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. Notably, the bill replaces references to "section 31" with "section 7(c)(i)" and updates the citation for the Michigan Early Stage Venture Investment Act from "MCL 125.2261" to "MCL 125.2237 and 125.2263." Additionally, it specifies that $75 million of tobacco settlement revenue, not classified as TSR, must be deposited into the trust fund annually from fiscal year 2008 through 2026.

The bill also includes provisions for the investment of the trust fund by the state treasurer, ensuring that the fund is separately accounted for while allowing for investments in various authorized obligations. It mandates that interest and earnings from the fund be deposited into the general fund and clarifies that funds remaining in the trust at the end of a fiscal year do not revert to the general fund, except for the interest and earnings. Furthermore, the bill eliminates a previous requirement for a $17.5 million annual deposit into a countercyclical budget and economic stabilization fund from fiscal year 2015 through 2035, streamlining the allocation of tobacco settlement revenues.

Statutes affected:
Senate Introduced Bill: 12.257
As Passed by the Senate: 12.257