- (a) A political subdivision may receive a pro rata share of the annual distribution by the Comptroller of Public Accounts (comptroller) under the agreement. The Texas Department of Health (department) will certify to the comptroller the percentage of the annual distribution that each political subdivision is eligible to receive. The comptroller is responsible for transmitting the payments to the eligible political subdivisions.
(b) The income earned through investment of the permanent trust account established under the agreement will be distributed for the first time in April 2001 and in April of each succeeding year.
- (1) Only the earnings of the account will be distributed. The corpus of the fund will remain in the permanent trust account.
(2) Payments into the permanent trust account are scheduled in the agreement as follows:
- (A) January 3, 2000 - $501.5 million;
- (B) January 2, 2001 - $551.5 million;
- (C) January 2, 2002 - $551.5 million; and
- (D) January 2, 2003 - $201.4 million.
(c) The corpus of the lump sum trust account established under the agreement will be distributed in April 2000 and April 2001.
- (1) The April 2001 lump sum distribution will be combined with the distribution of the first year's earnings from the permanent trust account.
(2) Payments into the lump sum trust account are scheduled in the agreement as follows:
- (A) January 3, 2000 - $100 million; and
- (B) January 2, 2001 - $50 million.
- (d) A political subdivision that receives a pro rata share of the annual distribution has sole authority over the expenditure of those funds. The agreement does not require a political subdivision to expend any portion of the distribution for a specified purpose; however, any portion of the distribution expended for unreimbursed health care expenditures in a calendar year may be counted toward the political subdivision's pro rata share of the annual distribution in the subsequent year.
Source Note:The provisions of this §102.2 adopted to be effective February 3, 2000, 25 TexReg 579.