The Penny Trust Fund
The Penny Trust Fund is a permanent trust fund approved by the voters of Alabama to provide for public health initiatives and health-related public school programs. It is codified in the Code of Alabama, 1975, in Title 41, Chapter 15A. Contributions to the Penny Trust Fund are tax-deductible.
Creation of the Penny Trust Fund
Amendment 512 of
the Constitution of Alabama created the Penny Trust Fund. It states:
(a) There shall be
established and maintained the "penny trust fund" within the
state treasury to promote the public health and the public schools.
Citizens may make voluntary donations to the penny trust fund. All
donations and funds received shall be held in perpetual trust and shall
not be subject to legislative appropriation or otherwise expended.
including accrued interest and dividends, shall be retained in the penny
trust fund, not subject to appropriation until the state treasurer
certifies that sufficient moneys exist in the Fund or until the fiscal
year which begins in 2000, whichever comes first; then and afterward,
only 90 percent of the prior fiscal year's earnings to be subject to
appropriation. Capital gains taken on the sale of any securities shall
revert to the principal of the penny trust fund.
(c) Funds in the
penny trust fund are to be managed and invested by the state treasurer
who may receive funds from any source not prohibited by law.
(d) Fifty percent
of the earnings subject to appropriation shall be dedicated to the
programs and projects which promote the public health, and 50 percent
dedicated to the public schools.
(e) The legislature
shall have power to implement this amendment by appropriate legislation.