1. United States
2. Calif.
3. Letter

This legislation aims to prohibit federal assistance to electric vehicle companies that fail to certify their supply chains do not use oppressive child labor, forced labor or slavery. The intended purpose is admirable - eliminating exploitative practices in a rapidly growing industry. However, the proposed approach has concerning flaws that could undermine its effectiveness and create unintended consequences. The audit process outlined is overly burdensome, requiring annual audits of 10% of certifications by the Department of Labor. This not only strains limited government resources, but opens the door for potential abuse through false allegations incentivized by competitor firms. A more targeted, risk-based auditing approach may be preferable. Furthermore, the blanket 5-year ban on federal assistance for companies found non-compliant is excessively punitive. It fails to account for degrees of non-compliance and could disproportionately impact smaller firms lacking robust auditing capabilities. A graduated penalty system allowing for corrective action may better align accountability with reform. While well-intentioned, this bill requires substantive revisions to its enforcement mechanisms before warranting support. I urge reconsideration of the auditing protocols, penalty structure, and inclusion of reasonable remediation pathways to achieve its ethical sourcing goals more pragmatically and equitably across the electric vehicle industry. Corporate accountability should be balanced with preserving US leadership in this critical technological frontier.