SB2786 104TH GENERAL ASSEMBLY

LRB104 15744 HLH 28929 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2786

Introduced 1/13/2026, by Sen. Lakesia Collins

SYNOPSIS AS INTRODUCED:

30 ILCS 500/20-25.3 new

Amends the Illinois Procurement Code. Provides that the Department of Central Management Services may enter into a sole source contract with a specified contractor for a 6-month procurement modernization pilot project. Provides that the contractor shall conduct a comprehensive procurement modernization study for units of local government. Provides that the pilot program shall be conducted in no more than 7 municipalities of the contractor's choosing, each having a population of less than 200,000, to test the applicability of artificial intelligence applications across diverse regional and administrative environments. Effective immediately.

A BILL FOR

AN ACT concerning finance.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Procurement Code is amended by adding Section 20-25.3 as follows:

(30 ILCS 500/20-25.3 new)

Sec. 20-25.3. Procurement modernization and artificial intelligence pilot program.

(a) The General Assembly finds and declares that:

(1) The State of Illinois and units of local government within the State face persistent challenges in achieving efficient, transparent, and equitable procurement operations, resulting in delays, redundancy, and inconsistent access to State and local contracts for small businesses, minority-owned businesses, and women-owned businesses.

(2) Modernizing procurement systems through artificial intelligence and data-driven tools presents a responsible means of improving efficiency, enhancing accountability, and expanding participation in public contracting.

(3) Recent executive actions by the Governor underscore the State's commitment to adopting secure, ethical, and forward-looking technology in public administration.

(4) These initiatives reflect a broader statewide policy objective: leveraging innovation for fiscal responsibility, equity, and operational excellence across government functions.

(5) A focused pilot program implementing AI-based procurement analysis will allow Illinois to test and validate these principles on a limited scale before pursuing statewide modernization.

(b) The purposes of this Section are: to allocate funding for a limited duration pilot program that applies artificial intelligence tools to local government procurement management; to evaluate the impact of those tools on efficiency, equity, and cost savings; and to develop frameworks for future adoption of those tools.

(c) As used in this Section:

"AI" means artificial intelligence.

"Contractor" means Amp AI, doing business as Nozma.

"Department" means the Department of Central Management Services.

"Minority-owned business" has the meaning given to that term in the Business Enterprise for Minorities, Women, and Persons with Disabilities Act.

"Small business" means a corporation or a concern, including its affiliates, that is independently owned and operated, not dominant in its field, and that employs fewer than 50 full-time employees or has gross annual sales of less than $4,000,000.

"Women-owned business" has the meaning given to that term in the Business Enterprise for Minorities, Women, and Persons with Disabilities Act.

(d) Subject to the procedural requirements of this Code concerning sole source procurements, the Department may enter into a sole source contract with the contractor for a 6-month procurement modernization pilot project.

(e) Upon entering into a contract under subsection (d), the contractor shall, under the supervision of the Department and the Office of the Governor:

(1) conduct a comprehensive procurement modernization study for units of local government benchmarking Illinois against peer states;

(2) develop and test a proof-of-concept request for proposal classification and qualification engine;

(3) conduct an equity and access analysis to ensure inclusivity in local government contracting for small businesses, minority-owned businesses, veteran-owned businesses, and rural contractors;

(4) develop a data integrity and security framework for future AI procurement applications;

(5) publish monthly progress dashboards;

(6) host at least one stakeholder workshop; and

(7) submit a final report to the Governor and General Assembly.

(f) The pilot program established under this Section shall be conducted in no more than 7 municipalities of the contractor's choosing, each having a population of less than 200,000, to test the applicability of AI procurement systems across diverse regional and administrative environments.

(g) The pilot program established under this Section shall commence within 30 days after the effective date of this amendatory Act of the 104th General Assembly and conclude within 6 months after the date on which the program commences unless the program is extended by the Governor for cause.

(h) The Department shall coordinate with the Office of Equity and Inclusion and the Legislative Ethics Commission to ensure that all pilot program activities comply with statutory and fiscal standards and shall submit a final report to the Governor, the President of the Senate, and the Speaker of the House of Representatives.

Based on pilot program results, the Department of Central Management Services shall prepare draft administrative rules or legislative proposals for broader procurement modernization initiatives, including performance metrics and workforce training.

The Department may also collaborate with other State agencies, units of local government, and institutions of higher education to identify and develop additional applications of artificial intelligence in public procurement, contract management, and administrative services.

To promote equitable access to technology and innovation across Illinois, the Department may, through intergovernmental agreements or partnerships, make the tools, data frameworks, or best practices developed under this Act available to municipalities and townships that lack the fiscal or technological capacity to independently implement those systems.

The Department may also seek or accept public or private grants, philanthropic contributions, or cooperative funding to support the participation of financially constrained municipalities if those collaborations remain consistent with State procurement and ethics laws. Any such efforts shall be designed to leverage existing resources, avoid duplication of effort, and ensure that future expansion of the pilot program aligns with the State's equity, transparency, and fiscal responsibility goals.

Section 99. Effective date. This Act takes effect upon becoming law.