Children: other; rolling average amount for disbursement under the children’s trust fund; increase, the official text

Act No. 62

Public Acts of 2026

Approved by the Governor

July 21, 2026

Filed with the Secretary of State

July 23, 2026

EFFECTIVE
DATE: July 23, 2026

state of michigan

103rd Legislature

Regular session of 2026

Introduced by Reps. Posthumus, Fitzgerald, Rigas, Kunse,
Borton, Bierlein and Frisbie

ENROLLED HOUSE BILL No. 4805

AN ACT 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 2014 PA 306.

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 must 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 has 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 38.1141.
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) 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, is 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) Except as otherwise provided in this subsection, 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 must be available for disbursement as specified in
this subsection. On October 1, 2017, if the rolling average of the fund for the
previous 12 quarters, including unrealized gains and losses, is less than
$23,500,000.00, then, beginning with fiscal year 2018, up to 4.25% of the
12-quarter rolling average, including unrealized gains and losses, must continue
to be available for disbursement. Beginning with the fiscal year 2025, up to 8%
of the 12-quarter rolling average must be available for disbursement as
specified in this subsection.

(6) Money granted or received as gifts or donations to the
trust fund is 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 are not considered assets of the trust fund for the
purposes of subsection (4).

(7) The state treasurer shall annually prepare an accounting
of revenues and expenditures from the trust fund. The accounting of revenues
and expenditures prepared under this subsection must specifically identify the
interest and earnings of the trust fund, describe how the amount of interest
and earnings has been affected by the expanded investment options provided for under
subsection (3), and identify how the increased interest and earnings, if any,
have been expended. The accounting of revenues and expenditures prepared under
this subsection must be provided to the senate and house of representatives
appropriations committees.

(8) As used in this section, “trust fund” means the children’s trust fund
created in subsection (1).

Enacting section 1. This amendatory act does not
take effect unless all of the following bills of the 103rd Legislature are
enacted into law:

(a) Senate Bill
No. 418.

(b) Senate Bill
No. 421.

(c) House Bill No.
4808.

This act is ordered to take
immediate effect.

Clerk of the House of
Representatives

Secretary of the Senate

Approved___________________________________________

____________________________________________________

Governor