                                 CODE OF VIRGINIA

TOBACCO INDEMNIFICATION AND COMMUNITY REVITALIZATION ENDOWMENT (§ 3.2-3104)

A. There is hereby established in the state treasury a special fund to be
designated the &#8220;Tobacco Indemnification and Community Revitalization
Endowment.&#8221; The Endowment shall receive any proceeds from any sale of all
or any portion of the Commission Allocation, and any gifts, grants and
contributions that are specifically designated for inclusion in such Endowment.
No part of the Endowment, neither corpus nor income, or interest thereon, shall
revert to the general fund of the state treasury. The Endowment shall be under
the management and control of the Treasury Board, and the Treasury Board shall
have such powers and authority as may be necessary to exercise such management
and control consistent with the provisions of this section. The income of the
Endowment shall be paid out, not less than annually, to the Fund. In addition,
up to six percent of the corpus of the Endowment shall be paid to the Fund
annually upon request of the Commission, by majority vote, to the Treasury
Board. Upon two-thirds vote of the Commission, up to 10 percent of the corpus of
the Endowment shall be so paid. Upon three-fourths vote of the Commission, up to
15 percent of the corpus of the Endowment shall be so paid. No use of proceeds
shall be made that would cause bonds issued on a tax-exempt basis to be deemed
taxable. For purposes of this section, &#8220;income&#8221; of the Endowment
means at the time of determination the lesser of the available cash in, or the
realized investment income for the applicable period of, the Endowment, and
&#8220;corpus&#8221; of the Endowment means at the time of determination the sum
of the proceeds from the sale of all or any portion of the Commission
Allocation, any gifts, grants, and contributions that have been credited to such
Endowment, and any income not appropriated and withdrawn from the Endowment
prior to June 30 of each year, less withdrawals from the corpus. Determinations
by the Treasury Board, or the State Treasurer on behalf of the Treasury Board,
as to the amount of income or the amount of the corpus shall be conclusive.

B. The Treasury Board shall serve as trustee of the Endowment and the corpus and
income of the Endowment shall be withdrawn and credited to the Fund by order of
the Treasury Board as provided in subsection A. The State Treasurer shall be
custodian of the funds credited to the Endowment. The Treasury Board shall have
full power to invest and reinvest funds credited to the Endowment in accordance
with the provisions of the Uniform Prudent Management of Institutional Funds Act
(&#xA7; 64.2-1100 et seq.) and, in addition, as otherwise provided by law. The
Treasury Board may borrow money in such amounts as may be necessary whenever in
its judgment it would be more advantageous to borrow money than to sell
securities held for the Fund. Any debt so incurred may be evidenced by notes
duly authorized by resolution of the Treasury Board, such notes to be retired no
later than the end of the biennium in which such debt is incurred. The Treasury
Board may commingle, for purposes of investment, the corpus of the Endowment
provided that it shall appropriately account for the investments credited to the
Endowment. The Treasury Board may hire independent investment advisors and
managers as it deems appropriate to assist with investing the Endowment. The
expenses of making and disposing of investments, such as brokerage commissions,
legal expenses related to a particular transaction, investment advisory and
management fees and expenses, transfer taxes, and other customary transactional
expenses shall be payable out of the income of the Endowment.
			Not less than annually and more frequently if so desired by the Commission or
requested by the Treasury Board, the Commission shall provide to the Treasury
Board schedules of anticipated disbursements from the Fund for the current and
succeeding fiscal year, and the Treasury Board shall, to the extent practicable,
take into account such schedules and changes thereto in scheduling maturities
and redemptions of its investments of the Endowment.

HISTORY: 2002, cc. 482, 488, § 3.1-1109.1; 2008, cc. 184, 860; 2015, cc. 399,
433.