(1) The state campaign fund is hereby created. The state treasurer shall administer the state campaign fund in accordance with this act.

    (2) An individual whose tax liability under the income tax act of 1967, 1967 PA 281, MCL 206.1 to 206.532, for a taxable year is $3.00 or more may designate that $3.00 be credited to the state campaign fund. In the case of a joint return of husband and wife having an income tax liability of $6.00 or more, each spouse may designate that $3.00 be credited to the state campaign fund.

    (3) The tax designation authorized in this section shall be clearly and unambiguously printed on the first page of the state individual income tax return.

    (4) Except as otherwise provided in this section, an amount equal to the cumulative amounts designated under subsection (2) each year shall be appropriated annually from the general fund of this state to the state campaign fund to be available beginning January 1 and continuing through December 31 of each year in which a governor is elected. Except as otherwise provided in this section, money appropriated under this section shall not lapse to the general fund but shall remain in the state campaign fund for distribution without fiscal year limitation except that any money remaining in the state campaign fund in excess of $10,000,000.00 on December 31 immediately following a gubernatorial general election shall lapse to the general fund.

    (5) Before the distribution of money under this act to qualifying primary election candidates, the state treasurer shall set aside sufficient money from the state campaign fund to fully implement the formula for distributing money to qualifying general election candidates. If there is insufficient money in the state campaign fund to provide full funding to eligible primary election candidates, the available money shall be distributed to those candidates on a pro rata basis.

    (6) For fiscal year 2006-2007 only, $7,200,000.00 shall be transferred from the state campaign fund to the general fund of this state.