Sec. 1365a. (1) Except as provided in this section, a state agency shall not expend appropriated enhancement grant funds. An enhancement grant included in a bill or conference report passed by the legislature must be publicly disclosed on the department's webpage created under subsection (4) by April 1, or the first business day after April 1, of the same calendar year the enhancement grant is considered by the legislature and for not less than 14 days before passage of a bill or conference report. The sponsoring legislator shall provide the enhancement grant

information to the department not later than 10 business days before April 1 of the calendar year the enhancement grant is considered by the legislature. The public disclosure form for an enhancement grant must be submitted in the following form:

Enhancement Grant Information

1. Sponsoring legislator's full name:

2. Cosponsoring legislators' names (if applicable):

3. Intended grant recipient:

4. Physical address of grant recipient:

5. List the grant impacted districts and corresponding state senators and representatives and their district numbers:

6. Requested amount of the grant:

7. What is the purpose of the enhancement grant?

8. How does the enhancement grant provide a public benefit that is an appropriate use of taxpayer money? Demonstrate that the grant is also not for a local or private purpose under section 30 of article IV of the state constitution of 1963 in your answer:

9. Has the grant previously received or been awarded any of the following types of funding? Check all that apply.

[ ] Federal

[ ] State

[ ] Local

[ ] Private

10. Estimated time frame for completion of the grant project:

Additional Information For Nonprofit Organizations (if applicable)

The answer to questions 1 to 3 must be "Yes" for the nonprofit to qualify for an enhancement grant.

1. Has the nonprofit organization continuously operated in this state for the preceding 36 months?	[ ] Yes	[ ] No
2. Has the nonprofit organization had a physical office in this state for not less than the preceding 12 consecutive months?	[ ] Yes	[ ] No
3. Does the nonprofit organization have a board of directors?	[ ] Yes	[ ] No
4. List all of the officers and active members on the board of directors:

Certification By Sponsoring Legislator
"I certify that my immediate family members, legislative staff members, and I have no direct or indirect pecuniary interest in the requested enhancement grant."
"I certify that this enhancement grant is not intended for a for-profit entity."
"I certify that the information in this form is true to the best of my knowledge."
Signature: ____________________________________

(2) The sponsoring legislator must provide the completed form required under subsection (1) to the department. The department must provide the completed form to the chairpersons of the senate and house of representatives appropriations committees, senate fiscal agency, and house fiscal agency.

(3) A for-profit business is not eligible to receive an

enhancement grant. A nonprofit organization is eligible for an enhancement grant only if it meets all of the following requirements:

(a) Has continuously operated in this state for the preceding 36 months.

(b) Has had a physical office in this state for not less than the preceding 12 consecutive months.

(4) An enhancement grant must not be used to pay a tax lien, delinquent tax, or other obligation owed to this state.

(5) The department shall develop a webpage on the department's official website to display the completed public disclosures required under subsection (1). The webpage developed under this subsection must be conspicuously available to the public. The department shall post the completed public disclosures on the webpage not later than the following, as applicable:

(a) For the calendar year 2026, 10 business days after the development of the webpage.

(b) 10 business days after the department's receipt of the complete public disclosure.

(6) Not later than 30 days after an enhancement grant is appropriated to a state agency, the department shall update the public webpage created in subsection (5) to include the amount of funding that was appropriated for the enhancement grant and the status of the funding.

(7) Not later than 30 days after an enhancement grant is appropriated to a nonprofit organization, the nonprofit shall provide its internal revenue service form 990, 990-EZ, or other 990-series return for the most recent tax year to the department.

Not later 10 business days after receipt of the form, the department shall post, to the extent permitted by law, the form to the public webpage created in subsection (5).

(8) As used in this section:

(a) "Enhancement grant" means an appropriation that authorizes or obligates a specific amount of money for a contract, grant, loan, or other economic assistance, incentive, or expenditure to a specific person, organization, unit of local government, or project or activity in a unit of local government, other than through a formula-driven or competitive award process.

(b) "Immediate family member" means any of the following individuals:

(i) An individual's parent, child, sibling, or spouse.

(ii) Any other individual who resides in the same household as the individual.

(d) "Staff member" means an individual who is currently or, within the prior 2 years, has been employed by the senate or house of representatives.

Enacting section 1. This amendatory act takes effect January 1, 2026.