HB 5723 Michigan House · 2025-2026 Regular Session

Children: child care; provider advisory council; establish. Amends 1973 PA 116 (MCL 722.111 - 722.128) by adding sec. 16a.

This bill establishes a new Provider Advisory Council to review contracts between the state department and child care organizations. The council will consist of 7 to 11 members representing different geographic regions of Michigan, with at least one nonvoting member from a professional membership association. Key provisions require the department to submit proposed contracts to the council for review at least 120 days before signing, allowing the council to issue recommendations on rates, services, and other terms. The bill also includes ethics requirements for council members, including conflict of interest disclosures and recusal rules, with penalties for violations.

Bill status in committee 1 of 4 stages cleared

Introduction

Mar 2026

Committee Review

Floor Vote

Governor

Introduced Mar 17, 2026 Last action Jun 2, 2026

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What changed between versions

House Introduced Bill → Substitute (H-2) · 6 edits

MODERATE

The bill was amended to strengthen oversight of child welfare contracts by adding a new advisory council with specific membership requirements, including a mandate for members to reside in the state and work for private agencies headquartered there. The changes introduce stricter rules for contract reviews, requiring the department to submit proposals to the council 120 days in advance and include detailed draft terms. A significant new provision allows the council to oppose contracts involving entities owned by or employing illegal immigrants or those with fraudulent activities, and expands penalties for council members who violate ethical standards.

Scope change

The bill's scope expanded to include specific eligibility criteria for council members (state residency and private agency employment) and new substantive grounds for opposing contracts based on immigration status and fraud.

REQUIREMENT

Added a new subsection requiring the council to consist of at least 7 members, including representatives from industry associations, with specific rules on how they are nominated and appointed.

Added eligibility requirements stating council members must reside in the state and be employed by private agencies headquartered in the state.

Modified the contract review timeline to require the department to submit proposals to the council at least 120 days before presenting them to agencies for signing, and to include draft language for rates and services.

Added a new provision allowing the council to issue a recommendation of opposition if a contract involves an entity owned by or employing illegal immigrants or one demonstrating fraudulent business activity.

Added a provision prohibiting the department from retaliating against council members who report conflicts of interest or violations in good faith.

ENFORCEMENT

Expanded penalties for council members who violate ethical rules to include damages, administrative sanctions, and potential criminal charges, in addition to disqualification and termination.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jun 2, 2026

Committee

referred to second reading

lower

Jun 2, 2026

Lower · Passed

reported with recommendation with substitute (H-2)

lower

Mar 17, 2026

Committee

referred to Committee on Families and Veterans

lower

Mar 17, 2026

Introduced

introduced by Representative Rep. Luke Meerman

lower

1 primary · 6 co-sponsors