MI SB0783

Publicly traded companies receiving Michigan economic incentives would be prohibited from conducting stock buybacks during the entire period they receive benefits or are subject to the incentive agreement.

The Michigan Strategic Fund would be required to include explicit stock buyback prohibition provisions in all written agreements with publicly traded entities receiving economic incentives.

Companies violating the stock buyback prohibition would face mandatory agreement termination, full repayment of all incentives received, plus a 10% penalty on the total incentive amount.

Economic incentives covered include grants, loans, tax captures, abatements, and other economic assistance administered by the Michigan Strategic Fund or MEDC.

Stock buyback is defined as acquiring a company's own issued shares through purchase, exchange, or other means resulting in shares being retired, canceled, or held as treasury shares.