S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4746
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 14, 2023
                                ___________
 
 Introduced  by  Sens.  HOYLMAN-SIGAL,  BRISPORT, JACKSON, KAVANAGH, LIU,
   MAY, RIVERA, SALAZAR -- read  twice  and  ordered  printed,  and  when
   printed to be committed to the Committee on Consumer Protection
 
 AN ACT to amend the general business law, in relation to requiring fash-
   ion  sellers  to be accountable to environmental and social standards;
   and to amend the state finance law,  in  relation  to  establishing  a
   fashion remediation fund
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "Fashion sustainability and social accountability act".
   §  2. The general business law is amended by adding a new section 399-
 mm to read as follows:
   § 399-MM. FASHION SUSTAINABILITY AND SOCIAL ACCOUNTABILITY  ACT.    1.
 DEFINITIONS. AS USED IN THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE
 FOLLOWING MEANINGS:
   (A) "DOING BUSINESS IN THIS STATE" SHALL MEAN ACTIVELY ENGAGING IN ANY
 TRANSACTION FOR THE PURPOSE OF FINANCIAL OR PECUNIARY GAIN OR PROFIT.
   (B)  "GROSS RECEIPTS" SHALL MEAN THE GROSS AMOUNTS REALIZED, OTHERWISE
 KNOWN AS THE SUM OF MONEY AND THE FAIR MARKET VALUE OF OTHER PROPERTY OR
 SERVICES RECEIVED, ON THE SALE OR EXCHANGE OF PROPERTY, THE  PERFORMANCE
 OF  SERVICES, OR THE USE OF PROPERTY OR CAPITAL, INCLUDING RENTS, ROYAL-
 TIES, INTEREST, AND DIVIDENDS, IN A TRANSACTION THAT  PRODUCES  BUSINESS
 INCOME,  IN  WHICH  THE INCOME, GAIN, OR LOSS IS RECOGNIZED, OR WOULD BE
 RECOGNIZED IF THE TRANSACTION WERE  IN  THE  UNITED  STATES,  UNDER  THE
 INTERNAL  REVENUE  CODE,  AS  APPLICABLE  FOR  PURPOSES OF THIS SECTION.
 AMOUNTS REALIZED ON THE SALE  OR  EXCHANGE  OF  PROPERTY  SHALL  NOT  BE
 REDUCED  BY  THE COST OF GOODS SOLD OR THE BASIS OF PROPERTY SOLD. GROSS
 RECEIPTS, EVEN IF BUSINESS  INCOME,  SHALL  NOT  INCLUDE  THE  FOLLOWING
 ITEMS:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03469-02-3
 S. 4746                             2
              

 
   (I)  REPAYMENT,  MATURITY,  OR  REDEMPTION OF THE PRINCIPAL OF A LOAN,
 BOND, MUTUAL FUND, CERTIFICATE OF DEPOSIT, OR SIMILAR MARKETABLE INSTRU-
 MENT;
   (II)  THE  PRINCIPAL  AMOUNT  RECEIVED UNDER A REPURCHASE AGREEMENT OR
 OTHER TRANSACTION PROPERLY CHARACTERIZED AS A LOAN;
   (III) PROCEEDS FROM ISSUANCE OF THE TAXPAYER'S OWN STOCK OR FROM  SALE
 OF TREASURY STOCK;
   (IV) DAMAGES AND OTHER AMOUNTS RECEIVED AS THE RESULT OF LITIGATION;
   (V) PROPERTY ACQUIRED BY AN AGENT ON BEHALF OF ANOTHER;
   (VI) TAX REFUNDS AND OTHER TAX BENEFIT RECOVERIES;
   (VII) PENSION REVERSIONS;
   (VIII)  CONTRIBUTIONS  TO  CAPITAL,  EXCEPT FOR SALES OF SECURITIES BY
 SECURITIES DEALERS;
   (IX) INCOME FROM DISCHARGE OF INDEBTEDNESS;
   (X) AMOUNTS REALIZED FROM EXCHANGES OF INVENTORY THAT ARE  NOT  RECOG-
 NIZED UNDER THE INTERNAL REVENUE CODE;
   (XI)  AMOUNTS  RECEIVED FROM TRANSACTIONS IN INTANGIBLE ASSETS HELD IN
 CONNECTION WITH A TREASURY FUNCTION OF THE TAXPAYER'S  UNITARY  BUSINESS
 AND  THE GROSS RECEIPTS AND OVERALL NET GAINS FROM THE MATURITY, REDEMP-
 TION, SALE, EXCHANGE, OR OTHER DISPOSITION OF THOSE  INTANGIBLE  ASSETS;
 AND
   (XII)  AMOUNTS RECEIVED FROM HEDGING TRANSACTIONS INVOLVING INTANGIBLE
 ASSETS. A "HEDGING TRANSACTION"  MEANS  A  TRANSACTION  RELATED  TO  THE
 TAXPAYER'S  TRADING  FUNCTION INVOLVING FUTURES AND OPTIONS TRANSACTIONS
 FOR THE PURPOSE OF HEDGING PRICE RISK OF  THE  PRODUCTS  OR  COMMODITIES
 CONSUMED, PRODUCED, OR SOLD BY THE TAXPAYER.
   (C) "FASHION SELLER" SHALL MEAN A BUSINESS ENTITY WHICH SELLS ARTICLES
 OF  WEARING  APPAREL, FOOTWEAR, OR FASHION BAGS THAT TOGETHER EXCEED ONE
 HUNDRED MILLION DOLLARS IN ANNUAL GROSS RECEIPTS, BUT SHALL NOT  INCLUDE
 THE  SALE  OF USED WEARING APPAREL, FOOTWEAR, OR FASHION BAGS, NOR SHALL
 IT INCLUDE MULTI-BRAND RETAILERS, EXCEPT WHERE  THE  APPAREL,  FOOTWEAR,
 AND  FASHION  BAG  PRIVATE LABELS OF THOSE COMPANIES TOGETHER EXCEED ONE
 HUNDRED MILLION DOLLARS IN GLOBAL REVENUE.
   (D) "ARTICLE OF WEARING APPAREL" SHALL MEAN ANY COSTUME OR ARTICLE  OF
 CLOTHING WORN OR INTENDED TO BE WORN BY INDIVIDUALS.
   (E)  "FOOTWEAR" SHALL MEAN ANY COVERING WORN OR INTENDED TO BE WORN ON
 THE FOOT.
   (F) "FASHION BAG" SHALL MEAN  FLEXIBLE  PACKAGING  MADE  OF  TEXTILES,
 LEATHER  OR OTHER ANIMAL PRODUCTS, WOVEN MATERIAL OR OTHER SIMILAR MATE-
 RIALS INTENDED FOR REPEATED USE.
   (G) "DUE DILIGENCE" SHALL MEAN  THE  COMPREHENSIVE  PROCESS  COMPANIES
 SHALL  CARRY OUT TO IDENTIFY, CEASE, PREVENT, MITIGATE, ACCOUNT FOR, AND
 REMEDIATE ACTUAL AND POTENTIAL ADVERSE IMPACTS TO HUMAN RIGHTS  AND  THE
 ENVIRONMENT  IN  THEIR  OWN  OPERATIONS  AND  IN  THEIR SUPPLY CHAIN, IN
 COMPLIANCE WITH, AT A MINIMUM, THE STANDARDS OUTLINED IN THE MOST RECENT
 ORGANISATION FOR ECONOMIC CO-OPERATION AND  DEVELOPMENT  GUIDELINES  FOR
 MULTINATIONAL  ENTERPRISES,  AND THE ORGANISATION FOR ECONOMIC CO-OPERA-
 TION AND DEVELOPMENT  DUE  DILIGENCE  GUIDANCE  FOR  RESPONSIBLE  SUPPLY
 CHAINS IN THE GARMENT AND FOOTWEAR SECTOR.
   (H)  "DUE  DILIGENCE  REPORT"  SHALL MEAN THE DOCUMENT PREPARED BY THE
 COMPANY TO COMMUNICATE ALL RELEVANT INFORMATION  CONCERNING  THE  EXIST-
 ENCE,  IMPLEMENTATION  AND  OUTCOMES OF DUE DILIGENCE IN ORDER TO COMPLY
 WITH THE REQUIREMENTS OF THIS SECTION, AND TO COMPLY WITH ANY  RULES  OR
 REGULATIONS ESTABLISHED PURSUANT TO THIS SECTION.
   (I)  "RISK-BASED  APPROACH"  SHALL MEAN COMMENSURATE TO THE LIKELIHOOD
 AND SEVERITY OF THE HARM.  THE FASHION SELLER SHALL PRIORITIZE THE ORDER
 S. 4746                             3
 
 IN WHICH IT TAKES ACTION BASED ON THE LIKELIHOOD AND SEVERITY  OF  HARM.
 SEVERITY  OF  IMPACTS  SHALL  BE  DETERMINED ACCORDING TO THEIR SCALE OR
 GRAVITY, SCOPE, AND IRREMEDIABLE CHARACTER.
   (J)  "SUPPLY CHAIN TIERS" SHALL MEAN A FOUR TIER SYSTEM DEFINED AS THE
 FOLLOWING:
   (I) "TIER ONE" SHALL MEAN SUPPLIERS WHO  PRODUCE  FINISHED  GOODS  FOR
 FASHION  SELLERS,  INCLUDING  SUPPLIERS' SUBCONTRACTORS, WHO PROVIDE THE
 FOLLOWING SERVICES, INCLUDING BUT NOT LIMITED TO SEWING  AND  EMBROIDER-
 ING;
   (II)  "TIER  TWO"  SHALL MEAN SUPPLIERS TO TIER ONE, INCLUDING SUBCON-
 TRACTORS, WHO PROVIDE THE FOLLOWING SERVICES OR GOODS, INCLUDING BUT NOT
 LIMITED TO KNITTING, WEAVING, WASHING, DYEING, FINISHING,  PRINTING  FOR
 FINISHED  GOODS,  AND  COMPONENTS  AND MATERIALS FOR FINISHED GOODS WHEN
 THEY ARE STAND-ALONE OPERATIONS AND NOT INTEGRATED WITH TIER ONE. COMPO-
 NENTS SHALL MEAN MATERIALS USED TO BUILD A PRODUCT,  INCLUDING  BUT  NOT
 LIMITED TO BUTTONS, ZIPPERS, RUBBER SOLES, DOWN, AND FUSIBLES;
   (III) "TIER THREE" SHALL MEAN SUPPLIERS TO TIER TWO SUPPLIERS, INCLUD-
 ING  SUBCONTRACTORS,  WHO  PROCESS RAW MATERIALS, SUCH AS GINNING, SPIN-
 NING, AND SUPPLIERS OF CHEMICALS; AND
   (IV) "TIER FOUR" SHALL MEAN COMPANIES, INCLUDING SUBCONTRACTORS,  THAT
 PROVIDE RAW MATERIALS TO TIER THREE.
   (K) "INDEPENDENTLY VERIFIED" SHALL MEAN AUDITED BY A VERIFICATION BODY
 ACCREDITED  BY  THE DEPARTMENT OF STATE AS DESCRIBED IN SUBDIVISION FIVE
 OF THIS SECTION.
   (L) "LIVING WAGE" SHALL MEAN THE REMUNERATION RECEIVED FOR A  STANDARD
 WORKWEEK BY A WORKER IN A PARTICULAR PLACE SUFFICIENT TO AFFORD A DECENT
 STANDARD  OF  LIVING  FOR  SUCH  WORKER  AND THEIR FAMILY. ELEMENTS OF A
 DECENT STANDARD OF  LIVING  INCLUDE  FOOD,  WATER,  HOUSING,  EDUCATION,
 HEALTH CARE, TRANSPORTATION, CLOTHING, AND OTHER ESSENTIAL NEEDS INCLUD-
 ING  PROVISION  FOR  UNEXPECTED  EVENTS. LIVING WAGE SHALL BE DETERMINED
 EXCLUSIVE OF OVERTIME WAGES AND BY NET WAGES INCLUDING IN-KIND AND  CASH
 BENEFITS, AND DEDUCTING TAXES AND DEDUCTIONS.
   (M)  "OPEN  DATA  PRINCIPLES" SHALL MEAN DATA THAT CAN BE FREELY USED,
 REUSED AND REDISTRIBUTED BY ANYONE. SUCH DATA SHALL BE FINDABLE OR EASI-
 LY DISCOVERABLE ON A WEBSITE OR WITHIN A DATABASE, ACCESSIBLE OR  AVAIL-
 ABLE IN A MACHINE READABLE, CONVENIENT, MODIFIABLE FORM AND PUBLISHED AS
 A  WHOLE,  COMPLETE  DATASET,  INTEROPERABLE  OR  ABLE  TO BE MIXED WITH
 DIFFERENT DATASETS, AND REUSABLE OR PROVIDED UNDER AN OPEN LICENSE  THAT
 PERMITS  REUSE  AND REDISTRIBUTION, INCLUDING THE INTERMIXING WITH OTHER
 DATASETS.
   2. DUE DILIGENCE. (A) EVERY FASHION SELLER SHALL EFFECTIVELY CARRY OUT
 HUMAN RIGHTS AND ENVIRONMENTAL DUE DILIGENCE FOR THE PORTIONS  OF  THEIR
 BUSINESS RELATED TO WEARING APPAREL, FOOTWEAR OR FASHION BAGS, INCLUDING
 WEARING  APPAREL,  FOOTWEAR OR FASHION BAGS PRODUCED AS A PRIVATE LABEL,
 WHICH SHALL INCLUDE:
   (I) SUPPLY CHAIN MAPPING:
   (1) COMPANIES TAKING A RISK-BASED APPROACH AND IMPLEMENTING GOOD FAITH
 EFFORTS  TO  MAP  SUPPLIERS  ACROSS  TIER  ONE  THROUGH  TIER  FOUR   OF
 PRODUCTION.   TIER ONE SUPPLIERS SHALL BE MAPPED WITHIN TWELVE MONTHS OF
 THE EFFECTIVE DATE OF THIS SECTION,  AND  SHALL  CONTAIN  A  MINIMUM  OF
 SEVENTY-FIVE PERCENT OF SUPPLIERS BY VOLUME. TIER TWO SUPPLIERS SHALL BE
 MAPPED WITHIN TWO YEARS OF THE EFFECTIVE DATE OF THIS SECTION, AND SHALL
 CONTAIN  A  MINIMUM OF SEVENTY-FIVE PERCENT OF SUPPLIERS BY VOLUME. TIER
 THREE AND TIER FOUR SUPPLIERS SHALL BE MAPPED WITHIN THREE YEARS OF  THE
 EFFECTIVE  DATE  OF  THIS  SECTION  AND SHALL CONTAIN A MINIMUM OF FIFTY
 PERCENT OF SUPPLIERS BY VOLUME OR DOLLAR VALUE.
 S. 4746                             4
 
   (2) SUPPLIER DISCLOSURE FOR ALL TIERS SHALL INCLUDE THE NAME, ADDRESS,
 PARENT COMPANY, PRODUCT TYPE AND NUMBER OF WORKERS AT EACH SITE BY COUN-
 TRY;
   (3)  FOR  TIER ONE SUPPLIERS, FASHION SELLERS SHALL REPORT, AT A MINI-
 MUM, THE FOLLOWING INFORMATION TO THE ATTORNEY GENERAL, WHICH  SHALL  BE
 INDEPENDENTLY VERIFIED NO LESS THAN ONCE EVERY TWO YEARS:
   (A)  THE MEAN WAGES OF WORKERS, AND HOW THIS COMPARES WITH LOCAL MINI-
 MUM WAGE AND LIVING WAGES;
   (B) THE PERCENTAGE OF UNIONIZED FACTORIES; AND
   (C) HOURS WORKED WEEKLY BY MONTH AND THE HOURS AND FREQUENCY OF  OVER-
 TIME BY FIRM AND COUNTRY.
   (II) IN CARRYING OUT EFFECTIVE DUE DILIGENCE, FASHION SELLERS SHALL BE
 IN COMPLIANCE WITH THE ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVEL-
 OPMENT GUIDELINES FOR MULTINATIONAL ENTERPRISES AND THE ORGANISATION FOR
 ECONOMIC CO-OPERATION AND DEVELOPMENT DUE DILIGENCE GUIDANCE FOR RESPON-
 SIBLE  SUPPLY CHAINS IN THE GARMENT AND FOOTWEAR SECTOR, REQUIRING FASH-
 ION SELLERS TO, AT A MINIMUM:
   (1) EMBED RESPONSIBLE BUSINESS CONDUCT INTO THE COMPANY'S POLICIES AND
 MANAGEMENT SYSTEMS;
   (2) IDENTIFY AREAS OF SIGNIFICANT RISKS IN THE  CONTEXTS  OF  ITS  OWN
 ACTIVITIES AND BUSINESS AND SUPPLY CHAIN RELATIONSHIPS;
   (3)  IDENTIFY,  PRIORITIZE,  AND  ASSESS THE SIGNIFICANT POTENTIAL AND
 ACTUAL ADVERSE IMPACTS OF THOSE RISKS;
   (4) CEASE, PREVENT OR MITIGATE THOSE RISKS. THIS  SHALL  INCLUDE,  BUT
 NOT BE LIMITED TO:
   (A) INCENTIVIZING IMPROVED SUPPLIER PERFORMANCE ON WORKERS' RIGHTS AND
 ENVIRONMENTAL  IMPACT  BY  EMBEDDING RESPONSIBLE PURCHASING PRACTICES IN
 ITS SUPPLY CHAIN RELATIONSHIPS AND CONTRACTS, INCLUDING BUT NOT  LIMITED
 TO  CONTRACT  RENEWALS, LONGER TERM CONTRACTS, PRICE PREMIUMS, PROVIDING
 REASONABLE ASSISTANCE TO SUPPLIERS SO  THAT  THEY  CAN  MEET  APPLICABLE
 HUMAN  RIGHTS  AND  ENVIRONMENTAL STANDARDS INCLUDING BUT NOT LIMITED TO
 MEETING THE CARBON EMISSION REDUCTION TARGETS SET OUT IN  THIS  SECTION,
 AND  DEVELOPING PRICING MODELS THAT ACCOUNT FOR THE COST OF WAGES, BENE-
 FITS, AND INVESTMENTS IN SUITABLE WORK,  SPECIFICALLY  AS  REFLECTED  IN
 FREIGHT  ON  BOARD  PRICES  TOGETHER  WITH TRADITIONAL PRICING CONSIDER-
 ATIONS, SUCH AS QUANTITIES BEING PURCHASED, COST OF MATERIALS, AND SKILL
 REQUIREMENTS. WAGES, BENEFITS, AND INVESTMENTS SHALL, AT A  MINIMUM,  BE
 IN  LINE  WITH  THE  REQUIREMENTS SET OUT IN LOCAL LABOR LAWS, INCLUDING
 MINIMUM WAGE LAWS;
   (B) UTILIZING RESPONSIBLE EXIT OR DISENGAGEMENT STRATEGIES;
   (C) CONSULTING AND ENGAGING WITH  IMPACTED  AND  POTENTIALLY  IMPACTED
 STAKEHOLDERS AND RIGHTS HOLDERS AND THEIR REPRESENTATIVES;
   (D) ESTABLISHING QUANTITATIVE BASELINE AND REDUCTION TARGETS ON GREEN-
 HOUSE  GAS  EMISSIONS.  GREENHOUSE  GAS  EMISSIONS  INVENTORY  SHALL  BE
 REPORTED  ANNUALLY,  INCLUDE  ABSOLUTE  FIGURES  AND  CONFORM  WITH  THE
 ACCOUNTING  AND REPORTING REQUIREMENTS OF THE MOST RECENT GREENHOUSE GAS
 PROTOCOL CORPORATE ACCOUNTING AND REPORTING STANDARD,  SCOPE  TWO  GUID-
 ANCE,  AND  THE MOST RECENT CORPORATE VALUE CHAIN SCOPE THREE ACCOUNTING
 AND REPORTING STANDARD PROMULGATED BY THE WORLD RESOURCES INSTITUTE  AND
 THE  WORLD  BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT. GREENHOUSE GAS
 EMISSIONS INVENTORY REPORTED IN THE DUE DILIGENCE  REPORT  DESCRIBED  IN
 SUBDIVISION  THREE  OF  THIS  SECTION SHALL BE INDEPENDENTLY VERIFIED NO
 LESS THAN ONCE EVERY TWO YEARS. WITHIN FOUR YEARS OF THE EFFECTIVE  DATE
 OF THIS SECTION, PRIMARY DATA SHALL BE USED TO CAPTURE TIER TWO AND TIER
 THREE INVENTORY OF THE MOST SIGNIFICANT SUPPLIERS CONTRIBUTING TO GREEN-
 HOUSE GAS EMISSIONS.  SIGNIFICANT SUPPLIERS SHALL MEAN SUPPLIERS REPRES-
 S. 4746                             5
 
 ENTING  SEVENTY-FIVE  PERCENT  OF FABRIC BY VOLUME IN TIER TWO AND FIFTY
 PERCENT OF FABRIC BY VOLUME  IN  TIER  THREE.  GREENHOUSE  GAS  EMISSION
 REDUCTION  TARGETS MUST BE NEAR-TERM AND LONG-TERM, COVERING SCOPES ONE,
 TWO  AND  THREE  EMISSIONS,  AND ALIGN WITH, AT A MINIMUM, SCIENCE BASED
 TARGETS INITIATIVE'S MOST RECENT TARGET VALIDATION CRITERIA  AS  PROMUL-
 GATED  BY  WORLD RESOURCES INSTITUTE, CDP, UNITED NATIONS GLOBAL COMPACT
 AND THE WORLD WILDLIFE FUND. FOR FASHION  SELLERS  WITH  GLOBAL  REVENUE
 OVER ONE BILLION DOLLARS, THE ABSOLUTE CONTRACTION APPROACH MUST BE USED
 TO  CALCULATE  SCOPE THREE EMISSIONS. FASHION SELLERS SHALL MEET TARGETS
 AND REPORT THEIR COMPLIANCE ON AN ANNUAL BASIS IN  THEIR  DUE  DILIGENCE
 REPORT,  AS  DESCRIBED IN SUBDIVISION THREE OF THIS SECTION. IF FOUND TO
 BE OUT OF COMPLIANCE, FASHION SELLERS  SHALL  HAVE  EIGHTEEN  MONTHS  TO
 REMEDY  THEIR EMISSIONS AND RETURN TO THE NECESSARY REDUCTION PATHWAY TO
 DELIVER ON THEIR TARGETS. IN NON-TARGET YEARS, NON-COMPLIANCE SHALL MEAN
 AN INCREASE IN ABSOLUTE EMISSIONS IN THREE CONSECUTIVE YEARS, FOR COMPA-
 NIES OVER A BILLION DOLLARS IN REVENUE. IN TARGET YEARS,  NON-COMPLIANCE
 SHALL MEAN NOT REACHING THE TARGET.
   (E)  IN COMPLIANCE WITH, AT A MINIMUM, THE ZERO DISCHARGE OF HAZARDOUS
 CHEMICALS PROGRAM'S MOST RECENT WASTEWATER GUIDELINES,  FASHION  SELLERS
 SHALL  BE  REQUIRED,  FOR ALL SIGNIFICANT TIER TWO DYEING, FINISHING AND
 GARMENT WASHING SUPPLIERS, TO SAMPLE AND REPORT ON  WASTEWATER  CHEMICAL
 CONCENTRATIONS  AND  WATER USAGE, WITHIN TWO YEARS OF THE EFFECTIVE DATE
 OF THIS SECTION. SUCH REPORTS SHALL BE INDEPENDENTLY  VERIFIED.  FASHION
 SELLERS  SHALL ALSO PROVIDE CORRECTIVE ACTION PLANS FOR THEIR WASTEWATER
 TREATMENT WITHIN THIRTY MONTHS OF THE EFFECTIVE DATE  OF  THIS  SECTION.
 AFTER THREE YEARS OF THE EFFECTIVE DATE OF THIS SECTION, FASHION SELLERS
 SHALL  BE  CONSIDERED  OUT  OF  COMPLIANCE IF THEIR SIGNIFICANT TIER TWO
 DYEING, FINISHING AND GARMENT SUPPLIERS HAVE NOT MADE ADEQUATE  PROGRESS
 IN  REMEDIATION  OF  WASTEWATER  POLLUTION CONCENTRATIONS.   SIGNIFICANT
 SUPPLIERS SHALL MEAN  SUPPLIERS  REPRESENTING  SEVENTY-FIVE  PERCENT  OF
 FABRIC BY VOLUME;
   (5) TRACK IMPLEMENTATION AND RESULTS;
   (6)  PROVIDE  FOR  OR  CO-OPERATE  IN  REMEDIATION  IN THE EVENT OF AN
 ADVERSE IMPACT:
   (A) REMEDIES SHALL SEEK TO RESTORE THE  AFFECTED  PERSON  OR  PERSONS,
 WHERE  PRACTICABLE,  TO  THE  SITUATION  THEY WOULD HAVE BEEN IN HAD THE
 ADVERSE IMPACT NOT OCCURRED AND SHALL ENABLE REMEDIATION THAT IS PROPOR-
 TIONATE TO THE SIGNIFICANCE AND SCALE OF THE ADVERSE IMPACT;
   (B) REMEDIES SHALL INCLUDE, DEPENDING ON THE NATURE AND EXTENT OF  THE
 ADVERSE IMPACT, APOLOGIES, RESTITUTION OR REHABILITATION INCLUDING REIN-
 STATEMENT  OF  DISMISSED WORKERS, RECOGNITION OF THE TRADE UNION FOR THE
 PURPOSE OF COLLECTIVE BARGAINING,  FINANCIAL  OR  NON-FINANCIAL  COMPEN-
 SATION  INCLUDING  ESTABLISHING  COMPENSATION  FUNDS FOR VICTIMS, OR FOR
 FUTURE OUTREACH AND EDUCATIONAL PROGRAMS, PUNITIVE  SANCTIONS  INCLUDING
 THE  DISMISSALS OF STAFF RESPONSIBLE FOR WRONGDOING, AND TAKING MEASURES
 TO PREVENT FUTURE ADVERSE IMPACTS; AND
   (C) IN RELATION TO HUMAN RIGHTS IMPACTS, FASHION SELLERS SHALL CONSULT
 AND ENGAGE WITH IMPACTED RIGHTS HOLDERS AND THEIR  REPRESENTATIVES  WHEN
 DETERMINING THE REMEDY.
   (B)  THE DUE DILIGENCE REQUIREMENTS PURSUANT TO THIS SUBDIVISION SHALL
 NOT BE CONDITIONAL UPON THE COMPANY BEING EFFECTIVELY  INVOLVED  IN  THE
 SUBSIDIARY'S  DAY-TO-DAY OPERATIONS OR EXERCISING A SUFFICIENT DEGREE OF
 CONTROL ON COMPANIES WITHIN ITS SUPPLY CHAIN.
   3. REPORTING. EVERY FASHION SELLER SHALL DEVELOP  AND  SUBMIT  TO  THE
 OFFICE  OF  THE  ATTORNEY  GENERAL  ANNUALLY,  BEGINNING WITHIN EIGHTEEN
 MONTHS OF THE EFFECTIVE DATE OF THIS SECTION, A  DUE  DILIGENCE  REPORT.
 S. 4746                             6
 
 SUCH  REPORT,  EXCLUDING  THE  INFORMATION  REQUIRED  IN CLAUSE THREE OF
 SUBPARAGRAPH (I) OF PARAGRAPH (A) OF SUBDIVISION TWO  OF  THIS  SECTION,
 SHALL ALSO BE MADE PUBLICLY AVAILABLE ON THE FASHION SELLER'S WEBSITE IN
 A MACHINE READABLE AND REUSABLE FORMAT, PUBLISHED IN LINE WITH OPEN DATA
 PRINCIPLES  THROUGH A CLEAR AND EASILY DISCOVERABLE LINK TO THE REQUIRED
 INFORMATION. IN THE EVENT THE FASHION SELLER DOES NOT HAVE  AN  INTERNET
 WEBSITE,  THE  COMPANY  SHALL PROVIDE A WRITTEN DISCLOSURE TO ANY PERSON
 WHO HAS REQUESTED INFORMATION WITHIN THIRTY DAYS OF RECEIVING A REQUEST.
 SUCH REPORT SHALL ALSO INCLUDE THE FASHION  SELLER'S  ANNUAL  VOLUME  OF
 MATERIAL PRODUCED, INCLUDING BREAKDOWN BY MATERIAL TYPE.
   4.  REGULATIONS.  THE  DEPARTMENT OF STATE SHALL, IN CONSULTATION WITH
 THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION AND  DEPARTMENT  OF  LABOR,
 PROMULGATE   ALL  RULES  AND  REGULATIONS  NECESSARY  TO  IMPLEMENT  THE
 PROVISIONS OF THIS SECTION WITHIN SIX MONTHS FROM THE EFFECTIVE DATE  OF
 THIS  SECTION. THE DEPARTMENT OF STATE, IN CONSULTATION WITH THE DEPART-
 MENT OF ENVIRONMENTAL CONSERVATION AND DEPARTMENT OF LABOR,  SHALL  ALSO
 DEVELOP  AND  DISSEMINATE  EDUCATIONAL  MATERIALS  TO  FASHION  SELLERS,
 INCLUDING PROVIDING ALERTS ON TIME SENSITIVE  ISSUES,  EMERGING  ISSUES,
 AND  HIGH-RISK  COUNTRY  SITUATIONS,  AND  ASSISTING  FASHION SELLERS IN
 IMPROVING THE QUALITY OF THEIR DUE DILIGENCE PROCESSES.
   5. VERIFICATION. (A) THE DEPARTMENT OF STATE  SHALL,  IN  CONSULTATION
 WITH  THE  DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION AND DEPARTMENT OF
 LABOR, DEVELOP A PROCESS FOR ACCREDITING VERIFICATION BODIES  AUTHORIZED
 TO  PROVIDE  VERIFICATION  SERVICES  FOR  THE  PURPOSES OF THIS SECTION,
 INCLUDING WHICH REQUIREMENTS THE ENTITY IS AUTHORIZED TO VERIFY.
   (B) SUCH PROCESS SHALL AT A MINIMUM CONSIDER:
   (I) THE DEMONSTRATED QUALIFICATIONS OF VERIFICATION  STAFF,  INCLUDING
 THEIR  EDUCATION,  EXPERIENCE,  AND PROFESSIONAL LICENSES.  VERIFICATION
 BODIES MUST EMPLOY AND RETAIN AT LEAST FIVE TOTAL FULL-TIME  STAFF  WITH
 EXPERTISE IN THE REQUIREMENTS THEY SEEK TO VERIFY UNDER THIS SECTION;
   (II)  ANY JUDICIAL PROCEEDINGS, ENFORCEMENT ACTIONS, OR ADMINISTRATIVE
 ACTIONS FILED AGAINST THE BODY WITHIN THE PREVIOUS FIVE YEARS; AND
   (III) THE POLICIES AND MECHANISMS IN PLACE  TO  PREVENT  CONFLICTS  OF
 INTEREST  AND  TO  IDENTIFY  AND  RESOLVE POTENTIAL CONFLICT OF INTEREST
 SITUATIONS IF THEY ARISE. THE DEPARTMENT  SHALL  REQUIRE  APPLICANTS  TO
 SUBMIT THE FOLLOWING INFORMATION, AT A MINIMUM:
   (1)  IDENTIFICATION OF SERVICES PROVIDED BY THE VERIFICATION BODY, THE
 INDUSTRIES THAT THE BODY SERVES, AND THE LOCATIONS WHERE THOSE  SERVICES
 ARE PROVIDED;
   (2)  A  DETAILED  ORGANIZATIONAL  CHART THAT INCLUDES THE VERIFICATION
 BODY, ITS MANAGEMENT STRUCTURE, AND ANY RELATED ENTITIES; AND
   (3) THE VERIFICATION BODY'S INTERNAL CONFLICT OF INTEREST POLICY  THAT
 IDENTIFIES  ACTIVITIES AND LIMITS TO MONETARY OR NON-MONETARY GIFTS THAT
 APPLY TO ALL EMPLOYEES AND PROCEDURES TO MONITOR CONFLICTS OF INTEREST.
   (C) VERIFICATION BODIES SHALL NOT BE AUTHORIZED TO PROVIDE SERVICES TO
 A COMPANY WHERE A CONFLICT OF INTEREST EXISTS. A  CONFLICT  OF  INTEREST
 SHALL INCLUDE:
   (I) WHERE THE VERIFICATION BODY AND REPORTING ENTITY SHARE ANY MANAGE-
 MENT  STAFF  OR  BOARD  OF  DIRECTORS  MEMBERSHIP,  OR ANY OF THE SENIOR
 MANAGEMENT STAFF OF THE REPORTING  ENTITY  HAVE  BEEN  EMPLOYED  BY  THE
 VERIFICATION BODY, OR VICE VERSA, WITHIN THE PREVIOUS FIVE YEARS;
   (II)  ANY  EMPLOYEE  OF  THE  VERIFICATION  BODY, OR ANY EMPLOYEE OF A
 RELATED ENTITY, OR A SUBCONTRACTOR WHO IS A MEMBER OF  THE  VERIFICATION
 TEAM  HAS  PROVIDED  THE  REPORTING  ENTITY WITH SERVICES RELATED TO THE
 AREAS OF VERIFICATION, OR ANY SERVICES DESIGNATED BY THE  DEPARTMENT  OF
 STATE, WITHIN THE PREVIOUS FIVE YEARS;
 S. 4746                             7
 
   (III)  ANY  STAFF MEMBER OF THE VERIFICATION BODY PROVIDES ANY TYPE OF
 NON-MONETARY INCENTIVE TO A REPORTING ENTITY TO  SECURE  A  VERIFICATION
 SERVICES CONTRACT; AND
   (IV) ANY ADDITIONAL CRITERIA PROVIDED BY THE DEPARTMENT OF STATE.
   (D) VERIFICATION BODIES THAT HAVE BEEN ACCREDITED BY THE DEPARTMENT OF
 STATE  SHALL  NOTIFY THE DEPARTMENT WITHIN THIRTY DAYS IF THEY NO LONGER
 MEET THE VERIFICATION REQUIREMENTS SET FORTH BY THIS SECTION.
   6. ENFORCEMENT. (A) THE REQUIREMENTS IMPOSED  ON  FASHION  SELLERS  BY
 THIS  SECTION  SHALL  BE  MONITORED,  INVESTIGATED,  AND ENFORCED BY THE
 ATTORNEY GENERAL OR AN ADMINISTRATOR DESIGNATED BY THE ATTORNEY  GENERAL
 TO BRING CIVIL PROCEEDINGS FOR AN INJUNCTION, MONETARY DAMAGES, OR CIVIL
 PERFORMANCE  OF  A  STATUTORY DUTY. FASHION SELLERS SHALL BE DEEMED NON-
 COMPLIANT WITH THIS SECTION IF THEY FAIL TO CONDUCT EFFECTIVE DUE  DILI-
 GENCE  PURSUANT TO SUBDIVISION TWO OF THIS SECTION OR FAIL TO FILE A DUE
 DILIGENCE REPORT PURSUANT TO SUBDIVISION THREE OF THIS SECTION.
   (B) THE ATTORNEY GENERAL, OR THE ATTORNEY GENERAL'S DESIGNATED  ADMIN-
 ISTRATOR  AS APPLICABLE, SHALL ANNUALLY PUBLISH AND MAKE PUBLICLY AVAIL-
 ABLE A REPORT REGARDING COMPLIANCE WITH THIS SECTION, LISTING THE  FASH-
 ION  SELLERS WHO ARE KNOWN TO BE OUT OF COMPLIANCE WITH THIS SECTION AND
 INCLUDING AN UP-TO-DATE REPORT ON THE ATTORNEY GENERAL'S  MONITORING  OF
 SUCH COMPLIANCE.
   (C)  FASHION  SELLERS  FOUND TO BE OUT OF COMPLIANCE WITH THIS SECTION
 AFTER THE ATTORNEY GENERAL, OR THE ATTORNEY GENERAL'S DESIGNATED  ADMIN-
 ISTRATOR AS APPLICABLE, HAS PROVIDED NOTICE OF NON-COMPLIANCE, AND AFTER
 A  THREE-MONTH PERIOD TO MEET OBLIGATIONS UNDER THIS SECTION HAS LAPSED,
 MAY BE FINED UP TO TWO PERCENT OF ANNUAL REVENUES. SUCH FINES  SHALL  BE
 DEPOSITED  IN  THE COMMUNITY BENEFIT FUND ESTABLISHED BY SECTION NINETY-
 SEVEN-CCC OF THE STATE FINANCE LAW.
   (D)  THE ATTORNEY GENERAL, OR THE ATTORNEY GENERAL'S DESIGNATED ADMIN-
 ISTRATOR SHALL USE  A  RISK-BASED  APPROACH  IN  ENFORCEMENT  AND  SHALL
 PUBLISH ENFORCEMENT GUIDELINES.
   (E)  ANY PERSON MAY REPORT A VIOLATION OF THIS SECTION TO THE ATTORNEY
 GENERAL'S OFFICE.
   (F) ANY FASHION SELLER SHALL BE HELD JOINTLY AND SEVERALLY LIABLE  FOR
 THE PAYMENT OF WAGES OF THE EMPLOYEES OF ITS TIER ONE SUPPLIERS. FOR THE
 PURPOSES OF THIS SECTION, WAGES SHALL BE INCLUSIVE OF ALL MONEYS OWED IN
 ACCORDANCE  WITH THE LAW OF THE COUNTRY OF MANUFACTURE, INCLUDING WAGES,
 OVERTIME WAGES, PAID LEAVE, INCENTIVES, BONUSES, SEVERANCE AND ANY OTHER
 FORM OF PAYMENT OR COMPENSATION.  FOR  THE  PURPOSES  OF  THIS  SECTION,
 EMPLOYEE  SHALL  INCLUDE  ALL  WORKERS,  WHETHER FULL-TIME OR PART-TIME,
 PERMANENT OR FIXED-TERM, DIRECTLY CONTRACTED OR HIRED INDIRECTLY THROUGH
 AN AGENCY OR OTHER INTERMEDIARY. FASHION SELLERS  SHALL  BE  LIABLE  FOR
 PAYMENT  OF  LOST  WAGES  AND  AN  ADDITIONAL EQUAL AMOUNT AS LIQUIDATED
 DAMAGES.
   § 3. The state finance law is amended by adding a new  section  97-ccc
 to read as follows:
   § 97-CCC. FASHION REMEDIATION FUND.  1. THERE IS HEREBY ESTABLISHED IN
 THE  JOINT  CUSTODY OF THE COMPTROLLER, THE COMMISSIONER OF TAXATION AND
 FINANCE, THE COMMISSIONER OF ENVIRONMENTAL CONSERVATION, AND THE COMMIS-
 SIONER OF LABOR A SPECIAL FUND TO BE KNOWN AS  THE  FASHION  REMEDIATION
 FUND.
   2.  SUCH  FUND SHALL CONSIST OF ALL MONEYS DEPOSITED PURSUANT TO PARA-
 GRAPH (C) OF SUBDIVISION SIX OF SECTION THREE HUNDRED NINETY-NINE-MM  OF
 THE GENERAL BUSINESS LAW.
   3.  THE  MONEYS  IN  THE  FUND SHALL BE EXPENDED BY THE COMPTROLLER IN
 CONSULTATION WITH THE  DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION,  THE
 S. 4746                             8
 
 DEPARTMENT  OF LABOR AND RELEVANT STAKEHOLDERS FOR THE PURPOSE OF IMPLE-
 MENTING ONE OR MORE ENVIRONMENTAL BENEFIT PROJECTS OR LABOR  REMEDIATION
 PROJECTS  THAT  DIRECTLY AND VERIFIABLY BENEFIT THE WORKERS AND COMMUNI-
 TIES  DIRECTLY  IMPACTED, TO THE EXTENT PRACTICABLE, AT THE LOCATION THE
 INJURY HAS OCCURRED.
   4. ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR,  THE  COMPTROLLER
 SHALL  CERTIFY TO THE TEMPORARY PRESIDENT OF THE SENATE, AND THE SPEAKER
 OF THE ASSEMBLY, THE AMOUNT OF MONEY DEPOSITED BY  SOURCE  IN  THE  FUND
 DURING  THE  PRECEDING  CALENDAR YEAR, AS WELL AS ALL DISBURSEMENTS FROM
 THE FUND DURING THE PRECEDING CALENDAR YEAR.
   5. MONEYS SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND  WARRANT  OF
 THE  COMPTROLLER  ON VOUCHERS CERTIFIED AND APPROVED BY THE COMMISSIONER
 OF ENVIRONMENTAL CONSERVATION AND THE COMMISSIONER OF LABOR, AS APPLICA-
 BLE.
   § 4. The attorney general shall  certify  to  the  governor  that  the
 office  of  the  attorney  general  is  prepared  to  execute the duties
 assigned in subdivision 6 of section 399-mm of the general business  law
 within  one year following the effective date of this act. If, after the
 expiration of one year, the  attorney  general  requires  more  time  to
 certify  that  the office of the attorney general is prepared to execute
 such duties, the attorney general may, for good cause  shown,  apply  to
 the governor for an extension of time. The governor may grant or deny an
 extension of up to one year according to their discretion.
   § 5. This act shall take effect immediately; provided, however, subdi-
 vision  6  of  section  399-mm  of  the general business law as added by
 section two of this act shall take effect one year  after  the  attorney
 general certifies that the office of the attorney general is prepared to
 execute  the  duties  assigned in such subdivision. The attorney general
 shall notify the legislative bill drafting commission  upon  the  occur-
 rence of such certification in order that the commission may maintain an
 accurate and timely effective data base of the official text of the laws
 of  the  state of New York in furtherance of effectuating the provisions
 of section 44 of the legislative law and  section  70-b  of  the  public
 officers law.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4746--B
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 14, 2023
                                ___________
 
 Introduced  by  Sens.  HOYLMAN-SIGAL,  BRISPORT, CHU, CLEARE, FERNANDEZ,
   GIANARIS, GONZALEZ, GOUNARDES, HARCKHAM, HINCHEY,  JACKSON,  KAVANAGH,
   KRUEGER,  LIU,  MANNION, MAY, MYRIE, RIVERA, RYAN, SALAZAR, SEPULVEDA,
   SERRANO, SKOUFIS, WEBB -- read twice and  ordered  printed,  and  when
   printed  to  be  committed  to the Committee on Consumer Protection --
   recommitted to the Committee on Consumer Protection in accordance with
   Senate Rule 6, sec. 8 -- committee discharged, bill  amended,  ordered
   reprinted  as  amended  and recommitted to said committee -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN ACT to amend the general business law, in relation to requiring fash-
   ion sellers to be accountable to environmental  standards  and  estab-
   lishing  the interstate fashion environment accountability act; and to
   amend the state finance law, in relation  to  establishing  a  fashion
   remediation fund
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "fashion environmental accountability act".
   §  2. The general business law is amended by adding a new section 399-
 mm to read as follows:
   § 399-MM. FASHION ENVIRONMENTAL ACCOUNTABILITY ACT.   1.  DEFINITIONS.
 AS  USED  IN  THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING
 MEANINGS:
   (A) "DOING BUSINESS IN THIS STATE" SHALL MEAN ACTIVELY ENGAGING IN ANY
 TRANSACTION FOR THE PURPOSE OF FINANCIAL OR PECUNIARY GAIN OR PROFIT.
   (B) "GROSS RECEIPTS" SHALL MEAN THE GROSS AMOUNTS REALIZED,  OTHERWISE
 KNOWN AS THE SUM OF MONEY AND THE FAIR MARKET VALUE OF OTHER PROPERTY OR
 SERVICES  RECEIVED, ON THE SALE OR EXCHANGE OF PROPERTY, THE PERFORMANCE
 OF SERVICES, OR THE USE OF PROPERTY OR CAPITAL, INCLUDING RENTS,  ROYAL-
 TIES,  INTEREST,  AND DIVIDENDS, IN A TRANSACTION THAT PRODUCES BUSINESS
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03469-12-4
              

 S. 4746--B                          2
 
 INCOME, IN WHICH THE INCOME, GAIN, OR LOSS IS RECOGNIZED,  OR  WOULD  BE
 RECOGNIZED  IF  THE  TRANSACTION  WERE  IN  THE UNITED STATES, UNDER THE
 INTERNAL REVENUE CODE, AS  APPLICABLE  FOR  PURPOSES  OF  THIS  SECTION.
 AMOUNTS  REALIZED  ON  THE  SALE  OR  EXCHANGE  OF PROPERTY SHALL NOT BE
 REDUCED BY THE COST OF GOODS SOLD OR THE BASIS OF PROPERTY  SOLD.  GROSS
 RECEIPTS,  EVEN  IF  BUSINESS  INCOME,  SHALL  NOT INCLUDE THE FOLLOWING
 ITEMS:
   (I) REPAYMENT, MATURITY, OR REDEMPTION OF THE  PRINCIPAL  OF  A  LOAN,
 BOND, MUTUAL FUND, CERTIFICATE OF DEPOSIT, OR SIMILAR MARKETABLE INSTRU-
 MENT;
   (II)  THE  PRINCIPAL  AMOUNT  RECEIVED UNDER A REPURCHASE AGREEMENT OR
 OTHER TRANSACTION PROPERLY CHARACTERIZED AS A LOAN;
   (III) PROCEEDS FROM ISSUANCE OF THE TAXPAYER'S OWN STOCK OR FROM  SALE
 OF TREASURY STOCK;
   (IV) DAMAGES AND OTHER AMOUNTS RECEIVED AS THE RESULT OF LITIGATION;
   (V) PROPERTY ACQUIRED BY AN AGENT ON BEHALF OF ANOTHER;
   (VI) TAX REFUNDS AND OTHER TAX BENEFIT RECOVERIES;
   (VII) PENSION REVERSIONS;
   (VIII)  CONTRIBUTIONS  TO  CAPITAL,  EXCEPT FOR SALES OF SECURITIES BY
 SECURITIES DEALERS;
   (IX) INCOME FROM DISCHARGE OF INDEBTEDNESS;
   (X) AMOUNTS REALIZED FROM EXCHANGES OF INVENTORY THAT ARE  NOT  RECOG-
 NIZED UNDER THE INTERNAL REVENUE CODE;
   (XI)  AMOUNTS  RECEIVED FROM TRANSACTIONS IN INTANGIBLE ASSETS HELD IN
 CONNECTION WITH A TREASURY FUNCTION OF THE TAXPAYER'S  UNITARY  BUSINESS
 AND  THE GROSS RECEIPTS AND OVERALL NET GAINS FROM THE MATURITY, REDEMP-
 TION, SALE, EXCHANGE, OR OTHER DISPOSITION OF THOSE  INTANGIBLE  ASSETS;
 AND
   (XII)  AMOUNTS RECEIVED FROM HEDGING TRANSACTIONS INVOLVING INTANGIBLE
 ASSETS. A "HEDGING TRANSACTION"  MEANS  A  TRANSACTION  RELATED  TO  THE
 TAXPAYER'S  TRADING  FUNCTION INVOLVING FUTURES AND OPTIONS TRANSACTIONS
 FOR THE PURPOSE OF HEDGING PRICE RISK OF  THE  PRODUCTS  OR  COMMODITIES
 CONSUMED, PRODUCED, OR SOLD BY THE TAXPAYER.
   (C) "FASHION SELLER" SHALL MEAN A BUSINESS ENTITY WHICH SELLS ARTICLES
 OF  WEARING  APPAREL, FOOTWEAR, OR FASHION BAGS THAT TOGETHER EXCEED ONE
 HUNDRED MILLION DOLLARS IN ANNUAL GROSS RECEIPTS, BUT SHALL NOT  INCLUDE
 THE  SALE  OF USED WEARING APPAREL, FOOTWEAR, OR FASHION BAGS, NOR SHALL
 IT INCLUDE MULTI-BRAND RETAILERS, EXCEPT WHERE  THE  APPAREL,  FOOTWEAR,
 AND  FASHION  BAG  PRIVATE LABELS OF THOSE COMPANIES TOGETHER EXCEED ONE
 HUNDRED MILLION DOLLARS IN GLOBAL REVENUE.
   (D) "ARTICLE OF WEARING APPAREL" SHALL MEAN ANY COSTUME OR ARTICLE  OF
 CLOTHING WORN OR INTENDED TO BE WORN BY INDIVIDUALS.
   (E)  "FOOTWEAR" SHALL MEAN ANY COVERING WORN OR INTENDED TO BE WORN ON
 THE FOOT.
   (F) "FASHION BAG" SHALL MEAN  FLEXIBLE  PACKAGING  MADE  OF  TEXTILES,
 LEATHER  OR OTHER ANIMAL PRODUCTS, WOVEN MATERIAL OR OTHER SIMILAR MATE-
 RIALS INTENDED FOR REPEATED USE.
   (G) "DUE DILIGENCE" SHALL MEAN  THE  COMPREHENSIVE  PROCESS  COMPANIES
 SHALL  CARRY OUT TO IDENTIFY, CEASE, PREVENT, MITIGATE, ACCOUNT FOR, AND
 REMEDIATE ACTUAL AND POTENTIAL ADVERSE IMPACTS  TO  THE  ENVIRONMENT  IN
 THEIR OWN OPERATIONS AND IN THEIR SUPPLY CHAIN, IN COMPLIANCE WITH, AT A
 MINIMUM,  THE  STANDARDS  OUTLINED  IN  THE MOST RECENT ORGANISATION FOR
 ECONOMIC  CO-OPERATION  AND  DEVELOPMENT  GUIDELINES  FOR  MULTINATIONAL
 ENTERPRISES,  AND THE MOST RECENT ORGANISATION FOR ECONOMIC CO-OPERATION
 AND DEVELOPMENT DUE DILIGENCE GUIDANCE FOR RESPONSIBLE SUPPLY CHAINS  IN
 THE GARMENT AND FOOTWEAR SECTOR.
 S. 4746--B                          3
 
   (H)  "DUE  DILIGENCE  REPORT"  SHALL MEAN THE DOCUMENT PREPARED BY THE
 COMPANY TO COMMUNICATE ALL RELEVANT INFORMATION  CONCERNING  THE  EXIST-
 ENCE,  IMPLEMENTATION  AND  OUTCOMES OF DUE DILIGENCE IN ORDER TO COMPLY
 WITH THE REQUIREMENTS OF THIS SECTION, AND TO COMPLY WITH ANY  RULES  OR
 REGULATIONS ESTABLISHED PURSUANT TO THIS SECTION.
   (I)  "RISK-BASED  APPROACH"  SHALL MEAN COMMENSURATE TO THE LIKELIHOOD
 AND SEVERITY OF THE HARM.  THE FASHION SELLER SHALL PRIORITIZE THE ORDER
 IN WHICH IT TAKES ACTION BASED ON THE LIKELIHOOD AND SEVERITY  OF  HARM.
 SEVERITY  OF  IMPACTS  SHALL  BE  DETERMINED ACCORDING TO THEIR SCALE OR
 GRAVITY, SCOPE, AND IRREMEDIABLE CHARACTER.
   (J) "SUPPLY CHAIN TIERS" SHALL MEAN A FOUR TIER SYSTEM DEFINED AS  THE
 FOLLOWING:
   (I)  "TIER  ONE"  SHALL  MEAN SUPPLIERS WHO PRODUCE FINISHED GOODS FOR
 FASHION SELLERS, INCLUDING SUPPLIERS' SUBCONTRACTORS,  WHO  PROVIDE  THE
 FOLLOWING  SERVICES,  INCLUDING BUT NOT LIMITED TO SEWING AND EMBROIDER-
 ING;
   (II) "TIER TWO" SHALL MEAN SUPPLIERS TO TIER  ONE,  INCLUDING  SUBCON-
 TRACTORS, WHO PROVIDE THE FOLLOWING SERVICES OR GOODS, INCLUDING BUT NOT
 LIMITED  TO  KNITTING, WEAVING, WASHING, DYEING, FINISHING, PRINTING FOR
 FINISHED GOODS, AND COMPONENTS AND MATERIALS  FOR  FINISHED  GOODS  WHEN
 THEY ARE STAND-ALONE OPERATIONS AND NOT INTEGRATED WITH TIER ONE. COMPO-
 NENTS  SHALL  MEAN  MATERIALS USED TO BUILD A PRODUCT, INCLUDING BUT NOT
 LIMITED TO BUTTONS, ZIPPERS, RUBBER SOLES, DOWN, AND FUSIBLES;
   (III) "TIER THREE" SHALL MEAN SUPPLIERS TO TIER TWO SUPPLIERS, INCLUD-
 ING SUBCONTRACTORS, WHO PROCESS RAW MATERIALS, SUCH  AS  GINNING,  SPIN-
 NING, AND SUPPLIERS OF CHEMICALS; AND
   (IV)  "TIER FOUR" SHALL MEAN COMPANIES, INCLUDING SUBCONTRACTORS, THAT
 PROVIDE RAW MATERIALS TO TIER THREE.
   (K) "INDEPENDENTLY VERIFIED" SHALL MEAN AUDITED BY A VERIFICATION BODY
 ACCREDITED BY THE DEPARTMENT OF STATE AS DESCRIBED IN  SUBDIVISION  FIVE
 OF THIS SECTION.
   (L)  "LIVING WAGE" SHALL MEAN THE REMUNERATION RECEIVED FOR A STANDARD
 WORKWEEK BY A WORKER IN A PARTICULAR PLACE SUFFICIENT TO AFFORD A DECENT
 STANDARD OF LIVING FOR SUCH WORKER  AND  THEIR  FAMILY.  ELEMENTS  OF  A
 DECENT  STANDARD  OF  LIVING  INCLUDE  FOOD,  WATER, HOUSING, EDUCATION,
 HEALTH CARE, TRANSPORTATION, CLOTHING, AND OTHER ESSENTIAL NEEDS INCLUD-
 ING PROVISION FOR UNEXPECTED EVENTS. LIVING  WAGE  SHALL  BE  DETERMINED
 EXCLUSIVE  OF OVERTIME WAGES AND BY NET WAGES INCLUDING IN-KIND AND CASH
 BENEFITS, AND DEDUCTING TAXES AND DEDUCTIONS.
   (M) "OPEN DATA PRINCIPLES" SHALL MEAN DATA THAT CAN  BE  FREELY  USED,
 REUSED AND REDISTRIBUTED BY ANYONE. SUCH DATA SHALL BE FINDABLE OR EASI-
 LY  DISCOVERABLE ON A WEBSITE OR WITHIN A DATABASE, ACCESSIBLE OR AVAIL-
 ABLE IN A MACHINE READABLE, CONVENIENT, MODIFIABLE FORM AND PUBLISHED AS
 A WHOLE, COMPLETE DATASET,  INTEROPERABLE  OR  ABLE  TO  BE  MIXED  WITH
 DIFFERENT  DATASETS, AND REUSABLE OR PROVIDED UNDER AN OPEN LICENSE THAT
 PERMITS REUSE AND REDISTRIBUTION, INCLUDING THE INTERMIXING  WITH  OTHER
 DATASETS.
   (N) "EMPLOYEE" SHALL MEAN ALL WORKERS, WHETHER FULL-TIME OR PART-TIME,
 PERMANENT OR FIXED-TERM, DIRECTLY CONTRACTED OR HIRED INDIRECTLY THROUGH
 AN AGENCY OR OTHER INTERMEDIARY.
   2. DUE DILIGENCE. (A) EVERY FASHION SELLER SHALL EFFECTIVELY CARRY OUT
 ENVIRONMENTAL  DUE  DILIGENCE FOR THE PORTIONS OF THEIR BUSINESS RELATED
 TO WEARING APPAREL, FOOTWEAR OR FASHION BAGS, INCLUDING WEARING APPAREL,
 FOOTWEAR OR FASHION BAGS  PRODUCED  AS  A  PRIVATE  LABEL,  WHICH  SHALL
 INCLUDE:
   (I) SUPPLY CHAIN MAPPING:
 S. 4746--B                          4
 
   (1) COMPANIES TAKING A RISK-BASED APPROACH AND IMPLEMENTING GOOD FAITH
 EFFORTS   TO  MAP  SUPPLIERS  ACROSS  TIER  ONE  THROUGH  TIER  FOUR  OF
 PRODUCTION.
   (2)  DISCLOSURE OF SUPPLIERS OF THE PRODUCTION SUPPLY CHAIN INCLUDING:
 THE NAME, PARENT COMPANY AND PRODUCT TYPE AT EACH SITE BY COUNTRY, FILED
 BY THE FOLLOWING:
   (A) TIER ONE SUPPLIERS SHALL BE DISCLOSED WITHIN TWELVE MONTHS OF  THE
 EFFECTIVE  DATE OF THIS SECTION, AND SHALL CONTAIN A MINIMUM OF SEVENTY-
 FIVE PERCENT OF SUPPLIERS BY VOLUME.
   (B) TIER TWO SUPPLIERS SHALL BE DISCLOSED  WITHIN  TWO  YEARS  OF  THE
 EFFECTIVE  DATE OF THIS SECTION, AND SHALL CONTAIN A MINIMUM OF SEVENTY-
 FIVE PERCENT OF SUPPLIERS BY VOLUME.
   (C) TIER THREE SUPPLIERS SHALL BE DISCLOSED WITHIN THREE YEARS OF  THE
 EFFECTIVE  DATE  OF  THIS  SECTION  AND SHALL CONTAIN A MINIMUM OF FIFTY
 PERCENT OF SUPPLIERS BY VOLUME OR DOLLAR VALUE.
   (D) TIER FOUR SUPPLIERS SHALL BE DISCLOSED WITHIN FOUR  YEARS  OF  THE
 EFFECTIVE  DATE  OF  THIS  SECTION  AND SHALL CONTAIN A MINIMUM OF FIFTY
 PERCENT OF SUPPLIERS BY VOLUME OR DOLLAR VALUE.
   (II) IN CARRYING OUT EFFECTIVE DUE DILIGENCE, FASHION SELLERS SHALL BE
 IN COMPLIANCE WITH THE ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVEL-
 OPMENT GUIDELINES FOR MULTINATIONAL ENTERPRISES AND THE ORGANISATION FOR
 ECONOMIC CO-OPERATION AND DEVELOPMENT DUE DILIGENCE GUIDANCE FOR RESPON-
 SIBLE SUPPLY CHAINS IN THE GARMENT AND FOOTWEAR SECTOR, REQUIRING  FASH-
 ION SELLERS TO, AT A MINIMUM:
   (1) EMBED RESPONSIBLE BUSINESS CONDUCT INTO THE COMPANY'S POLICIES AND
 MANAGEMENT SYSTEMS;
   (2)  IDENTIFY  AREAS  OF  SIGNIFICANT RISKS IN THE CONTEXTS OF ITS OWN
 ACTIVITIES AND BUSINESS AND SUPPLY CHAIN RELATIONSHIPS;
   (3) IDENTIFY, PRIORITIZE, AND ASSESS  THE  SIGNIFICANT  POTENTIAL  AND
 ACTUAL ADVERSE IMPACTS OF THOSE RISKS;
   (4)  CEASE,  PREVENT  OR MITIGATE THOSE RISKS. THIS SHALL INCLUDE, BUT
 NOT BE LIMITED TO:
   (A)  INCENTIVIZING  IMPROVED  SUPPLIER  PERFORMANCE  ON  ENVIRONMENTAL
 IMPACT BY EMBEDDING RESPONSIBLE PURCHASING PRACTICES IN ITS SUPPLY CHAIN
 RELATIONSHIPS  AND  CONTRACTS,  INCLUDING  BUT  NOT  LIMITED TO CONTRACT
 RENEWALS, LONGER TERM CONTRACTS, PRICE  PREMIUMS,  PROVIDING  REASONABLE
 ASSISTANCE  TO  SUPPLIERS SO THAT THEY CAN MEET APPLICABLE ENVIRONMENTAL
 STANDARDS INCLUDING BUT NOT  LIMITED  TO  MEETING  THE  CARBON  EMISSION
 REDUCTION  TARGETS  SET  OUT  IN THIS ACT, AND DEVELOPING PRICING MODELS
 THAT ACCOUNT FOR THE COST INVESTMENTS.
   (B) ESTABLISHING QUANTITATIVE BASELINE AND REDUCTION TARGETS ON GREEN-
 HOUSE  GAS  EMISSIONS.  GREENHOUSE  GAS  EMISSIONS  INVENTORY  SHALL  BE
 REPORTED  ANNUALLY, STARTING IN TWO THOUSAND TWENTY-SIX FOR EMISSIONS IN
 THE PRIOR FISCAL YEAR; INCLUDE ABSOLUTE FIGURES; AND  CONFORM  WITH  THE
 RULES  AND  REGULATIONS  MADE BY THE DEPARTMENT OF STATE IN CONSULTATION
 WITH THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION BASED ON THE  ACCOUNT-
 ING  AND REPORTING REQUIREMENTS OF THE MOST RECENT GREENHOUSE GAS PROTO-
 COL CORPORATE ACCOUNTING AND REPORTING  STANDARD,  SCOPE  TWO  GUIDANCE,
 AND,  STARTING  IN  TWO THOUSAND TWENTY-SEVEN, THE MOST RECENT CORPORATE
 VALUE CHAIN SCOPE THREE ACCOUNTING AND REPORTING STANDARD PROMULGATED BY
 THE WORLD  RESOURCES  INSTITUTE  AND  THE  WORLD  BUSINESS  COUNCIL  FOR
 SUSTAINABLE  DEVELOPMENT. GREENHOUSE GAS EMISSIONS INVENTORY REPORTED IN
 THE DUE DILIGENCE REPORT REQUIRED PURSUANT TO SUBDIVISION THREE OF  THIS
 SECTION  SHALL  BE  INDEPENDENTLY  VERIFIED  NO LESS THAN ONCE EVERY TWO
 YEARS. FASHION SELLERS SHALL NOT BE SUBJECT TO AN ADMINISTRATIVE PENALTY
 UNDER THIS SECTION FOR ANY MISSTATEMENTS  WITH  REGARD  TO  SCOPE  THREE
 S. 4746--B                          5
 
 EMISSIONS DISCLOSURES MADE WITH A REASONABLE BASIS AND DISCLOSED IN GOOD
 FAITH.  WITHIN FOUR YEARS OF THE EFFECTIVE DATE OF THIS SECTION, PRIMARY
 DATA SHALL BE USED TO CAPTURE THE FASHION SELLER'S  TIER  TWO  AND  TIER
 THREE INVENTORY OF ITS MOST SIGNIFICANT SUPPLIERS CONTRIBUTING TO GREEN-
 HOUSE  GAS EMISSIONS. SIGNIFICANT SUPPLIERS SHALL MEAN SUPPLIERS REPRES-
 ENTING SEVENTY-FIVE PERCENT OF FABRIC BY VOLUME IN TIER  TWO  AND  FIFTY
 PERCENT  OF  FABRIC  BY  VOLUME  IN  TIER THREE. GREENHOUSE GAS EMISSION
 REDUCTION TARGETS MUST BE NEAR-TERM AND LONG-TERM, COVERING SCOPES  ONE,
 TWO  AND  THREE EMISSIONS, AND ALIGN WITH THE RULES AND REGULATIONS MADE
 BY THE DEPARTMENT OF STATE IN CONSULTATION WITH THE DEPARTMENT OF  ENVI-
 RONMENTAL  CONSERVATION  BASED  ON,  AT  A MINIMUM, SCIENCE BASED TARGET
 INITIATIVE'S MOST RECENT TARGET VALIDATION CRITERIA  AS  PROMULGATED  BY
 WORLD  RESOURCES  INSTITUTE,  CDP, UNITED NATIONS GLOBAL COMPACT AND THE
 WORLD WILDLIFE FUND.  COMPLIANCE WITH THE RULES AND REGULATIONS MADE  BY
 THE  DEPARTMENT OF STATE SHALL NOT WAIVE COMPLIANCE REQUIREMENTS RELATED
 TO GREENHOUSE GAS EMISSIONS IN ANY OTHER PROVISION OF LAW.  FOR  FASHION
 SELLERS  WITH  GLOBAL  REVENUE  OVER  ONE  BILLION DOLLARS, THE ABSOLUTE
 CONTRACTION APPROACH MUST BE USED TO CALCULATE  SCOPE  THREE  EMISSIONS.
 FASHION  SELLERS  SHALL  MEET  TARGETS AND REPORT THEIR COMPLIANCE ON AN
 ANNUAL BASIS IN THEIR DUE DILIGENCE  REPORT,  AS  REQUIRED  PURSUANT  TO
 SUBDIVISION  THREE  OF  THIS  SECTION. IF FOUND TO BE OUT OF COMPLIANCE,
 FASHION SELLERS SHALL HAVE EIGHTEEN MONTHS TO REMEDY THEIR EMISSIONS AND
 RETURN TO THE NECESSARY REDUCTION PATHWAY TO DELIVER ON  THEIR  TARGETS.
 IN  NON-TARGET  YEARS, NON-COMPLIANCE SHALL MEAN AN INCREASE IN ABSOLUTE
 EMISSIONS IN THREE CONSECUTIVE  YEARS,  FOR  COMPANIES  OVER  A  BILLION
 DOLLARS  IN  REVENUE.  IN  TARGET  YEARS,  NON-COMPLIANCE SHALL MEAN NOT
 REACHING THE TARGET;
   (C) BEING IN COMPLIANCE WITH THE RULES AND  REGULATIONS  MADE  BY  THE
 DEPARTMENT OF STATE IN CONSULTATION WITH THE DEPARTMENT OF ENVIRONMENTAL
 CONSERVATION  BASED  ON,  AT  A MINIMUM, THE ZERO DISCHARGE OF HAZARDOUS
 CHEMICALS PROGRAM'S MOST RECENT WASTEWATER GUIDELINES,  FASHION  SELLERS
 SHALL  BE  REQUIRED,  FOR ALL SIGNIFICANT TIER TWO DYEING, FINISHING AND
 GARMENT WASHING SUPPLIERS, TO SAMPLE AND REPORT ON  WASTEWATER  CHEMICAL
 CONCENTRATIONS  AND  WATER USAGE, WITHIN TWO YEARS OF THE EFFECTIVE DATE
 OF THIS SECTION. SUCH REPORTS SHALL BE INDEPENDENTLY  VERIFIED.  FASHION
 SELLERS  SHALL ALSO PROVIDE CORRECTIVE ACTION PLANS FOR THEIR WASTEWATER
 TREATMENT WITHIN THIRTY MONTHS OF THE EFFECTIVE DATE  OF  THIS  SECTION.
 AFTER THREE YEARS OF THE EFFECTIVE DATE OF THIS SECTION, FASHION SELLERS
 SHALL  BE  CONSIDERED  OUT  OF  COMPLIANCE IF THEIR SIGNIFICANT TIER TWO
 DYEING, FINISHING AND GARMENT SUPPLIERS HAVE NOT MADE ADEQUATE  PROGRESS
 IN  REMEDIATION  OF  WASTEWATER  POLLUTION  CONCENTRATIONS.  SIGNIFICANT
 SUPPLIERS SHALL MEAN  SUPPLIERS  REPRESENTING  SEVENTY-FIVE  PERCENT  OF
 FABRIC BY VOLUME.  COMPLIANCE WITH THE RULES AND REGULATIONS MADE BY THE
 DEPARTMENT  OF  STATE SHALL NOT WAIVE COMPLIANCE REQUIREMENTS RELATED TO
 GREENHOUSE GAS EMISSIONS IN ANY OTHER PROVISION OF LAW;
   (D) UTILIZING RESPONSIBLE EXIT OR DISENGAGEMENT STRATEGIES;
   (E) CONSULTING AND ENGAGING WITH  IMPACTED  AND  POTENTIALLY  IMPACTED
 STAKEHOLDERS AND RIGHTS HOLDERS AND THEIR REPRESENTATIVES;
   (5) TRACK IMPLEMENTATION AND RESULTS;
   (6)  PROVIDE  FOR  OR  CO-OPERATE  IN  REMEDIATION  IN THE EVENT OF AN
 ADVERSE IMPACT:
   (A) REMEDIES SHALL SEEK TO RESTORE THE  AFFECTED  PERSON  OR  PERSONS,
 WHERE  PRACTICABLE,  TO  THE  SITUATION  THEY WOULD HAVE BEEN IN HAD THE
 ADVERSE IMPACT NOT OCCURRED AND SHALL ENABLE REMEDIATION THAT IS PROPOR-
 TIONATE TO THE SIGNIFICANCE AND SCALE OF THE ADVERSE IMPACT; AND
 S. 4746--B                          6

   (B) REMEDIES SHALL INCLUDE, DEPENDING ON THE NATURE AND EXTENT OF  THE
 ADVERSE  IMPACT,  REMEDIATION, RESTITUTION OR FINANCIAL OR NON-FINANCIAL
 COMPENSATION, INCLUDING ESTABLISHING COMPENSATION FUNDS FOR  VICTIMS  OR
 FOR FUTURE OUTREACH AND EDUCATIONAL PROGRAMS, PUNITIVE SANCTIONS INCLUD-
 ING THE DISMISSALS OF STAFF RESPONSIBLE FOR WRONGDOING, AND ESTABLISHING
 AND  UNDERTAKING  MEASURES  TO PREVENT FUTURE ADVERSE IMPACTS, WHICH MAY
 INCLUDE, BUT ARE NOT LIMITED TO THE DEVELOPMENT OF  INTERNAL  PROTOCOLS,
 PRACTICES AND PROCEDURES TO PREVENT FUTURE ADVERSE IMPACTS.
   (B)  THE DUE DILIGENCE REQUIREMENTS PURSUANT TO THIS SUBDIVISION SHALL
 NOT BE CONDITIONAL UPON THE COMPANY BEING EFFECTIVELY  INVOLVED  IN  THE
 SUBSIDIARY'S  DAY-TO-DAY OPERATIONS OR EXERCISING A SUFFICIENT DEGREE OF
 CONTROL ON COMPANIES WITHIN ITS SUPPLY CHAIN.
   3. REPORTING. EVERY FASHION SELLER SHALL DEVELOP  AND  SUBMIT  TO  THE
 DEPARTMENT  OF  STATE  ANNUALLY, BEGINNING WITHIN EIGHTEEN MONTHS OF THE
 EFFECTIVE DATE OF THIS SECTION, A DUE DILIGENCE REPORT.
   (A) SUCH REPORT, EXCLUDING THE INFORMATION REQUIRED IN CLAUSE  TWO  OF
 SUBPARAGRAPH  (I)  OF  PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION,
 SHALL ALSO BE MADE PUBLICLY AVAILABLE ON THE FASHION SELLER'S WEBSITE IN
 A MACHINE READABLE AND REUSABLE FORMAT, PUBLISHED IN LINE WITH OPEN DATA
 PRINCIPLES THROUGH A CLEAR AND EASILY DISCOVERABLE LINK TO THE  REQUIRED
 INFORMATION.  IN  THE EVENT THE FASHION SELLER DOES NOT HAVE AN INTERNET
 WEBSITE, THE COMPANY SHALL PROVIDE A WRITTEN DISCLOSURE  TO  ANY  PERSON
 WHO HAS REQUESTED INFORMATION WITHIN THIRTY DAYS OF RECEIVING A REQUEST.
 SUCH  REPORT  SHALL  ALSO  INCLUDE THE FASHION SELLER'S ANNUAL VOLUME OF
 MATERIAL PRODUCED, INCLUDING BREAKDOWN BY MATERIAL TYPE.
   (B) SUCH REPORT SHALL CONTAIN ANNUAL ACTIVITIES AND FINANCIAL SPENDING
 TO SUPPORT SUPPLY CHAIN DUE DILIGENCE.
   (C) THE DEPARTMENT OF STATE SHALL IDENTIFY AND NOTIFY FASHION  SELLERS
 THAT  HAVE  FAILED  TO FILE A DUE DILIGENCE REPORT THAT THEY HAVE THIRTY
 DAYS TO FILE SUCH REPORT BEFORE BEING PLACED ON A  PUBLIC  NON-COMPLIANT
 LIST  AND THAT THEY MAY BE REFERRED TO THE ATTORNEY GENERAL FOR INVESTI-
 GATION.
   (D) THE DEPARTMENT OF STATE SHALL REVIEW THE DUE DILIGENCE REPORTS FOR
 COMPLETENESS.
   (E) FASHION SELLERS SHALL HAVE TWELVE MONTHS FROM THE INTRODUCTION  OF
 ANY  UPDATED GUIDANCE DOCUMENTS TO INTEGRATE SUCH GUIDANCE INTO THE NEXT
 ANNUAL DUE DILIGENCE REPORT.
   (F) THE DEPARTMENT OF STATE SHALL ESTABLISH A STANDARDIZED  DUE  DILI-
 GENCE  REPORT  FORMAT  MODEL AND PUBLISH SUCH MODEL DUE DILIGENCE REPORT
 ONLINE FOR USE BY FASHION SELLERS IN COMPLIANCE WITH THIS SECTION.
   4. REGULATIONS. (A) THE DEPARTMENT OF  STATE  SHALL,  IN  CONSULTATION
 WITH  THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION, PROMULGATE ALL RULES
 AND REGULATIONS NECESSARY TO IMPLEMENT THE PROVISIONS  OF  THIS  SECTION
 WITHIN SIX MONTHS FROM THE EFFECTIVE DATE OF THIS SECTION.
   (B)  THE  DEPARTMENT  OF STATE, IN CONSULTATION WITH THE DEPARTMENT OF
 ENVIRONMENTAL CONSERVATION, SHALL ALSO DEVELOP  AND  DISSEMINATE  EDUCA-
 TIONAL  MATERIALS TO FASHION SELLERS, INCLUDING PROVIDING ALERTS ON TIME
 SENSITIVE ISSUES, EMERGING ISSUES, AND HIGH-RISK COUNTRY SITUATIONS, AND
 ASSISTING FASHION SELLERS IN IMPROVING THE QUALITY OF  THEIR  DUE  DILI-
 GENCE PROCESSES.
   (C)  THE  DEPARTMENT  OF STATE SHALL DEVELOP REGULATIONS REGARDING THE
 INFORMATION REQUIRED TO BE REPORTED BY FASHION SELLERS IN THE DUE  DILI-
 GENCE  REPORT  IN  ITEM (B) OF CLAUSE FOUR OF SUBPARAGRAPH (II) OF PARA-
 GRAPH (A) OF SUBDIVISION TWO OF THIS SECTION.  SUCH REGULATIONS SHALL BE
 DEVELOPED IN CONSULTATION WITH THE DEPARTMENT OF ENVIRONMENTAL CONSERVA-
 TION AND THE MOST RECENT GREENHOUSE GAS PROTOCOL. SUCH REGULATIONS SHALL
 S. 4746--B                          7
 
 DEVELOP METHODOLOGIES TO CALCULATE DATA CAPTURE AS LAID OUT IN ITEM  (A)
 OF CLAUSE FOUR OF SUBPARAGRAPH (II) OF  PARAGRAPH (A) OF SUBDIVISION TWO
 OF THIS SECTION, PRIOR TO THAT REQUIREMENT BECOMING EFFECTIVE.
   (D)  THE  DEPARTMENT  OF STATE SHALL DEVELOP REGULATIONS REGARDING THE
 INFORMATION REQUIRED TO BE REPORTED BY FASHION SELLERS IN THE DUE  DILI-
 GENCE  REPORT  IN  ITEM (C) OF CLAUSE FOUR OF SUBPARAGRAPH (II) OF PARA-
 GRAPH (A) OF SUBDIVISION TWO OF THIS SECTION. SUCH REGULATIONS SHALL  BE
 DEVELOPED IN CONSULTATION WITH THE DEPARTMENT OF ENVIRONMENTAL CONSERVA-
 TION  AND  THE  ZERO DISCHARGE HAZARDOUS CHEMICALS PROGRAM'S MOST RECENT
 WASTEWATER GUIDELINES.
   (E) THE DEPARTMENT OF STATE SHALL  DEVELOP  REGULATIONS  ON  REPORTING
 REQUIREMENTS  THAT  MINIMIZE  DUPLICATION OF EFFORT AND ALLOWS A FASHION
 SELLER TO SUBMIT A DUE DILIGENCE REPORT TO THE DEPARTMENT OF STATE  THAT
 IS  PREPARED TO MEET OTHER NATIONAL AND INTERNATIONAL REPORTING REQUIRE-
 MENTS, INCLUDING ANY REPORTS REQUIRED BY THE FEDERAL GOVERNMENT, AS LONG
 AS SUCH REPORTS SATISFY ALL OF THE REQUIREMENTS OF  SUBDIVISION  TWO  OF
 THIS SECTION.
   5.  VERIFICATION.  (A)  THE DEPARTMENT OF STATE SHALL, IN CONSULTATION
 WITH THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION, DEVELOP A PROCESS FOR
 ACCREDITING  VERIFICATION  BODIES  AUTHORIZED  TO  PROVIDE  VERIFICATION
 SERVICES  FOR THE PURPOSES OF THIS SECTION, INCLUDING WHICH REQUIREMENTS
 THE ENTITY IS AUTHORIZED TO VERIFY.
   (B) SUCH PROCESS SHALL AT A MINIMUM CONSIDER:
   (I) THE DEMONSTRATED QUALIFICATIONS OF VERIFICATION  STAFF,  INCLUDING
 THEIR  EDUCATION,  EXPERIENCE,  AND PROFESSIONAL LICENSES.  VERIFICATION
 BODIES MUST EMPLOY AND RETAIN AT LEAST FIVE TOTAL FULL-TIME  STAFF  WITH
 EXPERTISE IN THE REQUIREMENTS THEY SEEK TO VERIFY UNDER THIS SECTION;
   (II)  ANY JUDICIAL PROCEEDINGS, ENFORCEMENT ACTIONS, OR ADMINISTRATIVE
 ACTIONS FILED AGAINST THE BODY WITHIN THE PREVIOUS FIVE YEARS; AND
   (III) THE POLICIES AND MECHANISMS IN PLACE  TO  PREVENT  CONFLICTS  OF
 INTEREST  AND  TO  IDENTIFY  AND  RESOLVE POTENTIAL CONFLICT OF INTEREST
 SITUATIONS IF THEY ARISE. THE DEPARTMENT  SHALL  REQUIRE  APPLICANTS  TO
 SUBMIT THE FOLLOWING INFORMATION, AT A MINIMUM:
   (1)  IDENTIFICATION OF SERVICES PROVIDED BY THE VERIFICATION BODY, THE
 INDUSTRIES THAT THE BODY SERVES, AND THE LOCATIONS WHERE THOSE  SERVICES
 ARE PROVIDED;
   (2)  A  DETAILED  ORGANIZATIONAL  CHART THAT INCLUDES THE VERIFICATION
 BODY, ITS MANAGEMENT STRUCTURE, AND ANY RELATED ENTITIES; AND
   (3) THE VERIFICATION BODY'S INTERNAL CONFLICT OF INTEREST POLICY  THAT
 IDENTIFIES  ACTIVITIES AND LIMITS TO MONETARY OR NON-MONETARY GIFTS THAT
 APPLY TO ALL EMPLOYEES AND PROCEDURES TO MONITOR CONFLICTS OF INTEREST.
   (C) VERIFICATION BODIES SHALL NOT BE AUTHORIZED TO PROVIDE SERVICES TO
 A COMPANY WHERE A CONFLICT OF INTEREST EXISTS. A  CONFLICT  OF  INTEREST
 SHALL INCLUDE:
   (I) WHERE THE VERIFICATION BODY AND REPORTING ENTITY SHARE ANY MANAGE-
 MENT  STAFF  OR  BOARD  OF  DIRECTORS  MEMBERSHIP,  OR ANY OF THE SENIOR
 MANAGEMENT STAFF OF THE REPORTING  ENTITY  HAVE  BEEN  EMPLOYED  BY  THE
 VERIFICATION BODY, OR VICE VERSA, WITHIN THE PREVIOUS FIVE YEARS;
   (II)  ANY  EMPLOYEE  OF  THE  VERIFICATION  BODY, OR ANY EMPLOYEE OF A
 RELATED ENTITY, OR A SUBCONTRACTOR WHO IS A MEMBER OF  THE  VERIFICATION
 TEAM  HAS  PROVIDED  THE  REPORTING  ENTITY WITH SERVICES RELATED TO THE
 AREAS OF VERIFICATION, OR ANY SERVICES DESIGNATED BY THE  DEPARTMENT  OF
 STATE, WITHIN THE PREVIOUS FIVE YEARS;
   (III)  ANY  STAFF MEMBER OF THE VERIFICATION BODY PROVIDES ANY TYPE OF
 NON-MONETARY INCENTIVE TO A REPORTING ENTITY TO  SECURE  A  VERIFICATION
 SERVICES CONTRACT; AND
 S. 4746--B                          8
 
   (IV) ANY ADDITIONAL CRITERIA PROVIDED BY THE DEPARTMENT OF STATE.
   (D) VERIFICATION BODIES THAT HAVE BEEN ACCREDITED BY THE DEPARTMENT OF
 STATE  SHALL  NOTIFY THE DEPARTMENT WITHIN THIRTY DAYS IF THEY NO LONGER
 MEET THE VERIFICATION REQUIREMENTS SET FORTH BY THIS SECTION.
   6. MONITORING AND ENFORCEMENT. (A) THE REQUIREMENTS IMPOSED ON FASHION
 SELLERS BY THIS SECTION SHALL BE MONITORED, INVESTIGATED,  AND  ENFORCED
 BY  THE  ATTORNEY GENERAL OR AN ADMINISTRATOR DESIGNATED BY THE ATTORNEY
 GENERAL TO BRING CIVIL PROCEEDINGS FOR AN INJUNCTION, OR FINES FOR MONE-
 TARY DAMAGES AS DESCRIBED IN THIS SECTION, OR  CIVIL  PERFORMANCE  OF  A
 STATUTORY  DUTY. FASHION SELLERS SHALL BE DEEMED NON-COMPLIANT WITH THIS
 SECTION IF THEY FAIL TO CONDUCT  EFFECTIVE  DUE  DILIGENCE  PURSUANT  TO
 SUBDIVISION  TWO  OF THIS SECTION OR FAIL TO FILE A DUE DILIGENCE REPORT
 PURSUANT TO SUBDIVISION THREE OF THIS SECTION.
   (B) THE DEPARTMENT OF STATE SHALL IDENTIFY AND NOTIFY FASHION  SELLERS
 THAT  HAVE  FAILED TO FILE A COMPLETE DUE DILIGENCE REPORT IN ACCORDANCE
 WITH THE RULES AND REGULATIONS PROMULGATED BY THE DEPARTMENT OF STATE IN
 CONSULTATION WITH THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION.  IF SUCH
 FASHION SELLERS FAIL TO FILE A COMPLETE REPORT, AFTER A PERIOD OF  THREE
 MONTHS,  THE  DEPARTMENT  OF  STATE  SHALL  REFER FASHION SELLERS TO THE
 ATTORNEY GENERAL FOR ENFORCEMENT FOR FAILURE TO FILE A COMPLETE REPORT.
   (C) THE DEPARTMENT OF  ENVIRONMENTAL  CONSERVATION  SHALL  REVIEW  AND
 CERTIFY  EFFECTIVE  DUE  DILIGENCE  FOR ENVIRONMENTAL MATTERS IN THE DUE
 DILIGENCE REPORT AND IDENTIFY FASHION SELLERS FOR REFERRAL TO THE ATTOR-
 NEY GENERAL FOR ANY FAILURES.
   (D) THE DEPARTMENT OF STATE SHALL COMPILE AND MAINTAIN A LIST OF  NON-
 COMPLIANT FASHION SELLERS ON THE DEPARTMENT'S WEBSITE. THE DEPARTMENT OF
 STATE  SHALL REFER TO THE ATTORNEY GENERAL FOR INVESTIGATION ANY FASHION
 SELLER WHO FAILS TO FILE A DUE DILIGENCE  REPORT  OR  FAILS  TO  CONDUCT
 EFFECTIVE  DUE  DILIGENCE,  ONCE ANY GRACE PERIOD LAPSES AND THE FASHION
 SELLER REMAINS IN NON-COMPLIANCE.
   (E) FASHION SELLERS FOUND TO HAVE  FAILED  TO  CONDUCT  EFFECTIVE  DUE
 DILIGENCE  PURSUANT TO SUBDIVISION TWO OF THIS SECTION OR FAILED TO FILE
 A COMPLETE DUE DILIGENCE REPORT PURSUANT TO SUBDIVISION  THREE  OF  THIS
 SECTION,  AFTER  THE  ATTORNEY GENERAL, OR THE ATTORNEY GENERAL'S DESIG-
 NATED ADMINISTRATOR, AS APPLICABLE, HAS PROVIDED NOTICE  OF  NON-COMPLI-
 ANCE,  AND  AFTER  A  THREE-MONTH  PERIOD TO MEET OBLIGATIONS UNDER THIS
 SECTION HAS LAPSED, MAY BE  ASSESSED  A  CIVIL  PENALTY  NOT  TO  EXCEED
 FIFTEEN  THOUSAND  DOLLARS  PER  VIOLATION  PER DAY. SUCH FINES SHALL BE
 DEPOSITED IN THE COMMUNITY BENEFIT FUND ESTABLISHED BY  SECTION  NINETY-
 SEVEN-CCC OF THE STATE FINANCE LAW.
   (F)  THE ATTORNEY GENERAL, OR THE ATTORNEY GENERAL'S DESIGNATED ADMIN-
 ISTRATOR SHALL USE  A  RISK-BASED  APPROACH  IN  ENFORCEMENT  AND  SHALL
 PUBLISH ENFORCEMENT GUIDELINES.
   (G)  ANY PERSON MAY REPORT A VIOLATION OF THIS SECTION TO THE ATTORNEY
 GENERAL'S OFFICE.
   § 3. The state finance law is amended by adding a new  section  97-ccc
 to read as follows:
   § 97-CCC. FASHION REMEDIATION FUND.  1. THERE IS HEREBY ESTABLISHED IN
 THE  JOINT  CUSTODY OF THE COMPTROLLER, THE COMMISSIONER OF TAXATION AND
 FINANCE, THE COMMISSIONER OF ENVIRONMENTAL CONSERVATION, AND THE COMMIS-
 SIONER OF LABOR A SPECIAL FUND TO BE KNOWN AS  THE  FASHION  REMEDIATION
 FUND.
   2.  SUCH  FUND SHALL CONSIST OF ALL MONEYS DEPOSITED PURSUANT TO PARA-
 GRAPH (C) OF SUBDIVISION SIX OF SECTION THREE HUNDRED NINETY-NINE-MM  OF
 THE GENERAL BUSINESS LAW.
 S. 4746--B                          9
 
   3. THE MONEYS IN THE FUND SHALL BE EXPENDED BY THE COMPTROLLER FOR THE
 PURPOSE  OF  IMPLEMENTING  ONE OR MORE ENVIRONMENTAL BENEFIT PROJECTS OR
 ENVIRONMENTAL REMEDIATION PROJECTS THAT DIRECTLY AND VERIFIABLY  BENEFIT
 THE  WORKERS  AND COMMUNITIES DIRECTLY IMPACTED, TO THE EXTENT PRACTICA-
 BLE, AT THE LOCATION THE INJURY HAS OCCURRED.
   4.  ON  OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE COMPTROLLER
 SHALL CERTIFY TO THE TEMPORARY PRESIDENT OF THE SENATE, AND THE  SPEAKER
 OF  THE  ASSEMBLY,  THE  AMOUNT OF MONEY DEPOSITED BY SOURCE IN THE FUND
 DURING THE PRECEDING CALENDAR YEAR, AS WELL AS  ALL  DISBURSEMENTS  FROM
 THE FUND DURING THE PRECEDING CALENDAR YEAR.
   5.  MONEYS  SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND WARRANT OF
 THE COMPTROLLER ON VOUCHERS CERTIFIED AND APPROVED BY  THE  COMMISSIONER
 OF ENVIRONMENTAL CONSERVATION AS APPLICABLE.
   §  4.  The  attorney  general  shall  certify to the governor that the
 office of the  attorney  general  is  prepared  to  execute  the  duties
 assigned  in subdivision 6 of section 399-mm of the general business law
 within one year following the effective date of this act. If, after  the
 expiration  of  one  year,  the  attorney  general requires more time to
 certify that the office of the attorney general is prepared  to  execute
 such  duties,  the  attorney general may, for good cause shown, apply to
 the governor for an extension of time. The governor may grant or deny an
 extension of up to one year according to their discretion.
   § 5. Severability. If any word, phrase, clause,  sentence,  paragraph,
 section, or part of this act shall be adjudged by any court of competent
 jurisdiction   to be invalid, such judgment shall not affect, impair, or
 invalidate the remainder thereof, but shall be confined in its operation
 to the word, phrase, clause, sentence, paragraph, section, or part ther-
 eof directly involved in the controversy in which such   judgment  shall
 have been rendered.
   §  6.  The department of state, in consultation with the department of
 environmental  conservation,  shall  promulgate  rules  and  regulations
 necessary  for  the implementation of this act within one hundred eighty
 days of the effective date of this act.
   § 7.  This act shall take effect immediately; provided, however,  that
 sections  one through three of this act shall take effect one year after
 they shall have become a law; provided further, however,  that  subdivi-
 sion 6 of section 399-mm of the general business law as added by section
 two  of  this  act shall take effect one year after the attorney general
 certifies that the office of the attorney general is prepared to execute
 the duties assigned in such  subdivision.  The  attorney  general  shall
 notify  the  legislative bill drafting commission upon the occurrence of
 such certification in order that the commission may maintain an accurate
 and timely effective data base of the official text of the laws  of  the
 state  of  New  York  in  furtherance  of effectuating the provisions of
 section 44 of the legislative law and section 70-b of the  public  offi-
 cers law.