State management: purchasing; awarding contracts to entities that donate or contribute to certain political candidates or committees; prohibit. Amends 1984 PA 431 (MCL 18.1101 - 18.1594) by adding sec. 264b.

This bill prohibits state agencies from awarding contracts to companies whose principals have donated to specific political groups within 18 months before signing the agreement. The law defines "principals" to include company owners, executives, board members, and employees involved in government relations, while banning donations to candidate committees, party committees, and certain tax-exempt political organizations. To enforce this rule, contractors must sign an affidavit confirming no prohibited donations were made during the 18 months prior to the contract, throughout the contract term, and for 18 months after it ends. Violations would render the contract void and bar the company from future state contracts for three years, though the ban does not apply to small businesses with less than $250,000 in state contracts or to grants and loans.