Bill > HB5058

This bill amends the existing Divestment from Terror Act to expand the definition of "state sponsors of terror" to include the Russian Federation, the Islamic Republic of Iran, and the Democratic People's Republic of Korea (North Korea), in addition to countries already designated by the U.S. Secretary of State as repeatedly supporting international terrorism. The bill modifies provisions related to how state financial entities (such as retirement systems, state treasurers, community college boards, and other state funds) must handle investments in companies doing business with these countries. It defines "scrutinized companies" as those with significant business operations or investments in state sponsors of terror, and requires state fiduciaries to divest from such companies unless the companies take "substantial action" to cease those operations. The bill updates terminology, clarifies definitions of business operations and holdings, and establishes that the divestment provisions will apply immediately for the newly added countries. It also maintains provisions allowing the state treasurer to extend implementation dates under certain circumstances, such as potential conflicts with federal law or insufficient information to prepare an accurate list of scrutinized companies. The legislation aims to prevent state funds from indirectly supporting countries considered sponsors of terrorism by requiring divestment from companies with significant business ties to these nations.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5058