By Stiles                                        H.J.R. No. 8

      75R5938 RJA-F                           

                                 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 support the Texas tomorrow

2-24     fund of the prepaid higher education tuition program, and to create

2-25     the Texas tomorrow fund as a constitutional trust fund."