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A05682 Summary:

BILL NOA05682A
 
SAME ASSAME AS S04859-A
 
SPONSORZebrowski
 
COSPNSRRosenthal L, Simon, Colton, Reyes, Simone, Gonzalez-Rojas, Kelles, Mamdani, Ardila, Steck, Shrestha, Burdick, Shimsky, Gallagher, Stirpe, Ramos, Otis, Fahy, Thiele, Clark, Bores, Raga, Levenberg, Cruz, Anderson, Glick, Epstein, Lee, Gunther, Solages
 
MLTSPNSR
 
Amd 165, St Fin L; add Art 27 490 & 491, Ec Dev L
 
Enacts the New York tropical deforestation-free procurement act requiring that companies contracting with the state do not contribute to tropical primary forest degradation or deforestation directly or through their supply chains; establishes the supply chain transparency assistance program to assist small and medium-sized businesses and minority- and women-owned businesses in achieving compliant supply chains.
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A05682 Actions:

BILL NOA05682A
 
03/20/2023referred to governmental operations
05/10/2023amend and recommit to governmental operations
05/10/2023print number 5682a
05/23/2023reported referred to ways and means
05/31/2023reported referred to rules
06/10/2023reported
06/10/2023rules report cal.817
06/10/2023substituted by s4859a
 S04859 AMEND=A KRUEGER
 02/16/2023REFERRED TO PROCUREMENT AND CONTRACTS
 03/22/2023REPORTED AND COMMITTED TO FINANCE
 04/18/2023AMEND AND RECOMMIT TO FINANCE
 04/18/2023PRINT NUMBER 4859A
 04/25/2023REPORTED AND COMMITTED TO RULES
 04/25/2023ORDERED TO THIRD READING CAL.636
 04/25/2023PASSED SENATE
 04/25/2023DELIVERED TO ASSEMBLY
 04/25/2023referred to governmental operations
 06/10/2023substituted for a5682a
 06/10/2023ordered to third reading rules cal.817
 06/21/2023passed assembly
 06/21/2023returned to senate
 12/12/2023DELIVERED TO GOVERNOR
 12/22/2023VETOED MEMO.135
 02/16/2023REFERRED TO PROCUREMENT AND CONTRACTS
 03/22/2023REPORTED AND COMMITTED TO FINANCE
 04/18/2023AMEND AND RECOMMIT TO FINANCE
 04/18/2023PRINT NUMBER 4859A
 04/25/2023REPORTED AND COMMITTED TO RULES
 04/25/2023ORDERED TO THIRD READING CAL.636
 04/25/2023PASSED SENATE
 04/25/2023DELIVERED TO ASSEMBLY
 04/25/2023referred to governmental operations
 06/10/2023substituted for a5682a
 06/10/2023ordered to third reading rules cal.817
 06/21/2023passed assembly
 06/21/2023returned to senate
 12/12/2023DELIVERED TO GOVERNOR
 12/22/2023VETOED MEMO.135
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A05682 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A5682A
 
SPONSOR: Zebrowski
  TITLE OF BILL: An act to amend the state finance law, in relation to enacting the New York tropical deforestation-free procurement act; and to amend the economic development law, in relation to establishing the supply chain transparency assistance program   PURPOSE: The purpose of the bill is to ensure companies contracting with the state are not contributing to tropical primary forest degradation or tropical deforestation directly or through their supply chains.   SUMMARY OF SPECIFIC PROVISIONS: Section 1: Names the act the "New York Tropical Deforestation-Free Procurement Act." Section 2: Legislative findings. Section 3: Amends subdivision 1 of section 165 of the state finance law. Updates the species included in the list of tropical hardwoods subject to purchasing limitations. Updates the definition of "tropical forests" and "tropical wood products," and adds definitions of "peat" and "trop- ical peat lands." Section 4: Amends subdivision 2 of section 165 of the state finance law. Removes certain exemptions from purchasing limitations for tropical hardwoods. Section 5: Amends section 165 of the state finance law by adding a new subdivision 9. -Paragraph a: Establishes definitions. -Paragraph b: Requires state contractors and subcontractors selling TropiCal forest-risk commodities to the state to certify that the commodity did not originate on land where tropical deforestation or tropical primary forest degradation occurred on or after January 1st, 2023. This requirement would not apply to primary, secondary, or terti- ary packaging for certain purposes. Requires contractors to cooperate with state agencies investigating compliance. Additionally, requires large contractors whose annual revenue is greater than $100 million to certify that they have adopted a tropical forest policy as defined in the statute. Smaller contractors may choose to use the adoption of a tropical forest policy to demonstrate compliance with certification requirements. -Paragraph c: Establishes an opportunity for contractors found to be in violation to come into compliance, followed by possible sanctions including voiding the contract, and/or assessing a penalty that is the greater of $1,000 or an amount equal to 20% of the value of the product furnished to the state in violation of the statute. -Paragraph d: Details the process of investigating complaints. -Paragraph e: When a state agency or authority's contract for the purchase of covered commodities or products is to be awarded to the lowest responsible bidder, establishes a contracting preference for New York-based small and medium-sized businesses, MWEEs, or businesses supplying New York State products, provided that they are otherwise qualified and that their bids are not more than 10% greater than the lowest qualified non-preferred bid. -Paragraph f: Requires the OGS Commissioner to convene a stakeholder advisory group to be consulted on the creation of regulations. -Paragraph g: Requires the OGS Commissioner, on or before July 1st, 2024, in consultation with the stakeholder advisory group and the Commissioner of the Department of Environmental Conservation, to issue regulations for implementation and to assist contractors with compli- ance. -Paragraph h: Exempts from certification requirements credit card purchases of $2,500 or less, totaling no more than $7,500 per year for each contractor from which a purchase is being made. -Paragraph i: Establishes that this subdivision shall apply to all contracts entered into, extended, or renewed on or after January 1st, 2025. -Paragraph j: Requires the OGC Commissioner to issue a biennial report on the implementation of this legislation. Section 6: Amends the Economic Development Law to create the Supply Chain Transparency Assistance Program. Section 7: Effective date.   JUSTIFICATION: Tropical forests cover roughly 7 percent of Earth's surface, but harbor close to 50 percent of all species on Earth. Those species are now going extinct at a rate that is at least 100 to 1,000 times higher than historical levels, due to human activity. Globally, an estimated 18,000,000 acres of forest, an area more than half the size of New York State, are lost every year to deforestation according to the Food and Agriculture Organization of the United Nations, with over one-half of Earth's tropical forests already gone. At the current pace, the entirety of Earth's tropical rainforests will be degraded or destroyed within the next 100 years. An estimated ao percent of the world's greenhouse gas emissions come from deforestation and forest degradation. Taking into account carbon sequestration potential, stopping the loss of tropical forests, mangroves, and wetlands could provide over 20 percent of necessary climate mitigation by 2030. Loss of biodiversity resulting from forest degradation and deforesta- tion, as well as human encroachment on formerly undisturbed ecosystems, increases the risks of zoonotic disease pandemics such as COVID-19. In addition, tropical deforestation in many countries is closely associ- ated with violations of the land rights of indigenous peoples and local communities and with the exploitation of workers, including forced labor and child labor, and in many cases is enabled by corruption, criminali- ty, and violence against conservationists and land defenders. The prima- ry factor leading to tropical deforestation is degradation and road- building associated with logging for timber, while the largest direct cause of tropical deforestation is industrial-scale production of agri- cultural commodities. Together, these are increasingly known as "forest-risk commodities." New York, which has one of the largest economies in the world and a state government with significant purchasing power, is inadvertently promoting and sanctioning tropical primary forest degradation and trop- ical deforestation through the purchase of goods and products that have been produced in supply chains that contribute to tropical primary forest degradation and tropical deforestation. This bill will update and close loopholes in existing statutes that limit the purchase of tropical hardwoods, and create a new statute requiring contractors that sell tropical forest-risk commodities to state agencies or authorities to certify that they are not contributing to tropical primary forest degradation or tropical deforestation direct- ly or through their supply chains. The bill would also create a Supply Chain Transparency Assistance Program to help New York's small- and medium-sized businesses, as well as minority-and women-owned businesses who choose to establish more ethical and sustainable supply chains, while ensuring they have the tools they need to compete in the national and global marketplace.   LEGISLATIVE HISTORY: 2023-24: A.3556 2021-22: A.6872A: Died on Third Reading   FISCAL IMPACT ON THE STATE: Undetermined.   EFFECTIVE DATE: Amendments to subdivisions 1 and 2 of section 165 of the state finance law shall take effect immediately and shall apply to all contracts and binding contractual obligations entered into on and after such effective date. The new subdivision 9 of section 165 of the state finance law shall apply to all contracts entered into, extended, or renewed on or after. January first, two thousand twenty-five.
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A05682 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         5682--A
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                     March 20, 2023
                                       ___________
 
        Introduced  by  M.  of A. ZEBROWSKI, L. ROSENTHAL, SIMON, COLTON, REYES,
          SIMONE, GONZALEZ-ROJAS -- read once and referred to the  Committee  on
          Governmental Operations -- committee discharged, bill amended, ordered
          reprinted as amended and recommitted to said committee
 
        AN  ACT  to amend the state finance law, in relation to enacting the New
          York tropical deforestation-free procurement act;  and  to  amend  the
          economic development law, in relation to establishing the supply chain
          transparency assistance program
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. This act shall be known and may be cited as the  "New  York
     2  tropical deforestation-free procurement act".
     3    §  2.  Legislative  findings.  The  legislature finds and declares the
     4  following:
     5    1. Tropical forests cover roughly 7 percent of  Earth's  surface,  but
     6  harbor close to 50 percent of all species on Earth.
     7    2.  Human  activity  is  the  driving force behind the current rate of
     8  species extinction, which is at least 100 to  1,000  times  higher  than
     9  historical  levels.    The  Intergovernmental Science-Policy Platform on
    10  Biodiversity and Ecosystem Services  reported  in  2019  that  around  1
    11  million  animal  and  plant  species are now threatened with extinction,
    12  many within decades, more than ever before in  human  history.  This  is
    13  directly  linked  to habitat loss, with more than a third of the world's
    14  land surface and nearly 75 percent of freshwater resources  now  devoted
    15  to crop or livestock production.
    16    3.  Globally,  an  estimated  18,000,000 acres of forest, an area more
    17  than half the size of New York state, are lost every year to  deforesta-
    18  tion  according  to  the Food and Agriculture Organization of the United
    19  Nations, with over one-half of Earth's tropical forests already gone. At
    20  the current pace, the entirety of Earth's tropical rainforests  will  be
    21  degraded or destroyed within the next 100 years.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07504-05-3

        A. 5682--A                          2
 
     1    4.  It  has  been  estimated  that  at least 30 percent of the world's
     2  greenhouse gas emissions come from deforestation and forest degradation.
     3  Taking into account carbon sequestration potential, stopping the loss of
     4  tropical forests, mangroves, and wetlands could provide over 20  percent
     5  of climate mitigation by 2030.
     6    5. Loss of biodiversity resulting from forest degradation and defores-
     7  tation,  as  well  as human encroachment on formerly undisturbed ecosys-
     8  tems, increases the risks of zoonotic disease pandemics such  as  COVID-
     9  19.
    10    6. New York state is a leader in addressing the climate crisis, with a
    11  statutory  goal  of achieving net-zero greenhouse gas emissions economy-
    12  wide by 2050.
    13    7. Tropical deforestation in many countries is closely associated with
    14  violations of the land rights of indigenous peoples and  local  communi-
    15  ties  and  with  the exploitation of workers, including forced labor and
    16  child labor, and in many cases is enabled  by  corruption,  criminality,
    17  and violence against conservationists and land defenders.
    18    8. Tropical deforestation in many countries is also closely associated
    19  with  illegal wildlife trafficking, including, but not limited to, vari-
    20  ous bird and reptile species, and many primate species, including  great
    21  apes, pangolins, and orangutans, as well as many tree and plant species,
    22  including  mahoganies,  rosewoods,  ebony,  and  ipe,  all of which have
    23  recently been listed on the Convention of International Trade in  Endan-
    24  gered Species of Fauna and Flora (CITES).
    25    9.  The primary factors leading to tropical deforestation are degrada-
    26  tion and road-building associated with logging for timber,  which  opens
    27  the  door  for  deforestation  caused  by industrial-scale production of
    28  agricultural commodities and conversion of forests into plantations  for
    29  the  timber, pulp, paper, palm oil, soy, and livestock industries, among
    30  others. Together, these are increasingly known as  "forest-risk  commod-
    31  ities".
    32    10.  New York is inadvertently promoting and sanctioning deforestation
    33  and  primary  forest  degradation  through  the  purchase  of  goods and
    34  products that have been produced in supply  chains  that  contribute  to
    35  tropical deforestation and tropical primary forest degradation.
    36    11.  New  York  has  one of the largest economies in the world and its
    37  purchasing power has significant market force, allowing  it  to  play  a
    38  leadership  role  in  preventing  forest loss and supporting markets for
    39  sustainably-sourced products.
    40    12. It is the intent of the legislature that it be the policy of  this
    41  state  to ensure companies contracting with the state are not contribut-
    42  ing to tropical deforestation or  tropical  primary  forest  degradation
    43  directly or through their supply chains.
    44    §  3.  Paragraphs b, c, d and e of subdivision 1 of section 165 of the
    45  state finance law, as added by chapter 83  of  the  laws  of  1995,  are
    46  amended to read as follows:
    47    b. "Tropical hardwood" shall mean any and all hardwood, scientifically
    48  classified  as  angiosperm,  that  grows in any tropical [moist] forest.
    49  Tropical hardwoods shall [be] include but not be limited to the  follow-
    50  ing species:
    51       Scientific Name                     Examples of Common [Name]
    52                                           Names
    53       Prunus africana                     African cherry, Red stinkwood
    54       Caryocar costaricense               Ajo, Aji
    55       Calophyllum spp.                    Bintangor
    56       Cedrela spp.                        Cedar

        A. 5682--A                          3
 
     1       Neobalanocarpus heimii,             Chengal
     2       Balanocarpus heimii
     3       Octomeles sumatrana Miq.            Erima, benuang
     4       Myroxylon balsamum                  Estoraque
     5       Apuleia leiocarpa                   Garapa
     6       Parastemon urophyllus, Parastemon   Malas
     7       spicatus Ridley
     8       Hopea spp.                          Merawan
     9       Araucaria araucana                  Monkey Puzzle, Chilean pine
    10       Pterocarpus tinctorius              Mukula
    11       Senna siamea                        Siamese senna
    12       Pometia pinata                      Taun
    13       Milletia leucantha Kurz             Thinwin
    14       Bulnesia arborea, Bulnesia          Verawood, Argentine lignum
    15       sarmientoi                          vitae
    16       Tristaniopsis laurina               Water gum
    17       Terminalia spp.
    18       Homalium foetidum                   Malas
    19       Dillenia papuana                    Dillenia
    20       Canarium spp.                       Red Canarium, Grey Canarium
    21       Burkrella macropoda                 Rang rang
    22       Octomeles sumatrana                 Erima, Benuang
    23       Dracontomelon dao                   New Guinea walnut
    24       Planchonella spp.                   White Planchonella, Red
    25                                           Planchonella
    26       Lophopetalum spp.                   Perupok
    27       Carinian pyriformis                 Abarco, Jequitiba
    28       Mitragyna ciliate                   Abura
    29       Vouacapous americana                Acapu
    30       Amburana caerensis                  Amburana, Cerejeira
    31       Dalbergia melanoxylon               African Blackwood
    32       Lovoa spp.                          African Walnut, Tigerwood
    33       Pericopsis elata                    [Afrormosis] Afrormosia
    34       [Shorea almon]                      [Almon]
    35       Aspidosperma megalocarpon           Acaretto
    36       Peltogyne spp.                      Amaranth, purpleheart
    37       Terminalia amazonia                 Amarillo Real
    38       [Guibourtis] Guibourtia ehie        Amazaque
    39       Amburana cearensis                  Amburana, Cerejeira, cumare
    40       Pterogyne nitens                    Amendoim
    41       Carapa guianensis                   Andiroba, False Mahogany
    42       Dicorynia guianensis                Angilique Cris
    43       [Aningeris] Aningeria spp.          Aningeria, anegre,
    44                                           anigre
    45       Dipterocarpus [grandiflorus]        [Apilong] Apitong, Keruing
    46       spp.
    47       Centrolobium spp.                   Arariba, Amarillo
    48       Brosimum utile                      Baco
    49       Shorea spp.                         Balau, Selangan batu
    50       Ochroma lagopus                     Balsa
    51       Ochroma pyramidale                  Balsa
    52       Myroxylon balsamum                  Balsamo
    53       [Virola spp.]                       [Banak]
    54       Anisoptera thurifera                Bella [Rose] Rosa
    55       [Guibourtis] Guibourtia arnoldiana
    56                                           Benge, Mutenye

        A. 5682--A                          4
 
     1       Berlinia spp.                       Berlinia, Rose Zebrano
     2       Symphonia globulifera               Boar Wood
     3       Deterium [Senegalese] senegalese    Boire
     4       Caesalpinia echintata,              Brazilwood, Pernambuco
     5       Paubrasilia eschinata
     6       Bertholletia excels                 Brazil Tree
     7       Brosimum alicastrum                 Breadnut
     8       Guilbourtia spp.                    Bubinga, African
     9       (G. demusei, G. pellegriniana,      Rosewood, Kevazingo
    10       G. tessmannii)
    11       Toona calantas, Cedrela calantas    Calantas, Kalantas
    12       Priora copaifera                    Cativo
    13       Cedrela odorata, Cedrela fissilis   Cedro, Cedar, Spanish cedar,
    14                                           South American cedar
    15       Ceiba pentandra                     Ceiba
    16       Antiaris africana                   Chenchen, Antiaris
    17       Couratari guianensis                Coco Blanco
    18       [Dalbergis] Dalbergia
    19       retusa                              [Concobola] Cocobolo,
    20                                           Granadillo
    21       Tabebuia donnell-smithii            Copal
    22       Daniellia spp.                      Copal, Daniellia
    23       Cordia spp.                         Cordia, Bocote, Ziricote, Louro
    24       Hymenaea courbaril                  Courbaril, West Indian Locust
    25       Dipteryx odorata                    Cumaru
    26       Piptadeniastrum africanum           Dahoma, Banzu
    27       Calycophyllum candidissimum         Degame, Legame Lancewood,
    28                                           Lemonwood
    29       Afzelia spp.                        Doussie, Lingue
    30       [Diospyros] Diospyrus spp.          Ebony, Macassar
    31                                           ebony,
    32                                           Ceylon ebony
    33       Lophira alata                       Ekki, Azobe, Bangassi, Akoura,
    34                                           Red Ironwood
    35       Combretodendron macrocarpum         Esia, Essia
    36       Cordia goeldiana                    Freijo, Cordia Wood
    37       Chlorophora tinctoria               Fustic, Yellow Wood, Tatajuba
    38       [Aucoumes] Aucoumea klaineana       Gaboon, Okoume
    39       Astronium spp.                      Goncalo Alves, Zebrawood,
    40                                           Tigerwood
    41       Ocotea rodiaei                      Greenheart
    42       Enterolobium cyclocarpum            Guanacaste, Rain Tree,
    43                                           Elephant Ear
    44       Guarea spp.                         Guarea, Bosse
    45       Terminalia ivorensis                Idigbo, Framire, Black Afara
    46       Phoebe porosa                       Imbuia, Imbuya, Embuia,
    47                                           Brazilian Walnut
    48       Handroanthus spp.                   Ipe, Brazilian walnut,
    49                                           bethabarra, Pau d'arco,
    50                                           Ironwood, Lapacho
    51       Chlorophors excelsa                 Iroko
    52       Hymenaea courbaril                  Jatoba, "Brazilian Cherry"
    53       Jacaranda copaia                    Jacaranda
    54       Machaerium villosum                 Jacaranda Pardo
    55       Dyera costulata                     Jelutong

        A. 5682--A                          5

     1       Dryobalanops spp.                   Kapur, Keladan
     2       Koompassia malaccensis              Kempas, Impas
     3       Acacia koa                          Koa
     4       [Entandrophragm a] Entandrophragma cKosipo,iOmu
     5       Pterygota macrocarpa                Koto, African Pterygota, Ware
     6       Oxandra lanceolate                  Lancewood
     7       Shorea spp. [negrosensis]           [Red]  Lauan, Luan,
     8                                           Lawaan, Meranti, White
     9                                           meranti, yellow meranti, dark
    10                                           red meranti, light red meranti,
    11                                           Seraya, Tanguile, Bang,
    12                                           Philippine Mahogany
    13       [Pentacme contorta]                 [White Lauan]
    14       [Shores ploysprma]                  [Tanguile]
    15       Nothofagus pumilio                  Lenga
    16       Guaiacum officinale                 Lignum Vitae, Guayacan,
    17                                           Ironwood
    18       Terminalia superba                  Limba, Afara, Ofram
    19       [Aniba duckei] Aniba rosedora       [Louro] Brazilian
    20                                           rosewood, pau rosa, bois
    21                                           de rose
    22       Nectandra spp.                      Louro Preto
    23       [Kyaya ivorensis] Khaya spp.        [Africa] African
    24                                           Mahogany
    25       [Swletenia macrophylla]             [Amer. Mahogany]
    26       Swietenia spp.                      American Mahogany, West Indian
    27                                           Mahogany, Central American
    28                                           Mahogany, Honduran Mahogany,
    29                                           South American Mahogany,
    30                                           Mexican Mahogany, Bigleaf
    31                                           Mahogany, Little Leaf
    32                                           Mahogany, Acajou, Caoba
    33                                           Mogno
    34       Tieghemella [leckellii] heckelii    [Makora]
    35                                           Makore,
    36                                           Baku
    37       Diospyros marmorata                 Marblewood, Zebrawood
    38       Intsia bijuga, Intsia palembanica   Merbau, Ipil, Kwila
    39       Anisoptera spp.                     Mersawa, Krabak, Palosapis
    40       Mora excelsa                        Mora
    41       Distemonanthus benthamianus         Movingui, Ayan
    42       Terminalia amazonia                 Nargusta
    43       Pterocarpus spp.                    Narra, Ambyna, Papua New Guinea
    44                                           Rosewood, Red Sanders, Mukula,
    45                                           Kosso, zitan, Hongmu
    46       Palaquium spp.                      Nyatoh, Padang, Pencil Cedar
    47       Triplochiton scleroxylon            Obeche, Samba
    48       Nauclea diderrichii                 Opepe, Sibo
    49       Pterocarpus [soyauxii] spp.         [African] Padauk,
    50                                           Vermillion Wood
    51       [Pterocarpus angolensis]            [Angola Padauk]
    52       Millettia stuhlmannii               Panga Panga
    53       Balfourodendron riedelianum         Pau Marfim
    54       Aspidosperma spp.                   Peroba, Rosa
    55       Paratecoma peroba                   Peroba Branca

        A. 5682--A                          6
 
     1       Dalbergia frutescens, D. tomentosa  Pinkwood, Brazilia Tulipwood
     2       Tabebuia donnell-smithii            Prima Vera, Roble, Durango
     3       Peltogyne spp.                      Purpleheart
     4       Gonystylus spp.                     Ramin
     5       Melanorrhoea curtisii               Rengas, Borneo Rosewood
     6       Nothofagus obliqua                  Roble
     7       Hevea brasiliensis                  Rubberwood
     8       Dalbergia spp.                      Rosewood, Indian Rosewood,
     9                                           Honduras Rosewood, cocobolo,
    10                                           granadillo
    11       Aniba duckei                        Brazilian Rosewood
    12       [Entandrophragm a] Entandrophragma
    13       cylindricum                         [Sapela] Sapele, Sapelli
    14       Acanthopanax ricinofolius           Sen, Castor Arabia
    15       Brosimum aubletti, Piratinera       Snakewood, Letterwood, Leopard
    16       guianensis                          Wood
    17       [Shores phillippinensis]            [Sonora]
    18       Juglans spp. (juglans               South American Walnut, Peruvian
    19       australis, J. neotropica,           Walnut, Tropical Walnut
    20       J. Olanchana, etc.)
    21       Sterculia rhinopetala               Sterculia
    22       Bagassa guianensis                  Tatajuba, Bagasse
    23       Tectona grandis                     Teak
    24       Lovoa trichilloides                 Tigerwood
    25       Entandrophragma utile               Utile, Sipo
    26       Virola spp.                         Virola, Cumala, Banak, Tapsava
    27       Milletia laurentii                  Wenge
    28       Pentacme contorta                   White Lauan
    29       Microberlinia [brazzavillensis]     Zebrawood,
    30       spp.                                Zebrano, Zingana
 
    31    c.  "Tropical  [rain] forests" shall mean [any and all forests classi-
    32  fied by the scientific term "Tropical moist forests", the classification
    33  determined by the equatorial region of the forest and average  rainfall]
    34  a  natural  ecosystem within the tropical regions, approximately bounded
    35  geographically by the tropics of  Cancer  and  Capricorn,  but  possibly
    36  affected  by  other  factors such as prevailing winds, containing native
    37  species composition, structure, and ecological  function,  with  a  tree
    38  canopy  cover  of  more  than  ten  percent over an area of at least 0.5
    39  hectares. "Tropical forests" shall include all  of  the  following:  (i)
    40  human-managed  tropical  forests  or partially degraded tropical forests
    41  that are regenerating; and (ii) tropical forests identified by multi-ob-
    42  jective  conservation  based  assessment  methodologies,  such  as  High
    43  Conservation  Value (HCV) areas, as defined by the HCV Resource Network,
    44  or High Carbon Stock forests,  as  defined  by  the  High  Carbon  Stock
    45  Approach,  or by another methodology with equivalent or higher standards
    46  that includes primary forests  and  tropical  peatlands  of  any  depth.
    47  "Tropical forests" shall not include tree plantations of any type.
    48    d.  "Tropical  hardwood products" shall mean any wood products, whole-
    49  sale or retail, in any form,  including  but  not  limited  to  plywood,
    50  veneer,  furniture,  cabinets, paneling, siding, moldings, doors, doors-
    51  kins, joinery, flooring or sawnwood, which are composed, in whole or  in
    52  part, of tropical hardwood [except plywood].
    53    e.  "Peat"  means  a  soil  that is rich in organic matter composed of
    54  partially decomposed plant materials equal to or greater than 40  centi-
    55  meters of the top 100 centimeters of the soil.

        A. 5682--A                          7
 
     1    f. "Tropical peatlands" means wetlands with a layer of peat made up of
     2  dead  and  decaying  plant  material. Tropical peatlands includes moors,
     3  bogs, mires, and peat swamp forests.
     4    g.  "Secondary  materials" means any material recovered from or other-
     5  wise destined for the waste stream, including, but not limited to, post-
     6  consumer material, industrial scrap material and overstock  or  obsolete
     7  inventories  from distributors, wholesalers and other companies but such
     8  term does not include those materials and  by-products  generated  from,
     9  and commonly reused within, an original manufacturing process.
    10    §  4.  Paragraphs b and d of subdivision 2 of section 165 of the state
    11  finance law, as added by chapter 83 of the laws of 1995, are amended  to
    12  read as follows:
    13    b.  The  provisions of paragraph a of this subdivision shall not apply
    14  to:
    15    (i) [Any hardwoods purchased from a sustained, managed forest; or
    16    (ii)] Any binding contractual obligations for purchase of  commodities
    17  entered  into prior to August twenty-fifth, nineteen hundred ninety-one;
    18  or
    19    [(iii) The purchase of any  tropical  hardwood  or  tropical  hardwood
    20  product  for which there is no acceptable non-tropical hardwood species;
    21  or
    22    (iv) Where the contracting officer finds  that  no  person  or  entity
    23  doing business in the state is capable of providing acceptable non-trop-
    24  ical  hardwood  species  sufficient  to  meet  the  particular  contract
    25  requirements; or
    26    (v)] (ii) Where the inclusion or application of such  provisions  will
    27  violate  or  be  inconsistent  with  the terms or conditions of a grant,
    28  subvention or contract  in  an  agency  of  the  United  States  or  the
    29  instructions  of  an  authorized  representative of any such agency with
    30  respect to any such grant, subvention or contract[; or
    31    (vi) Where inclusion or application of such provisions  results  in  a
    32  substantial  cost  increase  to  the state, government agency, political
    33  subdivision, public corporation or public benefit corporation].
    34    d. The provisions of paragraph c of this subdivision shall not apply:
    35    (i) To bid packages advertised and made available to the public or any
    36  competitive and sealed bids received or entered  into  prior  to  August
    37  twenty-fifth, nineteen hundred ninety-one; or
    38    (ii)  To  any  amendment, modification or renewal of a contract, which
    39  contract was entered into prior to August twenty-fifth, nineteen hundred
    40  ninety-one, where such application would delay timely  completion  of  a
    41  project or involve an increase in the total monies to be paid under that
    42  contract; or
    43    (iii) Where the contracting officer finds that[:
    44    (A)  No  person  or  entity  doing business in the state is capable of
    45  performing the contract using acceptable non-tropical hardwood  species;
    46  or
    47    (B)  The] the inclusion or application of such provisions will violate
    48  or be inconsistent with the terms or conditions of a  grant,  subvention
    49  or  contract  with an agency of the United States or the instructions of
    50  an authorized representative of any such agency with respect to any such
    51  grant, subvention or contract[; or
    52    (C) The use of tropical woods is  deemed  necessary  for  purposes  of
    53  historical  restoration  and  there  exists no available acceptable non-
    54  tropical wood species].
    55    § 5. Section 165 of the state finance law is amended by adding  a  new
    56  subdivision 9 to read as follows:

        A. 5682--A                          8
 
     1    9.  Tropical  deforestation-free  procurement. a. For purposes of this
     2  subdivision, the following definitions shall apply:
     3    (i) "Contractor" means any person or entity that has a contract with a
     4  state  agency  or state authority for public works or improvements to be
     5  performed, for a franchise, concession or lease of property,  for  grant
     6  monies  or goods and services or supplies to be purchased at the expense
     7  of the agency or authority or to be paid out of monies deposited in  the
     8  treasury  or  out  of trust monies under the control or collected by the
     9  agency or authority.
    10    (ii) "Tropical forest-risk commodity"  means  any  commodity  and  its
    11  derived  products,  including  agricultural and non-agricultural commod-
    12  ities but excluding tropical hardwood  and  tropical  hardwood  products
    13  covered  by  subdivisions one and two of this section, whether in raw or
    14  processed form, that is commonly  extracted  from,  or  grown,  derived,
    15  harvested,  reared,  or produced on land where tropical deforestation or
    16  tropical primary forest degradation has occurred or is likely to  occur.
    17  Tropical  forest-risk  commodities  include palm oil, soy, beef, coffee,
    18  cocoa, wood pulp, paper and any additional commodities  defined  by  the
    19  commissioner  of the office of general services pursuant to subparagraph
    20  (i) of paragraph g of this subdivision, but  do  not  include  recovered
    21  fiber.
    22    (iii)  "Free,  prior, and informed consent" means the principle that a
    23  community has the right to give or  withhold  its  consent  to  proposed
    24  developments that may affect the land and waters it legally or customar-
    25  ily  owns,  occupies,  or  otherwise  uses,  as  described in the United
    26  Nations Declaration on the Rights of Indigenous Peoples, the  Indigenous
    27  and  Tribal  Peoples Convention of 1989, also known as the International
    28  Labor Organization Convention 169, and other international  instruments.
    29  "Free,  prior, and informed consent" means informed, noncoercive negoti-
    30  ations between investors,  companies,  or  governments,  and  indigenous
    31  peoples and local communities, prior to project development.
    32    (iv)  "Large contractor" means any contractor whose annual revenue, or
    33  that of their parent company, is equal to or greater  than  one  hundred
    34  million dollars.
    35    (v)  "Point-of-origin"  means the geographical location, as identified
    36  by the smallest administrative unit  of  land,  where  a  commodity  was
    37  grown, derived, harvested, reared, or produced.
    38    (vi)  "Recovered Fiber" means postconsumer fiber such as paper, paper-
    39  board, and fibrous  materials  from  retail  stores,  office  buildings,
    40  homes,  and  so  forth,  after  having  passed  through their end usage,
    41  including used corrugated boxes, old newspapers,  old  magazines,  mixed
    42  waste  paper,  tabulating cards, and used cordage, and all paper, paper-
    43  board, and fibrous materials that enter and are collected from municipal
    44  solid waste; and manufacturing wastes such as dry paper  and  paperboard
    45  waste  generated  after completion of the papermaking process, including
    46  envelope cuttings, bindery trimmings, and  other  paper  and  paperboard
    47  waste  resulting  from  printing, cutting, forming, and other converting
    48  operations, bag, box, and carton manufacturing wastes, and  butt  rolls,
    49  mill  wrappers,  and  rejected unused stock, and repulped finished paper
    50  and  paperboard  from  obsolete  inventories  of  paper  and  paperboard
    51  manufacturers,  merchants,  wholesalers,  dealers, printers, converters,
    52  and others.
    53    (vii) "Tree plantation" means an area of land  predominantly  composed
    54  of trees established through planting and/or deliberate seeding, usually
    55  by  planting  one  or  two  species,  for  the  purpose of producing and

        A. 5682--A                          9
 
     1  harvesting a particular commodity.  Tree  plantation  does  not  include
     2  forest planted for ecosystem restoration.
     3    (viii)  "Tropical deforestation" means direct human-induced conversion
     4  of tropical forest to agriculture, a tree plantation, or other  non-for-
     5  est land use.
     6    (ix)  "Tropical primary forest degradation" means direct human-induced
     7  severe and sustained degradation  of  a  tropical  forest  resulting  in
     8  significant  primary  forest  loss  and/or  a profound change in species
     9  composition, structure, or ecological function of that forest.
    10    (x) "Primary forest" means a forest that has never  been  industrially
    11  logged or harvested and has developed following natural disturbances and
    12  under  natural processes, regardless of its age. Primary forests include
    13  forests  that  have  experienced  non-industrial-scale  human   impacts,
    14  including  traditional  or subsistence activities carried out by indige-
    15  nous communities.
    16    (xi)  "New  York  state  products"  means  products  that  are  grown,
    17  harvested,  or  produced  in  this state, or processed inside or outside
    18  this state  comprising  over  fifty-one  percent  raw  materials  grown,
    19  harvested, or produced in this state, by weight or volume.
    20    (xii)  "Small business" means small business as defined in section one
    21  hundred thirty-one of the economic development law.
    22    (xiii) "Medium-sized business" shall mean a business that is  resident
    23  in  this  state,  independently  owned and operated, not dominant in its
    24  field, and employs between one hundred and five hundred persons.
    25    (xiv) "Minority-owned business enterprise" shall have the same meaning
    26  as in article fifteen-A of the executive law.
    27    (xv) "Women-owned business enterprise" shall have the same meaning  as
    28  in article fifteen-A of the executive law.
    29    b. (i) Every contract entered into by a state agency or authority that
    30  includes the procurement of any product comprised wholly or in part of a
    31  tropical forest-risk commodity shall require that the contractor certify
    32  that  the  commodity furnished to the state pursuant to the contract was
    33  not extracted from, grown, derived, harvested, reared,  or  produced  on
    34  land where tropical deforestation or tropical primary forest degradation
    35  occurred  on  or  after  January  first,  two thousand twenty-three. The
    36  contractor shall agree to comply with this provision of the contract.
    37    (ii) The contract shall specify that the  contractor  is  required  to
    38  cooperate  fully  in  providing  reasonable  access  to the contractor's
    39  records,  documents,  agents,  employees,  or  premises  if   reasonably
    40  required by authorized officials of the contracting agency or authority,
    41  the  office  of general services, the office of the attorney general, or
    42  the department of environmental conservation, to determine the  contrac-
    43  tor's  compliance  with  the requirements under subparagraph (i) of this
    44  paragraph.
    45    (iii) Contractors shall exercise due diligence in ensuring that  their
    46  subcontractors  comply  with  the requirements under subparagraph (i) of
    47  this paragraph.  Contractors shall require each subcontractor to certify
    48  that the subcontractor is in compliance with the requirements of subpar-
    49  agraph (i) of this paragraph.
    50    (iv) In addition to the requirements of subparagraphs  (i),  (ii)  and
    51  (iii)  of  this paragraph, large contractors subject to subparagraph (i)
    52  of this paragraph must certify that they have adopted a tropical  forest
    53  policy  that  complies  with regulations issued pursuant to subparagraph
    54  (vii) of paragraph g of this subdivision. The  adoption  of  a  tropical
    55  forest  policy by a contractor, subcontractor, or supplier that is not a
    56  large contractor is not required by this subparagraph but may be used to

        A. 5682--A                         10
 
     1  demonstrate compliance with subparagraph (i)  of  this  paragraph.  Such
     2  tropical forest policy and all corresponding data shall be made publicly
     3  available, and shall contain at a minimum all of the following:
     4    A.  Due diligence measures to identify the point-of-origin of tropical
     5  forest-risk commodities and ensure  compliance  with  the  policy  where
     6  supply chain risks are present.
     7    B.  Data  detailing the complete list of direct and indirect suppliers
     8  and supply chain traceability information, including  refineries,  proc-
     9  essing  plants,  farms,  and  plantations,  and their respective owners,
    10  parent companies, and farmers, maps, and geo-locations, for  each  trop-
    11  ical  forest-risk  commodity  found in products that may be furnished to
    12  the state.
    13    C. Measures taken to ensure the product does not contribute  to  trop-
    14  ical deforestation or tropical primary forest degradation, including:
    15    (1)  no  development in tropical primary forests, and that the product
    16  does not originate from a site where commodity production  has  replaced
    17  tropical primary forests after January first, two thousand twenty-three;
    18    (2) no development of High Carbon Stock (HCS) Forests;
    19    (3) no development of High Conservation Value (HCV) Areas;
    20    (4) no burning;
    21    (5)  efforts  to ensure progressive reductions of greenhouse gas emis-
    22  sions on existing plantations;
    23    (6) no development on peat, regardless of depth;
    24    (7) best management practices for existing plantations on peat; and
    25    (8) where feasible, activities oriented towards peat restoration.
    26    D. Measures taken to prevent exploitation and  redress  grievances  of
    27  workers and local communities, including:
    28    (1) Respect for and recognition of the rights of all workers including
    29  contract, temporary, and migrant workers.
    30    (2) Respect for and recognition of land tenure rights of communities.
    31    (3) Respect for the rights of indigenous and local communities to give
    32  or  withhold  their  free,  prior, and informed consent to operations on
    33  lands to which they hold legal, communal, or customary rights.
    34    (4) Explicit policies and processes to prevent violence, intimidation,
    35  and coercion of workers and local communities.
    36    (5) Formal, open, transparent, and consultative processes  to  address
    37  and redress all complaints and conflicts.
    38    E.  Measures taken to protect biodiversity and prevent the poaching of
    39  endangered species in all operations and adjacent areas.
    40    F. Measures taken to ensure compliance  with  the  laws  of  countries
    41  where  tropical forest-risk commodities in a company's supply chain were
    42  produced.
    43    G. Measures to deter violence, threats, and harassment  against  envi-
    44  ronmental  human rights defenders (EHRDs), including respecting interna-
    45  tionally recognized human rights  standards,  and  educating  employees,
    46  contractors, and partners on the rights of EHRDs to express their views,
    47  conduct  peaceful protests, and criticize practices without intimidation
    48  or retaliation.
    49    (v) The provisions of subparagraph (i) of  this  paragraph  shall  not
    50  apply  to primary, secondary, or tertiary packaging used for the purpose
    51  of containment, protection, handling, delivery, transport, distribution,
    52  or presentation of a covered product.
    53    (vi) The provisions of subparagraph (i) of this  paragraph  shall  not
    54  apply  when the inclusion or application of such provisions will violate
    55  or be inconsistent with the terms or conditions of a  grant,  subvention
    56  or  contract  with an agency of the United States or the instructions of

        A. 5682--A                         11
 
     1  an authorized representative of any such agency with respect to any such
     2  grant, subvention or contract.
     3    c.  (i)  If  it is determined that any contractor contracting with the
     4  state knew or should have known that a product comprised  wholly  or  in
     5  part  of  a tropical forest-risk commodity was furnished to the state in
     6  violation of paragraph b of this subdivision, the contracting agency  or
     7  authority  shall  issue  a  written  notice  of violation and provide an
     8  opportunity for such contractor to come into compliance. If, after  such
     9  notice,  a  contractor  fails to come into compliance within a timeframe
    10  established by the department, such contractor may, subject to  subpara-
    11  graph  (ii)  of  paragraph b of this subdivision, have either or both of
    12  the following sanctions imposed:
    13    A. The  contract  under  which  the  prohibited  tropical  forest-risk
    14  commodity  was furnished may be voided at the option of the state agency
    15  or authority to which the commodity was furnished.
    16    B. The contractor may be assessed a penalty that shall be the  greater
    17  of  one  thousand  dollars  or  an amount equaling twenty percent of the
    18  value of the product that the state agency or authority demonstrates was
    19  comprised wholly or in part of  a  tropical  forest-risk  commodity  and
    20  furnished  to the state in violation of paragraph b of this subdivision.
    21  A hearing or opportunity to be heard shall  be  provided  prior  to  the
    22  assessment of any penalty.
    23    (ii)  Notwithstanding subparagraph (i) of this paragraph, a contractor
    24  that has complied with the provisions of subparagraph (iii) of paragraph
    25  b of this subdivision shall not be subject to sanctions for  violations,
    26  of  which  the contractor had no knowledge, of the requirements of para-
    27  graph b of this subdivision that were committed solely by a  subcontrac-
    28  tor.  Sanctions described under subparagraph (i) of this paragraph shall
    29  instead  be  imposed  against  the  subcontractor  that  committed   the
    30  violation.
    31    d.  (i)  Any  state  agency or authority that investigates a complaint
    32  against a contractor or subcontractor for violation of this  subdivision
    33  may  limit  its  investigation to evaluating the information provided by
    34  the person or  entity  submitting  the  complaint  and  the  information
    35  provided by the contractor or subcontractor.
    36    (ii)  Whenever  a  contracting  officer  of  the contracting agency or
    37  authority has reason to believe that the  contractor  failed  to  comply
    38  with  paragraph  b  of  this  subdivision, the agency or authority shall
    39  refer the matter for investigation to the head of the agency or authori-
    40  ty and, as the head of the agency or authority  determines  appropriate,
    41  to  either  the  office  of general services, the office of the attorney
    42  general, or the department of environmental conservation.
    43    e. (i) When a state agency or authority's contract for the purchase of
    44  a commodity or product covered by this subdivision is to be  awarded  to
    45  the  lowest  responsible  bidder, an otherwise qualified bidder who is a
    46  small or medium-sized business or a  minority  or  women-owned  business
    47  enterprise, or who will fulfill the contract through the use of New York
    48  state  products,  may  be  given preference over other bidders, provided
    49  that the cost included in the bid is not more than ten  percent  greater
    50  than the cost included in a bid that is not from a small or medium-sized
    51  business  or  a minority or women-owned business enterprise or fulfilled
    52  through the use of New York state products.
    53    (ii) The provisions of this paragraph shall not apply if the  head  of
    54  the  contracting  state agency or authority purchasing such products, in
    55  his or her sole discretion, determines that giving preference to bidders
    56  pursuant to the provisions of this paragraph would be:

        A. 5682--A                         12
 
     1    (a) against the public interest;
     2    (b) would increase the cost of the contract by an unreasonable amount;
     3  or
     4    (c)  New  York  state  products  cannot  be obtained in sufficient and
     5  reasonable available quantities and of satisfactory quality to meet  the
     6  contracting state agency or authority's requirements.
     7    (iii) Nothing in this paragraph shall be construed to conflict with or
     8  otherwise  limit  the  goals  and  requirements set forth by section one
     9  hundred sixty-two of this article and articles fifteen-A and seventeen-B
    10  of the executive law.
    11    f. (i) The commissioner   of the  office  of  general  services  shall
    12  convene  a  stakeholder  advisory  group which shall be consulted on the
    13  creation of regulations pursuant to paragraph  g  of  this  subdivision.
    14  Members  of the advisory group shall be selected by the commissioner and
    15  shall consist of at least:
    16    (A) representatives of current or former state contractors dealing  in
    17  each  of  the tropical forest-risk commodities specified in subparagraph
    18  (ii) of paragraph a of this subdivision, with an emphasis on  small  and
    19  medium-sized businesses;
    20    (B)  representatives  from  civil  society  with relevant expertise in
    21  supply chain traceability, tropical forest sustainability, biodiversity,
    22  climate science, human and labor rights, and indigenous rights.  Members
    23  selected  pursuant  to this clause should be of at least equal number to
    24  members selected pursuant to clause (A) of this subparagraph; and
    25    (C) a minimum of two additional representatives from indigenous commu-
    26  nities within the geographic areas containing tropical  forests  covered
    27  by this subdivision.
    28    (ii)  Members of the stakeholder advisory group shall receive no sala-
    29  ry, but shall be reimbursed by the office of general  services  for  any
    30  necessary  travel  expenses  related to participating in the stakeholder
    31  advisory group.
    32    g. On or before July first, two thousand twenty-four,  the  office  of
    33  general  services shall issue regulations for the implementation of this
    34  subdivision. Such regulations shall be developed  in  consultation  with
    35  the stakeholder advisory group established in paragraph f of this subdi-
    36  vision  and the commissioner of the department of  environmental conser-
    37  vation.  Such regulations shall include, but not be limited to,  all  of
    38  the following:
    39    (i) A list of tropical forest-risk commodities subject to the require-
    40  ments of this subdivision, including, but not limited to, palm oil, soy,
    41  beef, coffee, cocoa, wood pulp and paper. The list shall be reviewed and
    42  updated  at  least every three years. When evaluating inclusion of addi-
    43  tional commodities in the list, the commissioner of the office of gener-
    44  al services shall consider the impact of the commodity as  a  driver  of
    45  tropical deforestation or tropical primary forest degradation, the state
    46  of  existing  supply chain transparency and traceability systems for the
    47  commodity, and the feasibility  of  including  the    commodity  in  the
    48  requirements  of paragraph b of this subdivision. The first review shall
    49  include, but not be limited to, evaluation  of  rubber,  bananas,  corn,
    50  sugarcane,   leather  and  other  cattle-derived  products,  and  mining
    51  products including petroleum, coal, iron, copper, gold,  tin,  diamonds,
    52  manganese,  bauxite and nickel.  Following a review of the list of trop-
    53  ical forest-risk commodities, the commissioner shall issue a  report  to
    54  the  governor, the temporary president of the senate, and the speaker of
    55  the assembly, outlining the reasons for the inclusion  or  non-inclusion
    56  of any reviewed commodities.

        A. 5682--A                         13
 
     1    (ii)  A  list  of  products  derived  wholly  or in part from tropical
     2  forest-risk commodities.
     3    (iii)  A  list  of  products  furnished  to the state or used by state
     4  contractors in high-volume purchases that contain or are comprised whol-
     5  ly or in part of tropical forest-risk commodities.
     6    (iv) A set of responsible sourcing  guidelines  and  policies  derived
     7  from best practices in supply chain transparency to the point-of-origin.
     8    (v) Guidance to assist contractors in identifying tropical forest-risk
     9  commodities in their supply chain, performing necessary due diligence to
    10  meet  the  requirements  of  this  subdivision,  and certifying that the
    11  commodity did not  contribute  to  tropical  deforestation  or  tropical
    12  primary forest degradation.
    13    (vi)  A  list of favored suppliers of tropical forest-risk commodities
    14  and products derived  therefrom  whose products have been determined  to
    15  meet  the  requirements of this subdivision, and a process through which
    16  suppliers may apply for inclusion on such list.
    17    (vii) The full set of requirements for a large  contractor's  tropical
    18  forest  policy  pursuant  to  subparagraph  (iv)  of paragraph b of this
    19  subdivision.
    20    (viii) The process through which  contractors  shall  certify  to  the
    21  office  of general services that they are in compliance with paragraph b
    22  of this subdivision.
    23    (ix) A process for ensuring that details of  certified  contracts  are
    24  made  available  for  public  inspection on the website of the office of
    25  general services.
    26    (x) An easily accessible procedure to receive  public  complaints  and
    27  information regarding violations of this subdivision.
    28    h.  (i)  The  certification requirements set forth in this subdivision
    29  shall not apply to a credit card purchase of goods of two thousand  five
    30  hundred dollars or less.
    31    (ii)  The  total amount of goods exempted pursuant to subparagraph (i)
    32  of this paragraph shall not exceed seven thousand five  hundred  dollars
    33  per  year  for each contractor from which a state agency or authority is
    34  purchasing goods by credit card. It shall be the responsibility of  each
    35  state  agency  to  monitor the use of this exemption and adhere to these
    36  restrictions on these purchases.
    37    i. This  subdivision  shall  apply  to  all  contracts  entered  into,
    38  extended,  or  renewed  on  or after January first, two thousand twenty-
    39  five.
    40    j. Commencing two years after the effective date of  this  subdivision
    41  and  biennially  thereafter,  the  commissioner of the office of general
    42  services shall issue a report to the governor, the  temporary  president
    43  of the senate, and the speaker of the assembly, on the implementation of
    44  this subdivision and subdivisions one and two of this section.
    45    §  6.  The economic development law is amended by adding a new article
    46  27 to read as follows:
    47                                 ARTICLE 27
    48                SUPPLY CHAIN TRANSPARENCY ASSISTANCE PROGRAM
    49  Section 490. Definitions.
    50          491. The supply chain transparency assistance program.
    51    § 490. Definitions. For purposes of this article:
    52    1. "Small business" means a small business as defined in  section  one
    53  hundred thirty-one of this chapter.
    54    2.  "Medium-sized  business" shall mean a business that is resident in
    55  this state, independently owned and operated, not dominant in its field,
    56  and employs between one hundred and five hundred persons.

        A. 5682--A                         14
 
     1    3. "Eligible business" shall mean any small and medium-sized  business
     2  as  defined  in  this  article, and any minority or women-owned business
     3  enterprise as defined in article fifteen-A of the executive law.
     4    4.  "Supply  chain"  shall  mean  a  system of extraction, production,
     5  transportation, and distribution involving multiple processes, organiza-
     6  tions, individuals, and resources,  beginning  with  raw  materials  and
     7  culminating in the delivery of a product or service to a consumer.
     8    § 491. The  supply  chain  transparency  assistance  program.  1.  The
     9  department is hereby authorized and directed, within  one  year  of  the
    10  effective  date  of  this article, to establish, develop, implement, and
    11  maintain, within available appropriations, a supply  chain  transparency
    12  assistance  program  to  assist  small  and  medium-sized businesses and
    13  minority and women-owned businesses in achieving supply chains that are:
    14    (a) Transparent, meaning a supply chain for which sufficient  informa-
    15  tion  has been disclosed regarding all relevant units of production from
    16  the raw material stage to the delivery of a  product  or  service  to  a
    17  consumer,  including,  but  not limited to, extraction sites, suppliers,
    18  manufacturers,  transporters,  wholesalers,  and  retailers,  to   allow
    19  consumers to determine whether the supply chain is ethical and sustaina-
    20  ble.
    21    (b)  Traceable, meaning a supply chain for which distributors, retail-
    22  ers, and other businesses down the  supply  chain  are  able  to  gather
    23  sufficient  and  relevant  information regarding all units of production
    24  further up the supply chain to  determine  whether  a  supply  chain  is
    25  ethical and sustainable.
    26    (c)  Ethical, meaning a supply chain that upholds the human rights and
    27  all other legal  rights,  supports  the  well-being,  and  prevents  the
    28  exploitation,  of  workers  and  communities,  and  guarantees the free,
    29  prior, and informed consent, land, and other legal  rights  of  affected
    30  indigenous peoples and other local and traditional communities.
    31    (d) Sustainable, meaning a supply chain that takes all necessary meas-
    32  ures to avoid, minimize, and reduce degradation of natural environmental
    33  systems,  and  maximizes  efforts  to  contribute to the restoration and
    34  regeneration of impacted ecosystems.
    35    2. The purpose of such program shall be to:
    36    (a) Develop and share best practices and provide technical  assistance
    37  to  help  participating eligible businesses develop and implement stand-
    38  ards, plans, and benchmarks for transparency and traceability,  environ-
    39  mental  sustainability,  and  ethical  practices throughout their supply
    40  chains.
    41    (b) Assist participating  eligible  businesses  with  compliance  with
    42  supply  chain related regulations, procurement standards, or contracting
    43  requirements.
    44    (c) Identify funding streams, grant monies, financial  assistance  and
    45  other  resources  that  may  be available to help participating eligible
    46  businesses achieve  transparent,  traceable,  ethical,  and  sustainable
    47  supply chains.
    48    (d)  Help  participating  eligible businesses with marketing, communi-
    49  cation, and other activities to achieve  maximum  competitive  advantage
    50  from  their  transparent,  traceable,  ethical,  and  sustainable supply
    51  chains.
    52    (e) Conduct market analysis to identify opportunities for  participat-
    53  ing  eligible businesses to access new markets and increase competitive-
    54  ness through achieving transparent, traceable, ethical, and  sustainable
    55  supply chains.

        A. 5682--A                         15
 
     1    (f)  Conduct outreach to promote awareness of the program among eligi-
     2  ble businesses, business organizations, and regional and local  economic
     3  development agencies.
     4    §  7.  This  act  shall take effect immediately and shall apply to all
     5  contracts and binding contractual obligations entered into on and  after
     6  such effective date.
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