SB-1224, As Passed Senate, March 27, 2008

SUBSTITUTE FOR

SENATE BILL NO. 1224

     A bill to amend 2000 PA 489, entitled

"Michigan trust fund act,"

by amending sections 7 and 8 (MCL 12.257 and 12.258), section 7 as

amended by 2007 PA 50 and section 8 as added by 2005 PA 232.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     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 , to both of the following:

     (a) To the extent provided in section 8(1) of the Michigan

tobacco settlement finance authority act, 2005 PA 226, MCL 129.268,

the net proceeds of the sale of tobacco settlement revenues to the

tobacco settlement finance authority under the Michigan tobacco

settlement finance authority act, 2005 PA 226, MCL 129.261 to

129.279.

     (b) To the extent provided in section 8(2) of the Michigan

tobacco settlement finance authority act, 2005 PA 226, MCL 129.268,

the net proceeds resulting from a refunding or refinancing of bonds

or the sale of residual interests under the Michigan tobacco

settlement finance authority act, 2005 PA 226, MCL 129.261 to

129.279

     (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. For the

fiscal year ending September 30, 2007 only, in addition to any

interest and earnings deposited in the general fund under this

subsection, $50,000,000.00 of the funds in the 21st century jobs

trust fund is transferred to and shall be deposited into the

general fund.

     (5) Beginning in fiscal year 2008 and through fiscal year

2015, each year $75,000,000.00 of the 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, 2005 PA 226, MCL 129.261 to 129.279, shall be deposited into

the 21st century jobs trust fund.

     (6) For the fiscal year ending September 30, 2016 only,

$30,000,000.00 of the 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, 2005 PA 226,

MCL 129.261 to 129.279, shall be deposited into the 21st century

jobs trust fund.

     Sec. 8. (1) Upon request from the fund board as defined in

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

125.2088a, except as provided in subsection (2), 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.

     (2) The state treasurer shall transfer and disburse the net

proceeds described in section 7(1)(b) for the purposes described in

chapter 8B of the Michigan strategic fund act, 1984 PA 270, MCL

125.2089 to 125.2089d, as provided by an appropriation.

     Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 94th Legislature are

enacted into law:

     (a) Senate Bill No. 1223.

     (b) Senate Bill No. 1225.