SB451 Alabama 2013 Session

Summary

Primary Sponsor

Rodger SmithermanSenator

Democrat

Session

Regular Session 2013

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

This bill would allow transferring Penny Trust Fund money to health and education programs, set aside earnings for approved purposes, and strengthen how the fund is managed for disease prevention and public health in Alabama.

What This Bill Does

The bill would let the Comptroller move Penny Trust Fund money to the Department of Public Health for the Alabama Drug Assistance Program and similar programs, and to the State Board of Education for school health grants, based on applications from the State Health Officer and the State Superintendent of Education. It would dedicate public-health proceeds 50% to reducing infant mortality/child health and 50% to indigent health care, and require school-health funds to go to districts that apply and are approved, for disease-prevention projects. It would define earnings as 90% of the prior year’s earnings and expand the Penny Trust Fund Board’s duties, including grant review, investment policy, and annual reporting of funds eligible for payment, with an effective date of January 1, 2014.

Who It Affects

• State Health Officer — can apply to transfer Penny Trust Fund money to the Department of Public Health for drug assistance and related programs.
• State Superintendent of Education — can apply to transfer Penny Trust Fund money to the State Board of Education to fund school-system disease-prevention grants; funding is subject to board approval.
• Department of Public Health — would receive annual Penny Trust Fund money for programs like the Alabama Drug Assistance Program, with 50% allocated to infant mortality/child health and 50% to indigent health care.
• Public school systems (and related Alabama schools) — may receive Penny Trust Fund grants for disease-prevention programs, contingent on approved plans and board approval; funds must supplement, not replace, existing funds.
• Penny Trust Fund Board (Board of Control) — gains new authority to review proposals, award or deny grants, set investment policy, and inform education/health officials about funds available.
• State financial officers (Comptroller, State Treasurer, Director of Finance) — involved in annual fund transmissions and certifying grant amounts.

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; clarifies uses of funds.
• Allocates Penny Trust Fund proceeds dedicated to public health: 50% for programs to reduce infant mortality and/or improve child health, and 50% for indigent health care, subject to board approval.
• For school-health funds, requires disbursement to public school systems that apply for grants; the Comptroller transmits funds annually to the State Board of Education as certified by the board's secretary, and funds are sent to districts upon the State Superintendent’s application and board approval; expenditures must be for disease-prevention programs in approved plans.
• Caps the school-system expenditures to prevent disease in accordance with approved plans and prohibits using Penny Trust Fund funds to replace existing funds from other sources.
• Authorizes annual appropriations from the Penny Trust Fund’s accumulated earnings (unappropriated since 2012) to fund all board-approved proposals, per amounts certified by the State Treasurer to the Director of Finance.
• Defines 'earnings' as 90% of the prior fiscal year's earnings and outlines the Board of Control of the Penny Trust Fund composition and duties, including grant administration, investment policy development, and annual reporting of funds eligible for payment.
• Effective date: January 1, 2014.

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