HB 4240 Michigan House · 2025-2026 Regular Session

State agencies (existing): other; foreign influence of public bodies; prohibit. Creates new act.

House Bill 4240, titled the "Foreign Influence of Public Bodies Act," aims to regulate interactions between Michigan state and local government bodies and certain foreign entities. It prohibits public bodies from accepting gifts or grants, or entering agreements, with specified "foreign countries of concern" if those interactions compromise the public body's autonomy or pose a security risk. The bill mandates that public bodies disclose gifts or grants of $50,000 or more from any foreign source. Additionally, individuals or entities seeking state grants or contracts exceeding $100,000 must disclose their financial ties to these "foreign countries of concern." All disclosed information will be made publicly available to enhance transparency.

Bill status passed both 4 of 5 stages cleared

Introduction

Mar 2025

Committee Review

May 2025

House Passage

May 2025

Senate Passage

May 2025

Governor

Introduced Mar 13, 2025 Last action May 13, 2025

Maddy AI version diff · 1 comparison

What changed between versions

House Introduced Bill → As Passed by the House · 5 edits · May 6, 2025

MODERATE

The bill was expanded from a House Introduced version to a final House version by adding new definitions of 'foreign source' and 'foreign country of concern,' introducing new disclosure requirements for designated persons seeking grants or contracts, and adding enforcement mechanisms including civil fines and screening procedures. These changes strengthen the bill's ability to identify and regulate foreign influence on Michigan public bodies.

Scope change

The bill's scope was expanded to include additional foreign countries and entities under 'foreign country of concern,' and new disclosure requirements were added for designated persons applying for grants or contracts valued at $100,000 or more.

DEFINITION

Added 'Republic of Cuba' and 'Venezuelan regime of Nicolás Maduro' to the list of foreign countries of concern, and expanded the definition of foreign source to include agents acting on behalf of persons described in previous subparagraphs.

REQUIREMENT

Added new Section 13 requiring designated persons applying for grants or contracts of $100,000 or more to submit disclosures about their foreign connections to the public body and the Department of Insurance and Financial Services.

Added new Section 15 establishing an online system for submitting disclosures and Section 19 providing investigation procedures for alleged violations of disclosure requirements.

ENFORCEMENT

Added new Section 17 requiring the Department of Technology, Management, and Budget to screen grant recipients and contractors at least once every 5 years for federal sanctions, embargoes, or restrictions.

Added new Section 21 establishing civil fines of $5,000 for first violations and $10,000 for subsequent violations of disclosure requirements, and created a list of people ineligible for contracts after a third violation.

Floor votes · House May 6, 2025

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

May 13, 2025

Committee

REFERRED TO COMMITTEE ON GOVERNMENT OPERATIONS

upper

May 13, 2025

Upper · Passed

PASSED BY HOUSE WITH IMMEDIATE EFFECT

upper

May 6, 2025

Lower · Passed

passed; given immediate effect Roll Call #86 Yeas 61 Nays 49 Excused 0 Not Voting 0

lower

Apr 17, 2025

Committee

referred to second reading

lower

Apr 17, 2025

Lower · Passed

reported with recommendation without amendment

lower

Mar 26, 2025

Lower · Passed

recommendation concurred in

lower

Mar 26, 2025

Lower · Passed

reported with recommendation for referral to Committee on Rules

lower

Mar 13, 2025

Committee

referred to Committee on Government Operations

lower

Mar 13, 2025

Introduced

introduced by Representative Rep. Bill Schuette

lower

1 primary · 13 co-sponsors