Bill Text: MI SB1252 | 2019-2020 | 100th Legislature | Engrossed
Bill Title: State financing and management: funds; Flint settlement trust fund; provide for. Amends sec. 2 of 2000 PA 489 (MCL 12.252) & adds sec. 11.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2020-12-30 - Assigned Pa 0359'20 With Immediate Effect [SB1252 Detail]
Download: Michigan-2019-SB1252-Engrossed.html
SENATE BILL NO. 1252
December 03, 2020, Introduced by Senator
ANANICH and referred to the Committee of the Whole.
A bill to amend 2000 PA 489, entitled
"Michigan trust fund act,"
by amending section 2 (MCL 12.252), as amended by 2016 PA 193, and by adding section 11.
the people of the state of michigan enact:
(a) "Community district education trust fund" means
the community district education trust fund created in section 12.
(b)
"Flint settlement trust fund" means the Flint settlement trust fund
created in section 11.
(c)
(b) "Medicaid
benefits trust fund" means the Michigan Medicaid benefits trust fund
established in section 5.
(d)
(c) "Medicaid
program" means a program for medical assistance established under title
XIX of the social security act, 42 USC 1396 to 1396w-5.
(e)
(d) "Medicaid
special financing payments" means the Medicaid special adjustor payments
each year authorized in the department of community
health and human services
appropriations act.
(f)
(e) "Michigan
merit award trust fund" means the Michigan merit award trust fund
established in section 9.
(g)
(f) "Tobacco
settlement revenue" means money received by this state that is
attributable to the master settlement agreement incorporated into a consent
decree and final judgment entered into on December 7, 1998 in Kelly Ex Rel. Michigan v Philip Morris Incorporated, et al., Kelly Ex Rel. Michigan v Philip Morris
Incorporated, et al.,
Ingham County circuit court, Circuit Court, docket no. 96-84281CZ, including any
rights to receive money attributable to the master settlement agreement that
has been sold by this state.
(h)
(g) "21st
century jobs trust fund" means the 21st century jobs trust fund established
in section 7.
Sec. 11. (1) The Flint settlement
trust fund is created within the state treasury. The Flint settlement trust fund
is established to address the consolidated cases known as In re Flint Water Cases, No. 5:16-cv-10444-JEL-MKM (ED Mich),
in connection with the preliminary approval orders, any amendments to those
orders, or the subsequent final approval orders, that will be entered by the
court pursuant to this state's settlement agreement for that case and its
related Flint water cases.
(2)
The state treasurer may receive money or other assets from any source for
deposit into the Flint settlement trust fund. The state treasurer shall direct
the investment of the Flint settlement trust fund. The state treasurer shall
credit to the Flint settlement trust fund interest and earnings from Flint
settlement trust fund investments.
(3)
Money in the Flint settlement trust fund at the close of the fiscal year shall
remain in the Flint settlement trust fund and shall not lapse to the general
fund.
(4)
The department of treasury shall be the administrator of the Flint settlement
trust fund for auditing purposes.
(5)
The department of treasury shall expend money from the Flint settlement trust
fund, upon appropriation, only as provided in this section.
(6) It is the
intent of the legislature to appropriate for state purposes and allocate to the
Flint settlement trust fund, for the purposes of making an annual payment to
the Special Purpose FWC Settlement Entity, pursuant to the settlement agreement
approved in the court orders described in subsection (1), the sum of
approximately $35,000,000.00 from the general fund for each state fiscal year
commencing with fiscal year 2021-2022 and through the fiscal year ending
September 30, 2051, after which time these payments will cease. The governor
shall annually include the amount described in this subsection in his or her
executive budget consistent with the orders of the court.
(7) The Flint settlement
trust fund shall pay the amounts allocated under this section to the Special
Purpose FWC Settlement Entity as provided in the settlement agreement approved
in the court orders described in subsection (1). The Special Purpose FWC Settlement
Entity may pledge and assign amounts paid and payable under this section in
connection with 1 or more loans entered into by it as provided in the Michigan strategic
fund act, 1984 PA 270, MCL 125.2001 to 125.2094, and to pay the expenses,
costs, and fees associated with the Special Purpose FWC Settlement Entity. The Special
Purpose FWC Settlement Entity may not otherwise pledge or assign those payments
for any other purpose. A pledge or assignment made under this subsection shall
be conclusively presumed to be valid for all purposes unless challenged in an
action brought in the court of appeals within 30 days after the pledge or assignment.
All challenges shall be heard and determined as expeditiously as possible with priority
over other matters. Consideration by the court of appeals shall be based solely
on the record before the settlement was approved by the court and briefs to the
court shall be limited to whether the pledge or assignment conforms to the state
constitution of 1963, the laws of this state, and the laws of the United States
and is within the authority of the Flint settlement trust fund under this act
and the Michigan strategic fund act, 1984 PA 270, MCL 125.2001 to 125.2094.
(8) The amounts
paid and payable under this section represent offers of settlement and
compromise of any claim or claims that were or could have been asserted by the
plaintiffs in In re Flint Water
Cases, No.
5:16-cv-10444-JEL-MKM (ED Mich) in full satisfaction of those claims. This
section shall not be construed to constitute an admission of liability to the
plaintiffs or a waiver of any defense that is or would have been available to
this state or its agencies, employees, or agents in any litigation or future
litigation with a plaintiff.
(9) As used in this section, "Special Purpose FWC Settlement Entity" means the Special Purpose FWC Settlement Entity described in the settlement agreement approved by the court in In re Flint Water Cases, No. 5:16-cv-10444-JEL-MKM (ED Mich).