MI HB5975

Prohibits principals of state contractors and prospective contractors from making donations or contributions to candidate committees, political party committees, 527 committees, and candidate/contractor-affiliated 501(c)(4) committees, effective 18 months after enactment.

Prohibits principals of local government contractors and prospective contractors from making donations or contributions to candidate committees within their contracting jurisdiction, state/local political party committees, noncandidate 527 committees, and candidate/contractor-affiliated 501(c)(4) committees, effective 18 months after enactment.

Applies restrictions for 18 months before a contractor seeking a government contract through 18 months after contract termination; contractors seeking but not entering contracts face restrictions for only the 18-month pre-bid period.

Establishes penalties of contract cancellation, disqualification from future contracts for 3 years, or both; violations are voided if improper contributions are returned by proposal date or within 30 days of receipt by committee treasurer.

Applies to contractors and prospective contractors receiving aggregate contract awards of $250,000 or more and defines "principal" broadly to include executives, board members, 5%+ owners, employees with discretionary responsibilities, spouses, dependents, and lobbying firms with contractor relationships.