HB 5723 — Children: child care; provider advisory council; establish. Amends 1973 PA 116 (MCL 722.111 - 722.128) by adding sec. 16a.

SUBSTITUTE FOR HOUSE BILL NO.

5723 MarchA 17,bill 2026,to Introducedamend by1973 Reps.PA 116, entitled "An act to provide for the protection of children through the licensing and regulation of child care organizations;

Meerman, Pohutsky, Wozniak, Breen, Young, Schmaltz and Rheingans and referred to Committee on Families and Veterans.

A bill to amend 1973 PA 116, entitled "An act to provide for the protection of children through the licensing and regulation of child care organizations;

OOH H05548'25_HB5723_INTR_1 t6ko1n 1 (2) The council shall consist of at least 7 membersmembers, but not more than 11 members.members, appointed by the Association of Accredited OOH H05548'25 (H-2) vh52st 1 Child and Family Services Agencies.

TheCouncil department,members aftermust consultationinclude withproviders at least 1 industry-recognized statewide professional membership association that servesrepresent childrenorganizations andlicensed familiesby inthe thisdepartment state,as shall nominate an individual to be a memberchild ofplacing theagency councilor usingchild acaring publiclyinstitution. noticed application process.

ACouncil nominatedmembers individual must bereside employedand byhave atheir childprimary caringaddress institution or child placing agency that has been headquartered in this state forand atbe leastcurrently 5employed consecutiveby yearsprivate beforeagencies thewhose dateheadquarters ofare nomination.in this state.

The director of the department shall appoint members of the council from the individuals nominated by the department.

The members of the council must be representatives of child caring institutions or child placing agencies.

A representative of at least 1 industry- recognized statewide professional membership association that serves children and families in this state must be a nonvoting member of the council.

The members of the council must represent different geographic regions of this state.

The council shall meet at least quarterly each year with the director of the department and may convene special meetings as needed to do any of the following:

(4) Not later than 30 days after the department establishes the council, the department shall submit all proposed initial contracts, renewals, or material amendments to current and existing OOH H05548'25_HB5723_INTR_1 t6ko1n 1 contracts with child caring institutions or child placing agencies to the council not less than 120 days before the date the department presents the contracts, renewals, or material amendments to the child caring institution or child placing agency for signing.

The council shall review the proposed initial contracts, renewals, or material amendments to current and existing contracts and may, by majority vote, issue a OOH H05548'25 (H-2) vh52st 1 written recommendation of support, opposition, or suggested modifications within 45 days of receiving the materials described in this subsection from the department.

IfExcept for the council's recommendation of opposition as described under subsection (5), if the council issues a written recommendation as described under this subsection, the department shall prepare a written response that addresses each recommendation and state whether the recommendation is accepted, modified, or rejected, and the rationale for each decision.

Except as otherwise provided under subsection (5),(6), completion of the council's review and the department's written response under this subsection is required before execution of a new or amended contract.

(5) IfThe thecouncil departmentshall executesissue a newwritten recommendation of opposition or amendedfor existing contract withouttermination complyingif withthe subsectioncouncil (4),finds that the departmentproposed shallinitial providecontracts, arenewals, writtenor explanationmaterial detailingamendments theto basiscurrent forand itsexisting decisioncontracts andare publishbetween the explanationdepartment onand itsa publicchild websitecaring withininstitution 10or businesschild daysplacing ofagency makingthat theis decisionowned butby notillegal laterimmigrants, thanemploys 60illegal daysimmigrants, beforeor thedemonstrates contractevidence goesof intofraudulent effect.business activity.

SubsectionThe (4)department doesshall notaccept applythe ifcouncil's anyrecommendation of OOHopposition H05548'25_HB5723_INTR_1as t6ko1ndescribed 1under thethis followingsection. apply:

(6) If the department executes a new or amended contract without complying with subsections (4) and (5), the department shall provide a written explanation detailing the basis for its decision and publish the explanation on its public website within 10 business days of making the decision but not later than 60 days before the contract goes into effect.

Subsections (4) and (5) do OOH H05548'25 (H-2) vh52st 1 not apply if any of the following apply:

(6)(7) A council member shall do all of the following:

(d)(8) IfA acouncil materialmember financialshall interestnot isdo disclosed,any recuse themselves from discussion, deliberation, and voting on the financial element of the contract.following:

If this subdivision applies, the disclosure and recusal must be reflected in the minutes of the meeting.

(7) A council member shall not do any of the following:

(8)(9) A violation of subsection (7)(8) constitutes a material breach and may result in disqualification, contract termination, OOH H05548'25_HB5723_INTR_1 t6ko1n 1 damages, administrative sanctions, and referral to the attorney general or appropriate law enforcement authority for criminal charges.

(9)(10) The department may remove a council member for repeated or willful failure to discloseexercise athe conflictcouncil ormember's failureduties toafter recuseOOH whenH05548'25 required,(H-2) orvh52st to knowingly submit false information, after written notice and an opportunity to respond.

(10)(11) The department shall not retaliate against a council member who, in good faith, reports a suspected conflict of interest, collusion, or other violation under this subsection.

(11)(12) As used in this section, "council" means the provider advisory council established under subsection (1).

Final Page OOH H05548'25_HB5723_INTR_1H05548'25 t6ko1n(H-2) vh52st