By Wise H.B. No. 470 76R2284 CAG-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the establishment of a trust fund to provide 1-3 scholarships to economically or educationally disadvantaged 1-4 students studying outside the United States. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Chapter 61, Education Code, is amended by adding 1-7 Subchapter U to read as follows: 1-8 SUBCHAPTER U. TRUST FUND FOR SCHOLARSHIPS FOR 1-9 DISADVANTAGED STUDENTS STUDYING OUTSIDE THE UNITED STATES 1-10 Sec. 61.901. DEFINITION. In this subchapter, "fund" means 1-11 the trust fund for economically or educationally disadvantaged 1-12 students studying outside the United States. 1-13 Sec. 61.902. ESTABLISHMENT OF TRUST FUND. (a) The trust 1-14 fund for economically or educationally disadvantaged students 1-15 studying outside the United States is established. The fund is 1-16 outside the state treasury. The fund consists of: 1-17 (1) money acquired from private sources on behalf of 1-18 specified students; 1-19 (2) state appropriations to the fund; 1-20 (3) gifts and grants made to the fund; and 1-21 (4) the income from money deposited to the credit of 1-22 the fund. 1-23 (b) The board shall administer the assets of the fund. The 1-24 board is the trustee of the fund's assets. The board may appoint a 2-1 person to supervise the administration of the fund. 2-2 (c) The board shall deposit to the credit of a separate 2-3 account in the fund contributions from private sources on behalf of 2-4 a specified student. The income from the money in the student's 2-5 account shall be credited to the account. 2-6 (d) The legislature shall appropriate an amount of general 2-7 revenue to the fund, not to the credit of any student account, for 2-8 each biennium equal to the contributions made under Subsection (c) 2-9 for the preceding biennium. 2-10 Sec. 61.903. COMPTROLLER. (a) Except as otherwise provided 2-11 by this subchapter, the comptroller is the custodian of the assets 2-12 of the fund. 2-13 (b) The comptroller shall pay money from the fund on a 2-14 warrant drawn by the comptroller supported only on a voucher signed 2-15 by the board or a person appointed by the board to supervise the 2-16 administration of the fund. 2-17 (c) The comptroller annually and at other times on request 2-18 of the board shall furnish to the board a sworn statement of the 2-19 amount of the fund's assets in the comptroller's custody. 2-20 (d) The board may select one or more commercial banks, 2-21 depository trust companies, or other entities to serve as custodian 2-22 of all or part of the assets of the fund. 2-23 Sec. 61.904. INVESTMENT OF FUND ASSETS. (a) The board 2-24 shall invest the assets of the fund. 2-25 (b) The board may contract with private professional 2-26 investment managers to assist the board in investing the assets of 2-27 the fund. 3-1 (c) The board shall develop written investment objectives 3-2 concerning the investment of the assets of the fund. The 3-3 objectives may address desired rates of return, risks involved, 3-4 investment time frames, and any other relevant considerations. 3-5 (d) In investing the assets of the fund, the board shall 3-6 exercise the judgment and care, under the circumstances prevailing 3-7 at the time of the investment, that persons of ordinary prudence, 3-8 discretion, and intelligence exercise in the management of their 3-9 own affairs, not in speculation but when making a permanent 3-10 disposition of their money, considering the probable income from 3-11 the disposition and the probable safety of their capital. 3-12 Sec. 61.905. USE OF FUND. (a) The board shall use the 3-13 money in the fund to provide a scholarship to a student: 3-14 (1) who applies for a scholarship; 3-15 (2) who is a citizen of the United States and has 3-16 resided in this state for at least one year before the date the 3-17 student applies for a scholarship; 3-18 (3) who is economically or educationally 3-19 disadvantaged; 3-20 (4) who is enrolled in an internship for academic 3-21 credit at an institution of higher education under which the 3-22 student is to study outside the United States; and 3-23 (5) for whom an account in the fund has been 3-24 established under Section 61.902(c). 3-25 (b) The amount of the scholarship is the sum of: 3-26 (1) the amount in the account; and 3-27 (2) an additional amount from the portion of the fund 4-1 not credited to student accounts, equal to the lesser of: 4-2 (A) the amount in the account; or 4-3 (B) $5,000. 4-4 (c) If the portion of the fund not credited to student 4-5 accounts is insufficient to cover the portion of scholarships 4-6 computed under Subsection (b)(2) for an academic year, the board 4-7 shall allocate the available amount proportionally to the 4-8 scholarships awarded for that academic year. 4-9 (d) If the student does not qualify for a scholarship, the 4-10 board shall refund the money in the account to the source that 4-11 contributed it. 4-12 Sec. 61.906. RULES. The board shall adopt rules to 4-13 administer this subchapter, including rules relating to the 4-14 definition of economically or educationally disadvantaged students. 4-15 SECTION 2. This Act takes effect September 1, 1999. 4-16 SECTION 3. The importance of this legislation and the 4-17 crowded condition of the calendars in both houses create an 4-18 emergency and an imperative public necessity that the 4-19 constitutional rule requiring bills to be read on three several 4-20 days in each house be suspended, and this rule is hereby suspended.