IL HB3197

Prohibits the State of Illinois and its agencies from purchasing any tropical hardwood or tropical hardwood products, and bars their use in any public works, building maintenance, or improvement contracts

Requires all state contracts involving forest-risk commodities (beef, cocoa, coffee, leather, palm oil, rubber, soy, wood pulp, paper) to include contractor certification that the commodities were not sourced from land where deforestation or forest degradation occurred

Mandates large contractors (annual revenue of $100 million or more) to adopt and publicly disclose forest policies covering supply chain traceability, due diligence on commodity origins, protections for Indigenous peoples' rights including free, prior and informed consent, and worker protections

Establishes violations penalties including contract voiding or fines of $1,000 or 20% of the violating product's value, whichever is greater, with a stakeholder advisory group to advise on implementation

Directs the Department of Central Management Services to issue implementation rules by July 1, 2026, with preferences given to small businesses, minority-owned businesses, women-owned businesses, and Illinois products in contract awards