State management: funds; money in the 21st century jobs trust fund; modify disbursement of. Amends sec. 7 of 2000 PA 489 (MCL 12.257).
Summary
Senate Bill 574 amends Michigan’s law governing the 21st Century Jobs Trust Fund. The bill keeps the fund in the Department of Treasury and preserves its existing revenue sources, including tobacco settlement proceeds, certain general fund appropriations, and deposits tied to early-stage venture investment programs. It also continues the state treasurer’s authority to invest the fund under Michigan’s public investment laws, requires separate accounting, and directs compliance with the state’s divestment-from-terror requirements.
The bill’s main operational change is to continue the annual deposit of $75 million in tobacco settlement revenue into the trust fund through fiscal year 2026, while leaving end-of-year balances in the fund rather than reverting them to the general fund. Interest and earnings from the fund’s investments still go to the general fund, and the treasurer must transfer and disburse money from the fund under the existing statutory framework. The act took immediate effect upon the governor’s approval on October 7, 2025.
Impact
SB 574 modifies section 7 of 2000 PA 489, affecting the legal structure and cash flow of the 21st Century Jobs Trust Fund. It preserves the fund’s dedicated revenue stream and investment rules, extends the annual tobacco-settlement deposit through fiscal year 2026, and maintains the separation of principal from the general fund while routing investment earnings to the general fund. The bill primarily affects the state treasury, the state treasurer, and programs financed through the trust fund, including economic development and venture investment-related activities.
Sentiment
The bill appears to have received mixed but ultimately favorable legislative support. It passed the Senate by a narrow margin, 19-17, suggesting some concern or disagreement in that chamber, but it then passed the House overwhelmingly, 104-5, and was given immediate effect. The final enactment indicates broad acceptance of the fund’s continued operation, even if the Senate vote shows the issue was not unanimous.
Contention
The likely point of contention was the continued diversion of $75 million in tobacco settlement revenue into the trust fund through fiscal year 2026, rather than allowing those dollars to flow elsewhere, including the general fund. Senators who voted no may have objected to the fiscal prioritization or the continued earmarking of settlement revenue, while House support suggests stronger agreement on preserving the fund for economic development purposes. No committee transcript is available, so the record does not show detailed debate beyond the vote pattern.