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Bill

HB 3587

PROCUREMENT-DATA RESIDENCY

104th Regular Session Introduced by Rita Mayfield and 1 co-sponsor

Illinois bill mandating state contractors store government data within US borders to strengthen data security and state sovereignty over sensitive information.

Added Co-Sponsor Rep. Rita Mayfield
0
WeVote Research Nonpartisan
Bill Summary · HB 3587

Legislative bill overview

HB 3587 establishes data residency requirements for government procurement in Illinois, requiring that data collected or generated through state contracts must be stored and processed within Illinois or the United States. The bill applies these requirements to vendors seeking state contracts, potentially affecting how businesses manage their digital infrastructure and cloud services.

Why is this important

Data residency requirements directly impact where sensitive government information is housed, raising concerns about data security, sovereignty, and compliance costs. This could affect procurement costs for the state, vendor competitiveness, and Illinois's ability to attract technology companies, while also touching on broader cybersecurity and privacy policy.

Potential points of contention

  • Cost implications: Requiring domestic data storage may increase procurement expenses for the state and create barriers for vendors using cost-effective international cloud services
  • Vendor impact: Small businesses and startups relying on global cloud infrastructure (AWS, Google Cloud, Azure) may face higher compliance burdens or be unable to bid on state contracts
  • Technical feasibility: Defining what constitutes "data" and ensuring compliance across complex multi-vendor supply chains could prove administratively difficult

Compiled from official sources — confirm details with the bill’s official record.

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