The proposed bill, known as the "Michigan Data Collection Act," mandates that public bodies in Michigan utilize specific criteria when collecting race and ethnicity data. It defines various racial and ethnic categories, including "American Indian or Alaska Native," "Asian," "Black or African American," "Hispanic or Latino," "Middle Eastern or North African," "Native Hawaiian or Pacific Islander," and "White," along with their respective subcategories. The bill requires that any writing requesting individuals to designate their race or ethnicity must include a combined question format, a minimum set of categories, and a write-in option for additional subcategories. Public bodies are given a timeline of three years to comply with these requirements and must also create an action plan detailing their compliance efforts and potential risks associated with data collection.

Additionally, the bill stipulates that the race and ethnicity data collected will be exempt from disclosure under the Freedom of Information Act. It also requires public bodies to update their data collection methods based on the most populous subcategories identified in the federal decennial census, starting from January 1, 2032. The act aims to standardize the collection of race and ethnicity data across various governmental entities to improve data accuracy and representation.