Proposal 1 on the Nov. 3 ballot asks voters whether Michigan should rewrite its constitution. Under Article XII, Section 3 of the Michigan Constitution, this question must appear on the ballot every 16 years. If it’s approved, it would open the 1963 Michigan Constitution to general revision in 2027. The last three times it was on the ballot, voters rejected it, but support has increased from 23 percent in 1978 to 33 percent in 2010. Approval would trigger the election of 148 delegates, one from each state House district and one from each state Senate district, followed by a convention with authority to consider a general revision of the constitution. The convention could impact virtually every major area of state government. Whatever the outcome, those changes would return to Michigan voters for approval.

While most of the public discussion surrounding Proposal 2 has focused on the state’s major electric utilities and how much they spend on state politics, there is more to be considered by businesses, associations and other organizations trying to understand how the proposal might affect them. Proposal 2 would prohibit regulated electric and gas utilities, government contractors receiving more than $250,000 annually in government contracts, and people and organizations with “substantial connections” to those entities from making direct or indirect campaign contributions to candidates for, or holders of, offices that affect them. It would also change Michigan campaign finance law by expanding the rules governing certain political communications and expressly extending disclosure requirements to internet political communications.

Last week, the House approved legislation strengthening Michigan's dam-safety system after House and Senate negotiators reached an agreement. This indicates legislation with a defined problem, significant work already completed, and enough bipartisan support can still find a path through a divided Legislature. One of the more unusual disputes of bipartisan legislation returned in September. The Democratic-led Senate passed new versions of nine bills that originally cleared both chambers at the end of the 2023-24 Legislature, but were never presented to Gov. Gretchen Whitmer by the new Republican House leadership. Following a court fight, Whitmer received and vetoed the original bills in July. The new legislation includes the State Police retirement system, public-employer health benefit contributions, garnishment protections and authorization for local millages supporting Detroit-area cultural institutions.

Data centers are becoming a larger legislative issue that will likely follow lawmakers into next term. Michigan has spent the last several years trying to attract large-scale data center investment, including through tax incentives, but proposed projects have raised questions about electricity demand, utility costs, water use, local control and the economic value for communities. This summer, Whitmer added to that debate with an “Affordable and Responsible Growth Action Plan” seeking data centers pay the costs associated with their development, protect natural resources and provide good-paying jobs. Legislation addressing labor requirements for certain data center projects was introduced. Other lawmakers proposed reconsidering the tax treatment that helped attract the industry. House legislation, introduced Oct. 1, would create a “Data Center Local Decision Protection Act” and make changes to Michigan zoning law. 

With the election approaching, there is much less incentive to take up difficult votes, but that changes after Nov. 3. Now is the time to establish a position on issues that could impact your organization. Find out exactly where those bills are procedurally and what remains unresolved. If it has not moved, determine if it will likely be decided before the end of the year or whether it would be best reintroduced in 2027. If an issue could affect your organization, but has not yet become a priority, it is still a good time to establish a position to avoid finding out a bill you have not been following suddenly has the votes to move in December.

For more details on these issues, click here for the October 2026 Karoub Report.