| 6 | 4 | | 95th General Assembly A Bill 2 |
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| 7 | 5 | | Regular Session, 2025 HOUSE BILL 1683 3 |
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| 8 | 6 | | 4 |
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| 9 | 7 | | By: Representative McAlindon 5 |
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| 10 | 8 | | By: Senator C. Penzo 6 |
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| 11 | 9 | | 7 |
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| 12 | 10 | | For An Act To Be Entitled 8 |
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| 13 | 11 | | AN ACT TO AMEND THE LAW CONCERNING THE PURCHASE OF AN 9 |
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| 14 | 12 | | ELECTRIC VEHICLE OR A COMPONENT OF AN ELECTRIC 10 |
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| 15 | 13 | | VEHICLE BY A GOVERNMENTAL ENTITY; TO PROHIBIT THE 11 |
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| 16 | 14 | | PROCUREMENT BY A GOVERNMENTAL ENTITY OF AN ELECTRIC 12 |
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| 17 | 15 | | VEHICLE OR A COMPONENT OF AN ELECTRIC VEHICLE THAT 13 |
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| 18 | 16 | | WAS MANUFACTURED IN WHOLE OR IN PART USING FORCED 14 |
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| 19 | 17 | | LABOR; AND FOR OTHER PURPOSES. 15 |
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| 20 | 18 | | 16 |
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| 21 | 19 | | 17 |
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| 22 | 20 | | Subtitle 18 |
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| 23 | 21 | | TO PROHIBIT THE PROCUREMENT BY A 19 |
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| 24 | 22 | | GOVERNMENTAL ENTITY OF AN ELECTRIC 20 |
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| 25 | 23 | | VEHICLE OR A COMPONENT OF AN ELECTRIC 21 |
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| 26 | 24 | | VEHICLE THAT WAS MANUFACTURED IN WHOLE 22 |
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| 27 | 25 | | OR IN PART USING FORCED LABOR. 23 |
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| 28 | 26 | | 24 |
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| 29 | 27 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 25 |
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| 30 | 28 | | 26 |
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| 31 | 29 | | SECTION 1. DO NOT CODIFY. Legislative findings. 27 |
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| 32 | 30 | | The General Assembly finds that: 28 |
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| 33 | 31 | | (1) Many electric vehicles are being made with components 29 |
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| 34 | 32 | | created through the use of forced labor, including materials mined by Uyghur 30 |
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| 35 | 33 | | and other Muslim minorities in the People's Republic of China's Xinjiang 31 |
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| 36 | 34 | | Uyghur Autonomous Region; 32 |
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| 37 | 35 | | (2) Concerns about the use of forced labor to create these 33 |
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| 38 | 36 | | components and materials prompted the United States Government to pass the 34 |
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| 39 | 37 | | Uyghur Forced Labor Prevention Act, Pub. L. No. 117 -78, with overwhelming 35 |
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| 45 | 41 | | (3) Under the Uyghur Forced Labor Prevention Act, Pub. L. No. 1 |
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| 46 | 42 | | 117-78, there is a rebuttable presumption that any product manufactured in 2 |
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| 47 | 43 | | whole or in part in the Xinjiang Uyghur Autonomous Region was produced by 3 |
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| 48 | 44 | | forced labor; 4 |
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| 49 | 45 | | (4) The United States Government recently restricted the 5 |
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| 50 | 46 | | application of its newly created tax credits for electric vehicles so that 6 |
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| 51 | 47 | | "[b]eginning in 2024, an eligible clean vehicle may not contain any battery 7 |
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| 52 | 48 | | components that are manufactured by a foreign entity of concern, and 8 |
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| 53 | 49 | | beginning in 2025, an eligible clean vehicle may not contain any critical 9 |
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| 54 | 50 | | minerals that were extracted, processed, or recycled by a foreign entity of 10 |
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| 55 | 51 | | concern"; 11 |
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| 56 | 52 | | (5) The United States Government recently proposed a regulation 12 |
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| 57 | 53 | | for another act that any company subject to the People's Republic of China's 13 |
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| 58 | 54 | | jurisdiction will be defined as a "foreign entity of concern," which would 14 |
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| 59 | 55 | | prevent federal tax credits from supporting sales of electric vehicles made 15 |
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| 60 | 56 | | with battery components from entities of the People's Republic of China; 16 |
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| 61 | 57 | | (6) Many electric vehicles are also being made with components 17 |
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| 62 | 58 | | created through the use of oppressive child labor, most notably, through 18 |
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| 63 | 59 | | cobalt ore mined in dangerous conditions by thousands of young children in 19 |
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| 64 | 60 | | the Democratic Republic of the Congo and sent to the People's Republic of 20 |
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| 65 | 61 | | China for use in manufacturing lithium -ion batteries; 21 |
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| 66 | 62 | | (7) The United States Government recently concluded that 22 |
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| 67 | 63 | | "downstream products containing lithium -ion batteries may be produced with an 23 |
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| 68 | 64 | | input produced with child labor, such as electric cars"; 24 |
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| 69 | 65 | | (8) The use of forced labor is repugnant and deplorable, 25 |
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| 70 | 66 | | violates basic human rights, constitutes unacceptable discrimination, and 26 |
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| 71 | 67 | | damages free and fair competition; and 27 |
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| 72 | 68 | | (9) State governments should take steps to ensure that taxpayer 28 |
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| 73 | 69 | | dollars are not being used to pay for electric vehicles that may have been 29 |
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| 74 | 70 | | partially manufactured through forced labor. 30 |
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| 75 | 71 | | 31 |
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| 76 | 72 | | SECTION 2. Arkansas Code Title 25, Chapter 1, Subchapter 1, is amended 32 |
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| 77 | 73 | | to add an additional section to read as follows: 33 |
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| 78 | 74 | | 25-1-130. Purchase of electric vehicle. 34 |
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| 79 | 75 | | (a) As used in this section: 35 |
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| 85 | 79 | | to a significant extent by an electric motor that draws electricity from a 1 |
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| 86 | 80 | | battery that is capable of being recharged from an external source of 2 |
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| 87 | 81 | | electricity; 3 |
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| 88 | 82 | | (2) "Forced labor" means labor or service that is: 4 |
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| 89 | 83 | | (A) Obtained by force, fraud, or coercion, including by: 5 |
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| 90 | 84 | | (i) Threat of serious harm to or physical restraint 6 |
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| 91 | 85 | | against any person; 7 |
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| 92 | 86 | | (ii) Means of a scheme, plan, or pattern intended to 8 |
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| 93 | 87 | | cause the person to believe that if the person did not perform the labor or 9 |
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| 94 | 88 | | services, the person or another person would suffer serious harm or physical 10 |
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| 95 | 89 | | restraint; or 11 |
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| 96 | 90 | | (iii) Means of the abuse or threatened abuse of law 12 |
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| 97 | 91 | | or the legal process; 13 |
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| 98 | 92 | | (B) Imposed on the basis of a characteristic protected by 14 |
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| 99 | 93 | | the Arkansas Civil Rights Act of 1993, ยง 16 -123-101 et seq.; 15 |
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| 100 | 94 | | (C) Not offered or provided voluntarily by the worker; or 16 |
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| 101 | 95 | | (D) Produced through a condition of employment under which 17 |
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| 102 | 96 | | a person under the age of fourteen (14) years of age is employed in an 18 |
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| 103 | 97 | | occupation hazardous for the employment of children, including without 19 |
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| 104 | 98 | | limitation manufacturing or mining; and 20 |
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| 105 | 99 | | (3) "Governmental entity" means a: 21 |
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| 106 | 100 | | (A) State agency, including without limitation any 22 |
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| 107 | 101 | | department, agency, board, commission, office, and other authority of the 23 |
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| 108 | 102 | | state; 24 |
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| 109 | 103 | | (B) Political subdivision of the state, including without 25 |
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| 110 | 104 | | limitation a county, municipality, public school district, water district, 26 |
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| 111 | 105 | | and improvement district; and 27 |
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| 112 | 106 | | (C) College, university, authority, or other enterprise 28 |
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| 113 | 107 | | operated by the state or a political subdivision of the state. 29 |
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| 114 | 108 | | (b) A governmental entity shall not enter into a contract for the 30 |
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| 115 | 109 | | procurement of an electric vehicle or a component of an electric vehicle 31 |
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| 116 | 110 | | unless the manufacturer of the electric vehicle or component of an electric 32 |
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| 117 | | - | vehicle in good faith provides the governmental entity a sworn certification 33 |
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| 118 | | - | that certifies that no entity involved in the production of the electric 34 |
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| 119 | | - | vehicle or the component of an electric vehicle being sold, including the 35 |
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| 120 | | - | production of a constituent part or the mining or other sourcing of materials 36 As Engrossed: H4/3/25 HB1683 |
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| 111 | + | vehicle provides the governmental entity a sworn certification that certifies 33 |
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| 112 | + | that no entity involved in the production of the electric vehicle or the 34 |
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| 113 | + | component of an electric vehicle being sold, including the production of a 35 |
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| 114 | + | constituent part or the mining or other sourcing of materials for the 36 HB1683 |
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| 131 | 123 | | (A) Ten thousand dollars ($10,000) for each false or 7 |
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| 132 | 124 | | misleading statement; or 8 |
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| 133 | 125 | | (B) One-half (1/2) of the total price paid by the 9 |
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| 134 | 126 | | governmental entity for the electric vehicle or the component of an electric 10 |
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| 135 | 127 | | vehicle. 11 |
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| 136 | 128 | | (2) A governmental entity that is found to have knowingly 12 |
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| 137 | 129 | | violated subsection (b) of this section shall pay to the state the greater 13 |
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| 138 | 130 | | of: 14 |
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| 139 | 131 | | (A) Ten thousand dollars ($10,000) for each false or 15 |
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| 140 | 132 | | misleading statement; or 16 |
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| 141 | 133 | | (B) The total price paid by the governmental entity for 17 |
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| 142 | 134 | | the electric vehicle or the component of an electric vehicle. 18 |
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| 143 | | - | (3) An employee of a governmental entity who is found to have 19 |
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| 144 | | - | knowingly violated subsection (b) of this section shall be found to be acting 20 |
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| 145 | | - | outside the course and scope of his or her employment and is personally 21 |
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| 146 | | - | liable for a civil penalty of five thousand dollars ($5,000) to the state. 22 |
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| 147 | | - | (4) Each member of a board who votes in the affirmative to authorize 23 |
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| 148 | | - | the purchase of an electric vehicle that is found to violate subsection (b) 24 |
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| 149 | | - | of this section shall personally pay a fine of five thousand dollars ($5,000) 25 |
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| 150 | | - | to the state. 26 |
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| 151 | | - | (d) This section applies to a procurement contract for an 27 |
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| 152 | | - | electric vehicle or a component of an electric vehicle that is entered into, 28 |
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| 153 | | - | amended, or renewed on or after the effective date of this act. 29 |
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| 154 | | - | 30 |
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| 155 | | - | /s/McAlindon 31 |
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| 135 | + | (3) An employee of a governmental entity that is found to have 19 |
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| 136 | + | knowingly violated subsection (b) of this section shall personally pay a 20 |
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| 137 | + | penalty of five thousand dollars ($5,000) to the state. 21 |
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| 138 | + | (4) Each member of a board who votes in the affirmative to 22 |
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| 139 | + | authorize the purchase of an electric vehicle that is found to violate 23 |
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| 140 | + | subsection (b) of this section shall personally pay a fine of five thousand 24 |
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| 141 | + | dollars ($5,000) to the state. 25 |
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| 142 | + | (5) A resident within the district of a governmental entity that 26 |
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| 143 | + | violates this section has standing to bring an action under this section. 27 |
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| 144 | + | (d) This section applies to a procurement contract for an electric 28 |
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| 145 | + | vehicle or a component of an electric vehicle that is entered into, amended, 29 |
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| 146 | + | or renewed on or after the effective date of this act. 30 |
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| 147 | + | 31 |
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