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IL HB3587

IL HB3587
PROCUREMENT-DATA RESIDENCY


summary

Introduced
02/07/2025
In Committee
02/18/2025
Crossed Over
Passed
Dead

Introduced Session

104th General Assembly

Bill Summary

Amends the Illinois Procurement Code. Provides that any contract that provides for the storage of any State data shall include a requirement that the State data must be processed, stored, and disposed of within the territory of the United States. Provides that, for any contract that provides for the storage of State data, the Chief Procurement Officer shall allocate to any qualified bidder an earned credit of: (1) 2% of the contract base bid for ensuring that all State data that is included in the contract is stored within the State of Illinois; and (2) an additional 4% of the contract base bid for ensuring that all such State data is stored within an opportunity zone. Contains provisions concerning data centers.

AI Summary

This bill amends the Illinois Procurement Code to establish new requirements and incentives for state data storage and processing. Specifically, the bill mandates that any state contract involving data storage must require that the data be processed, stored, and disposed of within the United States. The bill introduces a credit system for vendors who store state data within Illinois, offering a 2% credit for storing data within the state and an additional 4% credit for storing data within a designated "opportunity zone" (an economically distressed area). The bill comprehensively defines "state data" as digital information created or maintained by a state agency, with specific exclusions for certain types of data like international exchange information or backup data. The Chief Procurement Officer has discretion to allocate these credits and can decide not to do so if it's not in the state's best interest. Vendors can use these earned credits as bid preferences on future contracts of equal or greater value within three years of issuance. To qualify, vendors must maintain detailed records and allow full access to procurement officials for monitoring compliance. The overall goal appears to be encouraging local data storage and supporting economic development in specific geographic areas.

Sponsors (2)

Last Action

Added Co-Sponsor Rep. Rita Mayfield (on 03/17/2025)

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