This week, members of the Senate Appropriations Committee reported on SB 596 (Anthony, D-Lansing) and HB 4420 (Kunse, R-Clare), legislation that would apply transparency measures for budget earmarks into state statute. In a unanimous vote, HB 4420 which outlines the requirements for the earmark request form, was approved by members. All but one legislator voted for SB 596, which would enact certain transparency requirements for legislative earmarks.
Both bills were substituted before being reported, with the S-1 substitute for SB 596 including several changes. The bill defines a “legislatively directed spending item” (LDSI) as an appropriation that provides a specific amount of money to a particular entity, local government, or project. It excludes funds tied to declared emergencies, formula-based programs, or services that are already required by law.
Earmarks would need to be reviewed by the originating chamber’s appropriations committee before inclusion in any bill or conference report. For-profit organizations would be ineligible for earmarks, while nonprofits must have operated in Michigan for at least three years, maintained a Michigan office for one year, and have a board of directors. The House and Senate would also be required to post earmark requests online within five business days of submission.
A second substitute was adopted for SB 596 to require that an earmark be submitted at least 10 days prior to being voted on by the legislature. The substitute also included parameters for giving either chamber the authority to require an earlier deadline for submitting earmarks. While the bill passed in the Senate 31-5, Speaker of the House Matt Hall (R-Richland Township) criticized the brief 10-day deadline for submitting earmarks and instead suggested a 90 day deadline would be optimal.
HB 4420’s S-2 substitute would require the legislator making the earmark request, and any cosponsors, to attach their name to the earmark. The name of the recipient and their address would also have to be included. A confirmation for nonprofit requirements detailed in SB 596’s S-1 would also be required. Each request would also need to include a statement confirming no conflict of interest and verification of the recipient’s nonprofit status or a statement that it is not-for-profit.
SB 596 is currently awaiting a committee hearing in the House Appropriations committee. HB 4420 has been placed on third reading in the Senate.
