HB444 Alabama 2024 Session

Summary

Primary Sponsor

Marcus ParamoreRepresentative

Republican

Session

Regular Session 2024

Title

Pike County, further provides for City of Troy Investment Trust Fund

Summary

The bill creates the City of Troy Investment Trust Fund to manage old and new city funds from Edge Regional Medical Center proceeds, with investment rules and limited spending that requires voter approval for larger use.

What This Bill Does

It establishes the City of Troy Investment Trust Fund and transfers existing funds from the old city investment fund and Edge Regional Medical Center sale proceeds into it, with authority to receive additional sources over time. It sets investment rules to use US securities or government-backed investments, with the trustee acting on direction from authorized city officials. It requires that 90% of the fund’s income go to the City General Fund each year, while 10% stays in the fund as corpus, and spending from income is limited to 90% unless two-thirds of Troy voters approve broader spending. It also allows reimbursement to the City of Troy for future costs related to Edge Regional Medical Center from the fund’s income or corpus.

Who It Affects

• City of Troy government and residents: The city will control investment decisions through authorized representatives, receive most of the fund's income into the General Fund, and spending beyond the 90% income threshold requires a two-thirds vote by qualified electors.
• Edge Regional Medical Center-related costs and city finances: The city must be reimbursed for future costs arising from the operation or sale of Edge Regional Medical Center from the fund’s income or corpus.

Key Provisions

• Establishes the City of Troy Investment Trust Fund and defines key terms (Authorized Representative, City, Council, Fund, Permitted Investment, Trustee).
• Transfers existing funds from the old City of Troy Investment Fund (Ordinance No. 123, 1995) and proceeds from the Edge Regional Medical Center sale into the new fund, with potential future sources added by the City Council.
• Permitted investments include United States Securities, investments secured by a U.S. government agency, and other investments allowed by state law.
• Annual income: 90% paid to the City of Troy General Fund; 10% retained in the fund as corpus; only 90% of income may be spent unless two-thirds of qualified electors vote to allow more.
• If approved by two-thirds of qualified electors, any portion of the fund’s principal and earnings may be used for lawful purposes.
• The City shall be reimbursed for future costs related to the operation or sale of Edge Regional Medical Center from the fund’s income or corpus.
• Effective date: The act becomes effective October 1, 2024.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Pike County