Bill Text: NY A05682 | 2023-2024 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5682 2023-2024 Regular Sessions IN ASSEMBLY March 20, 2023 ___________ Introduced by M. of A. ZEBROWSKI -- read once and referred to the Committee on Governmental Operations 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. 22 4. It has been estimated that at least 30 percent of the world's 23 greenhouse gas emissions come from deforestation and forest degradation. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07504-03-3A. 5682 2 1 Taking into account carbon sequestration potential, stopping the loss of 2 tropical forests, mangroves, and wetlands could provide over 20 percent 3 of climate mitigation by 2030. 4 5. Loss of biodiversity resulting from forest degradation and defores- 5 tation, as well as human encroachment on formerly undisturbed ecosys- 6 tems, increases the risks of zoonotic disease pandemics such as COVID- 7 19. 8 6. New York state is a leader in addressing the climate crisis, with a 9 statutory goal of achieving net-zero greenhouse gas emissions economy- 10 wide by 2050. 11 7. Tropical deforestation in many countries is closely associated with 12 violations of the land rights of indigenous peoples and local communi- 13 ties and with the exploitation of workers, including forced labor and 14 child labor, and in many cases is enabled by corruption, criminality, 15 and violence against conservationists and land defenders. 16 8. Tropical deforestation in many countries is also closely associated 17 with illegal wildlife trafficking, including, but not limited to, vari- 18 ous bird and reptile species, many primate species, including great 19 apes, pangolins, and orangutans. 20 9. The primary factors leading to tropical deforestation are degrada- 21 tion and road-building associated with logging for timber, which opens 22 the door for deforestation caused by industrial-scale production of 23 agricultural commodities and conversion of forests into plantations for 24 the timber, pulp, paper, palm oil, soy, and livestock industries, among 25 others. Together, these are increasingly known as "forest-risk commod- 26 ities". 27 10. New York is inadvertently promoting and sanctioning deforestation 28 and primary forest degradation through the purchase of goods and 29 products that have been produced in supply chains that contribute to 30 tropical deforestation and tropical primary forest degradation. 31 11. New York has one of the largest economies in the world and its 32 purchasing power has significant market force, allowing it to play a 33 leadership role in preventing forest loss and supporting markets for 34 sustainably-sourced products. 35 12. It is the intent of the legislature that it be the policy of this 36 state to ensure companies contracting with the state are not contribut- 37 ing to tropical deforestation or tropical primary forest degradation 38 directly or through their supply chains. 39 § 3. Paragraphs b, c, d and e of subdivision 1 of section 165 of the 40 state finance law, as added by chapter 83 of the laws of 1995, are 41 amended to read as follows: 42 b. "Tropical hardwood" shall mean any and all hardwood, scientifically 43 classified as angiosperm, that grows in any tropical [moist] forest. 44 Tropical hardwoods shall [be] include but not be limited to the follow- 45 ing species: 46 Scientific Name Examples of Common [Name] 47 Names 48 Prunus africana African cherry, Red stinkwood 49 Caryocar costaricense Ajo, Aji 50 Calophyllum spp. Bintangor 51 Cedrela spp. Cedar 52 Neobalanocarpus heimii, Chengal 53 Balanocarpus heimii 54 Octomeles sumatrana Miq. Erima, benuang 55 Myroxylon balsamum Estoraque 56 Apuleia leiocarpa GarapaA. 5682 3 1 Parastemon urophyllus, Parastemon Malas 2 spicatus Ridley 3 Hopea spp. Merawan 4 Araucaria araucana Monkey Puzzle, Chilean pine 5 Pterocarpus tinctorius Mukula 6 Senna siamea Siamese senna 7 Pometia pinata Taun 8 Milletia leucantha Kurz Thinwin 9 Bulnesia arborea, Bulnesia Verawood, Argentine lignum 10 sarmientoi vitae 11 Tristaniopsis laurina Water gum 12 Terminalia spp. 13 Homalium foetidum Malas 14 Dillenia papuana Dillenia 15 Canarium spp. Red Canarium, Grey Canarium 16 Burkrella macropoda Rang rang 17 Octomeles sumatrana Erima, Benuang 18 Dracontomelon dao New Guinea walnut 19 Planchonella spp. White Planchonella, Red 20 Planchonella 21 Lophopetalum spp. Perupok 22 Carinian pyriformis Abarco, Jequitiba 23 Mitragyna ciliate Abura 24 Vouacapous americana Acapu 25 Amburana caerensis Amburana, Cerejeira 26 Dalbergia melanoxylon African Blackwood 27 Lovoa spp. African Walnut, Tigerwood 28 Pericopsis elata [Afrormosis] Afrormosia 29 [Shorea almon] [Almon] 30 Aspidosperma megalocarpon Acaretto 31 Peltogyne spp. Amaranth, purpleheart 32 Terminalia amazonia Amarillo Real 33 [Guibourtis] Guibourtia ehie Amazaque 34 Amburana cearensis Amburana, Cerejeira, cumare 35 Pterogyne nitens Amendoim 36 Carapa guianensis Andiroba, False Mahogany 37 Dicorynia guianensis Angilique Cris 38 [Aningeris] Aningeria spp. Aningeria, anegre, 39 anigre 40 Dipterocarpus [grandiflorus] [Apilong] Apitong, Keruing 41 spp. 42 Centrolobium spp. Arariba, Amarillo 43 Brosimum utile Baco 44 Shorea spp. Balau, Selangan batu 45 Ochroma lagopus Balsa 46 Ochroma pyramidale Balsa 47 Myroxylon balsamum Balsamo 48 [Virola spp.] [Banak] 49 Anisoptera thurifera Bella [Rose] Rosa 50 [Guibourtis] Guibourtia arnoldiana 51 Benge, Mutenye 52 Berlinia spp. Berlinia, Rose Zebrano 53 Symphonia globulifera Boar Wood 54 Deterium [Senegalese] senegalese Boire 55 Caesalpinia echintata, Brazilwood, Pernambuco 56 Paubrasilia eschinataA. 5682 4 1 Bertholletia excels Brazil Tree 2 Brosimum alicastrum Breadnut 3 Guilbourtia spp. Bubinga, African 4 (G. demusei, G. pellegriniana, Rosewood, Kevazingo 5 G. tessmannii) 6 Toona calantas, Cedrela calantas Calantas, Kalantas 7 Priora copaifera Cativo 8 Cedrela odorata, Cedrela fissilis Cedro, Cedar, Spanish cedar, 9 South American cedar 10 Ceiba pentandra Ceiba 11 Antiaris africana Chenchen, Antiaris 12 Couratari guianensis Coco Blanco 13 [Dalbergis] Dalbergia 14 retusa [Concobola] Cocobolo, 15 Granadillo 16 Tabebuia donnell-smithii Copal 17 Daniellia spp. Copal, Daniellia 18 Cordia spp. Cordia, Bocote, Ziricote, Louro 19 Hymenaea courbaril Courbaril, West Indian Locust 20 Dipteryx odorata Cumaru 21 Piptadeniastrum africanum Dahoma, Banzu 22 Calycophyllum candidissimum Degame, Legame Lancewood, 23 Lemonwood 24 Afzelia spp. Doussie, Lingue 25 [Diospyros] Diospyrus spp. Ebony, Macassar 26 ebony, 27 Ceylon ebony 28 Lophira alata Ekki, Azobe, Bangassi, Akoura, 29 Red Ironwood 30 Combretodendron macrocarpum Esia, Essia 31 Cordia goeldiana Freijo, Cordia Wood 32 Chlorophora tinctoria Fustic, Yellow Wood, Tatajuba 33 [Aucoumes] Aucoumea klaineana Gaboon, Okoume 34 Astronium spp. Goncalo Alves, Zebrawood, 35 Tigerwood 36 Ocotea rodiaei Greenheart 37 Enterolobium cyclocarpum Guanacaste, Rain Tree, 38 Elephant Ear 39 Guarea spp. Guarea, Bosse 40 Terminalia ivorensis Idigbo, Framire, Black Afara 41 Phoebe porosa Imbuia, Imbuya, Embuia, 42 Brazilian Walnut 43 Handroanthus spp. Ipe, Brazilian walnut, 44 bethabarra, Pau d'arco, 45 Ironwood, Lapacho 46 Chlorophors excelsa Iroko 47 Hymenaea courbaril Jatoba, "Brazilian Cherry" 48 Jacaranda copaia Jacaranda 49 Machaerium villosum Jacaranda Pardo 50 Dyera costulata Jelutong 51 Dryobalanops spp. Kapur, Keladan 52 Koompassia malaccensis Kempas, Impas 53 Acacia koa Koa 54 [Entandrophragm a] Entandrophragma cKosipo,iOmu 55 Pterygota macrocarpa Koto, African Pterygota, Ware 56 Oxandra lanceolate LancewoodA. 5682 5 1 Shorea spp. [negrosensis] [Red] Lauan, Luan, 2 Lawaan, Meranti, White 3 meranti, yellow meranti, dark 4 red meranti, light red meranti, 5 Seraya, Tanguile, Bang, 6 Philippine Mahogany 7 [Pentacme contorta] [White Lauan] 8 [Shores ploysprma] [Tanguile] 9 Nothofagus pumilio Lenga 10 Guaiacum officinale Lignum Vitae, Guayacan, 11 Ironwood 12 Terminalia superba Limba, Afara, Ofram 13 [Aniba duckei] Aniba rosedora [Louro] Brazilian 14 rosewood, pau rosa, bois 15 de rose 16 Nectandra spp. Louro Preto 17 [Kyaya ivorensis] Khaya spp. [Africa] African 18 Mahogany 19 [Swletenia macrophylla] [Amer. Mahogany] 20 Swietenia spp. American Mahogany, West Indian 21 Mahogany, Central American 22 Mahogany, Honduran Mahogany, 23 South American Mahogany, 24 Mexican Mahogany, Bigleaf 25 Mahogany, Little Leaf 26 Mahogany, Acajou, Caoba 27 Mogno 28 Tieghemella [leckellii] heckelii [Makora] 29 Makore, 30 Baku 31 Diospyros marmorata Marblewood, Zebrawood 32 Intsia bijuga, Intsia palembanica Merbau, Ipil, Kwila 33 Anisoptera spp. Mersawa, Krabak, Palosapis 34 Mora excelsa Mora 35 Distemonanthus benthamianus Movingui, Ayan 36 Terminalia amazonia Nargusta 37 Pterocarpus spp. Narra, Ambyna, Papua New Guinea 38 Rosewood, Red Sanders, Mukula, 39 Kosso, zitan, Hongmu 40 Palaquium spp. Nyatoh, Padang, Pencil Cedar 41 Triplochiton scleroxylon Obeche, Samba 42 Nauclea diderrichii Opepe, Sibo 43 Pterocarpus [soyauxii] spp. [African] Padauk, 44 Vermillion Wood 45 [Pterocarpus angolensis] [Angola Padauk] 46 Millettia stuhlmannii Panga Panga 47 Balfourodendron riedelianum Pau Marfim 48 Aspidosperma spp. Peroba, Rosa 49 Paratecoma peroba Peroba Branca 50 Dalbergia frutescens, D. tomentosa Pinkwood, Brazilia Tulipwood 51 Tabebuia donnell-smithii Prima Vera, Roble, Durango 52 Peltogyne spp. Purpleheart 53 Gonystylus spp. Ramin 54 Melanorrhoea curtisii Rengas, Borneo Rosewood 55 Nothofagus obliqua Roble 56 Hevea brasiliensis RubberwoodA. 5682 6 1 Dalbergia spp. Rosewood, Indian Rosewood, 2 Honduras Rosewood, cocobolo, 3 granadillo 4 Aniba duckei Brazilian Rosewood 5 [Entandrophragm a] Entandrophragma 6 cylindricum [Sapela] Sapele, Sapelli 7 Acanthopanax ricinofolius Sen, Castor Arabia 8 Brosimum aubletti, Piratinera Snakewood, Letterwood, Leopard 9 guianensis Wood 10 [Shores phillippinensis] [Sonora] 11 Juglans spp. (juglans South American Walnut, Peruvian 12 australis, J. neotropica, Walnut 13 J. Olanchana, etc.) 14 Sterculia rhinopetala Sterculia 15 Bagassa guianensis Tatajuba, Bagasse 16 Tectona grandis Teak 17 Lovoa trichilloides Tigerwood 18 Entandrophragma utile Utile, Sipo 19 Virola spp. Virola, Cumala, Banak, Tapsava 20 Milletia laurentii Wenge 21 Pentacme contorta White Lauan 22 Microberlinia [brazzavillensis] Zebrawood, 23 spp. Zebrano, Zingana 24 c. "Tropical [rain] forests" shall mean [any and all forests classi-25fied by the scientific term "Tropical moist forests", the classification26determined by the equatorial region of the forest and average rainfall] 27 a natural ecosystem within the tropical regions, approximately bounded 28 geographically by the tropics of Cancer and Capricorn, but possibly 29 affected by other factors such as prevailing winds, containing native 30 species composition, structure, and ecological function, with a tree 31 canopy cover of more than ten percent over an area of at least 0.5 32 hectares. "Tropical forests" shall include all of the following: (i) 33 human-managed tropical forests or partially degraded tropical forests 34 that are regenerating; and (ii) tropical forests identified by multi-ob- 35 jective conservation based assessment methodologies, such as High 36 Conservation Value (HCV) areas, as defined by the HCV Resource Network, 37 or High Carbon Stock forests, as defined by the High Carbon Stock 38 Approach, or by another methodology with equivalent or higher standards 39 that includes primary forests and tropical peatlands of any depth. 40 "Tropical forests" shall not include tree plantations of any type. 41 d. "Tropical wood products" shall mean any wood products, wholesale or 42 retail, in any form, including but not limited to plywood, veneer, 43 furniture, cabinets, paneling, siding, moldings, doors, doorskins, join- 44 ery, flooring or sawnwood, which are composed, in whole or in part, of 45 tropical hardwood [except plywood]. 46 e. "Peat" means a soil that is rich in organic matter composed of 47 partially decomposed plant materials equal to or greater than 40 centi- 48 meters of the top 100 centimeters of the soil. 49 f. "Tropical peatlands" means wetlands with a layer of peat made up of 50 dead and decaying plant material. Tropical peatlands includes moors, 51 bogs, mires, and peat swamp forests. 52 g. "Secondary materials" means any material recovered from or other- 53 wise destined for the waste stream, including, but not limited to, post- 54 consumer material, industrial scrap material and overstock or obsolete 55 inventories from distributors, wholesalers and other companies but suchA. 5682 7 1 term does not include those materials and by-products generated from, 2 and commonly reused within, an original manufacturing process. 3 § 4. Paragraphs b and d of subdivision 2 of section 165 of the state 4 finance law, as added by chapter 83 of the laws of 1995, are amended to 5 read as follows: 6 b. The provisions of paragraph a of this subdivision shall not apply 7 to: 8 (i) [Any hardwoods purchased from a sustained, managed forest; or9(ii)] Any binding contractual obligations for purchase of commodities 10 entered into prior to August twenty-fifth, nineteen hundred ninety-one; 11 or 12 [(iii) The purchase of any tropical hardwood or tropical hardwood13product for which there is no acceptable non-tropical hardwood species;14or15(iv) Where the contracting officer finds that no person or entity16doing business in the state is capable of providing acceptable non-trop-17ical hardwood species sufficient to meet the particular contract18requirements; or19(v)] (ii) Where the inclusion or application of such provisions will 20 violate or be inconsistent with the terms or conditions of a grant, 21 subvention or contract in an agency of the United States or the 22 instructions of an authorized representative of any such agency with 23 respect to any such grant, subvention or contract[; or24(vi) Where inclusion or application of such provisions results in a25substantial cost increase to the state, government agency, political26subdivision, public corporation or public benefit corporation]. 27 d. The provisions of paragraph c of this subdivision shall not apply: 28 (i) To bid packages advertised and made available to the public or any 29 competitive and sealed bids received or entered into prior to August 30 twenty-fifth, nineteen hundred ninety-one; or 31 (ii) To any amendment, modification or renewal of a contract, which 32 contract was entered into prior to August twenty-fifth, nineteen hundred 33 ninety-one, where such application would delay timely completion of a 34 project or involve an increase in the total monies to be paid under that 35 contract; or 36 (iii) Where the contracting officer finds that[:37(A) No person or entity doing business in the state is capable of38performing the contract using acceptable non-tropical hardwood species;39or40(B) The] the inclusion or application of such provisions will violate 41 or be inconsistent with the terms or conditions of a grant, subvention 42 or contract with an agency of the United States or the instructions of 43 an authorized representative of any such agency with respect to any such 44 grant, subvention or contract[; or45(C) The use of tropical woods is deemed necessary for purposes of46historical restoration and there exists no available acceptable non-47tropical wood species]. 48 § 5. Section 165 of the state finance law is amended by adding a new 49 subdivision 9 to read as follows: 50 9. Tropical deforestation-free procurement. a. For purposes of this 51 subdivision, the following definitions shall apply: 52 (i) "Contractor" means any person or entity that has a contract with a 53 state agency or state authority for public works or improvements to be 54 performed, for a franchise, concession or lease of property, for grant 55 monies or goods and services or supplies to be purchased at the expense 56 of the agency or authority or to be paid out of monies deposited in theA. 5682 8 1 treasury or out of trust monies under the control or collected by the 2 agency or authority. 3 (ii) "Tropical forest-risk commodity" means any commodity and its 4 derived products, including agricultural and non-agricultural commod- 5 ities but excluding tropical hardwood and tropical wood products covered 6 by subdivisions one and two of this section, whether in raw or processed 7 form, that is commonly extracted from, or grown, derived, harvested, 8 reared, or produced on land where tropical deforestation or tropical 9 primary forest degradation has occurred or is likely to occur. Tropical 10 forest-risk commodities include palm oil, soy, beef, coffee, cocoa, wood 11 pulp, paper, logs, lumber, and any additional commodities defined by the 12 commissioner of the office of general services pursuant to subparagraph 13 (i) of paragraph g of this subdivision, but do not include recovered 14 fiber. 15 (iii) "Free, prior, and informed consent" means the principle that a 16 community has the right to give or withhold its consent to proposed 17 developments that may affect the land and waters it legally or customar- 18 ily owns, occupies, or otherwise uses, as described in the United 19 Nations Declaration on the Rights of Indigenous Peoples, the Indigenous 20 and Tribal Peoples Convention of 1989, also known as the International 21 Labor Organization Convention 169, and other international instruments. 22 "Free, prior, and informed consent" means informed, noncoercive negoti- 23 ations between investors, companies, or governments, and indigenous 24 peoples and local communities, prior to project development. 25 (iv) "Large contractor" means any contractor whose annual revenue, or 26 that of their parent company, is equal to or greater than one hundred 27 million dollars. 28 (v) "Point-of-origin" means the geographical location, as identified 29 by the smallest administrative unit of land, where a commodity was 30 grown, derived, harvested, reared, or produced. 31 (vi) "Recovered Fiber" means postconsumer fiber such as paper, paper- 32 board, and fibrous materials from retail stores, office buildings, 33 homes, and so forth, after having passed through their end usage, 34 including used corrugated boxes, old newspapers, old magazines, mixed 35 waste paper, tabulating cards, and used cordage, and all paper, paper- 36 board, and fibrous materials that enter and are collected from municipal 37 solid waste; and manufacturing wastes such as dry paper and paperboard 38 waste generated after completion of the papermaking process, including 39 envelope cuttings, bindery trimmings, and other paper and paperboard 40 waste resulting from printing, cutting, forming, and other converting 41 operations, bag, box, and carton manufacturing wastes, and butt rolls, 42 mill wrappers, and rejected unused stock, and repulped finished paper 43 and paperboard from obsolete inventories of paper and paperboard 44 manufacturers, merchants, wholesalers, dealers, printers, converters, 45 and others. 46 (vii) "Tropical deforestation" means direct human-induced conversion 47 of tropical forest to agriculture, a tree plantation, or other non-for- 48 est land use. 49 (viii) "Tropical primary forest degradation" means severe and 50 sustained degradation of a tropical forest resulting in significant 51 primary forest loss and/or a profound change in species composition, 52 structure, or ecological function of that forest. 53 (ix) "Primary forest" means a forest that has never been industrially 54 logged and has developed following natural disturbances and under 55 natural processes, regardless of its age. Primary forests include 56 forests that have experienced non-industrial-scale human impacts,A. 5682 9 1 including traditional or subsistence activities carried out by indige- 2 nous communities. 3 (x) "New York state products" means products that are grown, 4 harvested, or produced in this state, or processed inside or outside 5 this state comprising over fifty-one percent raw materials grown, 6 harvested, or produced in this state, by weight or volume. 7 (xi) "Small business" means small business as defined in section one 8 hundred thirty-one of the economic development law. 9 (xii) "Medium-sized business" shall mean a business that is resident 10 in this state, independently owned and operated, not dominant in its 11 field, and employs between one hundred and five hundred persons. 12 (xiii) "Minority-owned business enterprise" shall have the same mean- 13 ing as in article fifteen-A of the executive law. 14 (xiv) "Women-owned business enterprise" shall have the same meaning as 15 in article fifteen-A of the executive law. 16 b. (i) Every contract entered into by a state agency or authority that 17 includes the procurement of any product comprised wholly or in part of a 18 tropical forest-risk commodity shall require that the contractor certify 19 that the commodity furnished to the state pursuant to the contract was 20 not extracted from, grown, derived, harvested, reared, or produced on 21 land where tropical deforestation or tropical primary forest degradation 22 occurred on or after January first, two thousand twenty-three. The 23 contractor shall agree to comply with this provision of the contract. 24 (ii) The contract shall specify that the contractor is required to 25 cooperate fully in providing reasonable access to the contractor's 26 records, documents, agents, employees, or premises if reasonably 27 required by authorized officials of the contracting agency or authority, 28 the office of general services, the office of the attorney general, or 29 the department of environmental conservation, to determine the contrac- 30 tor's compliance with the requirements under subparagraph (i) of this 31 paragraph. 32 (iii) Contractors shall exercise due diligence in ensuring that their 33 subcontractors comply with the requirements under subparagraph (i) of 34 this paragraph. Contractors shall require each subcontractor to certify 35 that the subcontractor is in compliance with the requirements of subpar- 36 agraph (i) of this paragraph. 37 (iv) In addition to the requirements of subparagraphs (i), (ii) and 38 (iii) of this paragraph, large contractors subject to subparagraph (i) 39 of this paragraph must certify that they have adopted a tropical forest 40 policy that complies with regulations issued pursuant to subparagraph 41 (vii) of paragraph g of this subdivision. The adoption of a tropical 42 forest policy by a contractor, subcontractor, or supplier that is not a 43 large contractor is not required by this subparagraph but may be used to 44 demonstrate compliance with subparagraph (i) of this paragraph. Such 45 tropical forest policy and all corresponding data shall be made publicly 46 available, and shall contain at a minimum all of the following: 47 A. Due diligence measures to identify the point-of-origin of tropical 48 forest-risk commodities and ensure compliance with the policy where 49 supply chain risks are present. 50 B. Data detailing the complete list of direct and indirect suppliers 51 and supply chain traceability information, including refineries, proc- 52 essing plants, farms, and plantations, and their respective owners, 53 parent companies, and farmers, maps, and geo-locations, for each trop- 54 ical forest-risk commodity found in products that may be furnished to 55 the state.A. 5682 10 1 C. Measures taken to ensure the product does not contribute to trop- 2 ical deforestation or tropical primary forest degradation, including: 3 (1) no development in tropical primary forests, and that the product 4 does not originate from a site where commodity production has replaced 5 tropical primary forests after January first, two thousand twenty-three; 6 (2) no development of High Carbon Stock (HCS) Forests; 7 (3) no development of High Conservation Value (HCV) Areas; 8 (4) no burning; 9 (5) efforts to ensure progressive reductions of greenhouse gas emis- 10 sions on existing plantations; 11 (6) no development on peat, regardless of depth; 12 (7) best management practices for existing plantations on peat; and 13 (8) where feasible, activities oriented towards peat restoration. 14 D. Measures taken to prevent exploitation and redress grievances of 15 workers and local communities, including: 16 (1) Respect for and recognition of the rights of all workers including 17 contract, temporary, and migrant workers. 18 (2) Respect for and recognition of land tenure rights of communities. 19 (3) Respect for the rights of indigenous and local communities to give 20 or withhold their free, prior, and informed consent to operations on 21 lands to which they hold legal, communal, or customary rights. 22 (4) Explicit policies and processes to prevent violence, intimidation, 23 and coercion of workers and local communities. 24 (5) Formal, open, transparent, and consultative processes to address 25 and redress all complaints and conflicts. 26 E. Measures taken to protect biodiversity and prevent the poaching of 27 endangered species in all operations and adjacent areas. 28 F. Measures taken to ensure compliance with the laws of countries 29 where tropical forest-risk commodities in a company's supply chain were 30 produced. 31 G. Measures to deter violence, threats, and harassment against envi- 32 ronmental human rights defenders (EHRDs), including respecting interna- 33 tionally recognized human rights standards, and educating employees, 34 contractors, and partners on the rights of EHRDs to express their views, 35 conduct peaceful protests, and criticize practices without intimidation 36 or retaliation. 37 (v) The provisions of subparagraph (i) of this paragraph shall not 38 apply when the inclusion or application of such provisions will violate 39 or be inconsistent with the terms or conditions of a grant, subvention 40 or contract with an agency of the United States or the instructions of 41 an authorized representative of any such agency with respect to any such 42 grant, subvention or contract. 43 c. (i) If it is determined that any contractor contracting with the 44 state knew or should have known that a product comprised wholly or in 45 part of a tropical forest-risk commodity was furnished to the state in 46 violation of paragraph b of this subdivision, the contracting agency or 47 authority shall issue a written notice of violation and provide an 48 opportunity for such contractor to come into compliance. If, after such 49 notice, a contractor fails to come into compliance within a timeframe 50 established by the department, such contractor may, subject to subpara- 51 graph (ii) of paragraph b of this subdivision, have either or both of 52 the following sanctions imposed: 53 A. The contract under which the prohibited tropical forest-risk 54 commodity was furnished may be voided at the option of the state agency 55 or authority to which the commodity was furnished.A. 5682 11 1 B. The contractor may be assessed a penalty that shall be the greater 2 of one thousand dollars or an amount equaling twenty percent of the 3 value of the product that the state agency or authority demonstrates was 4 comprised wholly or in part of a tropical forest-risk commodity and 5 furnished to the state in violation of paragraph b of this subdivision. 6 A hearing or opportunity to be heard shall be provided prior to the 7 assessment of any penalty. 8 (ii) Notwithstanding subparagraph (i) of this paragraph, a contractor 9 that has complied with the provisions of subparagraph (iii) of paragraph 10 b of this subdivision shall not be subject to sanctions for violations, 11 of which the contractor had no knowledge, of the requirements of para- 12 graph b of this subdivision that were committed solely by a subcontrac- 13 tor. Sanctions described under subparagraph (i) of this paragraph shall 14 instead be imposed against the subcontractor that committed the 15 violation. 16 d. (i) Any state agency or authority that investigates a complaint 17 against a contractor or subcontractor for violation of this subdivision 18 may limit its investigation to evaluating the information provided by 19 the person or entity submitting the complaint and the information 20 provided by the contractor or subcontractor. 21 (ii) Whenever a contracting officer of the contracting agency or 22 authority has reason to believe that the contractor failed to comply 23 with paragraph b of this subdivision, the agency or authority shall 24 refer the matter for investigation to the head of the agency or authori- 25 ty and, as the head of the agency or authority determines appropriate, 26 to either the office of general services, the office of the attorney 27 general, or the department of environmental conservation. 28 e. (i) When a state agency or authority's contract for the purchase of 29 a commodity or product covered by this subdivision is to be awarded to 30 the lowest responsible bidder, an otherwise qualified bidder who is a 31 small or medium-sized business or a minority or women-owned business 32 enterprise, or who will fulfill the contract through the use of New York 33 state products, may be given preference over other bidders, provided 34 that the cost included in the bid is not more than ten percent greater 35 than the cost included in a bid that is not from a small or medium-sized 36 business or a minority or women-owned business enterprise or fulfilled 37 through the use of New York state products. 38 (ii) The provisions of this paragraph shall not apply if the head of 39 the contracting state agency or authority purchasing such products, in 40 his or her sole discretion, determines that giving preference to bidders 41 pursuant to the provisions of this paragraph would be: 42 (a) against the public interest; 43 (b) would increase the cost of the contract by an unreasonable amount; 44 or 45 (c) New York state products cannot be obtained in sufficient and 46 reasonable available quantities and of satisfactory quality to meet the 47 contracting state agency or authority's requirements. 48 (iii) Nothing in this paragraph shall be construed to conflict with or 49 otherwise limit the goals and requirements set forth by section one 50 hundred sixty-two of this article and articles fifteen-A and seventeen-B 51 of the executive law. 52 f. (i) The commissioner of the office of general services shall 53 convene a stakeholder advisory group which shall be consulted on the 54 creation of regulations pursuant to paragraph g of this subdivision. 55 Members of the advisory group shall be selected by the commissioner and 56 shall consist of at least:A. 5682 12 1 (A) representatives of current or former state contractors dealing in 2 each of the tropical forest-risk commodities specified in subparagraph 3 (ii) of paragraph a of this subdivision, with an emphasis on small and 4 medium-sized businesses; 5 (B) representatives from civil society with relevant expertise in 6 supply chain traceability, tropical forest sustainability, biodiversity, 7 climate science, human and labor rights, and indigenous rights. Members 8 selected pursuant to this clause should be of at least equal number to 9 members selected pursuant to clause (A) of this subparagraph; and 10 (C) a minimum of two additional representatives from indigenous commu- 11 nities within the geographic areas containing tropical forests covered 12 by this subdivision. 13 (ii) Members of the stakeholder advisory group shall receive no sala- 14 ry, but shall be reimbursed by the office of general services for any 15 necessary travel expenses related to participating in the stakeholder 16 advisory group. 17 g. On or before July first, two thousand twenty-four, the office of 18 general services shall issue regulations for the implementation of this 19 subdivision. Such regulations shall be developed in consultation with 20 the stakeholder advisory group established in paragraph f of this subdi- 21 vision and the commissioner of the department of environmental conser- 22 vation. Such regulations shall include, but not be limited to, all of 23 the following: 24 (i) A list of tropical forest-risk commodities subject to the require- 25 ments of this subdivision, including, but not limited to, palm oil, soy, 26 beef, coffee, cocoa, wood pulp, paper, logs, and lumber. The list shall 27 be reviewed and updated at least every three years. When evaluating 28 inclusion of additional commodities in the list, the commissioner of the 29 office of general services shall consider the impact of the commodity as 30 a driver of tropical deforestation or tropical primary forest degrada- 31 tion, the state of existing supply chain transparency and traceability 32 systems for the commodity, and the feasibility of including the commod- 33 ity in the requirements of paragraph b of this subdivision. The first 34 review shall include, but not be limited to evaluation of rubber, leath- 35 er and other cattle-derived products, and mining products including 36 coal, iron, copper, gold, tin, diamonds, manganese, bauxite and nickel. 37 (ii) A list of products derived wholly or in part from tropical 38 forest-risk commodities. 39 (iii) A list of products furnished to the state or used by state 40 contractors in high-volume purchases that contain or are comprised whol- 41 ly or in part of tropical forest-risk commodities. 42 (iv) A set of responsible sourcing guidelines and policies derived 43 from best practices in supply chain transparency to the point-of-origin. 44 (v) Guidance to assist contractors in identifying tropical forest-risk 45 commodities in their supply chain, performing necessary due diligence to 46 meet the requirements of this subdivision, and certifying that the 47 commodity did not contribute to tropical deforestation or tropical 48 primary forest degradation. 49 (vi) A list of favored suppliers of tropical forest-risk commodities 50 and products derived therefrom whose products have been determined to 51 meet the requirements of this subdivision. 52 (vii) The full set of requirements for a large contractor's tropical 53 forest policy pursuant to subparagraph (iv) of paragraph b of this 54 subdivision.A. 5682 13 1 (viii) The process through which contractors shall certify to the 2 office of general services that they are in compliance with paragraph b 3 of this subdivision. 4 (ix) A process for ensuring that details of certified contracts are 5 made available for public inspection on the website of the office of 6 general services. 7 (x) An easily accessible procedure to receive public complaints and 8 information regarding violations of this subdivision. 9 h. (i) The certification requirements set forth in this subdivision 10 shall not apply to a credit card purchase of goods of two thousand five 11 hundred dollars or less. 12 (ii) The total amount of goods exempted pursuant to subparagraph (i) 13 of this paragraph shall not exceed seven thousand five hundred dollars 14 per year for each contractor from which a state agency or authority is 15 purchasing goods by credit card. It shall be the responsibility of each 16 state agency to monitor the use of this exemption and adhere to these 17 restrictions on these purchases. 18 i. This subdivision shall apply to all contracts entered into, 19 extended, or renewed on or after January first, two thousand twenty- 20 five. 21 j. Commencing two years after the effective date of this subdivision 22 and biennially thereafter, the commissioner of the office of general 23 services shall issue a report to the governor, the temporary president 24 of the senate, and the speaker of the assembly, on the implementation of 25 this subdivision and subdivisions one and two of this section. 26 § 6. The economic development law is amended by adding a new article 27 27 to read as follows: 28 ARTICLE 27 29 SUPPLY CHAIN TRANSPARENCY ASSISTANCE PROGRAM 30 Section 490. Definitions. 31 491. The supply chain transparency assistance program. 32 § 490. Definitions. For purposes of this article: 33 1. "Small business" means a small business as defined in section one 34 hundred thirty-one of this chapter. 35 2. "Medium-sized business" shall mean a business that is resident in 36 this state, independently owned and operated, not dominant in its field, 37 and employs between one hundred and five hundred persons. 38 3. "Eligible business" shall mean any small and medium-sized business 39 as defined in this article, and any minority or women-owned business 40 enterprise as defined in article fifteen-A of the executive law. 41 4. "Supply chain" shall mean a system of extraction, production, 42 transportation, and distribution involving multiple processes, organiza- 43 tions, individuals, and resources, beginning with raw materials and 44 culminating in the delivery of a product or service to a consumer. 45 § 491. The supply chain transparency assistance program. 1. The 46 department is hereby authorized and directed, within one year of the 47 effective date of this article, to establish, develop, implement, and 48 maintain, within available appropriations, a supply chain transparency 49 assistance program to assist small and medium-sized businesses and 50 minority and women-owned businesses in achieving supply chains that are: 51 (a) Transparent, meaning a supply chain for which sufficient informa- 52 tion has been disclosed regarding all relevant units of production from 53 the raw material stage to the delivery of a product or service to a 54 consumer, including, but not limited to, extraction sites, suppliers, 55 manufacturers, transporters, wholesalers, and retailers, to allowA. 5682 14 1 consumers to determine whether the supply chain is ethical and sustaina- 2 ble. 3 (b) Traceable, meaning a supply chain for which distributors, retail- 4 ers, and other businesses down the supply chain are able to gather 5 sufficient and relevant information regarding all units of production 6 further up the supply chain to determine whether a supply chain is 7 ethical and sustainable. 8 (c) Ethical, meaning a supply chain that upholds the human rights and 9 all other legal rights, supports the well-being, and prevents the 10 exploitation, of workers and communities, and guarantees the free, 11 prior, and informed consent, land, and other legal rights of affected 12 indigenous peoples and other local and traditional communities. 13 (d) Sustainable, meaning a supply chain that takes all necessary meas- 14 ures to avoid, minimize, and reduce degradation of natural environmental 15 systems, and maximizes efforts to contribute to the restoration and 16 regeneration of impacted ecosystems. 17 2. The purpose of such program shall be to: 18 (a) Develop and share best practices and provide technical assistance 19 to help participating eligible businesses develop and implement stand- 20 ards, plans, and benchmarks for transparency and traceability, environ- 21 mental sustainability, and ethical practices throughout their supply 22 chains. 23 (b) Assist participating eligible businesses with compliance with 24 supply chain related regulations, procurement standards, or contracting 25 requirements. 26 (c) Identify funding streams, grant monies, financial assistance and 27 other resources that may be available to help participating eligible 28 businesses achieve transparent, traceable, ethical, and sustainable 29 supply chains. 30 (d) Help participating eligible businesses with marketing, communi- 31 cation, and other activities to achieve maximum competitive advantage 32 from their transparent, traceable, ethical, and sustainable supply 33 chains. 34 (e) Conduct market analysis to identify opportunities for participat- 35 ing eligible businesses to access new markets and increase competitive- 36 ness through achieving transparent, traceable, ethical, and sustainable 37 supply chains. 38 (f) Conduct outreach to promote awareness of the program among eligi- 39 ble businesses, business organizations, and regional and local economic 40 development agencies. 41 § 7. This act shall take effect immediately and shall apply to all 42 contracts and binding contractual obligations entered into on and after 43 such effective date.
