The legislation aims to prevent electric vehicle companies from using child or slave labor in the manufacturing and sourcing of materials for electric vehicles.
Federal assistance will not be awarded to electric vehicle companies unless they meet certification requirements regarding labor practices.
Certification must be submitted to the Bureau of International Labor Affairs, stating that the company does not use materials sourced through oppressive child or forced labor.
Certifications expire after three years or upon significant changes to the vehicle’s components.
A database will be established to track certifications, accessible only to federal agencies, with a public summary available listing companies and certification validity.
Annual audits will be conducted on a random basis to verify the accuracy of certifications.
Individuals can report false certifications, and if found to be based on non-credible evidence, the reporting entity may face fines.
The Secretary of Labor will provide annual reports to Congress detailing certifications received, audit results, and any instances of denied federal assistance.
The legislation defines key terms such as “electric vehicle,” “electric vehicle company,” and “slave or child labor.”
Companies failing to comply with the legislation will not be eligible for tax credits or deductions related to electric vehicle manufacturing.
The requirements of this legislation will expire seven years after its enactment.