By Wilson                                             H.J.R. No. 77
         77R8192 JSA-D                           
                                 A JOINT RESOLUTION
 1-1     proposing a constitutional amendment to restore the traditional
 1-2     prudent person standard for investment of the permanent university
 1-3     fund.
 1-4           BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 11b, Article VII, Texas Constitution, is
 1-6     amended to read as follows:
 1-7           Sec. 11b.  Notwithstanding any other provision of this
 1-8     constitution, in managing the assets of the permanent university
 1-9     fund, the Board of Regents of the University of Texas System may
1-10     acquire, exchange, sell, supervise, manage, or retain, through
1-11     procedures and subject to restrictions it establishes and in
1-12     amounts it considers appropriate, any kind of investment, including
1-13     investments in the Texas Growth Fund created by Article XVI,
1-14     Section 70, of this constitution, that persons of ordinary
1-15     prudence, discretion, and intelligence, exercising the judgment and
1-16     care under the circumstances then prevailing, acquire or retain for
1-17     their own account in the management of their affairs, not in regard
1-18     to speculation but in regard to the permanent disposition of their
1-19     funds, considering the probable income as well as the probable
1-20     safety of their capital [prudent investors, exercising reasonable
1-21     care, skill, and caution, would acquire or retain in light of the
1-22     purposes, terms, distribution requirements, and other circumstances
1-23     of the fund then prevailing, taking into consideration the
1-24     investment of all the assets of the fund rather than a single
 2-1     investment].
 2-2           SECTION 2. This proposed constitutional amendment shall be
 2-3     submitted to the voters at an election to be held November 6, 2001.
 2-4     The ballot shall be printed to permit voting for or against the
 2-5     proposition: "The constitutional amendment to restore the
 2-6     traditional prudent person standard for investment of the permanent
 2-7     university fund."