Assigned
to GOV AS
PASSED BY COW
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
AMENDED
procurement; electric vehicles; forced labor
Purpose
Prohibits a governmental entity from entering into a contract for the procurement of electric vehicles (EVs) unless the manufacturer provides a sworn certification that no entity involved in the production of the EVs used forced labor or oppressive child labor and consents to personal jurisdiction in Arizona.
Background
Current statute prohibits the state, a political subdivision of the state or an agency, board, commission or department (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 and 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 and 35-393.01).
Current statute also 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 a written certification that the company does not currently, and agrees for the duration of the contract that it will not, use: 1) the forced labor of ethnic Uyghurs in the People's Republic of China; 2) any goods or services produced by the forced labor of ethnic Uyghurs in the People's Republic of China; or 3) any contractors, subcontractors or suppliers that use the forced labor or any goods or services produced by the forced labor of ethnic Uyghurs in the People's Republic of China (A.R.S. § 35-394).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits a governmental entity from entering into a contract for the procurement of EVs or any component of an EV unless the manufacturer provides a sworn certification to the governmental entity that meets both of the following:
a) certifies that no entity that manufactures or assembles EVs or any component of an EV for procurement, including the production of any parts or the mining or other sourcing of any materials, knowingly used forced labor or oppressive child labor; and
b) consents to personal jurisdiction in Arizona.
2. Subjects, if the manufacturer provides false or misleading information in the sworn certification, the manufacturer to the greater of the following civil penalties:
a) $10,000 per false or misleading statement; or
b) one-half of the total price paid by the governmental entity for the EVs or components.
3. Subjects an employee of the manufacturer who knowingly violates the sworn certification requirement to the greater of the following civil penalties:
a) $10,000 per false or misleading statement; or
b) the total price paid by the governmental entity for the vehicles or components.
4. Defines electric vehicle as a motor vehicle that is propelled by an electric motor that draws electricity from a battery capable of being recharged from an external source of electricity.
5. Defines forced labor as all work or services that are any of the following:
a) obtained by force, fraud or coercion, including by threat of serious harm to or physical restraint against any person;
b) obtained by any scheme, plan or pattern intended to cause the person to believe that if the person did not perform the labor or services, the person or another person would suffer serious harm or physical restraint;
c) obtained by the abuse or threatened abuse of the law or the legal process;
d) imposed on the basis of a protected characteristic;
e) not offered or provided voluntarily by the worker; or
f) produced through the use of oppressive child labor.
6. Defines governmental entity as a city, town, county or political subdivision of the state or a department, agency, board, commission, authority, school district, charter school, university under the jurisdiction of the Arizona Board of Regents or community college district or any other enterprise operated by the state or any political subdivision of the state.
7. Defines oppressive child labor as a condition of employment where a person under 14 years of age is employed in an occupation hazardous to children, such as manufacturing or mining.
8. Defines protected characteristic as any characteristics protected under the civil rights laws of the state.
9. Contains a statement of legislative findings.
10. Applies the sworn certification requirement to all EV procurement contracts entered into, amended or renewed after the effective date.
11. Makes conforming changes.
12. Become effective on the general effective date.
Amendments Adopted by Committee
1. Removes motor vehicle dealers from being subject to the sworn certification requirement.
2. Makes conforming changes.
Amendments Adopted by Committee of the Whole
· Specifies that an EV manufacturer must certify that no entity that manufactures or assembles EVs or any component of an EV for procurement, including the production of any parts or the mining or other sourcing of any materials, knowingly used forced labor or oppressive child labor.
Senate Action
GOV 2/14/24 DPA 4-2-2
Prepared by Senate Research
February 26, 2024
JT/MA/slp