MI HB5976

State agencies and departments are prohibited from entering into contracts with principals who donated or contributed to candidate committees, party committees, 527 committees, or candidate/contractor-affiliated 501(c)(4) committees within 18 months before contract signing, effective 18 months after enactment.

Contractors must attest that principals have not made and will not make covered donations or contributions during three periods: 18 months before contract signing, during the contract term, and 18 months after contract termination.

Violations result in contract voidability and a 3-year debarment from state contracts, unless donations are returned by the contract proposal date or within 30 days of receipt by the committee treasurer.

Exemptions apply to loans, grants allocated through state budget process, collective bargaining agreements, public university agreements, intergovernmental agreements, and contractors with less than $250,000 in aggregate state contracts.

Defines "principals" broadly to include contractors, executives, board members with 5%+ ownership, officers, employees with government affairs responsibilities, spouses, dependent children, subsidiaries, and persons acting on their behalf.