S T A T E O F N E W Y O R K
________________________________________________________________________
4333--A
2023-2024 Regular Sessions
I N A S S E M B L Y
February 14, 2023
___________
Introduced by M. of A. KELLES, EPSTEIN, SIMON, HEVESI, GONZALEZ-ROJAS,
FORREST, BURGOS, WEPRIN, REYES, FAHY, STECK, SEAWRIGHT, MITAYNES,
GALLAGHER, RAGA, SIMONE, SHRESTHA, CUNNINGHAM, BORES, OTIS, LEVENBERG,
CARROLL, THIELE, STERN, L. ROSENTHAL, RAJKUMAR, KIM, GUNTHER, ANDER-
SON, GLICK, LUNSFORD, BARRETT, SHIMSKY, MAMDANI, DINOWITZ, SANTABAR-
BARA, JACOBSON, TAYLOR, CLARK, PAULIN, BICHOTTE HERMELYN, LAVINE,
SLATER, EACHUS, DE LOS SANTOS, ARDILA, SILLITTI, SOLAGES, CONRAD,
CRUZ, BENEDETTO, JACKSON, PRETLOW, TAPIA, STIRPE, MEEKS, LUPARDO,
McMAHON, LEE -- read once and referred to the Committee on Consumer
Affairs and Protection -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the general business law, in relation to requiring fash-
ion sellers to be accountable to environmental and social standards;
and to amend the state finance law, in relation to establishing a
fashion remediation fund
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "Fashion sustainability and social accountability act".
§ 2. The general business law is amended by adding a new section 399-
mm to read as follows:
§ 399-MM. FASHION SUSTAINABILITY AND SOCIAL ACCOUNTABILITY ACT. 1.
DEFINITIONS. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE
FOLLOWING MEANINGS:
(A) "DOING BUSINESS IN THIS STATE" SHALL MEAN ACTIVELY ENGAGING IN ANY
TRANSACTION FOR THE PURPOSE OF FINANCIAL OR PECUNIARY GAIN OR PROFIT.
(B) "GROSS RECEIPTS" SHALL MEAN THE GROSS AMOUNTS REALIZED, OTHERWISE
KNOWN AS THE SUM OF MONEY AND THE FAIR MARKET VALUE OF OTHER PROPERTY OR
SERVICES RECEIVED, ON THE SALE OR EXCHANGE OF PROPERTY, THE PERFORMANCE
OF SERVICES, OR THE USE OF PROPERTY OR CAPITAL, INCLUDING RENTS, ROYAL-
TIES, INTEREST, AND DIVIDENDS, IN A TRANSACTION THAT PRODUCES BUSINESS
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03469-04-3
A. 4333--A 2
INCOME, IN WHICH THE INCOME, GAIN, OR LOSS IS RECOGNIZED, OR WOULD BE
RECOGNIZED IF THE TRANSACTION WERE IN THE UNITED STATES, UNDER THE
INTERNAL REVENUE CODE, AS APPLICABLE FOR PURPOSES OF THIS SECTION.
AMOUNTS REALIZED ON THE SALE OR EXCHANGE OF PROPERTY SHALL NOT BE
REDUCED BY THE COST OF GOODS SOLD OR THE BASIS OF PROPERTY SOLD. GROSS
RECEIPTS, EVEN IF BUSINESS INCOME, SHALL NOT INCLUDE THE FOLLOWING
ITEMS:
(I) REPAYMENT, MATURITY, OR REDEMPTION OF THE PRINCIPAL OF A LOAN,
BOND, MUTUAL FUND, CERTIFICATE OF DEPOSIT, OR SIMILAR MARKETABLE INSTRU-
MENT;
(II) THE PRINCIPAL AMOUNT RECEIVED UNDER A REPURCHASE AGREEMENT OR
OTHER TRANSACTION PROPERLY CHARACTERIZED AS A LOAN;
(III) PROCEEDS FROM ISSUANCE OF THE TAXPAYER'S OWN STOCK OR FROM SALE
OF TREASURY STOCK;
(IV) DAMAGES AND OTHER AMOUNTS RECEIVED AS THE RESULT OF LITIGATION;
(V) PROPERTY ACQUIRED BY AN AGENT ON BEHALF OF ANOTHER;
(VI) TAX REFUNDS AND OTHER TAX BENEFIT RECOVERIES;
(VII) PENSION REVERSIONS;
(VIII) CONTRIBUTIONS TO CAPITAL, EXCEPT FOR SALES OF SECURITIES BY
SECURITIES DEALERS;
(IX) INCOME FROM DISCHARGE OF INDEBTEDNESS;
(X) AMOUNTS REALIZED FROM EXCHANGES OF INVENTORY THAT ARE NOT RECOG-
NIZED UNDER THE INTERNAL REVENUE CODE;
(XI) AMOUNTS RECEIVED FROM TRANSACTIONS IN INTANGIBLE ASSETS HELD IN
CONNECTION WITH A TREASURY FUNCTION OF THE TAXPAYER'S UNITARY BUSINESS
AND THE GROSS RECEIPTS AND OVERALL NET GAINS FROM THE MATURITY, REDEMP-
TION, SALE, EXCHANGE, OR OTHER DISPOSITION OF THOSE INTANGIBLE ASSETS;
AND
(XII) AMOUNTS RECEIVED FROM HEDGING TRANSACTIONS INVOLVING INTANGIBLE
ASSETS. A "HEDGING TRANSACTION" MEANS A TRANSACTION RELATED TO THE
TAXPAYER'S TRADING FUNCTION INVOLVING FUTURES AND OPTIONS TRANSACTIONS
FOR THE PURPOSE OF HEDGING PRICE RISK OF THE PRODUCTS OR COMMODITIES
CONSUMED, PRODUCED, OR SOLD BY THE TAXPAYER.
(C) "FASHION SELLER" SHALL MEAN A BUSINESS ENTITY WHICH SELLS ARTICLES
OF WEARING APPAREL, FOOTWEAR, OR FASHION BAGS THAT TOGETHER EXCEED ONE
HUNDRED MILLION DOLLARS IN ANNUAL GROSS RECEIPTS, BUT SHALL NOT INCLUDE
THE SALE OF USED WEARING APPAREL, FOOTWEAR, OR FASHION BAGS, NOR SHALL
IT INCLUDE MULTI-BRAND RETAILERS, EXCEPT WHERE THE APPAREL, FOOTWEAR,
AND FASHION BAG PRIVATE LABELS OF THOSE COMPANIES TOGETHER EXCEED ONE
HUNDRED MILLION DOLLARS IN GLOBAL REVENUE.
(D) "ARTICLE OF WEARING APPAREL" SHALL MEAN ANY COSTUME OR ARTICLE OF
CLOTHING WORN OR INTENDED TO BE WORN BY INDIVIDUALS.
(E) "FOOTWEAR" SHALL MEAN ANY COVERING WORN OR INTENDED TO BE WORN ON
THE FOOT.
(F) "FASHION BAG" SHALL MEAN FLEXIBLE PACKAGING MADE OF TEXTILES,
LEATHER OR OTHER ANIMAL PRODUCTS, WOVEN MATERIAL OR OTHER SIMILAR MATE-
RIALS INTENDED FOR REPEATED USE.
(G) "DUE DILIGENCE" SHALL MEAN THE COMPREHENSIVE PROCESS COMPANIES
SHALL CARRY OUT TO IDENTIFY, CEASE, PREVENT, MITIGATE, ACCOUNT FOR, AND
REMEDIATE ACTUAL AND POTENTIAL ADVERSE IMPACTS TO HUMAN RIGHTS AND THE
ENVIRONMENT IN THEIR OWN OPERATIONS AND IN THEIR SUPPLY CHAIN, IN
COMPLIANCE WITH, AT A MINIMUM, THE STANDARDS OUTLINED IN THE MOST RECENT
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT GUIDELINES FOR
MULTINATIONAL ENTERPRISES, AND THE MOST RECENT ORGANISATION FOR ECONOMIC
CO-OPERATION AND DEVELOPMENT DUE DILIGENCE GUIDANCE FOR RESPONSIBLE
SUPPLY CHAINS IN THE GARMENT AND FOOTWEAR SECTOR.
A. 4333--A 3
(H) "DUE DILIGENCE REPORT" SHALL MEAN THE DOCUMENT PREPARED BY THE
COMPANY TO COMMUNICATE ALL RELEVANT INFORMATION CONCERNING THE EXIST-
ENCE, IMPLEMENTATION AND OUTCOMES OF DUE DILIGENCE IN ORDER TO COMPLY
WITH THE REQUIREMENTS OF THIS SECTION, AND TO COMPLY WITH ANY RULES OR
REGULATIONS ESTABLISHED PURSUANT TO THIS SECTION.
(I) "RISK-BASED APPROACH" SHALL MEAN COMMENSURATE TO THE LIKELIHOOD
AND SEVERITY OF THE HARM. THE FASHION SELLER SHALL PRIORITIZE THE ORDER
IN WHICH IT TAKES ACTION BASED ON THE LIKELIHOOD AND SEVERITY OF HARM.
SEVERITY OF IMPACTS SHALL BE DETERMINED ACCORDING TO THEIR SCALE OR
GRAVITY, SCOPE, AND IRREMEDIABLE CHARACTER.
(J) "SUPPLY CHAIN TIERS" SHALL MEAN A FOUR TIER SYSTEM DEFINED AS THE
FOLLOWING:
(I) "TIER ONE" SHALL MEAN SUPPLIERS WHO PRODUCE FINISHED GOODS FOR
FASHION SELLERS, INCLUDING SUPPLIERS' SUBCONTRACTORS, WHO PROVIDE THE
FOLLOWING SERVICES, INCLUDING BUT NOT LIMITED TO SEWING AND EMBROIDER-
ING;
(II) "TIER TWO" SHALL MEAN SUPPLIERS TO TIER ONE, INCLUDING SUBCON-
TRACTORS, WHO PROVIDE THE FOLLOWING SERVICES OR GOODS, INCLUDING BUT NOT
LIMITED TO KNITTING, WEAVING, WASHING, DYEING, FINISHING, PRINTING FOR
FINISHED GOODS, AND COMPONENTS AND MATERIALS FOR FINISHED GOODS WHEN
THEY ARE STAND-ALONE OPERATIONS AND NOT INTEGRATED WITH TIER ONE. COMPO-
NENTS SHALL MEAN MATERIALS USED TO BUILD A PRODUCT, INCLUDING BUT NOT
LIMITED TO BUTTONS, ZIPPERS, RUBBER SOLES, DOWN, AND FUSIBLES;
(III) "TIER THREE" SHALL MEAN SUPPLIERS TO TIER TWO SUPPLIERS, INCLUD-
ING SUBCONTRACTORS, WHO PROCESS RAW MATERIALS, SUCH AS GINNING, SPIN-
NING, AND SUPPLIERS OF CHEMICALS; AND
(IV) "TIER FOUR" SHALL MEAN COMPANIES, INCLUDING SUBCONTRACTORS, THAT
PROVIDE RAW MATERIALS TO TIER THREE.
(K) "INDEPENDENTLY VERIFIED" SHALL MEAN AUDITED BY A VERIFICATION BODY
ACCREDITED BY THE DEPARTMENT OF STATE AS DESCRIBED IN SUBDIVISION FIVE
OF THIS SECTION.
(L) "LIVING WAGE" SHALL MEAN THE REMUNERATION RECEIVED FOR A STANDARD
WORKWEEK BY A WORKER IN A PARTICULAR PLACE SUFFICIENT TO AFFORD A DECENT
STANDARD OF LIVING FOR SUCH WORKER AND THEIR FAMILY. ELEMENTS OF A
DECENT STANDARD OF LIVING INCLUDE FOOD, WATER, HOUSING, EDUCATION,
HEALTH CARE, TRANSPORTATION, CLOTHING, AND OTHER ESSENTIAL NEEDS INCLUD-
ING PROVISION FOR UNEXPECTED EVENTS. LIVING WAGE SHALL BE DETERMINED
EXCLUSIVE OF OVERTIME WAGES AND BY NET WAGES INCLUDING IN-KIND AND CASH
BENEFITS, AND DEDUCTING TAXES AND DEDUCTIONS.
(M) "OPEN DATA PRINCIPLES" SHALL MEAN DATA THAT CAN BE FREELY USED,
REUSED AND REDISTRIBUTED BY ANYONE. SUCH DATA SHALL BE FINDABLE OR EASI-
LY DISCOVERABLE ON A WEBSITE OR WITHIN A DATABASE, ACCESSIBLE OR AVAIL-
ABLE IN A MACHINE READABLE, CONVENIENT, MODIFIABLE FORM AND PUBLISHED AS
A WHOLE, COMPLETE DATASET, INTEROPERABLE OR ABLE TO BE MIXED WITH
DIFFERENT DATASETS, AND REUSABLE OR PROVIDED UNDER AN OPEN LICENSE THAT
PERMITS REUSE AND REDISTRIBUTION, INCLUDING THE INTERMIXING WITH OTHER
DATASETS.
(N) "LABOR ORGANIZATIONS" MEANS ANY LABOR UNION OR ANY ORGANIZATION OF
ANY KIND, OR ANY AGENCY OR EMPLOYEE REPRESENTATION COMMITTEE, ASSOCI-
ATION, GROUP OR PLAN, IN WHICH EMPLOYEES PARTICIPATE AND WHICH EXISTS
FOR THE PURPOSE, IN WHOLE OR IN PART, OF DEALING WITH EMPLOYERS CONCERN-
ING GRIEVANCES, LABOR DISPUTES, WAGES, RATES OF PAY, HOURS OF EMPLOYMENT
OR CONDITIONS OF WORK.
(O) "EMPLOYEE" SHALL MEAN ALL WORKERS, WHETHER FULL-TIME OR PART-TIME,
PERMANENT OR FIXED-TERM, DIRECTLY CONTRACTED OR HIRED INDIRECTLY THROUGH
AN AGENCY OR OTHER INTERMEDIARY.
A. 4333--A 4
2. DUE DILIGENCE. (A) EVERY FASHION SELLER SHALL EFFECTIVELY CARRY OUT
HUMAN RIGHTS AND ENVIRONMENTAL DUE DILIGENCE FOR THE PORTIONS OF THEIR
BUSINESS RELATED TO WEARING APPAREL, FOOTWEAR OR FASHION BAGS, INCLUDING
WEARING APPAREL, FOOTWEAR OR FASHION BAGS PRODUCED AS A PRIVATE LABEL,
WHICH SHALL INCLUDE:
(I) SUPPLY CHAIN MAPPING:
(1) COMPANIES TAKING A RISK-BASED APPROACH AND IMPLEMENTING GOOD FAITH
EFFORTS TO MAP SUPPLIERS ACROSS TIER ONE THROUGH TIER FOUR OF
PRODUCTION. TIER ONE SUPPLIERS SHALL BE MAPPED WITHIN TWELVE MONTHS OF
THE EFFECTIVE DATE OF THIS SECTION, AND SHALL CONTAIN ONE HUNDRED
PERCENT OF SUPPLIERS BY VOLUME. TIER TWO SUPPLIERS SHALL BE MAPPED WITH-
IN TWO YEARS OF THE EFFECTIVE DATE OF THIS SECTION, AND SHALL CONTAIN A
MINIMUM OF SEVENTY-FIVE PERCENT OF SUPPLIERS BY VOLUME. TIER THREE AND
TIER FOUR SUPPLIERS SHALL BE MAPPED WITHIN THREE YEARS OF THE EFFECTIVE
DATE OF THIS SECTION AND SHALL CONTAIN A MINIMUM OF FIFTY PERCENT OF
SUPPLIERS BY VOLUME OR DOLLAR VALUE.
(2) SUPPLIER DISCLOSURE FOR ALL TIERS SHALL INCLUDE THE NAME, ADDRESS,
PARENT COMPANY, PRODUCT TYPE AND NUMBER OF WORKERS AT EACH SITE BY COUN-
TRY;
(3) FOR TIER ONE SUPPLIERS, FASHION SELLERS SHALL REPORT, AT A MINI-
MUM, THE FOLLOWING INFORMATION TO THE ATTORNEY GENERAL, WHICH SHALL BE
INDEPENDENTLY VERIFIED NO LESS THAN ONCE EVERY TWO YEARS:
(A) THE MEAN WAGES OF WORKERS, AND HOW THIS COMPARES WITH LOCAL MINI-
MUM WAGE AND LIVING WAGES;
(B) THE PERCENTAGE OF UNIONIZED FACTORIES; AND
(C) HOURS WORKED WEEKLY BY MONTH AND THE HOURS AND FREQUENCY OF OVER-
TIME BY FIRM AND COUNTRY.
(II) IN CARRYING OUT EFFECTIVE DUE DILIGENCE, FASHION SELLERS SHALL BE
IN COMPLIANCE WITH THE ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVEL-
OPMENT GUIDELINES FOR MULTINATIONAL ENTERPRISES AND THE ORGANISATION FOR
ECONOMIC CO-OPERATION AND DEVELOPMENT DUE DILIGENCE GUIDANCE FOR RESPON-
SIBLE SUPPLY CHAINS IN THE GARMENT AND FOOTWEAR SECTOR, REQUIRING FASH-
ION SELLERS TO, AT A MINIMUM:
(1) EMBED RESPONSIBLE BUSINESS CONDUCT INTO THE COMPANY'S POLICIES AND
MANAGEMENT SYSTEMS;
(2) IDENTIFY AREAS OF SIGNIFICANT RISKS IN THE CONTEXTS OF ITS OWN
ACTIVITIES AND BUSINESS AND SUPPLY CHAIN RELATIONSHIPS;
(3) IDENTIFY, PRIORITIZE, AND ASSESS THE SIGNIFICANT POTENTIAL AND
ACTUAL ADVERSE IMPACTS OF THOSE RISKS;
(4) CEASE, PREVENT OR MITIGATE THOSE RISKS. THIS SHALL INCLUDE, BUT
NOT BE LIMITED TO:
(A) NON-COMPLIANCE SHALL INCLUDE EMPLOYEES OF TIER ONE GARMENT SUPPLI-
ERS NOT RECEIVING THEIR DUE WAGES AND OTHER MONETARY BENEFITS. FOR THE
PURPOSES OF THIS SECTION, WAGES SHALL BE INCLUSIVE OF ALL MONIES OWED IN
ACCORDANCE WITH THE LAW OF THE COUNTRY OF MANUFACTURE, INCLUDING WAGES,
OVERTIME WAGES, PAID LEAVE, INCENTIVES, BONUSES, SEVERANCE AND ANY OTHER
FORM OF PAYMENT OR COMPENSATION. FOR THE PURPOSES OF THIS SECTION,
EMPLOYEES SHALL INCLUDE ALL WORKERS, WHETHER FULL-TIME OR PART-TIME,
PERMANENT OR FIXED-TERM, DIRECTLY CONTRACTED OR HIRED INDIRECTLY THROUGH
AN AGENCY OR OTHER INTERMEDIARY;
(B) INCENTIVIZING IMPROVED SUPPLIER PERFORMANCE ON WORKERS' RIGHTS AND
ENVIRONMENTAL IMPACT BY EMBEDDING RESPONSIBLE PURCHASING PRACTICES IN
ITS SUPPLY CHAIN RELATIONSHIPS AND CONTRACTS, INCLUDING BUT NOT LIMITED
TO CONTRACT RENEWALS, LONGER TERM CONTRACTS, PRICE PREMIUMS, PROVIDING
REASONABLE ASSISTANCE TO SUPPLIERS SO THAT THEY CAN MEET APPLICABLE
HUMAN RIGHTS AND ENVIRONMENTAL STANDARDS INCLUDING BUT NOT LIMITED TO
A. 4333--A 5
MEETING THE CARBON EMISSION REDUCTION TARGETS SET OUT IN THIS SECTION,
AND DEVELOPING PRICING MODELS THAT ACCOUNT FOR THE COST OF WAGES, BENE-
FITS, AND INVESTMENTS IN SUITABLE WORK, SPECIFICALLY AS REFLECTED IN
FREIGHT ON BOARD PRICES TOGETHER WITH TRADITIONAL PRICING CONSIDER-
ATIONS, SUCH AS QUANTITIES BEING PURCHASED, COST OF MATERIALS, AND SKILL
REQUIREMENTS. WAGES, BENEFITS, AND INVESTMENTS SHALL, AT A MINIMUM, BE
IN LINE WITH THE REQUIREMENTS SET OUT IN LOCAL LABOR LAWS, INCLUDING
MINIMUM WAGE LAWS;
(C) UTILIZING RESPONSIBLE EXIT OR DISENGAGEMENT STRATEGIES;
(D) CONSULTING AND ENGAGING WITH IMPACTED AND POTENTIALLY IMPACTED
STAKEHOLDERS AND RIGHTS HOLDERS AND THEIR REPRESENTATIVES;
(E) ESTABLISHING QUANTITATIVE BASELINE AND REDUCTION TARGETS ON GREEN-
HOUSE GAS EMISSIONS. GREENHOUSE GAS EMISSIONS INVENTORY SHALL BE
REPORTED ANNUALLY, INCLUDE ABSOLUTE FIGURES AND CONFORM WITH THE
ACCOUNTING AND REPORTING REQUIREMENTS OF THE MOST RECENT GREENHOUSE GAS
PROTOCOL CORPORATE ACCOUNTING AND REPORTING STANDARD, SCOPE TWO GUID-
ANCE, AND THE MOST RECENT CORPORATE VALUE CHAIN SCOPE THREE ACCOUNTING
AND REPORTING STANDARD PROMULGATED BY THE WORLD RESOURCES INSTITUTE AND
THE WORLD BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT. GREENHOUSE GAS
EMISSIONS INVENTORY REPORTED IN THE DUE DILIGENCE REPORT DESCRIBED IN
SUBDIVISION THREE OF THIS SECTION SHALL BE INDEPENDENTLY VERIFIED NO
LESS THAN ONCE EVERY TWO YEARS. WITHIN FOUR YEARS OF THE EFFECTIVE DATE
OF THIS SECTION, PRIMARY DATA SHALL BE USED TO CAPTURE TIER TWO AND TIER
THREE INVENTORY OF THE MOST SIGNIFICANT SUPPLIERS CONTRIBUTING TO GREEN-
HOUSE GAS EMISSIONS. SIGNIFICANT SUPPLIERS SHALL MEAN SUPPLIERS REPRES-
ENTING SEVENTY-FIVE PERCENT OF FABRIC BY VOLUME IN TIER TWO AND FIFTY
PERCENT OF FABRIC BY VOLUME IN TIER THREE. GREENHOUSE GAS EMISSION
REDUCTION TARGETS MUST BE NEAR-TERM AND LONG-TERM, COVERING SCOPES ONE,
TWO AND THREE EMISSIONS, AND ALIGN WITH, AT A MINIMUM, SCIENCE BASED
TARGETS INITIATIVE'S MOST RECENT TARGET VALIDATION CRITERIA AS PROMUL-
GATED BY WORLD RESOURCES INSTITUTE, CDP, UNITED NATIONS GLOBAL COMPACT
AND THE WORLD WILDLIFE FUND. FOR FASHION SELLERS WITH GLOBAL REVENUE
OVER ONE BILLION DOLLARS, THE ABSOLUTE CONTRACTION APPROACH MUST BE USED
TO CALCULATE SCOPE THREE EMISSIONS. FASHION SELLERS SHALL MEET TARGETS
AND REPORT THEIR COMPLIANCE ON AN ANNUAL BASIS IN THEIR DUE DILIGENCE
REPORT, AS DESCRIBED IN SUBDIVISION THREE OF THIS SECTION. IF FOUND TO
BE OUT OF COMPLIANCE, FASHION SELLERS SHALL HAVE EIGHTEEN MONTHS TO
REMEDY THEIR EMISSIONS AND RETURN TO THE NECESSARY REDUCTION PATHWAY TO
DELIVER ON THEIR TARGETS. IN NON-TARGET YEARS, NON-COMPLIANCE SHALL MEAN
AN INCREASE IN ABSOLUTE EMISSIONS IN THREE CONSECUTIVE YEARS, FOR COMPA-
NIES OVER A BILLION DOLLARS IN REVENUE. IN TARGET YEARS, NON-COMPLIANCE
SHALL MEAN NOT REACHING THE TARGET.
(F) IN COMPLIANCE WITH, AT A MINIMUM, THE ZERO DISCHARGE OF HAZARDOUS
CHEMICALS PROGRAM'S MOST RECENT WASTEWATER GUIDELINES, FASHION SELLERS
SHALL BE REQUIRED, FOR ALL SIGNIFICANT TIER TWO DYEING, FINISHING AND
GARMENT WASHING SUPPLIERS, TO SAMPLE AND REPORT ON WASTEWATER CHEMICAL
CONCENTRATIONS AND WATER USAGE, WITHIN TWO YEARS OF THE EFFECTIVE DATE
OF THIS SECTION. SUCH REPORTS SHALL BE INDEPENDENTLY VERIFIED. FASHION
SELLERS SHALL ALSO PROVIDE CORRECTIVE ACTION PLANS FOR THEIR WASTEWATER
TREATMENT WITHIN THIRTY MONTHS OF THE EFFECTIVE DATE OF THIS SECTION.
AFTER THREE YEARS OF THE EFFECTIVE DATE OF THIS SECTION, FASHION SELLERS
SHALL BE CONSIDERED OUT OF COMPLIANCE IF THEIR SIGNIFICANT TIER TWO
DYEING, FINISHING AND GARMENT SUPPLIERS HAVE NOT MADE ADEQUATE PROGRESS
IN REMEDIATION OF WASTEWATER POLLUTION CONCENTRATIONS. SIGNIFICANT
SUPPLIERS SHALL MEAN SUPPLIERS REPRESENTING SEVENTY-FIVE PERCENT OF
FABRIC BY VOLUME;
A. 4333--A 6
(5) TRACK IMPLEMENTATION AND RESULTS;
(6) PROVIDE FOR OR CO-OPERATE IN REMEDIATION IN THE EVENT OF AN
ADVERSE IMPACT:
(A) REMEDIES SHALL SEEK TO RESTORE THE AFFECTED PERSON OR PERSONS,
WHERE PRACTICABLE, TO THE SITUATION THEY WOULD HAVE BEEN IN HAD THE
ADVERSE IMPACT NOT OCCURRED AND SHALL ENABLE REMEDIATION THAT IS PROPOR-
TIONATE TO THE SIGNIFICANCE AND SCALE OF THE ADVERSE IMPACT;
(B) REMEDIES SHALL INCLUDE, DEPENDING ON THE NATURE AND EXTENT OF THE
ADVERSE IMPACT, APOLOGIES, RESTITUTION OR REHABILITATION INCLUDING REIN-
STATEMENT OF DISMISSED WORKERS, RECOGNITION OF THE LABOR ORGANIZATION
FOR THE PURPOSE OF COLLECTIVE BARGAINING, FINANCIAL OR NON-FINANCIAL
COMPENSATION INCLUDING ESTABLISHING COMPENSATION FUNDS FOR VICTIMS, OR
FOR FUTURE OUTREACH AND EDUCATIONAL PROGRAMS, PUNITIVE SANCTIONS INCLUD-
ING THE DISMISSALS OF STAFF RESPONSIBLE FOR WRONGDOING, AND TAKING MEAS-
URES TO PREVENT FUTURE ADVERSE IMPACTS; AND
(C) IN RELATION TO HUMAN RIGHTS IMPACTS, FASHION SELLERS SHALL CONSULT
AND ENGAGE WITH IMPACTED RIGHTS HOLDERS AND THEIR REPRESENTATIVES WHEN
DETERMINING THE REMEDY.
(B) THE DUE DILIGENCE REQUIREMENTS PURSUANT TO THIS SUBDIVISION SHALL
NOT BE CONDITIONAL UPON THE COMPANY BEING EFFECTIVELY INVOLVED IN THE
SUBSIDIARY'S DAY-TO-DAY OPERATIONS OR EXERCISING A SUFFICIENT DEGREE OF
CONTROL ON COMPANIES WITHIN ITS SUPPLY CHAIN.
3. REPORTING. EVERY FASHION SELLER SHALL DEVELOP AND SUBMIT TO THE
OFFICE OF THE ATTORNEY GENERAL ANNUALLY, BEGINNING WITHIN EIGHTEEN
MONTHS OF THE EFFECTIVE DATE OF THIS SECTION, A DUE DILIGENCE REPORT.
SUCH REPORT, EXCLUDING THE INFORMATION REQUIRED IN CLAUSE THREE OF
SUBPARAGRAPH (I) OF PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION,
SHALL ALSO BE MADE PUBLICLY AVAILABLE ON THE FASHION SELLER'S WEBSITE IN
A MACHINE READABLE AND REUSABLE FORMAT, PUBLISHED IN LINE WITH OPEN DATA
PRINCIPLES THROUGH A CLEAR AND EASILY DISCOVERABLE LINK TO THE REQUIRED
INFORMATION. IN THE EVENT THE FASHION SELLER DOES NOT HAVE AN INTERNET
WEBSITE, THE COMPANY SHALL PROVIDE A WRITTEN DISCLOSURE TO ANY PERSON
WHO HAS REQUESTED INFORMATION WITHIN THIRTY DAYS OF RECEIVING A REQUEST.
SUCH REPORT SHALL ALSO INCLUDE THE FASHION SELLER'S ANNUAL VOLUME OF
MATERIAL PRODUCED, INCLUDING BREAKDOWN BY MATERIAL TYPE.
4. REGULATIONS. THE DEPARTMENT OF STATE SHALL, IN CONSULTATION WITH
THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION AND DEPARTMENT OF LABOR,
PROMULGATE ALL RULES AND REGULATIONS NECESSARY TO IMPLEMENT THE
PROVISIONS OF THIS SECTION WITHIN SIX MONTHS FROM THE EFFECTIVE DATE OF
THIS SECTION. THE DEPARTMENT OF STATE, IN CONSULTATION WITH THE DEPART-
MENT OF ENVIRONMENTAL CONSERVATION AND DEPARTMENT OF LABOR, SHALL ALSO
DEVELOP AND DISSEMINATE EDUCATIONAL MATERIALS TO FASHION SELLERS,
INCLUDING PROVIDING ALERTS ON TIME SENSITIVE ISSUES, EMERGING ISSUES,
AND HIGH-RISK COUNTRY SITUATIONS, AND ASSISTING FASHION SELLERS IN
IMPROVING THE QUALITY OF THEIR DUE DILIGENCE PROCESSES. THE DEPARTMENT
OF STATE SHALL, IN CONSULTATION WITH THE GREENHOUSE GAS PROTOCOL, DEVEL-
OP METHODOLOGIES TO CALCULATE DATA CAPTURE AS LAID OUT IN ITEM (E) OF
CLAUSE FOUR OF SUBPARAGRAPH (II) OF PARAGRAPH (A) OF SUBDIVISION TWO OF
THIS SECTION, PRIOR TO THAT REQUIREMENT BECOMING EFFECTIVE.
5. VERIFICATION. (A) THE DEPARTMENT OF STATE SHALL, IN CONSULTATION
WITH THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION AND DEPARTMENT OF
LABOR, DEVELOP A PROCESS FOR ACCREDITING VERIFICATION BODIES AUTHORIZED
TO PROVIDE VERIFICATION SERVICES FOR THE PURPOSES OF THIS SECTION,
INCLUDING WHICH REQUIREMENTS THE ENTITY IS AUTHORIZED TO VERIFY.
(B) SUCH PROCESS SHALL AT A MINIMUM CONSIDER:
A. 4333--A 7
(I) THE DEMONSTRATED QUALIFICATIONS OF VERIFICATION STAFF, INCLUDING
THEIR EDUCATION, EXPERIENCE, AND PROFESSIONAL LICENSES. VERIFICATION
BODIES MUST EMPLOY AND RETAIN AT LEAST FIVE TOTAL FULL-TIME STAFF WITH
EXPERTISE IN THE REQUIREMENTS THEY SEEK TO VERIFY UNDER THIS SECTION;
(II) ANY JUDICIAL PROCEEDINGS, ENFORCEMENT ACTIONS, OR ADMINISTRATIVE
ACTIONS FILED AGAINST THE BODY WITHIN THE PREVIOUS FIVE YEARS; AND
(III) THE POLICIES AND MECHANISMS IN PLACE TO PREVENT CONFLICTS OF
INTEREST AND TO IDENTIFY AND RESOLVE POTENTIAL CONFLICT OF INTEREST
SITUATIONS IF THEY ARISE. THE DEPARTMENT SHALL REQUIRE APPLICANTS TO
SUBMIT THE FOLLOWING INFORMATION, AT A MINIMUM:
(1) IDENTIFICATION OF SERVICES PROVIDED BY THE VERIFICATION BODY, THE
INDUSTRIES THAT THE BODY SERVES, AND THE LOCATIONS WHERE THOSE SERVICES
ARE PROVIDED;
(2) A DETAILED ORGANIZATIONAL CHART THAT INCLUDES THE VERIFICATION
BODY, ITS MANAGEMENT STRUCTURE, AND ANY RELATED ENTITIES; AND
(3) THE VERIFICATION BODY'S INTERNAL CONFLICT OF INTEREST POLICY THAT
IDENTIFIES ACTIVITIES AND LIMITS TO MONETARY OR NON-MONETARY GIFTS THAT
APPLY TO ALL EMPLOYEES AND PROCEDURES TO MONITOR CONFLICTS OF INTEREST.
(C) VERIFICATION BODIES SHALL NOT BE AUTHORIZED TO PROVIDE SERVICES TO
A COMPANY WHERE A CONFLICT OF INTEREST EXISTS. A CONFLICT OF INTEREST
SHALL INCLUDE:
(I) WHERE THE VERIFICATION BODY AND REPORTING ENTITY SHARE ANY MANAGE-
MENT STAFF OR BOARD OF DIRECTORS MEMBERSHIP, OR ANY OF THE SENIOR
MANAGEMENT STAFF OF THE REPORTING ENTITY HAVE BEEN EMPLOYED BY THE
VERIFICATION BODY, OR VICE VERSA, WITHIN THE PREVIOUS FIVE YEARS;
(II) ANY EMPLOYEE OF THE VERIFICATION BODY, OR ANY EMPLOYEE OF A
RELATED ENTITY, OR A SUBCONTRACTOR WHO IS A MEMBER OF THE VERIFICATION
TEAM HAS PROVIDED THE REPORTING ENTITY WITH SERVICES RELATED TO THE
AREAS OF VERIFICATION, OR ANY SERVICES DESIGNATED BY THE DEPARTMENT OF
STATE, WITHIN THE PREVIOUS FIVE YEARS;
(III) ANY STAFF MEMBER OF THE VERIFICATION BODY PROVIDES ANY TYPE OF
NON-MONETARY INCENTIVE TO A REPORTING ENTITY TO SECURE A VERIFICATION
SERVICES CONTRACT; AND
(IV) ANY ADDITIONAL CRITERIA PROVIDED BY THE DEPARTMENT OF STATE.
(D) VERIFICATION BODIES THAT HAVE BEEN ACCREDITED BY THE DEPARTMENT OF
STATE SHALL NOTIFY THE DEPARTMENT WITHIN THIRTY DAYS IF THEY NO LONGER
MEET THE VERIFICATION REQUIREMENTS SET FORTH BY THIS SECTION.
6. ENFORCEMENT. (A) THE REQUIREMENTS IMPOSED ON FASHION SELLERS BY
THIS SECTION SHALL BE MONITORED, INVESTIGATED, AND ENFORCED BY THE
ATTORNEY GENERAL OR AN ADMINISTRATOR DESIGNATED BY THE ATTORNEY GENERAL
TO BRING CIVIL PROCEEDINGS FOR AN INJUNCTION, OR FINES FOR MONETARY
DAMAGES AS DESCRIBED IN THIS SECTION, OR CIVIL PERFORMANCE OF A STATUTO-
RY DUTY. FASHION SELLERS SHALL BE DEEMED NON-COMPLIANT WITH THIS SECTION
IF THEY FAIL TO CONDUCT EFFECTIVE DUE DILIGENCE PURSUANT TO SUBDIVISION
TWO OF THIS SECTION OR FAIL TO FILE A DUE DILIGENCE REPORT PURSUANT TO
SUBDIVISION THREE OF THIS SECTION.
(B) THE ATTORNEY GENERAL, OR THE ATTORNEY GENERAL'S DESIGNATED ADMIN-
ISTRATOR AS APPLICABLE, SHALL ANNUALLY PUBLISH AND MAKE PUBLICLY AVAIL-
ABLE A REPORT REGARDING COMPLIANCE WITH THIS SECTION, LISTING THE FASH-
ION SELLERS WHO ARE KNOWN TO BE OUT OF COMPLIANCE WITH THIS SECTION AND
INCLUDING AN UP-TO-DATE REPORT ON THE ATTORNEY GENERAL'S MONITORING OF
SUCH COMPLIANCE.
(C) FASHION SELLERS FOUND TO BE OUT OF COMPLIANCE WITH THIS SECTION
AFTER THE ATTORNEY GENERAL, OR THE ATTORNEY GENERAL'S DESIGNATED ADMIN-
ISTRATOR AS APPLICABLE, HAS PROVIDED NOTICE OF NON-COMPLIANCE, AND AFTER
A THREE-MONTH PERIOD TO MEET OBLIGATIONS UNDER THIS SECTION HAS LAPSED,
A. 4333--A 8
MAY BE FINED UP TO TWO PERCENT OF ANNUAL REVENUES. SUCH FINES SHALL BE
DEPOSITED IN THE COMMUNITY BENEFIT FUND ESTABLISHED BY SECTION NINETY-
SEVEN-CCC OF THE STATE FINANCE LAW.
(D) THE ATTORNEY GENERAL, OR THE ATTORNEY GENERAL'S DESIGNATED ADMIN-
ISTRATOR SHALL USE A RISK-BASED APPROACH IN ENFORCEMENT AND SHALL
PUBLISH ENFORCEMENT GUIDELINES.
(E) ANY PERSON MAY REPORT A VIOLATION OF THIS SECTION TO THE ATTORNEY
GENERAL'S OFFICE.
(F) TIER ONE EMPLOYEES OR THEIR REPRESENTATIVE LABOR ORGANIZATION MAY
COMMENCE A CIVIL ACTION AGAINST ANY FASHION SELLER FOR A VIOLATION OF
ITEM (A) OF CLAUSE FOUR OF SUBPARAGRAPH (II) OF PARAGRAPH (A) OF SUBDI-
VISION TWO OF THIS SECTION, IF THE ATTORNEY GENERAL DOES NOT BRING A
CASE WITHIN SIX MONTHS OF NOTIFICATION OF NON-COMPLIANCE FROM TIER ONE
EMPLOYEES OR THEIR REPRESENTATIVE LABOR ORGANIZATION. FOR THE PURPOSES
OF THIS SECTION, EMPLOYEES SHALL INCLUDE ALL WORKERS, WHETHER FULL-TIME
OR PART-TIME, PERMANENT OR FIXED-TERM, DIRECTLY CONTRACTED OR HIRED
INDIRECTLY THROUGH AN AGENCY OR OTHER INTERMEDIARY.
(I) TIER ONE EMPLOYEES DO NOT NEED TO EXHAUST ADMINISTRATIVE OR JUDI-
CIAL REMEDIES IN THE COUNTRY OF THEIR EMPLOYMENT BEFORE BRINGING A
CLAIM.
(II) CLASS CLAIMS CAN BE BROUGHT BY BOTH TIER ONE EMPLOYEES ACTING AS
CLASS REPRESENTATIVES, AND BY LABOR ORGANIZATIONS REPRESENTING WORKERS.
(III) COURTS CAN AWARD ATTORNEYS' FEES AND COSTS TO SUCCESSFUL PLAIN-
TIFFS. FEES MAY BE AWARDED BASED ON A REASONABLE HOURLY RATE FOR
SERVICES RENDERED, IRRESPECTIVE OF THE AMOUNT OF RECOVERY.
(IV) COURTS MAY ESTABLISH PROPORTIONAL AWARDS OR PENALTIES DEPENDING
ON THE SHARE OF RESPONSIBILITY HELD BY FASHION SELLERS IN VIOLATION OF
ITEM (A) OF CLAUSE FOUR OF SUBPARAGRAPH (II) OF PARAGRAPH (A) OF SUBDI-
VISION TWO OF THIS SECTION. COURTS MAY CHANGE THE TOTAL AWARDS OR PENAL-
TIES OF FASHION SELLERS FOUND TO BE NON-COMPLIANT TO THE DEGREE THAT
FASHION SELLERS EITHER HAVE OR HAVE NOT TAKEN OR ARE TAKING ACTIONS
TOWARDS COMPLIANCE OF ITEM (A) OF CLAUSE FOUR OF SUBPARAGRAPH (II) OF
PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION.
(V) AN ADMINISTRATIVE OR JUDICIAL RULING ON THE CLAIM IN THE COUNTRY
OF MANUFACTURE WILL BE CONSIDERED PERSUASIVE BUT NOT DISPOSITIVE
EVIDENCE AS TO LIABILITY.
§ 3. The state finance law is amended by adding a new section 97-ccc
to read as follows:
§ 97-CCC. FASHION REMEDIATION FUND. 1. THERE IS HEREBY ESTABLISHED IN
THE JOINT CUSTODY OF THE COMPTROLLER, THE COMMISSIONER OF TAXATION AND
FINANCE, THE COMMISSIONER OF ENVIRONMENTAL CONSERVATION, AND THE COMMIS-
SIONER OF LABOR A SPECIAL FUND TO BE KNOWN AS THE FASHION REMEDIATION
FUND.
2. SUCH FUND SHALL CONSIST OF ALL MONEYS DEPOSITED PURSUANT TO PARA-
GRAPH (C) OF SUBDIVISION SIX OF SECTION THREE HUNDRED NINETY-NINE-MM OF
THE GENERAL BUSINESS LAW.
3. THE MONEYS IN THE FUND SHALL BE EXPENDED BY THE COMPTROLLER TO MAKE
TIER ONE GARMENT WORKERS WHOLE, IN THE CASE WHERE THEY HAVE DEMONSTRATED
IN A COURT ACTION PURSUANT TO PARAGRAPH (F) OF SUBDIVISION SIX OF
SECTION THREE HUNDRED NINETY-NINE-MM OF THE GENERAL BUSINESS LAW THAT
THEY HAVE NOT RECEIVED DUE WAGES AND THE COURT HAS FOUND THAT THE FASH-
ION SELLER HAS PERFORMED EFFECTIVE DUE DILIGENCE. ANY ADDITIONAL FUNDS
MAY BE EXPENDED BY THE COMPTROLLER IN CONSULTATION WITH THE DEPARTMENT
OF ENVIRONMENTAL CONSERVATION, THE DEPARTMENT OF LABOR AND RELEVANT
STAKEHOLDERS FOR THE PURPOSE OF IMPLEMENTING ONE OR MORE ENVIRONMENTAL
BENEFIT PROJECTS OR LABOR REMEDIATION PROJECTS THAT DIRECTLY AND VERIFI-
A. 4333--A 9
ABLY BENEFIT THE WORKERS AND COMMUNITIES DIRECTLY IMPACTED, TO THE
EXTENT PRACTICABLE, AT THE LOCATION THE INJURY HAS OCCURRED.
4. ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE COMPTROLLER
SHALL CERTIFY TO THE TEMPORARY PRESIDENT OF THE SENATE, AND THE SPEAKER
OF THE ASSEMBLY, THE AMOUNT OF MONEY DEPOSITED BY SOURCE IN THE FUND
DURING THE PRECEDING CALENDAR YEAR, AS WELL AS ALL DISBURSEMENTS FROM
THE FUND DURING THE PRECEDING CALENDAR YEAR.
5. MONEYS SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND WARRANT OF
THE COMPTROLLER ON VOUCHERS CERTIFIED AND APPROVED BY THE COMMISSIONER
OF ENVIRONMENTAL CONSERVATION AND THE COMMISSIONER OF LABOR, AS APPLICA-
BLE.
§ 4. The attorney general shall certify to the governor that the
office of the attorney general is prepared to execute the duties
assigned in subdivision 6 of section 399-mm of the general business law
within one year following the effective date of this act. If, after the
expiration of one year, the attorney general requires more time to
certify that the office of the attorney general is prepared to execute
such duties, the attorney general may, for good cause shown, apply to
the governor for an extension of time. The governor may grant or deny an
extension of up to one year according to their discretion.
§ 5. Severability. If any word, phrase, clause, sentence, paragraph,
section, or part of this act shall be adjudged by any court of competent
jurisdiction to be invalid, such judgment shall not affect, impair, or
invalidate the remainder thereof, but shall be confined in its operation
to the word, phrase, clause, sentence, paragraph, section, or part ther-
eof directly involved in the controversy in which such judgment shall
have been rendered.
§ 6. This act shall take effect immediately; provided, however, subdi-
vision 6 of section 399-mm of the general business law as added by
section two of this act shall take effect one year after the attorney
general certifies that the office of the attorney general is prepared to
execute the duties assigned in such subdivision. The attorney general
shall notify the legislative bill drafting commission upon the occur-
rence of such certification in order that the commission may maintain an
accurate and timely effective data base of the official text of the laws
of the state of New York in furtherance of effectuating the provisions
of section 44 of the legislative law and section 70-b of the public
officers law.