S04746 Summary:

BILL NOS04746B
 
SAME ASSAME AS A04333-C
 
SPONSORHOYLMAN-SIGAL
 
COSPNSRBRISPORT, CHU, CLEARE, FERNANDEZ, GIANARIS, GONZALEZ, GOUNARDES, HARCKHAM, HINCHEY, JACKSON, KAVANAGH, KENNEDY, KRUEGER, LIU, MANNION, MAY, MYRIE, RIVERA, RYAN, SALAZAR, SEPULVEDA, SERRANO, SKOUFIS, WEBB
 
MLTSPNSR
 
Add §399-mm, Gen Bus L; add §97-ccc, St Fin L
 
Requires fashion sellers to be accountable to standardized environmental due diligence policies; establishes a fashion remediation fund.
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S04746 Actions:

BILL NOS04746B
 
02/14/2023REFERRED TO CONSUMER PROTECTION
01/03/2024REFERRED TO CONSUMER PROTECTION
05/07/2024AMEND (T) AND RECOMMIT TO CONSUMER PROTECTION
05/07/2024PRINT NUMBER 4746A
06/03/2024AMEND (T) AND RECOMMIT TO CONSUMER PROTECTION
06/03/2024PRINT NUMBER 4746B
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S04746 Committee Votes:

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S04746 Floor Votes:

There are no votes for this bill in this legislative session.
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S04746 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         4746--B
 
                               2023-2024 Regular Sessions
 
                    IN SENATE
 
                                    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:
 
     1    Section 1. Short title. This act shall be known and may  be  cited  as
     2  the "fashion environmental accountability act".
     3    §  2. The general business law is amended by adding a new section 399-
     4  mm to read as follows:
     5    § 399-mm. Fashion environmental accountability act.   1.  Definitions.
     6  As  used  in  this section, the following terms shall have the following
     7  meanings:
     8    (a) "Doing business in this state" shall mean actively engaging in any
     9  transaction for the purpose of financial or pecuniary gain or profit.
    10    (b) "Gross receipts" shall mean the gross amounts realized,  otherwise
    11  known as the sum of money and the fair market value of other property or
    12  services  received, on the sale or exchange of property, the performance
    13  of services, or the use of property or capital, including rents,  royal-
    14  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
 
     1  income, in which the income, gain, or loss is recognized,  or  would  be
     2  recognized  if  the  transaction  were  in  the United States, under the
     3  Internal Revenue Code, as  applicable  for  purposes  of  this  section.
     4  Amounts  realized  on  the  sale  or  exchange  of property shall not be
     5  reduced by the cost of goods sold or the basis of property  sold.  Gross
     6  receipts,  even  if  business  income,  shall  not include the following
     7  items:
     8    (i) repayment, maturity, or redemption of the  principal  of  a  loan,
     9  bond, mutual fund, certificate of deposit, or similar marketable instru-
    10  ment;
    11    (ii)  the  principal  amount  received under a repurchase agreement or
    12  other transaction properly characterized as a loan;
    13    (iii) proceeds from issuance of the taxpayer's own stock or from  sale
    14  of treasury stock;
    15    (iv) damages and other amounts received as the result of litigation;
    16    (v) property acquired by an agent on behalf of another;
    17    (vi) tax refunds and other tax benefit recoveries;
    18    (vii) pension reversions;
    19    (viii)  contributions  to  capital,  except for sales of securities by
    20  securities dealers;
    21    (ix) income from discharge of indebtedness;
    22    (x) amounts realized from exchanges of inventory that are  not  recog-
    23  nized under the Internal Revenue Code;
    24    (xi)  amounts  received from transactions in intangible assets held in
    25  connection with a treasury function of the taxpayer's  unitary  business
    26  and  the gross receipts and overall net gains from the maturity, redemp-
    27  tion, sale, exchange, or other disposition of those  intangible  assets;
    28  and
    29    (xii)  amounts received from hedging transactions involving intangible
    30  assets. A "hedging transaction"  means  a  transaction  related  to  the
    31  taxpayer's  trading  function involving futures and options transactions
    32  for the purpose of hedging price risk of  the  products  or  commodities
    33  consumed, produced, or sold by the taxpayer.
    34    (c) "Fashion seller" shall mean a business entity which sells articles
    35  of  wearing  apparel, footwear, or fashion bags that together exceed one
    36  hundred million dollars in annual gross receipts, but shall not  include
    37  the  sale  of used wearing apparel, footwear, or fashion bags, nor shall
    38  it include multi-brand retailers, except where  the  apparel,  footwear,
    39  and  fashion  bag  private labels of those companies together exceed one
    40  hundred million dollars in global revenue.
    41    (d) "Article of wearing apparel" shall mean any costume or article  of
    42  clothing worn or intended to be worn by individuals.
    43    (e)  "Footwear" shall mean any covering worn or intended to be worn on
    44  the foot.
    45    (f) "Fashion bag" shall mean  flexible  packaging  made  of  textiles,
    46  leather  or other animal products, woven material or other similar mate-
    47  rials intended for repeated use.
    48    (g) "Due diligence" shall mean  the  comprehensive  process  companies
    49  shall  carry out to identify, cease, prevent, mitigate, account for, and
    50  remediate actual and potential adverse impacts  to  the  environment  in
    51  their own operations and in their supply chain, in compliance with, at a
    52  minimum,  the  standards  outlined  in  the most recent Organisation for
    53  Economic  Co-operation  and  Development  Guidelines  for  Multinational
    54  Enterprises,  and the most recent Organisation for Economic Co-operation
    55  and Development Due Diligence Guidance for Responsible Supply Chains  in
    56  the Garment and Footwear Sector.

        S. 4746--B                          3
 
     1    (h)  "Due  diligence  report"  shall mean the document prepared by the
     2  company to communicate all relevant information  concerning  the  exist-
     3  ence,  implementation  and  outcomes of due diligence in order to comply
     4  with the requirements of this section, and to comply with any  rules  or
     5  regulations established pursuant to this section.
     6    (i)  "Risk-based  approach"  shall mean commensurate to the likelihood
     7  and severity of the harm.  The fashion seller shall prioritize the order
     8  in which it takes action based on the likelihood and severity  of  harm.
     9  Severity  of  impacts  shall  be  determined according to their scale or
    10  gravity, scope, and irremediable character.
    11    (j) "Supply chain tiers" shall mean a four tier system defined as  the
    12  following:
    13    (i)  "Tier  one"  shall  mean suppliers who produce finished goods for
    14  fashion sellers, including suppliers' subcontractors,  who  provide  the
    15  following  services,  including but not limited to sewing and embroider-
    16  ing;
    17    (ii) "Tier two" shall mean suppliers to tier  one,  including  subcon-
    18  tractors, who provide the following services or goods, including but not
    19  limited  to  knitting, weaving, washing, dyeing, finishing, printing for
    20  finished goods, and components and materials  for  finished  goods  when
    21  they are stand-alone operations and not integrated with tier one. Compo-
    22  nents  shall  mean  materials used to build a product, including but not
    23  limited to buttons, zippers, rubber soles, down, and fusibles;
    24    (iii) "Tier three" shall mean suppliers to tier two suppliers, includ-
    25  ing subcontractors, who process raw materials, such  as  ginning,  spin-
    26  ning, and suppliers of chemicals; and
    27    (iv)  "Tier four" shall mean companies, including subcontractors, that
    28  provide raw materials to tier three.
    29    (k) "Independently verified" shall mean audited by a verification body
    30  accredited by the department of state as described in  subdivision  five
    31  of this section.
    32    (l)  "Living wage" shall mean the remuneration received for a standard
    33  workweek by a worker in a particular place sufficient to afford a decent
    34  standard of living for such worker  and  their  family.  Elements  of  a
    35  decent  standard  of  living  include  food,  water, housing, education,
    36  health care, transportation, clothing, and other essential needs includ-
    37  ing provision for unexpected events. Living  wage  shall  be  determined
    38  exclusive  of overtime wages and by net wages including in-kind and cash
    39  benefits, and deducting taxes and deductions.
    40    (m) "Open data principles" shall mean data that can  be  freely  used,
    41  reused and redistributed by anyone. Such data shall be findable or easi-
    42  ly  discoverable on a website or within a database, accessible or avail-
    43  able in a machine readable, convenient, modifiable form and published as
    44  a whole, complete dataset,  interoperable  or  able  to  be  mixed  with
    45  different  datasets, and reusable or provided under an open license that
    46  permits reuse and redistribution, including the intermixing  with  other
    47  datasets.
    48    (n) "Employee" shall mean all workers, whether full-time or part-time,
    49  permanent or fixed-term, directly contracted or hired indirectly through
    50  an agency or other intermediary.
    51    2. Due Diligence. (a) Every fashion seller shall effectively carry out
    52  environmental  due  diligence for the portions of their business related
    53  to wearing apparel, footwear or fashion bags, including wearing apparel,
    54  footwear or fashion bags  produced  as  a  private  label,  which  shall
    55  include:
    56    (i) supply chain mapping:

        S. 4746--B                          4
 
     1    (1) companies taking a risk-based approach and implementing good faith
     2  efforts   to  map  suppliers  across  tier  one  through  tier  four  of
     3  production.
     4    (2)  disclosure of suppliers of the production supply chain including:
     5  the name, parent company and product type at each site by country, filed
     6  by the following:
     7    (A) Tier one suppliers shall be disclosed within twelve months of  the
     8  effective  date of this section, and shall contain a minimum of seventy-
     9  five percent of suppliers by volume.
    10    (B) Tier two suppliers shall be disclosed  within  two  years  of  the
    11  effective  date of this section, and shall contain a minimum of seventy-
    12  five percent of suppliers by volume.
    13    (C) Tier three suppliers shall be disclosed within three years of  the
    14  effective  date  of  this  section  and shall contain a minimum of fifty
    15  percent of suppliers by volume or dollar value.
    16    (D) Tier four suppliers shall be disclosed within four  years  of  the
    17  effective  date  of  this  section  and shall contain a minimum of fifty
    18  percent of suppliers by volume or dollar value.
    19    (ii) in carrying out effective due diligence, fashion sellers shall be
    20  in compliance with the Organisation for Economic Co-operation and Devel-
    21  opment Guidelines for Multinational Enterprises and the Organisation for
    22  Economic Co-operation and Development Due Diligence Guidance for Respon-
    23  sible Supply Chains in the Garment and Footwear Sector, requiring  fash-
    24  ion sellers to, at a minimum:
    25    (1) embed responsible business conduct into the company's policies and
    26  management systems;
    27    (2)  identify  areas  of  significant risks in the contexts of its own
    28  activities and business and supply chain relationships;
    29    (3) identify, prioritize, and assess  the  significant  potential  and
    30  actual adverse impacts of those risks;
    31    (4)  cease,  prevent  or mitigate those risks. This shall include, but
    32  not be limited to:
    33    (A)  incentivizing  improved  supplier  performance  on  environmental
    34  impact by embedding responsible purchasing practices in its supply chain
    35  relationships  and  contracts,  including  but  not  limited to contract
    36  renewals, longer term contracts, price  premiums,  providing  reasonable
    37  assistance  to  suppliers so that they can meet applicable environmental
    38  standards including but not  limited  to  meeting  the  carbon  emission
    39  reduction  targets  set  out  in this act, and developing pricing models
    40  that account for the cost investments.
    41    (B) establishing quantitative baseline and reduction targets on green-
    42  house  gas  emissions.  Greenhouse  gas  emissions  inventory  shall  be
    43  reported  annually, starting in two thousand twenty-six for emissions in
    44  the prior fiscal year; include absolute figures; and  conform  with  the
    45  rules  and  regulations  made by the department of state in consultation
    46  with the department of environmental conservation based on the  account-
    47  ing  and reporting requirements of the most recent Greenhouse Gas Proto-
    48  col Corporate Accounting and Reporting  Standard,  Scope  Two  Guidance,
    49  and,  starting  in  two thousand twenty-seven, the most recent Corporate
    50  Value Chain Scope Three accounting and reporting standard promulgated by
    51  the World  Resources  Institute  and  the  World  Business  Council  for
    52  Sustainable  Development. Greenhouse gas emissions inventory reported in
    53  the due diligence report required pursuant to subdivision three of  this
    54  section  shall  be  independently  verified  no less than once every two
    55  years. Fashion sellers shall not be subject to an administrative penalty
    56  under this section for any misstatements  with  regard  to  scope  three

        S. 4746--B                          5
 
     1  emissions disclosures made with a reasonable basis and disclosed in good
     2  faith.  Within four years of the effective date of this section, primary
     3  data shall be used to capture the fashion seller's  tier  two  and  tier
     4  three inventory of its most significant suppliers contributing to green-
     5  house  gas emissions. Significant suppliers shall mean suppliers repres-
     6  enting seventy-five percent of fabric by volume in tier  two  and  fifty
     7  percent  of  fabric  by  volume  in  tier three. Greenhouse gas emission
     8  reduction targets must be near-term and long-term, covering scopes  one,
     9  two  and  three emissions, and align with the rules and regulations made
    10  by the department of state in consultation with the department of  envi-
    11  ronmental  conservation  based  on,  at  a minimum, Science Based Target
    12  initiative's most recent target validation criteria  as  promulgated  by
    13  World  Resources  Institute,  CDP, United Nations Global Compact and the
    14  World Wildlife Fund.  Compliance with the rules and regulations made  by
    15  the  department of state shall not waive compliance requirements related
    16  to greenhouse gas emissions in any other provision of law.  For  fashion
    17  sellers  with  global  revenue  over  one  billion dollars, the absolute
    18  contraction approach must be used to calculate  scope  three  emissions.
    19  Fashion  sellers  shall  meet  targets and report their compliance on an
    20  annual basis in their due diligence  report,  as  required  pursuant  to
    21  subdivision  three  of  this  section. If found to be out of compliance,
    22  fashion sellers shall have eighteen months to remedy their emissions and
    23  return to the necessary reduction pathway to deliver on  their  targets.
    24  In  non-target  years, non-compliance shall mean an increase in absolute
    25  emissions in three consecutive  years,  for  companies  over  a  billion
    26  dollars  in  revenue.  In  target  years,  non-compliance shall mean not
    27  reaching the target;
    28    (C) being in compliance with the rules and  regulations  made  by  the
    29  department of state in consultation with the department of environmental
    30  conservation  based  on,  at  a minimum, the Zero Discharge of Hazardous
    31  Chemicals Program's most recent wastewater guidelines,  fashion  sellers
    32  shall  be  required,  for all significant tier two dyeing, finishing and
    33  garment washing suppliers, to sample and report on  wastewater  chemical
    34  concentrations  and  water usage, within two years of the effective date
    35  of this section. Such reports shall be independently  verified.  Fashion
    36  sellers  shall also provide corrective action plans for their wastewater
    37  treatment within thirty months of the effective date  of  this  section.
    38  After three years of the effective date of this section, fashion sellers
    39  shall  be  considered  out  of  compliance if their significant tier two
    40  dyeing, finishing and garment suppliers have not made adequate  progress
    41  in  remediation  of  wastewater  pollution  concentrations.  Significant
    42  suppliers shall mean  suppliers  representing  seventy-five  percent  of
    43  fabric by volume.  Compliance with the rules and regulations made by the
    44  department  of  state shall not waive compliance requirements related to
    45  greenhouse gas emissions in any other provision of law;
    46    (D) utilizing responsible exit or disengagement strategies;
    47    (E) consulting and engaging with  impacted  and  potentially  impacted
    48  stakeholders and rights holders and their representatives;
    49    (5) track implementation and results;
    50    (6)  provide  for  or  co-operate  in  remediation  in the event of an
    51  adverse impact:
    52    (A) remedies shall seek to restore the  affected  person  or  persons,
    53  where  practicable,  to  the  situation  they would have been in had the
    54  adverse impact not occurred and shall enable remediation that is propor-
    55  tionate to the significance and scale of the adverse impact; and

        S. 4746--B                          6

     1    (B) remedies shall include, depending on the nature and extent of  the
     2  adverse  impact,  remediation, restitution or financial or non-financial
     3  compensation, including establishing compensation funds for  victims  or
     4  for future outreach and educational programs, punitive sanctions includ-
     5  ing the dismissals of staff responsible for wrongdoing, and establishing
     6  and  undertaking  measures  to prevent future adverse impacts, which may
     7  include, but are not limited to the development of  internal  protocols,
     8  practices and procedures to prevent future adverse impacts.
     9    (b)  The due diligence requirements pursuant to this subdivision shall
    10  not be conditional upon the company being effectively  involved  in  the
    11  subsidiary's  day-to-day operations or exercising a sufficient degree of
    12  control on companies within its supply chain.
    13    3. Reporting. Every fashion seller shall develop  and  submit  to  the
    14  department  of  state  annually, beginning within eighteen months of the
    15  effective date of this section, a due diligence report.
    16    (a) Such report, excluding the information required in clause  two  of
    17  subparagraph  (i)  of  paragraph (a) of subdivision two of this section,
    18  shall also be made publicly available on the fashion seller's website in
    19  a machine readable and reusable format, published in line with open data
    20  principles through a clear and easily discoverable link to the  required
    21  information.  In  the event the fashion seller does not have an internet
    22  website, the company shall provide a written disclosure  to  any  person
    23  who has requested information within thirty days of receiving a request.
    24  Such  report  shall  also  include the fashion seller's annual volume of
    25  material produced, including breakdown by material type.
    26    (b) Such report shall contain annual activities and financial spending
    27  to support supply chain due diligence.
    28    (c) The department of state shall identify and notify fashion  sellers
    29  that  have  failed  to file a due diligence report that they have thirty
    30  days to file such report before being placed on a  public  non-compliant
    31  list  and that they may be referred to the attorney general for investi-
    32  gation.
    33    (d) The department of state shall review the due diligence reports for
    34  completeness.
    35    (e) Fashion sellers shall have twelve months from the introduction  of
    36  any  updated guidance documents to integrate such guidance into the next
    37  annual due diligence report.
    38    (f) The department of state shall establish a standardized  due  dili-
    39  gence  report  format  model and publish such model due diligence report
    40  online for use by fashion sellers in compliance with this section.
    41    4. Regulations. (a) The department of  state  shall,  in  consultation
    42  with  the department of environmental conservation, promulgate all rules
    43  and regulations necessary to implement the provisions  of  this  section
    44  within six months from the effective date of this section.
    45    (b)  The  department  of state, in consultation with the department of
    46  environmental conservation, shall also develop  and  disseminate  educa-
    47  tional  materials to fashion sellers, including providing alerts on time
    48  sensitive issues, emerging issues, and high-risk country situations, and
    49  assisting fashion sellers in improving the quality of  their  due  dili-
    50  gence processes.
    51    (c)  The  department  of state shall develop regulations regarding the
    52  information required to be reported by fashion sellers in the due  dili-
    53  gence  report  in  item (B) of clause four of subparagraph (ii) of para-
    54  graph (a) of subdivision two of this section.  Such regulations shall be
    55  developed in consultation with the department of environmental conserva-
    56  tion and the most recent Greenhouse Gas Protocol. Such regulations shall

        S. 4746--B                          7
 
     1  develop methodologies to calculate data capture as laid out in item  (A)
     2  of clause four of subparagraph (ii) of  paragraph (a) of subdivision two
     3  of this section, prior to that requirement becoming effective.
     4    (d)  The  department  of state shall develop regulations regarding the
     5  information required to be reported by fashion sellers in the due  dili-
     6  gence  report  in  item (C) of clause four of subparagraph (ii) of para-
     7  graph (a) of subdivision two of this section. Such regulations shall  be
     8  developed in consultation with the department of environmental conserva-
     9  tion  and  the  Zero Discharge Hazardous Chemicals Program's most recent
    10  wastewater guidelines.
    11    (e) The department of state shall  develop  regulations  on  reporting
    12  requirements  that  minimize  duplication of effort and allows a fashion
    13  seller to submit a due diligence report to the department of state  that
    14  is  prepared to meet other national and international reporting require-
    15  ments, including any reports required by the federal government, as long
    16  as such reports satisfy all of the requirements of  subdivision  two  of
    17  this section.
    18    5.  Verification.  (a)  The department of state shall, in consultation
    19  with the department of environmental conservation, develop a process for
    20  accrediting  verification  bodies  authorized  to  provide  verification
    21  services  for the purposes of this section, including which requirements
    22  the entity is authorized to verify.
    23    (b) Such process shall at a minimum consider:
    24    (i) the demonstrated qualifications of verification  staff,  including
    25  their  education,  experience,  and professional licenses.  Verification
    26  bodies must employ and retain at least five total full-time  staff  with
    27  expertise in the requirements they seek to verify under this section;
    28    (ii)  any judicial proceedings, enforcement actions, or administrative
    29  actions filed against the body within the previous five years; and
    30    (iii) the policies and mechanisms in place  to  prevent  conflicts  of
    31  interest  and  to  identify  and  resolve potential conflict of interest
    32  situations if they arise. The department  shall  require  applicants  to
    33  submit the following information, at a minimum:
    34    (1)  identification of services provided by the verification body, the
    35  industries that the body serves, and the locations where those  services
    36  are provided;
    37    (2)  a  detailed  organizational  chart that includes the verification
    38  body, its management structure, and any related entities; and
    39    (3) the verification body's internal conflict of interest policy  that
    40  identifies  activities and limits to monetary or non-monetary gifts that
    41  apply to all employees and procedures to monitor conflicts of interest.
    42    (c) Verification bodies shall not be authorized to provide services to
    43  a company where a conflict of interest exists. A  conflict  of  interest
    44  shall include:
    45    (i) where the verification body and reporting entity share any manage-
    46  ment  staff  or  board  of  directors  membership,  or any of the senior
    47  management staff of the reporting  entity  have  been  employed  by  the
    48  verification body, or vice versa, within the previous five years;
    49    (ii)  any  employee  of  the  verification  body, or any employee of a
    50  related entity, or a subcontractor who is a member of  the  verification
    51  team  has  provided  the  reporting  entity with services related to the
    52  areas of verification, or any services designated by the  department  of
    53  state, within the previous five years;
    54    (iii)  any  staff member of the verification body provides any type of
    55  non-monetary incentive to a reporting entity to  secure  a  verification
    56  services contract; and

        S. 4746--B                          8
 
     1    (iv) any additional criteria provided by the department of state.
     2    (d) Verification bodies that have been accredited by the department of
     3  state  shall  notify the department within thirty days if they no longer
     4  meet the verification requirements set forth by this section.
     5    6. Monitoring and enforcement. (a) The requirements imposed on fashion
     6  sellers by this section shall be monitored, investigated,  and  enforced
     7  by  the  attorney general or an administrator designated by the attorney
     8  general to bring civil proceedings for an injunction, or fines for mone-
     9  tary damages as described in this section, or  civil  performance  of  a
    10  statutory  duty. Fashion sellers shall be deemed non-compliant with this
    11  section if they fail to conduct  effective  due  diligence  pursuant  to
    12  subdivision  two  of this section or fail to file a due diligence report
    13  pursuant to subdivision three of this section.
    14    (b) The department of state shall identify and notify fashion  sellers
    15  that  have  failed to file a complete due diligence report in accordance
    16  with the rules and regulations promulgated by the department of state in
    17  consultation with the department of environmental conservation.  If such
    18  fashion sellers fail to file a complete report, after a period of  three
    19  months,  the  department  of  state  shall  refer fashion sellers to the
    20  attorney general for enforcement for failure to file a complete report.
    21    (c) The department of  environmental  conservation  shall  review  and
    22  certify  effective  due  diligence  for environmental matters in the due
    23  diligence report and identify fashion sellers for referral to the attor-
    24  ney general for any failures.
    25    (d) The department of state shall compile and maintain a list of  non-
    26  compliant fashion sellers on the department's website. The department of
    27  state  shall refer to the attorney general for investigation any fashion
    28  seller who fails to file a due diligence  report  or  fails  to  conduct
    29  effective  due  diligence,  once any grace period lapses and the fashion
    30  seller remains in non-compliance.
    31    (e) Fashion sellers found to have  failed  to  conduct  effective  due
    32  diligence  pursuant to subdivision two of this section or failed to file
    33  a complete due diligence report pursuant to subdivision  three  of  this
    34  section,  after  the  attorney general, or the attorney general's desig-
    35  nated administrator, as applicable, has provided notice  of  non-compli-
    36  ance,  and  after  a  three-month  period to meet obligations under this
    37  section has lapsed, may be  assessed  a  civil  penalty  not  to  exceed
    38  fifteen  thousand  dollars  per  violation  per day. Such fines shall be
    39  deposited in the community benefit fund established by  section  ninety-
    40  seven-ccc of the state finance law.
    41    (f)  The attorney general, or the attorney general's designated admin-
    42  istrator shall use  a  risk-based  approach  in  enforcement  and  shall
    43  publish enforcement guidelines.
    44    (g)  Any person may report a violation of this section to the attorney
    45  general's office.
    46    § 3. The state finance law is amended by adding a new  section  97-ccc
    47  to read as follows:
    48    § 97-ccc. Fashion remediation fund.  1. There is hereby established in
    49  the  joint  custody of the comptroller, the commissioner of taxation and
    50  finance, the commissioner of environmental conservation, and the commis-
    51  sioner of labor a special fund to be known as  the  fashion  remediation
    52  fund.
    53    2.  Such  fund shall consist of all moneys deposited pursuant to para-
    54  graph (c) of subdivision six of section three hundred ninety-nine-mm  of
    55  the general business law.

        S. 4746--B                          9
 
     1    3. The moneys in the fund shall be expended by the comptroller for the
     2  purpose  of  implementing  one or more environmental benefit projects or
     3  environmental remediation projects that directly and verifiably  benefit
     4  the  workers  and communities directly impacted, to the extent practica-
     5  ble, at the location the injury has occurred.
     6    4.  On  or before the first day of February each year, the comptroller
     7  shall certify to the temporary president of the senate, and the  speaker
     8  of  the  assembly,  the  amount of money deposited by source in the fund
     9  during the preceding calendar year, as well as  all  disbursements  from
    10  the fund during the preceding calendar year.
    11    5.  Moneys  shall be payable from the fund on the audit and warrant of
    12  the comptroller on vouchers certified and approved by  the  commissioner
    13  of environmental conservation as applicable.
    14    §  4.  The  attorney  general  shall  certify to the governor that the
    15  office of the  attorney  general  is  prepared  to  execute  the  duties
    16  assigned  in subdivision 6 of section 399-mm of the general business law
    17  within one year following the effective date of this act. If, after  the
    18  expiration  of  one  year,  the  attorney  general requires more time to
    19  certify that the office of the attorney general is prepared  to  execute
    20  such  duties,  the  attorney general may, for good cause shown, apply to
    21  the governor for an extension of time. The governor may grant or deny an
    22  extension of up to one year according to their discretion.
    23    § 5. Severability. If any word, phrase, clause,  sentence,  paragraph,
    24  section, or part of this act shall be adjudged by any court of competent
    25  jurisdiction   to be invalid, such judgment shall not affect, impair, or
    26  invalidate the remainder thereof, but shall be confined in its operation
    27  to the word, phrase, clause, sentence, paragraph, section, or part ther-
    28  eof directly involved in the controversy in which such   judgment  shall
    29  have been rendered.
    30    §  6.  The department of state, in consultation with the department of
    31  environmental  conservation,  shall  promulgate  rules  and  regulations
    32  necessary  for  the implementation of this act within one hundred eighty
    33  days of the effective date of this act.
    34    § 7.  This act shall take effect immediately; provided, however,  that
    35  sections  one through three of this act shall take effect one year after
    36  they shall have become a law; provided further, however,  that  subdivi-
    37  sion 6 of section 399-mm of the general business law as added by section
    38  two  of  this  act shall take effect one year after the attorney general
    39  certifies that the office of the attorney general is prepared to execute
    40  the duties assigned in such  subdivision.  The  attorney  general  shall
    41  notify  the  legislative bill drafting commission upon the occurrence of
    42  such certification in order that the commission may maintain an accurate
    43  and timely effective data base of the official text of the laws  of  the
    44  state  of  New  York  in  furtherance  of effectuating the provisions of
    45  section 44 of the legislative law and section 70-b of the  public  offi-
    46  cers law.
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