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
HB 4420 creates a standardized form requiring Michigan legislators to disclose any spending items they direct to specific projects or organizations. This requirement applies directly to all state legislators and state agencies when allocating funds based on legislative direction. The key mechanism mandates that this disclosure form be completed for every instance of directed spending, ensuring consistent public transparency. The bill aims to clarify and document how lawmakers influence state fund allocation without altering the underlying spending authority.
This bill was revised to rename a legislatively directed spending provision from 'Sec. 364a' to 'Sec. 1365a' and updated terminology from 'legislatively directed spending item' to 'enhancement grant.' The substantive policy content regarding disclosure requirements, eligibility criteria, and definitions remained largely unchanged, with only minor formatting and section numbering adjustments.
Scope change
The bill's scope remains focused on regulating legislatively directed spending, but the section number changed from 364a to 1365a, and the terminology was standardized to 'enhancement grant' throughout the text.
TECHNICAL
Section number changed from 364a to 1365a throughout the bill text.
Terminology updated from 'legislatively directed spending item' to 'enhancement grant' in multiple instances.
Minor formatting changes including updated page headers and document identifiers from Senate version to House substitute version.
ELIGIBILITY
Nonprofit eligibility requirements (36 months operation, 12 months office, board of directors) remained the same.
REQUIREMENT
Public disclosure and reporting requirements for enhancement grants remained substantively identical.
House Introduced Bill→As Passed by the House·7 edits·Jun 4, 2025
MODERATE
The bill was reformatted from a House Introduced version to an As Passed by the House version, with significant substantive changes to the public disclosure requirements for enhancement grants. The most notable changes include new requirements for nonprofits to submit IRS Form 990s, updated posting timelines for the department's webpage, and clarification of eligibility criteria for nonprofit organizations.
Scope change
The bill's scope expanded to include specific requirements for nonprofit organizations receiving enhancement grants, including mandatory submission of tax returns and additional eligibility verification.
REQUIREMENT
Added requirement that nonprofits must submit IRS Form 990, 990-EZ, or other 990-series returns within 30 days of receiving an enhancement grant.
Added requirement that the department update the public webpage within 30 days of an enhancement grant being appropriated to show funding amount and status.
Changed the deadline for legislators to provide enhancement grant information to the department from 14 days before April 1 to 10 business days before April 1.
TIMELINE
Changed webpage posting deadlines from 3 business days to 10 business days for both the 2026 calendar year and subsequent disclosures.
ELIGIBILITY
Clarified that nonprofit organizations must meet all three requirements (36 months operation, 12 months physical office, board of directors) to be eligible for enhancement grants.
FISCAL
Added prohibition on using enhancement grants to pay tax liens, delinquent taxes, or other obligations owed to the state.
TECHNICAL
Added a standardized public disclosure form template with specific questions for all grant recipients and additional questions for nonprofits.
As Passed by the House→As Passed by the Senate·4 edits·Dec 2, 2025
MODERATE
The bill was amended to change the terminology from 'enhancement grant' to 'legislatively directed spending item' throughout the text, aligning with updated legislative language. The Senate version also added a new condition requiring Senate Bill No. 596 to be enacted before this bill takes effect, and adjusted the section numbering from 1365a to 364a.
Scope change
The bill's scope remains focused on public disclosure requirements for legislatively directed spending, but the terminology shift reflects a broader policy framework change in how such spending is classified and tracked.
DEFINITION
Changed all references from 'enhancement grant' to 'legislatively directed spending item' to align with updated legislative definitions and terminology.
Adjusted definitions section to reflect new terminology, including changes to how 'immediate family member' and 'legislator' are defined in context.
ENFORCEMENT
Added a new condition requiring Senate Bill No. 596 to be enacted before this bill takes effect, creating a dependency on another piece of legislation.
TECHNICAL
Updated section numbering from 1365a to 364a to match the Senate's organizational structure for this type of legislation.
House Concurred Bill→Senate Concurred Bill·3 edits
MINOR
The bill text was reformatted to align with Senate concurrence standards, converting a House substitute version into a House substitute to Senate substitute version. The substantive legislative content, including the new section 364a, definitions, and enacting sections, remains unchanged. This is primarily a technical formatting adjustment rather than a policy modification.
TECHNICAL
Header information was updated to reflect Senate concurrence status and bill numbering conventions.
Line numbering and formatting were restructured to match Senate bill markup standards.
Page markers and footer information were adjusted to reflect the new bill version.
Substitute (S-4)→House Concurred Bill·3 edits
MINOR
This bill was amended to transition from a Senate substitute version to a House concurred version, primarily involving formatting and layout changes rather than substantive policy modifications. The core legislative content regarding public disclosure forms for legislatively directed spending items remains unchanged, though the document structure has been reorganized to reflect House approval. No new requirements, eligibility criteria, or funding thresholds were introduced or removed in this version.
TECHNICAL
Document title and header information were updated to reflect House concurrence rather than Senate substitution, changing the bill's official designation from 'SENATE SUBSTITUTE' to 'House substitute to senate substitute'.
Page numbering and formatting were reorganized throughout the document, with line breaks and spacing adjusted to conform to House bill standards while maintaining identical substantive content.
Minor text corrections were made, including capitalization changes in the opening phrase ('THE PEOPLE' to 'the peoplE') and removal of footer metadata such as bill tracking numbers and page references.
Substitute (H-3) - 3→Substitute (S-4)·3 edits
MINOR
This document shows a procedural change where the bill was amended from a House substitute version to a Senate substitute version. The substantive content of the bill remains unchanged, with only the version identifier and page headers updated to reflect Senate review.
TECHNICAL
The document header was changed from 'HOUSE SUBSTITUTE TO SENATE SUBSTITUTE' to 'SENATE SUBSTITUTE FOR', indicating the bill has been reviewed and amended by the Senate chamber.
Version identifiers in the page footers were updated from '(H-3)' to '(S-4)', reflecting the bill's progression through the legislative process.
Page tracking numbers and document identifiers were updated with new tracking codes (q968g3 to cb2fu4) to reflect the Senate's version of the document.
Substitute (H-3) - 2→Substitute (H-3) - 3·2 edits
MINOR
This revision changes the bill from a Senate substitute to a House substitute, indicating it has been amended by the House of Representatives. The most significant substantive change requires the public disclosure form for legislatively directed spending items to be submitted each calendar year, rather than on a one-time basis. This creates an ongoing annual reporting requirement for legislators.
Scope change
The bill now applies to an annual recurring submission of disclosure forms for legislatively directed spending items, rather than a single submission.
REQUIREMENT
Changed the submission requirement for the public disclosure form from a one-time submission to an annual submission each calendar year.
TECHNICAL
Updated document headers to reflect House substitute status instead of Senate substitute status, including changing version identifiers from S-4 to H-3.
Substitute (S-3) - 3→Substitute (H-3) - 2·4 edits
MODERATE
The bill was renumbered from Substitute (S-3) to Substitute (S-4) and underwent substantive changes to the public disclosure form for legislatively directed spending items. The form now requires recipients to provide their employer identification number and reorders several questions. Additionally, the bill's effective date was changed from conditional on another bill to a fixed date of January 1, 2026.
Scope change
The bill's scope remains focused on public disclosure requirements for legislatively directed spending, but the specific data collection requirements have been modified to include employer identification numbers.
REQUIREMENT
Added requirement for recipients to provide their employer identification number on the public disclosure form.
Reordered and renumbered questions on the public disclosure form, moving the employer ID requirement to question 5 and shifting other questions accordingly.
TIMELINE
Changed the effective date from conditional on Senate Bill No. 596 to a fixed date of January 1, 2026.
TECHNICAL
Updated bill version numbers from Substitute (S-3) to Substitute (S-4) and changed tracking codes.
Substitute (S-2) - 2→Substitute (S-3) - 3·5 edits
MODERATE
The bill was revised to clarify requirements for nonprofit organizations seeking legislatively directed spending. Key changes include renaming 'nonprofit organization' to 'nonprofit corporation' and adding specific eligibility criteria requiring a physical office in the state for 12 consecutive months and a board of directors. The form now asks for funding history over the past 5 years rather than without a time limit, and new definitions were added to clarify terms like 'nonprofit corporation' and 'staff member'.
Scope change
The bill's scope remains focused on public disclosure forms for legislatively directed spending, but eligibility requirements for nonprofit recipients were expanded and clarified.
ELIGIBILITY
Changed 'nonprofit organization' to 'nonprofit corporation' throughout the form and definitions to align with state law terminology.
REQUIREMENT
Added two new eligibility questions for nonprofit corporations: requiring a physical office in the state for at least 12 consecutive months and requiring a board of directors.
Removed questions 2 and 3 regarding physical office location and board of directors from the 'nonprofit organization' section, as these are now part of the updated 'nonprofit corporation' section.
FISCAL
Modified the funding history question to specify a 5-year lookback period and added a requirement to disclose the amount of previously received funding.
DEFINITION
Added new definitions for 'nonprofit corporation' referencing the nonprofit corporation act and 'staff member' covering current or former legislative employees within 2 years.
Substitute (S-3) - 2→Substitute (S-2) - 2·4 edits
MODERATE
The bill text was revised to broaden eligibility criteria and add constitutional compliance requirements for legislatively directed spending. Key changes include renaming 'nonprofit corporation' to 'nonprofit organization' and adding a new requirement to demonstrate the spending item is not for a local or private purpose under state constitutional provisions. The form also now includes 'Private' funding as a category to check for prior funding history.
Scope change
The scope of eligibility for legislatively directed spending items was expanded by changing the terminology from 'nonprofit corporation' to 'nonprofit organization', potentially broadening which entities qualify for funding.
ELIGIBILITY
Changed the term 'nonprofit corporation' to 'nonprofit organization' in the additional information section, potentially expanding eligibility beyond traditional corporations.
REQUIREMENT
Added a new requirement asking applicants to demonstrate that the spending item is not for a local or private purpose under section 30 of article IV of the state constitution of 1963.
Modified the physical address question to now ask for the recipient of the spending item rather than the intended location of the project or activity.
FISCAL
Added 'Private' as a new funding category in the question about previously received funding, expanding the types of funding sources that must be disclosed.
Substitute (S-2)→Substitute (S-3)·6 edits
MODERATE
The bill was renumbered from Substitute (S-2) to Substitute (S-3) and underwent significant revisions to the public disclosure form for legislatively directed spending items. The changes primarily focus on clarifying eligibility requirements for nonprofit organizations and adding a new definition for nonprofit corporations to ensure proper application of the law.
Scope change
The bill's scope remains focused on the management and budget act, specifically regarding public disclosure forms for legislatively directed spending items. The changes refine how nonprofit organizations must qualify for such funding.
REQUIREMENT
Added requirement that nonprofit corporations must have had a physical office in the state for at least 12 consecutive months to qualify for legislatively directed spending items.
Modified the funding history question to specify a 5-year lookback period and require disclosure of the amount of previously received funding.
Changed the form title from 'Nonprofit Organizations' to 'Nonprofit Corporations' to align with the new statutory definition.
Added a new question requiring nonprofit corporations to confirm they have a board of directors.
DEFINITION
Added a new definition for 'nonprofit corporation' referencing section 108 of the nonprofit corporation act, 1982 PA 162, MCL 450.2108.
Added a new definition for 'staff member' to include individuals employed by the senate or house of representatives within the prior 2 years.
Substitute (s)→Substitute (S-2)·4 edits
MODERATE
The bill was revised from a House substitute to a Senate substitute version, which reorganized the public disclosure form for legislatively directed spending items. The Senate version added a requirement to demonstrate the spending is not for a local or private purpose under the state constitution, included 'Private' funding as a new category to check, and changed 'Nonprofit corporation' to 'Nonprofit organization' to broaden eligibility. The effective date provision remains unchanged, contingent on another Senate bill being enacted.
Scope change
The bill's scope was slightly broadened by changing the term 'Nonprofit corporation' to 'Nonprofit organization' in the eligibility requirements, potentially including more types of entities.
REQUIREMENT
Added a requirement for applicants to demonstrate that the spending item is not for a local or private purpose under section 30 of article IV of the state constitution of 1963.
FISCAL
Added 'Private' as a new funding type option in the question about previous funding received or awarded in the past 5 years.
ELIGIBILITY
Changed the term 'Nonprofit corporation' to 'Nonprofit organization' in the additional information section for nonprofits, potentially broadening the definition of eligible entities.
TECHNICAL
Reorganized the order of questions on the public disclosure form and adjusted line numbering to reflect the Senate substitute version.
Substitute (S-4) - 2→Substitute (s)·3 edits
MINOR
This bill version changed from a Senate substitute to a House substitute version, updating the bill title and version identifiers. The most significant substantive change is adding a requirement that public disclosure forms for legislatively directed spending items must be submitted each calendar year to be considered valid. The rest of the changes appear to be technical formatting updates to the document headers and version numbers.
Scope change
The bill's substantive scope remains unchanged, but the House version adds a new submission timing requirement for the public disclosure forms.
REQUIREMENT
Added requirement that legislatively directed spending disclosure forms must be submitted each calendar year to be considered valid.
TECHNICAL
Updated document title from 'SENATE SUBSTITUTE' to 'HOUSE SUBSTITUTE TO SENATE SUBSTITUTE' and changed version identifiers from (S-4) to (H-3).
Updated document tracking numbers and version codes in the header and footer sections.
Substitute (s) - 2→Substitute (S-4) - 2·3 edits
MINOR
This document shows the transition of a legislative bill from House to Senate version, primarily involving formatting and tracking number updates rather than substantive policy changes. The bill text itself remains largely unchanged, with only minor adjustments to line spacing and document identifiers.
TECHNICAL
Document header changed from 'HOUSE SUBSTITUTE TO SENATE SUBSTITUTE' to 'SENATE SUBSTITUTE', indicating the bill has moved to Senate consideration
Tracking numbers and document identifiers updated from House version (H-3) to Senate version (S-4) with new reference codes
Minor formatting adjustments including line spacing and alignment changes in the document layout
Substitute (S-4) - 3→Substitute (s) - 2·3 edits
MINOR
This bill version update primarily involves technical formatting and document identification changes rather than substantive policy modifications. The document header was updated to reflect the House concurrence date, and page footer identifiers were modified with new tracking codes. No changes were made to the actual legislative text, eligibility criteria, or requirements for nonprofit corporations seeking legislatively directed spending items.
TECHNICAL
Document header updated to show 'HB-4420, House Concurred, October 30, 2025' instead of the previous substitute designation
Page footer tracking identifiers changed from 'q968g3' to 'xs4b6f' with updated bill reference codes
Minor formatting adjustment in question 20 spacing between 'corporation' and the checkbox options
Substitute (H-2) - 2→Substitute (S-4) - 3·5 edits
MODERATE
The bill was renamed from 'House Substitute' to 'House Substitute to Senate Substitute,' indicating it has moved through the legislative process. The most significant change is renaming the new section from '1365a' to '364a' and changing the terminology from 'enhancement grant' to 'legislatively directed spending item.' This reflects a shift in how the legislation frames the type of funding being regulated.
Scope change
The bill's scope remains focused on public disclosure requirements for legislatively directed spending, but the terminology has been updated to align with section 364 of the Management and Budget Act. The effective date now includes a condition that the bill only takes effect if Senate Bill No. 596 is also enacted.
TECHNICAL
Section number changed from 1365a to 364a to align with the Management and Budget Act structure.
REQUIREMENT
Terminology changed throughout the document from 'enhancement grant' to 'legislatively directed spending item' to match existing statutory language.
Reorganized the public disclosure form structure and added specific questions about nonprofit corporation qualifications including board of directors and physical office requirements.
ENFORCEMENT
Added a conditional effective date requiring Senate Bill No. 596 to be enacted before this bill takes effect.
DEFINITION
Added formal definitions for 'immediate family member,' 'legislator,' 'nonprofit corporation,' and 'staff member' to clarify eligibility and conflict of interest provisions.
Substitute (H-3)→Substitute (H-2) - 2·6 edits
MODERATE
This bill was substantially rewritten to shift from regulating 'legislatively directed spending items' to regulating 'enhancement grants.' The new version introduces stricter public disclosure requirements, adds a requirement for nonprofits to submit IRS tax forms, and clarifies that for-profit businesses are ineligible for these grants. The section number also changed from 364a to 1365a.
Scope change
The bill's scope changed from a general disclosure requirement for legislatively directed spending to a more specific regulation of 'enhancement grants,' which are defined as specific appropriations for contracts, grants, loans, or other economic assistance outside of formula-driven or competitive processes.
SCOPE
The bill was renamed from regulating 'legislatively directed spending items' to regulating 'enhancement grants,' with a new statutory definition provided in subsection (8).
REQUIREMENT
New requirement added that the department must post completed public disclosure forms to a webpage within 10 business days of receipt.
New requirement added that nonprofits receiving enhancement grants must provide their IRS Form 990 or equivalent tax return to the department within 30 days of appropriation.
New requirement added that enhancement grants cannot be used to pay tax liens, delinquent taxes, or other obligations owed to the state.
ELIGIBILITY
New eligibility criteria added stating that for-profit businesses are not eligible to receive enhancement grants, and nonprofits must meet three specific requirements (36 months operation, 12 months office presence, and board of directors).
TECHNICAL
The section number changed from 364a to 1365a, and the effective date remains January 1, 2026, contingent on Senate Bill No. 596 being enacted.
Substitute (H-2)→Substitute (H-3)·5 edits
MODERATE
The bill was renamed from 'enhancement grant' to 'legislatively directed spending item' to better align with existing state law. The form requirements were updated to include new fields like employer identification numbers and a 5-year funding history check, while removing specific district listing requirements. The bill now includes a new provision making it contingent on Senate Bill 596 being enacted into law before taking effect.
Scope change
The terminology changed from 'enhancement grant' to 'legislatively directed spending item' throughout the document to match existing statutory language in section 364. The bill's effective date is now conditional on the passage of Senate Bill 596.
SCOPE
Changed the bill title and section references from 'enhancement grant' to 'legislatively directed spending item' to align with existing statutory terminology in MCL 18.1594.
REQUIREMENT
Updated the public disclosure form to include employer identification numbers and a 5-year funding history requirement, while removing the requirement to list specific legislative districts.
Removed the requirement for nonprofits to list all officers and active board members on the disclosure form.
ENFORCEMENT
Added a new enacting section 2 that makes the entire bill contingent on Senate Bill 596 being enacted into law before taking effect.
DEFINITION
Added statutory definitions for 'legislatively directed spending item' and 'nonprofit corporation' to clarify eligibility criteria and terminology.
Floor votes · House Jun 4, 2025
How they voted
This bill passed the Senate by voice vote (no roll call recorded).
107–0
Passed
Total votes 107
Jun 4, 2025
D
Democratic49
49 Yea
100% Yea
R
Republican58
58 Yea
100% Yea
Your representatives
Vote distribution
All YeaAll NayMixedNo data
Full legislative history
Actions timeline
Total actions
51
Key actions
16
Committee
8
Amendments
5
Dec 2, 2025
Other
assigned PA 32'25 with immediate effect
lower
Dec 2, 2025
Introduced
filed with Secretary of State 11/18/2025 02:00 PM
lower
Dec 2, 2025
Signed into law
approved by the Governor 11/18/2025 01:30 PM
lower
Dec 2, 2025
Executive-Receipt
presented to the Governor 11/17/2025 02:30 PM
lower
Dec 2, 2025
Other
GIVEN IMMEDIATE EFFECT
upper
Dec 2, 2025
Other
ROLL CALL: ROLL CALL # 302 YEAS 35 NAYS 0 EXCUSED 2 NOT VOTING 0
upper
Dec 2, 2025
Upper · Passed
PASSED; GIVEN IMMEDIATE EFFECT ROLL CALL # 293 YEAS 31 NAYS 0 EXCUSED 6 NOT VOTING 0
upper
Nov 13, 2025
Other
bill ordered enrolled
lower
Nov 13, 2025
Other
roll call Roll Call #315 Yeas 101 Nays 0 Excused 0 Not Voting 9
lower
Nov 13, 2025
Lower · Passed
Senate amendment(s) to House substitute (H-3) concurred in
lower
Nov 13, 2025
Other
rule suspended
lower
Nov 13, 2025
Other
laid over one day under the rules
lower
Nov 13, 2025
Introduced
re-returned from Senate with amendment(s) to House substitute (H-3) with immediate effect
lower
Nov 13, 2025
Other
RETURNED TO HOUSE
upper
Nov 13, 2025
Upper · Passed
HOUSE SUBSTITUTE (H-3) CONCURRED IN AS AMENDED
upper
Nov 13, 2025
Upper · Passed
AMENDMENT(S) ADOPTED
upper
Nov 5, 2025
Other
LAID OVER ONE DAY UNDER THE RULES
upper
Nov 5, 2025
Other
RETURNED FROM HOUSE WITH SUBSTITUTE (H-3) TO SENATE SUBSTITUTE (S-4)
upper
Nov 5, 2025
Introduced
RECEIVED FROM HOUSE
upper
Oct 30, 2025
Other
retransmitted
lower
Oct 30, 2025
Introduced
title amendment agreed to
lower
Oct 30, 2025
Other
roll call Roll Call #284 Yeas 98 Nays 5 Excused 0 Not Voting 7
lower
Oct 30, 2025
Lower · Passed
Senate substitute (S-4) concurred in as substituted (H-3)
lower
Oct 30, 2025
Lower · Passed
substitute (H-3) adopted
lower
Oct 30, 2025
Other
rule suspended
lower
Oct 30, 2025
Other
laid over one day under the rules
lower
Oct 30, 2025
Introduced
returned from Senate with substitute (S-4) with title amendment
lower
Oct 30, 2025
Other
RETURNED TO HOUSE
upper
Oct 30, 2025
Introduced
TITLE AMENDED
upper
Oct 30, 2025
Upper · Passed
SUBSTITUTE (S-4) ADOPTED
upper
Oct 21, 2025
Reading-3
PLACED ON ORDER OF THIRD READING WITH SUBSTITUTE (S-3)
upper
Oct 21, 2025
Upper · Passed
SUBSTITUTE (S-3) CONCURRED IN
upper
Oct 21, 2025
Upper · Passed
REPORTED BY COMMITTEE OF THE WHOLE FAVORABLY WITH SUBSTITUTE (S-3)
upper
Oct 15, 2025
Committee
REFERRED TO COMMITTEE OF THE WHOLE WITH SUBSTITUTE (S-2)
upper
Oct 15, 2025
Upper · Passed
COMMITTEE RECOMMENDED IMMEDIATE EFFECT
upper
Oct 15, 2025
Upper · Passed
REPORTED FAVORABLY WITH SUBSTITUTE (S-2) 10/14/2025
upper
Jun 10, 2025
Committee
REFERRED TO COMMITTEE ON APPROPRIATIONS
upper
Jun 10, 2025
Upper · Passed
PASSED BY HOUSE WITH IMMEDIATE EFFECT
upper
Jun 4, 2025
Other
transmitted
lower
Jun 4, 2025
Lower · Passed
passed; given immediate effect Roll Call #133 Yeas 108 Nays 0 Excused 0 Not Voting 2
lower
Jun 4, 2025
Reading-3
read a third time
lower
Jun 4, 2025
Other
placed on immediate passage
lower
Jun 4, 2025
Reading-3
placed on third reading
lower
Jun 4, 2025
Lower · Passed
substitute (H-2) adopted
lower
Jun 4, 2025
Reading-2
read a second time
lower
Jun 4, 2025
Committee
referred to second reading
lower
Jun 4, 2025
Lower · Passed
reported with recommendation with substitute (H-2)
