State Ann Bollin today voted to put an end to excessive severance payouts for departing government employees, supporting a plan that protects taxpayer dollars and increases transparency in state government.

In recent years, Michigan taxpayers have been on the hook for large severance agreements awarded to top officials leaving state government, often tied to non-disclosure agreements that keep the details hidden from the public. Bollin said the legislation approved by the House today restores accountability and ensures taxpayer money is not used to quietly settle departures behind closed doors.

“Taxpayers should never be forced to fund six-figure payouts to government officials who are walking away from their jobs,” Bollin said. “These backroom deals erode trust and leave the public in the dark. This plan puts an end to that and ensures transparency and accountability where it belongs.”

House Bill 6009 sets clear limits on severance agreements across state government. The plan would prohibit severance payouts entirely for elected and appointed officials and cap payments for certain other state employees at no more than 12 weeks of pay.

The proposal comes after several high-profile cases in recent years. In 2021, a former Michigan Department of Health and Human Services director received more than $155,000 in a severance agreement tied to an NDA. The following year, the former Unemployment Insurance Agency director resigned with a severance package of about $85,000, also tied to a non-disclosure agreement.

Bollin said those types of arrangements highlight a troubling pattern.

“When government officials leave under a cloud, the public wants answers. Instead, they’ve been getting silence bought and paid for with taxpayer money,” Bollin said. “We’re making it clear that secrecy and excessive payouts will no longer be tolerated.”

In addition to limiting payouts, the legislation ensures severance agreements cannot be used to conceal potential wrongdoing. The bill prevents the use of NDAs to hide workplace issues or shield information from public scrutiny.

Bollin has consistently worked to bring transparency to these types of agreements since they first came to light. She previously secured language in the state budget requiring departments to publicly report large severance payments made to high-ranking officials, helping shine a light on how taxpayer dollars are being used. That requirement was later eliminated in the 2024 budget when Democrats controlled both chambers of the Legislature, a plan Bollin opposed.

House Bill 6009 would put these protections into state law, making it far more difficult for future lawmakers to quietly roll them back. The measure now advances to the Michigan Senate for further consideration.