate Payee Benefits Before a Member's Benefit Begins). Any determination that an order is a QDRO is voidable or subject to modification if TRS determines that the provisions of the order have been changed or that circumstances relevant to the determination have changed.",
            "sourceNote": "Source Note: The provisions of this §47.4 adopted to be effective September 29, 1989, 14 TexReg 4785; amended to be effective March 12, 2003, 28 TexReg 2118; amended to be effective April 1, 2011, 36 TexReg 2004."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100860&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100860",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "47",
                "label": "QUALIFIED DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§47.5",
                "label": "Orders Not Qualified"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175655&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175655",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The executive director or the executive director's designee shall provide a written notice of any determination that an order is not a QDRO. The notice shall identify the provisions of the order that do not meet the requirements of applicable statutes or rules and shall explain how the provisions do not meet applicable requirements.",
            "sourceNote": "Source Note: The provisions of this §47.5 adopted to be effective September 29, 1989, 14 TexReg 4785; amended to be effective June 9, 1999, 24 TexReg 4250; amended to be effective March 12, 2003, 28 TexReg 2118."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175655&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175655",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "47",
                "label": "QUALIFIED DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§47.6",
                "label": "Determination That An Order Is Not Qualified Is Final"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100854&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100854",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A determination by the executive director or the executive director's designee that an order is not a QDRO is a final decision by TRS. No appeal to the board of trustees of TRS is authorized. However, a party adversely affected by a determination of the executive director or the designee must file a motion for reconsideration with the executive director no later than 25 days after the date such determination is rendered if the party wishes to contest the determination.",
            "sourceNote": "Source Note: The provisions of this §47.6 adopted to be effective September 29, 1989, 14 TexReg 4785; amended to be effective January 24, 1992, 17 TexReg 256; amended to be effective June 9, 1999, 24 TexReg 4250; amended to be effective March 12, 2003, 28 TexReg 2118; amended to be effective January 1, 2016, 40 TexReg 9730."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100854&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100854",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "47",
                "label": "QUALIFIED DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§47.7",
                "label": "Submission of Amended Order"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100862&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100862",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "If a court amends an order that TRS has determined to be a QDRO, the member or retiree or alternate payee shall submit a certified copy of the amended order to TRS. TRS shall review any amended order that it receives according to the same rules applicable to all other orders.",
            "sourceNote": "Source Note: The provisions of this §47.7 adopted to be effective September 29, 1989, 14 TexReg 4785; amended to be effective March 12, 2003, 28 TexReg 2118."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100862&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100862",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "47",
                "label": "QUALIFIED DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§47.8",
                "label": "Orders Affecting Optional Retirement Program"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100863&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100863",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A member or retiree or any alternate payee should submit an order affecting benefits payable under the Optional Retirement Program (ORP) to the applicable carrier and not to TRS, unless the order also affects benefits payable by TRS, in which case a copy of the order should be submitted both to the applicable carrier and to TRS.",
            "sourceNote": "Source Note: The provisions of this §47.8 adopted to be effective September 29, 1989, 14 TexReg 4785; amended to be effective March 12, 2003, 28 TexReg 2118."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100863&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100863",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "47",
                "label": "QUALIFIED DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§47.9",
                "label": "Orders Affecting Benefits from More Than One Public Retirement System"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170811&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170811",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "If TRS receives an order that affects benefits payable under TRS and another public retirement system, TRS shall determine if the order is a QDRO only with regard to the benefits payable by TRS.",
            "sourceNote": "Source Note: The provisions of this §47.9 adopted to be effective September 29, 1989, 14 TexReg 4785; amended to be effective March 12, 2003, 28 TexReg 2118."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170811&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170811",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "47",
                "label": "QUALIFIED DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§47.10",
                "label": "Determination of Whether an Order is a Qualified Domestic Relations Order"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100865&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100865",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A domestic relations order entered by a court of competent jurisdiction on January 1, 2015 or after must be in a form prescribed by TRS. The form prescribed by TRS must ensure compliance with the requirements in subsection (b) of this section.(b) For domestic relations orders entered by a court of competent jurisdiction before January 1, 2015, TRS shall apply the statutory criteria to determine whether an order is a QDRO. The following provisions shall also be used in making the determination.(1) The order must provide for each possible distribution by the retirement system for the member or retiree. This requirement may be met by a provision that:(A) awards a specified or clearly determinable percentage, rather than an amount, of each distribution by TRS based on the participant's account; or(B) awards all benefits not specified to the participant to be paid in accordance with plan provisions.(2) The order must provide for reducing the amount awarded in the event of reduction of the benefit based on the age of the participant, each reduction to be in proportion to the factors used to reduce the standard annuity on the basis of the participant's age below normal retirement age. This requirement shall not apply if:(A) the order awards a percentage of whatever monthly benefit is payable after all elections have been made by the member, or in the event of death benefits, by the designated beneficiary;(B) the member or retiree has reached normal retirement age and, if a retiree, has retired without any reduction for early age retirement at the time of the determination as to whether the order is a QDRO; or(C) the order reflects that the retiree is, or will be receiving, retirement benefits reduced for early age retirement and the award to the alternate payee has considered the reduced amount of the retiree's annuity payments.(3) The order may not:(A) purport to require the designation by the participant of a particular person as the recipient of benefits in the event of a member's or annuitant's death;(B) purport to require the selection of a particular payment plan or benefit option;(C) require any action on the part of the retirement system contrary to its governing statutes or plan provisions other than the direct payment of the benefit awarded to an alternate payee; or(D) award any interest in distributions by the retirement system contingent on any condition other than those conditions resulting in the liability of the retirement system for payment under its plan provision.(4) A QDRO may not provide for the award of a specific amount of a benefit, rather than a percentage of this benefit, to an alternate payee unless the order also provides for a reduction of the amount awarded in the event that the benefits available to the retiree or member are reduced by law. This requirement shall not apply to benefit waivers executed by the participant.(5) If the order intends to award the participant the full amount of any future benefit increases that are provided or required by the legislature, the order must explicitly state such. TRS, its board of trustees, and its officers and employees shall not be liable for making payment of part of any future benefit increases to any person if the order so requires or if the order awards a percentage of benefits payable and does not explicitly state that future benefit increases are awarded solely and completely to the plan participant.(6) An order that purports to give to someone other than a member the right to designate a beneficiary or choose any retirement plan available from TRS is one that requires an action contrary to TRS' governing statute and plan provisions and therefore is not a QDRO.(7) An order that attaches a lien to any part of amounts payable with respect to a member or retiree is one that requires an action contrary to TRS' governing statute and plan provisions and therefore is not a qualified domestic relations order.(8) An order that awards an alternate payee a portion of the benefits payable with respect to a member or retiree under TRS and that purports to require TRS to make a lump sum payment of the awarded portion of the benefits to the alternate payee that are not payable in a lump sum is one that requires action contrary to TRS' governing statute and plan provisions and therefore is not a QDRO.(9) An order shall specify the date of the marriage.(10) An order that allocates the participant's investment in contract in a manner not in compliance with any requirements of the Internal Revenue Code and applicable regulations is not a QDRO. An order that does not allocate a participant's investment in contract may be determined to be a QDRO if it provides sufficient information for TRS to make the allocation in accordance with applicable laws and regulations.(11) An order that purports to require a member to terminate employment, to withdraw contributions, or to apply for retirement, is not a QDRO.(12) The order must satisfy the requirements of Internal Revenue Code §414(p)(1)(A)(i) and §414(p)(1)(B).(13) The order may contain provisions consistent with §824.1012 or §824.1013, Government Code, and TRS may rely on the provisions of the order as though the provisions were included in the decree of divorce or order accepting a property settlement.(14) The order may specify an alternative method for the parties to verify their Social Security numbers to TRS, if the court finds that omission of the numbers in the order is necessary to reduce the risk of identity theft. The order is not a QDRO if TRS finds that the method of verification is insufficient for the purpose of payment of benefits or reporting of income for tax purposes.",
            "sourceNote": "Source Note: The provisions of this §47.10 adopted to be effective September 29, 1989, 14 TexReg 4785; amended to be effective March 12, 2003, 28 TexReg 2118; amended to be effective March 8, 2007, 32 TexReg 1097; amended to be effective June 20, 2013, 38 TexReg 3801; amended to be effective December 23, 2014, 39 TexReg 10031."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100865&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100865",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "47",
                "label": "QUALIFIED DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§47.13",
                "label": "Benefits Resulting from Resumption of Membership and Reinstatement of Service Credit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20028&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "20028",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "If a member terminates membership in TRS by withdrawal of contributions, TRS shall pay all or a portion of the amount withdrawn to any alternate payee as directed by a QDRO. If the former member later resumes membership in TRS, then TRS shall pay to an alternate payee no portion of any benefits payable to the member or retiree which result from the resumption of membership, even if those benefits result in part from reinstatement of service credit initially credited during the marriage.",
            "sourceNote": "Source Note: The provisions of this §47.13 adopted to be effective September 29, 1989, 14 TexReg 4785; amended to be effective March 12, 2003, 28 TexReg 2118."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20028&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "20028",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "47",
                "label": "QUALIFIED DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§47.14",
                "label": "Reinstatement of Service Credit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100866&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100866",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A member who is reinstating service credit by depositing amounts previously withdrawn or refunded shall deposit the entire amount withdrawn or refunded, regardless of whether a portion or all of the amount was paid to an alternate payee. The reinstatement fee shall be based on the total amount withdrawn, regardless of whether a portion or all of the amount was paid to an alternate payee.",
            "sourceNote": "Source Note: The provisions of this §47.14 adopted to be effective September 29, 1989, 14 TexReg 4785."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100866&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100866",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "47",
                "label": "QUALIFIED DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§47.15",
                "label": "Death of an Alternate Payee"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20030&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "20030",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The death of an alternate payee shall terminate the interest of that payee in TRS. Upon proof of death of the alternate payee, the member, retiree, or beneficiary shall be entitled to receive the full amount of payments payable in the future to the member, retiree, or beneficiary without reduction for the amount previously being paid to the alternate payee under the QDRO. However, when an alternate payee is receiving benefits under §804.005, in lieu of benefits awarded in the QDRO, there is no reversion of the alternate payee's benefit to the member upon the alternate payee's death, regardless of whether the death occurs before or after the member's benefit commencement. This section does not affect the manner of payment of benefits to the member, retiree, or beneficiary.",
            "sourceNote": "Source Note: The provisions of this §47.15 adopted to be effective September 29, 1989, 14 TexReg 4785; amended to be effective March 12, 2003, 28 TexReg 2118."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20030&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "20030",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "47",
                "label": "QUALIFIED DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§47.16",
                "label": "Effective Date of TRS Review of Orders"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214463&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214463",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "TRS will review orders received on or after September 1, 1989, to determine whether they are qualified domestic relations orders.  Any orders received before September 1, 1989, will be reviewed only upon application for a distribution of benefits through withdrawal, retirement, or death of the member, unless there is good cause for earlier review.  For orders received prior to September 1, 1989, for retirees who are already receiving retirement benefits, or for beneficiaries who are receiving annuity payments, TRS will not review the order for possible direct payment to an alternative payee in the future unless the retiree, beneficiary, or any alternate payee submits a request for review after September 1, 1989.",
            "sourceNote": "Source Note: The provisions of this §47.16 adopted to be effective September 29, 1989, 14 TexReg 4785."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214463&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214463",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "47",
                "label": "QUALIFIED DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§47.17",
                "label": "Calculation for Alternate Payee Benefits Before a Member's Benefit Begins"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100839&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100839",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An alternate payee of a TRS member is eligible to receive the benefits described by Government Code §804.005 if: (1) the alternate payee has a qualified domestic relations order (\"QDRO\") approved by TRS; (2) the alternate payee submits a written request to TRS to receive these benefits; and (3) the member meets the requirements of subsection (b) of this section. (b) The alternate payee of a TRS member may only elect to receive benefits under this section if the member: (1) has not retired; (2) has attained the greater of either the age of 62 and is eligible to retire without reduction for early age retirement, or normal retirement age and service requirements for service retirement; and (3) retains credit and contributions in TRS attributable to that service. (c) If an alternate payee elects to receive benefits under this section, the benefits will become payable once TRS receives a written request for the benefits and a certified copy of the domestic relations order determined to be a QDRO. (d) In figuring these benefits for the alternate payee and the adjusted standard annuity of the member's benefit as set forth in this section, TRS shall consider the member's benefit as a normal age standard service retirement annuity without regard to any optional annuity chosen or beneficiary designated by the member. (e) The beginning of monthly payments under this section terminates any interest that the alternate payee who receives the payment might otherwise have in benefits that accrue to the account of the member after the date the initial payment to the alternate payee is made. (f) An alternate payee who elects this method of payment has only a right to receive an annuity for life as calculated in this section and does not have the right to pass on any portion of his/her benefit upon his/her death. There is no reversion of the alternate payee's benefit to the member upon the alternate payee's death, irrespective of whether the death occurs before or after the member's benefit commencement.  (g) TRS will use Tables for Life Annuity Factors furnished by the TRS actuary of record to calculate the actuarially equivalent portion of the member's accrued benefit payable to an alternate payee under this section. Attached Graphic(h) Except as otherwise provided by this section, TRS shall calculate the alternate payee's actuarial equivalent benefit in the following manner: (1) Determine the member's accrued monthly benefit as of the alternate payee's benefit commencement date. (2) Determine the member's age and the alternate payee's age as of the alternate payee's benefit commencement date. (3) Determine the appropriate percent of the member's accrued benefit payable to the alternate payee under the terms of the QDRO. (4) Multiply the member's accrued benefit times the life annuity factor at member's age times the alternate payee's percent. Then, divide that figure by the life annuity factor at alternate payee's age. (i) Except as otherwise provided by this section, TRS shall calculate a member's adjusted standard annuity by reducing the member's standard annuity monthly benefit at the time of retirement by an amount equal to the percent of the member's benefit payable to the alternate payee under the QDRO multiplied by the member's accrued monthly benefit as of the alternate payee's benefit commencement date. (j) If the member dies before retiring: (1) the member's adjusted standard annuity must be used for any benefit due after death if a standard annuity is used to calculate that benefit; (2) the balance of the accumulated contributions in the member savings account payable to a beneficiary must be adjusted to reflect the payment to the alternate payee by reducing the accumulated contributions in the member savings account by the QDRO percentage described in subsection (h)(3) of this section; and (3) a benefit payable under Government Code §824.402(a)(1) and (2) or a lump sum payment of $2,500.00 plus an applicable monthly benefit as described in Government Code §824.404 is not reduced by payments made to the alternate payee under this section. (k) If the member dies after retiring: (1) the $10,000.00 lump sum survivor benefits or the $2,500.00 lump sum payment plus an applicable monthly benefit payable to a beneficiary under Government Code §824.501 and §824.404, are not reduced as a result of payments to an alternate payee under this section; and (2) any payments paid pursuant to Government Code §824.407 must be reduced by first reducing the account balance at the time of retirement by the QDRO percentage described in subsection (h)(3) of this section. (l) If the member elects to terminate membership in TRS before retirement, the accumulated contributions in the member account before a refund is processed must be reduced by the QDRO percentage described in subsection (h)(3) of this section. (m) When new law provides for an increase in the benefit payable to the member after the commencement of the payment of an annuity to the member, the increase will be distributed by increasing the member's and the alternate payee's benefit as provided by the law for an increase to the member's benefit so long as there is no additional actuarial cost to TRS or unless provided otherwise by the legislature. (n) To reinstate withdrawn service reduced under subsection (l) of this section, a person must deposit the amount withdrawn or refunded and the fees required by law. Benefits payable based wholly or in part on the terminated service will be reduced as described in this section as if the service had not been terminated. (o) When a member who has an alternate payee receiving benefits under this section elects a partial lump-sum option, TRS will use the member's adjusted standard annuity in the calculation for the member's partial lump-sum payment. (p) If the total distribution amount awarded to the alternate payee in a QDRO is limited to a specific dollar amount, TRS shall calculate the alternate payee's actuarial equivalent benefit as follows: (1) Determine the alternate payee's age as of the alternate payee's benefit commencement date. (2) Calculate the alternate payee's actuarial equivalent monthly benefit by multiplying the member's accrued benefit times the life annuity factor at member's age times the alternate payee's percent. Compare the product to the specific dollar limit amount. If the specific dollar limit amount is the smaller amount, divide the specific dollar limit amount awarded to the alternate payee by the life annuity factor at alternate payee's age to determine the alternate payee's monthly benefit. If the specific dollar limit amount is larger than the product of the member's accrued benefit times the life annuity factor at member's age times the alternate payee's percent, divide the product by life annuity factor at alternate payee's age to determine the alternate payee's monthly benefit. (q) When a member who is participating in the deferred retirement option plan (\"DROP\") has an alternate payee begin a distribution under this section, TRS will calculate the alternate payee's actuarial equivalent benefit by multiplying the member's accrued benefit times the life annuity factor at member's age plus the balance of the DROP times the alternate payee's percent. That figure shall then be divided by the life annuity factor at alternate payee's age. (r) When a member who is participating in DROP has an alternate payee begin a distribution under this section, TRS will reduce the DROP account by applying the percentage of the member's accrued benefit payable to the alternate payee under the terms of the qualified domestic relations order beginning with the initial month that a distribution is payable to the alternate payee. (s) If the amount of monthly retirement benefit awarded to the alternate payee in the QDRO is a stated monthly amount rather than a percentage, TRS shall determine the alternate payee's actuarial equivalent benefit by multiplying the stated monthly amount times the life annuity factor at the member's age and then dividing the product by the life annuity factor at the alternate payee's age. (t) If the amount of monthly retirement benefit awarded to the alternate payee in the QDRO is a percentage of the benefit but limited to no more than a stated monthly amount, TRS shall determine the alternate payee's actuarial equivalent benefit by multiplying the member's accrued benefit times the life annuity factor at member's age times the alternate payee's percent, then dividing that product by the life annuity factor at alternate payee's age. If the amount derived from this calculation is smaller than the stated monthly amount, the amount calculated is the alternate payee's actuarial equivalent benefit. If the amount derived from this calculation is larger than the stated monthly amount, the alternate payee's actuarial equivalent benefit is calculated by dividing the stated monthly amount by the life annuity factor at the alternate payee's age. (u) If the amount of the monthly retirement benefit awarded to the alternate payee in the QDRO is a percentage of the benefit but limited to no more than a stated monthly amount, TRS shall determine the member's adjusted standard annuity by reducing the member's standard annuity monthly benefit at the time of retirement by the lesser of the stated monthly amount and the amount of the reduction calculated under subsection (i) of this section.",
            "sourceNote": "Source Note: The provisions of this §47.17 adopted to be effective April 21, 1999, 24 TexReg 3094; amended to be effective October 28, 1999, 24 TexReg 9300; amended to be effective March 12, 2003, 28 TexReg 2118; amended to be effective March 8, 2007, 32 TexReg 1097; amended to be effective April 1, 2011, 36 TexReg 2004; amended to be effective October 10, 2013, 38 TexReg 6922; amended to be effective September 1, 2019, 44 TexReg 4191; amended to be effective January 18, 2021, 46 TexReg 472; amended to be effective September 1, 2023, 48 TexReg 4521."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100839&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100839",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "49",
                "label": "COLLECTION OF DELINQUENT OBLIGATIONS"
            },
            "rule": {
                "number": "§49.1",
                "label": "Collection Procedures"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100841&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100841",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The executive director or his designee shall develop and maintain procedures for determining whether an obligation owed to TRS is delinquent and for collecting a delinquent obligation.",
            "sourceNote": "Source Note: The provisions of this §49.1 adopted to be effective January 4, 1993, 17 TexReg 9037; amended to be effective June 9, 1999, 24 TexReg 4251; amended to be effective March 12, 2003, 28 TexReg 2120."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100841&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100841",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "49",
                "label": "COLLECTION OF DELINQUENT OBLIGATIONS"
            },
            "rule": {
                "number": "§49.2",
                "label": "Demand Letters"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175656&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175656",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A department that has determined a delinquent obligation is owed to TRS shall send a first demand letter to the obligor, generally no later than 30 days after such determination is made. If no satisfactory response is received within 30 days after the date of the first letter, the department shall send a second demand letter to the obligor, generally no sooner than 30 days but not more than 60 days after the date of the first demand letter.(b) Demand letters should be mailed in envelopes that contain the statement \"address service requested\" and shall comply with the applicable requirements for address verification in 39 Code of Federal Regulations Chapter III, Subchapter A, Part 3001, Subpart C, Appendix A, §911. Second demand letters shall state, where practical and in accordance with TRS procedures, that the delinquent obligation may be referred to the attorney general if it is not resolved in manner satisfactory to TRS.(c) If the department does not receive a satisfactory response after sending two demand letters, the department shall determine whether the obligation is uncollectible as a practical matter, based on established procedures. The department shall adequately document a determination that a delinquent obligation is uncollectible.",
            "sourceNote": "Source Note: The provisions of this §49.2 adopted to be effective January 4, 1993, 17 RexReg 9037; amended to be effective March 12, 2003, 28 TexReg 2120."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175656&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175656",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "49",
                "label": "COLLECTION OF DELINQUENT OBLIGATIONS"
            },
            "rule": {
                "number": "§49.3",
                "label": "Referrals of Delinquent Obligations to Attorney General for Collection"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100838&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100838",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If a department determines that a delinquent obligation may be collectible or if TRS procedures otherwise require, the department shall refer the obligation to the Legal Services Department for recommendation of whether TRS should refer the obligation to the attorney general for collection.(b) The executive director or his designee shall decide whether to refer a matter to the attorney general for collection. This decision and any referral to the attorney general should be made no later than 90 days after the determination that an obligation owed to TRS is delinquent.(c) Except as noted in this chapter, TRS will not refer for collection delinquent obligations in which the amount to be recovered would be less than the total sum of expense to TRS and the attorney general for travel, employee time, court costs, and other relevant expenses.(d) The executive director or his designee may for policy reasons, actuarial reasons, or other good cause refer a delinquent obligation to the attorney general for collection even if the size of the obligation or other considerations generally would cause TRS not to refer the obligation.(e) In making a determination of whether to refer a delinquent obligation to the attorney general, the executive director or his designee shall consider:(1) expense of further collection procedures;(2) the size of the delinquent obligation;(3) the existence of any security;(4) the possibility of collection or satisfaction of the delinquent obligation through other means;(5) the likelihood of collection; and(6) any other relevant factors established by TRS collections procedures.(f) When referring a delinquent obligation to the attorney general, TRS shall provide:(1) the obligor's verified address and telephone number;(2) a statement that the obligation is not uncollectible;(3) proof of no more than two demand letters to the obligor at the obligor's verified address; and(4) other relevant information relating to the delinquent obligations and TRS's collection efforts.",
            "sourceNote": "Source Note: The provisions of this §49.3 adopted to be effective January 4, 1993, 17 TexReg 9037; amended to be effective June 9, 1999, 24 TexReg 4251; amended to be effective March 12, 2003, 28 TexReg 2120; amended to be effective January 1, 2016, 40 TexReg 9731."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100838&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100838",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "49",
                "label": "COLLECTION OF DELINQUENT OBLIGATIONS"
            },
            "rule": {
                "number": "§49.4",
                "label": "Extension of Deadlines"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100843&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100843",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If an address correction is received, TRS shall re-send a demand letter to the correct address, and the deadlines provided in this chapter shall be tolled accordingly.(b) Where determinations of obligations or indebtedness are subject to administrative appeal procedures, the deadlines provided in this chapter shall be tolled during the pendency of an appeal.",
            "sourceNote": "Source Note: The provisions of this §49.4 adopted to be effective January 4, 1993, 17 TexReg 9037; amended to be effective March 12, 2003, 28 TexReg 2120."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100843&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100843",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "49",
                "label": "COLLECTION OF DELINQUENT OBLIGATIONS"
            },
            "rule": {
                "number": "§49.5",
                "label": "Records"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100844&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100844",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "TRS shall keep records identifying all persons or entities liable for delinquent obligations and the correct physical address of the obligor's business and/or residence, if available. Such records should also contain collection histories on each obligor showing, where applicable, attempted contacts with the obligor; efforts to locate the obligor; efforts to locate the assets of the obligor and the results of such efforts; state warrants that may be issued to the obligor; security interests that TRS has against any assets of the obligor; and any other information considered by TRS to be relevant.",
            "sourceNote": "Source Note: The provisions of this §49.5 adopted to be effective January 4, 1993, 17 TexReg 9037; amended to be effective June 9, 1999, 24 TexReg 4251; amended to be effective March 12, 2003, 28 TexReg 2120."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100844&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100844",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "49",
                "label": "COLLECTION OF DELINQUENT OBLIGATIONS"
            },
            "rule": {
                "number": "§49.6",
                "label": "Supplemental and Alternative Collection Procedures"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100845&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "100845",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "At the time collection attempts are being made, TRS may consider supplemental or alternative debt collection procedures, including warrant hold procedures authorized by Government Code, §403.055.",
            "sourceNote": "Source Note: The provisions of this §49.6 adopted to be effective January 4, 1993, 17 TexReg 9037; amended to be effective March 12, 2003, 28 TexReg 2120."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=100845&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "100845",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "49",
                "label": "COLLECTION OF DELINQUENT OBLIGATIONS"
            },
            "rule": {
                "number": "§49.7",
                "label": "Exceptions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151273&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "151273",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The following obligations to TRS shall be exempt from the procedures in this chapter:(1) obligations arising from the investments of the system, which shall be governed by the TRS investment policy and procedures;(2) state contributions;(3) other obligations for which a statute provides alternative collection procedures, including but not limited to:(A) employer reimbursement or assumption of state contributions;(B) unpaid member contributions;(C) overpayments that TRS concludes may appropriately be recovered by actuarial adjustments to benefits;(4) collections made by third parties pursuant to legally authorized contracts.(b) Voluntary payments made to TRS, including installment payments for special service credit or reinstated service credit, are not obligations to TRS and may not be considered delinquent obligations. Such payments are not subject to this chapter.(c) For good cause the executive director or his designee may make exceptions to the procedures in this chapter.",
            "sourceNote": "Source Note: The provisions of this §49.7 adopted to be effective January 4, 1993, 17 TexReg 9037; amended to be effective June 9, 1999, 24 TexReg 4251; amended to be effective February 15, 2000, 25 TexReg 1125; amended to be effective March 12, 2003, 28 TexReg 2120."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151273&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "151273",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "51",
                "label": "GENERAL ADMINISTRATION"
            },
            "rule": {
                "number": "§51.1",
                "label": "Advisory and Auxiliary Committees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=220414&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "220414",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The following committees are created for a period which will expire at the end of the next sunset review for the Teacher Retirement System of Texas (TRS) which is September 1, 2019, unless continued by the outcome of the sunset process, to advise or otherwise serve the retirement system and are deemed necessary to assist the Board of Trustees in performing its duties:(1) a Medical Board, composed of three licensed physicians as provided by §825.204, Government Code; and(2) a Retirees Advisory Committee for the health benefits program under the Texas Public School Retired Employees Group Benefits Act (TRS-Care), composed as provided by Subchapter I of Chapter 1575, Insurance Code.(b) The duties of a committee under this section are established by applicable statute or policies of the Board of Trustees.(c) The members of the Medical Board shall be paid, as independent contractors, fees and expenses in accordance with contracts negotiated by the executive director or his designee subject to the applicable resolutions, policies, and annual budget adopted by the Board of Trustees. To the extent advisory committees are composed of independent contractors they are to be considered consultants employed by the retirement system under the authority recognized by §2254.024, Government Code.(d) Members of the Retirees Advisory Committee for TRS-Care do not serve as independent contractors and are entitled only to reimbursement for actual and reasonable expenses incurred in performing functions as members of the committee.",
            "sourceNote": "Source Note: The provisions of this §51.1 adopted to be effective January 12, 1994, 19 TexReg 87; amended to be effective April 22, 1994, 19 TexReg 2550; amended to be effective April 14, 1998, 23 TexReg 3698; amended to be effective March 12, 2003, 28 TexReg 2120; amended to be effective March 8, 2007, 32 TexReg 1098; amended to be effective April 1, 2011, 36 TexReg 2005."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=220414&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "220414",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "51",
                "label": "GENERAL ADMINISTRATION"
            },
            "rule": {
                "number": "§51.2",
                "label": "Vendor Protests and Appeals"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170812&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170812",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions. The following words and terms, when used in this rule, shall have the following meanings unless the context clearly indicates otherwise.(1) Appeal: A written appeal of the Determination of the Chief Officer.(2) Appealing Party: A party who files an Appeal to the Determination.(3) Chief Officer: the head of any business unit of TRS.(4) Determination: A determination issued by the Chief Officer in response to a Protest.(5) Director of Procurement & Contracts (P&C Director): The head of the TRS division responsible for overseeing the procurement of goods and services.(6) Executive Director: Appointed by the TRS Board of Trustees pursuant to Government Code §825.202.(7) Final Decision: A decision issued by the Executive Director in response to an Appeal.(8) Interested Parties: Vendors who submitted a bid, offer, or proposal, as applicable, in response to the subject procurement.(9) Protest: A process initiated in accordance with this rule by a Vendor who believes they have been aggrieved in connection with a solicitation, evaluation, or award of a contract.(10) Protesting Party: A party who files a Protest.(11) Solicitation Documents: All documents (including Invitation for Bids, Request for Offers, Request for Proposals, and Request for Qualifications) requesting responses from Vendors to provide specified goods or services, or both. Solicitation Documents also include any addenda posted by TRS to the Electronic State Business Daily (ESBD) or the TRS website, which may be accessed at https://www.trs.texas.gov/, as applicable, for the subject procurement.(12) TRS Legal & Compliance (TRS L&C): The TRS legal and compliance division.(13) TRS Legal Counsel: the TRS General Counsel or any attorney designated by TRS General Counsel.(14) Vendor: An individual, company, partnership, corporation, or other entity that has filed a response to a TRS solicitation.(b) Purpose. The purpose of this rule is to provide a procedure for a Vendor to Protest or Appeal, if applicable, the process by which TRS purchases goods, services, or both.(c) Exceptions.(1) This section does not apply to protests of purchases made by:(A) the Texas Facilities Commission (Facilities Commission) on behalf of TRS, which are addressed in 1 Texas Administrative Code Chapter 111, Subchapter C (relating to Complaints and Dispute Resolution);(B) the Department of Information Resources (DIR) on behalf of TRS, which are addressed in 1 Texas Administrative Code Chapter 201, §201.1 (relating to Procedures for Vendor Protests and the Negotiation and Mediation of Certain Contract Disputes and Bid Submission, Opening and Tabulation Procedures);(C) the Comptroller of Public Accounts (Comptroller's Office) on behalf of TRS, which are addressed in 34 Texas Administrative Code Chapter 20, Subchapter F, Division 3 (relating to Protests and Appeals); or(D) TRS, for transactions in which TRS buys or sells securities (whether publicly traded or privately issued) under the authority of Government Code §825.302, as well as any other transactions not subject to state purchasing rules.(2) The rules of the Facilities Commission, DIR, and the Comptroller's Office may be accessed through the website of the Office of the Secretary of State, Texas Register Division located at: www.sos.state.tx.us/tac/index.shtml.(d) Stay of Protest or Appeal. If a timely Protest or Appeal is filed, the Protesting Party or the Appealing Party may request in writing that TRS not proceed further with the solicitation or with the award of the contract. In support of the request, the Protesting Party or Appealing Party is required to show why a stay is necessary and that harm to TRS will not result from the stay. If the Executive Director determines that it is in the interest of TRS not to proceed with the solicitation or contract award, the Executive Director may make such a decision in writing and partially or fully suspend procurement or contract activity. Any request for a stay must be submitted in accordance with the requirements stated in the Solicitation Document (relating to Vendor Protests and Appeals) or on the TRS website, may be accessed at https://www.trs.texas.gov/., as applicable.(e) Protest Procedures(1) A Vendor who believes they have been aggrieved in connection with a solicitation, evaluation, or award of a contract may formally Protest to TRS. Such Protest must be in writing and timely received by TRS L&C in accordance with the instructions provided in the Solicitation Document or on the TRS website, which may be accessed at https://www.trs.texas.gov/., as applicable. Copies of the Protest must be concurrently mailed or delivered by the Protesting Party to all other Interested Parties.(2) To be considered timely, the Protest must be filed:(A) by the end of the posted solicitation period, if the Protest concerns the Solicitation Documents or actions associated with the publication of the Solicitation Documents; or(B) no later than 10 calendar days after the notice of contract award is posted to either the ESBD or the TRS website, which may be accessed at https://www.trs.texas.gov/, as applicable, if the Protest concerns the evaluation or award. Notice of Awards posted to the TRS website may be accessed at https://www.trs.texas.gov/.(3) A formal Protest must be sworn and contain:(A) a specific identification of the State of Texas statutory provision(s), TRS policy, or TRS Procurement and Contract Management Guide (Guide) requirement that the action complained of is alleged to have violated;(B) a specific description of each act alleged to have violated a State of Texas statutory provision(s), TRS regulatory policy, or Guide requirement;(C) a precise statement of the relevant facts;(D) an identification of the issue or issues to be resolved;(E) argument and authorities in support of the Protest;(F) a precise statement of the remedy requested by the Protesting Party; and(G) a statement that copies of the Protest have been mailed or delivered to all other Interested Parties. Upon request, TRS will provide the Protesting Party with a list of Interested Parties as reflected in TRS records.(f) Review and Disposition of Protests.(1) TRS L&C will be responsible for management of the Protest and will coordinate TRS' disposition of the Protest with the Chief Officer, with support provided by the P&C Director.(2) The Chief Officer may:(A) dismiss the Protest if the Chief Officer determines the Protest was not timely filed or does not meet the requirements of subsection (d) of this section; or(B) settle and resolve a timely Protest by mutual agreement of TRS and the Protesting Party.(3) If the Chief Officer does not dismiss or resolve the Protest, the Chief Officer may, in his or her sole discretion, solicit written responses to the Protest from other Interested Parties.(4) If the Protest is not dismissed or resolved under paragraph (2) of this subsection, the Chief Officer will issue to the Protesting Party and other Interested Parties a written Determination as to whether a violation of State of Texas statutes, TRS regulatory policies, or Guide requirements has occurred.(5) The Determination will set forth the reasons for the Determination, and any appropriate remedial action, if applicable. Such remedial action, if applicable, may include, but is not limited to, declaring the procurement void; reversing the award and awarding the contract to a different Interested Party; or re-advertising the procurement.(g) Appeal of Protest.(1) The Protesting Party or an Interested Party may Appeal the Determination to the Executive Director. The written Appeal must be received in accordance with the requirements stated in the Solicitation Document or on the TRS website, which may be accessed at https://www.trs.texas.gov, as applicable, no later than ten working days after the date of the Determination. The Appeal is limited to a review of the Determination.(2) The Appealing Party must concurrently mail or deliver copies of the Appeal to all other Interested Parties and must include an affidavit that such copies have been provided.(3) TRS L&C shall review the Protest, the Determination, and the Appeal and prepare a written opinion with a recommendation to the Executive Director. The Executive Director may, in his or her discretion, refer the matter to the Board of Trustees at a regularly scheduled open meeting or issue in writing a Final Decision.(4) When a Protest has been appealed to the Executive Director under paragraph (1) of this subsection and has been referred to the Board of Trustees by the Executive Director under paragraph (3) of this subsection, the following requirements shall apply:(A) Copies of the Appeal, responses of Interested Parties, if any, and the TRS L&C recommendation shall be mailed to the Board members and Interested Parties. Copies of the TRS L&C recommendation and responses of Interested Parties shall be mailed to the Appealing Party.(B) All Interested Parties who wish to make an oral presentation at the open meeting are requested to notify the TRS L&C in accordance with the requirements stated in the Solicitation Document or on the TRS website, which may be accessed at https://www.trs.texas.gov/, as applicable, at least 48 hours in advance of the open meeting.(C) The Board of Trustees may consider oral presentations and written documents presented by staff, the Appealing Party, and Interested Parties. The chairman shall set the order and amount of time allowed for presentations.(D) The Board of Trustees' determination of an Appeal shall be by duly adopted resolution reflected in the minutes of the open meeting and shall be final.(5) A Final Decision issued either by the Board of Trustees in open meeting or in writing by the Executive Director shall be the final administrative action of TRS.",
            "sourceNote": "Source Note: The provisions of this §51.2 adopted to be effective August 25, 2024, 49 TexReg 6463."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170812&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170812",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "51",
                "label": "GENERAL ADMINISTRATION"
            },
            "rule": {
                "number": "§51.5",
                "label": "Waiver of Deadline to Remit Deposits and Documentation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151275&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "151275",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as provided in §25.28 of this title (relating to Payroll Report Dates), on written request by an employer, the Teacher Retirement System of Texas (TRS) may grant a one-time waiver for three months, of the deadline imposed by §825.408(a), Government Code, to remit all member and employer deposits and documentation of deposits before the seventh day after the last day of a month. In support of the request, an employer is required to submit the reasons for a waiver and an explanation of corrective measures being taken by the employer toward compliance with Section 825.408(a), Government Code, and to pay the required interest on the unpaid and/or undocumented amounts. The employer shall also submit corrected reports for the months in question in the form and manner prescribed by TRS.(b) Except as provided in §25.28 of this title (relating to Payroll Report Dates), TRS shall not consider additional requests for a waiver of the deadline except in the case of a catastrophic event affecting the district's financial or technological resources.(c) This section does not apply to health insurance.",
            "sourceNote": "Source Note: The provisions of this §51.5 adopted to be effective March 12, 2003, 28 TexReg 2120; amended to be effective December 23, 2014, 39 TexReg 10031."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151275&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "151275",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "51",
                "label": "GENERAL ADMINISTRATION"
            },
            "rule": {
                "number": "§51.7",
                "label": "Assignment of TRS Vehicles"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196325&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "196325",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) TRS vehicles are assets of the Teacher Retirement System of Texas (TRS) pension fund and, except as provided in subsection (b) of this section, are assigned to the TRS motor pool, available for checkout and use in accordance with the provisions of the TRS vehicle policy adopted by TRS staff and in effect at the time of checkout or use.(b) TRS may assign a vehicle to an employee on a regular or every day basis only if TRS determines that the assignment is critical to the needs and mission of TRS. The determination shall be made by the Executive Director or his designee and documented in writing.",
            "sourceNote": "Source Note: The provisions of this §51.7 adopted to be effective March 6, 2003, 28 TexReg 2121; amended to be effective April 1, 2011, 36 TexReg 2005."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196325&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "196325",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "51",
                "label": "GENERAL ADMINISTRATION"
            },
            "rule": {
                "number": "§51.11",
                "label": "Historically Underutilized Businesses"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151277&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "151277",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "For the purpose of making purchases with funds appropriated to it, the Teacher Retirement System of Texas (TRS) adopts by reference the rules of the Comptroller of Public Accounts (comptroller's office) in 34 Texas Administrative Code Chapter 20, Subchapter D, Division 1 (relating to the Historically Underutilized Business Program). The rules of the comptroller's office are in the Texas Administrative Code, which is on the Internet website of the Office of the Secretary of State, Texas Register Division at: www.sos.state.tx.us/tac/index.shtml.",
            "sourceNote": "Source Note: The provisions of this §51.11 adopted to be effective January 11, 2001, 2001, 26 TexReg 213; amended to be effective March 12, 2003, 28 TexReg 2120; amended to be effective April 1, 2011, 36 TexReg 2005; amended to be effective August 22, 2019, 44 TexReg 4324."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=151277&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "151277",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "51",
                "label": "GENERAL ADMINISTRATION"
            },
            "rule": {
                "number": "§51.12",
                "label": "Applicability of Certain Laws in Effect Before September 1, 2005"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=167965&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "167965",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A person who retires under the Teacher Retirement System of Texas (TRS) on or after September 1, 2005, and who meets one or more of the following requirements on or before August 31, 2005, while a member of TRS is governed by provisions of state law relating to early retirement with at least twenty years of service credit under §824.202(c), Government Code, three year salary average under §824.203, Government Code, and the partial lump-sum option (PLSO) under §824.2045, Government Code, as those provisions existed prior to September 1, 2005:(1) the person has attained age 50;(2) the sum of the person's age and amount of service credit in the retirement system equals 70 or greater; or(3) the person has at least 25 years of service credit in the retirement system.(b) A member who meets at least one of the requirements of subsection (a) of this section by August 31, 2005, before termination of membership through withdrawal of member contributions or absence from service shall be considered as continuing to be eligible under subsection (a) of this section upon resumption of membership.(c) Service that is credited on or before August 31, 2005 with another Texas public retirement system and that meets all requirements to be used for retirement eligibility under the proportionate retirement program or the ERS/TRS transfer program may be considered to determine eligibility of a TRS member under subsection (a)(2) and (3) of this section.(d) Purchased or reinstated service credit in the retirement system may be considered to determine eligibility of a TRS member under subsection (a)(2) and (3) of this section if credited in accordance with uniform administrative requirements, including payment deadlines, established by the retirement system in order to complete processing for members who request purchase of service credit before August 31, 2005.",
            "sourceNote": "Source Note: The provisions of this §51.12 adopted to be effective December 29, 2005, 30 TexReg 8700; amended to be effective April 1, 2011, 36 TexReg 2005."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=167965&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "167965",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "51",
                "label": "GENERAL ADMINISTRATION"
            },
            "rule": {
                "number": "§51.13",
                "label": "Five-Year Service Credit Requirement Effective August 31, 2014"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196808&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "196808",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A member with less than five years of service credit on August 31, 2014 and/or a person whose membership begins on or after September 1, 2014, must meet the requirements of §824.202(a-2), Government Code, to be eligible for a standard service retirement annuity.(b) An eligible member may purchase any withdrawn, unreported, waiting period, and/or USERRA service credit in order to meet the five years of service credit requirement. Except as provided in subsection (c) of this section, the purchase of any withdrawn service credit must be completed, i.e. amount required to purchase the service credit paid in full, by August 31, 2014. If the purchase of service credit includes any years of service credit that may be purchased one year at a time, only the amount required to purchase the number of years of service credit needed to meet the five years of service credit requirement must be paid in full by August 31, 2014.(c) An eligible member seeking to purchase service credit in order to meet the five years of service credit requirement must submit a request to purchase the service credit to TRS. The request to purchase the service credit and all documentation required to establish eligibility to purchase the service credit must be received by TRS before 12:00 a.m. on September 3, 2014. A member meeting this requirement will be given until the later of 11:59 p.m. on September 2, 2014 or a 30-day period from the date TRS mails the bill for the purchase of service credit to submit full payment for the service credit to be used in meeting the five years of service credit requirement.(d) A member who meets the five years of service credit requirement on August 31, 2014 or as described in subsection (c) of this section, but terminates membership by withdrawal of accumulated contributions after that date and later resumes membership in TRS must meet the requirements of §824.202(a-2), Government Code, to be eligible for a standard service retirement annuity.(e) A person who was a member of TRS on August 31, 2014 and who has verified but not purchased USERRA service credit for eligible military service performed before September 1, 2014 may use the USERRA service credit to meet the five years of service credit requirement provided membership is maintained until retirement. The USERRA service may be verified any time before retirement.(f) A person who is a member of TRS on August 31, 2014 and who has service credited on August 31, 2014 in the Employees Retirement System of Texas (ERS) or another retirement system participating in the Proportionate Retirement Program established in Chapter 803, Government Code and maintains the combined service credit until retirement, may use the combined service credit to meet the five years of service credit requirement described in this section.",
            "sourceNote": "Source Note: The provisions of this §51.13 adopted to be effective July 17, 2014, 39 TexReg 5435."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196808&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "196808",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "51",
                "label": "GENERAL ADMINISTRATION"
            },
            "rule": {
                "number": "§51.14",
                "label": "Enhanced Contract Monitoring Procedures"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196809&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "196809",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The Teacher Retirement System of Texas (TRS) shall assess each contract to determine whether enhanced contract monitoring is necessary.(b) TRS shall use the following factors to determine whether enhanced contract monitoring is necessary:(1) the complexity of the services;(2) the dollar value of the contract;(3) whether the services or contractor are new or significantly changed;(4) whether the TRS staff managing the contract are new or significantly changed; and(5) any other factors that may impact the project.(c) If TRS determines that a contract requires enhanced monitoring, TRS may require that the vendor provide status reports on a scheduled basis to determine whether performance measures are being met. Enhanced monitoring may also include site visits, additional meetings with the vendor, and other documentation requirements needed to assess progress toward meeting performance measures.(d) The Director of Procurement and Contracts (Director) shall notify TRS Executive Management of contracts requiring enhanced monitoring under this section. The Director shall also immediately notify the TRS' Board of Trustees of any serious issue or risk that is identified in a contract monitored under this section.(e) This section does not apply to an interagency agreement, interlocal agreement, a memorandum of understanding with another state agency, or a contract for which there is no cost to TRS.",
            "sourceNote": "Source Note: The provisions of this §51.14 adopted to be effective October 20, 2019, 44 TexReg 6032."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=196809&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "196809",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "3",
                "label": "TEACHER RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "51",
                "label": "GENERAL ADMINISTRATION"
            },
            "rule": {
                "number": "§51.15",
                "label": "Contract Monitoring Roles and Responsibilities"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207319&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207319",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The contract monitoring roles and responsibilities of TRS' internal audit staff and other inspection, investigative, or compliance staff are as follows:(1) the internal audit division will perform audits of the contract management function and systems when they are warranted by the results of risk assessment or included in the audit plan approved by TRS pursuant to Government Code, §2102.005 and §2102.008;(2) the Procurement and Contracts business unit will seek to improve contract compliance by serving as a central repository for agency contracts so the agency can perform contract compliance reviews;(3) TRS does not have a criminal enforcement unit. Criminal activity related to agency contracts will be reported to the appropriate authorities as set out in statute;(4) the contract sponsor that oversees a contract will monitor and report to the Procurement and Contracts business unit regarding contract compliance;(5) TRS' Procurement and Contracts business unit will assist the administering business unit and contract sponsor in monitoring agency contracts in connection with applicable historically underutilized and minority business contract requirements; and(6) upon contract close-out, the Procurement and Contracts business unit will file vendor performance reports, as required by the rules of the Comptroller of Public Accounts in 34 TAC Part 1, Chapter 20, Subchapter F, Division 2 (relating to Procurement), §20.509 (relating to Performance Reporting).",
            "sourceNote": "Source Note: The provisions of this §51.15 adopted to be effective October 20, 2019, 44 TexReg 6032."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207319&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207319",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "61",
                "label": "TERMS AND PHRASES"
            },
            "rule": {
                "number": "§61.1",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207320&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207320",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this part, shall have the following meanings, unless the context clearly indicates otherwise.(1) Contributory service--Service for which all necessary deposits were made with and are being held by the system.(2) System--The Employees Retirement System of Texas.(3) Trustees, board, or board of trustees--The board of trustees of the Employees Retirement System of Texas.(4) Year--The state fiscal year.(5) Interested person--Any member of the system; any beneficiary or survivor of a system member; any retiree of the system; any guardian, administrator, or executor of a system member, retiree, or beneficiary; and any state agency employing system members.",
            "sourceNote": "Source Note: The provisions of this §61.1 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective January 10, 1999, 24 TexReg 164; amended to be effective March 14, 2016, 41 TexReg 1858; amended to be effective December 27, 2021, 46 TexReg 9058."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207320&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207320",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "63",
                "label": "BOARD OF TRUSTEES"
            },
            "rule": {
                "number": "§63.1",
                "label": "Duties of the Board of Trustees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207321&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207321",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The Board of Trustees shall formulate policies and rules consistent with the statutes that govern ERS.",
            "sourceNote": "Source Note: The provisions of this §63.1 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective March 14, 2016, 41 TexReg 1859; amended to be effective December 27, 2021, 46 TexReg 9059."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207321&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207321",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "63",
                "label": "BOARD OF TRUSTEES"
            },
            "rule": {
                "number": "§63.3",
                "label": "Election of Trustees (Nomination Process)"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207322&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207322",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A member or retiree of the system who meets statutory eligibility criteria may be nominated to serve as a trustee of the system in the following manner:(1) A member or retiree must file a petition on a form approved by the system. The petition must be signed by 300 or more persons qualified to vote in the trustee election. Only members of the system and retirees are qualified to vote in the election. The system will accept up to 600 signatures from each candidate.(2) Each signature on a petition must be accompanied by that person's printed or typed name, ZIP Code, and any other information requested by the system to confirm the signer's identity. No person may sign a petition for more than one candidate. To do so will cause the signatures of the person to be disqualified on all petitions.(3) The system must receive signed petitions before the deadline established by the board. A copy of a signed paper petition will not be accepted in lieu of the original signed petition. Electronic petitions must be completed and submitted in accordance with the instructions provided with electronic petition forms.(4) The board shall establish deadlines and other dates related to trustee elections. Blank petitions shall be made available by the system at least 25 calendar days in advance of the deadline established by the board for filing signed petitions.(5) A member may not be nominated to serve as a trustee if:(A) the member is employed by the same employer as another trustee whose term will continue following the election; or(B) the member is currently employed by the system or has been employed by the system within six years prior to the date of nomination.(6) A retiree may not be nominated to serve as a trustee if:(A) the board includes another retiree whose term will continue following the election; or(B) the retiree was an employee of the system within six years prior to the date of nomination.",
            "sourceNote": "Source Note: The provisions of this §63.3 adopted to be effective April 26, 1983, 8 TexReg 1216; amended to be effective November 28, 1990, 15 TexReg 6499; amended to be effective September 29, 1992, 17 TexReg 6373; amended to be effective September 14, 2006, 31 TexReg 7358; amended to be effective March 14, 2016, 41 TexReg 1859; amended to be effective December 28, 2020, 45 TexReg 9573; amended to be effective December 27, 2021, 46 TexReg 9059."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207322&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207322",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "63",
                "label": "BOARD OF TRUSTEES"
            },
            "rule": {
                "number": "§63.4",
                "label": "Election of Trustees (Ballot)"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207323&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207323",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The order of the names on the ballot shall be established by drawing at a time and setting determined by the system. Each candidate or the candidate's representative may attend the drawing.(b) Each candidate must submit the information requested by the system for presentation on the ballot. Such information may include:(1) name as it is to appear on the ballot;(2) current title and position as a state employee;(3) name and address of employing state agency; and(4) any other information the system determines may be helpful to the electorate.(c) In addition to the information described in subsection (b) of this section, each candidate must provide a statement of qualifications, a description of the candidate's position on system-related issues (250 words or less), and any additional information requested by the system. This information shall be made available to the electorate through a special election newsletter devoted to the election process. This special edition of the newsletter will describe restrictions on the use of state funds to influence the outcome of any election.(d) The system may contract with an election administrator to implement and monitor the election process. Balloting may be conducted electronically or in combination with a printed ballot.(e) The system or the election administrator shall make ballots available to eligible voters. Upon the request of a candidate, the system or the election administrator shall provide the candidate with 500 ballots without preprinted names.(f) The system or the election administrator shall provide a 24-hour toll-free telephone number that eligible voters may use to request a printed ballot.(g) Electronic ballots must be completed and submitted to the system or the election administrator in accordance with the instructions provided with each ballot.(h) The system or the election administrator shall disqualify any ballot that does not meet the requirements specified in the instructions provided with the ballot.(i) The board or the board's designee shall certify election results. If only one candidate is eligible to be presented on the ballot, the board or the board's designee may certify the candidate without an election.",
            "sourceNote": "Source Note: The provisions of this §63.4 adopted to be effective April 26, 1983, 8 TexReg 1217; amended to be effective November 28, 1990, 15 TexReg 6499; amended to be effective September 29, 1992, 17 TexReg 6373; amended to be effective November 9, 1994, 19 TexReg 8616; amended to be effective November 11, 1996, 21 TexReg 10765; amended to be effective November 15, 1998, 23 TexReg 11404; amended to be effective September 18, 2002, 27 TexReg 8773; amended to be effective January 5, 2005, 29 TexReg 12234; amended to be effective December 7, 2008, 33 TexReg 10047; amended to be effective March 14, 2016, 41 TexReg 1859; amended to be effective December 28, 2020, 45 TexReg 9573; amendedtobe effective June 16, 2021, 46 TexReg 3615; amended to be effective December 27, 2021, 46 TexReg 9059."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207323&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207323",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "63",
                "label": "BOARD OF TRUSTEES"
            },
            "rule": {
                "number": "§63.5",
                "label": "Rulemaking Procedure"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207324&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207324",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Initiation method. The promulgation, adoption, repeal, or revision of any rule may be initiated by the executive director or any member of the board.(b) Petitions. Any interested person may petition the executive director or the board to request the adoption of a rule. Within 60 days after the receipt of a petition, the executive director shall either initiate rulemaking proceedings or place the matter on the agenda of the next regularly scheduled board meeting for discussion.",
            "sourceNote": "Source Note: The provisions of this §63.5 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective December 27, 2021, 46 TexReg 9059."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207324&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207324",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "63",
                "label": "BOARD OF TRUSTEES"
            },
            "rule": {
                "number": "§63.7",
                "label": "Public Comment to the Board of Trustees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207325&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207325",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A member of the public who wishes to make a presentation to the board regarding an item on the board's agenda may do so in accordance with the following procedures:(1) A form approved by the system must be completed and submitted to the system prior to the board meeting in the time and manner specified.(2) Only the parties involved in an appeal may comment on administrative appeals that are presented to the board.(3) The board shall hear comments regarding an agenda item at the time the agenda item is under consideration.(4) Comments by an individual on a particular agenda item shall be limited to five minutes unless the chair modifies the amount of time allotted.(5) The combined maximum amount of time for all public comments regarding an agenda item is 30 minutes unless the chair modifies the amount of time allotted.(6) Members of the public are encouraged to submit written comments to the board in lieu of or in addition to oral comments.",
            "sourceNote": "Source Note: The provisions of this §63.7 adopted to be effective February 28, 1991, 16 TexReg 987; amended to be effective December 27, 2021, 46 TexReg 9059."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207325&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207325",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "63",
                "label": "BOARD OF TRUSTEES"
            },
            "rule": {
                "number": "§63.9",
                "label": "Officers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20040&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "20040",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "At the last regularly scheduled board meeting each year, the board shall elect a chair and vice chair who shall take office the following September 1. The chair or vice chair, in the chair's absence, shall preside at meetings of the board.",
            "sourceNote": "Source Note: The provisions of this §63.9 adopted to be effective November 9, 1992, 17 TexReg 7529; amended to be effective December 27, 2021, 46 TexReg 9059."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20040&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "20040",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "63",
                "label": "BOARD OF TRUSTEES"
            },
            "rule": {
                "number": "§63.11",
                "label": "Quorum"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207326&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207326",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A majority of the members of the board constitute a quorum.",
            "sourceNote": "Source Note: The provisions of this §63.11 adopted to be effective November 9, 1992, 17 TexReg 7529."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207326&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207326",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "63",
                "label": "BOARD OF TRUSTEES"
            },
            "rule": {
                "number": "§63.13",
                "label": "Committees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207327&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207327",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The internal audit committee shall be considered a standing committee, and members shall be appointed by the chair at the beginning of each year. The chair shall designate additional ad hoc committees as necessary. The term of an ad hoc committee shall be for the year in which the ad hoc committee is appointed or until the work of the ad hoc committee is completed if within the year.",
            "sourceNote": "Source Note: The provisions of this §63.13 adopted to be effective November 9, 1992, 17 TexReg 7529; amended to be effective December 27, 2021, 46 TexReg 9059."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207327&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207327",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "63",
                "label": "BOARD OF TRUSTEES"
            },
            "rule": {
                "number": "§63.15",
                "label": "Robert's Rules of Order"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207328&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207328",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Unless otherwise required by law or these rules, Robert's Rules of Order may be used in the conduct of business by the board to the extent practicable.",
            "sourceNote": "Source Note: The provisions of this §63.15 adopted to be effective November 9, 1992, 17 TexReg 7529; amended to be effective December 27, 2021, 46 TexReg 9059."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207328&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207328",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "63",
                "label": "BOARD OF TRUSTEES"
            },
            "rule": {
                "number": "§63.17",
                "label": "Advisory Committees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207329&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207329",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The composition and functions of the Medical Board are established by statute. Remuneration, if any, for Medical Board members shall be determined by the board. The Medical Board shall perform its tasks until abolished by the legislature.(b) The Investment Advisory Committee (IAC) shall advise the board on issues related to investments. Subject to applicable statutory requirements, the board shall determine the number of IAC members, the prerequisites for membership, the reporting requirements for the IAC, whether to abolish the IAC, and the remuneration, if any, for IAC members.(c) The Group Benefits Advisory Committee (GBAC) shall advise the board on employee benefits administered by the board as part of the Texas Employees Group Benefits Program. The board shall determine the number of GBAC members, the prerequisites for membership, the reporting requirements for the GBAC, whether to abolish the GBAC, and the remuneration, if any, for GBAC members.",
            "sourceNote": "Source Note: The provisions of this §63.17 adopted to be effective May 27, 1994, 19 TexReg 3765; amended to be effective January 5, 2003, 27 TexReg 12370; amended to be effective January 2, 2018, 42 TexReg 7721; amended to be effective December 27, 2021, 46 TexReg 9059."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207329&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207329",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "63",
                "label": "BOARD OF TRUSTEES"
            },
            "rule": {
                "number": "§63.19",
                "label": "Standards of Conduct for Financial Advisors and Service Providers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207330&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207330",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "In accordance with Tex. Gov't Code §2263.004, any financial advisor or service provider who receives, directly or indirectly, more than $10,000.00 in compensation from the system during a year and provides financial services to the system, the board, or a member of the board regarding the management or investment of the system's funds shall comply with all applicable standards of conduct established by federal and state laws and regulations, relevant trade and professional associations, and the system's Investment Policy. The system may terminate any business relationship, including the termination of a contract, for failure to comply with an applicable standard of conduct as required by this section.",
            "sourceNote": "Source Note: The provisions of this §63.19 adopted to be effective December 31, 2003, 28 TexReg 11609; amended to be effective December 27, 2021, 46 TexReg 9059."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207330&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207330",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "65",
                "label": "EXECUTIVE DIRECTOR"
            },
            "rule": {
                "number": "§65.1",
                "label": "Duties of the Executive Director"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=176853&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "176853",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "All the administrative and decisional powers granted by the statutes that govern ERS are vested in the executive director, subject to policies and rules formulated by the board.",
            "sourceNote": "Source Note: The provisions of this §65.1 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective December 27, 2021, 46 TexReg 9059."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=176853&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "176853",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "65",
                "label": "EXECUTIVE DIRECTOR"
            },
            "rule": {
                "number": "§65.3",
                "label": "Records of the System"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207331&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207331",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The executive director or his/her designee is the custodian of records of the Employees Retirement System of Texas.(b) The executive director may appoint a staff member to certify to the authenticity of copies of system records.(c) No charge shall be made for one copy of any public record requested by members of the Legislature in the performance of their legislative duties or if the system determines that furnishing the records without cost can be considered as primarily benefiting the trust fund.(d) All funds generated from the charges assessed for providing public information and copies of public information shall remain a part of the funds of the system under the administration of the board.",
            "sourceNote": "Source Note: The provisions of this §65.3 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective September 22, 1992, 17 TexReg 6198; amended to be effective November 9, 1994, 19 TexReg 8616; amended to be effective January 3, 1997, 21 TexReg 12425; amended to be effective November 15, 1998, 23 TexReg 11404; amended to be effective May 3, 2006, 31 TexReg 3588; amended to be effective March 14, 2016, 41 TexReg 1859."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207331&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207331",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "65",
                "label": "EXECUTIVE DIRECTOR"
            },
            "rule": {
                "number": "§65.5",
                "label": "Correction of Administrative Error"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207332&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207332",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The executive director may take action necessary to correct an administrative error. The reason for any action by the executive director to correct an administrative error shall be made part of the appropriate record.",
            "sourceNote": "Source Note: The provisions of this §65.5 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective December 27, 2021, 46 TexReg 9059."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207332&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207332",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "65",
                "label": "EXECUTIVE DIRECTOR"
            },
            "rule": {
                "number": "§65.7",
                "label": "Appointment of Examiner"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207333&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207333",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The executive director shall have authority to appoint an examiner to conduct proceedings related to contested cases under the Administrative Procedure Act.",
            "sourceNote": "Source Note: The provisions of this §65.7 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective January 10, 1999, 24 TexReg 164; amended to be effective December 27, 2021, 46 TexReg 9059."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207333&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207333",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "65",
                "label": "EXECUTIVE DIRECTOR"
            },
            "rule": {
                "number": "§65.9",
                "label": "Delegation of Authority"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207334&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207334",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Any right, power, or duty conferred on the executive director by statute, rule, or board action may be exercised or performed by the deputy executive director as provided by Tex. Gov't Code §815.202(f) or if the executive director is incapacitated or otherwise unable to act.",
            "sourceNote": "Source Note: The provisions of this §65.9 adopted to be effective December 21, 1989, 14 TexReg 6421; amended to be effective January 5, 2003, 27 TexReg 12370; amended to be effective December 27, 2021, 46 TexReg 9059."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207334&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207334",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "65",
                "label": "EXECUTIVE DIRECTOR"
            },
            "rule": {
                "number": "§65.11",
                "label": "Reimbursement for Training or Education"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207335&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207335",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Before an employee of the system may be reimbursed under Tex. Gov't Code §656.047(b) the executive director must authorize the tuition reimbursement payment based on compliance with the requirements of §656.047(b) and applicable laws governing the trusts administered by the system.",
            "sourceNote": "Source Note: The provisions of this §65.11 adopted to be effective March 14, 2016, 41 TexReg 1859; amended to be effective December 27, 2021, 46 TexReg 9059."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207335&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207335",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "65",
                "label": "EXECUTIVE DIRECTOR"
            },
            "rule": {
                "number": "§65.13",
                "label": "Enhanced Contract Monitoring"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175477&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175477",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Contracts described by Tex. Gov't Code §2261.251(b) are subject to the system's enhanced contract and performance monitoring procedures.(b) The executive director shall designate staff who will be responsible for submitting the information on contracts described by Tex. Gov't Code §2261.251(b) to the board.",
            "sourceNote": "Source Note: The provisions of this §65.13 adopted to be effective March 14, 2016, 41 TexReg 1859; amended to be effective December 27, 2021, 46 TexReg 9059."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175477&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175477",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.1",
                "label": "Purpose and Scope"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175478&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175478",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Purpose of chapter. The purpose of this chapter is to provide an orderly and efficient system of procedure before the Board of Trustees (\"Board\") of the Employees Retirement System of Texas (\"ERS\"), the Board's designee or ERS staff to facilitate the administration of the laws of the state within its jurisdiction. This chapter shall be given a fair and impartial construction to attain these objectives.(b) Scope of chapter. This chapter shall exclusively govern the procedure for all Proceedings before the Board, its designee or ERS where notice and hearing are required or as otherwise provided herein. In accordance with §815.102(b), Government Code, this chapter supersedes and replaces all rules of procedure promulgated by the State Office of Administrative Hearings (\"SOAH\") in Proceedings originating with ERS. This chapter shall not be construed so as to enlarge, diminish, modify, or alter the jurisdiction, powers, or authority of the Board, its designee, ERS or the substantive rights of any person. Nor shall this chapter have the effect of waiving the sovereign (governmental) or official immunity of ERS, its trustees, officers, employees, agents, Administering Firms and Insurers.(c) Texas Rules of Civil Procedure. Proceedings under this chapter shall be conducted in accordance with the Texas Rules of Civil Procedure (including future amendments thereto), except where such rules conflict with a provision of this chapter or the Texas Administrative Procedure Act (Government Code §§2001.001 et seq.) (\"APA\"), in which event the provision of this chapter or the APA shall control.",
            "sourceNote": "Source Note: The provisions of this §67.1 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective September 14, 2006, 31 TexReg 7359; amended to be effective December 24, 2015, 40 TexReg 9302."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175478&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175478",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.3",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175479&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175479",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Administering Firm--Any firm designated by the Board to administer any coverages, services, claims, benefits, or requirements in accordance with Chapter 1551, Insurance Code and the rules of the Board. The Administering Firm may be considered a Party to any Proceeding in connection with such matters.(2) Agency--Any state board, commission, department, or officer having statewide jurisdiction (other than an agency wholly financed by federal funds, the Legislature, the courts, or any publicly funded institution of higher education) which makes rules or determines contested cases.(3) Appellant--Any Person with standing to pursue an administrative appeal under this chapter who, by written Pleading, including a notice of appeal, applies for or seeks an available administrative remedy from the Board or its designee.(4) Appellee--ERS and any other Party properly joined in a contested case matter against whom the appeal is taken.(5) Authorized Representative--An attorney or other person legally authorized to represent a Party pursuant to §67.23 of this chapter (relating to representative appearances).(6) Board--The Board of Trustees of the Employees Retirement System of Texas.(7) Examiner (hearings examiner)--Any person appointed by the Executive Director to conduct hearings. This term also includes an Administrative Law Judge (\"ALJ\") appointed by SOAH to preside at the hearing of a contested case when the Executive Director requests that SOAH conduct hearings.(8) Executive Director--The Executive Director of the Employees Retirement System of Texas or his/her designee.(9) Good Cause--Good Cause means that a person's failure to act was not because of a lack of due diligence the exercise of which would have caused a reasonable person to take prompt and timely action. A failure to act based on ignorance of the law or facts reasonably discoverable through the exercise of due diligence does not constitute good cause.(10) Insurer--Any insurance carrier who has contracted with ERS to provide coverages authorized by the Texas Employees Group Benefits Act, Chapter 1551, Insurance Code. The Insurer shall be considered a Party to any Proceeding which involves a question of eligibility or coverage under its contract with ERS.(11) Intervenor--A Party other than an Appellant who is permitted to become a Party to a Proceeding in accordance with §67.21 of this chapter (relating to Intervention).(12) Member--A Person who is a member, retiree, or beneficiary of any retirement system or program administered by the Board.(13) Order--The whole or a part of the final disposition, whether affirmative, negative, injunctive, or declaratory in form, of the Executive Director, Board or its designee in a matter other than rulemaking.(14) Participant--An eligible individual who participates in the group benefits program pursuant to Chapter 1551 of the Texas Insurance Code.(15) Party--Each Appellant, Appellee, Administering Firm, Insurer, Intervenor or Agency with standing who is named or admitted as a party of record in a Proceeding.(16) Person--Any natural person, partnership, company, corporation, association, governmental subdivision, or public or private organization of any character other than an Agency.(17) Pleading--A written concise statement by a Party of the issues on appeal arising from the Party's respective claims or defenses in connection with a Proceeding. Pleadings may take the form of applications, petitions, notices of appeals and requests for hearing, complaints, briefs, exceptions, replies, motions, notices, or answers.(18) Proceeding--Any hearing, investigation, inquiry, determination or other fact-finding or decision-making procedure, including, but not limited to a contested case under §2001.003(1) of the APA.(19) Trustee--One of the duly elected or appointed members of the Board.",
            "sourceNote": "Source Note: The provisions of this §67.3 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359; amended to be effective December 24, 2015, 40 TexReg 9302."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175479&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175479",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.5",
                "label": "Appeals"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175480&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175480",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) When the Executive Director denies a claim, or takes other action for which an appeal is allowed by law, the Participant or Member will be informed that he/she has 30 days from the date the determination letter is served on the Participant or Member to file a written notice of appeal as specified in §67.7 of this chapter (relating to filing and service of documents and Pleadings). The determination letter will inform the Participant or Member of this right, as appropriate. In order to facilitate a thorough and just adjudication of the appeal, the Participant or Member shall, upon request, sign and file with ERS a release authorizing the use and admission into evidence in the appeal of relevant information, which may also include confidential information and sensitive data. Mandatory venue for an administrative hearing of the appeal will be in Austin, Texas.(b) The Executive Director shall decide whether or not a notice of appeal is timely filed under this chapter. ERS will only accept late appeals based on a showing of good cause by the Participant or Member. Failure of the Appellant to execute and file with ERS a proper release under subsection (a) of this section within 30 days after filing a Notice of Appeal may be grounds for ERS to dismiss the appeal as untimely. The Executive Director's decision in these matters constitutes final Agency action on the issue and no administrative appeal from the Executive Director's decision is available.(c) Standing. Unless otherwise provided by law, standing to pursue an administrative appeal under this chapter is limited to Members, Participants, Insurers, Appellants, Appellees, Administering Firms, beneficiaries of a deceased Member or Participant, and Persons or Agencies permitted to intervene pursuant to §67.21 of this chapter (relating to intervention). Healthcare providers under the Texas Employees Group Benefits Act, ERS vendors (other than Insurers and Administering Firms) and other third parties not specifically designated herein as having standing do not have standing to appeal ERS decisions.(d) In accordance with §815.511(d), Government Code and §1551.360, Insurance Code, the Board delegates its authority to determine all Proceedings within its jurisdiction to the Executive Director. In his/her discretion, the Executive Director may request the Board to decide a particular Proceeding when appropriate.(e) The Executive Director may delegate, either generally, or in a particular Proceeding, the duties of the Executive Director under this chapter to another Person who is employed by ERS.",
            "sourceNote": "Source Note: The provisions of this §67.5 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359; amended to be effective December 24, 2015, 40 TexReg 9302."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175480&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175480",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.7",
                "label": "Filing and Service of Documents and Pleadings"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175481&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175481",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as otherwise provided in these rules, documents and Pleadings relating to any Proceeding pending or to be instituted before ERS, the Board or its designee shall be filed with and/or served upon the Executive Director.(b) Unless otherwise provided by applicable law or rule, in any Proceeding referred by the Executive Director to an Examiner to conduct a hearing, all Parties shall file documents and Pleadings initially with the Examiner. After the Examiner issues a final proposal for decision, including any responses to exceptions to the proposal for decision and replies to exceptions filed by the Parties, the Examiner no longer has jurisdiction over the Proceedings, and the Parties are then required to file all documents and Pleadings with the Executive Director. Thereafter, all Pleadings in the Proceeding shall be addressed to the Executive Director.(c) Copies of any documents or Pleadings filed with or served upon the Executive Director or Examiner shall be served upon all other Parties to the Proceeding or their Authorized Representative contemporaneously with such filing or service.(d) Unless otherwise stated, all documents and Pleadings required to be served on any Party may be served by any of the following methods:(1) hand-delivery;(2) certified or registered mail to the Party's or the Party's Authorized Representative's last known address;(3) facsimile to the Party's or the Party's Authorized Representative's current facsimile number;(4) electronic mail (\"email\") to the Party's or the Party's Authorized Representative's current email address; or(5) any other manner as the Executive Director or Examiner, in their discretion, may reasonably require.(e) Service by mail shall be complete when the Pleading or document is properly addressed, postage paid and deposited in a postal box. Service by facsimile or email is complete when the Pleading or document is transmitted to the recipient's current facsimile number or email address. Service by facsimile or email after 5:00 p.m. (recipient's time) shall be considered completed service on the following date. Notwithstanding the foregoing, whenever any portion of a Pleading or document may be considered or ruled upon at a hearing, then the Party or Authorized Representative serving same shall, not less than three (3) business days prior to any hearing, take all reasonable steps to notify, by telephone, email or facsimile, all other Parties to the Proceeding as to the nature of the Pleading or document filed and the relief requested therein.(f) The Party or Authorized Representative filing or serving any documents or Pleadings shall, by his signature, certify to the Examiner or the Executive Director the Party's compliance with these rules regarding service. The failure of any Party or Authorized Representative to comply with the rules regarding service of documents and Pleadings may be grounds for the entry of an Order striking the Pleading or document from the record or the imposition of other appropriate sanctions as specified in §67.108 of this chapter (relating to discovery sanctions).(g) Documents and Pleadings are considered to be filed with the Executive Director or Examiner when they are received by the Executive Director or Examiner or when they are served properly, whichever is earlier.",
            "sourceNote": "Source Note: The provisions of this §67.7 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359; amended to be effective December 24, 2015, 40 TexReg 9302."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175481&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175481",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.9",
                "label": "Computation of Time"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126302&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "126302",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Counting days. In computing any period of time prescribed or allowed by this chapter, by Order of the Executive Director, Examiner, ERS, the Board or its designee, or by any applicable rules or statutes, the period shall begin on the day after the act, event, mailing, transmission or default in question and it shall conclude on the last day of that designated period, unless it is a Saturday, Sunday, or legal holiday (including federal and state holidays), in which event the period runs until the end of the next day which is neither a Saturday, Sunday, nor a legal holiday.(b) Extensions. Unless otherwise provided by statute, the time for filing any of the documents or Pleadings mentioned in §67.7 of this chapter (relating to filing and service of documents and Pleadings) may be extended by agreement of the Parties or, upon the filing of a motion, prior to the expiration of the applicable period of time, showing that the extension will not prejudice the other Parties. A motion for extension may be filed after the deadline for filing the pleading if there is good cause for such extension of time and that the need for the extension is not caused by the neglect, indifference, or lack of diligence of the Party making the motion.(1) In the case of filings which initiate a Proceeding, which are made before an Examiner has been assigned the matter, or are made after all Proceedings pending before the Examiner have concluded, the Executive Director will determine whether or not good cause exists and whether or not an extension should be granted. The Executive Director's decision constitutes final Agency action on the issue and no administrative appeal from the Executive Director's decision is available.(2) In the case of filings made in a Proceeding after an Examiner has been assigned the matter, and prior to the time the Proceedings before the Examiner have concluded and the Examiner no longer has jurisdiction, the Examiner will determine whether or not good cause exists and whether or not an extension should be granted.",
            "sourceNote": "Source Note: The provisions of this §67.9 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359; amended to be effective December 24, 2015, 40 TexReg 9302."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126302&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126302",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.11",
                "label": "Agreements To Be in Writing"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175482&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175482",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "No stipulation or agreement between the Parties or their Authorized Representatives, with regard to any matter involved in any Proceeding governed by this chapter, shall be enforceable unless it is reduced to writing and signed by the Parties or their Authorized Representatives or unless it is dictated into the record by them during the course of a hearing or oral deposition, or incorporated into an Order bearing their written approval as to form and substance. This section does not limit a Party's ability to waive, modify, or stipulate any right or privilege afforded by this chapter, unless precluded by law.",
            "sourceNote": "Source Note: The provisions of this §67.11 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective September 14, 2006, 31 TexReg 7359."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175482&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175482",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.13",
                "label": "Conduct and Decorum"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175483&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175483",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Comportment. Every Party, witness, and Authorized Representative shall comport himself in all Proceedings, depositions, conferences, meetings and hearings with dignity, courtesy, and respect for the Board, its designee, the Executive Director, Examiners, and all other Parties, their Authorized Representatives, and proceeding participants. Authorized Representatives shall observe and practice the ethical behavior prescribed for attorneys by the \"Texas Lawyers Creed\" and the \"Texas Disciplinary Rules of Professional Conduct\"; provided, however, that any Authorized Representative who is not licensed to practice law in the state of Texas shall not, by these rules, engage in the unauthorized practice of law as set forth in Government Code Chapter 81, Subchapter G.(b) Compliance. Upon violation of subsection (a) of this section, any Party, witness, or Authorized Representative may be excluded by the Board, its designee, or the Examiner from any hearing for such period and upon such conditions as are just, or may be subject to such other just, reasonable, and lawful disciplinary action as the Board, its designee, or the Examiner may prescribe. Any disciplinary action taken by the Examiner shall be subject to review by the Board or its designee. The Examiner is not authorized by these rules to assess monetary sanctions, attorney's fees, or costs upon any Party or witness, and any provisions of the Texas Rules of Civil Procedure relating to the award of monetary sanctions, attorney's fees, or costs do not provide such authority to the Examiner.",
            "sourceNote": "Source Note: The provisions of this §67.13 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359; amended to be effective December 24, 2015, 40 TexReg 9302."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175483&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175483",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.15",
                "label": "Classification of Parties"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126306&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "126306",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Parties to Proceedings governed by this chapter are classified as ERS, Appellants, Appellees, Agencies, Insurers, Administering Firms or Intervenors.",
            "sourceNote": "Source Note: The provisions of this §67.15 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359; amended to be effective December 24, 2015, 40 TexReg 9302."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126306&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126306",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.19",
                "label": "Alignment of Parties"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175484&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175484",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Parties may be aligned according to the nature of the Proceeding and their relationship to it and each other.",
            "sourceNote": "Source Note: The provisions of this §67.19 adopted to be effective on March 19, 1986, 11 TexReg 1149; amended to be effective September 14, 2006, 31 TexReg 7359."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175484&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175484",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.21",
                "label": "Intervention"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126308&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "126308",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Any Person, Administering Firm, Insurer or Agency with standing and who is interested in intervening in any Proceeding before the Board or its designee may request to appear formally in the Proceeding, by filing a motion to intervene with the Executive Director at least thirty (30) days in advance of the hearing or submission date.(b) Any Person, Administering Firm, Insurer or Agency with standing and who is interested in intervening in any Proceeding pending before an Examiner may file a motion to intervene with the Examiner at least thirty (30) days in advance of the hearing date.(c) All motions to intervene shall include any relevant, material, and proper testimony and evidence bearing upon the issues involved in the particular Proceeding, reasons why such intervention is proper, and in what ways the movant has an economic, proprietary, or other substantial justiciable interest in the Proceeding. The motion must be supported by a showing of standing and good cause to intervene.(d) The Executive Director or Examiner, subject to timely review by the Board or its designee, may determine whether or not intervention should be permitted.",
            "sourceNote": "Source Note: The provisions of this §67.21 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359; amended to be effective December 24, 2015, 40 TexReg 9302."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126308&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126308",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.23",
                "label": "Representative Appearances"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126309&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "126309",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) To the extent permitted by law, any Party may appear and represent himself or, upon written notice duly filed with the Executive Director or Examiner may, at the Party's own expense, appear through any Person authorized by that Party to make appearance for him except as provided in §67.43(b)(1) of this chapter (relating to dismissal without hearing).(b) Each Party to a Proceeding may be represented by an attorney-at-law at the Party's own expense.(c) All Parties and their Authorized Representatives must conduct themselves in accordance with §67.13 of this chapter (relating to conduct and decorum), and are prohibited from knowingly making, facilitating, or participating in the making or presentation of any false statement, representation, or claim about any material fact in connection with the Proceeding.",
            "sourceNote": "Source Note: The provisions of this §67.23 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126309&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126309",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.25",
                "label": "Classification of Pleadings"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175485&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175485",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Pleadings filed with the Executive Director, or filed with the Examiner as provided in §67.7(b) of this chapter (relating to filing and service of documents and Pleadings), include notices, applications, notices of appeals, claims, answers, exceptions, replies, motions, or briefs. Regardless of any error in the designation of a Pleading, it shall be accorded its true status in the Proceeding in which it is filed.",
            "sourceNote": "Source Note: The provisions of this §67.25 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175485&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175485",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.27",
                "label": "Form and Content of Pleadings"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126311&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "126311",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Typewritten or printed. Pleadings shall be typewritten or printed on paper not to exceed 8 1/2 inches by 11 inches with an inside margin at least one inch wide and attached exhibits shall be folded to the same size. Unless printed, the impression shall be on one side of the paper only and shall be double spaced, except that footnotes and quotations in excess of a few lines may be single spaced. Reproductions may be by any process, provided all copies are true and correct, clear and permanently legible.(b) Content. Pleadings shall state their object, shall contain a concise statement of the supporting facts, and shall be signed by the Party or his Authorized Representative.(c) Signature and address. The original of every Pleading shall be signed in ink by the Party filing it or by his Authorized Representative. Pleadings shall contain the address, phone number, facsimile number and email address of the Party filing the document or the name, business address, and telephone and facsimile numbers of the Authorized Representative.(d) Form for Pleadings. All Pleadings shall contain the following:(1) the name of the Party supporting or opposing the action of the Executive Director, Examiner, the Board or its designee;(2) a concise statement of the facts relied upon by the pleader;(3) a citation of the authority supporting the relief requested;(4) a prayer stating the type of relief, action, or Order desired by the pleader;(5) any other matter required by statute or applicable rule; and(6) a certificate of service or other notation showing that a copy of the Pleading has been served on all other Parties to the Proceeding or their Authorized Representatives in accordance with §67.7 of this chapter (relating to filing and service of documents and Pleadings).(e) Waiver. The Executive Director, Examiner, the Board or its designee, if applicable, may waive any requirement of this section if it is determined that application of the requirement to a Party would create an unnecessary hardship and that not requiring the Party to comply with the section will not adversely affect the rights of any other Party.",
            "sourceNote": "Source Note: The provisions of this §67.27 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359; amended to be effective December 24, 2015, 40 TexReg 9302."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126311&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126311",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.31",
                "label": "Written Motions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126312&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "126312",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Any motion relating to a pending Proceeding, unless made during a hearing, shall be written and shall set forth the relief sought and the specific reasons and grounds for relief. If based upon matters which do not appear of record, it shall be supported by certified copies of documents relied upon, documents properly authenticated, or, in the case of testimony, sworn affidavits. With the exception of motions for continuance (see §67.47 of this chapter, relating to postponements or continuances, any motion filed in a Proceeding must be filed and served on the Examiner (or the Executive Director if the Examiner no longer has jurisdiction), and all Parties or their Authorized Representatives not less than three (3) business days before the date of the hearing unless a showing of good cause for not complying with this provision is made.",
            "sourceNote": "Source Note: The provisions of this §67.31 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126312&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126312",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.33",
                "label": "Amended Pleadings"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126313&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "126313",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Any Pleading may be amended without leave until thirty (30) days prior to the hearing. Any Pleading may be amended at any time until three (3) business days prior to the hearing, provided that it does not act as a surprise to any other Party. Any amendment to a Pleading which operates as a surprise to any other Party may be granted only upon written motion showing good cause and that no harm will result.",
            "sourceNote": "Source Note: The provisions of this §67.33 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126313&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126313",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.35",
                "label": "Incorporation of Board or ERS Records by Reference"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175486&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175486",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Any Pleading may adopt and incorporate, by specific reference, any part of any document or entry in the official files and records of the Board or of ERS. Such adoption by reference does not relieve Parties of their burden, under these rules, or other applicable law, to produce admissible evidence to support their claims.",
            "sourceNote": "Source Note: The provisions of this §67.35 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175486&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175486",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.37",
                "label": "Docketing and Numbering of Causes"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175487&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175487",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "When an appeal, application, or other Pleading which is intended to institute a hearing before the Board or its designee is received, it complies with these rules as to form and content, and is determined to be a matter subject to appeal under statutes administered by ERS, then it shall be referred to an Examiner to conduct the hearing, shall be docketed as a pending Proceeding, and notice shall be served.",
            "sourceNote": "Source Note: The provisions of this §67.37 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359; amended to be effective December 24, 2015, 40 TexReg 9302."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175487&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175487",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.39",
                "label": "Notice and Service"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126316&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "126316",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In a Proceeding, the Executive Director shall give Initial Notice of hearing and the issues to be determined therein (\"Initial Notice\"). The Initial Notice shall be given not less than twenty (20) days prior to hearing. In stating the issues and matters asserted in the Initial Notice, the Executive Director shall state verbatim the issues and matters set forth in the letter from the Executive Director to the Examiner referring the case for hearing.(b) After service of the Initial Notice, any Party or his Authorized Representative wishing to raise issues or matters not set forth in the Initial Notice must do so by filing a motion setting forth such adopted issues or matters not less than thirty (30) days before the date set for hearing. The motion must be based on facts and legal authorities supporting the inclusion of additional issues. Responses to the motion may be filed and served within fourteen (14) days from the date the motion is served. If granted, the Examiner shall give notice, not less than seven (7) days before the date of hearing, of the additional issues and matters to be decided in the Proceeding.",
            "sourceNote": "Source Note: The provisions of this §67.39 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359; amended to be effective December 24, 2015, 40 TexReg 9302."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126316&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126316",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.41",
                "label": "Contents"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175488&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175488",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All Initial Notices shall include the following:(1) a statement of time, place, and nature of the hearing;(2) a statement of the legal authority and jurisdiction under which the hearing is to be held;(3) a reference to the particular sections of the statutes and rules involved;(4) a short, plain statement of the issues; and(5) any other statement required by law.(b) If the Executive Director is unable to state the issues in reasonable detail at the time the Initial Notice is served, the Initial Notice may be limited to a general statement of the issues involved. The Executive Director may file, thereafter, an amended or supplemental notice of hearing providing a more detailed statement of facts and legal issues to be determined in the Proceeding. If the Agency or other Party is unable to state the matters in detail at the time the notice is served, the initial notice may be limited to a statement of the issues involved. Thereafter, upon written application filed not less than ten (10) days before the date set for hearing, any Party may request that another Party file a more definite and detailed statement of facts and issues to be determined in the Proceeding. Such statement must be filed not less than five (5) days prior to the date set for the hearing.(c) All other notices in a Proceeding shall set forth only the additional issues and matters to be decided.",
            "sourceNote": "Source Note: The provisions of this §67.41 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175488&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175488",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.43",
                "label": "Dismissal without Hearing"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=192178&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "192178",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Motions for dismissal without a hearing may be filed and ruled upon by the Executive Director, when the matter is pending before ERS, or by the Examiner, when the matter is pending before the Examiner, for any of the following reasons:(1) failure to prosecute a claim;(2) unnecessary duplication of Proceedings or res judicata;(3) withdrawal or voluntary dismissal of appeal;(4) moot questions or obsolete petitions;(5) following a Member's request for a refund of his retirement account, or other matters establishing a lack of jurisdiction;(6) upon agreement of the Parties pursuant to §67.11 of this chapter (relating to agreements to be in writing);(7) failure to execute a release pursuant to §67.5(a) of this chapter (relating to appeals);(8) failure to appear at any hearing for which notice has been served; or(9) assertion of a baseless appeal as provided by Rule 91a of the Texas Rules of Civil Procedure with respect to the procedures for dismissal of a baseless cause of action.(b) The Examiner shall, and the Board, its designee, or the Executive Director may, dismiss the appeal of any Person who has filed written notice of the appeal but who defaults by:(1) failing to personally appear at any hearing if the Appellant is not represented by an Authorized Representative unless such appearance is waived by agreement of all the Parties pursuant to §67.11 of this chapter;(2) failing to personally appear at any hearing if the Appellant is represented by an Authorized Representative unless the Appellant gives written notice at least ten (10) days prior to the date of the hearing that the Appellant will not personally appear or unless such appearance is waived by agreement of all Parties pursuant to §67.11 of this chapter; or(3) failing to request a hearing or to take some other action specified by the Examiner or Executive Director within thirty (30) days after notice is mailed of intention to dismiss the claim.(c) The Board, its designee, or the Executive Director may dismiss an appeal for any of the reasons described in subsection (a) of this section. A dismissal of an appeal by the Board, its designee, or the Executive Director constitutes final Agency action on the appeal and no administrative appeal from the decision is available.(d) All dismissals by an Examiner under this section are mandatory and shall be unconditional. Upon a timely motion to reinstate and a showing of good cause, the Executive Director may, in his/her sole discretion, thereafter permit reinstatement of an appeal dismissed for failure to prosecute a claim. A motion to reinstate may not be filed later than thirty (30) days from the date the Order of dismissal is served. An Order denying a motion to reinstate constitutes final Agency action and no administrative appeal from the decision is available.",
            "sourceNote": "Source Note: The provisions of this §67.43 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 16, 1999, 24 TexReg 7275; amended to be effective September 14, 2006, 31 TexReg 7359; amended to be effective December 26, 2013, 38 TexReg 9373; amended to be effective December 24, 2015, 40 TexReg 9302."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=192178&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "192178",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.44",
                "label": "Mediation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126318&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "126318",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Upon receipt of a timely appeal for contested cases involving eligible claims for Nonoccupational Disability Retirement benefits, Occupational Disability Retirement benefits, Long Term Disability Income Insurance benefits, Short Term Disability Income Insurance benefits, State of Texas Dental Choice PPO benefits, and when ERS determines that a participant or a participant's dependent should be removed from the Texas Employees Group Benefits Program in accordance with applicable laws, regulations, and/or plan requirements, ERS may offer mediation rights when there are material facts at issue and there are remedies available to the Appellant under applicable law. ERS will notify the Appellant or applicable Authorized Representatives if mediation is available. After receiving notification of available mediation rights from ERS, the Appellant, applicable Authorized Representatives or ERS may request mediation through the State Office of Administrative Hearings before the set hearing date.",
            "sourceNote": "Source Note: The provisions of this §67.44 adopted to be effective September 18, 2018, 43 TexReg 5986."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126318&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126318",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.45",
                "label": "Prehearing Conference"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126319&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "126319",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In any Proceeding, upon prior written notice by the Executive Director, the Board or its designee or by the Examiner on his own motion, or on the motion of any Party, the Parties or their Authorized Representatives, any Parties and their Authorized Representatives may be directed to appear before the Examiner at a specified time and place for a conference prior to a hearing for the purpose of formulating issues and considering any of the following:(1) the simplification of issues;(2) the possibility of making admissions of certain averments of fact or stipulations concerning the use by any of the Parties of matters of public record, including, but not limited to such matters as Agency reports and other documents, in order to avoid the unnecessary introduction of proof;(3) the procedure at a hearing;(4) the limitation, where possible, of the number of witnesses;(5) any other matters which may aid in the simplification or resolution of the Proceedings, and the disposition of the matters in controversy.(b) A motion or notice under this section shall describe the subject matter of the conference with reasonable specificity.(c) Action taken at the conference shall be recorded by the Examiner, unless the Parties enter into a written agreement as to such matters as permitted in §67.11 of this chapter (relating to agreements to be in writing.(d) prehearing conference may be held by means of a telephone conference call.",
            "sourceNote": "Source Note: The provisions of this §67.45 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126319&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126319",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.47",
                "label": "Postponements or Continuances"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126320&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "126320",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The Examiner shall postpone or continue a hearing upon the agreement of the Parties pursuant to §67.11 of this chapter (relating to agreements to be in writing), and the Examiner may postpone or continue a hearing for good cause upon the motion of any Party, Authorized Representative or Examiner.(b) A motion for postponement or continuance that is not subject to the agreement of the Parties shall be in writing, shall be served on all Parties and filed with the Examiner no later than five (5) days prior to the date of the hearing, and shall set forth the specific grounds and good cause upon which the continuance is sought. A contested motion for continuance shall also comply with the requirements of Rules 251 - 253 of the Texas Rules of Civil Procedure. Any motion for postponement or continuance filed less than five (5) days prior to the date of hearing shall not be granted unless good cause for the late filing is demonstrated in the motion and supported by affidavit(s) or other evidence. In such instance, the Examiner may consider a motion filed after that time or presented orally at the hearing.",
            "sourceNote": "Source Note: The provisions of this §67.47 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 13, 2001, 26 TexReg 6953; amended to be effective September 14, 2006, 31 TexReg 7359."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126320&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126320",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.49",
                "label": "Motion for Consolidation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126321&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "126321",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A motion for consolidation of two or more Proceedings shall be in writing, signed by the movant or his Authorized Representative, and filed with the Executive Director or Examiner at least ten (10) days prior to the date set for hearing. No two or more Proceedings shall be consolidated or heard jointly without the consent of all Parties to all such Proceedings, unless the Board, its designee, the Executive Director or Examiner find that the two or more Proceedings involve some or all of the same Parties, common questions of law or fact, or both, and shall further find that separate hearings would result in unwarranted expense, delay, or substantial injustice. Separate hearings on distinct issues may also be allowed where such hearings are in the interest of justice, or upon the agreement of all Parties to the Proceeding pursuant to §67.11 of this chapter (relating to agreements to be in writing).",
            "sourceNote": "Source Note: The provisions of this §67.49 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126321&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126321",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.51",
                "label": "Nature of Hearings"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126322&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "126322",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "All hearings conducted in any Proceeding shall be open to the public unless the Board, its designee, the Executive Director or Examiner determines that all or a portion of the hearing will relate to matters deemed confidential by law, in which event the hearing may be closed to the public.",
            "sourceNote": "Source Note: The provisions of this §67.51 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126322&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126322",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.53",
                "label": "Presiding Officer"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175489&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175489",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Evidentiary hearings will be conducted by Examiners appointed by the Executive Director pursuant to Government Code, §815.511(b). The Examiner shall have authority to administer oaths, to examine witnesses pursuant to this chapter, and to rule upon, subject to review by the Board or its designee, the admissibility of evidence and amendments to Pleadings. The Examiner shall have the authority to recess any hearing from day to day. If the Examiner is unable to continue presiding over a Proceeding at any time before the Examiner loses jurisdiction, another Examiner will be appointed who shall perform any function remaining to be performed without the necessity of repeating any previous Proceedings.(b) The Examiner's conduct in Proceedings governed by this chapter shall comport with and be subject to the provisions of the Texas Code of Judicial Conduct to the extent consistent with the powers granted to the Examiner by law. To this end, Examiners shall conduct all Proceedings in a fair and impartial manner, and they shall refrain from providing legal advice or guidance to any Party or Authorized Representative other than on minor procedural matters.",
            "sourceNote": "Source Note: The provisions of this §67.53 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175489&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175489",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.55",
                "label": "Order of Procedure"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126324&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "126324",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The Examiner shall open the hearing and make a concise statement of its scope and purposes. Once the hearing has begun, the Parties or their Authorized Representatives may be off the record only when the Examiner permits. A Party may, without requesting leave from the Examiner, record any non-privileged off the record discussions during the hearing. If a discussion off the record is pertinent, the Examiner may summarize such discussion for the record. Appearances are to be entered on the record by all Parties, their Authorized Representatives, and any Persons who may testify during the Proceedings. All Persons present who may testify will then be placed under oath. Thereafter, Parties may make motions or opening statements.(b) Burden of Proof. The Party seeking relief is the Party with the burden of proof on all issues throughout the Proceedings, including issues in the nature of an affirmative defense.(c) Following opening statements, if any, by both sides, the Party with the burden of proof may be directed to proceed with his direct case. Questions from the Examiner shall be limited to matters of clarification only, and such questions shall not be used to assist Parties with the burden of proof in meeting their burden or as a substitute for cross-examination.(d) Invocation of \"The Rule.\" Upon the motion of any Party to the Proceeding, nonparty witnesses shall be excluded during the testimony phase of the Proceeding as provided in Tex. R. Civ. P. 267(a) - (d). A witness or Party's failure to comply with the Examiner's Order granting such motion may be subject to an appropriate sanction as provided in §67.13 of this chapter (relating to conduct and decorum).(e) Where the Proceeding is initiated at the Executive Director's or the Board's or its designee's own call, or where several Proceedings are heard on a consolidated record, the Examiner shall designate who shall open and close and at what stage intervenors shall be permitted to offer evidence.(f) Opportunity for cross-examination and presentation of direct and rebuttal evidence shall be afforded all Parties. After all Parties have completed the presentation of their evidence, and been afforded the opportunity to ask clarifying questions and to cross-examine adverse witnesses, closing arguments may be allowed. The Party with the burden of proof shall be entitled to open and close.(g) On a proper motion and showing of good cause that evidence was not reasonably known or knowable to the movant, or was not provided in response to a proper discovery request, the Examiner may also call upon any Party to provide further relevant and material evidence upon any issue in the Proceeding before the issuance of a proposal for decision; however, no such evidence shall be allowed into the record without an opportunity for discovery, inspection, cross-examination, and rebuttal by the other Parties.",
            "sourceNote": "Source Note: The provisions of this §67.55 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359; amended to be effective December 24, 2015, 40 TexReg 9302."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126324&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126324",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.57",
                "label": "Reporters and Transcripts"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175490&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175490",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An official record shall be made in all Proceedings by electronic sound or video recording. In Proceedings where arrangements are made for stenographic recording, an official reporter shall make and, when requested by any Party or Agency in writing, transcribe a stenographic record of the hearing. The reporter shall provide as many copies of the transcript as may be requested. Unless, otherwise provided by an agreement pursuant to §67.11 of this chapter (relating to agreements to be in writing), the Person or Agency requesting such transcription shall be responsible for all costs associated with the transcription.(b) To the extent that any motion by any Party or any Order arising from any motion results in additional costs associated with official reporting of the hearing, the Person or Agency making the motion shall be responsible for the payment of those additional costs. Such costs include, but are not limited to transcription and appearance fees incurred as the result of continuance, cancellation, or postponement of the hearing. Payment of any outstanding additional costs associated with official reporting of the hearing is a prerequisite to the making of a stenographic record of the hearing.(c) Errors claimed to be in a transcription of a contested hearing shall be noted in writing, and suggested corrections may be offered within ten (10) days after the transcript is filed with the Examiner, unless the Examiner shall permit suggested corrections to be offered thereafter. Suggested corrections shall be stated in a separate addendum to the transcript and shall be served in writing upon each Party and the Examiner. If not objected to within twelve (12) days after being offered, the Examiner will direct that such suggested corrections be made and the manner of making them. In the event that Parties disagree on suggested corrections, the Examiner, with the aid of evidence and argument from the Parties, shall then determine the manner in which the record shall be changed, if at all.",
            "sourceNote": "Source Note: The provisions of this §67.57 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective March 18, 2002, 27 TexReg 2058; amended to be effective September 14, 2006, 31 TexReg 7359."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175490&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175490",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.61",
                "label": "Offer of Proof"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126326&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "126326",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Formal exceptions to rulings of the Examiner during a hearing shall be unnecessary, but if made, they should be in accord with §67.69 of this chapter (relating to rules of evidence). It shall be sufficient that the Party, at the time any ruling is made or sought, makes known to the Examiner the action which he desires.(b) When testimony is excluded by ruling of the Examiner, the Party offering the evidence shall be permitted to make an offer of proof by dictating into the hearing tape recording or other media or submitting in writing the substance of the adopted testimony, prior to the conclusion of the hearing, and that offer of proof shall be sufficient to preserve the point for review by the Board or its designee. Examiners may ask such clarifying questions of the witness as allowed in §67.55(b) of this chapter (relating to order of procedure) as necessary to establish that the witness would testify as represented in the offer of proof. An alleged error in sustaining an objection to questions asked on cross-examination may be preserved without making an offer of proof.",
            "sourceNote": "Source Note: The provisions of this §67.61 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359; amended to be effective December 24, 2015, 40 TexReg 9302."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126326&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126326",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.63",
                "label": "Briefs"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175491&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175491",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Briefs shall conform, where practicable, to the requirements for form of Pleadings set out in this chapter. The issues involved shall be concisely stated, the evidence in support of each issue shall be summarized, and the argument and authorities shall be organized and directed to each issue in a concise and logical manner.(b) Briefs may be requested by the Examiner prior to filing of the Examiner's proposal for decision set out in §67.81 of this chapter (relating to Examiner's report and proposal for decision).",
            "sourceNote": "Source Note: The provisions of this §67.63 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175491&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175491",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.65",
                "label": "The Record"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126328&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "126328",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Contents of record. The record in a Proceeding shall consist of all matters identified in APA §2001.060, including the following:(1) all Pleadings, intermediate rulings, and documents reflecting Board policy;(2) evidence admitted;(3) a statement of matters officially noticed;(4) questions and offers of proof, objections, and rulings on objections;(5) adopted findings, exceptions, replies to exceptions, and supporting briefs;(6) any proposal for decision, opinion, or report by the Examiner presiding at the hearing;(7) all staff memoranda or data submitted to the Examiner in connection with his consideration of the case.(b) Closing the record.(1) Upon the conclusion of the hearing, the Examiner shall close the record subject to receipt of any information requested by the Examiner pursuant to §67.55(e) of this chapter (relating to order of procedure) and receipt of any late exhibits as described in §67.77 of this chapter (relating to introduction of exhibits).(2) Evidence of any kind other than that described in subsection (a) of this section, not made a part of the record prior to closing, shall be accepted by the Examiner or the Executive Director and considered by the Examiner or the Executive Director for inclusion in the record only upon a showing of relevance, materiality and good cause as to why the evidence could not reasonably have been presented at the hearing. Such additional evidence shall not be admitted without providing the Parties not offering the evidence the opportunity to conduct discovery, cross-examination and to offer rebuttal evidence. The proposal for decision shall not be presented to the Board or its designee until the Examiner or the Executive Director has made a ruling on such evidence.(c) Findings of fact. Findings of fact shall be based exclusively on the evidence and on matters officially noted.",
            "sourceNote": "Source Note: The provisions of this §67.65 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective May 30, 1991, 16 TexReg 2737; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359; amended to be effective December 24, 2015, 40 TexReg 9302."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126328&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126328",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.69",
                "label": "Rules of Evidence"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175492&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175492",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The rules of evidence as applied in nonjury civil cases in the district courts of this state shall be followed. Irrelevant, immaterial, or unduly repetitious evidence shall be excluded. When necessary to ascertain facts not reasonably susceptible of proof under those rules, evidence not admissible under them may be admitted (except where precluded by statute or this chapter) if it is of a type commonly relied upon by reasonably prudent persons in the conduct of their affairs.(b) Opinion evidence of a medical condition or cause must be based on reasonable medical probability and supported by objective medical evidence. Subjective complaints of pain or other symptoms that are uncorroborated by objective medical evidence may not support a finding of fact relating to an allegation concerning a medical condition, disability, cause of incapacity for the further performance of duty or other medical issues.(c) The rules of privilege recognized by law shall be effective in Proceedings. Objections to evidentiary offers may be made and shall be noted in the administrative record. No evidence will be admissible in a Proceeding if it is beyond the scope of the issues in the Proceeding.",
            "sourceNote": "Source Note: The provisions of this §67.69 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175492&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175492",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.71",
                "label": "Official Notice"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175493&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175493",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Official notice may be taken of judicially cognizable facts, and such notice may be taken of generally recognized facts within the area of the specialized knowledge of ERS. Parties shall be notified of the material noticed, including any ERS decisions, staff memoranda or data, and they shall be afforded an opportunity to contest the material so noticed. The special skills or knowledge, or both, of ERS and its staff may be utilized in evaluating the evidence.",
            "sourceNote": "Source Note: The provisions of this §67.71 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective September 14, 2006, 31 TexReg 7359; amended to be effective December 24, 2015, 40 TexReg 9302."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175493&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175493",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.73",
                "label": "Documentary Evidence"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175494&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175494",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Documentary evidence may be received in the form of copies or excerpts, upon a showing that the original is not readily available. On request, however, Parties shall be given an opportunity to compare the copy with the original.(b) When a large number of similar documents are offered, the Examiner may limit those admitted to a number which are typical and representative, and may, in his discretion, require a summarization of the relevant data from the documents and the presentation of the summary in the form of an exhibit; however, before making this requirement, the Examiner shall see that all Parties of record or their Authorized Representatives are given a reasonable opportunity to examine the documents from which the summaries are made.(c) Documents containing confidential medical or psychiatric records or health information or sensitive data as defined by Texas Rules of Civil Procedure 21c(a) may, upon proper and timely motion, be placed under seal and access limited to the Parties, the Examiner, the Executive Director, his/her staff and the Board or its designee in accordance with applicable law. In Proceedings involving allegations of misrepresentation, improper failure to disclose or other misconduct by the Appellant, the interests of the plans and programs administered by the Board shall be considered in ruling on a motion to seal records, and the Examiner's Order on the motion shall be subject to review by the Board or its designee. Nothing in this section shall be construed as limiting ERS' discretion to share evidence of criminal misconduct with any appropriate law enforcement authority or to otherwise disclose or use the confidential information as authorized by law. The requirements of Texas Rule of Civil Procedure 76a shall not be applicable in ERS Proceedings.",
            "sourceNote": "Source Note: The provisions of this §67.73 adopted to be March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359; amended to be effective December 24, 2015, 40 TexReg 9302."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175494&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175494",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.74",
                "label": "Telephonic Proceedings"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126332&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "126332",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Upon timely motion containing the pertinent telephone number(s), a Party may request to appear before the Examiner by telephone or videoconferencing or to present the testimony of a witness by such methods. The Party requesting to appear or present testimony by telephone or videoconferencing has the burden to show that good cause exists for the granting of the request. Unless all Parties agree to the request, the requesting Party must demonstrate:(1) how witnesses will be separated;(2) that coaching of witnesses shall not occur and how coaching of witnesses will be prevented;(3) why observing a witness' demeanor is not essential to the case; and(4) how the witness' identity will be verified at the time of hearing.(b) If the request is granted, a Party may appear or a witness may testify by telephone or videoconferencing before the Examiner if each participant in the hearing has an opportunity to participate in and hear the Proceeding.(c) The Examiner may conduct a prehearing conference by telephone or videoconferencing upon reasonable and adequate notice to the Parties, even in the absence of a Party's motion.(d) All substantive and procedural rights apply to telephone and videoconferencing prehearings and hearings, subject only to the limitations of the physical arrangement.(e) Documentary evidence to be offered at a telephone or videoconferencing prehearing conference or hearing shall be served on all Parties and filed at least fourteen (14) days before the prehearing conference or hearing unless the Examiner, by written Order, amends the filing deadline.(f) For a telephone or videoconferencing hearing or prehearing conference, the following may be considered a failure to appear and grounds for dismissal if the conditions exist for more than 15 minutes after the scheduled time for hearing or prehearing conference:(1) failure to answer the telephone or videoconference line;(2) failure to free the line for the Proceeding; or(3) failure to be ready to proceed with the hearing or prehearing conference as scheduled.",
            "sourceNote": "Source Note: The provisions of this §67.74 adopted to be effective September 14, 2006, 31 TexReg 7359; amended to be effective December 24, 2015, 40 TexReg 9302."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126332&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126332",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.75",
                "label": "Admissibility of Prepared Testimony and Exhibits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175495&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175495",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "When a Proceeding will be expedited and the interests of the Parties will not be prejudiced substantially, testimony may be received in written form. The prepared testimony of a witness upon direct examination, either in a narrative or question and answer form, may be, if admissible, admitted as evidence and incorporated in the record as if read or received as an exhibit, upon the witness' being sworn and identifying the same as a true and accurate record of what his testimony would be if he were to testify orally. The witness shall be subject to cross-examination and his prepared testimony shall be subject to being stricken either in whole or in part.",
            "sourceNote": "Source Note: The provisions of this §67.75 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175495&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175495",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.77",
                "label": "Introduction of Exhibits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126334&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "126334",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Form of exhibits. Exhibits of documentary character shall be of a size which will not unduly encumber the files and records of the Examiner, Board or its designee, and whenever practicable, shall conform to the requirements of §67.27 of this chapter (relating to form and content of Pleadings). Exhibits shall be limited to facts that are material and relevant to the issues involved in a particular Proceeding.(b) Tender and service. The original of each exhibit offered shall be tendered to the Examiner for identification. One copy shall be furnished to the Party or his Authorized Representative. Written or printed documents received in evidence may not be withdrawn except with the approval of the Examiner.(c) Excluded exhibits. In the event an exhibit has been identified, and not admitted into evidence, the Examiner shall determine whether or not the Party offering the exhibit withdraws the offer, and if so, permit the return of the exhibit to him. If the excluded exhibit is not withdrawn, it shall be given an exhibit number for identification, shall be endorsed by the Examiner with his ruling, and shall be included in the record for the purpose only of preserving an exception made to the Examiner's ruling that the exhibit is not admissible.(d) Late exhibits. Unless specifically directed by the Examiner and upon a showing of good cause, no exhibit shall be filed in any Proceeding after the conclusion of the hearing, and then only after a copy of the exhibit has been served on all Parties, and all Parties have been afforded an opportunity to conduct further discovery, cross-examination and offer rebuttal evidence regarding such late exhibit.",
            "sourceNote": "Source Note: The provisions of this §67.77 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359; amended to be effective December 24, 2015, 40 TexReg 9302."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126334&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126334",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.79",
                "label": "Witnesses"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126335&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "126335",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Oral testimony shall be presented under oath administered by the Examiner or court reporter.(b) The Examiner shall have the right in any Proceeding to limit the number of witnesses whose testimony is merely cumulative.",
            "sourceNote": "Source Note: The provisions of this §67.79 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126335&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126335",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.81",
                "label": "Examiner's Proposal for Decision"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175496&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175496",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If, in a Proceeding, a majority of the Board or its designee has not heard the case or read the record, the decision by the Board or its designee, if adverse to a Party to the Proceeding other than ERS, may not be made until a proposal for decision is served on the Parties, and an opportunity is afforded each Party adversely affected to file exceptions and supporting briefs with the Examiner. The proposal for decision must contain a statement of the reasons for the recommended decision and of each adopted finding of fact and conclusion of law necessary to support the recommended decision, prepared by the Person who conducted the hearing or by one who has read the record, including Pleadings, exhibits and testimony admitted or offered into evidence. In addition, the proposal for decision shall contain a statement of the nature of the case, a discussion of the issues, the evidence, and the applicable law. A proposal for decision, and any adopted findings of fact or conclusions of law cited therein, not expressly adopted by the Board or its designee as its own shall not be considered to be a statement of the policy of the Board or ERS and shall not be cited as such or relied upon as controlling authority or as a precedent in a proposal for decision in a subsequent Proceeding.(b) Upon completion of the hearing and the proposal for decision, the Examiner shall forward the proposal for decision and the record to the Executive Director, and the Examiner no longer has jurisdiction in the Proceeding. Ordinarily, a proposal for decision shall be submitted not later than the 60th day after the conclusion of the hearing.(c) The Examiner shall serve a copy of the proposal for decision on every Party.",
            "sourceNote": "Source Note: The provisions of this §67.81 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective March 26, 2000, 25 TexReg 2400; amended to be effective September 14, 2006, 31 TexReg 7359."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175496&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175496",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.83",
                "label": "Filing of Exceptions and Replies"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126337&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "126337",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Any Party may, no later than thirty (30) days after the date of service of the proposal for decision, file exceptions to the proposal for decision. Replies to the exceptions shall be filed no later than forty-five (45) days after the date of service of the proposal for decision. The Examiner, at his discretion, may grant a reasonable extension of the time for filing of exceptions and replies. A request for extension of time to file exceptions or replies shall be filed with the Examiner prior to the deadline for filing same, and a copy of the request shall be served on all Parties by the Party making the request. Additional time shall be allowed only when the interests of justice so require. The Examiner shall have thirty (30) days from the last timely filing of exceptions or replies to modify the proposal for decision or otherwise respond.(b) Upon the expiration of the earlier of the time to file exceptions (if no exceptions are filed) or the time for the Examiner to respond to any timely filed exceptions or replies, the Examiner shall forward the record to the Executive Director and the proposal for decision may be considered and ruled upon by the Board or its designee as provided in this chapter. The Examiner's jurisdiction in the Proceeding terminates at the time for forwarding the record.(c) Upon review of the record, the Executive Director may reverse ERS' decision underlying the Proceeding. Otherwise, the Proceeding will be submitted to the Board or its designee for a final administrative decision unless it is resolved informally as allowed by law.",
            "sourceNote": "Source Note: The provisions of this §67.83 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359; amended to be effective December 24, 2015, 40 TexReg 9302."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126337&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126337",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.85",
                "label": "Form of Exceptions and Replies"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175497&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175497",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Exceptions and replies to exceptions shall conform as nearly as practicable to the rules provided for Pleadings. The specific exceptions shall be concisely stated. The evidence relied upon shall be pointed out with particularity, and that evidence and any arguments relied upon shall be grouped generally under the exceptions to which they relate.",
            "sourceNote": "Source Note: The provisions of this §67.85 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective September 14, 2006, 31 TexReg 7359."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175497&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175497",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.87",
                "label": "Submission of Appeals to the Board's Designee"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175498&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175498",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as otherwise provided in this chapter, Proceedings shall be considered by the Board's designee for a final decision, and shall be decided on submission of the record. Upon written motion and a showing of good cause, a Party or his Authorized Representative may make a written request for oral argument before the Board's designee. The request must be filed with the Executive Director no later than the thirtieth (30th) day after the deadline to file exceptions or the Examiner's deadline to respond to exceptions and replies, whichever is later. The designee's decision regarding a request for hearing constitutes final Agency action and no further administrative appeal from the decision is available. If the request is granted, the oral argument shall be conducted in accordance with §67.89 of this chapter (relating to presentation of contested cases to the Board or its designee). In a Proceeding referred to the Board pursuant to §67.5(d) of this chapter (relating to appeals), a request for oral argument shall be directed to the Executive Director.(b) The Parties may submit written arguments to the Board's designee within thirty (30) days after service of the Examiner's final proposal for decision responding to any exceptions and replies to exceptions filed by the Parties. Responses to such written arguments shall be filed within thirty (30) days after service of the written argument. All written arguments and responses shall be filed with the Executive Director.(c) Proceedings to be decided upon submission may be submitted to the Board's designee after sixty (60) days from ERS' receipt of the record from the Examiner and all written arguments and responses, if any.",
            "sourceNote": "Source Note: The provisions of this §67.87 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective May 30, 1991, 16 TexReg 2737; amended to be effective January 3, 1997, 21 TexReg 12426; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359; amended to be effective December 24, 2015, 40 TexReg 9302."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175498&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175498",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.89",
                "label": "Presentation of Contested Cases to the Board or its Designee"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175499&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175499",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) When a request for oral argument is granted pursuant to §67.87 of this chapter (relating to submission of appeals to the Board's designee), the Examiner who prepared the proposal for decision shall, if practicable, present the Proceeding to the Board or its designee during the Board meeting, or the designee's Proceeding, at which the case has been placed for final administrative decision. In presenting the case, the Examiner shall:(1) concisely state the nature of the case;(2) concisely state the positions of the Parties;(3) concisely state his or her proposal for deciding the case and the basis for that proposal; and(4) respond to questions concerning the hearing and the proposal directed to him from a Trustee or the Board's designee. The Examiner shall not present information that is not part of the record of the Proceeding.(b) In a Proceeding that the Executive Director, in his/her sole discretion, determines should be set for consideration before the Board, a Party may present oral argument to the Board before the final determination of any Proceeding by filing with the Executive Director a written request to do so at least three (3) business days prior to the day on which the Board is to consider the Proceeding. If such a request is not timely filed, oral argument shall be allowed only at the discretion of the Board. In the event that oral argument is allowed and all Parties are present and prepared to present oral argument, the case will proceed. Otherwise, the Board may, in its sole discretion, hear the case in the absence of any Party, any Authorized Representative or the Examiner, or continue the case to a future meeting.(c) A Trustee or the Board's designee may question the Examiner concerning the hearing, the evidence, the proposal for decision or any other matter concerning the record of the Proceeding. In responding to a question, the Examiner must advise the chairman of the Board or the Board's designee if the Examiner believes the question involves a matter outside the record of the Proceeding or is otherwise improper. The chairman of the Board or the Board's designee may ask the general counsel for his/her opinion concerning the propriety of a particular question. The decision of the chairman of the Board or the Board's designee concerning the propriety of a question shall be final.(d) A Trustee or the Board's designee may ask the general counsel for his/her opinion concerning the legality of a particular course of action or decision, the law or rules governing a particular aspect of matters within the jurisdiction of the Board or its designee, the evaluation of the evidence, or any other legal matter. The general counsel shall advise the chairman of the Board or the Board's designee if the general counsel is of the opinion that responding to a particular question would be inappropriate. The decision of the chairman of the Board or the Board's designee concerning the propriety of a question shall be final.(e) If oral argument is allowed, then each Party will be given time, not to exceed ten (10) minutes, unless additional time is allowed by the chairman of the Board or the Board's designee, to present oral argument to the Board or its designee. Questions by the Board or its designee and answers to such questions will not be considered as part of the time limitations described in this section. Oral argument concerning matters outside the record and proffered documents not presented during the evidentiary hearing before the Examiner will not be allowed.(f) After the Examiner presents his proposal for decision, the Trustees or the Board's designee have been given an opportunity to ask questions, oral argument is presented, and the Trustees or the Board's designee have been given an opportunity to discuss and consider the case, the Board or its designee shall act on the case and render a decision.",
            "sourceNote": "Source Note: The provisions of this §67.89 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective May 17, 1988, 13 TexReg 2164; amended to be effective May 30, 1991, 16 TexReg 2737; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359; amended to be effective December 24, 2015, 40 TexReg 9302."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175499&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175499",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.91",
                "label": "Form, Content, and Service of Orders"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175500&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175500",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All final Orders of the Board or its designee shall be in writing and shall be signed by the chairman of the Board or by the Board's designee. A final decision shall include, adopt or reference findings of fact and conclusions of law separately stated. Findings of fact, if set forth in statutory language, shall be accompanied by a concise and explicit statement of the underlying facts supporting the findings.(b) Acting in its capacity as fiduciary of the employee benefit plans for which it serves as trustee, the Board or its designee may, in their sole discretion, modify, refuse to accept, or delete any adopted finding of fact or conclusion of law, or make alternative findings of fact or conclusions of law, if it is determined by the Board or its designee that all or part of the proposal for decision submitted by the Examiner, or a adopted finding of fact or conclusion of law contained therein, is:(1) clearly erroneous or illogical;(2) against the weight of the evidence;(3) based on a misapplication of the rules of evidence or an insufficient review of the evidence;(4) based on a medical opinion that is not supported by objective medical evidence, or is not based on reasonable medical probability;(5) inconsistent with the terms or intent, as determined by the Board or its designee, of an applicable statute, benefit plan or insurance policy provision;(6) confusing, incomplete or misleading;(7) immaterial or irrelevant to the issues; or(8) not sufficient to protect the interests of the plans and programs for which the Board is trustee, or the interests, as a group, of the Members, retirees or participants covered by such plans and programs. The Order shall contain or reference a written statement of the reason and legal basis for each change made based on the foregoing policy reasons. Correction of nonsubstantive typographical errors do not need to be explained.(c) A copy of the Board's or its designee's decision or Order shall be served on each Party or his Authorized Representative.",
            "sourceNote": "Source Note: The provisions of this §67.91 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359; amended to be effective December 24, 2015, 40 TexReg 9302."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175500&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175500",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.93",
                "label": "Administrative Finality"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126344&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "126344",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Administrative action becomes final in any of the following events:(1) adoption by the Board or its designee of a final Order and the failure to file a motion for rehearing within the time prescribed by the APA.(2) adoption by the Board or its designee of a final Order and the denial of a motion for rehearing, either expressly or by operation of law; or(3) adoption by the Board or its designee of a final Order which includes a statement that no motion for rehearing will be necessary because an imminent peril to the public health, safety, and welfare, including such peril to a plan or program administered by the Board, requires immediate effect to be given to a final decision or Order.(b) Any other decisions designated by these rules to constitute final Agency action are subject to requirements for motions for rehearing as provided in the APA.",
            "sourceNote": "Source Note: The provisions of this §67.93 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359; amended to be effective December 24, 2015, 40 TexReg 9302."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126344&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126344",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.99",
                "label": "Emergency Order"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175474&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175474",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "If the Board or its designee finds that an imminent peril to the public health, safety, or welfare, including such peril to a plan or program administered by the Board, requires immediate effect of a final decision or Order in a Proceeding, the Board or its designee shall recite that finding in the decision or Order, and the decision or Order shall be final and appealable from the date rendered and no motion for rehearing shall be required as a prerequisite for appeal.",
            "sourceNote": "Source Note: The provisions of this §67.99 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective September 14, 2006, 31 TexReg 7359."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175474&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175474",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.101",
                "label": "Ex Parte Communications"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175475&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "175475",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Unless required for the disposition of ex parte matters authorized by law, the Executive Director, Examiners, Trustees or the Board's designee assigned to render a proposal for decision or Order, or to make proposed or adopted findings of fact and conclusions of law in a Proceeding may not communicate, directly or indirectly, in connection with any issue of fact or law with any Party or his Authorized Representative, except on notice and opportunity for all Parties to participate.(b) Any contact with any Trustees, the Board, or its designee by a Party, an Authorized Representative or someone acting for a Party during the appeal process, other than that described in §67.89 of this chapter (relating to presentation of contested cases to the Board or its designee), is improper.(c) This rule does not apply to communications between the Executive Director, Board or its designee and their staff, including, but not limited to the ERS general counsel and staff experts as permitted by Government Code §2001.061(c).",
            "sourceNote": "Source Note: The provisions of this §67.101 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective May 30, 1991, 16 TexReg 2737; amended to be effective September 14, 2006, 31 TexReg 7359; amended to be effective December 24, 2015, 40 TexReg 9302."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=175475&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "175475",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.103",
                "label": "Subpoenas"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126347&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "126347",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The issuance of subpoenas in any Proceeding shall be governed by the subpoena provisions of the APA (Government Code §2001.089). Following written request by a Party or on its own motion, the Executive Director or his/her designee may issue subpoenas addressed to the sheriff or any constable to require the attendance of witnesses and the production of books, records, papers, or other objects as may be necessary and proper for the purposes of a Proceeding. The subpoena may be issued only by the Executive Director or his/her designee.(b) Motions for subpoenas to compel the attendance or production of witnesses, the production of books, records, papers, or other objects shall be addressed to the Executive Director and shall be verified and supported by a showing of good cause, and shall specify with reasonable particularity the Persons, books, records, papers, or other objects desired and the material and relevant facts to be proven by them.(c) Subpoenas shall be issued by the Executive Director only after:(1) the movant has shown good cause that the subpoena should be issued or all of the Parties have agreed pursuant to §67.11 of this chapter (relating to agreements to be in writing) that a subpoena should be issued; and(2) the movant has deposited sums sufficient to ensure payment of all expenses incident to the subpoenas. Service of subpoenas and payment of witness fees and expenses shall be made in the manner prescribed in the APA §2001.089, §2001.103 and §67.109 of this chapter (relating to witness fees).",
            "sourceNote": "Source Note: The provisions of this §67.103 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359; amended to be effective December 24, 2015, 40 TexReg 9302."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126347&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126347",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.105",
                "label": "Depositions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126348&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "126348",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Unless otherwise agreed to by the Parties pursuant to §67.11 of this chapter (relating to agreements to be in writing), the taking and use of depositions in any Proceeding shall be governed by the APA §§2001.094 - 2001.103.",
            "sourceNote": "Source Note: The provisions of this §67.105 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126348&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126348",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.107",
                "label": "Discovery Generally"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126349&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "126349",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The Parties to a contested case may engage in any type of discovery authorized by the Texas Rules of Civil Procedure and the APA. The manner and procedure for engaging in such discovery, including, but not limited to deadlines to object or respond to discovery requests, shall be the manner and procedure specified in the Texas Rules of Civil Procedure or the APA, whichever is applicable. Unless otherwise ordered, or the Parties otherwise agree pursuant to §67.11 of this chapter (relating to agreements to be in writing), discovery level 1 shall apply as defined in Tex. R. Civ. P. 190.2.",
            "sourceNote": "Source Note: The provisions of this §67.107 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126349&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126349",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.108",
                "label": "Discovery Sanctions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126350&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "126350",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The provisions of Tex. R. Civ. P. 215 shall apply to Proceedings governed by this chapter, except to the extent the rule is inconsistent with the provisions of the APA or this chapter. Examiners shall not have authority to impose monetary sanctions or costs. In addition, all motions relating to discovery shall be filed with the Examiner, subject to review by the Board or its designee, except as otherwise provided in the APA, §2001.201 and §2001.202.",
            "sourceNote": "Source Note: The provisions of this §67.108 adopted to be effective September 14, 2006, 31 TexReg 7359."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126350&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126350",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.109",
                "label": "Witness Fees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=224696&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "224696",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Witness fees are as follows:(1) Mileage and per diem allowances are the same as those provided for state employees under applicable law or regulation.(2) A standard appearance fee for each day or part of a day the Person is necessarily present as a witness is set at $50. A witness who gives testimony in an expert capacity may be paid an appearance fee of no more than twice the standard fee. The witness fee for a retained expert shall be paid by the Party who retained the witness.(3) Fees may be tendered with service of a subpoena to compel testimony or the production of records, but otherwise shall be paid only on presentation of proper vouchers sworn by the witness and approved by ERS.(4) Witness fees will be paid by ERS from the funds deposited by the Party who requested the witness to appear.",
            "sourceNote": "Source Note: The provisions of this §67.109 adopted to be effective March 19, 1986, 11 TexReg 1149; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective September 14, 2006, 31 TexReg 7359."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=224696&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "224696",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "67",
                "label": "HEARINGS ON DISPUTED CLAIMS"
            },
            "rule": {
                "number": "§67.201",
                "label": "Procedures Governing Bid Protests"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207336&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207336",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A vendor who is aggrieved by the solicitation, evaluation, or award of a contract may file a formal written protest with the Director of Procurement and Contract Oversight. Formal protests must conform to the requirements of this subsection, subsections (c) and (d), and, when applicable, subsection (e) of this section, and shall be resolved in accordance with subsections (f) - (h) of this section. A protest must be emailed or mailed as specified on the ERS website or hand delivered to ERS during regular business hours. (b) If the Executive Director determines that the award of a contract without delay is necessary to protect the best interests of ERS, the agency may proceed with the award despite a timely protest.(c) A formal protest must be sworn and contain: (1) a list of every statutory and regulatory provision that is alleged to have been violated; (2) a specific description of every act that is alleged to have violated the listed statutory and regulatory provisions; (3) a precise statement of relevant facts; (4) a precise statement of every issue of law and fact that the protesting party contends must be resolved; and (5) argument and authorities in support of the protest. (d) To be considered timely, the protest must be received:  (1) by the last day of the posted solicitation period, if the protest concerns the solicitation; (2) by the day of the contract award, if the protest concerns the evaluation; or (3) no later than 10 business days after the date that ERS issued notice of award, if the protest concerns the award. (e) If a protest is not resolved by mutual agreement, the Director of Procurement and Contract Oversight shall issue a written determination. (f) A protesting party may submit a written appeal of a protest determination to the Deputy Executive Director. An appeal must be emailed or mailed as specified on the ERS website or hand delivered to ERS during regular business hours and must be received by ERS no later than 10 business days after the date that ERS issued notice of the determination. Any appeal shall be limited to the matters timely raised in writing in the formal protest. (g) An untimely appeal shall not be considered unless the appealing party demonstrates good cause for the untimeliness. \"Good Cause\" means that a person's failure to act was not because of a lack of due diligence the exercise of which would have caused a reasonable person to take prompt and timely action. A failure to act based on ignorance of the law or facts reasonably discoverable through the exercise of due diligence does not constitute good cause. (h) A protesting party may appeal a protest determination only to the Deputy Executive Director, and the determination of the Deputy Executive Director shall not be subject to further appeal or judicial review.",
            "sourceNote": "Source Note: The provisions of this §67.201 adopted to be\r\neffective December 24, 2015, 40 TexReg 9302; amended to be effective\r\nSeptember 12, 2017, 42 TexReg 4655; amended to be effective April\r\n16, 2025, 50 TexReg 2436."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207336&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207336",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "69",
                "label": "MEMBERSHIP, ANNUITY TERMINATION, AND REFUNDS"
            },
            "rule": {
                "number": "§69.1",
                "label": "Employees Covered by Teacher Retirement System"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207337&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207337",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following persons employed by state agencies and departments are members of the Teacher Retirement System of Texas (TRS):(1) a person who holds a coaching, teaching, or administrative position with an independent school district, the salary for which is paid with foundation school funds; and(2) a person who elected to retain membership in TRS when the agency or department that employs the person transferred out of TRS.",
            "sourceNote": "Source Note: The provisions of this §69.1 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective December 29, 2021, 46 TexReg 9059."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207337&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207337",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "69",
                "label": "MEMBERSHIP, ANNUITY TERMINATION, AND REFUNDS"
            },
            "rule": {
                "number": "§69.2",
                "label": "Definitions Related to Annuity Termination"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207338&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207338",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) \"Qualifying felony\" for the purposes of §69.3(a) of this chapter means a felony described by Tex. Gov't Code §810.003(a).(2) \"Qualifying felony\" for the purposes of §69.3(b) of this chapter means a felony described by Tex. Gov't Code §810.004(a).(3) \"Elected official\" means a person described by Tex. Gov't Code §810.003(b). The retirement of an elected official prior to the termination of an annuity under this chapter does not prevent annuity forfeiture under this chapter.(4) \"Corrections officer\" means a person described by Tex. Gov't Code §810.004(b). The retirement of a corrections officer prior to the termination of an annuity under this chapter does not prevent annuity forfeiture under this chapter.(5) \"Alternate payee\" means a spouse, former spouse, child, or other dependent of an elected official or corrections officer who is recognized by a domestic relations order as having a right to receive all or a portion of the benefits payable by a public retirement system with respect to the elected official or corrections officer.(6) \"Suspension period\" means the period of time between the date an annuity is terminated under this chapter and the date the system determines the annuity should be reinstated because the conviction was overturned on appeal or the person meets the requirements for innocence under Tex. Civ. Prac. & Rem. Code §103.001(a)(2).",
            "sourceNote": "Source Note: The provisions of this §69.2 adopted to be effective December 29, 2021, 46 TexReg 9059."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207338&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207338",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "69",
                "label": "MEMBERSHIP, ANNUITY TERMINATION, AND REFUNDS"
            },
            "rule": {
                "number": "§69.3",
                "label": "Termination of Annuities"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207339&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207339",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The annuity of an elected official shall be terminated if:(1) the elected official is convicted of a qualifying felony committed while in office; and(2) the conduct underlying the qualifying felony arose directly from the official duties of the elected official's office.(b) The annuity of a corrections officer shall be terminated if:(1) the corrections officer is convicted of a qualifying felony; and(2) the conduct underlying the qualifying felony arose directly from the person's service as a corrections officer.(c) If the elected official or corrections officer is receiving an annuity at the time that the system receives notice of the conviction, the final annuity payment shall be paid on the last day of the month following the month in which the system receives the notice of conviction.(d) If the annuity of an elected official or corrections officer is terminated pursuant to subsection (a) or (b) of this section, the system shall issue a refund of the person's remaining service retirement annuity contributions, including service purchase funds, with interest, unless the annuity is subject to an order of a court awarding any part of the annuity to a spouse, former spouse, or other alternate payee. A refund under this section is subject to an order of a court awarding all or part of the person's service retirement annuity contributions to a former spouse as provided by Tex. Gov't Code §810.003(f), except as otherwise provided by §69.4 and §69.5 of this chapter.(e) The system shall reinstate the annuity and refund payments withheld during the suspension period, with interest, or if not retired shall reinstate membership and canceled service credit if:(1) the conviction is overturned on appeal or the elected official or corrections officer meets all requirements for innocence under Tex. Civ. Prac. and Rem. Code §103.001(a)(2); and(2) the system receives a completed application for reinstatement and a payment equal to the refund provided under subsection (d) of this section, not later than the 120th day after the conviction is overturned or the person meets all requirements for innocence.(f) Interest under this chapter shall be calculated at the rate provided by Tex. Gov't Code §815.311 in effect at the time the system reinstates the annuity.(g) Subject to applicable federal law, an elected official or a corrections officer whose annuity is terminated under this chapter is no longer an annuitant for purposes of Tex. Ins. Code Chapter 1551. Coverage shall terminate on the first day of the month following the final annuity payment.(h) Service credit previously earned in any class by an elected official or corrections officer whose annuity is terminated under this chapter is no longer creditable service and may not be used, transferred, or repurchased under Tex. Gov't Code Chapters 803, 805, or 813 or under §833.102 or §838.102 unless the system reinstates the annuity because the conviction has been overturned or the person has met all requirements for innocence. If the conviction has been overturned or the person has met all requirements for innocence, interest shall be calculated as if there was no suspension period.(i) A decision by the system under this chapter constitutes final agency action and no administrative appeal from the decision is available.",
            "sourceNote": "Source Note: The provisions of this §69.3 adopted to be effective December 29, 2021, 46 TexReg 9059."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207339&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207339",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "69",
                "label": "MEMBERSHIP, ANNUITY TERMINATION, AND REFUNDS"
            },
            "rule": {
                "number": "§69.4",
                "label": "Pre-existing Qualified Domestic Relations Orders"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207340&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207340",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If an elected official is subject to a qualified domestic relations order established prior to June 6, 2017, and the retirement of the elected official has caused benefits to be payable to the alternate payee prior to annuity termination, the system shall retain an actuarially determined portion of the person's remaining service retirement annuity contributions, including service purchase funds, with interest, in order to continue to satisfy the obligation to the alternate payee.(b) If a corrections officer is subject to a qualified domestic relations order established prior to June 10, 2019, and the retirement of the corrections officer has caused benefits to be payable to the alternate payee prior to annuity termination, the system shall retain an actuarially determined portion of the person's remaining service retirement annuity contributions, including service purchase funds, with interest, in order to continue to satisfy the obligation to the alternate payee.(c) An alternate payee described by subsection (a) or (b) of this section shall continue to receive the alternate payee's portion of the annuity. Annuity payments shall stop at the death of the elected official/corrections officer or the alternate payee, whichever is earlier. Any remaining portion of the elected official's or corrections officer's service retirement annuity contributions, including service purchase funds, shall be refunded with interest.(d) If an elected official or corrections officer does not retire prior to annuity termination, the system shall satisfy any obligation to an alternate payee under a qualified domestic relations order by paying the alternate payee a portion of a refund of the elected official's or corrections officer's service retirement annuity contributions, including service purchase funds, with interest.",
            "sourceNote": "Source Note: The provisions of this §69.4 adopted to be effective December 29, 2021, 46 TexReg 9059."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207340&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207340",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "69",
                "label": "MEMBERSHIP, ANNUITY TERMINATION, AND REFUNDS"
            },
            "rule": {
                "number": "§69.5",
                "label": "Awards to Spouses"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207341&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207341",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If a court awards a portion of an elected official's or corrections officer's forfeited annuity under Tex. Gov't Code §810.003(h) or §810.004(g) the awarded portion is payable only for the lifetime of the elected official/corrections officer or the spouse, whichever ends earlier.(b) The maximum portion of a forfeited annuity payable to a spouse under Tex. Gov't Code §810.003(h) or §810.004(g) is fifty percent.(c) The system may not pay any portion of a forfeited annuity to a common law or informal spouse or to a spouse who fails to provide written notice of an award as required by this section. An award of a portion of a forfeited annuity under Tex. Gov't Code §810.003(h) or §810.004(g) is payable only if:(1) the award is made to a spouse that the elected official or corrections officer married as evidenced by a properly issued and completed marriage license; and(2) the spouse provides written notice of the award to the system not later than the 30th day after the conviction of the elected official or corrections officer.(d) If the spouse of an elected official or corrections officer is convicted of the qualifying felony as a party to the offense or convicted of another related offense arising out of the same criminal episode, the spouse forfeits any interest in the elected official's or corrections officer's annuity or service retirement contributions to the same extent as the elected official or corrections officer. The divorce of an elected official or corrections officer prior to the termination of an annuity under this chapter shall not prevent the forfeiture of the spouse's interest in the annuity and service retirement contributions, including service purchase funds.",
            "sourceNote": "Source Note: The provisions of this §69.5 adopted to be effective December 29, 2021, 46 TexReg 9059."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207341&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207341",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "69",
                "label": "MEMBERSHIP, ANNUITY TERMINATION, AND REFUNDS"
            },
            "rule": {
                "number": "§69.6",
                "label": "Notice of Conviction"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207342&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207342",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The system shall terminate the annuity of an elected official or corrections officer convicted of a qualifying felony pursuant to §69.3 of this chapter upon receipt of notice of the conviction as specified in Tex. Gov't Code §810.003 or §810.004 or other proper notice of the conviction.(b) Proper notice of the conviction must include:(1) a copy of the court's judgment and sentence or documentation equivalent to a judgment and sentence; and(2) identifying information establishing that the person named in the judgment and sentence is an elected official or corrections officer who is a contributing member or annuitant of the system, including, but not limited to, the person's date of birth or social security number.(c) The person convicted of a qualifying felony must provide proper notice of the conviction to the system not later than the 30th day after the judgment and sentence are entered by the court. If the person fails to provide such notice on or before the 30-day deadline, the person must repay to the system all annuity payments that would have been forfeited if timely notice had been provided. The system shall recoup the annuity payments prior to making any payment to an alternate payee, except as provided by Tex. Gov't Code §810.003(g) or §810.004(f), and shall offset such payments against a refund of the person's remaining service retirement annuity contributions, including service purchase funds, if any.(d) For an elected official, the governmental entity to which the person was elected or appointed must provide proper notice of the conviction to the system not later than the 30th day after the judgment and sentence are entered by the court.(e) For elected officials and corrections officers, the court entering the judgment and sentence must provide proper notice of the conviction to the system as soon as practicable but not later than the 30th day after the judgment and sentence are entered by the court.(f) For elected officials and corrections officers, the lead prosecuting attorney must provide proper notice of the conviction to the system as soon as practicable but not later than the 30th day after the judgment and sentence are entered by the court. The lead prosecuting attorney also shall provide a copy of the indictment to the system.(g) A court's, governmental entity's, or lead prosecuting attorney's failure to comply with the notice requirements under subsection (d), (e), or (f) of this section shall not prevent the system from terminating an annuity.",
            "sourceNote": "Source Note: The provisions of this §69.6 adopted to be effective December 29, 2021, 46 TexReg 9059."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207342&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207342",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "69",
                "label": "MEMBERSHIP, ANNUITY TERMINATION, AND REFUNDS"
            },
            "rule": {
                "number": "§69.7",
                "label": "Members of Governing Boards and Commissions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207343&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207343",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Payment of contributions by a person who is a member of the system by virtue of service on a governing board or commission shall be made to the corresponding department or agency. Contributions are due on the last day of the month for which retirement service credit is to be established.(b) If payment has not been received by the system when the department's or agency's retirement report is received, notice that payment has not been made and of the pending loss of eligibility to establish retirement service credit shall be sent to the member and to the chief fiscal officer and the head of the department or agency.(c) If a board or commission member's contributions are not paid to the system within 60 days after they are due, the member shall lose all rights to establish retirement service credit as a member of the board or commission.",
            "sourceNote": "Source Note: The provisions of this §69.7 adopted to be effective December 29, 2021, 46 TexReg 9059."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207343&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207343",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "69",
                "label": "MEMBERSHIP, ANNUITY TERMINATION, AND REFUNDS"
            },
            "rule": {
                "number": "§69.8",
                "label": "Reinstatement of Refunded Accounts within 30 Days"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207344&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207344",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If a former employee with 10 or more years of retirement service credit requests a refund, the former employee may withdraw the refund request by returning the refund warrant within 30 days of the date the warrant was mailed by the system.(b) This section does not apply to any of the provisions in §69.2 through §69.6 of this chapter.",
            "sourceNote": "Source Note: The provisions of this §69.8 adopted to be effective December 29, 2021, 46 TexReg 9059."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207344&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207344",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "69",
                "label": "MEMBERSHIP, ANNUITY TERMINATION, AND REFUNDS"
            },
            "rule": {
                "number": "§69.9",
                "label": "Trustee to Trustee Transfers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=122724&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "122724",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Effective for distributions made after December 31, 1992, the system shall permit the distributee of an eligible rollover distribution to elect to have such distribution paid directly to an eligible retirement plan specified by the distributee in the form of a direct trustee to trustee transfer.(b) The system shall develop procedures to implement this section in accordance with the Internal Revenue Code of 1986, §401(a)(31), as amended, and related regulations. Terms used in this section shall have the meanings assigned in the Internal Revenue Code of 1986 as amended.",
            "sourceNote": "Source Note: The provisions of this §69.9 adopted to be effective January 12, 1993, 18 TexReg 65; amended to be effective December 29, 2021, 46 TexReg 9059."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=122724&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "122724",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "71",
                "label": "CREDITABLE SERVICE"
            },
            "rule": {
                "number": "§71.1",
                "label": "Service Credit for Members of Employee Class"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210124&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "210124",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) One year of service credit shall be granted for any fiscal year prior to September 1, 1958, in which the member has six or more months of contributory service, other than military service credit, if such contributory service is established on or before December 31, 1988.(b) Except as provided in subsection (a) of this section, each full or partial month of contributory service performed shall count as one-twelfth of a year of creditable service.(c) Military service credit is granted on a month-for-month basis, regardless of the date performed.(d) A member who was granted 12 months retirement credit for service performed as a legislative employee during an entire legislative session prior to December 31, 1977, who subsequently withdrew the accumulated contributions, shall, upon reinstating the withdrawn account, receive credit under subsections (a) and (b) of this section.",
            "sourceNote": "Source Note: The provisions of this §71.1 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective March 15, 1988, 13 TexReg 1104; amended to be effective January 10, 2006, 31 TexReg 168."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210124&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "210124",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "71",
                "label": "CREDITABLE SERVICE"
            },
            "rule": {
                "number": "§71.2",
                "label": "Membership Waiting Period for Employee Class"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20086&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "20086",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In determining the date of eligibility for membership in the employee class for an employee who was subject to the waiting period, the following provisions apply:(1) the system shall count the date of employment as the first day of the waiting period;(2) the date of employment means the date on which an individual began to perform service or hold office.(b) Service credit for service performed during the waiting period described by this section may be established at the actuarial present value as provided in §71.31 of this chapter and Tex. Gov't Code §813.514, if applicable.(c) Waiting periods prior to September 1, 1973 are considered membership service not previously established and may be established as provided in §71.14 of this chapter.",
            "sourceNote": "Source Note: The provisions of this §71.2 adopted to be effective December 31, 2003, 28 TexReg 11610; amended to be effective January 10, 2006, 31 TexReg 168; amended to be effective September 8, 2014, 39 TexReg 7177; amended to be effective December 24, 2015, 40 TexReg 9304; amended to be effective September 14, 2022, 47 TxReg 5497."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20086&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "20086",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "71",
                "label": "CREDITABLE SERVICE"
            },
            "rule": {
                "number": "§71.3",
                "label": "Service Credit for Members of the Elective Class"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210125&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "210125",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Each elective state official who becomes a member of the system shall be eligible to establish one month of service for each month or fraction thereof in which he holds office. No more than 24 months service shall be credited for a two-year term and no more than 48 months service shall be credited for a four-year term.(b) A member of the elected class who on or after September 1, 1989, purchases and receives credit in the elected class for calendar year service and who during that same calendar year holds a position as an appointive officer or employee shall also receive credit in the employee class of membership.",
            "sourceNote": "Source Note: The provisions of this §71.3 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective March 21, 1985, 10 TexReg 828; amended to be effective November 23, 1989, 14 TexReg 5934; amended to be effective September 15, 1997, 22 TexReg 9004."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210125&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "210125",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "71",
                "label": "CREDITABLE SERVICE"
            },
            "rule": {
                "number": "§71.5",
                "label": "Credit Previously Transferred from Teacher Retirement System (TRS) and Credit Transferred from TRS Pursuant to the Government Code, Title 8"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3920&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "3920",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Credit for 4-1/2 months or more of service performed in a fiscal year under the Teacher Retirement Act prior to September 1, 1958, was transferred to the system as one year of service credit. No credit was established for less than 4-1/2 months service in a fiscal year ending prior to September 1, 1958.(b) Service of nine or more months in a fiscal year beginning after August 31, 1958, was established as 12 months' credit. All other service performed under TRS after August 31, 1958, was transferred to the system on a month-for-month basis.(c) Credit for military service transferred from TRS is established in the system only if that military service was eligible for credit under provisions of Tex. Gov't Code Title 8.(d) Credit for service transferred from TRS to the system pursuant to Tex. Gov't Code Title 8, shall be established in the system on a month-for-month basis notwithstanding any other provision of this section.(e) Credit for service transferred from TRS to the system after August 1, 1993, shall be according to the rules adopted by TRS for determining creditable service.(f) A cash balance group member, a beneficiary of a deceased cash balance group member, or a personal representative of a cash balance group member may not transfer service credit from TRS.",
            "sourceNote": "Source Note: The provisions of this §71.5 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective December 24, 1987, 12 TexReg 4533; amended to be effective April 20, 1994, 19 TexReg 2550; amended to be effective September 14, 2022, 47 TexReg 5497."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3920&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "3920",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "71",
                "label": "CREDITABLE SERVICE"
            },
            "rule": {
                "number": "§71.7",
                "label": "Limitation on Service Credit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=71657&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "71657",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "No more than one month's credit can be given under a class of membership for a month or fraction of a month of service rendered or established under that class.",
            "sourceNote": "Source Note: The provisions of this §71.7 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective November 23, 1989, 14 TexReg 5934."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=71657&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "71657",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "71",
                "label": "CREDITABLE SERVICE"
            },
            "rule": {
                "number": "§71.11",
                "label": "Retirement Contributions Based on Nonmonetary Compensation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20089&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "20089",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "An employee's nonmonetary compensation shall be considered compensation for retirement purposes. Nonmonetary compensation includes only housing and utilities. Contributions shall be based on the actual value of the nonmonetary compensation or $175, whichever is less.",
            "sourceNote": "Source Note: The provisions of this §71.11 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective January 9, 2000, 24 TexReg 12071."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20089&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "20089",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "71",
                "label": "CREDITABLE SERVICE"
            },
            "rule": {
                "number": "§71.13",
                "label": "Payments to Establish Service Credit--Date Due"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210126&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "210126",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A member may establish service credit under the law and the rate of interest in effect on the date the member applied for credit if payment is made before the application deadline, or if payment is made within 10 days of the date notice of the amount due is mailed to the member at the last known address.",
            "sourceNote": "Source Note: The provisions of this §71.13 adopted to be effective September 21, 1981, 6 TexReg 3427."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210126&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "210126",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "71",
                "label": "CREDITABLE SERVICE"
            },
            "rule": {
                "number": "§71.14",
                "label": "Payments to Establish or Reestablish Service Credit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=28693&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "28693",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A cash balance group member may not establish or reestablish service credit under this section except to the extent that §76.12 of this part allows the purchase of military service credit.(b) A member or contributing member may purchase eligible service creditable in the system in accordance with Tex. Gov't Code Chapter 813. The system shall grant the applicable amount of service credit after each payment made under this section is equal to the amount required to establish one or more months of creditable service.(c) Service credit that may be established or reestablished includes military service credit, service credit previously cancelled, and service credit not previously established.(d) The system shall develop procedures and forms to be used in connection with this section.(e) A member who has contributed to both the Law Enforcement and Custodial Officer Supplemental Retirement (LECOS) fund and the ERS defined benefit plan will be allowed to purchase previously refunded Commissioned Peace Officer and Custodial Officer (CPO/CO) service and/or employee class service within the defined benefit plan. If a member purchases employee class service only and decides later to retire as a CPO/CO, the member must purchase the unpaid portion of service credit attributable to CPO/CO service, which will include any additional contribution to the LECOS fund plus interest, in order to receive creditable service and retire as a CPO/CO. If the member does not purchase the unpaid portion of the service credit attributable to CPO/CO service, then the service shall only be creditable for the employee class of membership.",
            "sourceNote": "Source Note: The provisions of this §71.14 adopted to be effective September 2, 1993, 18 TexReg 5593; amended to be effective September 15, 1997, 22 TexReg 9004; amended to be effective March 15, 2010, 35 TexReg 2200; amended to be effective December 24, 2015, 40 TexReg 9304; amended to be effective March 27, 2018, 43 TexReg 1875; amended to be effective September 14, 2022, 47 TexReg 5497."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=28693&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "28693",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "71",
                "label": "CREDITABLE SERVICE"
            },
            "rule": {
                "number": "§71.15",
                "label": "Transfer of ERS Service Credit to the TRS for Certain TRIMS Employees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210127&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "210127",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The purpose of this section is to implement the Texas Education Code, § 73.503, concerning transfer of Employees Retirement System (ERS) service credit to the Teacher Retirement System (TRS) for certain Texas Research Institute of Mental Sciences (TRIMS) employees who become employees of the University of Texas System or any of its components.(b) This section applies to any person who:(1) was a TRIMS employee during the month of May, June, July, or August 1985; and(2) was employed by and went to work for the University of Texas System or any of its components during the month of June, July, August, or September 1985.(c) This section does not apply to a former TRIMS employee who:(1) was employed in another ERS or TRS covered position at an agency other than TRIMS during the period of time between leaving TRIMS and being employed by the University of Texas System or any of its components;(2) becomes an employee of the University of Texas System or any of its components after September 30, 1985; or(3) is determined by TRS to not be eligible for TRS membership.(d) A person to whom this section applies:(1) may retire from ERS or apply for a refund from ERS until August 31, 1985 if he or she is otherwise eligible to retire or to request a refund; and(2) may not retire or apply for a refund from ERS on or after September 1, 1985.(e) The TRS is responsible for identifying and determining persons who are eligible for transfer of service credit pursuant to the Texas Education Code, §73.503.(f) The ERS service credit of a person to whom this section applies and who has not retired or requested a refund from ERS shall be transferred to TRS effective as of September 1, 1985, or the actual date of employment by the University of Texas System or any of its components, whichever is later, but, in no event, later than September 30, 1985. Employees Retirement System credit that is transferred shall thereafter be regarded as service that was covered by TRS. The transfer of ERS service credit to TRS shall terminate the person's membership in, and all rights to benefits from, ERS. Member contributions previously withdrawn from ERS may be reinstated in TRS only subject to the laws and rules governing reinstatement of accounts and credit in TRS. Military service credit already established with ERS will be credited by TRS only when the person's service credit, excluding military credit, in TRS consists of at least 10 years. When credit is transferred or as soon thereafter as possible, ERS shall transfer to TRS:(1) all amounts in the individual member accounts with ERS of persons to whom this section applies and who have not retired or requested a refund from ERS and any member contributions subsequently received for those persons for service before September 1, 1985; and(2) an amount from the state accumulation account determined by the actuary of ERS to be such that the transfer of funds and service credit by ERS to TRS will neither increase nor diminish the period required to amortize the unfunded liability of ERS.(g) Any other provision of this section to the contrary notwithstanding, this section also applies to those persons who are certified on or before August 31, 1985, by the commissioner of the Texas Department of Mental Health and Mental Retardation as TRIMS employees who will continue to work at TRIMS after September 1, 1985, for the purpose of concluding and winding up TRIMS operations. If such an employee is employed by the University of Texas System or any of its components within 30 days of the employee's last day of work at TRIMS, but in any event no later than January 31, 1986, without being employed in another ERS or TRS covered position during the interim period, then such employee shall have his or her ERS service credit transferred to TRS if TRS determines that the employee is eligible for TRS membership.",
            "sourceNote": "Source Note: The provisions of this §71.15 adopted to be effective November 14, 1985, 10 TexReg 4288."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210127&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "210127",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "71",
                "label": "CREDITABLE SERVICE"
            },
            "rule": {
                "number": "§71.17",
                "label": "Credit for Unused Accumulated Leave"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210128&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "210128",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A cash balance group member may not receive credit for unused accumulated leave.(b) Unused accumulated leave is creditable only in the employee class of membership and only so long as the last day of employment occurs during the month in which the member dies or the member's retirement becomes effective.(c) Before the amount of service credit can be determined, an authorized state agency official must certify electronically or on a form prescribed by the system the amount of unused accumulated leave accrued by the member as of the last day of employment.(d) Eligible leave credit will become effective as service credit only after retirement or death. Subject to that limitation and upon receipt of a certification pursuant to subsection (c) of this section, the system shall grant any service credit to which a retiree is thereby entitled. An increase in the computation of an annuity because of leave credit shall be effective from the time of certification.(e) Leave creditable as provided in this section includes only earned vacation leave and sick leave. A member transferring TRS service to the system for the purpose of retirement will receive credit for leave as provided in this section only if the member holds a position in the employee class of membership in the system during the effective month of retirement. The percentage value of all service creditable in the employee class of membership shall not exceed 100%.",
            "sourceNote": "Source Note: The provisions of this §71.17 adopted to be effective November 23, 1989, 14 TexReg 5934; amended to be effective October 29, 1991, 16 TexReg 5847; amended to be effective April 20, 1994, 19 TexReg 2550; amended to be effective September 15, 1997, 22 TexReg 9004; amended to be effective January 9, 2000, 24 TexReg 12071; amended to be effective September 13, 2001, 26 TexReg 6953; amended to be effective June 10, 2014, 39 TexReg 4485; amended to be effective September 14, 2022, 47 TxReg 5497."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210128&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "210128",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "71",
                "label": "CREDITABLE SERVICE"
            },
            "rule": {
                "number": "§71.19",
                "label": "Transfer of Service between the Teacher Retirement System of Texas (TRS) and the Employees Retirement System of Texas (ERS)"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=167606&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "167606",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A cash balance group member may not transfer credit under this section.(b) Purpose. These rules are intended to implement the provisions of Tex. Gov't Code Chapter 805 concerning the transfer of credit between TRS and ERS and to provide a systematic method of funding the actuarial value of the annuity resulting from transferred service.(c) Forms.(1) Applications for transfer shall be made using forms prescribed by ERS.(2) ERS shall cooperate with TRS in an effort to make such application forms for ERS comparable to those used by TRS.(d) Notice.(1) A person who elects to transfer service credit pursuant to these rules must file the appropriate form to make such transfer not more than 90 days prior to the person's retirement effective date but not later than the effective date.(2) ERS shall notify TRS of the pending transfer not later than 30 days following the effective date.(e) Manner of transfer.(1) Service credit and assets shall be transferred through electronic and hard copy documentation pursuant to these rules, and ERS shall maintain records of such transfers permanently.(2) Any transfer of service credit to ERS shall reflect years of credit, average salary, periods of service, method of calculation, and the manner used to calculate the time period involved, including any military credit purchased.(3) Any transfer of service credit to ERS shall include specific data regarding the pre-tax and after-tax contributions by the person, interest owed, earned interest, and any other dollar amount which will be part of the transfer.(4) Assets to fund the portion of the annuity attributable to service with TRS shall be transferred to ERS pursuant to agreement with TRS.(5) Service transferred from TRS shall be established in an employee class account for the benefit of the member.(f) Transfer of funds. ERS and TRS agree on the following method of transferring funds. Each system shall certify on a monthly basis the total dollar amount of annuities paid by the system which is attributable to service transferred pursuant to Tex. Gov't Code Chapter 805. The amount certified shall exclude any portion of annuities paid consisting of post-retirement increases. Each system shall remit to the other system the amount certified within 30 days of receipt of such certification. It is recognized that adjustments will be made from month-to-month as a result of such things as administrative errors, the death of the annuitant or a beneficiary, return-to-work, and recovery from disability by an annuitant. The systems shall jointly agree on the administrative and accounting procedures to be established in order to ensure the transfer of funds pursuant to this section.(g) Purchase of refunded service.(1) A member of TRS who canceled membership in ERS by taking a refund of an individual account may repurchase the canceled service credit for the purpose of making a transfer at any time prior to retirement. Such persons do not have to become contributing members of ERS in order to purchase such canceled service credit.(2) A person who cancels membership in ERS by taking a refund of an individual account must meet the general requirements for reinstatement or purchase of service credit in ERS.(h) Military credit. Any transferred military service which would result in a member receiving service credit in excess of that permitted under ERS rules shall not be accepted.(i) Termination of membership. The transfer of ERS credit to TRS shall terminate membership in ERS and shall cancel all rights to benefits from ERS based on that service.(j) Service in the month following retirement. In accordance with rules adopted by the retirement systems under Tex. Gov't Code Chapter 805, as applicable, a retirement shall be canceled, service credit transfer canceled, and membership reinstated if, during the month following retirement, an ERS retiree who transferred service from TRS and retired pursuant to this chapter holds a position covered by the retirement system at which the retiree was last employed. A retirement shall be canceled and membership reinstated if a retiring member has a commitment from the member's present employer to be rehired. At the time of retirement, a retiring member must disclose to the retirement system any commitment to be rehired.",
            "sourceNote": "Source Note: The provisions of this §71.19 adopted to be effective September 2, 1993, 18 TexReg 5593; amended to be effective April 20, 1994, 19 TexReg 2550; amended to be effective December 31, 2003, 28 TexReg 11610; amended to be effective September 14, 2008, 33 TexReg 7749; amended to be effective June 10, 2014, 39 TexReg 4485; amended to be effective September 14, 2022, 47 TexReg 5497."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=167606&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "167606",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "71",
                "label": "CREDITABLE SERVICE"
            },
            "rule": {
                "number": "§71.23",
                "label": "Acceptance of Rollovers and Transfers from Other Plans"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=122726&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "122726",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Subject to procedures developed by the Employees Retirement System of Texas (ERS), ERS shall accept an eligible rollover distribution or a direct transfer of funds from another qualified plan or conduit or traditional IRA in payment of all or a portion of any deposit a member is permitted to make with ERS for credit for service. The procedures developed by ERS shall condition the acceptance of a rollover or transfer from another qualified plan or conduit or traditional IRA on the receipt from the other plan, or conduit or traditional IRA of information necessary to enable ERS to determine the eligibility of any transferred funds for tax-free rollover treatment or other treatment under federal income tax law.",
            "sourceNote": "Source Note: The provisions of this §71.23 adopted to be effective August 4, 1997, 22 TexReg 6940; amended to be effective June 10, 2014, 39 TexReg 4485."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=122726&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "122726",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "71",
                "label": "CREDITABLE SERVICE"
            },
            "rule": {
                "number": "§71.27",
                "label": "Certain Service Considered Solely to Establish Eligibility"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210129&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "210129",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Service to be considered for the sole purpose of determining eligibility to receive an annuity as provided by §814.104(c), Texas Government Code, must be verified by an authorized official of the entity for which the service is performed.(b) For the sole purpose of determining eligibility to receive a service retirement annuity under §814.104(a)(2), Texas Government Code, the retirement system may consider not more than 60 months of Texas governmental entity service that was documented with the system in accordance with §814.1042 (repealed) prior to January 1, 2006.",
            "sourceNote": "Source Note: The provisions of this §71.27 adopted to be effective January 9, 2000, 24 TexReg 12072; amended to be effective January 10, 2006, 31 TexReg 168."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210129&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "210129",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "71",
                "label": "CREDITABLE SERVICE"
            },
            "rule": {
                "number": "§71.29",
                "label": "Purchase of Additional Service Credit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210130&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "210130",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A cash balance group member may not establish service credit under this section.(b) An eligible member may establish equivalent membership service credit authorized by Tex. Gov't Code §813.513 as provided in this section. The provisions of §71.14 of this chapter do not apply to credit established under this section.(c) A member is eligible to establish credit under this section in the membership class in which the member holds a position if the member:(1) has 120 months of service credit for one or more periods of time during which the member held a position in a membership class and the required contributions were made;(2) is actively contributing to the system at the time credit is established; and(3) is not eligible to establish other credit or service.(d) An eligible member shall deposit with the system in a lump sum a contribution in the amount determined by the system to be the actuarial present value of the benefit attributable to the credit established under this section. The tables recommended by the actuaries and adopted by the board shall be used by the system to determine the actuarial present value. The 2009 additional service credit tables apply to service purchase calculations performed on or after September 1, 2009, and are those tables adopted by the board on February 24, 2009, based on assumptions adopted by the board on May 13, 2008. The 2010 additional service credit tables apply only to those employees hired by the state of Texas on or after September 1, 2009, as defined in §73.2 of this title. The 2010 additional service credit tables apply to service purchase calculations performed on or after September 1, 2010, and are those tables adopted by the board on February 23, 2010, based on legislative changes to the retirement plan effective September 1, 2009. The 2014 additional service credit tables apply to service purchase calculations performed on or after September 1, 2014, but before September 1, 2018, and are those tables adopted by the board on February 25, 2014, based on assumptions adopted by the board on February 26, 2013, and on legislative changes to the retirement plan effective September 1, 2013. For service purchase calculations performed prior to September 1, 2014, the previously adopted tables apply. The actuarial present value shall be based on:(1) the member's age on the date of the deposit required by this subsection;(2) the earliest date on which the member will become eligible to retire and receive a service retirement annuity after establishing credit under this section; and(3) the future employment, compensation, investment and retirement benefit assumptions recommended by the actuaries and adopted by the board.(e) Credit shall be established in increments of 12 months of credit, except that a member who may become eligible to retire by establishing fewer than 12 months of credit may establish the minimum number of months of credit necessary for the member to meet retirement eligibility.(f) A member who establishes credit under this section shall certify that the member is not eligible to establish other credit or service and shall waive all rights to establish such credit or service that the member had on the date of the deposit required by subsection (d) of this section. This subsection does not apply to service credit transferred as authorized by Tex. Gov't Code Chapter 805.(g) Credit established under this section may not be used to determine average monthly compensation for the purpose of computing an annuity.(h) A member who withdraws contributions and cancels credit established under this section may not reestablish such credit under Tex. Gov't Code §813.102 but may again establish credit as provided in this section.(i) The provisions of Tex. Gov't Code §813.503 do not apply to credit established under this section.(j) For a member establishing equivalent membership service credit authorized by Tex. Gov't Code §813.513 on or after September 1, 2018, the tables used to determine the actuarial present value of the service credit are those adopted by the board and in effect on the date the service credit is established, as adjusted from time to time as required by Tex. Gov't Code §815.105.",
            "sourceNote": "Source Note: The provisions of this §71.29 adopted to be effective January 8, 2002, 27 TexReg 273; amended to be effective June 9, 2009, 34 TexReg 3517; amended to be effective June 14, 2010, 35 TexReg 5041; amended to be effective June 10, 2014, 39 TexReg 4485; amended to be effective March 27, 2018, 43 TexReg 1875; amended to be effective September 14, 2022, 47 TexReg 5497."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210130&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "210130",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "71",
                "label": "CREDITABLE SERVICE"
            },
            "rule": {
                "number": "§71.31",
                "label": "Credit Purchase Option for Certain Waiting Period Service"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=71663&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "71663",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A cash balance group member may not establish service credit under this section.(b) An eligible employee class member may establish service credit for service performed during the waiting period as authorized by Tex. Gov't Code §813.514 and as provided in this section. The provisions of §71.14 of this chapter do not apply to service credit established under this section.(c) An employee class member is eligible to establish service credit under this section if the member:(1) has completed the waiting period;(2) has made a retirement contribution in accordance with Tex. Gov't Code §813.201; and(3) makes application for the establishment of service credit and payment of the required contributions in accordance with procedures developed by ERS.(d) An eligible member shall deposit with the system in a lump sum a contribution in the amount determined by the system to be the actuarial present value of the benefit attributable to the service credit established under this section. The tables recommended by the system's actuary and adopted by the board shall be used to determine the actuarial present value. The waiting period service credit tables are adopted by reference and made a part of this rule for all purposes. The 2009 waiting period service credit tables apply to service purchase calculations performed on or after September 1, 2009, and are those tables adopted by the board on February 24, 2009, based on assumptions adopted by the board on May 13, 2008. The 2010 waiting period service credit tables apply only to those employees hired by the state of Texas on or after September 1, 2009, as defined in §73.2 of this title. The 2010 waiting period service credit tables apply to service purchase calculations performed on or after September 1, 2010, and are those tables adopted by the board on February 23, 2010, based on legislative changes to the retirement plan effective September 1, 2009. The 2014 waiting period service credit tables apply to service purchase calculations performed on or after September 1, 2014, but before September 1, 2018, and are those tables adopted by the board on February 25, 2014, based on assumptions adopted by the board on February 26, 2013, and on legislative changes to the retirement plan effective September 1, 2013. For service purchase calculations performed prior to September 1, 2014, the previously adopted tables apply.(e) Actuarial present value shall be based on:(1) the member's age on the date of the deposit required by this subsection;(2) the earliest date on which the member will become eligible to retire and receive a service retirement annuity after establishing service credit under this section; and(3) the future employment, compensation, investment and retirement benefit assumptions recommended by the system's actuary and adopted by the board.(f) Waiting period service credit shall be established in increments of one month.(g) This section does not apply to service credit transferred as authorized by Tex. Gov't Code Chapter 805.(h) A member who withdraws contributions and cancels service credit established under this section may not reestablish such credit under Tex. Gov't Code §813.102 but may again establish credit only as provided by this section.(i) Credit established under this section may not be used to determine average monthly compensation for the purpose of computing an annuity.(j) For a member establishing service credit for service performed during the waiting period as authorized by Tex. Gov't Code §813.514 on or after September 1, 2018, the tables used to determine the actuarial present value of the service credit are those adopted by the board, as adjusted from time to time as required by Tex. Gov't Code §815.105, in effect on the date the service credit is established.",
            "sourceNote": "Source Note: The provisions of this §71.31 adopted to be effective March 10, 2004, 29 TexReg 2372; amended to be effective January 10, 2006, 31 TexReg 168; amended to be effective June 9, 2009, 34 TexReg 3517; amended to be effective June 14, 2010, 35 TexReg 5041; amended to be effective June 10, 2014, 39 TexReg 4485; amended to be effective June 6, 2016, 41 TexReg 4045; amended to be effective March 27, 2018, 43 TexReg 1875; amended to be effective September 14, 2022, 47 TexReg 5497."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=71663&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "71663",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "73",
                "label": "BENEFITS"
            },
            "rule": {
                "number": "§73.1",
                "label": "Deadline for Selecting Retirement Option"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210131&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "210131",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A retiring member must file a selection of a standard annuity or an optional allowance on or before the date of retirement, unless the system has previously issued written notice of an extension of the filing deadline. Failure to comply with this requirement will cancel the retirement application.(b) A retired member who requests a change of beneficiary designation as provided by §814.008, Texas Government Code, must designate a new beneficiary at the time the request is made. Failure to comply with this requirement will cancel the request. A retired member who has changed an annuity selection after retirement is not eligible to designate a new beneficiary as provided in this subsection.",
            "sourceNote": "Source Note: The provisions of this §73.1 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective January 9, 2000, 24 TexReg 12072."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210131&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "210131",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "73",
                "label": "BENEFITS"
            },
            "rule": {
                "number": "§73.2",
                "label": "Determination of Date of Hire for Retirement Benefit Eligibility"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3922&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "3922",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) For purposes of determining eligibility for retirement benefits, a person holding a position in the employee class of membership is considered to be hired before a date specified in a statute or rule if the person:(1) Is hired and begins working before the specified date in a position included in the employee class;(2) Establishes membership in the employee class by making a contribution to the system during the first payroll cycle after beginning work as specified in paragraph (1) or immediately after completing any applicable waiting period connected with the employment specified in paragraph (1); and(3) Complies with subsection (c) of this section.(b) For purposes of determining eligibility for retirement benefits, a person holding an office in the elected class of membership is considered to have taken office before a date specified in a statute or rule if the person:(1) Is elected or appointed to the office, qualifies for the office, and assumes the office before the specified date in a position included in the elected class;(2) Establishes membership in the elected class by making a contribution to the system during the first payroll cycle after satisfying the criteria specified in subsection (1) or immediately after completing any applicable waiting period connected with the office specified in subsection (1); and(3) Complies with subsection (c) of this section.(c) Once a person establishes eligibility for retirement benefits under subsection (a) or (b) of this section, in order to sustain such eligibility, the person must maintain membership in either the employee or elected class, or both the employee and elected classes, without interruption until retirement.",
            "sourceNote": "Source Note: The provisions of this §73.2 adopted to be effective March 15, 2010, 35 TexReg 2201; amended to be effective June 14, 2010, 35 TexReg 5041; amended to be effective June 10, 2014, 39 TexReg 4486; amended to be effective September 14, 2022, 47 TexReg 5497."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3922&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "3922",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "73",
                "label": "BENEFITS"
            },
            "rule": {
                "number": "§73.3",
                "label": "Time Retirement Becomes Effective"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=31273&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "31273",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A retirement commences at midnight on the effective date.",
            "sourceNote": "Source Note: The provisions of this §73.3 adopted to be effective September 21, 1981, 6 TexReg 3427."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=31273&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "31273",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "73",
                "label": "BENEFITS"
            },
            "rule": {
                "number": "§73.5",
                "label": "Service Retirement of Incompetent Member"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=138233&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "138233",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A qualified, court-appointed guardian of the member's person and estate may sign and file the required notice, select the retirement option, and complete all other forms for the member's retirement.",
            "sourceNote": "Source Note: The provisions of this §73.5 adopted to be effective September 21, 1981, 6 TexReg 3427."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=138233&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "138233",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "73",
                "label": "BENEFITS"
            },
            "rule": {
                "number": "§73.7",
                "label": "Service in the Month Following Retirement"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210132&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "210132",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In order to satisfy Internal Revenue Service requirements that a retirement is bona fide and results in a termination of employment, a retirement shall be canceled and membership reinstated:(1) If the member holds a position in the class from which he retired during the calendar month following retirement; or(2) If a retiring member has a commitment from his present employer to be rehired. At the time of retirement, a retiring member must disclose to the retirement system any commitment from his present employer to be rehired.(b) If the person attempting to retire establishes that the only service credited in the month after the proposed date of retirement was as the result of an oversight on the member's part or on the part of the employee's department, the member may petition the executive director for relief. The executive director may, for good cause, permit the retirement to be effective on the last day of the last month in which credit was established. The applicant must refund any annuity paid for a month prior to the new effective date of retirement.",
            "sourceNote": "Source Note: The provisions of this §73.7 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective September 14, 2008, 33 TexReg 7749."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210132&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "210132",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "73",
                "label": "BENEFITS"
            },
            "rule": {
                "number": "§73.11",
                "label": "Supplemental Retirement Program"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=31274&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "31274",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) For purposes of this section:(1) \"supplemental program\" is the program of retirement benefits for commissioned peace officers and custodial officers established by the Tex. Gov't Code §814.107;(2) \"regular program\" is the retirement program available to members of the employee class generally.(3) This section does not apply to a cash balance group member.(b) An age reduction factor is applied to a supplemental program benefit calculation if the member retires before age 50 as follows:(1) If the member was hired by the state of Texas prior to September 1, 2009, and retires on or after September 30, 2009, the member shall be subject to the age reduction factors adopted by the board on February 24, 2009, based on assumptions adopted by the board on May 13, 2008. For retirements prior to September 30, 2009, the previously adopted factors apply; or(2) If the member was hired by the state of Texas on or after September 1, 2009, and was not already a member of the retirement system on the date hired, then any reduction related to age shall be made in accordance with Tex. Gov't Code §814.1075.(c) Option factors for annuities, based on a retirement involving the supplemental program, are those applicable to the ages of the retiree and nominee at the time payments under each program are to begin.(d) No payment shall be required to establish service credit in the supplemental program unless payment would be required to establish that credit in the regular program.(e) Military service credit shall be creditable in the supplemental program only if, within 90 days of termination of covered employment, the member went into the military without intervening employment and the member resumed covered employment within 90 days of termination of military service.(f) An occupational disability retirement annuity is subject to increase pursuant to the supplemental program based on evidence satisfactory to the retirement system that the person's occupational disability makes the person incapable of substantial gainful activity solely because of the disability and is considered a total disability under federal social security law.(g) An annuity increase under subsection (f) of this section is not payable before the first month following the month in which the retirement system receives satisfactory evidence under subsection (f) of this section.(h) An adjustment under subsection (f) of this section shall include any reduction option factor applicable to a survivor benefit.",
            "sourceNote": "Source Note: The provisions of this §73.11 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective November 23, 1989, 14 TexReg 5934; amended to be effective January 10, 1991, 16 TexReg 42; amended to be effective December 13, 1991, 16 TexReg 6937; amended to be effective April 20, 1994, 19 TexReg 2550; amended to be effective January 5, 1996, 20 TexReg 11022; amended to be effective January 9, 2000, 24 TexReg 12072; amended to be effective September 13, 2001, 26 TexReg 6953; amended to be effective March 18, 2002, 27 TexReg 2058; amended to be effective June 9, 2009, 34 TexReg 3517; amended to be effective March 15, 2010, 35 TexReg 2201; amended to be effectiveSeptember 14, 2022, 47 TexReg 5497."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=31274&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "31274",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "73",
                "label": "BENEFITS"
            },
            "rule": {
                "number": "§73.13",
                "label": "Proportionate Retirement under Programs Administered by the Board"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=65078&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "65078",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Benefits shall be calculated as if retirement credit established in the two classes of service in the Employees Retirement System had been rendered in separate systems.(b) The combined service credit of a member who is retiring exclusively under programs administered by the board must meet the vesting period required for any class of service in the programs in which the member has retirement credit.(c) A member who has credit in the elective class and who retires with 10 or more years of service credit in the Employees Retirement System, exclusive of military service credit, may receive retirement benefits as an elective state official for a portion of the military service credit. The percentage of military credit to be considered elective service is derived by dividing the number of months of creditable service as an elective state official by 96 months.",
            "sourceNote": "Source Note: The provisions of this §73.13 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective September 15, 1997, 22 TexReg 9005."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=65078&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "65078",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "73",
                "label": "BENEFITS"
            },
            "rule": {
                "number": "§73.15",
                "label": "Proportionate Retirement--Program Benefits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=146323&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "146323",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Actuarial reductions for each class of service are those which would be used if all service from which the member has retired or is retiring was credited in that class.(b) A person retiring with less service than is required in the applicable formula to compute average salary shall have benefits based upon the average salary for the months for which credit was established.(c) The procedures to implement these principles are prescribed in the document entitled \"Computation of Proportional Retirement Benefits.\" This document, which is to be considered a part of this section for all purposes, may be obtained from the executive director, Employees Retirement System; P.O. Box 13207; Austin, Texas 78711-3207. The formulas apply only to computation of benefits in programs or systems in which the member does not meet the length-of-service requirement for retirements.",
            "sourceNote": "Source Note: The provisions of this §73.15 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective July 17, 1986, 11 TexReg 3106; amended to be effective January 9, 1987, 11 TexReg 5132; amended to be effective March 15, 1988, 13 TexReg 1105; amended to be effective July 11, 1999, 24 TexReg 5021."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=146323&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "146323",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "73",
                "label": "BENEFITS"
            },
            "rule": {
                "number": "§73.17",
                "label": "Disability Retirement--Eligibility"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=224697&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "224697",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Incapacity from the further performance of duty means that the member has demonstrably sought and been denied workplace accommodation of the disability in accordance with applicable law, and that the member is physically or mentally unable to continue to hold the position occupied and to hold any other position offering comparable pay. The education, training, and experience of the employee are to be considered when making this determination. \"Comparable pay\" means eighty (80) percent or more of the member's final state base pay prior to deductions for taxes or deferred compensation as provided or allowed by state and federal law; and it includes longevity and hazardous duty pay. Comparable pay may be adjusted by retirement system staff to account for realized state pay rate changes over time. The term excludes the monetary value of insurance and retirement benefits.(b) In addition to the periodic medical examinations provided for in Texas Government Code §814.208(a), the executive director may direct a disability retiree to undergo additional medical examinations and to provide additional information satisfactory to the retirement system relevant to determining whether or not the retiree remains incapacitated for the further performance of duty. Absent a showing of good cause, a disability retiree who fails to respond to the request in a timely manner may have his or her disability retirement benefits and associated health insurance benefits suspended until the retiree has fully complied with the request. If the retiree fails to comply with the request for one year from the date the information was first requested by the retirement system, then all disability retirement benefits shall be terminated.(c) A medical examination required by any provision of the Government Code, Title 8, Chapter 814, Subchapter C, shall be performed only by a medical doctor or a doctor of osteopathic medicine holding a license to practice medicine in Texas and in good standing, or who holds a similar license in good standing in another jurisdiction with licensing and disciplinary requirements substantially similar to Texas.",
            "sourceNote": "Source Note: The provisions of this §73.17 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective September 13, 2001, 26 TexReg 6953; amended to be effective May 3, 2006, 31 TexReg 3588; amended to be effective June 14, 2010, 35 TexReg 5041."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=224697&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "224697",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "73",
                "label": "BENEFITS"
            },
            "rule": {
                "number": "§73.21",
                "label": "Reduction Factor for Age and Retirement Option"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=224698&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "224698",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Actuarial assumptions, mortality tables, and reduction factors used for calculation of benefits first payable on or after September 1, 2018, are those adopted by the board, as adjusted from time to time as required by Tex. Gov't Code §815.105, and apply to forms and effective dates of annuities specified by the board. (b) The 1999 reduction factors for optional forms of retirement annuities apply to retirements effective on or after September 30, 1999, but prior to September 30, 2009, and are those factors adopted by the board on December 8, 1999, based on assumptions adopted by the board on December 9, 1998. The 1999 reduction factors apply to annuities first payable between January 1, 2000, and August 31, 2009. The 2009 reduction factors for optional forms of retirement annuities apply to retirements effective on or after September 30, 2009, but prior to September 1, 2014, and are those factors adopted by the board on February 24, 2009, based on assumptions adopted by the board on May 13, 2008. The 2014 reduction factors for optional forms of retirement annuities apply to retirements effective on or after September 1, 2014, but prior to September 1, 2018, and are those factors adopted by the board on February 25, 2014, based on assumptions adopted by the board on February 26, 2013, and further based on legislative changes to the retirement plan effective September 1, 2013. (c) The actuaries have developed reduction factors for early retirement or death in accordance with the mortality tables adopted by the board. The 2009 reduction factors for early retirement or death apply to retirements effective on or after September 30, 2009, but prior to September 1, 2010, and apply to deaths first reported to ERS on or after September 1, 2009, but prior to September 1, 2010, and are those factors adopted by the board on February 24, 2009, based on assumptions adopted by the board on May 13, 2008. The 2010 reduction factors for early retirement or death apply only to those employees hired by the state of Texas on or after September 1, 2009, as defined in §73.2 of this chapter. The 2010 reduction factors apply to retirements effective on or after September 30, 2010, but prior to September 1, 2014, and apply to deaths first reported to ERS on or after September 1, 2010, but prior to September 1, 2014, and are those factors adopted by the board on February 23, 2010, based on legislative changes to the retirement plan effective September 1, 2009. The 2014 reduction factors for early retirement or death apply to retirements effective on or after September 1, 2014, but prior to September 1, 2018, and deaths first reported to ERS on or after September 1, 2014, but prior to September 1, 2018, and are those tables adopted by the board on February 25, 2014, based on assumptions adopted by the board on February 26, 2013, and on legislative changes to the retirement plan effective September 1, 2013. (d) The 2000 reduction factors for the partial lump sum option apply to retirements effective on or after January 1, 2000, but prior to September 1, 2009, and are those factors adopted by the board on December 8, 1999, based on assumptions adopted by the board on December 9, 1998. The 2009 reduction factors for the partial lump sum option apply to retirements effective on or after September 30, 2009, but prior to September 1, 2014, and deaths first reported to ERS on or after September 1, 2009, but prior to September 1, 2014, and are those factors adopted by the board on February 24, 2009, based on assumptions adopted by the board on May 13, 2008. The 2014 reduction factors for the partial lump sum option apply to retirements effective on or after September 1, 2014, but prior to September 1, 2018, and are those factors adopted by the board on February 25, 2014, based on assumptions adopted by the board on February 26, 2013, and on legislative changes to the retirement plan effective September 1, 2013. (e) The 2005 reduction factors for standard nonoccupational disability retirements apply to disability retirement applications received by the system on or after September 1, 2005, for retirements effective prior to September 30, 2009, and are those factors adopted by the board on August 24, 2005, based on assumptions adopted by the board on December 10, 2003. The 2009 reduction factors for standard nonoccupational disability retirements apply to retirements effective on or after September 30, 2009, but prior to September 30, 2010, and are those factors adopted by the board on February 24, 2009, based on assumptions adopted by the board on May 13, 2008. The 2010 reduction factors for standard nonoccupational disability retirements apply only to those employees hired by the state of Texas on or after September 1, 2009, as defined in §73.2 of this chapter. The 2010 reduction factors for standard nonoccupational disability retirements apply to retirements effective on or after September 30, 2010, but prior to September 1, 2014, and are those factors adopted by the board on February 23, 2010, based on legislative changes to the retirement plan effective September 1, 2009. The 2014 reduction factors for standard nonoccupational disability retirements apply to retirements effective on or after September 1, 2014, but prior to September 1, 2018, and are those factors adopted by the board on February 25, 2014, based on assumptions adopted by the board on February 26, 2013, and on legislative changes to the retirement plan effective September 1, 2013.",
            "sourceNote": "Source Note: The provisions of this §73.21 adopted to be\r\neffective September 21, 1981, 6 TexReg 3427; amended to be effective\r\nApril 26, 1983, 8 TexReg 1217; amended to be effective January 11,\r\n1984, 8 TexReg 5533; amended to be effective April 18, 1984, 9 TexReg\r\n1894; amended to be effective December 14, 1987, 12 TexReg 4533; amended\r\nto be effective November 23, 1989, 14 TexReg 5934; amended to be effective\r\nJanuary 10, 1991, 16 TexReg 42; amended to be effective December 13,\r\n1991, 16 TexReg 6937; amended to be effective April 20, 1994, 19 TexReg\r\n2550; amended to be effective January 9, 2000, 24 TexReg 12072; amended\r\nto be effective September 15, 2005, 30 TexReg 5809; amended tobe effective\r\nJune 9, 2009, 34 TexReg 3517; amended to be effective March 15, 2010,\r\n35 TexReg 2201; amended to be effective June 14, 2010, 35 TexReg 5041;\r\namended to be effective June 10, 2014, 39 TexReg 4486; amended to\r\nbe effective March 27, 2018, 43 TexReg 1876; amended to be effective\r\nSeptember 14, 2022, 47 TexReg 5497; amended to be effective April\r\n16, 2025, 50 TexReg 2436."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=224698&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "224698",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "73",
                "label": "BENEFITS"
            },
            "rule": {
                "number": "§73.22",
                "label": "Increasing Annuity Option"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=167611&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "167611",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) This section governs the increasing annuity option described in Tex. Gov't Code § 814.110, which is also known as the \"self-funded increase option.\" (b) If a retiree selected an increasing annuity under Tex. Gov't Code § 814.110 prior to retirement, annuity payments shall increase by two percent (2%) each year, calculated annually on the anniversary of the retiree's original retirement. (c) If a retiree selected an increasing annuity together with an optional service retirement annuity described by Tex. Gov't Code § 814.108, the retiree shall receive the annual increase for the retiree's lifetime, and upon the retiree's death, the retiree's designated beneficiary shall continue to receive the annual increase during the beneficiary's lifetime.(d) If a retiree selected an increasing annuity together with an optional service retirement annuity described by Tex. Gov't Code § 814.108 and the retiree's designated beneficiary predeceases the retiree, the system shall recalculate the annuity. The annuity first shall be recalculated in accordance with Tex. Gov't Code § 814.108(d) and then shall be adjusted to account for the annual increase. The recalculated annuity shall be actuarially equivalent to the increasing annuity that the retiree would have received if the retiree had selected only an increasing annuity without the optional service retirement annuity. After the annuity is recalculated, the retiree shall continue to receive an annual increase based on the recalculated amount, in accordance with Tex. Gov't Code § 814.110 and this section, throughout the retiree's lifetime.",
            "sourceNote": "Source Note: The provisions of this §73.22 adopted to be\r\neffective April 16, 2025, 50 TexReg 2436."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=167611&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "167611",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "73",
                "label": "BENEFITS"
            },
            "rule": {
                "number": "§73.25",
                "label": "Payment to an Estate"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=125092&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "125092",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Payment due to an estate will be made upon receipt of a certified copy of one of the following:(1) letters testamentary which are issued to a person named executor or administrator of an estate;(2) an order admitting a will to probate as muniment of title;(3) an affidavit filed with the county court under the small estates provisions of Chapter 205, Texas Estates Code;(4) a judgment to declare heirship under the provisions of Chapter 202, Texas Estates Code.(b) If none of the requirements in subsection (a) of this section have been or will be obtained and the amount payable is $7,500 or less, then payment may be made to the estate of the decedent at his or her last known address or in care of a member of the decedent's family; or in the alternative, payment may be made in accordance with other documentation supplied by the heirs, provided the retirement system has reviewed and approved the documentation and obtained satisfactory releases from the heirs.",
            "sourceNote": "Source Note: The provisions of this §73.25 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective July 19, 1982, 7 TexReg 2549; amended to be effective February 6, 1984, 9 TexReg 488; amended to be effective September 15, 1997, 22 TexReg 9005; amended to be effective June 13, 2011, 36 TexReg 3596; amended to be effective June 10, 2014, 39 TexReg 4486."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=125092&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "125092",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "73",
                "label": "BENEFITS"
            },
            "rule": {
                "number": "§73.26",
                "label": "Beneficiary Lineage for Guaranteed Periodic Payments"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=121175&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "121175",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A member or retiree who selects an optional retirement annuity payable for a guaranteed period may, before or after retirement, designate one or more persons as primary beneficiaries to receive any remaining guaranteed periodic annuity payments if the member or retiree dies after retirement but before all guaranteed payments have been made. The member or retiree may also designate one or more alternate beneficiaries.(b) A member who selects a death benefit plan for the payment of a death benefit plan annuity for a guaranteed period may designate one or more primary beneficiaries to receive the death benefit annuity upon the death of the member. The member may also designate one or more alternate beneficiaries.(c) If any designated primary beneficiary is living at the time of the death of the retiree or of the member referred to in subsections (a) and (b) of this section, the primary beneficiary or beneficiaries will be entitled to receive the guaranteed periodic annuity payments or the death benefit plan annuity payments for the remainder of the guaranteed period.(d) If no designated primary beneficiary is living at the time of the death of the retiree or of the member referred to in subsections (a) and (b) of this section, the designated alternate beneficiary or beneficiaries will be entitled to receive the guaranteed periodic annuity payments or the death benefit plan annuity payments, as applicable, in place of the designated primary beneficiaries. However, if a designated primary beneficiary is living at the time of the death of the retiree or member, then an alternate beneficiary shall have no further right, title, or interest in any annuity payments.(e) If multiple primary beneficiaries are designated, upon the death of any one primary beneficiary, the remaining primary beneficiaries will share proportionately, based on the designated percentages, that portion of any remaining guaranteed annuity or death benefit plan annuity payments that was to have been paid to the beneficiary who died.(f) If a designated primary beneficiary or alternate beneficiary becomes entitled to guaranteed annuity or death benefit plan payments as described in this section, but dies before all of the guaranteed periodic payments have been paid, and there are no other designated beneficiaries then living, any remaining guaranteed periodic payments shall be made to the estate of the beneficiary and not to the estate of the deceased retiree or member. At the sole election of the system, the system may pay the estate of a deceased beneficiary a lump sum amount that is the actuarial present value of the remaining guaranteed annuity payments.(g) The simultaneous death provisions of Texas Government Code §814.006, and Texas Government Code §814.007, concerning a beneficiary who causes the death of a member or annuitant, apply to this section.",
            "sourceNote": "Source Note: The provisions of this §73.26 adopted to be effective June 20, 2006, 31 TexReg 4872."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=121175&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "121175",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "73",
                "label": "BENEFITS"
            },
            "rule": {
                "number": "§73.27",
                "label": "Payment of Retiree Lump-Sum Death Benefit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=167612&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "167612",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Upon receipt of a properly completed claim form, death certificate and other information that may be required to establish beneficiary status or heirship for the uncontested payment of a retiree lump-sum death benefit, the System will provide for the payment of the lump-sum death benefit by notifying the Comptroller of Public Accounts not later than the seventh day after receipt.",
            "sourceNote": "Source Note: The provisions of this §73.27 adopted to be effective September 15, 2005, 30 TexReg 5809."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=167612&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "167612",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "73",
                "label": "BENEFITS"
            },
            "rule": {
                "number": "§73.29",
                "label": "Spousal Consent Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=195560&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "195560",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The selection by a member of a service retirement annuity other than a joint and survivor annuity that pays benefits to the spouse of the member on the death of the member, is not effective unless the member's spouse consents to the selection or it is established to the satisfaction of the system that:(1) there is no spouse; or(2) the spouse cannot be located.(b) Should the spouse of the member be judicially declared incompetent, the consent required by this section shall be given by the spouse's legal guardian. The consent of a spouse who is incapable of giving his or her consent as required by this section may be given by a legal representative of the spouse only if the executive director or a person designated by the executive director determines:(1) that the spouse is incapable of giving his or her consent; and(2) the person or persons qualify as the legal representative of the spouse.(c) The consent required by this section must be in writing on a form prescribed by the Employees Retirement System of Texas and acknowledged before a notary public.(d) The provisions of this section apply only to service retirement annuities and proportionate retirement benefits.",
            "sourceNote": "Source Note: The provisions of this §73.29 adopted to be effective November 23, 1989, 14 TexReg 5934; amended to be effective January 9, 2000, 24 TexReg 12073; amended to be effective June 10, 2014, 39 TexReg 4486."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=195560&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "195560",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "73",
                "label": "BENEFITS"
            },
            "rule": {
                "number": "§73.31",
                "label": "Adjustment to Annuities"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=106621&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "106621",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Annuities with an effective date before September 1, 2001, that are based on service retirements, disability retirements, or deaths pursuant to the Government Code, Title 8, §§814.104, 814.107, 814.206, 814.207, 814.301, 814.302, or 814.305, shall be adjusted pursuant to the provisions of §45 of Senate Bill 292, 77th Legislature, 2001.(b) Any adjustment pursuant to this section must be made to all annuitants who are similarly situated.(c) This section supersedes conflicting portions of existing plan provisions.(d) Adjustments to annuities under this section must be in compliance with the Internal Revenue Code of 1986, §401(a) and the Government Code, Title 8, §811.006.(e) Annuities based on service credited under Government Code, Title 8, §813.401, shall be adjusted to reflect the plan design changes provided by §814.105 that are effective September 1, 2001.",
            "sourceNote": "Source Note: The provisions of this §73.31 adopted to be effective January 1, 1992, 16 TexReg 7538; amended to be effective March 15, 1996, 21 TexReg 1774; amended to be effective September 15, 1997, 22 TexReg 9005; amended to be effective January 8, 2002, 27 TexReg 274; amended to be effective June 11, 2019, 44 TexReg 2848."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=106621&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "106621",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "73",
                "label": "BENEFITS"
            },
            "rule": {
                "number": "§73.35",
                "label": "Supplemental Payment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20099&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "20099",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The supplemental payment authorized in the Government Code, §814.603(a), will be implemented in accordance with the provisions of the Government Code, §814.603(b) and §811.006.",
            "sourceNote": "Source Note: The provisions of this §73.35 adopted to be effective January 25, 1995, 20 TexReg 151; amended to be effective September 15, 1997, 22 TexReg 9005; amended to be effective March 18, 1999, 24 TexReg 1815; amended to be effective December 31, 2003, 28 TexReg 11611."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20099&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "20099",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "73",
                "label": "BENEFITS"
            },
            "rule": {
                "number": "§73.37",
                "label": "Plan Limitations"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=26786&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "26786",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "For a person who first becomes a member of the retirement system after August 31, 1996, the person's compensation for the purposes of the retirement system may not exceed the limit imposed by §401(a)(17) of the Internal Revenue Code of 1986 (26 USC §401(a)(17)), as adjusted by the commissioner of the internal revenue for cost of living increases in accordance with that provision. This limit does not apply to a person who first became a member of the retirement system before September 1, 1996.",
            "sourceNote": "Source Note: The provisions of this §73.37 adopted to be effective August 5, 1996, 21 TexReg 6896."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=26786&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "26786",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "73",
                "label": "BENEFITS"
            },
            "rule": {
                "number": "§73.39",
                "label": "One-Time Increase to Certain Annuitants"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=71556&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "71556",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Pursuant to the authority granted the Board of Trustees in §32, Senate Bill 1231, Acts of the 74th Texas Legislature, annuities based on service credited in the employee class of membership for retirements or deaths that occur after August 31, 1995, and before September 1, 1996, shall be increased  by 12 1/2%. This increase shall apply to the first payment payable after the first anniversary of the effective date of the retirement.",
            "sourceNote": "Source Note: The provisions of this §73.39 adopted to be effective September 26, 1996, 21 TexReg 8953."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=71556&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "71556",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "73",
                "label": "BENEFITS"
            },
            "rule": {
                "number": "§73.42",
                "label": "Partial Lump Sum Option for Death Benefit Plan Beneficiaries"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=120423&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "120423",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A person eligible to receive a death benefit annuity, or to select a death benefit plan, as provided by Subchapter D, Chapter 814, Texas Government Code, may select a partial lump sum distribution in the same manner as if the deceased member had made the selection. The provisions of §814.1082, Texas Government Code, governing payment of a partial lump sum distribution to a member, apply to a beneficiary selecting a partial lump sum distribution.",
            "sourceNote": "Source Note: The provisions of this §73.42 adopted to be effective January 9, 2000, 24 TexReg 12073."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=120423&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "120423",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "73",
                "label": "BENEFITS"
            },
            "rule": {
                "number": "§73.43",
                "label": "Deduction from Annuity for Certain Membership Fees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=167613&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "167613",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A person who receives an annuity from the Employees Retirement System of Texas (System) may authorize, in the manner specified by the System, one or more deductions from the person's monthly annuity to pay membership fees in a state employee organization as provided by Texas Government Code §814.009.(b) An organization that meets the certification requirement specified in Texas Government Code §814.009(a)(2) must certify to the System that the requirement has been met before participating in the membership fee deduction program and at such other times as may be determined by the System.(c) The System may provide to a state employee organization such identifying information, as the System considers necessary, to properly identify a person who elects to participate in the membership fee deduction program.(d) The System is not liable or responsible for any damages or consequences resulting from a person's authorization or cancellation of a deduction under this section. A person who disputes any aspect of an authorization or cancellation must seek resolution through the applicable state employee organization.",
            "sourceNote": "Source Note: The provisions of this §73.43 adopted to be effective July 6, 2005, 30 TexReg 3877."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=167613&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "167613",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "73",
                "label": "BENEFITS"
            },
            "rule": {
                "number": "§73.45",
                "label": "Overpayment or Improper Payment of Benefits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197588&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197588",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "An individual who receives an overpayment or an improper payment of a benefit from the retirement system may be liable for the amount of the overpayment or improper payment, plus interest, accruing at a rate of five percent per annum beginning on the 30th day after written notice by ERS of the overpayment or improper payment. ERS may, in its discretion, decline to charge interest under this rule if the overpayment was due to an error by ERS, or if the cost of calculating, assessing and collecting the interest may reasonably exceed the value of the interest.",
            "sourceNote": "Source Note: The provisions of this §73.45 adopted to be effective June 10, 2014, 39 TexReg 4486."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197588&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197588",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "73",
                "label": "BENEFITS"
            },
            "rule": {
                "number": "§73.47",
                "label": "Assignment of Death Benefit for Funeral Services"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210134&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "210134",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Notwithstanding any other rule, a designated beneficiary of a System member or retiree may, under Sections 814.404 and 814.504, Texas Government Code, assign a death benefit otherwise payable to the beneficiary only to the extent permitted by those statutes.(b) An assignment under this section must be made in accordance with and on a form promulgated by the System, and the System has sole discretion to determine if the assignment is valid and complies with applicable law.(c) In the event that a System member or retiree has designated multiple beneficiaries, any assignment under this section applies only to the share of the benefit to which an individual beneficiary making the assignment is determined by the System to be eligible. The System may rely on the approved beneficiary designation form on file with the System in making such a determination.",
            "sourceNote": "Source Note: The provisions of this §73.47 adopted to be effective December 30, 2019, 44 TexReg 8331."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210134&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "210134",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "73",
                "label": "BENEFITS"
            },
            "rule": {
                "number": "§73.49",
                "label": "Uniformed Services Employment and Reemployment Rights Act"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20098&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "20098",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "To the extent that the Uniformed Services Employment and Reemployment Rights Act (USERRA) applies to system members, a member:(1) Shall be entitled to contributions, benefits, and credited service for the period of qualified military service to the extent required by USERRA; Internal Revenue Code §414(u); and effective January 1, 2007, Internal Revenue Code §401(a)(37); and(2) May claim service credit for military service not previously established by paying a contribution for each month of service credit in an amount equal to the greater of:(A) The amount that the member contributed for the first full month of membership service that is after the member's date of release from active military duty and that is credited in the retirement system; or(B) $18.",
            "sourceNote": "Source Note: The provisions of this §73.49 adopted to be effective September 14, 2022, 47 TexReg 5497."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20098&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "20098",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "74",
                "label": "QUALIFIED DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§74.1",
                "label": "Purpose"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=71659&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "71659",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "This chapter describes the process and procedure for the implementation of a qualified domestic relations order.",
            "sourceNote": "Source Note: The provisions of this §74.1 adopted to be effective November 23, 1989, 14 TexReg 5934."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=71659&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "71659",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "74",
                "label": "QUALIFIED DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§74.3",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20102&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "20102",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Alternate payee--A spouse, former spouse, child, or other dependent of a member or retiree who is recognized by a domestic relations order as having a right to receive all or a portion of the benefits payable by the system with respect to such member or retiree.(2) Benefits or benefits payable with respect to a member or retiree--Any annuity, partial lump sum distribution, or return of contributions authorized by the program provisions.(3) Board of trustees--The board of trustees of the Employees Retirement System of Texas.(4) Domestic relations order--Any judgment, decree, or order, including approval of a property settlement agreement, which relates to the provision of child support, alimony payments, or marital property rights to a spouse, former spouse, child, or other dependent of a member or retiree, and is made pursuant to a domestic relations law, including a community property law of the State of Texas or of another state.(5) Executive director--The executive director of the Employees Retirement System of Texas.(6) Program or program provisions--The program of payments of benefits, as defined in this section, and as established by the statutes, rules, procedures, and policies applicable to the system.(7) Qualified domestic relations order--A domestic relations order which creates or recognizes the existence of an alternate payee's right, or assigns to an alternate payee the right, to receive all or a portion of the benefits payable with respect to a member or retiree under the system, which directs the system to disburse benefits to the alternate payee, and which meets the requirements of Texas Government Code Ann. §804.003.(8) System--The Employees Retirement System of Texas, the Judicial Retirement System of Texas Plan I, and the Judicial Retirement System of Texas Plan II, administered by the board of trustees.",
            "sourceNote": "Source Note: The provisions of this §74.3 adopted to be effective November 23, 1989, 14 TexReg 5934; amended to be effective January 9, 2000, 24 TexReg 12073."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20102&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "20102",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "74",
                "label": "QUALIFIED DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§74.5",
                "label": "Antialienation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=144992&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "144992",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The Government Code, Title 8, §§811.005, 831.004, and 836.004, shall apply to the creation, assignment, recognition, or enforcement of a right to any benefit payable with respect to a member or retiree of the system to which the section applies pursuant to a domestic relations order unless the order is determined to be a qualified domestic relations order.",
            "sourceNote": "Source Note: The provisions of this §74.5 adopted to be effective November 23, 1989, 14 TexReg 5934."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=144992&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "144992",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "74",
                "label": "QUALIFIED DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§74.7",
                "label": "Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=144993&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "144993",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A domestic relations order is a qualified domestic relations order only if such order:(1) clearly specifies the name, and last known mailing address, if any, of the member or retiree and of each alternate payee covered by the order. Although the social security number of the member or retiree and each alternate payee is not required to be specified in the domestic relations order, the social security number or other valid tax identification number acceptable to the system must be provided by the member or retiree and each alternate payee to the system before the domestic relations order is determined by the system to be a qualified domestic relations order;(2) clearly specifies the amount or percentage of the member's or retiree's benefits to be paid by the system to each such alternate payee or the manner in which such amount or percentage is to be determined;(3) clearly specifies the number of payments or the period to which such order applies;(4) clearly specifies that such order applies to the system;(5) does not require the system to provide any type or form of benefit or any option not otherwise provided under the program;(6) does not require the system to provide increased benefits determined on the basis of actuarial value;(7) does not require the payment of benefits to an alternate payee which are required to be paid to another alternate payee under another order previously determined to be a qualified domestic relations order;(8) does not require the payment of benefits to an alternate payee before the retirement of a member, the distribution of a withdrawal of contributions to a member, or other distribution to a member or retiree required by law;(9) provides for a proportional reduction of the amount awarded to an alternate payee in the event of the retirement of the member before normal retirement age;(10) does not purport to require the designation of a particular person as the recipient of benefits in the event of a member's or annuitant's death;(11) does not purport to require the selection of a particular benefit payment;(12) provides clearly for each possible benefit distribution under program provisions;(13) does not require any action on the part of the system contrary to its program provisions other than the direct payment of the benefit awarded to an alternate payee;(14) does not make the award of an interest contingent on any condition other than those conditions resulting in the liability of the system for payments under its program provisions;(15) does not purport to award any future benefit increases that are provided or required by the legislature; and(16) provides for a proportional reduction of the amount awarded to an alternate payee in the event that benefits available to the retiree or member are reduced by law.",
            "sourceNote": "Source Note: The provisions of this §74.7 adopted to be effective November 23, 1989, 14 TexReg 5934; amended to be effective March 15, 2010, 35 TexReg 2201."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=144993&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "144993",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "74",
                "label": "QUALIFIED DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§74.9",
                "label": "Determination"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20100&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "20100",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Action on a domestic relations order shall be taken in accordance with the provisions of this section.(1) The executive director or executive director's designee has the exclusive authority to determine whether a domestic relations order is a qualified domestic relations order. Upon receipt of a certified copy of a domestic relations order, the executive director or executive director's designee shall determine whether such order is a qualified domestic relations order and shall notify the member or retiree and each alternate payee of the determination.(A) If the order is determined to be a qualified domestic relations order, benefits shall be paid in accordance with the order.(B) If the order is determined not to be a qualified domestic relations order, the member or retiree or any alternate payee named in the order may petition the court which issued the order to amend the order so that it will be qualified.(2) A determination by the executive director or executive director's designee that an order is or is not a qualified domestic relations order is a final decision by the system. No appeal to the board of trustees is authorized. However, a member, retiree or alternate payee adversely affected by a determination of the executive director or executive director's designee must file a motion for reconsideration with the executive director no later than 20 days after the date the party is given notice of such determination if the party wishes to contest the determination.(3) During any period in which the issue of whether a domestic relations order is a qualified domestic relations order is being determined, the system shall, if possible, separately account for the amounts, in this section referred to as the segregated amounts, which would have been payable to the alternate payee or alternate payees during such period if the order had been determined to be a qualified domestic relations order.(4) If a domestic relations order is determined to be a qualified domestic relations order, then the system shall pay the segregated amounts without interest to the alternate payee or alternate payees entitled thereto and shall thereafter pay benefits pursuant to the order.(5) If a domestic relations order is determined not to be a qualified domestic relations order or if within 18 months of the date a domestic relations order is received by the system the issue as to whether such order is a qualified domestic relations order is not resolved, then the system shall pay the segregated amounts without interest and shall thereafter pay benefits to the person or persons who would have been entitled to such amounts if there had been no order.(6) All determinations made regarding a domestic relations order shall be prospective only, and the system shall not be required to retroactively segregate, approve a division of benefits, or pay benefits pursuant to a domestic relations order prior to the system's receipt of a domestic relations order that is determined to be qualified. Any determination that an order is a qualified domestic relations order which is made after the close of the 18 month period shall be applied prospectively only.",
            "sourceNote": "Source Note: The provisions of this §74.9 adopted to be effective November 23, 1989, 14 TexReg 5934; amended to be effective March 15, 2010, 35 TexReg 2201."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20100&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "20100",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "74",
                "label": "QUALIFIED DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§74.11",
                "label": "Alternate Payments"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201091&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201091",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Optional payments for alternate payees pursuant to a qualified domestic relations order may be made as follows.(1) In lieu of paying an alternate payee the interest awarded by a qualified domestic relations order, the system, at its sole discretion, may pay the alternate payee an amount that is the actuarial equivalent of the interest in form of:(A) an annuity in equal monthly installments for the life of the alternate payee; or(B) a lump sum.(2) If the alternate payee is paid pursuant to this section, the system shall be entitled to rely on a beneficiary designation or benefit option selection made or changed pursuant to its program provisions without regard to any domestic relations order.",
            "sourceNote": "Source Note: The provisions of this §74.11 adopted to be effective November 23, 1989, 14 TexReg 5934."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201091&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201091",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "75",
                "label": "HAZARDOUS PROFESSION DEATH BENEFITS"
            },
            "rule": {
                "number": "§75.1",
                "label": "Filing of Claims"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=211399&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "211399",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Claims for benefits under Texas Government Code, Chapter 615, may be initiated by the deceased employee's department, any applicant for benefits, if an adult, or by the representative of any minor children for whom benefits are being claimed.(b) No claim for benefits on behalf of a child born after the death of the law enforcement officer or fire fighter will be paid, unless it is accompanied by a certificate of the attending physician that the child was conceived during the decedent's lifetime.(c) The following documents or copies of the documents shall be submitted in an application for benefits under Texas Government Code, Chapter 615, unless the executive director or designee waives their submission:(1) a sworn statement from the person making the claim giving the date of death, the name and address of the surviving spouse, if there is one, and the names, addresses, and birth dates of all surviving children of the decedent. If the decedent left no surviving spouse or children, the names and addresses of surviving parents of the decedent shall be provided. The names and addresses of any persons caring for minors who may be eligible for benefits shall be given;(2) a certified copy of the death certificate;(3) a certified copy of the autopsy report, only if requested by the system;(4) a copy of the marriage certificate showing marriage between the surviving spouse and the deceased;(5) a certified copy of the birth certificate of each surviving child of the deceased;(6) affidavits from any witnesses detailing the facts of the fatality;(7) certified copies of any investigative reports;(8) a sworn statement from the employer or authorized representative of the department detailing the facts and circumstances of the fatality, and any information relied upon in making the sworn statement. The employer's or department representative's sworn statement must also include facts showing that, at the time of the fatal injury, the deceased held a position covered by the terms of Texas Government Code, Chapter 615, and that the death resulted from a personal injury sustained in the line of duty, as provided by Government Code §615.021;(9) a copy of the decedent's birth certificate, if benefits are being claimed for parents;(10) a certification from the appropriate authority as follows:(A) if the decedent was a paid law enforcement officer, as defined in Texas Government Code, §615.003(1), a certification from the Texas Commission on Law Enforcement Officer Standards and Education that the decedent was a commissioned peace officer certified by that commission;(B) if the decedent was a paid fireman, as defined in Texas Government Code, §615.003(10) or §615.003(11), a certification from the Commission on Fire Protection Personnel Standards and Education that the decedent was certified by that commission, or a certification from the head of the state agency or political or legal subdivision of the state for whom the decedent worked that aircraft crash and rescue fire fighting were the decedent's principal duties at the time of his or her death;(C) if the decedent was a member of an organized volunteer fire department, as defined in Texas Government Code, §615.003(12), a certification from the head of the organized volunteer fire department that the decedent was a member of an organized volunteer fire department that conducts a minimum of two drills each month, with each drill being at least two hours long, and decedent rendered fire fighting services without remuneration;(D) if the decedent was a paid probation officer, as defined in Texas Government Code, §615.003(2), a certification from the district judge or district judges who appointed the decedent or for whom the decedent worked that the decedent had the qualifications and duties set out in the Texas Code of Criminal Procedure, Article 42.12, §10, 1965, as amended;(E) if the decedent was a paid parole officer, as defined in Texas Government Code, §615.003(3), a certification from the executive director of the Board of Pardons and Paroles that the decedent was an officer of the division of parole supervision and had the qualifications and duties set out in the Texas Code of Criminal Procedure, Article 42.12, §§26-29, 1965, as amended;(F) if the applicant alleges that the decedent was within the protected class defined as supervisory personnel in a county jail in Texas Government Code, §615.003(7), a certification by the sheriff that the decedent was appointed as jailer or guard of a county jail and performed a security, custody, or supervisory function over the admittance, confinement, or discharge of prisoners, and a certification from the Texas Commission on Law Enforcement Officer Standards and Education that the decedent was certified by that commission;(G) if the applicant alleges that the decedent was within the protected class defined as performing emergency medical services or operation of an ambulance in Texas Government Code, §615.003(13), a certification by the Texas Department of Health that the decedent was certified as at least an emergency care attendant;(H) if the applicant alleges that the decedent was within the protected class defined as a chaplain in Texas Government Code, §615.003(14), a certification by the firefighting unit, law enforcement agency, Texas Department of Criminal Justice, or a political subdivision of this state that the decedent was employed or formally designated as a chaplain.(11) all newspaper or other media accounts, if any, of the fatality;(12) a copy of the income tax return filed by the decedent in the year prior to death, if benefits are being claimed for surviving children; and(13) copies of all documents submitted by or on behalf of the decedent or the decedent's beneficiary and all notices of decisions related to a workers' compensation claim, if a workers' compensation claim has been made related to the illness or injury that resulted in the decedent's death.(d) The executive director or designee may require any additional information or affidavits as are necessary to establish the validity of the claim.(e) Payment on behalf of a minor child will be made only to a surviving natural parent with custody of the child, to a surviving adoptive parent with custody of the child, or to a court-appointed guardian of the child's estate.",
            "sourceNote": "Source Note: The provisions of this §75.1 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective September 12, 1985, 10 TexReg 3324; amended to be effective April 20, 1994, 19 TexReg 2551; amended to be effective September 15, 1997, 22 TexReg 9006; amended to be effective March 18, 2002, 27 TexReg 2058; amended to be effective December 31, 2003, 28 TexReg 11611; amended to be effective May 29, 2005, 30 TexReg 3021; amended to be effective December 26, 2013, 38 TexReg 9373; amended to be effective September 8, 2020, 45 TexReg 6238."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=211399&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "211399",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "75",
                "label": "HAZARDOUS PROFESSION DEATH BENEFITS"
            },
            "rule": {
                "number": "§75.2",
                "label": "Additional Benefit Claims"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201093&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201093",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In addition to the documents required under §75.1 of this chapter, the following documents shall be submitted in an application for benefits under Tex. Gov't Code Chapter 615, Subchapter F, unless the executive director or the executive director's designee waives their submission:(1) a sworn statement from the person making the claim that:(A) the decedent, on the date of death, was not receiving and was not eligible to receive an annuity under an employee retirement plan;(B) the surviving spouse, if any, has not remarried;(C) the surviving spouse, if any, is not retired and is not eligible to retire under an employee retirement plan; and(D) the surviving spouse, if any, is not receiving and is not eligible to receive social security benefits; and(2) an itemized statement of funeral expenses incurred, if the application includes a claim for payment of funeral expenses.(b) If the decedent died before September 1, 2022, then except as provided by subsection (e) of this section, an annuity payable to a surviving spouse who is eligible for benefits under Tex. Gov't Code Chapter 615, Subchapter F, shall be computed as provided by Tex. Gov't Code §814.105 as if the decedent, on the date of death:(1) was employed by the Texas Department of Public Safety at the lowest salary provided by the General Appropriations Act for a peace officer position, if the decedent held a peace officer position on the date of death, or by the Texas Department of Criminal Justice at the lowest salary provided by the General Appropriations Act for a custodial personnel position, if the decedent held a custodial personnel position on the date of death;(2) had accrued 10 years of service credit in the applicable position; and(3) was eligible to retire without regard to any age requirement.(c) If the decedent died on or after September 1, 2022, then except as provided by subsection (e) of this section, a surviving spouse who is eligible for benefits under Tex. Gov't Code Chapter 615, Subchapter F, is entitled to receive the greater of an annuity computed as provided by subsection (b) of this section or an annuity computed as provided by Tex. Gov't Code §820.053 as if the decedent, on the date of death:(1) was employed by the Texas Department of Public Safety at the lowest salary provided by the General Appropriations Act for a peace officer position, if the decedent held a peace officer position on the date of death, or by the Texas Department of Criminal Justice at the lowest salary provided by the General Appropriations Act for a custodial personnel position, if the decedent held a custodial personnel position on the date of death;(2) had accrued 10 years of service credit in the applicable position;(3) was eligible to retire without regard to any age requirement; and(4) was not eligible for the additional benefit provided by Tex. Gov't Code §820.053(a)(2)(B).(d) For purposes of subsection (c) of this section, the system shall:(1) include gain sharing interest in the computation of an annuity under Tex. Gov't Code §820.053;(2) determine which annuity computation would result in the greater annuity at the time the annuity is first paid; and(3) allow the surviving spouse to reject the system's determination and elect to receive the lesser annuity by providing written notice of the election, which shall be irrevocable, to the system before any payment is made.(e) In lieu of an amount computed under subsection (b) or (c) of this section, an annuity shall be paid in the amount the decedent would have been eligible to receive under the decedent's employee retirement plan if the decedent had been eligible to retire at the age and with the service attained on the last day of the month of the decedent's death if:(1) the person making the claim requests payment of the amount computed under this subsection before any payment computed under subsection (b) or (c) of this section is made;(2) an authorized representative of the employee retirement plan in which the decedent was a participant certifies the amount computed under this subsection; and(3) the amount computed under this subsection is greater than the amounts computed under subsections (b) and (c) of this section.(f) The reduction factors applied to a death benefit plan administered by the system shall be applied in the same manner to an annuity computed under subsection (b) or (c) of this section.(g) As a condition of receipt of an annuity under Tex. Gov't Code Chapter 615, Subchapter F, an eligible surviving spouse shall agree to annually certify the spouse's eligibility under subsection (a)(1)(B) - (D) of this section and to notify the system of any change in circumstances affecting the spouse's continued eligibility. Failure to comply with this requirement or to provide the agreed certification is a basis for suspension of annuity payments until compliance occurs.(h) The amount reimbursed for funeral expenses under Tex. Gov't Code Chapter 615, Subchapter F, shall not exceed the lesser of $6,000 or the amount of funeral expenses actually incurred.(i) The executive director or the executive director's designee may require additional information or affidavits as necessary to establish the validity of any claim under this section.",
            "sourceNote": "Source Note: The provisions of this §75.2 adopted to be effective September 13, 2001, 26 TexReg 6954; amended to be effective March 18, 2002, 27 TexReg 2059; amended to be effective September 8, 2020, 45 TexReg 6238; amended to be effective December 29, 2022, 47 TexReg 8735."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201093&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201093",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "75",
                "label": "HAZARDOUS PROFESSION DEATH BENEFITS"
            },
            "rule": {
                "number": "§75.3",
                "label": "Adjustments to Payments"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=224699&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "224699",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Beginning on September 1, 2020, and on each September 1 thereafter, any lump sum payment payable to eligible survivors under Section 615.022(d), Texas Government Code, shall be adjusted annually by an amount equal to the percentage change in the Consumer Price Index for All Urban Consumers for the previous calendar year. The annual adjustment will be an amount as reported by the system's consulting actuary and approved by the executive director.",
            "sourceNote": "Source Note: The provisions of this §75.3 adopted to be effective September 8, 2020, 45 TexReg 6238."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=224699&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "224699",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "76",
                "label": "CASH BALANCE BENEFIT"
            },
            "rule": {
                "number": "§76.1",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210136&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "210136",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "For purposes of this chapter: (1) \"Cash balance benefit\" means the retirement benefit established by Tex. Gov't Code Chapter 820 or Chapter 840A. (2) \"Annuitant\" means an individual who is receiving a cash balance annuity established by Tex. Gov't Code Chapter 820 or Chapter 840A, including a retiree, a beneficiary, and an alternate payee under a Qualified Domestic Relations Order.",
            "sourceNote": "Source Note: The provisions of this §76.1 adopted to\r\nbe effective September 14, 2022, 47 TexReg 5498; amended to be effective\r\nApril 16, 2025, 50 TexReg 2436."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210136&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "210136",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "76",
                "label": "CASH BALANCE BENEFIT"
            },
            "rule": {
                "number": "§76.2",
                "label": "Custodial Officer Service"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=224700&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "224700",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "To be creditable as custodial officer service, service performed by a cash balance group member must be performed as a parole officer or caseworker or must meet the requirements of the rules adopted under Tex. Gov't Code §813.506(a) and be performed by persons in one of the job categories described by Tex. Gov't Code §813.506(b).",
            "sourceNote": "Source Note: The provisions of this §76.2 adopted to be effective September 14, 2022, 47 TexReg 5498."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=224700&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "224700",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "76",
                "label": "CASH BALANCE BENEFIT"
            },
            "rule": {
                "number": "§76.3",
                "label": "Proportionate Service Purchases"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=224701&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "224701",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An individual participating in the Proportionate Retirement Program under Tex. Gov't Code Chapter 803 who did not establish and maintain ERS membership prior to September 1, 2022, may purchase previously canceled service credit in an amount equal to withdrawn member contributions but only for the purpose of establishing service credit and making a deposit under Tex. Gov't Code Chapter 820, including Section 820.032(c)(2) regarding eligibility to participate in the State Employees Group Benefits Program. The system shall receive an employer matching contribution for any individual purchasing previously canceled service credit under this section. (b) Tex. Gov't Code Chapter 840A does not authorize the purchase of service credit previously canceled in the Judicial Retirement System of Texas Plan Two. An individual who is a cash balance group member under Chapter 840A may only purchase service credit previously canceled in another retirement system under Tex. Gov't Code §803.202 or §803.203.",
            "sourceNote": "Source Note: The provisions of this §76.3 adopted to be\r\neffective September 14, 2022, 47 TexReg 5498; amended to be effective\r\nApril 16, 2025, 50 TexReg 2436."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=224701&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "224701",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "76",
                "label": "CASH BALANCE BENEFIT"
            },
            "rule": {
                "number": "§76.4",
                "label": "Optional Retirement Program"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=224702&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "224702",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "For the sole purpose of determining eligibility to receive a cash balance retirement annuity under Tex. Gov't Code Chapter 820, the system shall consider service performed as a participant in the optional retirement program under Tex. Gov't Code Chapter 830 as if it were service for which credit is established in the system. Each full or partial month of service shall count as one-twelfth of a year of creditable service.",
            "sourceNote": "Source Note: The provisions of this §76.4 adopted to be\r\neffective September 14, 2022, 47 TexReg 5498; amended to be effective\r\nApril 16, 2025, 50 TexReg 2436."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=224702&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "224702",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "76",
                "label": "CASH BALANCE BENEFIT"
            },
            "rule": {
                "number": "§76.5",
                "label": "Factor Tables"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=224703&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "224703",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The board shall adopt actuarial assumptions, mortality tables, reduction factors, and other factors applicable to cash balance group members and may adjust them from time to time as provided by Tex. Gov't Code §815.105 or §840.005.",
            "sourceNote": "Source Note: The provisions of this §76.5 adopted to be\r\neffective September 14, 2022, 47 TexReg 5498; amended to be effective\r\nApril 16, 2025, 50 TexReg 2436."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=224703&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "224703",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "76",
                "label": "CASH BALANCE BENEFIT"
            },
            "rule": {
                "number": "§76.9",
                "label": "Annual Interest Rate"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=224704&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "224704",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The annual interest rate established by Tex. Gov't Code §820.102 or §840A.103 shall be applied to a cash balance group member's accumulated account balance, adjusted for compounding, at the beginning of each month before any contribution is deposited. (b) The system shall not recalculate any annuity based on annual interest.",
            "sourceNote": "Source Note: The provisions of this §76.9 adopted to be\r\neffective September 14, 2022, 47 TexReg 5498; amended to be effective\r\nApril 16, 2025, 50 TexReg 2436."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=224704&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "224704",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "76",
                "label": "CASH BALANCE BENEFIT"
            },
            "rule": {
                "number": "§76.10",
                "label": "Gain Sharing Interest Rate"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=224705&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "224705",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Under Tex. Gov't Code §820.103 and §840A.104, the system shall calculate the gain sharing interest rate based on the investment returns of the total combined ERS retirement trust fund as of August 31 of each of the applicable fiscal years, using the Global Investment Performance Standards for calculating and reporting investment performance. The total combined ERS retirement trust fund does not include amounts associated with the State Employees Group Benefits Program or the Texa$aver program. (b) A person may not receive gain sharing interest as both a cash balance group member and a cash balance annuitant during the same fiscal year. (c) The gain sharing interest rate shall be applied no earlier than December 1.",
            "sourceNote": "Source Note: The provisions of this §76.10 adopted to be\r\neffective September 14, 2022, 47 TexReg 5498; amended to be effective\r\nApril 16, 2025, 50 TexReg 2436."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=224705&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "224705",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "76",
                "label": "CASH BALANCE BENEFIT"
            },
            "rule": {
                "number": "§76.11",
                "label": "Return of Excess Contributions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=224706&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "224706",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as provided by subsection (c) of this section, when a person who receives a cash balance or disability retirement annuity dies, a lump-sum death benefit is payable from the retirement annuity reserve account in the amount, if any, by which the balance in the retiree's individual account at the time of service retirement exceeds the total of annuity payments payable before the retiree's death. (b) The benefit provided by subsection (a) of this section is payable to a person designated by the retiree at the time of retirement in a signed and witnessed document filed with the system. If a retiree does not designate a beneficiary or if the beneficiary does not survive the retiree, the benefit is payable to the retiree's estate. (c) A death benefit may not be paid under subsections (a) and (b) of this section if the retiree selected an optional cash balance annuity. (d) If the person designated as the beneficiary of an optional cash balance annuity, other than one selected under Tex. Gov't Code §820.0535(c)(3), §820.0535(c)(4), §840A.054(c)(3), or §840A.054(c)(4), predeceases the retiree, a lump-sum death benefit is payable from the retirement annuity reserve account in the amount, if any, by which the balance in the retiree's individual account at the time of service retirement exceeds the sum of annuity payments payable to the retiree before death. (e) The benefit provided by subsection (d) of this section is payable to the deceased retiree's estate. (f) If a beneficiary dies while receiving an optional cash balance annuity, other than one selected under Tex. Gov't Code §820.0535(c)(3), §820.0535(c)(4), §840A.054(c)(3), or §840A.054(c)(4), a lump-sum death benefit is payable from the retirement annuity reserve account in the amount, if any, by which the balance in the retiree's individual account at the time of service retirement exceeds the sum of annuity payments payable to the retiree and the beneficiary before the beneficiary's death. (g) If a beneficiary dies while receiving a cash balance annuity selected under Tex. Gov't Code §814.302, §814.304(a), or §839.302, a lump-sum death benefit is payable from the retirement annuity reserve account in the amount, if any, by which the balance in the member's individual account at the time of death exceeds the sum of annuity payments payable to the beneficiary before the beneficiary's death. (h) The benefits provided by subsections (f) and (g) of this section are payable to the deceased beneficiary's estate. (i) A beneficiary designation that names a former spouse as beneficiary is invalid unless the designation is made after the date of the divorce.",
            "sourceNote": "Source Note: The provisions of this §76.11 adopted to be\r\neffective September 14, 2022, 47 TexReg 5498; amended to be effective\r\nApril 16, 2025, 50 TexReg 2436."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=224706&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "224706",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "76",
                "label": "CASH BALANCE BENEFIT"
            },
            "rule": {
                "number": "§76.12",
                "label": "Uniformed Services Employment and Reemployment Rights Act"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190326&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "190326",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "To the extent that the Uniformed Services Employment and Reemployment Rights Act (USERRA) applies to cash balance group members, a member: (1) Shall be entitled to contributions, benefits, and credited service for the period of qualified military service to the extent required by USERRA; Internal Revenue Code §414(u); and effective January 1, 2007, Internal Revenue Code §401(a)(37); and (2) May claim service credit for military service not previously established by paying a contribution for each month of service credit in an amount equal to the greater of: (A) The amount that the member contributed for the first full month of membership service that is after the member's date of release from active military duty and that is credited in the system; or (B) $18.",
            "sourceNote": "Source Note: The provisions of this §76.12 adopted\r\nto be effective September 14, 2022, 47 TexReg 5498; amended to be\r\neffective April 16, 2025, 50 TexReg 2436."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190326&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "190326",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "77",
                "label": "JUDICIAL RETIREMENT"
            },
            "rule": {
                "number": "§77.1",
                "label": "Reduction Factors for Death before Age 65"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=28696&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "28696",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "If a member of the Judicial Retirement System of Texas Plan One who is eligible to select a death benefit plan dies prior to age 65, the annuity will be reduced by the factors developed by the actuaries. Those factors are adopted by reference and are made a part of this section for all purposes. Copies of the factors may be obtained from the executive director of the Employees Retirement System of Texas at 200 E. 18th Street; P.O. Box 13207, Austin, Texas 78711-3207. The reduction factors that apply to deaths of members prior to age 65 and that occur on or after September 1, 2009, are those factors adopted by the board on February 24, 2009, based on assumptions adopted by the board on May 13, 2008. For deaths occurring prior to September 1, 2009, the previously adopted factors apply.",
            "sourceNote": "Source Note: The provisions of this §77.1 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective January 10, 1986, 11 TexReg 50; amended to be effective June 9, 2009, 34 TexReg 3517; amended to be effective March 27, 2018, 43 TexReg 1876."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=28696&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "28696",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "77",
                "label": "JUDICIAL RETIREMENT"
            },
            "rule": {
                "number": "§77.3",
                "label": "Time Retirement Becomes Effective"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=71660&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "71660",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Retirements from the Judicial Retirement System of Texas Plan One and the Judicial Retirement System of Texas Plan Two commence at midnight on the effective date.",
            "sourceNote": "Source Note: The provisions of this §77.3 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective January 10, 1986, 11 TexReg 50."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=71660&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "71660",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "77",
                "label": "JUDICIAL RETIREMENT"
            },
            "rule": {
                "number": "§77.7",
                "label": "Spousal Consent Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20109&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "20109",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The provisions of this section apply to the Judicial Retirement System of Texas Plan One and the Judicial Retirement System of Texas Plan Two. The selection by a member of a service retirement annuity other than a joint and survivor annuity that pays benefits to the spouse of the member on the death of the member is not effective unless the member's spouse consents to the selection or it is established to the satisfaction of the system that:(1) there is no spouse; or(2) the spouse cannot be located.(b) Should the spouse of the member be judicially declared incompetent, the consent required by this section shall be given by the spouse's legal guardian. The consent of a spouse who is incapable of giving his or her consent as required by this section may be given by a legal representative of the spouse only if the executive director or a person designated by the executive director determines:(1) that the spouse is incapable of giving his or her consent; and(2) the person or persons qualify as the legal representative of the spouse.(c) The consent required by this section must be in writing on a form prescribed by the Employees Retirement System of Texas and acknowledged before a notary public.(d) The provisions of this section apply only to service retirement annuities.",
            "sourceNote": "Source Note: The provisions of this §77.7 adopted to be effective November 23, 1989, 14 TexReg 5935; amended to be effective January 9, 2000, 24 TexReg 12074."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20109&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "20109",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "77",
                "label": "JUDICIAL RETIREMENT"
            },
            "rule": {
                "number": "§77.9",
                "label": "Additional Retirement Option"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190327&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "190327",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A Judicial Retirement System of Texas Plan Two (JRS-II) member applying for service or disability retirement may elect to receive in lieu of the standard annuity or other options, but as an actuarial equivalent thereof, the following service retirement to be known as Option 5: after the retiree's death, three-fourths of the reduced annuity is payable to and throughout the life of the person designated by the member at the time of retirement.",
            "sourceNote": "Source Note: The provisions of this §77.9 adopted to be effective June 27, 1990, 15 TexReg 3429."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190327&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "190327",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "77",
                "label": "JUDICIAL RETIREMENT"
            },
            "rule": {
                "number": "§77.11",
                "label": "Reduction Factors for Age and Retirement Options--Judicial Retirement System of Texas Plan One (JRS-I) and Judicial Retirement System of Texas Plan Two (JRS-II)"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20114&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "20114",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Tables for calculation of optional factors.(1) The 1981 reduction factors for optional forms of retirement annuities are independent of the gender of the member and of the beneficiary and are based on the GA-51 male mortality table projected with Scale C to 1970 with an age set forward of one year for retiring members and an age set back of four years for beneficiaries. The interest assumption is 5.0%.(2) The 1992 reduction factors for optional forms of retirement annuities are independent of the gender of the member and the beneficiary and are based on the 1983 group annuity mortality table. The interest rate assumption is 8.5%.(3) The reduction factors adopted by the board on February 24, 2009, based on assumptions adopted by the board on May 13, 2008, for optional forms of retirement annuities are independent of the gender of the member and the beneficiary and apply to retirements effective on or after September 30, 2009. For retirements first effective prior to September 1, 2009, the previously adopted factors apply.(4) The reduction factors adopted by the board on February 25, 2014, based on assumptions adopted by the board on February 26, 2013, and on legislative changes to the retirement plan effective September 1, 2013, are independent of the gender of the member and the beneficiary and apply to retirements effective on or after September 1, 2014, but before September 1, 2018. For retirements first effective prior to September 1, 2014, the previously adopted factors apply.(5) Copies of these tables are available from the executive director of the Employees Retirement System of Texas at 200 E. 18th Street, P.O. Box 13207, Austin, Texas 78711-3207. The option tables, along with the adjustments described in this subsection are adopted by reference and made a part of this rule for all purposes.(b) Option factors. The 2009 reduction factors for optional annuities for service retirement, disability retirement, and death benefit plans under the JRS-I and JRS-II plans apply to retirements effective on or after September 1, 2009, and are those factors adopted by the board on February 24, 2009, based on assumptions adopted by the board on May 13, 2008. For retirements first effective prior to September 1, 2009, the previously adopted factors apply. The 2014 reduction factors for optional annuities for service retirement, disability retirement, and death benefit plans under the JRS-I and JRS-II plans apply to retirements effective on or after September 1, 2014, but before September 1, 2018, and are those tables adopted by the board on February 25, 2014, based on assumptions adopted by the board on February 26, 2013, and on legislative changes to the retirement plan effective September 1, 2013. For retirements first effective prior to September 1, 2014, the previously adopted factors apply. All option factors have been developed by the actuaries and are adopted by reference subject to the limitations of this subsection. The reduction factors are available from the executive director of the Employees Retirement System of Texas at 200 E. 18th Street, P.O. Box 13207, Austin, Texas 78711-3207.(c) Formula for JRS-II reduction factors for death before age 65.(1) A death benefit annuity of the Judicial Retirement System of Texas Plan Two on behalf of a member dying before age 65 while not eligible for an unreduced service retirement benefit is reduced for each whole or partial calendar month that occurs during the period from the date of death to the 65th birthday, including the months that contain the dates of death and birthday. For the first 120 months (ages 55-64), the annuity is reduced by one-third of 1.0% per month. For the next 60 months (ages 50-54), the annuity is reduced by one-fourth of 1.0% per month. For the next 60 months (ages 45-49), the annuity is reduced by one-sixth of 1.0% per month. For the next 120 months (ages 35-44), the annuity is reduced by one-twelfth of 1.0% per month.(2) A death benefit annuity on behalf of a member dying before age 65 while eligible for an unreduced service retirement benefit shall not be reduced for age.(3) JRS-II reduction factors for death before age 65 have been developed by the actuaries and are adopted by reference subject to the limitations of this subsection. The reduction factors that apply to deaths of members prior to age 65 and that occur on or after September 1, 2009, are those factors adopted by the board on February 24, 2009, based on assumptions adopted by the board on May 13, 2008. For deaths occurring prior to September 1, 2009, the previously adopted factors apply. The reduction factors that apply to deaths of members prior to age 65 and that occur on or after September 1, 2014, but before September 1, 2018, are those factors adopted by the board on February 25, 2014, based on assumptions adopted by the board on February 26, 2013, and on legislative changes to the retirement plan effective September 1, 2013. For deaths occurring prior to September 1, 2014, the previously adopted factors apply. The set of reduction factors is available from the executive director of the Employees Retirement System of Texas at 200 E. 18th Street, P.O. Box 13207, Austin, Texas 78711-3207.(d) Reserve factors. The reserve factors for JRS-II are adopted by reference and made a part of this rule for all purposes. The reserve factors apply to periods beginning on or after September 1, 2009, and are those factors adopted by the board on February 24, 2009, based on assumptions adopted by the board on May 13, 2008. For periods occurring prior to September 1, 2009, the previously adopted factors apply. Copies of these tables are available from the executive director of the Employees Retirement System of Texas at 200 E. 18th Street, P.O. Box 13207, Austin, Texas 78711-3207.(e) Dollar limitations for maximum annual benefit. Service retirement annuities shall conform to dollar limitations and applicable adjustments under the Internal Revenue Code of 1986, §415 (26 United States Code §415) as determined by the federal commissioner of internal revenue.(f) For a member subject to a reduction factor under this section on or after September 1, 2018, the factors are those adopted by the board, and as adjusted from time to time as required by §815.105 and §840.005, Texas Government Code, in effect on the date the reduction factor occurs. Copies of these factors are available from the System's executive director, Employees Retirement System of Texas at 200 E. 18th Street, P.O. Box 13207, Austin, Texas 78711-3207.",
            "sourceNote": "Source Note: The provisions of this §77.11 adopted to be effective June 27, 1990, 15 TexReg 3429; amended to be effective January 10, 1991, 16 TexReg 42; amended to be effective December 13, 1991, 16 TexReg 6938; amended to be effective December 31, 2003, 28 TexReg 11612; amended to be effective June 9, 2009, 34 TexReg 3517; amended to be effective June 10, 2014, 39 TexReg 4486; amended to be effective March 27, 2018, 43 TexReg 1876."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20114&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "20114",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "77",
                "label": "JUDICIAL RETIREMENT"
            },
            "rule": {
                "number": "§77.13",
                "label": "Trustee to Trustee Transfers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190328&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "190328",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The provisions of this section apply only to the Judicial Retirement System of Texas Plan Two.(b) Effective for distributions made after December 31, 1992, the Employees Retirement System of Texas shall permit the distributee of an eligible rollover distribution to elect to have such distribution paid directly to an eligible retirement plan specified by the distributee in the form of a direct trustee to trustee transfer.(c) The Employees Retirement System of Texas shall develop procedures to implement this section in accordance with the Internal Revenue Code of 1986, §401(a)(31), as amended, and related regulations. Terms used in this section shall have the meanings assigned in the Internal Revenue Code of 1986, as amended.",
            "sourceNote": "Source Note: The provisions of this §77.13 adopted to be effective January 12, 1993, 18 TexReg 65."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190328&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "190328",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "77",
                "label": "JUDICIAL RETIREMENT"
            },
            "rule": {
                "number": "§77.15",
                "label": "Payments to Establish or Reestablish Service Credit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20116&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "20116",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A member or contributing member of the Judicial Retirement System of Texas Plan One or Plan Two may purchase eligible service creditable in the member's respective retirement system in accordance with the Government Code, Chapter 833 and Chapter 838, respectively. Subject to §77.23, the retirement system shall grant the applicable amount of service credit after each payment made under this section is equal to the amount required to establish one or more months of creditable service.(b) Service credit that may be established or reestablished includes military service credit, service credit previously cancelled, and service credit not previously established, and calendar year service credit.(c) The ERS shall develop procedures and forms to be used in connection with this section.",
            "sourceNote": "Source Note: The provisions of this §77.15 adopted to be effective September 2, 1993, 18 TexReg 5594; amended to be effective September 15, 1997, 22 TexReg 9006; amended to be effective December 31, 2003, 28 TexReg 11612; amended to be effective January 10, 2006, 31 TexReg 169; amended to be effective March 27, 2018, 43 TexReg 1876."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20116&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "20116",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "77",
                "label": "JUDICIAL RETIREMENT"
            },
            "rule": {
                "number": "§77.17",
                "label": "Plan Limitations"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20118&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "20118",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The provisions of this section apply only to the Judicial Retirement System of Texas Plan Two.(b) For a person who first becomes a member of the retirement system after August 31, 1996, the person's compensation for the purposes of the retirement system may not exceed the limit imposed by §401(a)(17) of the Internal Revenue Code of 1986 (26 USC §401(a)(17)), as adjusted by the commissioner of the internal revenue for cost of living increases in accordance with that provision. This limit does not apply to a person who first became a member of the retirement system before September 1, 1996.",
            "sourceNote": "Source Note: The provisions of this §77.17 adopted to be effective August 5, 1996, 21 TexReg 6897."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20118&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "20118",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "77",
                "label": "JUDICIAL RETIREMENT"
            },
            "rule": {
                "number": "§77.19",
                "label": "Acceptance of Rollovers and Transfers from Other Plans"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190329&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "190329",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The provisions of this section apply only to the Judicial Retirement System of Texas Plan Two (JRS-II).(b) Subject to procedures developed by the JRS-II, the JRS-II shall accept an eligible rollover distribution or a direct transfer of funds from another qualified plan or conduit IRA in payment of all or a portion of any deposit a member is permitted to make with the JRS-II for credit for service. The procedures developed by the JRS-II shall condition the acceptance of a rollover or transfer from another plan or conduit IRA on the receipt from the other plan or conduit IRA of information necessary to enable the JRS-II to determine the eligibility of any transferred funds for tax-free rollover treatment or other treatment under federal income tax law.",
            "sourceNote": "Source Note: The provisions of this §77.19 adopted to be effective September 15, 1997, 22 TexReg 9007."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190329&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "190329",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "77",
                "label": "JUDICIAL RETIREMENT"
            },
            "rule": {
                "number": "§77.21",
                "label": "Purchase of Additional Service Credit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=122731&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "122731",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The provisions of this section apply only to the Judicial Retirement System of Texas Plan Two (JRS-II).(b) An eligible member may establish equivalent membership service credit authorized by §838.108, Texas Government Code, as provided in this section. The provisions of §77.15 of this title (relating to Payments to Establish or Reestablish Service Credit) do not apply to service credit established under this section.(c) A member is eligible to establish service credit under this section in the membership class in which the member holds a position if the member:(1) has 180 months of service credit for one or more periods of time during which the member held a position as a judge and the required contributions were made;(2) is a member of the system at the time credit is established; and(3) is not eligible to establish other credit or service.(d) An eligible member shall deposit with the system in a lump sum a contribution in the amount determined by the system to be the actuarial present value of the benefit attributable to the credit established under this section. The tables recommended by the system's actuary and adopted by the board shall be used by the system to determine the actuarial present value. The 2009 additional service credit tables for JRS-II are adopted by reference and made a part of this rule for all purposes. The additional service credit tables apply to service purchase calculations performed on or after September 1, 2009, and are those tables adopted by the board on February 24, 2009, based on assumptions adopted by the board on May 13, 2008. The 2014 additional service credit tables apply to service purchase calculations performed on or after September 1, 2014, but before September 1, 2018, and are those tables adopted by the board on February 25, 2014, based on assumptions adopted by the board on February 26, 2013, and on legislative changes to the retirement plan effective September 1, 2013. For service purchase calculations performed prior to September 1, 2014, the previously adopted tables apply. Copies of these tables are available from the executive director of the Employees Retirement System of Texas at 200 E. 18th Street, P.O. Box 13207, Austin, Texas 78711-3207.(e) Actuarial present value shall be based on:(1) the member's age on the date of the deposit required by this subsection;(2) the earliest date on which the member will become eligible to retire and receive a service retirement annuity after establishing credit under this section; and(3) the future employment, compensation, investment and retirement benefit assumptions recommended by the actuaries and adopted by the board.(f) Credit shall be established in whole year increments of credit.(g) A member who establishes credit under this section shall certify that the member is not eligible to establish other credit or service and shall waive any and all right to establish such credit or service that the member had on the date of the deposit required by subsection (d) of this section.(h) Credit established under this section may not be used to compute the amount of a disability retirement annuity.(i) A member who withdraws contributions and cancels credit established under this section may not reestablish such credit under §838.102, Texas Government Code, but may again establish credit as provided in this section.(j) For a member establishing equivalent membership service credit authorized by §838.108, Texas Government Code, on or after September 1, 2018, the tables used to determine the actuarial present value of the service credit are those adopted by the board, and as adjusted from time to time as required by §840.005, Texas Government Code, in effect on the date the service credit is established. Copies of these tables are available from the System's executive director, Employees Retirement System of Texas at 200 E. 18th Street, P.O. Box 13207, Austin, Texas 78711-3207.",
            "sourceNote": "Source Note: The provisions of this §77.21 adopted to be effective March 10, 2004, 29 TexReg 2372; amended to be effective January 10, 2006, 31 TexReg 169; amended to be effective June 9, 2009, 34 TexReg 3517; amended to be effective June 10, 2014, 39 TexReg 4486; amended to be effective March 27, 2018, 43 TexReg 1876."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=122731&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "122731",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "77",
                "label": "JUDICIAL RETIREMENT"
            },
            "rule": {
                "number": "§77.23",
                "label": "Purchase of Service in Excess of 20 Years for Judicial Retirement System of Texas Plan Two Members"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=112006&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "112006",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A contributing member of the Judicial Retirement System of Texas Plan Two may purchase eligible service in excess of 20 years creditable in the retirement system in accordance with Texas Government Code §838.1035.(b) For a contributing member of the Judicial Retirement System of Texas Plan Two who does not establish the service credit before the first anniversary of the date of first eligibility to purchase service credit, interest is computed on the basis of the state fiscal year at an annual rate of 10 percent from the date of first eligibility to the date of deposit.",
            "sourceNote": "Source Note: The provisions of this §77.23 adopted to be effective January 10, 2006, 31 TexReg 169."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=112006&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "112006",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "79",
                "label": "SOCIAL SECURITY"
            },
            "rule": {
                "number": "§79.1",
                "label": "Administrative Costs"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=112007&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "112007",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The costs to the Employees Retirement System of Texas (ERS) for administering the program for state employees shall be paid by state appropriation. The costs of administering the program for participating counties, municipalities, and other political subdivisions shall be payable by the covered entities. The amount of the fee is to be determined by the board based upon available funds and projected expenses.",
            "sourceNote": "Source Note: The provisions of this §79.1 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective June 29, 2004, 29 TexReg 6120."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=112007&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "112007",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "79",
                "label": "SOCIAL SECURITY"
            },
            "rule": {
                "number": "§79.3",
                "label": "Reporting Procedures"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=112008&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "112008",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Each reporting entity shall make reports and payment in such manner and form as the executive director may require for periods prior to January 1, 1987, regular reports to ERS are required. On and after January 1, 1987, only such reports to ERS as may be requested by the executive director or designee are required. On and after January 1, 1987, including retroactive periods, all employing entities also have payment and reporting responsibilities directly to the Internal Revenue Service (IRS).",
            "sourceNote": "Source Note: The provisions of this §79.3 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective June 29, 2004, 29 TexReg 6120."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=112008&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "112008",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "79",
                "label": "SOCIAL SECURITY"
            },
            "rule": {
                "number": "§79.4",
                "label": "Reporting Periods"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=112009&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "112009",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Social Security covered wages actually paid during a reporting period and the contributions due from those payments are to be reported as follows.(1) For reporting periods beginning the first day of the month and ending the 15th day of the month, reports and contributions shall be received by ERS by 5 p.m. on the sixth working day following the 15th of the month.(2) For reporting periods beginning the 16th day of the month and ending the last day of the month, reports and contributions shall be received by ERS by 5 p.m. on the sixth working day of the following month.",
            "sourceNote": "Source Note: The provisions of this §79.4 adopted to be effective September 17, 1984, 9 TexReg 4742; amended to be effective June 29, 2004, 29 TexReg 6120."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=112009&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "112009",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "79",
                "label": "SOCIAL SECURITY"
            },
            "rule": {
                "number": "§79.5",
                "label": "Examination of Records"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3927&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "3927",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The executive director or his or her representative is authorized to physically examine all records of a governmental unit which has entered into an agreement under the terms of Texas Government Code, Chapter 606, as amended.",
            "sourceNote": "Source Note: The provisions of this §79.5 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective June 29, 2004, 29 TexReg 6120."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3927&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "3927",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "79",
                "label": "SOCIAL SECURITY"
            },
            "rule": {
                "number": "§79.7",
                "label": "Correction of Errors and Collection of Accounts Due"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=112010&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "112010",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The executive director shall take any action considered necessary to collect delinquent accounts and to correct errors caused by reports which were submitted incorrectly.",
            "sourceNote": "Source Note: The provisions of this §79.7 adopted to be effective September 21, 1981, 6 TexReg 3427."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=112010&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "112010",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "79",
                "label": "SOCIAL SECURITY"
            },
            "rule": {
                "number": "§79.9",
                "label": "Reporting Official"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=112011&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "112011",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The official title and address of the person who will be charged with the duty to make assessments, collections, and reports shall be specified in the application for coverage. Any change in this information prior to completion of the referendum process is to be reported to the State Social Security Administrator, ERS, within 30 days.",
            "sourceNote": "Source Note: The provisions of this §79.9 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective June 29, 2004, 29 TexReg 6120."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=112011&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "112011",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "79",
                "label": "SOCIAL SECURITY"
            },
            "rule": {
                "number": "§79.11",
                "label": "State Holidays"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=112012&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "112012",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "When determining the date reports are due to ERS, a \"state holiday\" is one defined in Texas Government Code, Chapter 606, as it is amended from time to time.",
            "sourceNote": "Source Note: The provisions of this §79.11 adopted to be effective September 21, 1981, 6 TexReg 3427; amended to be effective June 29, 2004, 29 TexReg 6120."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=112012&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "112012",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "79",
                "label": "SOCIAL SECURITY"
            },
            "rule": {
                "number": "§79.13",
                "label": "Sick Pay Adjustments to Covered Wages"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=112013&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "112013",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Payments made to an employee, on account of sickness, by the state or a political subdivision of the state, which has an agreement with the state to cover its employees under the Federal Social Security Act as authorized by Texas Civil Statutes, Article 695g or Article 695h, may be excluded from wages covered by the Social Security Act under certain conditions.(1) The employing governmental entity must have legal authority to pay its employees on account of sickness. Legal authority is deemed to exist where there is no legal restriction on the entity's ability to pay on account of sickness.(2) Payment must be made under the entity's legal authority and according to an approved sick pay plan.(A) The plan must make provisions for employees generally or for employees generally and their dependents, or a class or classes of employees, or a class or classes of employees and their dependents.(B) \"Class of employees\" means a group of employees having one or more common characteristics; e.g., salaried, clerical employees in a particular division, or employees in a given wage classification.(C) The plan must have a definite basis for determining who is eligible to receive the payments. These standards may include length of service, salary, classification, or occupation. The eligibility requirements cannot be left to the discretion of the employer. Need, efficiency, or loyalty cannot be the only basis for eligibility.(D) The plan must have definite standards for determining the minimum duration of payments. A provision that payments will be made for the duration of the employee's illness or so long as the employment relationship continues is definite. The minimum period of payment cannot be left to the discretion of the employer. If the plan provides that the employer may, at the employer's discretion, make payments for a longer period than that specified in the plan, these discretionary payments will be deemed paid under the plan.(E) The plan must have a definite formula for determining the minimum amount to be paid each eligible employee. The minimum amount cannot be left to the discretion of the employer. However, if the plan provides that the employer may, at the employer's discretion, make payments in addition to the minimum specified, these payments will be deemed to be under the plan.(F) The employer must communicate the terms and conditions of the plan to all of the employees or the class affected. If communication is indirect or not in writing, it must be such that it would be reasonable to infer that employees knew of the plan's existence. A bulletin board notice or long and established practice, for example, would be enough.(3) Only payments made on account of sickness during the calendar years of 1979, 1980, and 1981 are excludable from covered wages.(b) To receive adjustments to exclude payments on account of sickness from covered wages, a governmental entity must:(1) obtain approval of the ERS of all aspects of the governmental entity's sick pay plan. Submissions received at ERS' office after 5 p.m. on February 1, 1985, will not be considered.(2) file a report of adjustments (Form SSA 3964 or its successor) with ERS. All reports must be submitted in accordance with the federal Social Security Administration's requirements as to form and content. Reports of adjustments will not be considered if they are received at ERS' office after the later of:(A) 5 p.m. on March 1, 1985; or(B) 5 p.m. on the 10th working day after approval of the sick pay plan was issued by ERS.(3) provide documentation to support its reports of adjustments to covered wages of employees which show the dates, the periods of personal illness, and the applicable rate of pay. If an employee is eligible to receive sick pay for leave for a dependent's illness, the documentation must distinguish the sick pay for personal illness from sick pay for a dependent's illness. Only payments for an employee's personal illness are excludable from covered wages. An employee statement secured at the time the sick leave was taken may be used as evidence of personal illness; however, statements obtained long after the period when the leave was taken are not acceptable.(c) Reports of adjustments that meet the conditions of this rule will be submitted to the Federal Social Security Administration for approval. When the Social Security Administration approves adjustments and authorizes the state to take credits for the adjustments, the entity submitting the approved adjustments will be notified that a corresponding credit may be taken by the entity. No credits will be approved for sick pay adjustments until authorized by the Social Security Administration.(d) If the executive director of ERS determines that the Social Security Administration has relaxed or repealed any of the requirements contained in this rule, the executive director may make a corresponding change in the retirement system's requirements.",
            "sourceNote": "Source Note: The provisions of this §79.13 adopted to be effective April 18, 1984, 9 TexReg 1895; amended to be effective June 29, 2004, 29 TexReg 6120."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=112013&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "112013",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "79",
                "label": "SOCIAL SECURITY"
            },
            "rule": {
                "number": "§79.15",
                "label": "Reporting Errors"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=112014&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "112014",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "If a reporting error is discovered, the employing entity must comply with all State and Federal requirements to resolve the discrepancy, and must provide all relevant information to ERS regarding such error.",
            "sourceNote": "Source Note: The provisions of this §79.15 adopted to be effective June 29, 2004, 29 TexReg 6120."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=112014&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "112014",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "79",
                "label": "SOCIAL SECURITY"
            },
            "rule": {
                "number": "§79.23",
                "label": "Expenses Incurred Establishing Social Security Coverage"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201044&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201044",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "ERS assumes no obligation and is not liable for the cost of any legal services, actuarial studies, professional consultation fees or administrative costs incurred by a political subdivision or a public retirement system coverage group related to entering into a social security coverage agreement.",
            "sourceNote": "Source Note: The provisions of this §79.23 adopted to be effective June 29, 2004, 29 TexReg 6120."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201044&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201044",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "81",
                "label": "INSURANCE"
            },
            "rule": {
                "number": "§81.1",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=179792&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "179792",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Accelerated life benefit--A term life insurance benefit to be paid in advance of the death of an insured member or dependent, as requested by the insured member and approved by the carrier or administering firm, in accordance with the terms of the group term life insurance plan as permitted by §1551.254 of the Act. An accelerated life benefit payment may be requested only if the insured person is diagnosed with a terminal condition and only once during the lifetime of the insured person. For purposes of this definition, a terminal condition is an incurable health condition that the administering firm or carrier determines with reasonable medical certainty will result in the death of the insured within 12 months.(2) Act--The Texas Employees Group Benefits Act, Insurance Code, Chapter 1551, as amended.(3) Active duty--An employee's expenditure of time and energy in the service of his/her employer, including elected officials of the state of Texas who are eligible for coverage under the Act. An employee is on active duty on each day of a regular paid vacation or regular paid sick leave or on a non-working day, if the employee was on active duty on the last preceding workday.(4) AD&D--Voluntary accidental death and dismemberment coverage.(5) Age of employee--The age to be used for determining optional term life and AD&D insurance required contributions. For these purposes, the age of the employee is the employee's attained age on September 1.(6) Annuitant--A retired person who is eligible under §1551.102 of the Act to participate in the GBP and meets all requirements for retirement from a state retirement program or the Optional Retirement Program.(7) Basic plan--The plan of group insurance, including prescription drug coverage, determined by the Board of Trustees, currently HealthSelect or HealthSelect Medicare Advantage participant-only, as applicable, and basic term life insurance coverage, in which every eligible full-time employee and annuitant, is automatically enrolled after meeting any applicable waiting period or unless participation is expressly waived.(8) Benefits Coordinator--A person employed by an employer to provide assistance to its employees and their dependents with all aspects of GBP participation. The benefits coordinator for all other GBP participants is ERS.(9) Board of Trustees or Board--The Board of Trustees of the Employees Retirement System of Texas.(10) CHIP--Children's Health Insurance Program.(11) CMS--Centers for Medicare and Medicaid Services or its successor agency.(12) COBRA--Consolidated Omnibus Budget Reconciliation Act of 1985, Public Law 99-272, and any subsequent amendments.(13) Consumer Directed HealthSelectSM   --The self-funded high deductible health benefit plan offered through the GBP and administered by the Employees Retirement System of Texas and qualified carriers or administering firms.(14) Dependent--With respect to an eligible member, means the member's:(A) spouse, as recognized by applicable law, which includes only a married spouse as evidenced by a properly issued and completed marriage license or an informally married spouse whose marriage is memorialized by a Declaration of Informal Marriage and filed of record with an appropriate governmental authority. Absent clear and compelling evidence of an informal marriage existing at the time of enrollment and deemed sufficient by ERS, it is a plan design requirement that the licensed marriage or Declaration of Informal Marriage must occur, or be filed, as applicable, prior to the effective date of the dependent spouse's enrollment in the GBP;(B) child under 26 years of age;(C) child age 26 and older whom the Board of Trustees or its designee determines is certified by an approved practitioner to be mentally or physically incapacitated from gainful employment, and earns less than the monthly wage standard for enrolling in CHIP in Texas for a family of one at the time of application or reevaluation. If the child earns more than this wage standard for a period of six months or longer in any calendar year, then the child must demonstrate to ERS his/her continued eligibility for dependent coverage by proving he/she is dependent on the member for care or support and either lives with the member or has care provided by the member on a regular basis; and(D) child under age 26 who is the member's ward, as that term is defined by §1002.030, Texas Estates Code.(E) In this section, \"child\" includes:(i) a natural child, adopted child, stepchild, foster child; or a child in the possession of a participant who is designated as managing conservator of the child under an irrevocable or unrevoked affidavit of relinquishment under Texas Family Code, Chapter 161; or(ii) a child who is related to the member by blood or marriage and was claimed as the member's dependent on his/her federal income tax return for the tax year preceding the plan year in which the child is first enrolled as the member's dependent in the GBP, and for each subsequent year in which the child is enrolled as the member's dependent. The federal income tax return must have been filed when first due or before any timely extensions expired.(F) The requirement in subparagraph (E)(ii) of this paragraph that a child must be claimed as the member's dependent on his/her federal income tax return preceding the child's enrollment does not apply if:(i) the child is born in the year in which the child is first enrolled; or(ii) the member can demonstrate good cause for not claiming the child as a dependent in the preceding tax year.(15) Employee--A person eligible to participate in the GBP under §1551.101 of the Act, which includes an appointed or elected state officer, judicial officer, or employee in the service of the state of Texas. The term also includes an eligible employee of an institution of higher education and any persons required or permitted by the Act to enroll as members.(16) Employer--State of Texas and its agencies, institutions of higher education, and other governmental or quasi-governmental employers within the state whose employees or annuitants are authorized by the Act to participate in the GBP.(17) ERS--Employees Retirement System of Texas.(18) Evidence of insurability--Evidence required by ERS, an administering firm, or a qualified carrier for approval of coverage or changes in coverage other than GBP health coverage pursuant to the enrollment and participation provisions in this chapter.(19) Executive director--The executive director of the Employees Retirement System of Texas. All references to the executive director also include the person or position designated by the executive director or Board of Trustees to perform the relevant function of the executive director.(20) Former COBRA unmarried child--A member's unmarried child who is at least 26 years of age, who had GBP coverage as a dependent until the child became ineligible, who had continuation coverage under COBRA until that coverage expired, and who reinstates GBP coverage pursuant to §1551.158 of the Act.(21) GBP (Group Benefits Program)--The Texas Employees Group Benefits Program as established and administered by the Board of Trustees pursuant to the Act.(22) GBP health coverage--Includes HealthSelectSM  of Texas, Consumer Directed HealthSelectSM , HMOs and Medicare Advantage plans, as applicable.  (23) Health insurance waiting period--The applicable waiting period defined in §1551.1055 of the Act.(24) HealthSelectSM  of Texas--The self-funded health benefit plan offered in the GBP and administered by the Employees Retirement System of Texas and a qualified carrier or administering firm. HealthSelect of Texas also includes a Prescription Drug Plan administered by a Pharmacy Benefit Manager approved by the Board.(25) HealthSelectSM  Medicare Rx--A plan, approved by the Board of Trustees, that provides prescription drug coverage designed for participants who are eligible for Medicare-primary coverage in the GBP as permitted by CMS.(26) HMO--A health maintenance organization, as defined by §1551.007 of the Act, and approved by the Board of Trustees to provide health care coverage to eligible participants in the GBP.(27) Insurance required contribution--Any out-of-pocket charge incurred by a member or by a member's dependent as payment for coverage provided under the GBP that exceeds the state's or employer's contributions made on behalf of the member.(28) LWOP (Leave without pay)--The leave status of an employee who is certified by his/her employer to be absent from active duty for an entire calendar month, who does not receive any compensation for time absent from active duty, and who has not received a refund of retirement contributions based upon the most recent term of employment.(29) Medicare Advantage Plan--A plan, approved by the Board of Trustees, that provides health coverage for participants who are eligible for Medicare-primary coverage. The plan is administered as a Medicare Advantage Plan as permitted by CMS through:(A) a health maintenance organization; or(B) any other plan, organization, carrier or administering firm approved by the Board of Trustees to provide the coverage.(30) Medicare-eligible--The status of a participant who is eligible for primary coverage under Medicare Part A and/or Part B. Eligibility may extend to a dependent that is qualified to receive Medicare benefits as his/her primary coverage as permitted by CMS.(31) Member--For purposes of this chapter only regarding insurance plan participation in the GBP, a member is a participant who is an employee, retiree, or other person eligible to participate in the GBP as provided under the Act and who is not a dependent.(32) Minimum retiree optional life--A standard $10,000 term life insurance policy whose insurance required contribution is set solely on the basis of the benefit rather than on the retiree's age. It is available for retirees at any time during their retirement. If a retiree does not have life insurance, the retiree may apply for this coverage with evidence of insurability. If the retiree has Election 1 or Election 2 optional life, the retiree may elect to reduce the life coverage to this coverage by requesting the change without an application or evidence of insurability.(33) Optional Coverage--Coverage established by the Board of Trustees in the GBP and as set forth in §81.7(c)(1)(A) - (K).(34) ORP--The Optional Retirement Program as provided in the Government Code, Chapter 830.(35) Participant--An employee, annuitant, or dependent, as defined in the Act, a surviving spouse or child of a deceased member, or any other person eligible for coverage under the Act and enrolled in any coverage offered under the GBP.(36) Placement for adoption--The legal status of a child under which a person assumes and retains the legal obligation for total or partial support of the child in anticipation of the person's adoption of such child.(37) Preexisting condition--Any injury or medical condition for which a participant received medical treatment or services, or was prescribed drugs or medicines during the three-month period immediately prior to the effective date of such coverage. However, if the evidence of insurability requirements set forth in §81.7(d) of this chapter must first be satisfied, the three-month period for purposes of determining the preexisting conditions exclusion will be the three-month period immediately preceding the date of the employee's completed application for coverage.(38) Premium conversion plan--A separate plan, under the Internal Revenue Code, §79 and §106, adopted by the Board of Trustees and designed to provide premium conversion as described in §81.7(b) of this chapter.(39) Retiree--An employee who retires or is retired and who:(A) is authorized by the Act to participate in the GBP as an annuitant;(B) on August 31, 1992, was a participant in a group insurance program administered by an institution of higher education; or(C) on the date of retirement, meets the service credit requirements of the Act for participation in the GBP as an annuitant; and(i) on August 31, 2001, was an eligible employee with an employer whose employees are authorized to participate in the GBP and, on the date of retirement has three years of service with such an employer;(ii) on August 31, 2001, had three years of service as an eligible employee with an employer whose employees are authorized to participate in the GBP; or(iii) is determined by ERS to be eligible as described by §1551.102 and §1551.114 of the Act.(40) Salary--The amount of compensation, which includes the employee's regular salary, longevity, shift differential, hazardous duty pay, and benefit replacement pay, received by an employee as of the employee's first day of active duty and as of September 1, for an existing or rehired employee. This amount is used for determining optional term life and disability income limitations. Non-salaried appointed officials, state-wide elected officials and members of the Legislature may use the salary of a state district judge or their actual salary as of September 1 of each year for determining their optional term life. For members of the Legislature, disability income limitations will be based on their actual monthly salary.(41) Tobacco product--All types of tobacco, including, but not limited to, cigarettes, cigars, pipe tobacco, chewing tobacco, snuff, and dip; and all electronic cigarettes and vaping products.(42) Tobacco user--A participant who has used a tobacco product or tobacco products five or more times during the preceding three months.(43) TRS--The Teacher Retirement System of Texas.",
            "sourceNote": "Source Note: The provisions of this §81.1 adopted to be effective September 1, 1985, 10 TexReg 2321; amended to be effective October 14, 1986, 11 TexReg 4114; amended to be effective December 13, 1988, 13 TexReg 5972; amended to be effective July 18, 1991, 16 TexReg 3777; amended to be effective August 19, 1991, 16 TexReg 4285; amended to be effective May 19, 1992, 17 TexReg 3252; amended to be effective September 2, 1993, 18 TexReg 5594; amended to be effective February 21, 1994, 19 TexReg 806; amended to be effective January 25, 1995, 20 TexReg 151; amended to be effective September 6, 1996, 21 TexReg 8182; amended to be effective February 16, 1998, 23 TexReg 1099; amended to be effective September 16, 1999, 24TexReg 7276; amended to be effective March 26, 2000, 25 TexReg 2400;    amended to be effective September 13, 2001, 26 TexReg 6954; amended to be effective September 11, 2003, 28 TexReg 7780; amended to be effective December 31, 2003, 28 TexReg 11612; amended to be effective June 29, 2004, 29 TexReg 6120; amended to be effective May 3, 2006, 31 TexReg 3588; amended to be effective June 5, 2008, 33 TexReg 4332; amended to be effective March 15, 2010, 35 TexReg 2202; amended to be effective December 30, 2010, 35 TexReg 11707; amended to be effective December 22, 2011, 36 TexReg 8574; amended to be effective December 26, 2013, 38 TexReg 9374; amended to be effective September 5, 2016, 41 TexReg 6754; amended to be effective March 27, 2018, 43 TexReg 1876; amended to be effective September 8, 2020, 45 TexReg 6239."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=179792&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "179792",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "81",
                "label": "INSURANCE"
            },
            "rule": {
                "number": "§81.3",
                "label": "Health Maintenance Organizations"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=179790&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "179790",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The Board of Trustees may approve a health maintenance organization (HMO) to offer a health care services plan to participants in the GBP. The Board of Trustees may:(1) utilize a bidding process to approve one or more HMOs in areas of the state determined by the Board of Trustees to be regional bidding areas (RBAs);(2) utilize an application process to approve one or more HMOs in areas of the state determined by the Board of Trustees to be non-bidding areas;(3) determine the criteria to be used to approve the HMOs for the RBAs and non-bidding areas;(4) determine the number of HMOs to approve in each RBA and non-bidding area; and(5) determine the length of the contracts with the approved HMOs.(b) In order to seek approval, an HMO must submit to ERS:(1) a separate application to provide health care services in each area of interest within the state of Texas determined by the Board of Trustees to be non-bidding areas; or(2) a proposal, in response to a request for bid, in the format determined by ERS to provide health care services in one or more of the designated RBAs.(c) An HMO seeking Board of Trustees' approval of its proposal in response to a request for bid in one or more of the RBAs must demonstrate compliance with the following conditions to the satisfaction of the Board of Trustees:(1) the HMO must be licensed by the Texas Department of Insurance to operate in the state of Texas;(2) the HMO must have prior experience providing health care services in the RBA for at least 6 months prior to September 1 of the fiscal year in which the proposal is due to be filed with ERS;(3) the HMO must have the capacity to provide adequate health care services to the GBP participants in the relevant RBAs;(4) the HMO must propose rates at the time and in the format prescribed by ERS. If the HMO's proposed rates are adopted by the Board of Trustees, the HMO may not modify the rates without the approval of the Board of Trustees;(5) the HMO must submit a separate proposal in order to request expansion into a non-contiguous service area;(6) the HMO must agree to all provisions contained in the contract between ERS and the HMO as adopted for the duration of the contract;(7) the HMO must provide standardized benefits as described in the contract between ERS and the HMO;(8) the HMO must agree that if the HMO fails to maintain compliance with the contract, ERS has the right to cancel the contract with that HMO and seek other remedies as specified in the contract; and(9) the HMO must agree that if the HMO loses its Texas state license, it will automatically become ineligible to offer its health care services plan to participants in the GBP.(d) An HMO, seeking Board of Trustees' approval of its application to provide health care services in one or more of the non-bidding areas must demonstrate compliance with all of the conditions set forth in subsection (c) of this section to the satisfaction of the Board of Trustees.",
            "sourceNote": "Source Note: The provisions of this §81.3 adopted to be effective September 1, 1985, 10 TexReg 2321; amended to be effective September 1, 1986, 11 TexReg 3862; amended to be effective October 14, 1986, 11 TexReg 4114; amended to be effective December 19, 1986, 11 TexReg 5133; amended to be effective November 1, 1987, 12 TexReg 3480; amended to be effective February 16, 1988, 13 TexReg 625; amended to be effective March 28, 1989, 14 TexReg 1371; amended to be effective March 27, 1990, 15 TexReg 1411; amended to be effective August 21, 1990, 15 TexReg 4504; amended to be effective May 19, 1992, 17 TexReg 3252; amended to be effective September 2, 1993, 18 TexReg 5594; amended to be effectiveFebruary 21, 1994, 19 TexReg 806; amended to be effective January 25, 1995, 20 TexReg 151;   amended to be effective February 16, 1998, 23 TexReg 1099; amended to be effective March 26, 2000, 25 TexReg 2400; amended to be effective July 10, 2000, 25 TexReg 6557; amended to be effective September 13, 2001, 26 TexReg 6962; amended to be effective December 31, 2003, 28 TexReg 11612; amended to be effective May 3, 2006, 31 TexReg 3588; amended to be effective June 5, 2008, 33 TexReg 4332; amended to be effective March 15, 2010, 35 TexReg 2202; amended to be effective December 22, 2011, 36 TexReg 8574; amended to be effective December 26, 2013, 38 TexReg 9374; amended to be effective September 5, 2016, 41 TexReg 6754."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=179790&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "179790",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "81",
                "label": "INSURANCE"
            },
            "rule": {
                "number": "§81.5",
                "label": "Eligibility"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201045&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201045",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Employees.(1) Full-time Employees. Eligibility for GBP health coverage for full-time employees begins on the first day of the calendar month following the employee's completion of the health insurance waiting period. If the employee described in paragraphs (A) or (B) does not enroll in GBP health coverage on or before becoming eligible, he/she will automatically be enrolled in HealthSelect of Texas upon becoming eligible.(A) A full-time employee of an employer other than an institution of higher education with existing, current, and continuous GBP health coverage as of the date the employee begins active duty or the elected or appointed officer is qualified for and begins to hold office, is eligible for GBP health coverage under this subsection without a waiting period provided there has been no break in coverage in the GBP.(B) A full-time employee of an institution of higher education is eligible for GBP health coverage on the first day that an employee performs services as an employee of an institution of higher education only if:(i) the full amount of insurance required contributions are paid for the employee's coverage from the first date of employment through the completion of the health insurance waiting period;(ii) any insurance required contributions paid as provided in clause (i) of this subparagraph shall not be paid using money appropriated from the general revenue fund; and(iii) any institution of higher education electing to pay the insurance required contribution for any employee as described in this subparagraph must do so for all eligible similarly situated full-time employees.(2) Part-time employees.(A) A part-time employee or other employee of an employer other than an institution of higher education who is not eligible for automatic coverage becomes eligible for GBP health coverage upon completion of the health insurance waiting period and upon application to participate in the GBP, subject to the provisions of §81.7(a)(2) of this chapter (relating to Enrollment and Participation). A rehired part-time employee of the state of Texas, including a new part-time employee, each with existing, current, and continuous GBP health coverage as of the date the employee begins active duty or is qualified for and begins to hold office, who is not eligible for automatic coverage is eligible for coverage without a waiting period provided there has been no break in coverage.(B) A part-time employee of an institution of higher education is eligible for GBP health coverage on the first day that a part-time employee performs services as a part-time employee of an institution of higher education only if:(i) the full amount of insurance required contributions are paid for the part-time employee's coverage from the first date of employment through the completion of the health insurance waiting period;(ii) any insurance required contributions paid as provided in clause (i) of this subparagraph shall not be paid using money appropriated from the general revenue fund; and(iii) any institution of higher education electing to pay any portion of the insurance required contribution for any part-time employee as described in this subparagraph or in §1551.101(e)(2) of the Act, must do so for all eligible similarly situated part-time employees.(C) An institution of higher education is also not prohibited from contributing a portion or all of the insurance required contribution for certain part-time employees described by §1551.101(e)(2) of the Act, only if:(i) the insurance required contributions paid by the institution of higher education shall not be paid with funds that are appropriated from the general revenue fund;(ii) any institution of higher education electing to pay the insurance required contributions for any part-time employee as described in §1551.101(e)(2) of the Act, must do so for all eligible part-time employees described therein; and(iii) any insurance required contributions paid as provided in clause (i) of this subparagraph must be paid from the first date of the part-time employee's initial enrollment.(b) Retirees.(1) A retiree who is at least 65 years of age with a minimum of 10 years eligible service credit or a retiree whose age and eligible service credit equals or exceeds 80 with a minimum of 10 years eligible service credit, is eligible for GBP health coverage on the day he/she becomes an annuitant provided the individual retires directly from state service. If the individual does not retire directly from state service as described in §1551.1055(b) of the Act, eligibility for GBP health coverage begins on the first day of the calendar month following 60 days after the date of retirement.(2) A retiree who is less than 65 years of age with a minimum of 10 years eligible service credit is eligible for GBP health coverage with the applicable state contribution on the first day of the calendar month following the date on which the individual reaches 65 years of age, subject to meeting the required health insurance waiting period, if applicable.(3) ORP Retirees.(A) A participant in the ORP is eligible for GBP health coverage on the day he/she receives or is eligible to receive an annuity under the ORP program or would have been eligible to receive an annuity had his/her membership been in TRS rather than the ORP, and meets the age, length-of-service, any applicable health insurance waiting period, and other requirements as provided in this subsection.(B) A participant in the ORP is eligible for additional coverage and plans, which include optional coverage in the GBP, as long as he/she receives or is eligible to receive an annuity under the ORP program or would have been eligible to receive an annuity had his/her membership been in TRS rather than the ORP.(4) Retirees eligible for interim insurance. A retiree with at least 10 years of eligible service credit who is not eligible for a state contribution for GBP health coverage at the time of retirement is eligible for dental and vision coverage and, except as provided in paragraph (5) of this subsection, optional life insurance and dependent life insurance at the time of retirement. A retiree described by this paragraph and by paragraph (2) of this subsection, is eligible for GBP health coverage under the provisions described in §1551.323 of the Act, upon payment of the total cost, as determined by the Board of Trustees. For purposes of §1551.323, the total cost shall be determined by the Board of Trustees based on an actuarial determination, as recommended by ERS' consulting actuary for insurance, of the estimated total claims costs for individuals eligible for interim insurance pursuant to §1551.323 of the Act. If an individual who is eligible for this interim insurance is also eligible for COBRA coverage, then COBRA coverage should be exhausted, if possible, before the interim insurance begins as described by this subsection.(5) A retiree is eligible for optional life insurance and dependent life insurance coverage if the retiree was enrolled in such coverage on the day before becoming an annuitant. Except as provided in paragraph (6) of this subsection, a retiree may not increase the amount of life insurance for which the retiree was enrolled on the day before becoming an annuitant, but may cancel life insurance coverage at any time. Canceled life insurance coverage may never be reinstated. A retiree is not eligible for disability or AD&D coverage.(6) A retiree who is not enrolled in retiree optional life insurance or dependent life insurance coverage is eligible to apply for minimum retiree optional life insurance or dependent life insurance coverage. Submission of evidence of insurability acceptable to ERS shall be required for enrollment in such coverage.(7) A retiree who was not enrolled in dependent life insurance coverage on the day before becoming an annuitant becomes eligible for dependent life insurance coverage of a newly acquired dependent on the first day of the month following the date on which the individual becomes a dependent of the retiree.(8) A retiree who returns to work for an employer may continue coverage for which he/she is eligible as a retiree, or, subject to subsection (a) of this section, elect to participate in the GBP as a full-time or part-time employee. Time spent in an eligible position as a return to work retiree may not be used to meet eligibility requirements for retiree health insurance coverage. A return to work retiree who elected active employee coverage will be re-enrolled in retiree coverage for which he/she is eligible and may elect new retiree coverage for which he/she is eligible at the time of separation from active duty.(9) A retiree whose extended life insurance benefits are terminated for reasons other than termination pursuant to §1551.351 of the Act is eligible for retiree life insurance coverage on the first day of the month following the extended life insurance benefits termination date.(c) Dependents of employees and retirees.(1) The dependents of an employee/retiree are eligible for coverage on the same day that the employee/retiree becomes eligible. Except as otherwise provided in this paragraph, a newly acquired dependent is eligible for coverage on the first day of the month following the date on which the individual becomes a dependent of a covered employee/retiree. The employee/retiree must be enrolled for a particular coverage before the employee's/retiree's dependents are eligible for that type of coverage. An eligible child for whom a covered employee/retiree is court-ordered to provide medical support becomes eligible for GBP health coverage upon receipt by the employer of a valid court order. A newborn natural child is eligible automatically on the date of birth. A newly adopted child is eligible automatically on the date of placement for adoption.(2) Except as otherwise provided in this paragraph, double coverage is not permitted for any participant in the GBP.(A) A participant may not be simultaneously covered by basic or optional term life insurance as an employee/retiree and dependent term life insurance as a dependent. A family member who is covered as an employee/retiree is not eligible to be covered as a dependent in the GBP. Except as provided in subparagraph (B) of this paragraph, a dependent may not be covered by more than one employee/retiree for the same coverage.(B) A child who is an eligible dependent of two employees/retirees in the GBP may be enrolled in dependent life insurance coverage and accidental death and dismemberment coverage by both employees/retirees, if otherwise eligible.(d) Former COBRA unmarried children.(1) A former COBRA unmarried child is eligible to continue the GBP health, dental and vision insurance coverage in which the child was enrolled upon expiration of the child's continuation coverage under COBRA.(2) A former COBRA unmarried child continuing health insurance coverage under the provisions of this subsection is eligible for dental and vision insurance coverage if such coverage was not in effect upon the expiration of the child's continuation coverage under COBRA.(3) A former COBRA unmarried child is eligible to enroll a newly acquired dependent child within 30 days of the child's date of birth or placement for adoption. Otherwise, he/she cannot enroll any other dependents in GBP health coverage.(e) Surviving dependents.(1) The surviving spouse of a deceased retiree or an active employee is eligible to continue coverage in the GBP health, dental and vision plans in which the surviving spouse was enrolled on the day of death of the employee/retiree provided, however, the deceased active employee must have had at least 10 years of service credit, including at least 3 years on August 31, 2001 or at least 10 years after August 31, 2001 of service as an eligible employee with an employer, at the time of death. A deceased active employee described by §1551.114 of the Act must have had at least 10 years of eligible service credit, as determined by ERS, before his/her surviving spouse is eligible to continue coverage. A surviving spouse who is also an annuitant or employee shall not be eligible for surviving spouse benefits as long as he/she is eligible for coverage as an employee/retiree. Participants continuing coverage as surviving spouses are not eligible for life insurance coverage.(2) The dependent child of a deceased retiree or an active employee is eligible to continue coverage in the GBP health, dental and vision plans in which the dependent children were enrolled on the day of death of the employee/retiree provided, however, the deceased active employee must have had, at the time of death, at least 10 years of service credit, including at least 3 years on August 31, 2001 or at least 10 years after August 31, 2001 of service as an eligible employee with an employer, as long as the surviving spouse is eligible and continues to participate in the GBP. A deceased active employee described by §1551.114 of the Act must have had at least 10 years of eligible service credit, as determined by ERS, before his/her dependent children are eligible to continue coverage. Dependent children of deceased employees/retirees will be considered as dependents of the deceased employee's/retiree's surviving spouse for purposes of the GBP. Participants continuing coverage as surviving dependents are not eligible for life insurance coverage.(3) If a retiree or active employee does not have a spouse covered in the GBP at the time of his/her death, dependent children of the deceased retiree or active employee are eligible to continue coverage in the GBP health, dental and vision plans in which the dependent children were enrolled on the day of death of the employee/retiree provided, however, the deceased active employee must have had at least 10 years of service credit, including at least 3 years on August 31, 2001 or at least 10 years after August 31, 2001 of service as an eligible employee with an employer, at the time of death. A deceased retiree or active employee described by §1551.114 of the Act, must have had at least 10 years of eligible service credit, as determined by ERS, before his/her dependent children are eligible to continue coverage. A surviving dependent child may continue such coverage until the dependent child becomes ineligible as defined in §81.1 of this chapter (relating to Definitions). Participants continuing coverage as surviving dependents are not eligible for life insurance coverage.(4) A person who is the surviving spouse or dependent of a member may secure GBP health coverage if the individual was eligible to participate in the GBP under §§1551.101, 1551.102 or 1551.155(a) of the Act, but was not participating at the time of the individual's death.(5) A surviving spouse or dependent seeking group coverage under paragraphs (1) - (4) of this subsection must apply for coverage not later than the 30th day after the date on which the individual who was eligible to participate in the GBP dies; and shall pay for coverage at the group rate for other participants.(6) A surviving spouse or an eligible dependent child of a paid law enforcement officer employed by the state or a custodial employee of the institutional division of the Texas Department of Criminal Justice who suffers a death in the line of duty as provided by Chapter 615, Government Code, shall be eligible for coverage in the GBP as provided in subparagraphs (A) - (D) of this paragraph.(A) Coverage for a surviving spouse under this paragraph shall be at the same rate as the employee-/retiree-only coverage, and the surviving spouse shall be entitled to the benefit of the state contribution applied to employee-/retiree-only coverage.(B) Coverage for a surviving spouse with children shall be at the same rate as the employee-/retiree-with-children coverage, and the survivors shall be entitled to receive the benefit of the state contribution applied to coverage for an employee-/retiree-with-children.(C) Where there is no surviving spouse, a surviving child eligible for coverage under this paragraph shall be entitled to the benefit of the state contribution for employee-/retiree-only coverage.(D) In order for a surviving spouse or children to receive coverage in the GBP under this paragraph, they must pay the balance, if any, of all contributions due after applying the state contribution to such coverage. Any out-of-pocket insurance required contributions due from the survivor may be deducted by ERS from the survivor's annuity payment, if any, or must be paid to ERS by the survivor through electronic bank deduction or direct payment. The applicable state contributions will be paid to ERS by the employer that employed the deceased law enforcement officer or custodial employee.(7) A surviving spouse and eligible dependents, and a surviving dependent child, continuing GBP health coverage under the provisions of this subsection are eligible for dental and vision insurance coverage if such coverage was not in effect on the date of death of the deceased employee/retiree. Any insurance required contributions are the sole responsibility of the surviving spouse and dependents.(f) Disability retiree. An ORP participant who applies and is approved for disability retirement is entitled to retiree insurance coverage as provided in §81.7(a)(3) of this chapter. An ORP participant authorized by the Act with at least 10 years of eligible service credit, and granted ORP disabled retiree status in the GBP, as established by ERS, is eligible to participate in the GBP. Initial or continued eligibility for insurance coverage for an ORP disabled retiree will be determined by ERS under the following provisions.(1) An ORP participant is eligible for ORP disabled retiree status in the GBP if the ORP participant is not otherwise eligible to participate in the GBP as an employee/retiree and is certified by a licensed physician designated by ERS as disabled as provided in paragraph (2) of this subsection. An ORP participant may apply for disabled retiree status in the GBP by filing a written application for ORP disabled retiree status in the GBP or having an application filed with ERS by the ORP participant's spouse, employer, or legal representative. In addition to an application for ORP disabled retiree status in the GBP, an ORP participant must file with ERS the results of a medical examination of the ORP participant. After an ORP participant applies for ORP disabled retiree status in the GBP, ERS may require the ORP participant to submit additional information about the disability. ERS will prescribe forms for the information required by this section.(2) If a licensed physician designated by ERS finds that the ORP participant is mentally or physically disabled from the further performance of duty and that the disability is probably permanent, the physician will certify the disability. The executive director is authorized to approve ORP disabled retiree status in the GBP after a certification of disability is made. Once each year during the first five years after an ORP participant enrolls in the GBP as an ORP disabled retiree, and once in each three-year period after that, ERS may require an ORP disabled retiree to undergo a medical examination by a physician ERS designates. If an ORP disabled retiree refuses to submit to a medical examination as provided by this section, ERS will suspend the ORP disabled retiree's enrollment in the GBP until the ORP disabled retiree submits to an examination. ERS will terminate the ORP disabled retiree's coverage in the GBP and notify the ORP participant in writing if:(A) ERS concurs with a certification issued by the designated physician which finds that an ORP disabled retiree is no longer mentally or physically disabled from the further performance of duty; or(B) an ORP disabled retiree refuses for more than one year to submit to a required medical examination.(3) The effective date of coverage for an ORP disabled retiree in the GBP is the first of the month following the date the application for ORP disabled retiree status in the GBP is approved by ERS, or the first of the month following the date employment is terminated, whichever is later.(g) Former members of the Legislature. A former member of the Legislature authorized by §1551.108(1) of the Act to continue to participate in the GBP is eligible for the coverage, other than disability income insurance coverage, in effect on the day before the member leaves office.(h) Former employees of the Legislature. A former employee of the Legislature authorized by §1551.108(2) of the Act to continue to participate in the GBP is eligible for the coverage, other than disability income insurance coverage, in effect on the day before the employee terminates employment.(i) Former board members. Subject to the limitations of this subsection, a former member of a board or commission or of the governing body of an institution of higher education, as both are described in §1551.109 of the Act, is eligible to continue the coverage, other than disability income insurance coverage, in effect on the day before the member leaves office if no lapse in coverage occurs after the end of the term of office. Life insurance overage may not exceed Election II.(j) Continuation of GBP health, dental and vision coverage only for certain spouses and dependent children of employee/retirees, and for certain terminating employees, their spouses, and dependent children (as provided by COBRA).(1) The surviving spouse and/or dependent child/children of a deceased employee/retiree who are not eligible to continue coverage under the provisions of the Act or subsection (e) of this section, who are not entitled to benefits under the Social Security Act, Title XVIII, and who are not covered under any other group health plan, may continue for up to 36 months the GBP health, dental and vision coverage only that were in effect immediately prior to the date of death of the employee/retiree. A formal election must be made to continue coverage by the surviving spouse and/or the dependent child/children. The formal election must be postmarked or received by ERS within 60 days of the date of notice contained in the notice of right to continue coverage form or by the date coverage terminated, whichever is later.(2) An employee whose employment has been terminated voluntarily or involuntarily (other than for gross misconduct), whose work hours have been reduced such that the employee is no longer eligible for the GBP as an employee, or whose coverage has ended following the maximum period of LWOP as provided for in §81.7(g)(2)(A) of this chapter, except for those persons not eligible pursuant to §81.11(f) of this chapter (relating to Cancellation of Coverage and Sanctions) and/or his/her spouse and/or dependent child/children who are not eligible to continue coverage under the provisions of the Act or subsection (f), (g) or (h) of this section, who are not entitled to benefits under the Social Security Act, Title XVIII, who are not covered under any other group health plan, may continue for up to 18 months the GBP health, dental and vision coverage only without the basic term life that were in effect immediately prior to the date of the loss of coverage. A formal election must be made to continue coverage by the employee and/or his/her spouse and/or dependent child/children. The formal election must be postmarked or received by ERS within 60 days of the date of notice contained in the notice of right to continue coverage form or by the date coverage terminated, whichever is later.(3) If an employee, spouse, or dependent child is determined by the Social Security Administration to have been disabled before or during the first 60 days of continuation coverage, all covered individuals may continue GBP health, dental and vision coverage extended up to an additional 11 months, for a total of 29 months. Notification of the Social Security Administration's determination must be received by ERS before the end of the original 18 months of continuation coverage. Continuation coverage will be canceled the month that begins more than 30 days after the date the Social Security Administration determines that the participant is no longer disabled.(4) A spouse who is divorced from an employee/retiree and/or the spouse's dependent child/children who are not otherwise eligible to continue coverage under the provisions of the Act or subsection (c) of this section, who are not entitled to benefits under the Social Security Act, Title XVIII, who are not covered under any other group health plan, may continue for up to 36 months the GBP health, dental and vision coverage only that were in effect immediately prior to the date the divorce decree is signed. The employee/retiree or the divorced spouse or the divorced spouse's dependent child/children must notify ERS through the benefits coordinator of the divorce within 60 days from the date the divorce decree is signed. A formal election must be made to continue coverage by the divorced spouse and/or the dependent child/children. The formal election must be postmarked or received by ERS within 60 days of the date of notice contained in the notice of right to continue coverage form or by the date coverage is terminated, whichever is later.(5) A dependent child who has attained 26 years of age, who is not otherwise eligible to continue coverage indefinitely under the provisions of the Act or subsection (c) of this section, who is not entitled to benefits under the Social Security Act, Title XVIII, who is not covered under any other group health plan, may continue for up to 36 months the GBP health, dental and vision coverage only that were in effect immediately prior to the date of the child's 26th birthday. The child or employee/retiree must notify ERS through the benefits coordinator within 60 days of the child's 26th birthday. A formal election must be made by the 26-year-old child to continue coverage. The formal election must be postmarked or received by ERS within 60 days of the date of notice contained in the notice of right to continue coverage form or by the date coverage is terminated, whichever is later.(6) Extension of continuation of coverage for certain spouses and/or dependent child/children of former employees who are continuing coverage under the provisions of paragraph (2) of this subsection is governed by the following provisions.(A) The surviving spouse and/or dependent child/children of a deceased former employee whose death occurred during the period of continuation coverage, who satisfy the provisions of paragraph (1) of this subsection and who notify ERS within 60 days of the date of death of the former employee are entitled to a total of 36 months of continuation coverage.(B) A spouse who is divorced from a former employee during the period of continuation coverage and/or the divorced spouse's dependent child/children who satisfy the provisions of paragraph (4) of this subsection are entitled to a total of 36 months of continuation coverage.(C) A dependent child who attains the age of 26 years during the period of continuation coverage and who satisfies the provisions of paragraph (5) of this subsection is entitled to a total of 36 months of continuation coverage.(D) An employee, spouse, or dependent child determined by the Social Security Administration to be disabled at the time of termination of the employee's employment and who satisfies the provisions of paragraph (3) of this subsection is entitled to not more than 29 months of continuation coverage.(E) No person shall be allowed to continue GBP health, dental and vision coverage under the provisions of this subsection for more than 36 months.(7) A person who continues benefits under the provisions of paragraphs (1) - (6) of this subsection may change coverage levels or plans during the continuation period on the same basis as an employee/retiree participant, provided, however, that GBP health coverage which is canceled during the continuation period may not be reestablished.(8) In all situations deemed applicable by ERS where state or federal laws or regulations mandate specific terms or provisions which are omitted or conflict with specific terms or provisions of the plan documents or ERS' rules, the appropriate plan documents and rules shall be interpreted and administered to comply with such laws or regulations.",
            "sourceNote": "Source Note: The provisions of this §81.5 adopted to be effective September 1, 1985, 10 TexReg 2321; amended to be effective March 19, 1986, 11 TexReg 1149; amended to be effective October 14, 1986, 11 TexReg 3523; amended to be effective September 1, 1986, 11 TexReg 3863; amended to be effective December 19, 1986, 11 TexReg 5135; amended to be effective January 9, 1987, 11 TexReg 5133; amended to be effective November 1, 1987, 12 TexReg 3480; amended to be effective May 25, 1990, 15 TexReg 2687; amended to be effective August 21, 1990, 15 TexReg 4504; amended to be effective May 19, 1992, 17 TexReg 3252; amended to be effective July 1, 1993, 18 TexReg 4094; amended to be effective February 21, 1994, 19 TexReg806; amended to be effective January 25, 1995, 20 TexReg 151; amended to be   effective July 3, 1995, 20 TexReg 4409; amended to be effective February 16, 1998, 23 TexReg 1099; amended to be effective September 16, 1999, 24 TexReg 7276; amended to be effective March 26, 2000, 25 TexReg 2400; amended to be effective July 10, 2000, 25 TexReg 6557; amended to be effective September 11, 2003, 28 TexReg 7780; amended to be effective December 31, 2003, 28 TexReg 11612; amended to be effective June 29, 2004, 29 TexReg 6120; amended to be effective May 3, 2006, 31 TexReg 3588; amended to be effective March 15, 2010, 35 TexReg 2202; amended to be effective December 22, 2011, 36 TexReg 8574; amended to be effective December 26, 2013, 38 TexReg 9374; amended to be effective September 5, 2016, 41 TexReg 6754."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201045&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201045",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "81",
                "label": "INSURANCE"
            },
            "rule": {
                "number": "§81.7",
                "label": "Enrollment and Participation"
            },
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                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Enrollment Categories.(1) Full-time employees and their dependents.(A) A new employee:(i) who is not subject to the health insurance waiting period and is eligible under the Act and as provided for in §81.5(a)(1) of this chapter (relating to Eligibility) for automatic insurance coverage, shall be enrolled in the basic plan unless the employee completes an enrollment form to elect other coverage or to waive GBP health coverage as provided in §81.8 of this chapter (relating to Waiver of Health Coverage). Coverage of an employee under the basic plan, and other coverage selected as provided in this paragraph, becomes effective on the date on which the employee begins active duty.(ii) who is subject to the health insurance waiting period and is eligible under the Act and as provided for in §81.5(a)(1) of this chapter for automatic insurance coverage, shall be enrolled in the basic plan beginning on the first day of the calendar month following 60 days of employment unless, before this date, the employee completes an enrollment form to elect other coverage or to waive GBP health coverage as provided in §81.8 of this chapter.(iii) who has existing, current, and continuous GBP health coverage as of the date the employee begins active duty is not subject to the health insurance waiting period and is eligible to enroll as a new employee in health insurance and additional coverage and plans which include optional coverage by completing an enrollment form before the first day of the calendar month after the date the employee begins active duty. Health and additional coverage selected before the first day of the calendar month after the date the employee begins active duty are effective the first day of the following month.(B) Dependent enrollment and optional coverage:(i) To enroll eligible dependents, to elect to enroll in an approved HMO, and to elect additional coverage and plans which include optional coverage, an employee not subject to the health insurance waiting period shall complete an enrollment form within 30 days after the date on which the employee begins active duty. Coverage selected within 30 days after the date on which the employee begins active duty becomes effective on the first day of the month following the date on which the enrollment form is completed. An enrollment form completed after the initial period for enrollment as provided in this paragraph is subject to the provisions of subsection (d) of this section.(ii) To enroll eligible dependents or to elect to enroll in an approved HMO, an employee subject to the health insurance waiting period shall complete an enrollment form before the first day of the month following 60 days of employment. Coverage selected before the first day of the month following 60 days of employment becomes effective on the first day of the month following 60 days of employment. An employee completing an enrollment form after the initial period for enrollment as provided in this paragraph is subject to the provisions of subsection (d) of this section. The provisions of subparagraph (A)(ii) of this paragraph apply to the election of additional coverage and plans, which include optional coverage, for an employee subject to the health insurance waiting period.(C) Except as otherwise provided in this section, an employee may not change coverage.(D) An eligible employee who enrolls in the GBP is eligible to participate in premium conversion and shall be automatically enrolled in the premium conversion plan. The employee shall be automatically enrolled in the plan for subsequent plan years as long as the employee remains on active duty.(E) Coverage for a newly eligible dependent, other than a dependent referred to in subparagraph (F) or (H) of this paragraph, will be effective on the first day of the month following the date the person becomes a dependent if an enrollment form is completed on or within 30 days after the date the person first becomes a dependent. If the enrollment form is completed and signed after the initial period for enrollment as provided in this paragraph, the enrollment form will be governed by the rules in subsection (d) of this section.(F) A member's newborn natural child will be covered immediately and automatically for 30 days from the date of birth in the health plan in effect for the employee/retiree. A member's newly adopted child will be covered immediately and automatically from the date of placement for adoption for 30 days in the health plan in effect for the employee/retiree. To continue coverage for more than 30 days after the date of birth or placement for adoption, an enrollment form for GBP health coverage must be submitted by the member within 30 days after the date of birth or placement for adoption.(G) The effective date of a newborn natural child's life and AD&D coverage will be the date of birth, if the child is born alive, as certified by an attending physician or a certified nurse-midwife. The effective date of a newly adopted child's life and AD&D coverage will be the date of placement for adoption. The effective date of all other eligible dependents' life and AD&D coverage will be as stated in subparagraph (E) of this paragraph.(H) GBP health coverage of a member's eligible child for whom a covered employee/retiree is court-ordered to provide medical support becomes effective on the date on which the member's benefits coordinator receives a valid copy of the qualified medical child support order.(I) The effective date of GBP health coverage for an employee's/retiree's dependent, other than a newborn natural child or newly adopted child, will be as stated in subparagraph (E) of this paragraph.(J) For purposes of this section, an enrollment form is completed when all information necessary to effect an enrollment has been transmitted to ERS in the form and manner prescribed by ERS.(2) Part-time employees. A part-time employee or other employee who is not automatically covered must complete an application/enrollment form provided by ERS authorizing necessary deductions for insurance required contributions for elected coverage. All other rules for enrollment stated in paragraph (1) of this subsection, other than the rule as to automatic coverage, apply to such employee:(A) If the employee is not subject to a health insurance waiting period, this form must be submitted to ERS either through ERS Online or through his/her benefits coordinator on, or within 30 days after, the date on which the employee begins active duty.(B) If the employee is subject to a health insurance waiting period, this form must be submitted to ERS either through ERS Online or through his/her benefits coordinator before the first day of the month following 60 days of employment.(C) If the employee has existing, current, and continuous GBP health coverage as of the date the employee begins active duty, the employee is not subject to the health insurance waiting period and is eligible to enroll as a new employee in health insurance and additional coverage and plans which include optional coverage by completing an enrollment form before the first day of the calendar month after the date the employee begins active duty. Health and additional coverage selected before the first day of the calendar month after the date the employee begins active duty are effective the first day of the following month.(3) Retirees and their dependents.(A) Provided the insurance required contributions are paid or deducted, an employee's GBP health, dental, vision and term life insurance coverage (including eligible dependent coverage) may be continued upon retirement as provided in §81.5(b) of this chapter. The life insurance will be reduced to the maximum amount which the retiree is permitted to retain under the insurance plan as a retiree. All other coverage in force for an active employee, but not available to a retiree, will automatically be discontinued concurrently with the commencement of retirement status. Except as provided in subparagraph (E) of this paragraph, if a retiree retires directly from active duty and is not covered as an active employee on the day before becoming an annuitant, the retiree may enroll in the basic plan.(B) A retiree may enroll in GBP health, dental, vision and life insurance coverage for which the retiree is eligible as provided in §81.5(b) of this chapter, including dependent coverage, by completing an enrollment form as specified in clauses (i) - (iii) of this subparagraph. For the purposes of this subparagraph, the effective date of retirement of a retiree who is eligible to receive, but who has not yet received, an annuity is the date on which ERS receives written notice of the retirement. An application/enrollment form received after the initial period for enrollment as provided in this subparagraph, is subject to the provisions of subsection (d) of this section.(i) A retiree who is not subject to the health insurance waiting period on the effective date of retirement as provided in §81.5(b) of this chapter, may enroll in GBP health, dental, vision and life insurance coverage or waive GBP health coverage as provided in §81.8 of this chapter for which the retiree is eligible, including dependent coverage, by completing an enrollment form or waiver of coverage as applicable before, on, or within 30 days after, the retiree's effective date of retirement.(ii) A retiree who is subject to the health insurance waiting period on the effective date of retirement as provided in §81.5(b) of this chapter, may enroll in GBP health coverage or waive GBP health coverage as provided in §81.8 of this chapter for which the retiree is eligible, including dependent coverage, by completing an enrollment form or waiver of coverage as applicable, before the first day of the calendar month following 60 days after the date of retirement or before the first day of the calendar month after the retiree's 65th birthday, whichever is later as appropriate. The effective date for such coverage shall be the first day of the calendar month following 60 days after the date of retirement or the first day of the calendar month following the retiree's 65th birthday, whichever is later as appropriate.(iii) A retiree who is ineligible for health insurance on the effective date of retirement as provided in §81.5(b) of this chapter, may enroll in GBP health coverage or waive GBP health coverage as provided in §81.8 of this chapter for which the retiree is eligible, including dependent coverage, by completing an enrollment form or waiver of coverage as applicable, before the first day of the calendar month after the retiree's 65th birthday. The effective date for such coverage shall be the first day of the calendar month following 60 days after the date of retirement or the first day of the calendar month following the retiree's 65th birthday, whichever is later.(C) A retiree who becomes eligible for minimum retiree optional life insurance coverage or dependent life insurance coverage as provided in §81.5(b)(6) of this chapter, may apply for approval of such coverage by providing evidence of insurability acceptable to ERS.(D) Enrollments in and applications to change coverage become effective as provided in subparagraph (B) of this paragraph unless other coverage is in effect at that time. If other coverage is in effect at that time, coverage or waiver of coverage becomes effective on the first day of the month following the date of approval of retirement by ERS; or, if cancellation of the other coverage preceded the date of approval of retirement, the first day of the month following the date the other coverage was canceled.(E) A retiree who seeks enrollment in GBP health coverage after turning age 65 will be automatically enrolled in HealthSelect of Texas until Medicare enrollment is confirmed by CMS. A retiree who is enrolled in a health plan and turns age 65 will remain enrolled in that health plan until the retiree's Medicare enrollment can be confirmed by CMS. Once Medicare enrollment is confirmed, the retiree will be automatically enrolled in the Medicare Advantage Plan unless the retiree opts out of the Medicare Advantage Plan and enrolls in other coverage by completing an enrollment form as specified in subparagraph (B)(i) - (iii) of this paragraph. If the retiree is determined to be ineligible for Medicare coverage, then he/she will be returned to the coverage in place immediately before turning 65.(F) A Medicare-eligible retiree who seeks enrollment in GBP health coverage, or is retired and enrolled in a health plan and becomes eligible for Medicare, will be automatically enrolled in the HealthSelect of Texas Prescription Drug Program until Medicare enrollment is confirmed by CMS. Upon confirmation of Medicare enrollment, the retiree will be enrolled in HealthSelect Medicare Rx. A retiree who declines HealthSelect Medicare Rx loses all GBP prescription drug coverage. If the retiree is determined to be ineligible for Medicare coverage, then he/she will be returned to the coverage in place immediately before turning 65.(4) Medicare-eligible Dependents.(A) A dependent as defined in §81.1 of this chapter (relating to Definitions) who becomes eligible for Medicare-primary coverage as specified in §81.1 of this chapter, either through disability, age, or other requirements as set forth by CMS, will be automatically enrolled in the Medicare Advantage Plan, once Medicare enrollment is confirmed by CMS, unless the retiree and his/her dependents opt out of the Medicare Advantage Plan and enroll in other coverage by completing an enrollment form as specified in paragraph (3)(B)(i) - (iii) of this subsection. If the dependent is determined to be ineligible for Medicare coverage, then he/she will be returned to the coverage in place immediately before turning 65.(B) A Medicare-eligible dependent eligible for GBP health coverage will be automatically enrolled in HealthSelect Medicare Rx, once Medicare enrollment is confirmed by CMS. A Medicare-eligible dependent who declines HealthSelect Medicare Rx loses all GBP prescription drug coverage. If the dependent is determined to be ineligible for Medicare coverage, then he/she will be returned to the coverage in place immediately before turning 65.(5) Surviving dependents.(A) Provided that the insurance required contributions are paid or deducted, the health, dental, and vision insurance coverage of a surviving dependent may be continued on the death of the deceased employee/retiree if the dependent is eligible for such coverage as provided by §81.5(e) of this chapter.(B) A surviving spouse who is receiving an annuity shall make insurance required contribution payments by deductions from the annuity as provided in subsection (h)(7) of this section. A surviving spouse who is not receiving an annuity may make payments as provided in subsection (h)(7) of this section.(C) A Medicare-eligible surviving dependent eligible for GBP health coverage will be automatically enrolled in the Medicare Advantage Plan, once Medicare enrollment is confirmed by CMS, unless the surviving dependent opts out of the Medicare Advantage Plan and enrolls in other coverage.(D) A Medicare-eligible surviving dependent eligible for GBP health coverage will be automatically enrolled in HealthSelect Medicare Rx, once Medicare enrollment is confirmed by CMS. A Medicare-eligible surviving dependent who declines HealthSelect Medicare Rx loses all GBP prescription drug coverage.(6) Former COBRA unmarried children. A former COBRA unmarried child must provide an application to continue GBP health, dental and vision insurance coverage within 30 days after the date the notice of eligibility is mailed by ERS. Coverage becomes effective on the first day of the month following the month in which continuation coverage ends. Insurance required contribution payments must be made as provided in subsection (h)(1)(A) of this section.(b) Premium conversion plans.(1) An eligible employee participating in the GBP is deemed to have elected to participate in the premium conversion plan and to pay insurance required contributions with pre-tax dollars as long as the employee remains on active duty. The plan is intended to be qualified under the Internal Revenue Code, §79 and §106.(2) Maximum benefit available. Subject to the limitations set forth in these rules and in the plan, to avoid discrimination, the maximum amount of flexible benefit dollars which a participant may receive in any plan year for insurance required contributions under this section shall be the amount required to pay the participant's portion of the insurance required contributions for coverage under each type of insurance included in the plan.(c) Special rules for additional coverage and plans which include optional coverage.(1) Only an employee/retiree or a former officer or employee specifically authorized to join the GBP may apply for additional coverage and plans. An employee/retiree may apply for or elect additional coverage and plans for which he/she is eligible without concurrent enrollment in GBP health coverage provided by the GBP. Additional coverage and plans, as determined by the Board of Trustees, may include:(A) dental coverage;(B) optional term life;(C) dependent term life;(D) short- and long-term disability;(E) voluntary accidental death and dismemberment;(F) long-term care;(G) health care and dependent care reimbursement;(H) commuter spending account;(I) vision;(J) limited purpose flexible spending account; or(K) health savings account.(2) An eligible member in the GBP and eligible dependents may participate in an approved HMO if they reside in the approved service area of the HMO and are otherwise eligible under the terms of the contract with the HMO.(3) An eligible member in the GBP electing additional coverage and plans and/or Consumer Directed HealthSelect, HMO or Medicare Advantage coverage in lieu of the basic plan is obligated for the full payment of insurance required contributions. If the insurance required contributions are not paid, all coverage not fully funded by the state contribution will be canceled. A person eligible for the state contribution will retain member-only GBP health coverage as a member provided the state contribution is sufficient to cover the insurance required contribution for such coverage. If the state contribution is not sufficient for member-only coverage in the health plan selected by the member employee/retiree, the member employee/retiree will be enrolled in the basic plan or the Medicare Advantage Plan, as applicable, except as provided for in subsection (g)(2)(B) of this section.(4) An eligible member in the GBP enrolled in an HMO and the HMO's contract is not renewed for the next fiscal year will be eligible to make one of the following elections:(A) change to another approved HMO for which the member is eligible by completing an enrollment form during the annual enrollment period. The effective date of the change in coverage will be September 1;(B) enroll in HealthSelect of Texas, Consumer Directed HealthSelect, or a Medicare Advantage Plan (if eligible) by completing an enrollment form during the annual enrollment period. The effective date of the change in coverage will be September 1; or(C) if the member does not make one of the elections, as defined in subparagraphs (A) or (B) of this paragraph, the member and covered eligible dependents will automatically be enrolled in the basic plan or the Medicare Advantage Plan, as applicable.(5) A member enrolled in an HMO whose contract with ERS is terminated during the fiscal year or that fails to maintain compliance with the terms of its contract, as determined by ERS, will be eligible to make one of the following elections:(A) change to another approved HMO for which the member is eligible. The effective date of the change in coverage will be determined by ERS; or(B) enroll in HealthSelect of Texas, Consumer Directed HealthSelect, or a Medicare Advantage Plan (if eligible). The effective date of the change in coverage will be determined by ERS.(d) Changes in coverage after the initial period for enrollment.(1) Changes for a qualifying life event.(A) Subject to the provisions of paragraphs (3) and (4) of this subsection, a member shall be allowed to change coverage during a plan year within thirty (30) days of a qualifying life event that occurs as provided in this paragraph if the change in coverage is consistent with the qualifying life event.(B) A qualifying life event occurs when a participant experiences one of the following changes:(i) change in marital status;(ii) change in dependent status;(iii) change in employment status;(iv) change of address that results in loss of benefits eligibility;(v) change in Medicare or Medicaid status, or CHIP status;(vi) significant cost of benefit or coverage change imposed by a third party provider; or(vii) change in coverage ordered by a court.(C) A member who loses benefits eligibility as a result of a change of address shall change coverage as provided in paragraphs (6) - (9) of this subsection.(D) A member may apply to change coverage on, or within 30 days after, the date of the qualifying life event, provided, however, a change in election due to CHIP or Medicaid status under subparagraph (B) of this paragraph may be submitted on, or within 60 days after, the change in CHIP or Medicaid status.(E) Except as otherwise provided in subsection (a)(1)(F) and (H) of this section, the change in coverage is effective on the first day of the month following the date on which the enrollment form is completed.(F) Documentation may be required in support of the qualifying life event.(G) Following a qualifying life event, a member may change applicable coverage, drop or add an eligible dependent if the change is consistent with the qualifying life event.(2) Effects of change in cost of benefits to the premium conversion plan. There shall be an automatic adjustment in the amount of premium conversion plan dollars used to purchase optional benefits in the event of a change, for whatever reason, during an applicable period of coverage, of the cost of providing such optional benefit to the extent permitted by applicable law and regulation. The automatic adjustment shall be equal to the increase or decrease in such cost. A participant shall be deemed by virtue of participation in the plan to have consented to the automatic adjustment.(3) An eligible member who wishes to add or increase optional coverage after the initial period for enrollment must make application for approval by providing evidence of insurability acceptable to ERS, if required. Unless not in compliance with paragraph (1) of this subsection, coverage will become effective on the first day of the month following the date approval is received by ERS, if the applicant is a retiree or an individual in a direct pay status. If the applicant is an employee whose coverage was canceled while the employee was on LWOP, the approved change in coverage will become effective on the date the employee returns to active duty if the employee returns to active duty within 30 days of the approval letter. If the date the employee returns to active duty is more than 30 days after the date on the approval letter, the approval is null and void; and a new application shall be required. An employee/retiree may withdraw the application at any time prior to the effective date of coverage by submitting a written notice of withdrawal.(4) The evidence of insurability provision applies only to:(A) employees who wish to enroll in Elections III or IV optional term life insurance, except as otherwise provided in subsection (f) of this section;(B) employees who wish to enroll in or increase optional term life insurance, dependent life insurance, or disability income insurance after the initial period for enrollment;(C) employees enrolled in the GBP whose coverage was waived, dropped or canceled, except as otherwise provided in subsection (f) of this section; and(D) retirees who wish to enroll in minimum optional life insurance or dependent life insurance as provided in subsection (a)(3)(C) of this section.(5) An employee/retiree who wishes to add eligible dependents to the employee's/retiree's HMO coverage may do so:(A) during the annual enrollment period; or(B) upon the occurrence of a qualifying life event as provided in paragraph (1) of this subsection.(6) A member who is enrolled in an approved HMO and who permanently moves out of the HMO service area shall make one of the following elections, to become effective on the first day of the month following the date on which the member moves out of the HMO service area:(A) enroll in another approved HMO for which the member and all covered dependents are eligible; or(B) if the member and all covered dependents are not eligible to enroll in an approved HMO; either:(i) enroll in HealthSelect of Texas or Consumer Directed HealthSelect; or(ii) enroll in an approved HMO if the member is eligible, and drop any ineligible covered dependent, unless not in compliance with §81.11(c)(3) of this chapter (relating to Cancellation of Coverage and Sanctions).(7) When a covered dependent of a member permanently moves out of the member's HMO service area, the member shall make one of the following elections, to become effective on the first day of the month following the date on which the dependent moves out of the HMO service area:(A) drop the ineligible dependent, unless not in compliance with §81.11(c)(3) of this chapter;(B) enroll in an approved HMO if the member and all covered dependents are eligible; or(C) enroll in HealthSelect of Texas or Consumer Directed HealthSelect, provided the eligible member and all dependents enroll in the same health plan at that time.(8) An eligible member will be allowed an annual opportunity to make changes in coverage.(A) Subject to other requirements of this section, a member will be allowed to:(i) change or enroll themselves and any eligible dependents in an eligible health, dental or vision plan;(ii) enroll themselves and their eligible dependents in an eligible health, dental or vision plan from a waived or canceled status;(iii) add, decrease or cancel eligible coverage, unless prohibited by §81.11(c)(3) of this chapter;(iv) apply for coverage as provided in paragraph (3) of this subsection; and(v) waive any or all GBP coverage including health as provided in §81.8 of this chapter.(B) Surviving dependents and former COBRA unmarried children are not eligible to add dependents to coverage through annual enrollment. A surviving dependent or former COBRA unmarried child may enroll an eligible dependent in dental or vision insurance coverage if the dependent is enrolled in health insurance coverage.(C) Annual enrollment opportunities will be scheduled each year at times announced by ERS.(9) A participant who is a retiree or a surviving dependent, or who is in a direct pay status, may decrease or cancel any coverage at any time unless such coverage is health insurance coverage ordered by a court as provided in §81.5(c) of this chapter.(10) A member and his/her dependents who are enrolled in the Medicare Advantage Plan may collectively enroll in HealthSelect of Texas, Consumer Directed HealthSelect or an HMO.(A) Such opportunity will be scheduled on at least an annual basis each year, at times announced by ERS.(B) Additional opportunities will occur each month prior to an annual enrollment period. Coverage selected during these opportunities will be effective on the first of the month following processing by CMS.(11) If a member drops coverage for his/her dependent because the dependent gained other coverage effective the first day of a month, then the effective date of the qualifying life event can be either the last day of the month preceding the gained coverage or on the first day of the month in which the gained coverage is effective.(e) Special provisions relating to term life benefits(1) An employee or annuitant who is enrolled in the group term life insurance plan may file a claim for an accelerated life benefit for himself or his covered dependent in accordance with the terms of the plan in effect at that time. An accelerated life benefit paid will be deducted from the amount that would otherwise be payable under the plan.(2) An employee or annuitant who is enrolled in the group term life insurance plan may make, in conjunction with receipt of a viatical settlement, an irrevocable beneficiary designation in accordance with the terms of the plan in effect at that time.(f) Re-enrollment in the GBP.(1) The provisions of subsection (a)(1) of this section shall apply to the enrollment of an employee who terminates employment and returns to active duty within the same fiscal year, who transfers from one employer to another, or who returns to active duty after a period of LWOP during which coverage is canceled.(2) An employee to whom paragraph (1) of this subsection applies shall be subject to the same requirements as a newly hired employee to re-enroll in the coverage in which the employee was previously enrolled. Provided that all applicable preexisting conditions exclusions were satisfied on the date of termination, transfer, or cancellation, no new preexisting conditions exclusions will apply. If not, any remaining period of preexisting conditions exclusions must be satisfied upon re-enrollment.(3) If an employee is a member of the Texas National Guard or any of the reserve components of the United States armed forces, and the employee's coverage is canceled during a period of LWOP or upon termination of employment as the result of an assignment to active military duty, the period of active military duty shall be applied toward satisfaction of any period of preexisting conditions exclusions remaining upon the employee's return to active employment.(g) Continuing coverage in special circumstances.(1) Continuation of coverage for terminating employees. A terminating employee is eligible to continue all coverage through the last day of the month in which employment is terminated.(2) Continuation of coverage for employees on LWOP status.(A) An employee in LWOP status may continue the coverage in effect on the date the employee entered that status for the period of leave, but not more than 12 months. The employee must pay insurance required contributions directly as provided in subsection (h)(1)(A) of this section.(B) An employee whose LWOP is a result of the Family and Medical Leave Act of 1993 will continue to receive the state contribution during such period of LWOP. The employee must pay insurance required contributions directly as defined in subsection (h)(1)(A) of this section. Failure to make the payment of insurance required contributions by the due date will result in the cancellation of all coverage except for member-only health and basic life coverage. The employee will continue in the health plan in which he/she was enrolled immediately prior to the cancellation of all other coverage.(3) Continuation of coverage for a former member or employee of the Legislature. Provided that the insurance required contributions are paid, the GBP health, dental, vision and life insurance coverage of a former member or employee of the Legislature may be continued on conclusion of the term of office or employment.(4) Continuation coverage for a former board member. Provided that the insurance required contributions are paid, the GBP health, dental, vision and life insurance coverage of a former member of a board or commission, or of the governing body of an institution of higher education, as both are described in §1551.109 of the Act, may be continued on conclusion of service if no lapse in coverage occurs after the term of office. Life insurance will be reduced to the maximum amount for which the former board member is eligible.(5) Continuation of coverage for a former judge. A former state of Texas judge, who is eligible for judicial assignments and who does not serve on judicial assignments during a period of one calendar month or longer, may continue the coverage that was in effect during the calendar month immediately prior to the month in which the former judge did not serve on judicial assignments. This coverage may continue for no more than 12 continuous months during which the former judge does not serve on judicial assignments as long as, during the period, the former judge continues to be eligible for assignment.(6) Continuation of coverage for a surviving spouse and/or dependent child/children of a deceased employee/retiree. The surviving spouse and/or dependent child/children of a deceased employee/retiree, who, in accordance with §81.5(j)(1) of this chapter, elects to continue coverage may do so by submitting the required election notification and enrollment forms to ERS. The enrollment form, including all insurance required contributions due for the election/enrollment period, must be postmarked or received by ERS on or before the date indicated on the continuation of coverage enrollment form. Continuing coverage will begin on the first day of the month following the month in which the employee/retiree dies, provided all insurance required contributions due for the month in which the employee/retiree died and for the election/enrollment period have been paid in full.(7) Continuation of coverage for a covered employee whose employment has been terminated, voluntarily or involuntarily (other than for gross misconduct), whose work hours have been reduced such that the employee is no longer eligible for the GBP as an employee, or whose coverage has ended following the maximum period of LWOP as provided in paragraph (2)(A) of this subsection. An employee, his/her spouse and/or dependent child/children, who, in accordance with §81.5(j)(2) of this chapter, elect to continue GBP health, dental and vision coverage may do so by submitting the required election notification and enrollment forms to ERS. The enrollment form, including all insurance required contributions due for the election/enrollment period, must be postmarked or received by ERS on or before the date indicated on the continuation of coverage enrollment form. Continuing coverage will begin on the first day of the month following the month in which the employee's coverage ends, provided all insurance required contributions due for the month in which the coverage ends and for the election/enrollment period have been paid in full.(8) Continuation of coverage for a spouse who is divorced from a member and/or the spouse's dependent child/children. The divorced spouse and/or the spouse's dependent child/children of an employee/retiree who, in accordance with §81.5(j)(4) of this chapter, elect to continue coverage may do so by submitting the required election notification and enrollment forms to ERS. The enrollment form, including all insurance required contributions due for the election/enrollment period, must be postmarked or received by ERS on or before the date indicated on the continuation of coverage enrollment form. Continuing coverage will begin on the first day of the month following the month in which the divorce decree is signed, provided all insurance required contributions due for the month in which the divorce decree is signed and for the election/enrollment period have been paid in full.(9) Continuation of coverage for a dependent child who has attained 26 years of age. A 26-year-old dependent child (not provided for by §81.5(c) of this chapter) of a member who, in accordance with §81.5(j)(5) of this chapter, elects to continue coverage may do so by submitting the required election notification and enrollment forms to ERS. The enrollment form, including all insurance required contributions due for the election/enrollment period, must be postmarked or received by ERS on or before the date indicated on the continuation of coverage enrollment form. Continuing coverage will begin on the first day of the month following the month in which the dependent child of the member attains 26 years of age, provided all insurance required contributions due for the month in which the dependent child attained age 26 and for the election/enrollment period have been paid in full.(10) Extension of continuation of coverage for certain dependents of former employees who are continuing coverage under the provisions of paragraph (6) of this subsection.(A) The surviving dependent of a deceased former employee, who, in accordance with §81.5(j)(6)(A) of this chapter, elects to extend continuation coverage may do so by submitting the required election notification and enrollment forms to ERS. The enrollment form, including all insurance required contributions due for the election/enrollment period, must be postmarked or received by ERS on or before the date indicated on the continuation enrollment form. The election/enrollment period begins on the first day of the month following the month in which the former employee died.(B) A spouse who is divorced from a former employee and/or the divorced spouse's dependent child/children, who, in accordance with §81.5(j)(6)(B) of this chapter, elects to extend continuation coverage may do so by submitting the required election notification and enrollment forms to ERS. The enrollment form, including all insurance required contributions due for the election/enrollment period, must be postmarked or received by ERS on or before the date indicated on the continuation enrollment form. The election/enrollment period begins on the first day of the month following the month in which the divorce decree was signed.(C) A dependent child who has attained 26 years of age, who, in accordance with §81.5(j)(6)(C) of this chapter, elects to extend continuation coverage may do so by submitting the required election notification and enrollment forms to ERS. The enrollment form, including all insurance required contributions due for the election/enrollment period, must be postmarked or received by ERS on or before the date indicated on the continuation enrollment form. The election/enrollment period begins on the first day of the month following the month in which the dependent child attained age 26.(11) Continuation coverage defined. Continuation coverage as provided for in paragraphs (6) - (10) of this subsection means the continuation of only GBP health, dental and vision coverage which meets the following requirements.(A) Type of benefit coverage. The coverage shall consist of only the GBP health, dental and vision coverage, which, as of the time the coverage is being provided, are identical to the GBP health, dental and vision coverage provided for a similarly situated person for whom a cessation of coverage event has not occurred.(B) Period of coverage. The coverage shall extend for at least the period beginning on the first day of the month following the date of the cessation of coverage event and ending not earlier than the earliest of the following:(i) in the case of loss of coverage due to termination of an employee's employment for other than gross misconduct, reduction in work hours, or end of maximum period of LWOP, the last day of the 18th calendar month of the continuation period;(ii) in the case of loss of coverage due to termination of an employee's employment for other than gross misconduct, reduction in work hours, or end of maximum period of LWOP, if the employee, spouse, or dependent child has been certified by the Social Security Administration as being disabled as provided in §81.5(j)(3) of this chapter, up to the last day of the 29th calendar month of the continuation period;(iii) in any case other than loss of coverage due to termination of an employee's employment for other than gross misconduct, reduction in work hours, or end of maximum period of LWOP, the last day of the 36th calendar month of the continuation period;(iv) the date on which the employer ceases to provide any group health plan to any employee/retiree;(v) the date on which coverage ceases under the plan due to failure to make timely payment of any insurance required contribution as provided in subsection (h) of this section;(vi) the date on which the participant, after the date of election, becomes covered under any other group health plan under which the participant is not subject to a preexisting conditions limitation or exclusion; or(vii) the date on which the participant, after the date of election, becomes entitled to benefits under the Social Security Act, Title XVIII.(C) Insurance required contribution costs. The insurance required contribution for a participant during the continuation coverage period will be 102% of the employee's/retiree's GBP health, dental and vision coverage rate and is payable as provided in subsection (h) of this section.(i) The insurance required contribution for a participant eligible for 36 months of coverage will be 102% of the employee's/retiree's GBP health, dental and vision coverage rate and is payable as provided in subsection (h)(1)(A) of this section.(ii) The insurance required contribution for a participant eligible for 29 months of coverage will increase to 150% of the employee's/retiree's GBP health, dental and vision coverage rate for the 19th through 29th months of coverage and is payable as provided in subsection (h)(1)(A) of this section.(D) No requirement of insurability. No evidence of insurability is required for a participant who elects to continue GBP health coverage under the provisions of §81.5(j)(1) - (6) of this chapter.(E) Conversion option. An option to enroll under the conversion plan available to employees/retirees is also available to a participant who continues GBP coverage for the maximum period as provided in subparagraph (B)(i) - (iii) of this paragraph. The conversion notice will be provided to a participant during the 180-day period immediately preceding the end of the continuation period.(h) Payment of Insurance Required Contributions.(1) A member whose monthly cost of coverage is greater than the combined amount contributed by the state or employer for the member's coverage must pay a monthly contribution in an amount that exceeds the combined monthly contributions of the state or the employer. A member shall pay his/her monthly insurance required contributions through deductions from monthly compensation or annuity payments or by direct payment, as provided in this paragraph.(A) A member who is not receiving a monthly compensation or an annuity payment, or is receiving a monthly compensation or annuity payment that is less than the member's monthly insurance required contribution, shall pay his/her monthly insurance required contribution under this subparagraph.(i) An employee whose monthly compensation is less than the employee's monthly insurance required contribution shall pay his/her monthly insurance required contribution through his/her employer. A non-salaried board member of an employer shall pay his/her monthly insurance required contributions through the employer for which he/she sits as a board member.(ii) A retiree whose monthly annuity payment is less than the retiree's monthly insurance required contribution shall pay his/her monthly insurance required contributions directly to ERS.(B) If the member does not comply with subparagraph (A) of this subsection by the due date required, ERS will cancel all coverage not fully funded by the state contribution. If the state contribution is sufficient to cover the required insurance contribution for such coverage, the member will retain member-only health and basic life coverage. If the state contribution is not sufficient to cover the member-only coverage in the health plan selected, the member will be enrolled in the basic plan except as provided for in paragraph (2)(B) of this subsection.(2) An institution of higher education may contribute a portion or all of the insurance required contribution for its part-time employees described by §1551.101(e)(2) of the Act, if:(A) the institution of higher education pays the contribution with funds that are not appropriated from the general revenue fund;(B) the institution of higher education electing to pay the contribution for its part-time employees does so for all similarly situated eligible part-time employees; and(C) the contribution paid as provided in this paragraph is paid beginning on the first day of the month following the part-time employee's completion of any applicable waiting period.(3) A participant who continues GBP health, dental and vision coverage under COBRA as provided in §81.5(j) of this chapter must pay his/her monthly insurance contributions on the first day of each month covered.(A) A participant's monthly insurance required contribution is 102% of the monthly amount charged for other participants in the same coverage category and in the same plan. All insurance required contributions due for the election/enrollment period must be postmarked or received by ERS on or before the date indicated on the continuation of coverage enrollment form. Subsequent insurance required contributions are due on the first day of each month of the participant's coverage and must be postmarked or received by ERS within 30 days of the due date to avoid cancellation of coverage.(B) A participant's monthly insurance required contribution for continuing coverage as provided in §81.5(j)(3) of this chapter is increased after the 18th month of coverage to 150% of the monthly amount charged for other participants in the same coverage category and in the same plan. The participant's monthly insurance required contribution is due on the first day of each month covered, and must be postmarked or received by ERS within 30 days of the due date.(4) The full cost for GBP health, dental and vision coverage is required to be paid for a member's unmarried child who is over 26 years of age, whose coverage under COBRA expired, and who has reinstated coverage in the GBP pursuant to §1551.158 of the Act. No state contribution is paid for this coverage.(5) Survivors of a paid law enforcement officer employed by the state or a custodial employee of the institutional division of the Texas Department of Criminal Justice who suffers a death in the line of duty as provided by Chapter 615, Government Code, are eligible for GBP coverage as provided in subparagraphs (A) - (C) of this paragraph.(A) The insurance required contribution due under this paragraph for a surviving spouse's GBP coverage is the same amount as a member-only contribution. The state contribution applicable to member-only coverage is applied to the surviving spouse's contribution for the coverage.(B) The insurance required contribution due under this paragraph for GBP coverage for a surviving spouse with dependent children is the same amount as the member-with-children contribution. The state contribution applicable to member-with-children coverage is applied to the contribution of the surviving spouse with dependent children for the coverage.(C) The insurance required contribution due under this paragraph for a surviving dependent child's GBP coverage, when there is no surviving spouse, is the same amount as member-only contribution. The state contribution applicable to member-only coverage is applied to the surviving dependent child's contribution for the coverage.(D) The surviving spouse or surviving dependent child must timely pay his/her insurance required contributions for the GBP coverage. The survivor's contribution must be either deducted by ERS from the survivor's annuity payment, if any, or submitted to ERS via direct payment. Any applicable state contribution will be paid directly to ERS by the employer that employed the deceased law enforcement officer or custodial employee.(6) If a retiree whose eligibility for health insurance is based on §§1551.102(i), 1551.111(e) or 1551.112(c) of the Act, obtains interim health insurance as provided in §1551.323 of the Act, the retiree must pay the total contribution for such coverage for as long as the retiree wants the coverage or until the first day of the month following the retiree's 65th birthday. The amount of contribution shall be determined by the Board of Trustees based on an actuarial determination, as recommended by ERS' consulting actuary for insurance, of the estimated total claims costs for individuals eligible for such coverage. If a retiree who is eligible for coverage under this paragraph is also eligible for COBRA coverage, then COBRA coverage should be exhausted, if possible, before applying for the coverage under this paragraph.(7) A member's surviving spouse or surviving dependent who is receiving an annuity shall authorize deductions for insurance required contributions from the annuity as provided in paragraph (1) of this subsection. A member's surviving spouse or surviving dependent who is not receiving an annuity may make payments as provided in paragraph (1)(A) of this subsection.(i) The amount of state contribution for certain retirees is determined in accordance with §1551.3196 of the Act.(1) An individual is grandfathered at the time of retirement and not subject to §1551.3196 of the Act, if on or before September 1, 2014, the individual has served in one or more positions for at least five years for which the individual was eligible to participate in the GBP as an employee.(2) Records of ERS shall be used to determine whether or not an individual meets the grandfathering requirements specified in paragraph (1) of this subsection. ERS may, in its sole discretion, require an individual to provide additional documentation satisfactory to ERS that the individual meets the grandfathering requirements specified in paragraph (1) of this subsection.(j) Tobacco User Premium Differential.(1) Assessment. Pursuant to §1551.3075 of the Act, ERS shall assess a monthly tobacco user premium differential, in an amount determined by the Board of Trustees or as set in the General Appropriations Act, for participants enrolled in GBP health coverage who are certified as tobacco users or are age eighteen or older at the start of the current plan year and whose tobacco-use status has not been certified. ERS shall assess a single premium differential for each GBP member who is a tobacco user, a single premium differential for the member's dependent spouse who is a tobacco user, and a single premium differential for one or more of the member's dependent children who are tobacco users. A participant will not be subject to a premium differential assessment if the participant has been certified not to be a tobacco user or ERS has approved the participant for a one-year waiver under the Choose to Quit program.(2) Payment. The GBP member responsible for paying a tobacco user's insurance required contribution shall pay any assessed premium differential for the member and the member's dependents.(3) Certification of Tobacco-Use Status. Each GBP member with GBP health coverage must certify the tobacco-use status of the member and the member's enrolled dependents.(A) If participants certify that they are not a tobacco user, ERS shall not assess the premium differential.(B) ERS shall assess the premium differential monthly for any participant age eighteen or older at the start of the current plan year whose tobacco-use status has not been certified.(4) Choose to Quit Wellness Program. ERS may approve a one-year waiver for a participant who completes the Choose to Quit program for that plan year.(A) The participant must complete all of the following steps to have the premium differential waived:(i) participate in an office visit with a licensed physician to receive tobacco counseling and establish a tobacco cessation course of treatment under that physician's recommendation and supervision;(ii) complete the course of treatment, which may or may not result in cessation of tobacco use;(iii) participate in an office visit with the licensed physician following completion of treatment and obtain the physician's signature and the date of signature on the Choose to Quit certification form; and(iv) sign and submit the Choose to Quit certification form to ERS.(B) The Choose to Quit certification form must be signed by the physician during the plan year for which the waiver is requested and postmarked within thirty calendar days of the physician's signature date to be effective for that plan year.(C) Once processed and approved by ERS, the participant's premium differential will be waived for the remainder of the plan year and any premium differential previously paid for that plan year will be refunded.(D) A member with more than one dependent child certified as a tobacco user will not receive a refund of the premium differential paid for dependent children unless all dependent children certified as tobacco users complete the steps set forth in paragraph (4)(A) of this section.(E) At the beginning of each plan year, ERS shall reinstate the monthly assessment of the premium differential for the participant unless the participant has been separately certified not to be a tobacco user.(5) Sanctions. If any participant fails to accurately certify any participant's use of a tobacco product or submits false information to ERS regarding a participant's use of a tobacco product, ERS may impose one or more of the sanctions described in §1551.351(b) of the Act.",
            "sourceNote": "Source Note: The provisions of this §81.7 adopted to be effective September 1, 1985, 10 TexReg 2321; amended to be effective November 1, 1985, 10 TexReg 3850; amended to be effective September 1, 1986, 11 TexReg 3864; amended to be effective October 14, 1986, 11 TexReg 4115; amended to be effective October 28, 1986, 11 TexReg 4576; amended to be effective December 19, 1986, 11 TexReg 5138; amended to be effective January 9, 1987, 11 TexReg 5136; amended to be effective November 1, 1987, 12 TexReg 3480; amended to be effective December 13, 1988, 13 TexReg 5973; amended to be effective March 28, 1989, 14 TexReg 1371; amended to be effective August 24, 1989, 14 TexReg 3988; amended to be effectiveSeptember 29, 1989, 14 TexReg 4786; amended to be effective November 23, 1989, 14 TexReg 5935; amended to be effective May 25, 1990, 15 TexReg 2687; amended to be effective August 21, 1990, 15 TexReg 4504; amended to be effective November 28, 1990, 15 TexReg 6500; amended to be effective July 18, 1991, 16 TexReg 3777; amended to be effective October 29, 1991, 16 TexReg 5847; amended to be effective May 19, 1992, 17 TexReg 3252; amended to be effective September 2, 1993, 18 TexReg 5594; amended to be effective February 21, 1994, 19 TexReg 806; amended to be effective January 25, 1995, 20 TexReg 151; amended to be effective July 3, 1995, 20 TexReg 4409; amended to be effective September 6, 1996, 21 TexReg 8182; amended to be effective February 16, 1998, 23 TexReg 1099; amended to be effective September 16, 1999, 24 TexReg 7276; amended to be effective March 26, 2000, 25 TexReg 2400;amended to be effective July 10, 2000, 25 TexReg 6557; amended to be effective September 13, 2001, 26 TexReg 6954; amended to be effective January 8, 2002, 27 TexReg 274; amended to be effective July 17, 2003, 28 TexReg 5538; amended to be effective December 31, 2003, 28 TexReg 11612; amended to be effective June 29, 2004, 29 TexReg 6120; amended to be effective May 3, 2006, 31 TexReg 3588; amended to be effective June 5, 2008, 33 TexReg 4332; amended to be effective March 15, 2010, 35 TexReg 2202; amended to be effective December 30, 2010, 35 TexReg 11707; amended to be effective December 22, 2011, 36 TexReg 8574; amended to be effective December 26, 2013, 38 TexReg 9374; amended to be effective September 5, 2016, 41 TexReg 6754; amended to be effective September 18, 2018, 43  TexReg 5987; amended to be effective September 8, 2020, 45 TexReg 6239."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190331&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "190331",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "81",
                "label": "INSURANCE"
            },
            "rule": {
                "number": "§81.8",
                "label": "Waiver of Health Coverage"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190332&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "190332",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Eligibility for waiver. An eligible member may elect to waive GBP health coverage by the method and form specified by ERS:(1) during the initial period of eligibility;(2) after a qualifying life event; or(3) during annual enrollment.(b) Enrollment in GBP health coverage after waiver. An eligible member who previously waived GBP health coverage, may enroll in GBP health coverage subject to the provisions of §81.7 of this chapter (relating to Enrollment and Participation).(c) Incentive Credit based on a waiver.(1) An eligible member, except for a survivor under Chapter 615, Texas Government Code who waives GBP health coverage is eligible for an incentive credit in lieu of the state contribution up to the amount specified in the General Appropriations Act if the member:(A) would otherwise have been eligible for the state contribution to be made on his/her behalf; and(B) demonstrates, in a manner specified by ERS, that the member has other health coverage substantially equivalent to the GBP health coverage.(2) The incentive credit may be applied only toward the cost of certain dental plans, vision coverage or AD&D coverage offered within the GBP.",
            "sourceNote": "Source Note: The provisions of this §81.8 adopted to be effective May 3, 2006, 31 TexReg 3588; amended to be effective June 5, 2008, 33 TexReg 4332; amended to be effective December 22, 2011, 36 TexReg 8574; amended to be effective September 5, 2016, 41 TexReg 6754; amended to be effective March 27, 2018, 43 TexReg 1876."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190332&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "190332",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "81",
                "label": "INSURANCE"
            },
            "rule": {
                "number": "§81.9",
                "label": "Grievance Procedures"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=179793&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "179793",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Grievance procedures regarding the denial of claims by administering firms for HealthSelect of Texas, Consumer Directed HealthSelect, State of Texas Vision and the Dental Choice Plans are set forth in the Master Benefit Plan Documents for those plans. Internal and external reviews of claims are subject to applicable federal statutes and rules and §1551.356, of the Act.(b) The review procedures for a participant in an HMO, dental health maintenance organization or a Medicare Advantage Plan who is denied payment of insurance benefits, or otherwise receives an adverse decision, are set forth in the applicable plan documents. Those decisions are not appealable to ERS.(c) Grievance procedures regarding the denial of a claim, denial of eligibility for coverage other than dependent eligibility, or other adverse decisions by a carrier or an administering firm for all GBP coverage other than those subject to subsections (a) and (b) are set forth in this subsection. A participant must request the carrier or administering firm to reconsider the denial or other adverse decision prior to seeking grievance review by ERS. Any additional documentation in support of the claim may be submitted to the carrier or administering firm with the request for reconsideration. If the claim is again denied, the claim, accompanied by all related documents and copies of correspondence with the carrier or administering firm, may be submitted by the participant to the executive director for review. A request for grievance review must be filed with ERS by the participant in writing within 90 days from the date the carrier or administering firm formally denies the claim, or provides notice of other adverse decision, and mails notice of the denial and grievance right of appeal to the participant.(d) When the executive director reviews any matter arising under this section, information available to ERS will be considered. When the executive director completes the review and makes a determination, all parties involved will be notified in writing of the decision.(e) To the extent allowed by statute, appeals of ERS' determination will be conducted under the provisions of Chapter 67 of this title (relating to Hearings on Disputed Claims) and the Act. A notice of appeal must be in writing and filed with ERS within 30 days from the date ERS' determination is served on the participant.(f) Matters initiated or referred to ERS concerning misrepresentations or fraud are not subject to grievance procedures under this rule.",
            "sourceNote": "Source Note: The provisions of this §81.9 adopted to be effective September 1, 1985, 10 TexReg 2321; amended to be effective February 16, 1998, 23 TexReg 1099; amended to be effective December 31, 2003, 28 TexReg 11612; amended to be effective May 3, 2006, 31 TexReg 3588; amended to be effective December 31, 2007, 32 TexReg 10053; amended to be effective March 15, 2010, 35 TexReg 2202; amended to be effective June 12, 2012, 37 TexReg 4252; amended to be effective September 5, 2016, 41 TexReg 6754; amended to be effective March 27, 2018, 43 TexReg 1876."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=179793&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "179793",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "81",
                "label": "INSURANCE"
            },
            "rule": {
                "number": "§81.11",
                "label": "Cancellation of Coverage and Sanctions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201046&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201046",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A participant's coverage will end on the earliest of:(1) the last day of the month in which insurance required contributions for a participant's coverage are paid in full;(2) the last day of the month in which a participant becomes ineligible for coverage;(3) the last day of the month, or other date as specified by ERS, in which ERS instructs the relevant carriers and administering firms to end a participant's coverage; or(4) the effective date of a participant's expulsion from participation in the GBP or specific coverage plans as provided under §1551.351 of the Act.(b) In addition to the dates described in subsection (a) of this section, an employee's coverage will end on the earliest of:(1) the last day of the month in which the employee's employment ends; or(2) the last day of the month in which the employee retires, unless the employee is eligible for coverage as a retiree.(c) In addition to the dates described in subsection (a) of this section, a dependent's coverage will end:(1) on the last day of the month in which the employment or retirement of the member who enrolled the dependent ends;(2) on the last day of the month in which the dependent ceases to be an eligible dependent as defined in §81.1 of this chapter (relating to Definitions); or(3) for qualified medical child support court-ordered dependent GBP health coverage only:(A) on the last day of the month in which the dependent ceases to be an eligible dependent as defined in §81.1 of this chapter; or(B) the court order is invalidated or terminates.(d) Cancellation of coverage for a surviving spouse or surviving dependent of a deceased member.(1) If a surviving spouse or surviving dependent of a deceased member becomes an employee eligible for GBP coverage, the coverage based on the status of surviving spouse or surviving dependent will be cancelled as of the eligibility date of the employee coverage. If the surviving spouse ceases to be an employee, the surviving spouse may re-enroll in GBP coverage based on the status of surviving spouse. If the surviving dependent ceases to be an employee, the surviving dependent may re-enroll in GBP coverage based on the status of surviving dependent for as long as he/she is an eligible dependent.(2) If a surviving spouse or surviving dependent of a deceased member cancels coverage that was based on the status of surviving spouse or surviving dependent, he/she may not re-enroll in GBP coverage, except as provided in paragraph (1) of this subsection.(e) Required notice when a dependent loses eligibility for coverage. A member is required to notify his/her benefits coordinator or ERS in writing within 31 days from the date the member's dependent loses eligibility for coverage. If the member fails to comply with this notification requirement, the member and dependent may be subject to sanctions pursuant to §1551.351 of the Act and subsection (f) of this section.(f) Sanctions for Insurance Program Violations.(1) ERS may rescind any insurance coverage or impose one or more sanctions described by the Act against any person, including, but not limited to, any current or former participant, employee, annuitant, dependent or insurance claimant who commits any of the violations enumerated in the Act.(2) Any person with a grievance regarding eligibility, payment of a claim or other matters for which an appeal is permitted involving the GBP may submit a written request to the executive director to make a determination on the matter in dispute. Any person who disputes a rescission of coverage, a denial of benefits or sanctions imposed in connection with a determination made under the Act, may appeal the determination in accordance with §81.9 of this chapter (relating to Grievance Procedures). A timely appeal of a determination made pursuant to the Act shall not stay the imposition of sanctions. At the time such a determination is made pursuant to the Act, no further claims will be paid until the ERS decision is final. Upon final agency action, all eligible claims, if any, will be processed subject to any offsets for overpayments.(3) Any hearing provided pursuant to this section shall be a contested case under Government Code, Chapter 2001, and be conducted in the manner prescribed by law and by Chapter 67 of this title (relating to Hearings on Disputed Claims).(4) Any person expelled from the GBP may not be insured under any benefits plan offered by the GBP for a period determined by ERS.(5) If a person's insurance coverage is rescinded, it may be rescinded to the date of the inception of the coverage or from the date of the prohibited conduct as found in the determination made in accordance with the Act.(6) ERS also may deny any claim filed to obtain benefits from the insurance coverage in a manner prohibited under the Act.",
            "sourceNote": "Source Note: The provisions of this §81.11 adopted to be effective September 1, 1985, 10 TexReg 2321; amended to be effective May 19, 1992, 17 TexReg 3252; amended to be effective September 2, 1993, 18 TexReg 5594; amended to be effective September 6, 1996, 21 TexReg 8182; amended to be effective February 16, 1998, 23 TexReg 1099; amended to be effective September 16, 1999, 24 TexReg 7276; amended to be effective September 13, 2001, 26 TexReg 6962; amended to be effective December 31, 2003, 28 TexReg 11612; amended to be effective May 3, 2006, 31 TexReg 3588; amended to be effective January 4, 2007, 31 TexReg 10811; amended to be effective March 15, 2010, 35 TexReg 2202; amended to be effectiveDecember 22, 2011, 36 TexReg 8574; amended to be effective September 5, 2016, 41 TexReg 6754."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201046&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201046",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "81",
                "label": "INSURANCE"
            },
            "rule": {
                "number": "§81.12",
                "label": "HealthSelectShoppERS"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=123917&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "123917",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Description. The HealthSelectShoppERS program is designed to provide an incentive for eligible health benefit plan participants to select certain network facilities for specified elective, non-emergency medical services and procedures. The incentive will be limited to an amount that is compliant with applicable federal laws and regulations and will be publicly posted by ERS. The incentive is an employer contribution by a GBP member's health benefit plan to the GBP member's TexFlex health care reimbursement account or limited purpose health care reimbursement account, as set forth in §85.8.(b) Administration. The HealthSelectShoppERS program is administered by the Board. The Board may designate and contract with a vendor, administrator or firm to perform the day-to-day administrative responsibilities of the HealthSelectShoppERS program. The designated vendor, administrator or firm shall perform its duties as assigned by the program administrator and in accordance with its contract with the program administrator, the Code, rules and all applicable state and federal laws and regulations.(c) Eligibility. A GBP member and the member's dependents are eligible for the HealthSelectShoppERS program if all of the conditions of this subsection are met:(1) the GBP member is an employee on active duty on the date of a search described in subsection (d)(1) of this section and on the date of payment of an employer contribution described in subsection (d)(3) of this section;(2) the GBP member and any dependents participating in the HealthSelectShoppERS program are enrolled in Consumer Directed HealthSelect or the HealthSelect of Texas In-Area Benefits Plan or Out-of-State Plan on the date of a search described in subsection (d)(1) of this section, on the date of receipt of a service described in subsection (d)(2) of this section, and on the date of payment of an employer contribution described in subsection (d)(3) of this section;(3) neither the GBP member nor any dependents participating in the HealthSelectShoppERS program is receiving Medicare benefits as his or her primary coverage on the date of a search described in subsection (d)(1) of this section, on the date of receipt of a service described in subsection (d)(2) of this section, and on the date of payment of an employer contribution described in subsection (d)(3) of this section; and(4) the GBP member is eligible to receive an employer contribution to a TexFlex health care reimbursement account or limited purpose health care reimbursement account on the date of payment of an employer contribution described in subsection (d)(3) of this section. A previously established health care reimbursement account or limited purpose health care reimbursement account is not required as a condition of eligibility.(d) Program Requirements. Participants must complete all of the following steps to receive a HealthSelectShoppERS program incentive.(1) Conduct a search in which the participant is presented with a selection of network facilities that provide the medical service or procedure:(A) the search must be conducted, facilitated and documented in accordance with requirements established by ERS and the vendor, administrator, or firm with administrative responsibilities designated by the Board;(B) the medical service or procedure must meet all health benefit plan requirements to be a covered service when performed, including, but not limited to, applicable requirements related to referrals, prior authorizations and medical necessity;(C) the search must identify the participant who will receive the medical service or procedure;(D) on the date of the search, the GBP member must meet all eligibility requirements set forth in subsection (c)(1) of this section; and(E) on the date of the search, the participant and the GBP member, if the participant is not the GBP member, must meet all eligibility requirements set forth in subsection (c)(2) and (3) of this section.(2) Receive the medical service or procedure for which the described search was conducted:(A) the participant must receive the medical service or procedure at a facility included in a search described in subsection (d) of this section;(B) the participant must receive the medical service or procedure for which the described search was conducted within applicable program deadlines; and(C) on the date of the participant's medical service or procedure, the participant and the GBP member, if the participant is not the GBP member, must meet all program eligibility requirements set forth in subsection (c)(2) and (3) of this section.(3) Meet all HealthSelectShoppERS program requirements on the date that the employer contribution to the GBP member's TexFlex account is made by the health benefit plan. Once processed by ERS, a contribution in the amount specified in the related search applicable to the facility providing the medical service or procedure shall be made by the health benefit plan to the GBP member's TexFlex health care reimbursement account or limited purpose health care reimbursement account as provided herein. The contribution will be an employer contribution to the applicable TexFlex account. The employer contribution will be made only if, on the date of the contribution and as determined in the sole discretion of ERS:(A) all program requirements have been met; and(B) all eligibility requirements set forth in subsection (c) of this section are met.(e) Funding.(1) Funding of the employer contributions by the health benefit plan shall originate from the Employees Life, Accident, and Health Insurance and Benefits Fund specified in §1551.401 of the Act.(2) No GBP member may receive more employer contributions per plan year related to program participation by the GBP member and all of the GBP member's dependents than the designated amount set by the Employees Retirement System of Texas and publicly posted.(3) All employer contributions will be made by the health benefit plan solely at the discretion of ERS.(f) Standing. A person has no standing to submit a grievance or appeal regarding HealthSelectShoppERS under §81.9(c) of this title or any other rule or statutory provision that provides for the submission of a grievance or appeal to ERS.(g) Termination. The HealthSelectShoppERS program may be terminated by the Board if the Board determines that the plan is no longer advantageous to the GBP or its participants.",
            "sourceNote": "Source Note: The provisions of this §81.12 adopted to be effective September 8, 2020, 45 TexReg 6239."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=123917&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "123917",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "82",
                "label": "HEALTH SERVICES IN STATE OFFICE COMPLEXES"
            },
            "rule": {
                "number": "§82.1",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=195561&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "195561",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Act--The Texas Employees Group Benefits Act, Act of the 77th Legislature, 2001, as amended, Insurance Code, Chapter 1551.(2) Board--The board of trustees of the Employees Retirement System of Texas.(3) Employee--A person authorized by the Act to participate in the program as an employee.(4) Executive Director--The executive director of the Employees Retirement System of Texas.(5) GBP--The Texas Employees Group Benefits Program as established by the board pursuant to the Act and known as the Group Benefits Program.(6) Nurse Practitioner--A licensed advanced practice nurse as defined by §301.152, Occupations Code.(7) Pilot Program--The program authorized under House Bill 952, 79th Texas Legislature, Regular Session, and codified at Chapter 671, Texas Government Code, wherein the viability of an on-site nurse practitioner to provide authorized on-site health services for state employees is to be evaluated.(8) Supervising Physician--A licensed physician who will perform supervisory functions as described by §157.052(e), Occupations Code, for the nurse practitioner.",
            "sourceNote": "Source Note: The provisions of this §82.1 adopted to be effective March 30, 2006, 31 TexReg 2694."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=195561&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "195561",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "82",
                "label": "HEALTH SERVICES IN STATE OFFICE COMPLEXES"
            },
            "rule": {
                "number": "§82.3",
                "label": "Administration"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=123919&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "123919",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The board shall implement and administer all aspects of the pilot program and determine any future expansion or continuation of the pilot program as authorized by Chapter 671, Texas Government Code. This includes the authority to execute contracts as necessary, to establish operating procedures, hours of operation, applicable fees and co-payments, administrative costs, and all other administrative and operational functions for the pilot program. The executive director is vested with the authority to implement and make all administrative decisions related to the pilot program that are vested in the board, including the determination of any future expansion or continuation of the pilot program as authorized by Chapter 671, Texas Government Code, subject to the basic and general policies, rules and regulations and appellate jurisdiction of the board.",
            "sourceNote": "Source Note: The provisions of this §82.3 adopted to be effective March 30, 2006, 31 TexReg 2694; amended to be effective June 11, 2019, 44 TexReg 2849."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=123919&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "123919",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "82",
                "label": "HEALTH SERVICES IN STATE OFFICE COMPLEXES"
            },
            "rule": {
                "number": "§82.5",
                "label": "Eligibility"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=123920&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "123920",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Eligibility for participation in the pilot program shall be limited to employees of the state of Texas who are enrolled in the GBP, pursuant to Subchapter C, Chapter 1551, Insurance Code. Retirees and their dependents and dependents of employees are not eligible for participation.",
            "sourceNote": "Source Note: The provisions of this §82.5 adopted to be effective March 30, 2006, 31 TexReg 2694."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=123920&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "123920",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "82",
                "label": "HEALTH SERVICES IN STATE OFFICE COMPLEXES"
            },
            "rule": {
                "number": "§82.7",
                "label": "Enrollment and Participation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=195562&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "195562",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "No special enrollment shall be required for treatment of employees. Proof of status as an employee currently enrolled in the GBP shall be required for participation.",
            "sourceNote": "Source Note: The provisions of this §82.7 adopted to be effective March 30, 2006, 31 TexReg 2694."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=195562&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "195562",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "82",
                "label": "HEALTH SERVICES IN STATE OFFICE COMPLEXES"
            },
            "rule": {
                "number": "§82.9",
                "label": "Termination"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207347&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207347",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The board or executive director shall determine if the continued operation of any facility established under the pilot program is cost effective and beneficial to the participants of the GBP. The authority to continue or terminate a facility shall be determined by the board or executive director.",
            "sourceNote": "Source Note: The provisions of this §82.9 adopted to be effective March 30, 2006, 31 TexReg 2694; amended to be effective June 11, 2019, 44 TexReg 2849."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207347&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207347",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "85",
                "label": "FLEXIBLE BENEFITS"
            },
            "rule": {
                "number": "§85.1",
                "label": "Introduction and Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201244&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201244",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Summary. The purpose of these rules is to govern the flexible benefits program. These rules constitute the Plan document for the State of Texas Employees Flexible Benefit Program (TexFlex). The flexible benefits plan (the plan) includes reimbursement account arrangements with optional benefits available for selection by participants as described in the plan and these rules. The plan is intended to be qualified under the Internal Revenue Code (the Code), §125, as amended from time to time, and is intended to continue as long as it qualifies under §125 and is advantageous to the state and institutions of higher education employees. Optional benefits offered under the plan for individual selection consist only of a choice between cash and certain statutory nontaxable fringe benefits as defined in the Code, §125, and regulations promulgated under the Code, §125. The plan may also include separate benefits as defined in the Code, §132, and regulations promulgated under the Code, §132, separate from the cafeteria plan, and governed by individual plan documents.(b) Applicability of rules.(1) These rules are applicable only to employees as defined in these rules, and terminated employees, as described in §85.3(b)(1)(B) and (C) of this title (relating to Eligibility and Participation).(2) An employee who retired or separated from employment prior to September 1, 1988, shall not be entitled to benefits under the provisions of the plan and these rules, unless the employee is rehired and then becomes eligible for benefits.(c) Definitions. The following words and terms when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise, and wherever appropriate, the singular includes the plural, the plural includes the singular, and the use of any gender includes the other gender.(1) Act--The state law that authorized the establishment of a flexible benefits plan and is designated in the Texas Insurance Code, Chapter 1551, as amended.(2) Account--A record keeping account established by the Employees Retirement System of Texas or its designee in the name of each participant for the purpose of accounting for contributions made to the account and benefits paid to a participant.(3) Active duty--The expenditure of time and energy in the service of an employer as defined in these rules. An employee will be considered to be on active duty on each day of a regular paid vacation or on a non-work day, on which the employee is not disabled, if the employee was on active duty on the last preceding work day.(4) Board of trustees--The board of trustees of the Employees Retirement System of Texas (ERS).(5) Code--The Internal Revenue Code, as amended from time to time.(6) Compensation--A participant's base salary, including amounts that would otherwise qualify as compensation but are not received directly by the participant pursuant to a good faith, voluntary, written or electronic salary reduction agreement in order to finance payments to a deferred compensation or tax sheltered annuity program specifically authorized by state law or to finance benefit options under this plan, plus longevity and hazardous duty pay and including non-monetary compensation, the value of which is determined by the Employees Retirement System of Texas, but excluding overtime pay.(7) Debit Card--A bank issued convenience card or similar technology approved by the plan administrator and permitted to be used by participants as an optional method to pay for eligible transactions. Use of the card is governed by the plan administrator and issuing financial institution. The card is referred to as the Flex Debit Card.(8) Dependent--An individual who qualifies as a dependent under the Code, §152, and when applicable taking into account the Code, §105, or any individual who is:(A) except as provided by §85.6(b)(3) of this title, a dependent of the participant who is under the age of 13 and with respect to whom the participant is entitled to an exemption under the Code, §151, or, is otherwise, a qualifying individual as provided in the Code, §21; or(B) a dependent or spouse of the participant who is physically or mentally incapable of caring for himself or herself.(9) Dependent care reimbursement account--The bookkeeping account maintained by the plan administrator or its designee used for crediting contributions to the account and accounting for benefit payments from the account.(10) Dependent care reimbursement plan--A separate plan under the Code, §129, adopted by the board of trustees, and designed to provide payment or reimbursement for dependent care expenses as described in §85.5(c) of this title (relating to Benefits).(11) Dependent care expenses--Expenses incurred by a participant which:(A) are incurred for the care of a dependent of the participant;(B) are paid or payable to a dependent care service provider or to the participant as reimbursement for such expenses; and(C) are incurred to enable the participant to be gainfully employed for any period for which there are one or more dependents with respect to the participant. Dependent care expenses shall not include expenses incurred for the services outside the participant's household for the care of a dependent, unless such dependent is a dependent under the age of 13 (or through age 14 as provided by §85.6(b)(3) of this title) with respect to when the participant is entitled to a tax deduction under the Code, §151, or a dependent who is physically or mentally incapable of self support. In the event that the expenses are incurred outside the dependent's household, the dependent must spend at least eight hours each day in the participant's household. Dependent care expenses shall be deemed to be incurred at the time the services to which the expenses relate are rendered.(12) Dependent care service provider--A person or a dependent care center (as defined in the Code, §21) who provides care or other services described in the definition of \"dependent care expenses\" in this section, but shall not include:(A) a related individual described in the Code, §129; or(B) a dependent care center which does not meet the requirements of the Code, §21.(13) Effective date of the plan--September 1, 1988.(14) Election form--A paper or electronic form provided by the Employees Retirement System of Texas that is an agreement by and between the employer and the participant, entered into prior to an applicable period of coverage, in which the participant agrees to a reduction in compensation for purposes of purchasing benefits under the plan.(15) Eligible employee--An employee who has satisfied the conditions for eligibility to participate in the plan in accordance with the plan and §85.3(a)(1), and (b)(1) of this title (relating to Eligibility and Participation), and, to the extent necessary, a retired or terminated employee who is entitled to benefit payments under the plan.(16) Employee--A person who is eligible to participate in the Texas Employees Group Benefits Program as an employee.(17) Employer--The State of Texas, its agencies, commissions, institutions of higher education, and departments, or other governmental entity whose employees are authorized to participate in the Texas Employees Group Benefits Program.(18) Expenses incurred--Expenses for services received or performed and for which the participant is legally responsible.(19) Executive director--The executive director of the Employees Retirement System of Texas.(20) Flexible benefit dollars--The dollars available to a participant which may be used for purposes of purchasing benefits under the plan.(21) General purpose health care reimbursement account--The account described in §85.5(b)(1).(22) Grace period--A two (2) month and 15 day period, adopted by the TexFlex plan pursuant to IRS Notice 2005-42, immediately following the end of the plan year during which participants may continue to incur expenses for reimbursement from the prior year account balance. The grace period does not apply to a health care reimbursement plan year that begins on or after September 1, 2014, but does apply to the dependent care reimbursement plan, except as limited by §85.6(b)(2) of this title.(23) Health care expenses--Any expenses incurred by a participant, or by a spouse or dependent of such participant, for health care as described in or authorized in accordance with the Code, §105 and §213, but only to the extent that the participant or other person incurring the expense is not reimbursed for the expense by insurance or other means. The types of expenses include, but are not limited to, amounts paid for hospital bills, doctor bills, prescription drugs, hearing exams, vision exams, and eye exams.(24) Health care reimbursement account--The bookkeeping account maintained by the plan administrator or its designee used for crediting contributions to the account and accounting for benefit payments from the account.(25) Health care reimbursement plan--A separate plan, under the Code, §105, adopted by the board of trustees, and designed to provide health care expense reimbursement as described in §85.5(b) of this title (relating to Benefits).(26) Institution of higher education--All public community/junior colleges, senior colleges or universities, or any other agency of higher education within the meaning and jurisdiction of the Education Code, Chapter 61, except the University of Texas System and the Texas A&M University System.(27) Leave of absence without pay--The status of an employee who is certified monthly by an agency or institution of higher education administrator to be absent from duty for an entire calendar month, and who does not receive any compensation for that month.(28) Limited purpose health care reimbursement account--The account described in §85.5(b)(3).(29) Option--Any specific benefit offering under the plan.(30) Participant--An eligible employee who has elected to participate in the plan for a period of coverage.(31) Period of coverage--The plan year during which coverage of benefits under the plan is available to and elected by a participant; however, an employee who becomes eligible to participate during the plan year may elect to participate for a period lasting until the end of the current plan year. In such case, the interval commencing on such employee's entry date and ending as of the last day of the current period of coverage shall be deemed to be such participant's period of coverage.(32) Plan--The flexible benefits plan established and adopted by the board of trustees pursuant to the laws of the state of Texas and any amendments which may be made to the plan from time to time. The plan is referred to herein as TexFlex, and is comprised of a dependent care reimbursement plan, a health care reimbursement plan, an insurance premium conversion plan, and a qualified transportation benefit plan.(33) Plan administrator--The board of trustees of the Employees Retirement System of Texas or its designee.(34) Plan year--A 12-month period beginning September 1 and ending August 31.(35) Run-out period--The period following the end of the plan year between September 1 and December 31, during which participants may file claims for reimbursement of expenses incurred during the plan year.(36) Statutory nontaxable benefit--A benefit provided to a participant under the plan, which is not includable in the participant's taxable income by reason of a specific provision in the Code and is permissible under the plan in accordance with the Code, §125.(37) Spouse--The person to whom the participant is married. Spouse does not include a person separated from the participant under a decree of divorce, or annulment.(38) TexFlex--The flexible benefits plan adopted by the board of trustees.(39) Texas Employees Group Benefits Program (GBP)--The employee insurance benefits program administered by the Employees Retirement System of Texas, pursuant to Texas Insurance Code, Chapter 1551. The program consists of health, voluntary accidental death and dismemberment, optional term life, dependent term life, short and long term disability, vision, and dental insurance coverages.(40) Third Party Administrator or TPA--The vendor, administrator or firm selected by the plan administrator to perform the day-to-day administrative responsibilities of the TexFlex program for participants of the Texas Employees Group Benefits Program who enroll in either the health care reimbursement plan, dependent care reimbursement plan or both.",
            "sourceNote": "Source Note: The provisions of this §85.1 adopted to be effective August 12, 1988, 13 TexReg 3754; amended to be effective June 26, 1989, 14 TexReg 2953; amended to be effective September 28, 1989, 14 TexReg 4787; amended to be effective September 1, 1990, 15 TexReg 4646; amended to be effective September 1, 1992, 17 TexReg 2874; amended to be effective February 12, 1998, 23 TexReg 1313; amended to be effective September 1, 1998, 23 TexReg 4571; amended to be effective September 16, 1999, 24 TexReg 7276; amended to be effective March 26, 2000, 25 TexReg 2400; amended to be effective July 17, 2003, 28 TexReg 5539; amended to be effective December 31, 2003, 28 TexReg 11625; amended to be effective May 29, 2005, 30 TexReg 3022; amended to be effective September 15, 2005, 30 TexReg 5809;  amended to be effective December 31, 2007, 32 TexReg 10054; amended to be effective June 10, 2014, 39 TexReg 4486; amended to be effective March 14, 2016, 41 TexReg 1860; amended to be effective June 6, 2016, 41 TexReg 4045; amended to be effective September 8, 2020, 45 TexReg 6240; amended to be effective December 27, 2021, 46 TexReg 9061."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201244&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201244",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "85",
                "label": "FLEXIBLE BENEFITS"
            },
            "rule": {
                "number": "§85.3",
                "label": "Eligibility and Participation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207348&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207348",
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            "ruleBody": "(a) Dependent care reimbursement plan.(1) Eligibility. Any employee eligible to participate in the Texas Employees Group Benefits Program may elect to participate in the dependent care reimbursement account.(2) Participation.(A) An employee who is eligible under paragraph (1) of this subsection may elect to participate by completing and submitting an election form either in writing or electronically on, or within 30 days after, the date on which the employee begins active duty. An employee, upon executing an election form for participation, either in writing or electronically, shall be deemed to have consented to and be bound by all the terms, conditions, and limitations of the plan, any and all amendments hereto, any administrative rules adopted by the plan administrator, and any decision or determinations made by the plan administrator with respect to the participant's eligibility, obligations, rights and benefits available under the plan. An election made on the date on which the employee begins active duty becomes effective on that date. An election made after the date on which the employee begins active duty becomes effective on the first day of the month following the date on which the employee begins active duty.(B) An employee who is otherwise eligible to participate in the Texas Employees Group Benefits Program but who declined participation in the dependent care reimbursement account prior to the beginning of a plan year, and who, after the beginning of a plan year, has a qualifying life event, as defined in §85.7(c) of this title (relating to Enrollment), may elect to participate in the dependent care reimbursement account as provided in §85.7(c) of this title.(C) A qualifying life event as defined in §85.7(c) of this title will permit a change or revocation of participation during the plan year as provided in §85.7(c) of this title.(D) An eligible employee shall have an opportunity to enroll or change benefit options during the annual enrollment period. The annual enrollment period shall be prior to the beginning of a new plan year. Elections and changes in elections made during the annual enrollment period become effective on the first day of the plan year.(E) The plan administrator shall maintain and update the participant enrollment records. Any and all changes will be communicated to the TPA via weekly file transfer protocol (FTP), tapes or other selected media.(3) Duration of participation.(A) An employee's election to participate or to waive participation in the dependent care reimbursement plan shall be irrevocable for the plan year unless there is a qualifying life event as defined in §85.7(c) of this title.(B) An employee returning to active duty following termination of employment, or following a period of approved leave without pay, during the same plan year shall reinstate the election in effect on the employee's last previous active duty date. Reinstatement becomes effective on the date on which the employee resumes active duty, unless the employee requests a change in election as provided in §85.7(c) of this title.(b) Health care reimbursement plan.(1) Eligibility.(A) Any employee eligible to participate in the Texas Employees Group Benefits Program may elect to participate in a health care reimbursement account, except that an employee participating in a consumer directed health plan with a health savings account, as permitted under Subchapter J, Chapter 1551, Insurance Code, may only participate in the limited purpose health care reimbursement account described by §85.5(b)(3), of this title (relating to Benefits). Only participants in a consumer directed health plan are eligible to elect to participate in the limited purpose health care reimbursement account described by §85.5(b)(3) of this title.(B) Prior to September 1, 2014, an employee whose employment has been terminated, voluntarily or involuntarily, and who had a health care reimbursement account at the time of termination, shall retain the health care reimbursement account for the applicable period of election. The terminated employee must pre-pay, on a monthly basis, the elected amount and any administrative fee for the plan year. Payments are due on the first day of each month and must be received no later than the 30th day of the month. Failure to pay will automatically cancel enrollment.(C) On and after September 1, 2014, the employee's period of coverage ends on the date of termination of employment.(2) Participation.(A) An employee who is eligible under paragraph (1) of this subsection may elect to participate by completing and submitting an election form either in writing or electronically on, or within 30 days after, the date on which the employee begins active duty. An employee, upon executing an election form for participation, either in writing or electronically, shall be deemed to have consented to and be bound by all the terms, conditions, and limitations of the plan, any and all amendments hereto, any administrative rules adopted by the plan administrator, and any decision or determinations made by the plan administrator with respect to the participant's eligibility, obligations, rights and benefits available under the plan. An election made by an employee to participate in the health care reimbursement plan shall be effective on the date that the employee's coverage in a GBP health benefit plan begins. But if an employee opts out or waives GBP health coverage as provided in §81.8 of this title (relating to Waiver of Health Coverage), the employee's election shall become effective on the first day of the calendar month following 60 days of employment.(B) An employee who is eligible but who declined participation in the health care reimbursement account prior to the beginning of a plan year, and who, after the beginning of a plan year, has a qualifying life event, as defined in §85.7(c) of this title, may elect to participate in a health care reimbursement account as provided in §85.7(c) of this title.(C) A qualifying life event as defined in §85.7(c) of this title will permit the following changes in election during the plan year, as provided in §85.7(c) of this title:(i) an increase in the election amount, if the increase is consistent with the qualifying life event; or(ii) a decrease in the election or election amount, if the decrease is consistent with the qualifying life event.(D) An eligible employee shall have an opportunity to enroll or to change benefit options during the annual enrollment period. The annual enrollment period shall be prior to the beginning of a new plan year. Elections and changes in elections made during the annual enrollment period become effective on the first day of the plan year.(E) The plan administrator shall maintain and update the participant enrollment records. Any and all changes will be communicated to the TPA via weekly file transfer protocol (FTP), tapes or other selected media.(F) If an eligible employee elects to enroll in a consumer directed health plan with a health savings account, any unspent flexible benefit plan dollars in the employee's health care reimbursement account at the end of the previous plan year shall automatically be transferred to and carryover into a limited purpose account as described by §85.5(b)(3) of this title, up to the maximum carryover permitted by the IRS. Such carryover shall comply with §85.7(g) of this title. Any flexible benefit plan dollars remaining that exceed the maximum carryover permitted by the IRS will be forfeited by the employee.(3) Duration of participation.(A) Except as otherwise provided in paragraph (2)(C)(ii) or (D) of this subsection, an employee's election to or not to participate in a health care reimbursement account shall be irrevocable for the plan year.(B) An employee returning to active duty following termination of employment, or following a period of leave without pay, during the same plan year shall reinstate the election in effect on the employee's last previous active duty date. Reinstatement becomes effective on the date on which the employee resumes active duty, unless the employee requests a change in election as provided in §85.7(c) of this title or a different requirement is imposed by the Family and Medical Leave Act of 1993 (FMLA).(C) For plan years beginning before September 1, 2014, an employee who is enrolled in a health care reimbursement account who terminates employment during the plan year must retain the health care account for the remainder of the plan year and prepay premiums or make monthly premium payments due for the remainder of the plan year, as described in paragraph (1)(B) of this subsection.(D) For plan years beginning on and after September 1, 2014, an employee who is enrolled in a health care reimbursement account who terminates employment during the plan year does not retain the health care account for the remainder of the plan year. The employee's period of coverage ends on the date of termination. An employee may only file a claim for reimbursement for expenses incurred before the date of termination.(E) Notwithstanding any provision to the contrary in this Plan, if an employee goes on a qualifying unpaid leave under the Family Medical Leave Act (FMLA), to the extent required by the FMLA, the plan administrator will continue to maintain the employee's health care reimbursement account on the same terms and conditions as though he were still an active employee (i.e., the plan administrator or its designee will continue to provide benefits to the extent the employee opts to continue his coverage). If the employee opts to continue his coverage, the employee shall pay his or her contribution in the same manner as a participant on the non-FMLA leave, including payment with after-tax dollars while on leave. The employee may also be given the option to pre-fund all or a portion of the contribution for the expected duration of the leave on a pre-tax salary reduction basis out of his pre-leave compensation by making a special election to that effect prior to the date such compensation would normally be made available to him (provided, however, that pre-tax dollars may not be utilized to fund coverage during the next plan year).",
            "sourceNote": "Source Note: The provisions of this §85.3 adopted to be effective August 12, 1988, 13 TexReg 3754; amended to be effective September 28, 1989, 14 TexReg 4787; amended to be effective September 1, 1990, 15 TexReg 4646; amended to be effective September 1, 1991, 16 TexReg 3779; amended to be effective September 1, 1992, 17 TexReg 2874; amended to be effective September 2, 1993, 18 TexReg 5595; amended to be effective November 11, 1996, 21 TexReg 10766; amended to be effective February 12, 1998, 23 TexReg 1313; amended to be effective September 1, 1998, 23 TexReg 4571; amended to be effective September 16, 1999, 24 TexReg 7276; amended to be effective July 10, 2000, 25 TexReg 6557; amendedto be effective July 17, 2003, 28 TexReg 5539; amended to be effective December 31, 2003, 28 TexReg 11625; amended to be effective May 29, 2005, 30 TexReg 3022; amended to be effective December 26, 2013, 38 TexReg 9374; amended to be effective June 10, 2014, 39 TexReg 4486; amended to be effective June 6, 2016, 41 TexReg 4045; amended to be effective September 8, 2020, 45 TexReg 6240."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207348&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207348",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "85",
                "label": "FLEXIBLE BENEFITS"
            },
            "rule": {
                "number": "§85.4",
                "label": "Separate Plans"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=178084&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "178084",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Dependent care reimbursement plan--A separate plan under the Code, §129, adopted by the board of trustees, and designed to provide payment or reimbursement for dependent care expenses as described in §85.5(c) of this title (relating to Benefits). The following sections of this chapter constitute the plan: §§85.1, 85.3(a), 85.5(a), 85.5(c), 85.7, 85.9, 85.11, 85.12, 85.13, 85.15, 85.17, and 85.19.(b) Health care reimbursement plan--A separate plan, under the Code, §105, adopted by the board of trustees, and designed to provide health care expense reimbursement as described in §85.5(b) of this title (relating to Benefits). The following sections of this chapter constitute the plan: §§85.1, 85.3(b), 85.5(a), 85.5(b), 85.7, 85.8, 85.9, 85.11, 85.12, 85.13, 85.15, 85.17, and 85.19.(c) Insurance Premium Conversion Plan--A separate plan under §105(b) of the Code designed to provide insurance premium conversion as described in §81.7. The Insurance Premium Conversion Plan is intended to comply with the Internal Revenue Code, §79 and §106.",
            "sourceNote": "Source Note: The provisions of this §85.4 adopted to be effective May 29, 2005, 30 TexReg 3022; amended to be effective March 14, 2016, 41 TexReg 1860; amended to be effective September 5, 2016, 41 TexReg 6763; amended to be effective September 8, 2020, 45 TexReg 6240; amended to be effective December 27, 2021, 46 TexReg 9061."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=178084&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "178084",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "85",
                "label": "FLEXIBLE BENEFITS"
            },
            "rule": {
                "number": "§85.5",
                "label": "Benefits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207346&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207346",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Benefits available for selection by participants. A participant may elect, in accordance with the procedures set forth in this section, one or both of the following benefits, subject to all the requirements and conditions contained in these rules:(1) health care reimbursement plan;(2) dependent care reimbursement plan.(b) Health care reimbursement plan.(1) General purpose health care reimbursement account. Pursuant to the health care reimbursement plan, a participant may elect to receive reimbursements of certain health care expenses which are excludable from the participant's taxable income. The general purpose health care reimbursement account is intended to be qualified under the Code, §105, is an optional benefit under the flexible benefits plan, and constitutes a separate written employee benefit plan as contemplated by the Code, §105, and Treasury Regulation 1.105-11.(2) Maximum benefit available. Subject to the limitations set forth in these rules, hereafter referred to as the plan, to avoid discrimination, the maximum amount of flexible benefit dollars that an employee may receive in any plan year for health care expenses under the health care reimbursement plan is the amount permitted under the Code, §105. Even if permitted under the Code, in no event shall the amount available exceed $5,000 in a plan year. An employee may prepay the health care election amounts for the remainder of the plan year in anticipation of termination, retirement, or a period of leave without pay.(3) Limited purpose health care reimbursement account. An employee who elects to participate in a consumer directed health plan with a health savings account as permitted by Subchapter J, Chapter 1551, Insurance Code, may elect to participate in a limited purpose health care reimbursement account. This limited purpose health care reimbursement account may only be used to reimburse eligible dental and vision care expenses incurred during the benefit plan year or permitted carryover period. The limited purpose health care reimbursement account is intended to be qualified under the Code, §105, is an optional benefit under the flexible benefits plan, and constitutes a separate written employee benefit plan as contemplated by the Code, §105, and Treasury Regulation 1.105-11.(c) Dependent care reimbursement plan.(1) Pursuant to the dependent care reimbursement plan, a participant may elect to have payments made or receive reimbursement for dependent care expenses. The dependent care reimbursement plan is intended to be qualified under the Code, §129, is an optional benefit under the flexible benefits plan, and constitutes a separate written employee benefit plan as contemplated by the Code, §129.(2) Maximum benefit available.(A) Subject to any limitations imposed by these rules, hereafter referred to as the plan, to avoid discrimination, the maximum amount that an employee may receive in any plan year in the form of payment of or reimbursement for dependent care expenses under the dependent care reimbursement plan is the lesser of:(i) the employee's earned income for the plan year (after all reductions in compensation including the reduction related to dependent care expenses);(ii) the earned income of the employee's spouse for the plan year; or(iii) the amount permitted under the Code, §129. Even if permitted under the Code, in no event shall the amount available exceed $5,000 in a plan year.(B) In the case of a participant's spouse who is a full-time student at an educational institution or who is physically or mentally incapable of caring for himself, such spouse shall be deemed to have earned income of not less than $200 per month if the participant has one dependent and $400 per month if the participant has two or more dependents in accordance with the Code, §21.",
            "sourceNote": "Source Note: The provisions of this §85.5 adopted to be effective August 12, 1988, 13 TexReg 3754; amended to be effective September 28, 1989, 14 TexReg 4787; amended to be effective September 1, 1990, 15 TexReg 4646; amended to be effective September 1, 1991, 16 TexReg 3779; amended to be effective September 1, 1992, 17 TexReg 2874; amended to be effective September 1, 1994, 19 TexReg 3765; amended to be effective February 12, 1998, 23 TexReg 1313; amended to be effective September 16, 1999, 24 TexReg 7276; amended to be effective July 10, 2000, 25 TexReg 6557; amended to be effective July 17, 2003, 28 TexReg 5539; amended to be effective May 29, 2005, 30 TexReg 3022; amended to be effective December 31,2007, 32 TexReg 10054; amended to be effective June 13, 2011, 36 TexReg 3596; amended to be effective June 6, 2016, 41 TexReg 4045."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207346&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207346",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "85",
                "label": "FLEXIBLE BENEFITS"
            },
            "rule": {
                "number": "§85.6",
                "label": "Relief Options due to the Coronavirus (COVID-19)"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207345&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "207345",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following provisions, which apply only to plan years 2021 and 2022, are enacted pursuant to §214 of the Federal Taxpayer Certainty and Disaster Tax Relief Act of 2020 and other relevant federal law.(1) Dependent care reimbursement plan.(A) Unlimited carryover. A participant may carry over to plan year 2021 any unused amount in a dependent care reimbursement account that would have expired at the end of plan year 2020 and may carry over to plan year 2022 any unused amount in a dependent care reimbursement account that would have expired at the end of plan year 2021.(B) Grace periods. Because of unlimited carryover relief, grace periods for dependent care reimbursement accounts do not apply for plan years 2020 and 2021.(C) Dependent age extension. For plan years 2020 and 2021, the maximum age of a dependent is 14.(D) Prospective mid-year election changes. During calendar year 2020 and through plan year 2021, a participant may increase or decrease contribution amounts or end enrollment for a dependent care reimbursement account without a qualifying life event. A participant may not reduce contributions to an amount less than the total of:(i) the amount of payroll distributions in the account, if any; and(ii) the amount of reimbursement the participant has received, if any.(2) Health care reimbursement plan.(A) Unlimited carryover. A participant may carry over to plan year 2021 any unused amount in a health care reimbursement or limited purpose health care reimbursement account that would have expired at the end of plan year 2020 and may carry over to plan year 2022 any unused amount in a health care reimbursement or limited purpose health care reimbursement account that would have expired at the end of plan year 2021.(B) Post-termination reimbursement. A participant who ceases contributing to a health care reimbursement or limited purpose health care reimbursement account during plan year 2020 or 2021 may continue to receive reimbursement from any unused amount through the end of the plan year in which participation ended, including any grace period or extended grace period.(C) Prospective mid-year election changes. During calendar year 2020 and through plan year 2021, a participant may increase or decrease contributions or end enrollment for a health care reimbursement account or a limited purpose health care reimbursement account without a qualifying life event. A participant may not reduce contributions to an amount less than the total of:(i) the amount of payroll distributions in the account, if any; and(ii) the amount of reimbursement the participant has received, if any.",
            "sourceNote": "Source Note: The provisions of this §85.6 adopted to be effective December 27, 2021, 46 TexReg 9061."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=207345&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "207345",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "85",
                "label": "FLEXIBLE BENEFITS"
            },
            "rule": {
                "number": "§85.7",
                "label": "Enrollment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201247&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201247",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Election of benefits.(1) An eligible employee may elect to participate in the health care and/or dependent care reimbursement accounts within the flexible benefits plan by making an election and executing an election form or enrolling electronically.(2) An employee who becomes eligible after the beginning of a plan year has 30 days from the date of eligibility to elect or decline benefits by executing an election form.(3) By enrolling in the plan, the employee agrees to a reduction in compensation or agrees to after-tax payments equal to the participant's share of the cost and any fees for each reimbursement account selected.(4) An election to participate in a reimbursement plan must be for a specified dollar amount plus any administrative fee.(5) An annual enrollment period will be designated by the Employees Retirement System of Texas and shall be prior to the beginning of a new plan year. The annual enrollment period shall provide an opportunity to change and to elect or decline benefit options.(6) An active employee who is enrolled in reimbursement accounts immediately prior to the annual enrollment period will be automatically re-enrolled with the same elections and contribution amounts for the new plan year unless the active employee takes action during the annual enrollment period to change contribution amounts or to decline participation.(b) Effects of failure to elect.(1) If the Employees Retirement System of Texas does not receive an election form from an eligible employee to participate in the reimbursement accounts by the due date, it shall be deemed an express election and informed consent by the eligible employee to:(A) receive cash compensation as a benefit by reason of failure to purchase optional benefits in lieu of cash compensation; or(B) in the case of automatic re-enrollment during the annual enrollment period, to continue participation in the reimbursement accounts with the same contributions for the new plan year.(2) To the extent an eligible employee does not elect the maximum permissible participation amounts hereunder, he shall be deemed to have elected cash compensation.(c) Benefit election irrevocable except for qualifying life event.(1) An election to participate shall be irrevocable for the plan year unless a qualifying life event occurs, and the change in election is consistent with the qualifying life event. The plan administrator may require documentation in support of the qualifying life event.(2) A qualifying life event occurs when an employee experiences one of the following changes:(A) change in marital status;(B) change in dependent status;(C) change in employment status;(D) change of address that results in loss of benefits eligibility;(E) change in Medicare or Medicaid status, or Children's Health Insurance Program (CHIP) status;(F) significant cost of benefit or coverage change imposed by a third party provider other than a provider through the Texas Employees Group Benefits Program; or(G) change in coverage ordered by a court.(3) An election form requesting a change in election must be submitted on, or within 30 days after, the date of the qualifying life event, provided, however, a change in election due to CHIP status under paragraph (2) of this subsection must be submitted on, or within 60 days after, the change in CHIP status.(4) A change in election as provided in this subsection becomes effective on the first day of the month following the date of the qualifying life event.(d) Payment of flexible benefit dollars.(1) Flexible benefit dollars from an active duty employee shall be recovered through payroll withholding at least monthly during the plan year and remitted to the Employees Retirement System of Texas for the purpose of purchasing benefits. For the health care reimbursement account only, and except as otherwise provided in §85.3(b)(3)(D) of this title (relating to Eligibility and Participation), flexible benefit dollars from employees on leave without pay status or who have insufficient funds for any month shall be recovered through direct after-tax payment from the employee or upon the return of the employee to active duty status from payroll withholding, for the total amount due.(2) An employee's flexible benefit dollars with respect to any month during the plan year shall be equal to the authorization on the employee's election form plus any administrative fees.(3) Flexible benefit dollars received by the Employees Retirement System of Texas shall be credited to the participant's dependent care reimbursement account and/or health care reimbursement account, as appropriate.(e) Forfeiture of account balances.(1) The amount credited to a participant's reimbursement account for each benefit election for any plan year will be used to reimburse or pay qualified expenses incurred during the eligible employee's period of coverage in such plan year, if the claim is electronically adjudicated or if the participant files a correctly completed claim for reimbursement on or before December 31 following the close of the plan year.(2) Except as provided by §85.6 of this title and by subsection (g) of this section, any balances remaining after payment of all timely and correctly filed claims postmarked no later than December 31 following the close of the plan year, shall be forfeited by the participant and be available to pay administrative expenses of the flexible benefits program.(3) Except as provided by §85.6 of this title, an unexpended balance in an amount of $25 or less is not eligible for carryover under subsection (g) of this section if the participant does not reenroll in the plan for the subsequent plan year. The unexpended balance shall be forfeited by the participant and be available to pay administrative expenses of the flexible benefits program.(f) Reimbursement report to participant. The plan administrator or its designee may provide to the participant periodic reports on each reimbursement account, showing the account transactions (disbursements and balances) during the plan year. These reports may be provided periodically through electronic means.(g) Carryover of unexpended balances. Under IRS regulations, a participant may be permitted to carry over a specific amount of unspent flexible benefit plan dollars to the immediately following plan year. The flexible benefit dollars carried over may be used to pay or reimburse incurred expenses under the health care reimbursement plan during the entire plan year to which the dollars are carried over. A participant is entitled to carry over a designated amount set by the Employees Retirement System of Texas and publicly posted. Except as provided by §85.6 of this title, the carryover amount shall not exceed the maximum of the indexed amount of the carryover limit set by the Internal Revenue Service, and any balance in excess of this designated amount is forfeited as provided by subsection (e) of this section. Any amount of carryover that rolls over into the new plan year does not affect the maximum amount of participant.",
            "sourceNote": "Source Note: The provisions of this §85.7 adopted to be effective August 12, 1988, 13 TexReg 3754; amended to be effective September 1, 1989, 14 TexReg 3988; amended to be effective September 1, 1990, 15 TexReg 4646; amended to be effective September 1, 1991, 16 TexReg 3779; amended to be effective September 1, 1992, 17 TexReg 2874; amended to be effective September 1, 1996, 21 TexReg 6897; amended to be effective February 12, 1998, 23 TexReg 1313; amended to be effective September 1, 1998, 23 TexReg 4571; amended to be effective September 16, 1999, 24 TexReg 7276; amended to be effective March 26, 2000, 25 TexReg 2400; amended to be effective July 10, 2000, 25 TexReg 6557; amended to be effective July17,2003, 28 TexReg 5539; amended to be effective December 31, 2003, 28 TexReg  11625; amended to be effective May 29, 2005, 30 TexReg 3022; amended to be effective September 15, 2005, 30 TexReg 5809; amended to be effective June 14, 2007, 32 TexReg 3356; amended to be effective March 15, 2010, 35 TexReg 2205; amended to be effective June 10, 2014, 39 TexReg 4486; amended to be effective March 14, 2016, 41 TexReg 1860; amended to be effective September 8, 2020, 45 TexReg 6240; amended to be effective December 27, 2021,46 TexReg 9061."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201247&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201247",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "85",
                "label": "FLEXIBLE BENEFITS"
            },
            "rule": {
                "number": "§85.8",
                "label": "HealthSelectShoppERS"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201248&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201248",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Description. The HealthSelectShoppERS program is designed to provide an incentive for eligible GBP health benefit plan participants to select certain network facilities for specified elective, non-emergency medical services and procedures. The program is described in §81.12 of this title (relating to HealthSelectShoppERS). The incentive is an employer contribution by a GBP health benefit plan to an active duty employee's health care reimbursement account or limited purpose health care reimbursement account.(b) Employer Contributions by a GBP Health Benefit Plan.(1) All HealthSelectShoppERS program incentives shall be employer contributions to active duty employees' health care reimbursement accounts or limited purpose health care reimbursement accounts.(2) The annual employer contributions by GBP health benefit plans to any active duty employee in connection with the HealthSelectShoppERS program shall not exceed a designated amount set by the Employees Retirement System of Texas and publicly posted. Any employer contributions by a GBP health benefit plan to an active employee's account shall be in addition to the annual maximum employee contribution amount established by the plan administrator.(3) The TPA will establish a health care reimbursement account or limited purpose health care reimbursement account for any active duty employee who receives an employer contribution from a GBP health benefit plan but does not have an established account.(4) Once credited into an active duty employee's health care reimbursement account or limited purpose health care reimbursement account, the employer contribution by the GBP health benefit plan is available to the employee as flexible benefit plan dollars.",
            "sourceNote": "Source Note: The provisions of this §85.8 adopted to be effective September 8, 2020, 45 TexReg 6240."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201248&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201248",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "85",
                "label": "FLEXIBLE BENEFITS"
            },
            "rule": {
                "number": "§85.9",
                "label": "Payment of Claims from Reimbursement Accounts"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=167620&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "167620",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Claim for reimbursement.(1) Claims for reimbursement of expenses incurred during an eligible employee's period of coverage in the plan year may be submitted at any time during the plan year, but not later than December 31 following the close of the plan year.(2) Claims shall be paid to the extent of available flexible benefit dollars allocable to the applicable type of expenses and shall only be paid out of flexible benefit dollars for the plan year, in which the expense was incurred. The TPA shall compare the participant's available balance and the amount of the expense to make certain that claims are paid according to the provisions of the Code and these rules.(3) Expenses incurred prior to becoming a participant or after the last day of a plan year, shall not be covered by this plan. A terminated participant may continue to file claims for eligible expenses incurred during the employee's period of coverage within the plan year, if applicable, to exhaust reimbursement account balances no later than December 31 following the close of the plan year.(4) Claims shall be submitted in a manner prescribed by the Employees Retirement System of Texas or its designee, accompanied by such bills, receipts or other proof of incurring the expense as the plan administrator or its designee may require.(5) A claim form must be submitted each time reimbursement or payment is requested, unless using the debit card.(6) The dependent care and health care reimbursement accounts are separate accounts, and funds from one account may not be used to reimburse expenses of the other account.(b) Debit Card transactions.(1) Debit card payments for eligible expenses incurred during a participant's period of coverage in the plan year may occur at any time during the plan year.(2) Transactions shall be processed to the extent of available flexible benefit dollars allocable to the applicable type of expenses and shall only be paid out of flexible benefit dollars for the plan year in which the expense was incurred. The TPA shall compare the participant's available balance and the amount of the expense to make certain that claims are paid according to the provisions of the Code and these rules.(3) Expenses incurred prior to becoming a participant shall not be covered by this plan. Expenses incurred by a participant may be covered only in the plan year in which the expense is actually incurred. Upon a participant's termination, the debit card will be automatically deactivated. Paper claims may be filed for eligible expenses incurred during the participant's period of coverage within the plan year in which he was a participant. All claims for reimbursement from account balances must be filed no later than December 31 immediately following the close of the plan year.(4) Participants may be required to submit bills, receipts or other proof of incurring the expense as the plan administrator or its designee may require.(5) Reimbursements or payments made using the debit card may require additional supporting documentation as may be requested by the plan administrator or its designee, and the participant must maintain his own records to substantiate the eligibility of all expenses for individual income tax purposes, if necessary.(c) Reimbursement of claims to participants.(1) Payment of eligible expenses shall be made directly to the participant by the plan administrator or its designee unless payment for dependent or health care expenses is made directly to the applicable provider through use of a debit card, other similar technology, or other means approved by the plan administrator.(2) The plan administrator may establish or waive the minimum payment as deemed necessary.(3) Reimbursements to participants or dependent care providers shall be made at least once each month.(4) Dependent care reimbursement shall at no time exceed the greater of the balance of the participant's account for the plan year at the time of the reimbursement, or an amount equal to the monthly salary reduction amount.(5) Health care reimbursement shall at no time exceed the eligible employee's election and employer contributions, if applicable, for the eligible period of coverage in the plan year.(d) Participant's responsibility.(1) An employee or former employee will be held liable for any overpayments of benefits as a participant in the reimbursement accounts. The method of repayment shall be determined by the plan administrator or its designee, and until full restitution is made by the participant, no further claims payment from any TexFlex accounts will be made to the participant by the plan administrator or its designee.(2) A health care reimbursement account participant who has insufficient funds during the plan year is liable for the monthly health care election amount and must pay for it with after-tax dollars, unless as described in §85.3(b)(3)(D) of this title (relating to Eligibility and Participation). Should the participant fail to contribute to the account with after-tax dollars, upon the participant's return to active duty, payroll deduction will be required to recover the election amounts due.",
            "sourceNote": "Source Note: The provisions of this §85.9 adopted to be effective August 12, 1988, 13 TexReg 3754; amended to be effective September 1, 1990, 15 TexReg 4646; amended to be effective September 1, 1991, 16 TexReg 3779; amended to be effective September 1, 1992, 17 TexReg 2874; amended to be effective September 1, 1998, 23 TexReg 4571; amended to be effective March 26, 2000, 25 TexReg 2400; amended to be effective September 27, 2000, 25 TexReg 9639; amended to be effective September 13, 2001, 26 TexReg 6962; amended to be effective July 17, 2003, 28 TexReg 5539; amended to be effective December 31, 2003, 28 TexReg 11625; amended to be effective May 29, 2005, 30 TexReg3022;amended to be effective September 15, 2005, 30 TexReg 5809; amended to be effective June 10, 2014, 39 TexReg 4486; amended to be effective March 14, 2016, 41 TexReg 1860; amended to be effective September 8, 2020, 45 TexReg 6240."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=167620&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "167620",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "85",
                "label": "FLEXIBLE BENEFITS"
            },
            "rule": {
                "number": "§85.11",
                "label": "Administration"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=120022&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "120022",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Plan administration. The flexible benefits plan is administered by the board of trustees of the Employees Retirement System of Texas. The board of trustees of the Employees Retirement System of Texas may designate and contract with a TPA to perform the day-to-day administrative responsibilities of the TexFlex plan. The TPA shall perform its duties as specified in its contract with the plan administrator, the Code, rules and all applicable state and federal laws and regulations.(b) Plan administrator.(1) The plan administrator shall administer all aspects of the plan.(2) The plan administrator shall:(A) make decisions on administrative matters concerning the plans;(B) adopt and amend rules pursuant to the authority granted in Chapter 1551 and ensure that all rules, forms and procedures are consistent with state and federal law;(C) enter into necessary contracts;(D) take whatever action that it deems necessary to ensure compliance with applicable state and federal laws and regulations and the sections in this chapter; and(E) review and approve all marketing materials or correspondence from the TPA to participants prior to publication or distribution.(c) Third Party Administrator (TPA). The TPA shall perform all day-to-day administrative duties as assigned by the plan administrator.(d) Miscellaneous provisions.(1) The participation in the plan of an employee is subject to changes in applicable state and federal laws and regulations and the sections in this chapter.(2) The plan year begins on September 1 of each year and ends on August 31. The run-out period for filing claims for services used during the plan year, ends on December 31.(3) The mailing address of the plan administrator is: Plan Administrator, TexFlex Plan, Employees Retirement System of Texas, P.O. Box 13207, Austin, Texas 78711-3207.(4) If a provision in the sections in this chapter conflicts with a federal law, rule, or regulation governing the plan, then the law, rule, or regulation prevails over the provision.(5) The participation of an employee in the plan does not give the employee a legal or equitable right against the participant's employing state agency, institution of higher education, the plan administrator, TPA or the state of Texas except as provided in the sections in this chapter. The plan does not affect the terms of employment between a participant and the participant's employing state agency or institution of higher education.(6) If a time limit is expressed in terms of a number of days and the last day of the time limit falls on a weekend or holiday recognized by the state of Texas for observance by state employees, the last day of the time period shall be the first business day after the weekend or holiday.(7) The sections in this chapter prevail over any document used in the administration of the plan that has provisions or requirements which conflict with the sections.",
            "sourceNote": "Source Note: The provisions of this §85.11 adopted to be effective August 12, 1988, 13 TexReg 3754; amended to be effective May 29, 2005, 30 TexReg 3022; amended to be effective September 15, 2005, 30 TexReg 5809; amended to be effective June 10, 2014, 39 TexReg 4486."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=120022&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "120022",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "85",
                "label": "FLEXIBLE BENEFITS"
            },
            "rule": {
                "number": "§85.12",
                "label": "Plan Qualification"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201249&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201249",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) These plans, the benefits provided thereunder, or contributions made thereto, shall be in compliance with all applicable Code provisions and regulations promulgated thereunder, as amended from time to time, regarding nondiscrimination, eligibility, and plan qualification requirements.(b) In the event the plan administrator determines that any discrimination in favor of highly compensated employees, as defined in Internal Revenue Code §414(q) or under any applicable provision of the Code regarding discrimination, has occurred or may occur, the plan administrator shall be authorized to cause the election made by any participants to be modified to the extent necessary to avoid or cure such discrimination. Such participants participating herein shall be deemed, upon executing the requisite application for participation, to have expressly consented to any modification of the application and salary conversion agreement deemed necessary by the plan administrator to prevent discrimination from occurring.(c) Although these plans are intended to be fully qualified under the Code, neither the employer, the plan administrator, employees, the state of Texas, nor any agent or representative thereof, represents that these plans, the benefits provided thereunder, or contributions made thereto, at any particular point in time do not discriminate in favor of highly compensated employees, as determined in accordance with applicable provisions of the Code and regulations promulgated thereunder. The employer, the plan administrator, the state of Texas and any agent or representative thereof shall be held harmless by any employee, participant, their representatives, heirs, beneficiaries, administrators, or assigns from any and all tax liability of any nature that might arise by reason of these plans being deemed discriminatory at any time and in any regard or by reason of plan qualification requirements.(d) In the event any portion or all of a benefit or benefits becomes taxable hereunder, by reason of these plans being deemed discriminatory, such benefit shall be treated as received or accrued in the taxable year of the participant or key employee in which the plan year ends unless applicable law requires inclusion in income at some other time, in which case, such law shall be controlling.",
            "sourceNote": "Source Note: The provisions of this §85.12 adopted to be effective May 29, 2005, 30 TexReg 3022."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201249&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201249",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "85",
                "label": "FLEXIBLE BENEFITS"
            },
            "rule": {
                "number": "§85.13",
                "label": "Funding"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20121&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "20121",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Expenses of administration. Any expenses incurred in the administration of the flexible benefits plan will be paid from the State Employees Cafeteria Trust Fund. An administrative fee to defray costs of administering the plan may be imposed on any, or each, reimbursement account as the board of trustees determines to be necessary.(b) Employee Contributions.(1) Contributions to the flexible benefits plan by active duty employees may be made only through payroll salary reduction. An employee who elects to participate in the health care and dependent care reimbursement plans must authorize, on an election form, the exact amount of salary reduction, in addition to any monthly administrative fee.(2) Eligible health care reimbursement account participants on inactive employment status must continue to contribute to their health care reimbursement account with after-tax dollars paid directly to the Employees Retirement System of Texas in the exact amount of the election, plus any administrative fees.(3) The minimum amount a participant may elect to reduce his salary on a monthly basis for each reimbursement account is $15. The maximum amount an employee may elect to reduce his salary on a monthly basis for each reimbursement account is limited to the amount stipulated in §85.5(b) and (c) of this title (relating to Benefits). Any administrative fee for a reimbursement account is in addition to these minimum and maximum amounts.(4) When a participant receives no salary in a pay period, no salary reduction will be made for that pay period and no catch-up salary reduction will subsequently be permitted, except as described in §85.9(d)(2) of this title (relating to Payment of Claims from Reimbursements Accounts) for health care reimbursement account participants.(5) In situations where there are insufficient salary dollars to fund the amount of the salary reduction and fees, no salary reduction will be made, except as indicated in paragraph (6) of this subsection, for that pay period and no catch-up reduction will subsequently be permitted, except as described in §85.9(d)(2) of this title for health care reimbursement account participants.(6) In the event an employee has elected to participate in more than one flexible benefits plan optional benefit and the employee's pay is sufficient to pay for one or more, but not all of the flexible benefits plan contributions, then payment of the flexible benefits plan contributions shall be made in the following order: health care reimbursement and dependent care reimbursement.(7) If a participant elects to change contributions due to a qualifying life event (QLE), the plan administrator shall reimburse eligible claims based on the contribution in place when they occurred. Claims incurred during the initial enrollment period shall be reimbursed up to the amount of the participant's original contribution election. The plan administrator shall treat the remainder of the plan year following the QLE as a new coverage period, and claims incurred in this time period shall be reimbursed up to the amount of the new contribution election.(c) Employer Contributions. The employer contributions referenced in §85.8(b) of this title made to active duty employees' health care reimbursement accounts or limited purpose health care reimbursement accounts in connection with the HealthSelectShoppERS program are the only Employer Contributions available under the TexFlex Program.",
            "sourceNote": "Source Note: The provisions of this §85.13 adopted to be effective August 12, 1988, 13 TexReg 3754; amended to be effective September 1, 1990, 15 TexReg 4646; amended to be effective September 1, 1992, 17 TexReg 2874; amended to be effective February 12, 1998, 23 TexReg 1313; amended to be effective September 16, 1999, 24 TexReg 7276; amended to be effective July 17, 2003, 28 TexReg 5539; amended to be effective May 29, 2005, 30 TexReg 3022; amended to be effective March 14, 2016, 41 TexReg 1860; amended to be effective September 8, 2020, 45 TexReg 6240."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20121&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "20121",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "85",
                "label": "FLEXIBLE BENEFITS"
            },
            "rule": {
                "number": "§85.15",
                "label": "Termination and Amendment of Plan"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201250&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201250",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Termination of plan. The plan is intended to be permanent; however, it may be terminated if the board of trustees determines that the plan is no longer advantageous to the state or state and institution of higher education employees. In such case, the board of trustees may adopt an order terminating the plan and providing a procedure for the orderly withdrawal of the state and its employees from the Flexible Benefits Program.(b) Preservation of rights. Termination or amendment of the plan shall not affect the rights of any participant to claim reimbursement for expenses incurred prior to such termination or amendment, to the extent such amount is payable under the terms of the plan, prior to the effective date of such termination or amendment.",
            "sourceNote": "Source Note: The provisions of this §85.15 adopted to be effective August 12, 1988, 13 TexReg 3754; amended to be effective September 1, 1992, 17 TexReg 2874."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201250&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201250",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "85",
                "label": "FLEXIBLE BENEFITS"
            },
            "rule": {
                "number": "§85.17",
                "label": "Grievance Procedure"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=103353&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "103353",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Any person participating in the flexible benefits program, who is denied reimbursement of eligible expenses, may request the plan administrator or its designee to reconsider the claim. Any additional documentation in support of the claim may be submitted with the request for reconsideration. If the claim is again denied, the claim, accompanied by all related documents and copies of correspondence with the plan administrator or its designee, may be appealed by the person to the executive director of the Employees Retirement System of Texas. An appeal must be filed by the person in writing within 90 days from the date the plan administrator or its designee formally denies the claim and mails notice of this denial and right of appeal to the person.(b) Any participant with a grievance regarding eligibility or other matters involving the TexFlex program may submit a written request to the executive director or the executive director's designee to make a determination on the matter in dispute.(c) When the executive director or the executive director's designee reviews any matter arising under this section, information available to ERS will be considered. When the executive director or the executive director's designee completes the review and makes a decision, all parties involved will be notified in writing of the decision.(d) Any participant aggrieved by the executive director's or the executive director's designee's decision may appeal the decision to the Board's designee provided the decision grants a right of appeal.(1) Appeals of the Board's designee's decision will be conducted under the provisions of Chapter 67 of this title (relating to Hearings and Disputed Claims) and Chapter 1551, Insurance Code.(2) A notice of appeal to the Board's designee must be in writing and filed with ERS within 30 days from the date the executive director's or the executive director's designee's decision is served on the participant in accordance with §67.7 of this title (relating to Filing and Service of Documents and Pleadings).",
            "sourceNote": "Source Note: The provisions of this §85.17 adopted to be effective August 12, 1988, 13 TexReg 3754; amended to be effective July 17, 2003, 28 TexReg 5539; amended to be effective June 14, 2007, 32 TexReg 3356; amended to be effective March 15, 2010, 35 TexReg 2205; amended to be effective September 8, 2020, 45 TexReg 6240."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=103353&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "103353",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "85",
                "label": "FLEXIBLE BENEFITS"
            },
            "rule": {
                "number": "§85.19",
                "label": "Termination of Coverage"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=134543&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "134543",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Sanctions for Flexible Benefits Program violations. The plan administrator may expel any person from the Flexible Benefits Program or any part thereof, or impose any other sanction described by the Act, to any person who submits a fraudulent claim or otherwise submits a materially false claim or application for participation or change in status or defrauds or attempts to defraud any plan of benefits under the program or is determined by the executive director to have otherwise violated §1551.351 of the Act .(b) Indebtedness to the Flexible Benefits Program. The plan administrator may deny participation in the Flexible Benefits Program or any part thereof to any person who is indebted to the program from prior enrollments or who has otherwise failed to fulfill contractual agreements. Any person denied participation in the Flexible Benefits Program or any part thereof due to indebtedness to the Flexible Benefits Program or due to the failure to fulfill contractual obligations to the program must repay all outstanding indebtedness or otherwise fulfill contractual obligations to the program prior to being permitted once again to participate in the Flexible Benefits Program. A person who has repaid the indebtedness to the program may resume participation in the Flexible Benefits Program two full plan years from the date the indebtedness is repaid.(c) Any appeal of the executive director's determination will be conducted in accordance with §1551.351 of the Act.",
            "sourceNote": "Source Note: The provisions of this §85.19 adopted to be effective September 1, 1992, 17 TexReg 2874; amended to be effective July 17, 2003, 28 TexReg 5539."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=134543&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "134543",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "87",
                "label": "DEFERRED COMPENSATION"
            },
            "rule": {
                "number": "§87.1",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=172588&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "172588",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Account--A record that a prior plan vendor or revised plan vendor uses to record the value of the deferred compensation activity credited to the participant, including annual deferrals, earnings or investment losses, transfers and any distributions made to a participant or on behalf of the participant's beneficiary.(2) Basic pension plan--The retirement program in which an employee must participate.(3) Beneficiary--The designated person (or if none, the participant's estate) who is entitled to receive benefits under the plan after the death of a participant.(4) Beneficiary designation form--A form authorized and approved by the plan administrator to designate a participant's beneficiary.(5) Benefits coordinator--An employee of a state agency who has been designated by the agency to perform certain administrative functions with respect to the plan.(6) Board of Trustees--The Board of Trustees of the Employees Retirement System of Texas.(7) Call-in day--The first five working days of the month.(8) Change agreement--A contract signed by a participant to request certain changes concerning the participant's deferrals, investment income, and participation in the plan.(9) Code--The Internal Revenue Code of 1986, as now in effect or as hereafter amended. All citations to sections of the Code are to such sections as they may from time to time be amended or renumbered.(10) Data collection center--A private entity used by the State Treasury Department to collect information from state depositories regarding deposits of state funds.(11) Day--A calendar day.(12) DCP--Deferred compensation plan.(13) Deferral--The amount of compensation a participant has agreed to defer under the plan.(14) Distribution agreement--A contract signed by a participant or beneficiary indicating the disposition of the participant's deferrals and investment income.(15) Disclosure form--A document completed by a prior plan vendor's representative and signed by the vendor representative disclosing the rate of return, fees, withdrawal penalties, and payout options for the qualified investment product selected.(16) Eligible rollover distribution--Any distribution of all or any portion of a participant's account balance, including an individual retirement account described in §408(a) of the Code, an individual retirement annuity described in §408(b) of the Code, a qualified trust described in §401(a) of the Code, an annuity plan described in §403(a) or §403(b) of the Code, that accepts the rollover distribution, except that an eligible distribution does not include:(A) any installment payment for a period of 10 years or more;(B) any distribution as a result of an unforeseeable emergency; or(C) for any other distribution, the portion, if any, of the distribution that is required under §401(a)(9).(17) Enrollment form--formerly known as participation agreement. A contract signed by an employee agreeing to defer the receipt of part of the employee's compensation in accordance with the plan and containing certain information regarding prior plan vendors, investment products, and other matters.(18) Emergency withdrawal application--A form completed by a participant requesting the full or partial distribution of the participant's deferrals and investment income because of an unforeseeable emergency.(19) Employee--A person who provides services as an officer or employee to a state agency.(20) Executive director--The executive director of the Employees Retirement System of Texas.(21) FDIC--The Federal Deposit Insurance Corporation or its successor in function. The FDIC consists of two funds, the Savings Association Insurance Fund (SAIF), which insured savings associations and savings banks, and the Bank Insurance Fund (BIF), which insures commercial banks.(22) Fee--The term includes a fee, penalty, charge, assessment, market value adjustment, forfeiture, or service charge.(23) Includible income--The total of:(A) the value of salary or wages;(B) plus the value of longevity pay, hazardous duty pay, imputed income, special duty pay, sick, vacation, back pay and benefit replacement pay; and(C) minus the present value of contributions to the Employees Retirement System, the Teacher Retirement System, the Optional Retirement Program, and the TexFlex program administered by the Employees Retirement System.(24) Home office--The primary location at which a prior plan vendor maintains its files and other records concerning the vendor's participation in the plan and the participants whose deferrals and investment income have been invested in the vendor's qualified investment products. The term is usually equivalent to the vendor's headquarters.(25) Inactive prior plan vendor--A prior plan vendor is an inactive prior plan vendor if no new deferrals have been invested in any of the vendor's qualified investment products for 12 consecutive months.(26) Includible compensation--An employee's actual wages in box 1 of Form W-2 for a year for services and compensation from a state agency that is includible in a participant's includible income under §401(a)(17) of the Code and increased (up to the dollar maximum) by any compensation reduction election under §§125, 132(f), 401(k), 403(b) or 457(b) of the Code.(27) Inherited IRA--An IRA that becomes property through inheritance of someone other than the spouse of the deceased owner of the IRA. The beneficiary must receive the distribution by December 31 of the fifth year after the death of the owner. This type of IRA does not allow for tax deductible contributions nor rollovers to and from other IRAs. The IRA can be paid as an annuity or in periodic installments not extending beyond the beneficiary's life expectancy.(28) Investment income--The interest, capital gains, and other income earned through the investment of deferrals in qualified investment products.(29) Investment product--The term includes a life insurance product, fixed or variable rate annuity, stable value account, mutual fund, certificate of deposit, money market account, self-directed brokerage account, or passbook savings account. An investment product that is in any respect different from another investment product of the same vendor is a different investment product.(30) Investment provider--a prior plan vendor or revised plan vendor that offers an investment product in the plan.(31) Qualified military service--a uniformed service while on active or inactive duty, including training periods. Uniformed services include the Army, Navy, Marine Corps, Air Force, Coast Guard, and Public Health Service Commission Corps, the reserve components of those services as well as training or service in the National Guard or Air National Guard and any other category of persons designated by the President in a time of war or emergency.(32) NCUA--National Credit Union Administration, a United States Government Agency, which regulates charters and insures deposits of the nation's federal credit unions. Shares and deposits in credit unions are insured by the NCUSIF as detailed in this section.(33) NCUSIF--National Credit Union Share Insurance Fund, is administered by the NCUA as detailed in this section and insures members' share and deposit accounts at federally insured credit unions.(34) Non-filer--A prior plan vendor which does not ensure that the plan administrator receives a quarterly report by the due date specified in §87.19(d)(1) of this title (relating to Reporting and Recordkeeping by Prior Plan Vendors).(35) Non-spousal beneficiary--Any beneficiary other than a spouse or ex-spouse.(36) Normal retirement age--A range of ages beginning with the earliest age at which a person is eligible to retire under the participant's basic pension plan as referenced in §87.5(g) of this title (relating to Participation by Employees).(37) One-time election form--A form completed by a participant requesting the full distribution of deferred compensation funds with a total balance that does not exceed the dollar limit under the Code §457(e)(9), EGTRRA, or the dollar limit under §411(a)(11) of the Code, if greater, as of the date that payments commence. Also known as the de minimis distribution election.(38) Participant--A current, retired, or former employee who either has elected to defer a portion of the employee's current compensation, previously deferred compensation or has a balance in the plan.(39) Participation agreement--A contract signed by an employee agreeing to defer the receipt of part of the employee's compensation in accordance with the plan and containing certain information regarding prior plan vendors, investment products, and other matters.(40) Plan--The deferred compensation program of the state of Texas that is governed by the Code §457 and authorized by Chapter 609, Government Code. This plan is a continuation of the plan previously administered by the Comptroller of Public Accounts.(41) Plan administrator--The Board of Trustees of the Employees Retirement System of Texas or its designee.(42) Prior plan--Refers to the State of Texas 457 Deferred Compensation Plan, the vendors and products approved by the Board of Trustees of the Employees Retirement System of Texas prior to September 1, 2000.(43) Prior plan vendor--A vendor in the prior plan with whom the plan administrator has signed a vendor contract. The term includes a prior plan vendor's officers and employees. The prior plan vendor may be an insurance company, bank, savings and loan, credit union, or mutual fund. The term applies only to vendors approved and implemented by the Board of Trustees before January 1, 2000.(44) Product approval notice--A written notice from the plan administrator to a prior plan vendor informing the vendor that a particular investment product has been approved for participation in the plan.(45) Product contract--A contract between an investment provider and the plan administrator concerning the participation of one of the vendor's investment products in the plan.(46) Product type--A categorization of an investment product according to its relevant characteristics. Examples of product types are life insurance products, mutual funds, certificates of deposit, savings accounts, share accounts, stable value account, self-directed brokerage account, and annuities.(47) Public safety employee--Any employee of a state or political subdivision who provides police protection, firefighting services, or emergency medical services for any area within the jurisdiction of such state or political subdivision. It may also include a chaplain or a member of an ambulance or rescue crew. This does not include judges, Texas Department of Criminal Justice guards, probation, parole, juvenile delinquency or similar officers.(48) Qualified investment product--An investment product concerning which the plan administrator and the sponsoring prior plan or revised plan vendor have signed a product contract.(49) Revised plan--Refers to the State of Texas 457 Deferred Compensation Plan and the vendors and products approved by the Board of Trustees of the Employees Retirement System of Texas after August 31, 2000 for the Texa$aver program. The term \"Texa$aver program\" is used as it is defined in Texas Government Code §609.502.(50) Revised plan vendor--An insurance company, brokerage firm, or mutual fund distributor that sells investment products in the revised plan. The term includes a vendor's officers and/or employees. This applies only to vendors approved and implemented by the Board of Trustees subsequent to December 31, 1999.(51) Separation from service--A termination of the employment relationship between a participant and the participant's employing state agency, as determined in accordance with the agency's established practice. The term excludes a paid or unpaid leave of absence.(52) Spousal beneficiary--The current or ex-spouse of a participant who is designated to receive a participant's account balance.(53) State agency--A board, commission, office, department, or agency in the executive, judicial, or legislative branch of state government. The term includes an institution of higher education as defined by the Education Code, §61.003. The term shall not include the University of Texas System.(54) Third Party Administrator (TPA)--An entity under the direction of the plan administrator that operates independently of both the employer and investment providers to perform agreed upon administrative services to a tax-deferred defined contribution plan. These tasks may include recordkeeping, preparation of participant statements, monitoring deferral limits, and other specified services.(55) Transfer--The redemption of deferrals and investment income from a qualified investment product for investment in another qualified investment product.(56) Trust--The deferred compensation trust fund established to hold and invest deferrals and investment income under the plan for the exclusive benefit of participants and their beneficiaries.(57) Trustee--The Board of Trustees of the Employees Retirement System of Texas.(58) Unforeseeable emergency distribution--A severe financial hardship of the participant resulting from: an illness or accident, loss of property due to casualty, funeral expenses or other extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the participant.(59) Valuation date--A point in time in which an asset is assigned a dollar value. It may be the designated time of closing (daily, last day of the calendar month, the last day of the calendar quarter, each December 31) for determination of account balances in a defined contribution plan.(60) Vendor contract--A contract between the plan administrator and an investment provider concerning the vendor's participation in the plan.(61) Vendor representative--An agent, independent agent, independent contractor, or other representative of a prior plan who is not an employee or officer of the vendor.(62) 401(a)(9), §401(a)(9) and Section 401(a)(9)--These terms refer to Internal Revenue Code §401(a)(9).(63) 457, §457 and Section 457--These terms refer to Internal Revenue Code §457.",
            "sourceNote": "Source Note: The provisions of this §87.1 adopted to be effective March 28, 1991, 16 TexReg 1560; amended to be effective January 10, 1992, 16 TexReg 7743; amended to be effective November 23, 1992, 17 TexReg 7911; amended to be effective January 1, 1994, 18 TexReg 8460; amended to be effective January 5, 1996, 20 TexReg 11022; amended to be effective November 11, 1996, 21 TexReg 10766; amended to be effective March 21, 1997, 22 TexReg 2513; amended to be effective February 12, 1998, 23 TexReg 1113; amended to be effective September 10, 1998, 23 TexReg 9067; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective January 5, 2003, 27 TexReg 12370;amendedtobe effectiveSeptember11, 2003, 28 TexReg 7785; amended to be effective September 30, 2004, 29 TexReg     9204; amended to be effective May 29, 2005, 30 TexReg 3023; amended to be effective January 10, 2006, 31 TexReg 170; amended to be effective June 14, 2007, 32 TexReg 3357; amended to be effective December 31, 2007, 32 TexReg 10054."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=172588&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "172588",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "87",
                "label": "DEFERRED COMPENSATION"
            },
            "rule": {
                "number": "§87.3",
                "label": "Administrative and Miscellaneous Provisions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=134539&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "134539",
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            },
            "ruleBody": "(a) Plan administrator.(1) The plan administrator shall administer all aspects of the plan.(2) The plan administrator shall:(A) act for the state in all administrative matters concerning the plan;(B) adopt and amend rules that are consistent with state and federal law;(C) enter into necessary contracts; and(D) take whatever action is necessary to ensure compliance with state and federal law and the sections in this chapter.(b) Participation by state agencies in the plan.(1) Commencing participation in the plan.(A) A state agency may commence participation in the plan by:(i) sending a written notice from its head of agency to the plan administrator; and(ii) complying with the plan administrator's documentary, training, and other requirements for participation in the plan.(B) The plan administrator may determine the effective date of a state agency's participation in the plan.(C) If the plan administrator does not determine the effective date in accordance with subparagraph (B) of this paragraph, this subparagraph applies.(i) If the plan administrator receives the written notice on the first day of a month, then the state agency's participation in the plan is effective on the first pay date of the following month.(ii) Otherwise, the state agency's participation in the plan is effective on the first pay date of the second month following the month in which the plan administrator receives the notice.(2) Terminating participation in the plan.(A) Voluntary termination.(i) A state agency may terminate its participation in the plan by sending a written notice from its head of agency to the plan administrator.(ii) If the plan administrator receives the notice on the first day of a month, then the state agency's participation in the plan terminates on the first pay date of the third month following the month in which the plan administrator receives the notice. Otherwise, the state agency's participation in the plan terminates on the first pay date of the fourth month following the month in which the plan administrator receives the notice.(iii) A state agency's termination of its participation in the plan does not entitle the agency's participants to a distribution of their deferrals and investment income.(iv) A participant who is employed by a state agency that has terminated its participation in the plan may not make additional deferrals until either the agency resumes participating in the plan or the participant becomes employed by a state agency participating in the plan.(v) The benefits coordinator of a state agency that has terminated its participation in the plan is not relieved from the responsibilities set forth in the sections in this chapter, except to the extent that the agency's participants will not be making additional deferrals to the plan.(B) Involuntary termination or suspension.(i) The plan administrator may terminate or suspend a state agency's participation in the plan if the agency or the agency's coordinator violates the sections in this chapter.(ii) The plan administrator may determine the length of a suspension after considering all relevant circumstances.(iii) The plan administrator may reinstate a state agency that has been terminated from participation in the plan if the plan administrator determines that the best interests of the plan would be served.(iv) If the plan administrator terminates or suspends a state agency's participation in the plan, the agency's participants are not entitled to a distribution of their deferrals and investment income by virtue of the termination or suspension.(v) The participant of a state agency that the plan administrator has terminated or suspended from participation in the plan may not make additional deferrals until the plan administrator reinstates the agency, the suspension ends, or the participant becomes employed by a state agency participating in the plan.(vi) The agency administrator of a terminated or suspended state agency is not relieved from the responsibilities set forth in the sections in this chapter, except to the extent that the agency's participants will not be making additional deferrals to the plan.(3) Benefits coordinator. A benefits coordinator's responsibilities may include:(A) maintaining records concerning each participant as required by the plan administrator;(B) keeping participation agreements on file;(C) retaining the original copies of insurance policies and annuity contracts;(D) ensuring that deferrals are properly deducted from a participant's salary and sent to the appropriate entity as directed by the plan administrator;(E) monitoring the annual deferral limits for each plan participant to ensure the maximum annual deferral limit is within the amount allowed by the Internal Revenue Service or 100% of the participant's includible income is not exceeded;(F) calculating and monitoring catch-up limits and furnishing the plan administrator with the applicable catch-up forms;(G) ensuring that all forms and other paperwork are properly completed and forwarded to the appropriate party;(H) balancing participant records and reconciling those records with the data provided by the prior plan vendors and the plan administrator;(I) informing employees and participants about the plan, including the necessity to file distribution agreements in accordance with §87.17 of this title (relating to Distributions);(J) acting as a buffer between employees and participants on the one hand and prior plan vendors on the other, although a benefits coordinator is prohibited from providing investment advice;(K) attempting to locate missing participants and beneficiaries in accordance with §87.17(q) of this title;(L) assisting a participant who has retired or left state employment if the participant's last position in state government was with that particular agency that employs the benefits coordinator;(M) continuing to assist a participant with all deferred compensation matters if a participant transfers from a participating state agency to a non-participating state agency until the participant returns to a different participating agency;(N) assisting the beneficiary of a participant whose last position in state government was with that particular state agency that employs the benefits coordinator;(O) notifying the plan administrator when a participant dies or separates from service; and(P) performing any other duties specified in the sections in this chapter or the plan document.(c) Miscellaneous provisions.(1) The participation in the plan of an investment provider or TPA, qualified investment product, state employee, vendor representative, or employee of a prior or revised plan vendor is subject to changes in federal law, federal regulations, state law, and the sections in this chapter.(2) The fiscal year of the plan begins on January 1 of each year.(3) The mailing address of the plan administrator is: Plan Administrator, Deferred Compensation §457 Plan, Employees Retirement System of Texas, P.O. Box 13207, Austin, Texas 78711-3207.(4) If a provision in the sections in this chapter or the plan document conflicts with a federal law, rule, or regulation governing the plan, then the law, rule, or regulation prevails over the provision.(5) The participation of an employee in the plan does not give the employee a legal or equitable right against the participant's employing state agency, the plan administrator, or the state of Texas except as provided in the sections in this chapter or the plan document. The plan does not affect the terms of employment between a participant and the participant's employing state agency.(6) If a time limit is expressed in terms of a number of days and the last day of the time limit falls on a weekend or holiday recognized by the state of Texas for observance by state employees, the last day of the time period is the first business day after the weekend or holiday.(7) The interests of each participant or beneficiary under the plan are not subject to the claims of the participant's or beneficiary's creditors; and neither the participant nor any beneficiary shall have any right to sell, assign, transfer, or otherwise convey the right to receive any payments hereunder or any interest under the plan, which payments and interest are expressly declared to be non-assignable and non-transferable. This rule is applicable as referenced in §87.17(e)(7) of this title (relating to Distributions by Employees) for qualified domestic relations orders.",
            "sourceNote": "Source Note: The provisions of this §87.3 adopted to be effective March 28, 1991, 16 TexReg 1560; amended to be effective January 10, 1992, 16 TexReg 7743; amended to be effective January 5, 1996, 20 TexReg 11022; amended to be effective March 21, 1997, 22 TexReg 2513; amended to be effective September 10, 1998, 23 TexReg 9067; amended to be effective January 5, 2003, 27 TexReg 12370; amended to be effective September 30, 2004, 29 TexReg 9204; amended to be effective May 29, 2005, 30 TexReg 3023; amended to be effective January 10, 2006, 31 TexReg 170; amended to be effective June 14, 2007, 32 TexReg 3357; amended to be effective December 31, 2007, 32 TexReg 10054;amended to be effective June 9, 2015, 40 TexReg 3575."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=134539&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "134539",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "87",
                "label": "DEFERRED COMPENSATION"
            },
            "rule": {
                "number": "§87.5",
                "label": "Participation by Employees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=134540&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "134540",
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            },
            "ruleBody": "(a) Benefits of participation. The plan administrator shall cease to accept deferrals to investment products approved under the prior plan, with exception of life insurance products on or after September 1, 2000. Subject to any changes in federal law:(1) a participant's deferrals are not subject to federal income taxation until the deferrals are paid or otherwise made available to the participant; and(2) investment income is not subject to federal income taxation until it is paid or otherwise made available to the participant.(b) Enrollment of participants in the plan.(1) An employee may complete an enrollment form, enroll online or enroll through customer service representative at the TPA in the revised plan.(2) If a participant has not selected an investment product to receive deferrals, the deferrals shall be invested in a product selected by the plan administrator at its sole discretion.(c) Effective date of enrollment. A participant's enrollment in the Plan is effective for compensation earned beginning with the month following the month in which the participant enrolls.(d) Eligibility. Employees are eligible to participate in the plan and defer compensation immediately upon becoming employed by a state agency. Employees of community colleges and junior colleges are eligible only if such community college or junior college has opted to participate in the Texa$aver 457 plan.(e) Contents of a participation agreement used in the prior plan. A participation agreement must contain but shall not be limited to:(1) the participant's consent for payroll deductions equal to the amount of deferrals during each pay period;(2) the amount that will be deducted from the participant's compensation during each pay period;(3) the prior plan vendor and qualified investment product in which the participant's deferrals will be invested;(4) the date on which the payroll deductions will begin or end, as appropriate;(5) the signature of an individual with authority to bind the prior plan vendor;(6) the signature of an individual with authority to bind the participant; and(7) an incorporation by reference of the requirements of state law and the sections in this chapter.(f) Participants with existing life insurance products.(1) This paragraph is effective until December 31, 1998. When a participant has deferrals and investment income in a life insurance product, the state of Texas:(A) retains all of the incidents of ownership of the life insurance product;(B) is the sole beneficiary of the life insurance product;(C) is not required to transfer the life insurance product to the participant or the participant's beneficiary; and(D) is not required to pass through the proceeds of the product to the participant or the participant's beneficiary.(2) This paragraph is effective January 1, 1999, and thereafter. When a participant has deferrals and investment income in a life insurance product, the life insurance product shall be held in trust for the exclusive benefit of the participant and beneficiaries.(g) Normal maximum amount of deferrals.(1) The amount a participant defers during each tax year may not exceed the normal maximum amount of deferrals.(2) The normal maximum amount of deferrals is the maximum amount allowed by the Internal Revenue Service (as periodically adjusted for cost-of-living in accordance with Code §457(e)(15)), §415(d), the Job Creation and Worker Assistance Act of 2002 and the Pension Protection Act of 2006, or 100% of a participant's includible compensation.(3) The participant's employing agency will monitor the annual deferral limits for each plan participant to ensure the maximum annual deferral limit is within the maximum amount allowed by the Internal Revenue Service or 100% of a participant's includible income is not exceeded. Any state agency or employing agency that is uncertain what the appropriate maximum annual deferral limit is for a calendar year should contact the plan administrator to obtain that information. Each participant enrolling in the plan must provide the employing state agency any information necessary to ensure compliance with plan requirements, including, without limitation, whether the employee is a participant in any other eligible plan. If a participant makes deferrals in excess of the normal maximum annual deferral limit and is not participating under the catch-up provision, the following actions will be taken:(A) Upon notification by the participant's agency, the prior plan vendor or TPA will return to the participant's agency the amount of deferrals in excess of the normal plan limits, that is, any amount exceeding the maximum amount allowed by the Internal Revenue Service or 100% of the participant's includible income without any reduction for fees or other charges.(B) Upon receipt of the funds, the participant's agency will reimburse the participant through its payroll system.(4) If any deferral (or any portion of a deferral) is made to the plan by a good faith mistake of fact, then within one year after the payment of the deferral, and upon receipt in good order of a proper request approved by the plan administrator, the amount of the mistaken deferral (adjusted for any income or loss in value, if any, allocable thereto) shall be returned directly to the participant or, to the extent required or permitted by the plan administrator, to the participant's employing state agency.(5) Disregard excess deferral. A participant is treated as not having deferred compensation under a plan for a prior taxable year to the extent excess deferrals under the plan are distributed, as described in paragraph (4) of this subsection. To the extent that the combined deferrals for pre-2002 years exceeded the maximum deferral limitations, the amount is treated as an excess deferral for those prior years.(h) Three-year catch-up exception to the normal maximum amount of deferrals.(1) This subsection provides a limited exception to the normal maximum amount of deferrals.(2) In the event that a participant chooses to begin the three-year catch-up option, the participant is required to complete and provide the plan administrator with a copy of the three-year catch-up provision agreement form.(3) In this subsection, the term \"normal retirement age\" for any participant means a range of ages:(A) beginning with the earliest age at which a person may retire under the participant's basic pension plan:(i) without an actuarial or similar reduction in retirement benefits; and(ii) without the state's consent for the retirement; and(B) ending at age 70.5.(C) A participant who is a police officer or firefighter (defined in Code §415(b)), may designate a normal retirement age that is earlier than that described above, but in any event may not be earlier than age 40.(4) If a participant works beyond age 70.5, the normal retirement age for the participant is the age designated by the participant, which, in this instance, may not be later than the participant's separation from service.(5) For any or all of the last three full taxable years ending before the taxable year in which a participant attains normal retirement age, the maximum amount that the participant may defer for each tax year is the lesser of:(A) twice the annual §457(g) deferral limit as adjusted, or(B) the sum of:(i) the normal maximum amount of deferrals for the current year plus each prior calendar year beginning after December 31, 2001, during which the participant was an employee under the plan, minus the aggregate amount of compensation that the participant deferred under the plan during such years, plus(ii) the normal maximum amount of deferrals that the participant did not use in prior tax years commencing December 31, 1978 and before January 1, 2002, provided the participant was eligible to participate in the plan, minus the aggregate contributions to pre-2002 coordination plans during those years.(6) The participant's employing agency will calculate and monitor all three-year catch-up limits and furnish the plan administrator with the applicable three-year catch-up forms. If a participant makes deferrals in excess of the participant's three-year catch-up limit, the following actions will be taken.(A) Upon notification by the participant's agency, the prior plan vendor or TPA will return to the participant's agency, the amount of deferrals in excess of the three-year catch-up limit without any reduction for fees or other charges.(B) Upon receipt of the funds, the participant's agency will reimburse the participant through its payroll system.(7) This subsection applies only if the participant has not previously used the three-year catch-up exception with respect to a different normal retirement age under the plan or another deferred compensation plan governed by the Code §457.(8) If a participant makes deferrals in excess of the normal plan limits under the three-year catch-up provision during or after the calendar year in which the participant reaches normal retirement age, the following actions will be taken.(A) Upon notification by the participant's state agency, the prior plan vendor or TPA will return to the participant's state agency, the amount of deferrals in excess of the normal plan limits, that is, any amount exceeding the maximum amount allowed by the Internal Revenue Service (as adjusted in accordance with Code §457(e)(15) or 100% of a participant's includible compensation) without any reduction for fees or other charges.(B) Upon receipt of the funds, the participant's state agency will reimburse the participant through its payroll system.(9) Over age 50 catch-up. A participant age 50 or older during any calendar year shall be eligible to make additional pre-tax contributions in accordance with Code §414(v) applicable to 457 plans, in excess of normal deferral amounts. A participant may make an additional contribution over and above the applicable deferral limit. The additional contribution is $5,000 for 2006. After 2006, the amount of the \"Over age 50 and over catch-up\" will be indexed in $500 increments based upon cost-of-living adjustments. A participant who elects to defer contributions under the normal three-year catch-up provisions may not also defer under the special Over age 50 catch-up and Code §414(v) and §457.(10) Special post severance compensation under Code §415 effective January 1, 2007. A participant may elect to defer compensation paid within 2 1/2 months following separation from service in accordance with Code §415. Types of compensation include:(A) accumulated bona fide sick pay, vacation pay, back pay or other leave, but only if the participant would have been able to use the leave if employment had continued;(B) payments for commissions, bonuses, overtime and shift differential pay, but only if these would have been paid and are regular compensation for services rendered;(C) compensation paid to participants who are permanently and totally disabled; and(D) compensation relating to qualified military or other service (Reg. 1.457-4(d)(1), Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA), Code §414(u) and the Pension Protection Act of 2006).(i) Changes before a participant becomes entitled to a distribution.(1) A participant may change the amount of deferral at any time.(2) A participant must execute a change agreement for the prior 457 Plan funds and file the agreement with the participant's benefits coordinator when the participant:(A) initiates a transfer;(B) changes the participant's primary or secondary beneficiary, or both; or(C) performs a combination of the items specified in subparagraphs (A) or (B) of this paragraph.(3) Upon receipt of a participation agreement or change agreement, the benefits coordinator shall review the agreement to determine whether it complies with the sections in this chapter.(A) With a participant's enrollment, the benefits coordinator shall take the action necessary for payroll initiation.(B) If a change agreement complies, the benefits coordinator shall send the agreement to the plan administrator.(4) This paragraph applies to changes of beneficiaries, changes of the prior plan vendor or qualified investment product that receives a participant's deferrals, and changes to the amount a participant defers per pay period. An executed change agreement or participation agreement is effective beginning with the month following the month in which the benefits coordinator receives the agreement from the participant.(5) This paragraph applies to transfers. An executed change agreement is effective on the date that the transfer procedures specified in §87.15 of this title (relating to Transfers) have been completed.(j) Conflict in beneficiary designations. The designation of a primary or secondary beneficiary, or both, in a beneficiary designation form, participation agreement, change agreement, or distribution agreement prevails over a conflicting designation in any other document.(k) A beneficiary designation that names a former spouse is invalid unless the designation is completed after the date of divorce and received by the plan administrator.(l) Paid leave of absence. Deferrals may continue during a participant's paid leave of absence, to the extent that compensation continues.(m) Unpaid leave of absence. If a participant separates from service or takes a leave of absence from the state because of service in the military and does not receive a distribution of his or her account balances, the Plans will allow suspension of loan repayments until after the conclusion of the period of military service.(n) Military service. Participants on a leave of absence due to qualified military service under Code §414(u) may elect to make additional annual deferrals upon resumption of employment with the state equal to the maximum annual deferrals that the participant could have elected during that period if employment had continued (at the same level of compensation) without the interruption or leave, reduced by the annual deferrals, if any. This right applies for five years following the resumption of employment (or if sooner, for a period equal to three times the period of the interruption or leave). To qualify for USERRA, final USERRA regulations (January 18, 2006) benefits and the Pension Protection Act of 2006, the employee must return to employment with the original employer within certain specified timelines based on the length of his or her service. If less than 31 days, the employee must report to work no later than the beginning of the first full work period on the first full calendar day following discharge, allowing reasonable time required to return home safely and an eight (8) hour rest period. If more than 30 days but less than 181 days, the employee must return to employment no later than 14 days following discharge. If more than 180 days, the employee must return to employment no later than 90 days following discharge. A serviceman called up for action between September 11, 2001 and December 31, 2007 for more than 179 days may take the later of two years after the end of active service to make up annual contributions, distributions or payback loans. A tax refund or credit may be allowed if filed before the close of such period.(o) Disability. A disabled participant may elect to defer compensation during any portion of the period of his or her disability to the extent that he or she has actual compensation (not imputed compensation and not disability benefits) from which to make contributions to the plan and has not had a separation from employment.(p) Termination and resumption of deferrals.(1) An employee may voluntarily terminate additional deferrals to the prior plan by completing a participation agreement or by contacting his or her benefits coordinator.(2) An employee who returns to active service after a separation from service must enroll in the revised plan before deferrals may resume.(q) Ownership of deferrals and investment income.(1) Until December 31, 1998, a participant's deferrals and investment income are the property of the state of Texas until the deferrals and investment income are actually distributed to the employee.(2) Effective January 1, 1999, in accordance with Chapter 609, Texas Government Code and Code §457(g), all amounts currently and hereafter held under the plan, including deferrals and investment income, shall be held in trust by the Board of Trustees for the exclusive benefit of participants and their beneficiaries and may not be used for or diverted to any other purpose, except to defray the reasonable expenses of administering the plan. In its sole discretion, the Board of Trustees may cause plan assets to be held in one or more custodial accounts or annuity contracts that meet the requirements of Code §457(g), and §401(f). In addition, effective January 1, 1999, the Board of Trustees does hereby irrevocably renounce, on behalf of the state of Texas and participating state agencies, any claim or right which it may have retained to use amounts held under the plan for its own benefit or for the benefit of its creditors and does hereby irrevocably transfer and assign all plan assets under its control to the Board of Trustees in its capacity as the trustee of the trust created hereunder. It shall be impossible, prior to the satisfaction of all liabilities with respect to participants and their beneficiaries, for any part of the assets and income of the trust fund to be used for, or diverted to, purposes other than for the exclusive benefit of participants and their beneficiaries. Adoption of this rule shall constitute notice to prior plan vendors holding assets under the plan to change their records effective January 1, 1999, to reflect that assets are held in trust by the Board of Trustees for the exclusive benefit of the participants and beneficiaries. Failure of a vendor to change its records on a timely basis may result in the expulsion of the vendor from the plan.(r) Market risk and related matters.(1) The plan administrator, the trustee, an employing state agency, or an employee of the preceding are not liable to a participant if all or part of the participant's deferrals and investment income are diminished in value or lost because of:(A) market conditions;(B) the failure, insolvency, or bankruptcy of an investment provider; or(C) the plan administrator's initiation of a transfer or investment of deferrals in accordance with the sections in this chapter.(2) A participant is solely responsible for monitoring his or her own investments and being knowledgeable about:(A) the financial status and stability of the investment provider in which the participant's deferrals and investment income are invested;(B) market conditions;(C) the resulting cost of making a transfer or distribution from a qualified investment product;(D) the amount of the participant's deferrals and investment income that are invested in an investment provider's qualified investment products;(E) the riskiness of a qualified investment product; and(F) the federal tax advantages and consequences of participating in the plan and receiving distributions of deferrals and investment income.(s) Alienation of deferrals and investment income. A participant's deferrals and investment income may not be:(1) assigned or conveyed;(2) pledged as collateral or other security for a loan;(3) attached, garnished, or subjected to execution; or(4) conveyed by operation of law in the event of the participant's bankruptcy, or insolvency.",
            "sourceNote": "Source Note: The provisions of this §87.5 adopted to be effective March 28, 1991, 16 TexReg 1560; amended to be effective January 10, 1992, 16 TexReg 7743; amended to be effective November 23, 1992, 17 TexReg 7911; amended to be effective January 1, 1994, 18 TexReg 8460; amended to be effective January 5, 1996, 20 TexReg 11022; amended to be effective March 21, 1997, 22 TexReg 2513; amended to be effective September 10, 1998, 23 TexReg 9067; amended to be effective January 5, 2003, 27 TexReg 12370; amended to be effective September 11, 2003, 28 TexReg 7785; amended to be effective September 30, 2004, 29 TexReg 9204; amended to be effective May 29, 2005, 30 TexReg 3023;amendedtobe effective January 10, 2006, 31 TexReg 170; amended to be effective September 14, 2006, 31 TexReg 7367;  amended to be effective June 14, 2007, 32 TexReg 3357; amended to be effective December 31, 2007, 32 TexReg 10054."
        },
        {
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            "currentRecordId": "134540",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "87",
                "label": "DEFERRED COMPENSATION"
            },
            "rule": {
                "number": "§87.7",
                "label": "Prior Plan Vendor Participation"
            },
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            "ruleBody": "(a) Prohibited activities. A prior plan vendor may not solicit business from employees or participants or otherwise participate in the plan until the prior plan vendor and the plan administrator have signed a vendor contract. No applications have been or will be accepted by the plan administrator for new prior plan vendors since January 1, 2000. For purposes of this Chapter, any language referring to prior plan vendor qualifications, eligibility or participation requirements remains necessary in order for the plan administrator to continue to assess whether the prior plan vendor remains an eligible vendor.(b) Eligibility requirements of a prior plan vendor.(1) Banks. The plan administrator shall disapprove a bank's application to become a prior plan vendor if:(A) the bank is not domiciled in the State of Texas;(B) the FDIC does not insure deposits with the bank; or(C) the bank is either not well-capitalized or is adequately capitalized but has not obtained a waiver to accept brokered deposits as defined in the Federal Deposit Insurance Corporation Improvement Act of 1991, Public Law 102-242, 105 Statute 2236, the Deficit Reduction Act of 2005 (P.L.109-171), enacted on February 8, 2006, and the related regulations.(2) Credit unions. The plan administrator shall disapprove a credit union's application to become a prior plan vendor if:(A) The credit union is not authorized to do business in the State of Texas under either the Texas Credit Union Act (Texas Civil Statutes, Article 2461-1.01 et seq.) or the Federal Credit Union Act (12 United States Code, §1751);(B) the National Credit Union Administration and the National Credit Union Share Insurance Fund does not insure deposits with the credit union; or(C) the credit union does not agree to collateralize deferrals and investment income to the extent that:(i) they exceed the amounts insured by the National Credit Union Administration and National Credit Union Share Insurance Fund; and(ii) collateralization is required by the sections in this chapter.(3) Insurance companies.(A) Upon receiving an application from an insurance company to become a prior plan vendor, the plan administrator shall file a written request with the Texas Department of Insurance for information about the company.(B) The plan administrator shall disapprove an insurance company's application to become a prior plan vendor if the Texas Department of Insurance notifies the plan administrator that the insurance company:(i) does not have a certificate of authority to transact business in the State of Texas;(ii) is not a member of the Life, Accident, Health, and Hospital Service Insurance Guaranty Association; or(iii) is an impaired or insolvent insurer as defined in the Life, Accident, Health, and Hospital Service Insurance Guaranty Association Act (Insurance Code, Article 21.28-D).(4) Savings and loan associations. The plan administrator shall disapprove a savings and loan association's application to become a prior plan vendor if:(A) the savings and loan association is a foreign association without a certificate of authority to transact business in the State of Texas as defined and required by the Texas Savings and Loan Act (Texas Civil Statutes, Article 852a);(B) the FDIC does not insure deposits with the savings and loan association; or(C) the savings and loan association is either not well-capitalized or is adequately capitalized but has not obtained a waiver to accept brokered deposits as defined in the Federal Deposit Insurance Corporation Improvement Act of 1991, Public Law 102-242, 105 Statute 2236, the Deficit Reduction Act of 2005 (P.L.109-171), enacted on February 8, 2006, and the related regulations.(5) Prior plan vendors of mutual funds. The plan administrator shall disapprove a vendor's application to become a prior plan vendor if the vendor proposes to offer a mutual fund as a qualified investment product and the mutual fund is not:(A) listed on the American Stock Exchange, Boston Stock Exchange, Midwest Stock Exchange, New York Stock Exchange, or a stock exchange approved by the securities commissioner of the State Securities Board in accordance with the Securities Act (Texas Civil Statutes, Article 581-1 et seq.);(B) designated or approved for designation on notice of issuance on the National Association of Securities Dealers Automated Quotation National Market System; or(C) registered with the securities commissioner.(c) Procedure for approving a prior plan vendor.(1) The home office of each prior plan vendor seeking participation in the plan must request an application package from the plan administrator. The plan administrator shall ensure that the application package contains a list of documents and other items that must be submitted to the plan administrator with the application.(2) The plan administrator may not approve a prior plan vendor for participation in the plan unless:(A) the plan administrator and the vendor sign a product contract concerning at least one of the vendor's investment products;(B) the vendor has a federal employers identification number; and(C) the vendor agrees to accept both transfers to and the investment of deferrals in its qualified investment products.(3) As a prerequisite to approving an application, the plan administrator shall require a prior plan vendor to:(A) execute an Employer Appointment of Agent form so that the vendor may file reports directly with the Internal Revenue Service; and(B) prove to the plan administrator's satisfaction that the vendor is capable of filing reports as required by §87.19 of this title (relating to reporting and recordkeeping by prior plan vendors).(4) If the plan administrator approves an application, the plan administrator shall sign and send to the prior plan vendor a vendor contract that complies with the sections in this chapter and applicable law.(d) Contacts.(1) In the application package, a prior plan vendor shall designate one individual who will be:(A) receiving deferrals and investment income;(B) acting as a prior plan vendor representative or agent and accepting Plan funds in accordance with instructions on Plan forms;(C) answering questions about the balances of deferrals and investment income; and(D) serving as liaison between the plan administrator and vendor management concerning matters of administration and vendor reporting.(2) In addition to the requirements of paragraph (1) of this subsection, an out-of-state prior plan vendor shall designate a responsible and knowledgeable individual in Texas who the plan administrator may contact for information about the vendor's activities in the plan.(3) Each prior plan vendor shall update the designations and information required by this subsection no later than the 30th day after a change.(4) The designations and updates required by this subsection must contain the names, addresses, and business telephone numbers of the individuals designated.(e) Change of name or legal status by a prior plan vendor.(1) If a prior plan vendor's name or legal status changes through merger, sale, dissolution, or any other means, the prior plan vendor must notify the plan administrator in writing no later than the 30th day after the change. The notice must contain a detailed description of the transaction that causes the change.(2) If a change in legal status results in the prior plan vendor's participation in the plan being conducted by a different legal entity, the new entity must notify the plan administrator no later than the 90th day after the change for approval as a qualified vendor before the entity may participate in the plan. If the new entity is not approved, participant funds would then be transferred to the revised plan. Transfers under this paragraph shall be made in accordance with §87.15(c) and (d) of this title (relating to Transfers) and shall not result in a fee or penalty being charged against the participant's account. Provided, however, that the plan administrator may, in its sole discretion, choose not to apply this paragraph, if it determines that it would be in the best interests of the plan and participants.(3) If a change in legal status results in a prior plan vendor's participation in the plan being conducted by a different legal entity that is also a prior plan vendor, participant funds may be transferred to that prior plan vendor, who then becomes responsible for the reporting requirements of the transferred funds.(f) Voluntary termination of participation in the plan.(1) A prior plan vendor may voluntarily terminate its participation in the plan after notifying, in writing, the plan administrator and all participants whose deferrals and investment income are invested in the vendor's qualified investment products. The prior plan vendor must ensure that the plan administrator and the participants receive the written notice no later than the 60th day before the effective date of the termination.(2) A prior plan vendor may establish the effective date of its termination from the plan. The prior plan vendor must clearly state the effective date in the written notice required by paragraph (1) of this subsection.(3) Notwithstanding paragraph (2) of this subsection, if the terminating prior plan vendor sponsors qualified investment products that have specific terms, such as a three-year certificate of deposit or a 30-day passbook account, the effective date of the prior plan vendor's termination may not be before the terms of all those products have expired for every participant unless approved by the plan administrator, the prior plan vendor must hold the participants, the plan and the plan administrator harmless from any fees or penalties that may be applicable in connection with such premature termination.(4) After receiving notice of termination, the plan administrator shall request each affected participant to submit a prior funds transfer form for the disposition of his or her deferrals and investment income. For each participant from whom the plan administrator has not received a prior funds transfer form by the effective date of the termination, the plan administrator shall initiate a transfer of all deferrals and investment income from the terminating vendor's qualified investment products to the revised plan.(5) When a prior plan vendor voluntarily terminates its participation in the plan, the vendor may not charge or permit to be charged a fee or penalty to participants, the plan or plan administrator for the transfers made after the notice of termination.(6) When a prior plan vendor that is an insurance company voluntarily terminates its participation in the plan, this paragraph applies in addition to the preceding paragraphs of this subsection.(A) In this paragraph, the term \"terminated life insurance product\" means a life insurance product that is no longer a qualified investment product because the life insurance company offering the product has voluntarily terminated the company's participation in the plan.(B) A participant whose deferrals and investment income have been invested in a terminated life insurance product may continue life insurance coverage with the insurance company offering the product.(C) An insurance company that voluntarily terminates its participation in the plan must offer continuing life insurance coverage to each participant whose deferrals and investment income were invested in a terminated life insurance product offered by the company. The insurance company must offer continuing coverage in a life insurance product that is comparable to the terminated life insurance product in which the participant's deferrals and investment income were invested.(D) The premiums for continuing life insurance coverage must be paid by the participant directly to the insurance company and may not be paid with deferrals or investment income.(E) A participant may exercise the right to continue life insurance coverage only if the participant mails to the insurance company written notice of the participant's intention to continue the coverage. The written notice must be postmarked no later than the 60th day after the effective date of the company's termination of participation in the plan. However, an insurance company may increase the 60-day time limit for a participant or for all participants.(F) When a participant elects to continue life insurance coverage, the insurance company with which coverage is continuing may not:(i) refuse to continue the life insurance;(ii) require a postponement or an interruption in coverage for any length of time;(iii) require the participant to provide evidence of insurability;(iv) require the participant to apply for coverage;(v) require the participant to select a different life insurance product from the product in which the participant's deferrals and investment income were invested before the company's participation in the plan terminated;(vi) discriminate in any manner against the participant because of the company's termination of its participation in the plan;(vii) treat the participant differently than the company would treat a non-participant with the same life insurance coverage; or(viii) increase the premiums charged to the participant solely because the company terminated its participation in the plan or because the participant elected to continue coverage.(G) A prior plan vendor must inform the participant in the written notice required by paragraph (1) of this subsection that the participant has the rights specified in this paragraph. A prior plan vendor must send a copy of this notice to the plan administrator.(H) If a prior plan vendor does not comply with subparagraph (G) of this paragraph, then a participant may exercise the right to continue insurance up to the 120th day after the prior plan vendor actually mails written notice to the participant, containing a full explanation of the participant's rights.(g) Inactive prior plan vendors. The plan administrator shall terminate the participation in the plan of an inactive prior plan vendor. See §87.1 of this title (relating to Definitions).(h) Refusal to accept additional deferrals.(1) A prior plan vendor may not refuse to accept additional deferrals to any or all its qualified investment products, even if the refusal would be temporary.(2) If a prior plan vendor refuses to accept additional deferrals to all its qualified investment products, the plan administrator shall terminate the prior plan vendor's participation in the plan.(3) If a prior plan vendor refuses to accept additional deferrals to fewer than all its qualified investment products, the plan administrator shall terminate the participation in the plan of the qualified investment products that are not accepting additional deferrals.(i) Collateralization by banks.(1) This subsection applies only to prior plan vendors that are banks.(2) In this subsection, the term \"deferred compensation information\" means the cumulative total of all deferrals on deposit with the prior plan vendor as of the end of the previous month.(3) At the plan administrator's discretion, the plan administrator may require a prior plan vendor to report deferred compensation information and additional information to the data collection center no later than 1:00 p.m., central time, on a call-in day that the plan administrator considers necessary to evaluate the collateralization requirement under this subsection.(4) Once each quarter, a prior plan vendor shall furnish to the plan administrator the following information certified by its chief financial officer:(A) its current capital category as defined in the Prompt Corrective Action regulations, 12 Code of Federal Regulations, Part 325, Subpart B, i.e., well capitalized, adequately capitalized, etc.;(B) its total capital to risk-weighted assets ratio as defined in the applicable FDIC regulations;(C) its Tier 1 capital to total book assets ratio as defined in the applicable FDIC regulations;(D) its Tier 1 capital to risk-weighted ratio;(E) its most recent call report and/or other financial report that can be used to substantiate subparagraphs (A) - (D) of this paragraph; and(F) if applicable, evidence of a waiver from the FDIC that permits the prior plan vendor to accept brokered deposits.(5) A prior plan vendor shall immediately notify the plan administrator if the prior plan vendor's capital category changes before its next call report or if its waiver from the FDIC with regard to brokered deposits expires, is revoked, or materially changes.(6) A prior plan vendor must collateralize deferrals and investment income as required by the plan administrator. If a monthly report indicates that a prior plan vendor will lose or has lost FDIC pass-through insurance, the prior plan vendor shall immediately pledge additional collateral and comply with the directives of the plan administrator. The plan administrator may suspend or expel an under-collateralized prior plan vendor in accordance with §87.21(a)(8) of this title (relating to Remedies).(7) A prior plan vendor may not require a participant to withdraw some or all of the participant's deferrals and investment income so that the prior plan vendor may avoid the collateralization requirements imposed by the plan administrator. A prior plan vendor may not establish a maximum amount of deferrals that a participant may invest in the vendor's qualified investment products.(8) Notwithstanding a prior plan vendor's reinvestment of deferrals and investment income in investment products offered by the prior plan vendor's trust department or by other prior plan vendors, the deferrals and investment income are deemed invested in the vendor's qualified investment products for the purpose of this subsection.(9) The plan administrator, in its discretion, may immediately transfer under-collateralized funds plus any amount reasonably necessary to prevent future under-collateralization. The transfer shall be carried out in accordance with the procedures set forth in §87.15 of this title. The prior plan vendor may not charge the participant a fee or penalty due to a withdrawal of under-collateralized funds.(j) Collateralization by savings and loan associations.(1) This subsection applies only to a prior plan vendor that is a savings and loan association.(2) In this subsection, the term \"deferred compensation information\" means:(A) the amount by which the balance of each account as of the end of the previous month exceeds the amount insured by the FDIC; and(B) the number of accounts whose balances exceed the amount insured by the FDIC.(3) At the plan administrator's discretion, the plan administrator may require a prior plan vendor to report deferred compensation information and additional information to the data collection center no later than 1 p.m., central time, on a call-in day that the plan administrator considers necessary to evaluate the collateralization requirement under this subsection.(4) Once each quarter, a prior plan vendor shall furnish to the plan administrator the following information certified by its chief financial officer:(A) its current capital category as defined in the Prompt Corrective Action regulations, 12 Code of Federal Regulations, Part 325, Subpart B, i.e., well-capitalized, adequately capitalized, etc.;(B) its total capital to risk-weighted assets ratio as defined in the applicable FDIC regulations;(C) its Tier 1 capital to total book assets ratio as defined in the applicable FDIC regulations;(D) its Tier 1 capital to risk-weighted ratio;(E) its most recent call report and/or other financial report that can be used to substantiate subparagraphs (A) - (D) of this paragraph; and(F) if applicable, evidence of a waiver from the FDIC that permits the prior plan vendor to accept brokered deposits.(5) A prior plan vendor shall immediately notify the plan administrator if the prior plan vendor's capital category changes before its next call report or if its waiver from the FDIC with regard to brokered deposits expires, is revoked, or materially changes.(6) A prior plan vendor must collateralize deferrals and investment income as required by the plan administrator. If a monthly report indicates that a prior plan vendor will lose or has lost FDIC pass-through insurance, the prior plan vendor shall immediately pledge additional collateral and comply with the directives of the plan administrator. The plan administrator may suspend or expel an under-collateralized prior plan vendor in accordance with §87.21(a)(8) of this title (relating to Remedies).(7) A prior plan vendor may not require a participant to withdraw some or all of the participant's deferrals and investment income so that the prior plan vendor may avoid the collateralization requirements imposed by the plan administrator. A prior plan vendor may not establish a maximum amount of deferrals that a participant may invest in the vendor's qualified investment products.(8) Notwithstanding a prior plan vendor's reinvestment of deferrals and investment income in investment products offered by the prior plan vendor's trust department or by other vendors, the deferrals and investment income are deemed invested in the vendor's qualified investment products for the purpose of this subsection.(9) The plan administrator, in its discretion, may immediately transfer under-collateralized funds plus any amount reasonably necessary to prevent future under-collateralization. The transfer shall be carried out in accordance with the procedures set forth in §87.15 of this title. The prior plan vendor may not charge the participant a fee or penalty due to a withdrawal of under-collateralized funds.(k) Limits on account balances in credit unions.(1) This subsection applies only to a qualified vendor that is a credit union.(2) A prior plan vendor may not accept deferrals to an account if the deferrals would cause the balance of the account to exceed $250,000 (as amended), the amount insured by the National Credit Union Administration and National Credit Union Share Insurance Fund unless the vendor or participant has complied with paragraph (6) of this subsection.(3) In this subsection, the term \"deferred compensation information\" means:(A) the amount by which the balance of each account as of the end of the previous month exceeds $250,000 (as amended);(B) the qualified investment product in which the participant's future deferrals will be invested, in lieu of investing them in the credit union's qualified investment products.(C) the total amount by which the balances of all reported accounts exceed $250,000 (as amended).(4) Once each month, a prior plan vendor shall report deferred compensation information to the plan administrator no later than 1 p.m., central time, on a call-in day. If a prior plan vendor has no accounts that exceed $250,000 (as amended), the prior plan vendor must report that fact to the plan administrator.(5) The plan administrator shall notify the benefits coordinator for each participant whose account exceeds $250,000 (as amended). Upon receiving the notice, the benefits coordinator shall request the participant to specify in a change agreement:(A) the qualified investment product to which at least the amount in the account in excess of $250,000 (as amended) will be moved; and(B) the qualified investment product in which the participant's future deferrals will be invested, in lieu of investing them in the credit union's qualified investment products.(6) If a participant does not want funds in excess of $250,000 (as amended) transferred from the credit union, the participant may keep funds at the credit union if:(A) the credit union will pledge collateral for all funds in excess of $250,000 (as amended) in accordance with plan administrator procedures; or(B) the participant acknowledges and accepts the liability of uninsured funds through a signed statement on forms furnished by the plan administrator.(7) If a participant does not submit a change agreement to the benefits coordinator immediately after receiving a request from the participant's benefits coordinator in accordance with paragraph (5) of this subsection and if paragraph (6) of this subsection is not complied with, the benefits coordinator shall notify the plan administrator. Upon receiving the notification, the plan administrator shall:(A) initiate a transfer of the amount in the account in excess of $250,000 (as amended) in accordance with §87.15 of this title; and(B) prohibit the participant from deferring additional amounts to the prior plan vendor's qualified investment products.(l) Audits. The plan administrator may audit or cause an audit to be performed of a current or former prior plan vendor related to the vendor's participation in the plan.(m) The plan administrator may expel a prior plan vendor that fails to maintain all requirements needed to become a prior plan vendor. Such vendor may not charge or permit to be charged a fee or penalty to participants, the plan or plan administrator for the transfers made due to expulsion.",
            "sourceNote": "Source Note: The provisions of this §87.7 adopted to be effective March 28, 1991, 16 TexReg 1560; amended to be effective January 10, 1992, 16 TexReg 7743; amended to be effective November 23, 1992, 17 TexReg 7911; amended to be effective January 1, 1994, 18 TexReg 8460; amended to be effective November 9, 1994, 19 TexReg 8617; amended to be effective September 19, 1995, 20 TexReg 6932; amended to be effective November 11, 1996, 21 TexReg 10766; amended to be effective July 10, 2000, 25 TexReg 6558; amended to be effective January 5, 2003, 27 TexReg 12370; amended to be effective September 11, 2003, 28 TexReg 7785; amended to be effective September 30, 2004, 29 TexReg9204;amendedto be effective September 14, 2006, 31 TexReg 7367; amended to be effective June 14, 2007, 32 TexReg 3357; amended to be effective December 31, 2007, 32 TexReg 10054."
        },
        {
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            "currentRecordId": "172589",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "87",
                "label": "DEFERRED COMPENSATION"
            },
            "rule": {
                "number": "§87.9",
                "label": "Investment Products"
            },
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            "ruleBody": "(a) Prohibited activity. A prior plan vendor or prior plan vendor representative may not solicit investments in an investment product after August 31, 2000.(b) New qualified investment products.(1) Notwithstanding anything to the contrary in the sections in this chapter, other than paragraph (2) of this subsection, the plan administrator may not:(A) approve an investment product as a qualified investment product; or(B) issue a product approval notice.(2) Paragraph (1)(A) and (B) of this subsection do not apply to a qualified investment product that the plan administrator approved for participation in the plan before May 7, 1990. If the plan administrator has not executed a product contract with a prior plan vendor that is sponsoring a qualified investment product, the plan administrator and the prior plan vendor shall execute a product contract no later than the 90th day after May 7, 1990. If a product contract is not executed, the plan administrator shall terminate the qualified investment product's participation in the plan.(c) Eligibility of investment products. The investment products that are eligible for approval as qualified investment products are:(1) fixed and variable rate annuities;(2) life insurance (except that new life policies may not be offered in the plan by any vendor after December 31, 1992);(3) stable value account;(4) self-directed brokerage account;(5) target date retirement funds;(6) mutual funds; and(7) money market accounts, certificates of deposit, share certificates or passbook savings accounts offered by a bank, savings and loan association, or credit union.(d) Review of investment products.(1) General requirements. The plan administrator may not issue a product approval notice concerning an investment product unless:(A) the prior plan vendor offering the investment product submits to the plan administrator the documentation and information the plan administrator requires;(B) the prior plan vendor offering the product agrees to accept both transfers to and the investment of deferrals in its product;(C) the plan administrator finds that the advertising material for the product, if any, complies with the sections in this chapter;(D) the plan administrator determines that the disclosure form for the product complies with the sections in this chapter;(E) the plan administrator finds that the investment product has a guaranteed minimum interest rate if the product has a variable interest rate;(F) the plan administrator determines that the investment product complies with §87.7(b)(5) of this title (relating to prior plan vendor participation), if the product is a mutual fund;(G) the plan administrator concludes that the inclusion of the investment product in the plan would be in the best interests of the plan; and(H) the plan administrator ascertains that the vendor has obtained the necessary approvals from the appropriate regulatory agencies.(2) Additional requirements for approving investment products offered by insurance companies. Before the plan administrator may sign a product contract, the plan administrator must:(A) obtain written confirmation from the Texas Department of Insurance that the investment product has been approved for sale in Texas;(B) determine that the amount of the investment product's premiums, payments, and benefits are not calculated with regard to the sex of the person insured or of the recipient of the benefits; and(C) determine that the investment product does not insure anyone other than a participant.(e) Product contracts.(1) The plan administrator may not sign a product contract with a prior plan vendor unless the plan administrator has already issued a product approval notice concerning the investment product that will be covered by the product contract.(2) The plan administrator may not sign a product contract that does not comply with the sections in this chapter and applicable law.(3) The plan administrator may, in its sole discretion, permit a prior plan vendor to replace, substitute, or merge an existing plan product with another product, if procedures established by the plan administrator are met.(f) Withdrawal of a qualified investment product from the plan.(1) A prior plan vendor may withdraw a qualified investment product from the plan after notifying, in writing, the plan administrator and all participants whose deferrals and investment income are invested in the qualified investment product. The prior plan vendor must ensure that the plan administrator and the participants receive the written notice no later than the 60th day before the effective date of the withdrawal.(2) A prior plan vendor may establish the effective date of a withdrawal of the vendor's qualified investment product. The prior plan vendor must clearly state the effective date in the written notice required by paragraph (1) of this subsection.(3) Notwithstanding paragraph (2) of this subsection, if a qualified investment product has a specific term, such as a three-year certificate of deposit or a 30-day passbook account, the effective date of the withdrawal may not be before the term of the product has expired for every participant unless approved by the plan administrator, the prior plan vendor must hold the participants, the plan and plan administrator harmless from any fees or penalties that may be applicable in connection with such premature termination or withdrawal. The term of a product will be deemed expired if all participants have transferred their funds to another qualified investment product.(4) After receiving notice of withdrawal, the plan administrator shall contact each affected participant to submit a prior funds transfer form for the disposition of his or her deferrals and investment income. For each participant from whom the plan administrator has not received a prior funds transfer form by the effective date of the withdrawal, the plan administrator shall initiate a transfer of all deferrals and investment income from the qualified investment product being withdrawn to the default fund in the revised plan.(5) When a prior plan vendor withdraws a qualified investment product from the plan, the vendor may not charge a fee or permit to be charged or penalty to participants, the plan or plan administrator for transfers made after the notice of withdrawal.(6) When a prior plan vendor that is an insurance company with existing life policies in the plan withdraws a life insurance product from the plan, this paragraph applies in addition to the preceding paragraphs of this subsection.(A) In this paragraph, the term \"withdrawn life insurance product\" means a life insurance product that is no longer a qualified investment product because the life insurance company offering the product has withdrawn the product from the plan.(B) A participant whose deferrals and investment income have been invested in a withdrawn life insurance product may continue life insurance coverage with the insurance company offering the product.(C) If the insurance company has a life insurance product remaining in the plan that is comparable to the withdrawn life insurance product, this paragraph applies. The insurance company shall offer continuing coverage in:(i) a qualified investment product that is comparable to the withdrawn life insurance product; and(ii) a life insurance product that is not a qualified investment product but is comparable to the withdrawn life insurance product.(D) If the insurance company does not have a life insurance product remaining in the plan that is comparable to the withdrawn life insurance product, this paragraph applies. The company must offer continuing life insurance coverage to each participant whose deferrals and investment income were invested in the withdrawn life insurance product. The insurance company shall offer continuing coverage in a life insurance product that is comparable to the withdrawn life insurance product.(E) If a participant continues life insurance coverage in a life insurance product that is not a qualified investment product, the participant must pay the premiums for the coverage directly to the insurance company. The premiums may not be paid with deferrals or investment income.(F) A participant may exercise the participant's right to continue life insurance coverage only if the participant mails to the insurance company written notice of intention to continue the coverage. The written notice must be postmarked no later than the 60th day after the effective date of the withdrawal of the life insurance product from the plan. However, an insurance company may increase the 60-day time limit for a participant or for all participants.(G) When a participant elects to continue life insurance coverage, the insurance company with which the coverage is continuing may not:(i) refuse to continue the life insurance;(ii) require a postponement or an interruption in coverage for any length of time;(iii) require the participant to provide evidence of insurability;(iv) require the participant to apply for coverage;(v) require the participant to select a different life insurance product from the withdrawn life insurance product;(vi) discriminate in any manner against the participant because of the company's withdrawal of the product;(vii) treat the participant differently than the company would treat a non-participant with the same life insurance coverage; or(viii) increase the premiums charged to the participant solely because the company withdrew a life insurance product from the plan or because the participant elected to continue coverage.(H) A prior plan vendor must inform the participant in the written notice required by paragraph (1) of this subsection that the participant has the rights specified in this paragraph.(I) If a prior plan vendor does not comply with subparagraph (H) of this paragraph, then a participant may exercise the participant's right to continue insurance up to the 120th day after the prior plan vendor actually mails written notice to the participant containing a full explanation of the participant's rights.",
            "sourceNote": "Source Note: The provisions of this §87.9 adopted to be effective March 28, 1991, 16 TexReg 1560; amended to be effective January 10, 1992, 16 TexReg 7743; amended to be effective November 23, 1992, 17 TexReg 7911; amended to be effective January 5, 1996, 20 TexReg 11022; amended to be effective November 11, 1996, 21 TexReg 10766; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective July 10, 2000, 25 TexReg 6558; amended to be effective January 5, 2003, 27 TexReg 12370; amended to be effective September 11, 2003, 28 TexReg 7785; amended to be effective September 30, 2004, 29 TexReg 9204; amended to be effective May 29, 2005, 30 TexReg 3023; amended to be effectiveDecember 31, 2007, 32 TexReg 10054; amended to be effective June 9, 2015, 40 TexReg 3575."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=126365&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "126365",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "87",
                "label": "DEFERRED COMPENSATION"
            },
            "rule": {
                "number": "§87.11",
                "label": "Advertising Material and Solicitation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=130266&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "130266",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definition. In this subsection, the term \"advertising material\" includes:(1) descriptive literature or advertisements of an investment provider or TPA representative that are published in newspapers, magazines, or other publications;(2) material an investment provider or TPA representative encloses in mailing to participants or employees;(3) scripts used in television or radio advertisements or in telephone solicitations;(4) displays on billboards and similar media;(5) scripts, displays and any other plan material used on the internet;(6) descriptive literature, sales talks, and sales aids that an investment provider or TPA uses during presentations to participants or employees on a group or individual basis;(7) all material used to solicit:(A) increased deferrals from existing participants;(B) renewals of investments in qualified investment products; or(C) transfers; and(8) material distributed by an investment provider or TPA to a participant who has invested deferrals and investment income in one or more of the qualified investment products.(b) General requirements for advertising material.(1) All advertising material must refer to the plan.(2) An investment provider or TPA may not use or authorize a vendor representative to use advertising material without the plan administrators prior written approval.(3) If an investment provider or TPA does not intend to use or authorize a vendor representative to use any advertising material, the investment provider or TPA must provide written notice of that intention to the plan administrator.(4) An investment provider or TPA representative may not use advertising material in connection with a qualified investment product until the qualified vendor offering the product has authorized the use of the material.(5) In the prior plan, advertising material may not contain information or statements that conflict with or are misleading concerning the qualified investment product being advertised and it may not state that loans are permitted.(6) An insurance company must tailor its advertising material to the plan.(7) The plan administrator may not approve advertising material used by an insurance company or by a prior plan vendor representative of an insurance company until the plan administrator has obtained the Texas Department of Insurance's written approval of the material.(8) No marketing or solicitation is allowed on prior Plan products after August 31, 2000.(c) Endorsements.(1) If a prior plan vendor receives an endorsement of one or more of its qualified investment products, the prior plan vendor shall immediately send written notice of the endorsement to the plan administrator.(2) An endorser of a qualified investment product may not use advertising material until the endorser has received the plan administrator's written approval of the material.(3) Advertising material that contains information about an endorsement must state:(A) the relationship between the prior plan vendor and the endorser; and(B) the basis for the endorsement.",
            "sourceNote": "Source Note: The provisions of this §87.11 adopted to be effective March 28, 1991, 16 TexReg 1560; amended to be effective January 10, 1992, 16 TexReg 7743; amended to be effective November 23, 1992, 17 TexReg 7911; amended to be effective November 11, 1996, 21 TexReg 10766; amended to be effective September 10, 1998, 23 TexReg 9067; amended to be effective January 5, 2003, 27 TexReg 12370; amended to be effective September 30, 2004, 29 TexReg 9204; amended to be effective September 14, 2006, 31 TexReg 7367."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=130266&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "130266",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "87",
                "label": "DEFERRED COMPENSATION"
            },
            "rule": {
                "number": "§87.13",
                "label": "Disclosure"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=120049&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "120049",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Approval of a disclosure form in prior plan.(1) A prior plan vendor may complete an annual disclosure form for each investment product in which a plan participant has an account balance. If a variable annuity product has several investment choices, the plan administrator may require all disclosures related to those investment choices. A prior plan vendor may be required by plan administrator to complete a disclosure on each investment product that has plan participant funds.(2) Upon receipt, the plan administrator shall review a disclosure form to determine whether it complies with the requirements of this section in addition to any other applicable state or federal regulatory requirements. The plan administrator must approve the disclosure form if it complies. Otherwise, the plan administrator shall disapprove the disclosure form.(3) A prior plan vendor shall submit its disclosure form to the plan administrator upon request even if the disclosure form has not changed. The disclosure form must be submitted within 30 days of the plan administrator's request.(b) Contents of disclosure forms.(1) A prior plan vendor must uniformly state on all its disclosure forms basic information common to all qualified investment products offered by the prior plan vendor and also disclose any other state or federal regulatory information required.(2) A prior plan vendor may not describe two or more qualified investment products on the same disclosure form.(3) A prior plan vendor must attach to a disclosure form any information that will not conveniently fit on the disclosure form itself. Information that a prior plan vendor may attach to a disclosure form includes schedules of payments, fees, cash values, or any other items required to be disclosed.(4) A disclosure form must contain the current interest rate and the date on which the rate could or will change. A disclosure form must include the date the fees or penalties will expire for participants, if applicable.(5) If a qualified investment product has a variable interest rate, the disclosure form for that product must contain:(A) the word \"variable\"; and(B) a blank for the prior plan vendor's representative to enter the current interest rate.(6) A prospectus must be submitted for each of those qualified investment products, (if applicable).(c) Use of disclosure forms.(1) A prior plan vendor or vendor representative must enter the fees/charges and product information on a disclosure form when a participant and the prior plan vendor or representative sign the participation agreement and/or change agreement and the disclosure form.(2) The prior plan vendor or vendor representative must enter the current interest rate and the effective date of that rate in the appropriate blanks.(3) A prior plan vendor representative fails to provide a disclosure form if the vendor or representative does not enter all the required information.(4) If a prior plan vendor representative misstates the current interest rate on a disclosure form, the plan administrator may:(A) consider the prior plan vendor or representative as having failed to provide a disclosure form; or(B) bind the prior plan vendor to the interest rate as stated on the form.(d) Life insurance products.(1) This subsection applies when an employee of a prior plan vendor or a prior plan vendor representative sells an existing replacement life insurance product to a participant.(2) The employee or representative shall deliver to the prior plan vendor offering the product and to the participant a written statement containing:(A) the specific reasons why the participant's best interests would benefit from the replacement product;(B) the exact time that will be necessary for the cash value of the replacement life product to reach the cash value of the original life product as of the date of the replacement, if applicable.(3) Before a transfer or new deferral may become effective, the written statement must be filed with the plan administrator.(4) An employee of a prior plan vendor or a prior plan vendor representative does not satisfy paragraph (2) of this subsection unless the participant signs the statement. If the participant refuses to sign the statement, then the employee or representative may not sell an existing replacement life product to the participant. The employee and representative shall permanently retain a copy of the signed written statement.",
            "sourceNote": "Source Note: The provisions of this §87.13 adopted to be effective March 28, 1991, 16 TexReg 1560; amended to be effective January 10, 1992, 16 TexReg 7743; amended to be effective November 23, 1992, 17 TexReg 7911; amended to be effective January 1, 1994, 18 TexReg 8460; amended to be effective November 9, 1994, 19 TexReg 8617; amended to be effective January 5, 1996, 20 TexReg 11022; amended to be effective November 11, 1996, 21 TexReg 10766; amended to be effective September 30, 2004, 29 TexReg 9204; amended to be effective June 14, 2007, 32 TexReg 3357."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=120049&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "120049",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "87",
                "label": "DEFERRED COMPENSATION"
            },
            "rule": {
                "number": "§87.15",
                "label": "Transfers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=134542&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "134542",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Transfers initiated by participants. A participant may initiate a transfer of all or part of the participant's deferrals and investment income at any time. The number of transfers that a participant may initiate per year is unlimited.(b) Transfers initiated by the plan administrator.(1) Generally.(A) The plan administrator may initiate a transfer of all or part of a participant's deferrals and investment income if the plan administrator determines that the transfer would be in the best interests of the plan or the participant.(B) Without limiting the plan administrator's authority to initiate a transfer as specified elsewhere in the sections in this chapter, the plan administrator may initiate a transfer of all deferrals and investment income that are invested in:(i) the qualified investment products of inactive prior plan vendors;(ii) the qualified investment products of prior plan vendors whose participation in the plan has terminated; and(iii) qualified investment products whose participation in the plan has terminated.(2) Transfers from credit unions.(A) The plan administrator shall initiate a transfer of a participant's deferrals and investment income from a credit union's qualified investment product in accordance with §87.7(k)(7) of this title (relating to prior plan vendor participation).(B) The authority to initiate a transfer under this paragraph is in addition to the authority under paragraph (1) of this subsection.(c) Value of amounts involved in a transfer initiated by the plan administrator.(1) This subsection applies only when the plan administrator initiates a transfer from a qualified investment product because the prior plan vendor sponsoring the product:(A) has become an inactive prior plan vendor; or(B) has violated a section in this chapter.(2) The prior plan vendor who offers the qualified investment product from which the transfer is being made may not charge or permit to be charged a fee or penalty to participants, the plan or plan administrator.(3) The amount involved in a transfer must be equal to the total amount of deferrals and investment income that were invested in the qualified investment product as of the date on which the plan administrator initiates the transfer.(4) Notwithstanding paragraph (3) of this subsection:(A) an insurance company may deduct from the amount involved in a transfer the actual cost of insuring the participant whose deferrals and investment income are being moved. The period of insurance coverage that may be considered while calculating the actual cost of insuring the participant:(i) starts on the day on which the deferrals and investment income were invested in the product; and(ii) ends on the day on which the plan administrator initiates the transfer; and(B) the amount involved in a transfer from a mutual fund must be equal to the current market value of the deferrals and investment income as defined in §87.19(a)(2) of this title (relating to reporting and recordkeeping by prior plan vendors) without considering the deduction of any fees.(5) This subsection prevails over a conflicting provision in a vendor contract, product contract, disclosure agreement, or any other document.(d) Procedures for making a transfer of all deferrals and investment income from a qualified investment product.(1) This subsection applies when the plan administrator initiates a transfer of all deferrals and investment income of every participant from a qualified investment product.(2) The plan administrator shall send a written notice to the prior plan vendor who is sponsoring the qualified investment product. The notice must require the prior plan vendor to:(A) immediately issue a check or cause a wire-transfer to be made in a lump-sum amount equal to the deferrals and investment income being moved or the plan administrator may choose:(i) to not immediately exercise the requirement of paragraph (2)(A) of this subsection if it is in the best interest of participants; or(ii) to request the vendor to issue separate checks or cause separate wire transfers in behalf of each affected participant; and(B) promptly send a list to the plan administrator containing:(i) the name of each participant whose deferrals and investment income were moved;(ii) the amount of the deferrals and investment income that was moved, on a participant-by-participant basis;(iii) the social security number of each affected participant;(iv) the name of the employing state agency of each affected participant;(v) date of birth;(vi) participant's address; and(vii) distribution status and frequency.(3) If a check is used to make a plan-to-plan transfer in the prior or revised plan, this paragraph applies.(A) The plan administrator, in its discretion, may direct the prior plan vendor to make the check payable to the payee specified by the plan administrator, which may be the revised plan or an eligible plan in the case of a plan-to-plan transfer. An eligible post-severance plan-to-plan transfer may include a transfer to another eligible governmental plan. If the plan administrator directs the prior plan vendor to send funds directly to the revised plan, the plan administrator shall provide instructions concerning the investment of the amounts transferred. The plan administrator or TPA may require such documentation as is satisfactory to the plan administrator or TPA, as either deems necessary, to effectuate the transfer in accordance with §457(e)(10) of the Code and §1.457-10(b) of the Income Tax Regulations. The TPA or plan administrator shall confirm that the other plan is an eligible governmental defined benefit plan as defined in §1.457-2(f) of the Income Tax Regulations. If the specified payee is another prior plan vendor, the prior plan vendor shall promptly deposit the check into the applicable account previously agreed upon. The prior plan vendor shall use its best efforts to ensure that the plan administrator or the specified payee receives the check no later than the 15th day after the prior plan vendor receives notification of the transfer. The amount so transferred shall be credited to the participant's account balance and shall be held, accounted for, administered and otherwise treated in the same manner as a deferral by the participant under the plan, except that the transferred amount shall not be considered an annual deferral under the plan in determining the maximum deferral.(B) If the check is sent to the plan administrator, the plan administrator must endorse the check and deposit the check with the TPA selected by the plan administrator.(C) Upon receiving verification of a completed transfer from the qualified vendor selected by the plan administrator, and receiving a list of affected participants from the prior plan vendor, the plan administrator shall notify each affected participant concerning the transfers.(4) If a wire-transfer is used to make a transfer, this paragraph applies.(A) The prior plan vendor must ensure that the TPA selected by the plan administrator to hold these funds receives the wire-transfer within 48 hours.(B) The TPA selected by the plan administrator shall promptly deposit the wire-transfer into the applicable account previously agreed upon, and notify the plan administrator concerning the deposit.(C) The receiving TPA or prior plan vendor shall acknowledge receipt of the deferrals and investment income in the manner required by the plan administrator.(D) Upon approval of the plan administrator, the prior plan vendor transferring funds may cause a wire transfer to be made in lieu of issuing a check:(i) if the prior plan vendor sending funds complies with procedures specified by the plan administrator;(ii) the prior plan vendor receiving funds is approved by the plan administrator to accept a wire transfer of funds; and(iii) the prior plan vendor receiving funds complies with procedures specified by the plan administrator.(5) If a participant initiates a transfer, this paragraph applies.(A) A participant may initiate a transfer of the participant's deferrals and investment income through the execution of a prior funds transfer form in accordance with §87.5(h) of this title (relating to Participation by Employees).(B) After receiving a completed Prior Funds Transfer form, the plan administrator shall notify the TPA.(C) The plan administrator, in its discretion, may direct the prior plan vendor to make the check payable to the payee specified by the plan administrator, which may be the TPA or an eligible plan in the case of a plan-to-plan transfer. An eligible plan-to-plan post-severance transfer may include a transfer to another eligible governmental plan. If the plan administrator directs the prior plan vendor to send funds directly to the TPA, the plan administrator shall provide instructions concerning the investment of the amounts transferred. If the specified payee is the TPA, they shall promptly deposit the check into the applicable account previously agreed upon. The prior plan vendor shall use its best efforts to ensure that the plan administrator or the specified payee receives the check no later than the 15th day after the prior plan vendor receives notification of the transfer.(D) If the check is sent to the plan administrator, the plan administrator shall:(i) endorse the check in favor of the TPA that will be receiving the transfer; and(ii) mail to the TPA that will be receiving the transfer the endorsed check and written instructions concerning the investment of the amounts transferred.(E) The TPA must send written confirmation to the plan administrator concerning the TPA's receipt of the transferred funds and written instructions. The TPA must ensure that the plan administrator receives the written confirmation no later than the 15th day after the TPA receives the transferred funds and instructions.(F) Upon approval of the plan administrator, the vendor transferring funds may cause a wire transfer to be made in lieu of issuing a check:(i) if the prior plan vendor sending funds complies with procedures specified by the plan administrator;(ii) the prior plan vendor receiving funds is approved by the plan administrator to accept a wire transfer of funds; and(iii) the prior plan vendor receiving funds complies with procedures specified by the plan administrator.(e) Resolving transfer-related problems. A prior plan vendor shall use its best efforts, exercise good faith and reasonable diligence in resolving all transfer-related administrative problems with the plan administrator or participant within a reasonable length of time, not to exceed 30 days, after receiving a transfer notification. The plan administrator may not complete any forms provided by a prior plan vendor in connection with a transfer.(f) Transfers into life insurance products.(1) The only transfer allowed into a life product is a transfer from an existing life insurance product to a life insurance product approved by the plan administrator.(2) This paragraph is effective until December 31, 1998. When a participant chooses to transfer deferrals and investment income to an existing replacement life insurance product within the same prior plan vendor, the State of Texas:(A) retains all of the incidents of ownership of the life insurance product;(B) is the sole beneficiary of the life insurance product;(C) is not required to transfer the life insurance product to the participant or the participant's beneficiary; and(D) is not required to pass through the proceeds of the product to the participant or the participant's beneficiary.(3) This paragraph is effective January 1, 1999, and thereafter. When a participant chooses to transfer deferrals and investment income to a life insurance product within the same prior plan vendor, the life insurance product shall be held in trust for the exclusive benefit of the participant and beneficiaries.(g) Telephone transfers.(1) A prior plan vendor may apply for approval to offer to participants the capability of making transfers of plan deferrals and investment earnings currently on account with that prior plan vendor from one qualified investment product or products to another qualified investment product or products within that prior plan vendor via telephone instructions given by the participant or plan administrator.(2) When a participant is in distribution, the telephone transfer option may be used; however, it must be used in accordance with §87.17(i)(6)(C) of this title (relating to Transfers).(3) The prior plan vendor and the participant must obtain approval from the plan administrator and must follow all instructions and procedures prescribed by the plan administrator.",
            "sourceNote": "Source Note: The provisions of this §87.15 adopted to be effective March 28, 1991, 16 TexReg 1560; amended to be effective January 10, 1992, 16 TexReg 7743; amended to be effective November 23, 1992, 17 TexReg 7911; amended to be effective November 9, 1994, 19 TexReg 8617; amended to be effective January 5, 1996, 20 TexReg 11022; amended to be effective November 11, 1996, 21 TexReg 10766; amended to be effective September 10, 1998, 23 TexReg 9067; amended to be effective January 10, 1999, 24 TexReg 165; amended to be effective January 5, 2003, 27 TexReg 12370; amended to be effective September 30, 2004, 29 TexReg 9204; amended to be effective May 29, 2005, 30 TexReg 3023."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=134542&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "134542",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "87",
                "label": "DEFERRED COMPENSATION"
            },
            "rule": {
                "number": "§87.17",
                "label": "Distributions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=134544&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "134544",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) In general. Upon request, the plan administrator or TPA shall authorize the distribution of a participant's deferrals and investment income in accordance with the applicable distribution agreement so long as:(1) the participant has attained age 70.5;(2) the participant has died;(3) the participant's employment with the state of Texas has terminated other than through death;(4) the participant has complied with subsection (l) of this section relating to the one-time election of distribution that does not exceed the dollar limit under Code §457(e)(9);(5) the participant elects to have any portion of his or her account balance transferred to a tax-qualified governmental defined benefit plan (as defined in §414(d) of the Code) in the same state or another state that provides for the acceptance of plan-to-plan transfers with respect to the participant; or(6) the participant elects a transfer to be made if the transfer is either for the purchase of permissible service credit (as defined in §415(n)(3) of the Code and as amended by the Pension Protection Act of 2006) under the receiving governmental defined benefit plan, or if the transfer is for a repayment to which §415 of the Code does not apply by reason of §415(k)(3) of the Code.(b) Definitions.(1) In subsections (m) - (o) of this section, the term \"participant's deferrals and investment income\" means the cash value of the participant's deferrals and investment income after considering all surrender charges, costs of insurance, forfeitures, and other similar charges.(2) In this section, a beneficiary or secondary beneficiary \"survives\" another person only if the beneficiary or secondary beneficiary is alive on the day after the person's death.(c) Content of a distribution agreement.(1) A distribution agreement must contain but shall not be limited to:(A) identifying information concerning the participant, including the date of birth and social security number of the participant;(B) the name of the prior plan vendor or revised plan vendor covered by the agreement;(C) the type of qualified investment product from which distributions will be made, including policy/certificate/or account number;(D) the date on which the participant separated from service, attained age 70.5, or died, whichever is applicable;(E) the beginning date of the distributions;(F) the type of distribution;(G) the amount to be distributed during each time period or the method for calculating the amount to be distributed during each time period; and(H) beneficiary information, including date of birth(s) and social security number(s).(2) The person filing the distribution agreement must attach a properly executed Form W-4P to the agreement.(3) A distribution agreement must be consistent with the distribution options available for the qualified investment product covered by the agreement. The prior plan vendor agent/representative signature on the distribution agreement signifies that the distribution option is available and can be implemented as requested.(d) Commencement of distributions. Notwithstanding anything in a distribution agreement:(1) the earliest a participant or beneficiary may begin receiving a distribution is the 51st day after the occurrence that entitles the participant or beneficiary to the distribution, except this paragraph does not apply to an emergency withdrawal or a one-time election distribution; and(2) A participant must begin receiving a distribution by the later of:(A) April 1st of the year following the calendar year in which the participant attains age 70.5; or(B) April 1st of the year following the year in which the participant retires or otherwise has a separation from employment.(e) Filing of distribution agreements by participants.(1) This subsection applies when a participant becomes entitled to a distribution because:(A) the participant has attained age 70.5; or(B) the participant's employment with the state of Texas has terminated other than through death.(2) A participant must file a single distribution agreement for all qualified investment products in which the participant's deferrals are invested.(3) Notwithstanding anything to the contrary in this subsection, a participant who has not separated from service and who has reached age 70.5 may file a distribution agreement if the participant wants to begin distributions. If distributions commence in the calendar year following the later of the calendar year in which the participant attains age 70.5 or the calendar year in which the separation from employment occurs, the distribution must be equal to the annual installment payment for the year, determined under the Uniform Lifetime Table of the Income Tax Regulations for the participant's age regarding types of distributions. This must also be paid before the end of the calendar year of commencement of distributions.(4) Notwithstanding any other plan provision, amounts deferred by a former participant of the plan not yet payable or made available to such participant may be transferred to another eligible plan of which the former participant has become a participant, if:(A) the plan receiving such amounts provides for its acceptance; and(B) a participant separates from service with the participant's agency and accepts employment with another entity maintaining an eligible deferred compensation plan.(5) A participant or a beneficiary of a participant who previously filed an irrevocable distribution election under the prior plan or under the revised plan may change that distribution election or cancel that distribution election by notifying the plan administrator. Such notification must be in writing on a distribution agreement form and received by the plan administrator at least 30 days prior to the scheduled distribution date.(6) A participant may request a trustee-to-trustee transfer of assets from the prior plan or the revised plan to a governmental defined benefit plan in the same state or another state for the purchase of permissible service credit (as defined in the Code §414(d) and (p) and Code §415(n)(3)(A), as amended by the Pension Protection Act of 2006) under such plan or a repayment to which Code §415 does not apply by reason of subsection (k)(3) thereof. The participant may elect to have any portion of the account balance transferred to a governmental defined benefit plan.(7) Upon receipt of a certified copy of a qualified domestic relations order, a certified copy of a judgment, decree or order (including approval of a property settlement agreement) that relates to the provision of child support, alimony payments, or the marital property rights of a spouse or former spouse, child, alternate payee, or other dependent of a participant, and same is made pursuant to the domestic relations law of any state, then the amount of the participant's account balance shall be paid in the manner and to the person or persons so directed in the domestic relations order. Such payment shall be made without regard to whether the participant is eligible for a distribution of benefits under the plan. The plan administrator or TPA shall establish reasonable procedures for determining the status of any such decree or order and for effectuating distribution pursuant to the domestic relations order. (§414(p) of the Code and §1.457-10(c) of the Income Tax Regulations).(8) At a participant's, surviving spouse's, or beneficiary(s) request, the plan administrator may process a trustee-to-trustee transfer of an eligible rollover distribution upon receipt of appropriate instructions from the receiving plan. If a beneficiary is a non-spouse, the non-spouse may request a rollover to an inherited IRA.(f) Minimum distributions during the life of a participant.(1) This subsection applies to distributions to a participant during the life of the participant, notwithstanding anything to the contrary in the participant's distribution agreement.(2) The amount distributed to the participant must be calculated so that the distributions:(A) will be distributed over a period not exceeding the life expectancy of the participant as set forth in the Uniform Lifetime Table of the Income Tax Regulations for the participant's age on the participant's birthday for that year or the life expectancy of the participant and the participant's named beneficiary;(B) will satisfy the minimum distribution requirements of the Code §457(d)(2), §401(a)(9), and associated statutes and regulations; and(C) For the purpose of paragraph (2) of this subsection, life expectancies may not be recalculated annually. For any year, the participant can elect distribution of a greater amount not to exceed the amount of the remaining account balance in lieu of the amount calculated using this formula.(3) The plan administrator shall reject a proposed distribution agreement that does not comply with paragraph (2) of this subsection. The plan administrator shall require the amendment of an existing distribution agreement that does not comply with paragraph (2) of this subsection.(g) Review of distribution agreements by the plan administrator. The plan administrator shall review each distribution agreement received to ensure that:(1) a distribution would be in compliance with the sections in this chapter; and(2) the minimum distribution requirements of this section have been satisfied.(h) Amendments of distribution agreements.(1) Beginning date for a distribution. The beginning date for a distribution may be deferred or cancelled, and the amended distribution agreement must be received by the plan administrator no later than the 30th day before the original distribution begin date.(2) Frequency of distribution. The frequency of a distribution may be amended if the plan administrator receives an amended distribution agreement no later than the 30th day before the next scheduled distribution.(3) Amount of distribution. The amount to be distributed during each time period may be amended only if the plan administrator receives an amended distribution agreement no later than the 30th day before the next scheduled distribution.(4) Beneficiaries.(A) The primary and secondary beneficiaries named in a distribution agreement may be changed at anytime by filing a change agreement with the benefits coordinator of the state agency at which the participant was employed or by submitting a beneficiary designation form directly with the TPA, for the revised plan.(B) Upon receipt of the change agreement, the benefits coordinator shall send a copy of the agreement to the plan administrator.(C) The change agreement is effective upon receipt by the plan administrator.(5) Unforeseeable emergency distribution. Notwithstanding anything to the contrary in this subsection, a distribution agreement may be amended to relieve a severe financial hardship caused by an unforeseeable emergency.(6) Procedures for amending a distribution agreement.(A) A participant or beneficiary who wants to amend the participant's distribution agreement must file an amended distribution agreement with the plan administrator.(B) Upon receipt of the amended distribution agreement, the plan administrator; shall promptly review the agreement for compliance with the sections in this chapter.(C) If the amended distribution agreement does not comply with the sections in this chapter, the agreement will be returned to the participant or beneficiary for corrections.(D) After the plan administrator receives a signed distribution agreement, the plan administrator and the prior plan vendor or TPA covered by the agreement shall take the steps specified in subsections (h) and (j) of this section.(7) Effective date of amended distribution agreements is no later than 30 days after the plan administrator receives the form. An amended distribution agreement is effective with the next distribution.(i) Procedure for making distributions.(1) Upon receiving a letter of authorization, the prior plan vendor or TPA shall issue checks payable to the participant or beneficiary and mail the checks as instructed in the letter of authorization.(2) The plan administrator may not complete any forms provided by a prior plan vendor in connection with a distribution. A prior plan vendor may not require the plan administrator to submit periodic letters of authorization beyond the initial letter of authorization unless the plan administrator has agreed in writing. A prior plan vendor may not impose any requirements as a prerequisite to a distribution that are not specifically mentioned in the sections in this chapter.(3) The plan administrator shall provide each prior plan vendor with the names and signatures of the individuals who are authorized to sign letters of authorization.(4) A prior plan vendor shall confirm each letter of authorization as instructed in the letter.(j) Unforeseeable emergency distribution.(1) The participant must request the unforeseeable emergency withdrawal by filing a completed emergency hardship withdrawal application with the plan administrator or TPA. An emergency hardship withdrawal application must show that the prerequisites for making an unforeseeable emergency withdrawal have been fulfilled.(2) The plan administrator shall approve the unforeseeable emergency withdrawal if the plan administrator determines, based on a representation from the participant in a form prescribed by the plan administrator or TPA, that:(A) an unforeseeable emergency has occurred;(B) the severe financial hardship cannot be relieved:(i) through reimbursement or compensation by insurance or otherwise;(ii) by liquidating the assets of the participant to the extent the liquidation of the assets would not itself cause severe financial hardship;(iii) by cessation of deferrals under the plan;(iv) by other distributions or nontaxable loans from the Plan or any other qualified retirement plan, or by borrowing from commercial sources on reasonable commercial terms; or(v) through a combination of the actions specified in clauses (i) - (iii) of this subparagraph; and(C) the unforeseeable emergency withdrawal would satisfy the federal regulations for unforeseeable emergency withdrawals under the Code §457.(3) If the plan administrator or TPA approves an unforeseeable emergency withdrawal, the plan administrator shall determine the amount of the withdrawal. The amount may not exceed the amount reasonably needed to overcome the severe financial hardship, after considering the federal income tax liability resulting from the withdrawal.(4) The term \"unforeseeable emergency\" means a severe financial hardship to a participant or participant's beneficiary caused by:(A) a sudden and unexpected illness or accident of a participant or of a participant's dependent (as defined in the Code §457, §152(a), and the Working Families Tax Relief Act of 2004;(B) the loss of the property of a participant or participant's beneficiary because of a casualty (including the need to rebuild a home following damage to a home not otherwise covered by homeowner's insurance, as a result of a natural disaster); or(C) a similar extraordinary and unforeseeable circumstance arising from events beyond the control of a participant, which includes the prevention of imminent foreclosure or eviction from a participant's or beneficiary's primary residence, funeral expenses of participant's dependents (as defined in §152(a) of the Code and the Working Families Tax Relief Act of 2004), and payment of non-reimbursed medically necessary expenses, which includes non-refundable deductibles, as well as the cost of prescription drug medications.(5) The term \"unforeseeable emergency\" excludes:(A) the necessity to send a child to college;(B) the purchase of a home;(C) such emergency that is or may be relieved through:(i) reimbursement or compensation from insurance or otherwise;(ii) liquidation of the participant's assets, to the extent the liquidation would not itself cause severe financial hardship;(iii) cessation of deferrals under the plan;(iv) other distributions or nontaxable loans from the Plan or any other qualified retirement plan, or by borrowing from commercial sources on reasonable commercial terms; or(v) through a combination of the actions specified in clauses (i) - (iv) of this subparagraph.(D) other similar circumstances.(6) The plan administrator may rely on the information and certification provided by a participant in connection with the participant's request for an emergency withdrawal. The participant is solely responsible for the sufficiency, accuracy, and veracity of the information.(7) If the plan administrator denies a participant's request for an emergency withdrawal or if the participant disagrees with the amount of the approved emergency withdrawal, the participant may appeal to the Employees Retirement System of Texas in accordance with §87.23 of this title (relating to the Grievance Procedure).(8) When submitting a request for an emergency withdrawal, the participant must certify, in a form prescribed by the plan administrator, that the severe financial hardship cannot be relieved by cessation of deferrals under the plan, as well as other means set forth in paragraph (2)(B)(i)-(v) of this subsection.(9) The plan administrator may approve an emergency withdrawal request from a primary or secondary beneficiary.(10) The plan administrator may not exceed the amount reasonably necessary to satisfy the emergency need (which may include any amounts necessary to pay any federal, state or local income taxes or penalties reasonably anticipated to result from the distribution).(k) A participant may elect to receive a one-time distribution of the total account balance if:(1) such amount does not exceed the $5000 dollar limit under Code §457, §457(e)(9), or the dollar limit under Code §411(a)(11) if greater as of the date that payments commence or on the date of the participant's death. In such event, payment shall be made to the participant (or to the beneficiary if the participant is deceased) in a lump sum equal to the participant's account balance;(2) no amount has been deferred under the plan with respect to such participant during the two-year period ending on the date of the distribution;(3) there has been no prior distribution under the plan to such participant to which this subsection applied; and(4) a one-time election form is completed and submitted to the plan administrator through the participant's state benefits coordinator.(l) Naming of beneficiaries. When a participant or beneficiary files a distribution agreement, the participant or beneficiary may name one or more primary and secondary beneficiaries. The naming of beneficiaries in a distribution agreement supersedes any previous naming of beneficiaries in a participation agreement or change agreement.(m) Death of a participant when the participant has named a beneficiary.(1) This subsection applies only if a participant has named a beneficiary in a participation agreement, change agreement, beneficiary designation form or distribution agreement.(2) The plan administrator shall order a distribution to a primary beneficiary if the beneficiary:(A) survives the participant; and(B) is alive on the date of the order.(3) The plan administrator shall order a distribution to a secondary beneficiary if:(A) the secondary beneficiary survives the participant;(B) the secondary beneficiary is alive on the date of the order; and(C) no primary beneficiaries survive the participant.(4) The plan administrator shall order a distribution in accordance with subsection (p) of this section if a primary or secondary beneficiary survives the participant but is not alive on the date of the order.(5) This paragraph applies if a participant designates more than one primary beneficiary and more than one primary beneficiary survives the participant. The plan administrator shall order the distribution of the participant's deferrals and investment income to the surviving primary beneficiaries in equal shares unless the distribution agreement provides otherwise. The estates and heirs of the primary beneficiaries who did not survive the participant and the surviving secondary beneficiaries, if any, may not receive any benefits.(6) This paragraph applies if a participant designates more than one secondary beneficiary, more than one secondary beneficiary survives the participant, and no primary beneficiary survives the participant. The plan administrator shall order the distribution of the participant's deferrals and investment income to the surviving secondary beneficiaries in equal shares unless the distribution agreement provides otherwise. The estates and heirs of the primary and secondary beneficiaries who did not survive the participant may not receive any benefits.(7) The plan administrator shall order the lump-sum payment to the participant's estate of the balance of the participant's deferrals and investment income if:(A) the participant named a primary and a secondary beneficiary but neither survived the participant; or(B) the participant named a primary beneficiary but did not name a secondary beneficiary and the primary beneficiary did not survive the participant.(8) The plan administrator shall order the lump-sum distribution of a participant's deferrals and investment income to the person entitled to receive the distribution if the person is alive on the date of the order and the person files a distribution agreement requesting a lump-sum distribution.(9) When the plan administrator orders a distribution to a primary or secondary beneficiary, the plan administrator's order must be in accordance with the beneficiary's distribution agreement so long as the agreement complies with the sections in this chapter.(10) This paragraph applies when the plan administrator orders other than a lump-sum distribution to a primary or secondary beneficiary and distributions to the participant did not begin before the participant's death. For distributions to a surviving spouse, any distribution made before the calendar year in which the participant would have attained age 70.5 is not a required minimum distribution. For the calendar year in which the participant would have attained age 70.5 or any later year, the amount of the minimum annual distribution payment may be treated as the amount of the required minimum distribution. Notwithstanding a primary or secondary beneficiary's distribution agreement, the amount distributed must be calculated so that the distributions:(A) will begin no later than December 31 in the year that the participant would have attained age 70.5 or December 31 of the year following the participant's death, whichever is later for a spousal beneficiary; or(B) December 31 of the year following the participant's death and entire amount must be distributed by the end of the fifth year following the year of participant's death for non-spousal beneficiary.(C) will be made over the life of the person receiving the distributions or over a period not extending beyond the life expectancy of the person (using the single life table from the Income Tax Regulations);(D) will be made in substantially non-increasing amounts;(E) will be made annually or more frequently than annually after the first distribution; and(F) will satisfy the minimum distribution requirements of the Code §457(d)(2), §401(a)(9), and associated statutes and regulations.(11) This paragraph applies when the plan administrator orders other than a lump-sum distribution to a primary or secondary beneficiary and distributions to the participant began before the participant's death. Notwithstanding a primary or secondary beneficiary's distribution agreement, the amount distributed to the primary or secondary beneficiary must be calculated so that the distributions:(A) will be made at least as rapidly as under the method of distribution selected by the participant; and(B) will satisfy the minimum distribution requirements of the Code §457(d)(2), and §401(a)(9).(12) If a participant dies before distributions to him began and the beneficiary or secondary beneficiary entitled to receive the participant's deferrals and investment income is the participant's surviving spouse, this paragraph applies.(A) Paragraph (10) of this subsection applies to the distributions to the surviving spouse except as specified in this paragraph.(B) Notwithstanding paragraph (10) of this subsection, the surviving spouse may delay the start of the receipt of the deferrals and investment income until a date not later than the date when the participant would have attained age 70.5.(C) Notwithstanding paragraph (10) of this subsection, after a distribution to the surviving spouse begins, the entire amount must be paid over a period not exceeding the spouse's life expectancy using the single life table from the Income Tax Regulations for the beneficiary's age on the beneficiary's birthday for the year that the distribution begins, reduced by one for each year that has elapsed after that year.(D) If the surviving spouse dies before distributions to the spouse begin, then the surviving spouse is a participant for the purpose of paragraph (10) of this subsection.(13) For the purpose of paragraphs (10) - (12) of this subsection, life expectancies may not be recalculated annually.(n) Death of a participant when the participant has not named a beneficiary.(1) This subsection applies only when a participant has not named a beneficiary in a participation agreement, change agreement, beneficiary designation form, or distribution agreement.(2) The plan administrator shall order the distribution to the participant's estate of the balance of the participant's deferrals and investment income.(o) Death of a beneficiary.(1) This subsection applies if:(A) a participant named a beneficiary in a participation agreement, change agreement, or distribution agreement or a beneficiary designation form;(B) the participant died;(C) the beneficiary survived the participant but has since died;(D) the plan administrator has ordered, in accordance with subsection (m) of this section, a distribution to the beneficiary or would have ordered a distribution to the beneficiary if the beneficiary had not died; and(E) the beneficiary did not receive all the participant's deferrals and investment income before the beneficiary's death.(2) If the deceased beneficiary filed a distribution agreement and the agreement names a primary beneficiary, the plan administrator shall:(A) allow the primary beneficiary to have a distribution which will be made at least as rapidly as under the method of distribution selected by the participant, and which will also satisfy the minimum distribution requirements of the Code §457(d)(2), and §401(a)(9); or(B) order a lump sum payment to the primary beneficiary's estate if the primary beneficiary survived the beneficiary who filed the distribution agreement but is not alive on the date of the order.(3) If the deceased beneficiary filed a distribution agreement and the agreement names a secondary beneficiary, the plan administrator shall order a lump-sum payment to:(A) the secondary beneficiary if:(i) the secondary beneficiary is alive on the date of the order; and(ii) no primary beneficiary survived the deceased beneficiary;(B) the secondary beneficiary's estate if:(i) the secondary beneficiary survived the deceased beneficiary;(ii) the secondary beneficiary is not alive on the date of the plan administrator's order; and(iii) no primary beneficiary survived the deceased beneficiary.(4) The lump-sum payment must be made to the estate of the deceased beneficiary if:(A) the deceased beneficiary's distribution agreement does not name a beneficiary;(B) the deceased beneficiary did not file a distribution agreement; or(C) no beneficiary named in the deceased beneficiary's distribution agreement survived the deceased beneficiary.(5) When more than one primary or secondary beneficiary of a deceased beneficiary is entitled to a lump-sum distribution, the distributions must be made in equal shares unless the deceased beneficiary's distribution agreement provides otherwise.(p) Distributions to minors and incompetents.(1) The plan administrator may authorize the payment of a distribution to a person or entity other than the participant or beneficiary otherwise entitled to receive the distribution if satisfactory evidence is presented to the plan administrator that the participant or beneficiary is:(A) a minor; or(B) has been adjudicated by a court of law as mentally incompetent and unable to provide a valid release, receipt and discharge for the payment or is deemed so by the plan administrator.(2) If the conditions of the preceding paragraph are satisfied, the plan administrator shall make the distribution payable to the guardian of the participant or beneficiary. Such payments shall be considered a payment to such participant or beneficiary, and shall, to the extent made, be deemed a complete discharge of any liability of the Plan, state of Texas, plan administrator and TPA for all payments required under the plan.(3) If no guardian has been appointed and after having obtained a proper release, the plan administrator shall make the distribution payable to:(A) the person or entity maintaining custody of the participant or beneficiary;(B) the custodian of the participant or beneficiary under the Texas Uniform Gifts to Minors Act (Texas Property Code, §§141.002 et seq.) if the participant or beneficiary resides in the state of Texas;(C) the custodian of the participant or beneficiary under a law similar to the Texas Uniform Gifts to Minors Act if the participant or beneficiary resides outside the state of Texas; or(D) the court of law with jurisdiction over the participant or beneficiary.(q) Distributions to missing persons.(1) This subsection applies when the plan administrator is unable to determine the location of a participant or beneficiary who is entitled to a distribution.(2) When the plan administrator does not know the location of a participant or beneficiary, the benefits coordinator for the participant or beneficiary must send a certified letter to the last known address of the participant or beneficiary.(3) If the certified letter does not result in the discovery of the location of the participant or beneficiary, the benefits coordinator shall inform the plan administrator and provide proof to the plan administrator that the certified letter was sent.(4) When the plan administrator does not know the location of a participant or beneficiary, the benefits coordinator, TPA or plan administrator shall make a reasonable attempt to locate the participant or beneficiary through certified mail at the last known address, through notification to the Social Security Administration, the Pension Benefit Guaranty Corporation, or other appropriate source. If the participant has not responded within six (6) months, upon receiving the notification and proof of mailing, the plan administrator may direct that all benefits due the participant or beneficiary be deposited in a qualified investment product or trust fund that the plan administrator has specifically designated for this purpose and shall continue to hold the benefits due such person.(r) Processing of distributions and emergency withdrawals. A prior plan vendor or TPA shall process distributions and emergency withdrawals and resolve administrative problems with the plan administrator within a reasonable length of time, not to exceed the 30th day after receiving a letter of authorization for distributions and not to exceed the 15th day after receiving a letter of authorization for emergency withdrawals.(s) Loans to participants. The plan administrator is authorized to implement procedures to establish a loan program for the revised plan in compliance with Code §72(p)(2). Plan loans shall be permitted only from assets deposited in the revised plan. Participants with account balances in the prior plan must transfer those balances to the revised plan in order to qualify for a plan loan. The security of the loan is a pledge. There is a non-refundable application fee for each loan. General loans are processed without any pre-loan paperwork. A participant's execution on the loan check authorizes the plan administrator to make payroll deductions from the participant's compensation (Code §1.401(a)-21(d)). The loan balance may be prepaid at any time without penalty. The maximum number of active loans available to any participant at any given time is two (2) per plan.(1) Loans made pursuant to this section (when added to the outstanding balance of all other loans made by the plan to the participant) shall be limited to the lesser of:(A) $50,000 reduced by the excess (if any) of the highest outstanding balance of loans from all plans to the participant during the one year period ending on the day before the date on which such loan is made, over the outstanding balance of loans from all plans to the participant on the date on which such loan was made; or(B) the greater of one half (1/2) of the present value of the non-forfeitable accrued benefit of the participant under the plan or $10,000.(2) Any loan may not be for an amount less than $1,000.(3) The terms of the loan shall:(A) require level amortization with payments not less frequently than monthly throughout the repayment period, except that alternative arrangements for repayment may apply in the event that the participant is on a bona fide unpaid leave of absence for military leave within the meaning of §414(u) of the Code or for the duration of a leave which is due to qualified military service;(B) require that the loan be repaid within five years unless the participant certifies in writing to the plan administrator that the loan is to be used to acquire a principal residence; and(C) provide for either a general purpose loan or a principal residence loan with rates and terms fixed for the life of the loan. Subject to change from time to time, the interest rate for repayment is one percent (1%) over the prime rate published in the Wall Street Journal on the last business day of the prior month.(4) Any loan to a participant under the plan shall be secured by the pledge of the portion of the participant's interest in the plan invested in such loan.(5) In accordance with the federal Soldiers' & Sailors' Civil Relief Act of 1940, interest will accrue during the period of suspended payments at the original loan rate or at the rate of six percent (6%), whichever is less. In no event will interest on any loan exceed the maximum rate permitted by applicable law.(6) In the event that a participant fails to make any loan payment by the last day of the calendar quarter following the calendar quarter such payment is due, a default on the loan shall occur. In the event of such default, all remaining payments on the loan shall be immediately due and payable the day following the date on which such payment was due. In the case of any loan default, the plan administrator shall apply the portion of the participant's interest in the plan held as security for the loan in satisfaction of the loan on the date of severance from employment. In addition, the plan administrator shall take any legal action it shall consider necessary or appropriate to enforce collection of the unpaid loan, and the costs of any legal proceeding or collection including, but not limited to the plan administrator's and TPA's reasonable attorneys fees, costs and prejudgment and postjudgment interest, shall be charged to the account balance of the participant. Any defaulted loans incurred will continue to accrue interest and will reduce the number of available loans. Amounts borrowed through the loan program are not taxable distributions and are not subject to federal income taxes, unless the participant defaults on the loan. If a participant retires or separates from employment, payroll deductions will stop and the loan is immediately due and payable in full. If the loan is not paid prior to the last day of the calendar quarter following the calendar quarter in which the payment was due, then the entire outstanding balance, pursuant to IRS regulations, will be considered a distribution, and the plan administrator shall report the loan to the IRS as a taxable distribution for the year that the loan defaults. Effective January 1, 2006, participants may make manual payments to pay off the loan after separating from employment. In the event a loan is outstanding or in default or both hereunder on the date of a participant's death, the participant's estate shall be the beneficiary as to the portion of participant's interest in the plan invested in such loan.(7) In accordance with Code §72 (p) and associated Treasury Regulations at §1.72(p)-1, the Plans will suspend payments for up to twelve (12) months for non-military leaves of absence if the participant is on a bona fide leave of absence and the leave is either without pay, or the participant's after-tax pay is less than the payment amount under the terms of the loan. When payments resume, payments may not be less than the amount required under the terms of the original loan. In no event may the term of the loan be extended beyond its original due date without approval of the plan administrator. Therefore, the participant must seek a revised amortization schedule and pay higher monthly payments or continue the original payment schedule and make one or more additional payments before the end of the loan term in sufficient amounts to pay the loan in full when due.(8) As a condition of the loan, a participant shall be required to enter into an irrevocable agreement authorizing the employer to make payroll deductions from his or her compensation as long as the participant is an employee and to transfer such payroll deduction to the Trustee or TPA in payment of such loan plus interest. Repayments of a loan shall be made by payroll deduction of equal amounts (comprised of both principal and interest) from pay, with the first such deduction to be made as soon as practicable after the loan funds are disbursed; provided, however:(A) that a participant may prepay the entire outstanding balance of his or her loan at any time without penalty (but may not make a partial prepayment); and(B) that if any payroll deductions cannot be made in full because a participant is on an unpaid leave of absence or is no longer employed by a participating employer (that has consented to make payroll deductions for this purpose) or the participant's paycheck is insufficient for any other reason, the participant shall pay directly to the plan the full amount that would have been deducted from the participant's paycheck, with such payment to be made by the last business day of the calendar month in which the amount would have been deducted. Such participants will repay themselves with interest through payroll deductions in equal installments over the duration of the loan. Loan repayments are deducted each pay period and posted along with contributions. Loan refinancing is not available.(t) Federal withholding and reporting requirements.(1) A prior plan vendor or TPA shall file all reports required by the Internal Revenue Service (IRS) when any deferrals and investment income are distributed or otherwise made available to a participant or beneficiary. Payments made to a participant during the participant's life must be reported as taxable wages on a Form 1099-R or another appropriate form which may be hereafter promulgated by the IRS. Pursuant to the provisions of Internal Revenue Service Revenue Ruling 86-109 (1986-2 CB 196), payments to the beneficiary of a deceased participant must be reported on IRS Form 1099-R (or another appropriate form which may be hereafter promulgated by the IRS) as taxable income of the beneficiary.(2) A prior plan vendor or TPA shall file an application for authorization to act as agent of the state of Texas, or effective January 1, 1999, the plan, with the District Director of the Internal Revenue Service Center where the prior plan vendor or TPA files its returns. The application shall include Form 2678 - Employer Appointment of Agent under §3504 of the Code, which shall be supplied by the plan administrator, and shall be completed and filed in accordance with the instructions set forth in Internal Revenue Service Publication 1271. The prior plan vendor shall promptly furnish to the plan administrator a copy of such vendor's letter of authorization from the Internal Revenue Service approving the appointment of the prior plan vendor as agent.(3) When reporting to the Internal Revenue Service, the prior plan vendor and TPA shall use the vendor's Federal Employer Identification Number and shall comply with all requirements of Revenue Procedure 70-6 as set out in Internal Revenue Service Publication 1271 and as subsequently amplified or superseded by subsequent Revenue Procedures. A prior plan vendor may not use the federal employer identification number of the plan, plan administrator, TPA, or the state of Texas. Regardless of how many qualified investment products a prior plan vendor sponsors, the vendor must use the same federal employer identification number for all reports to the Internal Revenue Service.(4) Federal tax withholding is mandatory for certain distributions to participants or beneficiaries. Distributions with a periodic payout of less than 10 years and lump sum distributions, other than required minimum distributions, are \"eligible rollover distributions\" subject to a mandatory 20 percent federal income tax withholding unless distributed in a direct rollover to an eligible retirement plan. Vendors who maintain participant account balances in the prior plan shall provide the required IRC §402(f) safe harbor notice to all 457 plan participants or their beneficiaries prior to the payment of an eligible rollover distribution. Tax notices may be provided electronically or in writing to the participant. For all distributions other than eligible rollover distributions, a prior plan vendor or TPA shall accurately determine any amounts to be withheld for federal taxes based on a Form W-4P submitted by the participant at the time of a distribution. If no Form W-4P is provided, the participant shall be taxed as \"single with no dependents.\" The Tax Equity and Fiscal Responsibility Act does not apply to a deferred compensation plan governed by the Code §457.(5) Total death benefits, including life insurance proceeds, are taxable as ordinary income to the beneficiary and must be reported on a Form 1099-R in accordance with subsection (m) of this section.(6) A prior plan vendor or TPA shall mail a copy of all reports filed with the Internal Revenue Service about a participant or beneficiary to the participant's or beneficiary's home address.(u) Notwithstanding any provisions to the contrary, the option to receive periodic distributions from a product in the \"prior plan\" by a terminated participant or beneficiary whose original distribution begins on or after October 1, 2004 is removed. Effective October 1, 2004, terminating participants and beneficiaries must transfer all funds to the revised plan, receive a lump sum distribution of their entire plan balance, or roll their entire account balance into an account outside of the prior plan.",
            "sourceNote": "Source Note: The provisions of this §87.17 adopted to be effective March 28, 1991, 16 TexReg 1560; amended to be effective January 10, 1992, 16 TexReg 7743; amended to be effective November 23, 1992, 17 TexReg 7911; amended to be effective November 9, 1994, 19 TexReg 8617; amended to be effective January 5, 1996, 20 TexReg 11022; amended to be effective November 11, 1996, 21 TexReg 10766; amended to be effective March 21, 1997, 22 TexReg 2513; amended to be effective December 8, 1997, 22 TexReg 11718; amended to be effective February 12, 1998, 23 TexReg 1113; amended to be effective September 10, 1998, 23 TexReg 9067; amended to be effective January 10, 1999, 24TexReg165;amendedtobe effectiveJanuary5, 2003, 27 TexReg 12370; amended to be effective September 11, 2003, 28 TexReg       7785; amended to be effective September 30, 2004, 29 TexReg 9204; amended to be effective May 29, 2005, 30 TexReg 3023; amended to be effective January 10, 2006, 31 TexReg 170; amended to be effective September 14, 2006, 31 TexReg 7367; amended to be effective June 14, 2007, 32 TexReg 3357; amended to be effective December 31, 2007, 32 TexReg 10054."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=134544&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "134544",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "87",
                "label": "DEFERRED COMPENSATION"
            },
            "rule": {
                "number": "§87.19",
                "label": "Reporting and Recordkeeping by Prior Plan Vendors"
            },
            "nextRule": {
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                "recordId": "117082",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definition of current market value. In this section, the term \"current market value\" has the following meanings.(1) For an investment in a qualified investment product offered by a bank, credit union, or savings and loan association, current market value means the amount of deferrals plus investment income minus withdrawals minus applicable fees.(2) For an investment in a mutual fund, current market value means the price of each share at the end of the calendar quarter multiplied by the number of shares purchased with deferrals and investment income minus applicable fees.(3) For an investment in a term life insurance product, the current market value is usually zero.(4) For an investment in a life insurance product, current market value means the cash value of the product minus applicable fees.(5) For an investment in an annuity, current market value equals the amount of deferrals plus investment income minus payouts minus applicable fees. For annuitized accounts, current market value means the present value of all remaining payments, taking into consideration the prevailing statutory interest rates pursuant to the Texas Insurance Code, Article 3.28.(b) Reports to participants or beneficiaries.(1) Generally.(A) A prior plan vendor shall issue a report after the end of each calendar quarter to each participant or beneficiary whose deferrals and investment income are invested in a qualified investment product offered by the prior plan vendor, except if the investment is in a product that is annuitized.(B) The report shall cover all transactions during a calendar quarter.(C) A prior plan vendor shall ensure that the participant or beneficiary receives the report no later than the 45th day after the end of each calendar quarter.(D) The report must show for each qualified investment product:(i) the amount of the participant's or beneficiary's deferrals and investment income in the product, including transfers;(ii) the amount of applied product costs or surrender charges;(iii) the date and amount of withdrawals during the reporting period; and(iv) the current market value of the participant's or beneficiary's deferrals and investment income.(2) Investments in life insurance products. The requirements of the preceding paragraph apply to investments of deferrals and investment income in life insurance products except:(A) the report is due at least once each calendar year instead of after each calendar quarter; and(B) the period covered by the report may be either the calendar year or the product year.(3) Final reports. If a participant or beneficiary receives a lump-sum distribution, the prior plan vendor or TPA from whom the lump-sum distribution is made shall issue a final report to the participant or beneficiary containing the information required in paragraph (1) of this subsection. The report must accompany the lump-sum distribution.(c) Capital category reports. Once each quarter, or more frequently if appropriate, a prior plan vendor which is a bank or savings and loan association shall report to the plan administrator that financial information regarding capital categories and risk-based ratios described in §87.7(i) and (j) of this title (relating to prior plan vendor participation).(d) Reports and remittance to the plan administrator.(1) Frequency and coverage of reports and payment of fees. Every vendor in the prior plan that has participant or beneficiary deferrals, and/or investment income, must ensure that the plan administrator receives a report no later than the 15th day after the end of each calendar quarter. The fiscal year end report must include transactions for July and August. Every prior plan vendor must also remit any fees assessed to it by the plan administrator, no later than the 15th day after the end of each quarter. Every vendor must ensure that the plan administrator receives a special report at the end of the fiscal year (August 31st), no later than fifteen days past fiscal year end - September 15th, in addition to the normal quarterly reporting schedule. The report must be in the format specified in this subsection and must cover all transactions during the calendar quarter.(2) Content of reports. For each participant or beneficiary whose deferrals and investment income are invested in a qualified investment product offered by the vendor, the report required by this subsection must contain but is not limited to:(A) the participant's or beneficiary's name, agency code and social security number(s);(B) a list of the qualified investment products in which the participant's or beneficiary's deferrals and investment income have been invested;(C) the amount of monthly deferrals for the reporting period separated and listed per month;(D) the interest and other income earned or lost during the reporting period through the investment of the deferrals and investment income;(E) the amount of federal income tax withheld during the reporting period;(F) the current market value of each participant's or beneficiary's deferrals and investment income in each qualified investment product, including, if appropriate, the number of shares and per share market value;(G) the amount of fees that the prior plan vendor charged during the reporting period;(H) the amount transferred in and out as a result of a change of product within a company, identified separately by each internal transfer;(I) the amount of each plan administrator directed transfer in or out; and(J) the amount of each separate net distribution to the participant or beneficiaries, except that multiple payments that fall on the same day should be combined into one account for quarterly reporting purposes.(K) a report specifying how the fees assessed to the prior plan vendor by the plan administrator were calculated and the asset base on which the fee was based.(3) Format of reports.(A) All reports must be in the format prescribed by the plan administrator and follow the DCP quarterly reporting specifications on a:(i) 5 1/4 or 3 1/2 inch high quality PC diskette;(ii) manual form; or(iii) electronic file transfer - use of file transfer protocol (FTP), via the Internet or as an attachment to an electronic mail (E-mail).(B) Only prior plan vendors with less than fifty participants are eligible to report on a manual form.(C) Before a prior plan vendor may use a medium other than a manual form to file a quarterly report with the plan administrator, the vendor must submit a written request along with an electronic transfer file, or diskette to the plan administrator. The ERS must approve and make arrangements with the prior plan vendor prior to testing the electronic file transfer. The electronic transfer file, or diskette must be in the format and contain the information prescribed by the DCP reporting specifications and contain the information that the plan administrator requires including the items listed in paragraph (d)(2)(A) - (J) of this subsection. Failure to submit data in the specified format will result in the return of the media without processing. If the plan administrator determines that the electronic transfer file or diskette is inadequate, the plan administrator shall ensure that the number of participants whose deferrals and investment income are invested at any given time in the vendor's qualified investment products does not exceed 49.(D) The product types must be defined and coded as prescribed by the plan administrator and as in the DCP quarterly reporting specifications.(E) If a participant or beneficiary has invested deferrals and investment income in two or more qualified investment products offered by the same prior plan vendor and the products are of the same type, then the prior plan vendor must report a cumulative total of those deferrals and investment income.(4) A prior plan vendor that fails to submit to the plan administrator any required report with an authorized signature or the assessed fee will be subject to formal reprimand. After two formal reprimands, a vendor may be expelled from the plan and subject to further liability as applicable.(5) Late reports and/or fee payment.(A) A report or fees are delinquent if the plan administrator receives the report and/or fees after the due date.(B) A report or fees that are received before the due date but which are returned to the vendor for completion or correction are delinquent if the plan administrator does not receive the completed or corrected version of the report or correct amount of fees within 10 days after the original due date.(e) Recordkeeping. A prior plan vendor shall retain records concerning investments in each qualified investment product by each participant. The records must be retained until the expiration of the second year after the prior plan vendor has distributed all the participant's deferrals and investment income.(f) Quarterly reconciliation. In accordance with §87.3(b)(3)(H) of this title (relating to Participation by State Agencies), a benefits coordinator may be responsible for balancing participant and beneficiary records and reconciling those records with the data provided by qualified vendors and the plan administrator. Prior plan vendors shall assist the plan administrator and state agencies with correcting and explaining any discrepancies. Failure to assist the plan administrator and state agencies with this reconciliation will be considered a rules violation, and the plan administrator may take appropriate action under §87.21 of this title (relating to Remedies).",
            "sourceNote": "Source Note: The provisions of this §87.19 adopted to be effective March 28, 1991, 16 TexReg 1560; amended to be effective January 10, 1992, 16 TexReg 7743; amended to be effective November 23, 1992, 17 TexReg 7911; amended to be effective January 1, 1994, 18 TexReg 8460; amended to be effective November 9, 1994, 19 TexReg 8617; amended to be effective January 5, 1996, 20 TexReg 11022; amended to be effective November 11, 1996, 21 TexReg 10766; amended to be effective December 8, 1997, 22 TexReg 11718; amended to be effective January 5, 2003, 27 TexReg 12370; amended to be effective September 11, 2003, 28 TexReg 7785; amended to be effective September 30,2004,29TexReg 9204; amended to be effective May 29, 2005, 30 TexReg 3023; amended to be effective September 14, 2006, 31 TexReg  7367; amended to be effective December 31, 2007, 32 TexReg 10054."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=117082&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "117082",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "87",
                "label": "DEFERRED COMPENSATION"
            },
            "rule": {
                "number": "§87.21",
                "label": "Remedies"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=98897&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "98897",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Remedies for violations of the sections in this chapter.(1) The plan administrator may cancel a product contract, change agreement, participation agreement, exercise any available remedy under applicable law, or combination of the preceding when a prior plan vendor uses methods that violate the sections in this chapter to obtain investments in the prior plan vendor's qualified investment products.(2) The plan administrator may expel a prior plan vendor from the plan or suspend its right to receive new deferrals and investment income when the prior plan vendor or revised plan vendor violates the sections in this chapter.(3) The plan administrator may prohibit an employee of a prior plan vendor or a vendor representative from further solicitation or acceptance of deferred compensation business when the employee or representative violates the sections in this chapter.(4) If a prior plan vendor does not notify the plan administrator by no later than the 30th day after a change in vendor status, the plan administrator shall expel the prior plan vendor. For the purpose of this paragraph, the term \"change in vendor status\" means the events covered by §87.7(e) of this title (relating to prior plan vendor participation).(5) The plan administrator may expel a prior plan vendor that does not file reports with and remit all fees it owes to the plan administrator for any two quarters in a 12-month period.(6) The plan administrator may expel a non-filer that files two or more reports or remits two or more fee payments to the plan administrator after the due date specified within §87.19(d)(1) of this title (relating to Reporting and Record Keeping by prior plan vendors) within a 12-month period.(7) The plan administrator may expel a prior plan vendor who fails to comply with the DCP quarterly reporting specifications and rules on reporting for any two quarters within a 12-month period.(8) The plan administrator may expel a prior plan vendor whose failure to comply with the requirements in §87.7(i) or (j) of this title (relating to prior plan vendor participation) and to §87.17 of this title (relating to Distributions) was:(A) intentional;(B) caused by a reckless disregard of the requirements;(C) due to gross negligence; or(D) due to negligence.(9) For violations not specifically mentioned in this subsection, the plan administrator may reprimand, suspend, expel, or otherwise discipline a prior plan vendor, employee of a prior plan vendor, or vendor representative.(10) The plan administrator may suspend or expel a prior plan vendor who fails to remit to the plan administrator plan fees by the due date.(11) The plan administrator may determine the effective date of an expulsion, termination, prohibition, or cancellation when the plan administrator:(A) expels a prior plan vendor or terminates a prior plan vendor's participation in the plan;(B) prohibits a vendor representative or an employee of a prior plan vendor from further solicitation or acceptance of deferred compensation business; or(C) cancels a product contract, change agreement, participation agreement, or combination of the preceding.(12) When the plan administrator suspends a prior plan vendor's participation in the plan, the plan administrator may determine the effective date and termination date of the suspension.(b) Transfers from prior plan vendors that violate the sections in this chapter.(1) If the plan administrator expels a prior plan vendor from the plan, the plan administrator shall initiate a transfer of all deferrals and investment income from the prior plan vendor in accordance with §87.15(c) and (d) of this title (relating to Transfers).(2) If the plan administrator cancels a product contract, change agreement, participation agreement, or combination of the preceding, the plan administrator shall take the action specified in paragraph (1) of this subsection except the transfers must be limited to the deferrals and investment income governed by the contracts or agreements.(3) If the plan administrator suspends a prior plan vendor from participation in the plan, the plan administrator may take the actions specified in paragraph (1) of this subsection. Whether the plan administrator takes those actions or not, the prior plan vendor shall continue to file the reports and pay fees required by the sections in this chapter. The plan administrator shall order the expulsion of a suspended vendor that does not file the required reports or pay the required fees.(4) If a prior plan vendor is expelled from the plan, the prior plan vendor may not apply for reinstatement in the plan.(5) If the plan administrator suspends a prior plan vendor, an employee of a prior plan vendor, or a vendor representative, the suspension shall last for at least 24 months after the effective date of the suspension.(6) If the plan administrator expels a prior plan vendor for violating the provisions of this chapter, the expelled vendor may not charge or permit to be charged a fee or penalty to participants, the plan or plan administrator for transfers made after the notice of termination.(c) Continuation of life insurance coverage.(1) This subsection applies when the plan administrator terminates the participation in the plan of a life insurance company or life insurance product.(2) In this subsection, the term \"terminated life insurance product\" means a life insurance product that is no longer a qualified investment product because of a termination specified in paragraph (1) of this subsection.(3) A participant whose deferrals and investment income were invested in a terminated life insurance product may continue life insurance coverage with the insurance company offering the terminated life insurance product.(4) If an insurance company has not been terminated from participation in the plan, this paragraph applies. The company must offer continuing life insurance coverage to each participant whose deferrals and investment income were invested in a terminated life insurance product offered by the company. The insurance company shall offer continuing coverage in:(A) an existing qualified investment product that is comparable to the terminated life insurance product; and(B) a life insurance product that is not a qualified investment product but is comparable to the terminated life insurance product.(5) If an insurance company has been terminated from participation in the plan, this paragraph applies. The company shall offer continuing life insurance coverage to each participant whose deferrals and investment income were invested in a terminated life insurance product offered by the company. The insurance company must offer continuing coverage in a life insurance product that is comparable to the terminated life insurance product in which the participant's deferrals and investment income were invested.(6) If a participant continues life insurance coverage in a life insurance product that is not a qualified investment product, the participant must pay the premiums for the product directly to the insurance company. The premiums may not be paid with deferrals or investment income.(7) A participant may exercise the participant's right to continue life insurance coverage only if the participant mails to the prior plan vendor written notice of intention to continue the coverage. The written notice must be postmarked no later than the 60th day after the effective date of the termination of participation in the plan. However, an insurance company may increase the 60-day time limit for a participant or for all participants.(8) When a participant elects to continue life insurance coverage, the life insurance company offering the product via which the participant is continuing coverage may not:(A) refuse to continue the life insurance;(B) require a postponement or an interruption in coverage for any length of time;(C) require the participant to provide evidence of insurability;(D) require the participant to apply for coverage;(E) discriminate in any manner against the participant because the plan administrator terminated the participation in the plan of the company or its life insurance product;(F) treat the participant differently than the company would treat a non-participant with the same life insurance coverage; or(G) increase the premiums charged to the participant solely because the participant elected to continue coverage.(9) An insurance company must ensure that each participant entitled to continue life insurance coverage under this subsection receives written notice of the participant's right by no later than the 30th day after the plan administrator mails notice to the company of a termination described in paragraph (1) of this subsection.(10) If an insurance company does not comply with paragraph (9) of this subsection, then a participant may exercise the participant's right to continue life insurance coverage up to the 60th day after the insurance company actually mails written notice to the participant containing a full explanation of the participant's rights.(d) Disciplinary procedures.(1) The plan administrator may act without a prior hearing when necessary to remedy or protect either the plan or participants from an imminent or actual violation of the sections in this chapter.(2) The plan administrator may refer violations of the sections in this chapter or noncompliance with a prior plan vendor's contractual obligations to the attorney general for appropriate action.(e) A prior plan vendor's failure to act.(1) A prior plan vendor shall reimburse the State of Texas, or effective January 1, 1999, the trust, for a financial loss that results from the vendor's failure to process a request for a transfer in a reasonable time, not to exceed 30 days.(2) A prior plan vendor shall reimburse a participant for a financial loss that results from the prior plan vendor's failure to process a distribution or transfer in a reasonable time, not to exceed 30 days.(f) Misrepresentations of qualified investment products.(1) A prior plan vendor is responsible for an intentional or unintentional misrepresentation or misstatement of any attribute of the vendor's qualified investment products by an employee of the prior plan vendor or by a vendor representative. This paragraph applies even if the prior plan vendor did not authorize the misrepresentation or misstatement.(2) The plan administrator may bind a prior plan vendor to a misrepresentation or misstatement by the prior plan vendor's employees or representatives of an attribute of the prior plan vendor's qualified investment products if the attribute as misrepresented or misstated is more advantageous to the participant than the attribute would be if it had been accurately depicted.(g) Alternative action by the plan administrator.(1) This subsection applies when a section in this chapter requires or permits the plan administrator to terminate a prior plan vendor's participation in the plan or expel a prior plan vendor from the plan.(2) In lieu of imposing the termination or expulsion, the plan administrator may:(A) prohibit a prior plan vendor from receiving additional deferrals and investment income;(B) discipline a prior plan vendor;(C) impose special requirements on a prior plan vendor;(D) take other appropriate action; or(E) perform a combination of the actions listed in subparagraphs (A)-(D) of this paragraph.(3) Paragraph (2) of this subsection applies only if the plan administrator determines that alternative action is in the best interests of the plan.(h) Violations of state insurance or securities laws. The plan administrator shall refer possible violations of state insurance or securities laws or regulations to the Texas Department of Insurance or the State Securities Board for appropriate action.",
            "sourceNote": "Source Note: The provisions of this §87.21 adopted to be effective March 28, 1991, 16 TexReg 1560; amended to be effective January 10, 1992, 16 TexReg 7743; amended to be effective November 23, 1992, 17 TexReg 7911; amended to be effective September 19, 1995, 20 TexReg 6932; amended to be effective January 5, 1996, 20 TexReg 11022; amended to be effective September 10, 1998, 23 TexReg 9067; amended to be effective January 5, 2003, 27 TexReg 12370; amended to be effective September 11, 2003, 28 TexReg 7785; amended to be effective September 30, 2004, 29 TexReg 9204."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=98897&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "98897",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "87",
                "label": "DEFERRED COMPENSATION"
            },
            "rule": {
                "number": "§87.23",
                "label": "Grievance Procedure"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=117083&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "117083",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Any person participating in the deferred compensation plan, who is denied payment of benefits, may request the plan administrator or its designee to reconsider the claim. Any additional documentation in support of the claim may be submitted with the request for reconsideration. If the claim is again denied, the claim, accompanied by all related documents and copies of correspondence with the plan administrator or its designee, may be submitted by the person to the executive director of the Employees Retirement System of Texas for review. A request for review must be filed by the person in writing within 90 days from the date the plan administrator or its designee formally denies the claim and mails notice of this denial and right of appeal to the person.(b) Any person with a grievance regarding eligibility or other matters involving the program may submit a written request to the executive director to make a determination on the matter in dispute.(c) When the executive director reviews any matter arising under this section, all of the available information will be considered. When the executive director completes the review and makes a decision, all parties involved will be notified in writing of the decision.(d) Any person that does not accept the executive director's decision may appeal the decision to the board. A notice of appeal to the board must be filed in writing 30 days from the date the executive director's decision is mailed by certified mail.(e) Appeals to the board will be processed under the provisions of Chapter 67 of this title (relating to Hearings and Disputed Claims) and the Administrative Procedure Act, Title 10, Subtitle A, Texas Government Code.(f) As used in this section, the term \"person\" includes any duly authorized representative of such person.(g) In computing time under this section, the day after any mailing by the plan administrator or its designee or the executive director shall be counted as the first day of the time period. A document is considered to be filed with the executive director when it is received by the executive director or when it is postmarked, whichever is earlier.",
            "sourceNote": "Source Note: The provisions of this §87.23 adopted to be effective March 28, 1991, 16 TexReg 1560; amended to be effective January 5, 2003, 27 TexReg 12370."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=117083&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "117083",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "87",
                "label": "DEFERRED COMPENSATION"
            },
            "rule": {
                "number": "§87.25",
                "label": "Transition"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=172590&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "172590",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) This subsection applies only to activities, investment products, prior plan vendors' participation in the plan, and documents that the plan administrator approved before May 7, 1990. A prior plan vendor must comply with the substantive requirements of the sections in this chapter by July 1, 1990, to the extent that compliance with the requirements is a precondition for obtaining the plan administrator's approval of activities, investment products, prior plan vendors' participation in the plan, or documents. Compliance is required notwithstanding the plan administrator's approval of the activities, investment products, prior plan vendors' participation in the plan, or documents before the May 7, 1990. If a prior plan vendor does not comply by July 1, 1990, the plan administrator shall take appropriate disciplinary action.(b) A prior plan vendor is deemed to consent to each provision and requirement in the sections of this chapter unless the plan administrator receives written notice from the prior plan vendor by no later than May 18, 1990, that the prior plan vendor is terminating its participation in the plan effective no later than July 17, 1990. If the plan administrator timely receives the notice from a prior plan vendor:(1) the prohibition against the charging of fees for voluntary termination from the plan in §87.7(f) of this title (relating to prior plan vendor participation) does not apply to the prior plan vendor's qualified investment products; and(2) §87.7(f) of this title (relating to prior plan vendor participation) does not provide participants with the right to continue their life insurance coverage, although the terms of a particular life insurance product or state or federal law may provide the participants with the right to continue their insurance coverage.",
            "sourceNote": "Source Note: The provisions of this §87.25 adopted to be effective March 28, 1991, 16 TexReg 1560; amended to be effective September 30, 2004, 29 TexReg 9204."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=172590&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "172590",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "87",
                "label": "DEFERRED COMPENSATION"
            },
            "rule": {
                "number": "§87.29",
                "label": "Termination of Coverage"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=117086&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "117086",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The plan administrator may prohibit any person from deferring funds to the deferred compensation plan who violates the plan for a period to be determined by the plan administrator. Any person with a grievance concerning action taken under this section or the plan document may submit a grievance in accordance with §87.23 of this title (relating to Grievance Procedure).",
            "sourceNote": "Source Note: The provisions of this §87.29 adopted to be effective November 23, 1992, 17 TexReg 7911; amended to be effective June 9, 2015, 40 TexReg 3575."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=117086&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "117086",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "87",
                "label": "DEFERRED COMPENSATION"
            },
            "rule": {
                "number": "§87.34",
                "label": "Independent Investment Advice"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=172591&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "172591",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The plan administrator may offer independent investment advice through a qualified independent advisor in accordance with applicable federal regulations.(b) Payment for independent investment advice is allowed only from the revised plan.(c) Applicability.(1) This section applies to the Texa$aver 401(k) Plan and Texa$aver 457 Plan, as amended and adopted by the Employees Retirement System of Texas.(2) The investment advisor(s) used by the plan administrator must meet reasonable qualifications, and agree to act as a fiduciary on behalf of the participants.(3) Payments for investment advice under this rule may only be made when the plan administrator has determined that it considers the payment to be a reasonable plan expense.",
            "sourceNote": "Source Note: The provisions of this §87.34 adopted to be effective September 11, 2003, 28 TexReg 7785; amended to be effective September 30, 2004, 29 TexReg 9204."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=172591&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "172591",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "4",
                "label": "EMPLOYEES RETIREMENT SYSTEM OF TEXAS"
            },
            "chapter": {
                "number": "87",
                "label": "DEFERRED COMPENSATION"
            },
            "rule": {
                "number": "§87.37",
                "label": "457 Plan Document"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227301&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227301",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In this chapter, \"plan document\" means the Texa$aver 457 plan document as executed and approved by the Executive Director, and as amended hereafter, as authorized by the Board of Trustees on December 4, 2014, and pursuant to subsection (c) of this section.(b) All provisions of the revised plan, as defined herein, are governed by the plan document. In the event of a conflict between the plan document and another provision of this chapter, the provisions or requirements of the plan document prevail. This section also applies to the State of Texas Deferred Compensation 457 Plan adopted by the Employees Retirement System of Texas effective January 1, 1991, and as amended prior to adoption of the revised plan. The 1991 plan is referred to in this section as the \"prior plan.\" Except as otherwise provided in this section, the provisions of §§87.1, 87.3, 87.5, 87.7, 87.9, 87.11, 87.13, 87.15, 87.17, 87.19, 87.21, 87.23 and 87.29 of this chapter continue to apply to participation agreements, distribution agreements, and prior plan vendor contracts entered into pursuant to applicable provisions of the prior plan.  The 457 plan, as revised and adopted in the plan document, and as may be amended hereafter, shall be referred to as the \"revised plan,\" and shall apply to all deferrals and transfers to and distributions from the 457 plan that take place or have taken place on or after September 1, 2000.(c) The Board of Trustees has authorized the Executive Director to execute the 457 plan document and to make further changes to the plan document as deemed necessary or advisable for the benefit of the revised plan and its participants.(d) The plan administrator shall administer the revised plan in the manner provided in the plan document, and may assess fees and expenses against participants in the plan and their account balances as necessary to cover the costs of administering the revised plan.(e) A copy of the plan document may be obtained from the Employees Retirement System of Texas on request.(f) Transition from the prior plan.(1) This subsection regarding the transition from the prior plan shall apply to deferrals, transfers and distributions that take place on or after September 1, 2000. After that date, the plan administrator shall cease to accept deferrals to investment products approved under the prior plan, with the exception of life insurance products, to which deferrals may be continued as necessary to maintain the life insurance.(2) A participant with an account balance in investment products approved under the prior plan may elect to maintain the balance in those products or to transfer the balance to one or more products approved under the revised plan. A participant may not transfer funds from one prior plan vendor in the prior plan to another prior plan vendor in the prior plan. Annuitized and life insurance products may not be transferred to the revised plan. Balances transferred to a product approved under the revised plan may not be transferred to a product approved under the prior plan. Transfer of funds to the revised plan that are in distribution must be paid out over a uniform term.(3) Notwithstanding the provisions of paragraph (2) of this subsection, the plan administrator may require that an account balance in an investment product in the prior plan be transferred from such product approved under the prior plan to a product(s) approved under the revised plan if the plan administrator determines it is in the best interests of the plan.(4) On or after September 1, 2000, prior plan vendors and vendor representatives of qualified investment products under the prior plan shall cease solicitation of business for such products from participants and employees.(5) Distribution agreements for investment products in the prior plan filed on or after September 1, 2000, shall use the same beginning date, duration and frequency for all prior plan vendors and investment products.(6) A beneficiary designation form for investment products in the prior plan must be properly executed by the participant and filed with the applicable prior plan vendors. In the revised plan, a beneficiary designation form must be properly executed by the participant and filed with the TPA in accordance with the plan document. A beneficiary designation form filed with the TPA of the revised plan applies only to those funds that have been transferred to the revised plan.(7) Termination of deferrals in prior plan; resumption of deferrals.(A) A participant may voluntarily terminate additional deferrals in the prior plan by providing appropriate notice to the TPA.(B) A participant who has terminated additional deferrals in the prior plan, but who has not separated from service, may resume deferrals in the 457 plan by re-enrolling in the revised plan in accordance with the plan document.",
            "sourceNote": "Source Note: The provisions of this §87.37 adopted to be effective June 9, 2015, 40 TexReg 3575."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227301&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227301",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "101",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§101.1",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227302&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227302",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "As used in rules adopted by the Board of Trustees of the Texas County and District Retirement System:(1) Act - The provisions of the Government Code, Title 8, Subtitle F, as amended from time to time;(2) Board - Board of trustees of TCDRS;(3) Director - Executive Director of TCDRS;(4) Document - Applications, beneficiary designations, administrative elections, petitions, claims, complaints, replies, statements, affidavits, subpoenas, or any other pleading under the Act or this title;(5) Electronic filing and electronic transfer - These terms will have the meanings assigned under Section 845.116(a) of the Act;(6) Employer - A subdivision, as defined in Section 841.001(17) of the Government Code participating in TCDRS;(7) Internal Revenue Code - The Internal Revenue Code of 1986, as amended, (and corresponding provisions of any subsequent federal tax laws) and the regulations thereunder.(8) Medical board - Group of physicians designated by the Board in accordance with Section 845.204 of the Government Code;(9) SOAH - State Office of Administrative Hearings;(10) Retirement Plan or Plan - The plan established in accordance with the Act and qualified under Section 401(a) of the Internal Revenue Code;(11) TCDRS or system - Texas County and District Retirement System;(12) Proportionate retirement system - A public retirement system other than TCDRS that participates in the Proportionate Retirement Program described by this title and Chapter 803 of the Government Code; and(13) Signature - Includes any symbol executed or adopted by a person with present intention to authenticate a writing, including an electronic signature.",
            "sourceNote": "Source Note: The provisions of this §101.1 adopted\r\nto be effective January 8, 2026, 51 TexReg 156."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227302&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227302",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "101",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§101.2",
                "label": "Scope and Application"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227303&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227303",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) These rules govern the procedures of TCDRS and the administration of such other matters as are set forth under this Part 5 of Title 34, Administrative Code. They shall not be construed so as to enlarge, diminish, modify, or alter the jurisdiction, powers, or authority of TCDRS or the substantive rights of any person.(b) Subject to the limitation described in subsection (a) of this section, the Director is authorized to suspend, modify or grant an exception to the operation of a rule under this title in individual cases as equity and fairness require to avoid undue hardship, where to do so will not prejudice TCDRS or cause delay or inconvenience in its management or administration, or cause harm or injury to another party, or cause an impermissible suspension, modification, or exception to a mandatory qualification requirement under Section 401(a) of the Internal Revenue Code, and is not contrary to applicable statutes.(c) The decision to suspend, modify or grant an exception to the operation of a rule in an individual case is within the sole and exclusive discretion of the Director. A determination by the Director to grant or deny relief is final and not appealable by any person. A determination by the Director to grant relief to any person does not create a right or privilege in any other person to an exception, suspension or modification to a rule, or excuse a failure to comply with a rule in all of its particulars.",
            "sourceNote": "Source Note: The provisions of this §101.2 adopted to be\r\neffective January 8, 2026, 51 TexReg 156."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227303&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227303",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "101",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§101.3",
                "label": "Filing of Documents"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227304&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227304",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Subject to Subsection (b) of this section, documents must be filed with TCDRS in a format prescribed by the Director and may be required to be filed electronically in accordance with Section 845.116(b) of the Government Code and instructions provided by the Director.(b) If a proceeding becomes a contested case, documents thereafter shall be filed in accordance with applicable SOAH rules and statute.(c) A document requiring certification by an Employer that is filed in the format prescribed by the Director is considered to have been certified as to the truth and correctness of the information provided by the Employer. A document that is filed by an individual in the format prescribed by the Director is considered to have been certified as to the truth and correctness of the information provided by the individual.(d) An electronically filed document and an electronic transfer are received by TCDRS and considered filed when the time receipt is recorded by TCDRS' electronic system. For purposes of meeting a filing deadline, an electronically filed document and an electronic transfer must be received by TCDRS before 11:59 p.m. Central Standard Time of the deadline.(e) Documents that are not required to be electronically filed under Subsection (a) of this section shall be filed with the Director at TCDRS' physical office in Austin. Such documents shall be deemed filed only when received by TCDRS.(f) For purposes of clarity, if an individual who completes and executes a beneficiary designation or application for benefits dies before TCDRS receives such documentation, such application or designation will not be accepted or considered valid, regardless of how or when it is filed or received by TCDRS.",
            "sourceNote": "Source Note: The provisions of this §101.3 adopted to be\r\neffective January 8, 2026, 51 TexReg 156."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227304&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227304",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "101",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§101.4",
                "label": "Computation of Time"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227305&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227305",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In computing any period of time prescribed or allowed by this title, by order of the Board, or by any applicable statute, the period shall begin on the day after the act, event, or default in controversy and conclude on the last day of such computed period, unless it be a Saturday, Sunday, or legal holiday. Subject to Subsection (b) of this section, if the last day of the computed period is a day other than a business day, the period is extended until the next day business day. For purposes of this subsection, a business day has the meaning defined in Section 552.0031 of the Government Code.(b) The computation of a time period in an appeal of an administrative decision that has been referred to SOAH is governed by the applicable SOAH rules and statute.",
            "sourceNote": "Source Note: The provisions of this §101.4 adopted to be\r\neffective January 8, 2026, 51 TexReg 156."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227305&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227305",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "101",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§101.5",
                "label": "Time for Filing of Retirement Applications and First Annuity Payments."
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227306&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227306",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An application for retirement must be signed and dated by the individual seeking the retirement benefit or that individual's authorized representative and must specify an effective retirement date on which the individual will have satisfied all requirements for retirement as such requirements existed on the effective retirement date.(b) The date specified as the effective date for retirement must be the last day of a calendar month falling within the period that is no more than six months before the date TCDRS receives the retirement application and may not precede the first anniversary of the effective date of participation of the Employer in the Plan.(c) A member must have terminated from employment on or before the effective retirement date designated on the application. If the member is applying for:(1) service retirement, the date specified as the effective date of retirement with respect to an Employer may not be a date preceding the termination of the member's employment with the Employer from which the member wishes to retire.(2) disability retirement, the date specified as the effective date of retirement may not be prior to the later of the date the member terminated employment with all participating Employers or the date the member became disabled.(d) If the specified effective retirement date is prior to the date TCDRS receives the retirement application, the retirement annuity shall be calculated under the Plan provisions in effect on the effective retirement date but with the options selected and beneficiaries designated on the application. All unpaid annuity payments attributable to the period from the effective date of retirement through the date the retirement application is processed by TCDRS will be accumulated and paid, without interest, as a single sum.(e) An annuity approved by TCDRS is payable beginning on the last day of the first month following the effective date of retirement.",
            "sourceNote": "Source Note: The provisions of this §101.5 adopted to be\r\neffective January 8, 2026, 51 TexReg 156."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227306&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227306",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "101",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§101.6",
                "label": "Supporting Documents to be Submitted"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227307&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227307",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The Director is authorized to require submission of documents reasonably related to establishment of a claimed right to benefits. These documents include but are not limited to drivers licenses; birth certificates; marriage licenses; divorce decrees; letters of guardianship; letters testamentary or letters of administration; proof of authority to act on behalf of a member including a power of attorney; death certificates; relevant court orders; sworn statements of witnesses and attending physicians; autopsy reports; and sworn statements of the claimant or of others having personal knowledge of relevant facts. Except upon good cause being shown, as determined by the Director, failure to submit all required documents within 30 days of the date specified by the member as his or her effective retirement date will invalidate the application for retirement (service or disability) for all purposes. Thereafter, a new application must be submitted and a new retirement date chosen in accordance with Section 101.5 of this chapter (relating to Time for Filing of Retirement Applications and First Annuity Payments).",
            "sourceNote": "Source Note: The provisions of this §101.6 adopted to be\r\neffective January 8, 2026, 51 TexReg 156."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227307&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227307",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "101",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§101.7",
                "label": "Service Retirement Benefits Approved by Director"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227308&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227308",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "If the Director finds from the records of TCDRS and from the documents supporting the application that the applicant is entitled to a service retirement benefit, unless a contest has been filed under Section 101.12 of this chapter (relating to Board Consideration and Action), the Director may approve the retirement, calculate the amount of the benefit and place it into effect without further hearing. On the request of the chairman or vice-chairman, any benefit approved by the Director shall be reported to the Board.",
            "sourceNote": "Source Note: The provisions of this §101.7 adopted to be\r\neffective January 8, 2026, 51 TexReg 156."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227308&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227308",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "101",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§101.8",
                "label": "Disability Retirement Applications Referred to Medical Board"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227309&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227309",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as provided in Subsection (b) of this section, applications for disability retirement shall be referred by the Director to the medical board. The medical board shall investigate all essential statements and certificates by or on behalf of the member in connection with the application for disability retirement and shall pass upon, conduct, or cause to be conducted, all medical examinations which in its opinion are necessary to determine the cause, extent, and permanence of the member's disability. The medical board shall make and file with the Director a written report of its conclusions and recommendations. (b) The Director may approve a disability retirement application without referral to the medical board under Subsection (a) of this section if a member indicates in his or her application that he or she has applied for and has been approved for disability benefits provided by the Social Security Act and submits with the application the award letter issued by the Social Security Administration.",
            "sourceNote": "Source Note: The provisions of this §101.8 adopted to be\r\neffective January 8, 2026, 51 TexReg 156."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227309&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227309",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "101",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§101.9",
                "label": "Disability Retirement Benefits Approved by Director"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227310&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227310",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "If the findings and conclusions of the medical board, as stated in its report, are such as in the Director's opinion entitle the member under the terms of the Act to the disability retirement benefit applied for, the Director may approve the retirement, calculate the amount of the benefit, and place it into effect. On the request of the chairman or vice-chairman, any benefit approved by the Director shall be reported to the Board.",
            "sourceNote": "Source Note: The provisions of this §101.9 adopted to be\r\neffective January 8, 2026, 51 TexReg 156."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227310&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227310",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "101",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§101.10",
                "label": "Summary Disposition by the Director"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227311&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227311",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Applications for benefits under the Act not specified above, including claims for refund of deposits, may be granted by the Director without formal hearing if not contested by any party and if the Director is satisfied upon the basis of the application and supporting documents that the applicant is entitled to the action requested.(b) An Employer's request under Section 843.503 of the Government Code that certain employees be granted credited service in TCDRS for service performed as an employee of the immediate predecessor of the Employer may be granted by the Director. The Director may require submission of documents reasonably related to such a request.",
            "sourceNote": "Source Note: The provisions of this §101.10 adopted to be\r\nJanuary 8, 2026, 51 TexReg 156."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227311&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227311",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "101",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§101.11",
                "label": "Appeal of Administrative Decision"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227312&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227312",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An administrative decision of the Director is final and conclusive unless an appeal is filed in writing with TCDRS in accordance with Section 845.506(a) of the Government Code.(b) The appeal request must include the following:(1) the name of the party filing the appeal;(2) a concise statement of the facts relied upon by the party and a statement of disagreement with the decision;(3) a request stating the type of relief, action, or order desired by the party;(4) the signature of the person filing the appeal or of their representative; and(5) a certificate of service showing that a true copy of the same was served on the party whose claim is being contested, if known.(c) The Director may refer an appeal of an administrative decision to SOAH for a hearing in accordance with Section 845.506 of the Act.(d) An appeal under this section is a contested case under Chapter 2001 of the Government Code in accordance with Section 845.506 of the Government Code and will be performed in accordance with Chapter 2001 of the Government Code and the SOAH rules.(e) If no appeal is timely made of an administrative decision of the Director, such administrative decision will be final and unappealable.",
            "sourceNote": "Source Note: The provisions of this §101.11 adopted to be\r\neffective January 8, 2026, 51 TexReg 156."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227312&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227312",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "101",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§101.12",
                "label": "Board Consideration and Action"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227313&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227313",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The final decision in contested cases pursuant to an appeal under Section 101.11 of this chapter (relating Appeal of Administrative Decision) shall be made by the Board, normally on the basis of a proposal for decision, of exceptions to the proposal, and briefs supporting and opposing the proposal for decision. The Board, in exceptional cases, on its own motion or on request of a party, may allow oral argument, may make its decision on the record, or may order the hearing to be conducted before the Board sitting as a body.(b) The case will be considered by the Board, normally at its next regular meeting after time has expired for filing of exceptions to the proposal for decision, or any extension of time granted for filing such exceptions, or briefs in support of or against exceptions.(c) A decision of the Board is final in the absence of a timely motion for rehearing and is final and appealable on the date of rendition of an order overruling the motion for rehearing, or on the date the motion is overruled by operation of law.",
            "sourceNote": "Source Note: The provisions of this §101.12 adopted to be\r\neffective January 8, 2026, 51 TexReg 156."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227313&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227313",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "101",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§101.13",
                "label": "Proceedings for Review, Suspension, or Revocation of Disability  Benefits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227314&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227314",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The Director, either on the Director's own motion, on recommendation of the medical board, or upon sufficient written complaint, may order any person (the \"retiree\") who is receiving a disability retirement benefit under the Act and who is less than 60 years of age:(1) to undergo a medical examination by one or more physicians designated by the Director, at such time and place as the Director by letter may order; or(2) to furnish answers, in writing under oath, to such questions concerning the person's present and previous employment as may be propounded by the Director in writing.(b) If a disability retiree fails or refuses to submit to a medical examination as ordered by the Director, the Director shall suspend the retiree's annuity payments until the retiree submits to an examination. The Director at the time of suspension shall notify the retiree of this action. If the retiree thereafter fails to make arrangements with the Director, or the Director's designee, for a time for such a medical examination, or fails to submit to such an examination, for a period of one year from the date of initial failure to submit to such a medical examination, the Director shall order the annuity discontinued, and shall give notice of such actions to the retiree by written letter of notification.(c) If the retiree submits to a medical examination, the report of the examining physician shall be submitted to the medical board; if the medical board certifies that the retiree is no longer mentally or physically incapacitated, or is able to engage in a gainful occupation, the Director may order the disability annuity discontinued, and the Director shall give written notice of such action to the retiree. (d) In the event the Director finds that a disability retiree is engaged in a gainful occupation, the Director shall order the disability annuity discontinued, and in that event the Director shall give written notice to the retiree of the Director's actions.(e) The Director may require a person who is receiving a disability retirement annuity under the Act and who is less than 60 years of age to file an annual report on such form as the Director prescribes concerning receipt by the retiree of income, along with copies of such federal tax forms as the Director may designate. The Director shall give notice of the requirements to the person affected, and shall fix a date within which the information is to be furnished.(f) In the event that a person subject to such an order fails to furnish the required information within the period specified by the Director, the Director shall suspend the annuity until such time as the required information is furnished, and shall notify the person of the Director actions.(g) If the person affected by the Director's action in discontinuing a disability retirement annuity desires to contest the same, the person may file an appeal pursuant to Section 101.11 of this chapter (relating to Appeal of Administrative Decision). If no appeal is timely filed, the action of the Director in discontinuing the disability retirement annuity shall be final and unappealable.",
            "sourceNote": "Source Note: The provisions of this §101.13 adopted to be\r\neffective January 8, 2026, 51 TexReg 156."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227314&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227314",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "101",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§101.14",
                "label": "Exclusive Purpose"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227315&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227315",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The Board shall hold the assets of the system in trust for the exclusive purpose of providing benefits to participants and paying reasonable expenses of administration. It shall be impossible at any time prior to the satisfaction of all liabilities to members and beneficiaries covered by the trust, by operation of the system, by termination, by power of revocation or amendment, by the happening of any contingency, by collateral arrangement or by other means, for any part of the corpus or income of the trust, or any funds contributed thereto, to inure to the benefit of any employer or otherwise be used for or diverted to purposes other than providing benefits to members and beneficiaries and defraying reasonable expenses of administering the system.",
            "sourceNote": "Source Note: The provisions of this §101.14 adopted to be\r\neffective January 8, 2026, 51 TexReg 156."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227315&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227315",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "103",
                "label": "CALCULATIONS OR TYPES OF BENEFITS"
            },
            "rule": {
                "number": "§103.1",
                "label": "Actuarial Tables"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227316&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227316",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Service retirement benefits and disability retirement benefits for which the first benefit payment is payable before January 1, 2018, shall be calculated under the following rules:(1) The annuity purchase rate is calculated on the basis of the UP-1984 table with an age setback of five years for retirees and an age setback of 10 years for beneficiaries, with a 30% reserve refund assumption for the standard benefit.(2) Annuity purchase rates are based on the respective retiree's and beneficiary's attained ages in years.(b) For benefits payable on or after January 1, 2018, service retirement benefits and disability retirement benefits shall be calculated under the following rules:(1) The annuity purchase rate for the portion of the benefit that is associated with service credit and any prior service credit that accrued before January 1, 2018, and all future interest earned and employer matching attributable to this portion shall be calculated based on the assumptions described in Subsection (a)(1) of this section.(2) The annuity purchase rate for the portion of the benefit that is associated with service credit that accrues on or after January 1, 2018 and is not included in amounts described in (b)(1) above shall be calculated on a generational mortality basis using the RP-2000 Combined Mortality Table, with a one-year set forward for males and no set forward for female, projected to 2014 using Scale AA and for projections after 2014 using 110% of MP-2014 Ultimate Projection Scale, with a 32.79% reserve refund assumption for the standard benefit. Mortality assumptions for these calculations are blended 50% male and 50% female for retirees, and blended 30% male and 70% female for beneficiaries.(3) The annuity purchase rates are based on the respective retiree's and beneficiary's attained age in years and months regardless of when the service credit was accrued.(4) For purposes of this rule, service credit means the monetary credits allowed a member for service for a participating employer as defined in Section 841.001(16) of the Government Code.",
            "sourceNote": "Source Note: The provisions of this §103.1 adopted\r\nto be effective July 27, 1976, 1 TexReg 1929; amended to be effective\r\nJuly 25, 1977, 2 TexReg 2654; amended to be effective October 7, 1981,\r\n6 TexReg 3599; amended to be effective October 24, 1985, 10 TexReg\r\n3977; amended to be effective October 23, 1991, 16 TexReg 5781; amended\r\nto be effective January 10, 2016, 41 TexReg 487; amended to be effective\r\nJanuary 8, 2026, 51 TexReg 158."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227316&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227316",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "103",
                "label": "CALCULATIONS OR TYPES OF BENEFITS"
            },
            "rule": {
                "number": "§103.2",
                "label": "Additional Optional Retirement Annuities"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227317&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227317",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A member entitled to retirement may elect to receive, in lieu of a standard retirement benefit, one of the following optional annuities, each of which is a reduced monthly annuity that is the actuarial equivalent of the standard retirement benefit, payable during the lifetime of the retiree, but with the provision that:(1) after the retiree's death, one hundred percent of the reduced annuity is payable throughout the life of an individual designated by the retiree;(2) after the retiree's death, three-fourths of the reduced annuity is payable throughout the life of an individual designated by the retiree;(3) after the retiree's death, one-half of the reduced annuity is payable throughout the life of an individual designated by the retiree;(4) after the retiree's death, one hundred percent of the reduced annuity is payable throughout the life of an individual designated by the retiree, except that if the designated individual predeceases the retiree, the annuity payable throughout the remaining life of the retiree is the annuity that would be payable if the retiree had originally chosen a standard retirement annuity;(5) if the retiree dies before 120 reduced monthly annuity payments have been made, the remainder of the 120 payments are payable to the retiree's beneficiary or, if one does not exist, to the retiree's spouse, or if no surviving spouse exists, to the retiree's estate; or(6) if the retiree dies before 180 reduced monthly annuity payments have been made, the remainder of the 180 payments are payable to the retiree's beneficiary or, if one does not exist, to the retiree's spouse, or if no surviving spouse exists, to the retiree's estate.(b) If payments under a standard or optional retirement annuity cease before the sum of all such payments equals or exceeds the amount of accumulated contributions in the individual account in the employees saving fund at the time of retirement of the member on whose service the annuity was based, a lump-sum benefit equal to the amount by which the accumulated contributions exceed the sum of all such payments made under the annuity is payable in the manner described in Section 844.402 of the Government Code.",
            "sourceNote": "Source Note: The provisions of this §103.2 adopted to be\r\neffective July 27, 1976, 1 TexReg 1929; amended to be effective August\r\n28, 1989, 14 TexReg 3352; amended to be effective May 1, 1993, 18\r\nTexReg 2415; amended to be effective July 27, 2005, 30 TexReg 4213;\r\namended to be effective October 18, 2007, 32 TexReg 7265; amended\r\nto be effective January 8, 2026, 51 TexReg 158."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227317&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227317",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "103",
                "label": "CALCULATIONS OR TYPES OF BENEFITS"
            },
            "rule": {
                "number": "§103.3",
                "label": "Beneficiary Designations and Payment Elections Requiring Spousal  Consent"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227318&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227318",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A member eligible for retirement must certify to the current marital status of the member on any withdrawal or retirement application filed with TCDRS.(1) A member eligible for retirement who is married may not select a form of payment of a retirement benefit other than as a qualified joint-and-survivor annuity unless the member's spouse consents to the selection.(2) A member eligible for retirement who is married may not withdraw from membership and receive a refund unless the member's spouse consents to the refund.(3) A member who is unmarried may designate any beneficiary and select any form of payment of a retirement benefit permitted under the Act.(b) The consent required by Subsection (a) of this section is not required if it is established to the satisfaction of TCDRS that:(1) there is no spouse;(2) the spouse cannot be located;(3) the spouse has been judicially declared incompetent in which case the consent may be given by the guardian or other ad litem;(4) a duly licensed physician has determined that the spouse is not mentally capable of managing his or her own affairs and the Director is satisfied that a guardianship of the estate is not necessary;(5) the spouse and the member will have been married for less than one year as of the date the member files a valid application for a refund of the member's accumulated deposits, or as of the effective retirement date designated by the member on the member's valid application for retirement; or(6) no service performed by the member as an employee of a participating Employer and credited in TCDRS was performed during the marriage of the member and the spouse.(c) For the purposes of this section, the term \"qualified joint-and-survivor annuity\" means a retirement annuity for the life of the member with a survivor annuity for the life of the member's spouse which is not less than 50% of the amount of the annuity which is payable during the joint lives of the member and spouse.(d) TCDRS and employees of TCDRS may rely upon the certification of the member filed under this section, and are not liable to any person for making payments of any benefits in accordance with the certification even though the certification is later shown to have been untrue on the date of execution.",
            "sourceNote": "Source Note: The provisions of this §103.3 adopted to be\r\neffective August 28, 1989, 14 TexReg 3352; amended to be effective\r\nJanuary 10, 1996, 21 TexReg 134; amended to be effective December\r\n31, 1999, 24 TexReg 9301; amended to be effective March 27, 2007,\r\n32 TexReg 1749; amended to be effective July 26, 2012, 37 TexReg 5488;\r\namended to be effective January 8, 2026, 51 TexReg 158."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227318&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227318",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "103",
                "label": "CALCULATIONS OR TYPES OF BENEFITS"
            },
            "rule": {
                "number": "§103.4",
                "label": "Certification of Prior Service and Average Prior Service Compensation."
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227319&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227319",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Pursuant to Sections 843.101- 843.104 of the Government Code, an Employer must certify to TCDRS the service performed by employees of the Employer before the Employer's participation in TCDRS became effective and must also certify the average prior service compensation of those members.(b) The Employer must certify each member's prior service by calculating one month of credited service for each calendar month during which the member performed at least one day of service for the Employer other than as a temporary employee, prior to the month that includes the Employer's effective participation date. The certification must be submitted in accordance with the instructions provided by TCDRS.(c) An Employer must certify the prior service and average prior service compensation of all eligible members no later than 90 days after the Employer's effective date of participation. In the case of a member eligible for prior service credit under Section 843.102(a)(2) of the Government Code, the Employer must make the certification no later than 90 days after the six month period of re-employment. Calculations of prior service credit are governed by the law in effect at the time of the calculation. TCDRS may extend the time periods set forth in this subsection.(d) If, under Section 843.201 of the Government Code, an Employer has acquired a public facility or assumed a governmental function, the date of acquisition or assumption shall be the effective date of participation for purposes of calculating the prior service and average prior service compensation of those members eligible under that section.",
            "sourceNote": "Source Note: The provisions of this §103.4 adopted to be\r\neffective November 26, 2013, 38 TexReg 8447; amended to be effective\r\nJanuary 8, 2026, 51 TexReg 158."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227319&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227319",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "103",
                "label": "CALCULATIONS OR TYPES OF BENEFITS"
            },
            "rule": {
                "number": "§103.5",
                "label": "Required Distribution"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227320&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227320",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Required Distribution: In accordance with Section 401(a)(9) of the Internal Revenue Code, a member must (1) withdraw all accumulated contributions credited to that member's individual account pursuant to Section 842.108 of the Government Code or (2) retire and begin receiving a benefit from TCDRS on or before the member's required distribution date.(1) Required distribution date means April 1 of the calendar year following the later of the calendar year in which the member attains the required distribution age, or the calendar year in which the member terminates employment with all Covered Employers. Required distribution age is the applicable age as prescribed by federal law under Section 401(a)(9)(C) of the Internal Revenue Code, and as amended from time to time.(2) Covered Employer for purposes of this Subsection includes all TCDRS participating Employers and all employers that participate with the public retirement systems included in the proportionate retirement program under Chapter 803 of the Government Code.(b) General Rules:(1) The remaining interest of a deceased retiree's benefit must continue to be distributed as rapidly as the method of distribution being used before the retiree's death.(2) The entire interest that becomes payable because of the death of a member who has a designated beneficiary as defined in regulations to Section 401(a)(9) of the Internal Revenue Code must be distributed over the life of the designated beneficiary or over a period not extending beyond the life expectancy of the designated beneficiary. Distributions shall begin no later than the applicable date specified in Section 401(a)(9) of the Internal Revenue Code.(3) The entire interest that becomes payable because of the death of a member who does not have a designated beneficiary must be distributed within five years of the death of the member.(4) For a distribution made by TCDRS to which Section 401(a)(9) of the Internal Revenue Code applies, TCDRS shall apply the minimum distribution requirements of Section 401(a)(9) of the Internal Revenue Code in a manner that complies with a reasonable good faith interpretation of Section 401(a)(9) of the Internal Revenue Code.",
            "sourceNote": "Source Note: The provisions of this §103.5 adopted\r\nto be effective December 31, 1997, 22 TexReg 12538; amended to be\r\neffective December 31, 2002, 27 TexReg 12371; amended to be effective\r\nOctober 18, 2007, 32 TexReg 7265; amended to be effective July 21,\r\n2009, 34 TexReg 4739; amended to be effective January 8, 2026, 51\r\nTexReg 158."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227320&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227320",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "103",
                "label": "CALCULATIONS OR TYPES OF BENEFITS"
            },
            "rule": {
                "number": "§103.6",
                "label": "Recalculation of Retirement Annuities to Include Post-Retirement  Deposits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227321&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227321",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If a contribution that would otherwise be credited to the member's individual account in TCDRS is deposited after the member's effective retirement date, the retirement annuity shall be recalculated in accordance with this section.(b) A retirement annuity subject to this section will be recalculated as of the effective retirement date by taking into account the additional accumulated contributions and the related increases in current service credit and matching credit. The recalculated retirement annuity will be based on the age of the retiree (and the age of the beneficiary in the case of a joint and survivor option) as of the effective retirement date.(c) The recalculated retirement annuity is payable only prospectively beginning with the month following the month in which TCDRS receives the deposit.",
            "sourceNote": "Source Note: The provisions of this §103.6 adopted to be\r\neffective November 1, 1998, 23 TexReg 10884; amended to be effective\r\nJuly 27, 2005, 30 TexReg 4214; amended to be effective January 8,\r\n2026, 51 TexReg 158."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227321&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227321",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "103",
                "label": "CALCULATIONS OR TYPES OF BENEFITS"
            },
            "rule": {
                "number": "§103.7",
                "label": "Determination of Reestablished Credit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227322&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227322",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "For purposes of determining the current service credit and multiple matching credit of the member under Section 843.003 of the Government Code, the amount deposited by the member (excluding any withdrawal charge) to reestablish credit in TCDRS shall be considered to be accumulated contributions made by the member to TCDRS during the calendar year of deposit. The percentage to be used for the determination of the multiple matching credit of the member with respect to such deposit is that percentage adopted by the governing board of the authorizing Employer and in effect during the month in which the deposit is made.",
            "sourceNote": "Source Note: The provisions of this §103.7 adopted to be\r\neffective November 1, 1998, 23 TexReg 10885; amended to be effective\r\nJuly 18, 1999, 24 TexReg 5214; amended to be effective July 27, 2005,\r\n30 TexReg 4214; amended to be effective January 8, 2026, 51 TexReg\r\n158."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227322&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227322",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "103",
                "label": "CALCULATIONS OR TYPES OF BENEFITS"
            },
            "rule": {
                "number": "§103.8",
                "label": "Limit on Payments During the Limitation Year"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227323&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227323",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The limitation year used by TCDRS for determining the maximum annual benefit which may be paid under Section 415(b) of the Internal Revenue Code is the calendar year. Notwithstanding anything to the contrary, TCDRS will make no payments of a retirement annuity with respect to a retiree in excess of the annual limit as determined in accordance with Section 415(b) of the Internal Revenue Code and the regulations thereunder.(b) If the benefit recipient is not a participant in the TCDRS Qualified Replacement Benefit Arrangement (34 TAC §§113.1, et seq), the maximum monthly amount of the retirement annuity payable with respect to the retiree during the limitation year shall be the lesser of:(1) the amount determined under the provisions of Chapter 844 of the Government Code, without regard to the limitations of Section 844.008; or(2) the amount determined by dividing the annual limit for the limitation year determined in accordance with Section 415(b) of the Internal Revenue Code, by the number of monthly payments scheduled to be paid with respect to the retiree during the limitation year.(c) If the benefit recipient is a participant in the TCDRS Qualified Replacement Benefit Arrangement, the maximum monthly amount of the retirement annuity payable with respect to the retiree shall be the amount determined under the provisions of Chapter 844 of the Government Code, without regard to the limitations of Section 844.008. TCDRS shall cease making monthly payments of the retirement annuity payable with respect to the retiree at that time during the limitation year that the total of payments made with respect to such limitation year equals the maximum annual benefit payable in accordance with Section 415(b) of the Internal Revenue Code.(d) In no event shall the total amount paid during the limitation year be less than the lesser of that amount payable with respect to the retiree as determined under the provisions of Chapter 844 of the Government Code without regard to Section 844.008; or the annual limit for the limitation year determined in accordance with Section 415(b) of the Internal Revenue Code.(e) TCDRS will make retroactive or prospective adjustments to any benefit payment as appropriate to comply with this section.",
            "sourceNote": "Source Note: The provisions of this §103.8 adopted to be\r\neffective November 1, 1998, 23 TexReg 10885; amended to be effective\r\nJanuary 10, 2006, 31 TexReg 170; amended to be effective January 8,\r\n2026, 51 TexReg 158."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227323&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227323",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "103",
                "label": "CALCULATIONS OR TYPES OF BENEFITS"
            },
            "rule": {
                "number": "§103.9",
                "label": "Partial Lump-Sum Distribution on Service Retirement"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227324&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227324",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An Employer participating in TCDRS may authorize a member to elect to receive a portion of the member's retirement benefit in the form of a single payment as authorized in Section 844.009 of the Government Code.(b) An application for a partial lump sum distribution is a document subject to the certification and spousal consent requirements of Section 103.3 (relating to Beneficiary Designations and Payment Elections Requiring Spousal Consent).(c) A member may revoke an application for a partial lump sum distribution or reduce the amount of the partial lump sum distribution at any time before the date the first annuity payment becomes due by filing written notice of the revocation or reduction with TCDRS. The amount of a partial lump sum distribution may not be increased except by the timely filing of a new application.(d) The portion of the partial lump sum distribution that is subject to taxation is a non-periodic distribution for income tax withholding purposes. A member or alternate payee receiving a partial lump sum distribution may elect to have the portion of the partial lump sum distribution that is an eligible rollover distribution transferred directly to a qualified plan, in accordance with the Internal Revenue Code.",
            "sourceNote": "Source Note: The provisions of this §103.9 adopted to be\r\neffective December 31, 1999, 24 TexReg 9301; amended to be effective\r\nOctober 10, 2011, 36 TexReg 6769; amended to be effective January\r\n8, 2026, 51 TexReg 158."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227324&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227324",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "103",
                "label": "CALCULATIONS OR TYPES OF BENEFITS"
            },
            "rule": {
                "number": "§103.10",
                "label": "Survivor Annuity"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227325&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227325",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The beneficiary of a deceased member who had accumulated at least four years of credited service in TCDRS is eligible to apply for and receive a survivor annuity as described in this section.(b) The annuity payable under this section to an individual beneficiary shall be the actuarial equivalent, as defined in Section 841.001(1) of the Government Code, of the allocated shares of the member's individual account balance and total service credit standing to the credit of the member computed as of the last day of the month preceding the member's death.(c) An individual designated as beneficiary by the member, or an individual designated as beneficiary under the Act, may elect an annuity to be paid in the form of a life annuity for the beneficiary's life but actuarially reduced to provide a guarantee that the total of all payments will equal or exceed:(1) the beneficiary's allocated share of the decedent's individual account balance; or(2) the equivalent of 120 monthly payments; or(3) the equivalent of 180 monthly payments.(d) In lieu of an annuity, the beneficiary may elect a refund of the beneficiary's allocated share of the deceased member's individual account, unless the member elected to remove the withdrawal option.(e) The annuity shall be calculated using the beneficiary's age on the last day of the month preceding the member's death and computed on the beneficiary's allocated shares of the deceased member's individual account balance and total service credit standing to the credit of the member as of the last day of the month preceding the member's death.(f) In the event that multiple persons are designated as beneficiaries by the member, the deceased member's individual account balance and total service credit shall be prorated among all beneficiaries, and each individual beneficiary may select any payment form described in subsection (c) and (d) of this section, above computed on the shares allocated to that individual. A beneficiary designated by the member or designated under the Act that is not an individual will receive installment payments as described in Subsection (g) of this section.(g) A designated beneficiary that is not an individual shall receive an amount equal to the allocated shares of the member's individual account balance and total service credit standing to the credit of the member as of the last day of the month preceding the member's death. The Board authorizes the Director, subject to the determination made in Subsection (k) of this section, to cause the amount to be paid in up to sixty (60) monthly installments, with the final payment made on or before the last day of the calendar year containing the fifth anniversary of the member's death. Notwithstanding Subsection (j) of this section, interest shall accrue on unpaid amounts at the rate provided under the plan beginning from the last day of the month in which all necessary documents and applications have been filed with and approved by TCDRS. A distribution payable under this subsection is not considered to be a service retirement and therefore is not subject to the immediate transfer requirements of Section 845.316 of the Government Code.(h) A trustee of a trust having a single primary beneficiary may elect with TCDRS that the beneficiary of the trust be considered as a named beneficiary for purposes of selecting an annuity but such election shall be effective only if the beneficiary of the trust would be considered a named beneficiary for purposes of the rules and regulations of the Internal Revenue Code relating to required minimum distributions.(i) An individual beneficiary who dies before filing an application for benefits or who fails to file an application within 90 days following notice from TCDRS that a benefit is payable shall be deemed to have selected the life annuity with the guarantee that the total of all payments will equal or exceed the share of the deceased member's individual account balance allocable to the beneficiary. (j) No interest shall accrue on any benefit payable under this section.(k) If the Director determines that the payment under Subsection (g) of this section, of the total accrued benefit or of the unpaid balance of the benefit as a single sum will not harm or injure the funded status of the Employer's account or jeopardize its ability to pay all benefits as benefits become due, the Board authorizes the Director to cause the distribution of the total accrued benefit or the remaining unpaid balance as the case may be, to be paid as a single sum in full satisfaction of all amounts due under the plan.(l) All distributions under this section must comply with the laws and regulations of the Internal Revenue Code.",
            "sourceNote": "Source Note: The provisions of this §103.10 adopted to be\r\neffective January 1, 2008, 32 TexReg 9731; amended to be effective\r\nOctober 11, 2009, 34 TexReg 7093; amended to be effective January\r\n8, 2026, 51 TexReg 158."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227325&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227325",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "103",
                "label": "CALCULATIONS OR TYPES OF BENEFITS"
            },
            "rule": {
                "number": "§103.11",
                "label": "Group Term Life Benefit Based on Extended Coverage"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227326&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227326",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A member of TCDRS who had coverage in the Group Term Life benefit program during the last month the member was required to make a contribution to TCDRS and who dies within 24 calendar months following that month, is considered to have received extended coverage in the Group Term Life benefit program provided that the member was unable to engage in gainful employment or was on leave of absence under the Family and Medical Leave Act of 1993 (\"the FMLA\") throughout the period beginning with the date of the member's last required contribution and ending on the date of the member's death.(b) The person making the claim for payment of a Group Term Life benefit based on extended coverage has the burden of establishing that the deceased member was unable to engage in gainful employment or was on leave under the FMLA throughout the entire period of extended coverage, and the claimant must provide evidence satisfactory to TCDRS.(c) The following are examples of documents relating to the member that may assist the claimant in meeting this burden of proof:(1) copy of the decedent's death certificate;(2) certified statements of attending physicians;(3) certified statements of caregivers and custodians;(4) certified statements of Employers regarding absences under the FMLA;(5) certified statements of individuals having personal knowledge of the decedent's education, training and work experience; (6) copies of the decedent's tax returns covering the period of extended coverage;(7) findings of the Social Security Administration, Workers Compensation Commission or other entities providing compensation for disability, illness or injury.(d) In its determination of a claim filed under this section, TCDRS may consider whether the impairment or incapacity affecting the decedent's ability to engage in gainful employment could have been safely diminished by the decedent with reasonable effort to the extent that the decedent would have been able to engage in gainful employment.",
            "sourceNote": "Source Note: The provisions of this §103.11 adopted to be\r\neffective January 27, 2000, 25 TexReg 390; amended to be effective\r\nJanuary 6, 2002, 26 TexReg 11036; amended to be effective December\r\n30, 2012, 37 TexReg 10249; amended to be effective January 8, 2026,\r\n51 TexReg 158."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227326&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227326",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "105",
                "label": "CREDITABLE SERVICE"
            },
            "rule": {
                "number": "§105.1",
                "label": "Persons Employed by Multiple Employers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227327&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227327",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Any person who is concurrently employed by two or more participating Employers shall be considered a covered employee of each.(b) Each employee-member shall make monthly employee contributions at the rate specified in the participation order of the particular Employer upon all compensation paid that person by such Employer. Each Employer shall withhold the employee contributions required on account of the compensation paid such employee by such Employer.(c) The employee-member may receive only one month of credited service for any calendar month in which covered service was performed for two or more participating Employers. When determining an employee-member's retirement eligibility with respect to an Employer, the credited service for a calendar month in which the employee-member was also performing covered service for another participating Employer shall be counted as credited service performed for the Employer, for which retirement eligibility is being determined. When determining the retirement eligibility of an employee-member with respect to both Employers simultaneously, credited service is subject to the general rules of TCDRS for recognizing and combining service among the several Employers but in no event may credited service for any calendar month be counted twice.",
            "sourceNote": "Source Note: The provisions of this §105.1 adopted to be\r\neffective July 27, 1976, 1 TexReg 1933; amended to be effective May\r\n1, 1993, 18 TexReg 2416; amended to be effective October 18, 2007,\r\n32 TexReg 7265; amended to be effective January 8, 2026, 51 TexReg\r\n158."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227327&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227327",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "105",
                "label": "CREDITABLE SERVICE"
            },
            "rule": {
                "number": "§105.2",
                "label": "Combining Credited Service with Multiple Employers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227328&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227328",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A member must satisfy the retirement eligibility requirement of the particular Employer with which the member is applying for retirement.(b) All of a member's credited service in TCDRS, as defined in Section 841.001 of the Government Code, will be combined and recognized for purposes of determining eligibility for service and disability retirements with respect to each Employer, and eligibility for the survivor annuity.(c) All credited service described in Subsection (b) will be combined with all other credited service of the member recognized under the proportionate retirement program for purposes of determining eligibility for service retirement with respect to each Employer.(d) Credited service of the member recognized under the proportionate retirement program may not be combined with the member's credited service in TCDRS, as defined in Section 841.001 of the Government Code for purposes of determining eligibility for any disability retirement or survivor annuity.(e) When combining service for purposes of determining eligibility, only one month of credited service may be recognized for any particular calendar month.",
            "sourceNote": "Source Note: The provisions of this §105.2 adopted to be\r\neffective January 1, 2008, 32 TexReg 9732; amended to be effective\r\nJanuary 8, 2026, 51 TexReg 158."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227328&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227328",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "105",
                "label": "CREDITABLE SERVICE"
            },
            "rule": {
                "number": "§105.3",
                "label": "Credited Service for Active Duty Qualified Military Service"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227329&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227329",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In this section:(1) The term \"credited service\" means membership service for determining retirement eligibility only. Member contributions and monetary credits are not required or permitted with respect to credited service for qualified military service.(2) The term \"eligible member\" means a member of an Employer who has established credited service in TCDRS for at least the minimum period required to receive a service retirement annuity from the Employer at age 60, who has performed active duty qualified military service, and who has been released from military duty under honorable conditions.(3) The term \"qualified military service\" means active duty service in the uniformed services as defined in 38 U.S.C. Section 4303(13). It excludes that service which was performed in a month for which the member has received credited service in TCDRS under any other provision of the TCDRS Act or the Uniformed Services Employment and Reemployments Rights Act of 1994, and that service, credited by another retirement system, that is recognized by TCDRS under the proportionate retirement program. A member may not be credited with more than one month of service for any calendar month.(b) Subject to the limitations in Subsection (a), an eligible member may receive one month of credited service in TCDRS for each month of qualified military service performed while on active duty. An eligible member may not establish more than 60 months of credited service in TCDRS for qualified military service under this section.",
            "sourceNote": "Source Note: The provisions of this §105.3 adopted to be\r\neffective April 9, 2000, 25 TexReg 3057; amended to be effective January\r\n1, 2006, 30 TexReg 7887; amended to be effective October 18, 2007,\r\n32 TexReg 7266; amended to be effective April 17, 2008, 33 TexReg\r\n2959; amended to be effective November 26, 2013, 38 TexReg 8448; amended\r\nto be effective January 8, 2026, 51 TexReg 158."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227329&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227329",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "105",
                "label": "CREDITABLE SERVICE"
            },
            "rule": {
                "number": "§105.4",
                "label": "Credited Service Under The Uniformed Services Employment And Reemployment  Rights Act"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227330&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227330",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An eligible member may receive credited service for service in the uniformed services in accordance with the Uniformed Services Employment and Reemployment Rights Act (the USERRA) (38 U.S.C. Section 4301 et seq.). Notwithstanding any provision to the contrary, the rights and benefits of an eligible member under TCDRS shall not be less than those rights and benefits provided by the USERRA.(b) The following words and terms, when used in this section shall have the following meanings unless the context clearly indicates otherwise.(1) Eligible member--An employee of a participating subdivision who is or would be considered to be employed in a position eligible for membership but who leaves employment with that subdivision to perform service in the uniformed services; whose employer was notified of the obligation or intention of the employee to perform service in the uniformed services; who is released or discharged from such service on or after December 12, 1994 under honorable conditions; whose cumulative period of service in the uniformed services with respect to that participating subdivision does not exceed five years not including periods excluded under 38 U.S.C. Section §1412(c); who applies for reemployment with that participating subdivision within 90 days of release or discharge from the uniformed services, or after recovery from an illness or injury incurred in, or aggravated during, the performance of service in the uniformed services (but such recovery period does not exceed two years); and who is reemployed by the participating subdivision.(2) Uniformed services--The Armed Forces of the United States of America; the Army National Guard and the Air National Guard when engaged in active duty for training, inactive duty training, or full-time National Guard duty; the commissioned corps of the Public Health Service; and any other category of persons designated by the President in time of war or emergency.(3) Service in the uniformed services--The performance of duty on a voluntary or involuntary basis in a uniformed service under competent authority and includes active duty, active duty for training, initial active duty for training, inactive duty training, full-time National Guard duty, and a period for which an employee is absent from a position of employment for the purpose of an examination to determine the fitness of the employee to perform such duty.(4) Participating subdivision--A subdivision that is participating in TCDRS at the time the eligible member leaves employment with the subdivision to perform service in the uniformed services; a subdivision that is not participating in TCDRS at the time the employee leaves employment with the subdivision to perform service in the uniformed services but commences participation during the period of the employee's performance of duty in a uniformed service; or a subdivision participating in TCDRS that is a successor in interest to the participating subdivision from which the eligible member left employment to perform service in the uniformed services.(c) Certification of Eligibility by Participating Subdivision. An eligible member will be credited with current service in accordance with the USERRA upon certification by the participating subdivision on forms provided by TCDRS:(1) that the eligible member's reemployment application is timely;(2) that the eligible member has not exceeded the service limitations set forth in the USERRA;(3) that the eligible member was not released or discharged from the uniformed service under other than honorable conditions;(4) of the period in which the eligible member performed service in the uniformed services;(5) that the eligible member did not receive service credit for the period of uniformed service;(6) of the estimated compensation that the eligible member would have received from the subdivision but for the period of service in the uniformed services; and(7) of the eligible member's date of reemployment.(d) Credited Service and Optional Contributions under the USERRA.(1) Provided the member has not received credited service for the same month under another provision of Government Code, Title 8, an eligible member shall be credited with one month of current service credit for each month or part of a month in which both of the following occur:(A) the eligible member performed service in the uniformed services, and(B) the participating subdivision participated in TCDRS.(2) On or before the last day of the fifth calendar year following the year in which the eligible member was reemployed, the eligible member may, but is not required to, deposit with TCDRS any or all employee contributions that would have been deposited to the member's individual account for each period during which the member performed service in the uniformed services if the eligible member had been employed with the participating subdivision during the period of uniformed service. Deposits under this provision are considered to be employee contributions made in the calendar year of deposit for purposes of employer matching and are subject to the following rules:(A) The total deposits may not exceed the amount the eligible member would have been required to contribute had the eligible member remained continuously employed by the participating subdivision throughout the period of service in the uniformed services.(B) The compensation upon which allowable deposits will be calculated is the estimated compensation that the eligible member would have received from the subdivision but for the period of service in the uniformed services.(C) For purposes of determining the months of credited service and allowable deposits, months of uniformed service and estimated compensation shall be calculated from the later of the date the eligible member entered uniformed service or the date the participating subdivision commenced participation in TCDRS.(D) Within the allowable period for making deposits and subject to the maximum total amount of deposits, an eligible member may make deposits at any time and in any amount.(E) Deposits may be paid directly to TCDRS by the eligible member or by the employer through payroll deduction. Optional deposits made under this section are employee contributions and may not be returned until the member terminates from employment with the participating employer.(F) Deposits will be allocated prospective interest only, and in the same manner as interest is allocated on member contributions to individual accounts.(G) An eligible member receiving credited service under this section for a specific month may not receive credited service for the same month under any other provision of the Government Code, Title 8.",
            "sourceNote": "Source Note: The provisions of this §105.4 adopted\r\nto be effective December 31, 1997, 22 TexReg 12539; amended to be\r\neffective January 27, 2000, 25 TexReg 390; amended to be effective\r\nOctober 18, 2007, 32 TexReg 7266; amended to be effective January\r\n8, 2026, 51 TexReg 158."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227330&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227330",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "105",
                "label": "CREDITABLE SERVICE"
            },
            "rule": {
                "number": "§105.5",
                "label": "Correction of Errors by Employers: Record Adjustments"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227331&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227331",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An Employer is responsible for the correction of an error arising from an act or omission of the Employer that results in a person contributing more or less than the correct amount to TCDRS or receiving more or less credited service, service credit or benefits than the person is rightfully entitled to receive under TCDRS.(b) If the error involves member contributions, the Employer may initiate the correction process directly via the employer portal on the TCDRS website as follows:(1) The Employer must provide identifying information for the affected member or members, the time period during which the error occurred, and the amount of the correction to member contributions submitted by the Employer. The member contributions are determined according to the employee deposit rate in effect at the time that the error occurred.(2) The Employer will also submit an employer contribution based on the sum total of the member contributions made in connection with the correction and the employer contribution rate in effect at the time that the correction is made by the Employer.(c) Depending on the nature of adjustment requested pursuant to this section, the Director may require that the application must be approved by the governing board of the Employer or by the county judge or chief operating officer of the Employer before it may be accepted by TCDRS. (d) Adjustments to service credits or benefits shall be considered as part of, and funded in the same manner as, any other pension liabilities of TCDRS.(e) A person seeking an adjustment to a record based on an act or omission of the Employer must apply to the Employer for a correction of the error. TCDRS will not receive applications for record adjustments from any person other than an Employer. If TCDRS receives information relating to a possible error from a person other than an Employer, TCDRS shall forward the information to the appropriate Employer.",
            "sourceNote": "Source Note: The provisions of this §105.5 adopted to be\r\neffective July 20, 2004, 29 TexReg 6968; amended to be effective January\r\n1, 2006, 30 TexReg 7887; amended to be effective December 30, 2012,\r\n37 TexReg 10249; amended to be effective January 31, 2017, 41 TexReg\r\n8205; amended to be effective January 3, 2019, 43 TexReg 8630; amended\r\nto be effective January 8, 2026, 51 TexReg 158."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227331&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227331",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "105",
                "label": "CREDITABLE SERVICE"
            },
            "rule": {
                "number": "§105.6",
                "label": "Calculation of Current Service Credit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227332&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227332",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as otherwise provided by law or rules established by TCDRS, TCDRS shall credit a member with one month of current service for each calendar month for which contributions are made, reported, and certified by the Employer for purposes of determining length-of-service requirements and calculating benefits.(b) Except as otherwise provided by law or rules established by TCDRS, if an elected county or precinct official who is a member declines compensation pursuant to Section 152.052 of the Local Government Code, TCDRS shall credit such member with one month of credited service for each month worked without compensation that is reported and certified by the Employer for purposes of determining length-of-service requirements, but shall not credit such member with service credit (monetary credit) for months worked without compensation for purposes of calculating benefits.",
            "sourceNote": "Source Note: The provisions of this §105.6 adopted to be\r\neffective July 22, 2013, 38 TexReg 4642; amended to be effective January\r\n8, 2026, 51 TexReg 158."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227332&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227332",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "105",
                "label": "CREDITABLE SERVICE"
            },
            "rule": {
                "number": "§105.7",
                "label": "Service Credit for Certain Public Employment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227333&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227333",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An Employer may by order authorize the establishment of credited service for service performed by employees of a governmental entity that subsequently:(1) was merged, converted, or otherwise transferred into the Employer; or(2) transferred the employment of the employees to the Employer.(b) A member eligible for credited service under this section pursuant to an order adopted under Subsection (a) is one who was employed by a governmental entity on the date that the governmental entity was merged, converted or otherwise transferred into the Employer or the date that such member's employment was transferred to the Employer.(c) If a member is eligible for proportionate service under Chapter 803 of the Government Code for the service for the governmental entity described by Subsection (a), then no additional credited service is available under this section.",
            "sourceNote": "Source Note: The provisions of this §105.7 adopted to be\r\neffective October 23, 2016, 41 TexReg 8205; amended to be effective\r\nJanuary 8, 2026, 51 TexReg 158."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227333&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227333",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "105",
                "label": "CREDITABLE SERVICE"
            },
            "rule": {
                "number": "§105.8",
                "label": "Employee Termination Date"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227334&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227334",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "An Employer must submit the date of termination of employment for each member who is enrolled in TCDRS. The termination date should be submitted to TCDRS as soon as practicable after the member's termination of employment.",
            "sourceNote": "Source Note: The provisions of this §105.8 adopted to be\r\neffective January 31, 2017, 41 TexReg 8205; amended to be effective\r\nJanuary 8, 2026, 51 TexReg 158."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227334&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227334",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "105",
                "label": "CREDITABLE SERVICE"
            },
            "rule": {
                "number": "§105.9",
                "label": "Notice By Employer of Certain Felony Convictions of Elected or  Appointed Officers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227335&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227335",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) An Employer must provide written notice on a form prescribed by TCDRS of the conviction of any member of TCDRS who was elected or appointed to a public office of the Employer and who is convicted of a qualifying felony committed while in office and arising directly from the official duties of that office.(b) \"Qualifying felony\" means any felony that is committed on or after June 6, 2017 involving one or more of the following:(1) bribery;(2) embezzlement, extortion, or other theft of public money;(3) perjury;(4) coercion of public servant or voter;(5) tampering with governmental record;(6) misuse of official information;(7) conspiracy or the attempt to commit any of the offenses described in paragraphs (1) - (6) of this subsection; or(8) abuse of official capacity.(c) An Employer must provide the notice required by Subsection (a) to TCDRS no later than the 30th day after the conviction of the member.(d) The notice should be on a form prescribed by TCDRS and must:(1) clearly state the convicted member's name, title of public office, date of conviction, court of jurisdiction, case number, qualifying felony violation, date of offense, and an explanation of the connection of the qualifying felony to the member's performance of his or her official duties;(2) include a copy of the official conviction of the member entered by court, including the judge's affirmative finding of fact that the member is an elected or appointed holder of a public office of the Employer who committed a qualifying felony while in office and in the course of performing official duties of the office; and(3) if applicable, include a copy of the court's award of all or a portion of the member's service retirement annuity to the member's spouse pursuant to a just and right division upon the member's conviction or pursuant to a written agreement between the spouses entered into prior to the member's conviction as provided by Subchapter B, Family Code.",
            "sourceNote": "Source Note: The provisions of this §105.9 adopted\r\nto be effective January 10, 2018, 43 TexReg 94; amended to be effective\r\nJanuary 8, 2026, 51 TexReg 158."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227335&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227335",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "105",
                "label": "CREDITABLE SERVICE"
            },
            "rule": {
                "number": "§105.41",
                "label": "Credited Service and Survivor Benefits Under the Heroes Earnings  Assistance and Relief Tax Act of 2008 (HEART Act)"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227337&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227337",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In accordance with Section 401(a)(37) of the Internal Revenue Code (Section 104(a) of the HEART Act), the survivors of a member who dies after December 31, 2006, while performing qualified military service under the USERRA, are entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service) that would have been provided under the employer's plan had the member resumed employment and then terminated employment on account of death.(b) A deceased member described above will receive credited service for the period of the deceased member's qualified military service for purposes of determining eligibility for a Survivor Annuity in accordance with Section 844.407 of the Government Code (but such period of qualified military service will not increase the deceased member's accrued benefit used to determine the amount of any survivor annuity for which the deceased member's survivors may or may not be eligible).(c) A deceased member described above will be included in the coverage of any Member Optional Group Term Life Program elected by the employer under Section 842.004 of the Government Code, with the death benefit based on the annualized regular rate of pay or regular salary paid the member in accordance with Section 844.503(c) of the Government Code during the most recent pay period of active employment prior to the commencement of qualified military service.(d) TCDRS does not adopt the permissive provisions of Section 104(b) of the HEART Act, as added by Section 414(u)(9) of the Internal Revenue Code relating to benefit accruals. However, pursuant to the authority granted the Board by Section 845.102 of the Government Code), and in conformance with 26 CFR Section 1.401(a)(4)-11(d)(3) relating to rules for imputing military service and periods of disability as credited service, any member who, after December 31, 2006, becomes disabled (based on the criteria set forth in subparagraphs (A) and (B) of Section 844.303(b)(2) of the Government Code) while performing the member's qualified military service under the USERRA, is entitled to credited service in TCDRS for the period of qualified military service under the USERRA. However, such period of qualified military service will not increase the disabled member's accrued benefit used to determine the amount of any service, disability or survivor annuity for which the member or the member's survivors may or may not become eligible. The disabled member will be included in the coverage of any Member Optional Group Term Life program elected by the Employer under Section 842.004 of the Government Code and not terminated and will, subject to Section 844.502 of the Government Code, be eligible to receive extended coverage during the two years following the onset of disability, provided that sufficient evidence of the member's continuous disability and its date of onset is submitted to TCDRS on application for a death benefit based on the disabled member's compensation described in Subsection (c).(e) In accordance with Section 414(u)(12) of the Internal Revenue Code (Section 105(b) of the HEART Act), and effective as of January 1, 2009, amounts received by a member as a \"differential wage payment\" (within the meaning of the Internal Revenue Code) for any period that such member is not performing services for the employer by reason of qualified military service will be treated as \"compensation\" for purposes of benefit accruals under the Act and will be treated as compensation for purposes of the Internal Revenue Code to the extent so required.",
            "sourceNote": "Source Note: The provisions of this §105.41 adopted to be\r\neffective October 10, 2011, 36 TexReg 6769; amended to be effective\r\nJanuary 8, 2026, 51 TexReg 158."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227337&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227337",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "107",
                "label": "MISCELLANEOUS RULES"
            },
            "rule": {
                "number": "§107.1",
                "label": "Payments by Members to Purchase Forfeited Benefits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227338&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227338",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Pursuant to Section 843.0031 of the Government Code, a member who has withdrawn accumulated contributions from TCDRS and is a contributing member with another participating Employer or again becomes a contributing member with any participating Employer may at any time before retirement pay to TCDRS for deposit to the member's individual account a lump-sum in any amount that does not exceed the amount withdrawn plus an amount equal to the Employer matching on the withdrawn amount that is applicable for the year the account is reinstated, which TCDRS deems as satisfying the requirements under Section 843.0031 of the Government Code.(b) An amount paid under subsection (a) of this section will be deposited to the member's individual account as accumulated contributions and credited with interest as allowed by Government Code, Title 8, Subtitle F.(c) The amount paid under subsection (a) of this section together with all accumulated interest attributable to that amount is not subject to Employer matching.",
            "sourceNote": "Source Note: The provisions of this §107.1 adopted to be\r\neffective January 8, 2026, 51 TexReg 159."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227338&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227338",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "107",
                "label": "MISCELLANEOUS RULES"
            },
            "rule": {
                "number": "§107.2",
                "label": "Direct Rollovers from TCDRS and Trustee-to-Trustee Transfers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227339&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227339",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) TCDRS shall permit a distributee of an eligible rollover distribution to elect, at the time and in the manner prescribed by TCDRS, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.(b) Definitions:(1) Eligible Rollover Distribution--An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, excluding any portion of the distribution that includes after tax contributions that are includible in gross income, except that an eligible rollover distribution does not include:(A) any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee (annuity payments);(B) any distribution to the extent such distribution is required under Section 401(a)(9) of the Internal Revenue Code (required minimum distribution).(2) Eligible Retirement Plan--An eligible retirement plan includes individual retirement accounts and retirement plans authorized under federal law including:(A) an individual retirement account described in §408(a) of the Internal Revenue Code of 1986;(B) an individual retirement annuity described in §408(b) of the Internal Revenue Code of 1986;(C) a qualified trust described in §401(a) of the Internal Revenue Code of 1986 or an annuity plan described in §403(a) of the Internal Revenue Code of 1986 that accepts the eligible rollover distribution;(D) for distribution made on or after December 31, 2001, an annuity contract described in §403(b) of the Internal Revenue Code of 1986;(E) for distributions made on or after December 31, 2001, an eligible plan under §457(b) of the Internal Revenue Code of 1986 which is maintained by a state, a political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state which agrees to separately account for amounts transferred into such plan from this system; and(F) for distributions made on or after December 31, 2007, a Roth IRA described in §408A of the Internal Revenue Code of 1986;(3) Distributee--A distributee includes a member or former member. In addition, the member's or former member's surviving spouse and the member's or former member's spouse or former spouse who is the alternate payee under a domestic relations order, as defined in §109.2 of this title (relating to Definitions), are distributees with regard to the interest of the spouse or former spouse.(4) Direct Rollover--A direct rollover is a payment by the system to the eligible retirement plan specified by the distributee. (c) The system shall, upon the request of a beneficiary of a deceased member who is not a distributee, within the meaning of subsection (c)(3) of this section, transfer a lump sum distribution to the trustee of an individual retirement account established under §408 of the Internal Revenue Code of 1986 (or for distributions after December 31, 2009, to the trustee of an individual retirement account established under § 408A of the Internal Revenue Code of 1986) in accordance with the provisions of §402(c)(11) of the Internal Revenue Code.(d) Notwithstanding anything in this section to the contrary, a distribution shall not fail to be an eligible rollover distribution merely because a portion of the distribution consists of after-tax contributions which are not includible in gross income. However, such portion may be paid only to an individual retirement account or annuity described in Internal Revenue Code §408(a) or (b), or to a qualified plan described in Internal Revenue Code §401(a) or §403(a) that agrees to separately account for amounts so transferred, including separate accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible.(e) It is the responsibility of the distributee to determine that the retirement plan selected to receive the direct rollover is an eligible plan pursuant to this rule.(f) TCDRS shall implement this section in a manner that causes TCDRS to be considered a qualified plan under Section 401(a) of the Internal Revenue Code.",
            "sourceNote": "Source Note: The provisions of this §107.2 adopted to be\r\neffective January 8, 2026, 51 TexReg 159."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227339&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227339",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "107",
                "label": "MISCELLANEOUS RULES"
            },
            "rule": {
                "number": "§107.3",
                "label": "Bona Fide Termination of Employment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227340&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227340",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Distributions without a bona fide termination of employment are prohibited under Sections 842.110(a) and (b) of the Government Code. A distribution of benefits to a member before there has been a bona fide termination of employment under Section 842.110(a) Government Code, is an in-service distribution and an operational error which could lead to a plan disqualification under the Internal Revenue Code and results in the assessment of taxes, back taxes, interest and penalties against the subdivision and its participants.(b) The term \"employment\" under Section 842.110(a) of the Government Code includes service as an employee and service as an appointed or elected official.(c) A person who is employed by, or holds an elected or appointed position or office with an Employer is in active employment and is not separated from service for purposes of retirement eligibility and is not eligible to receive a distribution of benefits with respect to the Employer before a complete and bona fide termination of employment occurs. A member who has experienced a bona fide termination of employment is an inactive member.(d) Whether a termination of employment is a bona fide termination is dependent on the facts and circumstances surrounding the termination.(e) A termination is not a bona fide termination if there has not been a complete termination and severance of the employer-employee relationship. Failure to strictly follow the Employer's termination policies, practices, processes and procedures regularly followed by the Employer suggests that the termination was not bona fide.(f) A termination is not a bona fide termination merely because the period of separation of employment from the Employer, or separation from service from elected or appointed office, is greater than one calendar month. The statutory requirement of a break in service of at least one calendar month is a further limitation upon the eligibility of a reemployed person to have received a distribution and is in addition to, and not in lieu of, the requirement that the termination of employment must be a bona fide termination of employment.(g) Notwithstanding strict adherence to the Employer's regular employment termination polices, practices, processes and procedures or any other facts and circumstances, a termination is not a bona fide termination of employment if at the time of termination there is an expectation, understanding or agreement, whether express or implied, between the Employer or employee, or an agent of either, that the termination is or will be temporary or that the person will be rehired in the future, whether such rehire is:(1) for the same position or a different position;(2) at a greater, lesser, or equivalent level of compensation; (3) in the same or any other division or department of the Employer;(4) as a full-time, part-time or temporary employee; or(5) as an independent contractor performing essentially the same services that the individual was performing as an employee.",
            "sourceNote": "Source Note: The provisions of this §107.3 adopted\r\nto be effective January 8, 2026, 51 TexReg 159."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227340&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227340",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "107",
                "label": "MISCELLANEOUS RULES"
            },
            "rule": {
                "number": "§107.4",
                "label": "No Cancellation of Valid Withdrawal Application"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227341&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227341",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Once a valid withdrawal application is submitted to TCDRS, it may not be cancelled.",
            "sourceNote": "Source Note: The provisions of this §107.4 adopted to be\r\neffective January 8, 2026, 51 TexReg 159."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227341&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227341",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "107",
                "label": "MISCELLANEOUS RULES"
            },
            "rule": {
                "number": "§107.5",
                "label": "Electronic Transfer of Funds Relating to Employers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227342&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227342",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In this section:(1) The term \"ACH\" (Automated Clearing House) means the legal framework of rules and operational procedures adopted by financial institutions for the electronic transfer of funds.(2) The term \"ACH Credit\" means an ACH transaction initiated by an Employer for the electronic transfer of funds from the account of an Employer to the account of TCDRS.(3) The term \"ACH Debit\" means an ACH transaction initiated by TCDRS for the electronic transfer of funds from the account of an Employer to the account of TCDRS.(4) The term \"electronic transfer of funds\" means the transfer of funds, other than by check, draft or similar paper instrument, that is initiated electronically to order, instruct, or authorize a financial institution to debit or to credit an account. Amounts sent to TCDRS by electronic transfer of funds are received on the date the funds are credited to TCDRS's account.(5) The term \"pre-authorized direct debit\" means the method available to an Employer for electronically paying required contributions by granting a continuing authorization to TCDRS to initiate an ACH Debit each month for the electronic transfer of funds from the designated bank account of the Employer to the account of TCDRS in an amount equal to the contributions required to be paid based on the monthly report as filed.(6) The term \"wire transfer\" generally means a single transaction, initiated by an Employer, in which funds are electronically transferred to the account of TCDRS using the Federal Reserve Banking System rather than the ACH.(b) Monthly amounts required to be contributed to TCDRS in accordance with Chapter 845 of the Texas Government Code must be made by pre-authorized direct debits (ACH Debits), ACH Credits, or wire transfers.(c) An Employer may elect to use the pre-authorized direct debit method of payment by filing a signed authorization agreement with TCDRS in which the Employer has designated a single bank account from which all transfers will be made.(1) The authorization agreement entered into for this purpose constitutes continuing authority for TCDRS to initiate a direct debit of the Employer's designated bank account each month and shall be effective with respect to each payroll of the Employer.(2) An authorization agreement shall remain in effect until TCDRS receives a valid new written agreement that designates a different bank account. A new authorization agreement must be filed if there is any change in the designated bank account. TCDRS, in its sole discretion, may terminate the authorization agreement by sending written notice to the Employer. Thereafter, the Employer must remit all contributions by ACH Credit or wire transfer.(3) Following receipt of a payroll report filed under an unrevoked authorization agreement, TCDRS will initiate an ACH Debit in the amount required to be contributed for that month based on the report; however the actual transfer of funds from the Employer's designated account will not occur prior to the due date of the report.(4) An Employer that timely files payroll reports with TCDRS is considered to have submitted their required contributions provided that there are sufficient funds available for transfer from the Employer's designated account on the later of the due date of the report or the date the report is received. An ACH Debit that is reversed by an Employer or that fails because sufficient funds are not available for transfer constitutes non-payment of the required contributions with respect to that monthly report and, thereafter, such required contributions will not be considered to have been received until the day the funds are actually credited to the account of TCDRS.(d) An Employer failing to timely file the required information or remit the required contributions by the due date of the report is subject to a penalty for late reporting in accordance with Section 845.407 of the Government Code (relating to Penalty for Late Contributions).",
            "sourceNote": "Source Note: The provisions of this §107.5 adopted to be\r\neffective January 8, 2026, 51 TexReg 159."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227342&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227342",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "107",
                "label": "MISCELLANEOUS RULES"
            },
            "rule": {
                "number": "§107.6",
                "label": "Treatment of Ineligible Benefit Payments"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227343&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227343",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In this section the term \"ineligible benefit payment\" means that portion of a payment or distribution, other than a Group Term Life benefit payment, made by TCDRS to, or on behalf of, a living or deceased person who was not legally entitled to the payment at the time it was made. An ineligible benefit payment is a receivable of TCDRS.(b) In this section the term \"recipient\" means the person or persons who, directly or indirectly, received an ineligible benefit payment.(c) If a repayment of an ineligible benefit payment issued from the Pension Trust Fund as described in Section 845.305(b) of the Government Code is not received by TCDRS, TCDRS may offset the amount of the ineligible benefit payment against benefit payments from the Pension Trust Fund otherwise due the recipient.(d) If the Director determines that an ineligible benefit payment issued from the Pension Trust Fund as described in Section 845.305(b) of the Government Code is not recoverable, the receivable shall be charged against the general reserves account of the endowment fund provided the ineligible benefit payment was not the result of an error or omission of a participating Employer. If the Director determines that an ineligible benefit payment made from the Group Term Life Fund is not recoverable, the receivable shall be charged against the Group Term Life Fund.(e) If the Director determines that the ineligible benefit payment issued from the Pension Trust Fund was the result of an error or omission of a participating Employer and determines that the payment is not recoverable, the receivable shall be charged against the Employer's account in the Employer's accumulation fund.(f) In making his or her determination, the Director may consider the amount of the ineligible benefit payment, the likelihood of repayment, the costs of recovery, and any other fact or circumstance which the Director considers to be relevant in finding that further efforts for the recovery of the payment are not in the best interests of TCDRS, its members and annuitants.",
            "sourceNote": "Source Note: The provisions of this §107.6 adopted to be\r\neffective January 8, 2026, 51 TexReg 159."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227343&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227343",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "107",
                "label": "MISCELLANEOUS RULES"
            },
            "rule": {
                "number": "§107.7",
                "label": "Payments Due or Suspended on Death of Person Entitled to Benefit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227344&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227344",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Payments that are due a deceased person entitled to a TCDRS benefit and have not been made, or have been made but are not negotiable after the person's death are payable to the valid surviving beneficiary of the person on file with TCDRS on the date of the person's death. If there is no surviving beneficiary, the payments are payable to the person's spouse. If there is no surviving spouse, the payments are payable to the executor or administrator of the person's estate.(b) If the total value of the payments described above is not more than $10,000, and there is no surviving beneficiary or spouse (or diligent efforts by TCDRS to discover, locate and correspond with a surviving beneficiary or spouse have proven fruitless); and no petition for the appointment of an administrator or executor is pending or has been granted, and a small estates affidavit has not been filed with TCDRS, then upon application, TCDRS may, but is not required to, issue payment (including any optional group term life benefit), in trust to a relative of the decedent who would have a right of inheritance assuming the decedent had died intestate without relatives of a closer degree.",
            "sourceNote": "Source Note: The provisions of this §107.7 adopted to be\r\neffective January 8, 2026, 51 TexReg 159."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227344&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227344",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "107",
                "label": "MISCELLANEOUS RULES"
            },
            "rule": {
                "number": "§107.8",
                "label": "Acceptance of Rollovers and Transfers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227345&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227345",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If permitted under and subject to the provisions of federal law, TCDRS may accept an eligible rollover distribution from another eligible retirement plan in payment of all or a portion of any deposit a member is permitted under applicable law to make with TCDRS for service credit.(b) If permitted under and subject to the provisions of federal law, TCDRS may accept a direct trustee-to-trustee transfer of funds from a plan described under Section 403(b) or Section 457(b) of the Internal Revenue Code in payment of all or a portion of any deposit a member is permitted to make with TCDRS for service credit.(c) In order to authorize the rollover or transfer of funds described in this section, a member shall provide or cause to be provided to TCDRS information sufficient for TCDRS in its sole discretion to reasonably conclude that the contribution is a valid rollover or direct trustee-to-trustee transfer as permitted under federal tax law. If TCDRS later determines that a contribution was an invalid rollover or direct trustee-to-trustee transfer or otherwise not permitted under federal tax law, TCDRS may take any action appropriate, permissible or required by the Internal Revenue Code or regulations issued thereunder, including return of the invalid contribution and, if applicable, any earnings attributed thereto to the member within a reasonable time after the determination and cancellation of any credit purchased with the returned amounts.(d) TCDRS shall construe and administer this section in a manner such that the plan will be considered a qualified plan under Section 401(a) of the Internal Revenue Code, (United States Code, Title 26, §401).",
            "sourceNote": "Source Note: The provisions of this §107.8 adopted to be\r\neffective January 8, 2026, 51 TexReg 159."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227345&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227345",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "107",
                "label": "MISCELLANEOUS RULES"
            },
            "rule": {
                "number": "§107.9",
                "label": "Annual Allocation of Net Investment Income or Loss"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227346&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227346",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "In accordance with the allocations prescribed in Section 845.315(a) of the Government Code, and pursuant to Section 845.315(a)(5), as of December 31 of each year, the Board shall allocate to the accounts of Employers positive or negative amounts as determined by the Board, to the January balances of that year. The allocation rule prescribed by this section shall not apply to the Employers described in Sections 845.315(a)(6) and (b) of the Government Code.",
            "sourceNote": "Source Note: The provisions of this §107.9 adopted to be\r\neffective January 8, 2026, 51 TexReg 159."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227346&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227346",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "109",
                "label": "DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§109.1",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227347&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227347",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Accumulated contributions--The contributions, other member deposits, and interest credited to a member's individual account in the employees saving fund. Accumulated contributions do not include employer matching or any employer-provided credits.(2) Actuarial present value--The value of a benefit that, as computed by TCDRS in its sole discretion, is consistent with Section 841.001(1) of the Government Code.(3) Alternate payee--A spouse, former spouse, child, or other dependent of a member or retiree who is recognized by a domestic relations order as having a right to receive all or a portion of the benefits payable by TCDRS with respect to such member or retiree. The alternate payee's information is subject to the confidentiality provisions in Section 845.115 of the Government Code.(4) Benefits--Any of the payments or benefits described in Section 109.12.(5) Domestic relations order--Any judgment, decree, or order (including one which approves a property settlement agreement) which:(A) relates to the provision of child support, temporary support, or marital property rights to a spouse, former spouse, child, or other dependent of a member or former member of TCDRS; and(B) is made pursuant to the Texas Family Code or any other applicable domestic relations or community property law.(6) Participant--A member, former member of TCDRS who has sums of money on deposit with TCDRS or who is or may become entitled to receive any benefit from TCDRS based on membership in TCDRS, or a former member TCDRS who has commenced receiving a monthly benefit from TCDRS.(7) Parties--The participant and all alternate payees named in a domestic relations order.(8) Vested--A participant is vested when he or she has earned the right to receive a lifetime monthly benefit in the future under the terms of the Plan.",
            "sourceNote": "Source Note: The provisions of this §109.1 adopted\r\nto be effective January 8, 2026, 51 TexReg 160."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227347&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227347",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "109",
                "label": "DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§109.2",
                "label": "Notice Regarding Receipt of Order"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227348&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227348",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Upon receiving a domestic relations order, TCDRS shall promptly send a notice to those persons listed in paragraphs (1) and (2) of this section, stating that TCDRS has received the domestic relations order and that it will be acted upon by TCDRS in accordance with the procedures set forth in this chapter. The persons who are to receive the notice are:(1) the participant or, if the participant is represented by an attorney (and TCDRS has been provided with the name and address of such attorney in connection with the domestic relations order), to such attorney or to such other person as may be designated in writing by the participant with regard to the domestic relations order; and(2) all alternate payees named in the domestic relations order if their names and addresses are provided in the order; or, if an alternate payee is represented by an attorney (and TCDRS has been provided with the name and address of such attorney in connection with the domestic relations order), to such attorney or to such other person as may be designated in writing by an alternate payee with regard to the domestic relations order.",
            "sourceNote": "Source Note: The provisions of this §109.2 adopted\r\nto be effective January 8, 2026, 51 TexReg 160."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227348&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227348",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "109",
                "label": "DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§109.3",
                "label": "Requirements for Qualified Domestic Relations Orders"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227349&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227349",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A recital in a domestic relations order to the effect that it is a qualified domestic relations order is not sufficient to make it qualified under this chapter. To constitute an order as a qualified domestic relations order under this chapter, an order must be determined by TCDRS to meet the requirements set forth in this chapter and Section 109.5 (relating to Contents of Domestic Relations Order). In making that determination, the order itself, and any clarification order entered by a court of competent jurisdiction, and any affidavits or agreements between the parties that are filed with TCDRS may be considered.",
            "sourceNote": "Source Note: The provisions of this §109.3 adopted to be\r\neffective January 8, 2026, 51 TexReg 160."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227349&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227349",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "109",
                "label": "DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§109.4",
                "label": "Contents of Domestic Relations Order"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227350&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227350",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A domestic relations order should clearly specify:(1) the full name and address of the participant and each alternate payee covered by the order, and attached to the order must be a Statement of Confidential Information which includes their respective social security numbers, dates of birth, and other contact information;(2) the alternate payee's interest in the Plan which, in the case of an active participant, must be stated as a percent of participant's accumulated contributions that accrued during the marriage, and which includes future interest earned on the portion of accumulated contributions awarded to the alternate payee. A domestic relations order that is entered after the participant has retired under a service or disability retirement must clearly specify that the participant's annuity is divided into two single life annuities as described in Section 109.6, with one such life annuity being the alternate payee's interest in the Plan and the other life annuity being the participant's interest in the Plan; and(3) whether the order applies only to benefits under TCDRS or, if not, to what other plans the order applies, and in what manner.(b) A domestic relations order does not meet the requirements of this chapter for qualified domestic relations orders if:(1) it purports to require TCDRS to provide any type or form of benefit, or any option, not otherwise authorized under the Act;(2) it purports to require TCDRS to make any payment of any benefit or portion thereof at a time not otherwise authorized under the Act;(3) it purports to require the payment of benefits to an alternate payee which are required (or purported to be required) to be paid to another alternate payee under another order previously determined by TCDRS to be a qualified domestic relations order under this chapter (including any such order so determined on an informal basis prior to adoption of this chapter); or(4) it is worded in a manner that does not advise TCDRS (taking into account the provisions of the Act, the wording of the order, and the provisions of this chapter) in clear and unambiguous language as to what portion of the benefits that otherwise might be or become payable to the participant (or to the participant's designee or estate) are to be paid to each alternate payee under the order.",
            "sourceNote": "Source Note: The provisions of this §109.4 adopted\r\nto be effective January 8, 2026, 51 TexReg 160."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227350&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227350",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "109",
                "label": "DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§109.5",
                "label": "Approval of Order"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227351&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227351",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "If, upon receipt of a domestic relations order, TCDRS is of the opinion that it complies in all ways with the requirements for a qualified domestic relations order under this chapter, TCDRS shall so state in the notice to be sent under Section 109.3 (relating to Notice Regarding Receipt of Order).",
            "sourceNote": "Source Note: The provisions of this §109.5 adopted to be\r\neffective January 8, 2026, 51 TexReg 160."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227351&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227351",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "109",
                "label": "DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§109.6",
                "label": "Order Appearing Not To Qualify"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227352&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227352",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If, upon receipt of a domestic relations order, TCDRS is of the opinion that the order does not comply in all ways with the requirements for a qualified domestic relations order under this chapter TCDRS shall so state (in the notice to be sent under Section 109.3 (relating to Notice Regarding Receipt of Order)) and notify the parties that unless they commence action within 90 days to bring the order into compliance with the provisions of this chapter relating to qualified domestic relations orders the order will be determined not to be a qualified domestic relations order. If 60 days have elapsed and neither party has submitted documentation to TCDRS reflecting that action has been commenced to bring the order into compliance, TCDRS will again notify each party that unless documentation has been submitted to TCDRS showing that action has been commenced before the expiration of the 90-day period the order will be determined not to be a qualified domestic relations order and TCDRS will pay to the participant any sums that have been withheld up to that date, and shall thereafter make payment of benefits as if no order had been received by TCDRS.(b) If TCDRS has made an initial determination under this section that the order does not appear to qualify, TCDRS nonetheless may (but shall not be required to) pay to the participant all or any portion of any benefits to which the participant appears entitled under the order. Any benefits not paid under this subsection shall be retained by TCDRS until they are paid under one of the remaining subsections of this section.(c) In the event that, in the opinion of TCDRS, the order is subsequently brought into compliance with the requirements of this chapter for qualified domestic relations orders, TCDRS so notify the parties in writing, and TCDRS will thereafter pay the sums payable under the order in the manner set forth in the order, unless such order is subsequently set aside or modified by a court of competent jurisdiction.(d) In the event that either party has timely commenced action in accordance with Subsection (a) of this section and TCDRS determines after the expiration of 90 days from the date of the notice under Section 109.3 (relating to Notice Regarding Receipt of Order) that the order has not been brought into compliance with the requirements of this chapter for qualified domestic relations orders, the order is not a qualified domestic relations order. TCDRS shall so notify the parties in writing, and TCDRS will pay to the participant any sums that have been withheld hereunder after the expiration of six months from the date the notice under Section 109.3 (relating to Notice Regarding Receipt of Order) was provided (provided that upon good cause being shown prior to the expiration of such six-month period, the time for bringing the order into compliance may be extended for up to two additional six-month periods), and shall thereafter make payment of benefits as if no order had been received.(e) Upon receipt of a subsequent order that TCDRS determines qualifies under this chapter, TCDRS will make payment as therein described. (f) Upon the expiration of 18 months from the date the domestic relations order was received, if the issue of whether or not the order is a qualified domestic relations order has not been resolved within that period of time, TCDRS will pay to the participant all sums that have been withheld hereunder up to that date, and shall thereafter make payment of benefits as if no order had been received by TCDRS.(g) In accordance with Section 841.009 of the Government Code, neither TCDRS nor any officials to TCDRS shall be liable for making any payment under this section.",
            "sourceNote": "Source Note: The provisions of this §109.6 adopted to be\r\neffective January 8, 2026, 51 TexReg 160."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227352&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227352",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "109",
                "label": "DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§109.7",
                "label": "Payments to Alternate Payees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227353&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227353",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) At any time after a pre-retirement qualified domestic relations order is filed and approved by TCDRS the alternate payee may withdraw in a lump sum the accumulated contributions attributable to the interest awarded to the alternate payee by the qualified domestic relations order. By withdrawing contributions, the alternate payee forfeits all employer-provided credits and the right to commence a life annuity or any other benefit.(b) The alternate payee may commence a life annuity calculated in accordance with the terms of the Plan and based on the interest awarded in a pre-retirement qualified domestic relations order to such alternate payee at such time when the participant:(1) is eligible to retire;(2) commences a disability retirement;(3) dies and was eligible for a survivor death benefit under Section 844.407 of the Government Code; or(4) has attained the age at which the participant would have been eligible to retire, if the participant withdrew his or her account and was vested at the time of withdrawal.(c) An alternate payee may commence an annuity under Subsection (b)(1) even if the participant has not retired or under Subsection (b)(4) even if the participant is not eligible for an annuity benefit.(d) If the participant dies before commencing a benefit, and the participant was eligible for a survivor annuity under Section 844.407 of the Government Code, then the alternate payee may commence an annuity under Subsection (b)(3) or withdraw the accumulated contributions awarded under the qualified domestic relations order.(e) The alternate payee must commence a distribution when the participant attains the required minimum distribution age under federal law. If the participant is still a depositing member and not vested, then the alternate payee is not required to commence an annuity or take a withdrawal. If the participant is vested when a mandatory distribution is required, the alternate payee is eligible for an annuity benefit.(f) If the alternate payee dies before commencing a benefit, and the participant is eligible for a survivor annuity benefit under Section 844.407 of the Government Code or has commenced a disability retirement, then the alternate payee's beneficiary must commence a survivor annuity pursuant to Section 844.407 that is actuarially equivalent to the deceased alternate payee's benefit awarded under the qualified domestic relations order.(g) If the alternate payee dies before commencing a benefit and the participant is not eligible for a survivor benefit under Section 844.407 of the Government Code, then the alternate payee's beneficiary is eligible for a benefit equal to the accumulated contributions awarded to the alternate payee at the time of the alternate payee's death.(h) If the alternate payee dies after commencing a life annuity, then the alternate payee's beneficiary may be eligible for a lump sum payment equal to the difference of the aggregate annuity payments made to the alternate payee, less the accumulated contributions associated with the interest awarded to the alternate payee, if any. If no valid beneficiary exists, or if the alternate payee dies without having a designated valid beneficiary, the benefit that would have otherwise been payable to the beneficiary of the deceased alternate payee is payable to the deceased alternate payee's surviving spouse, or if no surviving spouse, to the deceased alternate payee's estate.(i) Subsections (a) - (h) of this section will apply to all pre-retirement domestic relations orders approved in accordance with this chapter after January 1, 2018, and to such domestic relations orders approved prior to that date that are construed to provide for such an annuity or withdrawal.(j) If a qualified domestic relations order is received by TCDRS after the participant begins receiving a retirement annuity, TCDRS shall divide the annuity into two single life annuities; one payable to the alternate payee and the other payable to the participant in accordance with the order and the rules of the Plan. TCDRS shall compute the two single life annuities by determining the actuarial present value of participant's current annuity as of the date that TCDRS has approved the order, and creating an annuity payable to the alternate payee based on the actuarial present value of participant's current annuity awarded under the order to the alternate payee and creating a second life annuity payable to participant based on the remaining actuarial present value of participant's current annuity. Payments to the participant and to the alternate payee cease upon their respective deaths.(k) If a qualified domestic relations order is received by TCDRS after the participant begins receiving a retirement annuity under which the participant chose a dual life option, or a guaranteed term option and the term has not expired, and designated a person other than the alternate payee as beneficiary, then TCDRS, in computing the two single life annuities to be paid to the participant and the alternate payee respectively, shall first calculate the actuarial present value of the participant's current annuity that is not attributable to the beneficiary as of the date that TCDRS has approved the order. The interest of the beneficiary in the participant's current retirement annuity will not be affected by the division of benefits. The actuarial present value of the participant's current annuity that is not attributed to the beneficiary is then divided into two single life annuities. The single life annuity payable to the alternate payee is based on the actuarial present value of the participant's current annuity not attributable to the beneficiary awarded under the order to the alternate payee, and the participant's single life annuity is computed based on the remaining actuarial present value of the participant's current annuity not attributable to the beneficiary.(l) The mortality assumption for alternate payees for determining the actuarial equivalent of a benefit payable to an alternate payee shall be the same as the mortality assumption for beneficiaries as set forth in §103.1 of this title (relating to Actuarial Tables) with regard to service retirements.(m) If the participant's employer grants a cost of living adjustment pursuant to the terms of the Plan, and if the alternate payee has commenced an annuity, then the alternate payee is eligible to receive a cost of living adjustment to his or her annuity. (n) Notwithstanding any other provision of this chapter, all distributions made under this chapter must be determined and made in accordance with Section 401(a) of the Internal Revenue Code, including but not limited to Section 401(a)(9); and Section 415.",
            "sourceNote": "Source Note: The provisions of this §109.7 adopted to be\r\neffective January 8, 2026, 51 TexReg 160."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227353&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227353",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "109",
                "label": "DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§109.8",
                "label": "Form of Qualified Domestic Relations Order"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227354&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227354",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "TCDRS has prescribed forms that are pre-approved by TCDRS as meeting the requirements of state law for a qualified order. The prescribed forms are available on TCDRS' website, and are also available upon request. The prescribed forms incorporate by reference the provisions of this chapter. TCDRS may reject any domestic relations order submitted to TCDRS that does not utilize the applicable prescribed form.",
            "sourceNote": "Source Note: The provisions of this §109.8 adopted to be\r\neffective January 8, 2026, 51 TexReg 160."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227354&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227354",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "109",
                "label": "DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§109.9",
                "label": "Provisions Incorporated by Reference"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227355&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227355",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "An order on the form set forth in Section 109.13 (relating to Form of Qualified Domestic Relations Order) expressly incorporates all of the following by reference.(1) The order shall not be interpreted in any way to require the Plan to provide any type or form of benefit or any option not otherwise provided under the Plan.(2) The order shall not be interpreted in any way to require the Plan to provide increased benefits determined on the basis of actuarial value.(3) The order shall not be interpreted in any way to require the Plan to pay any benefits to an/any alternate payee named in the order which are required to be paid to another alternate payee under another order previously determined to be a qualified domestic relations order.(4) If the Plan provides for a reduced benefit upon \"early retirement,\" the order shall be interpreted to require that, in the event of the participant's retirement before normal retirement age, the benefits payable to the alternate payee shall be reduced in a proportionate amount.(5) The order shall not be interpreted to require the designation of a particular person as the recipient of benefits in the event of the participant's death, or to require the selection of a particular benefit payment plan or option.(6) In the event that, after the date of the order, the amount of any benefit otherwise payable to the participant is increased as a result of amendments to the law governing the Plan, alternate payee shall receive a proportionate part of such increase unless such an order would disqualify the order under the rules the Plan has adopted with regard to qualified domestic relations orders.(7) In the event that, after the date of the order, the amount of any benefit otherwise payable to the participant is reduced by law, the portion of benefits payable to alternate payee shall be reduced in a proportionate amount.(8) If, as a result of the participant's death after the date of the order, a payment is made by the Plan to the participant's estate, surviving spouse, or designated beneficiaries, which payment does not relate in any way to the participant's length of employment or accumulated contributions with the Plan, but rather is purely a death benefit payable as a result of employment or retired status at the time of death, no portion of such payment is community property, and the alternate payee shall have no interest in such death benefit.(9) If the Board of the Plan has by rule provided that, in lieu of paying an alternate payee the interest awarded by a qualified domestic relations order, the Plan may pay the alternate payee an amount that is the actuarial equivalent of an annuity payable in equal monthly installments for the life of the alternate payee, or a lump sum, then and in that event the Plan is authorized to make such a payment under the order.(10) All payments to alternate payee under the order shall terminate upon the alternate payee's death, and alternate payee's beneficiary may be entitled to a benefit under Section 109.12.(11) All benefits payable under the Plan, other than those payable to the alternate payee as provided in a qualified domestic order, shall be payable to the participant in such manner and form as the participant may elect in his/her sole and undivided discretion, subject only to the Plan requirements.(12) The alternate payee must report any retirement payments received on any applicable income tax return, and must promptly notify the Plan of any changes in the alternate payee's mailing address. The Plan is authorized to issue a Form 1099R on any direct payment made to the alternate payee.(13) The participant is designated a constructive trustee for receiving any retirement benefits under the Plan that are due to the alternate payee but paid to the participant. The participant must pay the benefit defined in this paragraph directly to the alternate payee within three days after receipt by the participant. All payments made directly to the alternate payee by the Plan shall be a credit against this order.(14) The Court retains jurisdiction to amend the order so that it will constitute a qualified domestic relations order under the Plan even though all other matters incident to this action or proceeding have been fully and finally adjudicated.",
            "sourceNote": "Source Note: The provisions of this §109.9 adopted\r\nto be effective January 8, 2026, 51 TexReg 160."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227355&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227355",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "111",
                "label": "TERMINATION OF PARTICIPATION: SUBDIVISIONS"
            },
            "rule": {
                "number": "§111.1",
                "label": "Notice of an Employer's Intent to Terminate Participation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227356&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227356",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "An Employer other than a county desiring to terminate its participation in TCDRS must provide at least 90 days advance written notice to TCDRS. The notice must include a proposed timeline that includes reasonable time for the development of a mutually developed termination agreement pursuant to Section 842.052 of the Government Code and that allows time for approval by the Board.",
            "sourceNote": "Source Note: The provisions of this §111.1 adopted to be\r\neffective January 8, 2026, 51 TexReg 160."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227356&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227356",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "111",
                "label": "TERMINATION OF PARTICIPATION: SUBDIVISIONS"
            },
            "rule": {
                "number": "§111.2",
                "label": "Notice by TCDRS to Members of Terminated Plans"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227357&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227357",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "After the Board approval of a voluntary or involuntary termination of participation under Subchapter A-1 of Chapter 842 of the Government Code, TCDRS must provide written notice to all impacted members of their rights to benefits under the terms of the termination. Notice must be issued no later than 10 business days after the Board approval of the termination.",
            "sourceNote": "Source Note: The provisions of this §111.2 adopted to be\r\neffective January 8, 2026, 51 TexReg 160."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227357&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227357",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "113",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT  SYSTEM QUALIFIED REPLACEMENT BENEFIT ARRANGEMENT"
            },
            "rule": {
                "number": "§113.1",
                "label": "Purpose"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227358&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227358",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The Board of TCDRS hereby establishes a qualified governmental excess benefit program in accordance with Section 415(m) of the Internal Revenue Code and as authorized under Section 845.504 of the Government Code. The program entitled as the \"Texas County and District Retirement System Qualified Replacement Benefit Arrangement\" is maintained solely for the purpose of providing for the payment of that portion of the annual retirement benefits that had been accrued by and would otherwise be payable with respect to a member of TCDRS but for the limitation on the payment of benefits under Section 415(b) of the Internal Revenue Code.",
            "sourceNote": "Source Note: The provisions of this §113.1 adopted to be\r\neffective January 10, 2006, 31 TexReg 171; amended to be effective\r\nJanuary 8, 2026, 51 TexReg 161."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227358&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227358",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "113",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT  SYSTEM QUALIFIED REPLACEMENT BENEFIT ARRANGEMENT"
            },
            "rule": {
                "number": "§113.2",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227359&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227359",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "When used in this chapter the following words have the following meanings.(1) Arrangement--the TCDRS Qualified Replacement Benefit Arrangement, as set forth herein and as amended from time to time.(2) Benefit Recipient--any individual who receives a retirement benefit from TCDRS as a Retiree or as a surviving beneficiary of a deceased Member or Retiree. The term may include an alternate payee of a deceased Member or Retiree.(3) Benefit--a retirement benefit accrued under the provisions of the Act.(4) Effective Date--January 1, 2006, the effective date of the Arrangement.(5) Eligible Member--a Retiree or a deceased Member or Retiree with respect to an Employer, from and after the date the Employer adopts the Arrangement.(6) Restricted Benefit--the maximum Benefit permitted to be paid to a Benefit Recipient under the Retirement Plan of the Employer, as limited by Internal Revenue Code Section 415, in accordance with Section 844.008 of the Government Code.(7) Member--any individual who accrues or has accrued a Benefit under the Act.(8) Participant--any Benefit Recipient with respect to an Employer who is eligible to participate in the Arrangement in accordance with Section 113.3 of this chapter.(9) Retiree--a Member who receives a Benefit under the Act with respect to an Employer.(10) Unrestricted Benefit--the benefit that would be payable to a Benefit Recipient under the Retirement Plan of the Employer if the limits of Section 415 of the Internal Revenue Code were not applicable in accordance with Section 844.008 of the Government Code.",
            "sourceNote": "Source Note: The provisions of this §113.2 adopted\r\nto be effective January 10, 2006, 31 TexReg 171; amended to be effective\r\nJanuary 8, 2026, 51 TexReg 161."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227359&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227359",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "113",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT  SYSTEM QUALIFIED REPLACEMENT BENEFIT ARRANGEMENT"
            },
            "rule": {
                "number": "§113.3",
                "label": "Eligibility and Payments"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227360&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227360",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Eligibility to Receive Payments. If, at the time an Eligible Member becomes a Retiree or dies or at any time thereafter, the Unrestricted Benefit of the Benefit Recipient under the Retirement Plan of the Employer exceeds the Restricted Benefit payable to the Benefit Recipient at that time, the Benefit Recipient shall become a Participant and shall be entitled to receive payments under this Arrangement, in accordance with the terms hereof, and may not waive or defer the receipt of such payments. A Benefit Recipient shall in no event become a Participant until the later of:(1) January 1, 2006, the Effective Date of the Arrangement, or (2) the effective date of the applicable Employer's adoption of the Arrangement.(b) Amount of Payments. A Participant shall receive payments under this Arrangement equal to the difference between the Participant's Unrestricted Benefit and his or her Restricted Benefit, provided that the amount of payments so determined shall be subject to change and to such adjustments as TCDRS deems appropriate, from time to time. In no event shall a Participant be entitled to receive a payment under this Arrangement if such payment, when combined with other payments under this Arrangement and under the Retirement Plan of the Employer, would result in the Participant receiving total payments in excess of the Participant's Unrestricted Benefit.(c) Form and Timing of Payments. Payments under this Arrangement shall be paid by the applicable Employer to each Participant at the time and in the form and manner as TCDRS may direct. Any election made by an Eligible Member with regard to the distribution of Benefits under TCDRS, including the designation of a named beneficiary, as defined in Section 841.001(4) of the Government Code shall be equally applicable to and binding on such Eligible Member and on all persons who at any time have or claim to have any interest in connection with payments under this Arrangement.(d) Effect on TCDRS. Any Benefit payable under the Retirement Plan of the Employer established under TCDRS shall be paid solely in accordance with the terms and provisions thereof and shall be subject to Section 415 of the Internal Revenue Code and other applicable tax limitations; nothing in this Arrangement shall operate or be construed in any way to modify, amend or affect the Benefits payable thereunder.(e) Tax Withholding. All payments under this Arrangement shall be subject to and reduced by applicable federal, state and local income, payroll and other tax withholding requirements and all other applicable deductions required by this Arrangement or by law.(f) Participation Determined Annually. Participation in the Arrangement shall be determined annually for each plan year. In any plan year, benefits shall only be paid under the Arrangement to a Participant after the date in the plan year that the benefits paid to such person from TCDRS under the Retirement Plan of the Employer have reached the maximum annual benefit that can be paid by TCDRS under Internal Revenue Code Section 415 for that plan year. The date the maximum annual benefit payment from TCDRS is reached is the beginning date of participation by the Participant for that plan year. The beginning date of a Participant's participation in the Arrangement may change from plan year to plan year as the amount payable under this Arrangement is redetermined. An individual's participation in the Arrangement will cease for any plan year or portion of a plan year for which the individual's Benefit is not limited by Internal Revenue Code Section 415.(g) No Election to Defer Compensation. No election shall be provided at any time to a Participant or any other individual, directly or indirectly, to defer compensation under the Arrangement.",
            "sourceNote": "Source Note: The provisions of this §113.3 adopted to be\r\neffective January 10, 2006, 31 TexReg 171; amended to be effective\r\nJanuary 8, 2026, 51 TexReg 161."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227360&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227360",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "113",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT  SYSTEM QUALIFIED REPLACEMENT BENEFIT ARRANGEMENT"
            },
            "rule": {
                "number": "§113.4",
                "label": "Administration"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227361&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227361",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Administrator. TCDRS shall be the Administrator of the Arrangement and shall be responsible for the supervision and control of the operation and administration of the Arrangement, except as otherwise provided herein. Subject to the authority of the Board, TCDRS shall have the exclusive right and full discretion to construe and interpret the Arrangement, to establish rules and procedures for its operation and administration, and to decide any and all questions of fact, actuarial valuation, interpretation, definition or administration arising under or in connection with the administration of the Arrangement. The interpretation and construction of any provisions of the Arrangement by the Administrator and its exercise of any discretion granted under the Arrangement shall be binding and conclusive on all persons who at any time have or claim to have any interest whatever under this Arrangement.(b) Contributions and Payments.(1) As soon as administratively feasible and before the receipt of Employer contributions, TCDRS shall calculate the portion of the Employer's contributions necessary to make the payments due to Participants of that Employer for the next payment period and for any applicable expenses under this Arrangement. Before depositing its contributions with TCDRS, the Employer shall deduct the calculated amounts and make payments directly to its Participants; and directly to TCDRS for any applicable expenses under the Arrangement. Notwithstanding the foregoing, if TCDRS determines, in its sole discretion, that the allocation of contributions to the Arrangement would jeopardize the actuarial soundness of the Retirement Plan of the Employer, TCDRS shall terminate the Arrangement and shall notify the participating Employer and Participants.(2) Amounts deducted for payments and expenses under the Arrangement shall be separately accounted for and shall be used exclusively for payments and expenses under the Arrangement.(3) The Employer from whom the Eligible Member retired or died while a Member with respect to such Employer shall be solely responsible for paying any amounts due to the Participant under the terms of the Arrangement. TCDRS shall have no obligation to pay any amounts due under the terms of the Arrangement.(4) The Employer shall be responsible for satisfying all tax withholding, payroll tax payments, other applicable tax payments and reporting requirements applicable to the Arrangement, if any, and shall be responsible for administering all payments due under the Arrangement.(c) Plan Unfunded. This Arrangement shall at all times be entirely unfunded within the meaning of the federal tax laws. Nothing contained herein shall be construed as providing for assets to be held in trust for the Participants. No Participant or any other person shall have any interest in any assets of TCDRS or any Employer by reason of the right to receive a payment under the Arrangement. Nothing contained herein shall be construed as a guarantee by TCDRS, any Employer, or any other entity or person that the assets of the Employer will be sufficient to pay any benefit hereunder.(d) Appeal Procedure. In the event a dispute arises between the Employer and the Administrator relating to the determination of the Administrator or the interpretation, operation or administration of this Arrangement, the Administrator's decision shall be final, conclusive and binding unless the Employer submits an appeal directly to the Director in accordance with Section 101.11.",
            "sourceNote": "Source Note: The provisions of this §113.4 adopted to be\r\neffective January 10, 2006, 31 TexReg 171; amended to be effective\r\nDecember 28, 2008, 33 TexReg 10505; amended to be effective January\r\n8, 2026, 51 TexReg 161."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227361&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227361",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "113",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT  SYSTEM QUALIFIED REPLACEMENT BENEFIT ARRANGEMENT"
            },
            "rule": {
                "number": "§113.5",
                "label": "Amendment and Termination"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227362&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "227362",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Amendment and Termination of the Arrangement. The Board reserves the right, in its sole discretion, to amend or terminate the Arrangement at any time and from time to time. By way of example, and not limitation, the Arrangement may be amended or terminated to eliminate all payments with respect to any Member or other individual who has not become eligible to participate in the Arrangement as of the date of such amendment or termination by reason of retirement or death in accordance with Section 113.3(a) of this chapter. In addition, an amendment or termination may be retroactive to the extent that the Board deems such action necessary, in its sole discretion, to maintain the tax-qualified status of TCDRS or the status of this Arrangement as a qualified governmental excess benefit arrangement as defined in Internal Revenue Code Section 415(m) or to avoid jeopardizing the actuarial soundness of the Retirement Plan of the Employer.(b) Termination of Employer's Participation.(1) An Employer may terminate its participation in the Arrangement at any time with the consent of and on terms established by the Administrator.(2) The Administrator may terminate the participation of an Employer if the Employer fails to comply with the rules established by the Board for the administration of the Arrangement as from time to time amended or modified, or fails to perform in accordance with the adoption agreement. The determination of an Employer's failure to comply and subsequent involuntary termination of participation is within the sole discretion and authority of the Administrator. The Administrator's decision is final, conclusive and binding unless timely appealed directly to the Board in accordance with Section 113.4(d) of this chapter.(c) Participants. If an Employer's participation in the Arrangement is voluntarily or involuntarily terminated, then any person who is a Benefit Recipient with respect to that Employer and who is a Participant in the Arrangement shall immediately cease such participation and shall be entitled to no benefits under this Arrangement and no benefits shall be paid or due to such Participant on or after the date of such termination. On the termination of an Employer in the Arrangement, the Employer shall have sole and complete responsibility and liability for paying any benefits that would otherwise be payable under the Arrangement with respect to its Participants, and TCDRS and all other participating Employers shall have no responsibility or liability for any such benefits.",
            "sourceNote": "Source Note: The provisions of this §113.5 adopted to be\r\neffective January 10, 2006, 31 TexReg 171; amended to be effective\r\nJanuary 8, 2026, 51 TexReg 161."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=227362&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "227362",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "5",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "113",
                "label": "TEXAS COUNTY AND DISTRICT RETIREMENT  SYSTEM QUALIFIED REPLACEMENT BENEFIT ARRANGEMENT"
            },
            "rule": {
                "number": "§113.6",
                "label": "General Provisions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201055&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201055",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Applicable Law.(1) All questions pertaining to the validity, construction and administration of the Arrangement shall be determined in conformity with the laws of the State of Texas, except to the extent federal law preempts state law.(2) If any provision of the Arrangement or the application thereof to any circumstance or person is invalid, the remainder of the Arrangement and the application of such provision to other circumstances or persons shall not be affected thereby.(b) Indemnification. To the extent allowed by law, an Employer electing to participate in the Arrangement must agree to indemnify, defend, and hold harmless TCDRS, the employees of TCDRS, the Board, and all other Employers participating in the Arrangement from and against any and all direct or indirect liabilities, demands, claims, losses, costs and expenses, including reasonable attorney's fees, arising out of or resulting from the Employer's participation in the Arrangement and/or the Employer's voluntary or involuntary termination of participation in the Arrangement. The agreement of the Employer to indemnify, defend and hold harmless survives the termination of the Employer's participation in the Arrangement and the termination of the Arrangement.(c) Nonalienation. Benefits under this Arrangement shall not be subject to alienation or legal process, except to the extent permitted under Government Code, Chapter 804.(d) No Enlargement of Employment Rights. The establishment of the Arrangement shall not confer any legal rights upon any employee or other person for a continuation of employment, nor shall it interfere with the rights of the Employer to discharge any employee and to treat the employee without regard to the effect which that treatment might have upon the employee as a Participant in the Arrangement.(e) Information Required By Arrangement. Benefit Recipients, other individuals and Employers shall furnish to the Administrator such evidence, data and information as the Administrator considers necessary or desirable for the purpose of administering the Arrangement.(f) Paying Benefits, Costs and Expenses from TCDRS Assets is Prohibited. No assets of TCDRS shall be used directly or indirectly to pay benefits under the Arrangement or to pay any costs or expenses of administering the Arrangement. Expenses of administering the Arrangement may include expenses for professional, legal, accounting, and other services, and other necessary or appropriate costs of administration.",
            "sourceNote": "Source Note: The provisions of this §113.6 adopted to be\r\neffective January 10, 2006, 31 TexReg 171; amended to be effective\r\nJanuary 8, 2026, 51 TexReg 161."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201055&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201055",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.1",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201056&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201056",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "As used in rules and regulations adopted by the Board of Trustees of Texas Municipal Retirement System:(1) the term \"Act\" means Subtitle G, Title 8, Texas Government Code, as amended;(2) the term \"board\" means the board of trustees of the Texas Municipal Retirement System;(3) the term \"claimant\" means any person who asserts any claim to any right or benefit under the Act;(4) the term \"director\" means the Executive Director of the Texas Municipal Retirement System;(5) the term \"medical board\" means the group of physicians designated by the board of trustees in accordance with §855.203 of the Act;(6) the term \"SOAH\" means the State Office of Administrative Hearings;(7) the term \"TMRS\" or \"system\" means the Texas Municipal Retirement System; and(8) all other words, terms, and phrases as used in such rules and regulations shall have the meaning defined in the Act, unless the context plainly indicates a different meaning.",
            "sourceNote": "Source Note: The provisions of this §121.1 adopted to be effective September 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201056&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201056",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.2",
                "label": "Scope of Rules and Application"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201057&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201057",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The rules in this chapter shall govern the procedure for the institution, conduct, and determination of all claims, complaint or other proceeding arising under or relating to the Act, and the administration of such other matters as are set forth under this Part 6 of Title 34, Administrative Code. They shall not be construed so as to enlarge, diminish, modify, or alter the jurisdiction, powers, or authority of the system or the substantive rights of any person.(b) Subject to the limitation described in subsection (a), of this section, the director is authorized to suspend, modify or grant an exception to the operation of a rule under this Part 6 of Title 34 in individual cases as equity and fairness require (in the director's sole discretion) to avoid undue hardship, where to do so will not prejudice the system or cause delay or inconvenience in its management or administration, or cause harm or injury to another party, or cause an impermissible suspension, modification, or exception to a mandatory qualification requirement under §401(a) of the Internal Revenue Code of 1986, as amended or otherwise be prohibited by law. The decision to suspend, modify or grant an exception to the operation of a rule in an individual case is within the sole and exclusive discretion of the director. Any such determination by the director to grant or deny relief is final and not appealable by any party. A determination by the director to grant relief to any party under this subsection does not create a right or privilege in any other party to an exception, suspension or modification to a rule, or excuse a failure to comply with a rule in all of its particulars.(c) No rules in this chapter or elsewhere in this Part 6 of Title 34, Administrative Code shall have the effect of waiving the sovereign (governmental) or official immunity of TMRS, or its current, former, or future trustees, officers, and/or employees.",
            "sourceNote": "Source Note: The provisions of this §121.2 adopted to be effective September 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201057&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201057",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.3",
                "label": "Filing of Documents"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201058&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201058",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All applications, beneficiary designations, administrative elections, petitions, complaints, replies, and other pleadings seeking to institute any claim, complaint, or other proceeding under the Act, or relating to any such proceeding then pending (other than one that has become a \"contested case\" under Chapter 2001 of the Texas Government Code), or seeking to exercise a right or perform an administrative action under the Act, shall be filed with the director, at the offices of the system in Austin. Such instruments shall be deemed filed only when actually received, accompanied by the filing fee, if any, required by statute or by rules of the board. For purposes of clarity and without limiting the foregoing, if a participant (as that term is defined in §855.114 of the Act) who completes and executes a beneficiary designation, or application for benefits, dies before the system receives such documentation, such application or designation will not be accepted or considered valid.(b) Subject to subsection (c) of this section, an instrument may be filed electronically in accordance with §855.115(e) of the Act and any instructions provided by the system.(c) If a proceeding becomes a \"contested case,\" documents shall thereafter be filed in accordance with §§121.12-121.25 of this title.(d) Any notice, application, designation, election, petition, complaint, reply or other pleading delivered to the system in accordance with subsections (a) or (b) of this section is deemed delivered to the board.",
            "sourceNote": "Source Note: The provisions of this §121.3 adopted to be effective September 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201058&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201058",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.4",
                "label": "Computation of Time"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201059&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201059",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Computing time. In computing any period of time prescribed or allowed by these rules, by order of the board, or by any applicable statute, the period shall begin on the day after the act, event, or default in controversy and conclude on the last day of such computed period, unless it be a Saturday, Sunday, or legal holiday, in which event the period runs until the end of the next day that is neither a Saturday, nor Sunday, nor legal holiday (as defined by §662.021 of the Texas Government Code, as amended), nor a TMRS holiday as designated on the website for the system (www.tmrs.com).(b) Extensions. Unless otherwise provided by statute, the time for filing any application or other form may be extended by order of the director, upon written motion duly filed with the director prior to the expiration of the applicable period of time for the filing of the same, showing that there is good cause for such extension of time and that the need is not caused by the neglect, indifference, or lack of diligence of the movant. A copy of any such motion shall be served upon all other parties of record to the proceeding contemporaneously with filing the motion.",
            "sourceNote": "Source Note: The provisions of this §121.4 adopted to be effective September 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201059&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201059",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.5",
                "label": "Forms and Applications for Benefits, or Asserting Other Claims"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201060&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201060",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) General. Any person who asserts any claim to any right or benefit under the Act shall file written application with the director of the system at the office of the system in Austin. Pursuant to §§855.102 and 855.201 of the Act, the board authorizes the director of the system to approve all forms required by the Act or otherwise promulgated by the director or his designee(s) for use in the administration of benefits or other operations of the system. Any form approved by the director shall satisfy any requirement of the Act that a form be approved or prescribed by the board.(b) Form, content, and signature of applications.(1) Official forms for applications for certain benefits. Official forms for use in applying for service retirement benefits, for disability retirement benefits, and for refund of accumulated contributions on terminations prior to retirement are available at and may be obtained without charge from the office of the director of the system, in Austin, upon written request; normally, such forms are also available at, and can be obtained from, the director of personnel of the participating city by which the member is or was employed, or (if no such office is maintained) from the officer in charge of payrolls for such city; and such forms may also be available on the system's website (www.tmrs.com) or on electronic portals maintained by the system (e.g., MyTMRS®). All applications which are the subject of any official form shall contain the information, statements, and supporting documents designated in that official form, and shall conform substantially to that official form.(2) Contents of applications having no official form. All applications for which no official form is prescribed shall be typewritten or printed on white paper, 8-1/2 inches wide by 11 inches long, and shall contain:(A) The name, the address, and the Social Security number or the system identification number of the party asserting the right or claim;(B) A concise statement of the facts relied on as giving rise to the right or claim asserted; and(C) A prayer stating the type of relief, action, or order desired by the applicant.(3) Applications required to be signed. All applications for retirement, for retirement benefits, or any other application or form must be personally signed by the applicant, unless there is a legal guardian, or other representative authorized by law, for the applicant, in which event the application must be signed by the guardian or other lawfully authorized representative. The director may require satisfactory proof of the authority of a representative to act for the member.(4) Confidential personal information in support of applications or other forms. Notwithstanding the requirements in any other rule in this Part 6 of Title 34 of the Texas Administrative Code, in the event confidential personal information, including, but not limited to a social security number, a taxpayer identification number, or the name or contact information for a minor, is required by a form or contained in documents filed with the system in support of the administration of benefits, and if such documents or forms must be filed in public records (including, but not limited to, court records) the director or the director's designee may accept the confidential personal information through an alternative method designed to protect the confidential personal information from public disclosure if the director or the director's designee reasonably determines the alternative method to be acceptable and provided that:(A) the alternative method is authorized by state law or court rules or approved by a court order providing for the protection of the confidential personal information; and(B) the confidential personal information is filed with TMRS.",
            "sourceNote": "Source Note: The provisions of this §121.5 adopted to be effective September 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201060&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201060",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.6",
                "label": "Time for Filing of Retirement Applications"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201061&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201061",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "All applications for retirement, whether for service or for disability, must be filed not more than 90 days prior to the date specified by the member as the effective date of his or her retirement; the date specified as the effective date for retirement must be the last day of a calendar month and may not be a date preceding the termination of the member's employment with all participating municipalities. An application is filed when it is actually received at the office of the director of the system in Austin.",
            "sourceNote": "Source Note: The provisions of this §121.6 adopted to be effectiveSeptember 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201061&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201061",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.7",
                "label": "Supporting Documents To Be Submitted"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201062&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201062",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The director is authorized to require submission of documents reasonably related to establishment of a claimed right to benefits. These documents include but are not limited to birth certificates; marriage licenses; divorce decrees; letters of guardianship; letters testamentary or letters of administration; death certificates; relevant court orders; sworn statements of witnesses and attending physicians; autopsy reports; and sworn statements of the claimant or of others having personal knowledge of relevant facts.(b) Except upon good cause being shown, failure to submit all required documents within four months of the date specified by the member as his or her effective retirement date will invalidate the application for retirement (service or disability) for all purposes. Thereafter, a new application must be submitted and a new retirement date chosen in accordance with §121.6 of this title (relating to Time for Filing of Retirement Applications).",
            "sourceNote": "Source Note: The provisions of this §121.7 adopted to be effective September 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201062&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201062",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.8",
                "label": "Service Retirement Benefits May Be Approved by Director Without Hearing"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201063&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201063",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "If the director finds from the records of the system and from the documents supporting the application, that the applicant is entitled to a service retirement benefit, the director may approve the retirement, calculate the amount of the benefit and place it into effect without further hearing, unless a contest has been filed under §121.12 of this title (relating to Contest of Application: Form and Content). All benefits approved shall be reported to the board at its next meeting for confirmation.",
            "sourceNote": "Source Note: The provisions of this §121.8 adopted to be effective September 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201063&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201063",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.9",
                "label": "Disability Retirement Applications Referred to Medical Board"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201064&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201064",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Applications for occupational disability retirement shall be referred by the director to the medical board. The medical board shall investigate all essential statements and certificates submitted by or on behalf of the member in connection with the application for occupational disability retirement, and shall pass upon, or cause to be conducted, all medical examinations which in its determination are necessary to determine the cause, extent, and permanence of the member's disability. The medical board shall make and file with the director a written report of its conclusions and recommendations.(b) Pursuant to §851.004, the medical board may not be held liable for any actions or omissions, conclusions, or recommendations made in good faith under the Act.",
            "sourceNote": "Source Note: The provisions of this §121.9 adopted to be effective September 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201064&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201064",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.10",
                "label": "Approval Without Hearing Where Medical Board Certifies Entitlement"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201065&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201065",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "If the findings and conclusions of the medical board, as stated in its report, are such as in the director's opinion entitle the member under the terms of the Act to the disability retirement benefit applied for, the director may approve the retirement, calculate the amount of the benefit, and place it into effect without further hearing. All benefits approved by the director shall be reported to the board at its next meeting for confirmation.",
            "sourceNote": "Source Note: The provisions of this §121.10 adopted to be effective September 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201065&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201065",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.11",
                "label": "Summary Disposition of Other Approved Applications"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201066&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201066",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Applications for benefits under the Act not specified above, including claims for refund of contributions, may be granted by the director without formal hearing, if not contested by any party, and if the director is satisfied upon the basis of the application and supporting documents that the applicant is entitled to the action requested.",
            "sourceNote": "Source Note: The provisions of this §121.11 adopted to be effective September 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201066&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201066",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.12",
                "label": "Contest of Application: Form and Content"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201067&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201067",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Any party, other than the system, desiring to contest any pending application or claim for benefits, shall file with the director a written statement, setting forth:(1) the name and address of the party filing such statement who shall be designated as \"contestant\";(2) the name of the party making the application or claim being contested;(3) a concise statement of the facts relied on by the contestant as reasons why the contested application or claim should be denied; and(4) a prayer specifying the action which the contestant desires the system to take.(b) The statement shall be signed by the contestant, or by the contestant's duly authorized representative; and must contain a certificate showing that a true copy of the same was served upon the applicant, and the date and manner of such service.(c) Any statement may adopt and incorporate, by specific reference, any part of any document or entry in the official files and records of the board or of the system. Such adoption by reference does not relieve contestant of their burden, under these rules, or other applicable law, to produce admissible evidence to support their claims.(d) If a contestant does not comply with subsection (a) or (b) of this section, the director may dismiss any such contest for failure to comply.",
            "sourceNote": "Source Note: The provisions of this §121.12 adopted to be effective September 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201067&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201067",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.13",
                "label": "Notice of Prehearing Disposition"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201068&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201068",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If an application for benefits is approved in whole or in part without hearing, the system, by letter of notification, shall inform the applicant in writing of the action taken.(b) If the director determines that an application for benefits cannot be approved, the system shall send a letter of notification, informing the applicant that the claim is denied, in whole or in part, and stating the reasons therefor.",
            "sourceNote": "Source Note: The provisions of this §121.13 adopted to be effective September 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201068&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201068",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.14",
                "label": "Procedure for Obtaining Hearing of Claim Denied in Whole or in Part by Director"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201069&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201069",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A claimant who desires to contest the action of the director in denying, in whole or in part, the claim to any right or benefit under the Act may obtain a hearing of the claim as a \"contested case\" pursuant to the Administrative Procedure Act (Chapter 2001, Government Code) and the following rules, by filing a written \"request for hearing of denied claim\" within 30 days after the date of the director's letter of notification.(b) If no request under subsection (a) of this section is filed by the claimant within the 30-day period provided above, the prehearing disposition made by the director shall become final and unappealable.",
            "sourceNote": "Source Note: The provisions of this §121.14 adopted to be effective September 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201069&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201069",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.15",
                "label": "Hearing of Conflicting and Protested Claims"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201070&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201070",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Where a party, pursuant to §121.12 of this title (relating to Contest of Application: Form and Content) has filed an statement contesting a pending application, the issues presented shall be heard as a \"contested case\" in accordance with the provisions of the Administrative Procedure Act (Chapter 2001, Government Code) and the following rules adopted by the Board.(b) Upon a written request by a party or upon motion by the director or the board of trustees, the director may issue subpoenas addressed to the sheriff or any constable to require the attendance of witnesses and the production of books, records, papers, or other objects that may be appropriate for purposes of a deposition or hearing.(c) If different persons make claim to any benefit which the system concedes is payable, or if a party challenges the competency or right of a member to dispose of such a benefit in accordance with the latest written designation executed by the member and filed with the system, the director may decline any decision on the issues between the opposing claimants and file an appropriate action (including without limitation an action in interpleader) in Travis County District Court, making the opposing claimants parties and may tender payment of the benefits through the court to the party adjudged entitled to it.",
            "sourceNote": "Source Note: The provisions of this §121.15 adopted to be effective September 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201070&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201070",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.16",
                "label": "Subpoenas"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201071&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201071",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The issuance of subpoenas in any proceeding shall be governed by §2001.089 of the Administrative Procedure Act (Chapter 2001, Government Code). Following written request by a party or on the system's own motion, the director (or in a contested case the director or administrative law judge) may issue subpoenas addressed to the sheriff or any constable to require the attendance of witnesses and the production of books, records, papers, or other objects as may be necessary and proper for the purposes of a proceeding.(b) Motions for subpoenas to compel the production of books, records, papers, or other objects shall specify as nearly as may be the books, records, papers, or other objects desired and the material and relevant facts to be proven by them.(c) Subpoenas shall be issued by the director or administrative law judge only after showing of good cause and the deposit of sums sufficient to insure payment of expense incident to the subpoenas. Service of subpoenas and payment of witness fees shall be made in the manner prescribed in the Administrative Procedure Act.",
            "sourceNote": "Source Note: The provisions of this §121.16 adopted to be effective September 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201071&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201071",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.17",
                "label": "Depositions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201072&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201072",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The taking and use of depositions in any proceeding shall be governed by the Administrative Procedure Act (Chapter 2001, Government Code). The director is authorized to issue commissions to take depositions on his/her own motion, or on written motion of a part to the proceeding.",
            "sourceNote": "Source Note: The provisions of this §121.17 adopted to be effective September 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201072&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201072",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.18",
                "label": "Conduct of Contested Case Hearings"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201073&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201073",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) After filing of a request for a contested case hearing pursuant to these rules, or after filing of a third-party answer under §121.12 of this title (relating to Contest of Application: Form and Content), the director shall cause the contested case to be docketed in the State Office of Administrative Hearings (SOAH), by filing with SOAH either a \"Request for Setting of Hearing\" or a \"Request for Assignment of Administrative Law Judge\" as the Director deems appropriate.(b) After the case has been docketed at SOAH and an administrative law judge has been assigned, the director shall notify all parties to the proceeding. Thereafter, any pleading or any motion filed in connection with the contested case, including, but not limited to, motions for continuance, discovery, settings and other relief, shall be filed with SOAH at its office in Austin, Texas, until such time as the proposal for a decision has been presented to the board of trustees as hereinafter provided.(c) At least ten days prior to the SOAH hearing, the director shall give notice to all parties as required by §2001.051 of the Administrative Procedures Act (Chapter 2001, Government Code), and shall file with SOAH a certified copy of the relevant records in the system's files evidencing the system's determination being appealed and that were reviewed and/or relied upon in making the determination.(d) A hearing will be conducted by an administrative law judge assigned by SOAH, and shall be conducted in accordance with the Administrative Procedure Act (Chapter 2001, Government Code), these rules, and the rules adopted by SOAH (including but not limited to Texas Administrative Code, Title 1, Part 7, Chapter 155). Hearings will be conducted in Austin at the site designated by SOAH. In the event of an irreconcilable conflict between these rules and the rules adopted by SOAH, these rules shall control. The administrative law judge shall have authority to administer oaths, examine witnesses, rule on the admissibility of evidence, recess the hearing from day to day or to a specified date, and otherwise regulate and conduct the hearing to the end that the issues may be presented with order and decorum.(e) All parties to the hearing, including the system, may be represented by counsel. All parties, including the system, may introduce testimony of witnesses, records, documents, and other evidence relevant to the claim or matter, which is the subject of the hearing. At the hearing, the certified records identified in subsection (c) of this section shall be admitted into evidence. No further evidence will be required of the system or its current or former trustees, employees or medical board members absent a showing of good cause.(f) The provisions of the Administrative Procedures Act (Chapter 2001, Government Code) shall govern the admissibility of evidence, but the system will take notice of any facts established by its records unless a party to the proceedings files a written protest of its validity.(g) A record of a hearing or prehearing conference shall be made in a manner consistent with the purpose of 1 TAC §155.423 and consistent with this subsection.(1) It is the policy of the system to rely on an audio or video recording made by the administrative law judge as the record of the proceeding, regardless of the anticipated length of the hearing. Any party may arrange for a court reporter to be present at the hearing at that party's expense and any such reporter shall maintain the confidentiality of information presented at the hearing.(2) The system may obtain the recording from the administrative law judge in order to prepare a transcript of the hearing. The transcript prepared by TMRS will be considered the official record of the proceeding.(3) The system may require a party who appeals the board's final decision to pay all or part of the cost of preparation of the original or a certified copy of the official record, and may require that party to make a deposit or full payment of the estimated costs before the official records is prepared.(h) Unless required by §2001.055 of the Texas Government Code, a party who desires the services of a certified language interpreter for any part of the contested case proceedings is responsible for arranging for the interpreter and paying for the services.",
            "sourceNote": "Source Note: The provisions of this §121.18 adopted to be effective September 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201073&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201073",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.19",
                "label": "Proposal for Decision"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201074&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201074",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The administrative law judge who conducted the hearing, or one who has read and/or listened to the record, shall prepare a written proposal for decision for action by the board of trustees. The proposal for decision shall contain:(1) proposed findings of fact and conclusions of law, separately stated; and(2) if appropriate, a proposed order.(b) When a proposal for decision is prepared, a copy of the proposal shall be served forthwith by SOAH on each party or the party's attorney, if any. Unless exceptions to the proposal for decision have been filed within the time prescribed in §121.20 of this title (relating to Filing of Exceptions to Proposal, Briefs, and Replies), the proposal for decision may be adopted at any date thereafter by written order of the board.",
            "sourceNote": "Source Note: The provisions of this §121.19 adopted to be effective September 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201074&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201074",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.20",
                "label": "Filing of Exceptions to Proposal, Briefs, and Replies"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201075&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201075",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Any party to the contested case proceeding may, within 20 days after date of service of a proposal for decision, file with SOAH exceptions to the proposal and may submit briefs in support of such exceptions; replies to exceptions and reply briefs may be filed within 15 days after the filing of such exceptions and briefs. A request for an extension of time within which to file exceptions, briefs, or replies may be filed with SOAH, and SOAH shall promptly notify the parties of its action upon such requests.(b) Briefs, exceptions, and replies shall be of the size and shall conform as nearly as possible to the form prescribed for applications and other pleadings.(c) The administrative law judge may amend the proposal for decision pursuant to exceptions, briefs, and replies to exceptions and briefs, without the proposal for decision again being served on the parties.(d) The administrative law judge shall submit the proposal for decision, including any amendments, to the board of trustees, with a copy to each party.",
            "sourceNote": "Source Note: The provisions of this §121.20 adopted to be effective September 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201075&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201075",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.21",
                "label": "Closing of Hearing"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201076&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201076",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "In a contested case heard by an administrative law judge or judges, the hearing is considered closed on the date the proposal for decision is submitted to the board.",
            "sourceNote": "Source Note: The provisions of this §121.21 adopted to be effective September 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201076&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201076",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.22",
                "label": "Board Consideration and Action"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201077&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201077",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The final decision in contested cases shall be made by the board of trustees, normally at its next regular meeting after time has expired for filing of exceptions to the proposal for decision, or any extension of time granted for filing such exceptions, or briefs in support of or against exceptions, or as soon thereafter as is practicable.(b) The board will normally make its final decision on the basis of a proposal for decision, exceptions to the proposal, and briefs supporting and opposing the proposal for decision. However, the board, in exceptional cases, on its own motion, or on request of a party, may allow oral argument, or further written argument by the parties.(c) Analysis Regarding Board Order.(1) Acting in its capacity as fiduciary of the trust, the board or its designee may, in their sole discretion, modify, refuse to accept, or delete any adopted finding of fact or conclusion of law, or make alternative findings of fact or conclusions of law, if it is determined by the board or its designee that all or part of the proposal for decision submitted by the administrative law judge, or a proposed finding of fact or conclusion of law contained therein, is:(A) clearly erroneous or illogical;(B) against the weight of the evidence;(C) based on a misapplication of the rules of evidence or an insufficient review of the evidence;(D) based on a medical opinion that is not supported by objective medical evidence, or is not based on reasonable medical probability;(E) inconsistent with the terms or intent, as determined by the board or its designee, of an applicable statute or benefit plan provision;(F) confusing, incomplete or misleading;(G) immaterial or irrelevant to the issues; or(H) not sufficient to protect the interests of the plans and programs for which the board is trustee, or the interests, as a group, of the members, retirees or participants covered by such plans and programs.(2) The board's order shall contain or reference a written statement of the reason for each change made based on the foregoing policy reasons. Corrections of nonsubstantive errors do not need to be explained.",
            "sourceNote": "Source Note: The provisions of this §121.22 adopted to be effective September 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201077&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201077",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.23",
                "label": "Board Decisions and Orders"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201078&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201078",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "All decisions and orders of the board in contested cases shall be in writing and shall be signed by the director. If the decision or order does not adopt, in whole or in part, the proposal for decision submitted by the administrative law judge, the decision or order shall include findings of fact and conclusions of law, separately stated. The date of rendition shall be stated in the decision or order. Parties shall be notified either personally or by mail of any decision or order. On written request, a copy of the decision or order shall be delivered or mailed to any party and to his or her attorney of record.",
            "sourceNote": "Source Note: The provisions of this §121.23 adopted to be effective September 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201078&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201078",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.24",
                "label": "Motions for Rehearing"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201079&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201079",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A motion for rehearing is a prerequisite to judicial review. A motion for rehearing must be filed with the director within 20 days after the date of rendition of a final decision or order. Replies to a motion for rehearing must be filed with the system within 20 days after the date of the motion for rehearing, and system action on the motion must be taken within 60 days after the date of rendition of the final decision or order. If system action is not taken within the 60-day period, the motion for rehearing is overruled by operation of law 60 days after the date of rendition of the final decision or order. The director may by written order entered prior to the expiration of the 60-day period extend the period of time for taking system action, except that an extension may not extend the period for system action beyond 90 days after the date of rendition of the final decision or order. In the event of an extension, the motion for rehearing is overruled by operation of law on the date fixed by the order or, in the absence of a fixed date, 90 days after the date of the final decision or order. The parties may by agreement, with the approval of the director, provide for a modification of the time provided in this section.",
            "sourceNote": "Source Note: The provisions of this §121.24 adopted to be effective September 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201079&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201079",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.25",
                "label": "When Decisions Become Final"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201080&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201080",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A decision of the board is final and nonappealable in the absence of a timely motion for rehearing. If a timely motion for rehearing is filed, a decision of the board is final and appealable on the date of rendition of an order overruling a motion for rehearing, or on the date the motion is overruled by operation of law.",
            "sourceNote": "Source Note: The provisions of this §121.25 adopted to be effective September 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201080&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201080",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.26",
                "label": "The Record"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201081&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201081",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The record in a contested case shall include:(1) all applications, answers, and other pleadings, and intermediate rulings;(2) evidence received or considered;(3) a statement of matters officially noticed;(4) questions and offers of proof, objections, and rulings on them;(5) proposed findings and exceptions thereto;(6) any proposal for decision, as amended, exceptions to the proposal for decision and replies to the exceptions;(7) all non-privileged briefing submitted to the board following the submission of the proposal for decision to the board;(8) the board's final determination; and(9) any motion for rehearing, replies to the motion for rehearing and action by the system, if any.(b) Findings of fact will be based exclusively on the evidence presented and matters officially noticed.",
            "sourceNote": "Source Note: The provisions of this §121.26 adopted to be effective September 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201081&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201081",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "121",
                "label": "PRACTICE AND PROCEDURE REGARDING CLAIMS"
            },
            "rule": {
                "number": "§121.27",
                "label": "Reaffirmation of Occupational Disability Benefit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201752&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201752",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Under §854.409 of the Act, the system may determine when to require an occupational disability retiree under §854.407 of the Act (a \"disability retiree\") younger than 60 years of age to undergo a medical examination and provide current medical and other relevant information reaffirming the status of the disability retiree as meeting the requirements for certification of occupational disability under §854.407(b) of the Act.(b) The medical board or system may designate a physician, or type of specialized physician, required to perform the examination.(c) Other relevant information that may be requested by the system from the disability retiree may include, but is not limited to, financial and employment information.(d) Death of Disability Retiree Under Suspension.(1) In the event that a disability retiree whose occupational disability annuity has been suspended pursuant to §854.409 of the Act, dies without having submitted to a medical examination and provided the requested information:(A) if the disability retiree dies before the fourth anniversary of the date the system requested the medical examination or information, then the system shall unsuspend the annuity and pay the suspended payments of the occupational disability annuity in a lump sum to the disability retiree's beneficiary(ies); but(B) if the disability retiree dies after the fourth anniversary of the date the system requested the medical examination or information, then the system shall unsuspend the annuity, but the suspended annuity payments shall be forfeited and shall not be paid to the disability retiree's beneficiary(ies).(2) The system may request appropriate information from such beneficiary(ies) prior to unsuspending the annuity or paying the lump sum amounts. Whether any further annuity payments are due after the disability retiree's death will be determined by the terms of the occupational disability annuity option selected by the disability retiree at the time of retirement. If any further annuity payments are due, unsuspension of the occupational disability retirement annuity after the death of a disability retiree pursuant to this subsection shall occur the month after month in which the disability retiree dies.(e) If the retiree desires to contest the system's action in suspending an occupational disability retirement annuity pursuant to §854.409(e), the retiree may obtain a hearing of the issue as a \"contested case\" pursuant to the Administrative Procedure Act (Chapter 2001, Government Code) and these rules, by filing with the director a written \"request for hearing of suspension of benefit\" within 30 days after the date of the director's letter of notification of suspension. If the request for a contested case hearing is timely filed, the contested case shall be docketed, heard, and disposed of in accordance with §§121.12-121.25 of this title. If no request for contested case hearing is filed within the 30 day period provided in this paragraph, the action of the system in suspending an occupational disability retirement annuity shall be final and unappealable.",
            "sourceNote": "Source Note: The provisions of this §121.27 adopted to be effective September 13, 2020, 45 TexReg 6246."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201752&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201752",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "123",
                "label": "ACTUARIAL TABLES AND BENEFIT REQUIREMENTS"
            },
            "rule": {
                "number": "§123.1",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201753&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201753",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Compensation.(1) Section 851.001(6) of the Act provides the definition of compensation for purposes of the Act. For avoidance of doubt, the definition of compensation includes, but is not limited to, the following additional types of compensation in this paragraph and compensation described in paragraph (2) of this subsection subject to the limitations therein, and excludes compensation described in paragraph (3) of this subsection:(A) base pay and additional compensation paid for additional duties, longevity, overtime or special duties;(B) vacation and sick leave pay;(C) monetary and nonmonetary compensation (the value of which is determined by the participating municipality) taxable as income, including, but not limited to, car or uniform allowances and imputed income from fringe benefits;(D) severance payments; and(E) workers' compensation paid as temporary wage replacement and reported or verified to the municipality.(2) Compensation is limited to payments made to an employee for performance of personal services and made before or within a reasonable time, as determined by the system in its sole discretion, after bona fide termination of the employee.(3) Compensation does not include short-term or long-term disability insurance payments received by an employee.(b) Department.(1) Definition of \"department\" may include:(A) an economic development corporation established by a participating municipality pursuant to the Development Corporation Act (Subtitle C1, Title 12, Local Government Code), for which corporation the municipality's governing body has passed an ordinance pursuant to §501.067(a)(2), Local Government Code; or(B) a recognized division that is an instrumentality of a participating municipality:(i) that is created to carry out a municipal function (for example, public park creation and maintenance, economic stimulus and development, or administration of port facilities);(ii) that is controlled by the municipality:(I) by the municipality maintaining the ability to appoint and remove the members of the governing body for the instrumentality; and(II) by the municipality retaining the ability to dissolve the instrumentality; and(iii) for which the assets of the instrumentality revert to the municipality upon the dissolution of the instrumentality.(2) Notwithstanding the foregoing, the determination of whether or not any economic development corporation, instrumentality, or other recognized division is or is not a department for purposes of the Act shall be made by the system, in its sole discretion.(3) An employee of a participating department who performs services for a nonparticipating entity pursuant to an agreement duly authorized by the participating municipality that governs the department remains a member of the system.(c) Spouse. A spouse does not include a person separated from the participant under a decree of divorce or annulment.",
            "sourceNote": "Source Note: The provisions of this §123.1 adopted to be effective November 19, 2020, 45 TexReg 8171."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201753&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201753",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "123",
                "label": "ACTUARIAL TABLES AND BENEFIT REQUIREMENTS"
            },
            "rule": {
                "number": "§123.2",
                "label": "Bona Fide Termination of Employment"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201754&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201754",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The Act provides that retirement benefits commence upon retirement, and §851.001(11) of the Act provides that retirement requires a \"withdrawal from service\". The Internal Revenue Code and regulations thereunder require that the terms of the plan be followed and define termination of employment for the similar rule that under a pension plan, such as TMRS, benefits cannot commence prior to the earlier of termination of employment or normal retirement age (if the plan allows in-service distributions prior to normal retirement age, which the Act does not). In order to satisfy applicable requirements of the Act and the Internal Revenue Code and guidance thereunder, for purposes of allowing a distribution of benefits to a member, a member must have a bona fide termination of employment with all applicable participating municipalities. A distribution of benefits to a member before there has been such a bona fide termination of employment would be an in-service distribution and an operational error which could lead to a plan disqualification under the Internal Revenue Code and could result in the assessment of taxes, back taxes, interest and penalties against the participating municipality or municipalities and its participants unless corrected.(b) Whether a termination of employment is a bona fide termination is dependent on the facts and circumstances surrounding the termination.(c) With respect to employees of a participating municipality, a termination is not a bona fide termination of employment if there has not been a complete termination and severance of the employer-employee relationship. Failure to strictly follow the employer's termination policies, practices, processes and procedures regularly followed by the employer indicates that the termination was not bona fide.(d) Notwithstanding strict adherence to the participating municipality's regular employment termination polices, practices, processes and procedures or any other facts and circumstances, a termination is not a bona fide termination of employment if at the time of termination there is an expectation, understanding, agreement, or pre-arrangement, whether written or oral, express or implied, between the municipality and employee, or an agent of either, that the termination is or will be temporary or that the person will be rehired in the future, whether such rehire is:(1) for the same position or a different position;(2) at a greater, lesser, or equivalent level of compensation;(3) in the same or any other division or department of the employer;(4) as a full-time, part-time or temporary employee; or(5) as an independent contractor, whether directly or through an entity.(e) If a member applies for a withdrawal or refund of the member's accumulated contributions under the Act, but the system determines, in its discretion, that there was not a bona fide termination of employment or that the member is or has become an employee of another participating municipality before the refund payment has been issued, the system may cancel the refund application.(f) If a member applies for retirement but, before payment of the retirement benefit begins, the system determines, in its discretion, that there was not a bona fide termination of employment or that the member became an employee of another participating municipality before the member's effective retirement date, the system may cancel the retirement application.(g) If the system determines, in its discretion, that a person who has retired with a service retirement benefit under the Act is performing or providing services as a purported independent contractor for the person's reemploying municipality and that there was no bona fide termination of employment before the person began performing or providing such services, then:(1) the system may promptly suspend the person's service retirement annuity payments in accordance with §852.108 of the Act; and(2) the system may require the person to repay, with earnings or interest, all amounts paid by the system with regard to such service retirement benefit from the effective date of retirement through the date of suspension, or may adjust any future payments of the annuity so that the actuarial equivalent of the benefit to which the person is entitled is paid, or may require a combination of repayment by the member and adjustment of future payments.(h) If the system determines, in its discretion, that a person who purports to be an independent contractor may in fact be a common law employee, the system may require the person to provide such information regarding the independent contractor status of the individual as it may deem necessary or advisable to make such determination, which may include, but not be limited to, a filing of an IRS Form SS-8 by the person or the municipality, which shall be subject to review and approval by the system before filing.",
            "sourceNote": "Source Note: The provisions of this §123.2 adopted to be effective November 19, 2020, 45 TexReg 8171."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201754&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201754",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "123",
                "label": "ACTUARIAL TABLES AND BENEFIT REQUIREMENTS"
            },
            "rule": {
                "number": "§123.3",
                "label": "Return to Work"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201755&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201755",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Section 852.108(a) of the Act is interpreted to mean that a person's reemploying municipality is the municipality for which the person most recently performed creditable service before the person's retirement with respect to a particular individual account of the person under the Act.(b) When the system discontinues and suspends the payment of a service retirement annuity pursuant to §852.108(c) of the Act, the full amount of the monthly payments of the service retirement annuity that is allowed because of the person's retirement from the reemploying municipality (including any portion of the annuity that may be attributable to creditable service as a prior employee of a participating municipality(ies) other than the reemploying municipality) shall be suspended.(c) If a person is receiving more than one service retirement annuity because the person has a retirement with respect to more than one individual account, only the retirement annuity that is allowed because of the person's retirement from the reemploying municipality (including any portion of the annuity that may be attributable to creditable service as a prior employee of a participating municipality(ies) other than the reemploying municipality) shall be suspended as a result of returning to work for that reemploying municipality.(d) For purposes of §852.108(h)(2) of the Act, the basic annuity determined pursuant to §852.108(h)(2)(A) of the Act is actuarially determined from the sum of the member's contributions made and accumulated since the date the person last became a member, together with interest accumulated on that amount since the person last became a member and an amount from the benefit accumulation fund equal to the amount of the member's contributions credited to the member's individual account since the person last became a member together with interest accrued on that amount since the person last became a member.(e) For purposes of clarification, §852.108(i) of the Act applies only in the event that, under §852.108(h) of the Act, a person selects a benefit payable as an annuity pursuant to §852.108(h)(2) of the Act and does not apply in the event that the person selects a refund of accumulated contributions pursuant to §852.108(h)(1) of the Act.(f) For purposes of §852.108(j)(2) of the Act, at least eight consecutive years must have passed since the person's most recent effective retirement date from the reemploying municipality before the person resumes employment with the reemploying municipality.",
            "sourceNote": "Source Note: The provisions of this §123.3 adopted to be effective November 19, 2020, 45 TexReg 8171."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201755&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201755",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "123",
                "label": "ACTUARIAL TABLES AND BENEFIT REQUIREMENTS"
            },
            "rule": {
                "number": "§123.4",
                "label": "Month of Credited Service and Year of Credited Service Defined"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201756&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201756",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A month of credited service is any calendar month in which a member makes a required contribution, as reported to the system by the participating municipality.(b) A year of credited service is comprised of any 12 months of credited service, whether or not the months are consecutive.(c) No service credit will be given to a participant for a contribution received by the system after termination of membership in accordance with §852.104 of the Act, unless such person is reemployed for a participating municipality pursuant to §§852.108 and 852.109 of the Act.",
            "sourceNote": "Source Note: The provisions of this §123.4 adopted to be effective November 19, 2020, 45 TexReg 8171."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201756&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201756",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "123",
                "label": "ACTUARIAL TABLES AND BENEFIT REQUIREMENTS"
            },
            "rule": {
                "number": "§123.5",
                "label": "Restricted Prior Service Credit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201757&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201757",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The granting of restricted prior service credit under §853.305 of the Act in combination with other credited service earned by a member may result in the member becoming a vested member, as defined by the Act.(b) If, to establish that a member who is seeking to establish restricted prior service credit qualifies for the restricted prior service credit based on service within the Department of Defense, the system receives a United States Department of Defense Certificate of Release or Discharge from Active Duty (Form DD 214 or any subsequent version of such form) that reflects active duty or prior active duty service by the member, the system may grant restricted prior service credit based on the service reflected in the Department of Defense certificate without receiving a detailed statement of the prior service that is verified on a system form by an official custodian of personnel records of the Department of Defense. A member seeking to establish restricted prior service credit in accordance with this subsection must satisfy all other requirements under §853.305 of the Act.(c) If records in the custody of the system verify that a member who is seeking to establish restricted prior service credit qualifies for the restricted prior service credit based on service credit previously canceled because of the member's withdrawal of contributions from TMRS, the system will be deemed to have complied with the verification requirements of §853.305(c) of the Act and the system may grant the restricted prior service credit upon satisfaction of the other applicable requirements. A member seeking to establish restricted prior service credit in accordance with this subsection must satisfy all other requirements under §853.305 of the Act.",
            "sourceNote": "Source Note: The provisions of this §123.5 adopted to be effective November 19, 2020, 45 TexReg 8171."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201757&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201757",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "123",
                "label": "ACTUARIAL TABLES AND BENEFIT REQUIREMENTS"
            },
            "rule": {
                "number": "§123.6",
                "label": "Updated Service Credit Calculations"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201758&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201758",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In calculating the average updated service compensation used in the Updated Service Credit calculation, the highest and lowest deposits in the thirty-six (36) month period being used shall be disregarded, and the average updated service compensation shall be computed based on the remaining thirty-four (34) deposits.(b) This rule is effective January 1, 2008.",
            "sourceNote": "Source Note: The provisions of this §123.6 adopted to be effective November 19, 2020, 45 TexReg 8171."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201758&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201758",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "123",
                "label": "ACTUARIAL TABLES AND BENEFIT REQUIREMENTS"
            },
            "rule": {
                "number": "§123.7",
                "label": "Requirement of Spousal Consent"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201759&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201759",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A vested member who is currently married may not designate a primary beneficiary other than the member's spouse or select a form of payment of a retirement or survivor annuity other than a joint-and-survivor annuity that pays benefits to the member's spouse on the death of the member, unless the member's spouse consents to the designation or selection.(b) The consent of a spouse required by subsection (a) of this section must be in writing and acknowledged before a notary public.(c) The consent required by subsection (a) of this section is not required if it is established to the satisfaction of the director, or the director's designee, that:(1) there is no spouse;(2) the spouse cannot be located;(3) the spouse has been judicially declared incompetent in which case the consent may be given by the guardian or other ad litem;(4) a duly licensed physician has determined that the spouse is not mentally capable of managing his or her own affairs, in which case the consent may be given by the member provided the member would not be disqualified to serve as guardian of the incapacitated spouse and the director, or the director's designee, is satisfied that a guardianship of the estate is not necessary; or(5) the spouse and the member have been married for less than one year as of the date the annuity first becomes payable.(d) The consent required by subsection (a) of this section is also not required with respect to any portion of a member's retirement benefit that has been awarded to a former spouse(s) under a qualified domestic relations order(s), but the consent requirement does apply to the remaining portion of the member's retirement benefit.(e) For the purposes of this section, the term \"joint-and-survivor annuity that pays benefits to the member's spouse on the death of the member\" means a retirement annuity for the life of the member with a survivor annuity for the life of the spouse which is not less than 50% of the amount of the annuity which is payable during the joint lives of the member and the spouse, or, if the member dies before retirement, a survivor annuity for the life of the spouse which is not less than the actuarial equivalent of an annuity described by §854.104(c)(1) of the Act when the member has died before retirement.(f) A member eligible for retirement must certify his or her current marital status on any retirement application, or any other application for benefits on which the system requires the member to provide marital status information, filed with the system. The system and employees of the system may rely on any such certification and shall not be liable to any person for making payment of any benefits in accordance with such certification, regardless of whether the certification is later shown to have been false on the date of execution.",
            "sourceNote": "Source Note: The provisions of this §123.7 adopted to be effective November 19, 2020, 45 TexReg 8171."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201759&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201759",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "123",
                "label": "ACTUARIAL TABLES AND BENEFIT REQUIREMENTS"
            },
            "rule": {
                "number": "§123.8",
                "label": "Effect of Divorce"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201760&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201760",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Except as otherwise expressly provided below, (i) if a member or retiree designates a person who is his or her spouse as a beneficiary and becomes divorced from that person, then the beneficiary designation automatically becomes void as to that person upon divorce, and (ii) to have such person become a beneficiary again, the person must be designated as a beneficiary on the system's appropriate beneficiary designation form completed and filed with the system after the date of divorce. In the event a retiree names a person who is his or her spouse as beneficiary on an optional service retirement annuity selected pursuant to §§854.104(c)(1), (2) or (5) of the Act, and becomes divorced from such person after the retiree's effective date of retirement, the divorce does not automatically void such beneficiary designation.",
            "sourceNote": "Source Note: The provisions of this §123.8 adopted to be effective November 19, 2020, 45 TexReg 8171."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201760&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201760",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "123",
                "label": "ACTUARIAL TABLES AND BENEFIT REQUIREMENTS"
            },
            "rule": {
                "number": "§123.9",
                "label": "Post-Retirement Contributions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201761&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201761",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If a contribution that would otherwise be credited to the member's individual account in the system is deposited after the member's effective retirement date for services performed before the effective retirement date, the retirement annuity shall be recalculated in accordance with this section.(b) The following deposits shall be treated as additional accumulated contributions for purposes of recalculating the retirement annuity:(1) employee contributions attributable to compensation for services performed while a member of the system but deposited within 2 months after the effective retirement date of the member; and(2) employee contributions attributable to compensation for services performed while a member of the system but deposited within 2 months after the death of a deceased member.(c) A retirement annuity subject to this section will be recalculated as of the effective retirement date by taking into account the additional accumulated contributions and the related increases in current service credit and matching credit. The recalculated retirement annuity will be based on the age of the retiree (and the age of the beneficiary in the case of a joint-and-survivor option) as of the effective retirement date.(d) The recalculated retirement annuity is payable only prospectively beginning with the month following the month in which the retirement system receives the deposit.",
            "sourceNote": "Source Note: The provisions of this §123.9 adopted to be effective November 19, 2020, 45 TexReg 8171."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201761&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201761",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "123",
                "label": "ACTUARIAL TABLES AND BENEFIT REQUIREMENTS"
            },
            "rule": {
                "number": "§123.10",
                "label": "Payments Due on Death of Retiree or Annuitant"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201762&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201762",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Any and all payments due to a deceased retiree or deceased annuitant that have not been made, or that have been made but are non-negotiable after the retiree's or annuitant's death, including, but not limited to, final annuity payments and partial lump-sum distributions, may be made payable to the designated beneficiary or beneficiaries on file with the system on the date of the retiree's or annuitant's death.",
            "sourceNote": "Source Note: The provisions of this §123.10 adopted to be effective November 19, 2020, 45 TexReg 8171."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201762&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201762",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "123",
                "label": "ACTUARIAL TABLES AND BENEFIT REQUIREMENTS"
            },
            "rule": {
                "number": "§123.11",
                "label": "Supplemental Disability Benefits Not Reduced by Certain Increases in Base Benefit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201763&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201763",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Where current service annuities and prior service annuities being paid to employees retired for service-connected disability are increased by the participating municipality pursuant to the §854.203 of the Act, such increase in the current service annuity and/or prior service annuity shall not operate to reduce the supplemental retirement benefit, if any, payable to such member, and such supplemental benefit shall continue to be paid in the same monthly amount as was being paid such member prior to such increase in the basic benefit amount.",
            "sourceNote": "Source Note: The provisions of this §123.11 adopted to be effective November 19, 2020, 45 TexReg 8171."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201763&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201763",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "123",
                "label": "ACTUARIAL TABLES AND BENEFIT REQUIREMENTS"
            },
            "rule": {
                "number": "§123.12",
                "label": "Affidavits of Heirship for Determination of Payments Due Heirs"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201764&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201764",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Refund or Escheated Account Payable to an Estate. For purposes of making payments in accordance with §§854.501, and 855.603 of the Act, or required minimum distributions required by §401(a)(9) of the Internal Revenue Code and the regulations adopted under that provision, the system may, if no designated beneficiary survived the decedent and no small estate affidavit has been filed with the clerk of the court having jurisdiction and venue as provided by Chapter 205 of the Estates Code, accept instead an affidavit meeting the requirements of this section, sworn to by two disinterested witnesses, by the heirs who have legal capacity, and, if the facts warrant, by the natural guardian or next of kin of any minor or incompetent who is also an heir.(b) Deceased Retiree's or Annuitant's Estate. If no designated beneficiary survived the retiree or annuitant and no small estate affidavit has been filed with the clerk of the court having jurisdiction and venue as provided by Chapter 205 of the Estates Code, the system may accept an affidavit meeting the requirements of this section, sworn to by two disinterested witnesses, by the heirs who have legal capacity, and, if the facts warrant, by the natural guardian or next of kin of any minor or incompetent who is also an heir, for purposes of making any payment due to a retiree's or annuitant's estate.(c) Any affidavit, other than a small estate affidavit, shall include the names and addresses of the heirs and witnesses and establish these facts:(1) whether or not a surviving spouse of the deceased member exists;(2) no petition for the appointment of a personal representative of the deceased member is pending or has been granted;(3) 30 days have elapsed since the death of the deceased member; and(4) the value of the entire assets of the deceased member's estate, excluding homestead and exempt property, does not exceed $50,000.(d) The affidavit shall also:(1) include a list of the assets and liabilities of the estate;(2) show the facts that constitute the basis for the right of the heirs to receive the estate; and(3) show the fractional interests of the heirs in the estate as a result of those facts.(e) For purposes of this section, \"heir\" has the meaning assigned by §22.015 of the Estates Code, except that the term excludes any persons who have filed with the system a proper disclaimer or renunciation.(f) Acceptance of an affidavit that substantially complies with the requirements of this section rests in the sole discretion of the system. In accordance with §851.004 of the Act, the system, board of trustees, director, members of an advisory committee or medical board appointed by the board of trustees, and staff of the system shall not be liable for payment of benefits to heirs in accordance with an affidavit provided to the system.",
            "sourceNote": "Source Note: The provisions of this §123.12 adopted to be effective November 19, 2020, 45 TexReg 8171."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201764&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201764",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "123",
                "label": "ACTUARIAL TABLES AND BENEFIT REQUIREMENTS"
            },
            "rule": {
                "number": "§123.13",
                "label": "Beneficiary Causing Death of Member or Annuitant"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201765&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201765",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) When the death of a member or annuitant of the system appears not to be the result of natural causes, the system may delay payments in accordance with §854.504 of the Act. An amended death certificate, or documentation from a law enforcement entity or prosecutor's office that is investigating the member's or annuitant's death stating that the beneficiary is not a suspect or a person of interest in the death of the member or annuitant, shall be sufficient for the system to release benefits to the beneficiary.(1) Should the system receive notice or other information that a beneficiary has become a suspect or person of interest after an annuity has begun to be administered, then the system may immediately suspend payments of said annuity at that time.(2) The system may commence or resume annuity payments, including payment of any previously suspended payments, to the appropriate person once the beneficiary is determined to not have caused the death of the member or annuitant or the system receives:(A) a notice of conviction;(B) an amended death certificate; or(C) documentation from a law enforcement entity or prosecutor's office that is investigating the member's or annuitant's death stating that the beneficiary is not a suspect or a person of interest in the death of the member or annuitant.(3) No interest will be paid on any of the delayed or suspended annuity payments under this section or the Act.(b) In accordance with §851.004 of the Act, the system, board of trustees, director, members of an advisory committee or medical board appointed by the board of trustees, and staff of the system shall not be liable should the system: release any benefits to a person who is later convicted of causing the member's or annuitant's death; or, not release benefits to a person who was convicted of causing the death of a member or annuitant, as defined in §854.504 of the Act, and instead pay such benefits to another person pursuant to the provisions of §854.504 of the Act, but then the convicted person's conviction is later overturned.",
            "sourceNote": "Source Note: The provisions of this §123.13 adopted to be effective November 19, 2020, 45 TexReg 8171."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201765&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201765",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "123",
                "label": "ACTUARIAL TABLES AND BENEFIT REQUIREMENTS"
            },
            "rule": {
                "number": "§123.14",
                "label": "Certain Convicted Elected Officials Ineligible for Retirement Annuity"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201766&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201766",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) This section is being adopted pursuant to Government Code §810.003 and applies only to a person who is otherwise eligible for membership in the system because the person was elected or appointed to an elected office. In the event that a member or retiree has more than one membership account in the system through employment with more than one participating municipality in the system, this section applies only to the individual account or annuity that is associated with services for the participating municipality where the member or retiree was holding elected office when convicted of a qualifying felony while in that elected office.(b) Except as expressly provided otherwise, this section shall not apply to system benefits other than service retirement annuity benefits to the extent such other benefits are available to a member or retiree, including but not limited to: occupational disability benefits, or supplemental death benefits payable to the beneficiary(ies) or heir(s) of a member or retiree.(c) In this section, \"qualifying felony\" means any felony that is committed on or after June 6, 2017, involving one or more of the following:(1) bribery;(2) embezzlement, extortion, or other theft of public money;(3) perjury;(4) coercion of public servant or voter;(5) tampering with governmental record;(6) misuse of official information;(7) conspiracy or the attempt to commit any of the offenses described in paragraphs (1) - (6) of this subsection;(8) abuse of official capacity; or(9) as otherwise defined in Government Code, §810.003(a)(2).(d) A participating municipality must provide written notice to the system of the conviction of any member or retiree of the system who was elected or appointed to an elected office of the participating municipality and who is convicted of a qualifying felony committed while in elected office and arising directly from the official duties of that elected office. A participating municipality must provide the notice no later than the 30th day after the conviction of the member. The notice must:(1) clearly state the convicted person's name, social security number or other identifying information, title of elected office, date of conviction, court of jurisdiction, case number, qualifying felony violation, date of offense, and an explanation of the connection of the qualifying felony to the person's performance of his or her official duties;(2) include a copy of the official conviction of the person entered by the court, including the judge's affirmative finding of fact that the person is an elected or appointed holder of an elected office of the participating municipality who committed a qualifying felony while in office and in the course of performing official duties of that elected office; and(3) if applicable, include a copy of the court's award of all or a portion of the convicted person's service retirement annuity to the person's spouse pursuant to a just and right division upon the person's conviction or pursuant to a written agreement between the spouses as provided by Subchapter B, Chapter 4, Family Code, entered into prior to the person's commission of the offense.(e) Notwithstanding subsection (d)(3), of this section, for the system to administer any court order as described in that paragraph, the order also must meet the requirements for a qualified domestic relations order under Chapter 804, Government Code, and Chapter 129 of this title (\"QDRO\").(f) Upon receipt of notice as provided in Government Code §810.003 of a conviction of a qualifying felony, substantially similar to the notice required from a participating municipality, the system shall suspend payments of a service retirement annuity to a retiree who the system determines is ineligible to receive the annuity under Government Code §810.003(c) effective the month following the month in which the system receives such notice.(g) Subject to any applicable QDRO, a member who is ineligible to receive a service retirement annuity under Government Code §810.003(c) is entitled to a refund of the member's accumulated contributions, including interest earned on those accumulated contributions, subject to the convicted person applying for withdrawal of the accumulated contributions and interest in accordance with the Act and system rules. Upon such withdrawal, the person no longer shall be a member in the system in accordance with Government Code §852.104. A retiree whose service retirement annuity payments are suspended in accordance with Government Code §810.003(d) is not entitled to any refund or withdrawal from the system; provided, however, that:(1) the deceased retiree's beneficiary(ies), his or her estate or the estate of the deceased retiree whose service retirement annuity payments were suspended in accordance with Government Code §810.003(d) may receive a refund of unrecovered accumulated contributions in accordance with Government Code §854.502, to the extent that section applies; and(2) if a retiree also has a member account pursuant to Government Code §852.108 or §852.109, the person is entitled to a refund of such member account under this subsection if the person has not applied for retirement of such member account and is not receiving a retirement annuity for that member account at the time TMRS receives notice of the conviction.(h) System benefits payable to an alternate payee under a QDRO pursuant to Government Code Chapter 804 or Government Code §810.003(h) are not affected by:(1) a member's ineligibility to receive a service retirement annuity pursuant to Government Code §810.003(c), except to the extent that the alternate payee of a member who receives a refund of accumulated contributions and interest is eligible only for a refund of accumulated contributions and interest as provided in the QDRO; or(2) suspension of a retiree's service retirement annuity payments pursuant to Government Code §810.003(d) unless the alternate payee of a retiree convicted of a qualifying felony also is convicted of a felony as a party to the offense as defined by §7.01, Penal Code, or of another qualifying offense arising out of the same criminal episode as defined by §3.01, Penal Code, in which case the alternate payee forfeits the retiree's service retirement annuity and service retirement contributions to the same extent as the member.(i) Upon receipt of a notice of a judgment overturning the conviction of, or determining that the requirements for innocence under Civil Practice and Remedies Code §103.001(a)(2) are met for a person previously convicted for a qualifying felony described in Government Code §810.003, if the person was a retiree at the time of the conviction, the person is entitled to receive a lump sum amount equal to the accrued total of payments and interest earned on the payments withheld during the suspension period and may resume service retirement annuity payments. Under this subsection, \"interest earned on the payments withheld during the suspension period\" shall mean interest that is applied annually, without compounding, at the same rate set by the Board as the discount rate for determining the present value of future cash flows in developing the annuity purchase rate pursuant to §855.110 of the Act.",
            "sourceNote": "Source Note: The provisions of this §123.14 adopted to be effective November 19, 2020, 45 TexReg 8171."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201766&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201766",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "123",
                "label": "ACTUARIAL TABLES AND BENEFIT REQUIREMENTS"
            },
            "rule": {
                "number": "§123.15",
                "label": "Calculation of Member Supplemental Death Benefits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201767&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201767",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "To calculate a member's supplemental death benefit pursuant to §854.603 of the Act where the system's records show no contributions in any of the 12 months immediately preceding the month of death of the member, the system will require verification from the municipality of the rate of compensation payable to the member during the month of death and may require verification from the municipality of periods of employment of the member.",
            "sourceNote": "Source Note: The provisions of this §123.15 adopted to be effective November 19, 2020, 45 TexReg 8171."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201767&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201767",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "123",
                "label": "ACTUARIAL TABLES AND BENEFIT REQUIREMENTS"
            },
            "rule": {
                "number": "§123.16",
                "label": "Retiree Supplemental Death Benefit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201768&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201768",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Subject to subsection (b) of this section, if a retiree has more than one retirement account through TMRS after retiring from more than one participating municipality, and the participating municipality for each retirement account participates in the post-retirement supplemental death benefits under §854.604 of the Act, only one supplemental death benefit will be payable upon the death of such person. If a retiree has more than one retirement account through TMRS after retiring from more than one participating municipality, and the most recent retirement account was based on retirement from a municipality that does not provide a post-retirement supplemental death benefit for retirees, the retiree's beneficiary shall receive a post-retirement supplemental death benefit based on an earlier (and most recent) retirement account based on retirement from a municipality that does provide such a benefit, but the retiree's beneficiary shall not receive more than one supplemental death benefit.(b) If a participant, at the time of his or her death, is both (i) a retiree from a participating municipality that is then providing post-retirement supplemental death benefits and (ii) an employee of a participating municipality who is included within the coverage or extended coverage of such municipality's supplemental death program, only one supplemental death benefit will be payable upon the death of such person and such benefit will be the greater of the two amounts as calculated under §854.603 and 854.604 of the Act.(c) For purposes of §854.605(a)(2) of the Act, unless a member has directed otherwise on a TMRS prescribed form filed with the system, if a supplemental death benefit is payable upon the death of a retiree but the retiree's annuity has no further remaining payments after the death of the retiree, then such supplemental death benefit is payable to the beneficiary designation made for purposes of the retiree's retirement annuity.",
            "sourceNote": "Source Note: The provisions of this §123.16 adopted to be effective November 19, 2020, 45 TexReg 8171."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201768&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201768",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "123",
                "label": "ACTUARIAL TABLES AND BENEFIT REQUIREMENTS"
            },
            "rule": {
                "number": "§123.17",
                "label": "Actuarial Tables"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201769&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "201769",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) For the period from the January 22, 2001 original initial effective date of this section through December 31, 2014, service retirement benefits shall be calculated on the basis of the UP-1984 table with an age set back of two years for retired members and an age set back of eight years for beneficiaries of retired members.(b) For the period from the January 22, 2001 original initial effective date of this section through December 31, 2014, disability retirement benefits on disability retirements shall be calculated on the basis of the UP-1984 table with an age set back of two years for disabled annuitants and an age set back of eight years for beneficiaries of disabled annuitants.(c) Effective beginning January 1, 2015, service retirement benefits for retired members, and disability retirement benefits on disability retirements for disabled annuitants, shall be calculated on the basis of a 70%/30% male/female blend of the RP-2000 Blue Collar Table with 107.5% load, and with a fully generational Scale BB projection. Effective beginning January 1, 2015, service retirement benefits for beneficiaries of retired members, and disability retirement benefits on disability retirements for beneficiaries of disabled annuitants, shall be calculated on the basis of a 30%/70% male/female blend of the RP-2000 Blue Collar Table with 107.5% load, and with a fully generational Scale BB projection.(d) After consultation with the retirement system's actuary, the Board may elect by Board resolution to phase in over a reasonable period of time the impact on annuity purchase rates that may result from any changes in mortality tables, other actuarial tables, or actuarial equivalents adopted by the Board from time to time.",
            "sourceNote": "Source Note: The provisions of this §123.17 adopted to be effective November 19, 2020, 45 TexReg 8171."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=201769&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "201769",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "123",
                "label": "ACTUARIAL TABLES AND BENEFIT REQUIREMENTS"
            },
            "rule": {
                "number": "§123.18",
                "label": "Authority to Make Actuarial Changes"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204834&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "204834",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "After considering the results of the actuarial experience study performed by the retirement system's actuary or at such other times as necessary, the Board of trustees may adopt changes to the actuarial cost method, actuarial assumptions and mortality tables by Board resolution or other Board action. The Board resolution or action shall specify the first actuarial valuation and plan year affected by the changes.",
            "sourceNote": "Source Note: The provisions of this §123.18 adopted to be effective November 19, 2020, 45 TexReg 8171."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204834&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "204834",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "125",
                "label": "ACTIONS OF PARTICIPATING MUNICIPALITIES"
            },
            "rule": {
                "number": "§125.1",
                "label": "Optional Vesting Must Include All Departments"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204835&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "204835",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A participating municipality which adopts an optional vesting provision must include all participating departments. A composite participation date is optional but recommended.",
            "sourceNote": "Source Note: The provisions of this §125.1 adopted to be effective April 25, 2021, 46 TexReg 2587."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204835&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "204835",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "125",
                "label": "ACTIONS OF PARTICIPATING MUNICIPALITIES"
            },
            "rule": {
                "number": "§125.2",
                "label": "Composite Participating Date Requires Council Action"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204836&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "204836",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Adoption of a single composite participating date for a city with two or more participating dates must be at the election of and by council action.",
            "sourceNote": "Source Note: The provisions of this §125.2 adopted to be effective April 25, 2021, 46 TexReg 2587."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204836&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "204836",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "125",
                "label": "ACTIONS OF PARTICIPATING MUNICIPALITIES"
            },
            "rule": {
                "number": "§125.3",
                "label": "Effect of Adopting Composite Participating Due"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204837&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "204837",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A city which elects to adopt a composite participating date will be treated as if a single department for determining amortization periods and normal and prior service contribution rates; but accumulated prior service credits will be based on actual participating dates and periods of current service.",
            "sourceNote": "Source Note: The provisions of this §125.3 adopted to be effective April 25, 2021, 46 TexReg 2587."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204837&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "204837",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "125",
                "label": "ACTIONS OF PARTICIPATING MUNICIPALITIES"
            },
            "rule": {
                "number": "§125.4",
                "label": "When Composite Participating Date Must Be Adopted"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204838&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "204838",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A composite participating date must be elected by a city if contributions from one department are to be used to support the obligations of another department.",
            "sourceNote": "Source Note: The provisions of this §125.4 adopted to be effective April 25, 2021, 46 TexReg 2587."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204838&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "204838",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "125",
                "label": "ACTIONS OF PARTICIPATING MUNICIPALITIES"
            },
            "rule": {
                "number": "§125.5",
                "label": "Limitations on Buy Back Ordinances"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204840&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "204840",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Ordinances of participating municipalities agreeing to underwrite and assume the obligations rising out of the granting of creditable service under §853.003 of the Act, to persons who had terminated a previous membership, shall be limited to persons in the employment of the consenting municipality at the date specified in the ordinance, which date shall not be subsequent to the effective date of the ordinance.",
            "sourceNote": "Source Note: The provisions of this §125.5 adopted to be effective April 25, 2021, 46 TexReg 2587."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204840&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "204840",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "125",
                "label": "ACTIONS OF PARTICIPATING MUNICIPALITIES"
            },
            "rule": {
                "number": "§125.6",
                "label": "Optional Additional Contributions to Benefit Accumulation Fund"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204841&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "204841",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Effective January 1, 2008, a municipality may make deposits in excess of its actuarially required contribution to its account in the benefit accumulation fund. The deposit may be in the form of a lump sum payment or periodic payments. All funds deposited in a municipality's account in the benefit accumulation fund are held in trust by the retirement system and cannot be returned to the municipality.(b) The retirement system retains the right to not accept a payment if, in the opinion of the director, acceptance of the payment would result in an unreasonable administrative or investment burden. A decision by the director to not accept a contribution may be appealed to the board of trustees.(c) A contribution made in accordance with this section is not subject to the maximum contribution rules under §855.407 and §855.501 of the Act.(d) The retirement system may adopt reasonable policies and procedures to administer this section.",
            "sourceNote": "Source Note: The provisions of this §125.6 adopted to be effective April 25, 2021, 46 TexReg 2587."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204841&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "204841",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "125",
                "label": "ACTIONS OF PARTICIPATING MUNICIPALITIES"
            },
            "rule": {
                "number": "§125.7",
                "label": "Elected Officials"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204842&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "204842",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "If a participating municipality provides by ordinance that persons who hold and are regularly engaged in the performance of duties of an elective office that normally requires actual performance of services in a participating department of the municipality for not less than 1,000 hours a year are employees required to become members of the retirement system pursuant to §852.107 of the Act, then the system may require the municipality to provide information regarding the municipality's charter, budgets, departmental organization and similar information regarding the department in which the elective officials serve, in addition to providing certification of employee contributions based on compensation in accordance with the Act.",
            "sourceNote": "Source Note: The provisions of this §125.7 adopted to be effective April 25, 2021, 46 TexReg 2587."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204842&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "204842",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "125",
                "label": "ACTIONS OF PARTICIPATING MUNICIPALITIES"
            },
            "rule": {
                "number": "§125.8",
                "label": "Collection of Contributions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204843&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "204843",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The powers and duties of the board pursuant to §855.402 may be exercised or performed by the director or his or her designee.(b) Certification to the system by a participating municipality of the amount to be deducted from the compensation of each member that it employs (\"Member Contributions\") and of the names and monthly salaries of each employee of the municipality pursuant to §855.402 of the Act shall be done at least monthly through a system payroll report certified, either in writing or electronically, by the municipality and submitted to the system. Submission of a certified payroll report in accordance with this subsection by a municipality shall satisfy any requirement in the Act for a municipality to certify the Member Contributions or to provide a certified list of the names and monthly and annual salaries for employees to the system before January 31 of each year.(c) Member Contributions deducted and paid pursuant to §855.402 shall be for members who qualify as employees, as defined in the Act, of the participating municipality.(d) Payment of Member Contributions pursuant to §855.402 of the Act and municipality contributions pursuant to §855.403 of the Act shall be made by a participating municipality to the system at least monthly by electronic funds transfer unless the municipality provides written notice to the system of the reasons for which electronic funds transfers are impractical for the municipality or more costly to the municipality than otherwise.",
            "sourceNote": "Source Note: The provisions of this §125.8 adopted to be effective April 25, 2021, 46 TexReg 2587."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204843&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "204843",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "125",
                "label": "ACTIONS OF PARTICIPATING MUNICIPALITIES"
            },
            "rule": {
                "number": "§125.9",
                "label": "Correction of Errors"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204844&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "204844",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Service Credit and Contribution Errors.(1) A participating municipality is responsible for the correction of an error arising from an act or omission of the municipality that results in a person contributing more or less than the correct amount to the system or receiving more or less credited service, prior service credit, current service credit, or benefits than the person is rightfully entitled to receive under the system.(2) If the error involves member contributions, the participating municipality may initiate the correction process in a manner determined by the system.(A) The municipality will need to provide identifying information for the affected member or members, the time period during which the error occurred, and the amount of the correction to member contributions submitted by the municipality. The member contributions are determined according to the employee deposit rate in effect at the time that the error occurred.(B) The municipality will also need to submit its municipal contribution based on the sum total of the member contributions made in connection with the correction and the municipal contribution rate in effect at the time that the correction is made by the municipality.(3) Corrections to service credits or benefits shall be considered as part of, and funded in the same manner as, any other pension liabilities of the participating municipality; however, corrections will not include an adjustment for any missed annual interest credits or an adjustment or recalculation for updated service credits unless otherwise authorized under the Act.(4) The processing and authorization of all service credit and contribution errors will be administered in accordance with applicable system policies and procedures as adopted and amended from time to time.(b) For purposes of §802.1024 of the Government Code, if an overpayment is received because a person intentionally or knowingly provided inaccurate information or withheld accurate information from the system, that overpayment shall be deemed to be one that a reasonable person should have known the person is not entitled to receive.(c) The system may correct other errors caused by an act or an omission by appropriate means to ensure that the system complies with the terms set forth in the Act and maintains its qualified-plan status.(d) The system may adopt and amend policies and procedures to implement corrections of errors under the Act, Government Code §§802.1024 and 802.1025, and this Chapter of Part 6 of Title 34, Administrative Code. To the extent that the system has existing policies and procedures relating to correction of errors, the adoption of this section of Part 6 of Title 34, Administrative Code, will not invalidate, supplant, replace, or void such policy or procedure and they shall remain in full force and effect until further amended or revised by the system.",
            "sourceNote": "Source Note: The provisions of this §125.9 adopted to be effective April 25, 2021, 46 TexReg 2587."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204844&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "204844",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "125",
                "label": "ACTIONS OF PARTICIPATING MUNICIPALITIES"
            },
            "rule": {
                "number": "§125.10",
                "label": "Ordinances"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204839&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "204839",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except to the extent otherwise provided by the Act, an ordinance adopted by a participating municipality pursuant to the Act takes effect on either (i) the effective date stated in the ordinance, if the system receives the ordinance by the fifteenth day of the month after the effective date; or (ii) the first day of the month after the month in which the system receives the ordinance, if the ordinance does not specify an effective date or is not received by the system by the fifteenth day of the month after the specified effective date. Notwithstanding the foregoing, an ordinance adopted under §853.003 of the Act becomes effective on the actual date of final adoption by the participating municipality.(b) Pursuant to §§855.102 and 855.201 of the Act, the board authorizes the director of the system to approve those ordinances requiring approval of the board, under §§853.403 and 854.203(g) of the Act. All ordinances approved by the director shall be reported to the board at the next meeting.(c) For any entity that is not a municipality but (i) that is granted the standing of a municipality pursuant to §852.005 of the Act, or (ii) that the system determines to be a department of a participating municipality for purposes of the Act where such entity has a governing board separate from the governing body of the municipality, the governing board of such entity may by board resolution, or by other appropriate documentation normally taken by the governing board to take action, take any action that is required or authorized by the Act or this Part 6 of Title 34, Administrative Code, to be made by municipal ordinance.",
            "sourceNote": "Source Note: The provisions of this §125.10 adopted to be effective April 25, 2021, 46 TexReg 2587."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=204839&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "204839",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "125",
                "label": "ACTIONS OF PARTICIPATING MUNICIPALITIES"
            },
            "rule": {
                "number": "§125.11",
                "label": "Use of City Portal System"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214428&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214428",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Use of the system's electronic city portal system by a municipality shall be subject to system terms and conditions posted on the website for the city portal, which terms and conditions shall include, but may not be limited to, provisions regarding: authorization by a municipality for use of the city portal by the municipality representative accessing the portal; limiting access to the portal by the municipality to only authorized employees performing official duties for the municipality; keeping confidential information that is submitted through the portal where the information is made confidential by state or federal law; and, confirming that municipalities and their representatives are not agents of the system and may not speak for the system. The system may enforce the terms and conditions for use of the city portal system by law, by seeking equitable relief such as an injunction, or by denying or revoking access to the city portal system by a municipality.",
            "sourceNote": "Source Note: The provisions of this §125.11 adopted to be effective April 25, 2021, 46 TexReg 2587."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214428&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214428",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "127",
                "label": "MISCELLANEOUS RULES"
            },
            "rule": {
                "number": "§127.1",
                "label": "Procedures for Release of Board Records"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214429&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214429",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The director is the custodian of records of the Texas Municipal Retirement System and may delegate responsibilities as custodian to one or more employees of the system. The custodian shall coordinate release of system records for purposes allowed by law, including but not limited to Government Code Chapter 552 and §855.115, or as allowed by court or administrative rules. The custodian will certify to the authenticity of copies of system records.(b) Information regarding release of these records will be prominently posted and will contain basic information regarding the rights of the requester, the responsibilities of a governmental body and the procedures for inspecting or obtaining copies of public information.(c) Each request for information must be made in writing. The system may specify an email address to which requests under Chapter 552, Government Code, must be submitted.(d) Charges for providing copies of public information shall be the same as those provided by the Office of the Attorney General in the Texas Administrative Code, Title 1, Part 3, §70.3.(e) Any member of the legislature shall not be charged for one copy of a record while performing his/her duties. Additionally, if it is determined by the director that providing certain records benefits the general public, fees will not be required for these records.(f) All funds collected from releasing copies of records shall be credited to the expense fund under the administration of the board.",
            "sourceNote": "Source Note: The provisions of this §127.1 adopted to be effective August 1, 2023, 48 TexReg 4124."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214429&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214429",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "127",
                "label": "MISCELLANEOUS RULES"
            },
            "rule": {
                "number": "§127.3",
                "label": "Conformity with Internal Revenue Code: Preservation of Benefits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214430&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214430",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Pursuant to the authority of the board of trustees to act under the Act, and in accordance with the amendments to §415 of the Internal Revenue Code as set forth in Public Law 104-188, the annual benefit payable under the Act shall not be reduced under §854.007 of the Act except in conformity with those limitations on the payment of benefits set forth in the Internal Revenue Code as that Code applies from time to time to the Texas Municipal Retirement System.(b) Effective for limitation years beginning on or after January 1, 2010, the following paragraphs (1) - (5) of this subsection shall apply:(1) The defined benefit payable to a member of the system shall not exceed the applicable limits under Internal Revenue Code §415(b), as periodically adjusted by the Secretary of the Treasury pursuant to Internal Revenue Code §415(d). This limit adjustment shall also apply to a member who has had a severance from employment or, if earlier, an annuity starting date. Benefits that are subject to Internal Revenue Code §415(b) shall comply with the foregoing limit in each year during which payments are made. The foregoing limit shall be adjusted pursuant to the requirements of Internal Revenue Code §415(b)(2)(C) and (D) relating to the commencement of benefits at a date prior to age 62 or after age 65, subject to other applicable rules under Internal Revenue Code §415.(2) No adjustment shall be required to a benefit subject to an automatic benefit increase feature described in Treasury Regulation §1.415(b)-1(c)(5).(3) To the extent that Internal Revenue Code §415 and the Treasury Regulations thereunder require that an interest rate under Internal Revenue Code §417(e) apply, the applicable stability period shall be one calendar year beginning January 1, and the look-back month shall be the fourth full calendar month preceding the first day of the stability period (September).(4) If a member is, or has ever been, a participant in another qualified defined benefit plan (without regard to whether the plan has been terminated) maintained by the member's employer, as determined pursuant to Internal Revenue Code §§414(b), 414(c), and 415, the sum of the participant's benefits payable annually in the form of a straight life annuity from all such plans may not exceed the limit described in paragraph (1) of this subsection. Where the member's employer-provided benefits under all such defined benefit plans (determined as of the same age) would exceed the limit described in paragraph (1) of this subsection applicable at that age, the benefits accrued under all such other plans shall be reduced first in order to avoid exceeding the limit and shall be reduced under the system only to the extent that the reduction under such other plans is insufficient to avoid exceeding the limit.(5) The defined benefit payable to a member of the system plan shall be determined in accordance with the requirements of Internal Revenue Code §415(b) and the Treasury Regulations thereunder. The limitation year is the calendar year.",
            "sourceNote": "Source Note: The provisions of this §127.3 adopted to be effective August 1, 2023, 48 TexReg 4124."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214430&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214430",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "127",
                "label": "MISCELLANEOUS RULES"
            },
            "rule": {
                "number": "§127.4",
                "label": "Credited Service under the Uniformed Services Employment and Reemployment Rights Act"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214431&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214431",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Definitions.(1) Eligible Member--An employee of a participating municipality who is or would be considered to be employed in a position eligible for membership but who leaves employment with that municipality to perform service in the uniformed services; whose employer was notified of the obligation or intention of the employee to perform service in the uniformed services; who is released or discharged from such service on or after December 12, 1994, under honorable conditions; whose cumulative period of service in the uniformed services with respect to that participating municipality does not exceed five years not including periods excluded under 38 USC §4312(c); who applies for reemployment with that participating municipality within 90 days of release or discharge from the uniformed services, or after recovery from an illness or injury incurred in, or aggravated during, the performance of service in the uniformed services (but such recovery period does not exceed two years); and who is reemployed by the participating municipality.(2) Uniformed Services--The Armed Forces of the United States of America; the Army National Guard and the Air National Guard when engaged in active duty for training, inactive duty training, or full-time National Guard duty; the commissioned corps of the Public Health Service; and any other category of persons designated by the President in time of war or national emergency.(3) Service in the Uniformed Services--The performance of duty on a voluntary or involuntary basis in a uniformed service under competent authority and includes active duty, active duty for training, inactive duty for training, National Guard duty under Federal statute, and a period for which an employee is absent from a position of employment for the purpose of an examination of to determine the fitness of the employee to perform such duty.(4) Participating Municipality--A municipality as defined in §851.001(9) of the Act (including entities having the status of a municipality under Government Code, §852.005 of the Act) that is participating in the Texas Municipal Retirement System at the time the eligible member leaves employment with the municipality to perform service in the uniformed services; or a municipality that is not participating in the System at the time the employee leaves employment with the municipality to perform service in the uniformed services but commences participating during the period of the employee's performance of duty in a uniformed service.(b) Certification of Eligibility by Participating Municipality. An eligible member will be credited with current service in accordance with the Uniformed Services Employment and Reemployment Rights Act (the USERRA) (38 USC §4301 et seq.) upon certification by the participating municipality on forms provided by the system:(1) that the eligible member's reemployment application is timely;(2) that the eligible member has not exceeded the service limitations set forth in the USERRA;(3) that the eligible member was not released or discharged from the uniformed service under other than honorable conditions;(4) the period in which the eligible member performed service in the uniformed services;(5) that the eligible member did not receive service credit for the period of uniformed service;(6) the estimated compensation that the eligible member would have received from the municipality but for the period of service in the uniformed services; and(7) the eligible member's date of reemployment with the participating municipality.(c) Crediting of Current Service under the USERRA.(1) An eligible member shall be credited with one month of current service credit for each month or part of a month in which:(A) the eligible member performed service in the uniformed services; and(B) a person who begins military service prior to the 16th day of a calendar month, or terminates military service after the 15th day of a calendar month is considered to have served a full month; and(C) the participating municipality participated in the system.(2) An eligible member may, but is not required to, deposit with the system any or all employee contributions that would have been deposited to his/her individual account for each period during which he/she performed service in the uniformed services if the eligible member had been employed with the participating municipality during the period of uniformed service. Deposits under this provision are subject to the following rules:(A) The total deposits may not exceed the amount the eligible member would have been required to contribute had the eligible member remained continuously employed by the participating municipality throughout the period of service in the uniformed services.(B) The compensation upon which allowable deposits will be calculated is the estimated compensation that the eligible member would have received from the participating municipality but for the period of service in the uniformed services.(C) For purposes of determining the amount of current service credit and allowable monetary deposits, months of uniformed service and estimated compensation shall be calculated from the later of the date the eligible member entered service in the uniformed services or the date the participating municipality commenced participation in the system.(D) Within the allowable period for making deposits and subject to the maximum total amount of deposits, an eligible member may make deposits at any time and in any amount.(E) Deposits must be paid directly to the system by the eligible member or by the rollover or transfer of funds in accordance with the provisions of §127.6 of this title (relating to the Acceptance of Rollovers and Transfers). Optional deposits made under this section shall retain the same after-tax or pre-tax characterization that the funds have when deposited and may not be returned until the member terminates from all covered employment in this system.(F) Deposits will be allocated prospective interest only, and in the same manner as interest is allocated on member contributions to individual accounts.(G) Deposits, when received by the system, shall be credited to the eligible person's individual account and shall be considered to be contributions attributable to the months of uniformed service performed beginning with the earliest month of uniformed service.(H) For vesting and funding purposes, current service credit, and any monetary credit arising from voluntary deposits, shall be considered as having been earned through service with the reemploying municipality and as having been credited during the period of uniformed service.(I) An eligible member receiving service credit for a specific month pursuant to §853.506 may not receive service credit for the same month under any other provision of the Act.(J) Deposits must be made during a time period starting with the date of an eligible member's reemployment with the participating municipality and continuing for up to three (3) times the length of the member's immediate past period of uniformed service, with the repayment period not to exceed five (5) years. Deposits may be made only during this period and while the member is employed with the post-service reemploying municipality.(d) Death While on Military Leave. Effective for deaths occurring on or after January 1, 2007, if a member dies while performing qualified military service, the beneficiaries of the member are entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service) provided under the Texas Municipal Retirement System tax-qualified pension plan as if the member had resumed employment and then died, in accordance with §401(a)(37) of the Internal Revenue Code. \"Qualified military service\" means any service in the uniformed service (as defined in Chapter 43 of Title 38 of the United States Code) by any individual if such individual is entitled to reemployment rights under such Chapter with respect to such service.(e) Military Differential Pay. For purposes of the Texas Municipal Retirement System, prior to and on and after January 1, 2009, compensation as defined in §851.001(6) of the Act includes payments to an individual by a participating municipality who does not currently perform services for the participating municipality by reason of qualified military service as defined in subsection (d) of this section made in accordance with the participating municipality's current policy with regard to such qualified military service (hereafter referred to as \"military differential pay\"). For purposes of the Internal Revenue Code as it applies to the Texas Municipal Retirement System tax-qualified pension plan, effective January 1, 2009, a member receiving military differential pay shall be treated as an employee of the employer making the payment and the military differential pay shall be treated as compensation.(f) Construction. This section is intended to comply with USERRA and Internal Revenue Code §401(a)(37) and §414(u) and shall be construed in a manner consistent with those provisions.",
            "sourceNote": "Source Note: The provisions of this §127.4 adopted to be effective August 1, 2023, 48 TexReg 4124."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214431&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214431",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "127",
                "label": "MISCELLANEOUS RULES"
            },
            "rule": {
                "number": "§127.5",
                "label": "Prorating of Contributions Based on Compensation Limited by Internal Revenue Code §401(a)(17)"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214432&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214432",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The system may require participating municipalities to prorate contributions for an employee whose compensation is subject to and exceeds the compensation limit set pursuant to 26 U.S.C. §401(a)(17) (\"Compensation Limit\") by calculating the employee's contributions based on the Compensation Limit prorated equally over the remaining months in the calendar year.(b) If an employee for which a municipality is making prorated contributions pursuant to subsection (a) of this section separates from service with the municipality prior to the end of the calendar year, the municipality shall make additional contributions to the system based on the actual compensation paid to the employee, up to the amount of the Compensation Limit, prior to separation from service by the employee.",
            "sourceNote": "Source Note: The provisions of this §127.5 adopted to be effective August 1, 2023, 48 TexReg 4124."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214432&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214432",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "127",
                "label": "MISCELLANEOUS RULES"
            },
            "rule": {
                "number": "§127.6",
                "label": "Acceptance of Rollovers and Transfers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214433&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214433",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The system may accept the funds described in subsections (b) and (c) of this section, subject to the restrictions of this section.(b) If permitted under and subject to the provisions of federal law, the system may accept an eligible rollover distribution from another eligible retirement plan in payment of all or a portion of any deposit a member is permitted under applicable law to make with the system for service credit.(1) An \"eligible rollover distribution\" is any distribution of all or any portion of the balance to the credit of the member from an eligible retirement plan. An eligible rollover distribution does not include the following:(A) any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the member or the joint lives (or joint life expectancies) of the member and the member's designated beneficiary, or for a specified period of ten years or more;(B) any distribution to the extent such distribution is required under Internal Revenue Code §401(a)(9);(C) any distribution which is made upon hardship of the member; or(D) the portion of any distribution that is not includible in gross income.(2) An \"eligible retirement plan\" is any program defined in Internal Revenue Code §401(a)(31) and §402(c)(8)(B), from which the member has a right to an eligible rollover distribution, as follows:(A) an individual retirement account under Internal Revenue Code §408(a);(B) an individual retirement annuity under Internal Revenue Code §408(b) (other than an endowment contract);(C) a qualified trust;(D) an annuity plan under Internal Revenue Code §403(a);(E) an eligible deferred compensation plan under Internal Revenue Code §457(b) which is maintained by an eligible employer under Internal Revenue Code §457(e)(1)(A); and(F) an annuity contract under Internal Revenue Code §403(b).(c) If permitted under and subject to the provisions of federal law, the system may accept a direct trustee-to-trustee transfer of funds from a plan described under §403(b) or §457(b) of the Internal Revenue Code in payment of all or a portion of any deposit a member is permitted to make with the system for service credit.(d) In order to authorize the rollover or transfer of funds described in this section, a member shall provide or cause to be provided to the system information sufficient for the system to reasonably conclude that the contribution is a valid rollover or direct trustee-to-trustee transfer as permitted under federal tax law. If the system later determines that a contribution was an invalid rollover or direct trustee-to-trustee transfer or otherwise not permitted under federal tax law, the system may take any action appropriate or required by the Internal Revenue Code or regulations issued thereunder, including return of the invalid contribution and, if applicable, any earnings attributed thereto to the member within a reasonable time after the determination and cancellation of any credit purchased with the returned amounts.(e) The system shall construe and administer this section in a manner such that the plan will be considered a qualified plan under §401(a) of the Internal Revenue Code of 1986, (United States Code, Title 26, §401).",
            "sourceNote": "Source Note: The provisions of this §127.6 adopted to be effective August 1, 2023, 48 TexReg 4124."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214433&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214433",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "127",
                "label": "MISCELLANEOUS RULES"
            },
            "rule": {
                "number": "§127.7",
                "label": "Rollovers of Plan Distributions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214434&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214434",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A distributee may elect, at the time and in the manner prescribed by the Board of Trustees, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover.(b) The terms \"eligible rollover distribution\" and \"eligible retirement plan\" are defined as follows:(1) An \"eligible rollover distribution\" is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include the following:(A) any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of ten (10) years or more;(B) any distribution to the extent such distribution is required under §401(a)(9) of the Internal Revenue Code of 1986, as amended from time to time (the \"Internal Revenue Code\"); or(C) the portion of any distribution that is not includible in gross income.(2) An \"eligible retirement plan\" includes:(A) an individual retirement account described in Internal Revenue Code §408(a);(B) an individual retirement annuity described in Internal Revenue Code §408(b);(C) an annuity plan described in Internal Revenue Code §403(a);(D) a qualified trust described in Internal Revenue Code §401(a) that accepts the distributee's eligible rollover distribution;(E) an annuity contract described in Internal Revenue Code §403(b);(F) an eligible plan under Internal Revenue Code §457(b), which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this plan; or(G) for distributions made after December 31, 2007, a Roth IRA as described in Internal Revenue Code §408A(b).(3) The definition of eligible retirement plan also shall apply in the case of a distribution to a surviving spouse, or to a spouse or former spouse who is the alternate payee under a qualified domestic relations order as defined in Internal Revenue Code §414(p).(4) A \"distributee\" includes an employee or former employee. In addition, the employee's or former employee's surviving spouse and the employee's or former employee's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Internal Revenue Code §414(p), are distributees with regard to the interest of the spouse or former spouse.(5) A \"direct rollover\" is a payment by the plan to the eligible retirement plan specified by the distributee.(c) Notwithstanding anything in this section to the contrary, a portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax contributions which are not includible in gross income. However, such portion may be paid only in a direct trustee-to-trustee transfer to an individual retirement account or annuity described in Internal Revenue Code §§408(a) or (b), or to a qualified defined contribution plan described in Internal Revenue Code §401(a) or an Internal Revenue Code §403(b) annuity contract that, in each case, agrees to separately account for amounts so transferred, and the earnings on these amounts, including separate accounting for the portion of such distribution which was includible in gross income (if not for the rollover exclusion) and the portion of such distribution which was not includible in income (determined without regard to the rollover exclusion). Without limiting the foregoing, for distributions made after December 31, 2006, such portion may be also be paid in a direct trustee-to-trustee transfer to any type of qualified plan described in Internal Revenue Code §401(a) (whether or not a defined contribution plan) that agrees to separately account for amounts so transferred, and the earnings on these amounts, including separate accounting for the portion of such distribution which was includible in gross income (if not for the rollover exclusion) and the portion of such distribution which was not includible in income (determined without regard to the rollover exclusion). Without limiting the foregoing, for distributions made after December 31, 2007, a portion of a distribution shall not fail to be an eligible rollover distribution merely because it is paid in a direct trustee-to-trustee transfer to a Roth IRA as described in Internal Revenue Code §408A(b).(d) Rollovers by Nonspouse Beneficiaries. Effective for distributions on or after January 1, 2010, a member's beneficiary who is not the surviving spouse of the deceased member may elect to have an eligible rollover distribution paid directly to an eligible retirement plan that is an inherited individual retirement account described in Internal Revenue Code §408(d)(3)(C) to the extent permitted by Internal Revenue Code §402(c)(11).(e) The Board, the system and its employees and agents are not responsible for assuring that the distributee is eligible to make a rollover or for the tax consequences of any such rollover.",
            "sourceNote": "Source Note: The provisions of this §127.7 adopted to be effective August 1, 2023, 48 TexReg 4124."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214434&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214434",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "127",
                "label": "MISCELLANEOUS RULES"
            },
            "rule": {
                "number": "§127.8",
                "label": "Plan Limitations"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214435&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214435",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Effective January 1, 1996, for individuals who first became members of the system on or after January 1, 1996, the amount of compensation used to determine the retirement benefit of a member must not exceed the amount of compensation permitted to be taken into account under the plan and Internal Revenue Code §401(a)(17) as then in effect and as amended, indexed in the same manner and for the same periods as provided by that section. The limits under Internal Revenue Code §401(a)(17) shall not apply to individuals who first became members of the system before January 1, 1996.",
            "sourceNote": "Source Note: The provisions of this §127.8 adopted to be effective August 1, 2023, 48 TexReg 4124."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214435&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214435",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "127",
                "label": "MISCELLANEOUS RULES"
            },
            "rule": {
                "number": "§127.9",
                "label": "Authorization of Certain Payments in Accordance with the Pension Protection Act of 2006"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214436&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214436",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Effective with annuity payments that become due January 2008, the retirement system is authorized to make disbursements in accordance with Section 845 of the Pension Protection Act of 2006, Pub. L. 109-280 and related regulations.(b) The director is authorized to adopt reasonable policies and procedures to implement and administer this section.",
            "sourceNote": "Source Note: The provisions of this §127.9 adopted to be effective August 1, 2023, 48 TexReg 4124."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214436&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214436",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "127",
                "label": "MISCELLANEOUS RULES"
            },
            "rule": {
                "number": "§127.10",
                "label": "Conformity with Internal Revenue Code: Additional Provisions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214437&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214437",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The system is a governmental plan within the meaning of §414(d) of the Internal Revenue Code of 1986, as amended from time to time (the \"Internal Revenue Code\").(b) The rights of members to benefits accrued, to the extent funded, will become vested to the extent required by, and upon the events set forth in, Treasury Regulation §1.401-6(a)(1).(c) The term \"employee,\" as defined in §851.001(8) of the Act, shall be limited to common law employees of a municipality, and shall exclude leased employees within the meaning of Internal Revenue Code §414(n).(d) With respect to §851.002 of the Act, and notwithstanding any provision of the system to the contrary, reversions will be permitted only to the extent allowed under the Internal Revenue Code and any related guidance thereunder, including, but not limited to, a contribution made because of a good faith mistake of fact that is returned within one year of the date the contribution was made as permitted under Revenue Ruling 91-4, or as permitted by subsequent guidance.(e) Repayments of previously paid out benefits, including the reestablishment of credit under §853.003 of the Act, shall comply with Internal Revenue Code §415(k)(3) and any Treasury Regulations thereunder. For purchases of permissive service credit that are described in Internal Revenue Code §415(n), including any such purchases under Chapter 853 of the Act, the provisions of Internal Revenue Code §415(n) and any Treasury Regulations thereunder shall apply, including the provisions of Internal Revenue Code §415(n)(3)(B) that, except as provided in Internal Revenue Code §415(n)(3)(D):(1) no more than five years of nonqualified service credit within the meaning of Internal Revenue Code §415(n)(3)(C) may be taken into account under Internal Revenue Code §415(n); and(2) no nonqualified service credit within the meaning of Internal Revenue Code §415(n)(3)(C) may be taken into account under Internal Revenue Code §415(n) before a member has at least five years of participation in the system.(f) Notwithstanding any provision of the system to the contrary, the system shall comply with Internal Revenue Code §401(a)(31)(B) and applicable Treasury Regulations thereunder.",
            "sourceNote": "Source Note: The provisions of this §127.10 adopted to be effective August 1, 2023, 48 TexReg 4124."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214437&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214437",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "127",
                "label": "MISCELLANEOUS RULES"
            },
            "rule": {
                "number": "§127.11",
                "label": "Required Minimum Distributions: General Rule, Forfeiture and Reinstatement"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214438&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214438",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) \"Required beginning date\" means that April 1 of the calendar year following the later of (i) the calendar year in which the member attains the applicable age, or (ii) the calendar year in which the member terminates employment with all participating municipalities. For purposes of this section, \"applicable age\" means the following ages, unless otherwise provided under Section 401(a)(9)(c) of the Internal Revenue Code, as amended from time to time:(1) age 70 if born before July 1, 1949;(2) age 72 if born after June 30, 1949 and before January 1, 1951;(3) age 73, if born on or after January 1, 1951.(b) General Rules.(1) In accordance with Internal Revenue Code Section 401(a)(9), a member must withdraw (refund) or rollover all accumulated contributions credited to that member's individual account pursuant to § 852.103 or retire from TMRS on or before the member's required beginning date.(2) With respect to §854.003(d) and §854.104(f) of the Act, and notwithstanding any provision of the system to the contrary, the system shall comply with Internal Revenue Code §401(a)(9), including the minimum distribution incidental benefits rule of Internal Revenue Code §401(a)(9)(G), Treasury Regulations §§1.401(a)(9)-2 through 1.401(a)(9)-9 and all additional provisions prescribed in revenue rulings, notices, and other guidance published in the Internal Revenue Bulletins, pursuant to a reasonable and good faith interpretation of Internal Revenue Code §401(a)(9).(3) The system may establish and revise, from time to time, procedures to locate any member whose information is missing, inaccurate or incomplete.(c) Forfeiture of Benefits. Pursuant to §854.104(f) of the Act and subject to subsections (b)(2), (b)(3), and (d) of this section, if, after the system has made a reasonable effort to locate a member and obtain a completed application, a member has not refunded or rolled over their individual account or begun to receive payment of a service retirement annuity or disability retirement annuity before their required beginning date, then effective as of the member's required beginning date:(1) no further interest credits will be applied to the member's individual account pursuant to §855.306(b) of the Act, and(2) the member's accumulated contributions and eligibility to receive a service retirement annuity or disability retirement annuity under the Act shall be forfeited in accordance with Treasury Regulation §1.411(a)-4(b)(6).(d) Reinstatement of Benefits. If a member (or a beneficiary of any such member) whose benefits have been forfeited pursuant to subsection (c) of this section, files a complete application for withdrawal (refund) or for retirement from TMRS, the system will reinstate the member's account and right to receive retirement benefits under the Act, without interest or adjustment for earnings after the date of such forfeiture and, as applicable:(1) refund the amount of accumulated contributions credited to the member's individual account as of the required beginning date in accordance with §852.103 of the Act; or(2) pay an annuity, pursuant to §§854.103, 854.104 or 854.105 of the Act, calculated in accordance with subsection (e) of this section; provided however, that any annuity payments attributable to the period of time between the required beginning date and the last day the first month following the date that a complete retirement application is received (\"delayed beginning date\"), shall be permanently forfeited and shall not be restored.(e) To comply with Internal Revenue Code §401(a)(9), the calculation of the retirement annuity payable pursuant to subsection (d) of this section shall modify §§854.002(b) and (c) of the Act to calculate the prior and current service annuity amounts using the member's age and the member's individual account balance as of the member's required beginning date.(f) An annuity payable pursuant to subsection (d) of this section in accordance with §854.004 of the Act shall become payable as of the delayed beginning date and no payments shall be paid for the period of time from the member's required beginning date to the delayed beginning date.(g) This section shall apply to any member who is eligible to retire from TMRS and has terminated employment with all participating municipalities, without regard to whether that member is contributing to a system that participates in the Proportionate Retirement Program set forth in Chapter 803 of the Texas Government Code.(h) The beneficiary of a member who dies after the member's required beginning date but before a member's delayed beginning date may apply for benefits pursuant to §854.105 of the Act, however such benefits shall be calculated in accordance with subsections (e) and (f) of this section.",
            "sourceNote": "Source Note: The provisions of this §127.11 adopted to be effective August 1, 2023, 48 TexReg 4124."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214438&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214438",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "127",
                "label": "MISCELLANEOUS RULES"
            },
            "rule": {
                "number": "§127.12",
                "label": "Refund of Unrecovered Contributions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214439&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "214439",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A lump-sum benefit payment made pursuant to §854.502 of the Act, regarding refund of unrecovered contributions, from an account of a member who had service with more than one participating municipality shall be calculated on a municipality-by-municipality basis for payment from the benefit accumulation fund.",
            "sourceNote": "Source Note: The provisions of this §127.12 adopted to be effective August 1, 2023, 48 TexReg 4124."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=214439&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "214439",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "127",
                "label": "MISCELLANEOUS RULES"
            },
            "rule": {
                "number": "§127.13",
                "label": "Late Contributions Sent Electronically"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209993&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "209993",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Contributions sent electronically to the system's depository shall be considered timely remitted under §855.410 of the Act if the contributions are received by the system's depository by the 15th day of the month.",
            "sourceNote": "Source Note: The provisions of this §127.13 adopted to be effective August 1, 2023, 48 TexReg 4124."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209993&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "209993",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "129",
                "label": "DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§129.1",
                "label": "Purpose"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209994&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "209994",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The Texas Municipal Retirement System (the system) receives a substantial number and variety of domestic relations orders as that term is defined in §129.2 of this title (relating to Definitions) which purport to divide the accumulated contributions of members of the system, and/or the retirement benefits of such members, as part of divorce or other domestic relations proceedings.(b) Many of those orders contain provisions that would require the system to attempt to determine what effect the order is intended to have on accumulated contributions and/or retirement benefits upon the happening of certain events. The board of trustees of the system has therefore adopted the rules and procedures set forth in this chapter, in order to establish a process whereunder it can be determined if a particular domestic relations order clearly divides all benefits that may be payable under the Act, clearly advises the system as to whom benefits are to be paid and in what manner and does not purport to require payments to be made in a manner that would conflict with the Act.",
            "sourceNote": "Source Note: The provisions of this §129.1 adopted to be effective July 1, 2022, 47 TexReg 3272."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209994&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "209994",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "129",
                "label": "DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§129.2",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209995&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "209995",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Act--Texas Government Code, Title 8, Subtitle G, as amended.(2) Alternate payee--A spouse, former spouse, child, or other dependent of a member or retiree who is recognized by a domestic relations order, as having a right to receive all or a portion of the benefits payable by the system with respect to such member or retiree.(3) Benefits--Any of the payments or benefits described in §129.6(a) and (b) of this title (relating to Order Should Divide All Benefits).(4) Domestic relations liaison--A person who is acting on behalf of the system and authorized by the director of the system or by way of their position in the system to receive and take action concerning domestic relations orders that are sent or delivered to the system.(5) Domestic relations order--Any judgment, decree, or order signed by the presiding judge of a court of competent jurisdiction (including one which approves a property settlement agreement) which:(A) relates to the provision of child support, temporary support, or marital property rights to a spouse, former spouse, child, or other dependent of a member or former member of the system; and(B) is made pursuant to the Texas Family Code or any other applicable domestic relations or community property law.(6) Participant--A member or former member of the system who has sums of money on deposit with the system or who is or may become entitled to receive any benefit from the system based on membership in the system. This may also include a beneficiary who is entitled to receive a benefit payment from the system.(7) Parties--The participant and all alternate payees named in a domestic relations order.(8) Pursue action--For purposes of this chapter, a participant or alternate payee pursues action with respect to a domestic relations order by filing with a court of competent jurisdiction a pleading or a written request for a hearing date for the court to consider a proposed domestic relations order based on a system prescribed form or to consider clarification of a similar domestic relations order.",
            "sourceNote": "Source Note: The provisions of this §129.2 adopted to be effective July 1, 2022, 47 TexReg 3272."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209995&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "209995",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "129",
                "label": "DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§129.3",
                "label": "Notice Regarding Receipt of Order"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209996&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "209996",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Upon receiving a domestic relations order, and subject to §129.7 and §129.9 of this title (relating to Conditional Approval of Order and Order Appearing Not To Qualify), the domestic relations liaison shall promptly send a notice to those persons listed in paragraphs (1) and (2) of this section, stating that the system has received the domestic relations order and that it will be acted upon by the system in accordance with the procedures set forth in this chapter. The persons who are to receive the notice are:(1) the participant and/or, if the participant is represented by an attorney (and the system has been provided with the name and address of such attorney in connection with the domestic relations order), such attorney or such other person as may be designated in writing by the participant with regard to the domestic relations order; and(2) all alternate payees named in the domestic relations order if their names and addresses are provided in the order; and/or, if an alternate payee is represented by an attorney (and the system has been provided with the name and address of such attorney in connection with the domestic relations order), to such attorney or such other person as may be designated in writing by an alternate payee with regard to the domestic relations order.",
            "sourceNote": "Source Note: The provisions of this §129.3 adopted to be effective July 1, 2022, 47 TexReg 3272."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209996&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "209996",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "129",
                "label": "DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§129.4",
                "label": "Requirements for Qualified Domestic Relations Orders"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210000&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "210000",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A recital in a domestic relations order to the effect that it is a qualified domestic relations order is not sufficient to make it qualified under this chapter. For a domestic relations order to be a qualified domestic relations order under this chapter, the order must be determined, either by the system, or by a court of competent jurisdiction having actual knowledge of the provisions of this chapter, to meet the requirements set forth in §804.003, Texas Government Code, the Act and this chapter. In making that determination, the system may take into account: the order itself; any clarification order entered by a court of competent jurisdiction; and any affidavits or agreements between the parties that were qualified by the system prior to the effective date of this section. In this chapter, references to the requirements of this chapter for qualified domestic relations orders shall be construed in accordance with the provisions and requirements of Chapter 804, Texas Government Code.(b) The system has prescribed forms that are pre-approved by the system as meeting the requirements of Texas Government Code §804.003 and this chapter for a qualified domestic relations order. The prescribed forms are available on the system's website and upon request. The prescribed forms incorporate by reference the definitions set forth in this chapter and the provisions set forth in §129.14 of this title (relating to Provisions Incorporated by Reference). The system may reject any domestic relations order submitted to the system that does not utilize the applicable prescribed form.",
            "sourceNote": "Source Note: The provisions of this §129.4 adopted to be effective July 1, 2022, 47 TexReg 3272."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210000&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "210000",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "129",
                "label": "DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§129.5",
                "label": "Contents of Domestic Relations Order"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209997&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "209997",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A domestic relations order should clearly specify:(1) the name, taxpayer identification number, and last known address of the participant and of each alternate payee covered by the order, provided that confidential personal information may be provided to the system through alternate methods in accordance with §121.5 of this title (relating to Forms and Applications for Benefits, or Asserting Other Claims);(2) the amount or percentage of the participant's benefits to be paid by the system to each such alternate payee, or the manner in which such amount or percentage is to be determined;(3) the number of payments or period of time to which such order applies; and(4) whether the order applies only to benefits under this system or, if not, to what other plans the order applies, and in what manner.(b) A domestic relations order does not meet the requirements of this chapter for qualified domestic relations orders if:(1) it purports to require the system to provide any type or form of benefit, or any option, not otherwise authorized under the Act;(2) it purports to require the system to provide increased benefits determined on the basis of actuarial value;(3) it purports to require the system to make any payment of any benefit or portion thereof at a time not otherwise authorized under the Act;(4) it purports to require the payment of benefits to an alternate payee which are required (or purported to be required) to be paid to another alternate payee under another order previously determined by the system to be a qualified domestic relations order under this chapter (including any such order so determined on an informal basis prior to adoption of this chapter); or(5) it is worded in a manner that does not advise the system (taking into account the provisions of the Act, the wording of the order, and the provisions of this chapter) in clear and unambiguous language as to what portion of the benefits that otherwise might be or become payable to the participant (or to the participant's designee or estate) are to be paid to each alternate payee under the order.",
            "sourceNote": "Source Note: The provisions of this §129.5 adopted to be effective July 1, 2022, 47 TexReg 3272."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209997&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "209997",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "129",
                "label": "DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§129.6",
                "label": "Order Should Divide All Benefits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209998&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "209998",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) BEFORE RETIREMENT. Under the Act, a participant's accumulated contributions (with interest as allowed thereon under the Act) may become payable to a participant upon terminating municipal employment and membership in the system prior to retirement, as set forth in the Act, §852.103, or may become payable to the participant's designee or estate under the Act, §854.501, in the event of the participant's death prior to retirement. A domestic relations order regarding a participant who has not yet retired should clearly state the basis upon which any portion of such sums should be payable to an alternate payee.(b) AT AND AFTER RETIREMENT. Under the Act, a service retirement benefit or a disability retirement benefit may become payable to the participant (and, upon the participant's death, to a designee) as set forth in the Act, §§854.101-854.105 and §§854.405-854.411. A domestic relations order regarding a participant should clearly state the basis upon which any portion of such retirement benefit should be payable to an alternate payee.(c) In the event that a domestic relations order that is signed by the presiding judge after the effective date of this section calls for the division of benefits on the basis of accumulated contributions, but the order does not clearly state how interest allowed on the accumulated contributions after the date of divorce will be divided, then the accumulated contributions under the applicable sections of the Act from which the alternate payee's portion of benefits will be calculated shall include interest thereon as allowed by the plan after the date the divorce was granted.(d) A supplemental death benefit may become payable under the Act, §854.603 or §854.604, upon the death of a participant who was or had been employed by certain of the municipalities participating in the system. That benefit is not the property of a participant, but rather is a benefit that is paid by the system as a result of the death of a participant. If any portion of such benefit becomes payable to an alternate payee under the express wording of a qualified domestic relations order, it will be so paid upon the death of the participant; however, if the domestic relations order does not specifically provide that some portion of that benefit is to be paid to an alternate payee, then no portion of the supplemental death benefit shall be paid otherwise than as set forth in the Act, §854.605.",
            "sourceNote": "Source Note: The provisions of this §129.6 adopted to be effective July 1, 2022, 47 TexReg 3272."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209998&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "209998",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "129",
                "label": "DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§129.7",
                "label": "Conditional Approval of Order"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209999&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "209999",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "If, upon receipt of a domestic relations order, the domestic relations liaison is of the opinion that it complies in all ways with the requirements for a qualified domestic relations order hereunder, the domestic relations liaison shall so state in the notice to be sent under §129.3 of this title (relating to Notice Regarding Receipt of Order). In that event, the notice shall also state that the system will thereafter pay the sums payable under the order in the manner set forth in the order, unless any of the parties notifies the system in writing, within two weeks (and such additional time as may be allowed by the system upon good cause being shown) from the date of the notice letter, that they are contesting the order.",
            "sourceNote": "Source Note: The provisions of this §129.7 adopted to be effective July 1, 2022, 47 TexReg 3272."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=209999&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "209999",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "129",
                "label": "DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§129.8",
                "label": "Payments under Conditionally Approved Order"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210001&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "210001",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If, upon receipt of a domestic relations order, the domestic relations liaison conditionally approves that order, the system may (but shall not be required to) commence making payments pursuant to that order.(b) If, within the period of time set forth in the notice from the domestic relations liaison, either party notifies the system in writing that they are contesting the order, no payments shall thereafter be made except in accordance with §129.10 of this title (relating to Procedures for Determination - Contested Order).(c) If conditional approval of an order is given by the domestic relations liaison under this section, and the system does not receive written notice of any contest of that determination within the period specified, the order shall be deemed to be a qualified domestic relations order hereunder, and the system will make payment in accordance therewith.(d) Neither the system nor any officials or employees of the system shall be liable to any person for making payment pursuant to an order under this section.",
            "sourceNote": "Source Note: The provisions of this §129.8 adopted to be effective July 1, 2022, 47 TexReg 3272."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210001&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "210001",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "129",
                "label": "DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§129.9",
                "label": "Order Appearing Not To Qualify"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210002&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "210002",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If, upon receipt of a domestic relations order, the domestic relations liaison is of the opinion that the order does not comply in all ways with the requirements for a qualified domestic relations order under the provisions of this chapter, the domestic relations liaison shall notify the parties that the order does not qualify as a qualified domestic relations order in the notice sent under §129.3 of this title (relating to Notice Regarding Receipt of Order, such notice being hereinafter referred to as \"§129.3 Notice\"). Unless the participant or the alternate payee pursues action in a court of competent jurisdiction within 90 days of the date of the §129.3 Notice to bring the order into compliance with the requirements of this chapter relating to qualified domestic relations orders, the system will proceed as if it never had received the non-compliant order. The system may require a certified copy of the filed pleading to pursue action on the order.(1) BEFORE RETIREMENT. If the order relates to a participant who has not yet begun to receive service retirement or disability retirement benefit payments subject to the order when the system receives the order, the system may delay action on an application by the participant for benefits that would be subject to the order (if the order were to be qualified under this chapter), and the domestic relations liaison may proceed in accordance with the remaining subsections of this section. If the domestic relations liaison has made an initial determination under this section that the order does not appear to qualify, the system nonetheless may (but shall not be required to) pay to the participant all or any portion of any benefits to which the participant appears entitled under the order while interpreting the division of benefits in the light most beneficial to the alternate payee under the domestic relations order and state law. In determining under this paragraph whether or not to process a benefits application and begin payments to a participant pending pursuit of a qualified domestic relations order, the system may take into consideration the difficulty in dividing the benefits between the parties prior to receipt of, or in re-dividing the benefits after receipt of, a qualified domestic relations order. Any benefits not paid under this paragraph shall be retained by the system until they are paid under one of the remaining subsections of this section.(2) AFTER RETIREMENT. If the domestic relations order relates to a participant who is receiving service retirement or disability retirement benefit payments subject to the order when the system receives the order, the domestic relations liaison may proceed in accordance with this paragraph and the remaining subsections of this section.(A) If the order proposes to award the alternate payee a percentage of the then-current monthly benefit payable to participant (commonly referred to as a \"carve-out\"), the system shall reduce the amount to be paid to the participant to the portion of benefits to which the participant appears entitled under the order while interpreting the division of benefits in the light most beneficial to the alternate payee under the domestic relations order and state law. Any benefits not paid to the participant under this subparagraph shall be retained by the system until they are paid under one of the remaining subsections of this section.(B) If the domestic relations order proposes to award the alternate payee an interest in the participant's benefits from the system other than a carve-out (as described in subparagraph (A) of this paragraph), the system is not required to reduce the amount to be paid to the participant and retain the amount withheld for the alternate payee until the system receives an order that complies with the requirements of this chapter for qualified domestic relations orders because of the difficulty in dividing the benefits between the parties prior to receipt of, or in re-dividing the benefits after receipt of, a qualified domestic relations order. If a domestic relations order that falls under this subparagraph is subsequently brought into compliance with the requirements of this chapter for qualified domestic relations orders, payments to the alternate payee under the qualified domestic relations order shall be made prospectively only.(b) If 60 days have elapsed since the date of the §129.3 Notice, and neither party has submitted documentation to the system reflecting that action has been pursued to bring the order into compliance, the domestic relations liaison will send another notice letter to each party by first class mail that reminds the parties that unless documentation has been submitted to the system showing that action has been pursued before the expiration of the 90-day period, the order will be determined not to be a qualified domestic relations order and the system will pay to the participant any sums that have been withheld up to that date, and shall thereafter make payment of benefits as if no order had been received by the system.(c) If neither party has timely pursued before the expiration of the 90-day period described in subsection (a) of this section, or any applicable extension for good cause granted under this subsection, in accordance with this section or in accordance with §129.11 of this title (relating to Procedure for Obtaining Formal Hearing), the order is not a qualified domestic relations order and the system will pay to the participant any benefits that have been withheld hereunder after 90 days from the date of the §129.3 Notice unless the system has granted an extension for good cause prior to the expiration of the 90 days. Either party may request extensions for good cause, while pursuing court action to bring an order into compliance with the requirements of this chapter for a qualified domestic relations order, for up to 18 months from the date the domestic relations order was received. Any initial request for any extension for good cause must be received by the system prior to the expiration of 90 days after the date of the §129.3 Notice, and determination of good cause for extensions and the length of any extension shall be made by the system in its sole discretion. Any request for an additional extension must be received by the system prior to the expiration of the then applicable extension period. \"Good Cause\" may include, but shall not be limited to, notice of a hearing before the court with jurisdiction over the domestic relations order.(d) Upon the expiration of 18 months from the date the domestic relations order was received, if the domestic relations order has not been qualified, the system will pay to the participant all benefits that have been withheld hereunder up to that date and shall thereafter make payment of benefits as if no order had been received by the system.(e) In the event that, in the determination of the domestic relations liaison, the domestic relations order is subsequently brought into compliance with the requirements of this chapter for qualified domestic relations orders, the domestic relations liaison shall so notify the parties in writing, and the system will thereafter pay the sums payable under the order (including any benefits previously retained by the system) in the manner set forth in the order, unless such order is subsequently set aside or modified by a court of competent jurisdiction and such modified order is determined by the system to be qualified in accordance with the requirements of this chapter.(f) Neither the system nor any officials or employees of the system shall be liable for making any payment under this section.",
            "sourceNote": "Source Note: The provisions of this §129.9 adopted to be effective July 1, 2022, 47 TexReg 3272."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210002&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "210002",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "129",
                "label": "DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§129.10",
                "label": "Procedures for Determination - Contested Order"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210003&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "210003",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If, in response to a notice sent to the parties under §129.7 of this title (relating to Conditional Approval of Order) written notice of a contest is timely received, the domestic relations liaison shall notify in writing all other parties of the receipt of that contest.(b) For a period of 30 days following the date of the system's receipt of notice of a contest (unless the contest is sooner withdrawn in writing by the party who gave written notice of contest), the system may proceed in accordance with this section.(1) BEFORE RETIREMENT. If the order relates to a participant who has not yet begun to receive service retirement or disability retirement benefit payments subject to the order when the system receives the notice of contest, the system may delay action on an application by the participant for benefits that would be subject to the order. Alternatively, the system may (but shall not be required to) process an application by and begin payments to the participant of a refund or of all or any portion of any benefits to which the participant appears entitled under the order while interpreting the division of benefits in the light most beneficial to the alternate payee under the qualified domestic relations order and state law. In determining under this paragraph whether or not to process an application and begin payments to a participant pending completion of the contest, the system may take into consideration the difficulty in dividing the benefits between the parties prior to receipt of, or in re-dividing the benefits after receipt of, a qualified domestic relations order should the contest to the order be successful. Any benefits not paid under this paragraph shall be retained by the system until they are paid under one of the remaining subsections of this section.(2) AFTER RETIREMENT. If the order relates to a participant who is receiving service retirement or disability retirement benefit payments when the system receives the notice of contest, and the contested order awards the alternate payee a percentage of the then-current monthly benefit payable to participant (commonly referred to as a \"carve-out\"), the system shall pay to the participant all or any portion of any benefits to which the participant appears entitled under the order while interpreting the division of benefits in the light most beneficial to the alternate payee under the qualified domestic relations order and state law. If the order awards the alternate payee an interest in the participant's benefits from the system other than a carve-out, the system is not required to reduce the amount to be paid to the participant until the first to occur of the events listed in subsection (c) of this section.(3) Any benefits not paid to the participant under this paragraph shall be retained by the system until they are paid under one of the remaining subsections of this section.(c) Any party desiring to contest the order may, within that 30-day period, pursue action in a court of competent jurisdiction for review and clarification of the order. The system may require a certified copy of the filed pleading to pursue action on the order. In the event the system receives (within such 30-day period) notice of such a pleading or written request, the system will continue to withhold payment of benefits pursuant to subsection (b) of this section until the first to occur of:(1) The system's receipt of a certified copy of a subsequent order that the domestic relations liaison determines qualifies under this chapter;(2) The system's receipt of a certified copy of an order dismissing or denying the contest; or(3) The expiration of six months from the date of mailing of the notice of conditional approval under §129.7 of this title, unless the party contesting the order shows good cause for an extension beyond the six months. The party contesting the order may request extensions for good cause, while pursuing court action to contest the order, for up to 18 months from the date the domestic relations order was received. Any request for an additional extension must be received by the system prior to the expiration of the then applicable extension period. \"Good cause\" may include, but shall not be limited to, notice of a hearing before the court with jurisdiction over the domestic relations order. Determination of good cause for extensions and the length of any extension shall be made by the system in its sole discretion.(d) If, within the periods set forth in subsection (c) or within any system-approved extensions, the system receives a subsequent order that complies with the requirements of this chapter for a qualified domestic relations order, the domestic relations liaison will provide notice under §129.7 of this title and the system will pay all benefits (including any that have been withheld under this chapter) pursuant to that subsequent order. In making a determination hereunder, the domestic relations liaison may (but shall not be required to) rely on the determination of the court in a clarification order meeting the requirements of this chapter for a qualified domestic relations order. If the domestic relations liaison determines and notifies the parties in writing that the subsequent order does not qualify, action on the non-qualifying subsequent order thereafter will be in accordance with the provisions of §129.9 of this title (relating to Order Appearing Not to Qualify).(e) If the system does not receive, within the 30 days described in subsections (a)-(c) of this section, notice of such a pleading or written request being filed, or if the contest has been withdrawn in writing, then payment will be made under §129.8 of this title (relating to Payments Under Conditionally Approved Order).(f) Upon the expiration of 18 months from the date the qualified domestic relations order was received by the system, if the contest of the qualified domestic relations order has not been resolved within that period of time, then payment will be made under §129.8 of this title.(g) Neither the system nor any officials or employees of the system shall be liable for making any payment under this section.",
            "sourceNote": "Source Note: The provisions of this §129.10 adopted to be effective July 1, 2022, 47 TexReg 3272."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210003&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "210003",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "129",
                "label": "DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§129.11",
                "label": "Procedure for Obtaining Formal Hearing"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210004&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "210004",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If the domestic relations liaison has determined that an order does not qualify under this chapter, and either party desires to challenge that determination, the party desiring to make such a challenge shall have 30 days from the date of the domestic relations liaison's letter of notification sent under §129.9 of this title (relating to Order Not Appearing to Qualify) within which to file with the director a written demand for a hearing. After receipt of such demand, the director, or the director's designee, shall set the matter for hearing and shall mail written notice to all parties of the date and place of hearing.(b) All such hearings, and the action thereon, shall be in accordance with §§121.18-121.26 of this title (relating to Conduct of Contested Case Hearings; Proposal for Decision; Filing of Exceptions to Proposal, Briefs, and Replies; Closing of Hearing; Board Consideration and Action; Board Decisions and Orders; Motions for Rehearing; When Decisions Become Final; and The Record).",
            "sourceNote": "Source Note: The provisions of this §129.11 adopted to be effective July 1, 2022, 47 TexReg 3272."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210004&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "210004",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "129",
                "label": "DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§129.12",
                "label": "Payments to Alternate Payees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210005&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "210005",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In the event that the participant terminates membership in the system and applies for a refund of the participant's accumulated deposits and interest, the system will make a lump-sum payment to the alternate payee if the domestic relations order so provides and the order has been determined to be a qualified domestic relations order.(b) In the event that the participant (or the participant's designated beneficiary or estate) begins receiving an annuity after the date that a qualified domestic relations order is received by the system, and the order provides for a division of the annuity in that event, the payment to the alternate payee will be a monthly allowance payable during the lifetime of the alternate payee, which payment is the actuarial equivalent of the portion of the participant's benefit that was awarded to the alternate payee under the domestic relations order. For the period from the January 22, 2001, original initial effective date of §123.17 of this title (relating to Actuarial Tables) through December 31, 2014, the mortality assumption for alternate payees for determining the payment to the alternate payee shall be the same as the mortality assumption for the beneficiaries as set forth in §123.17(a) of this title with regard to service retirements and as set forth in §123.17(b) of this title with regard to disability retirements. Effective beginning January 1, 2015, the mortality assumption for alternate payees for determining the payment to the alternate payee shall be the same as the mortality assumption for the beneficiaries as set forth in §123.17(c) of this title with regard to service retirements and with regard to disability retirements and shall take into account the applicable phase in period, if any, that may be adopted by the board pursuant to §123.17(d) of this title.(c) Subsection (b) of this section will apply to all domestic relations orders approved in accordance with this chapter after September 9, 1989, and to such domestic relations orders approved prior to that date as are construed to provide for such an annuity.(d) In the event that the total reserves upon which an annuity (otherwise payable to an alternate payee under a qualified domestic relations order) would be calculated are $10,000 or less, then the system is authorized to make a single lump-sum payment to the alternate payee in the amount of those reserves instead of paying an annuity to the alternate payee. No such payment shall be made by the system until such point in time as the system begins paying an annuity to the participant or the participant's designated beneficiary, surviving spouse, or estate.(e) The suspension of a disability retirement benefit under the Act does not suspend payment of a benefit to an alternate payee under a qualified domestic relations order.",
            "sourceNote": "Source Note: The provisions of this §129.12 adopted to be effective July 1, 2022, 47 TexReg 3272."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210005&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "210005",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "129",
                "label": "DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§129.13",
                "label": "Form of Qualified Domestic Relations Order"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210006&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "210006",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The system has prescribed forms that are pre-approved by the system as meeting the requirements of Texas Government Code §804.003 and this chapter for a qualified domestic relations order. The prescribed forms are available on the system's website and upon request. The prescribed forms incorporate by reference the definitions set forth in this chapter and the provisions set forth in §129.14 of this title (relating to Provisions Incorporated by Reference). The system may reject any domestic relations order submitted to the system that does not utilize the applicable prescribed form.(b) It is the responsibility of the parties to insert the correct information in the appropriate form prescribed by the system in the appropriate places and to provide the system with a certified copy of the order after it has been entered by a court of competent jurisdiction.(c) If \"accumulated contributions\" is shown in the order to be the basis for division, then the term \"community property ratio\" as used in the prescribed form shall mean the ratio that contributions and interest deposited to participant's individual account with the system between the dates shown bears to participant's total contributions and interest at time of retirement or withdrawal of accumulated contributions. Interest (including interest earned after the date of the divorce) will be divided in accordance with §129.6 of this title (relating to Order Should Divide All Benefits).(d) If \"total credited service\" is shown in the order to be the basis for division, then the term \"community property ratio\" as used in the prescribed form shall mean the ratio that participant's credited service between the dates shown bears to participant's total credited service at time of retirement or withdrawal of accumulated contributions.(e) The order shall not be considered qualified unless it clearly reflects which of the ratios described above, as applicable, is intended to be used in computing the division of benefits.(f) All required sections of the prescribed form must be completed in order to be qualified.",
            "sourceNote": "Source Note: The provisions of this §129.13 adopted to be effective July 1, 2022, 47 TexReg 3272."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=210006&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "210006",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "6",
                "label": "TEXAS MUNICIPAL RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "129",
                "label": "DOMESTIC RELATIONS ORDERS"
            },
            "rule": {
                "number": "§129.14",
                "label": "Provisions Incorporated by Reference"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206417&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "206417",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "An order on a prescribed form pre-approved by the system expressly incorporates all of the following by reference:(1) The order shall not be interpreted in any way to require the Plan to provide any type or form of benefit or any option not otherwise provided under the Plan.(2) The order shall not be interpreted in any way to require the Plan to provide increased benefits determined on the basis of actuarial value.(3) The order shall not be interpreted in any way to require the Plan to pay any benefits to an/any Alternate Payee named in the order which are required to be paid to another Alternate Payee under another order previously determined to be a qualified domestic relations order.(4) The order shall not be interpreted in any way to require the payment of benefits to an/any Alternate Payee before the retirement of Participant, the distribution of a withdrawal of contributions to Participant as authorized by the statutes governing the Plan, or other distribution to Participant required by law.(5) If the Plan provides for a reduced benefit upon \"early retirement\", the order shall be interpreted to require that, in the event of Participant's retirement before normal retirement age, the benefits payable to Alternate Payee shall be reduced in a proportionate amount.(6) The order shall not be interpreted to require the designation of a particular person as the recipient of benefits in the event of Participant's death, or to require the selection of a particular benefit payment plan or option.(7) In the event that, after the date of the order, the amount of any benefit otherwise payable to Participant is increased as a result of amendments to the law governing the Plan, Alternate Payee shall receive a proportionate part of such increase unless such an order would disqualify the order under the rules the Plan has adopted with regard to qualified domestic relations orders.(8) In the event that, after the date of the order, the amount of any benefit otherwise payable to Participant is reduced by law, the portion of benefits payable to Alternate Payee shall be reduced in a proportionate amount.(9) If, as a result of Participant's death after the date of the order, a payment is made by the Plan to Participant's estate, surviving spouse, or designated beneficiaries, which payment does not relate in any way to Participant's length of employment or accumulated contributions with the Plan, but rather is purely a death benefit payable as a result of employment or retired status at the time of death, no portion of such payment is community property, and Alternate Payee shall have no interest in such death benefit.(10) If the board of trustees of the Plan has by rule provided that, in lieu of paying an Alternate Payee the interest awarded by a qualified domestic relations order, the Plan may pay the Alternate Payee an amount that is the actuarial equivalent of(A) An annuity payable in equal monthly installments for the life of the Alternate Payee, or(B) A lump sum, then and in that event the Plan is authorized to make such a payment under the order.(11) All payments to Alternate Payee under the order shall terminate upon Alternate Payee's death or at such earlier date as may be required as a result of the retirement option selected by Participant.(12) All benefits payable under the Plan, other than those payable under the express terms of the order to Alternate Payee, shall be payable to Participant in such manner and form as Participant may elect in his/her sole and undivided discretion, subject only to Plan requirements.(13) Alternate Payee is ORDERED to report any retirement payments received on any applicable income tax return, and to promptly notify the Plan of any changes in Alternate Payee's mailing address. The Plan is authorized to issue a Form 1099R on any direct payment made to Alternate Payee.(14) Participant is designated a constructive trustee for receiving any retirement benefits under the Plan that are due to Alternate Payee but paid to Participant. Participant is ORDERED to pay the benefit defined in this paragraph directly to Alternate Payee within three days after receipt by Participant. All payments made directly to Alternate Payee by the Plan shall be a credit against this order.(15) The Court retains jurisdiction to amend the order so that it will constitute a qualified domestic relations order under the Plan even though all other matters incident to this action or proceeding have been fully and finally adjudicated.",
            "sourceNote": "Source Note: The provisions of this §129.14 adopted to be effective July 1, 2022, 47 TexReg 3272."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206417&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206417",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "9",
                "label": "TEXAS BOND REVIEW BOARD"
            },
            "chapter": {
                "number": "181",
                "label": "BOND REVIEW BOARD"
            },
            "subchapter": {
                "number": "A",
                "label": "BOND REVIEW RULES"
            },
            "rule": {
                "number": "§181.1",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206418&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "206418",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise:(1) Board--The Bond Review Board, created under Chapter 1078, Acts of the 70th Legislature, Regular Session, 1987 codified as Chapter 1231, Government Code.(2) Interest rate management agreement--An agreement that provides for an interest rate transaction, including a swap, basis, forward, option, cap, collar, floor, lock, or hedge transaction, for a transaction similar to those types of transactions, or for a combination of any of those types of transactions. The term includes:(A) a master agreement that provides standard terms for transactions;(B) an agreement to transfer collateral as security for transactions; and(C) a confirmation of transactions.(3) State security--(A) an obligation, including a bond, issued by:(i) a state agency;(ii) an entity expressly created by statute and having statewide jurisdiction; or(iii) any other entity issuing a bond or other obligation on behalf of the state or on behalf of any entity listed in clause (i) or (ii) of this subparagraph;(B) an installment sale or lease-purchase obligation issued by or on behalf of an entity listed in subparagraph (A)(i), (ii), or (iii) of this paragraph that has a stated term of longer than five years or has an initial principal amount of greater than $250,000; or(C) an obligation, including a bond, that is issued under Chapter 53, Education Code, at the request of or for the benefit of an institution of higher education other than a public junior college.(4) Institution of higher education has the meaning assigned by §61.003, Education Code.(5) Business day means a day when the bond finance office is open for business.(6) Authorized signature means an original, scanned original, or an electronic signature that is authorized by state law and compliant with any relevant codes, including but not limited to Title 1 Texas Administrative Code §203.23 (relating to Digital Signatures) and Chapter 322 of the Texas Business and Commerce Code (relating to Uniform Electronic Transactions Act), or any other governing rules or codes, as applicable.",
            "sourceNote": "Source Note: The provisions of this §181.1 adopted to be effective August 10, 1988, 13 TexReg 3755; amended to be effective February 27, 2002, 27 TexReg 1335; amended to be effective April 9, 2008, 33 TexReg 2828; amended to be effective February 8, 2012, 37 TexReg 501; amended to be effective December 2, 2019, 44 TexReg 7398; amended to be effective October 13, 2021, 46 TexReg 6946."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206418&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206418",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "9",
                "label": "TEXAS BOND REVIEW BOARD"
            },
            "chapter": {
                "number": "181",
                "label": "BOND REVIEW BOARD"
            },
            "subchapter": {
                "number": "A",
                "label": "BOND REVIEW RULES"
            },
            "rule": {
                "number": "§181.2",
                "label": "Notice of Intention to Issue"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206419&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "206419",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Unless exempt pursuant to statute or pursuant to §181.9 of this title (relating to State Exemptions), an issuer intending to issue state securities shall submit an electronic non-exempt notice of intention to issue to the bond finance office no later than twelve business days prior to the regularly scheduled planning session. Prospective issuers are encouraged to file the notice of intention as early in the issuance planning stage as possible. A notice of intention under this subsection is not required prior to each new issuance of commercial paper if the issuer's commercial paper is exempt pursuant to statute or if the issuer's commercial paper program has been approved by the Board or if it is exempt from approval pursuant to the provisions of §181.9 of this title. Except as required for Board approval pursuant to §181.3(f) of this title (relating to Application for Board Approval of State Securities Issuance), a notice of intention under this subsection is not required prior to each new issuance of commercial paper notes if the notes are issued in conformity with the terms of the commercial paper program that has been approved by the Board or is exempt from approval pursuant to the provisions of §181.9 of this title.(b) A notice of intention to issue under subsection (a) of this section shall include:(1) a brief description of the proposed issuance, including, but not limited to, the purpose, the tentative amount, proposed security, type of interest and any related credit agreements;(2) the proposed timing of the issuance with a tentative date of sale and a tentative date for closing, or if the state securities are to be issued in the form of commercial paper notes, the period over which the state securities will be issued for projects to be financed;(3) a request to have the issue of state securities scheduled for consideration by the Board during a specified bi-monthly meeting; and(4) an agreement to submit the required application described in §181.3 of this title no later than ten business days prior to the regularly scheduled planning session.(c) An issuer may reschedule the date requested for Board consideration of the state securities by submitting an amended notice of intention at any time prior to the application date in the same manner as provided in this section.(d) The requested date for Board consideration shall be granted whenever possible. If at the Board's discretion, it becomes necessary to change the date of the Board meeting for consideration of the proposed issuance of state securities, notice of such change shall be sent to the issuer as soon as possible.(e) An issuer intending to issue state securities that are exempt from approval pursuant to §181.9 of this title shall submit during regular business hours an electronic exempt issuer state debt notice of intent, with an authorized signature, to the bond finance office as required by §181.9(c) of this title. Prospective issuers are encouraged to file the notice of intent as early in the issuance planning stage as possible considering the Board has six business days to review the complete application pursuant to §181.9(d) of this title. Submitting an exempt issuer state debt notice of intent under this subsection does not guarantee the Board will take action. An electronic exempt issuer state debt notice of intent under this subsection is not required prior to each new issuance of commercial paper notes if the notes are issued in conformity with the terms of the commercial paper program for which an electronic exempt issuer state debt notice of intent has been filed with the bond finance office or that has been approved by the Board pursuant to §181.9(d) of this title.(1) To be considered at the next regularly scheduled planning session, if required by the Board pursuant to §181.9(d) of this title, the exempt issuer state debt notice of intent must be submitted to the bond finance office no later than ten business days prior to the regularly scheduled planning session.(2) Exempt issuers pursuant to §181.9 of this title are required to submit an exempt issuer state debt notice of intent which must contain, but is not limited to:(A) a completed exempt issuer state debt notice of intent in the form required by the bond finance office. A notice of intent is not required under this subsection for an issuance of commercial paper notes if the notes are issued in conformity with the terms of the commercial paper program for which a notice of intent has been filed with the bond finance office or that has been approved by the Board;(B) proposed debt service schedule;(C) proposed cash flow schedule, if applicable;(D) proposed sources and uses statement;(E) timetable of the financing;(F) derivatives program summary in the form required by the bond finance office, if applicable;(G) documentation that all necessary approvals of the issuance of the state securities or the project to be financed with the proceeds of the state securities have been obtained from the appropriate state boards or state agencies except:(i) the approval of the state securities by the Attorney General;(ii) environmental approvals and permits;(H) Board memorandum for the proposed transaction prepared for issuer's governing board; and(I) Issuer Board resolution(s) authorizing the issuance of bonds or other obligations, adopted no earlier than one year prior to the date the exempt issuer state debt notice of intent is submitted to the bond finance office.",
            "sourceNote": "Source Note: The provisions of this §181.2 adopted to be effective August 10, 1988, 13 TexReg 3755; amended to be effective October 11, 1994, 19 TexReg 7711; amended to be effective February 27, 2002, 27 TexReg 1335; amended to be effective September 18, 2003, 28 TexReg 8133; amended to be effective April 9, 2008, 33 TexReg 2828; amended to be effective August 6, 2008, 33 TexReg 6146; amended to be effective December 28, 2008, 33 TexReg 10331; amended to be effective February 8, 2012, 37 TexReg 501; amended to be effective December 2, 2019, 44 TexReg 7398; amended to be effective October 13, 2021, 46 TexReg 6946."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206419&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206419",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "9",
                "label": "TEXAS BOND REVIEW BOARD"
            },
            "chapter": {
                "number": "181",
                "label": "BOND REVIEW BOARD"
            },
            "subchapter": {
                "number": "A",
                "label": "BOND REVIEW RULES"
            },
            "rule": {
                "number": "§181.3",
                "label": "Application for Board Approval of State Securities Issuance"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197194&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197194",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) An officer or entity may not issue state securities unless the issuance has been approved by the Board or exempted under law, including by Board rule, from review by the Board. An officer or entity that has not been granted an exemption by statute or Board rule from review by the Board and that proposes to issue state securities shall apply for Board approval by filing an electronic copy, with an authorized signature, of the state debt application or one state debt application with original signatures and eleven copies with the Executive Director of the bond finance office. The Executive Director of the bond finance office shall forward copies of the application to each member of the Board and to the Office of the Attorney General.(b) Applications must be filed with the bond finance office no later than ten business days prior to the regularly scheduled planning session. Applications filed after that date will be considered at the regular meeting only with the approval of the Chair or two or more members of the Board.(c) An application for approval of a lease-purchase agreement to be deemed complete must include, but is not limited to:(1) a completed lease purchase application form in the form required by the bond finance office;(2) documentation that all necessary approvals of the issuance of the lease purchase have been obtained from the appropriate state boards or state agencies except:(A) the approval of the state securities by the Attorney General; and(B) environmental approvals and permits;(3) draw schedule, if applicable;(4) proposed amortization schedule;(5) if the lease purchase is for the acquisition of energy conservation measures, which are subject to a guaranteed energy savings contract, a copy of the proposed contractual agreement, a copy of the third-party review, and any other documentation related to the guarantee; and(6) Issuer Board resolution(s) authorizing the issuance of a lease purchase or other obligations adopted no earlier than one year prior to the date the lease-purchase application is submitted to the bond finance office.(d) An application for all state securities other than lease-purchase agreements to be deemed complete must include, but is not limited to:(1) a completed state debt application in the form required by the bond finance office;(2) documentation that all necessary approvals of the issuance of the state securities or the project to be financed with the proceeds of the state securities have been obtained from the appropriate state boards or state agencies except:(A) the approval of the state securities by the Attorney General; and(B) environmental approvals and permits;(3) if a blind pool financing, a copy of the demand survey or justification indicating reasonable expectation to lend proceeds;(4) a substantially complete draft or summary of the proposed resolution, order, or ordinance providing for the issuance of the state security;(5) most recent draft copy of the preliminary official statement, if such a statement is required for the issuance of the securities;(6) proposed cash flow;(7) proposed draw schedule, if applicable;(8) proposed sources and uses statement;(9) timetable of the financing;(10) derivatives program summary, in the form required by the bond finance office, if applicable;(11) Board memorandum for the proposed transaction prepared for issuer's governing board; and(12) Issuer Board resolution(s) authorizing the issuance of bonds or other obligations adopted no earlier than one year prior to the date the state debt application is submitted to the bond finance office.(e) Applications to authorize the issuance of a state security in the form of commercial paper notes or for the approval of program proceedings authorizing the periodic issuance of commercial paper notes shall contain the information required by subsection (d) of this section to the extent it is available or capable of being determined.(f) Unless exempt by statute from Board approval, commercial paper notes to fund any project or projects that will be permanently financed with tuition revenue bonds or general revenues of the state may not be issued unless the issuance of the notes, or the project or projects, have been specifically approved by the Board.(g) At any time before the date for consideration of an application by the Board, an applicant may withdraw the application. Revisions to an application must be submitted in writing not less than 72 hours prior to the Board meeting.(h) A member of the Board or bond finance office staff may require additional information to be submitted with respect to a complete notice of intent or application for state securities.",
            "sourceNote": "Source Note: The provisions of this §181.3 adopted to be effective August 10, 1988, 13 TexReg 3755; amended to be effective June 26, 1989, 14 TexReg 2901; amended to be effective September 26, 1990, 15 TexReg 5362; amended to be effective October 11, 1994, 19 TexReg 7711; amended to be effective February 27, 2002, 27 TexReg 1335; amended to be effective September 18, 2003, 28 TexReg 8133; amended to be effective April 9, 2008, 33 TexReg 2828; amended to be effective February 8, 2012, 37 TexReg 501; amended to be effective December 2, 2019, 44 TexReg 7398; amended to be effective October 13, 2021, 46 TexReg 6946."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197194&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197194",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "9",
                "label": "TEXAS BOND REVIEW BOARD"
            },
            "chapter": {
                "number": "181",
                "label": "BOND REVIEW BOARD"
            },
            "subchapter": {
                "number": "A",
                "label": "BOND REVIEW RULES"
            },
            "rule": {
                "number": "§181.4",
                "label": "Meetings"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206420&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "206420",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) The regular meeting of the Board shall be held the Thursday following the third Tuesday of alternate months beginning in January.(b) The Chair may call additional meetings of the Board and is responsible for filing notice of meetings as required by Chapter 551, Government Code, and giving timely notice of meetings to members of the Board. On the petition of two or more members of the Board, the Chair shall call an additional meeting of the Board or cancel a meeting.(c) A planning session will be held regarding applications pending before the Board on or before the second Tuesday of alternate months beginning in January. Planning sessions regarding applications to be heard at additional meetings of the Board will be held as far in advance of the additional Board meeting as is practicable, and applications to be considered at additional meetings of the Board will need to be submitted to the bond finance office pursuant to §181.3(a) no later than ten business days in advance of the planning session scheduled for the additional Board meeting.(1) At a planning session, Board members, their designated representatives, or their staff representatives may discuss pending applications.(2) Applicants may be required to attend a planning session and may be asked to make a presentation and answer questions regarding their application. Applicants may be asked to submit written answers to questions regarding their application in lieu of, or in addition to, their attendance at a planning session.(d) At a meeting of the Board, the Board may allow an applicant to make an oral presentation to the Board.(e) At a meeting, the Board may, by order, resolution, or other process adopted by the Board, approve an issuance of state securities as proposed in a completed application; may approve an issuance of state securities on conditions stated by the Board for either a completed or incomplete application; or may fail to act on a proposed issuance of state securities; and may approve tuition revenue projects for financing.(f) At a planning session or meeting, the Board may discuss state securities under the state exemption process without such security being required to follow the formal approval process under §181.9(d) of this title.(g) If the Board does not act on a proposed issuance during the meeting at which the application is scheduled to be considered, the application is no longer valid on the occurrence of the earlier of the expiration of 45 days from the date of the meeting at which the application was scheduled to be considered or immediately following the Board's next meeting, if the Board fails to act on the proposed issuance at that meeting. If an application becomes invalid under this subsection, the applicant may file a new application for the proposed issuance.(h) The Executive Director shall notify applicants in writing of any action taken regarding their application. A letter of approval shall contain the terms and conditions of the issue as approved by the Board. Board approval for the issuance of bonds or other obligations shall be valid for one year from the date of approval, unless expressly stated otherwise in the approval. A copy of the approval letter shall be forwarded to the Office of the Attorney General. Issuers must inform the Executive Director of any material changes to their application. Such changes may prompt reconsideration of an application approval by the Bond Review Board and require the application to come before the Board prior to issuance.(i) If applicable law requires the approval by the Attorney General of an issuance of state securities that are not exempt from review by the Board, Attorney General approval must be obtained after approval by the Board.(j) If there is a dispute among members regarding the conduct of Board meetings, standard parliamentary rules shall apply.",
            "sourceNote": "Source Note: The provisions of this §181.4 adopted to be effective August 10, 1988, 13 TexReg 3755; amended to be effective June 26, 1989, 14 TexReg 2901; amended to be effective September 26, 1990, 15 TexReg 5362; amended to be effective February 27, 2002, 27 TexReg 1335; amended to be effective September 18, 2003, 28 TexReg 8133; amended to be effective April 9, 2008, 33 TexReg 2828; amended to be effective December 2, 2019, 44 TexReg 7398."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206420&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206420",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "9",
                "label": "TEXAS BOND REVIEW BOARD"
            },
            "chapter": {
                "number": "181",
                "label": "BOND REVIEW BOARD"
            },
            "subchapter": {
                "number": "A",
                "label": "BOND REVIEW RULES"
            },
            "rule": {
                "number": "§181.5",
                "label": "Submission of Final Report"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=136002&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "136002",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Within 60 days after the delivery of the state securities and receipt of the state security proceeds, the issuer shall submit one electronic copy or one original of a final report in the form required by the bond finance office.(1) For state securities issued in the form of lease purchases, the reporting requirements of subsection (b) of this section shall be applicable.(2) For state securities issued in the form of commercial paper notes, the reporting requirements of subsection (c) of this section shall be applicable.(3) A final report for state securities, other than lease-purchases and commercial paper, must include, but is not limited to:(A) all actual costs of issuance as well as the underwriting spread for competitive financings, the private placement fee for private placements, all closing costs, and any other costs incurred during the issuance process;(B) a complete bond transcript, including the preliminary official statement and the final official statement, private placement memorandum, if applicable, or any other offering documents as well as all other executed documents pertaining to the issuance of the state security.(4) Issuers of state securities that have entered into interest rate management agreements relating to the securities shall provide to the bond finance office in electronic form, as applicable, a copy of all schedules to the Master Agreement and/or the Credit Support Annex including transaction confirmations.(b) Within 90 days after the signing of a lease purchase, the purchaser shall submit an original or electronic copy of the lease purchase final report to the bond finance office. A final report for lease purchases must include a detailed explanation of the terms of the lease-purchase agreement, including but not limited to, amount of purchase, trade-in allowance, interest charges, service contracts, remaining draw amount if applicable, and a final or estimated amortization as applicable.(c) In lieu of the reporting requirements of subsection (a) of this section, an issuer of state securities issued in the form of commercial paper notes shall submit a report to the bond finance office pursuant to §181.10(c) of this title (relating to State Debt Issuer Reports) so long as the issuer has authority to issue commercial paper under the program proceedings approved by the Board or exempt from approval pursuant to §181.9 of this title (relating to State Exemptions).",
            "sourceNote": "Source Note: The provisions of this §181.5 adopted to be effective August 10, 1988, 13 TexReg 3755; amended to be effective June 26, 1989, 14 TexReg 2901; amended to be effective February 27, 2002, 27 TexReg 1335; amended to be effective June 30, 2004, 29 TexReg 6125; amended to be effective April 9, 2008, 33 TexReg 2828; amended to be effective August 22, 2010, 35 TexReg 7077; amended to be effective December 2, 2019, 44 TexReg 7398; amended to be effective October 13, 2021, 46 TexReg 6946."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=136002&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "136002",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "9",
                "label": "TEXAS BOND REVIEW BOARD"
            },
            "chapter": {
                "number": "181",
                "label": "BOND REVIEW BOARD"
            },
            "subchapter": {
                "number": "A",
                "label": "BOND REVIEW RULES"
            },
            "rule": {
                "number": "§181.6",
                "label": "Official Statement"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=92883&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "92883",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The official statement or any other offering documents prepared in connection with issuance of state securities approved by the Board must conform, to the extent feasible, to the most recent Disclosure Guidelines for State and Local Government Securities published by the Government Finance Officers Association.",
            "sourceNote": "Source Note: The provisions of this §181.6 adopted to be effective August 10, 1988, 13 TexReg 3755; amended to be effective May 14, 1991, 16 TexReg 2424; amended to be effective February 27, 2002, 27 TexReg 1335; amended to be effective April 9, 2008, 33 TexReg 2828."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=92883&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "92883",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "9",
                "label": "TEXAS BOND REVIEW BOARD"
            },
            "chapter": {
                "number": "181",
                "label": "BOND REVIEW BOARD"
            },
            "subchapter": {
                "number": "A",
                "label": "BOND REVIEW RULES"
            },
            "rule": {
                "number": "§181.7",
                "label": "Designation of Representation"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20209&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "20209",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A member of the board may designate another person to represent the member on the board by filing a designation to that effect with the Executive Director of the bond finance office. A designation of representation filed under this section is effective until revoked by a subsequent filing by the member with the bond finance office. During the time a designation of representation is in effect, the person designated has all powers and duties as a member of the board, except the authority to make a designation under this section.",
            "sourceNote": "Source Note: The provisions of this §181.7 adopted to be effective August 10, 1988, 13 TexReg 3755; amended to be effective February 27, 2002, 27 TexReg 1335."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=20209&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "20209",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "9",
                "label": "TEXAS BOND REVIEW BOARD"
            },
            "chapter": {
                "number": "181",
                "label": "BOND REVIEW BOARD"
            },
            "subchapter": {
                "number": "A",
                "label": "BOND REVIEW RULES"
            },
            "rule": {
                "number": "§181.8",
                "label": "Assistance of Agencies"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197196&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197196",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A member of the board may request the Legislative Budget Board, the Office of the Attorney General, or any other state agency to assist the member in performing duties as a member of the board.",
            "sourceNote": "Source Note: The provisions of this §181.8 adopted to be effective August 10, 1988, 13 TexReg 3755."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197196&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197196",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "9",
                "label": "TEXAS BOND REVIEW BOARD"
            },
            "chapter": {
                "number": "181",
                "label": "BOND REVIEW BOARD"
            },
            "subchapter": {
                "number": "A",
                "label": "BOND REVIEW RULES"
            },
            "rule": {
                "number": "§181.9",
                "label": "State Exemptions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206421&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "206421",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) The Board may exempt certain state securities from formal approval by the Board. Exemptions include the following:(1) Texas Department of Housing and Community Affairs multifamily conduit housing transactions are exempt unless seeking an ad valorem tax reduction or exemption.(2) Texas State Affordable Housing Corporation multifamily conduit housing transactions are exempt unless seeking an ad valorem tax reduction or exemption.(3) Texas Public Finance Authority Charter School Finance Corporation conduit transactions are exempt.(4) State securities secured by the general revenues of the state issued by the Veterans Land Board, the Texas Water Development Board or the Higher Education Coordinating Board determined by the Executive Director to be self-supporting and state securities issued by the Texas Water Development Board pursuant to the state revolving fund program under Chapter 15, Subchapter J, Water Code and Chapter 17, Subchapter I, Water Code.(5) Self-supporting revenue state securities issued by the Texas Public Finance Authority, at the request of and on behalf of, the Texas Windstorm Insurance Association.(6) State securities that are advance refunding or refinancing transactions that have a net present value savings of at least 3%; current refunding or refinancing transactions that have a net present value savings of at least 2%; refunding or refinancing transactions that are removing restrictive bond covenant requirements; or self-supporting revenue security issues that have no general revenue impact to the state.(b) An issuer of state securities exempted pursuant to this section must still comply with §181.2 and §181.5 of this title (relating to Notice of Intention to Issue and Submission of Final Report).(c) Exempt issuers pursuant to this section are required to submit a notice of intent pursuant to §181.2(e) of this title. Upon receipt of all required information, the notice shall be forwarded to the Board for review.(d) At the written request of one or more members of the Board given to an issuer within six business days of the notice forwarded pursuant to subsection (c) of this section, an issuer is required to follow the formal approval process regardless of this section; provided, however, if an issuer is required to follow the formal approval process pursuant to this section, the notice of intent will be treated as a completed application for purposes of §181.3 of this title (relating to Application for Board Approval of State Securities Issuance).",
            "sourceNote": "Source Note: The provisions of this §181.9 adopted to be effective August 10, 1988, 13 TexReg 3755; amended to be effective September 18, 2003, 28 TexReg 8133; amended to be effective April 9, 2008, 33 TexReg 2828; amended to be effective August 6, 2008, 33 TexReg 6146; amended to be effective March 3, 2010, 35 TexReg 1760; amended to be effective June 30, 2010, 35 TexReg 5579; amended to be effective February 8, 2012, 37 TexReg 501; amended to be effective December 2, 2019, 44 TexReg 7398."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206421&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206421",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
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            "part": {
                "number": "9",
                "label": "TEXAS BOND REVIEW BOARD"
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            "chapter": {
                "number": "181",
                "label": "BOND REVIEW BOARD"
            },
            "subchapter": {
                "number": "A",
                "label": "BOND REVIEW RULES"
            },
            "rule": {
                "number": "§181.10",
                "label": "State Debt Issuer Reports"
            },
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                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216520&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
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                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) All issuers of state securities must file state debt issuer reports electronically or in original format with the bond finance office on a semi-annual basis. Reports shall be submitted no later than March 15 for the six-month period ending the last day of February and no later than September 15 for the six-month period ending August 31.(b) The semi-annual reports shall include, but are not limited to:(1) an explanation of any change during the fiscal year previous to the deadline for this report, in the debt-retirement schedule for any outstanding state security issue (e.g. exercise of redemption provision, conversion from short-term to long-term securities, etc.);(2) a description of any state security issues expected during the fiscal year, including type of issue, estimated amount, and expected month of sale;(3) a list of all state security issues outstanding and corresponding debt service schedules for all securities outstanding in a digital and hard copy format; and(4) a list of all interest rate management agreements, including the associated issue name, effective and termination dates, original and current notional amounts, terms of the agreement (fixed rate paid/variable rate received, variable rate paid/variable rate received), and mark-to-market value.(c) An issuer of state securities issued in the form of commercial paper notes shall submit as part of the required semi-annual reports the following information:(1) the aggregate principal amount of commercial paper that the issuer is authorized to issue and have outstanding at any one time;(2) the aggregate principal amount of commercial paper outstanding as of the end of such semi-annual period;(3) the aggregate principal amount of commercial paper issued to fund project costs during such semi-annual period; and(4) a list of the projects for which commercial paper was issued during such semi-annual period.(d) All issuers of state securities must file material event notices with the bond finance office when a submission is made by an issuer to the Municipal Securities Rulemaking Board pursuant to Securities and Exchange Commission Rule 15c2-12(b)(5)(i)(C), as amended, or any analogous state statute. When requested by the bond finance office, such issuers must also file financial information with the office when the information is submitted by an issuer to the above-described board pursuant to Securities and Exchange Commission Rule 15c2-12(b)(5)(i)(A) or (B), as amended, or any analogous state statute.(e) All issuers of state securities that have entered into interest rate management agreements shall notify the bond finance office within 10 business days of:(1) the occurrence of any event that constitutes an event of default or termination event under an agreement;(2) the failure to pay or deliver any payment due under an agreement if not cured within the applicable cure period;(3) the failure to deliver, when due, eligible collateral required to be made pursuant to an agreement and the failure continues past the applicable cure period; and(4) the credit rating of the counterparty or any credit support provider to such party being withdrawn, suspended or downgraded below Baa2 as determined by Moody's Investors Service or BBB as determined by Standard & Poor's Corporation or which otherwise constitutes an additional termination event pursuant to an agreement.(f) All issuers of state securities that have variable-rate debt outstanding shall notify the bond finance office within 10 business days of:(1) the credit rating of a liquidity provider being withdrawn, suspended or downgraded below Baa2 as determined by Moody's Investors Service or BBB as determined by Standard & Poor's Corporation;(2) the failure of any remarketing of variable-rate debt that results in all or part of the debt becoming subject to an accelerated principal maturity date as a result of being owned by a liquidity provider for more than 90 consecutive days; and(3) a reset rate in excess of one hundred basis points from the preceding rate.",
            "sourceNote": "Source Note: The provisions of this §181.10 adopted to be effective August 10, 1988, 13 TexReg 3755; amended to be effective February 27, 2002, 27 TexReg 1335; amended to be effective April 9, 2008, 33 TexReg 2828; amended to be effective October 8, 2009, 34 TexReg 6859; amended to be effective August 22, 2010, 35 TexReg 7077; amended to be effective February 8, 2012, 37 TexReg 501; amended to be effective December 2, 2019, 44 TexReg 7398; amended to be effective October 13, 2021, 46 TexReg 6946."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=216520&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "216520",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "9",
                "label": "TEXAS BOND REVIEW BOARD"
            },
            "chapter": {
                "number": "181",
                "label": "BOND REVIEW BOARD"
            },
            "subchapter": {
                "number": "A",
                "label": "BOND REVIEW RULES"
            },
            "rule": {
                "number": "§181.11",
                "label": "Report on State Lending and Credit Support Programs"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=104347&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
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                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) A state agency or political subdivision of this state must file a report on state lending and credit support programs in electronic format, and in a manner directed by the Board, with the bond finance office. Reports shall be submitted in electronic format no later than September 15 of each even-numbered year for the prior two fiscal year periods ending August 31.(b) For each lending program, the report shall include but is not limited to:(1) Program name;(2) Detailed description of the program;(3) Number of loans outstanding separated by program;(4) Policies and guidelines for all lending programs including policies and procedures in place for each program to mitigate the risk of future default in the program;(5) Citation to the law authorizing the program;(6) Total amount of state money lent through the lending program;(7) Total amount of debt supported by the lending program;(8) Total dollar amount of outstanding loans separated by program;(9) Reasonable estimate of the costs of default associated with the program, computed in accordance with private-sector accounting standards for credit or other losses. The estimate shall include all assumptions, factors, formulas, and analysis used to calculate the cost of default;(10) Current default rate of program;(11) Highest default rate experienced in program;(12) Total amount of principal and interest payments received from borrowers;(13) Total amount of principal and interest payments in default;(14) Assets, if any, pledged as collateral to secure existing loans;(15) For each of the items described in paragraphs (6) through (14) of this subsection provide total amount broken down by each entity in the lending structure, if the public or private entity receiving funds also lends the money to another public entity or private entity. Provide the total amounts for each entity; and(16) Any additional information required by the Board.(c) For each credit support program, the report shall include but is not limited to:(1) Program name;(2) Detailed description of the program;(3) Policies and guidelines for all credit support programs including policies and procedures in place for each program to mitigate the risk of future default in the programs;(4) Citation to the law authorizing the program;(5) Total amount of state money lent through or debt supported by the program, as applicable;(6) Total amount of credit support for interest or principal payments;(7) Reasonable estimate of the costs of default associated with the program, computed in accordance with private-sector accounting standards for credit or other losses. The estimate shall include all assumptions, factors, formulas, and analysis used to calculate the cost of default;(8) Current default rate of program;(9) Highest default rate experienced in program;(10) For each of the items described in paragraphs (5) through (9) of this subsection provide total amounts broken down for each public or private entity; and(11) Any additional information required by the Board.",
            "sourceNote": "Source Note: The provisions of this §181.11 adopted to be effective February 7, 2024, 49 TexReg 557."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=104347&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "104347",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "9",
                "label": "TEXAS BOND REVIEW BOARD"
            },
            "chapter": {
                "number": "181",
                "label": "BOND REVIEW BOARD"
            },
            "subchapter": {
                "number": "A",
                "label": "BOND REVIEW RULES"
            },
            "rule": {
                "number": "§181.12",
                "label": "Charges for Public Records"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=215273&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "215273",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "The charge to any person requesting copies of any public records of the Texas Bond Review Board will be the charge established by the Texas Building and Procurement Commission; however, the Texas Bond Review Board will charge the following amounts necessary to recoup the costs of items as follows:(1) computer resources charges (mainframe and programming time), as determined by the Department of Information Resources.(2) copies of public records shall be furnished without charge or at a reduced charge if the Executive Director determines that waiver or reduction of the fee is in the public interest because furnishing the information can be considered as primarily benefiting the general public.(3) any additional reasonable cost will be added at actual cost, with full disclosure to the requesting party as soon as it is known.(4) a reasonable deposit may be required for requests where the total charges are over $200.(5) all requests will be treated equally. The Executive Director may exercise discretion in waiving charges.(6) if records are requested to be inspected instead of receiving copies, access will be by appointment only during regular business hours of the agency and will be at the discretion of the Executive Director.(7) confidential documents will not be made available for examination or copying except under court order or other directive.(8) all open records requests will be referred to the Executive Director or designee before the agency staff will release the information.",
            "sourceNote": "Source Note: The provisions of this §181.12 adopted to be effective October 11, 1994, 19 TexReg 7711; amended to be effective February 27, 2002, 27 TexReg 1335; amended to be effective September 18, 2003, 28 TexReg 8133."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=215273&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "215273",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "9",
                "label": "TEXAS BOND REVIEW BOARD"
            },
            "chapter": {
                "number": "190",
                "label": "ALLOCATION OF STATE'S LIMIT ON CERTAIN PRIVATE ACTIVITY BONDS"
            },
            "subchapter": {
                "number": "A",
                "label": "PROGRAM RULES"
            },
            "rule": {
                "number": "§190.1",
                "label": "General Provisions"
            },
            "nextRule": {
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                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) Introduction. Pursuant to the authority granted by the Administrative Procedure Act, Chapter 2001, Government Code, and Chapter 1372, Government Code, the Bond Review Board prescribes the following sections regarding practice and procedure in the allocation administration of the authority in the state to issue private activity bonds.(b) Objective. The objective of this chapter is to establish the most equitable and efficient means of allocating the state ceiling on private activity bonds in accordance with the Act. The Board intends to formulate policies and guidelines that would provide eligibility standards and procedures for applications submitted to reserve a portion of the state ceiling for private activity bonds.(c) Definition of terms. The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Act--Chapter 1372, Government Code.(2) Amount--With respect to bonds, reservation certificate, or a portion of the state ceiling, is a sum measured in terms of United States dollars.(3) Application fee--Application fees are to be paid as required by Government Code §1372.006 and must be submitted by either overnight delivery, messenger, or electronically as described in §190.8(c), (d) and (e) of this title (relating to Notices, Filings, and Submissions).(4) Application for carryforward--(A) The application required to be filed by an issuer with all attachments and amendments to reserve a portion of the state ceiling for carryforward purposes.(B) In the instance where an issuer is seeking to utilize the allowable number of days to close under the Act and the closing deadline is after December 31, the application for nontraditional carryforward is a letter sent from the issuer to the board, received before December 24th of the program year, notifying the board of intent to close on the applicable date. The letter should include estimated closing date, docket number, and bond amount.(5) Application for reservation--The application required to be filed by an issuer with all attachments to reserve a portion of the state ceiling.(6) Authorized representative--A person authorized by the issuer to execute certain correspondence under §190.3(c) of this title (relating to Bond authorization requirements) and §190.5(h) and (i) of this title (relating to Consideration of Qualified Applications by the Board).(7) Authorized signature--An original, scanned original, or an electronic signature that is authorized by state law and compliant with any relevant codes, including, but not limited to, Title 1 Texas Administrative Code §203.23 of this title (relating to Digital Signatures) and Chapter 322 of the Texas Business and Commerce Code (relating to Uniform Electronic Transactions Act), or any other governing rules or codes, as applicable.(8) Available--Any amount of the state ceiling set aside for reservations by an issuer upon compliance with the terms of the Act and this chapter.(9) Board--The Bond Review Board created under Chapter 1078, Acts of the 70th Legislature, Regular Session, 1987 codified as Chapter 1231, Government Code.(10) Bond authorization requirements--(Thirty-five day filing requirement)--Requirements to be filed by the issuer no later than 35 days after the issuer's reservation date.(11) Bonds--Includes all bonds, certificates, notes, and other obligations authorized to be issued by any issuer by any statute, city home-rule charter, or the Texas Constitution and which are subject to the limitations of the Code, §146.(12) Borrower--Any person or persons whose private business use, within the meaning of the Code, would cause any bonds to constitute private activity bonds within the meaning of the Code. If there is more than one such person with respect to any issue of bonds, then the term shall mean and include each and every such person known at the time that the issuer files an application for reservation or an application for carryforward, except that any one of such persons may execute any such application, letter, or other writing which the Act and this chapter requires to be executed by the borrower.(13) Business day--A day on which the board is open for business. The term shall not include any Saturday, Sunday or holiday officially observed by the state. The board's normal business hours are 8 a.m. to 5 p.m. each business day.(14) Carryforward--(A) Traditional Carryforward--The amount of the state ceiling not reserved before November 16 and any amount previously reserved that becomes available on or after that date because of a reservation cancellation or any other reason.(B) Non-Traditional Carryforward--The amount of state ceiling reserved by an issuer and granted by the Board for a specific purpose and the closing date extends beyond the year in which the reservation was granted.(15) Certificate of allocation--The notice given by the board to an issuer confirming the issuance of bonds receiving a portion of the state ceiling pursuant to the Act and the Code.(16) Certificate of delivery--The notice given to the board by the issuer stating the closing date of the bonds and the amount of bonds issued and delivered at closing.(17) Certificate of reservation--The notice given by the board to an issuer reserving a specific amount of the state ceiling for a specific issue of bonds.(18) Certification regarding fees--The notice given to the board by the issuer or authorized representative of the issuer stating that either a check for a required fee was sent by overnight delivery or a required fee was sent electronically as described in §190.8(c), (d) and (e) of this title (relating to Notices, Filings, and Submissions) in a timely manner.(19) Close or closing--The issuance and delivery of bonds by an issuer in exchange for the required payment therefore, or in the case of mortgage credit certificates, the date when an issuer elects not to issue qualified mortgage bonds and establishes a mortgage credit certificate program under the Code. The term does not include a delivery of bonds if the expenditure of the proceeds of the bonds is conditioned on obtaining credit enhancement in support of the bonds.(20) Closing date--The date the bonds have been issued and delivered in exchange for the required payment therefore.(21) Closing documents--Documents required to be filed by the issuer not later than the fifth business day after the day on which the bonds are closed.(22) Closing fee--The nonrefundable fee in the amount of $1,000 or 0.025% of the principal amount of the bonds certified as provided by Government Code §1372.039(a)(1), whichever is greater paid by all issuers other than those described by Government Code §1372.001(16). In addition, an issuer exchanging a portion of the state ceiling for mortgage credit certificates shall submit to the board a closing fee in the amount of $1,000 or 0.0125% of the amount of the state ceiling exchanged, whichever is greater. An issuer receiving a carryforward designation shall submit to the board a closing fee of $1,000 or 0.025%, of the amount of carryforward designation received, whichever is greater.(23) Code--The Internal Revenue Code of 1986, as amended.(24) Election--An election by an issuer of qualified mortgage bonds to convert its bond authority to mortgage credit certificates under applicable sections of the Code.(25) Executive director--The executive director of the board.(26) Finance team members--Members associated with the specific bond issue and project or mortgage credit certificate program which may include the issuer, user, bond counsel, placement agent, underwriter, trustee, or any other members.(27) Governing body--The board, council, commission, commissioners court, or legislative body of the government unit.(28) Government unit--A city, county or other political subdivision which may create and utilize a corporation, to act for and on its behalf.(29) Housing finance corporation--A corporation created under the Texas Housing Finance Corporations Act, Chapter 394, Local Government Code.(30) Issued--Bonds that have actually been delivered and paid for in full. The date of issuance shall be the date on which the bonds have been delivered and paid for in full.(31) Issuer--Any department, board, authority, agency, subdivision, municipal corporation, political subdivision, body politic, or instrumentality of the State of Texas, or any non-profit corporation acting for or on behalf of any of the foregoing.(32) Joint housing finance corporation--A housing finance corporation acting on behalf of more than one local government unit as provided in the Texas Housing Finance Corporations Act, Chapter 394, Local Government Code.(33) Local government unit--Any city or county.(34) Local population--The population in the local government unit or units on whose behalf a housing finance corporation is created. If two local government units overlap, each having created housing finance corporations with the power to issue bonds to provide home mortgage financing, prior to the submission of either the application for reservation or the application for carryforward by either housing finance corporation, there shall be excluded from the population of the larger local government unit that portion of the population of any smaller local government unit having a population of 50,000 or more which is within the larger local government unit, unless the smaller local government unit assigns its authority to issue qualified mortgage bonds, based upon its population, to the larger local government unit. A resolution assigning authority to issue qualified mortgage bonds must have been adopted within the 18 months preceding the date of submission of the application to the board.(35) Locally voted issue--An issue of bonds authorized pursuant to a referendum approved by the voters of a political subdivision of the State of Texas.(36) Mortgage credit certificate--A certificate of the nature described in the Code, §25.(37) Population--As defined by §311.005(3), Government Code.(38) Prepayments--Reduction of the principal amount of a loan that was originated from bond proceeds resulting in a corresponding reduction of the principal amount of the bond proceeds.(39) Private activity bond--A private activity bond within the meaning given that term under the Code.(40) Program year--A calendar year.(41) Project--A project as defined by Government Code §1372.002, described in the application for reservation or carryforward, proposed to be financed, in whole or in part, by an issue of bonds. With respect to qualified mortgage bonds or qualified student loan bonds, the board shall consider the project or purpose to be the provision of financial assistance to qualifying mortgagors or students within all or any portion of the jurisdiction of the issuer. For purposes of this definition, jurisdiction of the issuer is determined on the date the application for reservation is delivered to the board.(42) Qualified application--A completed application for reservation or an application for carryforward.(43) Qualified bond--A qualified bond within the meaning given that term under the Code.(44) Qualified mortgage bond--A qualified mortgage bond within the meaning given that term under the Code, including mortgage credit certificates.(45) Qualified residential rental project issue--An issue of bonds for a qualified residential rental project, as that term is defined under the Code, §142(d).(46) Qualified small issue bond--A bond within the meaning given that term under the Code.(47) Qualified student loan bond--A bond within the meaning given that term under the Code, §144(b).(48) Related person--Related person within the meaning given that term under the Code.(49) Reservation--A reservation of a portion of the state ceiling for a specific bond issue.(50) Reservation date--The earliest date on which a qualified application for reservation is accepted for filing with the board pursuant to the Act and a portion of the state ceiling is or becomes available to the issuer.(51) Rules--Any statement of general applicability that implements, interprets, or prescribes law or policy, or describes the board's procedures and practice.(52) Significant expenditures--Expenditures greater than the lesser of $1 million or 10% of the reasonably anticipated cost of the project.(53) Staff--The staff of the board.(54) State--The State of Texas.(55) State ceiling--The amount of the authority in the state to issue tax exempt private activity bonds during the calendar year, as determined under the Code.(56) State-voted issue--An issue of bonds authorized pursuant to a statewide referendum approved by the voters of the state.(57) Tax-exempt enterprise zone facility bonds--An issue of bonds for an enterprise zone facility, as that term is defined under the Code, §1394.(58) Unencumbered State Ceiling--Any state ceiling that is not reserved or designated as carryforward and for which no application for carryforward is pending on the last business day of the year which may be assigned by the board, in the order received, to a state issuer or to an issuer that was created to act on behalf of this state at the request of the issuer.(59) Unexpended proceeds--Proceeds remaining from a prior issue of bonds, including, in the case of qualified mortgage bonds, any unused portion of mortgage credit certificates.(d) Amendment and suspension of sections. These sections may be amended by the board at any time in accordance with the Administrative Procedure Act, Government Code, Chapter 2001.(e) Statements and opinions. Statements and opinions expressed orally or in writing by the staff in response to inquiry or otherwise, and not specifically identified and promulgated as sections, shall not be considered regulatory standards of the board and shall not be considered binding upon the executive director in consideration with specific determinations undertaken by the board or the executive director thereafter.(f) Examination of records. Any party requesting the examination of records pursuant to Chapter 552, Government Code, as amended, shall indicate in writing the specific nature of the document to be viewed.",
            "sourceNote": "Source Note: The provisions of this §190.1 adopted to be effective January 3, 1992, 16 TexReg 7646; amended to be effective January 11, 1993, 18 TexReg 65; amended to be effective December 21, 1995, 20 TexReg 10389; amended to be effective October 8, 1997, 22 TexReg 9895; amended to be effective October 6, 1999, 24 TexReg 8566; amended to be effective February 27, 2002, 27 TexReg 1338; amended to be effective September 18, 2003, 28 TexReg 8136; amended to be effective April 10, 2008, 33 TexReg 2831; amended to be effective October 8, 2009, 34 TexReg 6860; amended to be effective December 2, 2019, 44 TexReg 7403; amended to be effective October13,2021,46 TexReg 6948; amended to be effective August 22, 2022, 47 TexReg 5000; amended to be effective October 11, 2023, 48 TexReg 5825."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=215272&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "215272",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "9",
                "label": "TEXAS BOND REVIEW BOARD"
            },
            "chapter": {
                "number": "190",
                "label": "ALLOCATION OF STATE'S LIMIT ON CERTAIN PRIVATE ACTIVITY BONDS"
            },
            "subchapter": {
                "number": "A",
                "label": "PROGRAM RULES"
            },
            "rule": {
                "number": "§190.2",
                "label": "Allocation and Reservation System"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=215274&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
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            "ruleBody": "(a) The state's ceiling shall be determined for each calendar year by the executive director based upon the most recent census estimate of the resident population of the state published by the Bureau of the Census prior to the beginning of such calendar year. The amount of the state ceiling shall be published on the board's website in January each year and shall be updated on the site at least weekly thereafter.(b) On or after October 5 of the year preceding the applicable program year, the board will accept applications for reservation from issuers authorized to issue private activity bonds. The board shall not grant a reservation to any issuer prior to January 2 of the program year. If two or more issuers file an application for reservation of the state ceiling in any of the categories described in Government Code §1372.022, the board shall conduct a lottery establishing the priority order of each such application for reservation. Once the priority order for all applications for reservation filed on or before October 20 of the year preceding the applicable program year is established, except as provided by Government Code §1372.031(b) and subject to Government Code §1372.0321 and Government Code §1372.0231, reservations for each issuer within the categories described in Government Code §1372.022(a)(2), (3), (4), and (5) shall be granted in the order of priority established by such lottery. If determined by staff as necessary an additional lottery may be held immediately to stagger reservation dates for such issuers; otherwise, reservations shall be staggered by priority and then lot number. Each issuer of state voted issues granted a reservation initially may participate in the additional lottery or shall be granted a reservation date which is the first business day of the program year.(c) The order of priority for reservations by housing finance corporations in the category described in Government Code §1372.022(a)(1), shall further be determined as provided in Government Code §1372.032.(1) The first category of priority shall include those applications for a reservation filed by housing finance corporations which filed an application for a reservation on behalf of the same local population prior to September 1 of the previous calendar year, but which did not receive a reservation during such year. Any such priority of an issuer composed of more than one jurisdiction is not affected by the issuer's loss of a sponsoring government unit and that unit's population base if the dollar amount of the application has not increased.(2) The second category of priority shall include those applications for a reservation not included in the first category of priority.(3) Within each category of priority, reservations shall be granted in reverse calendar year order of the most recent closing of qualified mortgage bonds by each housing finance corporation, with the most recent closing being the last to receive a reservation and with those housing finance corporations that have never received a reservation for mortgage revenue bonds being the first to receive a reservation, and, in the case of closings occurring on the same date, reservations shall be granted in an order determined by the board by lot. The most recent closing applicable to:(A) a newly created housing finance corporation that was created by a local government unit or local government units that had previously sponsored an existing housing finance corporation or a disbanded housing finance corporation, is the most recent closing of qualified mortgage bonds the proceeds of which were available to the population of the housing finance corporation;(B) a housing finance corporation sponsored by a local government unit that has participated in the program of another housing finance corporation, is the most recent closing of qualified mortgage bonds the proceeds of which were available to the population of the housing finance corporation; and(C) all other housing finance corporations, is the most recent closing of qualified mortgage bonds by the housing finance corporation. In no event will a housing finance corporation or its sponsoring local government unit be allowed to achieve an advantage in the determination of its last closing date by creating, dissolving, or withdrawing from a housing finance corporation.(d) The order of priority for reservations in the category described in Government Code §1372.022(a)(4) shall further be determined as provided in Government Code §1372.0321 and Government Code §1372.0231.(1) The first category of priority shall include those applications for a reservation for projects that:(A) during the four-year period preceding the date of the application, have:(i) filed an application for a low-income housing tax credit with the Texas Department of Housing and Community Affairs; and(ii) closed on a previous reservation of bonds in accordance with Government Code §1372.042, as determined based on the date of allocation of those bonds; and(B) require a subsequent issuance of bonds to maintain compliance with the percentage requirement described in Government Code §1372.0321(e); and(C) have not previously applied for a subsequent issuance of bonds under Government Code §1372.0321(a).(2) The second category of priority shall include those applications for a reservation for:(A) projects:(i) in which 50% of the units are reserved for families and individuals earning not more than 50% of the area median family income and in which the maximum allowable rents are restricted to 30% of 50% of area median family income, minus an allowance for utility costs authorized under the federal Low Income Housing Tax Credit Program; and(ii) the remaining 50% of the residential units in the project are reserved for families and individuals earning not more than 60% of the area median family income and in which the maximum allowable rents are restricted to 30% of 60% of area median family income, minus an allowance for utility costs authorized under the federal Low Income Housing Tax Credit Program; or(B) projects:(i) in which 15% of the residential units in the project are reserved for families and individuals earning not more than 30% of the area median family income and in which the maximum allowable rents are restricted to 30% of 30% of area median family income, minus an allowance for utility costs authorized under the federal Low Income Housing Tax Credit Program; and(ii) the remaining 85% of the residential units in the project are reserved for families and individuals earning not more than 60% of the area median family income and in which the maximum allowable rents are restricted to 30% of 60% of area median family income, minus an allowance for utility costs authorized under the federal Low Income Housing Tax Credit Program; or(C) projects:(i) in which 100% of the residential units in the project are reserved for families and individuals earning not more than 60% of the area median family income and in which the maximum allowable rents are restricted to 30% of 60% of area median family income, minus an allowance for utility costs authorized under the federal Low Income Housing Tax Credit Program; and(ii) which are located in a census tract in which the median income, based on the most recent information published by the United States Bureau of the Census, is higher than the median income for the county, metropolitan statistical area, or primary metropolitan statistical area in which the census tract is located as established by the United States Department of Housing and Urban Development; or(D) on June 1 and after, projects that were submitted for the lottery, and are located in counties, metropolitan statistical areas, or primary metropolitan statistical areas with area median family income levels below or at the median family income for the state according to the U.S. Department of Housing and Urban Development.(3) The third category of priority shall include those applications for a reservation for a project in which at least 80% of the units are reserved for families and individuals earning not more than 60% of the area median family income and in which the maximum allowable rents are restricted to 30% of 60% of area median family income, minus an allowance for utility costs authorized under the federal Low Income Housing Tax Credit Program.(4) The fourth category of priority shall include those applications for any other qualified residential rental project.(5) Within each category of priority, reservations shall be granted in the order established by the lottery subject to Government Code §1372.0231.(6) Owners of Low Income Housing Tax Credits (LIHTC) and 501(c)(3) properties that issue through State agencies are prohibited from having policies, procedures and/or screening practices which have the effect of excluding applicants because they have Section 8 voucher or certificate. The verification of such an exclusionary practice on the part of the owner or manager by a state agency will be considered a violation and may result in the owner's inability to participate in future housing programs of the state.(7) When determining the priority level of an application established under Government Code §1372.0321, the applicant shall use the most current data available on October 1 of the year preceding the program year in which allocation is being sought, unless specifically otherwise provided in federal or state law or in this title. All American Community Survey (ACS) data must be five year estimates, and any reference to median income in this title shall be synonymous with median family income unless otherwise specified.(e) The order of priority for reservations in the category described in Government Code §1372.022(a)(5), shall further be determined as provided in Government Code §1372.033.(f) If state ceiling becomes available on August 15, it shall be available for all applications for reservations in the order determined by the board by lot. If all applications have been offered a portion of the available state ceiling then the board shall grant reservations in the order in which the applications are received.(g) All applications for a reservation filed after October 20 of the preceding year by any issuer for the issuance of bonds shall be accepted by the board in their order of receipt.(h) An application for a reservation for the current program year may not be submitted and a reservation may not be granted after November 15 of the program year.(i) An issuer may refuse to accept a reservation if the amount of state ceiling available is less than the amount for which the issuer applied or for any amount if the reservation is granted after September 23 of the program year.(j) The amount of the state's ceiling that has not been reserved prior to November 16 of the program year and any amount previously reserved that becomes available on or after that date because of the cancellation of a reservation or any other reason, may be designated, by the board, as traditional carryforward for the carryforward purposes outlined in the Code through submission of the application for carryforward and any other required documentation. If the 150-day, 180-day, or 210-day period, as applicable, expires on or after December 24th of a program year in which a reservation was issued, an issuer is required to close on its bonds before December 24th. However, if an issuer's applicable period expires after December 31st, the issuer must notify the board in writing before December 24th of their intent to request non-traditional carryforward designation of the reservation and with their expected bond closing date. The granting by the board of a non-traditional carryforward designation through this described process, will allow an issuer the remaining balance of their 150-day, 180-day, or 210-day period, as applicable, to close on their bond by the expected closing date. If any issuer makes this election and does not close the bonds on or before the expected closing date, the amount of non-traditional carryforward designation will be administered by the board in compliance with the requirements of the Code.(k) An issuer may submit an application for carryforward to the board at any time during the year before December 24th.(l) Issuers will be eligible for carryforward according to the priority classifications listed in the Act, specifically Government Code §1372.062.(m) With respect to the amount of the state ceiling set aside under Government Code §1372.0231(a)(1) and (3), applications are subject to review and approval by board staff prior to receiving a certificate of allocation.(n) With respect to the time period and amount of the state ceiling set aside under Government Code §1372.0231(a)(1), should the Texas Department of Housing and Community Affairs (TDHCA) opt to participate in the lottery, TDHCA shall submit residential rental project applications to the board during the application period outlined in Government Code §1372.028. The board shall include a number of lottery balls in the lottery on behalf of TDHCA equal to the number of applications TDHCA submits that are eligible for participation in the lottery. Prior to the date of the lottery, TDHCA will rank its eligible applications according to the provisions established by TDHCA and shall provide this ranking to the board. After the lottery, the board will assign the lottery numbers drawn on behalf of TDHCA to TDHCA's eligible applications based upon the rank provided by TDHCA, with the lowest lottery number being assigned to the highest-ranking application. TDHCA applications submitted post-lottery are ineligible for lottery numbers and may not receive a reservation ahead of any other TDHCA eligible application with a lottery number.(o) Until August 1 of the program year, within the category described by Government Code §1372.022(a)(5), priority shall be granted to the Texas Economic Development Bank for projects that the Texas Economic Development and Tourism Office determines meet the governor's criteria for funding from the Texas Enterprise Fund, pursuant to the requirements of Government Code §1372.031(b).(p) On the last business day of a program year the Board may assign as carryforward unencumbered state ceiling to a state agency or to an issuer that was created to act on behalf of the state at their request and in the order received without a formal application process. Unencumbered means any state ceiling that is not reserved or designated as carryforward and for which no application for carryforward is pending.",
            "sourceNote": "Source Note: The provisions of this §190.2 adopted to be effective January 3, 1992, 16 TexReg 7646; amended to be effective January 11, 1993, 18 TexReg 65; amended to be effective December 21, 1995, 20 TexReg 10389; amended to be effective October 8, 1997, 22 TexReg 9895; amended to be effective October 6, 1999, 24 TexReg 8566; amended to be effective February 27, 2002, 27 TexReg 1338; amended to be effective September 26, 2002, 27 TexReg 8957; amended to be effective September 18, 2003, 28 TexReg 8136; amended to be effective April 10, 2008, 33 TexReg 2831; amended to be effective October 8, 2009, 34 TexReg 6860; amended to be effectiveDecember 2, 2019, 44 TexReg 7403; amended to be effective October 13, 2021, 46 TexReg 6948; amended to be effective August 22, 2022, 47 TexReg 5000; amended to be effective October 11, 2023, 48 TexReg 5825."
        },
        {
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            "currentRecordId": "215274",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "9",
                "label": "TEXAS BOND REVIEW BOARD"
            },
            "chapter": {
                "number": "190",
                "label": "ALLOCATION OF STATE'S LIMIT ON CERTAIN PRIVATE ACTIVITY BONDS"
            },
            "subchapter": {
                "number": "A",
                "label": "PROGRAM RULES"
            },
            "rule": {
                "number": "§190.3",
                "label": "Filing Requirements for Applications for Reservation"
            },
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            "ruleBody": "(a) Form. Applications must be filed on forms prescribed by the board and must contain all information and documentation required under the Act and this chapter, as applicable.(b) Application Filing. The issuer shall submit one electronic copy or one original application for reservation. Each application must be accompanied by the following:(1) the application fee;(2) the certificate regarding fees, on the form prescribed by the board;(3) a copy of the inducement resolution or other similar official action taken by the issuer with respect to the bonds and the project which are the subject of the application, certified by an officer of the issuer; or a copy of the certified resolution of the issuer authorizing the filing of the application for reservation, in either case certified with an authorized signature by an officer of the issuer and unless the resolution authorizes the issuer to seek an allocation in multiple program years, adopted within 18 months of the application date;(4) a copy of the issuer's articles of incorporation as certified by the secretary of state of Texas and bylaws, including amendments thereto and restatements thereof, or alternatively, a certification with an authorized signature by an authorized representative of the issuer that there have been no amendments to the articles of incorporation or bylaws since the last submission of these items to the board;(5) a copy of the issuer's certificate of continued existence from the secretary of state of Texas dated within 30 days of submission of application, an issuer's certificate of good standing is not an acceptable substitution for this requirement;(6) a copy of the borrower's and, if the borrower is a partnership, each partner's certificate of good standing from the comptroller of public accounts of Texas, dated within 30 days of submission of application;(7) a statement by the issuer, other than an issuer of a state-voted issue or the Texas Department of Housing and Community Affairs (TDHCA) or the Texas State Affordable Housing Corporation (TSAHC) that the bonds are not being issued for the same stated purpose for which the issuer has received sufficient carryforward during a prior year or for which there exists unexpended proceeds from a prior issue or issues of bonds issued by the same issuer, or based on the issuer's population;(8) if unexpended proceeds exist, including transferred proceeds representing unexpended proceeds, from a prior issue or issues of bonds, other than a state-voted issue or an issue by the TDHCA or TSAHC, issued by the issuer or on behalf of the issuer, or based on the issuer's population, for the same stated purpose for which the bonds are the subject of this application, a statement by the trustee as to the current amount of unexpended proceeds that exists for each such issue. The issuer of the prior issue of bonds shall certify to the current amount of unexpended proceeds that exists for each issue should a trustee not administer the bond issues;(9) if unexpended proceeds, including transferred proceeds representing unexpended proceeds, other than prepayments exist from a prior issue or issues of bonds, other than a state-voted issue or an issue by TDHCA or TSAHC, issued by the issuer or on behalf of the issuer, or based on the issuer's population, for the same stated purpose for which the bonds are the subject of this application, a definite and binding financial commitment agreement must accompany the application in such form as the board finds acceptable, to expend the unexpended proceeds by the later of 12 months after the date of receipt by the board of an application for reservation or December 31 of the program year for which the application is being filed. For purposes of this paragraph, the commitment by lenders to originate and close loans within a certain period of time shall be deemed a definite and binding agreement to expend bond proceeds within such period of time and any additional period of time during which such origination period may be extended under the terms of such agreement; provided that any extension provision may be amended, prior to the date on which the bond authorization requirements described in subsection (c) of this section must be satisfied, to provide that such period shall not be extended beyond the later of 12 months after the date of receipt by the board of an application for reservation or December 31 of the program year for which the application is being filed. For purposes of this paragraph, issuers of qualified student loan bonds authorized by §53B.47, Education Code, may satisfy the requirements of Government Code §1372.028(c)(3)(F), in lieu of a definite and binding agreement, by providing with the application evidence as certified by the issuer that the issuer has purchased, in each of the last three calendar years, qualified student loans in amounts greater than or equal to the amount of the unexpended proceeds;(10) if unexpended proceeds exist from a prior issue or issues of bonds, other than a state-voted issue or an issue by the TDHCA or TSAHC, issued by the issuer or on behalf of the issuer, or based on the issuer's population, for the same stated purpose for which the bonds are the subject of the pending application, a written opinion of legal counsel, addressed to the board, to the effect, that the board may rely on the representation contained in the application to fulfill the requirements of the Act and that the agreement referred to in paragraph (9) of this subsection constitutes a legal and binding obligation of the issuer, if applicable, and the other party or parties to the agreement;(11) a written opinion of legal counsel, addressed to the board, stating the bonds are required to be included under the state ceiling and that the issuer is legally authorized to issue bonds for projects of the same type and nature as the project which is the subject of the application. This opinion shall cite by constitutional or statutory reference, the provision of the Constitution or law of the state which authorizes the bonds for the project;(12) a qualified mortgage bond issuer that submits an application for reservation as described in §1372.032, Government Code, shall provide a statement certifying to the most recent closing of qualified mortgage bonds determined as provided in §190.2(c)(3) of this title (relating to Allocation and Reservation System), and the most recent date of a reservation received for mortgage revenue bonds and state the government unit(s) for which the local population was based for the issuance of bonds or for receipt of a reservation; and for said issuers who have received an allocation of volume cap for the purposes of issuing qualified mortgage bonds within the six years prior to the date of application, a statement on the form prescribed by the Board as to the utilization percentage relating to its most recent allocation calculated in accordance with Government Code §1372.0261. If during the previous year, a qualified mortgage bond issuer submitted an application for reservation that has not been granted at the time of application for the lottery, the issuer may opt to file a statement explaining whether there are any changes in information from the application filed the previous year in lieu of submitting a complete application. If there are changes, the statement must specify current information. The issuer must pay the same application fee whether filing a statement or a complete application;(13) for a qualified residential rental project issue, an issuer shall provide a copy of an active executed earnest money contract between the borrower and the seller of the project. The earnest money contract for Tax-Exempt Bond Lottery Applications must be in effect at the time of submission of the application to the board and expire no earlier than December 1 of the year preceding the applicable program year. The earnest money contract must stipulate and provide for the borrower's option to extend the contract expiration date through March 1 of the program year, subject only to the seller's receipt of additional earnest money or extension fees, so that the borrower will have site control at the time a reservation is granted. If the borrower owns the property, evidence of ownership must be provided. For subsequent reservations granted throughout the remainder of the program year, the borrower must provide within the close of three business days following the notification of pending reservation:(A) if applicable, proof of application for Low Income Housing Tax Credits with TDHCA; and(B) a copy of an earnest money contract that is in full force and effect or the reservation will automatically expire;(14) the borrower must be specified in the application for reservation of allocation. The borrower may be identified as a to-be-formed entity only if the application for reservation of allocation specifies a related entity or an entity that will be a component of the to-be-formed entity as borrower;(15) for qualified residential rental project issues where the borrower is an entity or to-be-formed entity that is designated or intends to seek abatement from ad valorem taxation, that intent to seek abatement must be specified on the application for reservation of allocation;(16) each issuer of qualified student loan bonds authorized by §53B.47, Education Code, shall submit with the application for reservation the information as required in Government Code 1372.0281.(c) Bond authorization requirements. Not later than 35 calendar days after an issue's reservation date, the board or Comptroller of Public Accounts, as applicable, must be in receipt of the following from the issuer:(1) one-third of the closing fee;(2) the certificate regarding fees, on the form prescribed by the board;(3) a certificate signed by the issuer or authorized representative of the issuer that certifies the principal amount of the bonds to be issued or the portion of the state ceiling that will be converted to mortgage credit certificates;(4) a list of finance team members with their addresses and telephone numbers;(5) if applicable, an amended agreement pursuant to subsection (b)(9) of this section;(6) a bond authorization requirements checklist, on the form prescribed by the board;(7) if the borrower was originally identified as a to-be-formed entity, the final formation of the borrower must be identified as part of the submission and must meet the specifications set forth in the application for reservation of allocation. No changes will be permitted in the general partner of the borrower after the 35th day after the date of reservation;(8) if an issuer fails to meet the 35-day deadline, the issuer may request a waiver from the board. The board will consider taking action to waive the missed deadline only if:(A) the board is notified via facsimile transmission or e-mail of the missed deadline and intent to seek waiver not later than 36 calendar days after an issue's reservation date, and;(B) the Bond Authorization Requirements filing, accompanied by a statement and evidence regarding extenuating circumstances that prevented a timely filing, is made not later than 38 calendar days after an issue's reservation date. Extenuating circumstances that would be grounds for waiver include acts of God, unforeseen acts of war, or medical emergency;(9) an issuer described by Government Code §1372.022(a)(2) is not required to submit items described under paragraphs (1) and (2) of this subsection.(d) Closing fee. The remaining two-thirds of the fee must be paid by all issuers other than those described by Government Code §1372.022(a)(2) simultaneously with closing on the bonds. The board shall be in receipt of the fee from the issuer as confirmed by the Comptroller of Public Accounts not later than the fifth business day after the day on which the bonds are closed.(e) Closing documents. Not later than the fifth business day after the day on which the bonds are closed the issuer shall file with the board:(1) a certificate regarding fees, on the form prescribed by the board;(2) a closing documents checklist, on the form prescribed by the board;(3) a certificate of delivery on the form prescribed by the board;(4) a certified copy of the bond resolution authorizing the issuance of bonds, and setting forth the specific principal amount of the bond issue and, unless the resolution authorizes the issuer to seek an allocation in multiple program years, adopted within 18 months of the application date;(5) if one is required, a copy of the approval of the local government unit or local government units, certified by a public official with the authority to certify such approval. This requirement shall not apply to any bonds for which the Code does not require such a public hearing and approval of a local government unit or local government units;(6) the document evidencing compliance with Government Code §1372.040;(7) other documents relating to the issuance of bonds, including a statement of the bonds':(A) principal amount;(B) interest rate or the formula by which the interest is calculated;(C) maturity schedule; and(D) purchaser or purchasers;(8) an official statement;(9) for mortgage credit certificates the issuer shall file item in paragraph (1) of this subsection and the following:(A) a certified copy of the issuer's resolution electing to convert state ceiling to mortgage credit certificates;(B) issuer's mortgage credit certificate election; and(C) program plan;(10) for a residential rental project described in §190.2(d)(1), (2) or (3) of this title, evidence from the Texas Department of Housing and Community affairs that an award of Low Income Housing Tax Credits has been approved for the project;(11) if for a program year Government Code §1372.037(b) applies, the certification issued by the Attorney General pursuant to Government Code §1202.003(b-1).(f) Additional information. The board may require additional information at any time before granting a certificate of reservation or certificate of allocation.(g) Application restrictions.(1) In order to submit an application for reservation prior to October 21 of the year immediately preceding the program year an issuer or borrower must have been in existence on October 1 of that year.(2) Project substitutions will not be allowed after the application for reservation has been delivered to the board. Alterations to the project, including changes to unit size, number of total units and unit mix, as well as changes to the land size necessitated as part of the development or finance approval process in the case of residential rental projects will be permitted only if said changes:(A) are agreed to by the issuer; and(B) do not include the addition of land that is the subject of another application in the current program year.(3) No issuer may submit an application for reservation for the same or substantially the same project or projects as are contained in the application of another issuer.(4) No issuer prior to August 15 of the program year may apply for an amount that exceeds the maximum application limits as described in Government Code §1372.037(a).(5) The board may not accept applications for more than one project located at, or related to, a business operation at a particular site for any one program year.(6) For a qualified residential rental project issue, the Residential Rental Attachment contained in the Application packet for Reservation of Allocation must correctly reflect the regional designation of the project's location at the time of the lottery. If it is found to be incorrect on or after the lottery date, the project will be placed at the end of the lottery list once the region designation error is detected and corrected.(7) For a qualified residential rental project, an applicant may not ever amend the priority status of the project once the application for reservation of allocation has been submitted to the Board.(8) Qualified residential rental projects submitted post-lottery will be placed after all qualified residential rental projects submitted prior to the lottery, regardless of priority designation.",
            "sourceNote": "Source Note: The provisions of this §190.3 adopted to be effective January 3, 1992, 16 TexReg 7646; amended to be effective January 11, 1993, 18 TexReg 65; amended to be effective February 10, 1994, 19 TexReg 634; amended to be effective December 21, 1995, 20 TexReg 10389; amended to be effective October 8, 1997, 22 TexReg 9895; amended to be effective October 6, 1999, 24 TexReg 8566; amended to be effective February 27, 2002, 27 TexReg 1338; amended to be effective September 26, 2002, 27 TexReg 8957; amended to be effective September 18, 2003, 28 TexReg 8136; amended to be effective April 10, 2008, 33 TexReg2831;amended to be effective October 8, 2009, 34 TexReg 6860; amended to be effective December 2, 2019, 44 TexReg 7403; amended to be effective October 13, 2021, 46 TexReg 6948; amended to be effective October 11, 2023, 48 TexReg 5825."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=215275&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "215275",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "9",
                "label": "TEXAS BOND REVIEW BOARD"
            },
            "chapter": {
                "number": "190",
                "label": "ALLOCATION OF STATE'S LIMIT ON CERTAIN PRIVATE ACTIVITY BONDS"
            },
            "subchapter": {
                "number": "A",
                "label": "PROGRAM RULES"
            },
            "rule": {
                "number": "§190.4",
                "label": "Filing Requirements for Applications for Carryforward"
            },
            "nextRule": {
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            "ruleBody": "(a) Form. Applications must be filed on forms prescribed by the board and must contain all information and documentation required under the Act and this chapter, as applicable.(b) Application Filing. The issuer shall submit one electronic copy or one original application for carryforward. Each application must be accompanied by the following:(1) the application fee;(2) the certificate regarding fees, on the form prescribed by the board;(3) a copy of the inducement resolution or other similar official action taken by the issuer with respect to the bonds and the project which are the subject of the application, certified by an officer of the issuer; or a copy of the certified resolution of the issuer authorizing the filing of the application for carryforward designation, in either case certified with an authorized signature by an officer of the issuer, and unless the resolution authorizes the issuer to seek a carryforward designation in multiple program years, adopted within 18 months of the application date;(4) a copy of the issuer's articles of incorporation as certified by the secretary of state of Texas and bylaws, including amendments thereto and restatements thereof, or alternatively, a certification with an authorized signature by an authorized representative of the issuer that there have been no amendments to the articles of incorporation or bylaws since the last submission of these items to the board;(5) a copy of the issuer's certificate of continued existence from the secretary of state of Texas dated within 30 days of submission of application; an issuer's certificate of good standing is not an acceptable substitution for this requirement;(6) a copy of the borrower's and, if the borrower is a partnership, each partner's certificate of good standing from the comptroller of public accounts of Texas, dated within 30 days of submission of application;(7) documentation evidencing that the project meets all requirements of the elected carryforward priority classification as prescribed by Government Code 1372.063-068;(8) a written opinion of legal counsel, addressed to the board, to the effect, that the board may rely on the representation contained in the application relating to paragraph (7) of this subsection to fulfill the requirements of the Act;(9) a written opinion of legal counsel, addressed to the board, stating the bonds are required to be included under the state ceiling and that the issuer is legally authorized to issue bonds for projects of the same type and nature as the project which is the subject of the application. This opinion shall cite by constitutional or statutory reference the provision of the Constitution or law of the state which authorizes the bonds for the project;(10) for a qualified residential rental project issue, an issuer shall provide a copy of an active executed earnest money contract between the borrower and the seller of the project. The borrower must provide within the close of five business days following the notification of pending designation a copy of an earnest money contract that is in full force and effect or the designation will automatically expire; and(11) for qualified residential rental project issues where the borrower is an entity that is designated or intends to seek abatement from ad valorem taxation, that intent to seek abatement must be specified on the application for carryforward designation.(c) Fee. The fee required by Government Code §1372.006(e) must be paid not later than the fifth business day following the date of receipt of the certificate of carryforward designation.(d) Additional Information. The board may require additional information at any time before granting a certificate of carryforward.(e) Closing documents. Not later than the fifth business day after the day on which the bonds are closed the issuer shall file with the board:(1) a closing documents checklist on the form prescribed by the board;(2) a certificate of delivery on the form prescribed by the board;(3) a certified copy of the bond resolution authorizing the issuance of bonds, and setting forth the specific principal amount of the bond issue, and unless the resolution authorizes the issuer to seek an allocation in multiple program years, adopted within 18 months of the application date;(4) if one is required, a copy of the approval of the local government unit or local government units, certified by a public official with the authority to certify such approval. This requirement shall not apply to any bonds for which the Code does not require such a public hearing and approval of a local government unit or local government units;(5) other documents relating to the issuance of bonds, including a statement of the bonds':(A) principal amount;(B) interest rate or the formula by which the interest is calculated;(C) maturity schedule; and(D) purchaser or purchasers;(6) an official statement.(f) Reassignment of carryforward designation--Traditional carryforward can be reassigned by the issuer as described in Government Code §1372.074(a).(g) Unutilized carryforward designation available after a project closes can be reassigned as described in Government Code §1372.074(c) and subject to the time period allowed by the Code and described in Government Code §1372.061(b).",
            "sourceNote": "Source Note: The provisions of this §190.4 adopted to be effective January 3, 1992, 16 TexReg 7646; amended to be effective January 11, 1993, 18 TexReg 65; amended to be effective October 8, 1997, 22 TexReg 9895; amended to be effective October 6, 1999, 24 TexReg 8566; amended to be effective February 27, 2002, 27 TexReg 1338; amended to be effective December 2, 2019, 44 TexReg 7403; amended to be effective October 13, 2021, 46 TexReg 6948; amended to be effective August 22, 2022, 47 TexReg 5000; amended to be effective October 11, 2023, 48 TexReg 5825."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=215276&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "215276",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "9",
                "label": "TEXAS BOND REVIEW BOARD"
            },
            "chapter": {
                "number": "190",
                "label": "ALLOCATION OF STATE'S LIMIT ON CERTAIN PRIVATE ACTIVITY BONDS"
            },
            "subchapter": {
                "number": "A",
                "label": "PROGRAM RULES"
            },
            "rule": {
                "number": "§190.5",
                "label": "Consideration of Qualified Applications by the Board"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=215277&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "215277",
                "queryAsDate": "03/11/2026"
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            "ruleBody": "(a) All fees required by the Act and the rules must be submitted under separate cover by either: check through overnight delivery or messenger to the lockbox address as described in §190.8(d) of this title (relating to Notices, Filings, and Submissions) or electronically to the Texas Bond Review Board account via the Comptroller of Public Accounts Automated Clearing House (ACH) Transfer Portal. Each check must be accompanied by a fee verification form as prescribed by the board. The Comptroller of Public Accounts shall note the receipt of the check on the fee verification form and forward the form to the board, or, if the fee is paid electronically, the Comptroller of Public Accounts shall note receipt of the electronic fee by providing a daily itemized report of electronic fees submitted to the Texas Bond Review Board account to the board. If the fee is not received in a timely manner, the corresponding filing will not be a complete filing, and with respect to a filing pursuant to §190.3(a) or (c) of this title (relating to Filing Requirements for Applications for Reservation), the reservation will be cancelled.(b) All other submissions required by the Act must be either: sent electronically via email, delivered in person to the board at its offices during normal business hours, or sent by overnight delivery, certified, or registered mail, postage prepaid, and addressed to the board. The board shall note on the face of the documents the date and time that they are received and provide, upon issuer request, the issuer with a receipt describing the document received and the date and time of receipt. The board will review the application to determine if it is complete. The board shall return any application not in substantial compliance with the Act and these sections.(c) The board shall stamp or otherwise designate the date and time on which it receives each qualified application. The application shall not be considered complete unless and until each of the items required under this section has been received by the board.(d) The board shall give its certificate of reservation approving the reservation requested by the issuer within five business days after the board receives the qualified application or within a reasonable and timely manner, as determined by the Executive Director, to the extent that amounts in the state ceiling remain available for certificates of reservation.(e) If at any time the amount of the state ceiling or portion of the state ceiling reserved for qualified mortgage bonds, state voted issues, qualified small issue bonds, qualified residential rental project issues, qualified student loan bonds, or all other bond issues has been exhausted, applications which would otherwise qualify for a reservation shall be received and dated and become eligible for reservations as provided in subsection (f) of this section.(f) The board may grant a reservation at any time on or after January 2 and before November 16 if the amount of state ceiling available in any category exceeds the amount of state ceiling applied for in that category by the next applicant. Partial reservations may be granted only in accordance with Government Code §1372.036.(g) A reservation that is received by an issuer of qualified mortgage bonds for only a portion of the amount requested in the application for reservation shall be considered a reservation for the program year regardless of the amount reserved, and if an application for a reservation is submitted for the following program year by such issuer, as described in Government Code §1372.032, the category of priority will be determined in accordance with Government Code §1372.032(a), and the order determined by Government Code §1372.032(c).(h) If any change in a qualified application or in any of the items accompanying the application should occur prior to the date state ceiling becomes available to an issuer, the issuer or authorized representative shall promptly notify the board of any such change. Prior to receiving a reservation, only an issuer, or authorized representative of the issuer, may amend the application to change the amount of the state ceiling requested, but the board may not accept an amendment to increase the amount of the state ceiling requested unless at the time of the amendment seeking an increase in the amount of state ceiling there are no other qualified applications pending, subsequent in order to said application, for which state ceiling is not available.(i) Upon notice by the board that a portion of the state ceiling will be available to the issuer for less than the requested amount, the issuer or authorized representative must confirm in writing its acceptance or denial of the amount available, within three business days. Refusal by an issuer to accept a certificate of reservation for less than the amount requested in a qualified application shall not change the chronological order in which such issuer will be offered a certificate of reservation. If an issuer accepts a certificate of reservation for less than the requested amount, the issuer shall maintain its current position, and will be offered the next available reservation amounts until the original request has been satisfied. However, the deadline restrictions will be calculated from the date of reservation for each reservation amount.",
            "sourceNote": "Source Note: The provisions of this §190.5 adopted to be effective January 3, 1992, 16 TexReg 7646; amended to be effective January 11, 1993, 18 TexReg 65; amended to be effective October 8, 1997, 22 TexReg 9895; amended to be effective October 6, 1999, 24 TexReg 8566; amended to be effective February 27, 2002, 27 TexReg 1338; amended to be effective September 26, 2002, 27 TexReg 8957; amended to be effective September 18, 2003, 28 TexReg 8136; amended to be effective October 8, 2009, 34 TexReg 6860; amended to be effective December 2, 2019, 44 TexReg 7403; amended to be effective October 13, 2021, 46 TexReg 6948;amended to be effective October 11, 2023, 48 TexReg 5825."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=215277&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "215277",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "9",
                "label": "TEXAS BOND REVIEW BOARD"
            },
            "chapter": {
                "number": "190",
                "label": "ALLOCATION OF STATE'S LIMIT ON CERTAIN PRIVATE ACTIVITY BONDS"
            },
            "subchapter": {
                "number": "A",
                "label": "PROGRAM RULES"
            },
            "rule": {
                "number": "§190.6",
                "label": "Expiration Provisions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206428&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "206428",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A certificate of reservation for an application within the categories described by Government Code §1372.022(a)(1) and (2) shall expire at the close of business on the 210th calendar day after the date on which the reservation is given. A certificate of reservation for an application within the category described by Government Code §1372.022(a)(4), or an application for a qualified residential rental project contained in category Government Code §1372.022(a)(5), shall expire at the close of business on the 180th calendar day after the date on which the reservation is given. A certificate of reservation for an application within the categories described by Government Code §1372.022(a)(3) and (5), excluding applications for qualified residential rental projects contained in category Government Code §1372.022(a)(5), shall expire at the close of business on the 150th calendar day after the date on which the reservation is given. A certificate of reservation for an application for a qualified nonprofit corporation issuer of qualified student loan bonds shall expire at the close of business on the 210th calendar day after the date on which the reservation is given.(b) Prior to the expiration date of the reservation, the issuer may give notice to the board that the reservation will not be used, and the amount will be added to the appropriate state ceiling.(c) If an issuer for an application within the category described by Government Code §1372.022(a)(4), or an application for a qualified residential rental project contained in category Government Code §1372.022(a)(5) fails to close on the bonds on or before the 180th calendar day after which the reservation was granted and fails to withdraw the application on or before the 150th calendar day after which the reservation was granted, the issuer must pay the full closing fee provided by Government Code §1372.006(b) not later than the 185th calendar day after which the reservation was granted. The issuer will not receive a subsequent reservation of allocation or be permitted to file an application for reservation until the fee has been paid to the board.",
            "sourceNote": "Source Note: The provisions of this §190.6 adopted to be effective January 3, 1992, 16 TexReg 7646; amended to be effective December 21, 1995, 20 TexReg 10389; amended to be effective October 8, 1997, 22 TexReg 9895; amended to be effective October 6, 1999, 24 TexReg 8566; amended to be effective February 27, 2002, 27 TexReg 1338; amended to be effective September 18, 2003, 28 TexReg 8136; amended to be effective December 2, 2019, 44 TexReg 7403; amended to be effective October 13, 2021, 46 TexReg 6948; amended to be effective October 11, 2023, 48 TexReg 5825."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=206428&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "206428",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "9",
                "label": "TEXAS BOND REVIEW BOARD"
            },
            "chapter": {
                "number": "190",
                "label": "ALLOCATION OF STATE'S LIMIT ON CERTAIN PRIVATE ACTIVITY BONDS"
            },
            "subchapter": {
                "number": "A",
                "label": "PROGRAM RULES"
            },
            "rule": {
                "number": "§190.7",
                "label": "Cancellation, Withdrawal and Penalty Provisions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=215278&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "215278",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If the issuer does not timely submit the bond authorization requirements described in §190.3(c) of this title (relating to Filing Requirements for Applications for Reservation), the issuer's reservation is cancelled. If the reservation is cancelled, then the issuer must follow the requirements outlined in Government Code §1372.039.(b) If the closing documents are not received within five business days after the closing as described in §190.3(e) of this title, the issuer's reservation is cancelled. During the 150-day period beginning on the reservation date of the cancelled reservation for applications within the categories described by Government Code §1372.022(a)(3) and (5), excluding applications for qualified residential rental projects contained in category Government Code §1372.022(a)(5), the 180-day period for an application within the category described by Government Code §1372.022(a)(4), or an application for a qualified residential rental project contained in category Government Code §1372.022(a)(5), and the 210-day period for an application within the categories described by §1372.022(a)(1) and (2) as well as applications for qualified student loan bonds:(1) the issuer or any other issuer may not submit an application for a reservation for the same project; and(2) the issuer is eligible for a carryforward designation for the project only as provided by the Act.(c) Notwithstanding §190.6(c) of this title (relating to Expiration Provisions), if an issuer withdraws an application for reservation prior to the expiration date, there is no penalty for such withdrawal.(d) A certificate of allocation will not be issued until all required closing documents and the remaining two-thirds of the closing fee have been received by the board.",
            "sourceNote": "Source Note: The provisions of this §190.7 adopted to be effective January 3, 1992, 16 TexReg 7646; amended to be effective October 8, 1997, 22 TexReg 9895; amended to be effective October 6, 1999, 24 TexReg 8566; amended to be effective February 27, 2002, 27 TexReg 1338; amended to be effective September 18, 2003, 28 TexReg 8136; amended to be effective April 10, 2008, 33 TexReg 2831; amended to be effective December 2, 2019, 44 TexReg 7403; amended to be effective October 13, 2021, 46 TexReg 6948."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=215278&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "215278",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "9",
                "label": "TEXAS BOND REVIEW BOARD"
            },
            "chapter": {
                "number": "190",
                "label": "ALLOCATION OF STATE'S LIMIT ON CERTAIN PRIVATE ACTIVITY BONDS"
            },
            "subchapter": {
                "number": "A",
                "label": "PROGRAM RULES"
            },
            "rule": {
                "number": "§190.8",
                "label": "Notices, Filings, and Submissions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3952&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "3952",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) All notices, certificates, and written communications from the board shall be deemed to have been given when sent via electronic mail. Notwithstanding any other provision of this rule, certificates of reservation may, at the request of the borrower, be picked up by hand or delivered by courier or other delivery service, in any case at the expense of the borrower or issuer and shall be deemed to have been given when received by the courier or delivery service.(b) Applications, notices, and other written communication to and filings with the board may be mailed or delivered to the Bond Review Board, William P. Clements State Office building, 300 West 15th Street, Suite 409, Austin, Texas 78701 or sent by electronic mail.(c) Fees must be made payable to the Texas Bond Review Board.(d) Fees should be sent by either:(1) check through overnight delivery and addressed as follows: Comptroller of Public Accounts Item Processing - Lockbox Section 208 E. 10th St. Austin, Texas 78701; or(2) electronically to the Texas Bond Review Board account via the Comptroller of Public Accounts Automated Clearing House (ACH) Transfer Portal.(e) Fees must be received:(1) no earlier than 5 business days prior to the corresponding filing; and(2) no later than 1 business day after the corresponding filing, but in no case may a fee be received after the corresponding filing deadline in order to meet the requirements of that deadline unless provided for in Chapter 1372, Government Code.",
            "sourceNote": "Source Note: The provisions of this §190.8 adopted to be effective January 3, 1992, 16 TexReg 7646; amended to be effective January 11, 1993, 18 TexReg 65; amended to be effective February 10, 1994, 19 TexReg 634; amended to be effective December 21, 1995, 20 TexReg 10389; amended to be effective October 8, 1997, 22 TexReg 9895; amended to be effective September 26, 2002, 27 TexReg 8957; amended to be effective October 13, 2021, 46 TexReg 6948; amended to be effective August 22, 2022, 47 TexReg 5000; amended to be effective October 11, 2023, 48 TexReg 5825."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=3952&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "3952",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "10",
                "label": "TEXAS PUBLIC FINANCE AUTHORITY"
            },
            "chapter": {
                "number": "221",
                "label": "DISTRIBUTION OF BOND PROCEEDS"
            },
            "rule": {
                "number": "§221.1",
                "label": "Purpose of the Rules"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161608&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "161608",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following sections set forth the policies and procedures which will be used by the Texas Public Finance Authority relating to the issuance of bonds and disbursement of bond proceeds.",
            "sourceNote": "Source Note: The provisions of this §221.1 adopted to be effective November 25, 1988, 13 TexReg 5749."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161608&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "161608",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "10",
                "label": "TEXAS PUBLIC FINANCE AUTHORITY"
            },
            "chapter": {
                "number": "221",
                "label": "DISTRIBUTION OF BOND PROCEEDS"
            },
            "rule": {
                "number": "§221.2",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161609&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "161609",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Act--The Texas Public Finance Authority Act, Texas Government Code, Chapter 1232.(2) Authority--The Texas Public Finance Authority, together with any successor to its duties and functions.(3) Board--The board of directors of the authority, the governing body of the authority.(4) Bond Review Board--The Bond Review Board as created by the Texas Legislature pursuant to Texas Government Code, Chapter 1231, or any successor to its duties and functions.(5) Bonds--Public securities issued by the authority pursuant to a constitutional provision and the Act, the Act, or other legislation, including bonds, notes and commercial paper.(6) Capitalized interest--That portion of the proceeds of bonds which represents interest to be capitalized and payable prior to completion of acquisition, construction, or renovation of the projects being financed with such bonds.(7) Client Agency--A state agency or institution of higher education, or other entity on whose behalf the board may issue bonds.(8) Code--The Internal Revenue Code of 1986.(9) Commercial paper notes--Variable rate public securities that mature in not more than 270 days and issued by the authority pursuant to a constitutional provision and the Act, the Act, or other legislation.(10) Comptroller--The Comptroller of Public Accounts of the State of Texas, or any successor thereto.(11) Constitutional provision--A provision of the Texas Constitution that authorizes the issuance of general obligation bonds by the authority; namely: Article III, §49-h; Article III, §49(e); Article III, §49(i); Article III, §49-l; Article III, §49-n; Article III, §50-f; Article III, §50-g; or Article III, §67.(12) Construction schedule--The time period and sequence of action during which the actual construction of a project or projects is planned to be accomplished.(13) Costs of issuance--The costs related to the issuance of any issue of bonds, including, but not limited to:(A) financing charges, including insuring principal and interest payment on the bonds or obtaining other credit enhancement for the bonds;(B) professional fees and expenses, including architectural, engineering, surveying, and legal services;(C) administrative expenses of the authority to the extent provided by law;(D) the authority's or the paying agent/registrar's charges and expenses;(E) rating agency fees;(F) bond printing expenses; and(G) such other expenses as may be necessary or incident to issuing and marketing of the bonds.(14) Debt service fund--Generally, the fund created in financing documents to contain money for the payment of debt service on the bonds.(15) Disbursement--The transfer of bond proceeds within a project fund from the authority's control to the client agency's control.(16) Expenditure schedule--The schedule controlling the frequency and amounts of expenditures from bond proceeds and used for payment of duly authorized expenses relating to a project.(17) Executive director--The executive director, or other authorized agent of the authority empowered by the board to perform the duties of the executive director.(18) Financing documents--Those documents approved by the board relating to the issuance of bonds, including, but not limited to, bond resolutions, financing agreements, funds management agreements, lease agreements, and official statements.(19) General appropriations act--Any legislative act appropriating money for the operation of state government.(20) General obligation bond--A bond issued on behalf of the State of Texas, the repayment of which is guaranteed by the full faith and credit of the State of Texas and which has been authorized by the Texas Constitution.(21) Legislature--The Legislature of the State of Texas.(22) Memorandum of understanding--The document executed by the authority and a client agency that defines the division of authority and responsibility between the authority and a client agency.(23) Plans and specifications--The plans and specifications for each respective project, as the same may be amended from time to time.(24) Project--The construction, renovation, acquisition, or equipping a building, structure, or other facility, and the component parts thereof, or program authorized by the legislature for financing by a debt issuance.(25) Project Summary--A general description of the project that will be paid for with proceeds of bonds or commercial paper notes including, but not limited to:(A) a complete description of the facility or project together with a justification of such facility or project prepared by the client agency;(B) a description of the proposed facility prepared by an architect/engineer and including schematic plans and outline specifications describing the type of construction and probable materials to be used, sufficient to establish the general scope and quality of construction;(C) an estimate of the probable cost of construction;(D) a description of the proposed site of the project and an estimate of the cost of site preparation;(E) an overall estimate of the cost of the project;(F) a description of the program to be financed, including costs and a schedule of expenditures; and(G) other information as required by the authority.(26) Project costs--To the extent authorized by law or regulation, all costs incurred by the authority, or any client agency requesting financing of a project with respect to the acquisition, construction, or equipment of new facilities, for major repair or renovation of existing facilities, or other qualified project expenditure including, but not limited to, the costs of:(A) the acquisition of all land, rights-of-way, property rights, easements, and interests;(B) all furnishings, machinery, and equipment;(C) necessary contingency funds;(D) architectural, engineering, and legal services;(E) plans, specifications, surveys, and estimates of cost and revenue, including a master plan;(F) contracts necessary or incident to determining the feasibility and practicability of a project;(G) administrative expenses of the authority which are necessary and related to a project to the extent provided by law; and(H) such other contracts as may be necessary or incident to the carrying out or start-up of any project, including the refunding or refinancing of any outstanding obligations, mortgages, or advances issued, made, or given by any person for any of the aforementioned costs; or(I) costs anticipated to be necessary to fund a program.(27) Project fund--The fund created in financing documents for the payment of project costs.(28) Regulations--The Income Tax Regulations promulgated pursuant to the Code.(29) Revenue bond--A bond issued by the authority, the repayment of which depends on:(A) the pledge of all or any part of the designated rents, issues, and profits from leasing the project to the State of Texas through the client agency; or(B) from any other source of funds lawfully available to the authority.(30) TDCJ--The Texas Department of Criminal Justice, together with any successor to its duties and functions.",
            "sourceNote": "Source Note: The provisions of this §221.2 adopted to be effective November 25, 1988, 13 TexReg 5749; amended to be effective December 15, 1998, 23 TexReg 12686; amended to be effective January 31, 2005, 30 TexReg 404; amended to be effective July 14, 2009, 34 TexReg 4641; amended to be effective April 25, 2013, 38 TexReg 2509."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161609&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "161609",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "10",
                "label": "TEXAS PUBLIC FINANCE AUTHORITY"
            },
            "chapter": {
                "number": "221",
                "label": "DISTRIBUTION OF BOND PROCEEDS"
            },
            "rule": {
                "number": "§221.3",
                "label": "Bond Issuance Process"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161610&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "161610",
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            "ruleBody": "(a) Preliminary Requirements. Following a legislative session in which bonds have been authorized for a project, the authority and the client agency will confirm basic information concerning the bond issue, such as the time, amount, and scope of the project, and schedule an orientation meeting at their mutual convenience. In most cases, a formal orientation meeting will be required and such a meeting should occur before the authority must begin work on the bond issue, but after the client agency has had sufficient time to prepare a preliminary plan for the project.(1) As part of the orientation, the authority will provide the client agency the following information:(A) an explanation of the bond issuance process in plain language;(B) a review of the specific tasks required for a bond issue and the time needed for such tasks;(C) a review of the documents, other information, if any, and time requirements applicable to the client agency's request for financing; and(D) an identification of the authority's staff and outside consultants who will work on the financing, by name and function.(2) The client agency should be prepared to review a detailed project description and project schedule during the orientation meeting and identify the client agency's staff who will work with the authority on the bond issue.(3) If a client agency's staff is familiar with the bond issuance process and the authority's requirements for issuing bonds because they have participated in prior bond issuance transactions, a formal orientation meeting is not required. The executive director will insure that up-to-date information described in paragraph (1)(A) - (D) of this subsection is provided to the client agency in an alternative manner such as by schedules, memorandum, or telephone conference.(b) Request for financing. A request for financing under this section shall include:(1) a resolution of the client agency's governing body signed by the appropriate officer authorizing submission of the request for financing and evidence of approval by any other individual or body from which approval for debt issuance is required;(2) a project summary, required by the authority for application to the Bond Review Board; and(3) an expenditure schedule.(c) Amendment to request for financing. A client agency may reschedule the date requested for authority consideration of the bond issuance or amend its request by submitting an amendment to its request for financing at any time prior to the authority board meeting at which the issue will be considered.(d) Board action. The request for financing will be posted for consideration by the board at the next open meeting following the authority's receipt of the request, for which timely public notice may be given pursuant to Texas Government Code, Chapter 551. The client agency will be informed promptly of a change in the board's meeting date for the month and the exact date on which the request will be considered.(1) The board may either approve the request or require additional information. When it approves a request for financing, the board will also determine the type of public security to be issued and the method of sale whether negotiated, competitive, or through private placement.(2) The board's approval of a request for financing is deemed to constitute approval of the submission of an application to the Bond Review Board for approval of the issuance of debt and instruction to staff to proceed with submission of the application.(3) If the board determines to sell bonds through a negotiated sale, it will designate an underwriting syndicate in accordance with authority's underwriter selection procedures.(4) If the board determines to sell bonds through a competitive sale, it will authorize the executive director and financial advisor to prepare an invitation for competitive bids in the time and manner required so that the board may approve the distribution of the invitation and the Preliminary Official Statement at its open meeting in the month immediately following.(5) If the board determines to finance a request through the issuance of commercial paper notes, staff shall proceed to complete such issuances.(e) At least one representative of a client agency must attend any board meeting, including meetings of the Bond Review Board, at which the client agency's financing request is considered, unless otherwise advised by the executive director or the executive director's designee.(f) Procedures following board approval of a request for financing through the issuance of bonds. As soon as possible following the board's approval of a request for financing, the authority staff, financial advisors, bond counsel, representatives of the client agency, and, for negotiated sales, the senior manager of the underwriting syndicate and its counsel, will convene an organization meeting to prepare a schedule of events for the financing, and begin work on the financing documents and an application for Bond Review Board approval of the financing.(1) In most cases, the application for Bond Review Board approval will be submitted timely for consideration and approval of the Bond Review Board at its next regularly scheduled meeting following the board's approval of the request, however, the timing of the submission is within the discretion of the executive director.(2) After the Bond Review Board approves the financing, the issuance and sale of the bonds may be scheduled and completed.",
            "sourceNote": "Source Note: The provisions of this §221.3 adopted to be effective November 25, 1988, 13 TexReg 5749; amended to be effective December 15, 1998, 23 TexReg 12686; amended to be effective January 31, 2005, 30 TexReg 404; amended to be effective July 14, 2009, 34 TexReg 4641; amended to be effective April 25, 2013, 38 TexReg 2509."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161610&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "161610",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "10",
                "label": "TEXAS PUBLIC FINANCE AUTHORITY"
            },
            "chapter": {
                "number": "221",
                "label": "DISTRIBUTION OF BOND PROCEEDS"
            },
            "rule": {
                "number": "§221.4",
                "label": "Criteria for Issuance of Public Securities"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=141277&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "141277",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The authority shall not issue a public security to finance any project or cost related thereto, unless:(1) the project has been specifically authorized by the Act, the General Appropriations Act, or other applicable law;(2) the board has approved the request for financing and has determined to proceed with the issuance of public securities;(3) the governing body of the client agency requesting such financing has authorized the execution of a memorandum of understanding between the client agency and the authority relating to the specific public securities program and has agreed to necessary financing documents as may be appropriate and consistent with these sections;(4) the public securities issuance and the projects have been reviewed and approved by the Bond Review Board or any other agency required to review such bond proceedings or approve projects as authorized by law;(5) the governing body of the client agency has by resolution authorized the execution and performance of the financing documents; and(6) the board has approved the related financing documents.(b) In the event proceeds are to be used to finance a project of the TDCJ, the TDCJ must have submitted to the Bond Review Board a master plan for correctional facilities prior to disbursement of bond proceeds.(c) The authority assumes no responsibility in connection with the eligibility of any specific project for financing nor with respect to the need for such project or that any project will comply with any legal requirement, except to review legislation authorizing the project, the approval process with respect to the project, including Bond Review Board approvals, and to provide a proper description of the project in bond offering documents, if required.(d) The authority may request the assistance of the client agency in complying with information requests from the Bond Review Board, rating agencies, the attorney general, financial advisor, bond counsel, or other requests required for issuance of the bonds.",
            "sourceNote": "Source Note: The provisions of this §221.4 adopted to be effective November 25, 1988, 13 TexReg 5749; amended to be effective December 15, 1998, 23 TexReg 12686; amended to be effective July 14, 2009, 34 TexReg 4641; amended to be effective April 25, 2013, 38 TexReg 2509."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=141277&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "141277",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "10",
                "label": "TEXAS PUBLIC FINANCE AUTHORITY"
            },
            "chapter": {
                "number": "221",
                "label": "DISTRIBUTION OF BOND PROCEEDS"
            },
            "rule": {
                "number": "§221.5",
                "label": "Procedure for Disbursement of Bond Proceeds"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=141278&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "141278",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Unless otherwise indicated herein, proceeds of bonds shall be distributed pursuant to the terms of the financing documents.(b) Upon the closing of each series of bonds, the purchasers thereof shall pay the proceeds thereof in immediately available funds to the authority, a corporate trustee, or depository account designated by the client agency and specified in the financing documents.(c) The executive director shall certify to the client agency requesting such financing that the funds are available and, if bond proceeds must be deposited to the Texas state treasury, to the comptroller that such funds have been deposited with the comptroller for the purpose of financing the related project.(d) The authority will process vouchers for payment of costs of issuance. The client agency will process vouchers for payment of project costs.(e) The client agency requesting financing from the authority shall pay project costs from the project fund in accordance with the contracts therefore and shall provide a written monthly report to the authority of the activity on each project in compliance with the reporting provisions of the financing documents. The authority will not assume any responsibility for the actual acquisition, construction, equipment, repair, or renovation of any project or the operation or maintenance thereof, but the authority may inspect projects at reasonable times upon reasonable notice to the client agency.(f) No payments from the project fund may be made for any purpose other than paying costs of issuance and project costs, depositing amounts to any rebate fund for the benefit of the federal government in compliance with the Code, or deposit to the debt service fund of amounts remaining after payment of project costs.(g) If any proceeds of the bonds remain in the project fund after the completion of a project and depositing amounts to any rebate fund for the benefit of the federal government in compliance with the Code, except the amounts specified by the client agency requesting such financing from the authority to be retained for any amount of any project costs not then due and payable or the liability for payment of which is being contested or disputed by the qualified agency and all labor, services, materials, and supplies used in the project have been fully paid and all costs and expenses incurred in connection therewith have been paid, then the client agency requesting such financing from the authority shall notify the authority that such proceeds are to be transferred from the project fund to the debt service fund; provided, however, that if the legislature has authorized additional projects of the same nature as the project theretofore financed during such time period, the board may, by formal resolution and if permitted by law, authorize the use of such amounts for such additional projects.(h) If the bonds are intended by the board to bear interest which is not includable in gross income of the recipient pursuant to the Code, the use of proceeds of the bonds shall be restricted in such manner and to such extent, as may be necessary, to obtain and retain such tax exemption, in accordance with the Code and Regulations.(i) The plans and specifications will be on file at the client agency and available at all times for inspection by the authority.",
            "sourceNote": "Source Note: The provisions of this §221.5 adopted to be effective November 25, 1988, 13 TexReg 5749; amended to be effective December 15, 1998, 23 TexReg 12686; amended to be effective July 14, 2009, 34 TexReg 4641."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=141278&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "141278",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "10",
                "label": "TEXAS PUBLIC FINANCE AUTHORITY"
            },
            "chapter": {
                "number": "221",
                "label": "DISTRIBUTION OF BOND PROCEEDS"
            },
            "rule": {
                "number": "§221.6",
                "label": "Complaints to the Authority"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=141265&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "141265",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "In accordance with the requirements of §1232.113(e) of the Act, the authority will notify client agencies of the name, mailing address, and telephone number of the authority for the purpose of directing complaints to the authority by posting such information on the authority's website, by direct mail, and by distributing a fact sheet on the authority during the orientation meeting described in §221.3 of this title (relating to the Bond Issuance Process) of this Chapter 221.",
            "sourceNote": "Source Note: The provisions of this §221.6 adopted to be effective December 15, 1998, 23 TexReg 12686; amended to be effective January 31, 2005, 30 TexReg 404; amended to be effective July 14, 2009, 34 TexReg 4641."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=141265&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "141265",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "10",
                "label": "TEXAS PUBLIC FINANCE AUTHORITY"
            },
            "chapter": {
                "number": "223",
                "label": "HISTORICALLY UNDERUTILIZED BUSINESS PROGRAM"
            },
            "rule": {
                "number": "§223.1",
                "label": "Historically Underutilized Businesses"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161611&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "161611",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The authority adopts by reference the rules promulgated by the Comptroller of Public Accounts concerning Historically Underutilized Businesses, which are found in 34 Texas Administrative Code, Chapter 20, Subchapter B. A copy of the rules may be obtained by request to the Authority, attention, Executive Director, 300 W. 15th Street, Austin, Texas 78701, or by accessing the rules at: http://www.sos.state.tx.us/.",
            "sourceNote": "Source Note: The provisions of this §223.1 adopted to be effective September 7, 2006, 31 TexReg 7135; amended to be effective July 14, 2009, 34 TexReg 4641."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161611&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "161611",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "10",
                "label": "TEXAS PUBLIC FINANCE AUTHORITY"
            },
            "chapter": {
                "number": "225",
                "label": "MASTER LEASE PURCHASE PROGRAM"
            },
            "rule": {
                "number": "§225.1",
                "label": "Purpose of the Rules"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161612&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "161612",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "This chapter concerns the administration of the Master Lease Purchase Program authorized by Texas Government Code, §1232.103. This chapter defines certain terms pertaining to the operation of the Master Lease Purchase Program, identifies the responsibilities of various parties in administering the Master Lease Purchase Program, and establishes basic procedures under which state agencies may participate in the Master Lease Purchase Program.",
            "sourceNote": "Source Note: The provisions of this §225.1 adopted to be effective April 14, 1993, 18 TexReg 2143; amended to be effective December 15, 1998, 23 TexReg 12687; amended to be effective January 31, 2005, 30 TexReg 405; amended to be effective July 14, 2009, 34 TexReg 4642; amended to be effective April 25, 2013, 38 TexReg 2510."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=161612&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "161612",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "10",
                "label": "TEXAS PUBLIC FINANCE AUTHORITY"
            },
            "chapter": {
                "number": "225",
                "label": "MASTER LEASE PURCHASE PROGRAM"
            },
            "rule": {
                "number": "§225.3",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=141280&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "141280",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.(1) Act--The Texas Public Finance Authority Act, Texas Government Code, Chapter 1232, as amended.(2) Administrative costs--The reasonable costs incurred by the authority in developing, administering, and monitoring the program, which costs include, but are not limited to fees for the paying agent, the dealer, the servicing agent, and the authority's operational charges.(3) Amortization schedule--A detailed schedule of principal and interest payments and administrative costs due for each lease payment as required under the master lease agreement and contained in each lease supplement. The principal amount will include the purchase price of the eligible projects and the costs of issuance, if any, which will be separately itemized.(4) Authority--The Texas Public Finance Authority, or any successor to its duties and functions.(5) Authorized representative--That person(s) duly authorized by a client agency and the authority to execute and deliver a master lease agreement and lease supplement(s) and such other documents as are deemed necessary or appropriate to implement the program, and a client agency's participation therein.(6) Board--The board of directors of the authority.(7) Bond Review Board--The Bond Review Board as defined by the Texas Legislature pursuant to Texas Government Code, Chapter 1231, or any successor to its duties and functions.(8) Bundled purchases--Those purchases of multiple eligible projects individually valued at a minimum of $100 for and on behalf of a client agency, which are aggregated into one vendor contract for acquisition.(9) Client agency--Any Texas state agency or Texas institution of higher education that participates in the program.(10) Comptroller--The Comptroller of Public Accounts of the State of Texas, or any successor thereto.(11) Comptroller's interagency agreement--The agreement between the authority and the comptroller authorizing the authority to access each client agency's appropriated funds to pay debt service on the program by delivering payment vouchers to the comptroller drawn on the client agency's designated funds.(12) Costs of issuance--All costs associated with the program, including, but not limited to, printing costs, costs of preparation of documents, and fees to rating agencies, financial advisor, credit and liquidity providers, bond counsel, and underwriters.(13) Debit memo--The notice provided to each client agency within 30 days after each lease payment. The debit memo will include the name of the client agency, each lease supplement by identifying number, the eligible project, the total amount paid reflected as principal and interest payments, administrative costs, the payment date, credit, if any, and the remaining principal balance.(14) Eligible project--Any physical structure that has been authorized by the Texas legislature for the authority to finance and is used by a client agency to conduct official Texas state business, together with the land and major equipment or personal property that is functionally related to the physical structure, or any other fixed asset used by a client agency to conduct official Texas state business, or project, including, without limitation, telecommunications devices or systems, automated information systems, computers and computer software, and energy performance contracts, provided, that such property has a useful life of at least three years, and a value of at least $10,000, valued either individually or as a group of individual items of property, each having a minimum value of $100 per item.(15) Fees--The amount assessed each client agency for participating in the program. Fees include the costs of issuance, if any, and administrative costs.(16) Interim financing--The initial financing source by which an eligible project may be financed if it is deemed advisable by the authority. Interim financing will occur when the authority issues its Master Lease Purchase Program Tax-Exempt Commercial Paper Revenue Notes in various amounts, not to exceed $300 million outstanding at any one time, or such other amount authorized by resolution of the board.(17) LBB--The Legislative Budget Board of the State of Texas, or any successor to its duties and functions.(18) Lease payments--Those amounts specified in the lease supplements and made pursuant to the comptroller's intercept. The term \"lease payments\" also includes all payments and pre-payments, if any, made while the eligible project is in the interim financing.(19) Lease revenue bonds--The long-term bonds issued by the authority either to refinance an eligible project that has been initially financed through interim financing, or to fund the purchase of an eligible project.(20) Lease supplement--A form promulgated by the authority to be executed by each client agency which incorporates the terms of the master lease agreement and other agreements under the program. The lease supplement shall specifically identify the eligible project to be financed, including the serial number or other Texas state identification number, the exact amount to be paid, the payee, and any updates or corrections to the request for financing.(21) Master lease agreement--The contract executed by the authorized representative of a client agency and the authority, containing such terms and provisions necessary to authorize the client agency to participate in the program and the authority to make payments on behalf of the client agency for the purchase of an eligible project as specifically set forth in each lease supplement.(22) Program--The Texas Public Finance Authority Master Lease Purchase Program described in this chapter to be carried out by the authority for the purpose of financing or refinancing eligible projects.(23) Progress payments--Periodic payments for eligible projects to be made during installation of and prior to acceptance of such eligible project by the client agency that are set out in an agreement with the vendor. Such agreement must provide for specific payments corresponding to completion of definitive components sufficient to create identifiable collateral.(24) Request for financing--A request from a client agency to the authority to finance the acquisition of an eligible project through the program. Such request for financing shall include an itemized description of the eligible project prepared by the client agency including the estimated cost of acquisition, the estimated useful life of the project, the proposed date(s) of delivery and acceptance of the eligible project, the proposed use of the eligible project, and the source of funds to be used by the client agency to make the payments for the eligible project, and any one of the following documents:(A) a copy of the purchase order for the eligible project;(B) a copy of the contract prepared and awarded by the Texas Department of Information Resources for an eligible project; or(C) any awarded contract for an eligible project, or for bundled purchases, a copy of which is sent to and received by the authority and which may be generated by any client agency.(25) State agency--A Texas board, commission, department, office, agency, institution of higher education or other governmental entity in the executive, judicial, or legislative branch of Texas state government.(26) State lease fund account--The account by that name created by the Act.(27) Statement of acceptance--A statement contained in the lease supplement, executed by the client agency, which states that the eligible project has been received, inspected, and found to be in fully acceptable condition by the client agency, that all approvals, if any, have been obtained and that all other requirements of law have been satisfied and authorizing the authority to provide payment to the vendor.",
            "sourceNote": "Source Note: The provisions of this §225.3 adopted to be effective April 14, 1993, 18 TexReg 2143; amended to be effective December 15, 1998, 23 TexReg 12687; amended to be effective January 31, 2005, 30 TexReg 405; amended to be effective July 14, 2009, 34 TexReg 4642; amended to be effective April 25, 2013, 38 TexReg 2510."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=141280&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "141280",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "10",
                "label": "TEXAS PUBLIC FINANCE AUTHORITY"
            },
            "chapter": {
                "number": "225",
                "label": "MASTER LEASE PURCHASE PROGRAM"
            },
            "rule": {
                "number": "§225.5",
                "label": "Procedures for Financing Eligible Projects"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=160909&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "160909",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A client agency shall submit a request for financing when it is prepared to proceed with a program financing. A resolution of the client agency's governing body which authorizes the request for financing and the execution of documents required under the program shall be submitted with the request. Upon receipt of a request for financing the authority will review such request for completeness and compliance with program rules. If the request for financing is found to be complete and in compliance, the authority will accept the request for financing.(b) Upon acceptance of the request for financing, if the client agency has not previously participated in the program, the authority will forward to the client agency a copy of the master lease agreement to be executed by an authorized representative. The master lease agreement is not subject to revision by the client agency and, when executed by the client agency's authorized representative and the authority, will serve as the basis for all future purchases of eligible projects under the program.(c) After acceptance of the request for financing by the authority and execution of the master lease agreement, the client agency will proceed to procure the eligible project in compliance with all applicable laws and rules governing such procurement, including obtaining the approval, if any is required, of the Bond Review Board, the Department of Information Resources, the Comptroller of Public Accounts, or other Texas state agency.(d) After the client agency has taken delivery and acceptance of the eligible project and determined that it meets all requirements for payment in full to the vendor, and the vendor's invoice complies with the terms and conditions of the contract, the client agency will prepare the lease supplement together with all documents required by the comptroller, sign the lease supplement, and forward it to the authority, along with all other documents required or requested by the authority. The authority will sign the lease supplement and provide a copy to the client agency.(e) The authority will make a determination to initially fund the eligible project through the interim financing or through the issuance of lease revenue bonds. Such determination will be within the sole discretion of the authority.(f) The authority will effect the payment in full to the vendor, or partial payment if the eligible project has been designated for progress payments.(g) Upon receipt of the lease payment, the authority and the comptroller will effect the comptroller's intercept to provide for the lease payments.(h) At least 48 hours prior to a lease payment, the authority will submit a voucher directing the comptroller to transfer sufficient monies from each client agency into the Texas state lease fund account and the authority will provide a voucher to the comptroller to effect debt service payment. The monies will then be transferred out of the Texas state lease fund account and lease payments will be made.(i) Within 30 days following each lease payment, the authority will provide a debit memo to each client agency.(j) Upon the occurrence of any of the following events listed in paragraphs (1) and (2) of this subsection, the authority may issue lease revenue bonds in order to refinance the lease supplements initially funded through the interim financing. The final maturity of lease revenue bonds shall not exceed the latest maturity of any lease supplement being financed. Revenue bonds may be issued:(1) on any date the aggregate volume of lease supplements then being financed through the interim financing reaches $150 million; or(2) 30 days prior to the end of any Texas state biennial appropriation period which is currently August 31 of odd-numbered years.(k) The authority may adjust the lease payments under a lease supplement as a result of a change in interest rates, or a refinancing, or a change in administrative costs. When such adjustment in lease payments is effected, the authority will, concurrent with establishing the new interest rate, provide an amended amortization schedule reflecting the adjusted lease payments to the comptroller and to each client agency.(l) At least once during each Texas state fiscal year, the authority will forward to the Legislative Budget Board (LBB) a schedule, by client agency, of all lease payments. The authority will use its best efforts to ensure that the staff of the LBB will include in its budget recommendation sufficient appropriations to make all lease payments required under the program.(m) All books and records of the authority will be available to the LBB, the comptroller, the Texas state auditor's office, client agencies, and other interested parties which may, from time to time, request access to information regarding the program.(n) All issuances of lease revenue bonds under the program will comply with all approvals required for the public issuance of debt by a Texas state agency, including review and approval by the Bond Review Board and the Texas attorney general.",
            "sourceNote": "Source Note: The provisions of this §225.5 adopted to be effective April 14, 1993, 18 TexReg 2143; amended to be effective December 15, 1998, 23 TexReg 12687; amended to be effective January 31, 2005, 30 TexReg 405; amended to be effective July 14, 2009, 34 TexReg 4642."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=160909&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "160909",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "10",
                "label": "TEXAS PUBLIC FINANCE AUTHORITY"
            },
            "chapter": {
                "number": "225",
                "label": "MASTER LEASE PURCHASE PROGRAM"
            },
            "rule": {
                "number": "§225.7",
                "label": "Recovery of Costs"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=152380&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "152380",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The authority may recover its administrative costs by assessing each client agency on a pro rata basis for reimbursement of administrative costs. This pro rata reimbursement shall be calculated no more frequently than semi-annually to cover the ongoing costs of the program. The exact amount assessed each client agency shall be separately disclosed on the debit memo to be submitted to each client agency at least one month in advance of collection. In no event shall administrative costs assessed each client agency exceed 1 1/2% per annum of their pro rata participation in the program.(b) The costs of issuance shall be calculated on a pro rata basis for each client agency and included as an addition to principal along with the purchase price of the eligible project, if necessary.",
            "sourceNote": "Source Note: The provisions of this §225.7 adopted to be effective April 14, 1993, 18 TexReg 2143; amended to be effective January 31, 2005, 30 TexReg 405; amended to be effective February 28, 2013, 38 TexReg 1219."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=152380&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "152380",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "10",
                "label": "TEXAS PUBLIC FINANCE AUTHORITY"
            },
            "chapter": {
                "number": "227",
                "label": "ADMINISTRATION"
            },
            "rule": {
                "number": "§227.1",
                "label": "Authority's Policy on the Use of Alternative Dispute Resolution Measures"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=152378&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "152378",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) It is the Authority's policy to encourage the use of alternative dispute resolution (ADR) procedures to resolve disputes internally and externally when it best serves the public interest as determined by the Executive Director after consultation with the Authority's Dispute Resolution Coordinator. ADR procedures are intended to supplement and not limit other dispute resolution procedures available for use by the Authority. (b) The Authority adopts by reference the model guidelines for Alternative Dispute Resolution Procedures developed by the State Office of Administrative Hearings (Model Guidelines). The Model Guidelines are located at the State Office of Administrative Hearings internet website: http://www.soah.state.tx.us/about-us/mediations/model_guidelines.asp    (c) The General Counsel is designated the Authority's Dispute Resolution Coordinator to provide training, to coordinate the implementation of the policy, to serve as a resource for any training needed to implement alternative dispute resolution procedures, and to collect data concerning the effectiveness of the implemented procedures.",
            "sourceNote": "Source Note: The provisions of this §227.1 adopted to be effective August 31, 2011, 36 TexReg 5382."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=152378&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "152378",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "10",
                "label": "TEXAS PUBLIC FINANCE AUTHORITY"
            },
            "chapter": {
                "number": "227",
                "label": "ADMINISTRATION"
            },
            "rule": {
                "number": "§227.3",
                "label": "Use of Negotiated Rulemaking"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=152379&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "152379",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) It is the Authority's policy to encourage public participation in the rulemaking process whether rulemaking is undertaken pursuant to traditional rulemaking procedures under Government Code Chapter 2001 or negotiated rulemaking procedures under Government Code Chapter 2008.(b) In determining whether to use negotiated rulemaking in lieu of traditional rulemaking procedures, the Authority will consider:(1) whether a negotiated rulemaking:(A) is more likely to result in workable or reasonable rule; or(B) to offer opportunity for a creative solution to a problem; or(2) whether the rules to be drafted are likely:(A) to be complex, or controversial, or(B) to affect disparate groups.(c) If the Authority determines that negotiated rulemaking is appropriate, the Authority may elect to develop a draft rule either through an informal negotiated rulemaking process or through a formal negotiated rulemaking process.(d) The Authority may consider engaging in formal negotiated rulemaking when it is likely that a negotiated rulemaking committee will reach a consensus on a draft rule in a timely manner. The Authority will also consider the factors specified in Government Code Chapter 2008 when deciding whether to pursue formal negotiated rulemaking.(e) If the Authority determines that formal negotiated rulemaking is not feasible or appropriate, the Authority may engage in informal negotiated procedures or traditional rulemaking procedures, at its election.",
            "sourceNote": "Source Note: The provisions of this §227.3 adopted to be effective August 31, 2011, 36 TexReg 5382."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=152379&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "152379",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "10",
                "label": "TEXAS PUBLIC FINANCE AUTHORITY"
            },
            "chapter": {
                "number": "227",
                "label": "ADMINISTRATION"
            },
            "rule": {
                "number": "§227.5",
                "label": "Use of Alternative Dispute Resolution Procedures for Contract Claims"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=225312&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "225312",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The Authority adopts by reference the model guidelines for resolving disputes with contractors developed by the State Office of Administrative Hearings and the Office of the Attorney General (Model Guidelines for Contract Claims). The Model Guidelines for Contract Claims are located at the Office of Attorney General's internet website: https://www.oag.state.tx.us/notice/model_rules.pdf  (b) Upon receipt of notice of a contract claim under Government Code Chapter 2260, the Executive Director in consultation with the Authority's Dispute Resolution Coordinator shall determine whether use of an alternative dispute resolution (ADR) procedure is an appropriate method for resolving the dispute. (c) If use of an ADR procedure is determined to be an appropriate method for resolving a contract claim, the Executive Director shall recommend to the claimant that the parties use the Model Guidelines for Contract Claims to structure a negotiation or mediation process in a manner that is most appropriate for the particular dispute considering the contract's complexity, subject matter, dollar amount, or method and time of performance. (d) If the claimant is amenable to use of an ADR procedure to resolve the claimant's dispute with the Authority, the Authority's General Counsel and Dispute Resolution Coordinator, if not the General Counsel, will collaborate with the claimant to select an appropriate procedure for dispute resolution, and will implement the agreed upon procedure using the Model Guidelines for Contract Claims.",
            "sourceNote": "Source Note: The provisions of this §227.5 adopted to be effective August 31, 2011, 36 TexReg 5382."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=225312&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "225312",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "302",
                "label": "GENERAL PROVISIONS RELATING TO THE TEXAS  EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§302.1",
                "label": "Definitions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200051&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "200051",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Unless otherwise specifically provided in this part, the terms and phrases used in Chapters 302, 304, 306, 308 and 310 have the meanings assigned by Government Code, Chapters 861 - 865.(b) In Chapters 302, 304, 306, 308 and 310, \"Texas Local Fire Fighters Retirement Act\" means the Texas Local Fire Fighters Retirement Act (Article 6243e, Vernon's Texas Civil Statutes).(c) For purposes of this part and Government Code, Chapters 861-865, the term \"spouse\" means an individual to whom a member is legally married under Subtitle A, Title 1, Family Code or a comparable law of another jurisdiction (including a ceremonial marriage or an informal marriage), provided that in the case of an informal marriage in this state, the marriage must be evidenced by a declaration of informal marriage recorded in accordance with Subchapter E, Chapter 2, Family Code prior to the death of a member. With respect to an informal marriage established in this state, a spouse is considered married to a member as of the date a declaration of informal marriage was recorded in accordance with Subchapter E, Chapter 2, Family Code.",
            "sourceNote": "Source Note: The provisions of this §302.1 adopted to be\r\neffective October 2, 2005, 30 TexReg 6060; amended to be effective\r\nJune 30, 2025, 50 TexReg 3786."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200051&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "200051",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "302",
                "label": "GENERAL PROVISIONS RELATING TO THE TEXAS  EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§302.2",
                "label": "Benefit Distributions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197593&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197593",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In this section:(1) \"Code\" means the Internal Revenue Code of 1986, as amended.(2) \"§401(a)(9) requirements\" means the requirements under §401(a)(9) of the code and Treasury Regulations §1.401(a)(9)-1 through §1.401(a)(9)-9.(b) The annual benefit based on the service of a member may not exceed the amount permitted by the code and related regulations for the appropriate year, including, without limitation, §415(b) of the code. If the aggregated benefit otherwise payable under the pension system and any other defined benefit plan maintained by a political subdivision that has contributed to the fund on behalf of the member would otherwise exceed the benefits allowable under federal law, the reduction in benefits must first be applied to the extent possible from the other plan, and only after those reductions, from the fund.(c) A retirement annuity or benefits to a qualified beneficiary under the pension system may not begin after the deadlines provided under the code and related regulations, including, without limitation, the deadlines provided by subsection (d) of this section.(d) All distributions under the fund must at all times comply with and conform to the §401(a)(9) requirements, and any distribution required under the incidental death benefits requirements of §401(a) of the code will be treated as a distribution under the §401(a)(9) requirements. This subsection overrides any distribution options inconsistent with the §401(a)(9) requirements. The pension system shall develop procedures to ensure that distributions comply with the §401(a)(9) requirements, including the requirement that a member's entire interest under the pension system will be distributed, or begin to be distributed, to the member no later than April 1 of the year after the later of the year in which the member ceases performing qualified service for a participating department or with respect to a member who attains age 70-1/2 on or before December 31, 2019, the year in which the member attains age 70-1/2, or with respect to a member who attains age 70-1/2 after December 31, 2019, the year in which the member attains age 72.(e) If the annual compensation of a member is ever taken into account for any purpose of the fund, that annual compensation may not exceed the limit in effect under §401(a)(17) of the code, as periodically adjusted in accordance with guidelines provided by the United States Secretary of the Treasury.",
            "sourceNote": "Source Note: The provisions of this §302.2 adopted to be effective October 2, 2005, 30 TexReg 6060; amended to be effective July 21, 2009, 34 TexReg 4741; amended to be effective October 18, 2015, 40 TexReg 7099; amended to be effective December 31, 2019, 44 TexReg 8332; amended to be effective July 5, 2020, 45 TexReg 4527."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197593&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197593",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "302",
                "label": "GENERAL PROVISIONS RELATING TO THE TEXAS  EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§302.3",
                "label": "Trustee-to-Trustee Transfer"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197594&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197594",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The distributee of a rollover distribution may elect, in a manner provided by the pension system, to have the distribution paid directly to an eligible retirement plan specified by the distributee in the form of a direct trustee-to-trustee transfer. The pension system shall develop procedures to implement this section in accordance with the Internal Revenue Code of 1986, as amended, and related regulations.",
            "sourceNote": "Source Note: The provisions of this §302.3 adopted to be effective October 2, 2005, 30 TexReg 6060; amended to be effective December 31, 2019, 44 TexReg 8332."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197594&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197594",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "302",
                "label": "GENERAL PROVISIONS RELATING TO THE TEXAS  EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§302.4",
                "label": "Reduction or Revocation of Benefits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197590&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197590",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A person entitled to benefits from the pension system may, in a manner determined by the pension system, reduce the amount of the benefits or revoke the right to the benefits. A decision under this section is irrevocable and binding on the person's spouse and dependents, if applicable. If the person reducing or revoking benefits is married, the person's spouse must consent to such reduction or revocation in writing in a manner determined by the pension system.(b) A reduction or revocation under this section applies to all payments that become or would have become due after the date of the reduction or revocation. Amounts waived under this section are forfeited to the pension system.(c) A subsequent cost-of-living adjustment granted under the pension system, a benefit increase granted by a governing body of a participating department, or a benefit increase or adjustment for persons entitled to benefits under the Texas Local Fire Fighters Retirement Act that are being administered by the pension system will not be applied to persons who have reduced or revoked their benefits under this section.",
            "sourceNote": "Source Note: The provisions of this §302.4 adopted to be effective October 2, 2005, 30 TexReg 6060; amended to be effective October 18, 2015, 40 TexReg 7099; amended to be effective December 31, 2019, 44 TexReg 8332."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197590&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197590",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "302",
                "label": "GENERAL PROVISIONS RELATING TO THE TEXAS  EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§302.5",
                "label": "Corrections of Errors and Contributions Past Due"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187144&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "187144",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The participating department head shall correct an error in enrollment in membership or computation of qualified service as soon as administratively practicable after the participating department head discovers the error or the local board notifies the participating department head of an error. Using a form provided by the pension system, the request for correction of error shall be certified by the local board chair and provided to the Executive Director in the manner prescribed by the pension system.(b) The Executive Director shall review the request for correction of error and may require the participating department head to provide additional documentation with respect to the correction of error. The Executive Director may reject any proposed correction if such additional documentation does not support the proposed correction of error or if such additional documentation is not provided. The Executive Director shall notify the participating department head and the local board chair if the proposed correction of error is approved or is denied due to lack of documentation provided by the participating department head or for any other reason.(c) The Executive Director shall determine the applicable past due contributions required by the correction of error, if any, including applicable interest charges in accordance with §863.005 of the Texas Government Code.(d) In accordance with §865.014(a), Texas Government Code, the governing body of the political subdivision associated with the participating department that is requesting the correction is liable for payment of past due contributions and interest charges, if any, and such payments shall be made in accordance with instructions provided by the pension system.",
            "sourceNote": "Source Note: The provisions of this §302.5 adopted to be effective October 2, 2005, 30 TexReg 6060; amended to be effective February 1, 2009, 34 TexReg 440; amended to be effective August 31, 2014, 39 TexReg 6867; amended to be effective October 18, 2015, 40 TexReg 7099; amended to be effective December 31, 2017, 42 TexReg 7723; amended to be effective December 31, 2019, 44 TexReg 8332."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=187144&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "187144",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "302",
                "label": "GENERAL PROVISIONS RELATING TO THE TEXAS  EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§302.8",
                "label": "Qualified Service"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197592&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197592",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The local board shall be responsible for the policy for its participating department relating to the requirements for percentage of attendance of emergencies defined under 861.001(10)(B)(i), Texas Government Code, or the percentage of providing support services for emergencies defined under §861.001(10)(B)(ii), Texas Government Code, in connection with the determination of whether a person is performing or has performed qualified service for purposes of the pension system.",
            "sourceNote": "Source Note: The provisions of this §302.8 adopted to be effective October 18, 2015, 40 TexReg 7100; amended to be effective December 31, 2017, 42 TexReg 7724."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197592&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197592",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "302",
                "label": "GENERAL PROVISIONS RELATING TO THE TEXAS  EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§302.9",
                "label": "Certification of Physical Fitness"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=174062&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "174062",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "A member who experiences a break-in-service of more than six months from all participating departments must again satisfy the requirements of §862.003(a), Texas Government Code (Certification of Physical Fitness), to receive credit for qualified service under the pension system.",
            "sourceNote": "Source Note: The provisions of this §302.9 adopted to be effective October 18, 2015, 40 TexReg 7100; amended to be effective December 31, 2019, 44 TexReg 8332."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=174062&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "174062",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "302",
                "label": "GENERAL PROVISIONS RELATING TO THE TEXAS  EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§302.10",
                "label": "Nonforfeitable Benefits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=174063&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "174063",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The retirement benefit earned by a member shall be nonforfeitable upon attaining normal retirement age. In addition, the retirement benefit earned by a member shall become nonforfeitable to the extent funded (if not already nonforfeitable), upon the termination of the pension system.",
            "sourceNote": "Source Note: The provisions of this §302.10 adopted to be effective October 18, 2015, 40 TexReg 7100."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=174063&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "174063",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "302",
                "label": "GENERAL PROVISIONS RELATING TO THE TEXAS  EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§302.11",
                "label": "Procedures for Plan Qualification"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197595&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197595",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The state board may adopt any procedures that it deems necessary in order to ensure that the pension system satisfies the requirements for a qualified retirement plan under the code.",
            "sourceNote": "Source Note: The provisions of this §302.11 adopted to be effective October 18, 2015, 40 TexReg 7100."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197595&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197595",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "304",
                "label": "MEMBERSHIP IN THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§304.1",
                "label": "Participation by Department"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200183&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "200183",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The governing body of a department may, in the manner provided for taking official action by the body, elect to participate in the pension system. The governing body of a department shall notify the Executive Director in writing as soon as practicable of an election made under this section. An election made under this section is irrevocable except as provided by §862.001, Texas Government Code, and any rules adopted by the state board thereunder. Effective September 1, 2015, a department must have at least seven individuals who would be eligible to be a member in the pension system in order to make the election to participate provided under this section.(b) The effective date of a department's participation in the pension system must be the first day of a month that follows the election of the governing body of the department to participate in the pension system.(c) The governing body of a department that makes an election under subsection (a) of this section, or the governing body of the political subdivision associated with such department may purchase prior service credit under §306.1 of this title (relating to Participation by Department) under the terms of that section for service performed before the effective date of participation in the pension system, but neither the pension system nor the governing body of the participating department or the political subdivision is liable for the payment of benefits because of any disability or death that occurred before that date.",
            "sourceNote": "Source Note: The provisions of this §304.1 adopted to be effective October 2, 2005, 30 TexReg 6061; amended to be effective August 31, 2014, 39 TexReg 6867; amended to be effective October 18, 2015, 40 TexReg 7101; amended to be effective December 31, 2019, 44 TexReg 8332."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200183&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "200183",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "304",
                "label": "MEMBERSHIP IN THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§304.2",
                "label": "Departmental Revocation of Participation in the Pension System"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200184&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "200184",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) For purposes of this section and §304.3 of this title (relating to Determination of Accrued Benefit):(1) \"Effective date of revocation\" means the later of the date upon which the requirements listed in subsection (c) of this section are satisfied or the date upon which the revocation occurs.(2) \"Revocation\" means the occurrence of one of the events listed in subsection (b) of this section.(b) A participating department will revoke, or be deemed to have revoked, its election to participate in the pension system as provided under §862.001(b), Texas Government Code, upon the occurrence of one of the following events:(1) a department notifies the pension system of its intent to no longer participate in the pension system;(2) a department ceases to exist or ceases to perform emergency services;(3) a department ceases to enroll its eligible members in the pension system or to make contributions to the pension system for eligible members as required under Chapter 865, Texas Government Code;(4) the political subdivision associated with the department establishes a paid department and no longer funds or otherwise maintains the department; or(5) all members of a department become ineligible to continue participating in the pension system as paid employees pursuant to §304.4(c) of this title (relating to Employees of Participating Departments) or because they are covered by another public retirement system in the state.(c) In connection with a revocation:(1) the governing body of the department must provide written notice of its intent to no longer participate in the pension system or the circumstances causing the revocation to occur to the executive director, the governing body of the political subdivision associated with the department, and all current members of the department at least 120 days prior to the date the revocation will occur or, if such prior notice is not possible, as soon as practicable, provided that the notice period may be shortened or waived by the executive director in his or her sole discretion;(2) the local board of the department must certify:(A) that all individuals who have performed emergency services or support services (if applicable) for the department and were eligible to participate in the pension system during the 2 years prior to the date the revocation occurs have been properly enrolled in the pension system; and(B) the accuracy of the department's membership roster and the total amount of qualified service earned by each current and former member as of the date the revocation occurs;(3) all affected members of the department as defined in §304.3(a) of this title will become fully vested in such affected member's accrued benefit as determined under §304.3 of this title as of the date the revocation occurs, regardless of the years of qualified service or age of such affected member as of such date, and the affected member's accrued benefit shall be nonforfeitable as of such date; and(4) no later than 60 days after receipt of the notice required under subsection (c)(1) of this section or notice from the executive director under subsection (d) of this section, the governing body of the political subdivision associated with the department must pay, or enter into an agreement to pay in accordance with subsection (j) of this section:(A) all required contributions for each month of service performed by members prior to the date the revocation occurs that have not been paid, including, without limitation, contributions for any months of service which have not yet been invoiced by the pension system and for members of the department who were not enrolled in the pension system but should have been during the 2 years prior to the date the revocation occurs; and(B) the revocation charge as determined under subsection (h) of this section in order to maintain an actuarially sound pension system as required by §862.001(b), Texas Government Code.(d) If the executive director becomes aware that one of the events listed in subsection (a) of this section has occurred and the governing body of a participating department has not provided notice of such event to the pension system as required under subsection (c)(1) of this section, the executive director will send written notice to the governing body of the participating department and the governing body of the political subdivision associated with the department as soon as administratively possible to inform them that a revocation of the department's election to participate in the pension system has occurred and to notify each party of its responsibilities under this section. If the parties notify the executive director within 30 days of the date of the notice provided under this subsection that the revocation was unintentional and provide evidence satisfactory to the executive director that the circumstances that caused the revocation have been cured, the revocation will be deemed to have not occurred.(e) The executive director will notify the state board of the occurrence of any revocation under this section at the next meeting of the state board following the effective date of the revocation.(f) As of the effective date of the revocation:(1) the revoking department will no longer be considered a participating department in the pension system;(2) no additional members of the department may be enrolled in the pension system;(3) no member of the department may accrue additional qualified service or benefits in connection with the performance of emergency services or support services for the department; and(4) the governing body of the department and the governing body of the political subdivision associated with the department will have no further financial obligations to the pension system, except as provided under an agreement entered into under subsection (c)(4) of this section.(g) Within 90 days after the effective date of revocation, the executive director will send written notice to each current member, vested terminated member, and retiree of the department by first class mail to the person's most recent address of record on file with the pension system. Such notice will explain how the person's benefits provided under the pension system are affected by the department's revocation, including, without limitation, the immediate vesting of the member's accrued benefit as determined under §304.3 of this title (if applicable), the amount of such accrued benefit, and information related to when and how the member may commence such accrued benefit.(h) In order to maintain an actuarially sound pension system as required under §862.001(b), Texas Government Code, the governing body of the political subdivision associated with the department that revokes its participation in the pension system will be charged an additional amount as determined by the pension system's actuary in accordance with generally accepted actuarial standards. Such revocation charge shall be an amount equal to the department's allocated share of the pension system's net pension liability. The pension system's net pension liability used to determine the revocation charge under this section is the net pension liability of the pension system as reported in the most recent audited financial report of the pension system as that term is defined by GASB Statement No. 67.(i) For purposes of this section, the department's allocated share of the pension system's net pension liability shall be equal to the greater of (1) or (2) where:(1) equals the average of the department's contribution allocation percentage in the 2 most recent audited reports of information required for disclosure by GASB Statement No. 68 (GASB 68); and(2) equals the average of the department's contribution allocation percentage in the 2 most recent audited reports of information required for disclosure by GASB 68 adjusted for decreases, if any, in the department's contribution rate per month and for decreases, if any, in the number of active members in the 5 most recent plan years.(j) The governing body of the political subdivision associated with the department may enter into a written agreement with the pension system to pay any unpaid contributions, the revocation charge determined under subsection (h) of this section, or both over a period of time not to exceed 5 years. Interest on such amount due will accrue at the assumed rate of investment return of the pension system at the time the agreement is entered into, except that interest will be waived if full payment of the amount is completed no later than the first (1st) anniversary of the effective date of revocation.(k) Neither the pension system nor the state board, nor any employee of the pension system, including, without limitation, the executive director, shall be liable to any person for any claim or loss of benefits resulting from the revocation of a department's participation in the pension system.(l) Notwithstanding anything to the contrary above, the state board may temporarily suspend the ability of any department to voluntarily revoke its election to participate in the pension system as described in subsection (b)(1) of this section if continuing to allow such revocations would have a negative impact on the administration or actuarial soundness of the pension system.",
            "sourceNote": "Source Note: The provisions of this §304.2 adopted to be effective July 19, 2020, 45 TexReg 4775."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200184&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "200184",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "304",
                "label": "MEMBERSHIP IN THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§304.3",
                "label": "Determination of Accrued Benefit"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200185&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "200185",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) For purposes of §304.2 of this title (relating to Departmental Revocation of Participation in the Pension System) and this section, an \"affected member\" means each current member of a participating department who is listed on the department's certified membership roster as required under §304.2(c)(2) of this title and who has not commenced a retirement benefit prior to the date a revocation occurs as determined under §304.2 of this title.(b) Each affected member will be fully vested in the affected member's accrued benefit in the pension system as of the date the revocation occurs, regardless of the years of qualified service or age of such affected member as of such date, as determined under subsection (c), (d), or (e) of this section, as applicable.(c) If the affected member has less than 10 years of qualified service with the pension system as of the date the revocation occurs, his or her accrued benefit will be equal to the product of (1) and (2) where:(1) equals the product of the actual number of years of qualified service the affected member has earned with the pension system, including any partial years, multiplied by five percent (5%); and(2) equals the full service retirement annuity determined under §308.2(f) of this title (relating to Service Retirement Annuity) based on the department's average monthly Part One contributions as of such date.(d) If the affected member has at least 10 years but less than 15 years of qualified service with the pension system as of the date the revocation occurs, his or her accrued benefit will be equal to the product of (1) and (2) where:(1) equals the sum of fifty percent (50%) plus the product of the actual number of years of qualified service, including any partial years, in excess of 10 years that the affected member has earned with the pension system multiplied by ten percent (10%); and(2) equals the full service retirement annuity determined under §308.2(f) of this title based on the department's average monthly Part One contributions as of such date.(e) If the affected member has 15 years of qualified service or more with the pension system as of the date the revocation occurs, his or her accrued benefit will be equal to the full service retirement benefit determined under §308.2(f) of this title plus any supplemental benefit determined under §308.2(g) of this title based on the department's average monthly Part One contributions and the affected member's actual years of qualified service as of such date.(f) An affected member who vests in his or her accrued benefit under this section may commence such accrued benefit upon attaining age 55 by applying for a retirement benefit in accordance with Chapter 864, Texas Government Code.(g) Accrued benefits of vested terminated members and retirees of a department will not be affected by a department's revocation of its participation in the pension system under §304.2 of this title. A vested terminated member of such department may commence his or her accrued benefit upon attaining age 55 by applying for a retirement benefit in accordance with Chapter 864, Texas Government Code, and a retiree of such department will continue to receive the retirement benefit he or she was receiving as of the date of such revocation.",
            "sourceNote": "Source Note: The provisions of this §304.3 adopted to be effective July 19, 2020, 45 TexReg 4775."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200185&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "200185",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "304",
                "label": "MEMBERSHIP IN THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§304.4",
                "label": "Employees of Participating Departments"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197596&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197596",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In this section, \"Code\" means the Internal Revenue Code of 1986, as amended.(b) Effective September 1, 2019, the 86th Texas Legislature adopted H.B. 3247 which amended §862.002, Texas Government Code, to allow the employees of a participating department to participate in the pension system. Pursuant to the authority granted to the state board under §861.006(a), Texas Government Code, and as contemplated by §302.7 of this title (relating to Employees of Participating Departments), the state board adopts this rule to ensure the participation of employees of participating departments, whether full-time or part-time, satisfies the plan qualification requirements under §401(a) of the Code and to maintain the status of the pension system as a governmental plan under §414(d) of the Code.(c) Notwithstanding §862.002, Texas Government Code, the employees of any department that does not constitute or is not part of a governmental entity or a government-controlled entity are not eligible to participate in the pension system, including, without limitation, a §501(c)(3) or other nonprofit corporation incorporated under state law that contracts with a governmental entity to provide fire protection and emergency response services for the general public or receives public funding for the performance of such services.(d) For purposes of this section, a participating department will constitute or will be considered to be a part of a governmental entity if the participating department is a department of a municipality, county, special-purpose district or authority or any other political subdivision of the state of Texas whose employees are considered employees of a governmental entity.(e) For purposes of this section, a participating department will constitute or will be considered to be a part of a government-controlled entity if a majority of the governing body of the department is composed of publicly elected or appointed officials of the state of Texas or individuals appointed by such elected or appointed officials, regardless of whether or not the department itself is a governmental entity.(f) Solely for purposes of participation in the pension system and, except as otherwise provided below, prior to the first date of participation in the pension system, if a governmental entity or government-controlled entity has both employees and volunteers who are performing emergency services or support services, the governing body of such entity may elect to treat its paid employees as members of a paid department that is separate from its volunteer department, and such paid department may make a separate election as to whether or not to participate in the pension system under §862.001(a-1), Texas Government Code. The governing body of such governmental entity or government-controlled entity must notify the executive director in writing of its election to treat its paid employees as members of a separate department prior to any election to participate in the pension system.(g) Notwithstanding subsection (f) of this section, the governing body of a participating department that constitutes or is part of a governmental entity or a government-controlled entity that has made an election to participate in the pension system under §862.001(a-1), Texas Government Code, before September 1, 2020, may elect to treat its paid employees as members of a separate paid department that will not participate in the pension system by notifying the executive director in writing of its election no later than December 31, 2020. Such paid department will not be considered to have elected to participate in the pension system and its paid employees will not be enrolled as members of the pension system unless a separate election is made by the governing body of the department on behalf of such paid department to participate in the pension system.(h) Any governmental entity or government-controlled entity that elects to separate its paid employees and volunteers into different departments for purposes of participation in the pension system under this section must maintain separate records for each department, including, without limitation, records related to the enrollment of its members and qualified service earned by each member in such department.(i) For purposes of determining a member's eligibility to participate in the pension system, if a member performs emergency services or support services as both an employee and a volunteer for the same participating department, such member will not be eligible to earn qualified service for his or her service in both positions unless each position has different roles and responsibilities that are clearly distinct from the roles and responsibilities of the other position.",
            "sourceNote": "Source Note: The provisions of this §304.4 adopted to be effective July 19, 2020, 45 TexReg 4775."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197596&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197596",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "306",
                "label": "CREDITABLE SERVICE FOR MEMBERS OF THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§306.1",
                "label": "Prior Service Credit for Members of Participating Departments"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197597&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197597",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The governing body of a department that elects to participate in the pension system and is not merging an existing pension plan into the pension system may, before the fifth (5th) anniversary of the date the department begins participation, make a one-time election to purchase service credit for qualified service performed for the department before the effective date of departmental participation by the persons who became members of the pension system on the effective date of the departmental participation.(b) The governing body of a department that elects or has previously elected to participate in the pension system and is merging or has merged an existing pension plan into the pension system may at any time purchase service credit for qualified service performed for the department before the effective date of departmental participation by the persons who are members of the pension system on the date the department contracts for the purchase.(c) The maximum amount of prior service credit a member may receive under this section is 15 years. Prior service credit may be purchased for a number of years not to exceed a maximum of 15 years. The pension system shall grant prior service credit under this section if the governing body of the department or the governing body of the political subdivision associated with the department agrees in writing to finance the prior service credit by a lump-sum payment or within a period not to exceed 10 years from the effective date of the election to purchase the service credit.(d) The cost to finance the purchase of prior service credit is based on the actuarially assumed rate of investment return on fund assets at the time payment for the service credit begins. The governing body of the department or the governing body of the political subdivision associated with the department may purchase prior service credit under subsection (a) of this section based on any contribution rate at or above the minimum provided by statute or state board rule for the period purchased and under subsection (b) of this section based on any contribution rate at or above the current minimum provided by state board rule at the time payment for the service credit begins. The overall costs associated with the purchase of prior service credit shall be determined by the pension system actuary according to generally accepted actuarial standards and must be determined to be actuarially sound for the cost-sharing pension system.(e) To purchase prior service credit, the governing body of the department or the governing body of the political subdivision associated with the department must provide the Executive Director with a detailed, verified record of prior service showing the amount of qualified service performed for the department before the effective date of departmental participation by each person who became a member of the pension system on the effective date of the departmental participation. The record for each member must include the member's date of birth and entry date in the department.(f) The maximum amount of prior service credit provided by this rule applies only to prior service credit purchased, or under a written agreement to be financed that is instituted, on or after September 1, 2019. Prior service credit purchased, or under a written agreement to be financed, under a procedure administered by the pension system before September 1, 2019, is subject to the maximum amount of credit and the terms and value in effect under the pension system's procedures at the time of purchase or written agreement to purchase.(g) Prior service credit may not be purchased for any service performed prior to September 1, 2019 by a member who did not satisfy the requirements to be considered a \"volunteer\" or \"auxiliary employee\" under §861.001, Texas Government Code, prior to such date.",
            "sourceNote": "Source Note: The provisions of this §306.1 adopted to be effective October 2, 2005, 30 TexReg 6061; amended to be effective August 26, 2007, 32 TexReg 5185; amended to be effective July 11, 2010, 35 TexReg 5898; amended to be effective August 31, 2014, 39 TexReg 6868; amended to be effective October 18, 2015, 40 TexReg 7102; amended to be effective December 31, 2019, 44 TexReg 8333."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197597&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197597",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "306",
                "label": "CREDITABLE SERVICE FOR MEMBERS OF THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§306.2",
                "label": "Merger of Existing Pension Plan into Pension System"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197598&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197598",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Subject to approval by the state board, the governing body of a department that elects to participate in the pension system shall merge into the pension system any existing defined-benefit pension plan it operates for emergency services personnel.(b) The pension system actuary shall determine the prior service costs for active members as of the merger date according to generally accepted actuarial standards. In the event that the assets of the merging plan do not cover the prior service costs for active members, the governing body of the department or the governing body of the political subdivision associated with the department shall pay the determined prior service costs for active members not later than the 10th anniversary of the effective date of merger. Interest on the prior service costs accrues at the assumed rate of investment return at the time determination of the prior service costs is made, except that interest is waived if such governing body completes payment not later than the first anniversary of the effective date of merger.(c) The state board shall determine the discount rate for determining the liability for the monthly benefits which retirees are being paid on the effective date of the merger and for deferred monthly benefits for inactive members who, on that date, have a vested right to a future monthly benefit upon attaining the required age. Using this discount rate, the pension system actuary shall then determine the liability for these retirees and inactive members according to generally accepted actuarial standards. In the event that the assets of the merging plan do not cover the costs associated with the liability of monthly benefits of these retirees and inactive members, the governing body of the department or the governing body of the political subdivision associated with the department shall pay the determined costs for such monthly benefits not later than the 10th anniversary of the effective date of merger. Interest on the costs for monthly benefits for retirees and inactive members accrues at the assumed rate of investment return at the time determination of such costs is made, except that interest is waived if such governing body completes payment not later than the first anniversary of the effective date of merger.(d) On the effective date of merger, the participating department shall transfer, or cause to be transferred, all assets and liabilities of the former pension plan to the pension system. The pension system shall commingle the transferred assets with other assets of the pension system for investment purposes, but the assumption of such assets, the prior service costs for active members according to subsection (b) of this section, and the liability for the monthly benefits of retirees and inactive members according to subsection (c) of this section, must be determined to be actuarially sound for the cost-sharing pension system.(e) The pension system shall begin paying benefits being paid to retirees by the merging plan on the effective date of merger in accordance with the merged plan as in effect on the date of the merger. Prior service costs for active members described in subsection (b) of this section and monthly benefits of retirees and inactive members described in subsection (c) of this section granted as a result of a merger are based on service before the effective date of merger as if it were performed as a member of the pension system, subject to the requirements of Section 66, Article XVI, Texas Constitution.(f) Prior service credit may not be purchased under §306.1 of this title (relating to Prior Service Credit for Members of Participating Departments) for any service that is credited under the terms of a merger agreement.(g) The payment terms associated with the prior service costs for active members and the liabilities for monthly benefits of retirees and inactive members as described in subsections (b) and (c) of this section respectively, and the details of how the assets of the merging plan will be allocated among such costs and liabilities and any future monthly contributions, if applicable, must be described in the merger agreement between the participating department and the pension system.",
            "sourceNote": "Source Note: The provisions of this §306.2 adopted to be effective January 12, 2012, 37 TexReg 67; amended to be effective August 31, 2014, 39 TexReg 6868; amended to be effective October 18, 2015, 40 TexReg 7102; amended to be effective December 31, 2019, 44 TexReg 8333."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197598&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197598",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "306",
                "label": "CREDITABLE SERVICE FOR MEMBERS OF THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§306.3",
                "label": "Qualified Service Credit for Eligible Active Military Duty under the Uniformed Services Employment and Re-Employment Rights Act"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197599&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197599",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A member may obtain qualified service credit for active military duty if the military duty constitutes qualified military service in uniformed services, as provided under the Uniformed Services Employment and Re-Employment Rights Act, 38 United States Code §4301 et seq. (USERRA), and the member is otherwise eligible to obtain such service credit under USERRA.(b) Under this section and in accordance with USERRA, a member whose active military duty is entitled to coverage under USERRA may be awarded qualified service credit for up to five (5) years of active military duty, subject to any additional period of time as provided in USERRA.(c) A member who is no longer available to perform emergency services or support services (if applicable) for a participating department due to active military duty, whether such duty is performed on a voluntary or involuntary basis, will be designated as on military leave by the pension system if the participating department substantiates such active military duty by submitting a letter to the pension system verifying the member's active military status, including the commencement date of active military service, and by providing any relevant documentation that may be requested by the pension system.(d) Upon returning to service with the participating department for which the member was performing services prior to active military duty, the member is eligible to be awarded qualified service credit for the period while on active military duty under this section, not to exceed five (5) years, and in accordance with USERRA if the member:(1) is discharged or released from active military duty under honorable conditions or as otherwise provided by USERRA; and(2) returns to service with the participating department for which the member was performing services prior to active military duty within ninety (90) days of discharge or release from active military duty or longer period of time as may be required by USERRA, provided that the participating department substantiates such return from active military duty by submitting a letter to the pension system verifying the member's return from military service, including the last date of active military service and date of return to service with the participating department, and by providing any relevant documentation that may be requested by the pension system. The pension system shall consider the provisions of USERRA or regulations adopted pursuant to USERRA in determining eligibility for qualified service credit of members who return to service with a participating department later than 90 days due to illness or injury incurred in, or aggravated during, uniformed service.(e) In accordance with USERRA, if a member returns to service with the participating department for which the member was performing services prior to active military duty within the period of time required by USERRA, the governing body of the political subdivision associated with the participating department shall make the contributions (including the Part One and Part Two contributions) that would have been made if the member had been performing emergency services or support services for the participating department during the period of active military duty. Such contributions are due no later than ninety (90) days after the member's date of return to service with the participating department.(f) Notwithstanding subsection (e) of this section, if the governing body of the political subdivision associated with the participating department has not previously made the required contributions for periods of active military duty that are reflected as military leave in the records of the pension system and occurred prior to the effective date of this section, the governing body of the political subdivision associated with the participating department will have ninety (90) days following the receipt of notice from the pension system to make the contributions required under subsection (e) of this section. The notice from the pension system will include identification of the eligible members, the periods of service for which the member is eligible to receive qualified service credit, not to exceed five (5) years, and the amount that the governing body of the political subdivision associated with the participating department is required to contribute. The period of time to make the contributions under this subsection may be extended at the discretion of the Executive Director.(g) For purposes of this section, the member's date of return to service with the participating department for which the member was performing services prior to active military duty is the date the member (1) attends at least one hour of annual training, (2) participates in one of the participating department's emergencies, or (3) provides support services for one of the participating department's emergencies if the governing body of the participating department includes all persons who provide support services for the department as members of the pension system in accordance with §862.0025, Texas Government Code.(h) Notwithstanding any provisions of this section to the contrary, contributions, benefits, and qualified service credit with respect to active military duty shall be provided in accordance with the Internal Revenue Code §414(u) and as required by USERRA.",
            "sourceNote": "Source Note: The provisions of this §306.3 adopted to be effective September 10, 2017, 42 TexReg 4656; amended to be effective December 31, 2019, 44 TexReg 8333."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197599&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197599",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "308",
                "label": "BENEFITS FROM THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§308.1",
                "label": "Eligibility for Retirement Annuity"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197600&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197600",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A member is eligible to retire and receive a full service retirement annuity with full benefits from the pension system when the member has at least 15 years of qualified service credited in the pension system and has attained the age of 55.(b) A member is eligible to retire and receive a partial service retirement annuity from the pension system when the member has at least 10 years of qualified service credited in the pension system and has attained the age of 55. Such partial retirement benefit shall accrue and be calculated as a percentage of a full service retirement benefit determined in §308.2(f) of this title (relating to Service Retirement Annuity) at the following rates:(1) 50 percent after the first 10 years of credited qualified service; and(2) An additional 10 percent a year for the next five years of credited qualified service.(c) Vested retirement benefits, including accrued partial service retirement benefits, are nonforfeitable. A retirement benefit also becomes nonforfeitable when a member attains normal retirement age or, to the extent funded, on the termination or partial termination of the pension system or the complete discontinuance of contributions to the pension system. A person whose retirement benefit met a partial vesting requirement as it existed on December 31, 2006, is eligible to retain that eligibility and the base amount of that benefit as it existed on that date.",
            "sourceNote": "Source Note: The provisions of this §308.1 adopted to be effective October 2, 2005, 30 TexReg 6062; amended to be effective July 26, 2006, 31 TexReg 5810; amended to be effective October 18, 2015, 40 TexReg 7103; amended to be effective December 31, 2019, 44 TexReg 8333."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197600&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197600",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "308",
                "label": "BENEFITS FROM THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§308.2",
                "label": "Service Retirement Annuity"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197601&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197601",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In this section, normal retirement age is the later of the month a member completes 15 years of credited qualified service or attains the age of 55.(b) A member who has terminated service with all participating departments may apply for a service retirement annuity by filing an application for retirement with the Executive Director. The application may not be filed more than one calendar month before the date the member wishes to retire, which may not precede the date of filing or the date of first eligibility to retire. The effective date of a member's retirement is the first day of the calendar month after the later of the following:(1) the date on which a member turns 55 years of age;(2) the date of termination of service with the participating department; or(3) the date on which the pension system receives an application that meets the requirements of this subsection from a member.(c) A monthly service retirement annuity is payable for the period beginning on the effective date of retirement through the month in which the retiree dies but is not payable for any month for which the retiree was eligible to retire but did not. Amounts payable for periods following the effective date of retirement but prior to the commencement of benefit payments will be paid in a lump sum with the first benefit payment.(d) A service retirement annuity is payable in equal monthly installments.(e) Except as otherwise provided by this section, the full service retirement monthly annuity is equal to six times the average monthly Part One contribution as described in §310.6 during the retiring member's term of qualified service with all participating departments.(f) For credited qualified service in excess of 15 years, a retiring member is entitled to receive an additional 6.2 percent of the full service retirement annuity compounded annually and adjusted for months of credited qualified service that constitute less than a year.(g) Notwithstanding this subsection, a person who had more than 15 years of qualified service as of December 31, 2006, is entitled to a service retirement annuity computed as the greater of the amount that existed on that date or the amount computed under the formula in effect on the date the person terminates service with all participating departments.",
            "sourceNote": "Source Note: The provisions of this §308.2 adopted to be effective October 2, 2005, 30 TexReg 6062; amended to be effective July 26, 2006, 31 TexReg 5810; amended to be effective August 31, 2014, 39 TexReg 6869; amended to be effective October 18, 2015, 40 TexReg 7103; amended to be effective December 31, 2017, 42 TexReg 7724; amended to be effective December 31, 2019, 44 TexReg 8333."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197601&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197601",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "308",
                "label": "BENEFITS FROM THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§308.3",
                "label": "Disability Retirement Benefits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197602&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197602",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as otherwise provided by §864.004, §864.005, and §864.0051, Texas Government Code, and this section, a member whose disability results from performing emergency services or support services is entitled to a temporary disability retirement benefit in the form of a monthly annuity during the period of the disability as determined under §864.004(c), Texas Government Code, in an amount equal to $400 plus $50 for every $12 increase in Part One contributions above $36 based on the contribution rate applicable to the participating department for which the member was performing emergency services or support services at the time of the disability.(b) An increase in contributions after the payment of a monthly disability annuity begins does not increase the amount of the annuity.(c) Disability benefits are prorated for portions of months during which a person is disabled.(d) An application for disability retirement benefits must be filed with the local board. The local board shall report to the Executive Director, in a manner provided by the pension system, a determination of a temporary disability not later than the 45th day after the date the application is received by the local board.(e) The determination of a temporary disability is a determination that a member is disabled as described in §864.004(a), Texas Government Code prior to the determination of permanent disability by the medical board under §864.0051(a), Texas Government Code and is not a determination that a particular condition of a member is of a temporary nature. A member's right to receive a continuing disability retirement benefit shall be determined in accordance with §864.0051, Texas Government Code.(f) For purposes of a determination by the local board or the medical board of a member's disabled status under §864.004, §864.005, or §864.0051, a member's \"regular occupation\" may be determined within the sole discretion of the local board or medical board to mean any occupation the member held immediately prior to becoming disabled, whether or not the member received compensation in connection with such occupation, including, without limitation, an occupation as a homemaker or caretaker.(g) The state board may adopt procedures for the administration of disability retirement benefits under the pension system as it deems necessary.",
            "sourceNote": "Source Note: The provisions of this §308.3 adopted to be effective October 2, 2005, 30 TexReg 6062; amended to be effective July 26, 2006, 31 TexReg 5810; amended to be effective August 26, 2007, 32 TexReg 5185; amended to be effective August 31, 2014, 39 TexReg 6869; amended to be effective October 18, 2015, 40 TexReg 7103; amended to be effective December 31, 2019, 44 TexReg 8333."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197602&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197602",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "308",
                "label": "BENEFITS FROM THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§308.4",
                "label": "Death Benefits"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=121304&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "121304",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The surviving spouse and dependents of a member who dies as a result of performing emergency services or support services are entitled to the benefit provided under §864.006, Texas Government Code. The beneficiary of an active member who dies as a result of performing emergency services or support services is entitled to a lump-sum benefit of $100,000.(b) Except as otherwise elected under subsection (c) or (d) of this section, the beneficiary of a deceased active member whose death did not result from the performance of emergency services or support services, including a member whose death resulted from the performance of active military duty, is entitled to: the sum of the amount that has been contributed on the decedent's behalf from whatever source at the time of the member's death and the amount that would have been contributed by a participating department after the member's death, based on the participating department's contribution rate at the time of the member's death, at the end of the period required for full service retirement benefits, but in no event less than the total amount that has actually been contributed on the member's behalf.(c) In lieu of the benefit provided by subsection (b) of this section, if the surviving spouse is the sole designated beneficiary of a deceased member (i) who dies as an active member of a participating department, (ii) whose death did not result from the performance of emergency services or support services and (iii) who had attained the minimum age and service requirements under §308.1 of this title (relating to Eligibility for Retirement Annuity) for a full or partial service retirement as of the date of death, the surviving spouse may elect to receive two-thirds of the monthly annuity for a full or partial retirement, as applicable, that the decedent would have received if the decedent had retired on the date of death.(d) In lieu of the benefit provided by subsection (b) of this section, if the surviving spouse is the sole designated beneficiary of a deceased member (i) who dies as an active member of a participating department, (ii) whose death did not result from the performance of emergency services or support services, and (iii) who had attained the minimum service requirements, but had not attained the minimum age requirement under §308.1 of this title for a full or partial service retirement as of the date of death, the surviving spouse may elect to receive a death benefit annuity, beginning on the later of the date on which the decedent would have attained the minimum age requirement or the date the surviving spouse applies for the annuity, equal to two-thirds of the monthly annuity for a full or partial retirement, as applicable, to which the decedent would have been entitled on the date that the member would have attained the minimum age requirement.(e) The election under subsection (b) or (c) of this section, as applicable, is not available to the deceased member's spouse if the deceased member designated more than one beneficiary to receive such death benefit, even if the spouse is one of the deceased member's designated beneficiaries.(f) All beneficiary designations of a member will become null and void upon such member's termination from service with all participating departments. No designated beneficiary is entitled to a death benefit under this section following a member's termination of service from all participating departments.(g) The surviving spouse of a deceased member who dies after terminating service, but before commencing a service retirement annuity from the pension system under §308.2 of this title (relating to Service Retirement Annuity) , is entitled to receive upon application to the pension system (i) the death benefit annuity described in subsection (c) of this section if the deceased member had attained the minimum age and service requirements under §308.1 of this title for a full or partial service retirement as of the date of death or (ii) the death benefit annuity described in subsection (d) of this section if the deceased member had attained the minimum service requirements, but had not attained the minimum age requirement under §308.1 of this title for a full or partial service retirement as of the date of death, beginning on the dates described in subsection (d) of this section. The surviving spouse of a deceased member is entitled to the benefit under this subsection even if the surviving spouse was not the designated beneficiary of the deceased member upon termination of active service from all participating departments.(h) The surviving spouse of a person who dies after commencing a service retirement annuity from the pension system under §308.2 of this title is entitled to the benefit provided by §864.009,Texas Government Code.(i) For beneficiary designations made after September 1, 2015, a member who is married and designates a beneficiary other than his or her spouse must obtain written spousal consent for such beneficiary designation in a manner as determined by the pension system.(j) Any death benefit that is payable to a dependent will be paid to the legal guardian of such dependent for the benefit of such dependent.",
            "sourceNote": "Source Note: The provisions of this §308.4 adopted to be effective October 2, 2005, 30 TexReg 6062; amended to be effective August 26, 2007, 32 TexReg 5186; amended to be effective July 11, 2010, 35 TexReg 5899; amended to be effective April 16, 2012, 37 TexReg 2684; amended to be effective October 18, 2015, 40 TexReg 7103; amended to be effective March 29, 2018, 43 TexReg 1877; amended to be effective December 31, 2019, 44 TexReg 8333."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=121304&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "121304",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "310",
                "label": "ADMINISTRATION OF THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§310.1",
                "label": "Officers of State Board"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197603&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197603",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The trustees of the state board annually shall elect a chair, vice chair, and secretary at the last regularly scheduled board meeting in a state fiscal year. The terms of the officers take effect the following September 1.",
            "sourceNote": "Source Note: The provisions of this §310.1 adopted to be effective October 2, 2005, 30 TexReg 6063."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197603&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197603",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "310",
                "label": "ADMINISTRATION OF THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§310.2",
                "label": "Additional Duties of State Board"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197604&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197604",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The state board shall formulate the basic and general policies of the pension system and the rules consistent with the purposes, policies, principles, and standards stated in statutes administered by the state board.(b) The state board shall adopt and revise written investment objectives and policies after consultation with the pension system's investment counselor and shall periodically review such objectives and policies.",
            "sourceNote": "Source Note: The provisions of this §310.2 adopted to be effective October 2, 2005, 30 TexReg 6063; amended to be effective October 18, 2015, 40 TexReg 7104; amended to be effective December 31, 2019, 44 TexReg 8335."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197604&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197604",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "310",
                "label": "ADMINISTRATION OF THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§310.4",
                "label": "Standard of Conduct for Financial Advisors and Service Providers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200052&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "200052",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In accordance with §2263.004, Texas Government Code, financial advisors and service providers that directly or indirectly receive more than $10,000 in compensation from the pension system during a state fiscal year and that provide financial services to the Executive Director, the state board, or individual members of the state board regarding the investment or management of the fund's assets shall comply with all applicable standards of conduct with which they are required to comply in accordance with federal or state law, rules, or regulations, relevant trade or professional associations, and the state board's investment policy.(b) A financial advisor or service provider must agree to comply with these standards of conduct as a prerequisite to establishing and continuing any business relationship regarding the fund.(c) The state board is authorized to terminate any business or contractual relationship with a financial advisor or service provider that the state board has determined to have failed to comply with an applicable standard of conduct.",
            "sourceNote": "Source Note: The provisions of this §310.4 adopted to be effective October 2, 2005, 30 TexReg 6063; amended to be effective August 31, 2014, 39 TexReg 6869; amended to be effective December 31, 2019, 44 TexReg 8335."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200052&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "200052",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "310",
                "label": "ADMINISTRATION OF THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§310.5",
                "label": "Local Board of Trustees"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197606&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197606",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A local board annually shall elect a chair, vice chair and secretary no later than the last day of February of each calendar year. The participating department head may not be elected to serve as the chair of the local board.(b) A meeting of a local board is subject to the Texas Open Meetings law (Chapter 551, Government Code).(c) Trustees of a local board serve staggered two-year terms that begin March 1st and end the last day of February of the second year. A vacancy on a local board is filled for the remainder of the unexpired term by the procedure by which the position was originally filled.(1) Trustee Selected by Governing Body of Political Subdivision. The trustee selected by the governing body of the political subdivision serves on the local board to ensure the responsibilities of the local board and governing body are fulfilled, including but not limited to the submission of the local contributions to the pension system for each member performing emergency services or support services for the participating department for each month of service beginning on the date that the member enters the pension system.(A) In a municipality, the trustee selected may be the chief financial officer of the municipality or, if there is no officer denominated as chief financial officer, the person who performs the duties of chief financial officer or a person designated by the chief financial officer or by the person performing the duties of chief financial officer.(B) In an emergency services district, the trustee selected may be a member of the board of emergency services commissioners or the person who performs the duties of chief financial officer or a person designated by the chief financial officer or by the person performing the duties of chief financial officer.(C) In any other political subdivision, the trustee selected may be the chief financial officer or the person who performs the duties of chief financial officer or a person designated by the chief financial officer or by the person performing the duties of chief financial officer.(2) Trustees Representing a Participating Department. Three trustees who are active members of a participating department, who are members of the pension system for whom pension system monthly contributions are being paid, and who were each elect by a majority vote of the members of the participating department who are members of the pension system serve on the local board to ensure the responsibilities of the local board and participating department are fulfilled, including but not limited to the enrollment of eligible members in the pension system by the participating department head.(3) Trustees Representing a Political Subdivision or Unit of Government. Two trustees who reside within the political subdivision of which the participating department is a part are each chosen by a majority vote of the other four members of the local board to ensure the responsibilities of the local board are fulfilled.",
            "sourceNote": "Source Note: The provisions of this §310.5 adopted to be effective October 2, 2005, 30 TexReg 6063; amended to be effective September 1, 2006, 31 TexReg 5811; amended to be effective October 18, 2015, 40 TexReg 7104; amended to be effective December 31, 2019, 44 TexReg 8335; amended to be effective July 5, 2020, 45 TexReg 4528."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197606&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197606",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "310",
                "label": "ADMINISTRATION OF THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§310.6",
                "label": "Local Contributions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197607&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197607",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Except as otherwise provided by this section, the governing body of the political subdivision associated with a participating department shall make a contribution for each month for each individual who is a member of the pension system as determined under §862.002, Texas Government Code. The monthly contribution is composed of two parts, as outlined in subsections (b) and (c) of this section. Contributions are payable for each month of service regardless of whether the member receives a year of qualified service. Contributions are payable as provided by §865.014, Texas Government Code, and §310.8 of this title (relating to Billing). Contributions required under this section are not considered compensation to the members for whom they are made.(b) The Part One contribution is the portion of the contribution that is used for purposes of calculating the benefit of a member as provided in §308.2 of this title (relating to Service Retirement Annuity). The Part One contribution will be no less than the minimum contribution amount provided in subsection (d) of this section.(c) The Part Two contribution is the portion of the contribution that is applied to reduce the unfunded actuarial accrued liability of the pension system as contemplated under §861.001(1) and §864.002(a)(1), Texas Government Code. The Part Two contribution is not used for purposes of calculating the service retirement benefit of a member as provided in §308.2 of this title. The state board may establish or modify the Part Two contribution based on the pension system's most recent actuarial valuation approved by the state board, but in no case shall the Part Two contribution exceed 15 percent of the Part One contribution attributable to the participating department. Any Part Two contribution established or modified by the state board will be effective beginning on September 1 following the state board's approval of such Part Two contribution. The governing body of a political subdivision associated with the participating department shall make the Part Two contribution for each month as provided in subsection (a) of this section.(d) The minimum contribution rate for each participating department is $36 per member. After August 31, 2015, the minimum contribution rate for each participating department is $36 per member plus any Part Two contribution that might be charged by the pension system, as provided in subsection (c) of this section. The governing body of a political subdivision associated with the participating department may elect to make Part One contributions with respect to a participating department at a rate greater than the minimum contribution amount by notifying the Executive Director in writing of the rate.(e) Contributions are payable when leave is taken under the Family and Medical Leave Act of 1993 (29 U.S.C. §2601 et seq.). Contributions are not payable during a period of temporary disability.(f) Contributions are not immediately payable during a period of military leave while on active military duty if (1) the military duty constitutes qualified military service in uniformed services, as provided under the Uniformed Services Employment and Re-Employment Rights Act, 38 United States Code §4301 et seq. (USERRA) and (2) the member is designated as on military leave by the pension system upon receiving documentation from the participating department that substantiates such active military duty under procedures developed by the pension system pursuant to §306.3(c) of this title (relating to Qualified Service Credit for Eligible Active Military Duty under the Uniformed Services Employment and Re-Employment Rights Act). Contributions for the period of active military duty shall be paid by the governing body of the political subdivision associated with the participating department upon the member's return to the participating department in accordance with §306.3(e) of this title and as required by USERRA.(g) The pension system may accept Part One and Part Two contributions from the governing body of the participating department or the governing body of the political subdivision associated with the participating department, but in no event shall the pension system's acceptance of contributions directly from the governing body of the participating department waive or otherwise limit the ultimate responsibility of the governing body of the political subdivision associated with the participating department to make contributions and associated interest, if any, to the pension system.",
            "sourceNote": "Source Note: The provisions of this §310.6 adopted to be effective October 2, 2005, 30 TexReg 6063; amended to be effective September 1, 2006, 31 TexReg 5811; amended to be effective July 27, 2014, 39 TexReg 5625; amended to be effective October 18, 2015, 40 TexReg 7104; amended to be effective September 10, 2017, 42 TexReg 4656; amended to be effective December 31, 2019, 44 TexReg 8335."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197607&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197607",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "310",
                "label": "ADMINISTRATION OF THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§310.8",
                "label": "Billing"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197608&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197608",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The Executive Director shall bill the governing body of a political subdivision associated with a participating department semi-annually on the last business day of February and August.(b) Each billing shall include, as appropriate, charges for:(1) monthly Part One contributions for participating members and any corresponding Part Two contributions, if applicable;(2) optional annuity increases or supplemental payments;(3) annuity payments funded by the governing body of the political subdivision associated with the participating department or the governing body of the participating department;(4) prior service contributions;(5) late-payment interest charges; and(6) unpaid administrative penalties.(c) At least 30 days before the last business day of February and of August, the Executive Director shall send to the chair of the local board of each participating department a semi-annual pension roster report (Roster) that includes the name of each person who performs emergency services or support services, if applicable, for the participating department and is identified as a member of the pension system, and the name of each person who is receiving pension payments under a funding arrangement with the plan.(d) The local board shall verify the accuracy of the Roster report and shall work with the participating department head to enroll each person who is performing or has performed emergency services or support services, if applicable, for the participating department since the date of the last verified Roster and who is not listed on the Roster as a member of the pension system as required by §862.002, Texas Government Code.(e) Upon request by the local board chair or the participating department head, the Executive Director will provide an updated Roster for certification.(f) The local board shall meet and certify, by signature of the chairman, the accuracy of the Roster report and return the signed Roster report to the Executive Director no later than the fifth day before the last day of the billing period.(g) Based on the certified Roster, on the last day of the month of the billing period, an invoice shall be generated by the pension system and provided to the governing body of the political subdivision associated with the participating department. Payments are due within 30 days of the invoice date. Late payments accrue interest at the current actuarially assumed rate of investment return on fund assets.(h) In this section:(1) The term \"ACH\" (Automated Clearing House) means the legal framework of rules and operational procedures adopted by financial institutions for the electronic transfer of funds.(2) The term \"ACH Credit\" means an ACH transaction initiated by the governing body of a political subdivision or the governing body of a participating department for the electronic transfer of funds from the account of the governing body of the political subdivision or the governing body of the participating department to the account of the pension system.(3) The term \"ACH Debit\" means an ACH transaction initiated by the pension system for the electronic transfer of funds from the account of the governing body of a political subdivision or the governing body of a participating department to the account of the pension system.(4) The term \"electronic funds transfer\" means the transfer of funds, other than by check, draft or similar paper instrument, that is initiated electronically to order, instruct, or authorize a financial institution to debit or to credit an account.(5) The term \"pre-authorized direct debit\" means the method available to the governing body of a political subdivision or the governing body of a participating department for electronically paying required contributions by granting a continuing authorization to the pension system to initiate an ACH Debit for the electronic transfer of funds from the designated bank account of the governing body of the political subdivision or the governing body of the participating department to the account of the pension system in an amount equal to the contributions required to be paid.(6) The term \"wire transfer\" generally means a single transaction, initiated by the governing body of a political subdivision or the governing body of the participating department, in which funds are electronically transferred to the account of the pension system using the Federal Reserve Banking System rather than the ACH.(i) Amounts required to be contributed to the pension system in accordance with Chapter 865 of the Texas Government Code may be made by preauthorized direct debits (ACH Debits), electronic funds transfer, or by wire transfer.(j) The governing body of a political subdivision or the governing body of a participating department may elect to use the preauthorized direct debit method of payment by filing a signed authorization agreement with the pension system in which the governing body of the political subdivision or the governing body of the participating department has designated a single bank account from which all transfers will be made.(k) The authorization agreement entered into for this purpose constitutes continuing authority for the pension system to initiate a direct debit of the governing body of the political subdivision's or the governing body of the participating department's designated bank account.(l) An authorization agreement remains in effect until the pension system receives either a written revocation of the agreement, or a subsequent written agreement, which automatically revokes the existing authorization. A new authorization agreement must be filed if there is any change in the designated bank account. The pension system, in its sole discretion, may terminate the authorization agreement by mailing written notice to the governing body of the political subdivision or the governing body of the participating department, as applicable. Thereafter, the governing body of the political subdivision or the governing body of the participating department must remit all contributions by check, electronic funds transfer, wire transfer, or other monetary means approved by the Executive Director. The alternative method of payment may include a fee to recover the cost of administering this subsection.(m) On the 30th day after the invoice date, the pension system will initiate an ACH Debit in the amount of the invoice. The actual transfer of funds from the ACH designated account will not occur before the due date of the invoice.(n) An ACH Debit that is reversed by a governing body of a political subdivision or the governing body of the participating department or that fails because sufficient funds are not available for transfer constitutes nonpayment of the required contributions and, thereafter, the required contributions will not be considered to have been received until the day the funds are actually transferred to the account of the pension system. Such unpaid funds may be subject to interest charges.",
            "sourceNote": "Source Note: The provisions of this §310.8 adopted to be effective October 2, 2005, 30 TexReg 6063; amended to be effective September 1, 2006, 31 TexReg 5811; amended to be effective January 8, 2013, 38 TexReg 153; amended to be effective August 31, 2014, 39 TexReg 6870; amended to be effective October 18, 2015, 40 TexReg 7104; amended to be effective September 10, 2017, 42 TexReg 4657; amended to be effective December 31, 2019, 44 TexReg 8335."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197608&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197608",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "310",
                "label": "ADMINISTRATION OF THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§310.9",
                "label": "Periodic Reports; Administrative Penalties"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197609&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197609",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The Executive Director shall require periodic reports of local boards and participating department heads. The Executive Director shall specify the content of such periodic reports to ensure the ability of the state board and the Executive Director to administer the pension system in a manner that uses fund assets in a manner required by statute.(b) A report required in accordance with this section is late if it is not received by the Executive Director before the end of the second month following the last day required to be covered in the report.(c) An administrative penalty is imposed on each late periodic report required in accordance with this section. The penalty is $500 for each violation, except that a surcharge of $100 will be added to the penalty for each month the report remains late.(d) The Executive Director may waive an administrative penalty under this section if the Executive Director determines, after a written request by a local board or a participating department head for a waiver, that the delay in reporting was beyond the control of the parties responsible for preparing and submitting the report and was not the result of neglect, indifference, or lack of diligence.(e) A local board or participating department head may appeal the Executive Director's denial of a waiver to the state board to be determined at the state board's next scheduled meeting. On appeal to the state board, the state board is subject to the same standard for determination as the Executive Director but may in its discretion accept additional information from the local board or the participating department head.",
            "sourceNote": "Source Note: The provisions of this §310.9 adopted to be effective October 2, 2005, 30 TexReg 6063; amended to be effective August 31, 2014, 39 TexReg 6870; amended to be effective March 29, 2018, 43 TexReg 1878; amended to be effective December 31, 2019, 44 TexReg 8335."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197609&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197609",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "310",
                "label": "ADMINISTRATION OF THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§310.10",
                "label": "Voluntary Payments by Departments to Retirees and Beneficiaries"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=160338&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "160338",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The governing body of a participating department, as authorized by this section, may make one or more supplemental payments to retirees and other beneficiaries of the pension system, or may provide an increase in the amount of annuities paid to retirees and other beneficiaries of the pension system. The governing body of a participating department may choose to apply a supplemental payment or increase in annuities to all retirees and beneficiaries as of the date of the payment or increase or to only those whose benefits are derived from a person who was eligible to retire under §308.1(a) of this title (relating to Eligibility for Retirement Annuity) or with a specified greater number of years of qualified service.(b) An increase in benefits may consist of:(1) an additional payment that does not exceed the greater of $50 or 100 percent of a retiree's monthly scheduled payment;(2) an annuity increase based on the 12-month increase in the Consumer Price Index for All Urban Consumers as of December of the preceding year;(3) an increase to allow each annuity to reach a minimum monthly amount;(4) an increase that adds to each annuity a specified amount for each whole year of credited service for the participating department; or(5) a percentage increase to each annuity.(c) Before it may implement a supplemental payment or annuity increase under this section, the governing body of a participating department shall:(1) obtain from the Executive Director a determination from the pension system's actuary that the participating department's payments to the pension system will be sufficient to finance the anticipated additional benefits; and(2) contract with the Executive Director to make quarterly payments to the pension system that are necessary to finance the increase in benefits.(d) A supplemental payment or increase in benefits must apply to all retirees in the same annuity classification but may be based on persons who qualified for an annuity under a previously lower contribution rate.",
            "sourceNote": "Source Note: The provisions of this §310.10 adopted to be effective August 26, 2007, 32 TexReg 5187; amended to be effective February 1, 2009, 34 TexReg 440; amended to be effective August 31, 2014, 39 TexReg 6871; amended to be effective October 18, 2015, 40 TexReg 7104; amended to be effective December 31, 2019, 44 TexReg 8335."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=160338&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "160338",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "310",
                "label": "ADMINISTRATION OF THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§310.11",
                "label": "Payments by Pension System"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197610&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "197610",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Unless otherwise requested timely in a manner provided by the pension system, payments of a benefit, including a service or disability retirement annuity, survivor annuity, or lump-sum benefit, that first becomes payable on or after February 1, 2013, shall be made by electronic transfer of funds to the recipient's account in a banking, credit, or savings institution chartered by the federal or state government, as determined by the recipient.(b) At any time, a member, retiree, or other beneficiary of the pension system may elect to have a future payment of a benefit paid to the person or the person's beneficiaries, in a manner provided by the pension system, by check, or as provided under subsection (a) of this section. The pension system shall notify all persons who apply for service or disability retirement to take effect on or after February 1, 2013, of this option and provide a method for electing this option.",
            "sourceNote": "Source Note: The provisions of this §310.11 adopted to be effective January 8, 2013, 38 TexReg 153."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=197610&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "197610",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "310",
                "label": "ADMINISTRATION OF THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§310.12",
                "label": "Access to Information about Members, Retirees, and Beneficiaries"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200053&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "200053",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The Executive Director shall develop a pension system security policy to protect member information, including electronic data.(b) The local board annually shall review the pension system security policy and implement processes with respect to accessing the participating department's information in the pension system's online database which protect member information, including electronic data.(c) At a meeting of the local board, the local board shall designate at least two (2) users who are approved by the local board to have access to the participating department's information in the pension system's online database. Using forms provided by the pension system and certified by signature of the local board chair, the local board shall report to the Executive Director the required information for each of the local board's approved users. At a meeting of the local board no later than the last day of February of each calendar year, the local board shall designate and approve two (or more) users and report the approved user information to the Executive Director in the manner prescribed by the Executive Director.(d) The Executive Director shall authorize access to the pension system's online database only to users who complete a confidentiality agreement.(e) Authorized users' confidentiality agreements under this section remain in effect until the last day of February of each calendar year or until the local board chair provides the Executive Director a written revocation of an authorized user's local board approval to maintain member records through access to the pension system's online database.(f) If an authorized user's local board approval is revoked, the local board shall fill the vacancy for the remainder of the calendar year by the procedure in which the user was originally approved.(g) All user access to the pension system's online database is subject to the Executive Director's approval and may be terminated at any time.",
            "sourceNote": "Source Note: The provisions of this §310.12 adopted to be effective December 31, 2017, 42 TexReg 7724; amended to be effective December 31, 2019, 44 TexReg 8335."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200053&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "200053",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "310",
                "label": "ADMINISTRATION OF THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§310.13",
                "label": "Delegation of Local Board Duties to Executive Director"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200054&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "200054",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) In the event the local board cannot be constituted under §865.012, Texas Government Code, for any reason, the participating department head of such participating department, with the written consent of the governing body of the political subdivision associated with the department, shall notify the executive director in writing no later than the last business day in February of the failure to constitute the local board and authorize the delegation of the local board's duties to the executive director under this section.(b) In the event a local board fails to perform any of the duties required by the local board under state law for a period of 12 months or more, including, without limitation, the failure to hold at least 2 meetings during the prior calendar year, the failure to convene within a reasonable time to determine a member's right to a disability benefit, or the failure to verify the accuracy of the membership roster under §310.8 of this title, the executive director will send written notice to the local board chair, the participating department head, and the governing body of the political subdivision associated with such department of the local board's failure to perform its duties as soon as administratively practicable following such failure and will request that the local board take action to resolve such failure within a specified timeframe that is at least 90 days. If the local board fails to perform its duties within such specified timeframe, the local board will be deemed to have designated its duties to the executive director, and the executive director is authorized by the state board to perform the duties of the local board and to make any determinations required of the local board on and after such date.(c) An annual administrative penalty will be imposed on the governing body of the political subdivision associated with the department for each calendar year, or portion thereof, during which the executive director performs the duties of the local board as provided under this section. The amount of such administrative penalty will be $2,500 for the first calendar year and will increase by 5% for each subsequent calendar year.(d) The participating department head shall provide the executive director with any information that is requested by the executive director in order to carry out the duties delegated to the executive director under this section, including, without limitation, any service records of members and retirees or any injury reports that may be related to a disability claim.(e) Once the duties of a local board have been delegated to the executive director under this section, the executive director shall continue to act on behalf of the local board until such time as the participating department head or the governing body of the political subdivision associated with the department notifies the executive director in writing that a local board has been constituted and will perform the duties required of it under state law.(f) The executive director may waive an administrative penalty under this section if the executive director determines, after a written request for a waiver from a local board, participating department head or governing body of the political subdivision, that the failure was beyond the control of the parties responsible for convening the local board and was not the result of neglect, indifference, or lack of diligence.",
            "sourceNote": "Source Note: The provisions of this §310.13 adopted to be effective July 5, 2020, 45 TexReg 4528."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=200054&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "200054",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "11",
                "label": "TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "chapter": {
                "number": "310",
                "label": "ADMINISTRATION OF THE TEXAS EMERGENCY SERVICES RETIREMENT SYSTEM"
            },
            "rule": {
                "number": "§310.14",
                "label": "Delegation of Duties Upon Discontinuance of Participation in the Pension System"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=94923&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "94923",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The governing body of a political subdivision associated with a former participating department may delegate the duties required by such governing body under §864.010, Texas Government Code, to the executive director by providing a written request to delegate such duties to the executive director.(b) In the event the governing body of the political subdivision associated with a participating department that discontinues its participation in the pension system or ceases to exist fails to perform the duties required by such governing body under §864.010, Texas Government Code, for a period of 12 months or more and does not otherwise elect to delegate its duties to the executive director pursuant to subsection (a) of this section, the governing body of the political subdivision will be deemed to have designated its duties to the executive director, and the executive director is authorized by the state board to perform the duties of such governing body.(c) A one-time administrative penalty of $2,500 is imposed on the governing body of the political subdivision associated with the department that delegates its duties, or whose duties are delegated, in accordance with this section.(d) The participating department head, if any, or the governing body of the political subdivision shall provide the executive director with any information that is requested by the executive director in order to carry out the duties delegated to the executive director under this section, including, without limitation, copies of all membership records for members and retirees and the minutes of all local board meetings.",
            "sourceNote": "Source Note: The provisions of this §310.14 adopted to be effective July 5, 2020, 45 TexReg 4528."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=94923&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "94923",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "325",
                "label": "GENERAL STATE POLICY COMMITTEE PROVISIONS"
            },
            "rule": {
                "number": "§325.3",
                "label": "Officers"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=94924&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "94924",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The chair of the State Employee Charitable Campaign Policy Committee (SPC) will be elected by vote of SPC members.(b) Other officers will be elected at the discretion of the chair.",
            "sourceNote": "Source Note: The provisions of this §325.3 adopted to be effective June 23, 2002, 27 TexReg 5208."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=94924&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "94924",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "325",
                "label": "GENERAL STATE POLICY COMMITTEE PROVISIONS"
            },
            "rule": {
                "number": "§325.5",
                "label": "Meetings"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=123729&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "123729",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Meetings will be scheduled at the discretion of the chair of the State Employee Charitable Campaign Policy Committee.",
            "sourceNote": "Source Note: The provisions of this §325.5 adopted to be effective June 23, 2002, 27 TexReg 5208."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=123729&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "123729",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "325",
                "label": "GENERAL STATE POLICY COMMITTEE PROVISIONS"
            },
            "rule": {
                "number": "§325.7",
                "label": "Travel Expenses"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170363&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170363",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) State Employee Charitable Campaign Policy Committee (SPC) and State Employee Charitable Campaign Advisory Committee (SAC) members make their own travel arrangements and seek reimbursement from the State Employee Charitable Campaign (SECC) state campaign manager.  (b) Reimbursements are made at the State of Texas rates for per diem, airfare, car allowances, hotel and lodging expenses, cab fare, and parking with the following special provisions:  (1) Airfare. Airfare is reimbursed at the average coach airfare at two week advance rate unless approved by the SPC chair.  (2) Mileage. Mileage is reimbursed as provided in the Texas Mileage Guide.  (c) Original receipts are required for all reimbursements, with the exception of per diem and parking using a parking meter. (d) Expenses will be reimbursed within 21 days of receipt of the expense reimbursement form. The reimbursement form must be received in the SECC state campaign manager's office by 30 days following the SPC or SAC meeting to which the expenses pertain.",
            "sourceNote": "Source Note: The provisions of this §325.7 adopted to be effective June 23, 2002, 27 TexReg 5208; amended to be effective March 16, 2006, 31 TexReg 1720."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170363&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170363",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "326",
                "label": "CAMPAIGN MANAGEMENT"
            },
            "rule": {
                "number": "§326.1",
                "label": "10% Cap"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=123730&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "123730",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The only fee a campaign manager may charge is for actual campaign expenses that are reasonable and necessary. The fee must be based on the combined expenses of the state campaign manager and each local campaign manager, and the total of all fees may not exceed 10% of the total amount of contributions collected in the state employee charitable campaign.",
            "sourceNote": "Source Note: The provisions of this §326.1 adopted to be effective June 23, 2002, 27 TexReg 5208; amended to be effective October 30, 2008, 33 TexReg 8807; amended to be effective December 4, 2014, 39 TexReg 9362."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=123730&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "123730",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "326",
                "label": "CAMPAIGN MANAGEMENT"
            },
            "rule": {
                "number": "§326.3",
                "label": "Additional Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170364&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170364",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Local campaigns must comply with all applicable provisions, including the appointment of a local campaign manager and the designation of the local campaign manager or representative who shall attend a yearly training session that is provided by the State Campaign Manager (SCM).",
            "sourceNote": "Source Note: The provisions of this §326.3 adopted to be effective March 16, 2006, 31 TexReg 1721."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170364&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170364",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "326",
                "label": "CAMPAIGN MANAGEMENT"
            },
            "rule": {
                "number": "§326.5",
                "label": "Campaign Budget"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190502&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "190502",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Each local campaign manager will submit to the state campaign manager the proposed budget for the local campaign area. The local campaign manager's expenses and fee, if any will be charged, must be included in the budget.(b) The state campaign manager will review budgets from all local campaign areas and determine the projected combined expenses of the state campaign manager and each local campaign manager, including all fees.(c) If the state campaign manager determines that the projected combined expenses of the state campaign manager and each local campaign manager, and the total of all fees exceeds 10% of the total amount collected in the state employee charitable campaign, the state campaign manager will identify the campaign managers that submitted budgets containing an expenses and fee amount that exceeds 10% of the contributions collected locally. If the SCM's proposed fee exceeded 10% of contributions to statewide federations, the SCM will also be identified in the list of affected campaign managers.(d) The SCM will then calculate and determine an across-the-board percentage reduction of the fees charged by the affected campaign managers that would result in a total combined fee that is within the 10% cap.(e) If the resulting total combined fee would be within the 10% cap, the SCM will inform each affected campaign manager that the proposed budget for that local campaign area must be re-submitted to the SCM with the across-the-board percentage reduction the SCM designated pursuant to the calculation under subsection (d), of this section; however, the requirements of this subsection are subject to the provisions of subsections (f) and (g) of this section.(f) If the SCM determines that the affected managers would need to reduce their fee to a percentage level that is lower than the lowest percentage proposed by the other local campaign managers, the SCM will determine an across-the-board percentage reduction using the following method.(1) The SCM will calculate the total combined fee that would result from assigning to each of the affected managers the average percentage proposed by the other managers in their budgets.(2) If assigning the average percentage would result in a total combined fee that does not exceed the 10% cap, the SCM will notify the affected area managers of what the average percentage is and will require the affected area managers to re-submit their budgets with a fee that does not exceed the average percentage. The local area managers will re-submit their budgets in accordance with the SCM's instructions.(3) If assigning the average percentage to the affected areas would result in a total combined fee that exceeds the 10% cap, the SCM will determine an across-the-board percentage reduction, for all local areas and the SCM, that would result in a combined total fee of less than 10% of the total contributions collected in the SECC, and all local areas and the SCM shall submit an amended budget containing the across-the-board reduction.(g) Neither the SPC nor the LEC will approve a budget that does not comply with these rules, and a fee will not be paid that will result in violation of the combined 10% cap.",
            "sourceNote": "Source Note: The provisions of this §326.5 adopted to be effective October 30, 2008, 33 TexReg 8807; amended to be effective December 4, 2014, 39 TexReg 9362."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190502&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "190502",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "326",
                "label": "CAMPAIGN MANAGEMENT"
            },
            "rule": {
                "number": "§326.7",
                "label": "State Campaign Manager"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170365&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170365",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "In the event a local campaign manager is not appointed or is not able to carry out its duties, the state campaign manager shall assume those duties.",
            "sourceNote": "Source Note: The provisions of this §326.7 adopted to be effective April 17, 2018, 43 TexReg 2283."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170365&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170365",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "327",
                "label": "LOCAL CAMPAIGN MANAGEMENT"
            },
            "rule": {
                "number": "§327.1",
                "label": "10% Cap"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170366&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170366",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The only fee a campaign manager may charge and that an LEC may approve is for actual campaign expenses that are reasonable and necessary. The fee must be based on the combined expenses of the state campaign manager and each local campaign manager, and the total of all fees may not exceed 10% of the total amount of contributions collected in the state employee charitable campaign.",
            "sourceNote": "Source Note: The provisions of this §327.1 adopted to be effective June 23, 2002, 27 TexReg 5209; amended to be effective October 30, 2008, 33 TexReg 8808; amended to be effective December 4, 2014, 39 TexReg 9362."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170366&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170366",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "327",
                "label": "LOCAL CAMPAIGN MANAGEMENT"
            },
            "rule": {
                "number": "§327.5",
                "label": "Local Campaign Budget"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170367&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170367",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Each local campaign manager is required to submit a budget to the state campaign manager by the deadline set forth by the state campaign manager, and by using the required budget template. If the SPC has appointed an LEC to the local area, the budget must be approved by the LEC before it is submitted to the SPC, who has final approval of local budgets.(b) If the state campaign manager determines that the projected combined expenses of the state campaign manager and each local campaign manager, and the total of all fees exceeds 10% of the total amount collected in the state employee charitable campaign, the state campaign manager will return the budgets to some or all local campaign managers, and may impose an across-the-board percentage budget reduction to some or all local campaign managers so as to result in a combined campaign fee that does not exceed 10% of the total amount of contributions collected in the state employee charitable campaign that same year. Affected local areas will re-submit their proposed budgets with the reduced campaign fee.(c) The SCM will apply and LECs and LCMs must comply with the procedures contained in §326.5 of this title (relating to Campaign Budget) to implement the budget changes summarized in subsection (b) of this section.",
            "sourceNote": "Source Note: The provisions of this §327.5 adopted to be effective October 30, 2008, 33 TexReg 8808; amended to be effective December 4, 2014, 39 TexReg 9362."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170367&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170367",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "327",
                "label": "LOCAL CAMPAIGN MANAGEMENT"
            },
            "rule": {
                "number": "§327.7",
                "label": "Local Budget Form"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170369&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170369",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The SPC adopts by reference the form entitled, Local Campaign Manager Budget, Rev. January 2014, for the submission of local campaign budgets. The form may be obtained from the SECC State Campaign Manager, United Way of Texas, 812 San Antonio, Suite 101, Austin, Texas 78701 or from the SECC website: http://www.secctexas.org/.",
            "sourceNote": "Source Note: The provisions of this §327.7 adopted to be effective October 30, 2008, 33 TexReg 8808; amended to be effective December 4, 2014, 39 TexReg 9362."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170369&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170369",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "329",
                "label": "ELIGIBILITY CRITERIA FOR STATEWIDE FEDERATIONS/FUNDS AND AFFILIATED ORGANIZATIONS"
            },
            "rule": {
                "number": "§329.1",
                "label": "Audit and Review Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170368&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170368",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) To be eligible to participate in the state employee charitable campaign, if the charitable organization's budget:(1) is equal to or less than $250,000, the organization shall provide a completed Internal Revenue Service (IRS) Form 990 and an accountant's review that offers full and open disclosure of the organization's internal operations; or(2) is greater than $250,000, the organization shall be audited annually in accordance with generally accepted auditing standards of the American Institute of Certified Public Accountants. A copy of the report of such audit shall be provided with the application along with a completed Internal Revenue Service (IRS) Form 990.(b) When a charitable organization submits an audit or accountant's review, a copy of the organization's most recent annual audit or accountant's review must be included with the application. The audit or accountant's review must cover the fiscal year ending not more than 18 months prior to the January of the campaign year in which the organization is applying for participation. The IRS Form 990 and audit or accountant's review must cover the same fiscal period.(c) If the revenue or expenses on the audit or accountant's review differ from those appearing in IRS Form 990, a reconciliation must be included in IRS Form 990 itself or be explained in a letter of reconciliation signed by the Executive Director and enclosed with the application.(d) Should the accompanying reconciliation letter not clarify the differences to the satisfaction of the committee, the committee may require additional explanation from the applicant organization. The committee may also require additional explanation to be submitted in the form of a reconciliation letter signed by:(1) the auditor or firm that conducted the audit;(2) the accountant or firm that conducted the accountant's review; or(3) the accountant or firm who prepared IRS Form 990.",
            "sourceNote": "Source Note: The provisions of this §329.1 adopted to be effective May 1, 2003, 28 TexReg 3517; amended to be effective November 30, 2006, 31 TexReg 9617; amended to be effective October 30, 2008, 33 TexReg 8808; amended to be effective December 4, 2014, 39 TexReg 9363."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170368&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170368",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "329",
                "label": "ELIGIBILITY CRITERIA FOR STATEWIDE FEDERATIONS/FUNDS AND AFFILIATED ORGANIZATIONS"
            },
            "rule": {
                "number": "§329.3",
                "label": "25% Administrative Cost Cap"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190503&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "190503",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) To be eligible to participate in a state employee charitable campaign (SECC), a charitable organization must not spend more than 25% of its annual revenue for administrative and fund raising expenses.(b) The calculation method used to determine administrative costs will be as follows: Administrative expenses + fund raising costs divided by total revenue = percentage of revenue for administrative costs which can be calculated on the IRS Form 990 by adding the amount in part IX (Statement of Functional Expenses), Line 25, Column C (Management and General Expenses) to the amount in Line 25, Column D (Fundraising Expenses), and dividing the sum by Part VIII (Statement of Revenue), Line 12, Column A (Total Revenue). For purposes of listing administrative costs in the state employee charitable campaign brochure, calculation of administrative costs will be carried out two places, rounded down if under 0.50, rounded up if 0.50 or over; however, if the costs are any amount over 25%, the application will be denied. The SPC will not grant waivers from this requirement.",
            "sourceNote": "Source Note: The provisions of this §329.3 adopted to be effective June 23, 2002, 27 TexReg 5209; amended to be effective March 10, 2005, 30 TexReg 1452; amended to be effective March 16, 2006, 31 TexReg 1721; amended to be effective October 14, 2010, 35 TexReg 9108; amended to be effective December 4, 2014, 39 TexReg 9363."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190503&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "190503",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "329",
                "label": "ELIGIBILITY CRITERIA FOR STATEWIDE FEDERATIONS/FUNDS AND AFFILIATED ORGANIZATIONS"
            },
            "rule": {
                "number": "§329.5",
                "label": "Re-certification Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=123760&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "123760",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) To be eligible to participate in the State Employee Charitable Campaign and apply via the re-certification process:(1) the statewide federation/fund and affiliates must have not spent more than 25% of their annual revenue for administrative and fund raising expenses in the prior year's campaign; and(2) statewide federation/fund and affiliates must have participated in the prior year's State Employee Charitable Campaign.(b) To participate in the State Employee Charitable Campaign via the re-certification process the statewide federation/fund must submit the following:(1) letter from the State Policy Committee stating eligibility to apply to the State Employee Charitable Campaign via the re-certification process;(2) all documentation in compliance with §329.1 of this title (relating to Audit and Review Requirements); and(3) current operating budget.(c) To participate in the State Employee Charitable Campaign via the re-certification process, the affiliate charitable organization must submit the following:(1) letter from the State Policy Committee stating eligibility to apply to the State Employee Charitable Campaign via the re-certification process; and(2) Internal Revenue Service (IRS) Form 990, specifically, all pages of the Form 990 preceding and including the signature page, which shall contain the signature and attestation of the individual preparing the form. The form must be less than 18 months old.(d) To participate in the State Employee Charitable Campaign via the re-certification process the affiliate charitable organization must submit a complete application to the statewide federation/fund.(e) A complete application with all documentation shall be maintained by the statewide federation/fund for 3 years from the date of application. The SPC may conduct a random audit of any and all documentation prior to and subsequent to approval of the federation/fund or affiliate for any year's State Employee Charitable campaign.(f) Every third year, the statewide federation/fund must submit a complete application for the federation/fund and affiliates.(g) Each re-certification application is subject to review and approval or rejection by the current State Policy Committee, is subject to the rules then in effect, and can be denied for any of the reasons that a full application can be denied.",
            "sourceNote": "Source Note: The provisions of this §329.5 adopted to be effective March 16, 2006, 31 TexReg 1721; amended to be effective July 2, 2008, 33 TexReg 5024; amended to be effective December 4, 2014, 39 TexReg 9363; amended to be effective April 17, 2018, 43 TexReg 2284."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=123760&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "123760",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "329",
                "label": "ELIGIBILITY CRITERIA FOR STATEWIDE FEDERATIONS/FUNDS AND AFFILIATED ORGANIZATIONS"
            },
            "rule": {
                "number": "§329.7",
                "label": "Compliance Certification"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190506&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "190506",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Any charitable organization applying to participate in the State Employee Charitable Campaign must be in compliance with all statutes, executive orders, and regulations restricting or prohibiting U.S. persons from engaging in transactions and dealings with countries, entities, or individuals subject to economic sanctions administered by the U.S. Department of the Treasury's Office of Foreign Assets Control. The organization named in the application is aware that a list of countries subject to such sanctions, a list of Specifically Designated Nationals, and Blocked Persons subject to such sanctions, and overviews and guidelines for each such sanction can be found at http://www.treas.gov/offices/enforcement/ofac/sanctions/. If the organization named on the application becomes noncompliant at any time subsequent to completing this certification, it will notify the State Policy Committee of the State Employee Charitable Campaign immediately.",
            "sourceNote": "Source Note: The provisions of this §329.7 adopted to be effective March 16, 2006, 31 TexReg 1721."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190506&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "190506",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "329",
                "label": "ELIGIBILITY CRITERIA FOR STATEWIDE FEDERATIONS/FUNDS AND AFFILIATED ORGANIZATIONS"
            },
            "rule": {
                "number": "§329.11",
                "label": "Limitation on the Use of Contributions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170371&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170371",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) To be eligible to participate in a state employee charitable campaign (SECC), a charitable organization must affirm and provide sufficient documentation in its application demonstrating that it will use SECC contributions only to provide \"health and human services\" or to fund a charitable organization that provides \"health and human services\" as that term is defined in Government Code, §659.131. The State Policy Committee (SPC) may deny a statewide federation/fund or affiliate's application on the basis that sufficient documentation was not provided to demonstrate compliance with this section.(b) A participating charitable organization may not use SECC contributions to:(1) directly or indirectly fund litigation; or(2) make expenditures that would require the organization to register under Government Code, Chapter 305 if the organization were not an entity exempt from registration under that chapter.",
            "sourceNote": "Source Note: The provisions of this §329.11 adopted to be effective April 17, 2018, 43 TexReg 2284."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170371&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170371",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "330",
                "label": "ELIGIBILITY CRITERIA FOR LOCAL FEDERATIONS/FUNDS, AFFILIATED ORGANIZATIONS, AND LOCAL CHARITABLE ORGANIZATIONS"
            },
            "rule": {
                "number": "§330.1",
                "label": "Audit and Review Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170374&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170374",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) To be eligible to participate in the state employee charitable campaign, if the charitable organization's budget:(1) is equal to or less than $250,000, the organization shall provide a completed Internal Revenue Service (IRS) Form 990 and an accountant's review that offers full and open disclosure of the organization's internal operations; or(2) is greater than $250,000, the organization shall be audited annually in accordance with generally accepted auditing standards of the American Institute of Certified Public Accountants. A copy of the report of such audit shall be provided with the application along with a completed Internal Revenue Service (IRS) Form 990.(b) When a charitable organization submits an audit or accountant's review, a copy of the organization's most recent annual audit or accountant's review must be included with the application. The audit or accountant's review must cover the fiscal year ending not more than 18 months prior to the January of the campaign year in which the organization is applying for participation. The IRS Form 990 and audit or accountant's review must cover the same fiscal period.(c) If the revenue or expenses on the audit or accountant's review differ from those appearing in IRS Form 990, a reconciliation must be included in IRS Form 990 itself or be explained in a letter of reconciliation signed by the Executive Director and enclosed with the application.(d) Should the accompanying reconciliation letter not clarify the differences to the satisfaction of the committee, the committee may require additional explanation from the applicant organization. The committee may also require additional explanation to be submitted in the form of a reconciliation letter signed by:(1) the auditor or firm that conducted the audit;(2) the accountant or firm that conducted the accountant's review; or(3) the accountant or firm who prepared IRS Form 990.",
            "sourceNote": "Source Note: The provisions of this §330.1 adopted to be effective May 1, 2003, 28 TexReg 3518; amended to be effective November 30, 2006, 31 TexReg 9617; amended to be effective October 30, 2008, 33 TexReg 8809; amended to be effective December 4, 2014, 39 TexReg 9364."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170374&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170374",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "330",
                "label": "ELIGIBILITY CRITERIA FOR LOCAL FEDERATIONS/FUNDS, AFFILIATED ORGANIZATIONS, AND LOCAL CHARITABLE ORGANIZATIONS"
            },
            "rule": {
                "number": "§330.3",
                "label": "25% Administrative Cost Cap"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170372&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170372",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) To be eligible to participate in a state employee charitable campaign (SECC), a charitable organization must not spend more than 25% of its annual revenue for administrative and fund raising expenses.(b) The calculation method used to determine administrative costs will be as follows: Administrative expenses + fund raising costs divided by total revenue = percentage of revenue for administrative costs which can be calculated on the IRS Form 990 by adding the amount in part IX (Statement of Functional Expenses), Line 25, Column C (Management and General Expenses) to the amount in Line 25, Column D (Fundraising Expenses), and dividing the sum by Part VIII (Statement of Revenue), Line 12, Column A (Total Revenue). For purposes of listing administrative costs in the state employee charitable campaign brochure, calculation of administrative costs will be carried out two places, rounded down if under 0.50, rounded up if 0.50 or over; however, if the costs are any amount over 25%, the application will be denied. Neither the LEC nor the SPC will grant a waiver from this requirement.",
            "sourceNote": "Source Note: The provisions of this §330.3 adopted to be effective June 23, 2002, 27 TexReg 5210; amended to be effective March 10, 2005, 30 TexReg 1453; amended to be effective March 16, 2006, 31 TexReg 1723; amended to be effective October 14, 2010, 35 TexReg 9108; amended to be effective December 4, 2014, 39 TexReg 9364."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170372&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170372",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "330",
                "label": "ELIGIBILITY CRITERIA FOR LOCAL FEDERATIONS/FUNDS, AFFILIATED ORGANIZATIONS, AND LOCAL CHARITABLE ORGANIZATIONS"
            },
            "rule": {
                "number": "§330.5",
                "label": "Local Presence"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190505&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "190505",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) A charitable organization must maintain local presence, as described in this section, to be eligible to participate in a local campaign.(b) A local charitable organization maintains local presence if it:(1) provides direct or indirect health and human services; and(2) is accessible to state employees in the local campaign area by maintaining:(A) a publicly identified office with a professional or volunteer staff within the local campaign area that is open with staff available at least 20 hours a week during normal working hours; and(B) a locally listed telephone number which is listed in the name of the organization. If the office is closed, a message shall state local business hours and may offer another number for callers to obtain more information.(c) An office is deemed to be open under subsection (b)(2)(A) of this section if telephone callers to the office can speak to a live person and if visitors to the office can enter the office and speak to a member of the staff. Staff is deemed to be available under subsection (b)(2)(A) of this section if at least one staff member is answering phones and providing information as requested and is present in the office to assist visitors.(d) An office is publicly identified if there is external signage and the local address is listed in the local phone book.(e) The local employee committee (LEC) shall have the discretion to verify local presence, if the state policy committee has appointed an LEC.(f) In the absence of an LEC for the local campaign area, the SPC shall determine eligibility of organizations for participation in the local campaign.",
            "sourceNote": "Source Note: The provisions of this §330.5 adopted to be effective June 23, 2002, 27 TexReg 5210; amended to be effective December 4, 2014, 39 TexReg 9364."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190505&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "190505",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "330",
                "label": "ELIGIBILITY CRITERIA FOR LOCAL FEDERATIONS/FUNDS, AFFILIATED ORGANIZATIONS, AND LOCAL CHARITABLE ORGANIZATIONS"
            },
            "rule": {
                "number": "§330.7",
                "label": "Re-certification Requirements"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=123763&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "123763",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) To be eligible to participate in the State Employee Charitable Campaign and apply via the recertification process:(1) the local federation/fund and affiliates must have participated in the previous year's campaign; and(2) the local federation/fund and affiliates must have not spent more than 25% of its annual revenue for administrative and fund raising expenses in the prior year's campaign.(b) To participate in the State Employee Charitable Campaign via the re-certification process the local federation/fund must submit the following:(1) letter from the State Policy Committee stating eligibility to apply to the state employee charitable campaign via the re-certification process;(2) all documentation in compliance with §330.1 of this title (relating to Audit and Review Requirements); and(3) current operating budget.(c) To participate in the State Employee Charitable Campaign via the re-certification process, the affiliate charitable organization must submit the following:(1) letter from the State Policy Committee stating eligibility to apply to the state employee charitable campaign via the re-certification process; and(2) Internal Revenue Service (IRS) Form 990, specifically, all pages of the Form 990 preceding and including the signature pages, which shall contain the signature and attestation of the individual preparing the form. The form must be less than 18 months old.(d) To participate in the State Employee Charitable Campaign via the re-certification process the affiliate charitable organization must submit a full application to the local federation/fund.(e) A complete application with all documentation shall be maintained by the local federation/fund for 3 years after the date of application. The LEC or the SPC may conduct a random audit of any and all documentation prior to and subsequent to approval of the federation/fund or affiliate for any year's state employee charitable campaign.(f) Every third year, the local federation/fund will be required to submit a complete application for the federation/fund and affiliates.(g) A local unaffiliated charitable organization is not eligible to apply to the State Employee Charitable Campaign via the re-certification process at any time. A full application with all required documentation must be submitted each year.(h) Each re-certification application is subject to review and approval or rejection by the current State Policy Committee or Local Employee Committee, is subject to the rules then in effect, and can be denied for any of the reasons that a full application can be denied.",
            "sourceNote": "Source Note: The provisions of this §330.7 adopted to be effective March 16, 2006, 31 TexReg 1723; amended to be effective July 2, 2008, 33 TexReg 5025; amended to be effective December 4, 2014, 39 TexReg 9364; amended to be effective April 17, 2018, 43 TexReg 2284."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=123763&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "123763",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "330",
                "label": "ELIGIBILITY CRITERIA FOR LOCAL FEDERATIONS/FUNDS, AFFILIATED ORGANIZATIONS, AND LOCAL CHARITABLE ORGANIZATIONS"
            },
            "rule": {
                "number": "§330.9",
                "label": "Compliance Certification"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190507&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "190507",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "Any charitable organization applying to participate in the State Employee Charitable Campaign must be in compliance with all statutes, executive orders, and regulations restricting or prohibiting U.S. persons from engaging in transactions and dealings with countries, entities, or individuals subject to economic sanctions administered by the U.S. Department of the Treasury's Office of Foreign Assets Control. The organization named in the application is aware that a list of countries subject to such sanctions, a list of Specifically Designated Nationals, and Blocked Persons subject to such sanctions, and overviews and guidelines for each such sanction can be found at http://www.treas.gov/offices/enforcement/ofac/sanctions/. If the organization named on the application becomes noncompliant at any time subsequent to completing this certification, it will notify the State Policy Committee of the State Employee Charitable Campaign immediately.",
            "sourceNote": "Source Note: The provisions of this §330.9 adopted to be effective March 16, 2006, 31 TexReg 1723."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190507&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "190507",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "330",
                "label": "ELIGIBILITY CRITERIA FOR LOCAL FEDERATIONS/FUNDS, AFFILIATED ORGANIZATIONS, AND LOCAL CHARITABLE ORGANIZATIONS"
            },
            "rule": {
                "number": "§330.11",
                "label": "Limitation on the Use of Contributions"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190508&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "190508",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) To be eligible to participate in a state employee charitable campaign (SECC), a local charitable organization must affirm and provide sufficient documentation in its application demonstrating that it will use SECC contributions only to provide \"health and human services\" or to fund a charitable organization that provides \"health and human services\" as that term is defined in Government Code, §659.131. The State Policy Committee (SPC) or Local Employee Committee (LEC), as applicable, may deny a local charitable organization's application on the basis that sufficient documentation was not provided to demonstrate compliance with this section.(b) A participating charitable organization may not use SECC contributions to:(1) directly or indirectly fund litigation; or(2) make expenditures that would require the organization to register under Government Code, Chapter 305 if the organization were not an entity exempt from registration under that chapter.",
            "sourceNote": "Source Note: The provisions of this §330.11 adopted to be effective April 17, 2018, 43 TexReg 2285."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190508&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "190508",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "331",
                "label": "REVIEW AND APPEAL PROCEDURES FOR STATEWIDE FEDERATIONS/FUNDS AND AFFILIATED ORGANIZATIONS"
            },
            "rule": {
                "number": "§331.1",
                "label": "Administrative Review"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190509&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "190509",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The State Campaign Manager (SCM) will perform an administrative review of statewide applications. This is an administrative review only to determine whether applications are complete and contain the required documentation. The SCM will not decide whether an application is eligible for approval. Statewide federations that submit incomplete applications or missing documentation will be notified and provided a deadline within which to provide missing or corrected information. Only complete applications with all required documentation received by the deadline will be submitted to the State Policy Committee (SPC) for eligibility approval. Deadlines will be enforced; provided, however, that upon a showing of good cause, the SPC may grant a waiver or extension of any deadline by two-thirds vote of the committee members present. The SCM shall prepare a report of all applications that were not submitted to SPC for approval because of incomplete application or missing documentation. The report shall be provided to the SPC prior to the meeting during which other applications will be considered for approval.",
            "sourceNote": "Source Note: The provisions of this §331.1 adopted to be effective May 1, 2003, 28 TexReg 3518; amended to be effective March 10, 2005, 30 TexReg 1453; amended to be effective April 17, 2018, 43 TexReg 2285."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190509&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "190509",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "331",
                "label": "REVIEW AND APPEAL PROCEDURES FOR STATEWIDE FEDERATIONS/FUNDS AND AFFILIATED ORGANIZATIONS"
            },
            "rule": {
                "number": "§331.3",
                "label": "Eligibility Review"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148578&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148578",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The State Policy Committee (SPC) shall determine the eligibility of a federation or fund and its affiliated agencies for statewide participation in the state employee charitable campaign. In making its determination, the SPC shall consider whether the applicant:(1) has timely submitted all required application materials;(2) qualifies as a \"statewide charitable organization\" as that term is defined in Government Code, §659.131;(3) satisfies applicable eligibility criteria set forth under Chapter 329 of this title; and(4) satisfies other statutory and regulatory requirements prescribed by law.(b) Health and Human Services. The SPC construes the statutory definition of \"health and human services\" and applies that definition to determine the eligibility of a charitable organization to participate in the SECC campaign. The term \"health and human services\" is construed and applied in accordance with the structure and guidelines set forth in this paragraph. To qualify as \"health and human services\" the services provided must benefit the residents of this state and must consist of one or more of the following:(1) human care, which term includes health care, rehabilitation, restorative care, hospice care, respite care, and assistance with activities of daily living, and which includes physical, mental, and emotional assistance;(2) medical research or other research. The research must be in one or more of the following fields:(A) human health, which term includes physical, mental, and emotional wellbeing, and which includes various topics related to human health including, nutrition, wellness, exercise, disease, disorders, treatment, prevention of disease, and maintenance of health;(B) education, which term includes special education, pedagogy, assessments, promotion of literacy, and assessment for and treatment of learning disabilities;(C) social adjustment, which term includes an individual's ability to cope with standards, values, and needs of society and to adapt to a social environment; or(D) rehabilitation, which term includes restorative care and follow-up care in nursing homes, halfway houses, inpatient facilities and patients' homes;(3) relief for victims of natural disaster or other emergencies. Other emergencies refers to events and situations such as drought, fire, accidents, or epidemics, that may have an impact on the health, safety, or welfare of the general population or a specific segment of the population; or(4) assistance to impoverished individuals in need of food, shelter, clothing, or other basic needs. Basic needs may include such things as education-related services and goods for pre-K through 12th grade, special education services for people with disabilities, and adult literacy.(c) For purposes of the 25-word description, each part of a hyphenated term will count as a separate word. Applications that contain a description of more than 25 words will be denied approval by the SPC.",
            "sourceNote": "Source Note: The provisions of this §331.3 adopted to be effective March 10, 2005, 30 TexReg 1453; amended to be effective April 17, 2018, 43 TexReg 2286."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148578&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148578",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "331",
                "label": "REVIEW AND APPEAL PROCEDURES FOR STATEWIDE FEDERATIONS/FUNDS AND AFFILIATED ORGANIZATIONS"
            },
            "rule": {
                "number": "§331.5",
                "label": "Appeal Process"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190510&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "190510",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "No statewide federation or affiliate whose application was not complete will be considered for appeal by the State Employee Charitable Campaign Policy Committee (SPC). All appeals must be in writing and must be received in the state campaign manager's (SCM) office prior to the deadline set by the SCM. Appeals shall include the complete application originally submitted to the SPC and the letter of denial from the SPC. Electronic or faxed appeals will not be accepted.",
            "sourceNote": "Source Note: The provisions of this §331.5 adopted to be effective June 23, 2002, 27 TexReg 5211; amended to be effective July 2, 2008, 33 TexReg 5026; amended to be effective October 14, 2010, 35 TexReg 9109."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190510&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "190510",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "332",
                "label": "REVIEW AND APPEAL PROCEDURES FOR LOCAL FEDERATIONS/FUNDS, AFFILIATED ORGANIZATIONS, AND LOCAL CHARITABLE ORGANIZATIONS"
            },
            "rule": {
                "number": "§332.1",
                "label": "Administrative Review"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190511&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "190511",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The Local Campaign Manager (LCM) shall perform an administrative review of local applications and give local federations and organizations time to provide missing documentation prior to the Local Employee Committee eligibility review process. This is an administrative review only to determine the submission of all documentation. This review will make no determinations regarding eligibility. Local federations and organizations with missing documentation will be allowed time to provide needed documents. Only complete applications with all required documentation will be submitted to the Local Employee Committee for eligibility approval. Deadlines will be enforced; provided, however, that upon a showing of good cause, the LEC may grant a waiver or extension of any deadline by two-thirds vote of the committee members present. The LCM shall prepare a report of all applications that were not submitted to the LEC for approval because of incomplete application or missing documentation. The report shall be provided to the LEC prior to the meeting during which other applications will be considered for approval.",
            "sourceNote": "Source Note: The provisions of this §332.1 adopted to be effective June 23, 2002, 27 TexReg 5211; amended to be effective March 10, 2005, 30 TexReg 1454; amended to be effective July 2, 2008, 33 TexReg 5026; amended to be effective April 17, 2018, 43 TexReg 2287."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=190511&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "190511",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "332",
                "label": "REVIEW AND APPEAL PROCEDURES FOR LOCAL FEDERATIONS/FUNDS, AFFILIATED ORGANIZATIONS, AND LOCAL CHARITABLE ORGANIZATIONS"
            },
            "rule": {
                "number": "§332.3",
                "label": "Eligibility Review"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148579&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148579",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) The State Policy Committee (SPC), with the assistance of any applicable Local Employee Committee (LEC) appointed by the SPC, shall review applications submitted by local federations/funds, affiliated organizations, and other charitable organizations, and may approve an applicant for participation in a local campaign area only if the organization:(1) meets the definition of a \"local charitable organization\" as that term is defined in Government Code, §659.131; and(2) is either:(A) an unaffiliated local organization; or(B) a federation or fund or an affiliate of a federation or fund that is not approved for statewide participation.(b) The SPC or LEC, as applicable, shall determine the eligibility of a charitable organization for local participation in the state employee charitable campaign (SECC). In making this determination, the SPC or LEC shall consider whether the applicant:(1) has timely submitted all required application materials;(2) satisfies applicable eligibility criteria set forth under Chapter 330 of this title; and(3) satisfies other legal and regulatory requirements prescribed by law.(c) Health and Human Services. The SPC and the LEC construe the statutory definition of \"health and human services\" and apply that definition to determine the eligibility of a charitable organization to participate in the SECC campaign. The term \"health and human services\" is construed and applied in accordance with the structure and guidelines set forth in this paragraph. To qualify as \"health and human services\" the services provided must benefit the residents of this state and must consist of one or more of the following:(1) human care, which term includes health care, rehabilitation, restorative care, hospice care, respite care, and assistance with activities of daily living, and which includes physical, mental, and emotional assistance;(2) medical research or other research. The research must be in one or more of the following fields:(A) human health, which term includes physical, mental, and emotional wellbeing, and which includes various topics related to human health including, nutrition, wellness, exercise, disease, disorders, treatment, prevention of disease, and maintenance of health;(B) education, which term includes special education, pedagogy, assessments, promotion of literacy, and assessment for and treatment of learning disabilities;(C) social adjustment, which term includes an individual's ability to cope with standards, values, and needs of society and to adapt to a social environment; or(D) rehabilitation, which term includes restorative care and follow-up care in nursing homes, halfway houses, inpatient facilities and patients' homes;(3) relief for victims of natural disaster or other emergencies. Other emergencies refers to events and situations such as drought, fire, accidents, or epidemics, that may have an impact on the health, safety, or welfare of the general population or a specific segment of the population; or(4) assistance to impoverished individuals in need of food, shelter, clothing, or other basic needs. Basic needs may include such things as education-related services and goods for pre-K through 12th grade, special education services for people with disabilities, and adult literacy.(d) For purposes of the 25-word description, each part of a hyphenated term will count as a separate word. Applications that contain a description of more than 25 words will be denied approval by the LEC or the SPC, as applicable.",
            "sourceNote": "Source Note: The provisions of this §332.3 adopted to be effective March 10, 2005, 30 TexReg 1454; amended to be effective April 17, 2018, 43 TexReg 2287."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148579&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148579",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "332",
                "label": "REVIEW AND APPEAL PROCEDURES FOR LOCAL FEDERATIONS/FUNDS, AFFILIATED ORGANIZATIONS, AND LOCAL CHARITABLE ORGANIZATIONS"
            },
            "rule": {
                "number": "§332.5",
                "label": "Appeal Process"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148581&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "148581",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "All appeals from a Local Employee Committee regarding eligibility shall be made to the State Employee Charitable Campaign Policy Committee (SPC). No local federation, affiliate or local organization whose application was denied by the Local Employee Committee for incomplete documentation will be considered for appeal by the SPC. All appeals must be in writing and must be received in the state campaign manager's (SCM) office prior to the deadline set by the SCM. Appeals shall include the complete application originally submitted to the Local Employee Committee and the letter of denial from the Local Employee Committee. Electronic or faxed appeals will not be accepted.",
            "sourceNote": "Source Note: The provisions of this §332.5 adopted to be effective June 23, 2002, 27 TexReg 5211; amended to be effective July 2, 2008, 33 TexReg 5026; amended to be effective October 14, 2010, 35 TexReg 9109."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=148581&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "148581",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "333",
                "label": "CAMPAIGN MATERIALS"
            },
            "rule": {
                "number": "§333.1",
                "label": "Logo"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=101973&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "101973",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The only approved logo for the State Employee Charitable Campaign is the small State of Texas flag along with the words \"State Employee Charitable Campaign\" and \"Together We Care.\"",
            "sourceNote": "Source Note: The provisions of this §333.1 adopted to be effective June 23, 2002, 27 TexReg 5212; amended to be effective October 14, 2010, 35 TexReg 9110."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=101973&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "101973",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "333",
                "label": "CAMPAIGN MATERIALS"
            },
            "rule": {
                "number": "§333.3",
                "label": "Campaign Theme Submission"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=101974&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "101974",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Campaign managers may submit theme nominations every even numbered year on or before 10 business days prior to the annual State Employee Charitable Campaign (SECC) Workshop/Conference.(b) SECC Conference attendees, by vote, may choose no more than three themes to be forwarded to the State Advisory Committee (SAC) and State Employee Charitable Campaign Policy Committee (SPC) for consideration and approval. The SPC, after considering any SAC recommendation, may approve or reject some or all of the themes submitted. The SPC may approve up to three themes for use in the same campaign year. After considering any SAC recommendation, the SPC shall vote and choose one theme to be used for a central purchasing process, if such a process is provided by the state campaign manager (SCM).",
            "sourceNote": "Source Note: The provisions of this §333.3 adopted to be effective June 23, 2002, 27 TexReg 5212; amended to be effective May 1, 2003, 28 TexReg 3519."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=101974&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "101974",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "333",
                "label": "CAMPAIGN MATERIALS"
            },
            "rule": {
                "number": "§333.5",
                "label": "Use of Campaign Materials"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=123766&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "123766",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) If a central purchasing process is used, the state campaign manager (SCM) will order materials depicting only one of the themes approved by the State Employee Charitable Campaign Policy Committee (SPC).(b) Local campaign areas will have the option of using the campaign materials ordered through the central purchasing process or ordering their own campaign materials incorporating any one of the other approved themes, if any other themes are approved by the SPC.(c) Neither the State Advisory Committee (SAC) nor the SPC shall consider themes that are submitted after the deadline set forth in §333.3(a), regarding campaign theme submission.",
            "sourceNote": "Source Note: The provisions of this §333.5 adopted to be effective June 23, 2002, 27 TexReg 5212; amended to be effective May 1, 2003, 28 TexReg 3519."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=123766&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "123766",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "333",
                "label": "CAMPAIGN MATERIALS"
            },
            "rule": {
                "number": "§333.7",
                "label": "Campaign Materials Guidelines"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170376&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170376",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "(a) Local materials not ordered through the state campaign manager must be submitted each year to the State Advisory Committee (SAC) for recommendation to the State Policy Committee (SPC) for approval.(b) The following are guidelines for the creation and production of any materials used for the State Employee Charitable Campaign (SECC).(1) Campaign managers will submit possible themes every second year in January prior to the SECC Workshop/Conference.(2) Attendees will chose up to three themes, which will be submitted to the State Advisory Committee (SAC) and State Employee Charitable Campaign Policy Committee (SPC) for approval.(3) Based upon SAC recommendation and SPC approval, if central purchasing is available, the SCM will order materials depicting one of the approved themes, as decided upon by the SPC.(4) Local areas may use centrally purchased materials, or local areas may order their own materials incorporating any of the approved themes, if the local area submits samples, pictures, or adequate descriptions of those materials to the SAC, and if those materials are approved by the SPC.(5) All materials must include the SECC flag logo, as well as the approved theme.(c) The following are guidelines to be used for the creation and production of directories for the State Employee Charitable Campaign.(1) The cover of the directory must include one of the SPC approved themes.(2) The cover or back cover of the directory must include the SECC flag logo.(3) There are no restrictions on paper quality.(4) The directory may be printed in color or in black and white.(5) The general directory information and statewide federation listings that are available on-line must be used in the original format.(6) The directory listings must include a six-digit code, the name of charity (federations and affiliates must be included), a phone number, a description of the organization not to exceed 25 words in length, and administrative costs; a web address is optional, but is encouraged. The name of the charity that shall appear on the directory is the legal name of the charity as it is filed with the Secretary of State. However, the d/b/a/ name may appear on the directory instead, if the charity has a d/b/a/ name and if that d/b/a/ name appears in the appropriate place on the application that was approved by the SPC or the LEC. For purposes of the 25-word description, each part of a hyphenated term will count as a separate word. Materials that contain a description of more than 25 words will be denied approval by the SPC.(7) The font size and type must be consistent throughout the directory with no differentiation made between statewide and local charities.(8) The directory may be printed on paper that is 8-1/2 inches by 11 inches or 11 inches by 17 inches.(9) A suggested distribution ratio is one directory for each five state employees.(10) The list of statewide organizations will alternate with the list of local organizations in appearing first on the directory. If in one year the list of statewide organizations appears before the list of local organizations, the following year the list of local organizations will appear before the statewide organizations. Similarly, the list of local federations will alternate with the list of unaffiliated local organizations each year. Federations will be listed in alphabetical order within their respective sections in the directory.(d) If a mini-directory is used, the following guidelines will apply.(1) The cover of the mini-directory must include one of the SPC approved themes.(2) The cover or back cover of the mini-directory must include the SECC flag logo.(3) There are no restrictions on paper quality.(4) The mini-directory may be printed in color or in black and white.(5) General directory information is not required.(6) Listings must include a six-digit code and the name of the charity (federation and affiliates must be included). The name of the charity that shall appear on the directory is the legal name of the charity as it is filed with the Secretary of State. However, the d/b/a/ name may appear on the directory instead, if the charity has a d/b/a/ name and if that d/b/a/ name appears in the appropriate place on the application that was approved by the SPC or the LEC.(7) Font size and type must be consistent throughout directory with no differentiation made between statewide and local charities.(8) There are no size restrictions.(9) A suggested distribution ratio is one mini-directory for each state employee.(10) The list of statewide organizations will alternate with the list of local organizations in appearing first on the directory. If in one year the list of statewide organizations appears before the list of local organizations, the following year the list of local organizations will appear before the statewide organizations. Similarly, the list of local federations will alternate with the list of unaffiliated local organizations each year. Federations will be listed in alphabetical order within their respective sections in the directory.(e) The following are guidelines to be used for the creation and production of authorization forms (pledge form).(1) Only forms approved by the SPC and the comptroller may be used.(2) Any locally printed forms, such as scannable forms, on-line forms, and forms created or printed by institutions of higher education, must be submitted annually for recommendation by the SAC and approval by the SPC prior to their use. The SPC will not approve any forms that are not in compliance with the forms approved by the comptroller and the SPC.(f) The following are guidelines to be used for the creation of other campaign materials.(1) All items must include one of the SPC approved themes.(2) All items must include the SECC flag logo.(3) Any campaign materials not ordered through the state campaign manager central purchasing process, if such process is provided, must be submitted to the SAC for recommendation and to the SPC for approval.(4) any campaign materials not approved by the SPC are not eligible for campaign reimbursement.",
            "sourceNote": "Source Note: The provisions of this §333.7 adopted to be effective June 23, 2002, 27 TexReg 5212; amended to be effective May 1, 2003, 28 TexReg 3519; amended to be effective March 10, 2005, 30 TexReg 1455; amended to be effective March 16, 2006, 31 TexReg 1725."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170376&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170376",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "334",
                "label": "GRIEVANCE PROCEDURES"
            },
            "rule": {
                "number": "§334.1",
                "label": "Procedures for Grievances Involving Local Campaign Issues"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170375&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "170375",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "The State Employee Charitable Campaign (SECC) is conducted in accordance with state law, the comptroller's rules and State Employee Charitable Campaign Policy Committee (SPC) rules. While the SPC is responsible for oversight of the SECC and for insuring that the campaign is run fairly and equitably, the day-to-day oversight of the SECC in each local area rests with the SPC or with the Local Employee Committees (LEC) if the SPC appoints an LEC for that area. The SPC or the LEC, if appointed, is responsible for oversight of the local SECC to ensure that all campaign activities are conducted in accordance with state law and that they fairly and equitably promote unified solicitation on behalf of all participants. In order to expedite the handling of complaints and grievances pertaining to SECC and to ensure the input of all concerned parties, the grievance policy detailed in this section, shall be followed.(1) A state employee or charitable organization, including a federation/affiliate charity representative, may lodge a grievance pertaining to the conduct of the SECC at the local level or regarding an LEC, local campaign manager (LCM), or local charitable organization or local federation or fund. The grievance shall be submitted in writing to the LEC chair in whose area the grievance originates if an LEC has been appointed for the campaign area. If an LEC has not been appointed, the grievance may be submitted in writing to the SPC chair, by delivery to the address of the State Campaign Manager (SCM).(2) The chair of the LEC, or the SCM, as appropriate, shall provide a written response to the grievance within 10 business days.(3) If the aggrieved party has received no response within the specified time frame or is not satisfied with the response provided by the LEC, or, if there is no LEC, by the SCM, the aggrieved party may submit the grievance to the State Policy Committee by delivery to the address of the State Campaign Manager.(4) The grievance shall contain a copy of the original grievance submitted to the LEC and the LEC response. If the LEC failed to respond to the original grievance within the specified time frame, the failure to respond should be stated in the submission to the SPC.(5) Any grievance submitted to the SPC without first being submitted to the LEC, if an LEC has been appointed for that local campaign area, will not be acted upon but will be forwarded to the appropriate LEC for action.(6) A grievance properly received by the SPC will be reviewed and may be acted upon at the next scheduled SPC meeting, if possible.(7) A state employee who has a complaint about coercive activity in any part of the campaign should file a complaint with the comptroller's office in accordance with §5.48(w) of this title (relating to Deductions for Contributions to Charitable Organizations). The LCM and the SCM shall refer to the comptroller's office all complaints they receive relating to coercive activity in the campaign.",
            "sourceNote": "Source Note: The provisions of this §334.1 adopted to be effective June 23, 2002, 27 TexReg 5215; amended to be effective March 16, 2006, 31 TexReg 1725; amended to be effective December 4, 2014, 39 TexReg 9364."
        },
        {
            "currentUrl": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=170375&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
            "currentRecordId": "170375",
            "currentQueryAsDate": "03/11/2026",
            "title": {
                "number": "34",
                "label": "PUBLIC FINANCE"
            },
            "part": {
                "number": "12",
                "label": "STATE EMPLOYEE CHARITABLE CAMPAIGN"
            },
            "chapter": {
                "number": "334",
                "label": "GRIEVANCE PROCEDURES"
            },
            "rule": {
                "number": "§334.3",
                "label": "Procedures for Grievances Involving Statewide Campaign Issues"
            },
            "nextRule": {
                "href": "https://texas-sos.appianportalsgov.com/rules-and-meetings?recordId=130719&queryAsDate=03%2F11%2F2026&interface=VIEW_TAC_SUMMARY&$locale=en_US",
                "recordId": "130719",
                "queryAsDate": "03/11/2026"
            },
            "ruleBody": "State Employee Charitable Campaign (SECC) is conducted in accordance with state law, the comptroller's rules and SPC rules. The State Employee Charitable Campaign Policy Committee (SPC) is responsible for oversight of the SECC and for insuring that the campaign is run fairly and equitably. In order to expedite the handling of complaints and grievances pertaining to the SECC and to ensure input of all concerned parties, the grievance policy detailed in this section, shall be followed for grievances related to the statewide campaign. Grievances related to local campaign issues may be filed in accordance with §334.1 of this title (relating to Procedures for Grievances Involving Local Campaign Issues).(1) A state employee or charitable organization, including a federation/affiliate charity representative may lodge a grievance pertaining to the conduct of the SECC at the statewide level, regarding any SECC matter occurring at the statewide level, or regarding the SPC, the state campaign manager (SCM), or a statewide charitable organization, including a statewide federation or fund. Grievances shall be sent to the SPC by delivery to the address of the SCM.(2) The SCM shall respond, in writing, to the aggrieved party within 10 business days after receiving the grievance, to inform the grievant of the status of the grievance. The aggrieved party shall cooperate with the SPC to investigate the grievance. The decision of the SPC shall be final.(3) Any grievance submitted to the SPC may be referred to the appropriate LEC for review and action if the grievance concerns local issues.(4) A grievance properly received by the SPC will be reviewed and may be acted upon at the next scheduled SPC meeting, if possible.(5) A state employee who has a complaint about coercive activity in any part of the campaign should file a complaint with the comptroller's office in accordance with §5.48(w) of this title (relating to Deductions for Contributions to Charitable Organizations). The LCM and the SCM shall refer to the comptroller's office all complaints they receive relating to coercive activity in the campaign.",
            "sourceNote": "Source Note: The provisions of this §334.3 adopted to be effective June 23, 2002, 27 TexReg 5215; amended to be effective March 16, 2006, 31 TexReg 1725; amended to be effective December 4, 2014, 39 TexReg 9364."
        }
    ]
}