Michigan 2025-2026 Regular Session

Michigan House Bill HB4237

Introduced
3/13/25  

Caption

Local government: other; procedures to limit foreign influence in local contracting; establish. Creates new act. TIE BAR WITH: HB 4236'25

Impact

The legislation will modify the existing procurement process for local governments, mandating that any contract providing access to personal identifying information must be accompanied by an affidavit verifying the contractor is not a controlled entity. It sets specific regulations that apply to various types of contracts, including those for construction, supplies, services, and information technology. This is aimed at ensuring the protection of personal data and local government integrity against foreign overreach.

Summary

House Bill 4237, known as the Local Government Contracting Act, seeks to restrict local governments in Michigan from entering into procurement contracts with certain foreign entities considered a national security risk. The bill establishes criteria under which a 'controlled entity,' defined as one that is owned or significantly controlled by a foreign country of concern, cannot be awarded contracts. This includes any organization linked to nations such as China, Iran, or Russia, among others. The intent of the bill is to safeguard local resources and information by preventing foreign exploitation.

Contention

Notable points of contention surrounding HB 4237 may arise regarding its implications for local governance and its interaction with existing laws. Critics might argue that the bill could unnecessarily complicate local governance processes and impede local authorities' ability to make autonomous decisions regarding their procurement practices. Proponents counter that it addresses significant security concerns in a globally connected environment, ensuring sensitive information is not shared with potential adversaries.

Companion Bills

MI HB4236

Same As State management: purchasing; procedures to limit foreign influence in state contracting; establish. Amends secs. 113, 114, 241, 241c & 261 of 1984 PA 431 (MCL 18.1113 et seq.) & adds sec. 272.

Previously Filed As

MI HB4236

State management: purchasing; procedures to limit foreign influence in state contracting; establish. Amends secs. 113, 114, 241, 241c & 261 of 1984 PA 431 (MCL 18.1113 et seq.) & adds sec. 272.

MI HB4240

State agencies (existing): other; foreign influence of public bodies; prohibit. Creates new act.

MI HB4239

Higher education: other; foreign influence of state institutions of higher education; prohibit. Creates new act.

MI H0905

Foreign Influence

MI H0977

Contracting with Foreign Countries of Concern

MI H1543

Contracting with Foreign Countries of Concern

MI S1178

Foreign Influence

MI SB1380

Creates new provisions relating to prohibiting foreign influence on lobbying activities

MI SB64

Local Government and State Government; certain transactions between government entities and certain foreign persons; prohibit

MI S1126

Prohibited Contracting with Covered Foreign Entities

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