HB3581 103RD GENERAL ASSEMBLY

LRB103 25410 SPS 51757 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3581

Introduced 2/17/2023, by Rep. Blaine Wilhour

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 500/50-36.5 new

Creates the Prairie State Infrastructure Protection Act. Provides that a business entity in the State may not enter into a contract or other agreement relating to critical infrastructure in the State with a company if the company, under the contract or agreement, would be able to directly or remotely access or control critical infrastructure in the State and is associated with China, Iran, North Korea, Russia, or another designated county. Provides that the Governor may designate a country as a threat to critical infrastructure in consultation with the Director of the Illinois State Police. Provides that the Governor may consult with the Director of the Illinois Emergency Management Agency to assess a threat to critical infrastructure under the Act. Amends the Illinois Procurement Code. Provides that a governmental entity may not enter into a contract or other agreement relating to critical infrastructure in the State with a company that is associated with China, Iran, North Korea, Russia, or another designated county.

A BILL FOR

AN ACT concerning business.

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

Section 1. Short title. This Act may be cited as the Prairie State Infrastructure Protection Act.

Section 5. Definitions. As used in this Act:

"Company" means a for-profit sole proprietorship, organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership, or limited liability company, including a wholly owned subsidiary, majority-owned subsidiary, parent company, or affiliate of those entities or business associations that exists to make a profit.

"Critical infrastructure" means a communication infrastructure system, cybersecurity system, electric grid, hazardous waste treatment system, or water treatment facility.

"Cybersecurity" means the measures taken to protect a computer, computer network, computer system, or other technology infrastructure against unauthorized use or access.

Section 10. Designation of a threat to critical infrastructure.

(a) The Governor may designate a country as a threat to critical infrastructure in consultation with the Director of the Illinois State Police.

(b) The Governor may consult with the Director of the Illinois Emergency Management Agency to assess a threat to critical infrastructure under this Act.

Section 15. Prohibition on contracts with certain foreign-owned companies in connection with critical infrastructure.

(a) A business entity in this State may not enter into a contract or other agreement relating to critical infrastructure in this State with a company if:

(1) the company, under the contract or agreement, would be able to directly or remotely access or control critical infrastructure in this State; and

(2) the company is:

(A) owned by or the majority of stock or other ownership interest of the company is held or controlled by:

(i) individuals who are citizens of China, Iran, North Korea, Russia, or a country designated as a threat under Section 10; or

(ii) a company or other entity, including a governmental entity, that is owned or controlled by citizens of or is directly controlled by the government of China, Iran, North Korea, Russia, or a country designated as a threat under 10; or

(B) headquartered in China, Iran, North Korea, Russia, or a country designated as a threat under Section 10.

(b) The prohibition described in subsection (a) applies regardless of whether:

(1) the company's or its parent company's securities are publicly traded; or

(2) the company or its parent company is listed as a Chinese, Iranian, North Korean, or Russian company on a public stock exchange.

Section 90. The Illinois Procurement Code is amended by adding Section 50-36.5 as follows:

(30 ILCS 500/50-36.5 new)

Sec. 50-36.5. Prohibition on contracts with certain foreign-owned companies in connection with critical infrastructure.

(a) As used in this Section:

"Company" means a for-profit sole proprietorship, organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership, or limited liability company, including a wholly owned subsidiary, majority-owned subsidiary, parent company, or affiliate of those entities or business associations that exists to make a profit.

"Critical infrastructure" means a communication infrastructure system, cybersecurity system, electric grid, hazardous waste treatment system, or water treatment facility.

"Cybersecurity" means the measures taken to protect a computer, computer network, computer system, or other technology infrastructure against unauthorized use or access.

"Governmental entity" means a State agency or political subdivision of this State.

(b) A governmental entity may not enter into a contract or other agreement relating to critical infrastructure in this State with a company that is:

(1) owned by or the majority of stock or other ownership interest of the company is held or controlled by:

(A) individuals who are citizens of China, Iran, North Korea, Russia, or a country designated as a threat under Section 10 of the Prairie State Infrastructure Protection Act; or

(B) a company or other entity, including a governmental entity, that is owned or controlled by citizens of or is directly controlled by the government of China, Iran, North Korea, Russia, or a country designated as a threat under Section 10 of the Prairie State Infrastructure Protection Act; or

(2) headquartered in China, Iran, North Korea, Russia, or a country designated as a threat under Section 10 of the Prairie State Infrastructure Protection Act.

(c) The prohibition described in subsection (b) applies regardless of whether:

(1) the company's or its parent company's securities are publicly traded; or

(2) the company or its parent company is listed as a Chinese, Iranian, North Korean, or Russian company on a public stock exchange.