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Committee reports bill that would bar some state contracts and require disclosure of agreements with foreign entities

3039509 · April 17, 2025
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Summary

Representative Schuette presented House Bill 42‑40, which would prohibit certain state agencies from contracting with foreign entities of concern and require public bodies to disclose gifts and agreements with those entities; the committee reported the bill with recommendation.

Representative Schuette told the House Rules Committee that House Bill 42‑40 would prohibit state agencies from entering certain contracts with foreign entities of concern and would require disclosure of gifts and agreements public bodies make with such foreign entities. "It is reasonable to ask our government institutions to similarly act in our national interest," Schuette said, citing his background as a former Department of Defense intelligence officer.

Schuette described concerns about foreign influence and said the bill would place disclosure requirements on public bodies and task DTMB with associated rulemaking. He said recent cases — including alleged attempts by blacklisted companies to establish footholds in Michigan — show the need for additional transparency in agreements with identified foreign actors.

Representative Aragona moved to report House Bill 42‑40 with recommendation. The clerk recorded the motion as prevailing with 6 yays, 0 nays and 2 passes. The committee reported HB 42‑40 to the next stage.