HB6130: Education: financing; Michigan trust fund act; modify. Amends sec. 12 of 2000 PA 489 (MCL 12.262).

HOUSE BILL NO. 6130 A bill to amend 2000 PA 489, entitled "Michigan trust fund act," by amending section 12 (MCL 12.262), as added by 2016 PA 193. the people of the state of michigan enact: Sec. 12. (1) The community district education trust fund is created within the state treasury. (2) The state treasurer may receive money or other assets from any source for deposit into the community district education trust fund. The state treasurer shall direct the investment of the community district education trust fund. The state treasurer shall credit to the community district education trust fund interest and earnings from community district education trust fund investments. (3) Money Except as otherwise provided under subsection (7), money in the community district education trust fund at the close of the fiscal year shall must remain in the community district education trust fund and shall does not lapse to the general fund. (4) The department of treasury shall be is the administrator of the community district education trust fund for auditing purposes. (5) The Except as otherwise provided under subsection (7), the department of treasury shall expend money from the community district education trust fund, upon appropriation, only to offset, directly or indirectly, the absence of local school operating revenue in a community district in the funding of the state portion of foundation allowances under section 22b of the state school aid act of 1979, 1979 PA 94, MCL 388.1622b. As used in this subsection, "community district" means that term as defined in section 3 of the revised school code, 1976 PA 451, MCL 380.3. (6) Subject to the limitation in this subsection and except as otherwise provided under subsection (7) , beginning in fiscal year 2017 and each fiscal year thereafter, $72,000,000.00 of the tobacco settlement revenue received by this state that is not considered a TSR as that term is defined under the Michigan tobacco settlement finance authority act, 2005 PA 226, MCL 129.261 to 129.279, shall must be deposited into the community district education trust fund to be used only as provided in subsection (5). The total amount deposited into the community district education trust fund pursuant to this subsection shall must not exceed $617,000,000.00. (7) To the extent that the amount deposited into the community district education trust fund pursuant to subsection (6) is less than the amount necessary to offset the absence of local school operating revenue in a community district in the funding of the state portion of foundation allowances under section 22b of the state school aid act of 1979, 1979 PA 94, MCL 388.1622b, and for as long as that community district is prohibited under section 386 of the revised school code, 1976 PA 451, MCL 380.386, from levying a school operating tax, the general fund shall reimburse the school aid fund. (7) After September 30, 2026, no money may be appropriated to or expended from the community district education trust fund. Any money remaining in the community district education trust fund on or after October 1, 2026 is transferred to and deposited in the state school aid fund.