MI HB6578

Increases the total net proceeds from the sale of Michigan's tobacco settlement receipts from $815,000,000 to $1,215,000,000.

Allocates $400,000,000 to the Michigan Merit Award Trust Fund and $400,000,000 to the Michigan Trust Fund Act (sections 7 and 8), with $207,800,000 to the state school aid fund and the remaining balance to the general fund.

Authorizes the state budget director and administrative board to sell tobacco settlement receipts to the Michigan Tobacco Settlement Finance Authority or other parties, with net proceeds not exceeding $400,000,000 if sold to parties other than the authority.

Permits the sale agreement to include provisions for refunding and refinancing bonds with additional net proceeds of up to $60,000,000, with any resulting proceeds deposited in the general fund.

Clarifies that sales of tobacco receipts constitute true sales and absolute transfers of property to the authority, with the state retaining no right, title, or interest in the sold receipts after the sale's effective date.