S 7203: Enacts the tropical rainforest economic & environmental sustainability act requiring that companies contracting with the state do not contribute to tropical forest degradation or deforestation directly or through their supply chains; establishes the supply chain transparency assistance program to assist small and medium-sized businesses and minority and women-owned businesses in achieving compliant supply chains.

  
  STATE OF NEW YORK ________________________________________________________________________ 7203 2025-2026 Regular Sessions  IN SENATE April 3, 2025 ___________ Introduced by Sens. KRUEGER, COONEY, MAY, BRISPORT, CLEARE, COMRIE, FERNANDEZ, GONZALEZ, HARCKHAM, HINCHEY, HOYLMAN-SIGAL, JACKSON, KAVANAGH, SALAZAR, SANDERS, SEPULVEDA, SERRANO, SKOUFIS, STAVISKY, WEBB -- read twice and ordered printed, and when printed to be commit- ted to the Committee on Procurement and Contracts AN ACT to amend the state finance law, in relation to enacting the trop- ical rainforest economic & environmental sustainability act; and to amend the economic development law, in relation to establishing the supply chain transparency assistance program The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act shall be known and may be cited as the "tropical 2 rainforest economic & environmental sustainability act". 3 § 2. Legislative findings. The legislature finds and declares the 4 following: 5 1. Tropical forests cover roughly 7 percent of Earth's surface, but 6 harbor close to 50 percent of all species on Earth. 7 2. Human activity is the driving force behind the current rate of 8 species extinction, which is at least 100 to 1,000 times higher than 9 historical levels. The Intergovernmental Science-Policy Platform on 10 Biodiversity and Ecosystem Services reported in 2019 that around 1 11 million animal and plant species are now threatened with extinction, 12 many within decades, more than ever before in human history. This is 13 directly linked to habitat loss, with more than a third of the world's 14 land surface and nearly 75 percent of freshwater resources now devoted 15 to crop or livestock production. 16 3. Globally, an estimated 18,000,000 acres of forest, an area more 17 than half the size of New York state, are lost every year to deforesta- 18 tion according to the Food and Agriculture Organization of the United 19 Nations, with over one-half of Earth's tropical forests already gone. At EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08526-03-5 
 S. 7203 2 1 the current pace, the entirety of Earth's tropical rainforests will be 2 degraded or destroyed within the next 100 years. 3 4. A significant percentage of the world's greenhouse gas emissions 4 come from deforestation and forest degradation. Taking into account 5 carbon sequestration potential, stopping the loss of tropical forests, 6 mangroves, and wetlands could provide over 20 percent of climate miti- 7 gation by 2030. 8 5. Loss of biodiversity resulting from forest degradation and defores- 9 tation, as well as human encroachment on formerly undisturbed ecosys- 10 tems, increases the risks of zoonotic disease pandemics such as COVID- 11 19. 12 6. New York state is a leader in addressing the climate crisis, with a 13 statutory goal of achieving net-zero greenhouse gas emissions economy- 14 wide by 2050. However, our statutory goals miss an important element of 15 our climate footprint represented by our exported emissions, the emis- 16 sions created by the goods we consume. A significant portion of this 17 footprint is driven by tropical deforestation. 18 7. Tropical deforestation in many countries is closely associated with 19 violations of the land rights of indigenous peoples and local communi- 20 ties and with the exploitation of workers, including forced labor and 21 child labor, and in many cases is enabled by corruption, criminality, 22 and violence against conservationists and land defenders. 23 8. Tropical deforestation in many countries is also closely associated 24 with illegal wildlife trafficking, including, but not limited to, vari- 25 ous bird and reptile species, and many primate species, including great 26 apes, pangolins, and orangutans, as well as many tree and plant species, 27 including mahoganies, rosewoods, ebony, and ipe, all of which have 28 recently been listed on the Convention of International Trade in Endan- 29 gered Species of Fauna and Flora (CITES). 30 9. The primary factors leading to tropical deforestation are degrada- 31 tion and road-building associated with logging for timber, which opens 32 the door for deforestation caused by industrial-scale production of 33 agricultural commodities and conversion of forests into plantations for 34 the timber, pulp, paper, palm oil, soy, and livestock industries, among 35 others. Together, these are increasingly known as "forest-risk commod- 36 ities". 37 10. New York is inadvertently promoting and sanctioning deforestation 38 and forest degradation through the purchase of goods and products that 39 have been produced in supply chains that contribute to tropical defores- 40 tation and tropical forest degradation. 41 11. New York has one of the largest economies in the world and its 42 purchasing power has significant market force, allowing it to play a 43 leadership role in preventing forest loss and supporting markets for 44 sustainably-sourced products. 45 12. It is the intent of the legislature that it be the policy of this 46 state to ensure companies contracting with the state are not contribut- 47 ing to tropical deforestation or tropical forest degradation directly or 48 through their supply chains. 49 § 3. Paragraphs b, c, d and e of subdivision 1 of section 165 of the 50 state finance law, as added by chapter 83 of the laws of 1995, are 51 amended to read as follows: 52 b. (i) "Tropical hardwood" shall mean any and all hardwood, scientif- 53 ically classified as angiosperm, that grows in any tropical [moist] 54 forest. Tropical hardwoods shall [be] include but not be limited to the 55 following species: 56 Scientific Name Examples of Common [Name] 
 S. 7203 3 1 Names 2 Prunus africana African cherry, Red stinkwood 3 Caryocar costaricense Ajo, Aji 4 Calophyllum spp. Bintangor 5 Cedrela spp. Cedar 6 Neobalanocarpus heimii, Chengal 7 Balanocarpus heimii 8 Octomeles sumatrana Miq. Erima, benuang 9 Myroxylon balsamum Estoraque 10 Apuleia leiocarpa Garapa 11 Parastemon urophyllus, Parastemon Malas 12 spicatus Ridley 13 Hopea spp. Merawan 14 Araucaria araucana Monkey Puzzle, Chilean pine 15 Pterocarpus tinctorius Mukula 16 Senna siamea Siamese senna 17 Pometia pinata Taun 18 Milletia leucantha Kurz Thinwin 19 Bulnesia arborea, Bulnesia Verawood, Argentine lignum 20 sarmientoi vitae 21 Tristaniopsis laurina Water gum 22 Terminalia spp. 23 Homalium foetidum Malas 24 Dillenia papuana Dillenia 25 Canarium spp. Red Canarium, Grey Canarium 26 Burkrella macropoda Rang rang 27 Octomeles sumatrana Erima, Benuang 28 Dracontomelon dao New Guinea walnut 29 Planchonella spp. White Planchonella, Red 30 Planchonella 31 Lophopetalum spp. Perupok 32 Carinian pyriformis Abarco, Jequitiba 33 Mitragyna ciliate Abura 34 Vouacapous americana Acapu 35 Amburana caerensis Amburana, Cerejeira 36 Dalbergia melanoxylon African Blackwood 37 Lovoa spp. African Walnut, Tigerwood 38 Pericopsis elata [Afrormosis] Afrormosia 39 [Shorea almon] [Almon] 40 Aspidosperma megalocarpon Acaretto 41 Peltogyne spp. Amaranth, purpleheart 42 Terminalia amazonia Amarillo Real 43 [Guibourtis] Guibourtia ehie Amazaque 44 Amburana cearensis Amburana, Cerejeira, cumare 45 Pterogyne nitens Amendoim 46 Carapa guianensis Andiroba, False Mahogany 47 Dicorynia guianensis Angilique Cris 48 [Aningeris] Aningeria spp. Aningeria, anegre, 49 anigre 50 Dipterocarpus [grandiflorus] [Apilong] Apitong, Keruing 51 spp. 52 Centrolobium spp. Arariba, Amarillo 53 Brosimum utile Baco 54 Shorea spp. Balau, Selangan batu 55 Ochroma lagopus Balsa 
 S. 7203 4 1 Ochroma pyramidale Balsa 2 Myroxylon balsamum Balsamo 3 [Virola spp.] [Banak] 4 [Anisoptera thurifera] [Bella Rose] 5 [Guibourtis] Guibourtia arnoldiana 6 Benge, Mutenye 7 Berlinia spp. Berlinia, Rose Zebrano 8 Symphonia globulifera Boar Wood 9 Deterium [Senegalese] senegalese Boire 10 Caesalpinia echintata, Brazilwood, Pernambuco 11 Paubrasilia eschinata 12 Bertholletia excels Brazil Tree 13 Brosimum alicastrum Breadnut 14 Guilbourtia spp. Bubinga, African 15 (G. demusei, G. pellegriniana, Rosewood, Kevazingo 16 G. tessmannii) 17 Toona calantas, Cedrela calantas Calantas, Kalantas 18 Priora copaifera Cativo 19 Cedrela odorata, Cedrela fissilis Cedro, Cedar, Spanish cedar, 20 South American cedar 21 Ceiba pentandra Ceiba 22 Antiaris africana Chenchen, Antiaris 23 Couratari guianensis Coco Blanco 24 [Dalbergis] Dalbergia 25 retusa [Concobola] Cocobolo, 26 Granadillo 27 Tabebuia donnell-smithii Copal 28 Daniellia spp. Copal, Daniellia 29 Cordia spp. Cordia, Bocote, Ziricote, Louro 30 Hymenaea courbaril Courbaril, West Indian Locust 31 Dipteryx odorata Cumaru 32 Piptadeniastrum africanum Dahoma, Banzu 33 Calycophyllum candidissimum Degame, Legame Lancewood, 34 Lemonwood 35 Afzelia spp. Doussie, Lingue 36 [Diospyros] Diospyrus spp. Ebony, Macassar 37 ebony, 38 Ceylon ebony 39 Lophira alata Ekki, Azobe, Bangassi, Akoura, 40 Red Ironwood 41 Combretodendron macrocarpum Esia, Essia 42 Cordia goeldiana Freijo, Cordia Wood 43 Chlorophora tinctoria Fustic, Yellow Wood, Tatajuba 44 [Aucoumes] Aucoumea klaineana Gaboon, Okoume 45 Astronium spp. Goncalo Alves, Zebrawood, 46 Tigerwood 47 Ocotea rodiaei Greenheart 48 Enterolobium cyclocarpum Guanacaste, Rain Tree, 49 Elephant Ear 50 Guarea spp. Guarea, Bosse 51 Terminalia ivorensis Idigbo, Framire, Black Afara 52 Phoebe porosa Imbuia, Imbuya, Embuia, 53 Brazilian Walnut 54 Handroanthus spp. Ipe, Brazilian walnut, 55 bethabarra, Pau d'arco, 56 Ironwood, Lapacho 
 S. 7203 5 1 Chlorophors excelsa Iroko 2 Hymenaea courbaril Jatoba, "Brazilian Cherry" 3 Jacaranda copaia Jacaranda 4 Machaerium villosum Jacaranda Pardo 5 Dyera costulata Jelutong 6 Dryobalanops spp. Kapur, Keladan 7 Koompassia malaccensis Kempas, Impas 8 Acacia koa Koa 9 Entandrophragma candollei Kosipo, Omu 10 Pterygota macrocarpa Koto, African Pterygota, Ware 11 Oxandra lanceolate Lancewood 12 Shorea spp. [negrosensis] [Red] Lauan, Luan, 13 Lawaan, Meranti, White 14 meranti, yellow meranti, dark 15 red meranti, light red meranti, 16 Seraya, Tanguile, Bang, 17 Philippine Mahogany 18 [Pentacme contorta] [White Lauan] 19 [Shores ploysprma] [Tanguile] 20 Nothofagus pumilio Lenga 21 Guaiacum officinale Lignum Vitae, Guayacan, 22 Ironwood 23 Terminalia superba Limba, Afara, Ofram 24 [Aniba duckei] Aniba rosedora [Louro] Brazilian 25 rosewood, pau rosa, bois 26 de rose 27 Nectandra spp. Louro Preto 28 [Kyaya ivorensis] Khaya spp. [Africa] African 29 Mahogany 30 [Swletenia macrophylla] [Amer. Mahogany] 31 Swietenia spp. American Mahogany, West Indian 32 Mahogany, Central American 33 Mahogany, Honduran Mahogany, 34 South American Mahogany, 35 Mexican Mahogany, Bigleaf 36 Mahogany, Little Leaf 37 Mahogany, Acajou, Caoba 38 Mogno 39 Tieghemella [leckellii] heckelii [Makora] 40 Makore, 41 Baku 42 Diospyros marmorata Marblewood, Zebrawood 43 Intsia bijuga, Intsia palembanica Merbau, Ipil, Kwila 44 Anisoptera spp. Mersawa, Krabak, Palosapis, 45 Bella Rosa 46 Mora excelsa Mora 47 Distemonanthus benthamianus Movingui, Ayan 48 Terminalia amazonia Nargusta 49 Pterocarpus spp. Narra, Ambyna, Papua New Guinea 50 Rosewood, Red Sanders, Mukula, 51 Kosso, zitan, Hongmu, Pandauk, 52 Vermillion Wood 53 Palaquium spp. Nyatoh, Padang, Pencil Cedar 54 Triplochiton scleroxylon Obeche, Samba 55 Nauclea diderrichii Opepe, Sibo 
 S. 7203 6 1 [Pterocarpus soyauxii] [African Padauk] 2 [Pterocarpus angolensis] [Angola Padauk] 3 Millettia stuhlmannii Panga Panga 4 Balfourodendron riedelianum Pau Marfim 5 Aspidosperma spp. Peroba, Rosa 6 Paratecoma peroba Peroba Branca 7 Dalbergia frutescens, D. tomentosa Pinkwood, Brazilia Tulipwood 8 Tabebuia donnell-smithii Prima Vera, Roble, Durango 9 Peltogyne spp. Purpleheart 10 Gonystylus spp. Ramin 11 Melanorrhoea curtisii Rengas, Borneo Rosewood 12 Nothofagus obliqua Roble 13 Hevea brasiliensis Rubberwood 14 Dalbergia spp. Rosewood, Indian Rosewood, 15 Honduras Rosewood, cocobolo, 16 granadillo 17 Aniba duckei Brazilian Rosewood 18 [Entandrophragm a] Entandrophragma 19 cylindricum [Sapela] Sapele, Sapelli 20 Acanthopanax ricinofolius Sen, Castor Arabia 21 Brosimum aubletti, Piratinera Snakewood, Letterwood, Leopard 22 guianensis Wood 23 [Shores phillippinensis] [Sonora] 24 Juglans spp. (juglans South American Walnut, Peruvian 25 australis, J. neotropica, Walnut, Tropical Walnut 26 J. Olanchana, etc.) 27 Sterculia rhinopetala Sterculia 28 Bagassa guianensis Tatajuba, Bagasse 29 Tectona grandis Teak 30 Lovoa trichilloides Tigerwood 31 Entandrophragma utile Utile, Sipo 32 Virola spp. Virola, Cumala, Banak, Tapsava 33 Milletia laurentii Wenge 34 Pentacme contorta White Lauan 35 Microberlinia [brazzavillensis] Zebrawood, 36 spp. Zebrano, Zingana 37 (ii) No later than January first, two thousand twenty-nine, and at 38 least every three years thereafter, the department of environmental 39 conservation, in consultation with the office of general services, shall 40 through regulations update the list of tropical hardwood species in 41 subparagraph (i) of this paragraph to ensure that such list includes all 42 such species that are currently commonly available for commercial use in 43 the United States, reflecting the most current data on production, 44 trade, and marketing, and to account for any changes in taxonomy, 45 marketing or trade names, market preference, usage, or other factors. 46 Species shall not be removed from the list of examples except for 47 purposes of correcting errors. 48 c. "Tropical [rain] forests" shall mean [any and all forests classi- 49 fied by the scientific term "Tropical moist forests", the classification 50 determined by the equatorial region of the forest and average rainfall] 51 a natural ecosystem within the tropical regions, approximately bounded 52 geographically by the tropics of Cancer and Capricorn, but possibly 53 affected by other factors such as prevailing winds, containing native 54 species composition, structure, and ecological function, with a tree 55 canopy cover of more than ten percent over an area of at least 0.5 
 S. 7203 7 1 hectares. "Tropical forests" shall include all of the following: (i) 2 human-managed tropical forests or partially degraded tropical forests 3 that are regenerating; and (ii) tropical forests identified by multi-ob- 4 jective conservation based assessment methodologies, such as High 5 Conservation Value (HCV) areas, as defined by the HCV Resource Network, 6 or High Carbon Stock forests, as defined by the High Carbon Stock 7 Approach, or by another methodology with equivalent or higher standards 8 that includes primary forests and tropical peatlands of any depth. 9 "Tropical forests" shall not include tree plantations of any type. 10 d. "Tropical hardwood products" shall mean any wood products, whole- 11 sale or retail, in any form, including but not limited to plywood, 12 veneer, furniture, cabinets, paneling, siding, moldings, doors, doors- 13 kins, joinery, flooring or sawnwood, which are composed, in whole or in 14 part, of tropical hardwood [except plywood]. 15 e. "Peat" means a soil that is rich in organic matter composed of 16 partially decomposed plant materials equal to or greater than 40 centi- 17 meters of the top 100 centimeters of the soil. 18 f. "Tropical peatlands" means wetlands within the tropical regions 19 with a layer of peat made up of dead and decaying plant material. Trop- 20 ical peatlands includes moors, bogs, mires, and peat swamp forests. 21 g. "Secondary materials" means any material recovered from or other- 22 wise destined for the waste stream, including, but not limited to, post- 23 consumer material, industrial scrap material and [overstock or] obsolete 24 inventories from distributors, wholesalers and other companies but such 25 term does not include those materials and by-products generated from, 26 and commonly reused within, an original manufacturing process. 27 § 4. Paragraphs a, b, c, and d of subdivision 2 of section 165 of the 28 state finance law, as added by chapter 83 of the laws of 1995, are 29 amended and four new paragraphs e, f, g and h are added to read as 30 follows: 31 a. Except as hereinafter provided, the state and any governmental 32 agency or political subdivision or public benefit corporation of the 33 state shall not purchase or obtain for any purpose any tropical hard- 34 woods or tropical hardwood products, wholesale or retail, in any form, 35 unless such tropical hardwoods or tropical hardwood products are second- 36 ary materials. 37 b. The provisions of paragraph a of this subdivision shall not apply 38 to: 39 (i) [Any hardwoods purchased from a sustained, managed forest; or 40 (ii)] Any binding contractual obligations for purchase of commodities 41 entered into prior to August twenty-fifth, nineteen hundred ninety-one; 42 or 43 [(iii) The purchase of any tropical hardwood or tropical hardwood 44 product for which there is no acceptable non-tropical hardwood species; 45 or 46 (iv) Where the contracting officer finds that no person or entity 47 doing business in the state is capable of providing acceptable non-trop- 48 ical hardwood species sufficient to meet the particular contract 49 requirements; or 50 (v)] (ii) Where the inclusion or application of such provisions will 51 violate or be inconsistent with the terms or conditions of a grant, 52 subvention or contract in an agency of the United States or the 53 instructions of an authorized representative of any such agency with 54 respect to any such grant, subvention or contract[; or 
 S. 7203 8 1 (vi) Where inclusion or application of such provisions results in a 2 substantial cost increase to the state, government agency, political 3 subdivision, public corporation or public benefit corporation]. 4 c. (i) In the case of any bid proposal or solicitation, request for 5 bid or proposal or contract for the construction of any public work, 6 building maintenance or improvement for or on behalf of the state and 7 any governmental agency or political subdivision or public benefit 8 corporation of the state, it shall not require or permit the use of any 9 tropical hardwood or [wood] tropical hardwood product, unless such trop- 10 ical hardwood or tropical hardwood product is a secondary material. 11 (ii) Every bid proposal, solicitation, request for bid or proposal and 12 contract for the construction of any public work, building maintenance 13 or improvement shall contain a statement that any bid, proposal or other 14 response to a solicitation for bid or proposal which proposes or calls 15 for the use of any tropical hardwood or [wood] tropical hardwood product 16 in performance of the contract shall be deemed non-responsive, unless 17 such tropical hardwood or tropical hardwood product is a secondary mate- 18 rial. 19 d. The provisions of paragraph c of this subdivision shall not apply: 20 (i) To bid packages advertised and made available to the public or any 21 competitive and sealed bids received or entered into prior to August 22 twenty-fifth, nineteen hundred ninety-one; or 23 (ii) To any amendment, modification or renewal of a contract, which 24 contract was entered into prior to August twenty-fifth, nineteen hundred 25 ninety-one, where such application would delay timely completion of a 26 project or involve an increase in the total monies to be paid under that 27 contract; or 28 (iii) Where the contracting officer finds that[: 29 (A) No person or entity doing business in the state is capable of 30 performing the contract using acceptable non-tropical hardwood species; 31 or 32 (B) The] the inclusion or application of such provisions will violate 33 or be inconsistent with the terms or conditions of a grant, subvention 34 or contract with an agency of the United States or the instructions of 35 an authorized representative of any such agency with respect to any such 36 grant, subvention or contract[; or 37 (C) The use of tropical woods is deemed necessary for purposes of 38 historical restoration and there exists no available acceptable non- 39 tropical wood species]. 40 e. The use of any tropical hardwood or tropical hardwood product as 41 part of the construction, renovation, maintenance, or installation of 42 any public work, building or other structure, or improvement on lands 43 owned or managed by the state or any governmental agency or political 44 subdivision or public benefit corporation of the state shall be prohib- 45 ited, except where such prohibition would violate or be inconsistent 46 with the terms and conditions of a grant, subvention or contract with an 47 agency of the United States or the instructions of an authorized repre- 48 sentative of any such agency with respect to any such grant, subvention, 49 or contract. 50 f. (i) Until January first, two thousand thirty-one, the provisions of 51 paragraphs a, c, and e of this subdivision shall not apply to the use of 52 ekki wood by the metropolitan transportation authority for the purpose 53 of railroad ties in the New York city transit system, provided that the 54 metropolitan transportation authority shall, no later than October 55 first, two thousand twenty-six, after providing notice and an opportu- 56 nity for public comment, develop and issue an ekki transition plan 
 S. 7203 9 1 outlining the steps the authority will take to minimize to the greatest 2 extent possible, and eventually phase out, the use of ekki wood, and 3 provided further that until such phase out has been completed, such 4 agency shall use, to the greatest extent possible, only secondary mate- 5 rials when the use of ekki wood is specified and unavoidable. Such plan 6 shall be made publicly available on the authority's website. No later 7 than October first, two thousand twenty-seven, and annually thereafter 8 until the expiration of this paragraph, the authority shall issue a 9 public report outlining its progress toward achieving such plan. 10 (ii) If, on or after April first, two thousand thirty, the director of 11 the budget issues a determination, after providing notice and an oppor- 12 tunity for public comment, that the authority has made significant 13 progress in phasing out the use of ekki wood, but that a full phase out 14 has been delayed due to technical or safety considerations, the 15 provisions of subparagraph (i) of this paragraph may be extended until 16 December thirty-first of the subsequent calendar year. Such determi- 17 nation may be made annually thereafter, on or after April first of 18 subsequent years, provided that under no circumstances shall the 19 provisions of this paragraph extend beyond January first, two thousand 20 thirty-six. 21 g. (i) Until January first, two thousand thirty-four, the provisions 22 of paragraphs a, c, and e of this subdivision shall not apply to the use 23 of greenheart wood by a ferry service directly owned and operated by an 24 agency of a city of one million or more, provided that such agency 25 shall, no later than October first, two thousand twenty-six, after 26 providing notice and an opportunity for public comment, develop and 27 issue a greenheart transition plan outlining the steps such agency will 28 take to minimize to the greatest extent possible, and eventually phase 29 out, the use of greenheart wood, and provided further that until such 30 phase out has been completed, such agency shall use, to the greatest 31 extent possible, only secondary materials when the use of greenheart 32 wood is specified and unavoidable. Such plan shall be made publicly 33 available on the agency's website. No later than October first, two 34 thousand twenty-seven, and annually thereafter until the expiration of 35 this paragraph, the agency shall issue a public report outlining its 36 progress toward achieving such plan. 37 (ii) If, on or after April first, two thousand thirty-three, the 38 director of the budget issues a determination, after providing notice 39 and an opportunity for public comment, that such agency has made signif- 40 icant progress in phasing out the use of greenheart wood, but that a 41 full phase out has been delayed due to technical or safety consider- 42 ations, the provisions of subparagraph (i) of this paragraph may be 43 extended until December thirty-first of the subsequent calendar year. 44 Such determination may be made annually thereafter, on or after April 45 first of subsequent years, provided that under no circumstances shall 46 the provisions of this paragraph extend beyond January first, two thou- 47 sand thirty-nine. 48 h. (i) Until January first, two thousand thirty-four, the provisions 49 of paragraphs a, c, and e of this subdivision shall not apply to the use 50 of greenheart wood on bridges managed by the department of transporta- 51 tion of a city of one million or more, provided that such department 52 shall, no later than October first, two thousand twenty-six, after 53 providing notice and an opportunity for public comment, develop and 54 issue a greenheart transition plan outlining the steps such department 55 will take to minimize to the greatest extent possible, and eventually 56 phase out, the use of greenheart wood, and provided further that until 
 S. 7203 10 1 such phase out has been completed, such department shall use, to the 2 greatest extent possible, only secondary materials when the use of 3 greenheart wood is specified and unavoidable. Such plan shall be made 4 publicly available on the department's website. No later than October 5 first, two thousand twenty-seven, and annually thereafter until the 6 expiration of this paragraph, the department shall issue a public report 7 outlining its progress toward achieving such plan. 8 (ii) If, on or after April first, two thousand thirty-three, the 9 director of the budget issues a determination, after providing notice 10 and an opportunity for public comment, that such department has made 11 significant progress in phasing out the use of greenheart wood, but that 12 a full phase out has been delayed due to technical or safety consider- 13 ations, the provisions of subparagraph (i) of this paragraph may be 14 extended until December thirty-first of the subsequent calendar year. 15 Such determination may be made annually thereafter, on or after April 16 first of subsequent years, provided that under no circumstances shall 17 the provisions of this paragraph extend beyond January first, two thou- 18 sand thirty-nine. 19 § 5. Section 165 of the state finance law is amended by adding a new 20 subdivision 10 to read as follows: 21 10. Tropical deforestation-free procurement. a. For purposes of this 22 subdivision, the following definitions shall apply: 23 (i) "Contractor" means any person or entity that has a contract with a 24 state agency or state authority for public works or improvements to be 25 performed, for a franchise, concession or lease of property, for grant 26 monies or goods and services or supplies to be purchased at the expense 27 of the agency or authority or to be paid out of monies deposited in the 28 treasury or out of trust monies under the control or collected by the 29 agency or authority. 30 (ii) "Tropical forest-risk commodity" means any commodity and its 31 derived products, including agricultural and non-agricultural commod- 32 ities but excluding tropical hardwood and tropical hardwood products 33 covered by subdivisions one and two of this section, whether in raw or 34 processed form, that is commonly extracted from, or grown, derived, 35 harvested, reared, or produced on land where tropical deforestation or 36 tropical forest degradation has occurred or is likely to occur. Tropical 37 forest-risk commodities include palm oil, beef, coffee, cocoa, wood 38 pulp, paper and any additional commodities defined by the commissioner 39 pursuant to subparagraph (i) of paragraph g of this subdivision, but do 40 not include recovered fiber. 41 (iii) "Covered tropical forest-risk product type" means any product 42 type listed by the department of environmental conservation pursuant to 43 subparagraph (ii) of paragraph g of this subdivision. 44 (iv) "Free, prior, and informed consent" means the principle that a 45 community has the right to give or withhold its consent to proposed 46 developments that may affect the land and waters it legally or customar- 47 ily owns, occupies, or otherwise uses, as described in the United 48 Nations Declaration on the Rights of Indigenous Peoples, the Indigenous 49 and Tribal Peoples Convention of 1989, also known as the International 50 Labor Organization Convention 169, and other international instruments. 51 "Free, prior, and informed consent" means informed, noncoercive negoti- 52 ations between investors, companies, or governments, and indigenous 53 peoples and local communities, prior to project development. 54 (v) "Large contractor" means any contractor whose annual revenue, or 55 that of their parent company, is equal to or greater than one hundred 56 million dollars. 
 S. 7203 11 1 (vi) "Recovered Fiber" means postconsumer fiber such as paper, paper- 2 board, and fibrous materials from retail stores, office buildings, 3 homes, and so forth, after having passed through their end usage, 4 including used corrugated boxes, old newspapers, old magazines, mixed 5 waste paper, tabulating cards, and used cordage, and all paper, paper- 6 board, and fibrous materials that enter and are collected from municipal 7 solid waste; and manufacturing wastes such as dry paper and paperboard 8 waste generated after completion of the papermaking process, including 9 envelope cuttings, bindery trimmings, and other paper and paperboard 10 waste resulting from printing, cutting, forming, and other converting 11 operations, bag, box, and carton manufacturing wastes, and butt rolls, 12 mill wrappers, and rejected unused stock, and repulped finished paper 13 and paperboard from obsolete inventories of paper and paperboard 14 manufacturers, merchants, wholesalers, dealers, printers, converters, 15 and others. 16 (vii) "Tree plantation" means an area of land predominantly composed 17 of trees established through planting and/or deliberate seeding, usually 18 by planting one or two species, for the purpose of producing and 19 harvesting a particular commodity. Tree plantation does not include 20 forest planted for ecosystem restoration. 21 (viii) "Tropical deforestation" means direct human-induced conversion 22 of tropical forest to agriculture, a tree plantation, or other non-for- 23 est land use. 24 (ix) "Tropical forest degradation" means direct human-induced severe 25 and sustained degradation of a tropical forest resulting in significant 26 forest loss and/or a profound change in species composition, structure, 27 or ecological function of that forest. 28 (x) "New York state products" means products that are grown, 29 harvested, or produced in this state, or processed inside or outside 30 this state comprising over fifty-one percent raw materials grown, 31 harvested, or produced in this state, by weight or volume. 32 (xi) "Small business" means small business as defined in section one 33 hundred thirty-one of the economic development law. 34 (xii) "Medium-sized business" shall mean a business that is resident 35 in this state, independently owned and operated, not dominant in its 36 field, and employs between one hundred and five hundred persons. 37 (xiii) "Minority-owned business enterprise" shall have the same mean- 38 ing as in article fifteen-A of the executive law. 39 (xiv) "Women-owned business enterprise" shall have the same meaning as 40 in article fifteen-A of the executive law. 41 b. (i) Every contract entered into by a state agency or authority that 42 includes the procurement of any covered tropical forest-risk product 43 type shall require that the contractor certify, after completing neces- 44 sary due diligence measures as determined by the commissioner of the 45 department of environmental conservation pursuant to paragraph g of this 46 subdivision, that, to the best of the contractor's knowledge, the 47 products furnished to the state pursuant to the contract do not contain 48 any tropical forest-risk commodities that were extracted from, grown, 49 derived, harvested, reared, or produced on land where tropical defores- 50 tation or tropical forest degradation occurred on or after January 51 first, two thousand twenty-three. The contractor shall agree to comply 52 with this provision of the contract. 53 (ii) The contract shall specify that the contractor is required to 54 cooperate fully in providing reasonable access to the contractor's 55 records, documents, agents, employees, or premises if reasonably 56 required by authorized officials of the contracting agency or authority, 
 S. 7203 12 1 the office of general services, the office of the attorney general, or 2 the department of environmental conservation, to determine the contrac- 3 tor's compliance with the requirements of this paragraph. 4 (iii) Contractors shall exercise due diligence in ensuring that their 5 subcontractors comply with the requirements of this paragraph. Contrac- 6 tors shall require each subcontractor to certify that the subcontractor 7 is in compliance with the requirements of this paragraph. 8 (iv) In addition to the requirements of subparagraphs (i), (ii) and 9 (iii) of this paragraph, large contractors subject to this paragraph 10 must certify that they have adopted a tropical forest policy that 11 complies with regulations issued pursuant to subparagraph (vi) of para- 12 graph g of this subdivision. Such tropical forest policy and data docu- 13 menting implementation shall be made publicly available and updated 14 annually, and shall include, at a minimum: 15 A. Procedures for identifying and mitigating the risk of tropical 16 deforestation and tropical forest degradation in tropical forest-risk 17 commodity supply chains. 18 B. Procedures to ensure respect for nationally and internationally 19 recognized rights of indigenous peoples and local communities, including 20 the principle of free, prior and informed consent, the rights and safety 21 of local environmental and human rights defenders, the rights of work- 22 ers, and compliance with source country laws, in tropical forest-risk 23 commodity supply chains. 24 (v) The provisions of this paragraph shall not apply to primary, 25 secondary, or tertiary packaging used for the purpose of containment, 26 protection, handling, delivery, transport, distribution, or presentation 27 of a covered tropical forest-risk product type. 28 (vi) The provisions of this paragraph shall not apply when the inclu- 29 sion or application of such provisions will violate or be inconsistent 30 with the terms or conditions of a grant, subvention or contract with an 31 agency of the United States or the instructions of an authorized repre- 32 sentative of any such agency with respect to any such grant, subvention 33 or contract. 34 (vii) The provisions of this paragraph shall not apply if the head of 35 the contracting state agency or authority issuing a solicitation for 36 covered tropical forest-risk product types issues a determination, after 37 providing notice and an opportunity for public comment, with the 38 approval of the director of the budget, that upon the closing of such 39 solicitation such provisions have resulted in the failure to receive any 40 offers in response to such solicitation and that there is no alternative 41 product available that is able to meet the generally accepted standard 42 performance requirements for the specified application within such 43 solicitation. Such determination shall explain in detail the necessity 44 of such exemption for each specified application, including a list of 45 all available alternative products considered and an explanation as to 46 why each product does not meet the relevant generally accepted perform- 47 ance requirements. Such determination shall be made publicly available, 48 in writing, on the website of the office of general services and the 49 relevant agency or authority. If the head of the contracting state agen- 50 cy or authority has not issued such a determination for three consec- 51 utive years, then the power of the head of the contracting state agency 52 or authority to issue such a determination shall be deemed expired, and 53 any subsequent determination shall be null and void. 54 (viii) The provisions of this paragraph shall not apply to a central- 55 ized contract developed by the office of general services if, during the 56 process of developing such centralized contract, the commissioner of 
 S. 7203 13 1 general services issues a determination, after providing notice and an 2 opportunity for public comment, with the approval of the director of the 3 budget, that incorporating the provisions of this paragraph will result 4 in a failure to receive any bids in response to a solicitation for such 5 centralized contract, and that there is no alternative product available 6 that is able to meet the generally accepted standard performance 7 requirements for the specified application within such contract. Such 8 determination shall explain in detail the necessity of such exemption 9 for each specified application, including a list of all available alter- 10 native products considered and an explanation as to why each product 11 does not meet the relevant generally accepted performance requirements. 12 Such determination shall be made publicly available, in writing, on the 13 website of the office of general services. If such a determination is 14 issued in regards to a centralized contract, such contract shall have a 15 term of no more than three years. 16 (ix) Until January first, two thousand thirty-two, the provisions of 17 this paragraph shall only apply to contracts with a total value greater 18 than or equal to one million dollars, or to contractors whose annual 19 revenue, or that of their parent company, is greater than or equal to 20 ten million dollars. 21 c. (i) If it is determined that any contractor contracting with the 22 state knew or should have known that a covered forest-risk product type 23 was furnished to the state in violation of this subdivision, the 24 contracting agency or authority shall issue a written notice of 25 violation and provide an opportunity for such contractor to come into 26 compliance. If, after such notice, a contractor fails to come into 27 compliance within a timeframe established by the commissioner of the 28 department of environmental conservation, such contractor may, subject 29 to subparagraph (ii) of this paragraph, have either or both of the 30 following sanctions imposed: 31 A. The contract under which the violation occurred may be voided at 32 the option of the contracting agency or authority. 33 B. The contractor may be assessed a penalty that shall be the greater 34 of one thousand dollars or an amount equaling twenty percent of the 35 value of the product that the state agency or authority demonstrates was 36 furnished in violation of this subdivision. A hearing or opportunity to 37 be heard shall be provided prior to the assessment of any penalty. 38 (ii) Notwithstanding subparagraph (i) of this paragraph, a contractor 39 that has complied with the provisions of subparagraph (iii) of paragraph 40 b of this subdivision shall not be subject to sanctions for violations, 41 of which the contractor had no knowledge, of the requirements of this 42 subdivision that were committed solely by a subcontractor. Sanctions 43 described under subparagraph (i) of this paragraph shall instead be 44 imposed against the subcontractor that committed the violation. 45 d. (i) Any state agency or authority that investigates a complaint 46 against a contractor or subcontractor for violation of this subdivision 47 may limit its investigation to evaluating the information provided by 48 the person or entity submitting the complaint and the information 49 provided by the contractor or subcontractor. 50 (ii) Whenever a contracting officer of the contracting agency or 51 authority has reason to believe that the contractor failed to comply 52 with paragraph b of this subdivision, the agency or authority shall 53 refer the matter for investigation to the head of the agency or authori- 54 ty and, as the head of the agency or authority determines appropriate, 55 to either the office of the attorney general or the department of envi- 56 ronmental conservation. 
 S. 7203 14 1 e. (i) When a state agency or authority's contract for the purchase of 2 a commodity or product covered by this subdivision is to be awarded to 3 the lowest responsible bidder, an otherwise qualified bidder who is a 4 small or medium-sized business or a minority or women-owned business 5 enterprise, or who will fulfill the contract through the use of New York 6 state products, may be given preference over other bidders, provided 7 that the cost included in the bid is not more than ten percent greater 8 than the cost included in a bid that is not from a small or medium-sized 9 business or a minority or women-owned business enterprise or fulfilled 10 through the use of New York state products. 11 (ii) The provisions of this paragraph shall not apply if the head of 12 the contracting state agency or authority purchasing such products, in 13 such head of such state agency's sole discretion, determines that giving 14 preference to bidders pursuant to the provisions of this paragraph 15 would: 16 (a) be against the public interest; 17 (b) increase the cost of the contract by an unreasonable amount; or 18 (c) New York state products cannot be obtained in sufficient and 19 reasonable available quantities and of satisfactory quality to meet the 20 contracting state agency or authority's requirements. 21 (iii) Nothing in this paragraph shall be construed to conflict with or 22 otherwise limit the goals and requirements set forth by section one 23 hundred sixty-two of this article, article fifteen-A of the executive 24 law, or article three of the veterans' services law. 25 f. Prior to issuing regulations pursuant to paragraph g of this subdi- 26 vision, the commissioner of the department of environmental conservation 27 shall convene four meetings with relevant stakeholders, including but 28 not limited to: 29 (i) representatives of current or former state contractors dealing in 30 products containing each of the tropical forest-risk commodities speci- 31 fied in subparagraph (ii) of paragraph a of this subdivision, with an 32 emphasis on small and medium-sized businesses; 33 (ii) representatives not affiliated with covered industries with rele- 34 vant expertise in supply chain traceability, tropical forest sustaina- 35 bility, biodiversity, climate science, human and labor rights, and 36 indigenous rights; and 37 (iii) representatives from indigenous communities within the geograph- 38 ic areas containing tropical forests covered by this subdivision. 39 g. On or before July first, two thousand twenty-seven, the commission- 40 er of the department of environmental conservation shall adopt regu- 41 lations for the implementation of this subdivision. Such regulations 42 shall be developed in consultation with the commissioner of the office 43 of general services. Such regulations shall include, but not be limited 44 to, all of the following: 45 (i) A list of tropical forest-risk commodities subject to the require- 46 ments of this subdivision, including, but not limited to, palm oil, 47 beef, coffee, cocoa, wood pulp and paper. The list shall be reviewed and 48 updated at least every three years. When evaluating inclusion of addi- 49 tional commodities in the list, the commissioner of the department of 50 environmental conservation shall consider the impact of the commodity as 51 a driver of tropical deforestation or tropical forest degradation, the 52 state of existing supply chain transparency and traceability systems for 53 the commodity, the volume or quantity of products comprised wholly or in 54 part of the commodity that are regularly purchased by state agencies or 55 authorities, and the feasibility of including the commodity in the 56 requirements of this subdivision. The first review shall include, but 
 S. 7203 15 1 not be limited to, evaluation of soy, rubber, bananas, avocados, sugar- 2 cane, leather and other cattle-derived products, and mining products. 3 Following a review of the list of tropical forest-risk commodities, the 4 commissioner shall issue a report to the governor, the temporary presi- 5 dent of the senate, and the speaker of the assembly, outlining the 6 reasons for the inclusion or non-inclusion of any reviewed commodities. 7 (ii) A list of covered tropical forest-risk product types comprised 8 wholly or in part of tropical forest-risk commodities. Such list shall 9 be updated no less frequently than every three years. In developing such 10 list, the department shall consider: 11 A. The state of existing supply chain traceability and transparency 12 systems for the product type. 13 B. The volume, quantity, or monetary value of such product type regu- 14 larly procured by state agencies or authorities, with priority given to 15 product types procured in high volumes or quantities or with high mone- 16 tary value. 17 C. The relative complexity of identifying the presence of tropical 18 forest-risk commodities in the product type. 19 D. The proportion of the product type comprised of tropical forest- 20 risk commodities. 21 E. The availability of substitute products produced using commodities 22 sourced from New York State or within the United States. 23 F. Maximizing the deforestation-reduction impact of the policy estab- 24 lished pursuant to this subdivision while limiting the administrative 25 burden of implementation, including consideration of a phased-in 26 approach to implementation with the goal of covering all product types 27 regularly procured by state agencies or authorities containing more than 28 de minimus amounts of tropical forest-risk commodities or their deriva- 29 tives no later than January first, two thousand thirty-two. For food 30 products, more than de minimus amounts shall include components listed 31 as an ingredient. 32 (iii) Specific supply chain due diligence measures based on interna- 33 tional best practices that contractors must perform before making the 34 certification required by this subdivision. For any products comprised 35 wholly or in part of tropical forest-risk commodities that were 36 extracted from, grown, harvested, or reared on land in a country or 37 countries that do not contain tropical forests, a contractor shall only 38 be required to demonstrate that such commodities originated in such 39 country or countries. If information, documents, and data that meet the 40 requirements of the due diligence measures established pursuant to this 41 subparagraph have been produced by a supplier from whom the contractor 42 has been supplied covered products, and have been provided to the 43 contractor or made publicly available, such information, documents, and 44 data may constitute sufficient due diligence on the part of the contrac- 45 tor to comply with this paragraph. 46 (iv) A process for developing, with an opportunity for public input, 47 list of favored suppliers of tropical forest-risk commodities and 48 products derived therefrom whose products have been determined to meet 49 the requirements of this subdivision, and a process through which 50 suppliers may apply for inclusion on such list. Such list shall be made 51 publicly available no later than one hundred eighty days after the 52 adoption of regulations pursuant to this paragraph, and shall be updated 53 not less than annually. 54 (v) The full set of requirements for a large contractor's tropical 55 forest policy pursuant to subparagraph (iv) of paragraph b of this 56 subdivision. 
 S. 7203 16 1 (vi) The process through which contractors shall certify to the 2 department of environmental conservation that they are in compliance 3 with paragraph b of this subdivision. 4 (vii) A process for ensuring that details of certifications are made 5 available for public inspection on the website of the department of 6 environmental conservation. 7 (viii) An easily accessible procedure to receive public complaints and 8 information regarding violations of this subdivision. 9 h. The certification requirements set forth in this subdivision shall 10 not apply to a credit card purchase of goods of fifteen thousand dollars 11 or less. 12 i. This subdivision shall apply to all contracts entered into, 13 extended, or renewed on or after January first, two thousand twenty- 14 eight. 15 j. Commencing two years after the effective date of this subdivision 16 and biennially thereafter, the commissioner of the department of envi- 17 ronmental conservation shall issue a report to the governor, the tempo- 18 rary president of the senate, and the speaker of the assembly, on the 19 implementation of this subdivision and subdivisions one and two of this 20 section. 21 § 6. The economic development law is amended by adding a new article 22 28 to read as follows: 23 ARTICLE 28 24 SUPPLY CHAIN TRANSPARENCY ASSISTANCE PROGRAM 25 Section 500. Definitions. 26 501. The supply chain transparency assistance program. 27 § 500. Definitions. For purposes of this article: 28 1. "Small business" means a small business as defined in section one 29 hundred thirty-one of this chapter. 30 2. "Medium-sized business" shall mean a business that is resident in 31 this state, independently owned and operated, not dominant in its field, 32 and employs between one hundred and five hundred persons. 33 3. "Eligible business" shall mean any small and medium-sized business 34 as defined in this article, and any minority or women-owned business 35 enterprise as defined in article fifteen-A of the executive law. 36 4. "Supply chain" shall mean a system of extraction, production, 37 transportation, and distribution involving multiple processes, organiza- 38 tions, individuals, and resources, beginning with raw materials and 39 culminating in the delivery of a product or service to a consumer. 40 § 501. The supply chain transparency assistance program. 1. The 41 department is hereby authorized and directed, within one year of the 42 effective date of this article, to establish, develop, implement, and 43 maintain, within available appropriations, a supply chain transparency 44 assistance program to assist small and medium-sized businesses and 45 minority and women-owned businesses in achieving supply chains that are: 46 (a) Transparent, meaning a supply chain for which sufficient informa- 47 tion has been disclosed regarding all relevant units of production from 48 the raw material stage to the delivery of a product or service to a 49 consumer, including, but not limited to, extraction sites, suppliers, 50 manufacturers, transporters, wholesalers, and retailers, to allow 51 consumers to determine whether the supply chain is ethical and sustaina- 52 ble. 53 (b) Traceable, meaning a supply chain for which distributors, retail- 54 ers, and other businesses down the supply chain are able to gather 55 sufficient and relevant information regarding all units of production 
 S. 7203 17 1 further up the supply chain to determine whether a supply chain is 2 ethical and sustainable. 3 (c) Ethical, meaning a supply chain that upholds the human rights and 4 all other legal rights, supports the well-being, and prevents the 5 exploitation, of workers and communities, and guarantees the free, 6 prior, and informed consent, land, and other legal rights of affected 7 indigenous peoples and other local and traditional communities. 8 (d) Sustainable, meaning a supply chain that takes all necessary meas- 9 ures to avoid, minimize, and reduce degradation of natural environmental 10 systems, and maximizes efforts to contribute to the restoration and 11 regeneration of impacted ecosystems. 12 2. The purpose of such program shall be to: 13 (a) Develop and share best practices and provide technical assistance 14 to help participating eligible businesses develop and implement stand- 15 ards, plans, and benchmarks for transparency and traceability, environ- 16 mental sustainability, and ethical practices throughout their supply 17 chains. 18 (b) Assist participating eligible businesses with compliance with 19 supply chain related regulations, procurement standards, or contracting 20 requirements. 21 (c) Identify funding streams, grant monies, financial assistance and 22 other resources that may be available to help participating eligible 23 businesses achieve transparent, traceable, ethical, and sustainable 24 supply chains. 25 (d) Help participating eligible businesses with marketing, communi- 26 cation, and other activities to achieve maximum competitive advantage 27 from their transparent, traceable, ethical, and sustainable supply 28 chains. 29 (e) Conduct market analysis to identify opportunities for participat- 30 ing eligible businesses to access new markets and increase competitive- 31 ness through achieving transparent, traceable, ethical, and sustainable 32 supply chains. 33 (f) Conduct outreach to promote awareness of the program among eligi- 34 ble businesses, business organizations, and regional and local economic 35 development agencies. 36 § 7. This act shall take effect on the ninetieth day after it shall 37 have become a law and shall apply to all contracts and binding contrac- 38 tual obligations entered into on and after such effective date.