Bill Text: NY S04859 | 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 20-0)
Status: (Vetoed) 2023-12-22 - VETOED MEMO.135 [S04859 Detail]
Download: New_York-2023-S04859-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 4859--A 2023-2024 Regular Sessions IN SENATE February 16, 2023 ___________ Introduced by Sens. KRUEGER, COONEY, MAY, BRESLIN, BRISPORT, CHU, CLEARE, COMRIE, FERNANDEZ, HARCKHAM, HINCHEY, HOYLMAN-SIGAL, JACKSON, SALAZAR, SANDERS, SEPULVEDA, SERRANO, SKOUFIS, STAVISKY -- read twice and ordered printed, and when printed to be committed to the Committee on Procurement and Contracts -- reported favorably from said committee and committed to the Committee on Finance -- 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- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07504-04-3S. 4859--A 2 1 tion according to the Food and Agriculture Organization of the United 2 Nations, with over one-half of Earth's tropical forests already gone. At 3 the current pace, the entirety of Earth's tropical rainforests will be 4 degraded or destroyed within the next 100 years. 5 4. It has been estimated that at least 30 percent of the world's 6 greenhouse gas emissions come from deforestation and forest degradation. 7 Taking into account carbon sequestration potential, stopping the loss of 8 tropical forests, mangroves, and wetlands could provide over 20 percent 9 of climate mitigation by 2030. 10 5. Loss of biodiversity resulting from forest degradation and defores- 11 tation, as well as human encroachment on formerly undisturbed ecosys- 12 tems, increases the risks of zoonotic disease pandemics such as COVID- 13 19. 14 6. New York state is a leader in addressing the climate crisis, with a 15 statutory goal of achieving net-zero greenhouse gas emissions economy- 16 wide by 2050. 17 7. Tropical deforestation in many countries is closely associated with 18 violations of the land rights of indigenous peoples and local communi- 19 ties and with the exploitation of workers, including forced labor and 20 child labor, and in many cases is enabled by corruption, criminality, 21 and violence against conservationists and land defenders. 22 8. Tropical deforestation in many countries is also closely associated 23 with illegal wildlife trafficking, including, but not limited to, vari- 24 ous bird and reptile species, and many primate species, including great 25 apes, pangolins, and orangutans, as well as many tree and plant species, 26 including mahoganies, rosewoods, ebony, and ipe, all of which have 27 recently been listed on the Convention of International Trade in Endan- 28 gered Species of Fauna and Flora (CITES). 29 9. The primary factors leading to tropical deforestation are degrada- 30 tion and road-building associated with logging for timber, which opens 31 the door for deforestation caused by industrial-scale production of 32 agricultural commodities and conversion of forests into plantations for 33 the timber, pulp, paper, palm oil, soy, and livestock industries, among 34 others. Together, these are increasingly known as "forest-risk commod- 35 ities". 36 10. New York is inadvertently promoting and sanctioning deforestation 37 and primary forest degradation through the purchase of goods and 38 products that have been produced in supply chains that contribute to 39 tropical deforestation and tropical primary forest degradation. 40 11. New York has one of the largest economies in the world and its 41 purchasing power has significant market force, allowing it to play a 42 leadership role in preventing forest loss and supporting markets for 43 sustainably-sourced products. 44 12. It is the intent of the legislature that it be the policy of this 45 state to ensure companies contracting with the state are not contribut- 46 ing to tropical deforestation or tropical primary forest degradation 47 directly or through their supply chains. 48 § 3. Paragraphs b, c, d and e of subdivision 1 of section 165 of the 49 state finance law, as added by chapter 83 of the laws of 1995, are 50 amended to read as follows: 51 b. "Tropical hardwood" shall mean any and all hardwood, scientifically 52 classified as angiosperm, that grows in any tropical [moist] forest. 53 Tropical hardwoods shall [be] include but not be limited to the follow- 54 ing species: 55 Scientific Name Examples of Common [Name] 56 NamesS. 4859--A 3 1 Prunus africana African cherry, Red stinkwood 2 Caryocar costaricense Ajo, Aji 3 Calophyllum spp. Bintangor 4 Cedrela spp. Cedar 5 Neobalanocarpus heimii, Chengal 6 Balanocarpus heimii 7 Octomeles sumatrana Miq. Erima, benuang 8 Myroxylon balsamum Estoraque 9 Apuleia leiocarpa Garapa 10 Parastemon urophyllus, Parastemon Malas 11 spicatus Ridley 12 Hopea spp. Merawan 13 Araucaria araucana Monkey Puzzle, Chilean pine 14 Pterocarpus tinctorius Mukula 15 Senna siamea Siamese senna 16 Pometia pinata Taun 17 Milletia leucantha Kurz Thinwin 18 Bulnesia arborea, Bulnesia Verawood, Argentine lignum 19 sarmientoi vitae 20 Tristaniopsis laurina Water gum 21 Terminalia spp. 22 Homalium foetidum Malas 23 Dillenia papuana Dillenia 24 Canarium spp. Red Canarium, Grey Canarium 25 Burkrella macropoda Rang rang 26 Octomeles sumatrana Erima, Benuang 27 Dracontomelon dao New Guinea walnut 28 Planchonella spp. White Planchonella, Red 29 Planchonella 30 Lophopetalum spp. Perupok 31 Carinian pyriformis Abarco, Jequitiba 32 Mitragyna ciliate Abura 33 Vouacapous americana Acapu 34 Amburana caerensis Amburana, Cerejeira 35 Dalbergia melanoxylon African Blackwood 36 Lovoa spp. African Walnut, Tigerwood 37 Pericopsis elata [Afrormosis] Afrormosia 38 [Shorea almon] [Almon] 39 Aspidosperma megalocarpon Acaretto 40 Peltogyne spp. Amaranth, purpleheart 41 Terminalia amazonia Amarillo Real 42 [Guibourtis] Guibourtia ehie Amazaque 43 Amburana cearensis Amburana, Cerejeira, cumare 44 Pterogyne nitens Amendoim 45 Carapa guianensis Andiroba, False Mahogany 46 Dicorynia guianensis Angilique Cris 47 [Aningeris] Aningeria spp. Aningeria, anegre, 48 anigre 49 Dipterocarpus [grandiflorus] [Apilong] Apitong, Keruing 50 spp. 51 Centrolobium spp. Arariba, Amarillo 52 Brosimum utile Baco 53 Shorea spp. Balau, Selangan batu 54 Ochroma lagopus Balsa 55 Ochroma pyramidale Balsa 56 Myroxylon balsamum BalsamoS. 4859--A 4 1 [Virola spp.] [Banak] 2 Anisoptera thurifera Bella [Rose] Rosa 3 [Guibourtis] Guibourtia arnoldiana 4 Benge, Mutenye 5 Berlinia spp. Berlinia, Rose Zebrano 6 Symphonia globulifera Boar Wood 7 Deterium [Senegalese] senegalese Boire 8 Caesalpinia echintata, Brazilwood, Pernambuco 9 Paubrasilia eschinata 10 Bertholletia excels Brazil Tree 11 Brosimum alicastrum Breadnut 12 Guilbourtia spp. Bubinga, African 13 (G. demusei, G. pellegriniana, Rosewood, Kevazingo 14 G. tessmannii) 15 Toona calantas, Cedrela calantas Calantas, Kalantas 16 Priora copaifera Cativo 17 Cedrela odorata, Cedrela fissilis Cedro, Cedar, Spanish cedar, 18 South American cedar 19 Ceiba pentandra Ceiba 20 Antiaris africana Chenchen, Antiaris 21 Couratari guianensis Coco Blanco 22 [Dalbergis] Dalbergia 23 retusa [Concobola] Cocobolo, 24 Granadillo 25 Tabebuia donnell-smithii Copal 26 Daniellia spp. Copal, Daniellia 27 Cordia spp. Cordia, Bocote, Ziricote, Louro 28 Hymenaea courbaril Courbaril, West Indian Locust 29 Dipteryx odorata Cumaru 30 Piptadeniastrum africanum Dahoma, Banzu 31 Calycophyllum candidissimum Degame, Legame Lancewood, 32 Lemonwood 33 Afzelia spp. Doussie, Lingue 34 [Diospyros] Diospyrus spp. Ebony, Macassar 35 ebony, 36 Ceylon ebony 37 Lophira alata Ekki, Azobe, Bangassi, Akoura, 38 Red Ironwood 39 Combretodendron macrocarpum Esia, Essia 40 Cordia goeldiana Freijo, Cordia Wood 41 Chlorophora tinctoria Fustic, Yellow Wood, Tatajuba 42 [Aucoumes] Aucoumea klaineana Gaboon, Okoume 43 Astronium spp. Goncalo Alves, Zebrawood, 44 Tigerwood 45 Ocotea rodiaei Greenheart 46 Enterolobium cyclocarpum Guanacaste, Rain Tree, 47 Elephant Ear 48 Guarea spp. Guarea, Bosse 49 Terminalia ivorensis Idigbo, Framire, Black Afara 50 Phoebe porosa Imbuia, Imbuya, Embuia, 51 Brazilian Walnut 52 Handroanthus spp. Ipe, Brazilian walnut, 53 bethabarra, Pau d'arco, 54 Ironwood, Lapacho 55 Chlorophors excelsa IrokoS. 4859--A 5 1 Hymenaea courbaril Jatoba, "Brazilian Cherry" 2 Jacaranda copaia Jacaranda 3 Machaerium villosum Jacaranda Pardo 4 Dyera costulata Jelutong 5 Dryobalanops spp. Kapur, Keladan 6 Koompassia malaccensis Kempas, Impas 7 Acacia koa Koa 8 [Entandrophragm a] Entandrophragma cKosipo,iOmu 9 Pterygota macrocarpa Koto, African Pterygota, Ware 10 Oxandra lanceolate Lancewood 11 Shorea spp. [negrosensis] [Red] Lauan, Luan, 12 Lawaan, Meranti, White 13 meranti, yellow meranti, dark 14 red meranti, light red meranti, 15 Seraya, Tanguile, Bang, 16 Philippine Mahogany 17 [Pentacme contorta] [White Lauan] 18 [Shores ploysprma] [Tanguile] 19 Nothofagus pumilio Lenga 20 Guaiacum officinale Lignum Vitae, Guayacan, 21 Ironwood 22 Terminalia superba Limba, Afara, Ofram 23 [Aniba duckei] Aniba rosedora [Louro] Brazilian 24 rosewood, pau rosa, bois 25 de rose 26 Nectandra spp. Louro Preto 27 [Kyaya ivorensis] Khaya spp. [Africa] African 28 Mahogany 29 [Swletenia macrophylla] [Amer. Mahogany] 30 Swietenia spp. American Mahogany, West Indian 31 Mahogany, Central American 32 Mahogany, Honduran Mahogany, 33 South American Mahogany, 34 Mexican Mahogany, Bigleaf 35 Mahogany, Little Leaf 36 Mahogany, Acajou, Caoba 37 Mogno 38 Tieghemella [leckellii] heckelii [Makora] 39 Makore, 40 Baku 41 Diospyros marmorata Marblewood, Zebrawood 42 Intsia bijuga, Intsia palembanica Merbau, Ipil, Kwila 43 Anisoptera spp. Mersawa, Krabak, Palosapis 44 Mora excelsa Mora 45 Distemonanthus benthamianus Movingui, Ayan 46 Terminalia amazonia Nargusta 47 Pterocarpus spp. Narra, Ambyna, Papua New Guinea 48 Rosewood, Red Sanders, Mukula, 49 Kosso, zitan, Hongmu 50 Palaquium spp. Nyatoh, Padang, Pencil Cedar 51 Triplochiton scleroxylon Obeche, Samba 52 Nauclea diderrichii Opepe, Sibo 53 Pterocarpus [soyauxii] spp. [African] Padauk, 54 Vermillion Wood 55 [Pterocarpus angolensis] [Angola Padauk]S. 4859--A 6 1 Millettia stuhlmannii Panga Panga 2 Balfourodendron riedelianum Pau Marfim 3 Aspidosperma spp. Peroba, Rosa 4 Paratecoma peroba Peroba Branca 5 Dalbergia frutescens, D. tomentosa Pinkwood, Brazilia Tulipwood 6 Tabebuia donnell-smithii Prima Vera, Roble, Durango 7 Peltogyne spp. Purpleheart 8 Gonystylus spp. Ramin 9 Melanorrhoea curtisii Rengas, Borneo Rosewood 10 Nothofagus obliqua Roble 11 Hevea brasiliensis Rubberwood 12 Dalbergia spp. Rosewood, Indian Rosewood, 13 Honduras Rosewood, cocobolo, 14 granadillo 15 Aniba duckei Brazilian Rosewood 16 [Entandrophragm a] Entandrophragma 17 cylindricum [Sapela] Sapele, Sapelli 18 Acanthopanax ricinofolius Sen, Castor Arabia 19 Brosimum aubletti, Piratinera Snakewood, Letterwood, Leopard 20 guianensis Wood 21 [Shores phillippinensis] [Sonora] 22 Juglans spp. (juglans South American Walnut, Peruvian 23 australis, J. neotropica, Walnut, Tropical Walnut 24 J. Olanchana, etc.) 25 Sterculia rhinopetala Sterculia 26 Bagassa guianensis Tatajuba, Bagasse 27 Tectona grandis Teak 28 Lovoa trichilloides Tigerwood 29 Entandrophragma utile Utile, Sipo 30 Virola spp. Virola, Cumala, Banak, Tapsava 31 Milletia laurentii Wenge 32 Pentacme contorta White Lauan 33 Microberlinia [brazzavillensis] Zebrawood, 34 spp. Zebrano, Zingana 35 c. "Tropical [rain] forests" shall mean [any and all forests classi-36fied by the scientific term "Tropical moist forests", the classification37determined by the equatorial region of the forest and average rainfall] 38 a natural ecosystem within the tropical regions, approximately bounded 39 geographically by the tropics of Cancer and Capricorn, but possibly 40 affected by other factors such as prevailing winds, containing native 41 species composition, structure, and ecological function, with a tree 42 canopy cover of more than ten percent over an area of at least 0.5 43 hectares. "Tropical forests" shall include all of the following: (i) 44 human-managed tropical forests or partially degraded tropical forests 45 that are regenerating; and (ii) tropical forests identified by multi-ob- 46 jective conservation based assessment methodologies, such as High 47 Conservation Value (HCV) areas, as defined by the HCV Resource Network, 48 or High Carbon Stock forests, as defined by the High Carbon Stock 49 Approach, or by another methodology with equivalent or higher standards 50 that includes primary forests and tropical peatlands of any depth. 51 "Tropical forests" shall not include tree plantations of any type. 52 d. "Tropical hardwood products" shall mean any wood products, whole- 53 sale or retail, in any form, including but not limited to plywood, 54 veneer, furniture, cabinets, paneling, siding, moldings, doors, doors-S. 4859--A 7 1 kins, joinery, flooring or sawnwood, which are composed, in whole or in 2 part, of tropical hardwood [except plywood]. 3 e. "Peat" means a soil that is rich in organic matter composed of 4 partially decomposed plant materials equal to or greater than 40 centi- 5 meters of the top 100 centimeters of the soil. 6 f. "Tropical peatlands" means wetlands with a layer of peat made up of 7 dead and decaying plant material. Tropical peatlands includes moors, 8 bogs, mires, and peat swamp forests. 9 g. "Secondary materials" means any material recovered from or other- 10 wise destined for the waste stream, including, but not limited to, post- 11 consumer material, industrial scrap material and overstock or obsolete 12 inventories from distributors, wholesalers and other companies but such 13 term does not include those materials and by-products generated from, 14 and commonly reused within, an original manufacturing process. 15 § 4. Paragraphs b and d of subdivision 2 of section 165 of the state 16 finance law, as added by chapter 83 of the laws of 1995, are amended to 17 read as follows: 18 b. The provisions of paragraph a of this subdivision shall not apply 19 to: 20 (i) [Any hardwoods purchased from a sustained, managed forest; or21(ii)] Any binding contractual obligations for purchase of commodities 22 entered into prior to August twenty-fifth, nineteen hundred ninety-one; 23 or 24 [(iii) The purchase of any tropical hardwood or tropical hardwood25product for which there is no acceptable non-tropical hardwood species;26or27(iv) Where the contracting officer finds that no person or entity28doing business in the state is capable of providing acceptable non-trop-29ical hardwood species sufficient to meet the particular contract30requirements; or31(v)] (ii) Where the inclusion or application of such provisions will 32 violate or be inconsistent with the terms or conditions of a grant, 33 subvention or contract in an agency of the United States or the 34 instructions of an authorized representative of any such agency with 35 respect to any such grant, subvention or contract[; or36(vi) Where inclusion or application of such provisions results in a37substantial cost increase to the state, government agency, political38subdivision, public corporation or public benefit corporation]. 39 d. The provisions of paragraph c of this subdivision shall not apply: 40 (i) To bid packages advertised and made available to the public or any 41 competitive and sealed bids received or entered into prior to August 42 twenty-fifth, nineteen hundred ninety-one; or 43 (ii) To any amendment, modification or renewal of a contract, which 44 contract was entered into prior to August twenty-fifth, nineteen hundred 45 ninety-one, where such application would delay timely completion of a 46 project or involve an increase in the total monies to be paid under that 47 contract; or 48 (iii) Where the contracting officer finds that[:49(A) No person or entity doing business in the state is capable of50performing the contract using acceptable non-tropical hardwood species;51or52(B) The] the inclusion or application of such provisions will violate 53 or be inconsistent with the terms or conditions of a grant, subvention 54 or contract with an agency of the United States or the instructions of 55 an authorized representative of any such agency with respect to any such 56 grant, subvention or contract[; orS. 4859--A 8 1(C) The use of tropical woods is deemed necessary for purposes of2historical restoration and there exists no available acceptable non-3tropical wood species]. 4 § 5. Section 165 of the state finance law is amended by adding a new 5 subdivision 9 to read as follows: 6 9. Tropical deforestation-free procurement. a. For purposes of this 7 subdivision, the following definitions shall apply: 8 (i) "Contractor" means any person or entity that has a contract with a 9 state agency or state authority for public works or improvements to be 10 performed, for a franchise, concession or lease of property, for grant 11 monies or goods and services or supplies to be purchased at the expense 12 of the agency or authority or to be paid out of monies deposited in the 13 treasury or out of trust monies under the control or collected by the 14 agency or authority. 15 (ii) "Tropical forest-risk commodity" means any commodity and its 16 derived products, including agricultural and non-agricultural commod- 17 ities but excluding tropical hardwood and tropical hardwood products 18 covered by subdivisions one and two of this section, whether in raw or 19 processed form, that is commonly extracted from, or grown, derived, 20 harvested, reared, or produced on land where tropical deforestation or 21 tropical primary forest degradation has occurred or is likely to occur. 22 Tropical forest-risk commodities include palm oil, soy, beef, coffee, 23 cocoa, wood pulp, paper and any additional commodities defined by the 24 commissioner of the office of general services pursuant to subparagraph 25 (i) of paragraph g of this subdivision, but do not include recovered 26 fiber. 27 (iii) "Free, prior, and informed consent" means the principle that a 28 community has the right to give or withhold its consent to proposed 29 developments that may affect the land and waters it legally or customar- 30 ily owns, occupies, or otherwise uses, as described in the United 31 Nations Declaration on the Rights of Indigenous Peoples, the Indigenous 32 and Tribal Peoples Convention of 1989, also known as the International 33 Labor Organization Convention 169, and other international instruments. 34 "Free, prior, and informed consent" means informed, noncoercive negoti- 35 ations between investors, companies, or governments, and indigenous 36 peoples and local communities, prior to project development. 37 (iv) "Large contractor" means any contractor whose annual revenue, or 38 that of their parent company, is equal to or greater than one hundred 39 million dollars. 40 (v) "Point-of-origin" means the geographical location, as identified 41 by the smallest administrative unit of land, where a commodity was 42 grown, derived, harvested, reared, or produced. 43 (vi) "Recovered Fiber" means postconsumer fiber such as paper, paper- 44 board, and fibrous materials from retail stores, office buildings, 45 homes, and so forth, after having passed through their end usage, 46 including used corrugated boxes, old newspapers, old magazines, mixed 47 waste paper, tabulating cards, and used cordage, and all paper, paper- 48 board, and fibrous materials that enter and are collected from municipal 49 solid waste; and manufacturing wastes such as dry paper and paperboard 50 waste generated after completion of the papermaking process, including 51 envelope cuttings, bindery trimmings, and other paper and paperboard 52 waste resulting from printing, cutting, forming, and other converting 53 operations, bag, box, and carton manufacturing wastes, and butt rolls, 54 mill wrappers, and rejected unused stock, and repulped finished paper 55 and paperboard from obsolete inventories of paper and paperboardS. 4859--A 9 1 manufacturers, merchants, wholesalers, dealers, printers, converters, 2 and others. 3 (vii) "Tree plantation" means an area of land predominantly composed 4 of trees established through planting and/or deliberate seeding, usually 5 by planting one or two species, for the purpose of producing and 6 harvesting a particular commodity. Tree plantation does not include 7 forest planted for ecosystem restoration. 8 (viii) "Tropical deforestation" means direct human-induced conversion 9 of tropical forest to agriculture, a tree plantation, or other non-for- 10 est land use. 11 (ix) "Tropical primary forest degradation" means direct human-induced 12 severe and sustained degradation of a tropical forest resulting in 13 significant primary forest loss and/or a profound change in species 14 composition, structure, or ecological function of that forest. 15 (x) "Primary forest" means a forest that has never been industrially 16 logged or harvested and has developed following natural disturbances and 17 under natural processes, regardless of its age. Primary forests include 18 forests that have experienced non-industrial-scale human impacts, 19 including traditional or subsistence activities carried out by indige- 20 nous communities. 21 (xi) "New York state products" means products that are grown, 22 harvested, or produced in this state, or processed inside or outside 23 this state comprising over fifty-one percent raw materials grown, 24 harvested, or produced in this state, by weight or volume. 25 (xii) "Small business" means small business as defined in section one 26 hundred thirty-one of the economic development law. 27 (xiii) "Medium-sized business" shall mean a business that is resident 28 in this state, independently owned and operated, not dominant in its 29 field, and employs between one hundred and five hundred persons. 30 (xiv) "Minority-owned business enterprise" shall have the same meaning 31 as in article fifteen-A of the executive law. 32 (xv) "Women-owned business enterprise" shall have the same meaning as 33 in article fifteen-A of the executive law. 34 b. (i) Every contract entered into by a state agency or authority that 35 includes the procurement of any product comprised wholly or in part of a 36 tropical forest-risk commodity shall require that the contractor certify 37 that the commodity furnished to the state pursuant to the contract was 38 not extracted from, grown, derived, harvested, reared, or produced on 39 land where tropical deforestation or tropical primary forest degradation 40 occurred on or after January first, two thousand twenty-three. The 41 contractor shall agree to comply with this provision of the contract. 42 (ii) The contract shall specify that the contractor is required to 43 cooperate fully in providing reasonable access to the contractor's 44 records, documents, agents, employees, or premises if reasonably 45 required by authorized officials of the contracting agency or authority, 46 the office of general services, the office of the attorney general, or 47 the department of environmental conservation, to determine the contrac- 48 tor's compliance with the requirements under subparagraph (i) of this 49 paragraph. 50 (iii) Contractors shall exercise due diligence in ensuring that their 51 subcontractors comply with the requirements under subparagraph (i) of 52 this paragraph. Contractors shall require each subcontractor to certify 53 that the subcontractor is in compliance with the requirements of subpar- 54 agraph (i) of this paragraph. 55 (iv) In addition to the requirements of subparagraphs (i), (ii) and 56 (iii) of this paragraph, large contractors subject to subparagraph (i)S. 4859--A 10 1 of this paragraph must certify that they have adopted a tropical forest 2 policy that complies with regulations issued pursuant to subparagraph 3 (vii) of paragraph g of this subdivision. The adoption of a tropical 4 forest policy by a contractor, subcontractor, or supplier that is not a 5 large contractor is not required by this subparagraph but may be used to 6 demonstrate compliance with subparagraph (i) of this paragraph. Such 7 tropical forest policy and all corresponding data shall be made publicly 8 available, and shall contain at a minimum all of the following: 9 A. Due diligence measures to identify the point-of-origin of tropical 10 forest-risk commodities and ensure compliance with the policy where 11 supply chain risks are present. 12 B. Data detailing the complete list of direct and indirect suppliers 13 and supply chain traceability information, including refineries, proc- 14 essing plants, farms, and plantations, and their respective owners, 15 parent companies, and farmers, maps, and geo-locations, for each trop- 16 ical forest-risk commodity found in products that may be furnished to 17 the state. 18 C. Measures taken to ensure the product does not contribute to trop- 19 ical deforestation or tropical primary forest degradation, including: 20 (1) no development in tropical primary forests, and that the product 21 does not originate from a site where commodity production has replaced 22 tropical primary forests after January first, two thousand twenty-three; 23 (2) no development of High Carbon Stock (HCS) Forests; 24 (3) no development of High Conservation Value (HCV) Areas; 25 (4) no burning; 26 (5) efforts to ensure progressive reductions of greenhouse gas emis- 27 sions on existing plantations; 28 (6) no development on peat, regardless of depth; 29 (7) best management practices for existing plantations on peat; and 30 (8) where feasible, activities oriented towards peat restoration. 31 D. Measures taken to prevent exploitation and redress grievances of 32 workers and local communities, including: 33 (1) Respect for and recognition of the rights of all workers including 34 contract, temporary, and migrant workers. 35 (2) Respect for and recognition of land tenure rights of communities. 36 (3) Respect for the rights of indigenous and local communities to give 37 or withhold their free, prior, and informed consent to operations on 38 lands to which they hold legal, communal, or customary rights. 39 (4) Explicit policies and processes to prevent violence, intimidation, 40 and coercion of workers and local communities. 41 (5) Formal, open, transparent, and consultative processes to address 42 and redress all complaints and conflicts. 43 E. Measures taken to protect biodiversity and prevent the poaching of 44 endangered species in all operations and adjacent areas. 45 F. Measures taken to ensure compliance with the laws of countries 46 where tropical forest-risk commodities in a company's supply chain were 47 produced. 48 G. Measures to deter violence, threats, and harassment against envi- 49 ronmental human rights defenders (EHRDs), including respecting interna- 50 tionally recognized human rights standards, and educating employees, 51 contractors, and partners on the rights of EHRDs to express their views, 52 conduct peaceful protests, and criticize practices without intimidation 53 or retaliation. 54 (v) The provisions of subparagraph (i) of this paragraph shall not 55 apply to primary, secondary, or tertiary packaging used for the purposeS. 4859--A 11 1 of containment, protection, handling, delivery, transport, distribution, 2 or presentation of a covered product. 3 (vi) The provisions of subparagraph (i) of this paragraph shall not 4 apply when the inclusion or application of such provisions will violate 5 or be inconsistent with the terms or conditions of a grant, subvention 6 or contract with an agency of the United States or the instructions of 7 an authorized representative of any such agency with respect to any such 8 grant, subvention or contract. 9 c. (i) If it is determined that any contractor contracting with the 10 state knew or should have known that a product comprised wholly or in 11 part of a tropical forest-risk commodity was furnished to the state in 12 violation of paragraph b of this subdivision, the contracting agency or 13 authority shall issue a written notice of violation and provide an 14 opportunity for such contractor to come into compliance. If, after such 15 notice, a contractor fails to come into compliance within a timeframe 16 established by the department, such contractor may, subject to subpara- 17 graph (ii) of paragraph b of this subdivision, have either or both of 18 the following sanctions imposed: 19 A. The contract under which the prohibited tropical forest-risk 20 commodity was furnished may be voided at the option of the state agency 21 or authority to which the commodity was furnished. 22 B. The contractor may be assessed a penalty that shall be the greater 23 of one thousand dollars or an amount equaling twenty percent of the 24 value of the product that the state agency or authority demonstrates was 25 comprised wholly or in part of a tropical forest-risk commodity and 26 furnished to the state in violation of paragraph b of this subdivision. 27 A hearing or opportunity to be heard shall be provided prior to the 28 assessment of any penalty. 29 (ii) Notwithstanding subparagraph (i) of this paragraph, a contractor 30 that has complied with the provisions of subparagraph (iii) of paragraph 31 b of this subdivision shall not be subject to sanctions for violations, 32 of which the contractor had no knowledge, of the requirements of para- 33 graph b of this subdivision that were committed solely by a subcontrac- 34 tor. Sanctions described under subparagraph (i) of this paragraph shall 35 instead be imposed against the subcontractor that committed the 36 violation. 37 d. (i) Any state agency or authority that investigates a complaint 38 against a contractor or subcontractor for violation of this subdivision 39 may limit its investigation to evaluating the information provided by 40 the person or entity submitting the complaint and the information 41 provided by the contractor or subcontractor. 42 (ii) Whenever a contracting officer of the contracting agency or 43 authority has reason to believe that the contractor failed to comply 44 with paragraph b of this subdivision, the agency or authority shall 45 refer the matter for investigation to the head of the agency or authori- 46 ty and, as the head of the agency or authority determines appropriate, 47 to either the office of general services, the office of the attorney 48 general, or the department of environmental conservation. 49 e. (i) When a state agency or authority's contract for the purchase of 50 a commodity or product covered by this subdivision is to be awarded to 51 the lowest responsible bidder, an otherwise qualified bidder who is a 52 small or medium-sized business or a minority or women-owned business 53 enterprise, or who will fulfill the contract through the use of New York 54 state products, may be given preference over other bidders, provided 55 that the cost included in the bid is not more than ten percent greater 56 than the cost included in a bid that is not from a small or medium-sizedS. 4859--A 12 1 business or a minority or women-owned business enterprise or fulfilled 2 through the use of New York state products. 3 (ii) The provisions of this paragraph shall not apply if the head of 4 the contracting state agency or authority purchasing such products, in 5 his or her sole discretion, determines that giving preference to bidders 6 pursuant to the provisions of this paragraph would be: 7 (a) against the public interest; 8 (b) would increase the cost of the contract by an unreasonable amount; 9 or 10 (c) New York state products cannot be obtained in sufficient and 11 reasonable available quantities and of satisfactory quality to meet the 12 contracting state agency or authority's requirements. 13 (iii) Nothing in this paragraph shall be construed to conflict with or 14 otherwise limit the goals and requirements set forth by section one 15 hundred sixty-two of this article and articles fifteen-A and seventeen-B 16 of the executive law. 17 f. (i) The commissioner of the office of general services shall 18 convene a stakeholder advisory group which shall be consulted on the 19 creation of regulations pursuant to paragraph g of this subdivision. 20 Members of the advisory group shall be selected by the commissioner and 21 shall consist of at least: 22 (A) representatives of current or former state contractors dealing in 23 each of the tropical forest-risk commodities specified in subparagraph 24 (ii) of paragraph a of this subdivision, with an emphasis on small and 25 medium-sized businesses; 26 (B) representatives from civil society with relevant expertise in 27 supply chain traceability, tropical forest sustainability, biodiversity, 28 climate science, human and labor rights, and indigenous rights. Members 29 selected pursuant to this clause should be of at least equal number to 30 members selected pursuant to clause (A) of this subparagraph; and 31 (C) a minimum of two additional representatives from indigenous commu- 32 nities within the geographic areas containing tropical forests covered 33 by this subdivision. 34 (ii) Members of the stakeholder advisory group shall receive no sala- 35 ry, but shall be reimbursed by the office of general services for any 36 necessary travel expenses related to participating in the stakeholder 37 advisory group. 38 g. On or before July first, two thousand twenty-four, the office of 39 general services shall issue regulations for the implementation of this 40 subdivision. Such regulations shall be developed in consultation with 41 the stakeholder advisory group established in paragraph f of this subdi- 42 vision and the commissioner of the department of environmental conser- 43 vation. Such regulations shall include, but not be limited to, all of 44 the following: 45 (i) A list of tropical forest-risk commodities subject to the require- 46 ments of this subdivision, including, but not limited to, palm oil, soy, 47 beef, coffee, cocoa, wood pulp and paper. The list shall be reviewed and 48 updated at least every three years. When evaluating inclusion of addi- 49 tional commodities in the list, the commissioner of the office of gener- 50 al services shall consider the impact of the commodity as a driver of 51 tropical deforestation or tropical primary forest degradation, the state 52 of existing supply chain transparency and traceability systems for the 53 commodity, and the feasibility of including the commodity in the 54 requirements of paragraph b of this subdivision. The first review shall 55 include, but not be limited to, evaluation of rubber, bananas, corn, 56 sugarcane, leather and other cattle-derived products, and miningS. 4859--A 13 1 products including petroleum, coal, iron, copper, gold, tin, diamonds, 2 manganese, bauxite and nickel. Following a review of the list of trop- 3 ical forest-risk commodities, the commissioner shall issue a report to 4 the governor, the temporary president of the senate, and the speaker of 5 the assembly, outlining the reasons for the inclusion or non-inclusion 6 of any reviewed commodities. 7 (ii) A list of products derived wholly or in part from tropical 8 forest-risk commodities. 9 (iii) A list of products furnished to the state or used by state 10 contractors in high-volume purchases that contain or are comprised whol- 11 ly or in part of tropical forest-risk commodities. 12 (iv) A set of responsible sourcing guidelines and policies derived 13 from best practices in supply chain transparency to the point-of-origin. 14 (v) Guidance to assist contractors in identifying tropical forest-risk 15 commodities in their supply chain, performing necessary due diligence to 16 meet the requirements of this subdivision, and certifying that the 17 commodity did not contribute to tropical deforestation or tropical 18 primary forest degradation. 19 (vi) A list of favored suppliers of tropical forest-risk commodities 20 and products derived therefrom whose products have been determined to 21 meet the requirements of this subdivision, and a process through which 22 suppliers may apply for inclusion on such list. 23 (vii) The full set of requirements for a large contractor's tropical 24 forest policy pursuant to subparagraph (iv) of paragraph b of this 25 subdivision. 26 (viii) The process through which contractors shall certify to the 27 office of general services that they are in compliance with paragraph b 28 of this subdivision. 29 (ix) A process for ensuring that details of certified contracts are 30 made available for public inspection on the website of the office of 31 general services. 32 (x) An easily accessible procedure to receive public complaints and 33 information regarding violations of this subdivision. 34 h. (i) The certification requirements set forth in this subdivision 35 shall not apply to a credit card purchase of goods of two thousand five 36 hundred dollars or less. 37 (ii) The total amount of goods exempted pursuant to subparagraph (i) 38 of this paragraph shall not exceed seven thousand five hundred dollars 39 per year for each contractor from which a state agency or authority is 40 purchasing goods by credit card. It shall be the responsibility of each 41 state agency to monitor the use of this exemption and adhere to these 42 restrictions on these purchases. 43 i. This subdivision shall apply to all contracts entered into, 44 extended, or renewed on or after January first, two thousand twenty- 45 five. 46 j. Commencing two years after the effective date of this subdivision 47 and biennially thereafter, the commissioner of the office of general 48 services shall issue a report to the governor, the temporary president 49 of the senate, and the speaker of the assembly, on the implementation of 50 this subdivision and subdivisions one and two of this section. 51 § 6. The economic development law is amended by adding a new article 52 27 to read as follows: 53 ARTICLE 27 54 SUPPLY CHAIN TRANSPARENCY ASSISTANCE PROGRAM 55 Section 490. Definitions. 56 491. The supply chain transparency assistance program.S. 4859--A 14 1 § 490. Definitions. For purposes of this article: 2 1. "Small business" means a small business as defined in section one 3 hundred thirty-one of this chapter. 4 2. "Medium-sized business" shall mean a business that is resident in 5 this state, independently owned and operated, not dominant in its field, 6 and employs between one hundred and five hundred persons. 7 3. "Eligible business" shall mean any small and medium-sized business 8 as defined in this article, and any minority or women-owned business 9 enterprise as defined in article fifteen-A of the executive law. 10 4. "Supply chain" shall mean a system of extraction, production, 11 transportation, and distribution involving multiple processes, organiza- 12 tions, individuals, and resources, beginning with raw materials and 13 culminating in the delivery of a product or service to a consumer. 14 § 491. The supply chain transparency assistance program. 1. The 15 department is hereby authorized and directed, within one year of the 16 effective date of this article, to establish, develop, implement, and 17 maintain, within available appropriations, a supply chain transparency 18 assistance program to assist small and medium-sized businesses and 19 minority and women-owned businesses in achieving supply chains that are: 20 (a) Transparent, meaning a supply chain for which sufficient informa- 21 tion has been disclosed regarding all relevant units of production from 22 the raw material stage to the delivery of a product or service to a 23 consumer, including, but not limited to, extraction sites, suppliers, 24 manufacturers, transporters, wholesalers, and retailers, to allow 25 consumers to determine whether the supply chain is ethical and sustaina- 26 ble. 27 (b) Traceable, meaning a supply chain for which distributors, retail- 28 ers, and other businesses down the supply chain are able to gather 29 sufficient and relevant information regarding all units of production 30 further up the supply chain to determine whether a supply chain is 31 ethical and sustainable. 32 (c) Ethical, meaning a supply chain that upholds the human rights and 33 all other legal rights, supports the well-being, and prevents the 34 exploitation, of workers and communities, and guarantees the free, 35 prior, and informed consent, land, and other legal rights of affected 36 indigenous peoples and other local and traditional communities. 37 (d) Sustainable, meaning a supply chain that takes all necessary meas- 38 ures to avoid, minimize, and reduce degradation of natural environmental 39 systems, and maximizes efforts to contribute to the restoration and 40 regeneration of impacted ecosystems. 41 2. The purpose of such program shall be to: 42 (a) Develop and share best practices and provide technical assistance 43 to help participating eligible businesses develop and implement stand- 44 ards, plans, and benchmarks for transparency and traceability, environ- 45 mental sustainability, and ethical practices throughout their supply 46 chains. 47 (b) Assist participating eligible businesses with compliance with 48 supply chain related regulations, procurement standards, or contracting 49 requirements. 50 (c) Identify funding streams, grant monies, financial assistance and 51 other resources that may be available to help participating eligible 52 businesses achieve transparent, traceable, ethical, and sustainable 53 supply chains. 54 (d) Help participating eligible businesses with marketing, communi- 55 cation, and other activities to achieve maximum competitive advantageS. 4859--A 15 1 from their transparent, traceable, ethical, and sustainable supply 2 chains. 3 (e) Conduct market analysis to identify opportunities for participat- 4 ing eligible businesses to access new markets and increase competitive- 5 ness through achieving transparent, traceable, ethical, and sustainable 6 supply chains. 7 (f) Conduct outreach to promote awareness of the program among eligi- 8 ble businesses, business organizations, and regional and local economic 9 development agencies. 10 § 7. This act shall take effect immediately and shall apply to all 11 contracts and binding contractual obligations entered into on and after 12 such effective date.
