The proposed bill seeks to amend the Michigan Strategic Fund Act by adding a new section, 7c, which establishes restrictions on economic incentives provided by the fund. Specifically, the fund is prohibited from entering into agreements for economic incentives with foreign entities. Before any economic incentive is granted, the recipient or applicant must submit an affidavit, under penalty of perjury, confirming that they are not a foreign entity. Additionally, any person or government entity that receives or distributes an economic incentive must ensure that it is not knowingly provided to a foreign entity and must also require the recipient to submit the aforementioned affidavit.

The bill further defines key terms such as "foreign entity," which includes entities owned or controlled by governments of specified foreign countries of concern, and outlines the responsibilities of the fund in administering these requirements. The fund is tasked with promulgating rules to implement this section under the administrative procedures act. The countries identified as foreign countries of concern include China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria, among others. This legislation aims to safeguard Michigan's economic interests by preventing the distribution of state resources to entities that may pose a risk to national security.

Statutes affected:
House Introduced Bill: 125.2001, 125.2094
As Passed by the House: 125.2001, 125.2094