2006 Code of Virginia § 3.1-1109.1 - Tobacco Indemnification and Community Revitalization Endowment

3.1-1109.1. Tobacco Indemnification and Community Revitalization Endowment.

A. There is hereby established in the state treasury a special fund to bedesignated the "Tobacco Indemnification and Community RevitalizationEndowment" (the "Endowment"). The Endowment shall receive any proceedsfrom any sale of all or any portion of the Commission Allocation, and anygifts, grants and contributions that are specifically designated forinclusion in such Endowment. No part of the Endowment, neither corpus norincome, or interest thereon, shall revert to the general fund of the statetreasury. The Endowment shall be under the management and control of theTreasury Board, and the Treasury Board shall have such powers and authorityas may be necessary to exercise such management and control consistent withthe provisions of this section. The income of the Endowment shall be paidout, not less than annually, to the Fund. In addition, up to ten percent ofthe corpus of the Endowment shall be paid to the Fund annually upon requestof the Commission to the Treasury Board; provided, however, that upontwo-thirds vote of the Commission, up to fifteen percent of the corpus of theEndowment shall be so paid. No use of proceeds shall be made that would causebonds issued on a tax-exempt basis to be deemed taxable. For purposes of thissection, "income" of the Endowment means at the time of determination thelesser of the available cash in, or the realized investment income for theapplicable period of, the Endowment, and "corpus" of the Endowment means atthe time of determination the sum of the proceeds from the sale of all or anyportion of the Commission Allocation, any gifts, grants and contributionsthat have been credited to such Endowment, and any income not appropriatedand withdrawn from the Endowment prior to June 30 of each year, lesswithdrawals from the corpus. Determinations by the Treasury Board, or theState Treasurer on behalf of the Treasury Board, as to the amount of incomeor the amount of the corpus shall be conclusive.

B. The Treasury Board shall serve as trustee of the Endowment and the corpusand income of the Endowment shall be withdrawn and credited to the Fund byorder of the Treasury Board as provided in subsection A. The State Treasurershall be custodian of the funds credited to the Endowment. The Treasury Boardshall have full power to invest and reinvest funds credited to the Endowmentin accordance with the provisions of the Uniform Management of InstitutionalFunds Act ( 55-268.1 et seq.) and, in addition, as otherwise provided bylaw. The Treasury Board may borrow money in such amounts as may be necessarywhenever in its judgment it would be more advantageous to borrow money thanto sell securities held for the Fund. Any debt so incurred may be evidencedby notes duly authorized by resolution of the Treasury Board, such notes tobe retired no later than the end of the biennium in which such debt isincurred. The Treasury Board may commingle, for purposes of investment, thecorpus of the Endowment provided that it shall appropriately account for theinvestments credited to the Endowment. The Treasury Board may hireindependent investment advisors and managers as it deems appropriate toassist with investing the Endowment. The expenses of making and disposing ofinvestments, such as brokerage commissions, legal expenses related to aparticular transaction, investment advisory and management fees and expenses,transfer taxes and other customary transactional expenses shall be payableout of the income of the Endowment.

Not less than annually and more frequently if so desired by the Commission orrequested by the Treasury Board, the Commission shall provide to the TreasuryBoard schedules of anticipated disbursements from the Fund for the currentand succeeding fiscal year, and the Treasury Board shall, to the extentpracticable, take into account such schedules and changes thereto inscheduling maturities and redemptions of its investments of the Endowment.

(2002, cc. 482, 488.)