NY State Senate Bill 2025-S4558

Senate Bill S4558

2025-2026 Legislative Session

Requires fashion sellers to be accountable to standardized environmental and social due diligence policies, and establishes a fashion remediation fund

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Current Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Feb 07, 2025	referred to consumer protection

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2025-S4558 (ACTIVE) - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §399-mm, Gen Bus L; add §97-ccc, St Fin L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S7428
2023-2024: S4746

2025-S4558 (ACTIVE) - Summary

Requires fashion sellers to be accountable to standardized environmental due diligence policies; establishes a fashion remediation fund.

2025-S4558 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S4558

SPONSOR: HOYLMAN-SIGAL
 
TITLE OF BILL:

An act to amend the general business law, in relation to requiring fash-
ion sellers to be accountable to environmental standards and establish-
ing the interstate fashion environment accountability act; and to amend
the state finance law, in relation to establishing a fashion remediation
fund

 
PURPOSE:

To require fashion retailers to map their supply chains and perform
sufficient due diligence. This includes, identifying, preventing, miti-
gating, accounting for, and taking remedial action to address actual and
potential adverse impacts to human rights and the environment in their
own operations and in their supply chain.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 establishes the title of this act.

Section 2 amends the general business law by adding a new section 399-mm
to establish the Fashion Sustainability and Social Accountability Act.
This section sets forth requirements for fashion sellers with $100
million in annual gross receipts that do business in the state of New
York to map their supply chains and perform sufficient due diligence.
This includes identifying, preventing, mitigating, accounting for, and
taking remedial action to address actual and potential adverse impacts
to human rights and the environment. Covered companies must set science
based targets to reduce their greenhouse gas emissions, work with
suppliers to improve chemical management, and embed responsible purchas-
ing practices and responsible exit strategies to improve labor outcomes.

These requirements will be enforced by the Attorney General and viola-
tors may be fined up to 2% of annual revenues. Additionally, fashion
sellers will be held jointly and severally liable for wage theft by tier
one suppliers.

Section 3 amends the state finance law by adding a new section 97-ccc to
establish the Fashion Remediation Fund which will distribute any funds
raised by penalties to environmental or labor remediation projects in
impacted communities.

Section 4 requires the Attorney General to certify that their agency is
prepared to execute their duties under § 399-mm of the general business
law.

Section 5 sets forth an effective date.

 
JUSTIFICATION:

Fashion retailers largely operate in a regulatory vacuum. Currently
there are no legally binding environmental standards placed on the
apparel and footwear industries. As a result, "fast fashion" retailers
and manufacturers may ramp up production and operations without taking
environmental or social sustainability into account.  Apparel and foot-
wear are responsible for a massive part of the climate crisis causing
greenhouse gas emissions, between 4-8.6% of the world's global green-
house gas footprint.

Furthermore, the industry has systemic problems with labor exploitation.
The fashion industry relies disproportionately on the labor of women of
color, especially within production supply chains.  These workers are
routinely exploited, underpaid, and subject to sexual abuse in the
course of their work.

This legislation will shift the industry away from a race to the bottom
by requiring active due diligence and planning to mitigate risk. Under
the bill, apparel and footwear retailers with global revenue of at least
$100 million would be required to map their supply chains and suffi-
ciently engage in ongoing due diligence efforts to draw down their nega-
tive impacts.

Covered companies will be required to map and disclose their supply
chains from production to raw materials. Fashion companies often do not
know where their production is taking place, which makes it impossible
for them to begin to take responsibility or improve the conditions in
which their products are made.

Once apparel companies know and disclose their supply chains, they are
then required by the bill to address their negative impacts. This is
broadly achieved through the legally binding Mandatory Due Diligence
Framework, which requires companies to sufficiently identify, 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. Within the mandatory due diligence framework, the
Fashion Act will require companies to: 1) set and achieve climate
reductions in line with the Paris Agreement, 2) work with their suppli-
ers to effectively manage their chemical use, and 3) measurably improve
the lives of garment workers.

The Fashion Sustainability and Social Accountability Act will be the
global leader in reducing the carbon footprint of the fashion industry
by requiring companies wishing to sell to the New York market to set and
achieve science based targets. Science based targets require that the
pace of reductions are in line with the scale required to keep global
warming below 2C from preindustrial levels, as set out in the Paris
Agreement.

The Fashion Act will also fill in a massive regulatory gap by requiring
brands to work with their textile suppliers to effectively manage their
chemical use. No more dead rivers in the name of our clothes.

Garment workers face the brunt of the industry's race to the bottom.  By
requiring companies to perform mandatory due diligence, coupled with
independently verified disclosure around wages and strong enforcement
including joint and several liability of apparel companies with garment
workers for their lost wages, we can be confident that the lives of
garment workers, mostly women, will measurably and meaningfully improve.

The Act will be enforced by the Attorney General or a designated admin-
istrator. Companies found to be out of compliance and which do not reme-
dy within three months of notice of non compliance may be fined up to 2%
of annual revenues. These funds will be used for the benefit of workers
and communities directly injured and environmental benefit projects.
Fashion companies will also be held jointly and severally liable for
lost wages of the garment workers in their supply chains. Together,
these provisions will make New York the leader in corporate accountabil-
ity and demonstrate a path forward for industry to thrive within the
bounds of the planet.

 
LEGISLATIVE HISTORY:

Senate:

2023-24: S4746 died in Consumer Protection

2021-22: S7428A referred to consumer protection

Assembly:

2023-24: A4333 died in Rules

2021-22: A8352 referred to consumer affairs and protection

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately, except for section 5 of 399-mm
which 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 section 5 of 399-mm of the general business law.

2025-S4558 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4558
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             February 7, 2025
                                ___________
 
 Introduced  by Sens. HOYLMAN-SIGAL, BRISPORT, CLEARE, FERNANDEZ, GIANAR-
   IS, GONZALEZ, GOUNARDES, HARCKHAM, HINCHEY, JACKSON, KAVANAGH,  KRUEG-
   ER,  LIU,  MAY,  MYRIE,  RIVERA, S. RYAN, SALAZAR, SEPULVEDA, SERRANO,
   SKOUFIS, WEBB -- 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 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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01707-01-5

 S. 4558                             2
 
 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.
   (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.
 S. 4558                             3
 
   (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:
   (1) COMPANIES TAKING A RISK-BASED APPROACH AND IMPLEMENTING GOOD FAITH
 EFFORTS  TO  MAP  SUPPLIERS  ACROSS  TIER  ONE  THROUGH  TIER  FOUR   OF
 PRODUCTION.
 S. 4558                             4
 
   (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-SEVEN  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-EIGHT, 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
 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
 S. 4558                             5
 
 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
   (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-
 S. 4558                             6

 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
 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.
 S. 4558                             7
 
   (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
   (IV) ANY ADDITIONAL CRITERIA PROVIDED BY THE DEPARTMENT OF STATE.
 S. 4558                             8
 
   (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.
   3. THE MONEYS IN THE FUND SHALL BE EXPENDED BY THE COMPTROLLER FOR THE
 PURPOSE OF IMPLEMENTING ONE OR MORE ENVIRONMENTAL  BENEFIT  PROJECTS  OR
 S. 4558                             9
 
 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.

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