2025 Senate Bill 596

State finance: budgets; legislatively directed spending items; create a request and monitoring process for.

A bill 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, maintaining, 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 provide 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 make 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.

AI Analysis – Experimental

SB 596 establishes new procedures, eligibility requirements, and transparency measures for legislatively directed spending items in Michigan, aiming to enhance oversight and accountability in state appropriations.

Introduced in the Senate

Oct. 2, 2025

Introduced by Sen. Sarah Anthony (D-21)

Referred to the Committee on Appropriations

Oct. 14, 2025

Reported with substitute S-1

Oct. 15, 2025

Referred to the Committee of the Whole

Oct. 21, 2025

Reported with substitute S-2

Substitute S-2 concurred in by voice vote

Amendment offered by Sen. Jim Runestad (R-23)

1. Amend page 1, line 3, after “item.” by striking out the balance of the line through “representatives” on line 6 and inserting “A legislator must submit a request for a legislatively directed spending item at

least 60 days before the date that the appropriations bill containing the legislatively directed spending

item is passed by that legislator’s chamber the first time”.

The amendment was withdrawn

Amendment offered by Sen. Jim Runestad (R-23)

1. Amend page 1, line 5, after “least” by striking out “10” and inserting “60”.

2. Amend page 1, line 7, by striking out “both chambers of the legislature” and inserting “that legislator’s chamber the first time”.

The amendment failed 18 to 18 (details)

Passed in the Senate 31 to 5 (details)

Received in the House

Oct. 21, 2025

Referred to the Committee on Appropriations

Oct. 30, 2025

Discharged from committee

Amendment offered by Rep. Tom Kunse (R-100)

1. Amend page 1, line 3, after “item.” by striking out the balance of the page through “date.” on line 1 of page 2.

2. Amend page 2, line 2, after “item” by inserting “in accordance with this section and”.

3. Amend page 2, line 3, after “364a.” by inserting “A request for a legislatively directed spending item

does not carry over to a subsequent budget cycle and must be submitted each budget cycle to be

considered.”.

4. Amend page 3, line 1, after “least” by striking out “10” and inserting “60 calendar”.

5. Amend page 4, line 2, after “subsection” by striking out “(9)” and inserting “(7)(e)”.

6. Amend page 4, line 17, after “agreement.” by striking out the balance of the subsection and inserting “The auditor general shall, at no additional cost to the department or state department or agency,

evaluate the management of legislatively directed spending items as part of the auditor general’s

annual financial audits of state agencies.”.

7. Amend page 5, line 7, after “state” by striking out the balance of the subdivision and inserting a period.

8. Amend page 5, following line 16, by inserting:

“(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. Amend page 5, line 21, by striking out all of subsection (9) and renumbering the remaining subsections.

10. Amend page 5, line 29, after “do” by striking out “both” and inserting “all”.

11. Amend page 5, following line 29, by inserting:

“(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 a corresponding and valid

expenditure that is in accord with the purpose of the legislatively directed spending item. “ and

relettering the remaining subdivisions.

12. Amend page 6, following line 11, by inserting:

“(c) Not later than 30 calendar days after taking action under subsection (7)(d), notify each member of the legislature who holds a leadership position.”.

14. Amend page 6, line 20, by striking out all of subparagraph (ii) and inserting:

“(ii) The chair of the senate or house of representatives appropriations committee.”.

The amendment passed by voice vote

Passed in the House 99 to 4 (details)

Motion to give immediate effect by Rep. Bryan Posthumus (R-90)

The motion prevailed by voice vote

Received in the Senate

Nov. 5, 2025

Nov. 13, 2025

Amendment offered by Sen. Sarah Anthony (D-21)

1. Amend House Amendment No. 3, page 1, line 6, after “364a.” by striking out “A request for a

legislatively directed spending item does not carry over to a subsequent budget cycle and must be

submitted each budget cycle to be considered.” and inserting “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.”.

2. Amend House Amendment No. 4, page 2, line 26, after “least” by striking out “60 calendar” and inserting “45 calendar”.

3. Amend House Amendment No. 11, page 5, line 27, after “for” by striking out “a corresponding and valid” and inserting “an incurred or intended”.

The amendment passed by voice vote

Amendment concurred in 35 to 0 (details)

Motion to give immediate effect

The motion prevailed by voice vote

Received in the House

Nov. 13, 2025

Amendment concurred in 101 to 0 (details)