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HB 5482

State agencies (existing): generally; plans to correct audit recommendations; require notification to the legislature if the executive branch fails to prepare. Amends secs. 462 & 487 of 1984 PA 431 (MCL 18.1462 & 18.1487).

2025-2026 Regular Session Introduced by Steve Frisbie and 3 co-sponsors

Michigan HB 5482 requires agencies to submit corrective action plans within 60 days after audits, with progress reports to oversight bodies.

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Bill Summary · HB 5482

Overview

House Bill 5482 (2025-2026) from Michigan would amend the Management and Budget Act (1984 PA 431) to strengthen how state agencies respond to audit findings and to formalize incident reporting and remediation processes. The bill, introduced Jan. 27, 2026, focuses on requiring formal corrective action plans after audits and establishing notification and reporting requirements if the executive branch fails to prepare or implement those plans.

Main purpose and intent

  • Improve accountability and follow-through on audit recommendations and identified material weaknesses.
  • Create standardized procedures for developing, distributing, and monitoring corrective action plans.
  • Ensure prompt communication to legislative and executive branch oversight bodies when agencies fail to comply or when serious problems are identified.

Key provisions and changes

Section 462 – Audit follow-up and corrective action plans

  • After completion of an audit (including audits by the Auditor General), the principal executive officer of the audited state agency must, within 60 days, submit a plan to comply with audit recommendations to the State Budget Office.
  • The plan must be prepared per procedures set by the State Budget Director and distributed under the administrative guide to state government.
  • Copies of the plan must be distributed to:
    • Relevant legislative appropriations subcommittees and standing/oversight committees (both House and Senate)
    • Fiscal agencies, Auditor General, and the Executive Office
  • The State Budget Director will develop procedures for principal departments to follow in developing corrective action plans and ensure alignment with reinforcing procedures from the principal department.
  • Principal departments must periodically report progress on remediating material weaknesses on a schedule prescribed by the State Budget Director.
  • If a principal executive officer fails to comply, the State Budget Director must notify the relevant legislative committees, fiscal agencies, Auditor General, and the Executive Office of the failure.

Section 487 – Internal reporting and corrective action plans

  • Internal auditors and department management must immediately report to the department head any particularly serious or flagrant problems, abuses, or deficiencies related to programs or operations.
  • If criminal activity is suspected, the department head must promptly report to the Governor, Attorney General, and Auditor General as required by section 484.
  • Departments must establish incident reporting protocols, approved by the principal department director, to capture all serious incidents by state employees or external entities.
  • Within 60 days of receiving a report, the department head must submit a plan to correct the problems/deficiencies to the State Budget Director.
  • Within 30 days after the Budget Director receives the plan, copies must be submitted to the Auditor General and to the Senate and House appropriations committees.
  • If a department head fails to submit a corrective plan, the Budget Director must notify the relevant legislative committees and offices of the failure.
  • The section clarifies that it does not authorize public disclosure of information that is part of ongoing criminal investigations or legally protected from disclosure.

Who is affected

  • Principal executive officers of state agencies (responsible for submitting corrective action plans and reporting progress).
  • State Budget Director (responsible for establishing procedures and monitoring compliance; issuing notices of non-compliance).
  • Internal auditors and department managers (required to report serious issues and participate in corrective planning).
  • Legislative bodies (House and Senate Appropriations Subcommittees, standing and oversight committees) and fiscal agencies (as recipients of plans and progress reports).
  • Auditor General (receives copies of corrective plans and is kept informed of compliance).
  • Executive Office (notified in cases of non-compliance).

Procedural and timeline aspects

  • 60-day deadline for agencies to submit corrective action plans after audit completion.
  • Plans must be prepared and distributed according to procedures set by the State Budget Director and the administrative guide.
  • Progress on remediation of material weaknesses to be reported on a schedule determined by the State Budget Director.
  • If non-compliance occurs, the State Budget Director must notify designated legislative bodies and offices.
  • For internal reports of serious problems: 60-day window for the department head to submit a corrective plan after receipt of a report; 30-day window for the Budget Director to forward the plan to the Auditor General and legislative committees.
  • Provisions prohibit public disclosure of information that is part of ongoing criminal investigations or legally protected information.

Potential impact

  • Increased timeliness and accountability in addressing audit recommendations.
  • Greater visibility of agency remediation efforts to legislators and oversight bodies.
  • Formalized processes for incident reporting and the rapid escalation of serious issues.
  • Potential administrative burden on agencies to develop and track corrective action plans and progress reports.
  • Enhanced transparency regarding material weaknesses and corrective actions, potentially improving governance and public trust.

If you’d like, I can tailor this summary for a specific audience (e.g., policymakers, agency staff, or the general public) or add a brief comparative note with similar provisions in other states.

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

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