TN HB0224

Local boards of education may establish irrevocable investment trusts to fund capital improvements including construction, renovations, and maintenance of school buildings and facilities

School districts must meet several requirements to establish a trust: adopt a 5-year capital improvements plan, maintain a fund balance of at least 2 months of operating expenses, adopt a written investment policy, and obtain state funding board approval

Trust assets are protected from creditors including contractors and subcontractors, and cannot be subject to execution, attachment, garnishment, or bankruptcy proceedings

The Department of Treasury may establish investment guidelines, and trusts must prepare annual financial reports in accordance with governmental accounting standards board requirements

All trust financial records are subject to audit by the comptroller of the treasury, with LEAs responsible for reimbursing audit costs