Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 18 - TOBACCO SETTLEMENT PERMANENT TRUST ACCOUNT › Section 18.1 - Purpose and Definitions

Current through Reg. 49, No. 28; July 12, 2024
(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.