SB0988, As Passed House, Sep, 22, 2016

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 988

     A bill to amend 2000 PA 489, entitled

"Michigan trust fund act,"

by amending sections 2 and 6 (MCL 12.252 and 12.256), section 2 as

amended by 2016 PA 193, and by adding section 11.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 2. As used in this act:

     (a) "Community district education trust fund" means the

community district education trust fund created in section 12.

     (b) "Health services fund" means the health services fund

created in section 11.

(c) (b) "Medicaid benefits trust fund" means the Michigan

Medicaid benefits trust fund established in section 5.

(d) (c) "Medicaid program" means a program for medical

assistance established under title XIX of the social security act,

42 USC 1396 to 1396w-5.

(e) (d) "Medicaid special financing payments" means the

Medicaid special adjustor payments each year authorized in the

department of community health appropriations act.

(f) (e) "Michigan merit award trust fund" means the Michigan

merit award trust fund established in section 9.

(g) (f) "Tobacco settlement revenue" means money received by

this state that is attributable to the master settlement agreement

incorporated into a consent decree and final judgment entered into

on December 7, 1998 in Kelly Ex Rel. Michigan v Philip Morris

Incorporated, et al., Ingham County circuit court, docket no. 96-

84281CZ, including any rights to receive money attributable to the

master settlement agreement that has been sold by this state.

(h) (g) "21st century jobs trust fund" means the 21st century

jobs trust fund established in section 7.

     Sec. 6. The legislature shall authorize the expenditure of

medicaid Medicaid benefits trust fund revenues through an

appropriation act only for 1 or more of the following purposes:

     (a) To finance a shortfall in the medicaid Medicaid program

due to a disallowance of medicaid Medicaid payments from the

federal government.

     (b) To offset any decline in revenue caused by federal

medicaid Medicaid policy changes.

     (c) For any other purpose as provided by law.

     Sec. 11. (1) The health services fund is created within the

state treasury.

     (2) The state treasurer may receive money or other assets from

any source for deposit into the health services fund. The state

treasurer shall direct the investment of the health services fund.

The state treasurer shall credit to the health services fund

interest and earnings from health services fund investments.

     (3) Money in the health services fund at the close of the

fiscal year shall remain in the health services fund and shall not

lapse to the general fund.

     (4) The department of treasury shall be the administrator of

the health services fund for auditing purposes.

     (5) The department of treasury shall expend money from the

health services fund, upon appropriation, only as provided in this

section. On the first day of each month, the state treasurer shall

make a distribution from the health services fund in the following

order of priority:

     (a) Per state fiscal year, not less than $2,000,000.00 to the

fund described in section 5402 of the natural resources and

environmental protection act, 1994 PA 451, MCL 324.5402. The funds

distributed subject to this subdivision shall be used exclusively

for assisting qualified water suppliers in satisfying the

requirements of the federal safe drinking water act described in

section 5402 of the natural resources and environmental protection

act, 1994 PA 451, MCL 324.5402, and for the distribution of low-

interest loans and grants to community and noncommunity qualified

water suppliers.

     (b) Per state fiscal year, not less than $100,000,000.00 shall

be distributed to the department of health and human services for

community mental health non-Medicaid services. No less than 5% of

the funds distributed subject to this subdivision shall be used to

support statewide adverse childhood experience intervention

services.

     (c) Per state fiscal year, not less than $30,000,000.00 shall

be distributed to the department of health and human services for

local public health for non-Medicaid services.

     (d) Per state fiscal year, except as otherwise provided in

this subdivision, not less than $204,000,000.00 shall be

distributed to the department of health and human services for the

federal Medicare pharmaceutical program. For the fiscal year 2016-

2017 only, not less than $150,000,000.00 shall be distributed to

the department of health and human services for the federal

Medicare pharmaceutical program.

     (e) After the distributions described in subdivisions (a) to

(d), an amount that equals the remaining funds available shall be

distributed to the department of corrections for clinical and

mental health services.

     (6) Money deposited into the health services fund pursuant to

this section shall not be used for any Medicaid benefits provided

under the medical assistance program created under sections 105 and

105d of the social welfare act, 1939 PA 280, MCL 400.105 and

400.105d, or for the medical services administration within the

department of health and human services for the administration of

the medical assistance program created under sections 105 and 105d

of the social welfare act, 1939 PA 280, MCL 400.105 and 400.105d.

     Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 98th Legislature are

enacted into law:

     (a) Senate Bill No. 987.

     (b) Senate Bill No. 989.

     (c) Senate Bill No. 990.