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HB 6218

Businesses: business corporations; power of corporations to spend in elections or ballot issues; revoke. Amends secs. 261, 271, 821, 1012 & 1041 of 1972 PA 284 (MCL 450.1261 et. seq.) & adds sec. 261a. TIE BAR WITH: HB 6216'26, HB 6217'26

2025-2026 Regular Session Introduced by Erin Byrnes and 9 co-sponsors

HB 6218 would bar domestic and foreign corporations in Michigan from spending on elections or ballot issues, with disgorgement and possible dissolution or revocation for violations

bill electronically reproduced 07/03/2026
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WeVote Research Nonpartisan
Bill Summary · HB 6218

Overview

House Bill 6218 (Michigan, 2025-2026) would amend the Business Corporation Act to restrict corporate political activity in Michigan. Specifically, it adds a new section (261a) and revises several existing sections to limit or invalidate a domestic or foreign corporation’s ability to pay, contribute, or expend money or anything of value in support of or opposition to a candidate, political party, political committee, or ballot question. The bill also creates enforcement provisions and aligns dissolution or revocation options for violations. It is tied to HB 6216 and HB 6217 and includes a requirement that certain related bills be enacted for it to take effect.

Purpose and intent

  • To prohibit corporations from spending money or providing anything of value for elections or ballot measures in Michigan.
  • To authorize disgorgement and possible dissolution or revocation of corporate authority for violations.
  • To preserve editorial/news activities from prohibition, with narrow exceptions.
  • To set up enforcement mechanisms via the attorney general or state administrator.

Key provisions and changes

  • Section 261 (corporate powers): Reiterates broad corporate powers (perpetual duration, sue/be sued, bylaws, officers, property, contracts, borrowing, investments, etc.). Also specifies authority to engage in various financial and business activities, and to participate in joint ventures or multi-entity arrangements. It also explicitly allows corporate activities across jurisdictions and participation in mutual insurance for nuclear facilities, among other things.
  • New Section 261a (political spending prohibition):
    • Domestic corporations: May not pay, contribute, or expend money or anything of value to support or oppose a candidate, political party, political committee, or ballot question in Michigan. Violations are invalid and subject to disgorgement.
    • Foreign corporations: Same prohibition and potential disgorgement.
    • Exceptions:
    • Existing contracts, debt instruments, securities, or other obligations entered before the bill’s effective date are not retroactively invalidated.
    • Bona fide news stories, commentary, or editorials distributed through legitimate media are exempt unless the outlet is owned/controlled by a candidate, party, or committee.
    • Penalties and actions:
    • Violations subject to dissolution for domestic corporations and revocation of authority for foreign corporations (per Section 1041).
    • Attorney General or administrator may seek declarations of invalidity, disgorgement orders, or injunctions.
    • Definitions for terms: “Ballot question,” “Candidate,” “Domestic/Foreign corporation,” and “Political committee.”
  • Section 271: Clarifies that generally acts or transfers by a corporation are not invalid due to lack of capacity, but the lack of capacity can be raised in specified actions (e.g., by shareholders, by the AG for dissolution, etc.) unless limited by Section 261a.
  • Section 821 (dissolution grounds for a corporation):
    • Allows the Attorney General to seek dissolution for fraud, exceeding authority, unlawful conduct, or acts described in Section 261a(1) (political spending prohibition).
    • Other dissolution grounds remain available beyond those listed.
  • Section 1012 (foreign corporations transacting business):
    • Lists activities that do not, by themselves, constitute “transacting business” in the state (e.g., legal proceedings, internal governance, bank activities, certain isolated transactions, interstate commerce).
    • Does not authorize actions described in Section 261a(2) (improper political spending by foreign corporations).
  • Section 1041 (revocation of foreign corporations):
    • Enumerates grounds for revocation of a foreign corporation’s authority to transact business (resident agent, filings, annual reports, etc.) and specifically notes revocation if the corporation performs acts described in Section 261a(2).
  • Enacting section:
    • The act takes effect only if certain companion bills (HB 6216 and HB 6217 or their Senate equivalents) are enacted into law.

Who would be affected

  • Domestic corporations operating in Michigan under the Michigan Business Corporation Act.
  • Foreign corporations transacting business in Michigan.
  • Shareholders and officers of affected corporations (potentially facing dissolution or revocation actions).
  • Michigan residents and political actors, due to potential changes in how corporate money can influence elections or ballot initiatives.
  • Agencies: Attorney General and state administrator responsible for enforcement and disgorgement orders.

Procedural and timeline aspects

  • Introduced: July 3, 2026.
  • Referred to: Committee on Election Integrity.
  • Enacting section specifies that the bill’s effectiveness depends on the concurrent passage of HB 6216 and HB 6217 (or their Senate equivalents S05650/25 and S05651/25).
  • If enacted, the act would enforce new prohibitions with disgorgement and potential dissolution/revocation remedies, and provide AG/administrator-enforcement mechanisms.

Summary assessment

HB 6218 would significantly curb corporate political spending by domestic and foreign corporations in Michigan, creating a clear prohibition with limited exceptions (pre-existing obligations and certain media reporting). It introduces strong enforcement tools (disgorgement, dissolution, revocation) and ties its effectiveness to companion bills. The bill preserves core corporate powers and routine business activities but adds a strict compliance regime regarding political expenditures.

Compiled from official sources — confirm details with the bill’s official record.

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