Michigan House Bill HB5288

Michigan 2025-2026 Regular Session

• Introduced: 11/13/25
• Refer: 11/13/25
• Report Pass: 1/22/26
• Engrossed: 2/4/26
• Refer: 2/11/26

Caption

Economic development: Michigan strategic fund; compliance with the Uyghur forced labor prevention act; provide for. Amends sec. 4 of 1984 PA 270 (MCL 125.2004) & adds sec. 7c.

Impact

The amendment strengthens the state's dedication to ethical economic development by ensuring that state-funded projects do not support entities linked to human rights abuses, particularly involving forced labor. Furthermore, the legislation requires all existing written agreements with recipients of state funds to be amended to comply with this new requirement. This means that recipients would be compelled to disclose their compliance status concerning forced labor, thus enhancing transparency in state-funded projects that have the potential to intersect with international human rights laws.

Summary

House Bill 5288 aims to amend the Michigan Strategic Fund Act by adding provisions to comply with the Uyghur Forced Labor Prevention Act (UFLPA). The bill outlines that the Michigan strategic fund cannot provide financial assistance, including grants or loans, to any individuals or entities listed on the UFLPA entity list. This move is intended to ensure that Michigan's financial resources are not supporting organizations associated with forced labor practices, specifically those outlined in the federal UFLPA. In addition, existing agreements with the fund must include clauses that terminate funding agreements should the recipient be added to the UFLPA entity list.

Sentiment

The sentiment around HB 5288 appears to be largely supportive, especially among legislators and advocacy groups focused on human rights. Proponents highlight the importance of ethical governance and corporate responsibility, asserting that Michigan should lead by example in ensuring that state funds do not benefit from practices deemed exploitative. However, there may be concerns from some stakeholders about the implementation of these provisions, particularly regarding the broader implications for businesses that may unintentionally find themselves on the UFLPA entity list. Overall, there is an emphasis on accountability and ethical compliance in economic development initiatives.

Contention

Notable contention may arise from the potential financial consequences for businesses associated with entities placed on the UFLPA list. Critics could argue that such provisions might limit access to state funds for legitimate businesses that may have challenges with supply chain transparency. The bill aims to balance ethical development with the practical aspect of ensuring economic growth for local enterprises, which may lead to debates on how effectively these regulations can be implemented without discouraging business investment in Michigan.