Bill
SB 913
Creates a permanent 21st Century Jobs Trust Fund in Michigan, funded by $75M/year from tobacco settlements, with earnings to General Fund and principal preserved.
SB 913 (2025-2026) – Michigan: State management of the 21st Century Jobs Trust Fund; remove sunset and specify deposits from tobacco settlement revenues
Overview
- Purpose: Amend the Michigan Trust Fund Act to establish and govern the ongoing management, funding, and use of the 21st Century Jobs Trust Fund, including deposits from tobacco settlement revenues, and to eliminate the sunset provision that would otherwise limit fund duration.
- Introduced: April 22, 2026. Sponsored by Senator Darrin Camilleri (co-sponsor).
Key Provisions and Changes
1) Establishment and composition of the fund
- The 21st Century Jobs Trust Fund is created within the Michigan Department of the Treasury.
- The fund consists of:
- Net proceeds from tobacco settlement revenues to the Tobacco Settlement Finance Authority (as specified by the related act).
- General Fund appropriations (as specified in statute).
- Amounts deposited per the Early Stage Venture Investment Act (2003 PA 296), sections 7(c)(i) or 33.
- Donations and money from other sources, per the act’s language.
- The fund is meant to support long-term state investment in job creation and related initiatives.
2) Investment oversight and restrictions
- The State Treasurer must direct investments for the fund, with accounting separate from general state cash.
- Investment options authorized include:
- Investments allowed for surplus state funds under 1855 PA 105.
- Obligations of states, political subdivisions, or U.S. instrumentalities.
- Obligations issued or guaranteed by solvent U.S. entities/states.
- The Treasurer must comply with the Divestment from Terror Act (2008 PA 234) when investing.
3) Fund permanence and earnings
- Principal and balances in the fund at the close of each fiscal year generally remain in the fund (no automatic revert to the General Fund), preserving corpus for long-term use.
- Interest and earnings earned from investments are to be deposited into the General Fund (i.e., earnings flow to the general state budget, not the fund’s principal).
4) Mandatory deposits from tobacco settlement revenues
- Beginning in FY 2008 and through FY 2026, $75,000,000 of tobacco settlement revenue (excluding amounts defined as TSR under the Tobacco Settlement Finance Authority Act) must be deposited into the 21st Century Jobs Trust Fund each year.
- This creates a recurring stream from tobacco settlement dollars into the fund, aligning with the intent to leverage tobacco-related revenues for job-creating investments.
5) Administration and disbursement
- The State Treasurer is tasked with transferring and disbursing money from the fund in accordance with section 8 (as defined in the bill and related act provisions).
Who is affected
- State government and the Department of Treasury: new fund creation, investment governance, and annual deposits.
- Tobacco settlement revenue recipients and related authorities: income redirected into the fund through specified mechanisms.
- General funds and appropriations processes: potential impact on General Fund earnings (through the earmarking of investment earnings to the General Fund) and annual appropriations connected to the fund.
- Stakeholders in Michigan’s economic development and venture investments: beneficiaries of long-term funding for job creation and early-stage investments.
Timeline and Procedural Aspects
- The bill specifies deposits beginning in FY 2008 and continuing through FY 2026, at a fixed level of $75 million per year, contributing tobacco settlement revenue to the fund.
- The bill was introduced and referred to the Appropriations Committee on April 22, 2026, indicating it will undergo budgetary and fiscal review before potential passage.
Overall Impact
- SB 913 aims to institutionalize a stable, investable fund to support Michigan job creation and economic development, while ensuring a defined, recurring inflow from tobacco settlement revenues and maintaining earnings within the fund rather than allowing principal to revert to the General Fund. It also sets investment standards and compliance requirements to govern the fund’s assets.
Compiled from official sources — confirm details with the bill’s official record.
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