HB3574ham001 104TH GENERAL ASSEMBLY

Rep. Justin Slaughter

Filed: 4/8/2025

10400HB3574ham001 LRB104 03868 HLH 25037 a

AMENDMENT TO HOUSE BILL 3574

AMENDMENT NO. ______. Amend House Bill 3574 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Procurement Code is amended by adding Section 45-115 as follows:

(30 ILCS 500/45-115 new)

Sec. 45-115. State data residency credit.

(a) As used in this Section:

"Earned credit" means the amount of the bid preference allocated to a vendor upon completion of a contract described in this Section with respect to which the vendor met the data residency requirement under this Section during the performance of the contract.

"Qualified area" means an opportunity zone designated by the Department of Commerce and Economic Opportunity.

"State data" means the final version of information that: (1) is presented in alphanumeric form in a list, table, graph, chart, or other non-narrative form; (2) can be digitally stored and retrieved; (3) is created or maintained by or on behalf of a State agency; (4) is controlled by the State agency; and (5) is related to the mission of the State agency. "State data" does not include information that is: (1) provided to a State agency by another entity; (2) created or maintained by or on behalf of a State or federal public safety official operating in that person's official capacity outside of the United States; (3) subject to one or more international exchange agreements for the exchange of criminal justice information with one or more foreign government agencies; or (4) created or maintained for the purpose of backup or recovery.

"Telecommunications service" means the provision of voice and data communications services, regardless of the format or mode of delivery, including communications services delivered over cable, Internet Protocol, wireless, fiber optic cable, or other transmission mechanisms, as well as arrangements for network interconnection, transport, messaging, routing, or international voice, text, and data roaming.

(b) Unless otherwise authorized by the chief procurement officer of the applicable State agency, any contract advertised and entered into by the State on or after the effective date of this amendatory Act of the 104th General Assembly 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.

(c) If, as part of the closeout procedure for a contract described in subsection (b), a State agency certifies to the applicable chief procurement officer that the State data covered by the contract has not been processed, stored, or disposed of outside of the State of Illinois during the term of the contract, then the chief procurement officer shall issue to the contractor an earned credit certificate that evidences the amount of the earned credit allocated to the contractor. The amount of the credit shall be as described in subsection (d). To receive the earned credit certificate, the contractor shall maintain accurate and detailed records necessary to monitor compliance with this Section and shall submit to the chief procurement officer, the State Purchasing Officer, or the contracting State agency any reports required by the chief procurement officer, State Purchasing Officer, or contracting State agency. Vendors that are subject to the provisions of this Section shall allow the chief procurement officer, State Purchasing Officer, contracting State agency, or any designee of the chief procurement officer, State Purchasing Officer, or contracting State agency, to have full access to the records described in this subsection. The contractor shall maintain all relevant records for at least 3 years after the contract is completed.

(d) Unless otherwise prohibited by federal or State law, if, during the entire term of the contract, the State data was stored within the State of Illinois but outside of any qualified area, then the amount of the earned credit shall be 2% of the contract's value for storage of the State data and (ii) if, during the entire term of the contract, the State data was stored within the State of Illinois and all or part of the State data was stored within a qualified area, then the amount of the earned credit shall be 4% of the contract's value for storage of the State data.

(e) A vendor may apply its earned credit as the bid preference for any future contract bid of equal or greater dollar value relative to the contract for which the credit was awarded. The credit certificate earned is valid for 3 years from the date of issuance and shall not be applied to any future contract bid after the expiration of that period.

(f) Subsections (b), (c), (d), and (e) of this Section do not apply to contracts that are primarily for the provision of telecommunications services. A contract is considered to be primarily for the provision of telecommunications services if 50% or more of the contract's value comes from the provision of telecommunications services.

(g) Any procurement that uses a request for proposals and is issued for a data center to host State data shall include a provision that, if the data center is hosted within the State, then the proposal shall be awarded additional points equal to 10% of the total available points. If the data center is located in a qualified area, then, in addition to the points awarded under this subsection (g) for hosting within the State, the proposal shall be awarded an additional 10% of the total available points.

(h) Each chief procurement officer may adopt rules for the proper administration and enforcement of this Section, including, but not limited to, rules concerning eligibility for data centers to receive the additional points under subsection (g).".