S T A T E O F N E W Y O R K
________________________________________________________________________
9684
I N A S S E M B L Y
March 28, 2022
___________
Introduced by M. of A. ZEBROWSKI -- read once and referred to the
Committee on Economic Development
AN ACT to amend the economic development law, in relation to establish-
ing the Supply Chain Transparency Assistance Program
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative findings. The Legislature finds and declares
the following:
1. The climate crisis is an immediate and urgent threat, and New York
State is and must continue to be a leader in addressing it. New York has
a statutory goal of achieving net-zero greenhouse gas emissions econo-
my-wide by 2050. However, that goal does not include greenhouse gas
emissions created outside of New York in the extraction, production, and
transport of the goods we purchase. Currently, eight global supply
chains - food, construction, fashion, fast-moving consumer goods, elec-
tronics, automobiles, professional services, and freight - account for
over half of greenhouse gas emissions annually. Increasing supply chain
transparency and traceability is an important part of fighting climate
change and moving global production toward more environmentally sustain-
able practices.
2. The International Labor Organization estimates that over 25 million
people are currently caught in forced labor, 4 million of whom are chil-
dren. Over 160 million children between the ages of five to seventeen
are engaged in child labor in 2021, and about 79 million of those are
estimated to be engaged in hazardous labor. Across the United States,
Canada and the European Union there are estimated to be 1.5 million
people trapped in forced labor, while millions of other people live
trapped in forced labor across the Asia-Pacific region, Africa, Latin
America and the Middle East. The fruit of such forced labor, as well as
additional health and safety risks and other impacts from substandard
labor practices, can potentially be found in many of the goods we
consume, making it incumbent on businesses to take action to ensure
ethical labor practices throughout their supply chains.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14701-01-2
A. 9684 2
3. Businesses throughout the United States and across the world are
increasingly engaged in efforts to ensure their supply chains are trans-
parent, traceable, ethical, and environmentally sound, whether in
reaction to consumer pressure or government regulation, or out of an
understanding of corporate social responsibility. Businesses that
achieve ethical and sustainable supply chains may also be able to
increase their appeal with certain consumers, charge premium prices, or
access previously untapped markets as a result of their efforts. In
order to remain competitive, New York businesses, particularly small and
medium-sized businesses and minority- and women-owned businesses, must
be able to take advantage of and stay ahead of this socially responsible
and beneficial trend.
4. It is therefore the intent of the Legislature to create a Supply
Chain Transparency Assistance Program to encourage the shifting of the
state's economy toward more ethical and sustainable supply chains, while
ensuring New York businesses have the tools they need to compete in the
national and global marketplace.
§ 2. The economic development law is amended by adding a new article
26 to read as follows:
ARTICLE 26
SUPPLY CHAIN TRANSPARENCY ASSISTANCE PROGRAM
SECTION 480. DEFINITIONS.
481. THE SUPPLY CHAIN TRANSPARENCY ASSISTANCE PROGRAM.
§ 480. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE:
1. "SMALL BUSINESS" MEANS SMALL BUSINESS AS DEFINED IN SECTION ONE
HUNDRED THIRTY-ONE OF THIS CHAPTER.
2. "MEDIUM-SIZED BUSINESS" SHALL MEAN A BUSINESS THAT IS RESIDENT IN
THIS STATE, INDEPENDENTLY OWNED AND OPERATED, NOT DOMINANT IN ITS FIELD,
AND EMPLOYS BETWEEN ONE HUNDRED AND FIVE HUNDRED PERSONS.
3. "ELIGIBLE BUSINESS" SHALL MEAN ANY SMALL AND MEDIUM-SIZED BUSINESS
AS DEFINED IN THIS ARTICLE, AND ANY MINORITY-OWNED OR WOMEN-OWNED BUSI-
NESS ENTERPRISE AS DEFINED IN ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW.
4. "SUPPLY CHAIN" SHALL MEAN A SYSTEM OF EXTRACTION, PRODUCTION,
TRANSPORTATION, AND DISTRIBUTION INVOLVING MULTIPLE PROCESSES, ORGANIZA-
TIONS, INDIVIDUALS, AND RESOURCES, BEGINNING WITH RAW MATERIALS AND
CULMINATING IN THE DELIVERY OF A PRODUCT OR SERVICE TO A CONSUMER.
§ 481. THE SUPPLY CHAIN TRANSPARENCY ASSISTANCE PROGRAM. 1. THE
DEPARTMENT IS HEREBY AUTHORIZED AND DIRECTED, WITHIN ONE YEAR OF THE
EFFECTIVE DATE OF THIS ARTICLE, TO ESTABLISH, DEVELOP, IMPLEMENT, AND
MAINTAIN, WITHIN AVAILABLE APPROPRIATIONS, A SUPPLY CHAIN TRANSPARENCY
ASSISTANCE PROGRAM TO ASSIST SMALL AND MEDIUM-SIZED BUSINESSES AND
MINORITY- AND WOMEN-OWNED BUSINESSES IN ACHIEVING SUPPLY CHAINS THAT
ARE:
(A) TRANSPARENT, MEANING A SUPPLY CHAIN FOR WHICH SUFFICIENT INFORMA-
TION HAS BEEN DISCLOSED REGARDING ALL RELEVANT UNITS OF PRODUCTION FROM
THE RAW MATERIAL STAGE TO THE DELIVERY OF A PRODUCT OR SERVICE TO A
CONSUMER, INCLUDING, BUT NOT LIMITED TO, EXTRACTION SITES, SUPPLIERS,
MANUFACTURERS, TRANSPORTERS, WHOLESALERS, AND RETAILERS, TO ALLOW
CONSUMERS TO DETERMINE WHETHER THE SUPPLY CHAIN IS ETHICAL AND SUSTAINA-
BLE.
(B) TRACEABLE, MEANING A SUPPLY CHAIN FOR WHICH DISTRIBUTORS, RETAIL-
ERS, AND OTHER BUSINESSES DOWN THE SUPPLY CHAIN ARE ABLE TO GATHER
SUFFICIENT RELEVANT INFORMATION REGARDING ALL UNITS OF PRODUCTION
FURTHER UP THE SUPPLY CHAIN TO DETERMINE WHETHER A SUPPLY CHAIN IS
ETHICAL AND SUSTAINABLE.
A. 9684 3
(C) ETHICAL, MEANING A SUPPLY CHAIN THAT UPHOLDS THE HUMAN RIGHTS AND
ALL OTHER LEGAL RIGHTS, SUPPORTS THE WELL-BEING, AND PREVENTS THE
EXPLOITATION, OF WORKERS AND COMMUNITIES, AND GUARANTEES THE FREE,
PRIOR, AND INFORMED CONSENT, LAND, AND OTHER LEGAL RIGHTS OF AFFECTED
INDIGENOUS PEOPLES AND OTHER LOCAL AND TRADITIONAL COMMUNITIES.
(D) SUSTAINABLE, MEANING A SUPPLY CHAIN THAT TAKES ALL NECESSARY MEAS-
URES TO AVOID, MINIMIZE, AND REDUCE DEGRADATION OF NATURAL ENVIRONMENTAL
SYSTEMS, AND MAXIMIZES EFFORTS TO CONTRIBUTE TO THE RESTORATION AND
REGENERATION OF IMPACTED ECOSYSTEMS.
2. THE PURPOSE OF SUCH PROGRAM SHALL BE TO:
(A) DEVELOP AND SHARE BEST PRACTICES AND PROVIDE TECHNICAL ASSISTANCE
TO HELP PARTICIPATING ELIGIBLE BUSINESSES DEVELOP AND IMPLEMENT STAND-
ARDS, PLANS, AND BENCHMARKS FOR TRANSPARENCY AND TRACEABILITY, ENVIRON-
MENTAL SUSTAINABILITY, AND ETHICAL PRACTICES THROUGHOUT THEIR SUPPLY
CHAINS.
(B) ASSIST PARTICIPATING ELIGIBLE BUSINESSES WITH COMPLIANCE WITH
SUPPLY CHAIN RELATED REGULATIONS, PROCUREMENT STANDARDS, OR CONTRACTING
REQUIREMENTS.
(C) IDENTIFY FUNDING STREAMS, GRANT MONIES, FINANCIAL ASSISTANCE AND
OTHER RESOURCES THAT MAY BE AVAILABLE TO HELP PARTICIPATING ELIGIBLE
BUSINESSES ACHIEVE TRANSPARENT, TRACEABLE, ETHICAL, AND SUSTAINABLE
SUPPLY CHAINS.
(D) HELP PARTICIPATING ELIGIBLE BUSINESSES WITH MARKETING, COMMUNI-
CATION, AND OTHER ACTIVITIES TO ACHIEVE MAXIMUM COMPETITIVE ADVANTAGE
FROM THEIR TRANSPARENT, TRACEABLE, ETHICAL, AND SUSTAINABLE SUPPLY
CHAINS.
(E) CONDUCT MARKET ANALYSIS TO IDENTIFY OPPORTUNITIES FOR PARTICIPAT-
ING ELIGIBLE BUSINESSES TO ACCESS NEW MARKETS AND INCREASE COMPETITIVE-
NESS THROUGH ACHIEVING TRANSPARENT, TRACEABLE, ETHICAL, AND SUSTAINABLE
SUPPLY CHAINS.
(F) CONDUCT OUTREACH TO PROMOTE AWARENESS OF THE PROGRAM AMONG ELIGI-
BLE BUSINESSES, BUSINESS ORGANIZATIONS, AND REGIONAL AND LOCAL ECONOMIC
DEVELOPMENT AGENCIES.
§ 3. This act shall take effect immediately.