Michigan House Bill HB4420

Michigan 2025-2026 Regular Session

• Introduced: 5/1/25
• Refer: 5/1/25
• Report Pass: 6/4/25
• Engrossed: 6/4/25
• Refer: 6/10/25

Caption

State management: funds; appropriation bill containing enhancement grant; prohibit without disclosure of the sponsor and the intended recipient. Amends 1984 PA 431 (MCL 18.1101 - 18.1594) by adding sec. 1365a.

Impact

If passed, HB 4420 would necessitate specific disclosures regarding enhancement grants, thereby impacting how state agencies manage and allocate funds. The requirement would mean that sponsoring legislators must provide detailed information regarding the intended recipients and purpose of the grants, thus fostering a more transparent system. Nonprofit organizations will be eligible for enhancement grants only if they have been operating within the state for at least 36 months, ensuring that funds are directed towards established entities with a proven track record.

Summary

House Bill 4420 seeks to amend the management and budget act from 1984 by introducing a new section regarding enhancement grants. The bill stipulates that, with certain exceptions, state agencies are prohibited from expending appropriated enhancement grant funds without prior public disclosure. Specifically, any enhancement grant included in legislative bills must be disclosed on a designated public webpage at least 14 days before the bill's passage, ensuring greater transparency in the appropriations process. This aims to heighten accountability and allow the public an opportunity to review the implications of grant funding before legislation is enacted.

Sentiment

The general sentiment surrounding HB 4420 is one of cautious optimism. Supporters argue that the increased transparency and accountability measures required by the bill will enhance the integrity of the funding process and protect taxpayer interests. However, there are concerns that the additional bureaucratic requirements could hinder the prompt distribution of funds, particularly to smaller nonprofits that may not have the resources to comply with the new disclosure requirements.

Contention

One notable point of contention within discussions around HB 4420 centers on the balance between transparency and expediency. Some advocates suggest that the rigorous disclosure processes could slow down funding for critical projects that require swift financial support, particularly in emergency situations. Opponents of the bill may argue that the complexities introduced by this legislation could potentially discourage legislative support for essential nonprofits that aim to address urgent community needs.