Bill > HB4237

This bill establishes new restrictions on local government contracting with entities from certain foreign countries, specifically targeting governments deemed to be of national security concern, including China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria. The bill requires local government units (such as cities, counties, school districts, and authorities) to obtain affidavits from contractors confirming they are not "controlled entities" when seeking procurement contracts that involve access to personal identifying information. Starting July 1, 2026, local governments cannot extend or renew contracts with controlled entities, and contractors who violate these provisions may face significant penalties, including civil fines up to twice the contract amount and potential ineligibility for future contracts for up to 5 years. Additionally, the bill prohibits local governments from using information technology, equipment, or services from companies associated with the specified foreign countries, particularly those identified as potential national security risks by state or federal agencies. Contractors must agree not to use or provide technologies from these restricted sources, and local governments must establish security procedures to prevent potential exploitation by foreign entities. The bill is tied to another piece of legislation (House Bill 4236) and will only take effect if that companion bill is also enacted.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-4237