SB 596 — State finance: budgets; legislatively directed spending items; create a request and monitoring process for. Amends 1984 PA 431 (MCL 18.1101 - 18.1594) by adding sec. 364. TIE BAR WITH: HB 4420'25

SB-596, As Passed House,Senate, October 30,21, 2025 SUBSTITUTE FOR SENATE BILL NO.

A legislator must submit a request for a legislatively directed spending item inat accordanceleast with10 thisdays sectionbefore andthe ondate that the formbill describedcontaining inthe sectionlegislatively 364a.directed spending item is passed by both chambers of the legislature.

AHowever, requestthe forsenate aor legislativelyhouse directedof spendingrepresentatives itemmay doesrequire, notby carryrule, overthat toa legislator in that chamber submit a subsequentrequest budgetfor cyclea andlegislatively mustdirected bespending submitteditem eachBJH budgetS04235'25 cycle(S-2)_SB596_APS_1 tocmo03d be1 considered.at an earlier date.

A legislativelylegislator directed spending item must besubmit presented at a hearingrequest BJHfor S04235'25a (S-2)_SB596_APH_1 quc4vt 1 of the appropriations committee or subcommittee of the chamber in which the legislatively directed spending item wason requested before a bill containing the legislativelyform directeddescribed spendingin itemsection is364a. passed by both chambers of the legislature.

A legislatively directed spending item must be presented at a hearing of the appropriations committee or subcommittee of the chamber in which the legislatively directed spending item was requested before a bill containing the legislatively directed spending item is passed by both chambers of the legislature.

Not later than 5 business days after a request for a legislatively directed spending item is submitted, the senate and house of representatives shall post the information for the legislatively directed spending item on the BJH S04235'25 (S-2)_SB596_APS_1 cmo03d 1 respective page.

At least 6010 calendar days before the date that a bill containing a legislatively directed spending item is passed by both chambers of the legislature, the senate and house of representatives shall post the information for each legislatively BJH S04235'25 (S-2)_SB596_APH_1 quc4vt 1 directed spending item contained in the bill on the respective page.

BJH S04235'25 (S-2)_SB596_APS_1 cmo03d 1 (j) To the extent allowed by law, the forms provided by a nonprofit corporation under subsection (7)(e).(9).

(5) The department or, if applicable, the state department or agency that is administering a legislatively directed spending BJH S04235'25 (S-2)_SB596_APH_1 quc4vt 1 item, shall do both of the following:

TheState auditor general shall, at no additional cost to the department or stateagency departmentoversight or agency, evaluate the management of legislatively directed spending items asare partsubject ofto theaudit auditorat general'sthe annualdiscretion financial audits of statethe agencies.auditor general.

Only department restricted funds may be charged for an audit described in this subsection, in applicable circumstances.

(b) That the legislatively directed spending item not be BJH S04235'25 (S-2)_SB596_APS_1 cmo03d 1 disbursed if the department determines that the recipient is not using or will not use the appropriation for the purpose for which it was appropriated.

(c) That the legislatively directed spending item must not be used to pay a tax lien, delinquent tax, or other obligation owed to BJH S04235'25 (S-2)_SB596_APH_1 quc4vt 1 the federal government, this state, or a political subdivision of this state.state if the recipient is not a governmental entity.

(e) If the recipient is a nonprofit corporation, that the nonprofit corporation submit the recipient's internal revenue service form 990, 990-EZ, or other 990-series return for the most recent tax year to the department.

(9) TheIf departmentrequested orby statethe departmentdepartment, ora agencynonprofit administeringcorporation that receives a legislatively directed spending item,item asshall, applicable,not shalllater dothan all10 ofbusiness days after receiving the following:department's request, provide the nonprofit corporation's internal revenue service form 990, 990-EZ, or other 990-series return for the most recent tax year to the department.

(a)(10) Disburse,The in whole or in part, a legislatively directed spending item to a recipient only after the recipient has provided sufficient documentation, as determined by the department or state department or agency, to the department or state department or agency foradministering a correspondinglegislatively anddirected validspending expenditureitem, thatas isapplicable, inshall accorddo withboth the purpose of the legislativelyfollowing: directed spending item.

(b)BJH S04235'25 (S-2)_SB596_APS_1 cmo03d 1 (a) Verify that a legislatively directed spending item BJH S04235'25 (S-2)_SB596_APH_1 quc4vt 1 recipient meets the eligibility requirements under this section before disbursing the legislatively directed spending item to the recipient.

(c)(b) Notify a legislatively directed spending item recipient of the status of the disbursement of the legislatively directed spending item after the recipient enters into a legislatively directed spending item agreement.

(d)(11) NotThis latersection thandoes 30not calendarapply daysto aftera takinglegislatively actiondirected underspending subsectionitem (7)(d),that notifywas eachrequested memberor ofincluded thein legislaturea whobill holdsbefore aJanuary leadership1, position.2026.

(10)(12) ThisAs sectionused does not apply to a legislatively directed spending item that was requested or included in athis billsection: before January 1, 2026.

(11) As used in this section:

(ii) TheA chairchair, ofvice thechair, senate or houseminority vice chair of representativesan appropriations committee.committee or appropriations subcommittee.

BJH S04235'25 (S-2)_SB596_APH_1 quc4vt 1 (c) Legislatively directed spending item does not include an appropriation if any of the following conditions are met:

BJH S04235'25 (S-2)_SB596_APS_1 cmo03d 1 (i) The appropriation is made in response to a disaster or emergency situation.

Final Page BJH S04235'25 (S-2)_SB596_APH_1(S-2)_SB596_APS_1 quc4vtcmo03d