Bill
HB 5523
Creates Bureau of Community Action and Economic Opportunity to administer CSBG/weatherization funds, designate CAAs with tripartite boards, advance poverty reduction in Michigan.
Status & timeline
- Introduced: Feb 22, 2024 (Rep. Carol Glanville et al.).
- Passed House: June 25, 2024. Passed Senate: Dec 11, 2024.
- Approved by Governor / Filed with Secretary of State: Jan 16, 2025.
- Assigned Public Act No. 202 of 2024; Effective date: April 2, 2025.
Purpose and intent
- Repeals the 1981 Michigan Economic and Social Opportunity Act and replaces much of it with the “Bureau of Community Action and Economic Opportunity Act.”
- Modernizes state enabling law for Community Action Agencies (CAAs) and realigns state procedures with federal Community Services Block Grant (CSBG) practice to support reduction of poverty and promote self‑sufficiency for low‑income individuals.
Key provisions / what the law does
- Creates the Bureau of Community Action and Economic Opportunity within the Department designated to receive CSBG funds (currently DHHS). Director appoints an executive director (civil service status).
- Bureau duties include: coordinating state antipoverty activities; receiving/expenditing funds; designating and assisting CAAs; providing technical assistance; entering contracts and demonstrations; conducting performance assessments; public education on poverty; evaluating statutes and recommending changes; and administering the federal Weatherization Assistance Program (10 CFR 440) with eligibility for public and nonprofit providers.
- Establishes the Commission on Community Action and Economic Opportunity (6–15 members, appointed by governor with Senate advice & consent). At least one‑third of members must be CAA representatives; the Michigan Community Action Agency Association executive director (or successor) is a nonvoting member. Commission must meet at least four times per year and provide written reports on bureau performance at least annually.
- Sets definitions (e.g., “low‑income individual” = household income at or below federal poverty guidelines).
- Designation and governance of CAAs: Bureau executive director may designate CAAs after consultation, with at least one public hearing in the proposed service area; CAAs may be local public agencies, nonprofit private agencies serving local governments, or nonprofit agencies designated by tribal governments. The Bureau may rescind a designation for cause.
- CAAs must have a tripartite board: one‑third elected officials holding office at selection (or their representatives), at least one‑third democratically selected representatives of low‑income people, and the remainder from public/private community interests.
- Requires promulgation of implementing rules.
Notable changes from prior law
- Repeals several prior statutory requirements that will not be reinstated, including:
- a statutory requirement for annual interagency agreements with other service agencies;
- a requirement that the Commission, CAA boards, or CAA advisory boards conduct business under the Open Meetings Act and make materials available under FOIA;
- a requirement that existing public/nonprofit entities performing poverty services automatically be recipients of certain funds;
- legislative public‑hearing and legislative approval steps for CSBG distribution plans.
- Replaces the term “poverty standard” with “federal poverty guidelines.”
Who is affected
- Low‑income individuals and households (as defined by federal poverty guidelines).
- Community Action Agencies (public, nonprofit, tribal designees).
- DHHS (or the department designated by the governor) — bureau administration and rulemaking.
- Local governments, nonprofit service providers, and tribal governments involved in CAAs or weatherization programs.
- The statewide Commission and stakeholders who participate in designation, oversight, and planning.
Fiscal impact
- Estimated negligible to no significant fiscal impact to state or local government. Michigan’s CSBG allocation is noted at roughly $23.0 million annually (federal funds are the primary source).
Procedural notes / authority
- The Bureau is charged to administer CSBG funds consistent with federal law (42 U.S.C. 9901–9924) and to administer weatherization funds under federal rules (10 CFR 440).
- The law requires promulgation of rules to implement its provisions.
Compiled from official sources — confirm details with the bill’s official record.
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