MI HB5823

Requires Michigan public employee retirement system fiduciaries to identify companies within 90 days that boycott persons based in or doing business with jurisdictions with which the state can enjoy open trade (World Trade Organization members and free trade agreement partners).

Obligates fiduciaries to send written notice to newly identified companies within 60 days, offering them 90 days to cease boycott activities or convert operations to inactive status.

Mandates divestment from companies that continue boycotts after the 90-day engagement period: at least 50% of assets must be removed within 9 months and 100% within 15 months of the company's appearance on the scrutinized companies list.

Exempts indirect holdings in actively managed investment funds (including private equity and publicly traded funds) from divestment requirements and requires due diligence before investing in new funds that specifically target scrutinized companies.

Requires fiduciaries to create and update a scrutinized companies list quarterly, provide it to the legislature and other retirement systems, and report annually on engagement efforts, divestitures, and progress on fund replacement initiatives.