HB 4420 — 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, As Passed Senate,House, OctoberJune 30,4, 2025 SENATE SUBSTITUTE FOR HOUSE BILL NO.

4420 A bill to amend 1984 PA 431, entitled "The management and budget act," (MCL 18.1101 to 18.1594) by adding section 364a.1365a.

364a.1365a.

(1) TheExcept publicas disclosureprovided formin forthis section, a legislativelystate directedagency spendingshall itemnot requiredexpend underappropriated sectionenhancement 364grant mustfunds. be submitted in the following form:

LegislativelyAn Directedenhancement Spendinggrant Itemincluded Informationin 1.a bill or conference report passed by the legislature must be publicly disclosed on the department's webpage created under subsection (4) by April 1, or the first business day after April 1, of the same calendar year the enhancement grant is considered by the legislature and for not less than 14 days before passage of a bill or conference report.

The sponsoring legislator shall provide the enhancement grant SCS H01298'25 (H-2)_HB4420_APH_1 6msw53 information to the department not later than 10 business days before April 1 of the calendar year the enhancement grant is considered by the legislature.

The public disclosure form for an enhancement grant must be submitted in the following form:

Enhancement Grant Information 1.

Intended legislativelygrant directed spending item recipient:

SCS H01298'25 (S-4)_HB4420_APS_1 pz0bd6 4.

Physical address of legislativelygrant directedrecipient: spending item recipient and the intended location of the project or activity:

TheList recipient'sthe employergrant identificationimpacted number:districts and corresponding state senators and representatives and their district numbers:

Requested amount of the legislativelygrant: directed spending item:

What is the purpose andof how does the legislativelyenhancement directedgrant? spending item provide a public benefit that is an appropriate use of taxpayer money? 8.

HasHow does the legislativelyenhancement directedgrant spendingprovide itema previouslypublic receivedbenefit orthat beenis awardedan anyappropriate use of taxpayer money? Demonstrate that the followinggrant typesis ofalso fundingnot infor thea pastlocal 5or years?private Ifpurpose so,under howsection much?30 Checkof allarticle thatIV apply.of the state constitution of 1963 in your answer:

[ ] Federal [ ] State [ ] Local 9.

EstimatedHas timethe framegrant forpreviously completionreceived or been awarded any of the legislativelyfollowing directedtypes spendingof itemfunding? project:Check all that apply.

Additional[ Information] ForFederal Nonprofit[ Corporations] (ifState applicable)[ The] answerLocal to[ questions] 1Private to10. 3 must be "Yes" for the nonprofit corporation to qualify for a legislatively directed spending item.

1.Estimated time frame for completion of the grant project:

HasAdditional theInformation nonprofitFor corporationNonprofit [Organizations ](if Yesapplicable) [The ]answer Noto continuouslyquestions operated1 into this3 statemust be "Yes" for the precedingnonprofit 36to months?qualify 2.for an enhancement grant.

HasSCS theH01298'25 nonprofit(H-2)_HB4420_APH_1 corporation6msw53 [1. ] Yes [ ] No had a physical office in this state for not less than the preceding 12 consecutive months? 3.

DoesHas the nonprofit corporationorganization [ ] Yes [ ] No havecontinuously aoperated boardin ofthis directors?state SCSfor H01298'25the (S-4)_HB4420_APS_1preceding pz0bd636 4.months? 2.

Has the nonprofit organization [ ] Yes [ ] No had a physical office in this state for not less than the preceding 12 consecutive months? 3.

Does the nonprofit [ ] Yes [ ] No organization have a board of directors? 4.

Certification By Sponsoring Legislator "I certify that my immediate family members, legislative staff members, and I have no direct or indirect pecuniary interest in the requested legislativelyenhancement directedgrant." spending item." "I certify that the intended recipient of this legislativelyenhancement directedgrant spending item is not intended for a for-profitfor- profit entity." "I certify that the information in this form is true to the best of my knowledge." Signature:

____________________________________ (2) AsThe usedsponsoring inlegislator thismust section:provide the completed form required under subsection (1) to the department.

(a)The "Immediatedepartment familymust member"provide meansthe anycompleted form to the chairpersons of the followingsenate individuals:and house of representatives appropriations committees, senate fiscal agency, and house fiscal agency.

(3) A for-profit business is not eligible to receive an SCS H01298'25 (H-2)_HB4420_APH_1 6msw53 enhancement grant.

A nonprofit organization is eligible for an enhancement grant only if it meets all of the following requirements:

(a) Has continuously operated in this state for the preceding 36 months.

(b) Has had a physical office in this state for not less than the preceding 12 consecutive months.

(c) Has a board of directors.

(4) An enhancement grant must not be used to pay a tax lien, delinquent tax, or other obligation owed to this state.

(5) The department shall develop a webpage on the department's official website to display the completed public disclosures required under subsection (1).

The webpage developed under this subsection must be conspicuously available to the public.

The department shall post the completed public disclosures on the webpage not later than the following, as applicable:

(a) For the calendar year 2026, 10 business days after the development of the webpage.

(b) 10 business days after the department's receipt of the complete public disclosure.

(6) Not later than 30 days after an enhancement grant is appropriated to a state agency, the department shall update the public webpage created in subsection (5) to include the amount of funding that was appropriated for the enhancement grant and the status of the funding.

(7) Not later than 30 days after an enhancement grant is appropriated to a nonprofit organization, the nonprofit shall provide its internal revenue service form 990, 990-EZ, or other 990-series return for the most recent tax year to the department.