SB2157sam001 104TH GENERAL ASSEMBLY

Sen. Rachel Ventura

Filed: 3/14/2025

10400SB2157sam001 LRB104 09412 HLH 23950 a

AMENDMENT TO SENATE BILL 2157

AMENDMENT NO. ______. Amend Senate Bill 2157 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Procurement Code is amended by adding Article 54 as follows:

(30 ILCS 500/Art. 54 heading new)

ARTICLE 54. DEFORESTATION-FREE ILLINOIS LAW

(30 ILCS 500/54-1 new)

Sec. 54-1. Short title. This Article 54 may be cited as the Deforestation-Free Illinois Law.

(30 ILCS 500/54-2 new)

Sec. 54-2. Legislative findings. The General Assembly finds and declares the following:

(1) According to the Food and Agriculture Organization of the United Nations, 31% of land on earth is covered in forests, but that area is rapidly decreasing. An estimated 1,600,000 square miles of forest has been converted to other land uses since 1990, with 42,500 square miles converted annually since 2010

(2) Studies show that preventing deforestation is among the most cost-effective climate mitigation strategies with large global mitigation benefits. Preventing deforestation is also one of the few large mitigation options that does not risk trade-offs to solving other challenges; on the contrary, it provides co-benefits like enhancing health, clean water, and sanitation.

(3) Cost-effective greenhouse gas emission mitigation from forests and land use can provide roughly one-third of the mitigation required by 2030 to hold the increase in the global average temperature below 2 degrees Celsius above pre-industrial levels. Studies also suggest that protecting existing forests and allowing them to mature could potentially store 151.7 gigatons of carbon, or about a quarter of excess emissions since industrialization.

(4) Deforestation and forest degradation generates between 4.3 and 5.5 GtCO2eq annually. This is between 7% and 10% of all CO₂ equivalent emissions from all sources globally. Emissions associated with deforestation and forest degradation contribute most of the 13% of total anthropogenic CO₂ emissions attributed to agriculture.

(5) The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services found, in 2019, that (i) the rate of global species extinction is accelerating and is now tens to hundreds of times higher than the average rate over the last 10,000,000 years, threatening the loss of 1,000,000 species, and (ii) rampant land-use change has an overwhelming relative impact on terrestrial ecosystems.

(6) Most forest destruction is caused by a few high-risk commodities, including, but not limtied to, cattle products, cocoa, coffee, soy, palm oil, paper, and rubber. The State should should endeavour to use and purchase products from supply chains that do not contribute to deforestation, forest degradation, and interrelated human rights abuses.

(30 ILCS 500/54-3 new)

Sec. 54-3. Definitions. As used in this Article:

"Contractor" means any person or entity that has a contract with a State agency for any of the following:

(1) public works or improvements;

(2) a franchise, concession, or lease of property; or

(3) grant moneys or goods and services or supplies to be purchased at the expense of the State agency or to be paid for out of moneys deposited into the State treasury or out of trust fund moneys that are under the control of or collected by the State agency.

"Deforestation" means direct human-induced conversion of forest to agriculture, a tree plantation, or other non-forest land use.

"Forest degradation" means structural changes to forest cover that result in a change in species composition, structure, or ecological function of that forest, as indicated by factors including impacts to carbon storage and other ecosystem services, native species abundance and composition, forest structure, and tree age class distribution. "Forest degradation" includes converting primary forest or naturally regenerating forest into plantation forest or into other wooded land and the conversion of primary forest into planted forests.

"Forest-risk commodity" means:

(1) any commodity, including any agricultural or nonagricultural commodity, whether in raw or processed form, that is commonly extracted from or grown, derived, harvested, reared, or produced on land where deforestation or forest degradation has occurred or is likely to occur; or

(2) any product derived from a product described in paragraph (1).

"Forest-risk commodity" includes beef, cocoa, coffee, leather, logs, lumber, palm oil, paper, soy, rubber, wood pulp, and any other commodity identified as such by the Director of Central Management Services by rule. "Forest-risk commodity" does not include wood pulp or paper made entirely from recovered fiber. For any wood pulp or paper product made partially from recovered fiber, the contractor must only confirm that the components that were not derived from recovered fibers were not extracted from, grown, derived, harvested, reared, or produced on land where deforestation or forest degradation occurred in accordance with rules as provided in Section 54-13. "Forest-risk commodity" does not include salvaged wood or composite products made entirely from recycled material.

"Free, prior, and informed consent" means an authorization that embodies the principle that a community has the right to give or withhold its approval of a proposed development that may affect the land and waters it legally or customarily owns, occupies, or otherwise uses, as described in the United Nations Declaration on the Rights of Indigenous Peoples, the Indigenous and Tribal Peoples Convention of 1989, and other international instruments. "Free, prior, and informed consent" includes informed, noncoercive negotiations between investors, companies, or governments and Indigenous peoples prior to project development, and the formalized ability for impacted Indigenous peoples to say no if projects do not meet their needs and, where the risk of harm to Indigenous Peoples' rights is significant, projects should not proceed without the affected People's consent.

"Illinois State product" means:

(1) a product that is grown, harvested, or produced in this State; or

(2) a product that is processed inside or outside of this State comprising over 51%, by weight or volume, raw materials that are grown, harvested, or produced in this State.

"Industrial development" means the processes and operations involved in the large-scale production of goods, including, but not limited to, manufacturing, processing, warehousing, transporting, or repairing. "Industrial development" also means the creation of facilities and transportation infrastructure for these activities, such as power generation, ship building, road development, and waste storage and treatment.

"Large contractor" means any contractor whose annual revenue, or that of its parent company, is equal to or greater than $100,000,000.

"Master contract" has the meaning given to that term in Section 1-15.47 of the Illinois Procurement Code.

"Medium-sized business" means a business that operates in this State, is independently owned and operated, not dominant in its field, and employs between 100 and 500 persons.

"Minority-owned business" has the meaning given to that term in Section 2 of the Business Enterprise for Minorities, Women, and Persons with Disabilities Act.

"Peat" means a soil that is rich in organic matter composed of partially decomposed and decaying plant materials, and comprises 40 centimeters of the top 100 centimeters of the soil profile.

"Peatlands" means wetlands with a layer of peat. "Peatlands" includes moors, bogs, mires, peat swamp forests, and permafrost tundra.

"Point of origin" means the geographic location, as identified by the smallest administrative unit of land, where a commodity is grown, derived, harvested, reared, or produced.

"Primary forest" or "pre-industrial forest" means a forest that has never been disturbed by industrial development or large-scale harvesting and has developed following natural disturbances and under natural processes, regardless of its age. "Primary forest" includes a forest in any geography that has experienced nonindustrial-scale human impacts, including traditional or subsistence activities carried out by Indigenous communities.

"Recovered fiber" means postconsumer fiber such as paper, paperboard, and fibrous materials from places including retail stores, office buildings, and homes, after having passed through its end usage, including used corrugated boxes, old newspapers, old magazines, mixed waste paper, tabulating cards, and used cordage, and all paper, paperboard, and fibrous materials that enter and are collected from municipal solid waste, and manufacturing wastes such as dry paper and paperboard waste generated after completion of the papermaking process, including envelope cuttings, bindery trimmings, and other paper and paperboard waste resulting from printing, cutting, forming, and other converting operations, bag, box, and carton manufacturing wastes, and butt rolls, mill wrappers, and rejected unused stock, and repulped finished paper and paperboard from obsolete inventories of paper and paperboard manufacturers, merchants, wholesalers, dealers, printers, converters, and others.

"Small business" has the same meaning given to that term in Section 45-45 of the Illinois Procurement Code.

"Tropical forest" means a natural ecosystem within the tropical regions, approximately bounded geographically by the tropics of Cancer and Capricorn, but possibly affected by other factors such as prevailing winds, containing native species composition, structure, and ecological function, with a tree canopy cover of more than 10% over an area of at least 0.5 hectares. "Tropical forest" includes all of the following: (i) human-managed tropical forests or partially degraded tropical forests that are regenerating; and (ii) tropical forests identified by multi-objective conservation-based assessment methodologies, such as High Conservation Value areas (HCV), as defined by the HCV Resource Network, or High Carbon Stock Forests, as defined by the High Carbon Stock Approach, or by another methodology with equivalent or higher standards that includes primary forests and tropical peatlands of any depth. "Tropical forest" does not include plantations of any type.

"Tropical hardwood" means any and all hardwood, specifically classified as angiosperm, that grows in any tropical forest. "Tropical hardwood" includes, but is not limited to, the following species:

(1) Prunus Africana (African cherry, red stinkwood)

(2) Caryocar Costaricense (garlic tree)

(3) Calophyllum species (bintangor)

(4) Cedrela species (cedar, Spanish cedar, South American cedar)

(5) Neobalanocarpus Heimii (chengal)

(6) Octomeles Sumatrana (Benuang)

(7) Myroxylon Balsamum (balsamo)

(8) Apuleia Leiocarpa (garapa)

(9) Parastemon Urophyllus (malas)

(10) Spicatus Ridley Hopea species (merawan)

(11) Araucaria Araucana (monkey puzzle, Chilean pine)

(12) Senna Siamea (Siamese cassia)

(13) Pometia Pinnata (taun)

(14) Millettia Leucantha, Millettia Stuhlmannii, Millettia Laurentii (sathon, panga panga, wenge)

(15) Bulnesia Arborea, Bulnesia Sarmientoi (verawood, Argentine lignum vitae)

(16) Tristaniopsis Laurina (water gum)

(17) Terminalia species (limba, afara, ofram, idigbo, framire, black afara, amarillo, nargusta)

(18) Homalium Foetidum (malas)

(19) Dillenia Papuana (dillenia)

(20) Canarium species (red canarium, grey canarium)

(21) Burkrella Macropoda (rang rang)

(22) Dracontomelon Dao (New Guinea walnut)

(23) Planchonella species (white planchonella, red planchonella)

(24) Lophopetalum species (perupok)

(25) Cariniana Pyriformis (Colombian mahogany, abarco, jequitiba)

(26) Mitragyna Ciliata (abura)

(27) Vouacapoua Americana (acapu)

(28) Amburana Cearensis (amburana, cerejeira, cumare)

(29) Lovoa species (African walnut, tigerwood)

(30) Pericopsis Elata (afrormosia)

(31) Peltogyne species (amaranth, purpleheart)

(32) Pterogyne Nitens (amendoim)

(33) Carapa Guianensis, Dicorynia Guianensis, Bagassa Guianensis, Couratari Guianensis (andiroba, angelique, tatajuba, bagasse)

(34) Aningeria species (aningeria, anegre, anigre)

(35) Dipterocarpus species (apitong, keruing)

(36) Centrolobium species (arariba)

(37) Brosimum Utile, Brosimum Alicastrum (baco, breadnut)

(38) Ochroma Lagopus, Ochroma Pyramidale (balsa)

(39) Berlinia species (berlinia, rose zebrano)

(40) Symphonia Globulifera (boarwood)

(41) Detarium Senegalense (boire)

(42) Caesalpinia Echinata, Paubrasilia Echinata (Brazilwood, pernambuco)

(43) Bertholletia Excelsa (Brazil nut, mora)

(44) Guibourtia species (bubinga, African rosewood, kevazingo, amazique)

(45) Toona Calantas (calantas)

(46) Prioria copaifera (cativo)

(47) Ceiba Pentandra (ceiba)

(48) Antiaris africana (chechen, antiaris)

(49) Tabebuia Donnell-Smithii (copal)

(50) Daniellia species (daniellia)

(51) Cordia species (cordia wood, bocote, ziricote, louro, freijo)

(52) Hymenaea Courbaril (courbaril, West Indian locust)

(53) Dipteryx Odorata (cumaru, Brazilian teak)

(54) Piptadeniastrum Africanum (dahoma)

(55) Calycophyllum Candidissimum (dagame, lemonwood)

(56) Afzelia species (doussie)

(57) Diospyros species (ebony, ceylon ebony, marblewood)

(58) Lophira Alata (ekki, azobe, red ironwood)

(59) Combretodendron Macrocarpum (esia)

(60) Chlorophora Tinctoria, Chlorophora Excelsa (fustic, iroko, African teak)

(61) Aucoumea Klaineana (gaboon, okoume)

(62) Astronium species (goncalo alves, tigerwood)

(63) Ocotea Rodiei (greenheart)

(64) Enterolobium Cyclocarpum (guanacaste, elephant-ear tree)

(65) Guarea species (guarea, bosse)

(66) Phoebe Porosa (imbuia, Brazilian walnut)

(67) Handroanthus species (ipe, pau d'arco, lapacho)

(68) Jacaranda Copaia (jacaranda)

(69) Machaerium Villosum (jacaranda pardo)

(70) Dyera Costulata (jelutong)

(71) Dryobalanops species (kapur, keladan)

(72) Koompassia Malaccensis (kempas)

(73) Acacia Koa (koa)

(74) Pterygota Macrocarpa (koto, African pterygota)

(75) Oxandra Lanceolata (lancewood)

(76) Shorea species (lauan, luan, lawaan, meranti, seraya, Philippine mahogany, balau)

(77) Nothofagus Pumilio, Nothofagus Obliqua (lenga beech, roble)

(78) Guaiacum Officinale (roughbark lignum-vitae)

(79) Aniba Rosaeodora, Aniba Duckei (pau rosa)

(80) Nectandra species (louro preto)

(81) Khaya species (African mahogany)

(82) Swietenia species (mahogany, West Indian mahogany, Honduran mahogany, Cuban mahogany, big-leaf mahogany)

(83) Tieghemella Heckelii (makora)

(84) Intsia Bijuga, Intsia Palembanica (Borneo teak, merbau)

(85) Anisoptera species (mersawa, krabak, palosapis)

(86) Distemonanthus Benthamianus (movingui, ayan)

(87) Pterocarpus species (narra, amboyna, Papua New Guinea rosewood, mukula, kosso, zitan, hongmu, padauk, vermillion wood)

(88) Palaquium species (nyatoh)

(89) Triplochiton Scleroxylon (African whitewood, obeche, sambawawa)

(90) Nauclea Diderrichii (opepe)

(91) Balfourodendron Riedelianum (marfim)

(92) Aspidosperma species (peroba rosa)

(93) Paratecoma Peroba (peroba branca)

(94) Gonystylus species (ramin)

(95) Melanorrhoea Curtisii (rengas, Borneo rosewood)

(96) Hevea Brasiliensis (rubber tree)

(97) Dalbergia species (rosewood, Indian rosewood, Honduras rosewood, cocobolo, granadillo, pinkwood, tulipwood, African blackwood)

(98) Entandrophragma cylindricum, Entandrophragma Candollei, Entandrophragma Utile (sapele, sapelli, kosipo, omu, utile, sipo)

(99) Acanthopanax Ricinofolius (sen)

(100) Brosimum Aubletti, Piratinera (snakewood, letterwood, leopardwood)

(101) Juglans species (South American walnut, Peruvian walnut)

(102) Sterculia Rhinopetalia (sterculia)

(103) Tectona Grandis (teak)

(104) Virola species (virola, cumala)

(105) Pentacme Contorta (white lauan)

(106) Microberlinia species (zebrawood, zingana)

"Tropical hardwood product" means any product that contains tropical hardwood, regardless of whether it is sold at wholesale or retail, including, but not limited to, plywood, veneer, furniture, cabinets, paneling, siding, moldings, doors, doorskins, joinery, flooring, or sawnwood.

"Tropical peatland" means tropical wetlands with a layer of peat. "Tropical peatland" includes moors, bogs, mires, and peat swamp forests.

"Wholly or in part" shall have the meaning given to that term by rule, as described in Section 54-13. The term shall be defined in a manner designed to limit the administrative burden on the State while maximizing this Act's effectiveness at preventing deforestation and forest degradation.

"Women-owned business" has the meaning given to that term in Section 2 of the Business Enterprise for Minorities, Women, and Persons with Disabilities Act.

(30 ILCS 500/54-4 new)

Sec. 54-4. Purchase of tropical hardwoods prohibited.

(a) Except as otherwise provided in this Act, neither the State nor any government agency of the State shall purchase, at wholesale or retail, or obtain for any purpose any tropical hardwood or tropical hardwood product.

(b) Subsection (a) shall not apply to:

(1) any binding contractual obligations for the purchase of commodities entered into before the adoption of rules as described in Section 54-13; or

(2) any grant, subvention, or contract with an agency of the United States, or any instruction of an authorized representative of an agency of the United States, if the application of subsection (a) violates or is inconsistent with the terms or conditions of the grant, subvention, contract, or instruction.

(30 ILCS 500/54-5 new)

Sec. 54-5. Use of tropical hardwood or tropical hardwood products prohibited.

(a) No bid proposal or solicitation, request for bid or proposal, or contract for the construction of any public work, building maintenance, or improvement for or on behalf of the State or any government agency of the State shall require or permit the use of any tropical hardwood or tropical hardwood product.

(b) Every bid proposal, solicitation, request for bid or proposal, and contract for the construction of any public work, building maintenance, or improvement shall contain a statement that any bid, proposal, or other response to a solicitation for bid or proposal that proposes or calls for the use of any tropical hardwood or tropical hardwood product in performance of the contract shall be void.

(c) The use of any tropical hardwood or tropical hardwood product on lands owned or managed by the State or by any governmental agency of the State is prohibited.

(d) Subsections (a) and (b) shall not apply to the following:

(1) bid packages advertised and made available to the public or any competitive and sealed bids received or entered into before the adoption of rules as described in Section 54-13;

(2) any amendment, modification, or renewal of a contract if the contract was entered into before the adoption of rules as described in Section 54-13, and in which such application would delay timely completion of a project or involve an increase in the total moneys to be paid under that contract; or

(3) any grant, subvention, or contract with any agency of the United States, or any instruction of an authorized representative of an agency of the United States, if the contracting officer finds that the application of subsection (a) violates or is inconsistent with the terms or conditions of the grant, subvention, contract, or instruction.

(30 ILCS 500/54-6 new)

Sec. 54-6. Phase-in of forest-risk commodity procurement.

(a) Every master contract entered into by the Department of Central Management Services that includes the procurement of any product that consists, in whole or in part, of a forest-risk commodity shall require the contractor to confirm that the commodity furnished to the State under the contract was not extracted from, grown, derived, harvested, reared, or produced on land where deforestation or forest degradation occurred on or after the adoption of rules under Section 54-13. The contractor shall agree to comply with this provision of the contract.

For any salvaged wood or composite products made partially from recovered fiber, the contractor must only confirm the components that were not derived from salvaged wood or composite products were not extracted from, grown, derived, harvested, reared, or produced on land where deforestation or forest degradation occurred upon the issuance of rules as described in Section 54-13.

(a-5) Two years after the adoption of rules as described in Section 54-13 of this Act, every contract entered into by a State agency that includes the procurement of any product that consists, in whole or in part, of a forest-risk commodity shall require the contractor to confirm that the commodity furnished to the State under the contract was not extracted from, grown, derived, harvested, reared, or produced on land where deforestation or forest degradation occurred on or after the adoption of rules described in Section 54-13. The contractor shall agree to comply with this provision of the contract.

(b) This Section does not apply to any grant, subvention, or contract with an agency of the United States, or to any instruction of an authorized representative of an agency of the United States, if the application of subsection (a) violates or is inconsistent with the terms or conditions of the grant, subvention, contractor, or instruction.

(30 ILCS 500/54-7 new)

Sec. 54-7. Compliance.

(a) Every contract shall specify that the contractor is required to cooperate fully in providing access to the contractor's records, documents, agents, employees, or premises if required by authorized officials of the contracting State agency, the Department of Central Management Services, or the Office of the Attorney General to determine the contractor's compliance with the requirements under this Act.

(b) Contractors shall exercise due diligence in ensuring that their subcontractors comply with Section 54-6. Contractors shall require each subcontractor to certify in writing that the subcontractor complies with this Act.

(30 ILCS 500/54-8 new)

Sec. 54-8. Required forest policies. In addition to the requirements of Sections 54-6 and 54-7, large contractors that are subject to Section 54-6 must confirm that they have adopted a forest policy that includes, at a minimum, the following for each product covered by this Act::

(1) data detailing the complete list of direct and indirect suppliers and supply chain traceability information, including refineries, processing plants, farms, and plantations, and their respective owners, parent companies, and farmers, maps, and geolocations, for each forest-risk commodity found in products that may be furnished to the State;

(2) measures to be taken to ensure that the product does not contribute to deforestation or forest degradation, including measures to ensure that:

(A) the product does not contribute to industrial development or logging in primary forests;

(B) the product does not originate from a site where commodity production has replaced primary forests;

(C) the product does not contribute to industrial development of high carbon stock forests;

(D) the product does not contribute to industrial development of high conservation value areas;

(E) the product does not contribute to industrial development on forests that are deemed a critical habitat for threatened or endangered species;

(F) the production, processing, delivery, or use of the product does not result in burning for the purposes of clearing land for agriculture and cultivation of land for non-wood products regulated by this Act;

(G) there is progressive reduction of greenhouse gas emissions on existing plantations;

(H) the product does not contribute to the development of peat, regardless of depth;

(I) best management practices for existing plantations on peat are used; and

(J) where feasible, activities are oriented toward peat restoration; and

(3) measures taken to prevent exploitation and redress grievances of Indigenous peoples, workers and local communities, including measures to ensure:

(A) respect for and recognition of the rights of all workers including contract, temporary, and migrant workers;

(B) respect for and recognition of land tenure of rights of communities;

(C) respect for the rights of Indigenous peoples to give or withhold their free, prior, and informed consent to operations on lands to which they hold legal, communal, or customary rights;

(D) explicit policies and processes to prevent violence, intimidation, and coercion of workers and local communities; and

(E) formal, open, transparent, and consultative processes to address all complaints and conflicts;

(4) measures to be taken to protect biodiversity and prevent the poaching of endangered species in all operations and adjacent areas;

(5) measures to be taken to ensure compliance with the laws of countries where forest-risk commodities in a company's supply chain were produced; and

(6) measures to deter violence, threats, and harassment against environmental human rights defenders, including respecting internationally recognized human rights standards, and educating employees, contractors, and partners on the rights of EHRDs to express their views, conduct peaceful protests, and criticize practices without intimidation or retaliation.

A forest policy adopted under this Section must be made publicly available, and corresponding data required under this Section is subject to the Illinois Freedom of Information Act. The adoption of a forest policy by a contractor, subcontractor, or supplier is not required for compliance with this Section if that entity is not a large contractor, but the adoption of such a policy may be used to demonstrate the entity's compliance with this Section.

(30 ILCS 500/54-9 new)

Sec. 54-9. Stakeholder advisory group. As needed throughout the rulemaking process and throughout the process of implementing this Act, including during the investigation of violations as outlined in Section 54-11, the Director of Central Management Services may consult with a stakeholder advisory group on the adoption of rules for the implementation of this Act. Members of the advisory group shall be selected by the Director of Central Management Services and shall consist of at least:

(1) representatives of current or former contractors dealing in each of the forest-risk commodities, with an emphasis on small and medium-sized businesses;

(2) representatives from civil society with relevant expertise in supply chain traceability, forest sustainability, biodiversity, forest carbon dynamics, natural history, climate science, human and labor rights, and indigenous rights; members selected under this paragraph should be of at least equal number to members selected under paragraph (1); and

(3) a minimum of 2 additional representatives from indigenous communities residing within forests covered by this Act.

The advisory group shall meet virtually. Membership in the group shall be voluntary, and, therefore, members shall receive no salary or compensation for participation.

(30 ILCS 500/54-10 new)

Sec. 54-10. Violations and sanctions.

(a) If it is determined that any contractor contracting with the State knew or should have known that a product that consists, wholly or in part, of a forest-risk commodity was furnished to the State in violation of Sections 54-4, 54-5, 54-6, 54-7, or 54-8, the contracting State agency shall issue a written notice of violation and provide an opportunity for the contractor to come into compliance with the Act. If, after such notice, a contractor fails to come into compliance with a timeframe established by the Department of Central Management Services, the contractor may have either one or both of the following sanctions imposed:

(1) the contract under which the prohibited forest-risk commodity was furnished may be voided at the option of the State agency to which the commodity was furnished; or

(2) the contractor may be assessed a penalty that shall be the greater of $1,000 or an amount equaling 20% of the value of the product that the State agency demonstrates was comprised, wholly or in part, of a forest-risk commodity and furnished to the State in violation of Sections 54-4, 54-5, 54-6, 54-7, and 54-8.

A hearing or opportunity to be heard shall be provided prior to the assessment of any penalty.

(b) Notwithstanding subsection (a), a contractor that complies with Section 54-7shall not be subject to sanctions for violations if the contractor had no knowledge of the requirements of Sections 54-4, 54-5, 54-6, 54-7, and 54-8, and if the violations were committed solely by a subcontractor. Under this subsection (b), sanctions described under subsection (a) shall instead be imposed against the subcontractor that committed the violation.

(30 ILCS 500/54-11 new)

Sec. 54-11. Investigation of violations.

(a) Any State agency that investigates a complaint against a contractor or subcontractor for a violation of this Act may limit its investigation to evaluating the information provided by the person or entity submitting the complaint and the information provided by the contractor or subcontractor.

(b) Whenever a contracting officer of the contracting State agency has reason to believe that the contractor failed to comply with Sections 54-4, 54-5, 54-6, 54-7, and 54-8, the State agency shall refer the matter for investigation to the head of the State agency and, as the head of the State agency determines appropriate, in consultation with the stakeholder advisory group established under Section 54-9, to the Office of the Attorney General who may consultin consultation with the stakeholder advisory group established under Section 54-9.

(30 ILCS 500/54-12 new)

Sec. 54-12. Preference for Illinois State products.

(a) When a contract for the purchase of a commodity or product covered by this Act is to be awarded to the lowest responsible bidder, an otherwise qualified bidder who is a small business, medium-sized business, minority-owned business, women-owned business, or who will fulfill the contract through the use of Illinois State products may be given preference over other bidders, as long as (i) the product does not contribute to deforestation or forest degradation and (ii) the cost included in the bid is not more than 10% greater than the cost included in a bid that is not from a small business, medium-sized business, minority-owned business, women-owned business, or fulfilled through the use of Illinois State products.

(b) This Section shall not apply if the head of the contracting State agency purchasing the products determines that giving preference to bidders under this Section:

(1) would be against the public interest;

(2) would increase the cost of the contract by an unreasonable amount; or

(3) would be impracticable because Illinois State products cannot be obtained in sufficient and reasonable available quantities and of satisfactory quality to meet the contracting State agency's requirements.

(c) Nothing in this Section shall be construed to conflict with or otherwise limit the goals and requirements set forth by Article 45 of the Illinois Procurement Code and the Business Enterprise for Minorities, Women, and Persons with Disabilities Act.

(30 ILCS 500/54-13 new)

Sec. 54-13. Rules.

(a) On or before July 1, 2025, the Department of Central Management Services shall adopt rules for the implementation of this Act. The rules shall be developed in consultation with the stakeholder advisory group established under Section 54-9. The rules shall include, but shall not be limited to, all of the following:

(1) Rules establishing a list of forest-risk commodities that are furnished to the State or used by State contractors that are subject to the requirements of this Act, including, but not limited to: beef; cocoa; coffee; leather; palm oil; rubber; soy-based products; and wood and paper products, including lumber, pulp, paper, fuel wood, particle board, and cardboard.

(2) Rules establishing the definition of the term "wholly or in part" designed in a manner to limit the administrative burden of the State while deterring deforestation and forest degradation, including the establishment of phase-out exemptions for products composed in part of forest-risk commodities.

(3) Rules establishing a set of responsible sourcing guidelines and policies derived from best practices in supply chain transparency to the point-of-origin.

(4) Rules establishing guidance to assist contractors in identifying forest-risk commodities in their supply chain, performing necessary due diligence to meet the requirements of this Act, and certifying that the commodity did not contribute to deforestation or forest degradation.

(5) Rules establishing the full set of requirements for a large contractor's forest policy under Section 54-8.

(6) Rules establishing the process through which contractors shall certify to the Department of Central Management Services that they are in compliance with this Act.

(7) Rules establishing an easily accessible system through which members of the public may make complaints and submit information regarding violations of this Act.

(8) Rules establishing an information-sharing system between State agencies purchasing products that are subject to this Act and the Department of Central Management Services regarding contracts involving purchases of hardwoods and forest-risk commodities on or after the effective date of this Act.

(9) Rules establishing any information-sharing systems with external partners implementing regulations comparable to this Act.

(10) Rules establishing ongoing review of and additions to the list as a means to strengthen deforestation-free procurement provisions at a timeline determined by the Department of Central Management Services. When evaluating inclusion of additional commodities in the list, the Director of Central Management Services shall consider the impact of the commodity as a driver of deforestation or forest degradation, the state of existing supply chain transparency and traceability systems for the commodity across all the regions from which it is sourced, and the feasibility of including the commodity in the requirements of Section 54-6. The Department of Central Management Services may consult with the stakeholder advisory group during the list's review and update process. Procedures established in relation to paragraph (j) shall not be made to weaken deforestation-free procurement provisions.

(b) The Director of Central Management Services may establish a voluntary certification process for current or aspiring contractors to be recognized as supplying deforestation-free products as a part of the rulemaking process if the Director of Central Management Services, in consultation with the stakeholder advisory group established under Section 54-9, deems it would be advantageous to the ongoing implementation of this Act. If the Director of Central Management Services, in consultation with the stakeholder advisory group established under Section 54-9, deems it would be advantageous to establish a voluntary certification process for current or aspiring contractors to be recognized as supplying deforestation-free products, certification shall include the following purchase restrictions:

(1) that the certification requirements set forth in this Act shall not apply to a purchase of goods of $2,500 or less; and

(2) that the total amount of goods exempted under paragraph (1) shall not exceed $7,500 per year for each contractor from which a State agency is purchasing goods. It shall be the responsibility of each State agency to monitor the use of this exemption and adhere to these restrictions on these purchases.

(30 ILCS 500/54-14 new)

Sec. 54-14. Assessment.

(a) At any time after the adoption of rules as described in Section 54-13, but no less frequently than every 6 months thereafter, the Director of Central Management Services shall submit to the General Assembly the details of all contracts regulated under this Act. The Director of Central Management Services shall assess the compliance of all or a representative subject of all contracts with the requirements of this Act. Subject to the approval by a majority of members, the General Assembly may:

(1) make recommendations to the Director of Central Management Services regarding changes to the rules implementing this Act; or

(2) make recommendations to the Director of Central Management Services, the Office of the Attorney General, the Office of the State Comptroller, or a contracting State agency regarding deficiencies in contract certifications, violations of this Act, or enforcement actions.

(b) All work products produced under Section 54-6 shall be made available to the public on the website of the Department of Central Management Services.

(30 ILCS 500/54-15 new)

Sec. 54-15. The supply chain transparency assistance program.

(a) As used in this Section, "eligible business" means a small business, medium-sized business, minority-owned business, or woman-owned business seeking to comply with the requirements of this Act.

(b) In partnership with the Business Enterprise Program, the Department of Central Management Services, or both, the stakeholder advisory group established under Section 54-9 of this Act is hereby authorized and directed, within one year after the effective date of this Act, to establish, develop, and issue, within available appropriations, a supply chain transparency assistance program to assist small businesses, medium-sized businesses, and minority-owned and women-owned businesses in achieving supply chains that comply with the requirements of this Act.

(c) The purpose of the program developed under this Section is to compile and share resources that:

(1) help participating eligible businesses with compliance with supply chain related regulations, procurement standards, or contracting requirements established under this Act; and

(2) identify funding streams, grant moneys, financial assistance and other resources that may be available to help participating eligible businesses achieve transparent, traceable, ethical, and sustainable supply chains as it pertains to this Act.

(d) The Business Enterprise Program and the Department of Central Management Services are responsible for publishing the resources compiled by the stakeholder advisory group and facilitating communications between eligible businesses and the stakeholder advisory group.

(30 ILCS 500/54-16 new)

Sec. 54-16. Report. Beginning 2 years after the effective date of this Act and biennially thereafter, the Director of Central Management Services shall issue a report to the State Procurement Task Force, the Governor, and the General Assembly on the implementation of this Act.

(30 ILCS 500/54-17 new)

Sec. 54-17. Applicability.

(a) This Act shall apply to all contracts entered into, extended, or renewed on or after the adoption of rules as described in Section 54-13.

(b) If the Governor or the Director of the Department of Public Health has issued a disaster declaration because of a disaster as defined in Section 4 of the Illinois Emergency Management Act and compliance with all the terms of this Act would be impracticable because critical commodities cannot be obtained in sufficient and reasonable available quantities and of satisfactory quality to meet the contracting State agency's requirements, then the comprehensive requirements of this Act shall be suspended for a period of 60 days beginning the day the disaster declaration, in accordance with which critical commodities regulated by this Act cannot be obtained in sufficient and reasonable available quantities and of satisfactory quality to meet the contracting State agency's requirements.

(b) Ongoing suspension of the comprehensive requirements of this Act for terms beyond the initial 60 days must be formally renewed by the Department of Central Management Services and

(1) must be dependent upon the existence of an ongoing disaster declaration as defined in Section 4 of the Illinois Emergency Management Act, and

(2) a reality where compliance with all of the terms of this Act would be impracticable because critical commodities cannot be obtained in sufficient and reasonable available quantities and of satisfactory quality to meet the contracting State agency's requirements.

Section 99. Effective date. This Act takes effect upon becoming law.".