Requires fashion sellers to carry out environmental due diligence for the portions of their business related to wearing apparel, footwear or fashion bags, including wearing apparel, footwear or fashion bags produced as a private label; establishes a fashion remediation fund.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A4631B
SPONSOR: Kelles TITLE OF BILL:
An act to amend the general business law, in relation to requiring fash-
ion sellers to be accountable to environmental standards and establish-
ing the interstate fashion environment accountability act; and to amend
the state finance law, in relation to establishing a fashion remediation
fund
PURPOSE OF BILL:
To establish a legal framework incentivizing businesses which sell
apparel, footwear, or fashion bags (fashion sellers) in New York State
(NYS), and exceeds one $100 million in gross receipts, to adopt and
comply with internationally and scientifically verified standards of
environmental responsibility, sustainability, and greenhouse gas (GHG)
reduction. This legislation seeks to incentivize the reduction and miti-
gation of negative environmental impacts of the global fashion industry.
SUMMARY OF SPECIFIC PROVISIONS:
Sec. 1- establishes the title of this act. "Fashion environmental
accountability act"
Sec. 2 - amends the general business law by adding a new section 399-mm
to establish the Fashion Environmental Accountability Act; sets forth
requirements for fashion sellers with $100 million in annual gross
receipts that do business in the New York State to: 1) map their supply
chains and 2) perform sufficient due diligence, which includes identify-
ing, preventing, mitigating, accounting for, and taking remedial action
to address actual and potential adverse impacts to the environment,
including a requirement that covered sellers set science-based targets
to reduce their GHG emissions and work with suppliers to improve chemi-
cal management; provides these requirements will be enforced by the
Attorney General and violators may face a civil penalty not to exceed
$15,000 per violation per day.
Sec. 3 - amends the state finance law by adding a new section 97-ccc to
establish the Fashion Remediation Fund which will distribute any funds
raised by penalties to environmental or projects in impacted communi-
ties.
Sec. 4 - requires the Attorney General to certify that their agency is
prepared to execute their duties in subdivision 6 of § 399-mm of the
general business law.
Sec. 5 - severability
Sec. 6 - timeline for promulgating rules and regulations. Sec. 7- effec-
tive date.
JUSTIFICATION:
The international fashion industry largely operates in a regulatory
vacuum: Currently there are no legally binding environmental standards
placed on the apparel and footwear industries. As a result, "fast fash-
ion" retailers and manufacturers may ramp up production and operations
without taking environmental responsibility or sustainability into
account. Apparel and footwear are responsible for a massive part of the
climate crisis causing GHG emissions, between 4-8.6% of the world's
global GHG footprint. This share of GHG emissions is growing as the
fashion industry pivots further into fast fashion and "single-wear"
styles. The use of certain dyes, fabrics, and synthetic chemicals in the
fast fashion industry pose a significant threat to human health and to
the environment. The use of synthetic chemicals in the fashion industry
exposes consumers to toxic chemicals (i.e. heavy metals, PFAS) linked to
endocrine disruption and increased exposure to carcinogens. The Improper
waste management of materials continues to contaminate waterways, which
in turn exposes agricultural land to toxic chemicals, and poses health
risks to those consuming agricultural food products. Fashion sellers
often do not know where their production is taking place, which makes it
impossible for them to begin to take responsibility or improve the envi-
ronmental impacts where their products are made.
This legislation will shift the industry away from a race to the bottom
by requiring active due diligence and planning to mitigate risk. Under
the bill, apparel and footwear retailers with global revenue of at least
$100 million who sell in New York state would be required to map their
supply chains and sufficiently engage in ongoing due diligence efforts
to draw down their negative impacts.
This will make New York the leader in corporate accountability and
demonstrate a path forward for industry to thrive within the bounds of
the planet.
LEGISLATIVE HISTORY:
2023-24: A4333 reported referred to rules
2021-22: A8352 referred to consumer affairs and protection
FISCAL IMPLICATIONS:
to be determined
EFFECTIVE DATE:
180th day
