This bill amends the Michigan Trust Fund Act by updating Section 7, which pertains to the 21st Century Jobs Trust Fund. The bill establishes that the trust fund will consist of donations and specific revenue sources, including net proceeds from tobacco settlement revenues and appropriations from the general fund. It also outlines the investment management of the trust fund by the state treasurer, who is required to ensure that the fund is separately accounted for and invested in authorized obligations while complying with the divestment from terror act.

Significantly, the bill modifies the allocation of tobacco settlement revenue, mandating that $75 million of such revenue, which is not classified as a Tobacco Settlement Revenue (TSR), be deposited into the trust fund annually from fiscal year 2008 through fiscal year 2026. The previous provision that allocated $17.5 million of tobacco settlement revenue to the countercyclical budget and economic stabilization fund from fiscal year 2015 to 2035 has been deleted. Additionally, the bill clarifies that interest and earnings from the trust fund's investments will be deposited into the general fund, while funds remaining in the trust at the end of the fiscal year will not revert to the general fund.

Statutes affected:
House Introduced Bill: 12.257