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HB 4400

Trade: vehicles; sale or operation of vehicles designed, developed, or manufactured by a foreign entity of concern; prohibit. Amends 1949 PA 300 (MCL 257.1 - 257.923) by adding sec. 697c.

2025-2026 Regular Session Introduced by Jim DeSana and 1 co-sponsor

HB 4400 bans Michigan dealers from selling or operating vehicles designed or manufactured by a “foreign entity of concern,” with fines up to $50,000 and seizure penalties.

bill electronically reproduced 04/29/2025
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Bill Summary · HB 4400

Summary of Michigan House Bill 4400 (HB 4400)

Overview

HB 4400 would amend the Michigan Vehicle Code (1949 PA 300, MCL 257.1–257.923) by adding new Sec. 697c. The bill prohibits dealers or distributors from selling, offering for sale, or operating any vehicle in Michigan that is designed, developed, or manufactured by a “foreign entity of concern.” It establishes civil penalties, seizure/forfeiture provisions, and defines who qualifies as a “foreign entity of concern.” The act would take effect 90 days after enactment.

  • Introduced: March 11, 2025
  • Public hearing: April 17, 2025
  • Referred to: Committee on Government Operations
  • Status: Electronically reproduced April 29, 2025

Key Provisions

  • Sec. 697c(1) – Prohibition

    • A dealer or distributor may not sell, offer for sale, or operate any vehicle in Michigan that is designed, developed, or manufactured by a foreign entity of concern.

  • Sec. 697c(2) – Penalties and forfeiture

    • Civil fine up to $50,000 per violation.
    • In addition to fines, vehicles sold or owned in violation are subject to seizure and forfeiture.

  • Sec. 697c(3) – Definition of “foreign entity of concern”

    • Includes entities meeting any of the following criteria:
    • Designated as a foreign terrorist organization under 8 U.S.C. § 1189.
    • On the OFAC Specially Designated Nationals (SDN) and blocked persons list.
    • Owned by, controlled by, or under the jurisdiction of a government of a “covered nation” (as defined in 10 U.S.C. § 4872).
    • Alleged by the Michigan attorney general to have involvement in specified activities tied to espionage, economic espionage, arms export control, or related laws (list includes acts such as the Espionage Act, the Economic Espionage Act, the Arms Export Control Act, the Export Control Reform Act, the International Emergency Economic Powers Act, among others).
    • Specifically listed countries: People’s Republic of China, Russian Federation, Islamic Republic of Iran, Democratic People’s Republic of Korea, Cuba, Venezuelan regime of Nicolás Maduro, Syrian Arab Republic.
    • Any agency or entity under significant control of a country listed above.

  • Enacting clause

    • The act takes effect 90 days after the date it is enacted into law.

Affected Parties and Scope

  • Primary targets: motor vehicle dealers and distributors operating in Michigan.
  • Secondary effects: vehicle owners and operators within the state, should they possess or purchase vehicles that fall under the prohibited category.
  • Scope includes both sale and operation within Michigan; enforcement could involve state authorities and civil actions.

Enforcement and Implementation

  • Violations would incur civil fines up to $50,000 per violation.
  • Vehicles involved in violations are subject to seizure and forfeiture.
  • Effective date is 90 days after enactment, providing a transition period for compliance.

Legislative History (Selected Dates)

  • Filed: March 11, 2025
  • Read first time: April 29, 2025
  • Referred to Committee: Government Operations (April 29, 2025)
  • Public hearing and testimony recorded: April 17, 2025
  • Electronically reproduced: April 29, 2025

Potential Impacts and Considerations

  • Dealers/distributors would need to vet inventory for any vehicles designed, developed, or manufactured by entities characterized as “foreign entities of concern.”
  • Potential compliance challenges due to evolving lists and definitions (e.g., OFAC lists, designation changes, or country-control determinations).
  • Possible implications for supply chains, importers, and existing vehicle owners if vehicles are later deemed violative.
  • Constitutional or interstate commerce considerations could arise given federal import/export controls and the cross-border nature of vehicle manufacturing.

This summary provides the bill’s core purpose, substantive provisions, and the likely practical effects on dealers, owners, and enforcement in Michigan.

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

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