Michigan House Bill HB5322

Michigan 2023-2024 Regular Session

• Introduced: 11/9/23
• Refer: 11/9/23

Caption

State management: purchasing; funding for any project using forced labor; prohibit. Amends 1984 PA 270 (MCL 125.2001 - 125.2094) by adding sec. 7c.

Impact

In enforcing these provisions, the bill is expected to strengthen state laws regarding labor practices and ethical sourcing. It places a clear emphasis on preventing projects that exploit labor, thereby promoting a more socially responsible approach to economic development in Michigan. The amendments could impact various sectors that rely on state funding, requiring them to provide verifiable certifications on their labor practices.

Summary

House Bill 5322 introduces significant amendments to the Michigan Strategic Fund Act. The bill stipulates that no grants, loans, or economic assistance shall be provided to any individual or organization unless they certify that they will not utilize forced labor in any related projects. This legislation aims to ensure ethical practices in funding and aims to hold parties accountable for any violations concerning forced labor, including the return of any funds received.

Contention

While the bill is positioned as a protective measure against forced labor, there are potential contentions regarding the enforcement and verification of compliance. Questions may arise around the adequacy of the verification mechanisms and the real-world implications for businesses and projects that fail to meet the certification requirements. It is essential to consider how this may affect smaller enterprises that might struggle to provide such guarantees, potentially limiting their access to necessary state funding.