SENATE BILL No. 895

 

 

April 19, 2016, Introduced by Senator HANSEN and referred to the Committee on Appropriations.

 

 

 

     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 11.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2. As used in this act:

 

     (a) "Detroit public schools trust fund" means the Detroit

 

public schools trust fund created in section 11.

 

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

 

medicaid Medicaid benefits trust fund established in section 5.

 

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

 

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.

 

     (f) (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.

 

     (g) (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.

 

     (h) (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

 

11(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, 2005

 

PA 226, MCL 129.261 to 129.279, shall be allocated to the Michigan

 

merit award trust fund.

 

     Sec. 11. (1) The Detroit public schools 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 Detroit public schools trust fund.

 

The state treasurer shall direct the investment of the Detroit

 

public schools trust fund. The state treasurer shall credit to the

 

Detroit public schools trust fund interest and earnings from

 

Detroit public schools trust fund investments.

 

     (3) Money in the Detroit public schools trust fund at the

 

close of the fiscal year shall remain in the Detroit public schools

 

trust fund and shall not lapse to the general fund.

 

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

 

the Detroit public schools trust fund for auditing purposes.

 

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

 

Detroit public schools trust fund, upon appropriation, as provided

 

by law.

 

     (6) Beginning in fiscal year 2017 and through fiscal year

 

2026, each fiscal year $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 Detroit public schools trust fund.