By Wise H.B. No. 1591
75R2771 CAG-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the establishment of a trust fund to provide
1-3 scholarships to economically or educationally disadvantaged
1-4 students studying outside the United States.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Chapter 61, Education Code, is amended by adding
1-7 Subchapter S to read as follows:
1-8 SUBCHAPTER S. TRUST FUND FOR ECONOMICALLY OR EDUCATIONALLY
1-9 DISADVANTAGED STUDENTS STUDYING OUTSIDE THE UNITED STATES
1-10 Sec. 61.901. DEFINITION. In this subchapter, "fund" means
1-11 the trust fund for economically or educationally disadvantaged
1-12 students studying outside the United States.
1-13 Sec. 61.902. ESTABLISHMENT OF TRUST FUND. (a) The trust
1-14 fund for economically or educationally disadvantaged students
1-15 studying outside the United States is established. The fund is
1-16 outside the state treasury. The fund consists of:
1-17 (1) money acquired from private sources on behalf of
1-18 specified students;
1-19 (2) state appropriations for purposes of the fund;
1-20 (3) gifts and grants made to the fund; and
1-21 (4) the income from money deposited to the credit of
1-22 the fund.
1-23 (b) The board shall administer the assets of the fund. The
1-24 board is the trustee of the fund's assets. The board may appoint a
2-1 person to supervise the administration of the fund.
2-2 (c) The board shall deposit to the credit of a separate
2-3 account in the fund contributions from private sources on behalf of
2-4 a specified student. The income from the money in the student's
2-5 account shall be credited to the account.
2-6 (d) The legislature shall appropriate an amount of general
2-7 revenue to the fund, not to the credit of any student account, for
2-8 each biennium equal to the contributions made under Subsection (c)
2-9 for the preceding biennium.
2-10 Sec. 61.903. COMPTROLLER. (a) Except as provided by this
2-11 chapter, the comptroller is the custodian of the assets of the
2-12 fund.
2-13 (b) The comptroller shall pay money from the fund on a
2-14 warrant drawn by the comptroller supported only on a voucher signed
2-15 by the board or a person appointed by the board to supervise the
2-16 administration of the fund.
2-17 (c) The comptroller annually shall furnish to the board a
2-18 sworn statement of the amount of the fund's assets in the
2-19 comptroller's custody.
2-20 (d) The board may select one or more commercial banks,
2-21 depository trust companies, or other entities to serve as custodian
2-22 of all or part of the assets of the fund.
2-23 Sec. 61.904. INVESTMENT OF FUND ASSETS. (a) The board
2-24 shall invest the assets of the fund.
2-25 (b) The board may contract with private professional
2-26 investment managers to assist the board in investing the assets of
2-27 the fund.
3-1 (c) The board shall develop written investment objectives
3-2 concerning the investment of the assets of the fund. The
3-3 objectives may address desired rates of return, risks involved,
3-4 investment time frames, and any other relevant considerations.
3-5 (d) In investing the assets of the fund, the board shall
3-6 exercise the judgment and care, under the circumstances prevailing
3-7 at the time of the investment, that persons of ordinary prudence,
3-8 discretion, and intelligence exercise in the management of their
3-9 own affairs, not in speculation but when making a permanent
3-10 disposition of their money, considering the probable income from
3-11 the disposition and the probable safety of their capital.
3-12 Sec. 61.905. USE OF FUND. (a) The board shall use the
3-13 money in the fund to provide a scholarship to a student:
3-14 (1) who applies for a scholarship;
3-15 (2) who is a citizen of the United States and has
3-16 resided in this state for at least one year before the date the
3-17 student applies for a scholarship;
3-18 (3) who is economically or educationally
3-19 disadvantaged;
3-20 (4) who is enrolled in an internship for academic
3-21 credit at an institution of higher education under which the
3-22 student is to study outside the United States; and
3-23 (5) for whom an account in the fund has been
3-24 established under Section 61.902(c).
3-25 (b) The amount of the scholarship is the sum of:
3-26 (1) the amount in the account; and
3-27 (2) an additional amount from the portion of the fund
4-1 not credited to student accounts, equal to the lesser of:
4-2 (A) the amount in the account; or
4-3 (B) $5,000.
4-4 (c) If the portion of the fund not credited to student
4-5 accounts is insufficient to cover the portion of scholarships
4-6 computed under Subsection (b)(2) for an academic year, the board
4-7 shall allocate the available amount proportionally to the
4-8 scholarships awarded for that academic year.
4-9 (d) If the student does not qualify for a scholarship, the
4-10 board shall refund the money in the account to the source who
4-11 contributed it.
4-12 Sec. 61.906. RULES. The board shall adopt rules to
4-13 administer this subchapter, including rules relating to the
4-14 definition of economically or educationally disadvantaged students.
4-15 SECTION 2. This Act takes effect September 1, 1997.
4-16 SECTION 3. The importance of this legislation and the
4-17 crowded condition of the calendars in both houses create an
4-18 emergency and an imperative public necessity that the
4-19 constitutional rule requiring bills to be read on three several
4-20 days in each house be suspended, and this rule is hereby suspended.