Economic development: other; eligibility for stock buybacks during the period of award if awarded an economic incentive; prohibit. Amends 1984 PA 270 (MCL 125.2001 - 125.2094) by adding sec. 7c.
Key claim: Michigan companies awarded economic incentives under 1984 PA 270 would be prohibited from conducting stock buybacks for the duration of the award.
Abstract
(SB0783 · 103rd Legislature) Economic development: other; eligibility for stock buybacks during the period of award if awarded an economic incentive; prohibit. Amends 1984 PA 270 (MCL 125.2001 - 125.2094) by adding sec. 7c. Sponsor: Sen. Mallory McMorrow (D) + 1 co-sponsor Latest vote: Reported Favorably Without Amendment 5/21/2026 — 6-1 (passed, 2026-05-27) Latest action (2026-05-27): Referred To Committee Of The Whole
Why this matters
Stock buyback restrictions tied to state incentive awards would introduce a new accountability condition for Michigan companies receiving public economic development support, potentially affecting how large publicly traded recipients allocate capital during award periods. The proposal reflects a broader policy debate over whether taxpayer-funded incentives should limit shareholder distributions in favor of reinvestment. If enacted, it would materially change the terms under which the Michigan Strategic Fund and related programs negotiate awards.