HB-5109, As Passed House, September 28, 2005

SUBSTITUTE FOR

HOUSE BILL NO. 5109

     A bill to amend 2000 PA 489, entitled

"Michigan trust fund act,"

by amending the title and section 2 (MCL 12.252), and by adding

sections 7 and 8; and to repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

TITLE

     An act to create certain funds; to provide for the allocation

of certain revenues among certain funds and for the operation,

investment, and expenditure of certain funds; and to impose certain

duties and requirements on certain state officials.

     Sec. 2. As used in this act:

     (a) "Medicaid benefits trust fund" means the Michigan medicaid

benefits trust fund established in section 5.

     (b) "Medicaid program" means a program for medical assistance

established under title XIX of the social security act, chapter

531, 49 Stat. 620, 42  U.S.C.  USC 1396 to 1396f, 1396g-1 to 1396r-

6, and 1396r-8 to 1396v.

     (c) "Medicaid special financing payments" means the medicaid

special adjustor payments each year authorized in the department of

community health appropriations act.

     (d) "Michigan merit award trust fund" means the Michigan merit

award trust fund established in section 7.

     (e) "Residual tobacco settlement revenue" means any residual

interests, as defined by the Michigan tobacco settlement finance

authority, that are received by this state.

(f)  (d) "Tobacco settlement revenue" means money received by

this state that is attributable to the master settlement agreement

incorporated into a consent decree and final judgment entered into

on December 7, 1998 in Kelly Ex Rel. Michigan v Philip Morris

Incorporated, et al., Ingham county circuit court, docket no. 96-

84281CZ, and that is not TSRs as that term is defined under the

Michigan tobacco settlement finance authority act.

(g)  (e) "Tobacco settlement trust fund" means the Michigan

tobacco settlement trust fund established in section 3.

     (h) "21st century jobs trust fund" means the 21st century jobs

trust fund established in section 7.

     Sec. 7. (1) The 21st century jobs trust fund is established in

the department of treasury. The 21st century jobs trust fund shall

consist only of interest and earnings from 21st century jobs trust

fund investments, donations of money made to the 21st century jobs

trust fund from any source, and the net proceeds of the sale of

tobacco settlement revenues to the tobacco settlement finance

authority.

     (2) The state treasurer shall direct the investment of the

21st century jobs trust fund, which may be invested as part of the

common cash of the state but shall be separately accounted for by

the state treasurer. The state treasurer may invest the assets of

the 21st century jobs trust fund in any investment authorized under

1855 PA 105, MCL 21.141 to 21.147, for surplus funds of this state,

in obligations issued by any state or political subdivision or

instrumentality of the United States, or in any obligation issued,

assumed, or guaranteed by a solvent entity created or existing

under the laws of the United States or of any state, district, or

territory of the United States, which are not in default as to

principal or interest.

     Sec. 8. (1) The Michigan merit award trust fund is established

in the department of treasury. The Michigan merit award trust fund

shall consist only of interest and earnings from Michigan merit

award trust fund investments, donations of money made to the trust

fund from any source, and any money allocated as provided by law.

     (2) Money in the Michigan merit award trust fund at the close

of a fiscal year shall remain in the Michigan merit award trust

fund and shall not revert to the general fund.

     (3) The state treasurer shall direct the investment of the

Michigan merit award trust fund.

     (4) Upon appropriation, the state treasurer shall disburse

funds from the Michigan merit award trust fund for 1 or more of the

following purposes:

     (a) Michigan merit award scholarships under the Michigan merit

award scholarship act, 1999 PA 94, MCL 390.1451 to 390.1459.

     (b) Expenses properly incurred in the administration of the

Michigan merit award scholarships and any test by which awardees of

the Michigan merit award scholarships are determined.

     Enacting section 1. Sections 3 and 5 of the Michigan merit

award scholarship act, 1999 PA 94, MCL 390.1453 and 390.1455, are

repealed.

     Enacting section 2. This amendatory act takes effect October

1, 2005.

     Enacting section 3. This amendatory act does not take effect

unless all of the following bills of the 93rd Legislature are

enacted into law:

     (a) Senate Bill No. 359.

     (b) Senate Bill No. 533.

     (c) House Bill No. 4972.

     (d) House Bill No. 4973.

     (e) House Bill No. 5047.

     (f) House Bill No. 5048.

     (g) House Bill No. 5108.