HB5117 - Deforestation-Free Procurement Act

• Prohibits the State and its agencies from purchasing tropical hardwoods, tropical hardwood products, or forest-risk commodities (including palm oil, soy, beef, coffee, leather, wood pulp, and paper) extracted from land where tropical or boreal deforestation occurred after January 1, 2022.

• Requires all State contracts for forest-risk commodities to include contractor certifications confirming compliance with deforestation-free sourcing and mandates large contractors ($100 million+ annual revenue) adopt comprehensive forest policies addressing supply chain transparency, biodiversity protection, worker rights, and indigenous community consent.

• Establishes enforcement mechanisms including written violation notices, contract voidance, and penalties of $1,000 or 20% of product value, with hearings required before penalty assessment.

• Directs the Environmental Protection Agency to complete a study by June 1, 2025 determining whether deforestation-free requirements should apply to boreal forest commodities, with provisions applying to all commodities unless jointly exempted.

• Requires the Department of Central Management Services to issue implementation rules by July 1, 2024 and submit biennial reports to the General Assembly on compliance; exempts contracts entered into before September 1, 2024 and federal grant requirements.