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HB 6027

State management: funds; accounting of expenditures in the disaster and emergency contingency fund; provide for. Amends title & secs. 18 & 19 of 1976 PA 390 (MCL 30.418 & 30.419) & adds sec. 18a.

2023-2024 Regular Session Introduced by Christine Morse

The bill expands the Disaster and Emergency Contingency Fund and creates a State Hazard Mitigation Fund to fund grants for hazard mitigation and disaster response.

PLACED ON IMMEDIATE PASSAGE
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Bill Summary · HB 6027

Summary — HB 6027 (Substitutes H‑2 / H‑3)

Title: State management: funds; accounting of expenditures in the disaster and emergency contingency fund; provide for. (Amends MCL 30.418 & 30.419; adds MCL 30.418a)

Purpose

HB 6027 amends Michigan’s Emergency Management Act to (1) change statutory requirements and grant limits for the Disaster and Emergency Contingency Fund (DECF) and (2) create a new State Hazard Mitigation Fund (SHMF) to provide state-level hazard mitigation grants and carry forward unspent balances.

Key provisions

  • DECF balance requirements

    • Raises the DECF minimum required balance from $2.5 million to $10.0 million and increases the maximum allowed balance from $10.0 million to $25.0 million.
    • Requires annual accounting of DECF expenditures to the Legislature; the director administers the fund.

  • DECF grant structure (state assistance to counties/municipalities)

    • Simplifies and raises grant caps:
    • Local units with population under 75,000: up to $1,000,000.
    • Local units with population of 75,000 or more: up to $2,000,000.
    • Grants still may not exceed 10% of the applying entity’s total annual operating budget for the preceding fiscal year, whichever is less.
    • Continues existing application and eligibility rules (local exhaustion of resources, emergency operations plan implementation, etc.).

  • State Hazard Mitigation Fund (new MCL 30.418a)

    • SHMF created in the state treasury; treasurer may deposit money/assets from the DECF, other state or federal sources, or any source.
    • The Department (MSP/emergency management division) administers the fund; director must adopt administrative rules for applications, awards, eligible expenditures, and program administration.
    • Eligible recipients limited to FEMA hazard‑mitigation sub‑applicants: state agencies, local governments, federally recognized tribes.
    • Reimbursements limited to activities consistent with FEMA Hazard Mitigation Assistance or Stafford Act Section 406; funds may be used to rebuild infrastructure to reduce future hazard exposure.
    • Unexpended/unencumbered SHMF balances do not lapse to the General Fund (carried forward).
    • Administrative costs for program management may be paid from the fund.

  • Annual transfer rule between funds

    • Up to 20% of DECF year‑end remaining funds may be transferred into the SHMF each year, but only if the DECF balance after transfer will be $5,000,000 or more.

  • Consultation requirement

    • The Michigan Citizen‑Community Emergency Response Coordinating Council must be consulted on SHMF funding decisions.

Fiscal impact

  • Increasing the DECF minimum to $10.0M could require additional GF/GP appropriations in years when grant awards and federal matching reduce the balance below that threshold.
  • Raising DECF grant caps increases potential state assistance to local units (positive fiscal effect for eligible local governments).
  • The SHMF’s fiscal impact is indeterminate because the bill does not provide an initial deposit; SHMF expenditures would only occur after future appropriations/transfers (including possible transfers from DECF under the 20% rule).

Who is affected

  • Local governments and counties (expanded access to larger DECF grants and potential new mitigation grants through SHMF).
  • State emergency management (MSP) — responsible for administering SHMF and rulemaking.
  • State Treasurer — investment and deposit duties for both funds.

Procedural history / current status

  • Introduced in the House (Rep. Christine Morse); substitute versions (H‑2 / H‑3) adopted.
  • Passed the House Dec 13, 2024 (56–0) with immediate effect; tie‑barred to SB 1047.
  • Referred to Senate Government Operations (Dec 18, 2024).
  • Subsequent 2025 actions show the bill referred through multiple committees and subcommittees; entries indicate it was indefinitely postponed/withdrawn and later died in a subcommittee (March–June 2025). Check the legislative docket for the latest status.

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

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