Economic development: other; divestment from terror act; amend to reflect elimination of the Michigan strategic fund. Amends sec. 2 of 2008 PA 234 (MCL 129.292). TIE BAR WITH: SB 0631'25

SB 678 amends Michigan's "Divestment from Terror Act" to require state retirement funds and other designated state fiduciaries (like the Michigan Strategic Fund) to divest from companies classified as "scrutinized" due to significant business ties with countries designated as "state sponsors of terror" by the U.S. government. A company is scrutinized if over 10% of its revenue comes from such countries, or if it makes large investments (≥$20 million annually) that significantly support terror-sponsoring nations without taking "substantial action" to stop. The bill defines "substantial action" as adopting a formal plan to end such business within one year. This affects state investment funds managing billions in assets, requiring them to sell holdings in qualifying companies. The bill is contingent on Senate Bill 631 being enacted.