This bill amends the Michigan Trust Fund Act by updating Section 7, which pertains to the 21st Century Jobs Trust Fund. The fund is established within the Department of Treasury and is composed of donations and specific revenue sources, including net proceeds from tobacco settlement revenues and appropriations from the general fund. The state treasurer is responsible for directing the investment of the fund, ensuring it is separately accounted for, and complying with the divestment from terror act when making investments. Additionally, the bill stipulates that money in the trust fund at the end of a fiscal year will remain in the fund and not revert to the general fund, except for interest and earnings, which must be deposited into the general fund.

Significantly, the bill modifies the allocation of tobacco settlement revenue. It establishes that from fiscal year 2008 through fiscal year 2026, $75 million of tobacco settlement revenue that is not classified as TSR (Tobacco Settlement Revenue) must be deposited into the 21st Century Jobs Trust Fund. The previous requirement for a $17.5 million annual deposit into the countercyclical budget and economic stabilization fund from fiscal year 2015 to 2035 has been deleted. The bill also renumbers the subsequent sections accordingly.

Statutes affected:
House Introduced Bill: 12.257