1-1 By: Stiles, et al. (Senate Sponsor - Barrientos) H.J.R. No. 8 1-2 (In the Senate - Received from the House March 19, 1997; 1-3 March 24, 1997, read first time and referred to Committee on 1-4 Finance; April 25, 1997, reported favorably by the following vote: 1-5 Yeas 10, Nays 2; April 25, 1997, sent to printer.) 1-6 HOUSE JOINT RESOLUTION 1-7 proposing a constitutional amendment to extend the full faith and 1-8 credit of the state to support the Texas tomorrow fund. 1-9 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-10 SECTION 1. Article VII, Texas Constitution, is amended by 1-11 adding Section 19 to read as follows: 1-12 Sec. 19. TEXAS TOMORROW FUND. (a) The Texas tomorrow fund 1-13 is created as a trust fund dedicated to the prepayment of tuition 1-14 and fees for higher education as provided by the general laws of 1-15 this state for the prepaid higher education tuition program. The 1-16 assets of the fund are held in trust for the benefit of 1-17 participants and beneficiaries and may not be diverted. The state 1-18 shall hold the assets of the fund for the exclusive purposes of 1-19 providing benefits to participants and beneficiaries and defraying 1-20 reasonable expenses of administering the program. 1-21 (b) Financing of benefits must be based on sound actuarial 1-22 principles. The amount contributed by a person participating in 1-23 the prepaid higher education program shall be as provided by the 1-24 general laws of this state, but may not be less than the amount 1-25 anticipated for tuition and required fees based on sound actuarial 1-26 principles. If in any fiscal year there is not enough money in the 1-27 Texas tomorrow fund to pay the tuition and required fees of an 1-28 institution of higher education in which a beneficiary enrolls or 1-29 the appropriate portion of the tuition and required fees of a 1-30 private or independent institution of higher education in which a 1-31 beneficiary enrolls as provided by a prepaid tuition contract, 1-32 there is appropriated out of the first money coming into the state 1-33 treasury in each fiscal year not otherwise appropriated by the 1-34 constitution the amount that is sufficient to pay the applicable 1-35 amount of tuition and required fees of the institution. 1-36 (c) Assets of the fund may be invested by an entity 1-37 designated by general law in securities considered prudent 1-38 investments. Investments shall be made in the exercise of judgment 1-39 and care under the circumstances that a person of ordinary 1-40 prudence, discretion, and intelligence exercises in the management 1-41 of the person's affairs, not for speculation, but for the permanent 1-42 disposition of funds, considering the probable income from the 1-43 disposition as well as the probable safety of capital. 1-44 (d) The state comptroller of public accounts shall take the 1-45 actions necessary to implement this section. 1-46 (e) To the extent this section conflicts with any other 1-47 provision of this constitution, this section controls. 1-48 SECTION 2. This proposed constitutional amendment shall be 1-49 submitted to the voters at an election to be held November 4, 1997. 1-50 The ballot shall be printed to permit voting for or against the 1-51 proposition: "The constitutional amendment to encourage persons to 1-52 plan and save for young Texans' college education, to extend the 1-53 full faith and credit of the state to protect the Texas tomorrow 1-54 fund of the prepaid higher education tuition program, and to 1-55 establish the Texas tomorrow fund as a constitutionally protected 1-56 trust fund." 1-57 * * * * *