Michigan House Bill HB4237

Michigan 2025-2026 Regular Session

• Introduced: 3/13/25
• Refer: 3/13/25

Caption

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

Impact

The legislation will modify the existing procurement process for local governments, mandating that any contract providing access to personal identifying information must be accompanied by an affidavit verifying the contractor is not a controlled entity. It sets specific regulations that apply to various types of contracts, including those for construction, supplies, services, and information technology. This is aimed at ensuring the protection of personal data and local government integrity against foreign overreach.

Summary

House Bill 4237, known as the Local Government Contracting Act, seeks to restrict local governments in Michigan from entering into procurement contracts with certain foreign entities considered a national security risk. The bill establishes criteria under which a 'controlled entity,' defined as one that is owned or significantly controlled by a foreign country of concern, cannot be awarded contracts. This includes any organization linked to nations such as China, Iran, or Russia, among others. The intent of the bill is to safeguard local resources and information by preventing foreign exploitation.

Contention

Notable points of contention surrounding HB 4237 may arise regarding its implications for local governance and its interaction with existing laws. Critics might argue that the bill could unnecessarily complicate local governance processes and impede local authorities' ability to make autonomous decisions regarding their procurement practices. Proponents counter that it addresses significant security concerns in a globally connected environment, ensuring sensitive information is not shared with potential adversaries.