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SB 1086

Businesses: nonprofit corporations; power of nonprofit corporations to spend in elections or ballot issues; revoke. Amends secs. 261, 271, 821, 1012 & 1041 of 1982 PA 162 (MCL 450.2261 et seq.) & adds sec. 261a. TIE BAR WITH: SB 1085'26, SB 1087'26

2025-2026 Regular Session Introduced by Rosemary Bayer and 8 co-sponsors

Prohibits nonprofit and foreign nonprofits in Michigan from paying or expending money to influence elections or ballot questions, with limited exceptions.

SENATE CO-SPONSOR(S) NAMED: MALLORY MCMORROW
#businesses:nonprofitcorporations
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WeVote Research Nonpartisan
Bill Summary · SB 1086

Summary of SB 1086 (Session 2025-2026) – Michigan

Purpose and intent

  • SB 1086 proposes to amend the nonprofit corporation act (1982 PA 162) to restrict the political activities of nonprofit and foreign corporations operating in Michigan.
  • Specifically, it adds a new section (261a) that generally bars domestic (Michigan-based) and foreign (out-of-state) nonprofit corporations from paying, contributing, or expending money or anything of value in support of or opposition to political candidates, political parties, political committees, or ballot questions in Michigan.
  • The bill also aligns with companion measures (SB 1085 and SB 1087) to create a tied package of changes governing nonprofit political spending and related enforcement/remedies.

Key provisions and changes

  • Section 261a (new) — Prohibition on political spending
    • Domestic nonprofit corporations: May not pay, contribute, or expend money or anything of value in support of/opposition to a candidate, political party, political committee, or ballot question.
    • Foreign nonprofit corporations: May not pay, contribute, or expend money or anything of value in support of/opposition to a candidate, political party, political committee, or ballot question in Michigan.
    • Violations are subject to disgorgement and potential dissolution or revocation actions as applicable.
    • Exceptions or limited allowances:
    • Does not apply to contracts, debts, or obligations validly entered before the amendatory act’s effective date.
    • Does not apply to bona fide news stories, commentary, or editorials distributed through legitimate media facilities, unless those facilities are owned/controlled by a candidate, political party, or political committee.
    • Definitions provided for “ballot question,” “candidate,” “domestic/foreign corporation,” and “political committee.”
  • Section 261 (existing powers)
    • Enumerates broad corporate powers for nonprofit corporations (e.g., governance, property holdings, borrowing, making contracts, donations for public purposes, pension and employee benefits, investment activities, etc.).
    • Retains flexibility for nonprofit corporations to conduct activities aligned with their purposes, subject to other statutory limitations.
  • Section 271 (capacity and enforcement)
    • Maintains mechanisms by which lack of corporate power can be challenged in specific actions (e.g., by shareholders, AG, or other parties).
  • Section 821 (dissolution authority)
    • Authorizes the attorney general to seek dissolution for specified misconduct, including acts described in 261a(1).
  • Section 1012 (activities of foreign corporations)
    • Clarifies activities that do and do not constitute “conducting affairs” in Michigan for foreign corporations, with emphasis on typical business and regulatory activities.
  • Section 1041 (grounds for revocation)
    • Grants the administrator the authority to revoke a foreign corporation’s authority if it fails to maintain a resident agent, file required notices, or performs acts described in 261a(2).

Who is affected

  • Domestic nonprofit corporations organized under Michigan law.
  • Foreign nonprofit corporations authorized to do business in Michigan.
  • Political actors (candidates, political parties, political committees) could see reduced engagement by these nonprofits through direct spending on campaigns or ballot initiatives.
  • The Michigan Attorney General and the state’s administrator would have enforcement and corrective authority (dissolution, disgorgement, revocation, injunctions).

Procedural and timeline aspects

  • SB 1086 is introduced on July 2, 2026, and referred to the Senate Committee on Elections and Ethics.
  • Enacting Section 1 states the act’s effect is contingent on the simultaneous enactment of SB 1085 and SB 1087, indicating a coordinated package. The exact effective date would follow the passage of all required companion bills.
  • The act provides for specific remedies (disgorgement, dissolution, revocation, injunction) to enforce the new prohibition.

Potential impact and considerations

  • Strengthens limits on nonprofit political spending for both Michigan-based and out-of-state nonprofits.
  • Could reduce the influence of nonprofit organizations in Michigan elections and ballot measures by restricting direct political expenditures.
  • Creates enforcement pathways through the attorney general, administrator, and courts, with potential penalties including disgorgement and dissolution.
  • Notable exceptions include pre-existing contracts/debts and certain media reporting, though media content remains subject to scrutiny if it is connected to political actors.

If you’d like, I can provide a side-by-side comparison with SB 1085 and SB 1087, or draft a plain-language FAQ for voters and stakeholders.

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

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