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HB 4805

Children: other; rolling average amount for disbursement under the children’s trust fund; increase. Amends sec. 1 of 1982 PA 249 (MCL 21.171).

2025-2026 Regular Session Introduced by Matt Bierlein and 6 co-sponsors

Raises the Children’s Trust Michigan annual disbursement cap from 5% to 8% of the 12-quarter rolling average starting FY2025, expanding funding for child abuse prevention grants.

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Bill Summary · HB 4805

Summary — HB 4805 (1982 PA 249; MCL 21.171)

Title: Children: other; rolling average amount for disbursement under the children’s trust fund; increase.
Introduced: March 13, 2025 (House introduced version dated Aug 26, 2025)
Sponsor: Rep. Bryan Posthumus
Status: Reported from committee and referred to second reading (committee actions through Nov 6, 2025)
Related: Companion SB 2165; related bills HB 4806 and HB 4807 address name/administration changes for Children Trust Michigan

Purpose / intent

To increase the portion of the Children’s Trust Fund (now operating as Children Trust Michigan) that may be made available annually for disbursement to support community child abuse and neglect prevention programs.

Key provisions

  • Amends section 1 of 1982 PA 249 (MCL 21.171).
  • Changes the annual disbursement cap from up to 5% of the 12‑quarter rolling average (including unrealized gains/losses) to up to 8% of the 12‑quarter rolling average beginning with fiscal year 2025.
    • Existing threshold language remains: on Oct. 1, 2017, if the 12‑quarter rolling average was below $23,500,000 the prior disbursement rate remained at 4.25%; otherwise up to 5% applied. HB 4805 adds the 8% rate beginning FY2025.
  • Retains provisions on sources credited to the fund (income tax checkoff, certain vehicle license plate revenue, specific statutory transfers and fines).
  • Confirms the State Treasurer’s authority to direct and invest the fund with the same investment authority as an investment fiduciary under the Public Employee Retirement System Investment Act and requires compliance with the Divestment from Terror Act.
  • Requires the State Treasurer to annually prepare an accounting of fund revenues and expenditures, specifically identifying interest/earnings, effects of expanded investment options, and how any increased earnings were spent; report must be provided to House and Senate appropriations committees.
  • Clarifies treatment of gifts/donations to the fund with respect to availability and accounting.

Who is affected

  • Children Trust Michigan (the fund and its grant recipients, including local prevention partners) — potentially more funds available for grants and prevention activities.
  • State Treasurer (investment and reporting responsibilities).
  • Legislature (appropriations remain required for disbursements).

Fiscal impact / practical effect

  • House Fiscal Agency estimates a negligible administrative fiscal impact for state agencies and local government.
  • The fund’s balance (estimated at roughly $29.3 million in analysis) means increasing the distribution cap to 8% would raise the maximum amount available for appropriation, but actual disbursements remain subject to legislative appropriation and available balance.
  • No new state general fund appropriation is required; the change increases the potential yearly payout to prevention programs.

Procedural notes

  • Bill has progressed through committee (reported as substituted) and as of Nov 6, 2025 was referred to second reading. Implementation depends on enactment and subsequent appropriation actions.

Compiled from official sources — confirm details with the bill’s official record.

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