SBW H.B. 8 75(R)BILL ANALYSIS


PENSIONS & INVESTMENTS
H.B. 8
By: Stiles
3-5-97
Committee Report (Amended)



BACKGROUND 

The 74th Legislature created the Texas Tomorrow Fund, which is a prepaid
higher education tuition program. This program allows the purchaser to
enter a contract to prepay the tuition and fees for the purchaser's
beneficiary to attend a public institution of higher education. The fund
assets are not currently guaranteed by the state constitution.  Other
investment funds that are guaranteed are the Employee Retirement System,
Teacher Retirement System, Permanent University Fund and the Permanent
School Fund. 


PURPOSE

This constitutional amendment would extend the stat's full faith and
credit to the Texas Tomorrow Fund. 


RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 54.619(g), Education Code to provide that in
any given fiscal year money to pay tuition and fees of a higher
institution of learning of a beneficiary will be paid by the comptroller
by transferring the first money coming into the state treasury to the fund
if there is not enough in the fund to pay. 

SECTION 2.  Effective date takes place on the date that constitutional
amendment proposed by __ J.R. No.__ takes effect.  If the voters do not
approve the amendment, the Act has no effect. 

SECTION 3.  Emergency Clause.

EXPLANATION OF AMENDMENTS

For clarity, the committee adopted Committee Amendment 1 to state that in
SECTION 2, the constitutional amendment referred to is HJR 8 replacing the
blanks in the bill.