Bill Text: NY S08898 | 2023-2024 | General Assembly | Introduced
Bill Title: Enacts the tropical rainforest economic & environmental sustainability act requiring that companies contracting with the state do not contribute to tropical 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: (Introduced) 2024-03-25 - REFERRED TO FINANCE [S08898 Detail]
Download: New_York-2023-S08898-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8898 IN SENATE March 25, 2024 ___________ Introduced by Sens. KRUEGER, COONEY, MAY, BRESLIN, BRISPORT, CHU, CLEARE, COMRIE, FERNANDEZ, GONZALEZ, 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 Finance AN ACT to amend the state finance law, in relation to enacting the trop- ical rainforest economic & environmental sustainability 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 "tropical 2 rainforest economic & environmental sustainability 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. LBD07504-08-4S. 8898 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. However, our statutory goals miss an important element of 11 our climate footprint represented by our exported emissions, the emis- 12 sions created by the goods we consume. A significant portion of this 13 footprint is driven by tropical deforestation. 14 7. Tropical deforestation in many countries is closely associated with 15 violations of the land rights of indigenous peoples and local communi- 16 ties and with the exploitation of workers, including forced labor and 17 child labor, and in many cases is enabled by corruption, criminality, 18 and violence against conservationists and land defenders. 19 8. Tropical deforestation in many countries is also closely associated 20 with illegal wildlife trafficking, including, but not limited to, vari- 21 ous bird and reptile species, and many primate species, including great 22 apes, pangolins, and orangutans, as well as many tree and plant species, 23 including mahoganies, rosewoods, ebony, and ipe, all of which have 24 recently been listed on the Convention of International Trade in Endan- 25 gered Species of Fauna and Flora (CITES). 26 9. The primary factors leading to tropical deforestation are degrada- 27 tion and road-building associated with logging for timber, which opens 28 the door for deforestation caused by industrial-scale production of 29 agricultural commodities and conversion of forests into plantations for 30 the timber, pulp, paper, palm oil, soy, and livestock industries, among 31 others. Together, these are increasingly known as "forest-risk commod- 32 ities". 33 10. New York is inadvertently promoting and sanctioning deforestation 34 and forest degradation through the purchase of goods and products that 35 have been produced in supply chains that contribute to tropical defores- 36 tation and tropical forest degradation. 37 11. New York has one of the largest economies in the world and its 38 purchasing power has significant market force, allowing it to play a 39 leadership role in preventing forest loss and supporting markets for 40 sustainably-sourced products. 41 12. It is the intent of the legislature that it be the policy of this 42 state to ensure companies contracting with the state are not contribut- 43 ing to tropical deforestation or tropical forest degradation directly or 44 through their supply chains. 45 § 3. Paragraphs b, c, d and e of subdivision 1 of section 165 of the 46 state finance law, as added by chapter 83 of the laws of 1995, are 47 amended to read as follows: 48 b. (i) "Tropical hardwood" shall mean any and all hardwood, scientif- 49 ically classified as angiosperm, that grows in any tropical [moist] 50 forest. Tropical hardwoods shall [be] include but not be limited to the 51 following species: 52 Scientific Name Examples of Common [Name] 53 Names 54 Prunus africana African cherry, Red stinkwood 55 Caryocar costaricense Ajo, Aji 56 Calophyllum spp. BintangorS. 8898 3 1 Cedrela spp. Cedar 2 Neobalanocarpus heimii, Chengal 3 Balanocarpus heimii 4 Octomeles sumatrana Miq. Erima, benuang 5 Myroxylon balsamum Estoraque 6 Apuleia leiocarpa Garapa 7 Parastemon urophyllus, Parastemon Malas 8 spicatus Ridley 9 Hopea spp. Merawan 10 Araucaria araucana Monkey Puzzle, Chilean pine 11 Pterocarpus tinctorius Mukula 12 Senna siamea Siamese senna 13 Pometia pinata Taun 14 Milletia leucantha Kurz Thinwin 15 Bulnesia arborea, Bulnesia Verawood, Argentine lignum 16 sarmientoi vitae 17 Tristaniopsis laurina Water gum 18 Terminalia spp. 19 Homalium foetidum Malas 20 Dillenia papuana Dillenia 21 Canarium spp. Red Canarium, Grey Canarium 22 Burkrella macropoda Rang rang 23 Octomeles sumatrana Erima, Benuang 24 Dracontomelon dao New Guinea walnut 25 Planchonella spp. White Planchonella, Red 26 Planchonella 27 Lophopetalum spp. Perupok 28 Carinian pyriformis Abarco, Jequitiba 29 Mitragyna ciliate Abura 30 Vouacapous americana Acapu 31 Amburana caerensis Amburana, Cerejeira 32 Dalbergia melanoxylon African Blackwood 33 Lovoa spp. African Walnut, Tigerwood 34 Pericopsis elata [Afrormosis] Afrormosia 35 [Shorea almon] [Almon] 36 Aspidosperma megalocarpon Acaretto 37 Peltogyne spp. Amaranth, purpleheart 38 Terminalia amazonia Amarillo Real 39 [Guibourtis] Guibourtia ehie Amazaque 40 Amburana cearensis Amburana, Cerejeira, cumare 41 Pterogyne nitens Amendoim 42 Carapa guianensis Andiroba, False Mahogany 43 Dicorynia guianensis Angilique Cris 44 [Aningeris] Aningeria spp. Aningeria, anegre, 45 anigre 46 Dipterocarpus [grandiflorus] [Apilong] Apitong, Keruing 47 spp. 48 Centrolobium spp. Arariba, Amarillo 49 Brosimum utile Baco 50 Shorea spp. Balau, Selangan batu 51 Ochroma lagopus Balsa 52 Ochroma pyramidale Balsa 53 Myroxylon balsamum Balsamo 54 [Virola spp.] [Banak] 55 [Anisoptera thurifera] [Bella Rose] 56 [Guibourtis] Guibourtia arnoldianaS. 8898 4 1 Benge, Mutenye 2 Berlinia spp. Berlinia, Rose Zebrano 3 Symphonia globulifera Boar Wood 4 Deterium [Senegalese] senegalese Boire 5 Caesalpinia echintata, Brazilwood, Pernambuco 6 Paubrasilia eschinata 7 Bertholletia excels Brazil Tree 8 Brosimum alicastrum Breadnut 9 Guilbourtia spp. Bubinga, African 10 (G. demusei, G. pellegriniana, Rosewood, Kevazingo 11 G. tessmannii) 12 Toona calantas, Cedrela calantas Calantas, Kalantas 13 Priora copaifera Cativo 14 Cedrela odorata, Cedrela fissilis Cedro, Cedar, Spanish cedar, 15 South American cedar 16 Ceiba pentandra Ceiba 17 Antiaris africana Chenchen, Antiaris 18 Couratari guianensis Coco Blanco 19 [Dalbergis] Dalbergia 20 retusa [Concobola] Cocobolo, 21 Granadillo 22 Tabebuia donnell-smithii Copal 23 Daniellia spp. Copal, Daniellia 24 Cordia spp. Cordia, Bocote, Ziricote, Louro 25 Hymenaea courbaril Courbaril, West Indian Locust 26 Dipteryx odorata Cumaru 27 Piptadeniastrum africanum Dahoma, Banzu 28 Calycophyllum candidissimum Degame, Legame Lancewood, 29 Lemonwood 30 Afzelia spp. Doussie, Lingue 31 [Diospyros] Diospyrus spp. Ebony, Macassar 32 ebony, 33 Ceylon ebony 34 Lophira alata Ekki, Azobe, Bangassi, Akoura, 35 Red Ironwood 36 Combretodendron macrocarpum Esia, Essia 37 Cordia goeldiana Freijo, Cordia Wood 38 Chlorophora tinctoria Fustic, Yellow Wood, Tatajuba 39 [Aucoumes] Aucoumea klaineana Gaboon, Okoume 40 Astronium spp. Goncalo Alves, Zebrawood, 41 Tigerwood 42 Ocotea rodiaei Greenheart 43 Enterolobium cyclocarpum Guanacaste, Rain Tree, 44 Elephant Ear 45 Guarea spp. Guarea, Bosse 46 Terminalia ivorensis Idigbo, Framire, Black Afara 47 Phoebe porosa Imbuia, Imbuya, Embuia, 48 Brazilian Walnut 49 Handroanthus spp. Ipe, Brazilian walnut, 50 bethabarra, Pau d'arco, 51 Ironwood, Lapacho 52 Chlorophors excelsa Iroko 53 Hymenaea courbaril Jatoba, "Brazilian Cherry" 54 Jacaranda copaia Jacaranda 55 Machaerium villosum Jacaranda Pardo 56 Dyera costulata JelutongS. 8898 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 Bella Rosa 41 Mora excelsa Mora 42 Distemonanthus benthamianus Movingui, Ayan 43 Terminalia amazonia Nargusta 44 Pterocarpus spp. Narra, Ambyna, Papua New Guinea 45 Rosewood, Red Sanders, Mukula, 46 Kosso, zitan, Hongmu, Pandauk, 47 Vermillion Wood 48 Palaquium spp. Nyatoh, Padang, Pencil Cedar 49 Triplochiton scleroxylon Obeche, Samba 50 Nauclea diderrichii Opepe, Sibo 51 [Pterocarpus soyauxii] [African Padauk] 52 [Pterocarpus angolensis] [Angola Padauk] 53 Millettia stuhlmannii Panga Panga 54 Balfourodendron riedelianum Pau Marfim 55 Aspidosperma spp. Peroba, Rosa 56 Paratecoma peroba Peroba BrancaS. 8898 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 (ii) No later than January first, two thousand twenty-seven, and at 32 least every three years thereafter, the office of general services, in 33 consultation with the department of environmental conservation, shall 34 through regulations update the list of tropical hardwood species in 35 subparagraph (i) of this paragraph to ensure that such list includes all 36 such species that are currently available or may be made available for 37 commercial use in the United States, reflecting the most current data on 38 production, trade, and marketing, and to account for any changes in 39 taxonomy, marketing or trade names, market preference, usage, or other 40 factors. Species shall not be removed from the list of examples except 41 for purposes of correcting errors. 42 c. "Tropical [rain] forests" shall mean [any and all forests classi-43fied by the scientific term "Tropical moist forests", the classification44determined by the equatorial region of the forest and average rainfall] 45 a natural ecosystem within the tropical regions, approximately bounded 46 geographically by the tropics of Cancer and Capricorn, but possibly 47 affected by other factors such as prevailing winds, containing native 48 species composition, structure, and ecological function, with a tree 49 canopy cover of more than ten percent over an area of at least 0.5 50 hectares. "Tropical forests" shall include all of the following: (i) 51 human-managed tropical forests or partially degraded tropical forests 52 that are regenerating; and (ii) tropical forests identified by multi-ob- 53 jective conservation based assessment methodologies, such as High 54 Conservation Value (HCV) areas, as defined by the HCV Resource Network, 55 or High Carbon Stock forests, as defined by the High Carbon StockS. 8898 7 1 Approach, or by another methodology with equivalent or higher standards 2 that includes primary forests and tropical peatlands of any depth. 3 "Tropical forests" shall not include tree plantations of any type. 4 d. "Tropical hardwood products" shall mean any wood products, whole- 5 sale or retail, in any form, including but not limited to plywood, 6 veneer, furniture, cabinets, paneling, siding, moldings, doors, doors- 7 kins, joinery, flooring or sawnwood, which are composed, in whole or in 8 part, of tropical hardwood [except plywood]. 9 e. "Peat" means a soil that is rich in organic matter composed of 10 partially decomposed plant materials equal to or greater than 40 centi- 11 meters of the top 100 centimeters of the soil. 12 f. "Tropical peatlands" means wetlands with a layer of peat made up of 13 dead and decaying plant material. Tropical peatlands includes moors, 14 bogs, mires, and peat swamp forests. 15 g. "Secondary materials" means any material recovered from or other- 16 wise destined for the waste stream, including, but not limited to, post- 17 consumer material, industrial scrap material and overstock or obsolete 18 inventories from distributors, wholesalers and other companies but such 19 term does not include those materials and by-products generated from, 20 and commonly reused within, an original manufacturing process. 21 § 4. Paragraphs b and d of subdivision 2 of section 165 of the state 22 finance law, as added by chapter 83 of the laws of 1995, are amended and 23 three new paragraphs e, f, and g are added to read as follows: 24 b. The provisions of paragraph a of this subdivision shall not apply 25 to: 26 (i) [Any hardwoods purchased from a sustained, managed forest; or27(ii)] Any binding contractual obligations for purchase of commodities 28 entered into prior to August twenty-fifth, nineteen hundred ninety-one; 29 or 30 [(iii) The purchase of any tropical hardwood or tropical hardwood31product for which there is no acceptable non-tropical hardwood species;32or33(iv) Where the contracting officer finds that no person or entity34doing business in the state is capable of providing acceptable non-trop-35ical hardwood species sufficient to meet the particular contract36requirements; or37(v)] (ii) Where the inclusion or application of such provisions will 38 violate or be inconsistent with the terms or conditions of a grant, 39 subvention or contract in an agency of the United States or the 40 instructions of an authorized representative of any such agency with 41 respect to any such grant, subvention or contract[; or42(vi) Where inclusion or application of such provisions results in a43substantial cost increase to the state, government agency, political44subdivision, public corporation or public benefit corporation]. 45 d. The provisions of paragraph c of this subdivision shall not apply: 46 (i) To bid packages advertised and made available to the public or any 47 competitive and sealed bids received or entered into prior to August 48 twenty-fifth, nineteen hundred ninety-one; or 49 (ii) To any amendment, modification or renewal of a contract, which 50 contract was entered into prior to August twenty-fifth, nineteen hundred 51 ninety-one, where such application would delay timely completion of a 52 project or involve an increase in the total monies to be paid under that 53 contract; or 54 (iii) Where the contracting officer finds that[:S. 8898 8 1(A) No person or entity doing business in the state is capable of2performing the contract using acceptable non-tropical hardwood species;3or4(B) The] 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[; or9(C) The use of tropical woods is deemed necessary for purposes of10historical restoration and there exists no available acceptable non-11tropical wood species]. 12 e. The use of any tropical hardwood or tropical hardwood product as 13 part of the construction, renovation, maintenance, or installation of 14 any public work, building or other structure, or improvement on lands 15 owned or managed by the state or any governmental agency or political 16 subdivision or public benefit corporation of the state shall be prohib- 17 ited, except where such prohibition would violate or be inconsistent 18 with the terms and conditions of a grant, subvention or contract with an 19 agency of the United States or the instructions of an authorized repre- 20 sentative of any such agency with respect to any such grant, subvention, 21 or contract. 22 f. (i) Until January first, two thousand thirty, the provisions of 23 paragraphs a, c, and e of this subdivision shall not apply to the use of 24 ekki wood by the metropolitan transportation authority for the purpose 25 of railroad ties in the New York city transit system, provided that the 26 metropolitan transportation authority shall, no later than October 27 first, two thousand twenty-five, after providing notice and an opportu- 28 nity for public comment, develop and issue an ekki transition plan 29 outlining the steps the authority will take to minimize and eventually 30 phase out the use of ekki wood. Such plan shall be made publicly avail- 31 able on the authority's website. No later than October first, two thou- 32 sand twenty-six, and annually thereafter until the expiration of this 33 paragraph, the authority shall issue a public report outlining its 34 progress toward achieving such plan. 35 (ii) If, on or after April first, two thousand twenty-nine, the direc- 36 tor of the budget issues a determination, after providing notice and an 37 opportunity for public comment, that the authority has made significant 38 progress in phasing out the use of ekki wood, but that a full phase out 39 has been delayed due to technical, financial, or safety considerations, 40 the provisions of subparagraph (i) of this paragraph may be extended 41 until December thirty-first of the subsequent calendar year. Such 42 determination may be made annually thereafter, on or after April first 43 of subsequent years, provided that under no circumstances shall the 44 provisions of this paragraph extend beyond January first, two thousand 45 thirty-five. 46 g. (i) Until January first, two thousand thirty, the provisions of 47 paragraphs a, c, and e of this subdivision shall not apply to the use of 48 greenheart wood by a ferry service directly owned and operated by an 49 agency of a city of one million or more, provided that such agency 50 shall, no later than October first, two thousand twenty-five, after 51 providing notice and an opportunity for public comment, develop and 52 issue a greenheart transition plan outlining the steps such agency will 53 take to minimize and eventually phase out the use of greenheart wood. 54 Such plan shall be made publicly available on the agency's website. No 55 later than October first, two thousand twenty-six, and annually there-S. 8898 9 1 after until the expiration of this paragraph, the agency shall issue a 2 public report outlining its progress toward achieving such plan. 3 (ii) If, on or after April first, two thousand twenty-nine, the direc- 4 tor of the budget issues a determination, after providing notice and an 5 opportunity for public comment, that such agency has made significant 6 progress in phasing out the use of greenheart wood, but that a full 7 phase out has been delayed due to technical, financial, or safety 8 considerations, the provisions of subparagraph (i) of this paragraph may 9 be extended until December thirty-first of the subsequent calendar year. 10 Such determination may be made annually thereafter, on or after April 11 first of subsequent years, provided that under no circumstances shall 12 the provisions of this paragraph extend beyond January first, two thou- 13 sand thirty-five. 14 § 5. Section 165 of the state finance law is amended by adding a new 15 subdivision 9 to read as follows: 16 9. Tropical deforestation-free procurement. a. For purposes of this 17 subdivision, the following definitions shall apply: 18 (i) "Contractor" means any person or entity that has a contract with a 19 state agency or state authority for public works or improvements to be 20 performed, for a franchise, concession or lease of property, for grant 21 monies or goods and services or supplies to be purchased at the expense 22 of the agency or authority or to be paid out of monies deposited in the 23 treasury or out of trust monies under the control or collected by the 24 agency or authority. 25 (ii) "Tropical forest-risk commodity" means any commodity and its 26 derived products, including agricultural and non-agricultural commod- 27 ities but excluding tropical hardwood and tropical hardwood products 28 covered by subdivisions one and two of this section, whether in raw or 29 processed form, that is commonly extracted from, or grown, derived, 30 harvested, reared, or produced on land where tropical deforestation or 31 tropical forest degradation has occurred or is likely to occur. Tropical 32 forest-risk commodities include palm oil, soy, beef, coffee, cocoa, wood 33 pulp, paper and any additional commodities defined by the commissioner 34 pursuant to subparagraph (i) of paragraph g of this subdivision, but do 35 not include recovered fiber. 36 (iii) "Free, prior, and informed consent" means the principle that a 37 community has the right to give or withhold its consent to proposed 38 developments that may affect the land and waters it legally or customar- 39 ily owns, occupies, or otherwise uses, as described in the United 40 Nations Declaration on the Rights of Indigenous Peoples, the Indigenous 41 and Tribal Peoples Convention of 1989, also known as the International 42 Labor Organization Convention 169, and other international instruments. 43 "Free, prior, and informed consent" means informed, noncoercive negoti- 44 ations between investors, companies, or governments, and indigenous 45 peoples and local communities, prior to project development. 46 (iv) "Large contractor" means any contractor whose annual revenue, or 47 that of their parent company, is equal to or greater than one hundred 48 million dollars. 49 (v) "Point-of-origin" means the geographical location, as identified 50 by the smallest administrative unit of land, where a commodity was 51 grown, derived, harvested, reared, or produced. 52 (vi) "Recovered Fiber" means postconsumer fiber such as paper, paper- 53 board, and fibrous materials from retail stores, office buildings, 54 homes, and so forth, after having passed through their end usage, 55 including used corrugated boxes, old newspapers, old magazines, mixed 56 waste paper, tabulating cards, and used cordage, and all paper, paper-S. 8898 10 1 board, and fibrous materials that enter and are collected from municipal 2 solid waste; and manufacturing wastes such as dry paper and paperboard 3 waste generated after completion of the papermaking process, including 4 envelope cuttings, bindery trimmings, and other paper and paperboard 5 waste resulting from printing, cutting, forming, and other converting 6 operations, bag, box, and carton manufacturing wastes, and butt rolls, 7 mill wrappers, and rejected unused stock, and repulped finished paper 8 and paperboard from obsolete inventories of paper and paperboard 9 manufacturers, merchants, wholesalers, dealers, printers, converters, 10 and others. 11 (vii) "Tree plantation" means an area of land predominantly composed 12 of trees established through planting and/or deliberate seeding, usually 13 by planting one or two species, for the purpose of producing and 14 harvesting a particular commodity. Tree plantation does not include 15 forest planted for ecosystem restoration. 16 (viii) "Tropical deforestation" means direct human-induced conversion 17 of tropical forest to agriculture, a tree plantation, or other non-for- 18 est land use. 19 (ix) "Tropical forest degradation" means direct human-induced severe 20 and sustained degradation of a tropical forest resulting in significant 21 forest loss and/or a profound change in species composition, structure, 22 or ecological function of that forest. 23 (x) "New York state products" means products that are grown, 24 harvested, or produced in this state, or processed inside or outside 25 this state comprising over fifty-one percent raw materials grown, 26 harvested, or produced in this state, by weight or volume. 27 (xi) "Small business" means small business as defined in section one 28 hundred thirty-one of the economic development law. 29 (xii) "Medium-sized business" shall mean a business that is resident 30 in this state, independently owned and operated, not dominant in its 31 field, and employs between one hundred and five hundred persons. 32 (xiii) "Minority-owned business enterprise" shall have the same mean- 33 ing as in article fifteen-A of the executive law. 34 (xiv) "Women-owned business enterprise" shall have the same meaning as 35 in article fifteen-A of the executive law. 36 b. (i) Every contract entered into by a state agency or authority that 37 includes the procurement of any product comprised wholly or in part of a 38 tropical forest-risk commodity shall require that the contractor certi- 39 fy, after completing necessary due diligence measures as determined by 40 the commissioner pursuant to paragraph g of this subdivision, that, to 41 the best of the contractor's knowledge, the product furnished to the 42 state pursuant to the contract does not contain any commodities that 43 were extracted from, grown, derived, harvested, reared, or produced on 44 land where tropical deforestation or tropical forest degradation 45 occurred on or after January first, two thousand twenty-three. The 46 contractor shall agree to comply with this provision of the contract. 47 (ii) The contract shall specify that the contractor is required to 48 cooperate fully in providing reasonable access to the contractor's 49 records, documents, agents, employees, or premises if reasonably 50 required by authorized officials of the contracting agency or authority, 51 the office of general services, the office of the attorney general, or 52 the department of environmental conservation, to determine the contrac- 53 tor's compliance with the requirements of this paragraph. 54 (iii) Contractors shall exercise due diligence in ensuring that their 55 subcontractors comply with the requirements of this paragraph. Contrac-S. 8898 11 1 tors shall require each subcontractor to certify that the subcontractor 2 is in compliance with the requirements of this paragraph. 3 (iv) In addition to the requirements of subparagraphs (i), (ii) and 4 (iii) of this paragraph, large contractors subject to this paragraph 5 must certify that they have adopted a tropical forest policy that 6 complies with regulations issued pursuant to subparagraph (vi) of para- 7 graph g of this subdivision. Such tropical forest policy and all corre- 8 sponding data shall be made publicly available, and shall at a minimum 9 explicitly aim to achieve all of the following: 10 A. Due diligence measures to identify the point-of-origin of tropical 11 forest-risk commodities and ensure compliance with the policy where 12 supply chain risks are present. 13 B. Data detailing the complete list of direct and indirect suppliers 14 and supply chain traceability information, including refineries, proc- 15 essing plants, farms, and plantations, and their respective owners, 16 parent companies, and farmers, maps, and geo-locations, for each trop- 17 ical forest-risk commodity found in products that may be furnished to 18 the state. 19 C. Measures taken to ensure the product does not contribute to trop- 20 ical deforestation or tropical forest degradation, including: 21 (1) no development in tropical forests, and that the product does not 22 originate from a site where commodity production has replaced tropical 23 forests after January first, two thousand twenty-three; 24 (2) no development of High Carbon Stock (HCS) Forests; 25 (3) no development of High Conservation Value (HCV) Areas; 26 (4) no burning; 27 (5) efforts to ensure progressive reductions of greenhouse gas emis- 28 sions on existing plantations; 29 (6) no development on peat, regardless of depth; 30 (7) best management practices for existing plantations on peat; and 31 (8) where feasible, activities oriented towards peat restoration. 32 D. Measures taken to prevent exploitation and redress grievances of 33 workers and local communities, including: 34 (1) Respect for and recognition of the rights of all workers including 35 contract, temporary, and migrant workers. 36 (2) Respect for and recognition of land tenure rights of communities. 37 (3) Respect for the rights of indigenous and local communities to give 38 or withhold their free, prior, and informed consent to operations on 39 lands to which they hold legal, communal, or customary rights. 40 (4) Explicit policies and processes to prevent violence, intimidation, 41 and coercion of workers and local communities. 42 (5) Formal, open, transparent, and consultative processes to address 43 and redress all complaints and conflicts. 44 E. Measures taken to protect biodiversity and prevent the poaching of 45 endangered species in all operations and adjacent areas. 46 F. Measures taken to ensure compliance with the laws of countries 47 where tropical forest-risk commodities in a company's supply chain were 48 produced. 49 G. Measures to deter violence, threats, and harassment against envi- 50 ronmental human rights defenders (EHRDs), including respecting interna- 51 tionally recognized human rights standards, and educating employees, 52 contractors, and partners on the rights of EHRDs to express their views, 53 conduct peaceful protests, and criticize practices without intimidation 54 or retaliation. 55 (v) The provisions of this paragraph shall not apply to primary, 56 secondary, or tertiary packaging used for the purpose of containment,S. 8898 12 1 protection, handling, delivery, transport, distribution, or presentation 2 of a covered product. 3 (vi) The provisions of this paragraph shall not apply when the inclu- 4 sion or application of such provisions will violate or be inconsistent 5 with the terms or conditions of a grant, subvention or contract with an 6 agency of the United States or the instructions of an authorized repre- 7 sentative of any such agency with respect to any such grant, subvention 8 or contract. 9 (vii) The provisions of this paragraph shall not apply if the head of 10 the contracting state agency or authority issuing a solicitation for 11 products comprised wholly or in part of tropical forest-risk commodities 12 issues a determination, after providing notice and an opportunity for 13 public comment, with the approval of the director of the budget, that 14 upon the closing of such solicitation such provisions have resulted in 15 the failure to receive any offers in response to such solicitation and 16 that there is no alternative product available that is able to meet the 17 generally accepted standard performance requirements for the specified 18 application within such solicitation. Such determination shall explain 19 in detail the necessity of such exemption for each specified applica- 20 tion, including a list of all available alternative products considered 21 and an explanation as to why each product does not meet the relevant 22 generally accepted performance requirements. Such determination shall be 23 made publicly available, in writing, on the website of the office of 24 general services and the relevant agency or authority. If the head of 25 the contracting state agency or authority has not issued such a determi- 26 nation for three consecutive years, then the power of the head of the 27 contracting state agency or authority to issue such a determination 28 shall be deemed expired, and any subsequent determination shall be null 29 and void. 30 c. (i) If it is determined that any contractor contracting with the 31 state knew or should have known that a product comprised wholly or in 32 part of a tropical forest-risk commodity was furnished to the state in 33 violation of this subdivision, the contracting agency or authority shall 34 issue a written notice of violation and provide an opportunity for such 35 contractor to come into compliance. If, after such notice, a contractor 36 fails to come into compliance within a timeframe established by the 37 commissioner of general services, such contractor may, subject to 38 subparagraph (ii) of this paragraph, have either or both of the follow- 39 ing sanctions imposed: 40 A. The contract under which the prohibited tropical forest-risk 41 commodity was furnished may be voided at the option of the state agency 42 or authority to which the commodity was furnished. 43 B. The contractor may be assessed a penalty that shall be the greater 44 of one thousand dollars or an amount equaling twenty percent of the 45 value of the product that the state agency or authority demonstrates was 46 comprised wholly or in part of a tropical forest-risk commodity and 47 furnished to the state in violation of this subdivision. A hearing or 48 opportunity to be heard shall be provided prior to the assessment of any 49 penalty. 50 (ii) Notwithstanding subparagraph (i) of this paragraph, a contractor 51 that has complied with the provisions of subparagraph (iii) of paragraph 52 b of this subdivision shall not be subject to sanctions for violations, 53 of which the contractor had no knowledge, of the requirements of this 54 subdivision that were committed solely by a subcontractor. Sanctions 55 described under subparagraph (i) of this paragraph shall instead be 56 imposed against the subcontractor that committed the violation.S. 8898 13 1 d. (i) Any state agency or authority that investigates a complaint 2 against a contractor or subcontractor for violation of this subdivision 3 may limit its investigation to evaluating the information provided by 4 the person or entity submitting the complaint and the information 5 provided by the contractor or subcontractor. 6 (ii) Whenever a contracting officer of the contracting agency or 7 authority has reason to believe that the contractor failed to comply 8 with paragraph b of this subdivision, the agency or authority shall 9 refer the matter for investigation to the head of the agency or authori- 10 ty and, as the head of the agency or authority determines appropriate, 11 to either the office of general services, the office of the attorney 12 general, or the department of environmental conservation. 13 e. (i) When a state agency or authority's contract for the purchase of 14 a commodity or product covered by this subdivision is to be awarded to 15 the lowest responsible bidder, an otherwise qualified bidder who is a 16 small or medium-sized business or a minority or women-owned business 17 enterprise, or who will fulfill the contract through the use of New York 18 state products, may be given preference over other bidders, provided 19 that the cost included in the bid is not more than ten percent greater 20 than the cost included in a bid that is not from a small or medium-sized 21 business or a minority or women-owned business enterprise or fulfilled 22 through the use of New York state products. 23 (ii) The provisions of this paragraph shall not apply if the head of 24 the contracting state agency or authority purchasing such products, in 25 his or her sole discretion, determines that giving preference to bidders 26 pursuant to the provisions of this paragraph would be: 27 (a) against the public interest; 28 (b) would increase the cost of the contract by an unreasonable amount; 29 or 30 (c) New York state products cannot be obtained in sufficient and 31 reasonable available quantities and of satisfactory quality to meet the 32 contracting state agency or authority's requirements. 33 (iii) Nothing in this paragraph shall be construed to conflict with or 34 otherwise limit the goals and requirements set forth by section one 35 hundred sixty-two of this article, article fifteen-A of the executive 36 law, or article three of the veterans' services law. 37 f. Prior to issuing regulations pursuant to paragraph g of this subdi- 38 vision, the commissioner of general services shall convene four meetings 39 with relevant stakeholders, including but not limited to: 40 (i) representatives of current or former state contractors dealing in 41 products containing each of the tropical forest-risk commodities speci- 42 fied in subparagraph (ii) of paragraph a of this subdivision, with an 43 emphasis on small and medium-sized businesses; 44 (ii) representatives not affiliated with covered industries with rele- 45 vant expertise in supply chain traceability, tropical forest sustaina- 46 bility, biodiversity, climate science, human and labor rights, and 47 indigenous rights; and 48 (iii) representatives from indigenous communities within the geograph- 49 ic areas containing tropical forests covered by this subdivision. 50 g. On or before July first, two thousand twenty-six, the commissioner 51 of general services shall adopt regulations for the implementation of 52 this subdivision. Such regulations shall be developed in consultation 53 with the commissioner of the department of environmental conservation. 54 Such regulations shall include, but not be limited to, all of the 55 following:S. 8898 14 1 (i) A list of tropical forest-risk commodities subject to the require- 2 ments of this subdivision, including, but not limited to, palm oil, soy, 3 beef, coffee, cocoa, wood pulp and paper. The list shall be reviewed and 4 updated at least every three years. When evaluating inclusion of addi- 5 tional commodities in the list, the commissioner of general services 6 shall consider the impact of the commodity as a driver of tropical 7 deforestation or tropical forest degradation, the state of existing 8 supply chain transparency and traceability systems for the commodity, 9 and the feasibility of including the commodity in the requirements of 10 this subdivision. The first review shall include, but not be limited to, 11 evaluation of rubber, bananas, corn, sugarcane, leather and other 12 cattle-derived products, and mining products including petroleum, coal, 13 iron, copper, gold, tin, diamonds, manganese, bauxite and nickel. 14 Following a review of the list of tropical forest-risk commodities, the 15 commissioner shall issue a report to the governor, the temporary presi- 16 dent of the senate, and the speaker of the assembly, outlining the 17 reasons for the inclusion or non-inclusion of any reviewed commodities. 18 (ii) A list of products derived wholly or in part from tropical 19 forest-risk commodities. 20 (iii) A list of products furnished to the state or used by state 21 contractors in high-volume purchases that may contain or be comprised 22 wholly or in part of tropical forest-risk commodities. 23 (iv) Specific due diligence measures based on international best prac- 24 tices for supply chain traceability and transparency that contractors 25 must perform before making the certification required by this subdivi- 26 sion. 27 (v) A list of favored suppliers of tropical forest-risk commodities 28 and products derived therefrom whose products have been determined to 29 meet the requirements of this subdivision, and a process through which 30 suppliers may apply for inclusion on such list. 31 (vi) The full set of requirements for a large contractor's tropical 32 forest policy pursuant to subparagraph (iv) of paragraph b of this 33 subdivision. 34 (vii) The process through which contractors shall certify to the 35 office of general services that they are in compliance with paragraph b 36 of this subdivision. 37 (viii) A process for ensuring that details of certifications are made 38 available for public inspection on the website of the office of general 39 services. 40 (ix) An easily accessible procedure to receive public complaints and 41 information regarding violations of this subdivision. 42 h. The certification requirements set forth in this subdivision shall 43 not apply to a credit card purchase of goods of fifteen thousand dollars 44 or less. 45 i. This subdivision shall apply to all contracts entered into, 46 extended, or renewed on or after January first, two thousand twenty-sev- 47 en. 48 j. Commencing two years after the effective date of this subdivision 49 and biennially thereafter, the commissioner shall issue a report to the 50 governor, the temporary president of the senate, and the speaker of the 51 assembly, on the implementation of this subdivision and subdivisions one 52 and two of this section. 53 § 6. The economic development law is amended by adding a new article 54 27 to read as follows: 55 ARTICLE 27 56 SUPPLY CHAIN TRANSPARENCY ASSISTANCE PROGRAMS. 8898 15 1 Section 490. Definitions. 2 491. The supply chain transparency assistance program. 3 § 490. Definitions. For purposes of this article: 4 1. "Small business" means a small business as defined in section one 5 hundred thirty-one of this chapter. 6 2. "Medium-sized business" shall mean a business that is resident in 7 this state, independently owned and operated, not dominant in its field, 8 and employs between one hundred and five hundred persons. 9 3. "Eligible business" shall mean any small and medium-sized business 10 as defined in this article, and any minority or women-owned business 11 enterprise as defined in article fifteen-A of the executive law. 12 4. "Supply chain" shall mean a system of extraction, production, 13 transportation, and distribution involving multiple processes, organiza- 14 tions, individuals, and resources, beginning with raw materials and 15 culminating in the delivery of a product or service to a consumer. 16 § 491. The supply chain transparency assistance program. 1. The 17 department is hereby authorized and directed, within one year of the 18 effective date of this article, to establish, develop, implement, and 19 maintain, within available appropriations, a supply chain transparency 20 assistance program to assist small and medium-sized businesses and 21 minority and women-owned businesses in achieving supply chains that are: 22 (a) Transparent, meaning a supply chain for which sufficient informa- 23 tion has been disclosed regarding all relevant units of production from 24 the raw material stage to the delivery of a product or service to a 25 consumer, including, but not limited to, extraction sites, suppliers, 26 manufacturers, transporters, wholesalers, and retailers, to allow 27 consumers to determine whether the supply chain is ethical and sustaina- 28 ble. 29 (b) Traceable, meaning a supply chain for which distributors, retail- 30 ers, and other businesses down the supply chain are able to gather 31 sufficient and relevant information regarding all units of production 32 further up the supply chain to determine whether a supply chain is 33 ethical and sustainable. 34 (c) Ethical, meaning a supply chain that upholds the human rights and 35 all other legal rights, supports the well-being, and prevents the 36 exploitation, of workers and communities, and guarantees the free, 37 prior, and informed consent, land, and other legal rights of affected 38 indigenous peoples and other local and traditional communities. 39 (d) Sustainable, meaning a supply chain that takes all necessary meas- 40 ures to avoid, minimize, and reduce degradation of natural environmental 41 systems, and maximizes efforts to contribute to the restoration and 42 regeneration of impacted ecosystems. 43 2. The purpose of such program shall be to: 44 (a) Develop and share best practices and provide technical assistance 45 to help participating eligible businesses develop and implement stand- 46 ards, plans, and benchmarks for transparency and traceability, environ- 47 mental sustainability, and ethical practices throughout their supply 48 chains. 49 (b) Assist participating eligible businesses with compliance with 50 supply chain related regulations, procurement standards, or contracting 51 requirements. 52 (c) Identify funding streams, grant monies, financial assistance and 53 other resources that may be available to help participating eligible 54 businesses achieve transparent, traceable, ethical, and sustainable 55 supply chains.S. 8898 16 1 (d) Help participating eligible businesses with marketing, communi- 2 cation, and other activities to achieve maximum competitive advantage 3 from their transparent, traceable, ethical, and sustainable supply 4 chains. 5 (e) Conduct market analysis to identify opportunities for participat- 6 ing eligible businesses to access new markets and increase competitive- 7 ness through achieving transparent, traceable, ethical, and sustainable 8 supply chains. 9 (f) Conduct outreach to promote awareness of the program among eligi- 10 ble businesses, business organizations, and regional and local economic 11 development agencies. 12 § 7. This act shall take effect on the ninetieth day after it shall 13 have become a law and shall apply to all contracts and binding contrac- 14 tual obligations entered into on and after such effective date.
