Bills to Prevent State Funding of Forced Labor Would Set National Precedent
Lansing, MI — Bills introduced in the Michigan House and Senate today would set a national precedent on state-level funding of companies connected to forced labor in the global supply chain. HB 5959, sponsored by Bryan Posthumus (R-Cannon Township) and an identical Senate bill, SB 1015, sponsored by Joe Bellino (R-Monroe), would prevent the state from entering economic development deals with companies that appear on the Uyghur Forced Labor Prevention Act (UFLPA) Entity List.
That list, which was established in 2021 when congress passed the UFLPA with broad bipartisan support, is maintained by a task force that includes the Departments of Homeland Security, State, Labor, Trade, Treasury, Justice, and Commerce. Companies added to the list face a rebuttable presumption that their goods are produced with forced labor and may not be imported in to the United States. The UFLPA and the entity list are part of a broader effort by the U.S. to combat human trafficking and labor exploitation associated with the ongoing genocide of the ethnic Uyghur minority in China.
In addition to preventing the state from entering into tax incentive or subsidy contracts with companies who appear on the list, HB 5959 and SB 1015 would require all new economic development deals to include a clawback provision, requiring any company added to the list after the execution of their contract to repay 100% of any payments they’ve received from the state of Michigan plus a 10% penalty. The bills would also require all existing economic development contracts to be amended to include that same clawback provision.
“Taxpayers should never pay for the exploitation or forced labor of other citizens, here or abroad,” said Diana Rademacher, Co-Founder of the Free Human Project, “As we learn more and more about the abuses of human potential around the world, it is becoming clear that untangling supply chains to end modern slavery will require every level of government intervention as well as private, corporate cooperation. Congress gave states a tremendous tool in this fight when they initiated the UFLPA Entity List. Michigan now has an opportunity to set tremendous ethical precedent by ensuring no company who appears on that list receives even a dime of Michiganders’ hard-earned tax dollars in any form.”
“This legislation is about upholding our collective responsibility to humanity,” said Jared Rodriguez, Co-Founder of the Free Human Project, “It is wrong to perpetuate the actions of any business or corporation that is found to have directly or indirectly benefitted from forced labor, human trafficking, or any form of involuntary servitude in its supply chain or operations.”
The Free Human Project is the only non-profit built to leverage the power of profitability to fight the big money, high-stakes world of human trafficking and forced labor with real financial impact and strong principles. A world free of exploitation is possible. You can help.