SENATE BILL No. 861

 

 

March 11, 2014, Introduced by Senator RICHARDVILLE and referred to the Committee on Families, Seniors and Human Services.

 

 

 

     A bill to amend 1982 PA 249, entitled

 

"An act to establish the state children's trust fund in the

department of treasury; and to provide certain powers and duties of

the department of treasury with respect to the trust fund,"

 

by amending section 1 (MCL 21.171), as amended by 2008 PA 238.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. (1) The children's trust fund is created as a

 

charitable and educational endowment fund in the department of

 

treasury. The fund shall be expended only as provided in this

 

section.

 

     (2) The state treasurer shall credit to the trust fund all

 

amounts appropriated for this purpose under section 475 of the

 

income tax act of 1967, 1967 PA 281, MCL 206.475, any amounts

 

received under section 811j of the Michigan vehicle code, 1949 PA

 

300, MCL 257.811j, and section 8 of the child abuse and neglect


 

prevention act, 1982 PA 250, MCL 722.608, and any amounts received

 

from civil fines imposed under the playground equipment safety act,

 

1997 PA 16, MCL 408.681 to 408.687.

 

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

 

trust fund. The state treasurer shall have the same authority to

 

invest the assets of the trust fund as is granted to an investment

 

fiduciary under the public employee retirement system investment

 

act, 1965 PA 314, MCL 38.1132 to 38.1140m. 38.1141. The state

 

treasurer shall comply with the divestment from terror act, 2008 PA

 

234, MCL 129.291 to 129.301, in making investments under this act.

 

     (4) Not more than 1/2 of the money contributed to the trust

 

fund each year, plus the interest and earnings, excluding

 

unrealized gains and losses, credited to the trust fund during the

 

previous fiscal year, Beginning in fiscal year 2015 and continuing

 

through fiscal year 2017, all money contributed to the fund that

 

year, plus 4.25% of the 12-quarter rolling average of the fund,

 

including unrealized gains and losses, shall be available for

 

disbursement upon the authorization of the state board as provided

 

in section 9 of the child abuse and neglect prevention act, 1982 PA

 

250, MCL 722.609.

 

     (5) On October 1, 2017, provided that the rolling average of

 

the fund for the previous 12 quarters, including unrealized gains

 

and losses, is at least $23,500,000.00, then, beginning with fiscal

 

year 2018, up to 5% of the 12-quarter rolling average shall be

 

available for disbursement as specified in this subsection.

 

     (6) (5) Money granted or received as gifts or donations to the

 

trust fund shall be available for disbursement upon appropriation


 

under section 8 of the child abuse and neglect prevention act, 1982

 

PA 250, MCL 722.608, and funds authorized for expenditure shall not

 

be considered assets of the trust fund for the purposes of

 

subsection (4).

 

     (7) (6) The state treasurer shall annually prepare an

 

accounting of revenues and expenditures from the trust fund. This

 

accounting shall specifically identify the interest and earnings of

 

the trust fund, shall describe how the amount of interest and

 

earnings has been affected by the expanded investment options

 

provided for in subsection (3), and shall identify how the

 

increased interest and earnings, if any, have been expended. This

 

accounting shall be provided to the senate and house of

 

representatives appropriations committees.

 

     (8) (7) As used in this section, "trust fund" means the

 

children's trust fund created in subsection (1).