Testimony in Support of House Bill 5288

Summary

Written testimony in support of House Bill 5288 before the Michigan House of Representatives Economic Competitiveness Committee, given by a co-founder of the Free Human Project, a national nonprofit organization focused on forced labor in supply chains. The testimony states that the bill would bar the state from new or amended economic development agreements with companies on the UFLPA Entity List, require clawback provisions so that a company later added to the list repays 100 percent of incentives plus a penalty, and apply these protections to existing contracts. It argues that the bill aligns state economic development policy with existing federal law. An attached one-page fact sheet on HB 5288 and SB 715 describes the UFLPA and states the clawback penalty as 10%.

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a IR E E Testimony in Support of House Bill 5288

ee U Vi A N Michigan House of Representatives
Economic Competitiveness Committee
> ROJ ECT Thursday, January 22 | 10:30 a.m.

Jared Rodriguez, Co-Founder
Free Human Project

Good morning, Mr. Chair and members of the committee.

My name is Jared Rodriguez, and! am co-founder of the Free Human
Project, a national nonprofit organization. FHP's goals are to expose,
disrupt, and eliminate forced labor from global supply chains while
protecting ethical businesses, workers, and taxpayers.

Thank you for the opportunity to testify today in strong support of House
Bill 5288.

ible. You can help.

The Free Human Project was created in response to a growing and
uncomfortable reality: forced labor is not a foreign or abstract problem.
It's embedded in global supply chains that touch American consumers,
American businesses, and state economic development programs
funded by taxpayers.

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Globally, forced labor generates more than $236 billion annually,
enriching traffickers, corporations, and governments that exploit human
beings for profit. Millions of people, particularly ethnic and religious
minorities, are subjected to state-imposed forced labor through
coercion, surveillance, and economic punishment. One of the most well-
documented examples is the forced labor of the Uyghurs (“wee-gr”), a
mostly Muslim ethnic minority group in central Asia, whose exploitation
has been recognized by the United States Congress and addressed
through the Uyghur Forced Labor Prevention Act, or UFLPA.

Because forced labor is intentionally hidden deep inside supply chains,
governments must be proactive, not reactive. That is exactly what
House Bill 5288 does.

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HB 5288 ensures that Michigan taxpayer dollars are not used to
subsidize or reward companies connected to forced labor by tying the
state's economic development programs to clear, objective federal
enforcement standards. Specifically, this bill:

° Prohibits the State of Michigan from entering into new or
amended economic development agreements with companies
that appear on the UFLPA Entity List, a list maintained by a
federal task force chaired by the U.S. Department of Homeland
Security;

° Requires clawback provisions in state economic development
contracts so that ifa company is later added to the UFLPA Entity
List, it must repay 100 percent of any incentives or subsidies
received, plus a penalty; and

* Applies these protections not only to future agreements, but to
existing contracts, ensuring Michigan is not exposed to ongoing
risk.

From aneconomic competitiveness standpoint, this matters.

Forced labor functions like an illegal subsidy. It allows bad actors to
artificially lower costs, undercut ethical Michigan companies, and distort
fair competition. When responsible businesses lose contracts to
companies that rely on exploitation, Michigan’s economy suffers, and
taxpayers unknowingly absorb the risk.

HB 5288 does not create new federal standards, nor does it ask
businesses to navigate unclear rules. Instead, it aligns Michigan's
economic development policies with existing federal law, providing
Clarity, certainty, and protection for companies that are operating in
good faith.

The Free Human Project works with businesses, investigators, and
policymakers to help identify forced-labor risk before it becomes a
liability. Our goal is not punishment, it’s prevention. This bill reflects that
same philosophy. It encourages compliance, protects ethical
employers, and ensures Michigan's incentives reward innovation and
integrity, not exploitation.

In closing, House Bill 5288 is both morally right and economically smart.
lt safeguards public dollars, strengthens fair competition, and sends a
clear message that Michigan's economic success will never be built on
human suffering.

Thank you for your time and consideration. | respectfully urge your
support of House Bill 5288.

freehumanproject.org | info@freehumanproject.org
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PROJECT

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A world free of exploitat

Uyghur (“wee-gr’)

Amostly Muslim
ethnic minority group
incentral Asia.

Uyghur Forced
Labor Prevention
Act (UFLPA)

A federal law passed
in 2021 to helo
prevent goods made
y forced labor from
entering the
American market.

UFLPA Entity List

One method of
UFLPA enforcement.
Maintained by a task
force chaired by the
Dept. of Homeland
Security, entities
added to the list face
arebuttable
oresumption that
they use forced labor
and may not pe
goods to the Us.

MICHIGAN
HB 5288
SB715

Forced labor generates $236 billion per year for
traffickers, businesses and governments who exploit their
fellow humans for financial gain, including nearly 4 million
oeople who toil in state-imposed forced labor around the
world each day.

Ethnic minority groups in countries without strong
human rights protections are particularly at risk of
state-imposed forced labor abuse.

Uyghurs are one group who are suffering under
conditions of state-imposed forced labor today,
including coerced relocation for factory work, long
hours for little or no pay, close government
surveillance and control, ideologic indoctrination,
and isolation from family and friends.

Because forced labor can easily be hidden deep inside
supply chains, it is critical for governments at every level
to actively monitor known abuses and take steps to
eradicate modern slavery.

HB 5288 and SB 715 will help prevent Michiganders’

tax dollars from subsidizing, incentivizing, or

otherwise benefitting companies whose practices

contribute to the modern enslavement of Uyghurs
y:

¢ Prohibiting the state from entering into economic
development deals with companies that appear
onthe UFLPA Entity List;

e Requiring that all new or amended economic
development contracts the state executes include
aclawback provision that requires companies to
pay back 100% of any subsidies or incentives
they've received plus a 10% penalty if they are
added to the UFLPA Entity List at any point; and

¢ Requiring that the same provision be amended
into every currently existing economic
development deal

freehumanproject.org | info@freehumanproject.org


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