Bill > SB2502

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 ensure that the data is processed, stored, and disposed of within the United States, unless specifically authorized otherwise by the agency's Chief Information Officer. The bill introduces a system of earned credits for vendors who meet certain data residency criteria: vendors can receive a 2% credit for storing state data within Illinois and an additional 4% credit for storing data within a designated "opportunity zone" (an economically distressed area). The bill carefully defines "state data" as digital information created, controlled, and maintained by state agencies, with specific exclusions for certain types of data like international information exchanges or backup data. Vendors who successfully meet these data residency commitments can receive a credit certificate valid for three years, which can be applied to future contract bids. The Chief Procurement Officer retains discretion to deny credits if they are not in the state's best interest, and vendors must maintain detailed records to demonstrate compliance. This legislation aims to promote local data storage, potentially supporting Illinois-based data centers and economic development while ensuring data security within U.S. territories.

Government Affairs

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2502&GAID=18&DocTypeID=SB&SessionID=114&GA=104