Bill > HB4240

This bill creates the "Foreign Influence of Public Bodies Act", which establishes comprehensive regulations for how state and local government agencies (referred to as "public bodies") can interact with foreign sources, particularly those from countries of concern like China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria. The bill requires public bodies to disclose and restrict certain financial interactions with foreign sources, mandating that they cannot accept gifts, grants, or enter into agreements that constrain their freedom, allow foreign control of programs, or potentially undermine U.S. safety and security. Specifically, public bodies must disclose any gifts or grants valued at $50,000 or more from foreign sources to the Department of Insurance and Financial Services within 30 days, and entities applying for grants or contracts over $100,000 must submit detailed disclosures about their foreign connections. The bill also establishes a screening process to identify entities subject to federal trade sanctions and imposes civil fines for non-compliance, ranging from $5,000 to $10,000 per violation, with potential ineligibility for future contracts after a third violation. The goal is to increase transparency and protect state and local governmental entities from potential undue foreign influence.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4240