Local government: other; procedures to limit foreign influence in local contracting; establish. Creates new act. TIE BAR WITH: HB 4236'25

HB 4237 prohibits Michigan local governments (like cities, counties, and school districts) from awarding or renewing contracts that give contractors access to personal data if the contractor is a "controlled entity" tied to specific foreign countries of concern (China, Russia, Iran, North Korea, Cuba, Venezuela, or Syria). It requires contractors to submit sworn affidavits confirming they are not controlled entities, with violations subject to fines up to twice the contract value or a 5-year contract ban. The bill also restricts local governments from using information technology or services designed, developed, or supplied by companies owned by those foreign countries, aligning with federal security lists. These rules take effect July 1, 2026, for contract renewals and extensions.