| (a) Purpose. The comptroller is required by Government
Code, §403.1041, to administer the Tobacco Settlement Permanent
Trust Account (trust account) and manage the assets of the trust account
with the advice of and in consultation with the Tobacco Settlement
Permanent Trust Account Investment Advisory Committee (investment
advisory committee). The comptroller is also required to adopt rules
necessary to implement the comptroller's duties under Government Code, §403.1041,
including rules distinguishing the net earnings of the trust account
that may be distributed from earnings used for investment expenses
and from the money and assets that are the corpus of the trust account.
A rule adopted by the comptroller under this subsection must be submitted
to the investment advisory committee and may not become effective
before the investment advisory committee approves the rule. If the
investment advisory committee disapproves a proposed rule, the investment
advisory committee is required to provide the comptroller the specific
reasons that the rule was disapproved.
(b) Definitions. The following words and terms, when
used in this chapter, shall have the following meanings, unless the
context clearly indicates otherwise.
(1) Actual distribution amount--The amount determined
pursuant to §18.2 of this title (relating to Trust Account Distributions).
(2) Adjusted current earnings--Current earnings less
investment expenses.
(3) Average market value of the trust account--Calculated
using the most recent twenty (20) calendar quarter end market values.
(4) Corpus--The cumulative value of all contributions
to the trust account.
(5) Current earnings--The sum of interest and dividend
income, income from real estate and private equity investments, and
total returns produced by investments designated by the governing
investment policy as substitutes for fixed income earned by the trust
account during the calendar year.
(6) Investment advisory committee--The Tobacco Settlement
Permanent Trust Account Investment Advisory Committee as defined by
Government Code, §403.1041.
(7) Investment expenses--Investment related expenses,
not to exceed amounts established by the Texas Legislature, including,
but not limited to, custodial fees, and fees for investment management,
administration, investment consultants, or auditors.
(8) Investment Policy Statement--The Investment Policy
Statement - Texas Endowment Funds adopted by the Comptroller of Public
Accounts for endowments managed by the Texas Treasury Safekeeping
Trust Company.
(9) Net earnings--All appreciation and income generated
by the trust account.
(10) Political subdivision--The meaning assigned by
Government Code, §403.1041.
(11) Trust account--The Tobacco Settlement Permanent
Trust Account as defined by Government Code, §403.1041.
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| Source Note: The provisions of this §18.1 adopted to be effective November 16, 2000, 25 TexReg 11292; amended to be effective March 27, 2003, 28 TexReg 2618; amended to be effective March 6, 2006, 31 TexReg 1454; amended to be effective December 21, 2016, 41 TexReg 9939 |
