BILL NUMBER: S9740
SPONSOR: KAVANAGH
 
TITLE OF BILL:
An act to amend the general business law, in relation to requiring fash-
ion sellers to be accountable to environmental standards and establish-
ing the interstate fashion environment accountability act; and to amend
the state finance law, in relation to establishing a fashion remediation
fund
 
PURPOSE OR GENERAL IDEA OF BILL:
To require fashion retailers to map their supply chains and perform
sufficient due diligence. This includes, identifying, preventing, miti-
gating, accounting for, and taking remedial action to address actual and
potential adverse impacts to human rights and the environment in their
own operations and in their supply chain.
 
SUMMARY OF PROVISIONS:
Section 1 sets forth the title of this act.
Section 2 amends the general business law by adding a new section 399-mm
to establish the Fashion Environmental Accountability Act. This section
sets forth requirements for fashion sellers with $100 million in annual
gross receipts that do business in the state of New York to map their
supply chains and perform sufficient due diligence. This includes iden-
tifying, preventing, mitigating, accounting for, and taking remedial
action to address actual and potential adverse impacts to human rights
and the environment. Covered companies must set science based targets to
reduce their greenhouse gas emissions, work with suppliers to improve
chemical management, and embed responsible purchasing practices and
responsible exit strategies to improve labor outcomes.
These requirements will be enforced by the Attorney General and viola-
tors may face a civil penalty not to exceed $15,000 per violation per
day.
Section 3 amends the state finance law by adding a new section 97-ccc to
establish the Fashion Remediation Fund which will distribute any funds
raised by penalties to environmental or labor remediation projects in
impacted communities.
Section 4 requires the Attorney General to certify that their agency is
prepared to execute their duties under § 399-mm of the general business
law.
Section 5 provides for severability of the act's provisions if any are
found to be invalid.
Section 6 sets forth a timeline for promulgating rules and regulations.
Section 7 sets forth the effective date.
 
JUSTIFICATION:
The international fashion industry largely operates in a regulatory
vacuum: Currently there are no legally binding environmental standards
placed on the apparel and footwear industries. As a result, "fast fash-
ion" retailers and manufacturers may ramp up production and operations
without taking environmental responsibility or sustainability into
account. Apparel and footwear are responsible for a massive part of the
climate crisis causing GHG emissions, between 4-8.6% of the world's
global GHG footprint. This share of GHG emissions is growing as the
fashion industry pivots further into fast fashion and "single-wear"
styles. The use of certain dyes, fabrics, and synthetic chemicals in the
fast fashion industry pose a significant threat to human health and to
the environment. The use of synthetic chemicals in the fashion industry
exposes consumers to toxic chemicals (i.e. heavy metals, PFAS) linked to
endocrine disruption and increased exposure to carcinogens. The improper
waste management of materials continues to contaminate waterways, which
in turn exposes agricultural land to toxic chemicals, and poses health
risks to those consuming agricultural food products. Fashion sellers
often do not know where their production is taking pl ace, which makes
it impossible for them to begin to take responsibility or improve the
environmental impacts where their products are made.
This legislation will shift the industry away from a race to the bottom
by requiring active due diligence and planning to mitigate risk. Under
the bill, apparel and footwear retailers with global revenue of at least
$100 million who sell in New York state would be required to map their
supply chains and sufficiently engage in ongoing due diligence efforts
to draw down their negative impacts.
This will make New York the leader in corporate accountability and
demonstrate a path forward for industry to thrive within the bounds of
the planet.
 
LEGISLATIVE HISTORY:
2026: A4631 (Kelles) - Referred to Consumer Affairs and Protection
2025: S4558 (Hoylman-Sigal) - Referred to Consumer Protection
2025: A4631 (Kelles) - Referred to Consumer Affairs and Protection
2024: 54746 (Hoylman-Sigal) - Referred to Consumer Protection
2024: A4333 (Kelles) - Reported to Rules
2023: 54746 (Hoylman-Sigal) - Referred to Consumer Protection
2023: A4333 (Kelles) - Referred to Consumer Affairs and Protection
2022: 57428 (Biaggi) - Referred to Consumer Protection
2021: S7428 (Biaggi) - Referred to Consumer Protection
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately; provided however, that sections
one through three of this act shall take effect one year after they
shall have become a law; provided further, however, that subdivision 6
of section 399-mm of the general business law as added by section two of
this act shall take effect one year after the attorney general certifies
that the office of the attorney general is prepared to execute the
duties assigned in such subdivision. The attorney general shall notify
the legislative bill drafting commission upon the occurrence of such
certification in order that the commission may maintain an accurate and
timely effective data base of the official text of the laws of the state
of New York in furtherance of effectuating the provisions of section 44
of the legislative law and section 70-b of the public officers law.