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HB 3587

Relating to rocky habitat management; declaring an emergency.

2025 Regular Session Introduced by Tom Andersen and 11 co-sponsors

Requires State data stored in US; gives Illinois bid credits (2%/4%) and data-center scoring boosts for Illinois/Opportunity Zone hosts.

In committee upon adjournment.
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Bill Summary · HB 3587

Summary — HB 3587 (104th General Assembly)

Short title / purpose: HB 3587 would amend the Illinois Procurement Code to require and incentivize on‑shore residency of “State data” in contracts that provide for storage of State data, create bid‑preference credits and procurement scoring incentives for vendors and data centers that host State data in Illinois (and in designated opportunity zones), and authorize administrative rules and enforcement. The bill’s title also indicates it declares an emergency.

Key provisions

  • Data‑residency requirement

    • Any State contract advertised and entered into on or after the bill’s effective date that provides for storage of State data must require that the State data be processed, stored, and disposed of within the territory of the United States (unless the Chief Information Officer otherwise authorizes).

  • Bid preference / earned credit for data residency

    • For qualifying contracts (subject to federal/State law), the Chief Procurement Officer (CPO) shall allocate an “earned credit” to qualified bidders:
    • 2% of the contract base bid if all State data in the contract is stored within the State of Illinois; and
    • An additional 4% of the contract base bid if all such State data is stored within a “qualified area” (an opportunity zone designated by the Department of Commerce and Economic Opportunity).
    • Earned credits are issued as certificates, valid for 3 years, and may be applied as a bid preference on a future contract bid of equal or greater dollar value.
    • The CPO may decline to allocate an earned credit if it is not in the State’s best interest; that determination is a final administrative decision subject to administrative review.

  • Data center procurement scoring

    • Any procurement for a data center to host State data shall award:
    • +10% of total available proposal points if the data center is hosted within Illinois; and
    • An additional +10% of total available points if the data center is located in a qualified area (opportunity zone).

  • Compliance, recordkeeping, and enforcement

    • Vendors must maintain detailed records and permit access to the CPO or supervising agency’s State Purchasing Officer to verify compliance; records must be retained for at least 3 years after contract completion.
    • State agencies may adopt rules for administration and enforcement of these provisions.

Definitions & exclusions (high level)

  • “State data” is defined in the bill as final, digitizable information created or maintained by or on behalf of a State agency, controlled by the agency, and related to the agency’s mission (presented in non‑narrative forms such as lists, tables, graphs, etc.).
  • The bill text includes exclusions for certain categories (for example, certain public‑safety, criminal justice backup/recovery, or internationally exchanged data), and it conditions credits and requirements “unless otherwise prohibited by federal or State law.” (Readers should consult the bill text for the full, exact definitional language and exclusions.)

Who would be affected

  • State agencies and the Chief Procurement Officer (new contract terms and procurement processes).
  • Vendors that store, process, or dispose of State data — especially cloud providers, hosting companies, and data center operators.
  • Illinois‑based data centers, and facilities located in designated opportunity zones — they would receive procurement advantages (credits and scoring).
  • Potentially contractors that rely on cross‑border data hosting — may need to change infrastructure or rely on CIO authorization/exemptions.

Potential impacts and considerations

  • Advantages: Incentivizes local data center investment, may increase data control and perceived security, and supports opportunity zone economic development.
  • Costs & logistics: Vendors may face higher costs to re‑locate or segregate data infrastructure; contract pricing changes could result; technical and compliance burdens for agencies and suppliers.
  • Legal considerations: The requirement to keep State data within the U.S. and the specified exclusions may raise compatibility questions with federal law, existing contracts, international data sharing agreements, and vendor global infrastructure. The bill itself recognizes possible federal/State legal limits and authorizes CIO exceptions.
  • Administrative burden: Agencies and the CPO will need policy, monitoring, and recordkeeping processes to issue and track earned credits and application of certificates.

Legislative status (as of June 28, 2025)

  • Introduced by Rep. Justin Slaughter (first read Feb 18, 2025). Co‑sponsor added (Rep. Rita Mayfield).
  • Referred through multiple committees; public hearing (Mar 5), work session (Mar 31).
  • Recommended “Do pass with amendments” and referred to Ways and Means (Apr 3).
  • Status: In committee upon adjournment (6/28/2025).

For precise legal language, exclusions, and implementation details, consult the bill text (30 ILCS 500/45‑115 new) and any subsequent amendments.

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

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