Assigned to COM                                                                                                AS PASSED BY COMMITTEE

 


 

 

 


ARIZONA STATE SENATE

Fifty-Fifth Legislature, Second Regular Session

 

AMENDED

FACT SHEET FOR h.b. 2657

 

forced labor; manufactured goods

Purpose

Requires an officer or agent of a business entity to annually sign and file an attestation under penalty of perjury with the Attorney General (AG) that the business entity has measures in place to ensure compliance with forced labor laws.

Background

Statute outlines requirements for employment practices and working conditions relating to hours of employment, payment of wages, youth employment, earned paid sick time and safety conditions.

Additionally, the following acts are prohibited: 1) obtaining labor under false pretenses;
2) exacting a fee or gratuity as a condition of employment; and 3) knowingly compelling, or in any manner seeking to coerce, any employee or any person to purchase goods or supplies from any particular person (A.R.S. Title 23, Chapter 2).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.   Requires an officer or an agent of a business entity to annually sign and file, between January 1 and January 31 of each year, an attestation under the penalty of perjury with the AG that the business entity has measures in place to ensure compliance with state and federal law regarding the prohibition of forced labor or the use of forced labor.

2.   Prohibits the filing period for the attestation from being extended for more than 30 days.

3.   Applies the attestation requirement to a business entity that sells products online or at a physical location and that has annual gross receipts of at least $25,000,000.

4.   Specifies that, if the attestation is filed in compliance with outlined requirements, the business entity is presumed to be in full compliance.

5.   Stipulates that the exclusive remedy for a violation of the attestation requirement is an action brought by the AG for injunctive relief.

6.   Becomes effective on the general effective date.

Amendments Adopted by Committee

1.   Eliminates the prohibition on a business entity or the business entity's third-party vendor selling goods in Arizona or to Arizona citizens if the goods were manufactured using forced or slave labor.

2.   Requires the officer or agent of a business entity to annually sign and file an attestation under penalty of perjury that the business entity has measures in place to ensure compliance with state and federal law regarding the prohibition of forced labor or the use of forced labor, rather than requiring an attestation by a corporate officer or agent of the corporate officer that goods that will be sold are not the result of forced or slave labor.

3.   Eliminates the attestation requirement for:

a)   the business entity's third-party vendors; and

b)   a business entity that imports products or parts of products from other countries or enters into labor contracts or employ persons outside the United States.

4.   Specifies that the attestation requirement applies to a business entity that has annual gross receipts of at least $25,000,000.

5.   Specifies that, if the attestation is filed in compliance with outlined requirements, the business entity is presumed to be in full compliance.

6.   Stipulates that the exclusive remedy for a violation of the attestation requirement is an action brought by the AG for injunctive relief.

House Action                                                           Senate Action

COM               2/15/22      DPA     8-2-0-0              COM               3/23/22      DPA    5-3-1

3rd Read          2/24/22                    36-23-1

Prepared by Senate Research

March 31, 2022

JT/sr