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HB 6217

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.) by adding sec. 261a. TIE BAR WITH: HB 6216'26, HB 6218'26

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

Michigan nonprofits may not spend money to support or oppose candidates or ballot questions, with enforcement including disgorgement and possible dissolution or revocation.

bill electronically reproduced 07/03/2026
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Bill Summary · HB 6217

Overview

House Bill 6217 (2025-2026 Michigan) would amend the nonprofit corporation act to restrict the ability of nonprofit corporations to spend money in elections or on ballot questions, by adding a new prohibition and enforcement provisions. The bill also coordinates with two other bills (HB 6216 and HB 6218) as part of a package that would enact these changes and specify remedies and conditions for enforcement.

Main purpose and intent

  • Prohibit nonprofit corporations formed under Michigan law from paying, contributing, or expending money or anything of value to support or oppose political candidates, political parties, political committees, or ballot questions, with limited statutory exceptions.
  • Create enforcement mechanisms, including disgorgement and potential dissolution or revocation actions for violations.
  • Align with related reforms by tying the effective date to the passage of the companion bills in the package.

Key provisions and changes

  • Sec. 261a (new):
    • Domestic nonprofit corporations are barred from paying or expending funds to support or oppose candidates, political parties, political committees, or ballot questions (with certain exceptions described below). Violations are invalid and subject to disgorgement.
    • Foreign nonprofit corporations are similarly barred from such expenditures in Michigan; violations are invalid and subject to disgorgement.
    • Exceptions:
    • The prohibition does not apply to obligations or contracts entered into before the effective date of the act.
    • It does not apply to bona fide news stories, commentary, or editorials distributed through broadcasting, print, online, or digital outlets, unless the outlet is owned or controlled by a candidate, political party, or political committee.
    • If a domestic corporation engages in prohibited political spending, dissolution can be pursued; if a foreign corporation engages in such spending, their authority to transact business in Michigan can be revoked.
    • Enforcement, including actions for declarations of invalid acts, disgorgement orders, and injunctions, may be brought by the attorney general or the administrator.
    • Definitions:
    • Ballot question and candidate defined per Michigan campaign finance law.
    • Domestic vs. foreign corporation excludes political committees.
  • Sec. 271:
    • Clarifies that acts or property transfers by a corporation are not automatically invalid due to lack of corporate power, but the lack of power can be asserted in specified ways (e.g., by shareholders, directors, or the attorney general).
  • Sec. 821:
    • The attorney general may seek dissolution of a corporation for fraud, exceeding authority, unlawful conduct, or acts described in Sec. 261a(1).
    • The section preserves other dissolution or enforcement avenues beyond these grounds.
  • Sec. 1012:
    • Foreign corporations are not considered to be “conducting affairs” in Michigan for certain routine activities (e.g., meetings, bank accounts, routine filings), with specific carve-outs.
  • Sec. 1041:
    • Authorizes the administrator to revoke a foreign corporation’s certificate of authority for specified failures (e.g., failure to maintain a resident agent, file required statements or annual reports, or perform acts described in Sec. 261a(2)).

Who would be affected

  • Domestic nonprofit corporations organized under Michigan law.
  • Foreign nonprofit corporations operating in Michigan.
  • Political committees and campaigns are indirectly affected, as the bill restricts how nonprofits may interact with political processes.
  • The Michigan Attorney General and the state administrator would have explicit enforcement roles, including dissolution, revocation, and disgorgement actions.

Procedural and timeline aspects

  • Enacting language indicates that HB 6217 is part of a tie-bar with HB 6216 and HB 6218, meaning the bill’s effective date depends on the passage of the companion measures.
  • The act would take effect only if both related bills are enacted into law.
  • Upon enactment, provisions would apply to acts performed after the effective date, with transitional considerations for existing contracts or obligations (per the new Sec. 261a(3)).

Practical impact and considerations

  • The bill tightens restrictions on nonprofit political spending within Michigan, creating a potential risk of disgorgement and loss of authority to transact for violators.
  • It provides explicit enforcement pathways for the state to address prohibited expenditures.
  • It narrows previously broad corporate powers by defining a clear political spending prohibition for both domestic and foreign nonprofit corporations operating in Michigan.
  • The exact scope and definitions for “ballot question” and “candidate” align with the Michigan Campaign Finance Act, ensuring consistency with current campaign finance terminology.

If you’d like, I can provide a side-by-side comparison with current law or a table summarizing the enforcement steps and potential penalties.

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

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