The bill aims to amend existing laws regarding the procurement of electric vehicles (EVs) or their components by governmental entities in Arkansas. It prohibits these entities from purchasing any EV or component that has been manufactured, in whole or in part, using forced labor. The bill includes legislative findings that highlight the prevalence of forced labor in the production of electric vehicle components, particularly those sourced from the Xinjiang Uyghur Autonomous Region in China, as well as the use of child labor in mining cobalt for batteries. The bill emphasizes the importance of ensuring that taxpayer dollars are not used to fund such unethical practices.

To enforce this prohibition, the bill requires manufacturers to provide a sworn certification confirming that no forced labor was used in the production of the EV or its components. It also establishes civil penalties for manufacturers or sellers who provide false information, with fines set at either $10,000 for each misleading statement or half the total price paid by the governmental entity. Additionally, governmental entities and their employees can face penalties for knowingly violating these provisions. The bill applies to all procurement contracts for EVs or components entered into, amended, or renewed after its effective date.