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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5682A
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
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
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
Section 5: Amends section 165 of the state finance law by adding a new
-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
-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-
-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,
-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.
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
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.
2021-22: A.6872A: Died on Third Reading
FISCAL IMPACT ON THE STATE:
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.
STATE OF NEW YORK
2023-2024 Regular Sessions
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
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.
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-
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-
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]
53 Prunus africanaAfrican cherry, Red stinkwood
54 Caryocar costaricenseAjo, Aji
55 Calophyllum spp.Bintangor
56 Cedrela spp.Cedar
A. 5682--A 6
1 Dalbergia frutescens, D. tomentosaPinkwood, Brazilia Tulipwood
2 Tabebuia donnell-smithiiPrima Vera, Roble, Durango
3 Peltogyne spp. Purpleheart
4 Gonystylus spp. Ramin
5 Melanorrhoea curtisiiRengas, Borneo Rosewood
6 Nothofagus obliquaRoble
7 Hevea brasiliensisRubberwood
8 Dalbergia spp. Rosewood, Indian Rosewood,
9 Honduras Rosewood, cocobolo,
11 Aniba duckeiBrazilian Rosewood
12 [Entandrophragm a] Entandrophragma
13 cylindricum [Sapela] Sapele, Sapelli
14 Acanthopanax ricinofoliusSen, Castor Arabia
15 Brosimum aubletti, PiratineraSnakewood, Letterwood, Leopard
17 [Shores phillippinensis] [Sonora]
18 Juglans spp. (juglansSouth American Walnut, Peruvian
19 australis, J. neotropica,Walnut, Tropical Walnut
20 J. Olanchana, etc.)
21 Sterculia rhinopetalaSterculia
22 Bagassa guianensisTatajuba, Bagasse
23 Tectona grandis Teak
24 Lovoa trichilloides Tigerwood
25 Entandrophragma utileUtile, Sipo
26 Virola spp.Virola, Cumala, Banak, Tapsava
27 Milletia laurentii Wenge
28 Pentacme contortaWhite 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
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;
19 [(iii) The purchase of any tropical hardwood or tropical hardwood
20 product for which there is no acceptable non-tropical hardwood species;
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;
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
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
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
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
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;
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
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-
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-
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
41 (b) Assist participating eligible businesses with compliance with
42 supply chain related regulations, procurement standards, or contracting
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
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.