Legislative Analysis
Phone: (517) 373-8080
TOBACCO SETTLEMENT REVENUE: EXTEND SUNSET
http://www.house.mi.gov/hfa
ON 21st CENTURY JOBS TRUST FUND DEPOSIT
Analysis available at
House Bill 5006 (proposed substitute H-1) http://www.legislature.mi.gov
Sponsor: Rep. Will Snyder
Committee: Appropriations
Complete to 9-18-23
SUMMARY:
House Bill 5006 would amend the Michigan Trust Fund Act to extend through FY 2025-26 a
requirement that $75.0 million in tobacco settlement revenue be deposited annually into the
21st Century Jobs Trust Fund. Under current law, the annual deposit of $75.0 million into the
21st Century Jobs Trust Fund (21st CJTF) would end in FY 2022-23.
MCL 12.257
BACKGROUND:
The 21st CJTF and corresponding 21st CJTF programs were established in 2005 to promote
economic development and job creation throughout Michigan. Over the ten-year period of
funding agreed upon at the time of passage, the 21st CJTF was allocated approximately $1.0
billion. In FY 2005-06 and FY 2006-07, $394.0 million was deposited in the 21st CJTF, with
an additional $600.0 million deposited over the next eight years ending in FY 2014- 15.
2014 PA 504 extended the sunset for the first time from FY 2014-15 to FY 2018-19. 2018 PA
577 extended the sunset for a second time from FY 2018-19 to FY 2022-23.
FISCAL IMPACT:
The bill would increase 21st CJTF revenues by $225.0 million over the three-year period.
Under current law, once the $75.0 million tobacco settlement revenue deposit ended in FY
2022-23, the corresponding revenue would be deposited in the Merit Award Trust Fund.
Under statute, the Merit Award Trust Fund is used to fund the Michigan Merit Award
scholarships and associated administrative expenditures, the tuition incentive program,
or other purposes as determined by law.
Today, the corpus of the 21st CJTF consists only of the annual $75.0 million deposit and
any donations of money made to the fund. The legislature annually appropriates the entire
balance of the 21st CJTF deposit for economic development and tourism promotion.
Table 1 provides FY 2022-23 allocations from the 21st CJTF. These appropriations were
made in the Labor and Economic Opportunity Budget. The purpose and distribution of
the 21st CJTF is determined annually by the legislature in an appropriations act.
House Fiscal Agency Page 1 of 2
 Table 1
21st Century Jobs Trust Fund FY 2022-23
Programs
Program 21st CJTF GF/GP TOTAL
Business Attraction and Community Revitalization $59,350,000 $40,650,000 $100,000,000
Entrepreneurship Eco-System 15,650,000 0 15,650,000
TOTAL $75,000,000 $40,650,000 $115,650,000
Fiscal Analyst: Viola Bay Wild
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency HB 5006 (proposed H-1 substitute) Page 2 of 2


Statutes affected:
Substitute (H-1): 12.257
House Introduced Bill: 12.257
As Passed by the House: 12.257
As Passed by the Senate: 12.257
House Concurred Bill: 12.257
Public Act: 12.257
House Enrolled Bill: 12.257