Read the full stored bill text
(12)
Act No. 33
Public Acts of 2025
Approved by the Governor
November 18, 2025
Filed with the Secretary of State
November 18, 2025
EFFECTIVE DATE: January 1, 2026
STATE OF MICHIGAN
103RD LEGISLATURE
REGULAR SESSION OF 2025
Introduced by Senator Anthony
ENROLLED SENATE BILL No. 596
AN ACT to amend 1984 PA 431, entitled “An act to prescribe the powers and duties of the department of
management and budget; to define the authority and functions of its director and its organizational entities; to
authorize the department to issue directives; to provide for the capital outlay program; to provide for the leasing,
planning, constructing, ma intaining, altering, renovating, demolishing, conveying of lands and facilities; to
provide for centralized administrative services such as purchasing, payroll, record retention, data processing, and
publishing and for access to certain services; to provid e for a system of internal accounting and administrative
control for certain principal departments; to provide for an internal auditor in certain principal departments; to
provide for certain powers and duties of certain state officers and agencies; to codify, revise, consolidate, classify,
and add to the powers, duties, and laws relative to budgeting, accounting, and the regulating of appropriations;
to provide for the implementation of certain constitutional provisions; to create funds and accounts; to ma ke
appropriations; to prescribe remedies and penalties; to rescind certain executive reorganization orders; to
prescribe penalties; and to repeal certain acts and parts of acts,” (MCL 18.1101 to 18.1594) by adding section 364.
The People of the State of Michigan enact:
Sec. 364. (1) Except as otherwise provided in this section, a state department or agency shall not expend money
that was appropriated as a legislatively directed spending item. A legislator must submit a request for a
legislatively directed spending item in accordance with this section and on the form described in section 364a. A
request for a legislatively directed spending item that is submitted for the first fiscal year of a 2 -year legislative
session applies to both fiscal years of a 2-year legislative session and does not need to be resubmitted or renewed.
A request for a legislatively directed spending item that is submitted for the second fiscal year of a 2 -year
legislative session applies only to that fiscal year and does not carry over to the following 2-year legislative session.
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. A legislator that
does not hold a leadership position may not request a legislatively directed spending item for an intended recipient
or location that is not located within, or that would not benefit the residents of, the legislator’s district or a county,
any part of which is located within the legislator’s district.
(2) A for-profit entity is not eligible to receive a legislatively directed spending item. A nonprofit corporation is
eligible to receive a legislatively directed spending item if all of the following requirements are met:
(a) The nonprofit corporation has continuously operated in this state during the immediately preceding 3-year
period.
(b) The nonprofit corporation had a physical office in this state during the immediately preceding 1-year period.
(c) The nonprofit corporation has a board of directors.
2
(3) The senate and house of representatives shall each establish pages on their existing websites that are
accessible to the public at no cost and that contain information regarding legislatively directed spending items.
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
respective page. At least 45 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 directed spending item contained in the bill on the respective page.
(4) The department shall establish and maintain a website that lists information for each legislatively directed
spending item included in an appropriations bill that is enacted into law. The website must be available to the
public at no cost. The website must include all of the following information for each legislatively directed spending
item:
(a) The name of the legislator who submitted the request for the legislatively directed spending item and of
each legislator who cosponsored the request.
(b) The name of the recipient of the legislatively directed spending item.
(c) A summary of the purpose of the legislatively directed spending item.
(d) A description of the legislatively directed spending item.
(e) The state department or agency that is administering the legislatively directed spending item.
(f) The section of the bill or law that contains the legislatively directed spending item.
(g) The status of the legislatively directed spending item.
(h) The status of the legislatively directed spending item agreement.
(i) Whether the legislatively directed spending item agreement has been amended and, if so, a description of
the amendment.
(j) To the extent allowed by law, the forms provided by a nonprofit corporation under subsection (7)(e).
(5) The department or, if applicable, the state department or agency that is administering a legislatively
directed spending item, shall do both of the following:
(a) Post the information described in subsection (4) on the website or on the state department ’s or agency ’s
website, and provide the information described in subsection (4) to the department.
(b) At frequent intervals, update the status of each legislatively directed spending item.
(6) The state department or agency that is administering a legislatively directed spending item shall, for the
duration of the public project, but not to exceed 7 years, ensure that the legislatively directed spending item has
been spent in accordance with the terms of the legislatively directed spending item agreement. The auditor
general shall, at no additional cost to the department or state department o r agency, evaluate the management
of legislatively directed spending items as part of the auditor general’s annual financial audits of state agencies.
(7) A recipient of a legislatively directed spending item shall enter into a legislatively directed spending item
agreement. A legislatively directed spending item agreement must require, at a minimum, all of the following:
(a) That the recipient repay the legislatively directed spending item if the recipient uses the appropriation for
a purpose other than the purpose for which it was appropriated.
(b) That the legislatively directed spending item not be 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 the federal government, this state, or a political subdivision of this state.
(d) That the department or state department or agency may take any action authorized by law, including, but
not limited to, requiring a corrective action plan before making further payment, cancelling the legislatively
directed item, or seeking reimbursement of funds that have been disbursed to the recipient, if the department or
state department or agency administering the legislatively directed spending item determines that the recipient
is not in compliance with the legislatively directed spending item agreement.
(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.
(8) The disbursement of the money associated with a legislatively directed spending item must be made in
accordance with this act and the disbursement schedule in the executed legislatively directed spending item
agreement.
(9) The department or state department or agency administering a legislatively directed spending item, as
applicable, shall do all of the following:
(a) Disburse, 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 for an incurred or intended expenditure that is in accord with the
purpose of the legislatively directed spending item.
3
(b) Verify that a legislatively directed spending item recipient meets the eligibility requirements under this
section before disbursing the legislatively directed spending item to the recipient. Verification under this
subdivision may be done by accessing publicly available filings, relying on certified information provided by the
intended recipient, or other similar means.
(c) 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) Not later than 30 calendar days after taking action under subsection (7)(d), notify each member of the
legislature who holds a leadership position.
(10) This section does not apply to a legislatively directed spending item that was requested or included in a
bill before January 1, 2026.
(11) As used in this section:
(a) “Leadership position” means any of the following within the legislature:
(i) The senate majority leader, senate minority leader, speaker of the house, or house minority leader.
(ii) The chair of the senate or house of representatives appropriations committee.
(b) “Legislatively directed spending item ” means, except as otherwise provided in subdivision (c), an
appropriation that authorizes or obligates a specific amount of money for a contract or other expenditure with a
grant, loan, or other economic assistance or incentive to a specific entity, local unit of government, or project or
activity in a local unit of government.
(c) Legislatively directed spending item does not include an appropriation if any of the following conditions
are met:
(i) The appropriation is made in response to a disaster or emergency situation.
(ii) The recipient of the appropriation is a state department or agency or an entity that administers or provides
services, programs, or resources that are otherwise required by law to be administered or provided by a state
department or agency.
(iii) The appropriation is made through a formula-driven or competitive award process.
(d) “Nonprofit corporation” means that term as defined in section 108 of the nonprofit corporation act,
1982 PA 162, MCL 450.2108.
Enacting section 1. This amendatory act takes effect January 1, 2026.
Enacting section 2. This amendatory act does not take effect unless House Bill No. 4420 of the 103rd Legislature
is enacted into law.
This act is ordered to take immediate effect.
Secretary of the Senate
Clerk of the House of Representatives
Approved___________________________________________
____________________________________________________
Governor