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 2-1 beneficiary enrolls as provided by a prepaid tuition contract, 2-2 there is appropriated out of the first money coming into the state 2-3 treasury in each fiscal year not otherwise appropriated by the 2-4 constitution the amount that is sufficient to pay the applicable 2-5 amount of tuition and required fees of the institution. 2-6 (c) Assets of the fund may be invested by an entity 2-7 designated by general law in securities considered prudent 2-8 investments. Investments shall be made in the exercise of judgment 2-9 and care under the circumstances that a person of ordinary 2-10 prudence, discretion, and intelligence exercises in the management 2-11 of the person's affairs, not for speculation, but for the permanent 2-12 disposition of funds, considering the probable income from the 2-13 disposition as well as the probable safety of capital. 2-14 (d) The state comptroller of public accounts shall take the 2-15 actions necessary to implement this section. 2-16 (e) To the extent this section conflicts with any other 2-17 provision of this constitution, this section controls. 2-18 SECTION 2. This proposed constitutional amendment shall be 2-19 submitted to the voters at an election to be held November 4, 1997. 2-20 The ballot shall be printed to permit voting for or against the 2-21 proposition: "The constitutional amendment to encourage persons to 2-22 plan and save for young Texans' college education, to extend the 2-23 full faith and credit of the state to protect the Texas tomorrow 2-24 fund of the prepaid higher education tuition program, and to 2-25 establish the Texas tomorrow fund as a constitutionally protected 2-26 trust fund." _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.J.R. No. 8 was passed by the House on March 10, 1997, by the following vote: Yeas 120, Nays 24, 1 present, not voting. _______________________________ Chief Clerk of the House I certify that H.J.R. No. 8 was passed by the Senate on May 7, 1997, by the following vote: Yeas 21, Nays 9, 1 present, not voting. _______________________________ Secretary of the Senate RECEIVED: _____________________ Date _____________________ Secretary of State