Assigned to COM FOR COMMITTEE ARIZONA STATE SENATE Fifty-Fifth Legislature, Second Regular Session FACT SHEET FOR H.B. 2488 Uyghurs; forced labor; contracts; prohibition Purpose Prohibits a public entity from entering into a contract with a company unless the contract includes written certification that the company does not use the forced labor, or any goods or services produced by the forced labor, of ethnic Uyghurs in the People's Republic of China. Background Statute prohibits a 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 or 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. ยง 35-393.01). The federal Uyghur Forced Labor Prevention Act prohibits all goods, wares, articles and merchandise mined, produced or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region of China, or by persons working with the Xinjiang Uyghur Autonomous Region government from entering any of the ports of the United States (P.L. 117-78, 117 th Congress, 2021). There is no anticipated fiscal impact to the state General Fund associated with this legislation. Provisions 1. Prohibits a public entity from entering into a contract with a company to acquire or dispose of services, supplies, information technology, goods or construction unless the contract includes written certification that the company does not currently, and agrees for the duration of the contract that it will not, use: a) the forced labor of ethnic Uyghurs in the People's Republic of China; b) any goods or services produced by the forced labor of ethnic Uyghurs in the People's Republic of China; and c) any contractors, subcontractors or suppliers that used the forced labor or any goods or services produced by the forced labor of ethnic Uyghurs in the People's Republic of China. 2. Defines company and public entity. 3. Becomes effective on the general effective date. FACT SHEET H.B. 2488 Page 2 House Action GE 2/2/22 DP 12-0-0-1 3 rd Read 2/10/22 56-0-4 Prepared by Senate Research February 28, 2022 JT/CY/sr