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HB 4505

State management: funds; money in the disaster and emergency contingency fund; modify the required minimum and maximum amount of. Amends sec. 18 of 1976 PA 390 (MCL 30.418).

2025-2026 Regular Session Introduced by Mike Mueller

Raises the Disaster and Emergency Contingency Fund’s minimum to 7.5M and maximum to 15M to maintain larger reserves for state emergency operations.

bill electronically reproduced 05/21/2025
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Bill Summary · HB 4505

Summary — HB 4505 (2025)

Amends section 18 of the Emergency Management Act (1976 PA 390; MCL 30.418) to change the required minimum and maximum balances of the Disaster and Emergency Contingency Fund and clarify administration and allowable uses.

Purpose

To increase the target range for the State’s Disaster and Emergency Contingency Fund so the fund maintains larger reserves available for state emergency operations and to clarify certain administrative and expenditure provisions.

Key provisions

  • Modifies the required fund balance:
    • Maximum fund level increased from $10,000,000 to $15,000,000.
    • Minimum fund level increased from $2,500,000 to $7,500,000.
  • Administrative clarifications:
    • Confirms the director (of the relevant emergency management agency) administers the fund and must provide an annual accounting of expenditures to the Legislature.
    • Requires the Legislature to appropriate sufficient funds to maintain the fund within the new minimum/maximum range.
  • Carryforward and investments:
    • Unexpended and unencumbered fund balances do not lapse to the General Fund at fiscal year-end; they are carried forward.
    • The State Treasurer directs investments of the fund and credits interest and earnings to the fund.
  • Permitted expenditures (upon appropriation):
    • May be used to pay necessary and reasonable overtime, travel, and subsistence for state agency employees acting at the director’s direction in disaster/emergency operations.
    • With the governor’s (or designee’s) concurrence, may be used for other needs required to mitigate or respond to a disaster or emergency.
    • The director may deposit reimbursements (including federal reimbursements) into the fund.
    • If a presidential major disaster/emergency is declared and the governor authorizes, funds may be expended (upon appropriation) to pay the state’s matching share for federal disaster grants under the Disaster Relief Act of 1974 (Public Law 93‑288, 42 U.S.C. §5121 et seq.).

Who is affected

  • State emergency management director and relevant state agencies (use for personnel costs and response activities).
  • Governor (concurrence/authorization for certain expenditures).
  • State Treasurer (investment responsibility).
  • Legislature (annual accounting and appropriation responsibility).
  • Indirectly, residents and communities that rely on state emergency response capacity (through potentially larger immediate resources for response and matching federal grants).

Fiscal and policy implications

  • Raises the fund’s reserve floor by $5.0 million (from $2.5M to $7.5M) and raises the ceiling by $5.0 million (from $10M to $15M). This increases the amount of state resources reserved for emergencies and may reduce the availability of those amounts for other near‑term appropriations unless the Legislature provides additional revenue or reallocations.
  • May improve the State’s ability to cover immediate response costs and to meet federal matching requirements quickly.
  • No detailed fiscal note included in the bill text; net budgetary impact depends on legislative appropriations and any reimbursements received.

Procedural status (selected)

  • Filed: March 12, 2025
  • Referred to Intergovernmental Affairs: April 3, 2025
  • Committee hearings and substitute considered: April 15 & April 28, 2025; reported favorably as substituted
  • Placed on General State Calendar: May 12, 2025
  • Passed (House): May 16, 2025 (read 3rd time; record vote)
  • Received from the House: May 19, 2025
  • Electronically reproduced/Introduced (House) and referred to Committee on Appropriations: May 21, 2025
  • Companion bill: SB 208

Statutory reference

Amends: 1976 PA 390, section 18 (MCL 30.418), as amended by 2018 PA 263.

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

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