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HB 4457

Health facilities: employees; use of state funds to discourage unionization; prohibit and provide remedies for. Amends 1978 PA 368 (MCL 333.1101 - 333.25211) by adding sec. 20176b.

2025-2026 Regular Session Introduced by Joey Andrews and 34 co-sponsors

Prohibits state-funded health facilities from using funds to interfere with or discourage unionization; requires records, quarterly reports, audits, and penalties.

bill electronically reproduced 05/06/2025
#healthfacilities:employees #labor:organizations #stateagencies(existing):licensingandregulatoryaffairs #statemanagement:funds
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Bill Summary · HB 4457

Summary of HB 4457 (Health facilities: employees; use of state funds to discourage unionization)

Overview

HB 4457 would add a new section (Sec. 20176b) to the Public Health Code (1978 Public Act 368) that governs how health facilities and agencies use state money. The bill prohibits the use of state funds to interfere with or discourage unionization and sets up record-keeping, reporting, auditing, and remedies for violations. It targets health facilities or agencies that receive state money and seeks to ensure expenditures are transparent and not used to suppress employees’ rights to organize.

  • Introduced: March 11, 2025
  • Introduced by: Rep. Longjohn and co-sponsors
  • Status: electronically reproduced May 6, 2025; referred to the Committee on Economic Competitiveness
  • Legislative intent: prevent use of state funds to influence unionization while preserving rights to collective bargaining

Key Provisions

  • Prohibition on use of state funds to affect unionization
    A health facility or agency receiving state money may not use those funds to interfere with or discourage unionization. The clause clarifies that it does not limit lawful activities related to negotiation and enforcement of a collective bargaining agreement.

  • Record-keeping requirements
    Facilities must maintain accurate records of all expenditures funded by the state. Records must show whether state money was used to interfere with or discourage unionization. If state money is designated for a specific use, expenditures must be accounted for accordingly; if not, funds must be allocated on a pro rata basis to related expenditures.

  • Quarterly reporting to the department
    Facilities must submit quarterly reports to the department, detailing each expenditure of state money. Reports are due within 30 days after the end of each calendar quarter (four reports per year).

  • Audits
    The department may audit records at any time, either on its own initiative or in response to a credible complaint, to verify compliance.

  • Enforcement and remedies
    If a facility violates record-keeping, reporting, or access provisions, the department may determine noncompliance. Violations can trigger civil liability, with the state able to seek damages equal to the full value of the misused state money. Damages go to the general fund. Courts may award costs and attorney fees; frivolous actions may incur sanctions. A facility adjudicated to have violated the section becomes ineligible to receive state money for three years after judgment.

Definitions (key terms)

  • “Interfere with or discourage unionization” includes targeted communications, hiring consultants to deter union activity, meetings to dissuade unionizing, or planning activities that impede a labor organization.
  • “State money” and “receive state money” include grants, contracts, reimbursements, or any direct or indirect funds or resources provided by the state.
  • “Unionization” means organizing employees for collective bargaining.
  • Other terms define the scope of who is subject and what constitutes use of state money.

Affected Parties and Impact

  • Primary: Health facilities and agencies that receive state money (grants, contracts, reimbursements, or other direct payments).
  • Impact: Increased transparency and accountability in how state funds are used; added protections for employees’ rights to organize; potential penalties for misallocation or interference.

Timeline and Process

  • Filed: March 11, 2025
  • First reading: April 3, 2025
  • Referred: April 3, 2025 (to Committee on Economic Competitiveness)
  • Reproduction/availability: May 6, 2025

This bill would, if enacted, create a clear framework to ensure state-funded health facilities neither influence nor suppress union activity, with explicit reporting, audit, and remedy mechanisms.

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

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