November 19, 2008, Introduced by Rep. Alma Smith and referred to the Committee on Tax Policy.
A bill to amend 2000 PA 489, entitled
"Michigan trust fund act,"
by amending sections 9 and 10 (MCL 12.259 and 12.260), as added by
2005 PA 232; and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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) Except as otherwise provided in section 7(5), each fiscal
year, tobacco settlement revenue received by this state before
August 1, 2007 that is not considered a TSR as that term is defined
under
the Michigan tobacco settlement finance authority act, shall
be
2005 PA 226, MCL 129.261 to 129.279,
is allocated to the
Michigan merit award trust fund.
(5) On September 30, 2007, money in the Michigan merit award
trust fund or other money held by the state treasurer for purposes
of this section or section 10 shall revert to the general fund.
Sec. 10. (1) 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.
(c) Funding of the tuition incentive program as described in
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.
(2) The state treasurer shall not disburse funds from the
Michigan merit award trust fund under this section in the 2007-2008
academic year or any subsequent academic year.
(3) If the state treasurer incurs an obligation to disburse
funds from the Michigan merit award trust fund under this section
before the 2007-2008 academic year, and that obligation or any part
of the obligation is unpaid as of September 15, 2007, the
obligation or remaining part of the obligation is void and
unenforceable and the state treasurer shall not disburse funds for
that unpaid amount.
(4) Beginning on the effective date of the amendatory act that
added this subsection, the state treasurer shall notify each person
to which the state treasurer owes an obligation of any part of an
obligation, or to which the state treasurer incurs an obligation,
to disburse funds from the Michigan merit award trust fund under
this section of the pending repeal of this section and section 9
and the timetables described in subsections (2) and (3).
(5) As used in this section, "academic year" means the period
from August 1 of a calendar year to July 31 of the next calendar
year.
Enacting section 1. Sections 9 and 10 of the Michigan trust
fund act, 2000 PA 489, MCL 12.259 and 12.260, are repealed
effective October 1, 2007.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No. 6680(request no.
01102'07) of the 94th Legislature is enacted into law.