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HB 5058

State management: purchasing; divestment from terror act; expand to include certain countries. Amends secs. 2, 10 & 11 of 2008 PA 234 (MCL 129.292 et seq.).

2025-2026 Regular Session Introduced by Noah Arbit

Michigan bill expands state divestment restrictions to additional countries, directing public funds and purchasing away from terror-linked entities in expanded list.

bill electronically reproduced 09/26/2025
#law:contracts #statemanagement:purchasing
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Bill Summary · HB 5058

Legislative bill overview

HB 5058 expands Michigan's existing divestment law (2008 PA 234) to include additional countries beyond those currently specified. The bill amends the state's purchasing and investment policies to restrict or prohibit state funds from supporting entities linked to designated countries on terrorism or sanctions lists.

Why is this important

State pension funds and purchasing decisions represent billions of dollars in Michigan assets. Divestment laws direct where public money can be invested, potentially influencing corporate behavior and signaling state policy priorities. This expansion affects which entities Michigan will do business with and where retirement funds are allocated.

Potential points of contention

  • Defining criteria: The bill's language regarding which countries qualify for inclusion remains unclear from the summary; broader definitions could significantly expand scope and complexity
  • Economic impacts: Divestment restrictions may limit investment returns, increase procurement costs, or create competitive disadvantages for Michigan businesses
  • Foreign policy authority: Questions about whether states should independently determine sanctions policy versus following federal guidance, and potential conflicts with federal law
  • Implementation burden: State agencies would need new compliance systems to track prohibited entities, requiring administrative resources and potential legal challenges

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

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