Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
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Jun 21, 2023 |
returned to senate passed assembly |
Jun 10, 2023 |
ordered to third reading rules cal.817 substituted for a5682a |
Apr 25, 2023 |
referred to governmental operations delivered to assembly passed senate ordered to third reading cal.636 reported and committed to rules |
Apr 18, 2023 |
print number 4859a |
Apr 18, 2023 |
amend and recommit to finance |
Mar 22, 2023 |
reported and committed to finance |
Feb 16, 2023 |
referred to procurement and contracts |
Senate Bill S4859A
2023-2024 Legislative Session
Enacts the New York tropical deforestation-free procurement act and establishes the supply chain transparency assistance program
download bill text pdfSponsored By
(D, WF) 28th Senate District
Current Bill Status - Passed Senate & Assembly
- Introduced
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- In Committee Assembly
- In Committee Senate
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- On Floor Calendar Assembly
- On Floor Calendar Senate
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- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
Votes
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Floor Vote: Apr 25, 2023
aye (42)- Addabbo Jr.
- Bailey
- Breslin
- Brisport
- Brouk
- Chu
- Cleare
- Comrie
- Felder
- Fernandez
- Gianaris
- Gonzalez
- Gounardes
- Harckham
- Hinchey
- Hoylman-Sigal
- Jackson
- Kavanagh
- Kennedy
- Krueger
- Lanza
- Liu
- Mannion
- Martinez
- May
- Mayer
- Myrie
- Parker
- Persaud
- Ramos
- Rivera
- Ryan
- Salazar
- Sanders Jr.
- Scarcella-Spanton
- Sepúlveda
- Serrano
- Skoufis
- Stavisky
- Stewart-Cousins
- Thomas
- Webb
nay (19)
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Apr 25, 2023 - Rules Committee Vote
S4859A13Aye6Nay2Aye with Reservations0Absent0Excused0Abstained -
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Bill Amendments
co-Sponsors
(D, WF) 56th Senate District
(D, WF) 48th Senate District
(D, WF) 46th Senate District
(D, WF) 25th Senate District
(D, WF) 17th Senate District
(D) 30th Senate District
(D) 14th Senate District
(D) 34th Senate District
(D, WF) 40th Senate District
(D, WF) 41st Senate District
(D, WF) 47th Senate District
(D, WF) 31st Senate District
(D, WF) 18th Senate District
(D) 10th Senate District
(D) 32nd Senate District
(D, WF) 29th Senate District
(D) 42nd Senate District
(D) 11th Senate District
2023-S4859 - Details
2023-S4859 - Summary
Enacts the New York tropical deforestation-free procurement act requiring that companies contracting with the state do not contribute to tropical primary forest degradation or deforestation directly or through their supply chains; establishes the supply chain transparency assistance program to assist small and medium-sized businesses and minority- and women-owned businesses in achieving compliant supply chains.
2023-S4859 - Sponsor Memo
BILL NUMBER: S4859 SPONSOR: KRUEGER TITLE OF BILL: An act to amend the state finance law, in relation to enacting the New York tropical deforestation-free procurement act; and to amend the economic development law, in relation to establishing the supply chain transparency assistance program SUMMARY OF SPECIFIC PROVISIONS: Section 1: Names the act the "New York Tropical Deforestation-Free Procurement Act." Section 2: Legislative findings. Section 3: Amends subdivision 1 of section 165 of the state finance law. Updates the species included in the list of tropical hardwoods subject to purchasing limitations. Updates the definition of "tropical forests" and "tropical wood products," and adds definitions of "peat" and "trop- ical peatlands."
Section 4: Amends subdivision 2 of section 165 of the state finance law. Removes certain exemptions from purchasing limitations for tropical hardwoods. Section 5: Amends section 165 of the state finance law by adding a new subdivision 9. -Paragraph a: Establishes definitions. -Paragraph b: Requires state contractors and subcontractors selling Tropical forest-risk commodities to the state to certify that the commodity did not originate on land where tropical deforestation or tropical primary forest degradation occurred on or after January 1st, 2023. Requires contractors to cooperate with state agencies investigat- ing compliance. Additionally, requires large contractors whose annual revenue is greater than $100 million to certify that they have adopted a tropical forest policy as defined in the statute. Smaller contractors may choose to use the adoption of a tropical forest policy to demon- strate compliance with certification requirements. -Paragraph c: Establishes an opportunity for contractors found to be in violation to come into compliance, followed by possible sanctions including voiding the contract, and/or assessing a penalty that is the greater of $1,000 or an amount equal to 20% of the value of the product furnished to the state in violation of the statute. -Paragraph d: Details the process of investigating complaints. -Paragraph e: When a state agency or authority's contract for the purchase of covered commodities or products is to be awarded to the lowest responsible bidder, establishes a contracting preference for New York-based small and medium-sized businesses, MWBEs, or businesses supplying New York State products, provided that they are otherwise qualified and that their bids are not more than 10% greater than the lowest qualified non-preferred bid. -Paragraph f: Requires the OGS Commissioner to convene a stakeholder advisory group to be consulted on the creation of regulations. -Paragraph g: Requires the OGS Commissioner, on or before July 1st, 2024, in consultation with the stakeholder advisory group and the Commissioner of the Department of Environmental Conservation, to issue regulations for implementation and to assist contractors with compli- ance. -Paragraph h: Exempts from certification requirements credit card purchases of $2,500 or less, totaling no more than $7,500 per year for each contractor from which a purchase is being made. -Paragraph i: Establishes that this subdivision shall apply to all contracts entered into, extended, or renewed on or after January 1st, 2025. -Paragraph j: Requires the OGC Commissioner to issue a biennial report on the implementation of this legislation. Section 6: Amends the Economic Development Law to create the Supply Chain Transparency Assistance Program. Section 7: Effective date. JUSTIFICATION: Tropical forests cover roughly 7 percent of Earth's surface, but harbor close to 50 percent of all species on Earth. Those species are now going extinct at a rate that is at least 100 to 1,000 times higher than historical levels, due to human activity. Globally, an estimated 18,000,000 acres of forest, an area more than half the size of New York State, are lost every year to deforestation according to the Food and Agriculture Organization of the United Nations, with over one-half of Earth's tropical forests already gone. At the current pace, the entirety of Earth's tropical rainforests will be degraded or destroyed within the next 100 years. An estimated 30 percent of the world's greenhouse gas emissions come from deforestation and forest degradation. Taking into account carbon sequestration potential, stopping the loss of tropical forests, mangroves, and wetlands could provide over 20 percent of necessary climate mitigation by 2030. Loss of biodiversity resulting from forest degradation and deforesta- tion, as well as human encroachment on formerly undisturbed ecosystems, increases the risks of zoonotic disease pandemics such as COVID-19. In addition, tropical deforestation in many countries is closely associ- ated with violations of the land rights of indigenous peoples and local communities and with the exploitation of workers, including forced labor and child labor, and in many cases is enabled by corruption, criminali- ty, and violence against conservationists and land defenders. The prima- ry factor leading to tropical deforestation is degradation and road- building associated with logging for timber, while the largest direct cause of tropical deforestation is industrial-scale production of agri- cultural commodities. Together, these are increasingly known as "forest-risk commodities." New York, which has one of the largest economies in the world and a state government with significant purchasing power, is inadvertently promoting and sanctioning tropical primary forest degradation and trop- ical deforestation through the purchase of goods and products that have been produced in supply chains that contribute to tropical primary forest degradation and tropical deforestation. This bill will update and close loopholes in existing statutes that limit the purchase of tropical hardwoods, and create a new statute requiring contractors that sell tropical forest-risk commodities to state agencies or authorities to certify that they are not contributing to tropical primary forest degradation or tropical deforestation direct- ly or through their supply chains. The bill would also create a Supply Chain Transparency Assistance Program to help New York's small- and medium-sized businesses, as well as minority-and women-owned businesses who choose to establish more ethical and sustainable supply chains, while ensuring they have the tools they need to compete in the national and global marketplace. LEGISLATIVE HISTORY: 2021-22: S.5921A/A.6872A:Died on Third Reading FISCAL IMPACT ON THE STATE: Undetermined. EFFECTIVE DATE: Amendments to subdivisions 1 and 2 of section 165 of the state finance law shall take effect immediately and shall apply to all contracts and binding contractual obligations entered into on and after such effective date. The new subdivision 9 of section 165 of the state finance law shall apply to all contracts entered into, extended, or renewed on or after January first, two thousand twenty-five.
2023-S4859 - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 4859 2023-2024 Regular Sessions I N S E N A T E February 16, 2023 ___________ Introduced by Sens. KRUEGER, COONEY, MAY, BRESLIN, BRISPORT, CLEARE, COMRIE, HARCKHAM, HINCHEY, HOYLMAN-SIGAL, JACKSON, SALAZAR, SEPULVEDA, SKOUFIS, STAVISKY -- read twice and ordered printed, and when printed to be committed to the Committee on Procurement and Contracts AN ACT to amend the state finance law, in relation to enacting the New York tropical deforestation-free procurement act; and to amend the economic development law, in relation to establishing the supply chain transparency assistance program THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. This act shall be known and may be cited as the "New York tropical deforestation-free procurement act". § 2. Legislative findings. The legislature finds and declares the following: 1. Tropical forests cover roughly 7 percent of Earth's surface, but harbor close to 50 percent of all species on Earth. 2. Human activity is the driving force behind the current rate of species extinction, which is at least 100 to 1,000 times higher than historical levels. The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services reported in 2019 that around 1 million animal and plant species are now threatened with extinction, many within decades, more than ever before in human history. This is directly linked to habitat loss, with more than a third of the world's land surface and nearly 75 percent of freshwater resources now devoted to crop or livestock production. 3. Globally, an estimated 18,000,000 acres of forest, an area more than half the size of New York state, are lost every year to deforesta- tion according to the Food and Agriculture Organization of the United Nations, with over one-half of Earth's tropical forests already gone. At the current pace, the entirety of Earth's tropical rainforests will be degraded or destroyed within the next 100 years. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07504-03-3
S. 4859 2 4. It has been estimated that at least 30 percent of the world's greenhouse gas emissions come from deforestation and forest degradation. Taking into account carbon sequestration potential, stopping the loss of tropical forests, mangroves, and wetlands could provide over 20 percent of climate mitigation by 2030. 5. Loss of biodiversity resulting from forest degradation and defores- tation, as well as human encroachment on formerly undisturbed ecosys- tems, increases the risks of zoonotic disease pandemics such as COVID- 19. 6. New York state is a leader in addressing the climate crisis, with a statutory goal of achieving net-zero greenhouse gas emissions economy- wide by 2050. 7. Tropical deforestation in many countries is closely associated with violations of the land rights of indigenous peoples and local communi- ties and with the exploitation of workers, including forced labor and child labor, and in many cases is enabled by corruption, criminality, and violence against conservationists and land defenders. 8. Tropical deforestation in many countries is also closely associated with illegal wildlife trafficking, including, but not limited to, vari- ous bird and reptile species, many primate species, including great apes, pangolins, and orangutans. 9. The primary factors leading to tropical deforestation are degrada- tion and road-building associated with logging for timber, which opens the door for deforestation caused by industrial-scale production of agricultural commodities and conversion of forests into plantations for the timber, pulp, paper, palm oil, soy, and livestock industries, among others. Together, these are increasingly known as "forest-risk commod- ities". 10. New York is inadvertently promoting and sanctioning deforestation and primary forest degradation through the purchase of goods and products that have been produced in supply chains that contribute to tropical deforestation and tropical primary forest degradation. 11. New York has one of the largest economies in the world and its purchasing power has significant market force, allowing it to play a leadership role in preventing forest loss and supporting markets for sustainably-sourced products. 12. It is the intent of the legislature that it be the policy of this state to ensure companies contracting with the state are not contribut- ing to tropical deforestation or tropical primary forest degradation directly or through their supply chains. § 3. Paragraphs b, c, d and e of subdivision 1 of section 165 of the state finance law, as added by chapter 83 of the laws of 1995, are amended to read as follows: b. "Tropical hardwood" shall mean any and all hardwood, scientifically classified as angiosperm, that grows in any tropical [moist] forest. Tropical hardwoods shall [be] INCLUDE BUT NOT BE LIMITED TO the follow- ing species: Scientific Name EXAMPLES OF Common [Name] NAMES PRUNUS AFRICANA AFRICAN CHERRY, RED STINKWOOD CARYOCAR COSTARICENSE AJO, AJI CALOPHYLLUM SPP. BINTANGOR CEDRELA SPP. CEDAR NEOBALANOCARPUS HEIMII, CHENGAL BALANOCARPUS HEIMII OCTOMELES SUMATRANA MIQ. ERIMA, BENUANG S. 4859 3 MYROXYLON BALSAMUM ESTORAQUE APULEIA LEIOCARPA GARAPA PARASTEMON UROPHYLLUS, PARASTEMON MALAS SPICATUS RIDLEY HOPEA SPP. MERAWAN ARAUCARIA ARAUCANA MONKEY PUZZLE, CHILEAN PINE PTEROCARPUS TINCTORIUS MUKULA SENNA SIAMEA SIAMESE SENNA POMETIA PINATA TAUN MILLETIA LEUCANTHA KURZ THINWIN BULNESIA ARBOREA, BULNESIA VERAWOOD, ARGENTINE LIGNUM SARMIENTOI VITAE TRISTANIOPSIS LAURINA WATER GUM TERMINALIA SPP. HOMALIUM FOETIDUM MALAS DILLENIA PAPUANA DILLENIA CANARIUM SPP. RED CANARIUM, GREY CANARIUM BURKRELLA MACROPODA RANG RANG OCTOMELES SUMATRANA ERIMA, BENUANG DRACONTOMELON DAO NEW GUINEA WALNUT PLANCHONELLA SPP. WHITE PLANCHONELLA, RED PLANCHONELLA LOPHOPETALUM SPP. PERUPOK CARINIAN PYRIFORMIS ABARCO, JEQUITIBA MITRAGYNA CILIATE ABURA Vouacapous americana Acapu AMBURANA CAERENSIS AMBURANA, CEREJEIRA DALBERGIA MELANOXYLON AFRICAN BLACKWOOD LOVOA SPP. AFRICAN WALNUT, TIGERWOOD Pericopsis elata [Afrormosis] AFRORMOSIA [Shorea almon] [Almon] ASPIDOSPERMA MEGALOCARPON ACARETTO Peltogyne spp. Amaranth, PURPLEHEART TERMINALIA AMAZONIA AMARILLO REAL [Guibourtis] Guibourtia ehie Amazaque AMBURANA CEARENSIS AMBURANA, CEREJEIRA, CUMARE PTEROGYNE NITENS AMENDOIM CARAPA GUIANENSIS ANDIROBA, FALSE MAHOGANY DICORYNIA GUIANENSIS ANGILIQUE CRIS [Aningeris] ANINGERIA spp. Aningeria, ANEGRE, ANIGRE Dipterocarpus [grandiflorus] [Apilong] APITONG, KERUING SPP. CENTROLOBIUM SPP. ARARIBA, AMARILLO BROSIMUM UTILE BACO SHOREA SPP. BALAU, SELANGAN BATU Ochroma lagopus Balsa OCHROMA PYRAMIDALE BALSA MYROXYLON BALSAMUM BALSAMO [Virola spp.] [Banak] Anisoptera thurifera Bella [Rose] ROSA [Guibourtis] GUIBOURTIA arnoldiana Benge, MUTENYE BERLINIA SPP. BERLINIA, ROSE ZEBRANO SYMPHONIA GLOBULIFERA BOAR WOOD Deterium [Senegalese] SENEGALESE Boire S. 4859 4 CAESALPINIA ECHINTATA, BRAZILWOOD, PERNAMBUCO PAUBRASILIA ESCHINATA BERTHOLLETIA EXCELS BRAZIL TREE BROSIMUM ALICASTRUM BREADNUT GUILBOURTIA SPP. BUBINGA, AFRICAN (G. DEMUSEI, G. PELLEGRINIANA, ROSEWOOD, KEVAZINGO G. TESSMANNII) TOONA CALANTAS, CEDRELA CALANTAS CALANTAS, KALANTAS Priora copaifera Cativo CEDRELA ODORATA, CEDRELA FISSILIS CEDRO, CEDAR, SPANISH CEDAR, SOUTH AMERICAN CEDAR CEIBA PENTANDRA CEIBA Antiaris africana Chenchen, ANTIARIS COURATARI GUIANENSIS COCO BLANCO [Dalbergis] DALBERGIA retusa [Concobola] COCOBOLO, GRANADILLO TABEBUIA DONNELL-SMITHII COPAL DANIELLIA SPP. COPAL, DANIELLIA Cordia spp. Cordia, BOCOTE, ZIRICOTE, LOURO HYMENAEA COURBARIL COURBARIL, WEST INDIAN LOCUST DIPTERYX ODORATA CUMARU PIPTADENIASTRUM AFRICANUM DAHOMA, BANZU CALYCOPHYLLUM CANDIDISSIMUM DEGAME, LEGAME LANCEWOOD, LEMONWOOD AFZELIA SPP. DOUSSIE, LINGUE [Diospyros] DIOSPYRUS spp. Ebony, MACASSAR EBONY, CEYLON EBONY LOPHIRA ALATA EKKI, AZOBE, BANGASSI, AKOURA, RED IRONWOOD COMBRETODENDRON MACROCARPUM ESIA, ESSIA CORDIA GOELDIANA FREIJO, CORDIA WOOD CHLOROPHORA TINCTORIA FUSTIC, YELLOW WOOD, TATAJUBA [Aucoumes] AUCOUMEA klaineana Gaboon, OKOUME ASTRONIUM SPP. GONCALO ALVES, ZEBRAWOOD, TIGERWOOD OCOTEA RODIAEI GREENHEART ENTEROLOBIUM CYCLOCARPUM GUANACASTE, RAIN TREE, ELEPHANT EAR GUAREA SPP. GUAREA, BOSSE TERMINALIA IVORENSIS IDIGBO, FRAMIRE, BLACK AFARA PHOEBE POROSA IMBUIA, IMBUYA, EMBUIA, BRAZILIAN WALNUT HANDROANTHUS SPP. IPE, BRAZILIAN WALNUT, BETHABARRA, PAU D'ARCO, IRONWOOD, LAPACHO Chlorophors excelsa Iroko HYMENAEA COURBARIL JATOBA, "BRAZILIAN CHERRY" JACARANDA COPAIA JACARANDA MACHAERIUM VILLOSUM JACARANDA PARDO DYERA COSTULATA JELUTONG DRYOBALANOPS SPP. KAPUR, KELADAN KOOMPASSIA MALACCENSIS KEMPAS, IMPAS Acacia koa Koa [Entandrophragm a] ENTANDROPHRAGMA CKOSIPO,IOMU S. 4859 5 Pterygota macrocarpa Koto, AFRICAN PTERYGOTA, WARE OXANDRA LANCEOLATE LANCEWOOD Shorea SPP. [negrosensis] [Red] Lauan, LUAN, LAWAAN, MERANTI, WHITE MERANTI, YELLOW MERANTI, DARK RED MERANTI, LIGHT RED MERANTI, SERAYA, TANGUILE, BANG, PHILIPPINE MAHOGANY [Pentacme contorta] [White Lauan] [Shores ploysprma] [Tanguile] NOTHOFAGUS PUMILIO LENGA GUAIACUM OFFICINALE LIGNUM VITAE, GUAYACAN, IRONWOOD Terminalia superba Limba, AFARA, OFRAM [Aniba duckei] ANIBA ROSEDORA [Louro] BRAZILIAN ROSEWOOD, PAU ROSA, BOIS DE ROSE NECTANDRA SPP. LOURO PRETO [Kyaya ivorensis] KHAYA SPP. [Africa] AFRICAN Mahogany [Swletenia macrophylla] [Amer. Mahogany] SWIETENIA SPP. AMERICAN MAHOGANY, WEST INDIAN MAHOGANY, CENTRAL AMERICAN MAHOGANY, HONDURAN MAHOGANY, SOUTH AMERICAN MAHOGANY, MEXICAN MAHOGANY, BIGLEAF MAHOGANY, LITTLE LEAF MAHOGANY, ACAJOU, CAOBA MOGNO Tieghemella [leckellii] HECKELII [Makora] MAKORE, BAKU DIOSPYROS MARMORATA MARBLEWOOD, ZEBRAWOOD INTSIA BIJUGA, INTSIA PALEMBANICA MERBAU, IPIL, KWILA ANISOPTERA SPP. MERSAWA, KRABAK, PALOSAPIS MORA EXCELSA MORA Distemonanthus benthamianus Movingui, AYAN TERMINALIA AMAZONIA NARGUSTA PTEROCARPUS SPP. NARRA, AMBYNA, PAPUA NEW GUINEA ROSEWOOD, RED SANDERS, MUKULA, KOSSO, ZITAN, HONGMU PALAQUIUM SPP. NYATOH, PADANG, PENCIL CEDAR TRIPLOCHITON SCLEROXYLON OBECHE, SAMBA NAUCLEA DIDERRICHII OPEPE, SIBO Pterocarpus [soyauxii] SPP. [African] Padauk, VERMILLION WOOD [Pterocarpus angolensis] [Angola Padauk] MILLETTIA STUHLMANNII PANGA PANGA BALFOURODENDRON RIEDELIANUM PAU MARFIM Aspidosperma spp. Peroba, ROSA PARATECOMA PEROBA PEROBA BRANCA DALBERGIA FRUTESCENS, D. TOMENTOSA PINKWOOD, BRAZILIA TULIPWOOD TABEBUIA DONNELL-SMITHII PRIMA VERA, ROBLE, DURANGO Peltogyne spp. Purpleheart Gonystylus spp. Ramin S. 4859 6 MELANORRHOEA CURTISII RENGAS, BORNEO ROSEWOOD NOTHOFAGUS OBLIQUA ROBLE HEVEA BRASILIENSIS RUBBERWOOD Dalbergia spp. Rosewood, INDIAN ROSEWOOD, HONDURAS ROSEWOOD, COCOBOLO, GRANADILLO ANIBA DUCKEI BRAZILIAN ROSEWOOD [Entandrophragm a] ENTANDROPHRAGMA cylindricum [Sapela] SAPELE, SAPELLI ACANTHOPANAX RICINOFOLIUS SEN, CASTOR ARABIA BROSIMUM AUBLETTI, PIRATINERA SNAKEWOOD, LETTERWOOD, LEOPARD GUIANENSIS WOOD [Shores phillippinensis] [Sonora] JUGLANS SPP. (JUGLANS SOUTH AMERICAN WALNUT, PERUVIAN AUSTRALIS, J. NEOTROPICA, WALNUT J. OLANCHANA, ETC.) STERCULIA RHINOPETALA STERCULIA BAGASSA GUIANENSIS TATAJUBA, BAGASSE Tectona grandis Teak Lovoa trichilloides Tigerwood ENTANDROPHRAGMA UTILE UTILE, SIPO VIROLA SPP. VIROLA, CUMALA, BANAK, TAPSAVA Milletia laurentii Wenge PENTACME CONTORTA WHITE LAUAN Microberlinia [brazzavillensis] Zebrawood, SPP. ZEBRANO, ZINGANA c. "Tropical [rain] forests" shall mean [any and all forests classi- fied by the scientific term "Tropical moist forests", the classification determined by the equatorial region of the forest and average rainfall] A NATURAL ECOSYSTEM WITHIN THE TROPICAL REGIONS, APPROXIMATELY BOUNDED GEOGRAPHICALLY BY THE TROPICS OF CANCER AND CAPRICORN, BUT POSSIBLY AFFECTED BY OTHER FACTORS SUCH AS PREVAILING WINDS, CONTAINING NATIVE SPECIES COMPOSITION, STRUCTURE, AND ECOLOGICAL FUNCTION, WITH A TREE CANOPY COVER OF MORE THAN TEN PERCENT OVER AN AREA OF AT LEAST 0.5 HECTARES. "TROPICAL FORESTS" SHALL INCLUDE ALL OF THE FOLLOWING: (I) HUMAN-MANAGED TROPICAL FORESTS OR PARTIALLY DEGRADED TROPICAL FORESTS THAT ARE REGENERATING; AND (II) TROPICAL FORESTS IDENTIFIED BY MULTI-OB- JECTIVE CONSERVATION BASED ASSESSMENT METHODOLOGIES, SUCH AS HIGH CONSERVATION VALUE (HCV) AREAS, AS DEFINED BY THE HCV RESOURCE NETWORK, OR HIGH CARBON STOCK FORESTS, AS DEFINED BY THE HIGH CARBON STOCK APPROACH, OR BY ANOTHER METHODOLOGY WITH EQUIVALENT OR HIGHER STANDARDS THAT INCLUDES PRIMARY FORESTS AND TROPICAL PEATLANDS OF ANY DEPTH. "TROPICAL FORESTS" SHALL NOT INCLUDE TREE PLANTATIONS OF ANY TYPE. d. "Tropical wood products" shall mean any wood products, wholesale or retail, in any form, including but not limited to PLYWOOD, veneer, furniture, cabinets, paneling, SIDING, moldings, DOORS, doorskins, join- ery, FLOORING or sawnwood, which are composed, IN WHOLE OR IN PART, of tropical hardwood [except plywood]. e. "PEAT" MEANS A SOIL THAT IS RICH IN ORGANIC MATTER COMPOSED OF PARTIALLY DECOMPOSED PLANT MATERIALS EQUAL TO OR GREATER THAN 40 CENTI- METERS OF THE TOP 100 CENTIMETERS OF THE SOIL. F. "TROPICAL PEATLANDS" MEANS WETLANDS WITH A LAYER OF PEAT MADE UP OF DEAD AND DECAYING PLANT MATERIAL. TROPICAL PEATLANDS INCLUDES MOORS, BOGS, MIRES, AND PEAT SWAMP FORESTS. S. 4859 7 G. "Secondary materials" means any material recovered from or other- wise destined for the waste stream, including, but not limited to, post- consumer material, industrial scrap material and overstock or obsolete inventories from distributors, wholesalers and other companies but such term does not include those materials and by-products generated from, and commonly reused within, an original manufacturing process. § 4. Paragraphs b and d of subdivision 2 of section 165 of the state finance law, as added by chapter 83 of the laws of 1995, are amended to read as follows: b. The provisions of paragraph a of this subdivision shall not apply to: (i) [Any hardwoods purchased from a sustained, managed forest; or (ii)] Any binding contractual obligations for purchase of commodities entered into prior to August twenty-fifth, nineteen hundred ninety-one; or [(iii) The purchase of any tropical hardwood or tropical hardwood product for which there is no acceptable non-tropical hardwood species; or (iv) Where the contracting officer finds that no person or entity doing business in the state is capable of providing acceptable non-trop- ical hardwood species sufficient to meet the particular contract requirements; or (v)] (II) Where the inclusion or application of such provisions will violate or be inconsistent with the terms or conditions of a grant, subvention or contract in an agency of the United States or the instructions of an authorized representative of any such agency with respect to any such grant, subvention or contract[; or (vi) Where inclusion or application of such provisions results in a substantial cost increase to the state, government agency, political subdivision, public corporation or public benefit corporation]. d. The provisions of paragraph c of this subdivision shall not apply: (i) To bid packages advertised and made available to the public or any competitive and sealed bids received or entered into prior to August twenty-fifth, nineteen hundred ninety-one; or (ii) To any amendment, modification or renewal of a contract, which contract was entered into prior to August twenty-fifth, nineteen hundred ninety-one, where such application would delay timely completion of a project or involve an increase in the total monies to be paid under that contract; or (iii) Where the contracting officer finds that[: (A) No person or entity doing business in the state is capable of performing the contract using acceptable non-tropical hardwood species; or (B) The] THE inclusion or application of such provisions will violate or be inconsistent with the terms or conditions of a grant, subvention or contract with an agency of the United States or the instructions of an authorized representative of any such agency with respect to any such grant, subvention or contract[; or (C) The use of tropical woods is deemed necessary for purposes of historical restoration and there exists no available acceptable non- tropical wood species]. § 5. Section 165 of the state finance law is amended by adding a new subdivision 9 to read as follows: 9. TROPICAL DEFORESTATION-FREE PROCUREMENT. A. FOR PURPOSES OF THIS SUBDIVISION, THE FOLLOWING DEFINITIONS SHALL APPLY: S. 4859 8 (I) "CONTRACTOR" MEANS ANY PERSON OR ENTITY THAT HAS A CONTRACT WITH A STATE AGENCY OR STATE AUTHORITY FOR PUBLIC WORKS OR IMPROVEMENTS TO BE PERFORMED, FOR A FRANCHISE, CONCESSION OR LEASE OF PROPERTY, FOR GRANT MONIES OR GOODS AND SERVICES OR SUPPLIES TO BE PURCHASED AT THE EXPENSE OF THE AGENCY OR AUTHORITY OR TO BE PAID OUT OF MONIES DEPOSITED IN THE TREASURY OR OUT OF TRUST MONIES UNDER THE CONTROL OR COLLECTED BY THE AGENCY OR AUTHORITY. (II) "TROPICAL FOREST-RISK COMMODITY" MEANS ANY COMMODITY AND ITS DERIVED PRODUCTS, INCLUDING AGRICULTURAL AND NON-AGRICULTURAL COMMOD- ITIES BUT EXCLUDING TROPICAL HARDWOOD AND TROPICAL WOOD PRODUCTS COVERED BY SUBDIVISIONS ONE AND TWO OF THIS SECTION, WHETHER IN RAW OR PROCESSED FORM, THAT IS COMMONLY EXTRACTED FROM, OR GROWN, DERIVED, HARVESTED, REARED, OR PRODUCED ON LAND WHERE TROPICAL DEFORESTATION OR TROPICAL PRIMARY FOREST DEGRADATION HAS OCCURRED OR IS LIKELY TO OCCUR. TROPICAL FOREST-RISK COMMODITIES INCLUDE PALM OIL, SOY, BEEF, COFFEE, COCOA, WOOD PULP, PAPER, LOGS, LUMBER, AND ANY ADDITIONAL COMMODITIES DEFINED BY THE COMMISSIONER OF THE OFFICE OF GENERAL SERVICES PURSUANT TO SUBPARAGRAPH (I) OF PARAGRAPH G OF THIS SUBDIVISION, BUT DO NOT INCLUDE RECOVERED FIBER. (III) "FREE, PRIOR, AND INFORMED CONSENT" MEANS THE PRINCIPLE THAT A COMMUNITY HAS THE RIGHT TO GIVE OR WITHHOLD ITS CONSENT TO PROPOSED DEVELOPMENTS THAT MAY AFFECT THE LAND AND WATERS IT LEGALLY OR CUSTOMAR- ILY OWNS, OCCUPIES, OR OTHERWISE USES, AS DESCRIBED IN THE UNITED NATIONS DECLARATION ON THE RIGHTS OF INDIGENOUS PEOPLES, THE INDIGENOUS AND TRIBAL PEOPLES CONVENTION OF 1989, ALSO KNOWN AS THE INTERNATIONAL LABOR ORGANIZATION CONVENTION 169, AND OTHER INTERNATIONAL INSTRUMENTS. "FREE, PRIOR, AND INFORMED CONSENT" MEANS INFORMED, NONCOERCIVE NEGOTI- ATIONS BETWEEN INVESTORS, COMPANIES, OR GOVERNMENTS, AND INDIGENOUS PEOPLES AND LOCAL COMMUNITIES, PRIOR TO PROJECT DEVELOPMENT. (IV) "LARGE CONTRACTOR" MEANS ANY CONTRACTOR WHOSE ANNUAL REVENUE, OR THAT OF THEIR PARENT COMPANY, IS EQUAL TO OR GREATER THAN ONE HUNDRED MILLION DOLLARS. (V) "POINT-OF-ORIGIN" MEANS THE GEOGRAPHICAL LOCATION, AS IDENTIFIED BY THE SMALLEST ADMINISTRATIVE UNIT OF LAND, WHERE A COMMODITY WAS GROWN, DERIVED, HARVESTED, REARED, OR PRODUCED. (VI) "RECOVERED FIBER" MEANS POSTCONSUMER FIBER SUCH AS PAPER, PAPER- BOARD, AND FIBROUS MATERIALS FROM RETAIL STORES, OFFICE BUILDINGS, HOMES, AND SO FORTH, AFTER HAVING PASSED THROUGH THEIR END USAGE, INCLUDING USED CORRUGATED BOXES, OLD NEWSPAPERS, OLD MAGAZINES, MIXED WASTE PAPER, TABULATING CARDS, AND USED CORDAGE, AND ALL PAPER, PAPER- BOARD, AND FIBROUS MATERIALS THAT ENTER AND ARE COLLECTED FROM MUNICIPAL SOLID WASTE; AND MANUFACTURING WASTES SUCH AS DRY PAPER AND PAPERBOARD WASTE GENERATED AFTER COMPLETION OF THE PAPERMAKING PROCESS, INCLUDING ENVELOPE CUTTINGS, BINDERY TRIMMINGS, AND OTHER PAPER AND PAPERBOARD WASTE RESULTING FROM PRINTING, CUTTING, FORMING, AND OTHER CONVERTING OPERATIONS, BAG, BOX, AND CARTON MANUFACTURING WASTES, AND BUTT ROLLS, MILL WRAPPERS, AND REJECTED UNUSED STOCK, AND REPULPED FINISHED PAPER AND PAPERBOARD FROM OBSOLETE INVENTORIES OF PAPER AND PAPERBOARD MANUFACTURERS, MERCHANTS, WHOLESALERS, DEALERS, PRINTERS, CONVERTERS, AND OTHERS. (VII) "TROPICAL DEFORESTATION" MEANS DIRECT HUMAN-INDUCED CONVERSION OF TROPICAL FOREST TO AGRICULTURE, A TREE PLANTATION, OR OTHER NON-FOR- EST LAND USE. (VIII) "TROPICAL PRIMARY FOREST DEGRADATION" MEANS SEVERE AND SUSTAINED DEGRADATION OF A TROPICAL FOREST RESULTING IN SIGNIFICANT S. 4859 9 PRIMARY FOREST LOSS AND/OR A PROFOUND CHANGE IN SPECIES COMPOSITION, STRUCTURE, OR ECOLOGICAL FUNCTION OF THAT FOREST. (IX) "PRIMARY FOREST" MEANS A FOREST THAT HAS NEVER BEEN INDUSTRIALLY LOGGED AND HAS DEVELOPED FOLLOWING NATURAL DISTURBANCES AND UNDER NATURAL PROCESSES, REGARDLESS OF ITS AGE. PRIMARY FORESTS INCLUDE FORESTS THAT HAVE EXPERIENCED NON-INDUSTRIAL-SCALE HUMAN IMPACTS, INCLUDING TRADITIONAL OR SUBSISTENCE ACTIVITIES CARRIED OUT BY INDIGE- NOUS COMMUNITIES. (X) "NEW YORK STATE PRODUCTS" MEANS PRODUCTS THAT ARE GROWN, HARVESTED, OR PRODUCED IN THIS STATE, OR PROCESSED INSIDE OR OUTSIDE THIS STATE COMPRISING OVER FIFTY-ONE PERCENT RAW MATERIALS GROWN, HARVESTED, OR PRODUCED IN THIS STATE, BY WEIGHT OR VOLUME. (XI) "SMALL BUSINESS" MEANS SMALL BUSINESS AS DEFINED IN SECTION ONE HUNDRED THIRTY-ONE OF THE ECONOMIC DEVELOPMENT LAW. (XII) "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. (XIII) "MINORITY-OWNED BUSINESS ENTERPRISE" SHALL HAVE THE SAME MEAN- ING AS IN ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW. (XIV) "WOMEN-OWNED BUSINESS ENTERPRISE" SHALL HAVE THE SAME MEANING AS IN ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW. B. (I) EVERY CONTRACT ENTERED INTO BY A STATE AGENCY OR AUTHORITY THAT INCLUDES THE PROCUREMENT OF ANY PRODUCT COMPRISED WHOLLY OR IN PART OF A TROPICAL FOREST-RISK COMMODITY SHALL REQUIRE THAT THE CONTRACTOR CERTIFY THAT THE COMMODITY FURNISHED TO THE STATE PURSUANT TO THE CONTRACT WAS NOT EXTRACTED FROM, GROWN, DERIVED, HARVESTED, REARED, OR PRODUCED ON LAND WHERE TROPICAL DEFORESTATION OR TROPICAL PRIMARY FOREST DEGRADATION OCCURRED ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE. THE CONTRACTOR SHALL AGREE TO COMPLY WITH THIS PROVISION OF THE CONTRACT. (II) THE CONTRACT SHALL SPECIFY THAT THE CONTRACTOR IS REQUIRED TO COOPERATE FULLY IN PROVIDING REASONABLE ACCESS TO THE CONTRACTOR'S RECORDS, DOCUMENTS, AGENTS, EMPLOYEES, OR PREMISES IF REASONABLY REQUIRED BY AUTHORIZED OFFICIALS OF THE CONTRACTING AGENCY OR AUTHORITY, THE OFFICE OF GENERAL SERVICES, THE OFFICE OF THE ATTORNEY GENERAL, OR THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION, TO DETERMINE THE CONTRAC- TOR'S COMPLIANCE WITH THE REQUIREMENTS UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH. (III) CONTRACTORS SHALL EXERCISE DUE DILIGENCE IN ENSURING THAT THEIR SUBCONTRACTORS COMPLY WITH THE REQUIREMENTS UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH. CONTRACTORS SHALL REQUIRE EACH SUBCONTRACTOR TO CERTIFY THAT THE SUBCONTRACTOR IS IN COMPLIANCE WITH THE REQUIREMENTS OF SUBPAR- AGRAPH (I) OF THIS PARAGRAPH. (IV) IN ADDITION TO THE REQUIREMENTS OF SUBPARAGRAPHS (I), (II) AND (III) OF THIS PARAGRAPH, LARGE CONTRACTORS SUBJECT TO SUBPARAGRAPH (I) OF THIS PARAGRAPH MUST CERTIFY THAT THEY HAVE ADOPTED A TROPICAL FOREST POLICY THAT COMPLIES WITH REGULATIONS ISSUED PURSUANT TO SUBPARAGRAPH (VII) OF PARAGRAPH G OF THIS SUBDIVISION. THE ADOPTION OF A TROPICAL FOREST POLICY BY A CONTRACTOR, SUBCONTRACTOR, OR SUPPLIER THAT IS NOT A LARGE CONTRACTOR IS NOT REQUIRED BY THIS SUBPARAGRAPH BUT MAY BE USED TO DEMONSTRATE COMPLIANCE WITH SUBPARAGRAPH (I) OF THIS PARAGRAPH. SUCH TROPICAL FOREST POLICY AND ALL CORRESPONDING DATA SHALL BE MADE PUBLICLY AVAILABLE, AND SHALL CONTAIN AT A MINIMUM ALL OF THE FOLLOWING: A. DUE DILIGENCE MEASURES TO IDENTIFY THE POINT-OF-ORIGIN OF TROPICAL FOREST-RISK COMMODITIES AND ENSURE COMPLIANCE WITH THE POLICY WHERE SUPPLY CHAIN RISKS ARE PRESENT. S. 4859 10 B. DATA DETAILING THE COMPLETE LIST OF DIRECT AND INDIRECT SUPPLIERS AND SUPPLY CHAIN TRACEABILITY INFORMATION, INCLUDING REFINERIES, PROC- ESSING PLANTS, FARMS, AND PLANTATIONS, AND THEIR RESPECTIVE OWNERS, PARENT COMPANIES, AND FARMERS, MAPS, AND GEO-LOCATIONS, FOR EACH TROP- ICAL FOREST-RISK COMMODITY FOUND IN PRODUCTS THAT MAY BE FURNISHED TO THE STATE. C. MEASURES TAKEN TO ENSURE THE PRODUCT DOES NOT CONTRIBUTE TO TROP- ICAL DEFORESTATION OR TROPICAL PRIMARY FOREST DEGRADATION, INCLUDING: (1) NO DEVELOPMENT IN TROPICAL PRIMARY FORESTS, AND THAT THE PRODUCT DOES NOT ORIGINATE FROM A SITE WHERE COMMODITY PRODUCTION HAS REPLACED TROPICAL PRIMARY FORESTS AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE; (2) NO DEVELOPMENT OF HIGH CARBON STOCK (HCS) FORESTS; (3) NO DEVELOPMENT OF HIGH CONSERVATION VALUE (HCV) AREAS; (4) NO BURNING; (5) EFFORTS TO ENSURE PROGRESSIVE REDUCTIONS OF GREENHOUSE GAS EMIS- SIONS ON EXISTING PLANTATIONS; (6) NO DEVELOPMENT ON PEAT, REGARDLESS OF DEPTH; (7) BEST MANAGEMENT PRACTICES FOR EXISTING PLANTATIONS ON PEAT; AND (8) WHERE FEASIBLE, ACTIVITIES ORIENTED TOWARDS PEAT RESTORATION. D. MEASURES TAKEN TO PREVENT EXPLOITATION AND REDRESS GRIEVANCES OF WORKERS AND LOCAL COMMUNITIES, INCLUDING: (1) RESPECT FOR AND RECOGNITION OF THE RIGHTS OF ALL WORKERS INCLUDING CONTRACT, TEMPORARY, AND MIGRANT WORKERS. (2) RESPECT FOR AND RECOGNITION OF LAND TENURE RIGHTS OF COMMUNITIES. (3) RESPECT FOR THE RIGHTS OF INDIGENOUS AND LOCAL COMMUNITIES TO GIVE OR WITHHOLD THEIR FREE, PRIOR, AND INFORMED CONSENT TO OPERATIONS ON LANDS TO WHICH THEY HOLD LEGAL, COMMUNAL, OR CUSTOMARY RIGHTS. (4) EXPLICIT POLICIES AND PROCESSES TO PREVENT VIOLENCE, INTIMIDATION, AND COERCION OF WORKERS AND LOCAL COMMUNITIES. (5) FORMAL, OPEN, TRANSPARENT, AND CONSULTATIVE PROCESSES TO ADDRESS AND REDRESS ALL COMPLAINTS AND CONFLICTS. E. MEASURES TAKEN TO PROTECT BIODIVERSITY AND PREVENT THE POACHING OF ENDANGERED SPECIES IN ALL OPERATIONS AND ADJACENT AREAS. F. MEASURES TAKEN TO ENSURE COMPLIANCE WITH THE LAWS OF COUNTRIES WHERE TROPICAL FOREST-RISK COMMODITIES IN A COMPANY'S SUPPLY CHAIN WERE PRODUCED. G. MEASURES TO DETER VIOLENCE, THREATS, AND HARASSMENT AGAINST ENVI- RONMENTAL HUMAN RIGHTS DEFENDERS (EHRDS), INCLUDING RESPECTING INTERNA- TIONALLY RECOGNIZED HUMAN RIGHTS STANDARDS, AND EDUCATING EMPLOYEES, CONTRACTORS, AND PARTNERS ON THE RIGHTS OF EHRDS TO EXPRESS THEIR VIEWS, CONDUCT PEACEFUL PROTESTS, AND CRITICIZE PRACTICES WITHOUT INTIMIDATION OR RETALIATION. (V) THE PROVISIONS OF SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL NOT APPLY WHEN THE INCLUSION OR APPLICATION OF SUCH PROVISIONS WILL VIOLATE OR BE INCONSISTENT WITH THE TERMS OR CONDITIONS OF A GRANT, SUBVENTION OR CONTRACT WITH AN AGENCY OF THE UNITED STATES OR THE INSTRUCTIONS OF AN AUTHORIZED REPRESENTATIVE OF ANY SUCH AGENCY WITH RESPECT TO ANY SUCH GRANT, SUBVENTION OR CONTRACT. C. (I) IF IT IS DETERMINED THAT ANY CONTRACTOR CONTRACTING WITH THE STATE KNEW OR SHOULD HAVE KNOWN THAT A PRODUCT COMPRISED WHOLLY OR IN PART OF A TROPICAL FOREST-RISK COMMODITY WAS FURNISHED TO THE STATE IN VIOLATION OF PARAGRAPH B OF THIS SUBDIVISION, THE CONTRACTING AGENCY OR AUTHORITY SHALL ISSUE A WRITTEN NOTICE OF VIOLATION AND PROVIDE AN OPPORTUNITY FOR SUCH CONTRACTOR TO COME INTO COMPLIANCE. IF, AFTER SUCH NOTICE, A CONTRACTOR FAILS TO COME INTO COMPLIANCE WITHIN A TIMEFRAME ESTABLISHED BY THE DEPARTMENT, SUCH CONTRACTOR MAY, SUBJECT TO SUBPARA- S. 4859 11 GRAPH (II) OF PARAGRAPH B OF THIS SUBDIVISION, HAVE EITHER OR BOTH OF THE FOLLOWING SANCTIONS IMPOSED: A. THE CONTRACT UNDER WHICH THE PROHIBITED TROPICAL FOREST-RISK COMMODITY WAS FURNISHED MAY BE VOIDED AT THE OPTION OF THE STATE AGENCY OR AUTHORITY TO WHICH THE COMMODITY WAS FURNISHED. B. THE CONTRACTOR MAY BE ASSESSED A PENALTY THAT SHALL BE THE GREATER OF ONE THOUSAND DOLLARS OR AN AMOUNT EQUALING TWENTY PERCENT OF THE VALUE OF THE PRODUCT THAT THE STATE AGENCY OR AUTHORITY DEMONSTRATES WAS COMPRISED WHOLLY OR IN PART OF A TROPICAL FOREST-RISK COMMODITY AND FURNISHED TO THE STATE IN VIOLATION OF PARAGRAPH B OF THIS SUBDIVISION. A HEARING OR OPPORTUNITY TO BE HEARD SHALL BE PROVIDED PRIOR TO THE ASSESSMENT OF ANY PENALTY. (II) NOTWITHSTANDING SUBPARAGRAPH (I) OF THIS PARAGRAPH, A CONTRACTOR THAT HAS COMPLIED WITH THE PROVISIONS OF SUBPARAGRAPH (III) OF PARAGRAPH B OF THIS SUBDIVISION SHALL NOT BE SUBJECT TO SANCTIONS FOR VIOLATIONS, OF WHICH THE CONTRACTOR HAD NO KNOWLEDGE, OF THE REQUIREMENTS OF PARA- GRAPH B OF THIS SUBDIVISION THAT WERE COMMITTED SOLELY BY A SUBCONTRAC- TOR. SANCTIONS DESCRIBED UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL INSTEAD BE IMPOSED AGAINST THE SUBCONTRACTOR THAT COMMITTED THE VIOLATION. D. (I) ANY STATE AGENCY OR AUTHORITY THAT INVESTIGATES A COMPLAINT AGAINST A CONTRACTOR OR SUBCONTRACTOR FOR VIOLATION OF THIS SUBDIVISION MAY LIMIT ITS INVESTIGATION TO EVALUATING THE INFORMATION PROVIDED BY THE PERSON OR ENTITY SUBMITTING THE COMPLAINT AND THE INFORMATION PROVIDED BY THE CONTRACTOR OR SUBCONTRACTOR. (II) WHENEVER A CONTRACTING OFFICER OF THE CONTRACTING AGENCY OR AUTHORITY HAS REASON TO BELIEVE THAT THE CONTRACTOR FAILED TO COMPLY WITH PARAGRAPH B OF THIS SUBDIVISION, THE AGENCY OR AUTHORITY SHALL REFER THE MATTER FOR INVESTIGATION TO THE HEAD OF THE AGENCY OR AUTHORI- TY AND, AS THE HEAD OF THE AGENCY OR AUTHORITY DETERMINES APPROPRIATE, TO EITHER THE OFFICE OF GENERAL SERVICES, THE OFFICE OF THE ATTORNEY GENERAL, OR THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION. E. (I) WHEN A STATE AGENCY OR AUTHORITY'S CONTRACT FOR THE PURCHASE OF A COMMODITY OR PRODUCT COVERED BY THIS SUBDIVISION IS TO BE AWARDED TO THE LOWEST RESPONSIBLE BIDDER, AN OTHERWISE QUALIFIED BIDDER WHO IS A SMALL OR MEDIUM-SIZED BUSINESS OR A MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE, OR WHO WILL FULFILL THE CONTRACT THROUGH THE USE OF NEW YORK STATE PRODUCTS, MAY BE GIVEN PREFERENCE OVER OTHER BIDDERS, PROVIDED THAT THE COST INCLUDED IN THE BID IS NOT MORE THAN TEN PERCENT GREATER THAN THE COST INCLUDED IN A BID THAT IS NOT FROM A SMALL OR MEDIUM-SIZED BUSINESS OR A MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE OR FULFILLED THROUGH THE USE OF NEW YORK STATE PRODUCTS. (II) THE PROVISIONS OF THIS PARAGRAPH SHALL NOT APPLY IF THE HEAD OF THE CONTRACTING STATE AGENCY OR AUTHORITY PURCHASING SUCH PRODUCTS, IN HIS OR HER SOLE DISCRETION, DETERMINES THAT GIVING PREFERENCE TO BIDDERS PURSUANT TO THE PROVISIONS OF THIS PARAGRAPH WOULD BE: (A) AGAINST THE PUBLIC INTEREST; (B) WOULD INCREASE THE COST OF THE CONTRACT BY AN UNREASONABLE AMOUNT; OR (C) NEW YORK STATE PRODUCTS CANNOT BE OBTAINED IN SUFFICIENT AND REASONABLE AVAILABLE QUANTITIES AND OF SATISFACTORY QUALITY TO MEET THE CONTRACTING STATE AGENCY OR AUTHORITY'S REQUIREMENTS. (III) NOTHING IN THIS PARAGRAPH SHALL BE CONSTRUED TO CONFLICT WITH OR OTHERWISE LIMIT THE GOALS AND REQUIREMENTS SET FORTH BY SECTION ONE HUNDRED SIXTY-TWO OF THIS ARTICLE AND ARTICLES FIFTEEN-A AND SEVENTEEN-B OF THE EXECUTIVE LAW. S. 4859 12 F. (I) THE COMMISSIONER OF THE OFFICE OF GENERAL SERVICES SHALL CONVENE A STAKEHOLDER ADVISORY GROUP WHICH SHALL BE CONSULTED ON THE CREATION OF REGULATIONS PURSUANT TO PARAGRAPH G OF THIS SUBDIVISION. MEMBERS OF THE ADVISORY GROUP SHALL BE SELECTED BY THE COMMISSIONER AND SHALL CONSIST OF AT LEAST: (A) REPRESENTATIVES OF CURRENT OR FORMER STATE CONTRACTORS DEALING IN EACH OF THE TROPICAL FOREST-RISK COMMODITIES SPECIFIED IN SUBPARAGRAPH (II) OF PARAGRAPH A OF THIS SUBDIVISION, WITH AN EMPHASIS ON SMALL AND MEDIUM-SIZED BUSINESSES; (B) REPRESENTATIVES FROM CIVIL SOCIETY WITH RELEVANT EXPERTISE IN SUPPLY CHAIN TRACEABILITY, TROPICAL FOREST SUSTAINABILITY, BIODIVERSITY, CLIMATE SCIENCE, HUMAN AND LABOR RIGHTS, AND INDIGENOUS RIGHTS. MEMBERS SELECTED PURSUANT TO THIS CLAUSE SHOULD BE OF AT LEAST EQUAL NUMBER TO MEMBERS SELECTED PURSUANT TO CLAUSE (A) OF THIS SUBPARAGRAPH; AND (C) A MINIMUM OF TWO ADDITIONAL REPRESENTATIVES FROM INDIGENOUS COMMU- NITIES WITHIN THE GEOGRAPHIC AREAS CONTAINING TROPICAL FORESTS COVERED BY THIS SUBDIVISION. (II) MEMBERS OF THE STAKEHOLDER ADVISORY GROUP SHALL RECEIVE NO SALA- RY, BUT SHALL BE REIMBURSED BY THE OFFICE OF GENERAL SERVICES FOR ANY NECESSARY TRAVEL EXPENSES RELATED TO PARTICIPATING IN THE STAKEHOLDER ADVISORY GROUP. G. ON OR BEFORE JULY FIRST, TWO THOUSAND TWENTY-FOUR, THE OFFICE OF GENERAL SERVICES SHALL ISSUE REGULATIONS FOR THE IMPLEMENTATION OF THIS SUBDIVISION. SUCH REGULATIONS SHALL BE DEVELOPED IN CONSULTATION WITH THE STAKEHOLDER ADVISORY GROUP ESTABLISHED IN PARAGRAPH F OF THIS SUBDI- VISION AND THE COMMISSIONER OF THE DEPARTMENT OF ENVIRONMENTAL CONSER- VATION. SUCH REGULATIONS SHALL INCLUDE, BUT NOT BE LIMITED TO, ALL OF THE FOLLOWING: (I) A LIST OF TROPICAL FOREST-RISK COMMODITIES SUBJECT TO THE REQUIRE- MENTS OF THIS SUBDIVISION, INCLUDING, BUT NOT LIMITED TO, PALM OIL, SOY, BEEF, COFFEE, COCOA, WOOD PULP, PAPER, LOGS, AND LUMBER. THE LIST SHALL BE REVIEWED AND UPDATED AT LEAST EVERY THREE YEARS. WHEN EVALUATING INCLUSION OF ADDITIONAL COMMODITIES IN THE LIST, THE COMMISSIONER OF THE OFFICE OF GENERAL SERVICES SHALL CONSIDER THE IMPACT OF THE COMMODITY AS A DRIVER OF TROPICAL DEFORESTATION OR TROPICAL PRIMARY FOREST DEGRADA- TION, THE STATE OF EXISTING SUPPLY CHAIN TRANSPARENCY AND TRACEABILITY SYSTEMS FOR THE COMMODITY, AND THE FEASIBILITY OF INCLUDING THE COMMOD- ITY IN THE REQUIREMENTS OF PARAGRAPH B OF THIS SUBDIVISION. THE FIRST REVIEW SHALL INCLUDE, BUT NOT BE LIMITED TO EVALUATION OF RUBBER, LEATH- ER AND OTHER CATTLE-DERIVED PRODUCTS, AND MINING PRODUCTS INCLUDING COAL, IRON, COPPER, GOLD, TIN, DIAMONDS, MANGANESE, BAUXITE AND NICKEL. (II) A LIST OF PRODUCTS DERIVED WHOLLY OR IN PART FROM TROPICAL FOREST-RISK COMMODITIES. (III) A LIST OF PRODUCTS FURNISHED TO THE STATE OR USED BY STATE CONTRACTORS IN HIGH-VOLUME PURCHASES THAT CONTAIN OR ARE COMPRISED WHOL- LY OR IN PART OF TROPICAL FOREST-RISK COMMODITIES. (IV) A SET OF RESPONSIBLE SOURCING GUIDELINES AND POLICIES DERIVED FROM BEST PRACTICES IN SUPPLY CHAIN TRANSPARENCY TO THE POINT-OF-ORIGIN. (V) GUIDANCE TO ASSIST CONTRACTORS IN IDENTIFYING TROPICAL FOREST-RISK COMMODITIES IN THEIR SUPPLY CHAIN, PERFORMING NECESSARY DUE DILIGENCE TO MEET THE REQUIREMENTS OF THIS SUBDIVISION, AND CERTIFYING THAT THE COMMODITY DID NOT CONTRIBUTE TO TROPICAL DEFORESTATION OR TROPICAL PRIMARY FOREST DEGRADATION. (VI) A LIST OF FAVORED SUPPLIERS OF TROPICAL FOREST-RISK COMMODITIES AND PRODUCTS DERIVED THEREFROM WHOSE PRODUCTS HAVE BEEN DETERMINED TO MEET THE REQUIREMENTS OF THIS SUBDIVISION. S. 4859 13 (VII) THE FULL SET OF REQUIREMENTS FOR A LARGE CONTRACTOR'S TROPICAL FOREST POLICY PURSUANT TO SUBPARAGRAPH (IV) OF PARAGRAPH B OF THIS SUBDIVISION. (VIII) THE PROCESS THROUGH WHICH CONTRACTORS SHALL CERTIFY TO THE OFFICE OF GENERAL SERVICES THAT THEY ARE IN COMPLIANCE WITH PARAGRAPH B OF THIS SUBDIVISION. (IX) A PROCESS FOR ENSURING THAT DETAILS OF CERTIFIED CONTRACTS ARE MADE AVAILABLE FOR PUBLIC INSPECTION ON THE WEBSITE OF THE OFFICE OF GENERAL SERVICES. (X) AN EASILY ACCESSIBLE PROCEDURE TO RECEIVE PUBLIC COMPLAINTS AND INFORMATION REGARDING VIOLATIONS OF THIS SUBDIVISION. H. (I) THE CERTIFICATION REQUIREMENTS SET FORTH IN THIS SUBDIVISION SHALL NOT APPLY TO A CREDIT CARD PURCHASE OF GOODS OF TWO THOUSAND FIVE HUNDRED DOLLARS OR LESS. (II) THE TOTAL AMOUNT OF GOODS EXEMPTED PURSUANT TO SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL NOT EXCEED SEVEN THOUSAND FIVE HUNDRED DOLLARS PER YEAR FOR EACH CONTRACTOR FROM WHICH A STATE AGENCY OR AUTHORITY IS PURCHASING GOODS BY CREDIT CARD. IT SHALL BE THE RESPONSIBILITY OF EACH STATE AGENCY TO MONITOR THE USE OF THIS EXEMPTION AND ADHERE TO THESE RESTRICTIONS ON THESE PURCHASES. I. THIS SUBDIVISION SHALL APPLY TO ALL CONTRACTS ENTERED INTO, EXTENDED, OR RENEWED ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY- FIVE. J. COMMENCING TWO YEARS AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION AND BIENNIALLY THEREAFTER, THE COMMISSIONER OF THE OFFICE OF GENERAL SERVICES SHALL ISSUE A REPORT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE SPEAKER OF THE ASSEMBLY, ON THE IMPLEMENTATION OF THIS SUBDIVISION AND SUBDIVISIONS ONE AND TWO OF THIS SECTION. § 6. The economic development law is amended by adding a new article 27 to read as follows: ARTICLE 27 SUPPLY CHAIN TRANSPARENCY ASSISTANCE PROGRAM SECTION 490. DEFINITIONS. 491. THE SUPPLY CHAIN TRANSPARENCY ASSISTANCE PROGRAM. § 490. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE: 1. "SMALL BUSINESS" MEANS A 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 OR WOMEN-OWNED BUSINESS 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. § 491. 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 S. 4859 14 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 AND RELEVANT INFORMATION REGARDING ALL UNITS OF PRODUCTION FURTHER UP THE SUPPLY CHAIN TO DETERMINE WHETHER A SUPPLY CHAIN IS ETHICAL AND SUSTAINABLE. (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. § 7. This act shall take effect immediately and shall apply to all contracts and binding contractual obligations entered into on and after such effective date.
co-Sponsors
(D, WF) 56th Senate District
(D, WF) 48th Senate District
(D, WF) 46th Senate District
(D, WF) 25th Senate District
(D, WF) 17th Senate District
(D) 30th Senate District
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2023-S4859A (ACTIVE) - Details
2023-S4859A (ACTIVE) - Summary
Enacts the New York tropical deforestation-free procurement act requiring that companies contracting with the state do not contribute to tropical primary forest degradation or deforestation directly or through their supply chains; establishes the supply chain transparency assistance program to assist small and medium-sized businesses and minority- and women-owned businesses in achieving compliant supply chains.
2023-S4859A (ACTIVE) - Sponsor Memo
BILL NUMBER: S4859A SPONSOR: KRUEGER TITLE OF BILL: An act to amend the state finance law, in relation to enacting the New York tropical deforestation-free procurement act; and to amend the economic development law, in relation to establishing the supply chain transparency assistance program PURPOSE: The purpose of the bill is to ensure companies contracting with the state are not contributing to tropical primary forest degradation or tropical deforestation directly or through their supply chains. SUMMARY OF SPECIFIC PROVISIONS: Section 1: Names the act the "New York Tropical Deforestation-Free Procurement Act." Section 2: Legislative findings.
Section 3: Amends subdivision 1 of section 165 of the state finance law. Updates the species included in the list of tropical hardwoods subject to purchasing limitations. Updates the definition of "tropical forests" and "tropical wood products," and adds definitions of "peat" and "trop- ical peat lands." Section 4: Amends subdivision 2 of section 165 of the state finance law. Removes certain exemptions from purchasing limitations for tropical hardwoods. Section 5: Amends section 165 of the state finance law by adding a new subdivision 9. -Paragraph a: Establishes definitions. -Paragraph b: Requires state contractors and subcontractors selling Tropical forest-risk commodities to the state to certify that the commodity did not originate on land where tropical deforestation or tropical primary forest degradation occurred on or after January 1st, 2023. This requirement would not apply to primary, secondary, or terti- ary packaging for certain purposes. Requires contractors to cooperate with state agencies investigating compliance. Additionally, requires large contractors whose annual revenue is greater than $100 million to certify that they have adopted a tropical forest policy as defined in the statute. Smaller contractors may choose to use the adoption of a tropical forest policy to demonstrate compliance with certification requirements. -Paragraph c: Establishes an opportunity for contractors found to be in violation to come into compliance, followed by possible sanctions including voiding the contract, and/or assessing a penalty that is the greater of $1,000 or an amount equal to 20% of the value of the product furnished to the state in violation of the statute. -Paragraph d: Details the process of investigating complaints. -Paragraph e: When a state agency or authority's contract for the purchase of covered commodities or products is to be awarded to the lowest responsible bidder, establishes a contracting preference for New York-based small and medium-sized businesses, MWBEs, or businesses supplying New York State products, provided that they are otherwise qualified and that their bids are not more than 10% greater than the lowest qualified non-preferred bid. -Paragraph f: Requires the OGS Commissioner to convene a stakeholder advisory group to be consulted on the creation of regulations. -Paragraph g: Requires the OGS Commissioner, on or before July 1st, 2024, in consultation with the stakeholder advisory group and the Commissioner of the Department of Environmental Conservation, to issue regulations for implementation and to assist contractors with compli- ance. -Paragraph h: Exempts from certification requirements credit card purchases of $2,500 or less, totaling no more than $7,500 per year for each contractor from which a purchase is being made. -Paragraph i: Establishes that this subdivision shall apply to all contracts entered into, extended, or renewed on or after January 1st, 2025. -Paragraph j: Requires the OGC Commissioner to issue a biennial report on the implementation of this legislation. Section 6: Amends the Economic Development Law to create the Supply Chain Transparency Assistance Program. Section 7: Effective date. JUSTIFICATION: Tropical forests cover roughly 7 percent of Earth's surface, but harbor close to 50 percent of all species on Earth. Those species are now going extinct at a rate that is at least 100 to 1,000 times higher than historical levels, due to human activity. Globally, an estimated 18,000,000 acres of forest, an area more than half the size of New York State, are lost every year to deforestation according to the Food and Agriculture Organization of the United Nations, with over one-half of Earth's tropical forests already gone. At the current pace, the entirety of Earth's tropical rainforests will be degraded or destroyed within the next 100 years. An estimated 30 percent of the world's greenhouse gas emissions come from deforestation and forest degradation. Taking into account carbon sequestration potential, stopping the loss of tropical forests, mangroves, and wetlands could provide over 20 percent of necessary climate mitigation by 2030. Loss of biodiversity resulting from forest degradation and deforesta- tion, as well as human encroachment on formerly undisturbed ecosystems, increases the risks of zoonotic disease pandemics such as COVID-19. In addition, tropical deforestation in many countries is closely associ- ated with violations of the land rights of indigenous peoples and local communities and with the exploitation of workers, including forced labor and child labor, and in many cases is enabled by corruption, criminali- ty, and violence against conservationists and land defenders. The prima- ry factor leading to tropical deforestation is degradation and road- building associated with logging for timber, while the largest direct cause of tropical deforestation is industrial-scale production of agri- cultural commodities. Together, these are increasingly known as "forest-risk commodities." New York, which has one of the largest economies in the world and a state government with significant purchasing power, is inadvertently promoting and sanctioning tropical primary forest degradation and trop- ical deforestation through the purchase of goods and products that have been produced in supply chains that contribute to tropical primary forest degradation and tropical deforestation. This bill will update and close loopholes in existing statutes that limit the purchase of tropical hardwoods, and create a new statute requiring contractors that sell tropical forest-risk commodities to state agencies or authorities to certify that they are not contributing to tropical primary forest degradation or tropical deforestation direct- ly or through their supply chains. The bill would also create a Supply Chain Transparency Assistance Program to help New York's small- and medium-sized businesses, as well as minority-and women-owned businesses who choose to establish more ethical and sustainable supply chains, while ensuring they have the tools they need to compete in the national and global marketplace. LEGISLATIVE HISTORY: 2021-22: S.5921A/A.6872A:Died on Third Reading FISCAL IMPACT ON THE STATE: Undetermined. EFFECTIVE DATE: Amendments to subdivisions 1 and 2 of section 165 of the state finance law shall take effect immediately and shall apply to all contracts and binding contractual obligations entered into on and after such effective date. The new subdivision 9 of section 165 of the state finance law shall apply to all contracts entered into, extended, or renewed on or after January first, two thousand twenty-five.
2023-S4859A (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 4859--A 2023-2024 Regular Sessions I N S E N A T E February 16, 2023 ___________ Introduced by Sens. KRUEGER, COONEY, MAY, BRESLIN, BRISPORT, CHU, CLEARE, COMRIE, FERNANDEZ, HARCKHAM, HINCHEY, HOYLMAN-SIGAL, JACKSON, SALAZAR, SANDERS, SEPULVEDA, SERRANO, SKOUFIS, STAVISKY -- read twice and ordered printed, and when printed to be committed to the Committee on Procurement and Contracts -- reported favorably from said committee and committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the state finance law, in relation to enacting the New York tropical deforestation-free procurement act; and to amend the economic development law, in relation to establishing the supply chain transparency assistance program THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. This act shall be known and may be cited as the "New York tropical deforestation-free procurement act". § 2. Legislative findings. The legislature finds and declares the following: 1. Tropical forests cover roughly 7 percent of Earth's surface, but harbor close to 50 percent of all species on Earth. 2. Human activity is the driving force behind the current rate of species extinction, which is at least 100 to 1,000 times higher than historical levels. The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services reported in 2019 that around 1 million animal and plant species are now threatened with extinction, many within decades, more than ever before in human history. This is directly linked to habitat loss, with more than a third of the world's land surface and nearly 75 percent of freshwater resources now devoted to crop or livestock production. 3. Globally, an estimated 18,000,000 acres of forest, an area more than half the size of New York state, are lost every year to deforesta- EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07504-04-3
S. 4859--A 2 tion according to the Food and Agriculture Organization of the United Nations, with over one-half of Earth's tropical forests already gone. At the current pace, the entirety of Earth's tropical rainforests will be degraded or destroyed within the next 100 years. 4. It has been estimated that at least 30 percent of the world's greenhouse gas emissions come from deforestation and forest degradation. Taking into account carbon sequestration potential, stopping the loss of tropical forests, mangroves, and wetlands could provide over 20 percent of climate mitigation by 2030. 5. Loss of biodiversity resulting from forest degradation and defores- tation, as well as human encroachment on formerly undisturbed ecosys- tems, increases the risks of zoonotic disease pandemics such as COVID- 19. 6. New York state is a leader in addressing the climate crisis, with a statutory goal of achieving net-zero greenhouse gas emissions economy- wide by 2050. 7. Tropical deforestation in many countries is closely associated with violations of the land rights of indigenous peoples and local communi- ties and with the exploitation of workers, including forced labor and child labor, and in many cases is enabled by corruption, criminality, and violence against conservationists and land defenders. 8. Tropical deforestation in many countries is also closely associated with illegal wildlife trafficking, including, but not limited to, vari- ous bird and reptile species, and many primate species, including great apes, pangolins, and orangutans, as well as many tree and plant species, including mahoganies, rosewoods, ebony, and ipe, all of which have recently been listed on the Convention of International Trade in Endan- gered Species of Fauna and Flora (CITES). 9. The primary factors leading to tropical deforestation are degrada- tion and road-building associated with logging for timber, which opens the door for deforestation caused by industrial-scale production of agricultural commodities and conversion of forests into plantations for the timber, pulp, paper, palm oil, soy, and livestock industries, among others. Together, these are increasingly known as "forest-risk commod- ities". 10. New York is inadvertently promoting and sanctioning deforestation and primary forest degradation through the purchase of goods and products that have been produced in supply chains that contribute to tropical deforestation and tropical primary forest degradation. 11. New York has one of the largest economies in the world and its purchasing power has significant market force, allowing it to play a leadership role in preventing forest loss and supporting markets for sustainably-sourced products. 12. It is the intent of the legislature that it be the policy of this state to ensure companies contracting with the state are not contribut- ing to tropical deforestation or tropical primary forest degradation directly or through their supply chains. § 3. Paragraphs b, c, d and e of subdivision 1 of section 165 of the state finance law, as added by chapter 83 of the laws of 1995, are amended to read as follows: b. "Tropical hardwood" shall mean any and all hardwood, scientifically classified as angiosperm, that grows in any tropical [moist] forest. Tropical hardwoods shall [be] INCLUDE BUT NOT BE LIMITED TO the follow- ing species: Scientific Name EXAMPLES OF Common [Name] NAMES S. 4859--A 3 PRUNUS AFRICANA AFRICAN CHERRY, RED STINKWOOD CARYOCAR COSTARICENSE AJO, AJI CALOPHYLLUM SPP. BINTANGOR CEDRELA SPP. CEDAR NEOBALANOCARPUS HEIMII, CHENGAL BALANOCARPUS HEIMII OCTOMELES SUMATRANA MIQ. ERIMA, BENUANG MYROXYLON BALSAMUM ESTORAQUE APULEIA LEIOCARPA GARAPA PARASTEMON UROPHYLLUS, PARASTEMON MALAS SPICATUS RIDLEY HOPEA SPP. MERAWAN ARAUCARIA ARAUCANA MONKEY PUZZLE, CHILEAN PINE PTEROCARPUS TINCTORIUS MUKULA SENNA SIAMEA SIAMESE SENNA POMETIA PINATA TAUN MILLETIA LEUCANTHA KURZ THINWIN BULNESIA ARBOREA, BULNESIA VERAWOOD, ARGENTINE LIGNUM SARMIENTOI VITAE TRISTANIOPSIS LAURINA WATER GUM TERMINALIA SPP. HOMALIUM FOETIDUM MALAS DILLENIA PAPUANA DILLENIA CANARIUM SPP. RED CANARIUM, GREY CANARIUM BURKRELLA MACROPODA RANG RANG OCTOMELES SUMATRANA ERIMA, BENUANG DRACONTOMELON DAO NEW GUINEA WALNUT PLANCHONELLA SPP. WHITE PLANCHONELLA, RED PLANCHONELLA LOPHOPETALUM SPP. PERUPOK CARINIAN PYRIFORMIS ABARCO, JEQUITIBA MITRAGYNA CILIATE ABURA Vouacapous americana Acapu AMBURANA CAERENSIS AMBURANA, CEREJEIRA DALBERGIA MELANOXYLON AFRICAN BLACKWOOD LOVOA SPP. AFRICAN WALNUT, TIGERWOOD Pericopsis elata [Afrormosis] AFRORMOSIA [Shorea almon] [Almon] ASPIDOSPERMA MEGALOCARPON ACARETTO Peltogyne spp. Amaranth, PURPLEHEART TERMINALIA AMAZONIA AMARILLO REAL [Guibourtis] Guibourtia ehie Amazaque AMBURANA CEARENSIS AMBURANA, CEREJEIRA, CUMARE PTEROGYNE NITENS AMENDOIM CARAPA GUIANENSIS ANDIROBA, FALSE MAHOGANY DICORYNIA GUIANENSIS ANGILIQUE CRIS [Aningeris] ANINGERIA spp. Aningeria, ANEGRE, ANIGRE Dipterocarpus [grandiflorus] [Apilong] APITONG, KERUING SPP. CENTROLOBIUM SPP. ARARIBA, AMARILLO BROSIMUM UTILE BACO SHOREA SPP. BALAU, SELANGAN BATU Ochroma lagopus Balsa OCHROMA PYRAMIDALE BALSA MYROXYLON BALSAMUM BALSAMO S. 4859--A 4 [Virola spp.] [Banak] Anisoptera thurifera Bella [Rose] ROSA [Guibourtis] GUIBOURTIA arnoldiana Benge, MUTENYE BERLINIA SPP. BERLINIA, ROSE ZEBRANO SYMPHONIA GLOBULIFERA BOAR WOOD Deterium [Senegalese] SENEGALESE Boire CAESALPINIA ECHINTATA, BRAZILWOOD, PERNAMBUCO PAUBRASILIA ESCHINATA BERTHOLLETIA EXCELS BRAZIL TREE BROSIMUM ALICASTRUM BREADNUT GUILBOURTIA SPP. BUBINGA, AFRICAN (G. DEMUSEI, G. PELLEGRINIANA, ROSEWOOD, KEVAZINGO G. TESSMANNII) TOONA CALANTAS, CEDRELA CALANTAS CALANTAS, KALANTAS Priora copaifera Cativo CEDRELA ODORATA, CEDRELA FISSILIS CEDRO, CEDAR, SPANISH CEDAR, SOUTH AMERICAN CEDAR CEIBA PENTANDRA CEIBA Antiaris africana Chenchen, ANTIARIS COURATARI GUIANENSIS COCO BLANCO [Dalbergis] DALBERGIA retusa [Concobola] COCOBOLO, GRANADILLO TABEBUIA DONNELL-SMITHII COPAL DANIELLIA SPP. COPAL, DANIELLIA Cordia spp. Cordia, BOCOTE, ZIRICOTE, LOURO HYMENAEA COURBARIL COURBARIL, WEST INDIAN LOCUST DIPTERYX ODORATA CUMARU PIPTADENIASTRUM AFRICANUM DAHOMA, BANZU CALYCOPHYLLUM CANDIDISSIMUM DEGAME, LEGAME LANCEWOOD, LEMONWOOD AFZELIA SPP. DOUSSIE, LINGUE [Diospyros] DIOSPYRUS spp. Ebony, MACASSAR EBONY, CEYLON EBONY LOPHIRA ALATA EKKI, AZOBE, BANGASSI, AKOURA, RED IRONWOOD COMBRETODENDRON MACROCARPUM ESIA, ESSIA CORDIA GOELDIANA FREIJO, CORDIA WOOD CHLOROPHORA TINCTORIA FUSTIC, YELLOW WOOD, TATAJUBA [Aucoumes] AUCOUMEA klaineana Gaboon, OKOUME ASTRONIUM SPP. GONCALO ALVES, ZEBRAWOOD, TIGERWOOD OCOTEA RODIAEI GREENHEART ENTEROLOBIUM CYCLOCARPUM GUANACASTE, RAIN TREE, ELEPHANT EAR GUAREA SPP. GUAREA, BOSSE TERMINALIA IVORENSIS IDIGBO, FRAMIRE, BLACK AFARA PHOEBE POROSA IMBUIA, IMBUYA, EMBUIA, BRAZILIAN WALNUT HANDROANTHUS SPP. IPE, BRAZILIAN WALNUT, BETHABARRA, PAU D'ARCO, IRONWOOD, LAPACHO Chlorophors excelsa Iroko S. 4859--A 5 HYMENAEA COURBARIL JATOBA, "BRAZILIAN CHERRY" JACARANDA COPAIA JACARANDA MACHAERIUM VILLOSUM JACARANDA PARDO DYERA COSTULATA JELUTONG DRYOBALANOPS SPP. KAPUR, KELADAN KOOMPASSIA MALACCENSIS KEMPAS, IMPAS Acacia koa Koa [Entandrophragm a] ENTANDROPHRAGMA CKOSIPO,IOMU Pterygota macrocarpa Koto, AFRICAN PTERYGOTA, WARE OXANDRA LANCEOLATE LANCEWOOD Shorea SPP. [negrosensis] [Red] Lauan, LUAN, LAWAAN, MERANTI, WHITE MERANTI, YELLOW MERANTI, DARK RED MERANTI, LIGHT RED MERANTI, SERAYA, TANGUILE, BANG, PHILIPPINE MAHOGANY [Pentacme contorta] [White Lauan] [Shores ploysprma] [Tanguile] NOTHOFAGUS PUMILIO LENGA GUAIACUM OFFICINALE LIGNUM VITAE, GUAYACAN, IRONWOOD Terminalia superba Limba, AFARA, OFRAM [Aniba duckei] ANIBA ROSEDORA [Louro] BRAZILIAN ROSEWOOD, PAU ROSA, BOIS DE ROSE NECTANDRA SPP. LOURO PRETO [Kyaya ivorensis] KHAYA SPP. [Africa] AFRICAN Mahogany [Swletenia macrophylla] [Amer. Mahogany] SWIETENIA SPP. AMERICAN MAHOGANY, WEST INDIAN MAHOGANY, CENTRAL AMERICAN MAHOGANY, HONDURAN MAHOGANY, SOUTH AMERICAN MAHOGANY, MEXICAN MAHOGANY, BIGLEAF MAHOGANY, LITTLE LEAF MAHOGANY, ACAJOU, CAOBA MOGNO Tieghemella [leckellii] HECKELII [Makora] MAKORE, BAKU DIOSPYROS MARMORATA MARBLEWOOD, ZEBRAWOOD INTSIA BIJUGA, INTSIA PALEMBANICA MERBAU, IPIL, KWILA ANISOPTERA SPP. MERSAWA, KRABAK, PALOSAPIS MORA EXCELSA MORA Distemonanthus benthamianus Movingui, AYAN TERMINALIA AMAZONIA NARGUSTA PTEROCARPUS SPP. NARRA, AMBYNA, PAPUA NEW GUINEA ROSEWOOD, RED SANDERS, MUKULA, KOSSO, ZITAN, HONGMU PALAQUIUM SPP. NYATOH, PADANG, PENCIL CEDAR TRIPLOCHITON SCLEROXYLON OBECHE, SAMBA NAUCLEA DIDERRICHII OPEPE, SIBO Pterocarpus [soyauxii] SPP. [African] Padauk, VERMILLION WOOD [Pterocarpus angolensis] [Angola Padauk] S. 4859--A 6 MILLETTIA STUHLMANNII PANGA PANGA BALFOURODENDRON RIEDELIANUM PAU MARFIM Aspidosperma spp. Peroba, ROSA PARATECOMA PEROBA PEROBA BRANCA DALBERGIA FRUTESCENS, D. TOMENTOSA PINKWOOD, BRAZILIA TULIPWOOD TABEBUIA DONNELL-SMITHII PRIMA VERA, ROBLE, DURANGO Peltogyne spp. Purpleheart Gonystylus spp. Ramin MELANORRHOEA CURTISII RENGAS, BORNEO ROSEWOOD NOTHOFAGUS OBLIQUA ROBLE HEVEA BRASILIENSIS RUBBERWOOD Dalbergia spp. Rosewood, INDIAN ROSEWOOD, HONDURAS ROSEWOOD, COCOBOLO, GRANADILLO ANIBA DUCKEI BRAZILIAN ROSEWOOD [Entandrophragm a] ENTANDROPHRAGMA cylindricum [Sapela] SAPELE, SAPELLI ACANTHOPANAX RICINOFOLIUS SEN, CASTOR ARABIA BROSIMUM AUBLETTI, PIRATINERA SNAKEWOOD, LETTERWOOD, LEOPARD GUIANENSIS WOOD [Shores phillippinensis] [Sonora] JUGLANS SPP. (JUGLANS SOUTH AMERICAN WALNUT, PERUVIAN AUSTRALIS, J. NEOTROPICA, WALNUT, TROPICAL WALNUT J. OLANCHANA, ETC.) STERCULIA RHINOPETALA STERCULIA BAGASSA GUIANENSIS TATAJUBA, BAGASSE Tectona grandis Teak Lovoa trichilloides Tigerwood ENTANDROPHRAGMA UTILE UTILE, SIPO VIROLA SPP. VIROLA, CUMALA, BANAK, TAPSAVA Milletia laurentii Wenge PENTACME CONTORTA WHITE LAUAN Microberlinia [brazzavillensis] Zebrawood, SPP. ZEBRANO, ZINGANA c. "Tropical [rain] forests" shall mean [any and all forests classi- fied by the scientific term "Tropical moist forests", the classification determined by the equatorial region of the forest and average rainfall] A NATURAL ECOSYSTEM WITHIN THE TROPICAL REGIONS, APPROXIMATELY BOUNDED GEOGRAPHICALLY BY THE TROPICS OF CANCER AND CAPRICORN, BUT POSSIBLY AFFECTED BY OTHER FACTORS SUCH AS PREVAILING WINDS, CONTAINING NATIVE SPECIES COMPOSITION, STRUCTURE, AND ECOLOGICAL FUNCTION, WITH A TREE CANOPY COVER OF MORE THAN TEN PERCENT OVER AN AREA OF AT LEAST 0.5 HECTARES. "TROPICAL FORESTS" SHALL INCLUDE ALL OF THE FOLLOWING: (I) HUMAN-MANAGED TROPICAL FORESTS OR PARTIALLY DEGRADED TROPICAL FORESTS THAT ARE REGENERATING; AND (II) TROPICAL FORESTS IDENTIFIED BY MULTI-OB- JECTIVE CONSERVATION BASED ASSESSMENT METHODOLOGIES, SUCH AS HIGH CONSERVATION VALUE (HCV) AREAS, AS DEFINED BY THE HCV RESOURCE NETWORK, OR HIGH CARBON STOCK FORESTS, AS DEFINED BY THE HIGH CARBON STOCK APPROACH, OR BY ANOTHER METHODOLOGY WITH EQUIVALENT OR HIGHER STANDARDS THAT INCLUDES PRIMARY FORESTS AND TROPICAL PEATLANDS OF ANY DEPTH. "TROPICAL FORESTS" SHALL NOT INCLUDE TREE PLANTATIONS OF ANY TYPE. d. "Tropical HARDWOOD products" shall mean any wood products, whole- sale or retail, in any form, including but not limited to PLYWOOD, veneer, furniture, cabinets, paneling, SIDING, moldings, DOORS, doors- S. 4859--A 7 kins, joinery, FLOORING or sawnwood, which are composed, IN WHOLE OR IN PART, of tropical hardwood [except plywood]. e. "PEAT" MEANS A SOIL THAT IS RICH IN ORGANIC MATTER COMPOSED OF PARTIALLY DECOMPOSED PLANT MATERIALS EQUAL TO OR GREATER THAN 40 CENTI- METERS OF THE TOP 100 CENTIMETERS OF THE SOIL. F. "TROPICAL PEATLANDS" MEANS WETLANDS WITH A LAYER OF PEAT MADE UP OF DEAD AND DECAYING PLANT MATERIAL. TROPICAL PEATLANDS INCLUDES MOORS, BOGS, MIRES, AND PEAT SWAMP FORESTS. G. "Secondary materials" means any material recovered from or other- wise destined for the waste stream, including, but not limited to, post- consumer material, industrial scrap material and overstock or obsolete inventories from distributors, wholesalers and other companies but such term does not include those materials and by-products generated from, and commonly reused within, an original manufacturing process. § 4. Paragraphs b and d of subdivision 2 of section 165 of the state finance law, as added by chapter 83 of the laws of 1995, are amended to read as follows: b. The provisions of paragraph a of this subdivision shall not apply to: (i) [Any hardwoods purchased from a sustained, managed forest; or (ii)] Any binding contractual obligations for purchase of commodities entered into prior to August twenty-fifth, nineteen hundred ninety-one; or [(iii) The purchase of any tropical hardwood or tropical hardwood product for which there is no acceptable non-tropical hardwood species; or (iv) Where the contracting officer finds that no person or entity doing business in the state is capable of providing acceptable non-trop- ical hardwood species sufficient to meet the particular contract requirements; or (v)] (II) Where the inclusion or application of such provisions will violate or be inconsistent with the terms or conditions of a grant, subvention or contract in an agency of the United States or the instructions of an authorized representative of any such agency with respect to any such grant, subvention or contract[; or (vi) Where inclusion or application of such provisions results in a substantial cost increase to the state, government agency, political subdivision, public corporation or public benefit corporation]. d. The provisions of paragraph c of this subdivision shall not apply: (i) To bid packages advertised and made available to the public or any competitive and sealed bids received or entered into prior to August twenty-fifth, nineteen hundred ninety-one; or (ii) To any amendment, modification or renewal of a contract, which contract was entered into prior to August twenty-fifth, nineteen hundred ninety-one, where such application would delay timely completion of a project or involve an increase in the total monies to be paid under that contract; or (iii) Where the contracting officer finds that[: (A) No person or entity doing business in the state is capable of performing the contract using acceptable non-tropical hardwood species; or (B) The] THE inclusion or application of such provisions will violate or be inconsistent with the terms or conditions of a grant, subvention or contract with an agency of the United States or the instructions of an authorized representative of any such agency with respect to any such grant, subvention or contract[; or S. 4859--A 8 (C) The use of tropical woods is deemed necessary for purposes of historical restoration and there exists no available acceptable non- tropical wood species]. § 5. Section 165 of the state finance law is amended by adding a new subdivision 9 to read as follows: 9. TROPICAL DEFORESTATION-FREE PROCUREMENT. A. FOR PURPOSES OF THIS SUBDIVISION, THE FOLLOWING DEFINITIONS SHALL APPLY: (I) "CONTRACTOR" MEANS ANY PERSON OR ENTITY THAT HAS A CONTRACT WITH A STATE AGENCY OR STATE AUTHORITY FOR PUBLIC WORKS OR IMPROVEMENTS TO BE PERFORMED, FOR A FRANCHISE, CONCESSION OR LEASE OF PROPERTY, FOR GRANT MONIES OR GOODS AND SERVICES OR SUPPLIES TO BE PURCHASED AT THE EXPENSE OF THE AGENCY OR AUTHORITY OR TO BE PAID OUT OF MONIES DEPOSITED IN THE TREASURY OR OUT OF TRUST MONIES UNDER THE CONTROL OR COLLECTED BY THE AGENCY OR AUTHORITY. (II) "TROPICAL FOREST-RISK COMMODITY" MEANS ANY COMMODITY AND ITS DERIVED PRODUCTS, INCLUDING AGRICULTURAL AND NON-AGRICULTURAL COMMOD- ITIES BUT EXCLUDING TROPICAL HARDWOOD AND TROPICAL HARDWOOD PRODUCTS COVERED BY SUBDIVISIONS ONE AND TWO OF THIS SECTION, WHETHER IN RAW OR PROCESSED FORM, THAT IS COMMONLY EXTRACTED FROM, OR GROWN, DERIVED, HARVESTED, REARED, OR PRODUCED ON LAND WHERE TROPICAL DEFORESTATION OR TROPICAL PRIMARY FOREST DEGRADATION HAS OCCURRED OR IS LIKELY TO OCCUR. TROPICAL FOREST-RISK COMMODITIES INCLUDE PALM OIL, SOY, BEEF, COFFEE, COCOA, WOOD PULP, PAPER AND ANY ADDITIONAL COMMODITIES DEFINED BY THE COMMISSIONER OF THE OFFICE OF GENERAL SERVICES PURSUANT TO SUBPARAGRAPH (I) OF PARAGRAPH G OF THIS SUBDIVISION, BUT DO NOT INCLUDE RECOVERED FIBER. (III) "FREE, PRIOR, AND INFORMED CONSENT" MEANS THE PRINCIPLE THAT A COMMUNITY HAS THE RIGHT TO GIVE OR WITHHOLD ITS CONSENT TO PROPOSED DEVELOPMENTS THAT MAY AFFECT THE LAND AND WATERS IT LEGALLY OR CUSTOMAR- ILY OWNS, OCCUPIES, OR OTHERWISE USES, AS DESCRIBED IN THE UNITED NATIONS DECLARATION ON THE RIGHTS OF INDIGENOUS PEOPLES, THE INDIGENOUS AND TRIBAL PEOPLES CONVENTION OF 1989, ALSO KNOWN AS THE INTERNATIONAL LABOR ORGANIZATION CONVENTION 169, AND OTHER INTERNATIONAL INSTRUMENTS. "FREE, PRIOR, AND INFORMED CONSENT" MEANS INFORMED, NONCOERCIVE NEGOTI- ATIONS BETWEEN INVESTORS, COMPANIES, OR GOVERNMENTS, AND INDIGENOUS PEOPLES AND LOCAL COMMUNITIES, PRIOR TO PROJECT DEVELOPMENT. (IV) "LARGE CONTRACTOR" MEANS ANY CONTRACTOR WHOSE ANNUAL REVENUE, OR THAT OF THEIR PARENT COMPANY, IS EQUAL TO OR GREATER THAN ONE HUNDRED MILLION DOLLARS. (V) "POINT-OF-ORIGIN" MEANS THE GEOGRAPHICAL LOCATION, AS IDENTIFIED BY THE SMALLEST ADMINISTRATIVE UNIT OF LAND, WHERE A COMMODITY WAS GROWN, DERIVED, HARVESTED, REARED, OR PRODUCED. (VI) "RECOVERED FIBER" MEANS POSTCONSUMER FIBER SUCH AS PAPER, PAPER- BOARD, AND FIBROUS MATERIALS FROM RETAIL STORES, OFFICE BUILDINGS, HOMES, AND SO FORTH, AFTER HAVING PASSED THROUGH THEIR END USAGE, INCLUDING USED CORRUGATED BOXES, OLD NEWSPAPERS, OLD MAGAZINES, MIXED WASTE PAPER, TABULATING CARDS, AND USED CORDAGE, AND ALL PAPER, PAPER- BOARD, AND FIBROUS MATERIALS THAT ENTER AND ARE COLLECTED FROM MUNICIPAL SOLID WASTE; AND MANUFACTURING WASTES SUCH AS DRY PAPER AND PAPERBOARD WASTE GENERATED AFTER COMPLETION OF THE PAPERMAKING PROCESS, INCLUDING ENVELOPE CUTTINGS, BINDERY TRIMMINGS, AND OTHER PAPER AND PAPERBOARD WASTE RESULTING FROM PRINTING, CUTTING, FORMING, AND OTHER CONVERTING OPERATIONS, BAG, BOX, AND CARTON MANUFACTURING WASTES, AND BUTT ROLLS, MILL WRAPPERS, AND REJECTED UNUSED STOCK, AND REPULPED FINISHED PAPER AND PAPERBOARD FROM OBSOLETE INVENTORIES OF PAPER AND PAPERBOARD S. 4859--A 9 MANUFACTURERS, MERCHANTS, WHOLESALERS, DEALERS, PRINTERS, CONVERTERS, AND OTHERS. (VII) "TREE PLANTATION" MEANS AN AREA OF LAND PREDOMINANTLY COMPOSED OF TREES ESTABLISHED THROUGH PLANTING AND/OR DELIBERATE SEEDING, USUALLY BY PLANTING ONE OR TWO SPECIES, FOR THE PURPOSE OF PRODUCING AND HARVESTING A PARTICULAR COMMODITY. TREE PLANTATION DOES NOT INCLUDE FOREST PLANTED FOR ECOSYSTEM RESTORATION. (VIII) "TROPICAL DEFORESTATION" MEANS DIRECT HUMAN-INDUCED CONVERSION OF TROPICAL FOREST TO AGRICULTURE, A TREE PLANTATION, OR OTHER NON-FOR- EST LAND USE. (IX) "TROPICAL PRIMARY FOREST DEGRADATION" MEANS DIRECT HUMAN-INDUCED SEVERE AND SUSTAINED DEGRADATION OF A TROPICAL FOREST RESULTING IN SIGNIFICANT PRIMARY FOREST LOSS AND/OR A PROFOUND CHANGE IN SPECIES COMPOSITION, STRUCTURE, OR ECOLOGICAL FUNCTION OF THAT FOREST. (X) "PRIMARY FOREST" MEANS A FOREST THAT HAS NEVER BEEN INDUSTRIALLY LOGGED OR HARVESTED AND HAS DEVELOPED FOLLOWING NATURAL DISTURBANCES AND UNDER NATURAL PROCESSES, REGARDLESS OF ITS AGE. PRIMARY FORESTS INCLUDE FORESTS THAT HAVE EXPERIENCED NON-INDUSTRIAL-SCALE HUMAN IMPACTS, INCLUDING TRADITIONAL OR SUBSISTENCE ACTIVITIES CARRIED OUT BY INDIGE- NOUS COMMUNITIES. (XI) "NEW YORK STATE PRODUCTS" MEANS PRODUCTS THAT ARE GROWN, HARVESTED, OR PRODUCED IN THIS STATE, OR PROCESSED INSIDE OR OUTSIDE THIS STATE COMPRISING OVER FIFTY-ONE PERCENT RAW MATERIALS GROWN, HARVESTED, OR PRODUCED IN THIS STATE, BY WEIGHT OR VOLUME. (XII) "SMALL BUSINESS" MEANS SMALL BUSINESS AS DEFINED IN SECTION ONE HUNDRED THIRTY-ONE OF THE ECONOMIC DEVELOPMENT LAW. (XIII) "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. (XIV) "MINORITY-OWNED BUSINESS ENTERPRISE" SHALL HAVE THE SAME MEANING AS IN ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW. (XV) "WOMEN-OWNED BUSINESS ENTERPRISE" SHALL HAVE THE SAME MEANING AS IN ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW. B. (I) EVERY CONTRACT ENTERED INTO BY A STATE AGENCY OR AUTHORITY THAT INCLUDES THE PROCUREMENT OF ANY PRODUCT COMPRISED WHOLLY OR IN PART OF A TROPICAL FOREST-RISK COMMODITY SHALL REQUIRE THAT THE CONTRACTOR CERTIFY THAT THE COMMODITY FURNISHED TO THE STATE PURSUANT TO THE CONTRACT WAS NOT EXTRACTED FROM, GROWN, DERIVED, HARVESTED, REARED, OR PRODUCED ON LAND WHERE TROPICAL DEFORESTATION OR TROPICAL PRIMARY FOREST DEGRADATION OCCURRED ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE. THE CONTRACTOR SHALL AGREE TO COMPLY WITH THIS PROVISION OF THE CONTRACT. (II) THE CONTRACT SHALL SPECIFY THAT THE CONTRACTOR IS REQUIRED TO COOPERATE FULLY IN PROVIDING REASONABLE ACCESS TO THE CONTRACTOR'S RECORDS, DOCUMENTS, AGENTS, EMPLOYEES, OR PREMISES IF REASONABLY REQUIRED BY AUTHORIZED OFFICIALS OF THE CONTRACTING AGENCY OR AUTHORITY, THE OFFICE OF GENERAL SERVICES, THE OFFICE OF THE ATTORNEY GENERAL, OR THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION, TO DETERMINE THE CONTRAC- TOR'S COMPLIANCE WITH THE REQUIREMENTS UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH. (III) CONTRACTORS SHALL EXERCISE DUE DILIGENCE IN ENSURING THAT THEIR SUBCONTRACTORS COMPLY WITH THE REQUIREMENTS UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH. CONTRACTORS SHALL REQUIRE EACH SUBCONTRACTOR TO CERTIFY THAT THE SUBCONTRACTOR IS IN COMPLIANCE WITH THE REQUIREMENTS OF SUBPAR- AGRAPH (I) OF THIS PARAGRAPH. (IV) IN ADDITION TO THE REQUIREMENTS OF SUBPARAGRAPHS (I), (II) AND (III) OF THIS PARAGRAPH, LARGE CONTRACTORS SUBJECT TO SUBPARAGRAPH (I) S. 4859--A 10 OF THIS PARAGRAPH MUST CERTIFY THAT THEY HAVE ADOPTED A TROPICAL FOREST POLICY THAT COMPLIES WITH REGULATIONS ISSUED PURSUANT TO SUBPARAGRAPH (VII) OF PARAGRAPH G OF THIS SUBDIVISION. THE ADOPTION OF A TROPICAL FOREST POLICY BY A CONTRACTOR, SUBCONTRACTOR, OR SUPPLIER THAT IS NOT A LARGE CONTRACTOR IS NOT REQUIRED BY THIS SUBPARAGRAPH BUT MAY BE USED TO DEMONSTRATE COMPLIANCE WITH SUBPARAGRAPH (I) OF THIS PARAGRAPH. SUCH TROPICAL FOREST POLICY AND ALL CORRESPONDING DATA SHALL BE MADE PUBLICLY AVAILABLE, AND SHALL CONTAIN AT A MINIMUM ALL OF THE FOLLOWING: A. DUE DILIGENCE MEASURES TO IDENTIFY THE POINT-OF-ORIGIN OF TROPICAL FOREST-RISK COMMODITIES AND ENSURE COMPLIANCE WITH THE POLICY WHERE SUPPLY CHAIN RISKS ARE PRESENT. B. DATA DETAILING THE COMPLETE LIST OF DIRECT AND INDIRECT SUPPLIERS AND SUPPLY CHAIN TRACEABILITY INFORMATION, INCLUDING REFINERIES, PROC- ESSING PLANTS, FARMS, AND PLANTATIONS, AND THEIR RESPECTIVE OWNERS, PARENT COMPANIES, AND FARMERS, MAPS, AND GEO-LOCATIONS, FOR EACH TROP- ICAL FOREST-RISK COMMODITY FOUND IN PRODUCTS THAT MAY BE FURNISHED TO THE STATE. C. MEASURES TAKEN TO ENSURE THE PRODUCT DOES NOT CONTRIBUTE TO TROP- ICAL DEFORESTATION OR TROPICAL PRIMARY FOREST DEGRADATION, INCLUDING: (1) NO DEVELOPMENT IN TROPICAL PRIMARY FORESTS, AND THAT THE PRODUCT DOES NOT ORIGINATE FROM A SITE WHERE COMMODITY PRODUCTION HAS REPLACED TROPICAL PRIMARY FORESTS AFTER JANUARY FIRST, TWO THOUSAND TWENTY-THREE; (2) NO DEVELOPMENT OF HIGH CARBON STOCK (HCS) FORESTS; (3) NO DEVELOPMENT OF HIGH CONSERVATION VALUE (HCV) AREAS; (4) NO BURNING; (5) EFFORTS TO ENSURE PROGRESSIVE REDUCTIONS OF GREENHOUSE GAS EMIS- SIONS ON EXISTING PLANTATIONS; (6) NO DEVELOPMENT ON PEAT, REGARDLESS OF DEPTH; (7) BEST MANAGEMENT PRACTICES FOR EXISTING PLANTATIONS ON PEAT; AND (8) WHERE FEASIBLE, ACTIVITIES ORIENTED TOWARDS PEAT RESTORATION. D. MEASURES TAKEN TO PREVENT EXPLOITATION AND REDRESS GRIEVANCES OF WORKERS AND LOCAL COMMUNITIES, INCLUDING: (1) RESPECT FOR AND RECOGNITION OF THE RIGHTS OF ALL WORKERS INCLUDING CONTRACT, TEMPORARY, AND MIGRANT WORKERS. (2) RESPECT FOR AND RECOGNITION OF LAND TENURE RIGHTS OF COMMUNITIES. (3) RESPECT FOR THE RIGHTS OF INDIGENOUS AND LOCAL COMMUNITIES TO GIVE OR WITHHOLD THEIR FREE, PRIOR, AND INFORMED CONSENT TO OPERATIONS ON LANDS TO WHICH THEY HOLD LEGAL, COMMUNAL, OR CUSTOMARY RIGHTS. (4) EXPLICIT POLICIES AND PROCESSES TO PREVENT VIOLENCE, INTIMIDATION, AND COERCION OF WORKERS AND LOCAL COMMUNITIES. (5) FORMAL, OPEN, TRANSPARENT, AND CONSULTATIVE PROCESSES TO ADDRESS AND REDRESS ALL COMPLAINTS AND CONFLICTS. E. MEASURES TAKEN TO PROTECT BIODIVERSITY AND PREVENT THE POACHING OF ENDANGERED SPECIES IN ALL OPERATIONS AND ADJACENT AREAS. F. MEASURES TAKEN TO ENSURE COMPLIANCE WITH THE LAWS OF COUNTRIES WHERE TROPICAL FOREST-RISK COMMODITIES IN A COMPANY'S SUPPLY CHAIN WERE PRODUCED. G. MEASURES TO DETER VIOLENCE, THREATS, AND HARASSMENT AGAINST ENVI- RONMENTAL HUMAN RIGHTS DEFENDERS (EHRDS), INCLUDING RESPECTING INTERNA- TIONALLY RECOGNIZED HUMAN RIGHTS STANDARDS, AND EDUCATING EMPLOYEES, CONTRACTORS, AND PARTNERS ON THE RIGHTS OF EHRDS TO EXPRESS THEIR VIEWS, CONDUCT PEACEFUL PROTESTS, AND CRITICIZE PRACTICES WITHOUT INTIMIDATION OR RETALIATION. (V) THE PROVISIONS OF SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL NOT APPLY TO PRIMARY, SECONDARY, OR TERTIARY PACKAGING USED FOR THE PURPOSE S. 4859--A 11 OF CONTAINMENT, PROTECTION, HANDLING, DELIVERY, TRANSPORT, DISTRIBUTION, OR PRESENTATION OF A COVERED PRODUCT. (VI) THE PROVISIONS OF SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL NOT APPLY WHEN THE INCLUSION OR APPLICATION OF SUCH PROVISIONS WILL VIOLATE OR BE INCONSISTENT WITH THE TERMS OR CONDITIONS OF A GRANT, SUBVENTION OR CONTRACT WITH AN AGENCY OF THE UNITED STATES OR THE INSTRUCTIONS OF AN AUTHORIZED REPRESENTATIVE OF ANY SUCH AGENCY WITH RESPECT TO ANY SUCH GRANT, SUBVENTION OR CONTRACT. C. (I) IF IT IS DETERMINED THAT ANY CONTRACTOR CONTRACTING WITH THE STATE KNEW OR SHOULD HAVE KNOWN THAT A PRODUCT COMPRISED WHOLLY OR IN PART OF A TROPICAL FOREST-RISK COMMODITY WAS FURNISHED TO THE STATE IN VIOLATION OF PARAGRAPH B OF THIS SUBDIVISION, THE CONTRACTING AGENCY OR AUTHORITY SHALL ISSUE A WRITTEN NOTICE OF VIOLATION AND PROVIDE AN OPPORTUNITY FOR SUCH CONTRACTOR TO COME INTO COMPLIANCE. IF, AFTER SUCH NOTICE, A CONTRACTOR FAILS TO COME INTO COMPLIANCE WITHIN A TIMEFRAME ESTABLISHED BY THE DEPARTMENT, SUCH CONTRACTOR MAY, SUBJECT TO SUBPARA- GRAPH (II) OF PARAGRAPH B OF THIS SUBDIVISION, HAVE EITHER OR BOTH OF THE FOLLOWING SANCTIONS IMPOSED: A. THE CONTRACT UNDER WHICH THE PROHIBITED TROPICAL FOREST-RISK COMMODITY WAS FURNISHED MAY BE VOIDED AT THE OPTION OF THE STATE AGENCY OR AUTHORITY TO WHICH THE COMMODITY WAS FURNISHED. B. THE CONTRACTOR MAY BE ASSESSED A PENALTY THAT SHALL BE THE GREATER OF ONE THOUSAND DOLLARS OR AN AMOUNT EQUALING TWENTY PERCENT OF THE VALUE OF THE PRODUCT THAT THE STATE AGENCY OR AUTHORITY DEMONSTRATES WAS COMPRISED WHOLLY OR IN PART OF A TROPICAL FOREST-RISK COMMODITY AND FURNISHED TO THE STATE IN VIOLATION OF PARAGRAPH B OF THIS SUBDIVISION. A HEARING OR OPPORTUNITY TO BE HEARD SHALL BE PROVIDED PRIOR TO THE ASSESSMENT OF ANY PENALTY. (II) NOTWITHSTANDING SUBPARAGRAPH (I) OF THIS PARAGRAPH, A CONTRACTOR THAT HAS COMPLIED WITH THE PROVISIONS OF SUBPARAGRAPH (III) OF PARAGRAPH B OF THIS SUBDIVISION SHALL NOT BE SUBJECT TO SANCTIONS FOR VIOLATIONS, OF WHICH THE CONTRACTOR HAD NO KNOWLEDGE, OF THE REQUIREMENTS OF PARA- GRAPH B OF THIS SUBDIVISION THAT WERE COMMITTED SOLELY BY A SUBCONTRAC- TOR. SANCTIONS DESCRIBED UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL INSTEAD BE IMPOSED AGAINST THE SUBCONTRACTOR THAT COMMITTED THE VIOLATION. D. (I) ANY STATE AGENCY OR AUTHORITY THAT INVESTIGATES A COMPLAINT AGAINST A CONTRACTOR OR SUBCONTRACTOR FOR VIOLATION OF THIS SUBDIVISION MAY LIMIT ITS INVESTIGATION TO EVALUATING THE INFORMATION PROVIDED BY THE PERSON OR ENTITY SUBMITTING THE COMPLAINT AND THE INFORMATION PROVIDED BY THE CONTRACTOR OR SUBCONTRACTOR. (II) WHENEVER A CONTRACTING OFFICER OF THE CONTRACTING AGENCY OR AUTHORITY HAS REASON TO BELIEVE THAT THE CONTRACTOR FAILED TO COMPLY WITH PARAGRAPH B OF THIS SUBDIVISION, THE AGENCY OR AUTHORITY SHALL REFER THE MATTER FOR INVESTIGATION TO THE HEAD OF THE AGENCY OR AUTHORI- TY AND, AS THE HEAD OF THE AGENCY OR AUTHORITY DETERMINES APPROPRIATE, TO EITHER THE OFFICE OF GENERAL SERVICES, THE OFFICE OF THE ATTORNEY GENERAL, OR THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION. E. (I) WHEN A STATE AGENCY OR AUTHORITY'S CONTRACT FOR THE PURCHASE OF A COMMODITY OR PRODUCT COVERED BY THIS SUBDIVISION IS TO BE AWARDED TO THE LOWEST RESPONSIBLE BIDDER, AN OTHERWISE QUALIFIED BIDDER WHO IS A SMALL OR MEDIUM-SIZED BUSINESS OR A MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE, OR WHO WILL FULFILL THE CONTRACT THROUGH THE USE OF NEW YORK STATE PRODUCTS, MAY BE GIVEN PREFERENCE OVER OTHER BIDDERS, PROVIDED THAT THE COST INCLUDED IN THE BID IS NOT MORE THAN TEN PERCENT GREATER THAN THE COST INCLUDED IN A BID THAT IS NOT FROM A SMALL OR MEDIUM-SIZED S. 4859--A 12 BUSINESS OR A MINORITY OR WOMEN-OWNED BUSINESS ENTERPRISE OR FULFILLED THROUGH THE USE OF NEW YORK STATE PRODUCTS. (II) THE PROVISIONS OF THIS PARAGRAPH SHALL NOT APPLY IF THE HEAD OF THE CONTRACTING STATE AGENCY OR AUTHORITY PURCHASING SUCH PRODUCTS, IN HIS OR HER SOLE DISCRETION, DETERMINES THAT GIVING PREFERENCE TO BIDDERS PURSUANT TO THE PROVISIONS OF THIS PARAGRAPH WOULD BE: (A) AGAINST THE PUBLIC INTEREST; (B) WOULD INCREASE THE COST OF THE CONTRACT BY AN UNREASONABLE AMOUNT; OR (C) NEW YORK STATE PRODUCTS CANNOT BE OBTAINED IN SUFFICIENT AND REASONABLE AVAILABLE QUANTITIES AND OF SATISFACTORY QUALITY TO MEET THE CONTRACTING STATE AGENCY OR AUTHORITY'S REQUIREMENTS. (III) NOTHING IN THIS PARAGRAPH SHALL BE CONSTRUED TO CONFLICT WITH OR OTHERWISE LIMIT THE GOALS AND REQUIREMENTS SET FORTH BY SECTION ONE HUNDRED SIXTY-TWO OF THIS ARTICLE AND ARTICLES FIFTEEN-A AND SEVENTEEN-B OF THE EXECUTIVE LAW. F. (I) THE COMMISSIONER OF THE OFFICE OF GENERAL SERVICES SHALL CONVENE A STAKEHOLDER ADVISORY GROUP WHICH SHALL BE CONSULTED ON THE CREATION OF REGULATIONS PURSUANT TO PARAGRAPH G OF THIS SUBDIVISION. MEMBERS OF THE ADVISORY GROUP SHALL BE SELECTED BY THE COMMISSIONER AND SHALL CONSIST OF AT LEAST: (A) REPRESENTATIVES OF CURRENT OR FORMER STATE CONTRACTORS DEALING IN EACH OF THE TROPICAL FOREST-RISK COMMODITIES SPECIFIED IN SUBPARAGRAPH (II) OF PARAGRAPH A OF THIS SUBDIVISION, WITH AN EMPHASIS ON SMALL AND MEDIUM-SIZED BUSINESSES; (B) REPRESENTATIVES FROM CIVIL SOCIETY WITH RELEVANT EXPERTISE IN SUPPLY CHAIN TRACEABILITY, TROPICAL FOREST SUSTAINABILITY, BIODIVERSITY, CLIMATE SCIENCE, HUMAN AND LABOR RIGHTS, AND INDIGENOUS RIGHTS. MEMBERS SELECTED PURSUANT TO THIS CLAUSE SHOULD BE OF AT LEAST EQUAL NUMBER TO MEMBERS SELECTED PURSUANT TO CLAUSE (A) OF THIS SUBPARAGRAPH; AND (C) A MINIMUM OF TWO ADDITIONAL REPRESENTATIVES FROM INDIGENOUS COMMU- NITIES WITHIN THE GEOGRAPHIC AREAS CONTAINING TROPICAL FORESTS COVERED BY THIS SUBDIVISION. (II) MEMBERS OF THE STAKEHOLDER ADVISORY GROUP SHALL RECEIVE NO SALA- RY, BUT SHALL BE REIMBURSED BY THE OFFICE OF GENERAL SERVICES FOR ANY NECESSARY TRAVEL EXPENSES RELATED TO PARTICIPATING IN THE STAKEHOLDER ADVISORY GROUP. G. ON OR BEFORE JULY FIRST, TWO THOUSAND TWENTY-FOUR, THE OFFICE OF GENERAL SERVICES SHALL ISSUE REGULATIONS FOR THE IMPLEMENTATION OF THIS SUBDIVISION. SUCH REGULATIONS SHALL BE DEVELOPED IN CONSULTATION WITH THE STAKEHOLDER ADVISORY GROUP ESTABLISHED IN PARAGRAPH F OF THIS SUBDI- VISION AND THE COMMISSIONER OF THE DEPARTMENT OF ENVIRONMENTAL CONSER- VATION. SUCH REGULATIONS SHALL INCLUDE, BUT NOT BE LIMITED TO, ALL OF THE FOLLOWING: (I) A LIST OF TROPICAL FOREST-RISK COMMODITIES SUBJECT TO THE REQUIRE- MENTS OF THIS SUBDIVISION, INCLUDING, BUT NOT LIMITED TO, PALM OIL, SOY, BEEF, COFFEE, COCOA, WOOD PULP AND PAPER. THE LIST SHALL BE REVIEWED AND UPDATED AT LEAST EVERY THREE YEARS. WHEN EVALUATING INCLUSION OF ADDI- TIONAL COMMODITIES IN THE LIST, THE COMMISSIONER OF THE OFFICE OF GENER- AL SERVICES SHALL CONSIDER THE IMPACT OF THE COMMODITY AS A DRIVER OF TROPICAL DEFORESTATION OR TROPICAL PRIMARY FOREST DEGRADATION, THE STATE OF EXISTING SUPPLY CHAIN TRANSPARENCY AND TRACEABILITY SYSTEMS FOR THE COMMODITY, AND THE FEASIBILITY OF INCLUDING THE COMMODITY IN THE REQUIREMENTS OF PARAGRAPH B OF THIS SUBDIVISION. THE FIRST REVIEW SHALL INCLUDE, BUT NOT BE LIMITED TO, EVALUATION OF RUBBER, BANANAS, CORN, SUGARCANE, LEATHER AND OTHER CATTLE-DERIVED PRODUCTS, AND MINING S. 4859--A 13 PRODUCTS INCLUDING PETROLEUM, COAL, IRON, COPPER, GOLD, TIN, DIAMONDS, MANGANESE, BAUXITE AND NICKEL. FOLLOWING A REVIEW OF THE LIST OF TROP- ICAL FOREST-RISK COMMODITIES, THE COMMISSIONER SHALL ISSUE A REPORT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE SPEAKER OF THE ASSEMBLY, OUTLINING THE REASONS FOR THE INCLUSION OR NON-INCLUSION OF ANY REVIEWED COMMODITIES. (II) A LIST OF PRODUCTS DERIVED WHOLLY OR IN PART FROM TROPICAL FOREST-RISK COMMODITIES. (III) A LIST OF PRODUCTS FURNISHED TO THE STATE OR USED BY STATE CONTRACTORS IN HIGH-VOLUME PURCHASES THAT CONTAIN OR ARE COMPRISED WHOL- LY OR IN PART OF TROPICAL FOREST-RISK COMMODITIES. (IV) A SET OF RESPONSIBLE SOURCING GUIDELINES AND POLICIES DERIVED FROM BEST PRACTICES IN SUPPLY CHAIN TRANSPARENCY TO THE POINT-OF-ORIGIN. (V) GUIDANCE TO ASSIST CONTRACTORS IN IDENTIFYING TROPICAL FOREST-RISK COMMODITIES IN THEIR SUPPLY CHAIN, PERFORMING NECESSARY DUE DILIGENCE TO MEET THE REQUIREMENTS OF THIS SUBDIVISION, AND CERTIFYING THAT THE COMMODITY DID NOT CONTRIBUTE TO TROPICAL DEFORESTATION OR TROPICAL PRIMARY FOREST DEGRADATION. (VI) A LIST OF FAVORED SUPPLIERS OF TROPICAL FOREST-RISK COMMODITIES AND PRODUCTS DERIVED THEREFROM WHOSE PRODUCTS HAVE BEEN DETERMINED TO MEET THE REQUIREMENTS OF THIS SUBDIVISION, AND A PROCESS THROUGH WHICH SUPPLIERS MAY APPLY FOR INCLUSION ON SUCH LIST. (VII) THE FULL SET OF REQUIREMENTS FOR A LARGE CONTRACTOR'S TROPICAL FOREST POLICY PURSUANT TO SUBPARAGRAPH (IV) OF PARAGRAPH B OF THIS SUBDIVISION. (VIII) THE PROCESS THROUGH WHICH CONTRACTORS SHALL CERTIFY TO THE OFFICE OF GENERAL SERVICES THAT THEY ARE IN COMPLIANCE WITH PARAGRAPH B OF THIS SUBDIVISION. (IX) A PROCESS FOR ENSURING THAT DETAILS OF CERTIFIED CONTRACTS ARE MADE AVAILABLE FOR PUBLIC INSPECTION ON THE WEBSITE OF THE OFFICE OF GENERAL SERVICES. (X) AN EASILY ACCESSIBLE PROCEDURE TO RECEIVE PUBLIC COMPLAINTS AND INFORMATION REGARDING VIOLATIONS OF THIS SUBDIVISION. H. (I) THE CERTIFICATION REQUIREMENTS SET FORTH IN THIS SUBDIVISION SHALL NOT APPLY TO A CREDIT CARD PURCHASE OF GOODS OF TWO THOUSAND FIVE HUNDRED DOLLARS OR LESS. (II) THE TOTAL AMOUNT OF GOODS EXEMPTED PURSUANT TO SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL NOT EXCEED SEVEN THOUSAND FIVE HUNDRED DOLLARS PER YEAR FOR EACH CONTRACTOR FROM WHICH A STATE AGENCY OR AUTHORITY IS PURCHASING GOODS BY CREDIT CARD. IT SHALL BE THE RESPONSIBILITY OF EACH STATE AGENCY TO MONITOR THE USE OF THIS EXEMPTION AND ADHERE TO THESE RESTRICTIONS ON THESE PURCHASES. I. THIS SUBDIVISION SHALL APPLY TO ALL CONTRACTS ENTERED INTO, EXTENDED, OR RENEWED ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY- FIVE. J. COMMENCING TWO YEARS AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION AND BIENNIALLY THEREAFTER, THE COMMISSIONER OF THE OFFICE OF GENERAL SERVICES SHALL ISSUE A REPORT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE SPEAKER OF THE ASSEMBLY, ON THE IMPLEMENTATION OF THIS SUBDIVISION AND SUBDIVISIONS ONE AND TWO OF THIS SECTION. § 6. The economic development law is amended by adding a new article 27 to read as follows: ARTICLE 27 SUPPLY CHAIN TRANSPARENCY ASSISTANCE PROGRAM SECTION 490. DEFINITIONS. 491. THE SUPPLY CHAIN TRANSPARENCY ASSISTANCE PROGRAM. S. 4859--A 14 § 490. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE: 1. "SMALL BUSINESS" MEANS A 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 OR WOMEN-OWNED BUSINESS 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. § 491. 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 AND RELEVANT INFORMATION REGARDING ALL UNITS OF PRODUCTION FURTHER UP THE SUPPLY CHAIN TO DETERMINE WHETHER A SUPPLY CHAIN IS ETHICAL AND SUSTAINABLE. (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 S. 4859--A 15 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. § 7. This act shall take effect immediately and shall apply to all contracts and binding contractual obligations entered into on and after such effective date.
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