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."

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