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HB 4236

State management: purchasing; procedures to limit foreign influence in state contracting; establish. Amends secs. 113, 114, 241, 241c & 261 of 1984 PA 431 (MCL 18.1113 et seq.) & adds sec. 272.

2025-2026 Regular Session Introduced by Greg Alexander and 14 co-sponsors

Limits state contracts with entities tied to certain foreign governments; requires affidavits and bans renewals for those with PII access.

bill electronically reproduced 03/13/2025
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Bill Summary · HB 4236

Summary — HB 4236 (2025): Limits on foreign influence in state contracting; amendments to The Management and Budget Act

Main purpose
HB 4236 amends provisions of the Management and Budget Act (1984 PA 431) to add definitions and procurement restrictions intended to limit contracting and contract renewals with entities that are owned by, controlled by, or otherwise connected to certain foreign governments. The bill targets state construction and facility contracts (including certain capital outlay projects) and imposes affidavit and prohibition requirements where contractors would access personal identifying information (PII).

Key provisions and changes

  • Adds and revises statutory definitions:
    • “Capital outlay”: projects costing more than $1,000,000 (including lease-purchase agreements).
    • “Controlled entity”: entities that are owned by, have a controlling interest by, are organized in, or have principal place of business in a listed “foreign country of concern.”
    • “Controlling interest”: presumes control if a government directly or indirectly has the right to vote 25%+ of voting interests or is entitled to 25%+ of profits.
    • “Foreign country of concern”: explicitly lists the People’s Republic of China, the Russian Federation, Iran, North Korea (DPRK), Cuba, the Venezuelan regime of Nicolás Maduro, Syria, and agencies/entities under significant control of those countries.
  • Procurement restrictions (amend. to MCL 18.1241):
    • Construction/repair/remodel/demolition contracts must follow board-approved bidding and competitive solicitation procedures.
    • Applicants for contracts that would give access to personal identifying information must submit an affidavit, under penalty of perjury, attesting they are not a controlled entity.
    • The department (DTMB) may not knowingly enter into such contracts with a controlled entity.
    • Beginning July 1, 2025 (per bill text), the department may not knowingly extend or renew contracts that gave access to PII unless the contractor provides the non‑controlled-entity affidavit; the department may not renew contracts with a controlled entity.
  • Retains existing preference language: up to a 10% preference for qualified disabled veterans in awarding construction contracts.

Who is affected

  • State agencies that procure construction, repair, remodeling, or demolition services (chiefly DTMB).
  • Contractors and prospective contractors for state-funded facility projects and capital outlay projects (>$1,000,000).
  • Subcontractors and vendors that would have access to individuals’ personal identifying information.
  • Entities with ownership, control, organization, or principal business ties to the listed foreign countries.

Compliance, enforcement, and impacts

  • Requires contractor affidavits under penalty of perjury; DTMB must verify and may not knowingly contract or renew with controlled entities.
  • Could disqualify or prevent renewal of existing vendors with covered foreign ties, and increases vendor compliance burden (due diligence, affidavit provision).
  • May prompt vendor restructuring, legal challenges, or administrative review processes over affiliation and control determinations.

Legislative status and timeline

  • Introduced March 10, 2025; House introduced March 13, 2025.
  • Passed both chambers (Senate amendments concurred); enrolled and sent to governor.
  • Filed without the Governor’s signature June 20, 2025.
  • Effective date listed as September 1, 2025 (legislative actions). Note: bill text also contains a clause stating “Beginning July 1, 2025” for certain prohibitions; users should consult the enacted law and any implementing directives for final effective timing and administrative guidance.

If you want, I can: 1) extract and summarize any additional (truncated) sections of the bill, 2) produce a compliance checklist for affected contractors, or 3) create a one‑page memo for agency procurement officers.

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

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