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HB 4420

State management: funds; form to disclose legislatively directed spending items; create. Amends 1984 PA 431 (MCL 18.1101 - 18.1594) by adding sec. 364a. TIE BAR WITH: SB 0596'25

2025-2026 Regular Session Introduced by Matt Bierlein and 12 co-sponsors

Requires disclosure of legislatively directed spending items (earmarks): sponsor, recipient, purpose, funding; bars for-profit groups; DTMB posts forms and updates.

assigned PA 32'25 with immediate effect
#appropriations:other #statemanagement:funds
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Bill Summary · HB 4420

Summary — HB 4420 (Enrolled as PA 32 of 2025)

Title: State management: funds; form to disclose legislatively directed spending items; create. (Amends 1984 PA 431 by adding sec. 364a)

Main purpose / intent

The law establishes a standardized public disclosure process and timing conditions for legislatively directed spending items (LDSIs, sometimes called enhancement grants or earmarks). Its intent is to increase transparency about who sponsors such items, who would receive the funding, and the public purpose for the expenditure before funds are expended.

Key provisions

  • Requires a prescribed public disclosure form for each LDSI. The form (as adopted) collects:
    • Sponsoring and cosponsoring legislator names;
    • Intended recipient and physical address, intended project location, and recipient Employer Identification Number (EIN);
    • Requested amount and estimated completion timeframe;
    • Purpose and explanation of public benefit / demonstration it is not a local/private purpose;
    • Whether recipient received federal/state/local funding in the prior 5 years (and amounts);
    • For nonprofit recipients: verification of continuous Michigan operation (36 months), a Michigan physical office (12 months), a board of directors and listing of officers/active members.
    • Certification signed by the sponsoring legislator that they, their immediate family, and legislative staff have no direct or indirect pecuniary interest, and that recipient is not a for‑profit entity.
  • Eligibility and prohibitions:
    • For‑profit businesses are ineligible to receive LDSIs.
    • LDSIs may not be used to pay a tax lien, delinquent tax, or other obligation owed to the state.
  • Department of Technology, Management, and Budget (DTMB) duties:
    • Develop and maintain a conspicuous webpage posting completed disclosure forms.
    • Post each completed disclosure within specified timeframes (special posting rules for 2026).
    • Provide each completed form to chairs of the Senate/House appropriations committees and to the Senate and House fiscal agencies.
    • Within 30 days after an LDSI is appropriated, update the webpage with the actual appropriated amount and funding status.
    • If a nonprofit receives an LDSI, the nonprofit must provide its most recent 990-series IRS return to DTMB within 30 days; DTMB must post it to the webpage (to the extent permitted by law) within 10 business days of receipt.

Definitions (selected)

  • "Legislatively directed spending item" / "enhancement grant": appropriation for a specific amount to a specific person/organization/unit/project outside of a formula or competitive award.
  • "Immediate family member": parent, child, sibling, spouse, or any other person residing in the same household.
  • "Staff member": currently or within prior 2 years employed by the Michigan Senate or House.

Who is affected

  • Sponsoring legislators and their staff (must complete and certify forms);
  • Intended recipients (nonprofits must meet eligibility criteria and provide 990s; for‑profits are barred);
  • DTMB (webpage development, posting, recordkeeping);
  • Appropriations committee chairs and fiscal agencies (receive disclosures);
  • State agencies administering appropriated funds.

Timeline / procedural status

  • Introduced: March 11, 2025.
  • Passed House (with substitute) June 4, 2025; passed Senate with substitutes and concurrence later in 2025.
  • Enacted as Public Act No. 32 of 2025 (approved by Governor Nov 18, 2025).
  • Effective date: January 1, 2026.
  • Fiscal impact: expected to be minimal—primarily DTMB web and administrative costs.

Note: several legislative substitute versions included a tie‑bar reference to Senate Bill 596; the adopted/enrolled text and Public Act reflect the final form described above.

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

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