Management and disbursement of assets and earnings.
(a) Investment by the TRS. All gifts, grants, devises, and bequests to the foundation whether from individuals, associations, corporations, companies, or governmental entities, including local boards of education, shall be deposited by the foundation with the Teachers' Retirement System of Alabama. The retirement system shall invest and reinvest such donations and all income therefrom using the same guidelines used for its own monies. The foundation shall insure that the retirement system maintains such records as to separately account for the foundation's monies, both the principal sum deposited and investment income by school system or trust fund, as the case may be. The foundation shall be responsible for authorizing the retirement system to make disbursements of investment income to pay administrative expenses and for investment or reinvestment.
(b) Withdrawals, reinvestment of earnings, expenditure restrictions. Any school system or recognized trust fund may withdraw annually up to 80 percent of the investment income generated from any account held by the Teachers' Retirement System for the foundation in its name; however, the minimum eligible investment income distribution shall be at least five hundred dollars ($500) annually. Should a trust fund request a withdrawal of more than 80 percent of its investment income in any year, the Board of Control shall establish and charge an appropriate and reasonable administrative fee. Any monies withdrawn by a school system may be expended for classroom supplies or equipment, equipment for science or mathematics laboratories, vocational equipment, computer hardware or software, or any other equipment or supplies directly related to student instruction. Any monies withdrawn by a trust fund may be expended for the benefit of the public schools, for scholarships, or as otherwise stipulated for public education as provided by the trust fund's board of trustees. Should any question arise about a school system's expenditure, the question shall first be placed before the secretary of the foundation for his or her decision. Disagreements with the secretary's decision may be appealed to the Board of Control and the decision of the board shall be final. None of the school system's funds may be expended for salaries, maintenance of the physical plant, or the ordinary operating expenses of a school system. Twenty percent of the income for each account shall be transferred annually by the Teachers' Retirement System to the principal sum so as to create a perpetual trust for the benefit of the school system or trust fund, as the case may be. Any income eligible for disbursement which is not withdrawn at the end of the year shall be transferred to the principal sum. Any capital gains from investment shall become a part of the principal sum.
(c) Withdrawal timelines and procedures. Any school system wishing to make a withdrawal of its account's investment income shall make the request on the appropriate authorized form. The local superintendent shall have approval authority for all withdrawal requests from the school system's account, subject to review by the local school board. Requests for withdrawals from the trust fund's account shall be made by the trust fund's president or chairperson, subject to review and approval by the trust fund's board. All requests for withdrawal shall be made only once annually. The treasurer shall disburse once annually the investment income approved by the foundation as soon as practical. Investment income which is not withdrawn but carried over from year to year in the account of a school system shall be retained in the school system's account to be expended as provided in this chapter. A trust fund may, at its discretion, withdraw any or all of its investment income assets upon prior notification to the treasurer. The prior notification of the withdrawal of the trust fund's investment income from the trust fund shall be made by the chairperson of the trust fund, with proper documentation of authorization from the trust fund's board of trustees, and the prior notification shall consist of at least six months. The treasurer of the foundation may waive the notification period in unusual circumstances.
(d) Principal sum refunded to school systems upon petition. Should a local school system deposit any principal sum to the foundation, the Teachers' Retirement System shall receive and invest the monies as provided in this chapter, but the treasurer shall refund to the local school system the principal sum deposited upon petition by the board making the deposit. However, the principal sum shall be retained and invested by the Teachers' Retirement System for at least five years after initial receipt of the deposit before any petition for refund is granted by the treasurer, unless the treasurer grants a waiver due to unusual circumstances. If a petition for a refund of the principal sum is submitted by a school system, only the principal sum deposited emanating from the local school system shall be eligible to be refunded. All other deposits shall be ineligible to be refunded. The previously earned investment income shall remain in the foundation to the credit of the designated school system and remain subject to the provisions of this chapter.
(e) Principal sum and interest returned to trust funds upon petition. Should a trust fund deposit any principal sum to the foundation, the Teachers' Retirement System shall receive and invest the monies as provided in this chapter. In the event that the board of the trust fund making a deposit desires a refund of its monies, the board shall file a petition for refund with the treasurer. The principal sum deposited emanating from the trust fund, together with all investment income, shall be refunded to the trust fund at the request of the board. If the petition for refund is filed within five years from the date of the initial deposit of the principal sum, the treasurer may withhold from such refund monies an amount equal to the amount of any penalties paid by the Teachers' Retirement System for the early withdrawal of such monies. If a petition for a refund of the principal sum is submitted by a trust fund, only the principal sum deposited emanating from the trust fund shall be eligible to be refunded unless the trust fund specifically requests that part or all of the investment income also is to be withdrawn. Unless so stipulated in the request, the previously earned investment income shall remain in the trust fund's account and remain subject to the provisions of this chapter.
(f) Community schools. Community schools shall not have accounts with the foundation which are separate from the account of a school system, but may, at the local school system's discretion, be allowed to establish an account at the local school system level for investment by the foundation. Should a community school have an established account with the local school system, the account shall be separately and distinctly established by the school system for the specific community school. Monies held in the trust fund account for a community school may be included in the school system's account with the foundation, and investment income, when distributed, shall be distributed to the benefit of the community school by the local school system. It shall be the responsibility of the local school system to keep a record of the assets and disbursements of any account established for the benefit of a community school. The provisions of this chapter shall apply to the expenditure of investment income for community schools.
(g) Closures and mergers of school systems and trust funds. In the event of a closure or merger of a school system which has monies on deposit with the foundation, the local superintendent shall send written notice of such event to the foundation with a suggested disposition of the funds held for the school system. The Board of Control shall have authority to accept or reject such suggestion after due consideration. The Board of Control shall have authority to determine final disposition of the monies. The decision of the Board of Control shall be final and binding and not subject to appeal. In the event a trust fund dissolves leaving monies in the foundation, the monies remaining in the trust fund's foundation account shall inure to the credit of the school system which has given the trust fund official recognition.
(Acts 1992, 2nd Ex. Sess., No. 92-716, p. 212, §9; Act 98-319, p. 535, §4.)
Management and disbursement of assets and earnings.
(a) Investment by the TRS. All gifts, grants, devises, and bequests to the foundation whether from individuals, associations, corporations, companies, or governmental entities, including local boards of education, shall be deposited by the foundation with the Teachers' Retirement System of Alabama. The retirement system shall invest and reinvest such donations and all income therefrom using the same guidelines used for its own monies. The foundation shall insure that the retirement system maintains such records as to separately account for the foundation's monies, both the principal sum deposited and investment income by school system or trust fund, as the case may be. The foundation shall be responsible for authorizing the retirement system to make disbursements of investment income to pay administrative expenses and for investment or reinvestment.
(b) Withdrawals, reinvestment of earnings, expenditure restrictions. Any school system or recognized trust fund may withdraw annually up to 80 percent of the investment income generated from any account held by the Teachers' Retirement System for the foundation in its name; however, the minimum eligible investment income distribution shall be at least five hundred dollars ($500) annually. Should a trust fund request a withdrawal of more than 80 percent of its investment income in any year, the Board of Control shall establish and charge an appropriate and reasonable administrative fee. Any monies withdrawn by a school system may be expended for classroom supplies or equipment, equipment for science or mathematics laboratories, vocational equipment, computer hardware or software, or any other equipment or supplies directly related to student instruction. Any monies withdrawn by a trust fund may be expended for the benefit of the public schools, for scholarships, or as otherwise stipulated for public education as provided by the trust fund's board of trustees. Should any question arise about a school system's expenditure, the question shall first be placed before the secretary of the foundation for his or her decision. Disagreements with the secretary's decision may be appealed to the Board of Control and the decision of the board shall be final. None of the school system's funds may be expended for salaries, maintenance of the physical plant, or the ordinary operating expenses of a school system. Twenty percent of the income for each account shall be transferred annually by the Teachers' Retirement System to the principal sum so as to create a perpetual trust for the benefit of the school system or trust fund, as the case may be. Any income eligible for disbursement which is not withdrawn at the end of the year shall be transferred to the principal sum. Any capital gains from investment shall become a part of the principal sum.
(c) Withdrawal timelines and procedures. Any school system wishing to make a withdrawal of its account's investment income shall make the request on the appropriate authorized form. The local superintendent shall have approval authority for all withdrawal requests from the school system's account, subject to review by the local school board. Requests for withdrawals from the trust fund's account shall be made by the trust fund's president or chairperson, subject to review and approval by the trust fund's board. All requests for withdrawal shall be made only once annually. The treasurer shall disburse once annually the investment income approved by the foundation as soon as practical. Investment income which is not withdrawn but carried over from year to year in the account of a school system shall be retained in the school system's account to be expended as provided in this chapter. A trust fund may, at its discretion, withdraw any or all of its investment income assets upon prior notification to the treasurer. The prior notification of the withdrawal of the trust fund's investment income from the trust fund shall be made by the chairperson of the trust fund, with proper documentation of authorization from the trust fund's board of trustees, and the prior notification shall consist of at least six months. The treasurer of the foundation may waive the notification period in unusual circumstances.
(d) Principal sum refunded to school systems upon petition. Should a local school system deposit any principal sum to the foundation, the Teachers' Retirement System shall receive and invest the monies as provided in this chapter, but the treasurer shall refund to the local school system the principal sum deposited upon petition by the board making the deposit. However, the principal sum shall be retained and invested by the Teachers' Retirement System for at least five years after initial receipt of the deposit before any petition for refund is granted by the treasurer, unless the treasurer grants a waiver due to unusual circumstances. If a petition for a refund of the principal sum is submitted by a school system, only the principal sum deposited emanating from the local school system shall be eligible to be refunded. All other deposits shall be ineligible to be refunded. The previously earned investment income shall remain in the foundation to the credit of the designated school system and remain subject to the provisions of this chapter.
(e) Principal sum and interest returned to trust funds upon petition. Should a trust fund deposit any principal sum to the foundation, the Teachers' Retirement System shall receive and invest the monies as provided in this chapter. In the event that the board of the trust fund making a deposit desires a refund of its monies, the board shall file a petition for refund with the treasurer. The principal sum deposited emanating from the trust fund, together with all investment income, shall be refunded to the trust fund at the request of the board. If the petition for refund is filed within five years from the date of the initial deposit of the principal sum, the treasurer may withhold from such refund monies an amount equal to the amount of any penalties paid by the Teachers' Retirement System for the early withdrawal of such monies. If a petition for a refund of the principal sum is submitted by a trust fund, only the principal sum deposited emanating from the trust fund shall be eligible to be refunded unless the trust fund specifically requests that part or all of the investment income also is to be withdrawn. Unless so stipulated in the request, the previously earned investment income shall remain in the trust fund's account and remain subject to the provisions of this chapter.
(f) Community schools. Community schools shall not have accounts with the foundation which are separate from the account of a school system, but may, at the local school system's discretion, be allowed to establish an account at the local school system level for investment by the foundation. Should a community school have an established account with the local school system, the account shall be separately and distinctly established by the school system for the specific community school. Monies held in the trust fund account for a community school may be included in the school system's account with the foundation, and investment income, when distributed, shall be distributed to the benefit of the community school by the local school system. It shall be the responsibility of the local school system to keep a record of the assets and disbursements of any account established for the benefit of a community school. The provisions of this chapter shall apply to the expenditure of investment income for community schools.
(g) Closures and mergers of school systems and trust funds. In the event of a closure or merger of a school system which has monies on deposit with the foundation, the local superintendent shall send written notice of such event to the foundation with a suggested disposition of the funds held for the school system. The Board of Control shall have authority to accept or reject such suggestion after due consideration. The Board of Control shall have authority to determine final disposition of the monies. The decision of the Board of Control shall be final and binding and not subject to appeal. In the event a trust fund dissolves leaving monies in the foundation, the monies remaining in the trust fund's foundation account shall inure to the credit of the school system which has given the trust fund official recognition.
(Acts 1992, 2nd Ex. Sess., No. 92-716, p. 212, §9; Act 98-319, p. 535, §4.)
Management and disbursement of assets and earnings.
(a) Investment by the TRS. All gifts, grants, devises, and bequests to the foundation whether from individuals, associations, corporations, companies, or governmental entities, including local boards of education, shall be deposited by the foundation with the Teachers' Retirement System of Alabama. The retirement system shall invest and reinvest such donations and all income therefrom using the same guidelines used for its own monies. The foundation shall insure that the retirement system maintains such records as to separately account for the foundation's monies, both the principal sum deposited and investment income by school system or trust fund, as the case may be. The foundation shall be responsible for authorizing the retirement system to make disbursements of investment income to pay administrative expenses and for investment or reinvestment.
(b) Withdrawals, reinvestment of earnings, expenditure restrictions. Any school system or recognized trust fund may withdraw annually up to 80 percent of the investment income generated from any account held by the Teachers' Retirement System for the foundation in its name; however, the minimum eligible investment income distribution shall be at least five hundred dollars ($500) annually. Should a trust fund request a withdrawal of more than 80 percent of its investment income in any year, the Board of Control shall establish and charge an appropriate and reasonable administrative fee. Any monies withdrawn by a school system may be expended for classroom supplies or equipment, equipment for science or mathematics laboratories, vocational equipment, computer hardware or software, or any other equipment or supplies directly related to student instruction. Any monies withdrawn by a trust fund may be expended for the benefit of the public schools, for scholarships, or as otherwise stipulated for public education as provided by the trust fund's board of trustees. Should any question arise about a school system's expenditure, the question shall first be placed before the secretary of the foundation for his or her decision. Disagreements with the secretary's decision may be appealed to the Board of Control and the decision of the board shall be final. None of the school system's funds may be expended for salaries, maintenance of the physical plant, or the ordinary operating expenses of a school system. Twenty percent of the income for each account shall be transferred annually by the Teachers' Retirement System to the principal sum so as to create a perpetual trust for the benefit of the school system or trust fund, as the case may be. Any income eligible for disbursement which is not withdrawn at the end of the year shall be transferred to the principal sum. Any capital gains from investment shall become a part of the principal sum.
(c) Withdrawal timelines and procedures. Any school system wishing to make a withdrawal of its account's investment income shall make the request on the appropriate authorized form. The local superintendent shall have approval authority for all withdrawal requests from the school system's account, subject to review by the local school board. Requests for withdrawals from the trust fund's account shall be made by the trust fund's president or chairperson, subject to review and approval by the trust fund's board. All requests for withdrawal shall be made only once annually. The treasurer shall disburse once annually the investment income approved by the foundation as soon as practical. Investment income which is not withdrawn but carried over from year to year in the account of a school system shall be retained in the school system's account to be expended as provided in this chapter. A trust fund may, at its discretion, withdraw any or all of its investment income assets upon prior notification to the treasurer. The prior notification of the withdrawal of the trust fund's investment income from the trust fund shall be made by the chairperson of the trust fund, with proper documentation of authorization from the trust fund's board of trustees, and the prior notification shall consist of at least six months. The treasurer of the foundation may waive the notification period in unusual circumstances.
(d) Principal sum refunded to school systems upon petition. Should a local school system deposit any principal sum to the foundation, the Teachers' Retirement System shall receive and invest the monies as provided in this chapter, but the treasurer shall refund to the local school system the principal sum deposited upon petition by the board making the deposit. However, the principal sum shall be retained and invested by the Teachers' Retirement System for at least five years after initial receipt of the deposit before any petition for refund is granted by the treasurer, unless the treasurer grants a waiver due to unusual circumstances. If a petition for a refund of the principal sum is submitted by a school system, only the principal sum deposited emanating from the local school system shall be eligible to be refunded. All other deposits shall be ineligible to be refunded. The previously earned investment income shall remain in the foundation to the credit of the designated school system and remain subject to the provisions of this chapter.
(e) Principal sum and interest returned to trust funds upon petition. Should a trust fund deposit any principal sum to the foundation, the Teachers' Retirement System shall receive and invest the monies as provided in this chapter. In the event that the board of the trust fund making a deposit desires a refund of its monies, the board shall file a petition for refund with the treasurer. The principal sum deposited emanating from the trust fund, together with all investment income, shall be refunded to the trust fund at the request of the board. If the petition for refund is filed within five years from the date of the initial deposit of the principal sum, the treasurer may withhold from such refund monies an amount equal to the amount of any penalties paid by the Teachers' Retirement System for the early withdrawal of such monies. If a petition for a refund of the principal sum is submitted by a trust fund, only the principal sum deposited emanating from the trust fund shall be eligible to be refunded unless the trust fund specifically requests that part or all of the investment income also is to be withdrawn. Unless so stipulated in the request, the previously earned investment income shall remain in the trust fund's account and remain subject to the provisions of this chapter.
(f) Community schools. Community schools shall not have accounts with the foundation which are separate from the account of a school system, but may, at the local school system's discretion, be allowed to establish an account at the local school system level for investment by the foundation. Should a community school have an established account with the local school system, the account shall be separately and distinctly established by the school system for the specific community school. Monies held in the trust fund account for a community school may be included in the school system's account with the foundation, and investment income, when distributed, shall be distributed to the benefit of the community school by the local school system. It shall be the responsibility of the local school system to keep a record of the assets and disbursements of any account established for the benefit of a community school. The provisions of this chapter shall apply to the expenditure of investment income for community schools.
(g) Closures and mergers of school systems and trust funds. In the event of a closure or merger of a school system which has monies on deposit with the foundation, the local superintendent shall send written notice of such event to the foundation with a suggested disposition of the funds held for the school system. The Board of Control shall have authority to accept or reject such suggestion after due consideration. The Board of Control shall have authority to determine final disposition of the monies. The decision of the Board of Control shall be final and binding and not subject to appeal. In the event a trust fund dissolves leaving monies in the foundation, the monies remaining in the trust fund's foundation account shall inure to the credit of the school system which has given the trust fund official recognition.
(Acts 1992, 2nd Ex. Sess., No. 92-716, p. 212, §9; Act 98-319, p. 535, §4.)
