The bill amends the Nonprofit Corporation Act of 1982 by introducing significant changes, particularly through the addition of a new section, 261a, which prohibits both domestic and foreign corporations from using their resources to support or oppose political candidates, parties, or ballot questions. Any actions taken in violation of this provision would be deemed invalid and subject to disgorgement. The bill also outlines consequences for violations, including potential dissolution for domestic corporations and revocation of authority for foreign corporations. Additionally, it empowers the attorney general to take action against corporations engaging in prohibited political activities or other unlawful conduct.

Further amendments clarify the powers and limitations of corporations, including their ability to conduct affairs in various jurisdictions and the conditions for dissolution or revocation of authority. The bill emphasizes compliance with filing obligations, stating that a corporation will be in violation if it performs acts described in section 261a(2). Importantly, the bill will only take effect if certain other bills from the 103rd Legislature are enacted, indicating a coordinated effort to update corporate regulations comprehensively. This approach aims to enhance the regulatory framework governing nonprofit corporations in Michigan, particularly regarding their involvement in political activities.

Statutes affected:
House Introduced Bill: 450.2261