Bill > HB4236

This bill amends Michigan's management and budget act to establish procedures to limit foreign influence in state contracting. The bill introduces new definitions related to foreign entities, specifically defining "controlled entity" as an organization owned, controlled, or based in certain countries of concern, including China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria. The legislation requires state contractors to provide affidavits confirming they are not controlled entities when bidding on contracts that involve access to personal identifying information. Beginning July 1, 2025, the state cannot extend or renew contracts with controlled entities. The bill also prohibits state agencies from using information technology, equipment, or services from companies connected to these foreign countries, particularly those that pose national security risks. Contractors who violate these provisions may face significant penalties, including civil fines up to twice the contract amount and potential ineligibility to bid on state contracts for up to five years. The Department of Technology, Management, and Budget is tasked with creating directives to implement these restrictions, including maintaining a list of technologies and services considered risky due to their connection with foreign countries of concern.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4236