SENATE  BILL 
No. 882



   November 4, 1999, Introduced by Senators SCHWARZ, GAST, JOHNSON and SHUGARS 
        and referred to the Committee on Appropriations.



        A bill to create certain funds; to provide for the opera-

   tion, investment, and expenditure of certain funds; and to impose

   certain duties and requirements on certain state officials.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 1.  This act shall be known and may be cited as the

 2    "Michigan tobacco settlement trust fund act".

 3         Sec. 2.  As used in this act:

 4         (a) "Tobacco settlement revenue" means money received by

 5    this state that is attributable to the master settlement agree-

 6    ment incorporated into a consent decree and final judgment

 7    entered into on December 7, 1998 in Kelly Ex Rel. Michigan v

 8    Philip Morris Incorporated, et al., Ingham county circuit
             court,

 9    docket no. 96-84281CZ.

10         (b) "Tobacco settlement trust fund" means the Michigan

11    tobacco settlement trust fund established in section 3.


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 1         Sec. 3.  (1) The Michigan tobacco settlement trust fund is

 2    established in the department of treasury.  The trust fund shall

 3    consist only of interest and earnings from trust fund invest-

 4    ments, donations of money made to the trust fund from any source,

 5    and the following percentages of tobacco settlement revenue:

 6         (a) Seventy percent of the tobacco settlement revenue

 7    received in fiscal year 1999-2000.

 8         (b) Fifty percent of the tobacco settlement revenue received

 9    in fiscal year 2000-2001.

10         (c) Twenty-five percent of the tobacco settlement revenue

11    received in fiscal year 2001-2002 and each subsequent fiscal

12    year.

13         (2) The state treasurer shall direct the investment of the

14    tobacco settlement trust fund.

15         Sec. 4.  The legislature shall authorize the expenditure of

16    tobacco settlement trust fund revenues through an appropriation

17    act.























   05090'99          Final page.                            JLB