SB406 Alabama 2012 Session

Summary

Primary Sponsor

George M. “Marc” Keahey

Democrat

Session

Regular Session 2012

Title

Penny Trust Fund (PTF), Comptroller authorized to transmit funds from PTF to State Board of Education, Secs. 41-15A-2, 41-15A-6 am'd

Summary

SB406 would let the Comptroller move Penny Trust Fund money to health and education agencies on request, clarify how the money is used, and update how the fund is governed and viewed as earnings.

What This Bill Does

If enacted, the Comptroller could transfer Penny Trust Fund proceeds annually to the Department of Public Health at the State Health Officer’s request and to the State Board of Education at the State Superintendent’s request, with board approval. Half of the health-related funds would go to programs reducing infant mortality or improving child health, and the other half to indigent health care. Public school funds would be disbursed only to school systems that apply for grants and are approved by the board, to support disease prevention programs in schools, without replacing existing funding. The bill also defines earnings and updates the Board of Control’s duties to oversee grants, investment policy, and annual reporting of funds eligible for payment, in line with Amendment 512 of the Alabama Constitution.

Who It Affects

• Department of Public Health and the State Health Officer would receive Penny Trust Fund proceeds and determine how they are used for child health and related programs.
• Public school systems, the State Board of Education, and the State Superintendent of Education would apply for and receive grants from the Penny Trust Fund to fund disease prevention programs in public schools.

Key Provisions

• Authorizes the Comptroller to transmit Penny Trust Fund proceeds to the Department of Public Health upon the State Health Officer's application and to the State Board of Education upon the State Superintendent of Education's application, with annual transfers.
• Allocates Penny Trust Fund proceeds dedicated to public health of children: 50% for programs to reduce infant mortality and/or improve child health, and 50% for indigent health care.
• Disburses funds for public school health efforts only to school systems that apply for grants and are approved by the board; funds are sent to the State Board of Education to implement approved grants and then to the school systems; expenditures must be for disease prevention and not replace existing funding.
• Appropriates earnings from the Penny Trust Fund for the purposes authorized by Amendment 512 of the Alabama Constitution of 1901.
• Defines earnings as ninety percent of the prior fiscal year's earnings and updates the duties and composition of the Board of Control of the Penny Trust Fund, including grant oversight, investment policy development, and annual reporting of funds available for payment.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Education, State Board