TITLE 34.PUBLIC FINANCE

Part 1. COMPTROLLER OF PUBLIC ACCOUNTS

Chapter 18. TOBACCO SETTLEMENT PERMANENT TRUST ACCOUNT

34 TAC §§18.1 - 18.8

The Comptroller of Public Accounts adopts amendments to §§18.1-18.8, concerning the administration and management of the assets of the Tobacco Settlement Permanent Trust Account and the distribution formula, without changes to the proposed text as published in the January 31, 2003, issue of the Texas Register (28 TexReg 905). The purposes of the amendments are as follows:

First, the amendment to the definitions in §18.1 will reflect changes intended to protect and grow the corpus, to stabilize and grow distributions over time and to address deposits into the distribution stabilization account.

Second, the amendment to §18.2 will outline distribution objectives and change the distribution formula to stabilize and grow distributions over time.

Third, the amendment to §18.8 will amend the termination clause and provide for an annual review by the comptroller.

Fourth, amendments to §§18.3-18.8 will make technical and non-substantive improvements to the sections.

No comments were received regarding adoption of the amendments.

The amendments are adopted under Government Code, §403.1041(h), which authorizes the comptroller to adopt rules related to the management and implementation of the Tobacco Settlement Permanent Trust Account.

The amendments implement Government Code, §403.1041(h).

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 7, 2003.

TRD-200301612

Martin Cherry

Chief Deputy General Counsel

Comptroller of Public Accounts

Effective date: March 27, 2003

Proposal publication date: January 31, 2003

For further information, please call: (512) 475-0387