What's happening
This bill requires large retail and manufacturing businesses in New York to publicly disclose their efforts to prevent human trafficking in their supply chains.
Why it matters
Increases transparency and accountability. By requiring companies with over $100 million in global revenue to publicly detail their anti-trafficking efforts, the bill puts pressure on large businesses to examine and address their supply chains for potential human rights abuses.
Empowers consumer choice. The mandated disclosures make it easier for consumers to identify and support companies that actively work to prevent human trafficking, potentially shifting market demand toward more ethical products.
Standardizes reporting and oversight. The bill spells out specific areas for companies to disclose—such as supplier audits, employee training, and supplier certifications—creating a baseline for what constitutes meaningful anti-trafficking action and enabling more consistent comparisons across companies.
Strengthens enforcement through state mechanisms. By involving the state tax department and attorney general, the bill ensures that the list of covered companies is maintained and that non-compliance can be addressed through legal action, rather than relying solely on voluntary corporate self-reporting.
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Who cares
Large retailers and manufacturers
Those doing business in New York with annual worldwide gross receipts exceeding $100 million would have to disclose their efforts, if any, to address human trafficking in their direct supply chains for tangible goods offered for sale.
Consumers
They would gain access to disclosures through company websites or, for companies without websites, within 30 days of a written request.
New York attorney general
The office would receive annual lists of covered businesses and have exclusive authority to seek injunctions for violations of the disclosure requirements.
State tax officials
They would have to compile annual lists of covered retailers and manufacturers from tax returns and provide their names and state tax identification numbers to the attorney general.
Headline styles
Require Supply Chain Transparency
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to consumer protection
- Referred to rules
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Require Supply Chain Disclosures
In Assembly Committee · Economic Development · Sponsor Andrew Hevesi
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6282
2019-2020 Regular Sessions
IN SENATE
June 3, 2019
Introduced by Sen. BIAGGI -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the general business law and the tax law, in relation to enacting the "New York State Transparency in Supply Chains Act", and to require businesses within the state to disclose their preventative measures against human trafficking
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Short title. This act shall be known and may be cited as the "New York state transparency in supply chains act".
§ 2. Legislative intent. The legislature hereby finds that human trafficking is a crime under state, federal and international law, and that these crimes exist in every country, including the United States, and the state of New York. As a result of the criminal nature of human trafficking, this crime is often difficult to uncover and track. Significant legislative efforts have been made to capture and punish the perpetrators of this crime and also to ensure that victims of human trafficking are provided with the necessary rights and protections. However, legislative efforts to address the market for goods and products tainted by human trafficking have been lacking, with the market being a key impetus for these crimes. Studies have shown that a number of goods from all over the world are believed to be produced by forced labor or child labor in violation of international standards, and consumers and businesses are inadvertently promoting and sanctioning these crimes through the purchase of goods and products that have been tainted in the supply chain. Absent public available disclosures, consumers are at a disadvantage in being able to distinguish companies on the merits of their efforts to supply products free from the taint of human trafficking. Consumers are at a disadvantage in being able to force the eradication of human trafficking by way of their purchasing decisions. The purpose of this law is to ensure that large retailers and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11020-01-9
S. 6282 2
manufacturers provide consumers with accurate information regarding their efforts to eradicate human trafficking from their supply chain processes, to educate consumers on how to purchase goods produced by companies that responsibly manage their supply chains, and, thereby, to improve the lives of victims of human trafficking.
§ 3. The general business law is amended by adding a new section 399- mm to read as follows:
§ 399-mm. Human trafficking supply chain transparency. 1. As used in this section, the following terms shall have the following meanings:
(a) "Doing business in this state" shall mean actively engaging in any transaction for the purpose of financial or pecuniary gain or profit;
(b) "Gross receipts" shall mean the gross amounts realized, otherwise known as the sum of money and the fair market value of other property or services received, on the sale or exchange of property, the performance of services, or the use of property or capital, including rents, royalties, interest, and dividends, in a transaction that produces business income, in which the income, gain, or loss is recognized, or would be recognized if the transaction were in the United States, under the Internal Revenue Code, as applicable for purposes of this section. Amounts realized on the sale or exchange of property shall not be reduced by the cost of goods sold or the basis of property sold. Gross receipts, even if business income, shall not include the following items:
(1) repayment, maturity, or redemption of the principal of a loan, bond, mutual fund, certificate of deposit, or similar marketable instrument;
(2) the principal amount received under a repurchase agreement or other transaction properly characterized as a loan;
(3) proceeds from issuance of the taxpayer's own stock or from sale of treasury stock;
(4) damages and other amounts received as the result of litigation;
(5) property acquired by an agent on behalf of another;
(6) tax refunds and other tax benefit recoveries;
(7) pension reversions;
(8) contributions to capital (except for sales of securities by securities dealers);
(9) income from discharge of indebtedness;
(10) amounts realized from exchanges of inventory that are not recognized under the Internal Revenue Code;
(11) amounts received from transactions in intangible assets held in connection with a treasury function of the taxpayer's unitary business and the gross receipts and overall net gains from the maturity, redemption, sale, exchange, or other disposition of those intangible assets; and
(12) amounts received from hedging transactions involving intangible assets. A "hedging transaction" means a transaction related to the taxpayer's trading function involving futures and options transactions for the purpose of hedging price risk of the products or commodities consumed, produced, or sold by the taxpayer;
(c) "Manufacturer" shall mean a business entity which lists manufacturing as its principal business activity in the state of New York, as reported on the entity's state business tax return;
(d) "Retail seller" shall mean a business entity which lists retail trade as its principal business activity in the state of New York, as reported on the entity's state business tax return.
S. 6282 3
2. Every retail seller and manufacturer doing business in the state and having annual worldwide gross receipts that exceed one hundred million dollars shall disclose, as set forth in subdivision three of this section, its efforts to eradicate human trafficking from its direct supply chain for tangible goods offered for sale.
3. The disclosure described in subdivision two of this section shall be posted on the retail seller's or manufacturer's internet website with clear and easily understood link to the required information placed on the business' homepage. In the event the retail seller or manufacturer does not have an internet website, consumers shall be provided the written disclosure within thirty days of receiving a written request for the disclosure from a consumer.
4. The disclosure described in subdivision two of this section shall, at a minimum, disclose to what extent, if any, that the retail seller or manufacturer does each of the following:
(a) engages in verification of product supply chains to evaluate and address risks of human trafficking. Such disclosure shall specify if the verification was not conducted by a third party;
(b) conducts audits of suppliers to evaluate supplier compliance with company standards for human trafficking in supply chains. Such disclosure shall specify if the verification was not an independent, unannounced audit;
(c) requires direct suppliers to certify that materials incorporated into the product comply with the laws regarding human trafficking of the country or countries in which they are doing business;
(d) maintains internal accountability standards and procedures for employees or contractors failing to meet company standards regarding human trafficking;
(e) provides company employees and management, who have direct responsibility for supply chain management, training on human trafficking, particularly with respect to mitigating risks within the supply chain of products; and
5. The exclusive remedy for a violation of this section shall be an action brought by the attorney general for injunctive relief. Nothing in this section shall limit remedies available for a violation of any other state of federal law.
§ 4. The tax law is amended by adding a new section 220 to read as follows:
§ 220. Human trafficking reports required by business entities. 1. Notwithstanding any provision of law, the commissioner shall make available to the attorney general a list of retail sellers and manufacturers required to disclose efforts to eradicate human trafficking pursuant to section three hundred ninety-nine-mm of the general business law. The list shall be based on the tax return filed by the business in the previous tax year.
2. Each list required by this section shall be submitted annually to the attorney general by the thirtieth of November. The list shall be derived annually from original tax returns received by the state on or before the thirty-first of December.
3. Each annual list required by this section shall include the following:
(a) the entity's name; and
(b) the state tax identification number.
§ 5. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general business law and the tax law, in relation to enacting the "New York State Transparency in Supply Chains Act", and to require businesses within the state to disclose their preventative meas- ures against human trafficking
Purpose
This bill will work to eradicate slavery and human trafficking within supply chains worldwide by providing transparency within the supply chains of large corporations doing business within the state of New York.
Summary of provisions
Section 1 establishes the title of the bill.
Section 2 sets forth legislative findings
Section 3 amends the general business law by adding a new section that defines what business is to be held accountable under this law, and which revenue streams are exempt from total revenue used to calculate gross recipients, including but not limited to repayment and maturity on a loan, damages received as a result of litigation, and tax refunds. This section also defines manufacturer and retail seller as they would be implicated in this law and what amount of gross recipients would qualify said manufacturer or retail seller. Additionally, this section sets out the provisions of how the information will be made available, and necessary information to disclose, such as if the auditor was a third party. Audits must investigate how thoroughly the retail seller or manufacturer verifies the product supply chains to address risks of trafficking, address audits of suppliers to evaluate supplier compliance with company standards.
Justification
The bill recognizes that human trafficking is a near-universal issue that globally generates $100 million in revenue annually. Within the next 10 years, experts expect that human trafficking will surpass both drug and arms trafficking. Victims of these crimes are disproportionate- ly poor women and people of color, with one-fourth of trafficking victims being children. This issue is incredibly difficult to track and eradicate, with the market acting as a large inhibitor to these efforts because of opaque supply chains. Large businesses that provide goods sourced with materials from the globalized production economy have the moral obligation to use their resources to ensure that unfree labor has no place in their supply chains. By requiring those businesses to conduct an audit of human trafficking within their supply chains and ensure that information is available to the public, greater accountabil- ity will ensue, moving closer to attaining the goal of supply chains free and clear of forced labor.
Legislative history
New bill.
Fiscal impact on the state
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.