The proposed bill aims to regulate the interactions between state institutions of higher education and foreign actors, particularly those from designated "foreign countries of concern," which include nations such as China, Russia, and Iran. It prohibits these institutions from entering into agreements or accepting grants that could compromise their autonomy or promote agendas harmful to U.S. safety and security. Additionally, the bill mandates that any gifts received from foreign sources must be accompanied by a formal gift agreement detailing the purpose, conditions, and any potential influence on curricula or admissions.

To ensure compliance, the bill establishes reporting requirements for gifts valued at $50,000 or more, necessitating biannual reports to governing boards. It also allows for inspections of gift agreements and disclosures by the governing boards upon request from state leaders. The Attorney General is empowered to enforce the act, with provisions for civil penalties for non-compliance, including fines based on the value of undisclosed gifts. The bill also repeals certain existing laws related to this matter, indicating a significant shift in how foreign influence is managed within Michigan's higher education system.