HB5295

Appropriations: grants and transfers; state administrative board limitations; modify. Amends sec. 3 of 1921 PA 2 (MCL 17.3). TIE BAR WITH: HB 5294'25

Introduced·11/13/25
Introduced Text

Overview

This bill appears to amend existing Michigan law regarding the powers and responsibilities of the State Administrative Board. The legislation aims to clarify and potentially expand the board's authority over state departments, agencies, and institutions while also placing some limitations on its ability to transfer appropriated funds. The bill seeks to strengthen the board's oversight role in state government operations and ensure compliance from state officials and employees.

Core Provisions

The bill grants the State Administrative Board broad powers to intervene in matters related to its functions and activities. It authorizes the board to advise or direct state departments, boards, commissions, officers, and institutions on how to perform their functions and activities. The legislation places restrictions on the board's ability to transfer funds appropriated by the legislature for one purpose to another, but allows for inter-transfers within appropriations for particular entities. The bill also mandates compliance from state officials and employees with the board's directions and orders, establishing non-compliance as grounds for removal from office.

Key Points

  • Grants intervention powers to State Administrative Board
  • Authorizes board to direct state entities on functions and activities
  • Restricts transfer of appropriated funds between purposes
  • Allows inter-transfers within appropriations for specific entities
  • Mandates compliance with board directions for state officials/employees

Legal References

  • Michigan Trust Fund Act (2000 PA 489, MCL 12.254)
  • Michigan Strategic Fund Act (1984 PA 270, MCL 125.2088s)
  • Michigan Strategic Site Readiness Program (MCL 125.2088t)
  • Emergency Appropriation Act of 1931
  • Management and Budget Act of 1984 (PA 431, MCL 18.1393)

Implementation

The State Administrative Board is the primary entity responsible for implementing the provisions of this bill. The board is granted authority to issue directions and orders to state departments, offices, and institutions. Compliance with these directives is enforced through the threat of removal from office for officials who fail to comply. The bill establishes a waiting period for inter-transfers of funds, requiring six session days and thirty calendar days to elapse after a request is made before the transfer can be executed. This waiting period likely serves as a mechanism for review and potential input from other governmental bodies.

Impact

The bill directly impacts state administrative departments, offices, and institutions in Michigan, as well as their officials and employees. It increases the oversight and control exercised by the State Administrative Board over these entities. The legislation may lead to more centralized decision-making and potentially quicker responses to administrative issues. However, it could also result in reduced autonomy for individual state entities. The mandatory compliance requirements and potential for removal from office may create a more stringent working environment for state officials and employees. The restrictions on fund transfers could impact budgetary flexibility but may also enhance fiscal accountability.

Legal Framework

This bill appears to amend existing Michigan statutes, particularly those related to the powers of the State Administrative Board. It interacts with several existing laws, including the Michigan Trust Fund Act, the Michigan Strategic Fund Act, the Emergency Appropriation Act of 1931, and the Management and Budget Act of 1984. The legislation seems to be grounded in the state's authority to organize and manage its administrative functions. It may raise questions about the balance of power between the legislative and executive branches, particularly regarding the allocation and transfer of appropriated funds.

Critical Issues

Several critical issues arise from this legislation. There may be concerns about the concentration of power in the State Administrative Board and potential for overreach in its ability to direct state entities. The threat of removal from office for non-compliance could be seen as heavy-handed and may face opposition. The restrictions on fund transfers, while potentially improving fiscal accountability, might limit flexibility in responding to changing needs or emergencies. Implementation challenges could include resistance from state entities accustomed to greater autonomy and potential conflicts between board directives and existing departmental policies or procedures. The bill may also face scrutiny regarding its impact on the separation of powers, particularly in relation to the legislature's appropriation authority.

Where it stands

Current
Economic Competitiveness Committee
Next
Committee decision

Sponsors

0
2
RR
Democratic CaucusRepublican Caucus

History

Dec 2, 2025

House

Bill Electronically Reproduced 11/13/2025

Nov 13, 2025

House

Introduced By Representative Rep. Ann Bollin

Nov 13, 2025

House

Read A First Time