The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8596
 
                             I N  S E N A T E
 
                              March 21, 2022
                                ___________
 
 Introduced  by  Sens. KRUEGER, KAPLAN -- read twice and ordered printed,
   and when printed to be committed to the Committee on Commerce, Econom-
   ic Development and Small Business
 
 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
 S. 8596                             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.
 S. 8596                             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.