Signed by Governor Gretchen Whitmer

Vote Smart's Synopsis:

Vote to concur with House amendments and further amend a bill that amends requirements for legislatively directed spending items in Michigan.

Highlights:

• Prohibits a state department or agency from expending money that was appropriated as a legislatively directed spending item (Sec. 364).

• Prohibits a legislator who does not hold a leadership position from requesting a legislatively directed spending item that would not benefit the residents of their district (Sec. 364).

• Prohibits for-profit entities from receiving a legislatively directed spending item (Sec. 364).

• Specifies that a nonprofit entity is eligible to receive a legislatively directed spending item if all of the following requirements are met (Sec. 364):

• The nonprofit has continuously operated in the state for at least the most recent 3 years;

• The nonprofit had a physical office in the state during the most recent 1-year period; and

• The nonprofit has a board of directors.

• Requires nonprofit entities that receive a legislatively directed spending item to submit a form 990, 990-EZ, or other 990-series return for the most recent tax year (Sec. 364).

• Requires information detailing legislatively directed spending items to be made available on the websites of the House and Senate at least 45 days before the bill containing the spending item is passed by both chambers (Sec. 364).

• Requires the auditor general to evaluate the management of legislatively directed spending items as part of their annual financial audits of state agencies (Sec. 364).

• Defines “legislatively directed spending item” as an appropriation of a specific amount of money for a contract or other expenditure with a grant, loan, or other economic assistance to a specific entity, local unit of government, or project/activity in a local unit of government (Sec. 364).

• Specifies that this Act takes effect January 1, 2026, only if House Bill 4420 is enacted into law (Sec. 1-2).

Full Bill Text

Vote Smart's Synopsis:

Vote to amend and pass a bill that requires legislators to submit legislatively directed spending items at least 10 days before a floor vote, and prohibits for-profit entities from receiving legislatively directed spending items in Michigan.

Highlights:

• Prohibits a state department or agency from expending money that was appropriated as a legislatively directed spending item (Sec. 364).

• Requires legislators to submit a request for a legislatively directed spending item at least 10 days before the date that the bill containing the item is passed by both chambers of the legislature (Sec. 364).

• Specifies that the House or Senate may require a legislator to submit a request for a legislatively directed spending item at an earlier date (Sec. 364).

• Prohibits a legislator who does not hold a leadership position from requesting a legislatively directed spending item that would not benefit the residents of their district (Sec. 364).

• Prohibits for-profit entities from receiving a legislatively directed spending item (Sec. 364).

• Specifies that a nonprofit entity is eligible to receive a legislatively directed spending item if all of the following requirements are met (Sec. 364):

• The nonprofit has continuously operated in the state for at least the most recent 3 years;

• The nonprofit had a physical office in the state during the most recent 1-year period; and

• The nonprofit has a board of directors.

• Requires information detailing legislatively directed spending items that are requested and passed to be made available on the websites of the House and Senate (Sec. 364).

• Defines “legislatively directed spending item” as an appropriation of a specific amount of money for a contract or other expenditure with a grant, loan, or other economic assistance to a specific entity, local unit of government, or project/activity in a local unit of government (Sec. 364).

• Specifies that this Act takes effect January 1, 2026, only if House Bill 4420 is enacted into law (Sec. 1-2).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that requires legislators to submit legislatively directed spending items at least 10 days before a floor vote, and prohibits for-profit entities from receiving legislatively directed spending items in Michigan.

Highlights:

• Prohibits a state department or agency from expending money that was appropriated as a legislatively directed spending item (Sec. 364).

• Requires legislators to submit a request for a legislatively directed spending item at least 10 days before the date that the bill containing the item is passed by both chambers of the legislature (Sec. 364).

• Specifies that the House or Senate may require a legislator to submit a request for a legislatively directed spending item at an earlier date (Sec. 364).

• Prohibits a legislator who does not hold a leadership position from requesting a legislatively directed spending item that would not benefit the residents of their district (Sec. 364).

• Prohibits for-profit entities from receiving a legislatively directed spending item (Sec. 364).

• Specifies that a nonprofit entity is eligible to receive a legislatively directed spending item if all of the following requirements are met (Sec. 364):

• The nonprofit has continuously operated in the state for at least the most recent 3 years;

• The nonprofit had a physical office in the state during the most recent 1-year period; and

• The nonprofit has a board of directors.

• Requires information detailing legislatively directed spending items that are requested and passed to be made available on the websites of the House and Senate (Sec. 364).

• Defines “legislatively directed spending item” as an appropriation of a specific amount of money for a contract or other expenditure with a grant, loan, or other economic assistance to a specific entity, local unit of government, or project/activity in a local unit of government (Sec. 364).

• Specifies that this Act takes effect January 1, 2026, only if House Bill 4420 is enacted into law (Sec. 1-2).

Full Bill Text