S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3506
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 3, 2023
                                ___________
 
 Introduced  by  M.  of A. ZEBROWSKI, KELLES -- read once and referred to
   the Committee on Economic Development
 
 AN ACT to amend the economic development law, in relation to  establish-
   ing the Supply Chain Transparency Assistance Program
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings. The Legislature  finds  and  declares
 the following:
   1.  The climate crisis is an immediate and urgent threat, and New York
 State is and must continue to be a leader in addressing it. New York has
 a statutory goal of achieving net-zero greenhouse gas  emissions  econo-
 my-wide  by  2050.  However,  that  goal does not include greenhouse gas
 emissions created outside of New York in the extraction, production, and
 transport of the goods  we  purchase.  Currently,  eight  global  supply
 chains  - food, construction, fashion, fast-moving consumer goods, elec-
 tronics, automobiles, professional services, and freight -  account  for
 over half of greenhouse gas emissions annually.  Increasing supply chain
 transparency  and  traceability is an important part of fighting climate
 change and moving global production toward more environmentally sustain-
 able practices.
   2. The International Labor Organization estimates that over 25 million
 people are currently caught in forced labor, 4 million of whom are chil-
 dren. Over 160 million children between the ages of  five  to  seventeen
 are  engaged  in  child labor in 2021, and about 79 million of those are
 estimated to be engaged in hazardous labor. Across  the  United  States,
 Canada  and  the  European  Union  there are estimated to be 1.5 million
 people trapped in forced labor, while  millions  of  other  people  live
 trapped  in  forced  labor across the Asia-Pacific region, Africa, Latin
 America and the Middle East. The fruit of such forced labor, as well  as
 additional  health  and  safety risks and other impacts from substandard
 labor practices, can potentially be  found  in  many  of  the  goods  we

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04692-01-3
              

 A. 3506                             2
 
 consume,  making  it  incumbent  on  businesses to take action to ensure
 ethical labor practices throughout their supply chains.
   3.  Businesses  throughout  the United States and across the world are
 increasingly engaged in efforts to ensure their supply chains are trans-
 parent,  traceable,  ethical,  and  environmentally  sound,  whether  in
 reaction  to  consumer  pressure  or government regulation, or out of an
 understanding  of  corporate  social  responsibility.  Businesses   that
 achieve  ethical  and  sustainable  supply  chains  may  also be able to
 increase their appeal with certain consumers, charge premium prices,  or
 access  previously  untapped  markets  as  a result of their efforts. In
 order to remain competitive, New York businesses, particularly small and
 medium-sized businesses and minority- and women-owned  businesses,  must
 be able to take advantage of and stay ahead of this socially responsible
 and beneficial trend.
   4.  It  is  therefore the intent of the Legislature to create a Supply
 Chain Transparency Assistance Program to encourage the shifting  of  the
 state's economy toward more ethical and sustainable supply chains, while
 ensuring  New York businesses have the tools they need to compete in the
 national and global marketplace.
   § 2. The economic development law is amended by adding a  new  article
 27 to read as follows:
                                ARTICLE 27
               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  SMALL BUSINESS AS DEFINED IN SECTION ONE
 HUNDRED THIRTY-ONE OF THIS CHAPTER.
   2. "MEDIUM-SIZED BUSINESS" SHALL MEAN A BUSINESS THAT IS  RESIDENT  IN
 THIS STATE, INDEPENDENTLY OWNED AND OPERATED, NOT DOMINANT IN ITS FIELD,
 AND EMPLOYS BETWEEN ONE HUNDRED AND FIVE HUNDRED PERSONS.
   3.  "ELIGIBLE BUSINESS" SHALL MEAN ANY SMALL AND MEDIUM-SIZED BUSINESS
 AS DEFINED IN THIS ARTICLE, AND ANY MINORITY-OWNED OR WOMEN-OWNED  BUSI-
 NESS ENTERPRISE AS DEFINED IN ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW.
   4.  "SUPPLY  CHAIN"  SHALL  MEAN  A  SYSTEM OF EXTRACTION, PRODUCTION,
 TRANSPORTATION, AND DISTRIBUTION INVOLVING MULTIPLE PROCESSES, ORGANIZA-
 TIONS, INDIVIDUALS, AND RESOURCES,  BEGINNING  WITH  RAW  MATERIALS  AND
 CULMINATING IN THE DELIVERY OF A PRODUCT OR SERVICE TO A CONSUMER.
   §  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  RELEVANT  INFORMATION  REGARDING  ALL  UNITS  OF  PRODUCTION
 A. 3506                             3

 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.
   § 3. This act shall take effect immediately.