The bill amends the Management and Budget Act of 1984 by adding a new section, 1365a, which establishes regulations for the expenditure of enhancement grant funds by state agencies. Under this new section, state agencies are prohibited from spending appropriated enhancement grant funds unless certain conditions are met. Specifically, enhancement grants must be publicly disclosed on the department's website by April 1 of the year they are considered, and the sponsoring legislator must provide detailed information about the grant at least 10 business days prior to this date. The bill outlines the required information for public disclosure, including the sponsoring legislator's name, intended grant recipient, purpose of the grant, and a certification that the grant is not intended for a for-profit entity.

Additionally, the bill specifies eligibility criteria for nonprofit organizations seeking enhancement grants, including a requirement to have operated continuously in Michigan for the past 36 months and to have a physical office in the state for at least the preceding 12 months. It also mandates that enhancement grants cannot be used to pay tax obligations to the state. The department is tasked with creating a public webpage to display the completed disclosures and must update this page with grant funding amounts and statuses within specified timeframes. The bill is set to take effect on January 1, 2026.

Statutes affected:
Substitute (H-2): 18.1101, 18.1594
House Introduced Bill: 18.1101, 18.1594
As Passed by the House: 18.1101, 18.1594