75R8219 RJA-D A JOINT RESOLUTION 1-1 proposing a constitutional amendment to extend the full faith and 1-2 credit of the state to support the Texas tomorrow fund. 1-3 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Article VII, Texas Constitution, is amended by 1-5 adding Section 19 to read as follows: 1-6 Sec. 19. TEXAS TOMORROW FUND. (a) The Texas tomorrow fund 1-7 is created as a trust fund dedicated to the prepayment of tuition 1-8 and fees for higher education as provided by the general laws of 1-9 this state for the prepaid higher education tuition program. The 1-10 assets of the fund are held in trust for the benefit of 1-11 participants and beneficiaries and may not be diverted. The state 1-12 shall hold the assets of the fund for the exclusive purposes of 1-13 providing benefits to participants and beneficiaries and defraying 1-14 reasonable expenses of administering the program. 1-15 (b) Financing of benefits must be based on sound actuarial 1-16 principles. The amount contributed by a person participating in 1-17 the prepaid higher education program shall be as provided by the 1-18 general laws of this state, but may not be less than the amount 1-19 anticipated for tuition and required fees based on sound actuarial 1-20 principles. If in any fiscal year there is not enough money in the 1-21 Texas tomorrow fund to pay the tuition and required fees of an 1-22 institution of higher education in which a beneficiary enrolls or 1-23 the appropriate portion of the tuition and required fees of a 1-24 private or independent institution of higher education in which a 1-25 beneficiary enrolls as provided by a prepaid tuition contract, 2-1 there is appropriated out of the first money coming into the state 2-2 treasury in each fiscal year not otherwise appropriated by the 2-3 constitution the amount that is sufficient to pay the applicable 2-4 amount of tuition and required fees of the institution. 2-5 (c) Assets of the fund may be invested by an entity 2-6 designated by general law in securities considered prudent 2-7 investments. Investments shall be made in the exercise of judgment 2-8 and care under the circumstances that a person of ordinary 2-9 prudence, discretion, and intelligence exercises in the management 2-10 of the person's affairs, not for speculation, but for the permanent 2-11 disposition of funds, considering the probable income from the 2-12 disposition as well as the probable safety of capital. 2-13 (d) The state comptroller of public accounts shall take the 2-14 actions necessary to implement this section. 2-15 (e) To the extent this section conflicts with any other 2-16 provision of this constitution, this section controls. 2-17 SECTION 2. This proposed constitutional amendment shall be 2-18 submitted to the voters at an election to be held November 4, 1997. 2-19 The ballot shall be printed to permit voting for or against the 2-20 proposition: "The constitutional amendment to encourage persons to 2-21 plan and save for young Texans' college education, to extend the 2-22 full faith and credit of the state to protect the Texas tomorrow 2-23 fund of the prepaid higher education tuition program, and to 2-24 establish the Texas tomorrow fund as a constitutionally protected 2-25 trust fund."