SB3518 104TH GENERAL ASSEMBLY

LRB104 20326 HLH 33777 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3518

Introduced 2/5/2026, by Sen. Rachel Ventura

SYNOPSIS AS INTRODUCED:

30 ILCS 500/Art. 54 heading new
30 ILCS 500/54-1 new
30 ILCS 500/54-2 new
30 ILCS 500/54-3 new
30 ILCS 500/54-4 new
30 ILCS 500/54-6 new
30 ILCS 500/54-7 new
30 ILCS 500/54-8 new
30 ILCS 500/54-9 new
30 ILCS 500/54-10 new
30 ILCS 500/54-11 new
30 ILCS 500/54-12 new
30 ILCS 500/54-13 new
30 ILCS 500/54-14 new
30 ILCS 500/54-15 new
30 ILCS 500/54-16 new
30 ILCS 500/54-17 new

Amends the Illinois Procurement Code. Creates the Deforestation-Free Illinois Law within the Code. Provides that neither the State nor any State agency shall allow any person having a contract with the State or with a State agency to purchase, at wholesale or retail, or obtain any tropical hardwood or tropical hardwood product for use in completing a contract with the State or with any State agency, subject to certain exceptions. Requires contractors who enter into contracts with the State to certify that the commodity furnished to the State was not extracted from, grown, derived, harvested, reared, or produced on land where deforestation or primary forest and old-growth forest degradation occurred. Effective immediately.

A BILL FOR

AN ACT concerning State government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

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.

(a) 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 have 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, such as enhanced 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 preindustrial 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 the excess carbon emissions since industrialization.

(4) Deforestation and forest degradation generates between 4.3 and 5.5 GtCO2eq annually. This amount 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.

(b) The State should endeavor 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 receives grant moneys from the State or 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) 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 a tree plantation or other agricultural or non-forest land use.

"Forest degradation" means changes to forest structure that results from human intervention and negatively impact species composition or natural ecological functions, as indicated by factors, including reductions in carbon storage and other ecosystem services, abundance of native species, or distribution of trees by age class.

"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 primary forest or old-growth 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, and any other commodity identified as a forest-risk commodity by the State Procurement Task Force in consultation with the Director of Central Management Services in accordance with Section 54-13. "Forest-risk commodity" does not include primary, secondary, or tertiary packaging used for the purpose of containment, protection, handling, delivery, transport, distribution, or presentation of a covered product, nor does it include a product made entirely from recycled or reused material, including recovered fiber. For any product made partially from recovered or reused material, the contractor must confirm only that the components that were not derived from recycled or reused materials were not extracted from, grown, derived, harvested, reared, or produced on land where deforestation or primary forest or old-growth forest degradation occurred upon the issuance of rules as described in Section 54-13.

"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.

"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.

"Old-growth forest" means a forest ecosystem distinguished by old trees and related structural attributes, encompassing the later stages of stand development that typically differ from earlier stages in a variety of characteristics, which may include advanced tree size, accumulations of large dead woody material, multiple canopy layers, later successional species composition, and ecosystem function. In the United States, the attributes of old-growth forests vary depending on forest type, geography and history, but typically contain trees over 120 years of age and least 40 centimeters in diameter.

"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.

"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 meaning given to that term in Section 45-45.

"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, brazilian cherry);

(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" does not include wood grown in a tree plantation.

"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 Article's effectiveness at preventing deforestation and primary forest and old-growth 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 Code, on and after January 1, 2028, neither the State nor any State agency shall allow any person having a contract with the State or with a State agency to purchase, at wholesale or retail, or obtain any tropical hardwood or tropical hardwood product for use in completing a contract with the State or with any State agency.

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

(1) any binding contractual obligation for the purchase of commodities entered into before the adoption of rules under 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.

(c) Tropical hardwood or tropical hardwood products sourced via a small-scale harvesting operation by indigenous communities on their traditional lands, may be exempted from this Section and Section 54-6 if the extraction rates are demonstrated to be ecologically sustainable. Any exemptions and associated justifications under this subsection (c) shall be posted publicly on the Illinois eProcurement BidBuy website.

(30 ILCS 500/54-6 new)

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

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

(b) Two years after the adoption of rules under Section 54-13 of this Article, 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 primary forest or old-growth 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.

(c) 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, contract, or instruction.

(30 ILCS 500/54-7 new)

Sec. 54-7. Compliance.

(a) Every bid and resulting contract award 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 of this Article.

(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 Article.

(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 Article:

(1) procedures for identifying and mitigating the risk of deforestation and primary forest and old-growth forest degradation in forest-risk commodity supply chains; and

(2) procedures to ensure compliance with source country laws regarding forest-risk commodity supply chains and respect for national and international human rights standards, including recognized rights of indigenous peoples and local communities; the principle of Free, Prior and Informed Consent; the rights and safety of local environmental and human rights defenders; and the rights of workers.

The forest policy shall be published on the bid in addition to information demonstrating implementation of the policy, disaggregated by product and updated at least annually, as well as publicly on the Illinois eProcurement BidBuy website when a large contractor has received a contract award.

(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 Article, including during the investigation of violations as outlined in Section 54-11, the State Procurement Task Force shall consult with a stakeholder advisory group and the Director of Central Management Services on the adoption of rules for the implementation of this Article. 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 Article.

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

(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 made, 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 within a timeframe established by the Department of Central Management Services and the Capital Development Board, 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 made, 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 54-7 shall 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. In that case, the sanctions described under subsection (a) shall instead be imposed on 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 Article 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, if 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 consult 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) If a contract for the purchase of a commodity or product covered by this Article 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 primary forest or old-growth 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 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 or 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, 2026, the Department of Central Management Services shall adopt rules for the implementation of this Article. The rules shall be developed in consultation with the stakeholder advisory group established under Section 54-9 and shall allow for public input. The rules shall include, but shall not be limited to, all of the following:

(1) Rules establishing a list of products that are made in whole or in part from forest-risk commodities that are furnished to the State or used by State contractors and that are subject to the requirements of this Article, designed in a manner to limit the administrative burden of the State while deterring deforestation and primary forest and old-growth forest degradation.

(2) Rules establishing what certifications or other standards are sufficient or necessary for contractors to supply products that meet the requirements of this Article.

(3) Rules establishing review of and additions to the list of covered forest-risk commodities and products made in whole or in part of those forest-risk commodities, which shall occur no less often than every 2 years. When evaluating the inclusion of additional commodities in the list, the State Procurement Task Force, in consultation with a stakeholder advisory group and the Director of Central Management Services, shall consider (i) the impact of the commodity as a driver of deforestation or primary forest or old-growth forest degradation, (ii) the state of existing supply chain transparency and traceability systems for the commodity across all the regions from which it is sourced, and (iii) the feasibility of including the commodity in the requirements of Section 54-6. Rules adopted under this item (3) shall not be made to weaken existing deforestation-free procurement provisions. The first review of the list of covered forest-risk commodities shall include, but not be limited to, the addition of palm oil, coffee, avocados, and all wood products, including pulp and paper, that are not currently covered by the regulation.

(4) Rules establishing guidance to assist contractors in identifying covered forest-risk commodities supplied to the State, performing necessary risk-based supply chain due diligence to meet the requirements of this Division, and certifying that the commodity did not contribute to deforestation or primary forest or old-growth forest degradation. For any product made wholly or in part of beef that was produced on land in a country where the production of beef is not a direct cause of deforestation or primary or old growth forest degradation, according to scientific assessments of recent land use trends, the contractor shall be required only to demonstrate that the beef originated in that country.

(5) Rules establishing the full set of requirements for a large contractor's forest policy under Section 54-8, including parameters around what information must be publicly disclosed in compliance with the regulations of this Article.

(6) Rules establishing a process to ensure that details of certified contracts are made available for public inspection on the website of the Department of Central Management Services after approval of the contract, including the specific covered products included in the contract and the basis for its certification.

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

(8) Rules establishing an information-sharing system between State Agencies purchasing products subject to the regulations under this Article and the Department of Central Management Services regarding contracts involving purchases of tropical hardwoods and forest-risk commodities after the effective date of this Article.

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

(10) Rules detailing information provided in accordance with Section 54-17.

(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 Article. 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 Article 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. All work products produced under Section 54-6 shall be made available to the public on the Illinois eProcurement BidBuy website.

(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 Article.

(b) In partnership with the Chief Procurement Officer for General Services, the Business Enterprise Program, and the Department of Central Management Services, the stakeholder advisory group established under Section 54-9 of this Article is hereby authorized and directed, within one year after the effective date of this amendatory Act of the 104th General Assembly, 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 Article.

(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 Article; 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 Article.

(d) The Chief Procurement Officer for General Services, the Business Enterprise Program, and the Department of Central Management Services are responsible for publishing the resources compiled by this Article 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 amendatory Act of the 104th General Assembly and biennially thereafter, the Director of Central Management Services and the Director of the Capital Development Board shall issue a report to the State Procurement Task Force, the Governor, and the General Assembly on the implementation of this Article.

(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 Article 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 Article shall be suspended for a period of 60 days beginning the day the disaster declaration, in accordance with which critical commodities regulated by this Article 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 Article 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 Article 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.