421.10a Obligation trust fund; creation; receipt and deposit of money or other assets; investment; money remaining in fund; administrator; expenditures; purpose.

295 words·~1 min read·/mi/chapter-421/421-10a

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Sec. 10a.

(1)The obligation trust fund is created as a separate fund in the state treasury. The assets of the obligation trust fund must not be commingled with any other fund and must not be considered part of the general fund of this state.

(2)The state treasurer may receive money or other assets from any source for deposit into the fund. All obligation assessments on employers collected under section 26a; all interest on payments, penalties, and damages collected in connection with the obligation assessments made under section 26a; and a portion of the proceeds of any obligations, as described in section 26a, in amounts specified by the issuer, must be deposited into the obligation trust fund. The state treasurer shall direct the investment of the fund. The state treasurer shall credit to the fund interest and earnings from fund investments.

(3)Money in the obligation trust fund at the close of the fiscal year remains in the fund and does not lapse to the general fund. Money in the fund is continuously appropriated for the purposes specified in section 26a.

(4)The department of labor and economic opportunity is the administrator of the fund for auditing purposes.

(5)The department of labor and economic opportunity shall expend money from the fund only for 1 or more of the following purposes:

(a)To pay obligations, administrative expenses, and associated expenses described in section 26a.

(b)To refund erroneously collected assessments under section 26a.

(c)For any other purpose described in section 26a(1).

History: Add. 2011, Act 268 , Imd. Eff. Dec. 19, 2011 ;-- Am. 2024, Act 240 , Eff. Apr. 2, 2025