IL HB3574

Requires all State contracts for data storage entered into after the bill's effective date to mandate that State data be processed, stored, and disposed of within the United States, unless authorized otherwise by the chief procurement officer

Creates an "earned credit" system where contractors who store State data entirely within Illinois receive a 2% bid preference credit, or 4% if stored in a designated opportunity zone, applicable to future contract bids for 3 years

Adds a 10% scoring bonus for data center proposals that host State data within Illinois, with an additional 10% bonus (20% total) for data centers located in opportunity zones

Exempts contracts primarily for telecommunications services (50% or more of contract value) from the data residency and earned credit requirements

Requires contractors to maintain detailed compliance records for at least 3 years after contract completion and provide full access to procurement officials for auditing purposes