Bill Text: NY A05682 | 2023-2024 | General Assembly | Amended
Bill Title: 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.
Spectrum: Partisan Bill (Democrat 31-0)
Status: (Introduced) 2023-06-10 - substituted by s4859a [A05682 Detail]
Download: New_York-2023-A05682-Amended.html
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. LBD07504-05-3A. 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. CedarA. 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, MutenyeA. 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 JelutongA. 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 BrancaA. 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-32fied by the scientific term "Tropical moist forests", the classification33determined 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; or16(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 hardwood20product for which there is no acceptable non-tropical hardwood species;21or22(iv) Where the contracting officer finds that no person or entity23doing business in the state is capable of providing acceptable non-trop-24ical hardwood species sufficient to meet the particular contract25requirements; or26(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[; or31(vi) Where inclusion or application of such provisions results in a32substantial cost increase to the state, government agency, political33subdivision, 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 of45performing the contract using acceptable non-tropical hardwood species;46or47(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[; or52(C) The use of tropical woods is deemed necessary for purposes of53historical restoration and there exists no available acceptable non-54tropical 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 andA. 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 toA. 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 ofA. 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.
