HB-5383, As Passed House, June 8, 2016HB-5383, As Passed Senate, June 8, 2016

SUBSTITUTE FOR

HOUSE BILL NO. 5383

A bill to amend 2000 PA 489, entitled

"Michigan trust fund act,"

by amending sections 2 and 9 (MCL 12.252 and 12.259), section 2 as

amended and section 9 as added by 2005 PA 232, and by adding

section 12.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 2. As used in this act:

(a) "Community district education trust fund" means the

community district education trust fund created in section 12.

(b) ~~(a)~~ "Medicaid benefits trust fund" means the Michigan

~~medicaid~~ Medicaid benefits trust fund established in section 5.

assistance established under title XIX of the social security act,

~~chapter 531, 49 Stat. 620,~~ 42 USC 1396 to ~~1396f, 1396g-1 to 1396r-~~

~~6, and 1396r-8 to 1396v.~~1396w-5.

(d) ~~(c)~~ "Medicaid special financing payments" means the

~~medicaid~~ Medicaid special adjustor payments each year authorized in

the department of community health appropriations act.

(e) ~~(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) "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~~ 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.

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

trust fund established in section 7.

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) and section

12(6), 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. 12. (1) The community district education trust fund is

created within the state treasury.

(2) The state treasurer may receive money or other assets from

any source for deposit into the fund. The state treasurer shall

direct the investment of the community district education trust

fund. The state treasurer shall credit to the community district

education trust fund interest and earnings from community district

education trust fund investments.

(3) Money in the community district education trust fund at

the close of the fiscal year shall remain in the community district

education trust fund and shall not lapse to the general fund.

(4) The department of treasury shall be the administrator of

the community district education trust fund for auditing purposes.

(5) The department of treasury shall expend money from the

community district education trust fund, upon appropriation, only

to offset, directly or indirectly, the absence of local school

operating revenue in a community district in the funding of the

state portion of foundation allowances under section 22b of the

House Bill No. 5383 as amended June 8, 2016

state school aid act of 1979, 1979 PA 94, MCL 388.1622b. As used in

this subsection, "community district" means that term as defined in

section 3 of the revised school code, 1976 PA 451, MCL 380.3.

(6) Subject to the limitation in this subsection, beginning in

fiscal year 2017 and each fiscal year thereafter, $72,000,000.00 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 community district education

trust fund to be used only as provided in subsection (5). The total

amount deposited into the community district education trust fund

pursuant to this subsection shall not exceed $617,000,000.00.

<<(7) To the extent that the amount deposited into the community

district education trust fund pursuant to subsection (6) is less than

the amount necessary to offset the absence of local school operating

revenue in a community district in the funding of the state portion

of foundation allowances under section 22b of the state school aid act

of 1979, 1979 PA 94, MCL 388.1622b, and for as long as that community

district is prohibitED under section 386 of the revised school code,

1976 PA 451, MCL 380.386, from levying a school operatinG tax, the

general fund shall reimburse the school aid fund.>>

Enacting section 1. This amendatory act does not take effect

unless House Bill No. 5384 of the 98th Legislature is enacted into

law.