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S05921 Summary:

BILL NOS05921
 
SAME ASSAME AS A06872
 
SPONSORKRUEGER
 
COSPNSRCOONEY, KAPLAN, MAY, REICHLIN-MELNICK, BIAGGI, BRISPORT, BROOKS, HOYLMAN, JACKSON, KAMINSKY, SEPULVEDA, SKOUFIS
 
MLTSPNSR
 
Amd §165, St Fin L
 
Enacts the New York deforestation-free procurement act requiring that companies contracting with the state do not contribute to tropical or boreal intact forest degradation or deforestation directly or through their supply chains.
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S05921 Actions:

BILL NOS05921
 
03/23/2021REFERRED TO PROCUREMENT AND CONTRACTS
04/19/20211ST REPORT CAL.688
04/20/20212ND REPORT CAL.
04/21/2021ADVANCED TO THIRD READING
06/10/2021COMMITTED TO RULES
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S05921 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5921
 
                               2021-2022 Regular Sessions
 
                    IN SENATE
 
                                     March 23, 2021
                                       ___________
 
        Introduced  by  Sens.  KRUEGER,  COONEY,  KAPLAN, MAY, REICHLIN-MELNICK,
          KAMINSKY -- read twice and ordered printed, and  when  printed  to  be
          committed to the Committee on Procurement and Contracts
 
        AN  ACT  to amend the state finance law, in relation to enacting the New
          York deforestation-free procurement act

          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  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.  Boreal forests represent about thirty percent of the global forest
     8  area, help regulate the climate  through  the  exchange  of  energy  and
     9  water,  and  are  a large reservoir of biogenic carbon, storing twice as
    10  much per acre as tropical forests. Canada's boreal forest  alone  stores
    11  nearly  twice  as  much  carbon in its vegetation and soil as the entire
    12  world's combined oil reserves.
    13    3.  Human activity is the driving force behind  the  current  rate  of
    14  species  extinction,  which  is  at least 100 to 1,000 times higher than
    15  historical levels. The World Wildlife Fund's 2016 Living  Planet  Report
    16  found  global  populations  of  fish,  birds,  mammals,  amphibians, and
    17  reptiles declined by 58 percent between 1970 and 2012.
    18    4. Globally, an estimated 18,000,000 acres of  forest,  an  area  more
    19  than  half the size of New York State, are lost every year to deforesta-
    20  tion according to the Food and Agriculture Organization  of  the  United
    21  Nations, with over one-half of Earth's tropical forests already gone. At
    22  the  current  pace, the entirety of Earth's tropical rainforests will be
    23  degraded or destroyed within the next 100 years.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03158-05-1

        S. 5921                             2
 
     1    5. An estimated 20 percent of the  world's  greenhouse  gas  emissions
     2  come  from  deforestation  and  forest  degradation. Taking into account
     3  carbon sequestration potential, stopping the loss of  tropical  forests,
     4  mangroves,  and  wetlands could provide over 20 percent of climate miti-
     5  gation by 2030.
     6    6. 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    7. 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    8. 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 land defenders.
    18    9. 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,  many  primate  species,  including  great
    21  apes,  pangolins,  and  orangutans,  and  in  many  cases  is enabled by
    22  corruption, criminality, and violence against conservationists.
    23    10. The primary factor leading to tropical deforestation  is  degrada-
    24  tion  and  road-building  associated  with logging for timber, while the
    25  largest direct  cause  of  tropical  deforestation  is  industrial-scale
    26  production of agricultural commodities. Together, these are increasingly
    27  known as "forest-risk commodities".
    28    11.  Industrial logging to make single-use tissue products, newsprint,
    29  and lumber is a large driver of boreal forest degradation and deforesta-
    30  tion.
    31    12. New York is inadvertently promoting and sanctioning intact  forest
    32  degradation and deforestation through the purchase of goods and products
    33  that  have  been  produced  in  supply  chains that contribute to intact
    34  forest degradation and deforestation.
    35    13. New York has one of the largest economies in  the  world  and  its
    36  purchasing power has significant market force.
    37    14.  It is the intent of the legislature that it be the policy of this
    38  state to ensure companies contracting with the state are not  contribut-
    39  ing  to  tropical  or  boreal intact forest degradation or deforestation
    40  directly or through their supply chains.
    41    § 3. Paragraphs b, c, d and e of subdivision  1  and  paragraph  b  of
    42  subdivision 2 of section 165 of the state finance law, as added by chap-
    43  ter 83 of the laws of 1995, are amended to read as follows:
    44    b. "Tropical hardwood" shall mean any and all hardwood, scientifically
    45  classified  as  angiosperm,  that  grows in any tropical [moist] forest.
    46  Tropical hardwoods shall [be] include but not be limited to the  follow-
    47  ing species:
    48       Scientific Name                     Examples of Common [Name]
    49                                           Names
    50       Prunus Africana                     African cherry, Red stinkwood
    51       Caryocar costaricense               Ajo, Aji
    52       Calophyllum spp.                    Bintangor
    53       Cedrela spp.                        Cedar
    54       Neobalanocarpus heimii,             Chengal
    55       Balanocarpus heimii
    56       Octomeles sumatrana Miq.            Erima, benuang

        S. 5921                             3
 
     1       Myroxylon balsamum                  Estoraque
     2       Apuleia leiocarpa                   Garapa
     3       Parastemon urophyllus,Parastemon    Malas
     4       spicatus Ridley
     5       Hopea spp.                          Merawan
     6       Araucaria araucana                  Monkey Puzzle, Chilean pine
     7       Pterocarpus tinctorius              Mukula
     8       Senna siamea                        Siamese senna
     9       Pometia pinata                      Taun
    10       Milletia leucantha Kurz             Thinwin
    11       Bulnesia arborea, Bulnesia          Verawood, Argentine lignum
    12       sarmientoi                          vitae
    13       Tristaniopsis laurina               Water gum
    14       Terminalia spp.
    15       Homalium foetidum                   Malas
    16       Dillenia papuana                    Dillenia
    17       Canarium spp.                       Red Canarium, Grey Canarium
    18       Burkrella macropoda                 Rang rang
    19       Octomeles sumatrana                 Erima, Benuang
    20       Dracontomelon dao                   New Guinea walnut
    21       Planchonella spp.                   White Planchonella, Red
    22                                           Planchonella
    23       Lophopetalum spp.                   Perupok
    24       Carinian pyriformis                 Abarco, Jequitiba
    25       Mitragyna ciliate                   Abura
    26       Vouacapous americana                Acapu
    27       Amburana caerensis                  Amburana, Cerejeira
    28       Dalbergia melanoxylon               African Blackwood
    29       Lovoa spp.                          African Walnut, Tigerwood
    30       Pericopsis elata                    [Afrormosis] Afrormosia
    31       [Shorea almon]                      [Almon]
    32       Aspidosperma megalocarpon           Acaretto
    33       Peltogyne spp.                      Amaranth, purpleheart
    34       Terminalia amazonia                 Amarillo Real
    35       Guibourtia ehie                     Amazaque
    36       Amburana cearensis                  Amburana, Cerejeira, cumare
    37       Pterogyne nitens                    Amendoim
    38       Carapa guianensis                   Andiroba, False Mahogany
    39       Dicorynia guianensis                Angilique Cris
    40       [Aningeris] Aningeria spp.          Aningeria, anegre,
    41                                           anigre
    42       Dipterocarpus [grandiflorus]        [Apilong] Apitong, Keruing
    43       spp.
    44       Centrolobium spp.                   Arariba, Amarillo
    45       Brosimum utile                      Baco
    46       Shorea spp.                         Balau, Selangan batu
    47       Ochroma lagopus                     Balsa
    48       Ochroma pyramidale                  Balsa
    49       Myroxylon balsamum                  Balsamo
    50       [Virola spp.]                       [Banak]
    51       Anisoptera thurifera                Bella [Rose] Rosa
    52       Guibourtia arnoldiana               Benge, Mutenye
    53       Berlinia spp.                       Berlinia, Rose Zebrano
    54       Symphonia globulifera               Boar Wood
    55       Deterium [Senegalese] senegalese    Boire

        S. 5921                             4
 
     1       Caesalpinia echintata,              Brazilwood, Pernambuco
     2       Paubrasilia eschinata
     3       Bertholletia excels                 Brazil Tree
     4       Brosimum alicastrum                 Breadnut
     5       Guilbourtia spp.                    Bubinga, African
     6       (G. demusei, G. pellegriniana,      Rosewood, Kevazingo
     7       G. tessmannii)
     8       Toona calantas, Cedrela calantas    Calantas, Kalantas
     9       Priora copaifera                    Cativo
    10       Cedrela odorata, Cedrela fissilis   Cedro, Cedar, Spanish cedar,
    11                                           South American cedar
    12       Ceiba pentandra                     Ceiba
    13       Antiaris africana                   Chenchen, Antiaris
    14       Couratari guianensis                Coco Blanco
    15       [Dalbergis] Dalbergia
    16       retusa                              [Concobola] Cocobolo,
    17                                           Granadillo
    18       Tabebuia donnell-smithii            Copal
    19       Daniellia spp.                      Copal, Daniellia
    20       Cordia spp.                         Cordia, Bocote, Ziricote, Louro
    21       Hymenaea courbaril                  Courbaril, West Indian Locust
    22       Dipteryx odorata                    Cumaru
    23       Piptadeniastrum africanum           Dahoma, Banzu
    24       Calycophyllum candidissimum         Degame, Legame Lancewood,
    25                                           Lemonwood
    26       Afzelia spp.                        Doussie, Lingue
    27       [Diospyros] Diospyrus spp.          Ebony, Macassare,
    28                                           ebony,
    29                                           Ceylon ebony
    30       Lophira alata                       Ekki, Azobe, Bangassi, Akoura,
    31                                           Red Ironwood
    32       Combretodendron macrocarpum         Esia, Essia
    33       Cordia goeldiana                    Freijo, Cordia Wood
    34       Chlorophora tinctoria               Fustic, Yellow Wood, Tatajuba
    35       [Aucoumes] Aucoumea klaineana       Gaboon, Okoume
    36       Astronium spp.                      Goncalo Alves, Zebrawood,
    37                                           Tigerwood
    38       Ocotea rodiaei                      Greenheart
    39       Enterolobium cyclocarpum            Guanacaste, Rain Tree,
    40                                           Elephant Ear
    41       Guarea spp.                         Guarea, Bosse
    42       Terminalia ivorensis                Idigbo, Framire, Black Afara
    43       Phoebe porosa                       Imbuia, Imbuya, Embuia,
    44                                           Brazilian Walnut
    45       Handroanthus spp.                   Ipe, Brazilian walnut,
    46                                           bethabarra, Pau d'arco,
    47                                           Ironwood, Lapacho
    48       Chlorophors excelsa                 Iroko
    49       Hymenaea courbaril                  Jatoba, "Brazilian Cherry"
    50       Jacaranda copaia                    Jacaranda
    51       Machaerium villosum                 Jacaranda Pardo
    52       Dyera costulata                     Jelutong
    53       Dryobalanops spp.                   Kapur, Keladan
    54       Koompassia malaccensis              Kempas, Impas
    55       Acacia koa                          Koa
    56       Entandrophragma candollei           Kosipo, Omu

        S. 5921                             5
 
     1       Pterygota macrocarpa                Koto, African Pterygota, Ware
     2       Oxandra lanceolate                  Lancewood
     3       Shorea spp. [negrosensis]           [Red]  Lauan, Luan,
     4                                           Lawaan, Meranti, White
     5                                           meranti, yellow meranti, dark
     6                                           red meranti, light red meranti,
     7                                           Seraya, Tanguile, Bang,
     8                                           Philippine Mahogany
     9       [Pentacme contorta]                 [White Lauan]
    10       [Shores ploysprma]                  [Tanguile]
    11       Nothofagus pumilio                  Lenga
    12       Guaiacum officinale                 Lignum Vitae, Guayacan,
    13                                           Ironwood
    14       Terminalia superba                  Limba, Afara, Ofram
    15       [Aniba duckei] Aniba rosedora       [Louro] Brazilian
    16                                           rosewood, pau rosa, bois
    17                                           de rose
    18       Nectandra spp.                      Louro Preto
    19       [Kyaya ivorensis] Khaya spp.        [Africa] African
    20                                           Mahogany
    21       [Swletenia macrophylla]             [Amer. Mahogany]
    22       Swietenia spp.                      American Mahogany, West Indian
    23                                           Mahogany, Central American
    24                                           Mahogany, Honduran Mahogany,
    25                                           South American Mahogany,
    26                                           Mexican Mahogany, Bigleaf
    27                                           Mahogany, Little Leaf
    28                                           Mahogany, Acajou, Caoba
    29                                           Mogno
    30       Tieghemella [leckellii] heckelii    [Makora]
    31                                           Makore,
    32                                           Baku
    33       Diospyros marmorata                 Marblewood, Zebrawood
    34       Intsia bijuga, Intsia palembanica   Merbau, Ipil, Kwila
    35       Anisoptera spp.                     Mersawa, Krabak, Palosapis
    36       Mora excelsa                        Mora
    37       Distemonanthus benthamianus         Movingui, Ayan
    38       Terminalia amazonia                 Nargusta
    39       Pterocarpus spp.                    Narra, Ambyna, Papua New Guinea
    40                                           Rosewood, Red Sanders, Mukula,
    41                                           Kosso, zitan, Hongmu
    42       Palaquium spp.                      Nyatoh, Padang, Pencil Cedar
    43       Triplochiton scleroxylon            Obeche, Samba
    44       Nauclea diderrichii                 Opepe, Sibo
    45       Pterocarpus [soyauxii] spp.         [African] Padauk,
    46                                           Vermillion Wood
    47       [Pterocarpus angolensis]            [Angola Padauk]
    48       Millettia stuhlmannii               Panga Panga
    49       Balfourodendron riedelianum         Pau Marfim
    50       Aspidosperma spp.                   Peroba, Rosa
    51       Paratecoma peroba                   Peroba Branca
    52       Dalbergia frutescens, D. tomentosa  Pinkwood, Brazilia Tulipwood
    53       Tabebuia donnell-smithii            Prima Vera, Roble, Durango
    54       Peltogyne spp.                      Purpleheart
    55       Gonystylus spp.                     Ramin

        S. 5921                             6
 
     1       Melanorrhoea curtisii               Rengas, Borneo Rosewood
     2       Nothofagus obliqua                  Roble
     3       Hevea brasiliensis                  Rubberwood
     4       Dalbergia spp.                      Rosewood, Indian Rosewood,
     5                                           Honduras Rosewood, cocobolo,
     6                                           granadillo
     7       Aniba duckei                        Brazilian Rosewood
     8       Entandrophragma cylindricum         [Sapela] Sapele,
     9                                           Sapelli
    10       Acanthopanax ricinofolius           Sen, Castor Arabia
    11       Brosimum aubletti, Piratinera       Snakewood, Letterwood, Leopard
    12       guianensis                          Wood
    13       [Shores phillippinensis]            [Sonora]
    14       Juglans spp. (juglans               South American Walnut, Peruvian
    15       australis, J. neotropica,           Walnut
    16       J. Olanchana, etc.)
    17       Sterculia rhinopetala               Sterculia
    18       Bagassa guianensis                  Tatajuba, Bagasse
    19       Tectona grandis                     Teak
    20       Lovoa trichilloides                 Tigerwood
    21       Entandrophragma utile               Utile, Sipo
    22       Virola spp.                         Virola, Cumala, Banak, Tapsava
    23       Milletia laurentii                  Wenge
    24       Pentacme contorta                   White Lauan
    25       Microberlinia [brazzavillensis]     Zebrawood,
    26       spp.                                Zebrano, Zingana
 
    27    c.  "Tropical  [rain] forests" shall mean [any and all forests classi-
    28  fied by the scientific term "Tropical moist forests", the classification
    29  determined by the equatorial region of the forest and average  rainfall]
    30  a  natural  ecosystem within the tropical regions, approximately bounded
    31  geographically by the tropics of  Cancer  and  Capricorn,  but  possibly
    32  affected  by  other  factors such as prevailing winds, containing native
    33  species composition, structure, and ecological  function,  with  a  tree
    34  canopy  cover  of  more  than  ten  percent over an area of at least 0.5
    35  hectares. "Tropical forests" shall include all  of  the  following:  (i)
    36  human-managed  tropical  forests  or partially degraded tropical forests
    37  that are regenerating; and (ii) forests  identified  by  multi-objective
    38  conservation  based  assessment methodologies, such as High Conservation
    39  Value (HCV) areas, as defined by  the  HCV  Resource  Network,  or  High
    40  Carbon  Stock  forests, as defined by the High Carbon Stock Approach, or
    41  by another methodology with equivalent or higher standards that includes
    42  primary forests and peatlands of any depth. "Tropical forests" shall not
    43  include tree plantations of any type.
    44    d. "Tropical wood products" shall mean any wood products, wholesale or
    45  retail, in any form, including  but  not  limited  to  plywood,  veneer,
    46  furniture, cabinets, paneling, siding, moldings, doors, doorskins, join-
    47  ery,  flooring  or sawnwood, which are composed, in whole or in part, of
    48  tropical hardwood [except plywood].
    49    e. "Peat" means a soil that is rich  in  organic  matter  composed  of
    50  partially  decomposed plant materials equal to or greater than 40 centi-
    51  meters of the top 100 centimeters of the soil.
    52    f. "Peatlands" means wetlands with a layer of peat made up of dead and
    53  decaying plant material. Peatlands includes  moors,  bogs,  mires,  peat
    54  swamp forests, and permafrost tundra.

        S. 5921                             7
 
     1    g.  "Secondary  materials" means any material recovered from or other-
     2  wise destined for the waste stream, including, but not limited to, post-
     3  consumer material, industrial scrap material and overstock  or  obsolete
     4  inventories  from distributors, wholesalers and other companies but such
     5  term  does  not  include those materials and by-products generated from,
     6  and commonly reused within, an original manufacturing process.
     7    b. The provisions of paragraph a of this subdivision shall  not  apply
     8  to:
     9    (i) [Any hardwoods purchased from a sustained, managed forest; or
    10    (ii)]  Any binding contractual obligations for purchase of commodities
    11  entered into prior to August twenty-fifth, nineteen hundred  ninety-one;
    12  or
    13    [(iii)  The  purchase  of  any  tropical hardwood or tropical hardwood
    14  product for which there is no acceptable non-tropical hardwood  species;
    15  or
    16    (iv)  Where  the  contracting  officer  finds that no person or entity
    17  doing business in the state is capable of providing acceptable non-trop-
    18  ical  hardwood  species  sufficient  to  meet  the  particular  contract
    19  requirements; or
    20    (v)]  (ii)  Where the inclusion or application of such provisions will
    21  violate or be inconsistent with the terms  or  conditions  of  a  grant,
    22  subvention  or  contract  in  an  agency  of  the  United  States or the
    23  instructions of an authorized representative of  any  such  agency  with
    24  respect to any such grant, subvention or contract[; or
    25    (vi)  Where  inclusion  or application of such provisions results in a
    26  substantial cost increase to the  state,  government  agency,  political
    27  subdivision, public corporation or public benefit corporation].
    28    §  4.  Section 165 of the state finance law is amended by adding a new
    29  subdivision 9 to read as follows:
    30    9. Deforestation-free procurement. a. For purposes  of  this  subdivi-
    31  sion, the following definitions shall apply:
    32    (i) "Contractor" means any person or entity that has a contract with a
    33  state  agency  or state authority for public works or improvements to be
    34  performed, for a franchise, concession or lease of property,  for  grant
    35  monies  or goods and services or supplies to be purchased at the expense
    36  of the agency or authority or to be paid out of monies deposited in  the
    37  treasury  or  out  of trust monies under the control or collected by the
    38  agency or authority.
    39    (ii) "Forest-risk commodity" means any commodity,  excluding  tropical
    40  hardwood,  whether  in raw or processed form, that is commonly extracted
    41  from, or grown, derived, harvested, reared, or produced  on  land  where
    42  tropical  or boreal intact forest degradation or deforestation occurred.
    43  Forest-risk commodities include palm oil, soy, beef, coffee, wood  pulp,
    44  paper,  logs,  lumber,  and  any  additional  commodities defined by the
    45  commissioner of the office of general services pursuant to  subparagraph
    46  (i) of paragraph f of this subdivision.
    47    (iii)  "Free,  prior, and informed consent" means the principle that a
    48  community has the right to give or  withhold  its  consent  to  proposed
    49  developments that may affect the land and waters it legally or customar-
    50  ily  owns,  occupies,  or  otherwise  uses,  as  described in the United
    51  Nations Declaration on the Rights of Indigenous Peoples, the  Indigenous
    52  and  Tribal  Peoples Convention of 1989, also known as the International
    53  Labor Organization Convention 169, and other international  instruments.
    54  "Free,  prior, and informed consent" means informed, noncoercive negoti-
    55  ations between investors,  companies,  or  governments,  and  indigenous
    56  peoples and local communities, prior to project development.

        S. 5921                             8
 
     1    (iv)  "Large contractor" means any contractor whose annual revenue, or
     2  that of their parent company, is equal to or greater  than  one  billion
     3  dollars.
     4    (v)  "Point-of-origin"  means the geographical location, as identified
     5  by the smallest administrative unit  of  land,  where  a  commodity  was
     6  grown, derived, harvested, reared, or produced.
     7    (vi)  "Tropical  or boreal intact forest degradation or deforestation"
     8  means direct human-induced conversion of tropical or  boreal  forest  to
     9  agriculture,  a tree plantation, or other non-forest land use, or severe
    10  and sustained degradation of  a  tropical  forest  or  a  boreal  forest
    11  resulting  in significant intact forest loss and/or a profound change in
    12  species composition, structure, or ecological function of that forest.
    13    (vii) "Boreal forest" means a forest growing in high-latitude environ-
    14  ments where freezing temperatures occur for six to eight months  and  in
    15  which  trees are capable of reaching a minimum height of five meters and
    16  a canopy cover of ten percent.
    17    (viii) "Intact forest" means a forest that has never been industrially
    18  logged and  has  developed  following  natural  disturbances  and  under
    19  natural processes, regardless of its age. Intact forests include forests
    20  that  have  experienced  non-industrial-scale  human  impacts, including
    21  traditional or subsistence activities carried out by indigenous communi-
    22  ties.
    23    b. (i) Every contract entered into by a state agency or authority that
    24  includes the procurement of any product comprised wholly or in part of a
    25  forest-risk commodity shall require that the contractor certify that the
    26  commodity furnished to the  state  pursuant  to  the  contract  was  not
    27  extracted  from,  grown, derived, harvested, reared, or produced on land
    28  where tropical or boreal  intact  forest  degradation  or  deforestation
    29  occurred  on  or  after  January  first,  two  thousand  twenty-two. The
    30  contractor shall agree to comply with this provision of the contract.
    31    (ii) The contract shall specify that the  contractor  is  required  to
    32  cooperate  fully  in  providing  reasonable  access  to the contractor's
    33  records,  documents,  agents,  employees,  or  premises  if   reasonably
    34  required by authorized officials of the contracting agency or authority,
    35  the  office  of general services, the office of the attorney general, or
    36  the department of environmental conservation to determine  the  contrac-
    37  tor's  compliance  with  the requirements under subparagraph (i) of this
    38  paragraph.
    39    (iii) Contractors shall exercise due diligence in ensuring that  their
    40  subcontractors  comply  with  the requirements under subparagraph (i) of
    41  this paragraph.  Contractors shall require each subcontractor to certify
    42  that the subcontractor is in compliance with the requirements of subpar-
    43  agraph (i) of this paragraph.
    44    (iv) In addition to the requirements of subparagraphs (i),  (ii),  and
    45  (iii)  of  this paragraph, large contractors subject to subparagraph (i)
    46  of this paragraph must certify that they have adopted  a  no  deforesta-
    47  tion,  no  peat,  no exploitation (NDPE) policy that complies with regu-
    48  lations issued pursuant to subparagraph (vi)  of  paragraph  f  of  this
    49  subdivision. The adoption of an NDPE policy by a contractor, subcontrac-
    50  tor,  or supplier that is not a large contractor is not required by this
    51  subparagraph but may be used to demonstrate compliance with subparagraph
    52  (i) of this paragraph. Such NDPE policy and all corresponding data shall
    53  be made publicly available, and shall contain at a minimum  all  of  the
    54  following:

        S. 5921                             9
 
     1    A.  Due  diligence measures to identify the point-of-origin of forest-
     2  risk commodities and ensure compliance  with  the  policy  where  supply
     3  chain risks are present.
     4    B.  Data  detailing the complete list of direct and indirect suppliers
     5  and supply chain traceability information, including  refineries,  proc-
     6  essing  plants,  farms,  and  plantations,  and their respective owners,
     7  parent  companies,  and  farmers,  maps,  and  geo-locations,  for  each
     8  forest-risk  commodity  found  in  products that may be furnished to the
     9  state.
    10    C. Measures taken to ensure the product does not contribute  to  trop-
    11  ical or boreal intact forest degradation or deforestation.
    12    D.  Measures  taken to ensure the free, prior, and informed consent of
    13  directly affected indigenous peoples and local communities.
    14    E. Measures taken to protect biodiversity and prevent the poaching  of
    15  endangered species in all operations and adjacent areas.
    16    F.  Measures  taken  to  ensure  compliance with the laws of countries
    17  where forest-risk commodities in a company's supply chain were produced.
    18    G. Measures to deter violence, threats, and harassment  against  envi-
    19  ronmental  human rights defenders (EHRDs), including respecting interna-
    20  tionally recognized human rights  standards,  and  educating  employees,
    21  contractors, and partners on the rights of EHRDs to express their views,
    22  conduct  peaceful protests, and criticize practices without intimidation
    23  or retaliation.
    24    (v) The provisions of subparagraph (i) of  this  paragraph  shall  not
    25  apply  when the inclusion or application of such provisions will violate
    26  or be inconsistent with the terms or conditions of a  grant,  subvention
    27  or  contract  with an agency of the United States or the instructions of
    28  an authorized representative of any such agency with respect to any such
    29  grant, subvention or contract.
    30    c. (i) Any contractor contracting with the state who  knew  or  should
    31  have  known  that a product comprised wholly or in part of a forest-risk
    32  commodity was furnished to the state in violation of paragraph b of this
    33  subdivision, may, subject to subparagraph (ii) of paragraph  b  of  this
    34  subdivision, have either or both of the following sanctions imposed:
    35    A.  The  contract under which the prohibited forest-risk commodity was
    36  furnished may be voided at the option of the state agency  or  authority
    37  to which the commodity was furnished.
    38    B.  The contractor may be assessed a penalty that shall be the greater
    39  of one thousand dollars or an amount  equaling  twenty  percent  of  the
    40  value of the product that the state agency or authority demonstrates was
    41  comprised  wholly or in part of a forest-risk commodity and furnished to
    42  the state in violation of paragraph b of this subdivision. A hearing  or
    43  opportunity to be heard shall be provided prior to the assessment of any
    44  penalty.
    45    (ii)  Notwithstanding subparagraph (i) of this paragraph, a contractor
    46  that has complied with the provisions of subparagraph (iii) of paragraph
    47  b of this subdivision shall not be subject to sanctions for  violations,
    48  of  which  the contractor had no knowledge, of the requirements of para-
    49  graph b of this subdivision that were committed solely by a  subcontrac-
    50  tor.  Sanctions described under subparagraph (i) of this paragraph shall
    51  instead  be  imposed  against  the  subcontractor  that  committed   the
    52  violation.
    53    d.  (i)  Any  state  agency or authority that investigates a complaint
    54  against a contractor or subcontractor for violation of this  subdivision
    55  may  limit  its  investigation to evaluating the information provided by

        S. 5921                            10
 
     1  the person or  entity  submitting  the  complaint  and  the  information
     2  provided by the contractor or subcontractor.
     3    (ii)  Whenever  a  contracting  officer  of  the contracting agency or
     4  authority has reason to believe that the  contractor  failed  to  comply
     5  with  paragraph  b  of  this  subdivision, the agency or authority shall
     6  refer the matter for investigation to the head of the agency or authori-
     7  ty and, as the head of the agency or authority  determines  appropriate,
     8  to  either  the  office  of general services, the office of the attorney
     9  general, or the department of environmental conservation.
    10    e. The commissioner  of the office of  general  services  shall  issue
    11  regulations  for  the  implementation  of this subdivision, including an
    12  easily  accessible  procedure  to  take  public   complaints   regarding
    13  violations  as  well  as,  on or before July first, two thousand twenty-
    14  three, in consultation with the commissioner of the department of  envi-
    15  ronmental conservation, issuing an informational notice or memorandum on
    16  a  Deforestation-Free  Code  of  Conduct  to  be used by contractors for
    17  purposes of complying with paragraph b of this subdivision. The Defores-
    18  tation-Free Code of Conduct shall include, but is not limited to, all of
    19  the following:
    20    (i) A list of forest-risk commodities subject to the  requirements  of
    21  this  subdivision,  including,  but not limited to, palm oil, soy, beef,
    22  coffee, wood pulp, paper, logs, and lumber. The list shall  be  reviewed
    23  and  updated  every three years. When evaluating inclusion of additional
    24  commodities in the list, the  commissioner  of  the  office  of  general
    25  services shall consider the impact of the commodity as a driver of trop-
    26  ical  or boreal intact forest degradation or deforestation, the state of
    27  existing supply chain transparency  and  traceability  systems  for  the
    28  commodity,  and  the  feasibility  of  including  the  commodity  in the
    29  requirements of paragraph b of this subdivision.
    30    (ii) A list of products derived wholly or  in  part  from  forest-risk
    31  commodities.
    32    (iii)  A  list  of  products  furnished  to the state or used by state
    33  contractors in high-volume purchases that contain or are comprised whol-
    34  ly or in part of forest-risk commodities.
    35    (iv) A set of responsible sourcing  guidelines  and  policies  derived
    36  from best practices in supply chain transparency to the point-of-origin.
    37    (v)  Guidance to assist contractors in identifying forest-risk commod-
    38  ities in their supply chain and certifying that the  commodity  did  not
    39  contribute to tropical or boreal intact forest degradation or deforesta-
    40  tion.
    41    (vi) The full set of requirements for a contractor's no deforestation,
    42  no  peat,  no exploitation policy pursuant to subparagraph (iv) of para-
    43  graph b of this subdivision.
    44    (vii) The process through  which  contractors  shall  certify  to  the
    45  office  of general services that they are in compliance with paragraph b
    46  of this subdivision.
    47    f. (i) The certification requirements set forth  in  this  subdivision
    48  shall  not apply to a credit card purchase of goods of two thousand five
    49  hundred dollars or less.
    50    (ii) The total amount of goods exempted pursuant to  subparagraph  (i)
    51  of  this  paragraph shall not exceed seven thousand five hundred dollars
    52  per year for each contractor from which a state agency or  authority  is
    53  purchasing  goods by credit card. It shall be the responsibility of each
    54  state agency to monitor the use of this exemption and  adhere  to  these
    55  restrictions on these purchases.

        S. 5921                            11
 
     1    g.  This  subdivision  shall  apply  to  all  contracts  entered into,
     2  extended, or renewed on or after January  first,  two  thousand  twenty-
     3  four.
     4    h.  Commencing  two years after the effective date of this subdivision
     5  and biennially thereafter, the commissioner of  the  office  of  general
     6  services  shall  issue a report to the governor, the temporary president
     7  of the senate, and the speaker of the assembly, on the implementation of
     8  this subdivision and subdivisions one and two of this section.
     9    § 5. This act shall take effect immediately and  shall  apply  to  all
    10  contracts  and binding contractual obligations entered into on and after
    11  such effective date.
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