Illinois General Assembly - Full Text of HB5117
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Full Text of HB5117  103rd General Assembly

HB5117 103RD GENERAL ASSEMBLY

 


 
103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5117

 

Introduced 2/8/2024, by Rep. Daniel Didech

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Deforestation-Free Procurement Act. Prohibits the State and any governmental agency, political subdivision, or public benefit corporation of the State from purchasing or obtaining for any purpose any tropical hardwoods or tropical hardwood products. Prohibits a 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 and any government agency, political subdivision, or public benefit corporation of the State from requiring or permitting the use of any tropical hardwood or tropical wood product. Provides that every contract entered into by a State agency or authority that includes the procurement of any product comprised of a tropical 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 tropical or boreal deforestation or primary forest degradation occurred on or after January 1, 2022. Sets forth forest policies that large contractors must adopt. Provides for sanctions against a contractor or subcontractor who violates the Act. Requires the Department of Central Management Services to adopt rules to implement the Act. Requires the Director of the Department to submit an assessment to the General Assembly regarding the details of all contracts certified under the Act. Requires the Environmental Protection Agency to complete a study to determine whether the requirements of the Act shall apply to tropical forest-risk commodities originating in boreal forests. Requires the Director to issue a report every 2 years on the implementation of the Act. Makes other changes. Effective immediately.


LRB103 37077 JAG 67195 b

 

 

A BILL FOR

 

HB5117LRB103 37077 JAG 67195 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Deforestation-Free Procurement Act.
 
6    Section 5. Legislative findings. The General Assembly
7finds and declares the following:
8        (1) Tropical forests cover roughly 7% of Earth's
9    surface, but harbor close to 50% of all species on Earth.
10        (2) Boreal forests represent about 30% of the global
11    forest area, help regulate the climate through the
12    exchange of energy and water, and are a large reservoir of
13    biogenic carbon.
14        (3) It has been estimated that at least 30% of the
15    world's greenhouse gas emissions come from deforestation
16    and forest degradation. Taking into account carbon
17    sequestration potential, experts estimate that stopping
18    the loss of tropical forests, mangroves, and wetlands will
19    achieve over 20% of climate mitigation by 2030.
 
20    Section 10. Definitions. As used in this Section:
21    "Boreal countries" include Russia, Canada, the United
22States, Finland, Sweden, Norway, Iceland, China, and Japan.

 

 

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1    "Boreal forest" means a forest growing in high-latitude
2environments where freezing temperatures occur for 6 to 8
3months and in which trees are capable of reaching a minimum
4height of 5 meters and a canopy cover of 10%.
5    "Contractor" means any person or entity that has a
6contract with a State agency or authority for public works or
7improvements to be performed, for a franchise, concession, or
8lease of property, for grant moneys or goods and services or
9supplies to be purchased at the expense of the State agency or
10authority or to be paid out of moneys deposited into the State
11treasury or out of trust moneys under the control of or
12collected by the State agency or authority.
13    "Deforestation" means direct human-induced conversion of
14tropical or boreal forests to agriculture, a tree plantation,
15or other nonforest land use.
16    "Forest-risk commodity" means any commodity and its
17derived products, including agricultural and nonagricultural
18commodities but excluding tropical hardwood and tropical wood
19products, whether in raw or processed form, that commodity is
20commonly extracted from or grown, derived, harvested, reared,
21or produced on land where tropical or boreal deforestation or
22intact forest degradation has occurred or is likely to occur.
23"Forest-risk commodity" includes palm oil, soy, beef, coffee,
24leather, wood pulp, paper, logs, lumber, and any additional
25commodities identified as such by the Director of Central
26Management Services by rule. "Tropical forest-risk commodity"

 

 

HB5117- 3 -LRB103 37077 JAG 67195 b

1does not include wood pulp or paper made entirely from
2recovered fiber.
3    "Forest-risk commodity" means any commodity and its
4derived products, including agricultural and nonagricultural
5commodities but excluding tropical hardwood and tropical wood
6products, whether in raw or processed form, that commodity is
7commonly extracted from or grown, derived, harvested, reared,
8or produced on land where tropical or boreal deforestation or
9intact forest degradation has occurred or is likely to occur.
10"Tropical forest-risk commodity" includes palm oil, soy, beef,
11coffee, leather, wood pulp, paper, logs, lumber, and any
12additional commodities identified as such by the Director of
13Central Management Services by rule. "Tropical forest-risk
14commodity" does not include wood pulp or paper made entirely
15from recovered fiber.
16    "Free, prior, and informed consent" means the principle
17that a community has the right to give or withhold its consent
18to proposed developments that may affect the land and waters
19it legally or customarily owns, occupies, or otherwise uses,
20as described in the United Nations Declaration on the Rights
21of Indigenous Peoples, the Indigenous and Tribal Peoples
22Convention of 1989, and other international instruments.
23"Free, prior, and informed consent" also means informed,
24noncoercive negotiations between investors, companies, or
25governments and indigenous peoples and local communities prior
26to project development.

 

 

HB5117- 4 -LRB103 37077 JAG 67195 b

1    "Illinois State Product" means products that are grown,
2harvested, or produced in this State or processed inside or
3outside this State comprising over 51% raw materials grown,
4harvested, or produced in this State, by weight or volume.
5    "Intact forest" means a forest that has never been
6industrially logged and has developed following natural
7disturbances and under natural processes, regardless of its
8age. "Intact forest" includes a forest that has experienced
9nonindustrial-scale human impacts, including traditional or
10subsistence activities carried out by indigenous communities.
11    "Intact forest degradation" means severe and sustained
12degradation of a tropical or boreal forest resulting in
13significant intact forest loss or a profound change in species
14composition, structure, or ecological function of that forest.
15    "Large contractor" means any contractor whose annual
16revenue, or that of its parent company, is equal to or greater
17than $100,000,000.
18    "Medium-sized business" means a business that operates in
19this State, is independently owned and operated, not dominant
20in its field, and employs between 100 and 500 persons.
21    "Minority-owned business" has the meaning given to that
22term in Section 2 of the Business Enterprise for Minorities,
23Women, and Persons with Disabilities Act.
24    "Peat" means a soil that is rich in organic matter
25composed of partially decomposed plant materials equal to or
26greater than 40 centimeters of the top 100 centimeters of the

 

 

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1soil.
2    "Peatlands" means wetlands with a layer of peat made up of
3dead and decaying plant material. "Peatlands" includes moors,
4bogs, mires, peat swamp forests, and permafrost tundra.
5    "Point-of-origin" means the geographic location, as
6identified by the smallest administrative unit of land, where
7a commodity was grown, derived, harvested, reared, or
8produced.
9    "Recovered fiber" means postconsumer fiber such as paper,
10paperboard, and fibrous materials from retail stores, office
11buildings, and homes, after having passed through their end
12usage, including used corrugated boxes, old newspapers, old
13magazines, mixed waste paper, tabulating cards, and used
14cordage, and all paper, paperboard, and fibrous materials that
15enter and are collected from municipal solid waste, and
16manufacturing wastes such as dry paper and paperboard waste
17generated after completion of the papermaking process,
18including envelope cuttings, bindery trimmings, and other
19paper and paperboard waste resulting from printing, cutting,
20forming, and other converting operations, bag, box, and carton
21manufacturing wastes, and butt rolls, mill wrappers, and
22rejected unused stock, and repulped finished paper and
23paperboard from obsolete inventories of paper and paperboard
24manufacturers, merchants, wholesalers, dealers, printers,
25converters, and others.
26    "Secondary material" means any material recovered from or

 

 

HB5117- 6 -LRB103 37077 JAG 67195 b

1otherwise destined for the wastestream, including, but not
2limited to, post-consumer material, industrial scrap material
3and overstock or obsolete inventories from distributors,
4wholesalers and other companies but such term does not include
5those materials and by-products generated from, and commonly
6reused within, an original manufacturing process.
7    "Small business" has the meaning given to that term in
8Section 45-45 of the Illinois Procurement Code.
9    "Tropical hardwood" means any and all hardwood,
10scientifically classified as angiosperm, that grows in any
11tropical forest. "Tropical hardwood" shall include but shall
12not be limited to the following species:
13        (1) Prunus Africana (African cherry, red stinkwood)
14        (2) Caryocar Costaricense (garlic tree)
15        (3) Calophyllum species (bintangor)
16        (4) Cedrela species (cedar, Spanish cedar, South
17    American cedar)
18        (5) Neobalanocarpus Heimii (chengal)
19        (6) Octomeles Sumatrana (Benuang)
20        (7) Myroxylon Balsamum (balsamo)
21        (8) Apuleia Leiocarpa (garapa)
22        (9) Parastemon Urophyllus (malas)
23        (10) Spicatus Ridley Hopea species (merawan)
24        (11) Araucaria Araucana (monkey puzzle, Chilean pine)
25        (12) Senna Siamea (Siamese cassia)
26        (13) Pometia Pinnata (taun)

 

 

HB5117- 7 -LRB103 37077 JAG 67195 b

1        (14) Millettia Leucantha, Millettia Stuhlmannii,
2    Millettia Laurentii (sathon, panga panga, wenge)
3        (15) Bulnesia Arborea, Bulnesia Sarmientoi (verawood,
4    Argentine lignum vitae)
5        (16) Tristaniopsis Laurina (water gum)
6        (17) Terminalia species (limba, afara, ofram, idigbo,
7    framire, black afara, amarillo, nargusta)
8        (18) Homalium Foetidum (malas)
9        (19) Dillenia Papuana (dillenia)
10        (20) Canarium species (red canarium, grey canarium)
11        (21) Burkrella Macropoda (rang rang)
12        (22) Dracontomelon Dao (New Guinea walnut)
13        (23) Planchonella species (white planchonella, red
14    planchonella)
15        (24) Lophopetalum species (perupok)
16        (25) Cariniana Pyriformis (Colombian mahogany, abarco,
17    jequitiba)
18        (26) Mitragyna Ciliata (abura)
19        (27) Vouacapoua Americana (acapu)
20        (28) Amburana Cearensis (amburana, cerejeira, cumare)
21        (29) Lovoa species (African walnut, tigerwood)
22        (30) Pericopsis Elata (afrormosia)
23        (31) Peltogyne species (amaranth, purpleheart)
24        (32) Pterogyne Nitens (amendoim)
25        (33) Carapa Guianensis, Dicorynia Guianensis, Bagassa
26    Guianensis, Couratari Guianensis (andiroba, angelique,

 

 

HB5117- 8 -LRB103 37077 JAG 67195 b

1    tatajuba, bagasse)
2        (34) Aningeria species (aningeria, anegre, anigre)
3        (35) Dipterocarpus species (apitong, keruing)
4        (36) Centrolobium species (arariba)
5        (37) Brosimum Utile, Brosimum Alicastrum (baco,
6    breadnut)
7        (38) Ochroma Lagopus, Ochroma Pyramidale (balsa)
8        (39) Berlinia species (berlinia, rose zebrano)
9        (40) Symphonia Globulifera (boarwood)
10        (41) Detarium Senegalense (boire)
11        (42) Caesalpinia Echinata, Paubrasilia Echinata
12    (Brazilwood, pernambuco)
13        (43) Bertholletia Excelsa (Brazil nut, mora)
14        (44) Guibourtia species (bubinga, African rosewood,
15    kevazingo, amazique)
16        (45) Toona Calantas (calantas)
17        (46) Prioria copaifera (cativo)
18        (47) Ceiba Pentandra (ceiba)
19        (48) Antiaris africana (chechen, antiaris)
20        (49) Tabebuia Donnell-Smithii (copal)
21        (50) Daniellia species (daniellia)
22        (51) Cordia species (cordia wood, bocote, ziricote,
23    louro, freijo)
24        (52) Hymenaea Courbaril (courbaril, West Indian
25    locust)
26        (53) Dipteryx Odorata (cumaru, Brazilian teak)

 

 

HB5117- 9 -LRB103 37077 JAG 67195 b

1        (54) Piptadeniastrum Africanum (dahoma)
2        (55) Calycophyllum Candidissimum (dagame, lemonwood)
3        (56) Afzelia species (doussie)
4        (57) Diospyros species (ebony, ceylon ebony,
5    marblewood)
6        (58) Lophira Alata (ekki, azobe, red ironwood)
7        (59) Combretodendron Macrocarpum (esia)
8        (60) Chlorophora Tinctoria, Chlorophora Excelsa
9    (fustic, iroko, African teak)
10        (61) Aucoumea Klaineana (gaboon, okoume)
11        (62) Astronium species (goncalo alves, tigerwood)
12        (63) Ocotea Rodiei (greenheart)
13        (64) Enterolobium Cyclocarpum (guanacaste,
14    elephant-ear tree)
15        (65) Guarea species (guarea, bosse)
16        (66) Phoebe Porosa (imbuia, Brazilian walnut)
17        (67) Handroanthus species (ipe, pau d'arco, lapacho)
18        (68) Jacaranda Copaia (jacaranda)
19        (69) Machaerium Villosum (jacaranda pardo)
20        (70) Dyera Costulata (jelutong)
21        (71) Dryobalanops species (kapur, keladan)
22        (72) Koompassia Malaccensis (kempas)
23        (73) Acacia Koa (koa)
24        (74) Pterygota Macrocarpa (koto, African pterygota)
25        (75) Oxandra Lanceolata (lancewood)
26        (76) Shorea species (lauan, luan, lawaan, meranti,

 

 

HB5117- 10 -LRB103 37077 JAG 67195 b

1    seraya, Philippine mahogany, balau)
2        (77) Nothofagus Pumilio, Nothofagus Obliqua (lenga
3    beech, roble)
4        (78) Guaiacum Officinale (roughbark lignum-vitae)
5        (79) Aniba Rosaeodora, Aniba Duckei (pau rosa)
6        (80) Nectandra species (louro preto)
7        (81) Khaya species (African mahogany)
8        (82) Swietenia species (mahogany, West Indian
9    mahogany, Honduran mahogany, Cuban mahogany, big-leaf
10    mahogany)
11        (83) Tieghemella Heckelii (makora)
12        (84) Intsia Bijuga, Intsia Palembanica (Borneo teak,
13    merbau)
14        (85) Anisoptera species (mersawa, krabak, palosapis)
15        (86) Distemonanthus Benthamianus (movingui, ayan)
16        (87) Pterocarpus species (narra, amboyna, Papua New
17    Guinea rosewood, mukula, kosso, zitan, hongmu, padauk,
18    vermillion wood)
19        (88) Palaquium species (nyatoh)
20        (89) Triplochiton Scleroxylon (African whitewood,
21    obeche, sambawawa)
22        (90) Nauclea Diderrichii (opepe)
23        (91) Balfourodendron Riedelianum (marfim)
24        (92) Aspidosperma species (peroba rosa)
25        (93) Paratecoma Peroba (peroba branca)
26        (94) Gonystylus species (ramin)

 

 

HB5117- 11 -LRB103 37077 JAG 67195 b

1        (95) Melanorrhoea Curtisii (rengas, Borneo rosewood)
2        (96) Hevea Brasiliensis (rubber tree)
3        (97) Dalbergia species (rosewood, Indian rosewood,
4    Honduras rosewood, cocobolo, granadillo, pinkwood,
5    tulipwood, African blackwood)
6        (98) Entandrophragma cylindricum, Entandrophragma
7    Candollei, Entandrophragma Utile (sapele, sapelli, kosipo,
8    omu, utile, sipo)
9        (99) Acanthopanax Ricinofolius (sen)
10        (100) Brosimum Aubletti, Piratinera (snakewood,
11    letterwood, leopardwood)
12        (101) Juglans species (South American walnut, Peruvian
13    walnut)
14        (102) Sterculia Rhinopetalia (sterculia)
15        (103) Tectona Grandis (teak)
16        (104) Virola species (virola, cumala)
17        (105) Pentacme Contorta (white lauan)
18        (106) Microberlinia species (zebrawood, zingana)
19    "Tropical forest" a natural ecosystem within the tropical
20regions, approximately bounded geographically by the tropics
21of Cancer and Capricorn, but possibly affected by other
22factors such as prevailing winds, containing native species
23composition, structure, and ecological function, with a tree
24canopy cover of more than 10% over an area of at least 0.5
25hectares. "Tropical forest" includes all of the following: (i)
26human-managed tropical forests or partially degraded tropical

 

 

HB5117- 12 -LRB103 37077 JAG 67195 b

1forests that are regenerating; and (ii) tropical forests
2identified by multi-objective conservation-based assessment
3methodologies, such as High Conservation Value areas (HCV), as
4defined by the HCV Resource Network, or High Carbon Stock
5Forests, as defined by the High Carbon Stock Approach, or by
6another methodology with equivalent or higher standards that
7includes primary forests and tropical peatlands of any depth.
8"Tropical forest" does not include plantations of any type.
9        (1) human-managed tropical forests or partially
10    degraded tropical forests that are regenerating; and
11        (2) forests identified by multiobjective conservation
12    based assessment methodologies, such as high conservation
13    value areas, as defined by the High Conservation Value
14    Resource Network, or high carbon stock forests, as defined
15    by the High Carbon Stock Approach, or by another
16    methodology with equivalent or higher standards that
17    includes primary forests and peatlands of any depth.
18    "Tropical hardwood product" means any wood product,
19wholesale or retail, in any form, including, but not limited
20to, plywood, veneer, furniture, cabinets, paneling, siding,
21moldings, doors, doorskins, joinery, flooring, or sawnwood,
22which are composed, in whole or in part, of tropical hardwood.
23    "Tropical peatland" means wetlands with a layer of peat
24made up of dead and decaying plant material. "Tropical
25peatland" includes moors, bogs, mires, and peat swamp forests.
26"Tropical forest" does not include plantations of any type.

 

 

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1    "Women-owned business" has the meaning given to that term
2in Section 2 of the Business Enterprise for Minorities, Women,
3and Persons with Disabilities Act.
 
4    Section 15. Purchase of tropical hardwoods prohibited.
5    (a) Except as otherwise provided, the State and any
6governmental agency, political subdivision, or public benefit
7corporation of the State shall not purchase or obtain for any
8purpose any tropical hardwoods or tropical hardwood products,
9wholesale or in retail, in any form.
10    (b) Subsection (a) shall not apply to:
11        (1) any binding contractual obligations for purchase
12    of commodities entered into prior to September 1, 2024; or
13        (2) any grant, subvention, or contract with an agency
14    of the United States or instruction of an authorized
15    representative of any such agency if the inclusion or
16    application of such provisions violate or are inconsistent
17    with the terms or conditions of the grant, subvention,
18    contract, or instruction.
 
19    Section 20. Use of tropical hardwood or wood product
20prohibited.
21    (a) No bid proposal or solicitation, request for bid or
22proposal, or contract for the construction of any public work,
23building maintenance, or improvement for or on behalf of the
24State and any government agency, political subdivision, or

 

 

HB5117- 14 -LRB103 37077 JAG 67195 b

1public benefit corporation of the State shall require or
2permit the use of any tropical hardwood or tropical wood
3product.
4    (b) Every bid proposal, solicitation, request for bid or
5proposal, and contract for the construction of any public
6work, building maintenance, or improvement shall contain a
7statement that any bid, proposal, or other response to a
8solicitation for bid or proposal which proposes or calls for
9the use of any tropical hardwood or tropical wood product in
10performance of the contract shall be void.
11    (c) Subsections (a) and (b) shall not apply to:
12        (1) to bid packages advertised and made available to
13    the public or any competitive and sealed bids received or
14    entered into prior to September 1, 2024;
15        (2) to any amendment, modification, or renewal of a
16    contract, which contract was entered into prior to
17    September 1, 2024, where such application would delay
18    timely completion of a project or involve an increase in
19    the total monies to be paid under that contract; or
20        (3) to any grant, subvention, or contract with any
21    agency of the United States or instruction of an
22    authorized representative of any such agency if the
23    contracting officer finds that the inclusion or
24    application of such provisions violate or are inconsistent
25    with the terms or conditions of a grant, subvention,
26    contract, or instruction.
 

 

 

HB5117- 15 -LRB103 37077 JAG 67195 b

1    Section 25. Forest-risk commodity procurement.
2    (a) Every contract entered into by a State agency or
3authority that includes the procurement of any product
4comprised, in whole or in part, of a forest-risk commodity
5shall require the contractor to confirm that the commodity
6furnished to the State under the contract was not extracted
7from, grown, derived, harvested, reared, or produced on land
8where tropical or boreal deforestation or intact forest
9degradation occurred on or after January 1, 2022. The
10contractor shall agree to comply with this provision of the
11contract.
12    (b) This Section shall not apply to any grant, subvention,
13or contract with an agency of the United States or instruction
14of an authorized representative of any such agency if the
15inclusion or application of such provisions violate or are
16inconsistent with the terms or conditions of the grant,
17subvention, contract, or instruction.
 
18    Section 30. Compliance.
19    (a) Every contract shall specify that the contractor is
20required to cooperate fully in providing reasonable access to
21the contractor's records, documents, agents, employees, or
22premises if reasonably required by authorized officials of the
23contracting State agency or authority, the Department of
24Central Management Services, the Office of the Attorney

 

 

HB5117- 16 -LRB103 37077 JAG 67195 b

1General, or the Environmental Protection Agency to determine
2the contractor's compliance with the requirements under
3Section 25.
4    (b) Contractors shall exercise due diligence in ensuring
5that their subcontractors comply with the requirements under
6Section 35. Contractors shall require each subcontractor to
7certify that the subcontractor is in compliance with the
8requirements under Section 25.
 
9    Section 35. Required forest policies. In addition to the
10requirements of Sections 25 and 30, large contractors subject
11to Section 25 must confirm that they have adopted a forest
12policy that complies with rules issued under paragraph (6) of
13Section 70. The adoption of forest policy by a contractor,
14subcontractor, or supplier that is not a large contractor is
15not required to comply with this Section but may be used to
16demonstrate compliance with Section 25. Such forest policy and
17all corresponding data shall be made publicly available, and
18shall contain, at a minimum, all of the following:
19        (1) due diligence measures on the point-of-origin of
20    forest-risk commodities and ensures compliance with the
21    policy where supply chain risks are present;
22        (2) data detailing the complete list of direct and
23    indirect suppliers and supply chain traceability
24    information, including refineries, processing plants,
25    farms, and plantations, and their respective owners,

 

 

HB5117- 17 -LRB103 37077 JAG 67195 b

1    parent companies, and farmers, maps, and geolocations, for
2    each forest-risk commodity found in products that may be
3    furnished to the State;
4        (3) measures taken to ensure the product does not
5    contribute to tropical or boreal deforestation or primary
6    forest degradation, including:
7            (A) no development in tropical or boreal primary
8        forests;
9            (B) no origination from a site where commodity
10        production has replaced tropical or boreal primary
11        forests after January 1, 2023;"
12            (C) no development of high carbon stock forests;
13            (D) no development of high conservation value
14        areas;
15            (E) no burning;
16            (F) efforts to ensure progressive reductions of
17        greenhouse gas emissions on existing plantations;
18            (G) no development of peat, regardless of depth;
19            (H) best management practices for existing
20        plantations on peat; and
21            (I) where feasible, activities oriented toward
22        peat restoration;
23        (4) measures taken to prevent exploitation and redress
24    grievances of workers and local communities, including:
25            (A) respect for and recognition of the rights of
26        all workers including contract, temporary, and migrant

 

 

HB5117- 18 -LRB103 37077 JAG 67195 b

1        workers;
2            (B) respect for and recognition of land tenure
3        rights of communities;
4            (C) respect for the rights of indigenous and local
5        communities to give or withhold their free, prior, and
6        informed consent to operations on lands to which they
7        hold legal, communal, or customary rights;
8            (D) explicit policies and processes to prevent
9        violence, intimidation, and coercion of workers and
10        local communities; and
11            (E) formal, open, transparent, and consultative
12        processes to address all complaints and conflicts;
13        (5) measures taken to protect biodiversity and prevent
14    the poaching of endangered species in all operations and
15    adjacent areas;
16        (6) measures taken to ensure compliance with the laws
17    of countries where forest-risk commodities in a company's
18    supply chain were produced; and
19        (7) measures to deter violence, threats, and
20    harassment against environmental human rights defenders
21    (EHRDs), including respecting internationally recognized
22    human rights standards, and educating employees,
23    contractors, and partners on the rights of EHRDs to
24    express their views, conduct peaceful protests, and
25    criticize practices without intimidation or retaliation.
 

 

 

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1    Section 40. Violations and sanctions.
2    (a) If it is determined that any contractor contracting
3with the State knew or should have known that a product
4comprising, in whole or in part, of a forest-risk commodity
5was furnished to the State in violation of Sections 25 and 30,
6the contracting State agency or authority shall issue a
7written notice of violation and provide an opportunity for
8such contractor to come into compliance. If, after such
9notice, a contractor fails to come into compliance within a
10time established by the Department of Central Management
11Services, such contractor may have either or both of the
12following sanctions imposed:
13        (1) the contract under which the prohibited
14    forest-risk commodity was furnished may be voided at the
15    option of the State agency or authority to which the
16    commodity was furnished; or
17        (2) the contractor may be assessed a penalty that
18    shall be the greater of $1,000 or an amount equaling 20% of
19    the value of the product that the State agency or
20    authority demonstrates was comprised, in whole or in part,
21    of a forest-risk commodity and furnished to the State in
22    violation of Sections 25 and 30.
23    A hearing or opportunity to be heard shall be provided
24prior to the assessment of any penalty.
25    (b) Notwithstanding subsection (a), a contractor that has
26complied with the Section 30 shall not be subject to sanctions

 

 

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1for violations, of which the contractor had no knowledge of
2the requirements of Sections 25 and 30, that were committed
3solely by a subcontractor. Sanctions described under
4subsection (a) shall instead be imposed against the
5subcontractor that committed the violation.
 
6    Section 45. Investigations of violations.
7    (a) Any State agency or authority that investigates a
8complaint against a contractor or subcontractor for violation
9of this Act may limit its investigation to evaluating the
10information provided by the person or entity submitting the
11complaint and the information provided by the contractor or
12subcontractor.
13    (b) Whenever a contracting officer of the contracting
14State agency or authority has reason to believe that the
15contractor failed to comply with Sections 25 and 30, the State
16agency or authority shall refer the matter for investigation
17to the head of the State agency or authority and, as the head
18of the State agency or authority determines appropriate, to
19either the Department of Central Management Services, the
20Office of the Attorney General, or the Environmental
21Protection Agency.
 
22    Section 50. Preference.
23    (a) When a State agency's or authority's contract for the
24purchase of a commodity or product covered by this Act is to be

 

 

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1awarded to the lowest responsible bidder, an otherwise
2qualified bidder who is a small business or medium-sized
3business or a minority-owned business or women-owned business,
4or who will fulfill the contract through the use of Illinois
5State products may be given preference over other bidders, as
6long as the cost included in the bid is not more than 10%
7greater than the cost included in a bid that is not from a
8small business or medium-sized business or a minority-owned
9business or women-owned business or fulfilled through the use
10of Illinois State products.
11    (b) This Section shall not apply if the head of the
12contracting State agency or authority purchasing such
13products, in his or her sole discretion, determines that
14giving preference to bidders under this Section:
15        (1) would be against the public interest;
16        (2) would increase the cost of the contract by an
17    unreasonable amount; or
18        (3) if Illinois State products cannot be obtained in
19    sufficient and reasonable available quantities and of
20    satisfactory quality to meet the contracting State
21    agency's or authority's requirements.
22    (c) Nothing in this Section shall be construed to conflict
23with or otherwise limit the goals and requirements set forth
24by Article 45 of the Illinois Procurement Code and the
25Business Enterprise for Minorities, Women, and Persons with
26Disabilities Act.
 

 

 

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1    Section 55. Purchase restrictions.
2    (a) The certification requirements set forth in this
3Section shall not apply to a purchase of goods of $2,500 or
4less.
5    (b) The total amount of goods exempted under subsection
6(a) shall not exceed $7,500 per year for each contractor from
7which a State agency or authority is purchasing goods. It
8shall be the responsibility of each State agency or authority
9to monitor the use of this exemption and adhere to these
10restrictions on these purchases.
 
11    Section 60. Voluntary certification process. The Director
12of Central Management Services shall establish a voluntary
13certification process for current or aspiring contractors to
14be recognized as supplying deforestation-free products which
15shall be consulted on the creation of requirements outlined by
16the rules in this Act, and shall exercise an oversight role
17under Section 65.
 
18    Section 65. Rules. On or before July 1, 2024, the
19Department of Central Management Services shall issue rules
20for the implementation of this Act. The rules shall be
21developed in consultation with the Director of the
22Environmental Protection Agency. The rules shall include, but
23not be limited to, all of the following:

 

 

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1        (1) a list of forest-risk commodities subject to the
2    requirements of this Act, including, but not limited to,
3    palm oil, soy, beef, coffee, leather, wood pulp, paper,
4    logs, and lumber. The list shall be reviewed and updated
5    at least every 3 years. When evaluating inclusion of
6    additional commodities in the list, the Director of
7    Central Management Services shall consider the impact of
8    the commodity as a driver of tropical or boreal
9    deforestation or primary forest degradation, the state of
10    existing supply chain transparency and traceability
11    systems for the commodity, and the feasibility of
12    including the commodity in the requirements of Section 25.
13    The first review shall include, but not be limited to, the
14    evaluation of cocoa, rubber, leather, and other
15    cattle-derived products;
16        (2) a list of products derived, in whole or in part,
17    from forest-risk commodities;
18        (3) a list of products furnished to the State or used
19    by State contractors in high-volume purchases that contain
20    or are comprised in whole or in part of forest-risk
21    commodities;
22        (4) a set of responsible sourcing guidelines and
23    policies derived from best practices in supply chain
24    transparency to the point-of-origin;
25        (5) guidance to assist contractors in identifying
26    forest-risk commodities in their supply chain, performing

 

 

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1    necessary due diligence to meet the requirements of this
2    Act, and certifying that the commodity did not contribute
3    to tropical or boreal deforestation or primary forest
4    degradation;
5        (6) the full set of requirements for a large
6    contractor's forest policy under Section 35;
7        (7) the process through which contractors shall
8    certify to the Department of Central Management Services
9    that they are in compliance with Sections 25 and 30;
10        (8) a process for ensuring that details of certified
11    contracts are made available for public inspection of the
12    website of the Department of Central Management Services;
13    and
14        (9) an easily accessible procedure to receive public
15    complaints and information regarding violations of this
16    Act.
 
17    Section 70. Assessment.
18    (a) At any time after January 1, 2025, but no less
19frequently than every 6 months thereafter, the Director of
20Central Management Services shall submit to the General
21Assembly the details of all contracts certified under this
22Act. The Director of Central Management Services shall assess
23the compliance of all or a representative subset of all
24contracts with the requirements of this Act. Following such
25assessment, and subject to approval by a majority of members,

 

 

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1the General Assembly may:
2        (1) make recommendations to the Director of Central
3    Management Services regarding changes to the rules
4    implementing this Act; or
5        (2) make recommendations to the Director of Central
6    Management Services, the Office of the Attorney General,
7    the Office of the State Comptroller, or a contracting
8    State agency or authority regarding deficiencies in
9    contract certifications, violations of this Act, or
10    enforcement actions.
11    (b) All work products produced under Section 25 shall be
12made available to the public on the website of the Department
13of Central Management Services.
14    (c) In completing a study under Section 80, the
15Environmental Protection Agency shall consult with
16individuals, including academics and experts from
17nongovernmental organizations, having expertise in forest
18sustainability, biodiversity, and climate science, as well as
19representatives of indigenous communities located within
20boreal regions, and hold at least one public hearing, and may
21base study findings on existing literature.
 
22    Section 75. Study.
23    (a) Not later than June 1, 2025, the Environmental
24Protection Agency, in consultation with the Director of
25Central Management Services, shall complete a study to

 

 

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1determine whether the requirements of this Act shall apply to
2forest-risk commodities originating in boreal forests.
3    (b) The study shall examine, but not be limited to, the
4following considerations:
5        (1) the short-term and long-term impact on greenhouse
6    gas emissions, biodiversity, ecosystem function, and
7    climate resilience, of clearcutting primary boreal
8    forests;
9        (2) the differential impact on greenhouse gas
10    emissions, biodiversity, ecosystem function, and climate
11    resilience of clearcutting primary boreal forests versus
12    previously logged or second-growth forests, within
13    30-year, 50-year, and 100-year timeframes;
14        (3) the differential impact on greenhouse gas
15    emissions, biodiversity, ecosystem function, and climate
16    resilience of clearcutting primary boreal forests versus
17    no industrial forest activity, within 30-year, 50-year,
18    and 100-year timeframes;
19        (4) the actual carbon storage capacity of various
20    harvested wood products, and the percentage of logged
21    boreal biomass in each of the boreal countries that ends
22    up in long-lasting versus short-term consumable end uses;
23        (5) the effectiveness of existing available
24    certification schemes in use in each of the boreal
25    countries in ensuring compliance with the goals of this
26    Act;

 

 

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1        (6) an independent assessment of the current
2    greenhouse gas footprint of the forest products industry
3    in each of the boreal countries;
4        (7) an independent assessment of whether current
5    forest management policies in each of the boreal countries
6    are sufficient to prevent the forestry industry's role in
7    the decline of at-risk species;
8        (8) the effectiveness of the forestry policies of each
9    of the boreal countries in ensuring the free, prior, and
10    informed consent of indigenous peoples affected by
11    industrial logging within the boreal forest; and
12        (9) the effectiveness of replanting practices in
13    restoring the ecological benefits of primary boreal
14    forests that have been logged, and the timescale for
15    restoring these benefits.
16    (c) The requirements of this Act shall apply to all
17forest-risk commodities unless the Director of the
18Environmental Protection Agency and the Director of Central
19Management Services have, not later than June 1, 2025, jointly
20designated the provisions of this Act inapplicable to
21forest-risk commodities originating in boreal forests based on
22the results of the study.
 
23    Section 80. Applicability. This Act shall apply to all
24contracts entered into, extended, or renewed on or after
25January 1, 2025.
 

 

 

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1    Section 95. Report. Beginning 2 years after the effective
2date of this Act and biennially thereafter, the Director of
3Central Management Services shall issue a report to the
4Governor, the Senate President, and the Speaker of the House
5of Representatives on the implementation of this Act.
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.