Bill Text: NY A04333 | 2023-2024 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Requires fashion sellers to be accountable to standardized environmental due diligence policies; establishes a fashion remediation fund.

Spectrum: Moderate Partisan Bill (Democrat 62-7)

Status: (Introduced) 2024-06-06 - reported referred to rules [A04333 Detail]

Download: New_York-2023-A04333-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         4333--A

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    February 14, 2023
                                       ___________

        Introduced  by  M. of A. KELLES, EPSTEIN, SIMON, HEVESI, GONZALEZ-ROJAS,
          FORREST, BURGOS, WEPRIN,  REYES,  FAHY,  STECK,  SEAWRIGHT,  MITAYNES,
          GALLAGHER, RAGA, SIMONE, SHRESTHA, CUNNINGHAM, BORES, OTIS, LEVENBERG,
          CARROLL,  THIELE,  STERN, L. ROSENTHAL, RAJKUMAR, KIM, GUNTHER, ANDER-
          SON, GLICK, LUNSFORD, BARRETT, SHIMSKY, MAMDANI,  DINOWITZ,  SANTABAR-
          BARA,  JACOBSON,  TAYLOR,  CLARK,  PAULIN,  BICHOTTE HERMELYN, LAVINE,
          SLATER, EACHUS,  DE LOS SANTOS,  ARDILA,  SILLITTI,  SOLAGES,  CONRAD,
          CRUZ,  BENEDETTO,  JACKSON,  PRETLOW,  TAPIA,  STIRPE, MEEKS, LUPARDO,
          McMAHON, LEE -- read once and referred to the  Committee  on  Consumer
          Affairs  and Protection -- 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 and  social  standards;
          and  to  amend  the  state  finance law, in relation to establishing a
          fashion remediation fund

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Short  title. This act shall be known and may be cited as
     2  the "Fashion sustainability and social 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  sustainability and social accountability act.  1.
     6  Definitions. As used in this section, the following terms shall have the
     7  following 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.
                                                                   LBD03469-04-3

        A. 4333--A                          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 human rights  and  the
    51  environment  in  their  own  operations  and  in  their supply chain, in
    52  compliance with, at a minimum, the standards outlined in the most recent
    53  Organisation for Economic Co-operation and  Development  Guidelines  for
    54  Multinational Enterprises, and the most recent Organisation for Economic
    55  Co-operation  and  Development  Due  Diligence  Guidance for Responsible
    56  Supply Chains in the Garment and Footwear Sector.

        A. 4333--A                          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) "Labor organizations" means any labor union or any organization of
    49  any  kind,  or  any agency or employee representation committee, associ-
    50  ation, group or plan, in which employees participate  and  which  exists
    51  for the purpose, in whole or in part, of dealing with employers concern-
    52  ing grievances, labor disputes, wages, rates of pay, hours of employment
    53  or conditions of work.
    54    (o) "Employee" shall mean all workers, whether full-time or part-time,
    55  permanent or fixed-term, directly contracted or hired indirectly through
    56  an agency or other intermediary.

        A. 4333--A                          4

     1    2. Due Diligence. (a) Every fashion seller shall effectively carry out
     2  human  rights  and environmental due diligence for the portions of their
     3  business related to wearing apparel, footwear or fashion bags, including
     4  wearing apparel, footwear or fashion bags produced as a  private  label,
     5  which shall include:
     6    (i) supply chain mapping:
     7    (1) companies taking a risk-based approach and implementing good faith
     8  efforts   to  map  suppliers  across  tier  one  through  tier  four  of
     9  production.  Tier one suppliers shall be mapped within twelve months  of
    10  the  effective  date  of  this  section,  and  shall contain one hundred
    11  percent of suppliers by volume. Tier two suppliers shall be mapped with-
    12  in two years of the effective date of this section, and shall contain  a
    13  minimum  of  seventy-five percent of suppliers by volume. Tier three and
    14  tier four suppliers shall be mapped within three years of the  effective
    15  date  of  this  section  and shall contain a minimum of fifty percent of
    16  suppliers by volume or dollar value.
    17    (2) supplier disclosure for all tiers shall include the name, address,
    18  parent company, product type and number of workers at each site by coun-
    19  try;
    20    (3) for tier one suppliers, fashion sellers shall report, at  a  mini-
    21  mum,  the  following information to the attorney general, which shall be
    22  independently verified no less than once every two years:
    23    (A) the mean wages of workers, and how this compares with local  mini-
    24  mum wage and living wages;
    25    (B) the percentage of unionized factories; and
    26    (C)  hours worked weekly by month and the hours and frequency of over-
    27  time by firm and country.
    28    (ii) in carrying out effective due diligence, fashion sellers shall be
    29  in compliance with the Organisation for Economic Co-operation and Devel-
    30  opment Guidelines for Multinational Enterprises and the Organisation for
    31  Economic Co-operation and Development Due Diligence Guidance for Respon-
    32  sible Supply Chains in the Garment and Footwear Sector, requiring  fash-
    33  ion sellers to, at a minimum:
    34    (1) embed responsible business conduct into the company's policies and
    35  management systems;
    36    (2)  identify  areas  of  significant risks in the contexts of its own
    37  activities and business and supply chain relationships;
    38    (3) identify, prioritize, and assess  the  significant  potential  and
    39  actual adverse impacts of those risks;
    40    (4)  cease,  prevent  or mitigate those risks. This shall include, but
    41  not be limited to:
    42    (A) non-compliance shall include employees of tier one garment suppli-
    43  ers not receiving their due wages and other monetary benefits.  For  the
    44  purposes of this section, wages shall be inclusive of all monies owed in
    45  accordance  with the law of the country of manufacture, including wages,
    46  overtime wages, paid leave, incentives, bonuses, severance and any other
    47  form of payment or compensation.  For  the  purposes  of  this  section,
    48  employees  shall  include  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    (B) incentivizing improved supplier performance on workers' rights and
    52  environmental impact by embedding responsible  purchasing  practices  in
    53  its  supply chain relationships and contracts, including but not limited
    54  to contract renewals, longer term contracts, price  premiums,  providing
    55  reasonable  assistance  to  suppliers  so  that they can meet applicable
    56  human rights and environmental standards including but  not  limited  to

        A. 4333--A                          5

     1  meeting  the  carbon emission reduction targets set out in this section,
     2  and developing pricing models that account for the cost of wages,  bene-
     3  fits,  and  investments  in  suitable work, specifically as reflected in
     4  freight  on  board  prices  together  with traditional pricing consider-
     5  ations, such as quantities being purchased, cost of materials, and skill
     6  requirements. Wages, benefits, and investments shall, at a  minimum,  be
     7  in  line  with  the  requirements set out in local labor laws, including
     8  minimum wage laws;
     9    (C) utilizing responsible exit or disengagement strategies;
    10    (D) consulting and engaging with  impacted  and  potentially  impacted
    11  stakeholders and rights holders and their representatives;
    12    (E) establishing quantitative baseline and reduction targets on green-
    13  house  gas  emissions.  Greenhouse  gas  emissions  inventory  shall  be
    14  reported  annually,  include  absolute  figures  and  conform  with  the
    15  accounting  and reporting requirements of the most recent Greenhouse Gas
    16  Protocol Corporate Accounting and Reporting Standard,  Scope  Two  Guid-
    17  ance,  and  the most recent Corporate Value Chain Scope Three accounting
    18  and reporting standard promulgated by the World Resources Institute  and
    19  the  World  Business Council for Sustainable Development. Greenhouse gas
    20  emissions inventory reported in the due diligence  report  described  in
    21  subdivision  three  of  this  section shall be independently verified no
    22  less than once every two years. Within four years of the effective  date
    23  of this section, primary data shall be used to capture tier two and tier
    24  three inventory of the most significant suppliers contributing to green-
    25  house gas emissions.  Significant suppliers shall mean suppliers repres-
    26  enting  seventy-five  percent  of fabric by volume in tier two and fifty
    27  percent of fabric by volume  in  tier  three.  Greenhouse  gas  emission
    28  reduction  targets must be near-term and long-term, covering scopes one,
    29  two and three emissions, and align with, at  a  minimum,  Science  Based
    30  Targets  initiative's  most recent target validation criteria as promul-
    31  gated by World Resources Institute, CDP, United Nations  Global  Compact
    32  and  the  World  Wildlife  Fund. For fashion sellers with global revenue
    33  over one billion dollars, the Absolute Contraction Approach must be used
    34  to calculate scope three emissions. Fashion sellers shall  meet  targets
    35  and  report  their  compliance on an annual basis in their due diligence
    36  report, as described in subdivision three of this section. If  found  to
    37  be  out  of  compliance,  fashion  sellers shall have eighteen months to
    38  remedy their emissions and return to the necessary reduction pathway  to
    39  deliver on their targets. In non-target years, non-compliance shall mean
    40  an increase in absolute emissions in three consecutive years, for compa-
    41  nies  over a billion dollars in revenue. In target years, non-compliance
    42  shall mean not reaching the target.
    43    (F) in compliance with, at a minimum, the Zero Discharge of  Hazardous
    44  Chemicals  Program's  most recent wastewater guidelines, fashion sellers
    45  shall be required, for all significant tier two  dyeing,  finishing  and
    46  garment  washing  suppliers, to sample and report on wastewater chemical
    47  concentrations and water usage, within two years of the  effective  date
    48  of  this  section. Such reports shall be independently verified. Fashion
    49  sellers shall also provide corrective action plans for their  wastewater
    50  treatment  within  thirty  months of the effective date of this section.
    51  After three years of the effective date of this section, fashion sellers
    52  shall be considered out of compliance  if  their  significant  tier  two
    53  dyeing,  finishing and garment suppliers have not made adequate progress
    54  in remediation of  wastewater  pollution  concentrations.    Significant
    55  suppliers  shall  mean  suppliers  representing  seventy-five percent of
    56  fabric by volume;

        A. 4333--A                          6

     1    (5) track implementation and results;
     2    (6)  provide  for  or  co-operate  in  remediation  in the event of an
     3  adverse impact:
     4    (A) remedies shall seek to restore the  affected  person  or  persons,
     5  where  practicable,  to  the  situation  they would have been in had the
     6  adverse impact not occurred and shall enable remediation that is propor-
     7  tionate to the significance and scale of the adverse impact;
     8    (B) remedies shall include, depending on the nature and extent of  the
     9  adverse impact, apologies, restitution or rehabilitation including rein-
    10  statement  of  dismissed  workers, recognition of the labor organization
    11  for the purpose of collective  bargaining,  financial  or  non-financial
    12  compensation  including  establishing compensation funds for victims, or
    13  for future outreach and educational programs, punitive sanctions includ-
    14  ing the dismissals of staff responsible for wrongdoing, and taking meas-
    15  ures to prevent future adverse impacts; and
    16    (C) in relation to human rights impacts, fashion sellers shall consult
    17  and engage with impacted rights holders and their  representatives  when
    18  determining the remedy.
    19    (b)  The due diligence requirements pursuant to this subdivision shall
    20  not be conditional upon the company being effectively  involved  in  the
    21  subsidiary's  day-to-day operations or exercising a sufficient degree of
    22  control on companies within its supply chain.
    23    3. Reporting. Every fashion seller shall develop  and  submit  to  the
    24  office  of  the  attorney  general  annually,  beginning within eighteen
    25  months of the effective date of this section, a  due  diligence  report.
    26  Such  report,  excluding  the  information  required  in clause three of
    27  subparagraph (i) of paragraph (a) of subdivision two  of  this  section,
    28  shall also be made publicly available on the fashion seller's website in
    29  a machine readable and reusable format, published in line with open data
    30  principles  through a clear and easily discoverable link to the required
    31  information. In the event the fashion seller does not have  an  internet
    32  website,  the  company  shall provide a written disclosure to any person
    33  who has requested information within thirty days of receiving a request.
    34  Such report shall also include the fashion  seller's  annual  volume  of
    35  material produced, including breakdown by material type.
    36    4.  Regulations.  The  department of state shall, in consultation with
    37  the department of environmental conservation and  department  of  labor,
    38  promulgate   all  rules  and  regulations  necessary  to  implement  the
    39  provisions of this section within six months from the effective date  of
    40  this  section. The department of state, in consultation with the depart-
    41  ment of environmental conservation and department of labor,  shall  also
    42  develop  and  disseminate  educational  materials  to  fashion  sellers,
    43  including providing alerts on time sensitive  issues,  emerging  issues,
    44  and  high-risk  country  situations,  and  assisting  fashion sellers in
    45  improving the quality of their due diligence processes.  The  department
    46  of state shall, in consultation with the Greenhouse Gas Protocol, devel-
    47  op  methodologies  to  calculate data capture as laid out in item (E) of
    48  clause four of subparagraph (ii) of  paragraph (a) of subdivision two of
    49  this section, prior to that requirement becoming effective.
    50    5. Verification. (a) The department of state  shall,  in  consultation
    51  with  the  department  of  environmental  conservation and department of
    52  labor, develop a process for accrediting verification bodies  authorized
    53  to  provide  verification  services  for  the  purposes of this section,
    54  including which requirements the entity is authorized to verify.
    55    (b) Such process shall at a minimum consider:

        A. 4333--A                          7

     1    (i) the demonstrated qualifications of verification  staff,  including
     2  their  education,  experience,  and professional licenses.  Verification
     3  bodies must employ and retain at least five total full-time  staff  with
     4  expertise in the requirements they seek to verify under this section;
     5    (ii)  any judicial proceedings, enforcement actions, or administrative
     6  actions filed against the body within the previous five years; and
     7    (iii) the policies and mechanisms in place  to  prevent  conflicts  of
     8  interest  and  to  identify  and  resolve potential conflict of interest
     9  situations if they arise. The department  shall  require  applicants  to
    10  submit the following information, at a minimum:
    11    (1)  identification of services provided by the verification body, the
    12  industries that the body serves, and the locations where those  services
    13  are provided;
    14    (2)  a  detailed  organizational  chart that includes the verification
    15  body, its management structure, and any related entities; and
    16    (3) the verification body's internal conflict of interest policy  that
    17  identifies  activities and limits to monetary or non-monetary gifts that
    18  apply to all employees and procedures to monitor conflicts of interest.
    19    (c) Verification bodies shall not be authorized to provide services to
    20  a company where a conflict of interest exists. A  conflict  of  interest
    21  shall include:
    22    (i) where the verification body and reporting entity share any manage-
    23  ment  staff  or  board  of  directors  membership,  or any of the senior
    24  management staff of the reporting  entity  have  been  employed  by  the
    25  verification body, or vice versa, within the previous five years;
    26    (ii)  any  employee  of  the  verification  body, or any employee of a
    27  related entity, or a subcontractor who is a member of  the  verification
    28  team  has  provided  the  reporting  entity with services related to the
    29  areas of verification, or any services designated by the  department  of
    30  state, within the previous five years;
    31    (iii)  any  staff member of the verification body provides any type of
    32  non-monetary incentive to a reporting entity to  secure  a  verification
    33  services contract; and
    34    (iv) any additional criteria provided by the department of state.
    35    (d) Verification bodies that have been accredited by the department of
    36  state  shall  notify the department within thirty days if they no longer
    37  meet the verification requirements set forth by this section.
    38    6. Enforcement. (a) The requirements imposed  on  fashion  sellers  by
    39  this  section  shall  be  monitored,  investigated,  and enforced by the
    40  attorney general or an administrator designated by the attorney  general
    41  to  bring  civil  proceedings  for  an injunction, or fines for monetary
    42  damages as described in this section, or civil performance of a statuto-
    43  ry duty. Fashion sellers shall be deemed non-compliant with this section
    44  if they fail to conduct effective due diligence pursuant to  subdivision
    45  two  of  this section or fail to file a due diligence report pursuant to
    46  subdivision three of this section.
    47    (b) The attorney general, or the attorney general's designated  admin-
    48  istrator  as applicable, shall annually publish and make publicly avail-
    49  able a report regarding compliance with this section, listing the  fash-
    50  ion  sellers who are known to be out of compliance with this section and
    51  including an up-to-date report on the attorney general's  monitoring  of
    52  such compliance.
    53    (c)  Fashion  sellers  found to be out of compliance with this section
    54  after the attorney general, or the attorney general's designated  admin-
    55  istrator as applicable, has provided notice of non-compliance, and after
    56  a  three-month period to meet obligations under this section has lapsed,

        A. 4333--A                          8

     1  may be fined up to two percent of annual revenues. Such fines  shall  be
     2  deposited  in  the community benefit fund established by section ninety-
     3  seven-ccc of the state finance law.
     4    (d)  The attorney general, or the attorney general's designated admin-
     5  istrator  shall  use  a  risk-based  approach  in  enforcement and shall
     6  publish enforcement guidelines.
     7    (e) Any person may report a violation of this section to the  attorney
     8  general's office.
     9    (f)  Tier one employees or their representative labor organization may
    10  commence a civil action against any fashion seller for  a  violation  of
    11  item (A) of clause four of subparagraph (ii) of  paragraph (a) of subdi-
    12  vision  two  of  this  section, if the attorney general does not bring a
    13  case within six months of notification of non-compliance from  tier  one
    14  employees  or  their representative labor organization. For the purposes
    15  of this section, employees shall include all workers, whether  full-time
    16  or  part-time,  permanent  or  fixed-term,  directly contracted or hired
    17  indirectly through an agency or other intermediary.
    18    (i) tier one employees do not need to exhaust administrative or  judi-
    19  cial  remedies  in  the  country  of  their employment before bringing a
    20  claim.
    21    (ii) class claims can be brought by both tier one employees acting  as
    22  class representatives, and by labor organizations representing workers.
    23    (iii)  courts can award attorneys' fees and costs to successful plain-
    24  tiffs. Fees may be  awarded  based  on  a  reasonable  hourly  rate  for
    25  services rendered, irrespective of the amount of recovery.
    26    (iv)  Courts  may establish proportional awards or penalties depending
    27  on the share of responsibility held by fashion sellers in  violation  of
    28  item (A) of clause four of subparagraph (ii) of  paragraph (a) of subdi-
    29  vision two of this section. Courts may change the total awards or penal-
    30  ties  of  fashion  sellers  found to be non-compliant to the degree that
    31  fashion sellers either have or have not  taken  or  are  taking  actions
    32  towards  compliance  of  item (A) of clause four of subparagraph (ii) of
    33  paragraph (a) of subdivision two of this section.
    34    (v) an administrative or judicial ruling on the claim in  the  country
    35  of  manufacture  will  be  considered  persuasive  but  not  dispositive
    36  evidence as to liability.
    37    § 3. The state finance law is amended by adding a new  section  97-ccc
    38  to read as follows:
    39    § 97-ccc. Fashion remediation fund.  1. There is hereby established in
    40  the  joint  custody of the comptroller, the commissioner of taxation and
    41  finance, the commissioner of environmental conservation, and the commis-
    42  sioner of labor a special fund to be known as  the  fashion  remediation
    43  fund.
    44    2.  Such  fund shall consist of all moneys deposited pursuant to para-
    45  graph (c) of subdivision six of section three hundred ninety-nine-mm  of
    46  the general business law.
    47    3. The moneys in the fund shall be expended by the comptroller to make
    48  tier one garment workers whole, in the case where they have demonstrated
    49  in  a  court  action  pursuant  to  paragraph  (f) of subdivision six of
    50  section three hundred ninety-nine-mm  of the general business  law  that
    51  they  have not received due wages and the court has found that the fash-
    52  ion seller has performed effective due diligence. Any  additional  funds
    53  may  be  expended by the comptroller in consultation with the department
    54  of environmental conservation, the  department  of  labor  and  relevant
    55  stakeholders  for  the purpose of implementing one or more environmental
    56  benefit projects or labor remediation projects that directly and verifi-

        A. 4333--A                          9

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