Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
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Apr 03, 2025 |
referred to procurement and contracts |
Senate Bill S7203
2025-2026 Legislative Session
Enacts the tropical rainforest economic & environmental sustainability act and establishes the supply chain transparency assistance program
download bill text pdfSponsored By
(D, WF) 28th Senate District
Current Bill Status - In Senate Committee Procurement And Contracts Committee
- 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
co-Sponsors
(D, WF) 56th Senate District
(D, WF) 48th Senate District
(D, WF) 25th Senate District
(D) 30th Senate District
(D) 14th Senate District
(D) 34th Senate District
(D, WF) 59th Senate District
(D, WF) 40th Senate District
(D, WF) 41st Senate District
(D, WF) 47th Senate District
(D, WF) 31st Senate District
(D) 27th 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
(D, WF) 52nd Senate District
2025-S7203 (ACTIVE) - Details
- Current Committee:
- Senate Procurement And Contracts
- Law Section:
- State Finance Law
- Laws Affected:
- Amd §165, St Fin L; add Art 28 §§500 & 501, Ec Dev L
- Versions Introduced in Other Legislative Sessions:
-
2021-2022:
S5921
2023-2024: S4859, S8898
2025-S7203 (ACTIVE) - Summary
Enacts the tropical rainforest economic & environmental sustainability act requiring that companies contracting with the state do not contribute to tropical forest degradation or deforestation directly or through their supply chains; establishes the supply chain transparency assistance program to assist small and medium-sized businesses and minority and women-owned businesses in achieving compliant supply chains.
2025-S7203 (ACTIVE) - Sponsor Memo
BILL NUMBER: S7203 SPONSOR: KRUEGER TITLE OF BILL: An act to amend the state finance law, in relation to enacting the trop- ical rainforest economic & environmental sustainability act; and to amend the economic development law, in relation to establishing the supply chain transparency assistance program PURPOSE: The purpose of the bill is to ensure companies contracting with the state are not contributing to tropical forest degradation or tropical deforestation directly or through their supply chains. SUMMARY OF SPECIFIC PROVISIONS: Section 1: Names the act the "Tropical Rainforest Economic & Environ- mental Sustainability 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. Creates a time-limited exemption for ekki wood used by the Metropolitan Transportation Authority for the purpose of railroad ties in the New York City Transit system, as well as greenheart wood used by a ferry service directly owned and operated by an agency of a city of one million or more, and greenheart wood used on bridges manages by the department of transportation of a city of one million or more. 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 covered tropical forest-risk product types to the state to certify, after completing due diligence measures determined in regulations by DEC, that the products do not contain tropical forest-risk commodities that originated on land where tropical deforestation or tropical forest degradation occurred on or after January 1st, 2023. This requirement would not apply to primary, secondary, or tertiary packaging for certain purposes. Requires contractors to cooperate with state agencies investi- gating 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. Creates a broad exemption to the certification requirement in a situation where a state agency or authority fails to receive any offers in response to a solic- itation for products covered by the bill. If such exemption is not used by an agency or authority for three consecutive years, that agency or authority will lose the ability to use the exemption going forward. Creates an additional exemption for centralized contracts developed by OGS if the Commissioner determines that the provisions of the bill will result in the failure to receive any bids. Establishes that, until Janu- ary 1st, 2032, the provisions of this paragraph will only apply to contracts worth more than one million dollars, or contractors with annu- al revenue greater than ten million dollars. -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. Provides for exemptions if the contracting agency or authority determines that such bid preference would be against the public interest, increase costs by an unreasonable amount, or that New York State products cannot be obtained in sufficient quantities. -Paragraph f: Requires the DEC Commissioner to convene four meetings with relevant stakeholders prior to the issuance of regulations. -Paragraph g: Requires the DEC Commissioner, on or before July 1st, 2027, in consultation with the OGS Commissioner, to issue regulations for implementation and to assist contractors with compliance. -Paragraph h: Exempts from certification requirements credit card purchases of $15,000 or less. -Paragraph i: Establishes that this subdivision shall apply to all contracts entered into, extended, or renewed on or after January 1st, 2028. -Paragraph j: Requires the DEC 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. A significant amount of the world's greenhouse gas emissions come from deforestation and forest degradation. Taking into account carbon seques- tration 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 forest degradation or tropical deforestation directly 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: 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 ninety days after the bill shall become a law 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- eight.
2025-S7203 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 7203 2025-2026 Regular Sessions I N S E N A T E April 3, 2025 ___________ Introduced by Sens. KRUEGER, COONEY, MAY, BRISPORT, CLEARE, COMRIE, FERNANDEZ, GONZALEZ, HARCKHAM, HINCHEY, HOYLMAN-SIGAL, JACKSON, KAVANAGH, SALAZAR, SANDERS, SEPULVEDA, SERRANO, SKOUFIS, STAVISKY, WEBB -- read twice and ordered printed, and when printed to be commit- ted to the Committee on Procurement and Contracts AN ACT to amend the state finance law, in relation to enacting the trop- ical rainforest economic & environmental sustainability act; and to amend the economic development law, in relation to establishing the supply chain transparency assistance program THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. This act shall be known and may be cited as the "tropical rainforest economic & environmental sustainability 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 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08526-03-5 S. 7203 2
the current pace, the entirety of Earth's tropical rainforests will be degraded or destroyed within the next 100 years. 4. A significant percentage 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 miti- gation 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. However, our statutory goals miss an important element of our climate footprint represented by our exported emissions, the emis- sions created by the goods we consume. A significant portion of this footprint is driven by tropical deforestation. 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 forest degradation through the purchase of goods and products that have been produced in supply chains that contribute to tropical defores- tation and tropical 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 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. (I) "Tropical hardwood" shall mean any and all hardwood, scientif- ically classified as angiosperm, that grows in any tropical [moist] forest. Tropical hardwoods shall [be] INCLUDE BUT NOT BE LIMITED TO the following species: Scientific Name EXAMPLES OF Common [Name] S. 7203 3 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 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 S. 7203 4 OCHROMA PYRAMIDALE BALSA MYROXYLON BALSAMUM BALSAMO [Virola spp.] [Banak] [Anisoptera thurifera] [Bella Rose] [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 S. 7203 5 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 ENTANDROPHRAGMA CANDOLLEI KOSIPO, OMU 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, BELLA ROSA MORA EXCELSA MORA Distemonanthus benthamianus Movingui, AYAN TERMINALIA AMAZONIA NARGUSTA PTEROCARPUS SPP. NARRA, AMBYNA, PAPUA NEW GUINEA ROSEWOOD, RED SANDERS, MUKULA, KOSSO, ZITAN, HONGMU, PANDAUK, VERMILLION WOOD PALAQUIUM SPP. NYATOH, PADANG, PENCIL CEDAR TRIPLOCHITON SCLEROXYLON OBECHE, SAMBA NAUCLEA DIDERRICHII OPEPE, SIBO S. 7203 6 [Pterocarpus soyauxii] [African Padauk] [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 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 (II) NO LATER THAN JANUARY FIRST, TWO THOUSAND TWENTY-NINE, AND AT LEAST EVERY THREE YEARS THEREAFTER, THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION, IN CONSULTATION WITH THE OFFICE OF GENERAL SERVICES, SHALL THROUGH REGULATIONS UPDATE THE LIST OF TROPICAL HARDWOOD SPECIES IN SUBPARAGRAPH (I) OF THIS PARAGRAPH TO ENSURE THAT SUCH LIST INCLUDES ALL SUCH SPECIES THAT ARE CURRENTLY COMMONLY AVAILABLE FOR COMMERCIAL USE IN THE UNITED STATES, REFLECTING THE MOST CURRENT DATA ON PRODUCTION, TRADE, AND MARKETING, AND TO ACCOUNT FOR ANY CHANGES IN TAXONOMY, MARKETING OR TRADE NAMES, MARKET PREFERENCE, USAGE, OR OTHER FACTORS. SPECIES SHALL NOT BE REMOVED FROM THE LIST OF EXAMPLES EXCEPT FOR PURPOSES OF CORRECTING ERRORS. 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 S. 7203 7 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- 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 WITHIN THE TROPICAL REGIONS WITH A LAYER OF PEAT MADE UP OF DEAD AND DECAYING PLANT MATERIAL. TROP- ICAL 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 a, b, c, 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 and four new paragraphs e, f, g and h are added to read as follows: a. Except as hereinafter provided, the state and any governmental agency or political subdivision or public benefit corporation of the state shall not purchase or obtain for any purpose any tropical hard- woods or tropical hardwood products, wholesale or retail, in any form, UNLESS SUCH TROPICAL HARDWOODS OR TROPICAL HARDWOOD PRODUCTS ARE SECOND- ARY MATERIALS. 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 S. 7203 8 (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]. c. (i) In the case of any bid proposal or solicitation, request for bid or proposal or contract for the construction of any public work, building maintenance or improvement for or on behalf of the state and any governmental agency or political subdivision or public benefit corporation of the state, it shall not require or permit the use of any tropical hardwood or [wood] TROPICAL HARDWOOD product, UNLESS SUCH TROP- ICAL HARDWOOD OR TROPICAL HARDWOOD PRODUCT IS A SECONDARY MATERIAL. (ii) Every bid proposal, solicitation, request for bid or proposal and contract for the construction of any public work, building maintenance or improvement shall contain a statement that any bid, proposal or other response to a solicitation for bid or proposal which proposes or calls for the use of any tropical hardwood or [wood] TROPICAL HARDWOOD product in performance of the contract shall be deemed non-responsive, UNLESS SUCH TROPICAL HARDWOOD OR TROPICAL HARDWOOD PRODUCT IS A SECONDARY MATE- RIAL. 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]. E. THE USE OF ANY TROPICAL HARDWOOD OR TROPICAL HARDWOOD PRODUCT AS PART OF THE CONSTRUCTION, RENOVATION, MAINTENANCE, OR INSTALLATION OF ANY PUBLIC WORK, BUILDING OR OTHER STRUCTURE, OR IMPROVEMENT ON LANDS OWNED OR MANAGED BY THE STATE OR ANY GOVERNMENTAL AGENCY OR POLITICAL SUBDIVISION OR PUBLIC BENEFIT CORPORATION OF THE STATE SHALL BE PROHIB- ITED, EXCEPT WHERE SUCH PROHIBITION WOULD VIOLATE OR BE INCONSISTENT WITH THE TERMS AND CONDITIONS OF A GRANT, SUBVENTION OR CONTRACT WITH AN AGENCY OF THE UNITED STATES OR THE INSTRUCTIONS OF AN AUTHORIZED REPRE- SENTATIVE OF ANY SUCH AGENCY WITH RESPECT TO ANY SUCH GRANT, SUBVENTION, OR CONTRACT. F. (I) UNTIL JANUARY FIRST, TWO THOUSAND THIRTY-ONE, THE PROVISIONS OF PARAGRAPHS A, C, AND E OF THIS SUBDIVISION SHALL NOT APPLY TO THE USE OF EKKI WOOD BY THE METROPOLITAN TRANSPORTATION AUTHORITY FOR THE PURPOSE OF RAILROAD TIES IN THE NEW YORK CITY TRANSIT SYSTEM, PROVIDED THAT THE METROPOLITAN TRANSPORTATION AUTHORITY SHALL, NO LATER THAN OCTOBER FIRST, TWO THOUSAND TWENTY-SIX, AFTER PROVIDING NOTICE AND AN OPPORTU- NITY FOR PUBLIC COMMENT, DEVELOP AND ISSUE AN EKKI TRANSITION PLAN S. 7203 9 OUTLINING THE STEPS THE AUTHORITY WILL TAKE TO MINIMIZE TO THE GREATEST EXTENT POSSIBLE, AND EVENTUALLY PHASE OUT, THE USE OF EKKI WOOD, AND PROVIDED FURTHER THAT UNTIL SUCH PHASE OUT HAS BEEN COMPLETED, SUCH AGENCY SHALL USE, TO THE GREATEST EXTENT POSSIBLE, ONLY SECONDARY MATE- RIALS WHEN THE USE OF EKKI WOOD IS SPECIFIED AND UNAVOIDABLE. SUCH PLAN SHALL BE MADE PUBLICLY AVAILABLE ON THE AUTHORITY'S WEBSITE. NO LATER THAN OCTOBER FIRST, TWO THOUSAND TWENTY-SEVEN, AND ANNUALLY THEREAFTER UNTIL THE EXPIRATION OF THIS PARAGRAPH, THE AUTHORITY SHALL ISSUE A PUBLIC REPORT OUTLINING ITS PROGRESS TOWARD ACHIEVING SUCH PLAN. (II) IF, ON OR AFTER APRIL FIRST, TWO THOUSAND THIRTY, THE DIRECTOR OF THE BUDGET ISSUES A DETERMINATION, AFTER PROVIDING NOTICE AND AN OPPOR- TUNITY FOR PUBLIC COMMENT, THAT THE AUTHORITY HAS MADE SIGNIFICANT PROGRESS IN PHASING OUT THE USE OF EKKI WOOD, BUT THAT A FULL PHASE OUT HAS BEEN DELAYED DUE TO TECHNICAL OR SAFETY CONSIDERATIONS, THE PROVISIONS OF SUBPARAGRAPH (I) OF THIS PARAGRAPH MAY BE EXTENDED UNTIL DECEMBER THIRTY-FIRST OF THE SUBSEQUENT CALENDAR YEAR. SUCH DETERMI- NATION MAY BE MADE ANNUALLY THEREAFTER, ON OR AFTER APRIL FIRST OF SUBSEQUENT YEARS, PROVIDED THAT UNDER NO CIRCUMSTANCES SHALL THE PROVISIONS OF THIS PARAGRAPH EXTEND BEYOND JANUARY FIRST, TWO THOUSAND THIRTY-SIX. G. (I) UNTIL JANUARY FIRST, TWO THOUSAND THIRTY-FOUR, THE PROVISIONS OF PARAGRAPHS A, C, AND E OF THIS SUBDIVISION SHALL NOT APPLY TO THE USE OF GREENHEART WOOD BY A FERRY SERVICE DIRECTLY OWNED AND OPERATED BY AN AGENCY OF A CITY OF ONE MILLION OR MORE, PROVIDED THAT SUCH AGENCY SHALL, NO LATER THAN OCTOBER FIRST, TWO THOUSAND TWENTY-SIX, AFTER PROVIDING NOTICE AND AN OPPORTUNITY FOR PUBLIC COMMENT, DEVELOP AND ISSUE A GREENHEART TRANSITION PLAN OUTLINING THE STEPS SUCH AGENCY WILL TAKE TO MINIMIZE TO THE GREATEST EXTENT POSSIBLE, AND EVENTUALLY PHASE OUT, THE USE OF GREENHEART WOOD, AND PROVIDED FURTHER THAT UNTIL SUCH PHASE OUT HAS BEEN COMPLETED, SUCH AGENCY SHALL USE, TO THE GREATEST EXTENT POSSIBLE, ONLY SECONDARY MATERIALS WHEN THE USE OF GREENHEART WOOD IS SPECIFIED AND UNAVOIDABLE. SUCH PLAN SHALL BE MADE PUBLICLY AVAILABLE ON THE AGENCY'S WEBSITE. NO LATER THAN OCTOBER FIRST, TWO THOUSAND TWENTY-SEVEN, AND ANNUALLY THEREAFTER UNTIL THE EXPIRATION OF THIS PARAGRAPH, THE AGENCY SHALL ISSUE A PUBLIC REPORT OUTLINING ITS PROGRESS TOWARD ACHIEVING SUCH PLAN. (II) IF, ON OR AFTER APRIL FIRST, TWO THOUSAND THIRTY-THREE, THE DIRECTOR OF THE BUDGET ISSUES A DETERMINATION, AFTER PROVIDING NOTICE AND AN OPPORTUNITY FOR PUBLIC COMMENT, THAT SUCH AGENCY HAS MADE SIGNIF- ICANT PROGRESS IN PHASING OUT THE USE OF GREENHEART WOOD, BUT THAT A FULL PHASE OUT HAS BEEN DELAYED DUE TO TECHNICAL OR SAFETY CONSIDER- ATIONS, THE PROVISIONS OF SUBPARAGRAPH (I) OF THIS PARAGRAPH MAY BE EXTENDED UNTIL DECEMBER THIRTY-FIRST OF THE SUBSEQUENT CALENDAR YEAR. SUCH DETERMINATION MAY BE MADE ANNUALLY THEREAFTER, ON OR AFTER APRIL FIRST OF SUBSEQUENT YEARS, PROVIDED THAT UNDER NO CIRCUMSTANCES SHALL THE PROVISIONS OF THIS PARAGRAPH EXTEND BEYOND JANUARY FIRST, TWO THOU- SAND THIRTY-NINE. H. (I) UNTIL JANUARY FIRST, TWO THOUSAND THIRTY-FOUR, THE PROVISIONS OF PARAGRAPHS A, C, AND E OF THIS SUBDIVISION SHALL NOT APPLY TO THE USE OF GREENHEART WOOD ON BRIDGES MANAGED BY THE DEPARTMENT OF TRANSPORTA- TION OF A CITY OF ONE MILLION OR MORE, PROVIDED THAT SUCH DEPARTMENT SHALL, NO LATER THAN OCTOBER FIRST, TWO THOUSAND TWENTY-SIX, AFTER PROVIDING NOTICE AND AN OPPORTUNITY FOR PUBLIC COMMENT, DEVELOP AND ISSUE A GREENHEART TRANSITION PLAN OUTLINING THE STEPS SUCH DEPARTMENT WILL TAKE TO MINIMIZE TO THE GREATEST EXTENT POSSIBLE, AND EVENTUALLY PHASE OUT, THE USE OF GREENHEART WOOD, AND PROVIDED FURTHER THAT UNTIL S. 7203 10 SUCH PHASE OUT HAS BEEN COMPLETED, SUCH DEPARTMENT SHALL USE, TO THE GREATEST EXTENT POSSIBLE, ONLY SECONDARY MATERIALS WHEN THE USE OF GREENHEART WOOD IS SPECIFIED AND UNAVOIDABLE. SUCH PLAN SHALL BE MADE PUBLICLY AVAILABLE ON THE DEPARTMENT'S WEBSITE. NO LATER THAN OCTOBER FIRST, TWO THOUSAND TWENTY-SEVEN, AND ANNUALLY THEREAFTER UNTIL THE EXPIRATION OF THIS PARAGRAPH, THE DEPARTMENT SHALL ISSUE A PUBLIC REPORT OUTLINING ITS PROGRESS TOWARD ACHIEVING SUCH PLAN. (II) IF, ON OR AFTER APRIL FIRST, TWO THOUSAND THIRTY-THREE, THE DIRECTOR OF THE BUDGET ISSUES A DETERMINATION, AFTER PROVIDING NOTICE AND AN OPPORTUNITY FOR PUBLIC COMMENT, THAT SUCH DEPARTMENT HAS MADE SIGNIFICANT PROGRESS IN PHASING OUT THE USE OF GREENHEART WOOD, BUT THAT A FULL PHASE OUT HAS BEEN DELAYED DUE TO TECHNICAL OR SAFETY CONSIDER- ATIONS, THE PROVISIONS OF SUBPARAGRAPH (I) OF THIS PARAGRAPH MAY BE EXTENDED UNTIL DECEMBER THIRTY-FIRST OF THE SUBSEQUENT CALENDAR YEAR. SUCH DETERMINATION MAY BE MADE ANNUALLY THEREAFTER, ON OR AFTER APRIL FIRST OF SUBSEQUENT YEARS, PROVIDED THAT UNDER NO CIRCUMSTANCES SHALL THE PROVISIONS OF THIS PARAGRAPH EXTEND BEYOND JANUARY FIRST, TWO THOU- SAND THIRTY-NINE. § 5. Section 165 of the state finance law is amended by adding a new subdivision 10 to read as follows: 10. 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 FOREST DEGRADATION HAS OCCURRED OR IS LIKELY TO OCCUR. TROPICAL FOREST-RISK COMMODITIES INCLUDE PALM OIL, BEEF, COFFEE, COCOA, WOOD PULP, PAPER AND ANY ADDITIONAL COMMODITIES DEFINED BY THE COMMISSIONER PURSUANT TO SUBPARAGRAPH (I) OF PARAGRAPH G OF THIS SUBDIVISION, BUT DO NOT INCLUDE RECOVERED FIBER. (III) "COVERED TROPICAL FOREST-RISK PRODUCT TYPE" MEANS ANY PRODUCT TYPE LISTED BY THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION PURSUANT TO SUBPARAGRAPH (II) OF PARAGRAPH G OF THIS SUBDIVISION. (IV) "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. (V) "LARGE CONTRACTOR" MEANS ANY CONTRACTOR WHOSE ANNUAL REVENUE, OR THAT OF THEIR PARENT COMPANY, IS EQUAL TO OR GREATER THAN ONE HUNDRED MILLION DOLLARS. S. 7203 11 (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) "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 FOREST DEGRADATION" MEANS DIRECT HUMAN-INDUCED SEVERE AND SUSTAINED DEGRADATION OF A TROPICAL FOREST RESULTING IN SIGNIFICANT FOREST LOSS AND/OR A PROFOUND CHANGE IN SPECIES COMPOSITION, STRUCTURE, OR ECOLOGICAL FUNCTION OF THAT FOREST. (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 COVERED TROPICAL FOREST-RISK PRODUCT TYPE SHALL REQUIRE THAT THE CONTRACTOR CERTIFY, AFTER COMPLETING NECES- SARY DUE DILIGENCE MEASURES AS DETERMINED BY THE COMMISSIONER OF THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION PURSUANT TO PARAGRAPH G OF THIS SUBDIVISION, THAT, TO THE BEST OF THE CONTRACTOR'S KNOWLEDGE, THE PRODUCTS FURNISHED TO THE STATE PURSUANT TO THE CONTRACT DO NOT CONTAIN ANY TROPICAL FOREST-RISK COMMODITIES THAT WERE EXTRACTED FROM, GROWN, DERIVED, HARVESTED, REARED, OR PRODUCED ON LAND WHERE TROPICAL DEFORES- TATION OR TROPICAL 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, S. 7203 12 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 OF THIS PARAGRAPH. (III) CONTRACTORS SHALL EXERCISE DUE DILIGENCE IN ENSURING THAT THEIR SUBCONTRACTORS COMPLY WITH THE REQUIREMENTS OF THIS PARAGRAPH. CONTRAC- TORS SHALL REQUIRE EACH SUBCONTRACTOR TO CERTIFY THAT THE SUBCONTRACTOR IS IN COMPLIANCE WITH THE REQUIREMENTS OF THIS PARAGRAPH. (IV) IN ADDITION TO THE REQUIREMENTS OF SUBPARAGRAPHS (I), (II) AND (III) OF THIS PARAGRAPH, LARGE CONTRACTORS SUBJECT TO THIS PARAGRAPH MUST CERTIFY THAT THEY HAVE ADOPTED A TROPICAL FOREST POLICY THAT COMPLIES WITH REGULATIONS ISSUED PURSUANT TO SUBPARAGRAPH (VI) OF PARA- GRAPH G OF THIS SUBDIVISION. SUCH TROPICAL FOREST POLICY AND DATA DOCU- MENTING IMPLEMENTATION SHALL BE MADE PUBLICLY AVAILABLE AND UPDATED ANNUALLY, AND SHALL INCLUDE, AT A MINIMUM: A. PROCEDURES FOR IDENTIFYING AND MITIGATING THE RISK OF TROPICAL DEFORESTATION AND TROPICAL FOREST DEGRADATION IN TROPICAL FOREST-RISK COMMODITY SUPPLY CHAINS. B. PROCEDURES TO ENSURE RESPECT FOR NATIONALLY AND INTERNATIONALLY RECOGNIZED RIGHTS OF INDIGENOUS PEOPLES AND LOCAL COMMUNITIES, INCLUDING THE PRINCIPLE OF FREE, PRIOR AND INFORMED CONSENT, THE RIGHTS AND SAFETY OF LOCAL ENVIRONMENTAL AND HUMAN RIGHTS DEFENDERS, THE RIGHTS OF WORK- ERS, AND COMPLIANCE WITH SOURCE COUNTRY LAWS, IN TROPICAL FOREST-RISK COMMODITY SUPPLY CHAINS. (V) THE PROVISIONS OF THIS PARAGRAPH SHALL NOT APPLY TO PRIMARY, SECONDARY, OR TERTIARY PACKAGING USED FOR THE PURPOSE OF CONTAINMENT, PROTECTION, HANDLING, DELIVERY, TRANSPORT, DISTRIBUTION, OR PRESENTATION OF A COVERED TROPICAL FOREST-RISK PRODUCT TYPE. (VI) THE PROVISIONS OF THIS PARAGRAPH SHALL NOT APPLY WHEN THE INCLU- SION 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 REPRE- SENTATIVE OF ANY SUCH AGENCY WITH RESPECT TO ANY SUCH GRANT, SUBVENTION OR CONTRACT. (VII) THE PROVISIONS OF THIS PARAGRAPH SHALL NOT APPLY IF THE HEAD OF THE CONTRACTING STATE AGENCY OR AUTHORITY ISSUING A SOLICITATION FOR COVERED TROPICAL FOREST-RISK PRODUCT TYPES ISSUES A DETERMINATION, AFTER PROVIDING NOTICE AND AN OPPORTUNITY FOR PUBLIC COMMENT, WITH THE APPROVAL OF THE DIRECTOR OF THE BUDGET, THAT UPON THE CLOSING OF SUCH SOLICITATION SUCH PROVISIONS HAVE RESULTED IN THE FAILURE TO RECEIVE ANY OFFERS IN RESPONSE TO SUCH SOLICITATION AND THAT THERE IS NO ALTERNATIVE PRODUCT AVAILABLE THAT IS ABLE TO MEET THE GENERALLY ACCEPTED STANDARD PERFORMANCE REQUIREMENTS FOR THE SPECIFIED APPLICATION WITHIN SUCH SOLICITATION. SUCH DETERMINATION SHALL EXPLAIN IN DETAIL THE NECESSITY OF SUCH EXEMPTION FOR EACH SPECIFIED APPLICATION, INCLUDING A LIST OF ALL AVAILABLE ALTERNATIVE PRODUCTS CONSIDERED AND AN EXPLANATION AS TO WHY EACH PRODUCT DOES NOT MEET THE RELEVANT GENERALLY ACCEPTED PERFORM- ANCE REQUIREMENTS. SUCH DETERMINATION SHALL BE MADE PUBLICLY AVAILABLE, IN WRITING, ON THE WEBSITE OF THE OFFICE OF GENERAL SERVICES AND THE RELEVANT AGENCY OR AUTHORITY. IF THE HEAD OF THE CONTRACTING STATE AGEN- CY OR AUTHORITY HAS NOT ISSUED SUCH A DETERMINATION FOR THREE CONSEC- UTIVE YEARS, THEN THE POWER OF THE HEAD OF THE CONTRACTING STATE AGENCY OR AUTHORITY TO ISSUE SUCH A DETERMINATION SHALL BE DEEMED EXPIRED, AND ANY SUBSEQUENT DETERMINATION SHALL BE NULL AND VOID. (VIII) THE PROVISIONS OF THIS PARAGRAPH SHALL NOT APPLY TO A CENTRAL- IZED CONTRACT DEVELOPED BY THE OFFICE OF GENERAL SERVICES IF, DURING THE PROCESS OF DEVELOPING SUCH CENTRALIZED CONTRACT, THE COMMISSIONER OF S. 7203 13 GENERAL SERVICES ISSUES A DETERMINATION, AFTER PROVIDING NOTICE AND AN OPPORTUNITY FOR PUBLIC COMMENT, WITH THE APPROVAL OF THE DIRECTOR OF THE BUDGET, THAT INCORPORATING THE PROVISIONS OF THIS PARAGRAPH WILL RESULT IN A FAILURE TO RECEIVE ANY BIDS IN RESPONSE TO A SOLICITATION FOR SUCH CENTRALIZED CONTRACT, AND THAT THERE IS NO ALTERNATIVE PRODUCT AVAILABLE THAT IS ABLE TO MEET THE GENERALLY ACCEPTED STANDARD PERFORMANCE REQUIREMENTS FOR THE SPECIFIED APPLICATION WITHIN SUCH CONTRACT. SUCH DETERMINATION SHALL EXPLAIN IN DETAIL THE NECESSITY OF SUCH EXEMPTION FOR EACH SPECIFIED APPLICATION, INCLUDING A LIST OF ALL AVAILABLE ALTER- NATIVE PRODUCTS CONSIDERED AND AN EXPLANATION AS TO WHY EACH PRODUCT DOES NOT MEET THE RELEVANT GENERALLY ACCEPTED PERFORMANCE REQUIREMENTS. SUCH DETERMINATION SHALL BE MADE PUBLICLY AVAILABLE, IN WRITING, ON THE WEBSITE OF THE OFFICE OF GENERAL SERVICES. IF SUCH A DETERMINATION IS ISSUED IN REGARDS TO A CENTRALIZED CONTRACT, SUCH CONTRACT SHALL HAVE A TERM OF NO MORE THAN THREE YEARS. (IX) UNTIL JANUARY FIRST, TWO THOUSAND THIRTY-TWO, THE PROVISIONS OF THIS PARAGRAPH SHALL ONLY APPLY TO CONTRACTS WITH A TOTAL VALUE GREATER THAN OR EQUAL TO ONE MILLION DOLLARS, OR TO CONTRACTORS WHOSE ANNUAL REVENUE, OR THAT OF THEIR PARENT COMPANY, IS GREATER THAN OR EQUAL TO TEN MILLION DOLLARS. C. (I) IF IT IS DETERMINED THAT ANY CONTRACTOR CONTRACTING WITH THE STATE KNEW OR SHOULD HAVE KNOWN THAT A COVERED FOREST-RISK PRODUCT TYPE WAS FURNISHED TO THE STATE IN VIOLATION 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 COMMISSIONER OF THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION, SUCH CONTRACTOR MAY, SUBJECT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH, HAVE EITHER OR BOTH OF THE FOLLOWING SANCTIONS IMPOSED: A. THE CONTRACT UNDER WHICH THE VIOLATION OCCURRED MAY BE VOIDED AT THE OPTION OF THE CONTRACTING AGENCY OR AUTHORITY. 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 FURNISHED IN VIOLATION 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 THIS SUBDIVISION THAT WERE COMMITTED SOLELY BY A SUBCONTRACTOR. 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 THE ATTORNEY GENERAL OR THE DEPARTMENT OF ENVI- RONMENTAL CONSERVATION. S. 7203 14 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 SUCH HEAD OF SUCH STATE AGENCY'S SOLE DISCRETION, DETERMINES THAT GIVING PREFERENCE TO BIDDERS PURSUANT TO THE PROVISIONS OF THIS PARAGRAPH WOULD: (A) BE AGAINST THE PUBLIC INTEREST; (B) 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, ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW, OR ARTICLE THREE OF THE VETERANS' SERVICES LAW. F. PRIOR TO ISSUING REGULATIONS PURSUANT TO PARAGRAPH G OF THIS SUBDI- VISION, THE COMMISSIONER OF THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION SHALL CONVENE FOUR MEETINGS WITH RELEVANT STAKEHOLDERS, INCLUDING BUT NOT LIMITED TO: (I) REPRESENTATIVES OF CURRENT OR FORMER STATE CONTRACTORS DEALING IN PRODUCTS CONTAINING EACH OF THE TROPICAL FOREST-RISK COMMODITIES SPECI- FIED IN SUBPARAGRAPH (II) OF PARAGRAPH A OF THIS SUBDIVISION, WITH AN EMPHASIS ON SMALL AND MEDIUM-SIZED BUSINESSES; (II) REPRESENTATIVES NOT AFFILIATED WITH COVERED INDUSTRIES WITH RELE- VANT EXPERTISE IN SUPPLY CHAIN TRACEABILITY, TROPICAL FOREST SUSTAINA- BILITY, BIODIVERSITY, CLIMATE SCIENCE, HUMAN AND LABOR RIGHTS, AND INDIGENOUS RIGHTS; AND (III) REPRESENTATIVES FROM INDIGENOUS COMMUNITIES WITHIN THE GEOGRAPH- IC AREAS CONTAINING TROPICAL FORESTS COVERED BY THIS SUBDIVISION. G. ON OR BEFORE JULY FIRST, TWO THOUSAND TWENTY-SEVEN, THE COMMISSION- ER OF THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION SHALL ADOPT REGU- LATIONS FOR THE IMPLEMENTATION OF THIS SUBDIVISION. SUCH REGULATIONS SHALL BE DEVELOPED IN CONSULTATION WITH THE COMMISSIONER OF THE OFFICE OF GENERAL SERVICES. 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, 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 DEPARTMENT OF ENVIRONMENTAL CONSERVATION SHALL CONSIDER THE IMPACT OF THE COMMODITY AS A DRIVER OF TROPICAL DEFORESTATION OR TROPICAL FOREST DEGRADATION, THE STATE OF EXISTING SUPPLY CHAIN TRANSPARENCY AND TRACEABILITY SYSTEMS FOR THE COMMODITY, THE VOLUME OR QUANTITY OF PRODUCTS COMPRISED WHOLLY OR IN PART OF THE COMMODITY THAT ARE REGULARLY PURCHASED BY STATE AGENCIES OR AUTHORITIES, AND THE FEASIBILITY OF INCLUDING THE COMMODITY IN THE REQUIREMENTS OF THIS SUBDIVISION. THE FIRST REVIEW SHALL INCLUDE, BUT S. 7203 15 NOT BE LIMITED TO, EVALUATION OF SOY, RUBBER, BANANAS, AVOCADOS, SUGAR- CANE, LEATHER AND OTHER CATTLE-DERIVED PRODUCTS, AND MINING PRODUCTS. FOLLOWING A REVIEW OF THE LIST OF TROPICAL FOREST-RISK COMMODITIES, THE COMMISSIONER SHALL ISSUE A REPORT TO THE GOVERNOR, THE TEMPORARY PRESI- DENT 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 COVERED TROPICAL FOREST-RISK PRODUCT TYPES COMPRISED WHOLLY OR IN PART OF TROPICAL FOREST-RISK COMMODITIES. SUCH LIST SHALL BE UPDATED NO LESS FREQUENTLY THAN EVERY THREE YEARS. IN DEVELOPING SUCH LIST, THE DEPARTMENT SHALL CONSIDER: A. THE STATE OF EXISTING SUPPLY CHAIN TRACEABILITY AND TRANSPARENCY SYSTEMS FOR THE PRODUCT TYPE. B. THE VOLUME, QUANTITY, OR MONETARY VALUE OF SUCH PRODUCT TYPE REGU- LARLY PROCURED BY STATE AGENCIES OR AUTHORITIES, WITH PRIORITY GIVEN TO PRODUCT TYPES PROCURED IN HIGH VOLUMES OR QUANTITIES OR WITH HIGH MONE- TARY VALUE. C. THE RELATIVE COMPLEXITY OF IDENTIFYING THE PRESENCE OF TROPICAL FOREST-RISK COMMODITIES IN THE PRODUCT TYPE. D. THE PROPORTION OF THE PRODUCT TYPE COMPRISED OF TROPICAL FOREST- RISK COMMODITIES. E. THE AVAILABILITY OF SUBSTITUTE PRODUCTS PRODUCED USING COMMODITIES SOURCED FROM NEW YORK STATE OR WITHIN THE UNITED STATES. F. MAXIMIZING THE DEFORESTATION-REDUCTION IMPACT OF THE POLICY ESTAB- LISHED PURSUANT TO THIS SUBDIVISION WHILE LIMITING THE ADMINISTRATIVE BURDEN OF IMPLEMENTATION, INCLUDING CONSIDERATION OF A PHASED-IN APPROACH TO IMPLEMENTATION WITH THE GOAL OF COVERING ALL PRODUCT TYPES REGULARLY PROCURED BY STATE AGENCIES OR AUTHORITIES CONTAINING MORE THAN DE MINIMUS AMOUNTS OF TROPICAL FOREST-RISK COMMODITIES OR THEIR DERIVA- TIVES NO LATER THAN JANUARY FIRST, TWO THOUSAND THIRTY-TWO. FOR FOOD PRODUCTS, MORE THAN DE MINIMUS AMOUNTS SHALL INCLUDE COMPONENTS LISTED AS AN INGREDIENT. (III) SPECIFIC SUPPLY CHAIN DUE DILIGENCE MEASURES BASED ON INTERNA- TIONAL BEST PRACTICES THAT CONTRACTORS MUST PERFORM BEFORE MAKING THE CERTIFICATION REQUIRED BY THIS SUBDIVISION. FOR ANY PRODUCTS COMPRISED WHOLLY OR IN PART OF TROPICAL FOREST-RISK COMMODITIES THAT WERE EXTRACTED FROM, GROWN, HARVESTED, OR REARED ON LAND IN A COUNTRY OR COUNTRIES THAT DO NOT CONTAIN TROPICAL FORESTS, A CONTRACTOR SHALL ONLY BE REQUIRED TO DEMONSTRATE THAT SUCH COMMODITIES ORIGINATED IN SUCH COUNTRY OR COUNTRIES. IF INFORMATION, DOCUMENTS, AND DATA THAT MEET THE REQUIREMENTS OF THE DUE DILIGENCE MEASURES ESTABLISHED PURSUANT TO THIS SUBPARAGRAPH HAVE BEEN PRODUCED BY A SUPPLIER FROM WHOM THE CONTRACTOR HAS BEEN SUPPLIED COVERED PRODUCTS, AND HAVE BEEN PROVIDED TO THE CONTRACTOR OR MADE PUBLICLY AVAILABLE, SUCH INFORMATION, DOCUMENTS, AND DATA MAY CONSTITUTE SUFFICIENT DUE DILIGENCE ON THE PART OF THE CONTRAC- TOR TO COMPLY WITH THIS PARAGRAPH. (IV) A PROCESS FOR DEVELOPING, WITH AN OPPORTUNITY FOR PUBLIC INPUT, 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. SUCH LIST SHALL BE MADE PUBLICLY AVAILABLE NO LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE ADOPTION OF REGULATIONS PURSUANT TO THIS PARAGRAPH, AND SHALL BE UPDATED NOT LESS THAN ANNUALLY. (V) THE FULL SET OF REQUIREMENTS FOR A LARGE CONTRACTOR'S TROPICAL FOREST POLICY PURSUANT TO SUBPARAGRAPH (IV) OF PARAGRAPH B OF THIS SUBDIVISION. S. 7203 16 (VI) THE PROCESS THROUGH WHICH CONTRACTORS SHALL CERTIFY TO THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION THAT THEY ARE IN COMPLIANCE WITH PARAGRAPH B OF THIS SUBDIVISION. (VII) A PROCESS FOR ENSURING THAT DETAILS OF CERTIFICATIONS ARE MADE AVAILABLE FOR PUBLIC INSPECTION ON THE WEBSITE OF THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION. (VIII) AN EASILY ACCESSIBLE PROCEDURE TO RECEIVE PUBLIC COMPLAINTS AND INFORMATION REGARDING VIOLATIONS OF THIS SUBDIVISION. H. THE CERTIFICATION REQUIREMENTS SET FORTH IN THIS SUBDIVISION SHALL NOT APPLY TO A CREDIT CARD PURCHASE OF GOODS OF FIFTEEN THOUSAND DOLLARS OR LESS. I. THIS SUBDIVISION SHALL APPLY TO ALL CONTRACTS ENTERED INTO, EXTENDED, OR RENEWED ON OR AFTER JANUARY FIRST, TWO THOUSAND TWENTY- EIGHT. J. COMMENCING TWO YEARS AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION AND BIENNIALLY THEREAFTER, THE COMMISSIONER OF THE DEPARTMENT OF ENVI- RONMENTAL CONSERVATION SHALL ISSUE A REPORT TO THE GOVERNOR, THE TEMPO- RARY 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 28 to read as follows: ARTICLE 28 SUPPLY CHAIN TRANSPARENCY ASSISTANCE PROGRAM SECTION 500. DEFINITIONS. 501. THE SUPPLY CHAIN TRANSPARENCY ASSISTANCE PROGRAM. § 500. 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. § 501. 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 S. 7203 17 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 on the ninetieth day after it shall have become a law and shall apply to all contracts and binding contrac- tual obligations entered into on and after such effective date.
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