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HB-5109, As Passed Senate, October 19, 2005

SENATE 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, 8, 9, and 10; 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.

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 9.

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

interests, as defined by the Michigan tobacco settlement finance

authority act, 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, including any rights to receive money attributable to the

master settlement agreement that has been sold by this state.

~~(e) "Tobacco settlement trust fund" means the Michigan tobacco~~

~~settlement trust fund established in section 3.~~

(g) "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 of 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 this state under 1967 PA 55, MCL 12.51 to 12.53, but

shall be separately accounted for by the state treasurer. The state

treasurer may invest the funds or 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.

(3) Except as provided in subsection (4), money in the 21st

century jobs trust fund at the close of a fiscal year shall remain

in the 21st century jobs trust fund and shall not revert to the

general fund.

(4) Interest and earnings from investment of the 21st century

jobs trust fund shall be deposited in the general fund.

Sec. 8. Upon request from the fund board as defined in section

88a of the Michigan strategic fund act, 1984 PA 270, MCL 125.2088a,

the state treasurer shall transfer and disburse appropriated funds

from the 21st century jobs trust fund only for the purpose of

carrying out and at the specified time and as necessary to

implement chapter 8A of the Michigan strategic fund act, 1984 PA

270, MCL 125.2088 to 125.2088p.

Sec. 9. (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) Each fiscal year, tobacco settlement revenue received by

this state that is not considered a TSR as that term is defined

under the Michigan tobacco settlement finance authority act shall

be allocated to the Michigan merit award trust fund.

Sec. 10. 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, or to

a successor to that program.

(b) Expenses properly incurred in the administration of the

Michigan merit award scholarships and the test by which awardees of

the Michigan merit award scholarships are determined.

section 310 of 1998 PA 271 or a successor to that program.

(d) Funding of the Michigan nursing scholarship program as

described in the Michigan nursing scholarship act, 2002 PA 591, MCL

390.1181 to 390.1189.

(e) Other expenditures as determined by law.

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

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

repealed.

(2) Sections 3 and 4 of the Michigan trust fund act, 2000 PA

489, MCL 12.253 and 12.254, are repealed.

Enacting section 2. 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. 533.

(b) House Bill No. 5047.