The bill aims to amend existing laws regarding the procurement of electric vehicles (EVs) by governmental entities in Arkansas, specifically prohibiting the purchase of any EV or its components that have been manufactured, in whole or in part, using forced labor. The legislation highlights the serious concerns surrounding forced labor practices, particularly in the production of materials for electric vehicles, such as those sourced from the Xinjiang Uyghur Autonomous Region in China and the Democratic Republic of the Congo. The bill includes legislative findings that emphasize the importance of ensuring taxpayer dollars are not used to support products associated with human rights violations.
To enforce this prohibition, the bill requires manufacturers to provide a sworn certification confirming that no forced labor was involved in the production of the EV or its components. It establishes penalties for manufacturers or sellers who provide false information, including civil penalties of up to $10,000 for each misleading statement or half of the total price paid by the governmental entity. Additionally, governmental entities and their employees can also face penalties for knowingly violating these provisions. The bill applies to all procurement contracts for electric vehicles or components entered into, amended, or renewed after the effective date of the act.