HB 3574 Illinois House · 104th Regular Session

PROCUREMENT-DATA RESIDENCY

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.
Bill status passed 3 of 5 stages cleared
Introduction
Apr 2025
Committee Review
Jun 2025
House Passage
Apr 2025
Senate Passage
Governor
Introduced Apr 14, 2025 Last action Jun 2, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Introduced Engrossed · 7 edits · Apr 10, 2025
MODERATE
The bill was amended to clarify definitions, adjust the timing for issuing credits, and restructure how credits are calculated based on specific storage locations. It also adds an exemption for telecommunications services and updates data center incentives to apply specifically to requests for proposals. These changes aim to make the data residency credit program more precise and easier to administer.
Scope change
The bill now explicitly excludes contracts primarily for telecommunications services from the data residency credit requirements and definitions.
DEFINITION

The definition of 'earned credit' was updated to specify that it applies to contracts described in the section where the vendor met the residency requirement during performance.

A new definition for 'Telecommunications service' was added to clarify what services are covered under the new exemption.

REQUIREMENT

The process for issuing credits was changed from a general determination by the Chief Procurement Officer to a specific certification required during the contract closeout procedure if data was stored outside Illinois.

The calculation of earned credits was restructured to explicitly award 2% for storage within Illinois and 4% for storage within an opportunity zone, replacing the previous single credit allocation.

Data center incentives were updated to apply only to procurements using a request for proposals, with points awarded for hosting within the State or an opportunity zone.

ELIGIBILITY

A new exemption was added stating that the data residency credit requirements do not apply to contracts primarily for telecommunications services.

ENFORCEMENT

The requirement for vendors to maintain records was updated to specify a retention period of at least 3 years after the contract is completed.

Floor votes · House Apr 10, 2025

How they voted

1141
Passed · 3 other
Total votes 118
Apr 10, 2025
D Democratic78
77 Yea 1
98% Yea
R Republican40
37 Yea 1 Nay 2
92% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
40
Key actions
7
Committee
11
Amendments
2
Jun 2, 2025
Committee
Rule 3-9(a) / Re-referred to Assignments
upper
May 23, 2025
Upper · Passed
Rule 2-10 Committee Deadline Established As June 1, 2025
upper
May 9, 2025
Upper · Passed
Rule 2-10 Committee Deadline Established As May 23, 2025
upper
Apr 29, 2025
Committee
Assigned to Executive
upper
Apr 14, 2025
Committee
Referred to Assignments
upper
Apr 14, 2025
Introduced
Arrive in Senate
upper
Apr 10, 2025
Lower · Passed
Third Reading - Short Debate - Passed 114-001-000
lower
Apr 10, 2025
Lower · Passed
House Floor Amendment No. 1 Adopted by Voice Vote
lower
Apr 9, 2025
Lower · Passed
House Floor Amendment No. 1 Recommends Be Adopted State Government Administration Committee; 008-000-000
lower
Apr 8, 2025
Lower · Passed
House Floor Amendment No. 1 Rules Refers to State Government Administration Committee
lower
Apr 8, 2025
Committee
House Floor Amendment No. 1 Referred to Rules Committee
lower
Apr 8, 2025
Introduced
House Floor Amendment No. 1 Filed with Clerk by Rep. Justin Slaughter
lower
Mar 20, 2025
Lower · Passed
Do Pass / Short Debate State Government Administration Committee; 009-000-000
lower
Mar 11, 2025
Committee
Assigned to State Government Administration Committee
lower
Feb 18, 2025
Committee
Referred to Rules Committee
lower
2 primary · 16 co-sponsors

Sponsors