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ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
AMENDED
Uyghurs; forced labor; contracts; prohibition
Purpose
Prohibits a public entity from entering into or renewing a contract with a company unless the contract includes written certification that the company does not use the forced labor, or any goods or services produced by the forced labor, of ethnic Uyghurs in the People's Republic of China.
Background
Statute prohibits a public entity from entering into a contract with a value of $100,000 or more with a company to acquire or dispose of services, supplies, information technology or construction unless the contract includes a written certification that the company is not currently engaged in, and agrees for the duration of the contract to not engage in, a boycott of goods or services from Israel. A public entity may not adopt a procurement, investment or other policy that has the effect of inducing or requiring a person or company to boycott Israel (A.R.S. § 35-393.01).
The federal Uyghur
Forced Labor Prevention Act prohibits all goods, wares, articles and
merchandise mined, produced or manufactured wholly or in part in the Xinjiang
Uyghur Autonomous Region of China, or by persons working with the Xinjiang
Uyghur Autonomous Region government from entering any of the ports of the
United States (P.L. 117-78,
117th Congress, 2021).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits a public entity from entering into or renewing a contract with a company to acquire or dispose of services, supplies, information technology, goods or construction unless the contract includes written certification that the company does not currently, and agrees for the duration of the contract that it will not, use:
a) the forced labor of ethnic Uyghurs in the People's Republic of China;
b) any goods or services produced by the forced labor of ethnic Uyghurs in the People's Republic of China; and
c) any contractors, subcontractors or suppliers that used the forced labor or any goods or services produced by the forced labor of ethnic Uyghurs in the People's Republic of China.
2. Requires a company to notify the public entity within five business days after becoming aware of noncompliance with the requirement for written certification relating to the forced labor of ethnic Uyghurs.
3. Terminates a contract if the company does not provide the public entity with a written certification that the company has remedied the noncompliance within 180 days.
4. Specifies that a contract terminates on the contract termination date if the contract termination date occurs before the end of the remedy period.
5. Specifies that the requirement for written certification relating to the forced labor of ethnic Uyghurs does not apply to a contract entered into before the effective date.
6. Defines company and public entity.
7. Becomes effective on the general effective date.
Amendments Adopted by Committee of the Whole
2. Requires a company to notify the public entity within five business days after becoming aware of noncompliance with the requirement for written certification relating to the forced labor of ethnic Uyghurs.
3. Terminates a contract if the company does not provide the public entity with a written certification that the company has remedied the noncompliance within 180 days.
4. Specifies that a contract terminates on the contract termination date if the contract termination date occurs before the end of the remedy period.
5. Specifies that the requirement for written certification relating to the forced labor of ethnic Uyghurs does not apply to a contract entered into before the effective date.
House Action Senate Action
GE 2/2/22 DP 12-0-0-1 COM 3/2/22 DP 8-1-0
3rd Read 2/10/22 56-0-4
Prepared by Senate Research
May 31, 2022
JT/sr