The bill amends the Michigan Trust Fund Act by updating Section 7, which pertains to the 21st Century Jobs Trust Fund. It establishes the fund within the Department of Treasury, detailing its sources of revenue, which include donations, net proceeds from tobacco settlement revenues, and appropriations from the general fund. The bill specifies that 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 modifies the allocation of tobacco settlement revenues, mandating that $75 million of such revenues, not classified as tobacco settlement revenue (TSR), be deposited into the trust fund annually from fiscal year 2008 through fiscal year 2026. It also removes a previous requirement for a different allocation of tobacco settlement revenues to a countercyclical budget and economic stabilization fund, thereby streamlining the financial management of the trust fund. The bill ensures that any interest and earnings from the trust fund's investments are deposited into the general fund, while the principal remains in the trust fund at the end of each fiscal year.

Statutes affected:
Senate Introduced Bill: 12.257