Bill Text: MI HB5062 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Higher education; financial aid; tobacco settlement revenues allocated to Michigan merit scholarship program; return to general fund. Amends secs. 9 & 10 of 2000 PA 489 (MCL 12.259 & 12.260) & repeals secs. 9 & 10 of 2000 PA 489 (MCL 12.259 & 12.260).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2009-06-10 - Printed Bill Filed 06/10/2009 [HB5062 Detail]

Download: Michigan-2009-HB5062-Introduced.html

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HOUSE BILL No. 5062

 

June 9, 2009, Introduced by Rep. Smith and referred to the Committee on Appropriations.

 

     A bill to amend 2000 PA 489, entitled

 

"Michigan trust fund act,"

 

by amending sections 9 and 10 (MCL 12.259 and 12.260), sections 9

 

and 10 as added by 2005 PA 232; and to repeal acts and parts of

 

acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 9. (1) The Michigan merit award trust fund is established

 

in the department of treasury. The Michigan merit award trust fund

 

shall consist only of interest and earnings from Michigan merit

 

award trust fund investments, donations of money made to the trust

 

fund from any source, and any money allocated as provided by law.

 

     (2) Money in the Michigan merit award trust fund at the close

 

of a fiscal year shall remain in the Michigan merit award trust

 

fund and shall not revert to the general fund.

 

     (3) The state treasurer shall direct the investment of the

 

Michigan merit award trust fund.

 

     (4) Except as otherwise provided in section 7(5), each fiscal

 

year, tobacco settlement revenue received by this state before

 

August 1, 2009 that is not considered a TSR as that term is defined

 

under the Michigan tobacco settlement finance authority act, shall

 

be 2005 PA 226, MCL 129.261 to 129.279, is allocated to the

 

Michigan merit award trust fund.

 

     (5) On September 30, 2009, money in the Michigan merit award

 

trust fund or other money held by the state treasurer for purposes

 

of this section or section 10 shall revert to the general fund.

 

     Sec. 10. (1) Upon appropriation, the state treasurer shall

 

disburse funds from the Michigan merit award trust fund for 1 or

 

more of the following purposes:

 

     (a) Michigan merit award scholarships under the Michigan merit

 

award scholarship act, 1999 PA 94, MCL 390.1451 to 390.1459, or to

 

a successor to that program.

 

     (b) Expenses properly incurred in the administration of the

 

Michigan merit award scholarships and the test by which awardees of

 

the Michigan merit award scholarships are determined.

 

     (c) Funding of the tuition incentive program as described in

 

section 310 of 1998 PA 271 or a successor to that program.

 

     (d) Funding of the Michigan nursing scholarship program as

 

described in the Michigan nursing scholarship act, 2002 PA 591, MCL

 

390.1181 to 390.1189.

 

     (e) Other expenditures as determined by law.

 

     (2) The state treasurer shall not disburse funds from the

 

Michigan merit award trust fund under this section in the 2009-2010

 

academic year or any subsequent academic year.

 

     (3) If the state treasurer incurs an obligation to disburse

 

funds from the Michigan merit award trust fund under this section

 

before the 2009-2010 academic year, and that obligation or any part

 

of the obligation is unpaid as of September 15, 2009, the

 

obligation or remaining part of the obligation is void and

 

unenforceable and the state treasurer shall not disburse funds for

 

that unpaid amount.

 

     (4) Beginning on the effective date of the amendatory act that

 

added this subsection, the state treasurer shall notify each person

 

to which the state treasurer owes an obligation of any part of an

 

obligation, or to which the state treasurer incurs an obligation,

 

to disburse funds from the Michigan merit award trust fund under

 

this section of the pending repeal of this section and section 9

 

and the timetables described in subsections (2) and (3).

 

     (5) As used in this section, "academic year" means the period

 

from August 1 of a calendar year to July 31 of the next calendar

 

year.

 

     Enacting section 1. Sections 9 and 10 of the Michigan trust

 

fund act, 2000 PA 489, MCL 12.259 and 12.260, are repealed

 

effective October 1, 2009.

 

     Enacting section 2. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No.____ (request no.

 

00505'09) of the 95th Legislature is enacted into law.